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    Project Profile-Pet Preforms

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    bravehear030
    This document provides a project profile for manufacturing PET preforms through injection molding of PET resin. The process involves drying and mixing PET granules with colorants before injection molding preforms. A proposed plant with a capacity of 1,246 tons per year would require 0.5 acres of land and cost around 617 lakhs. The project is financially viable with an IRR of 27% and could be expanded vertically to include bottle production. Growing demand for packaged beverages and changing lifestyles in India present opportunities for growth in PET bottles and preforms.

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    Project Profile-Pet Preforms

    Uploaded by

    bravehear030
    3K views4 pages
    This document provides a project profile for manufacturing PET preforms through injection molding of PET resin. The process involves drying and mixing PET granules with colorants before injection molding preforms. A proposed plant with a capacity of 1,246 tons per year would require 0.5 acres of land and cost around 617 lakhs. The project is financially viable with an IRR of 27% and could be expanded vertically to include bottle production. Growing demand for packaged beverages and changing lifestyles in India present opportunities for growth in PET bottles and preforms.

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    Project Profile-Pet Preforms

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    2. Project Profile-Pet Preforms

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    This document provides a project profile for manufacturing PET preforms through injection molding of PET resin. The process involves drying and mixing PET granules with colorants before injection molding preforms. A proposed plant with a capacity of 1,246 tons per year would require 0.5 acres of land and cost around 617 lakhs. The project is financially viable with an IRR of 27% and could be expanded vertically to include bottle production. Growing demand for packaged beverages and changing lifestyles in India present opportunities for growth in PET bottles and preforms.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3K views4 pages

    Project Profile-Pet Preforms

    Uploaded by

    bravehear030
    This document provides a project profile for manufacturing PET preforms through injection molding of PET resin. The process involves drying and mixing PET granules with colorants before injection molding preforms. A proposed plant with a capacity of 1,246 tons per year would require 0.5 acres of land and cost around 617 lakhs. The project is financially viable with an IRR of 27% and could be expanded vertically to include bottle production. Growing demand for packaged beverages and changing lifestyles in India present opportunities for growth in PET bottles and preforms.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Manufacturing of PET preforms

    KSIDC

    PROJECT PROFILE ON MANUFACTURING OF PET PREFORMS

    Prepared by:

    Kerala State Industrial Development Corporation Ltd.

    September 2012

    Manufacturing of PET preforms

    KSIDC

    PROJECT PROFILE FOR MANUFACTURING OF PET PREFORMS


    INTRODUCTION The basic technical and financial parameters of a project on the manufacture PET preforms by injection moulding PET bottle grade resin are described in this profile. This is the first stage in the two stage PET bottle manufacturing process suitable for large scale production and here the pet preform is molded on an injection moulding machine, then in the second stage the preform is reheated and blown on a blow moulding machine. The advantages of PET bottles include exceptional clarity, pure, safe, good barrier to oxygen, carbon dioxide and water, lightweight and therefore less shipping costs, no leakage, design flexibility, recyclable, long shelf life, good chemical resistance etc. MARKET The consumption of PET bottles is increasing on account of new customers being created for bottled beverages as well as an increasing number of products being replaced with PET bottles. The per capita consumption of PET is very low in India at 0.3 kg vis--vis the global average of 2 kg. This shows that there is a significant growth opportunity for PET bottles in India. In 2010, the PET resin demand was 5 lakh tpa and the demand has been growing at 7.5% per annum. In the bottled water industry itself there is a great demand for PET bottles. PET preforms can be used for Packaging of Mineral Water, Juices, Liquor, Soda, Sparkling Drinks, Edible Oil, Pharma Products, Pickles, Squashes, FMCG Products etc. MANUFACTURING PROCESS PET granules received from suppliers are dried in a dehumidifier. The PET granules are then mixed with colorants. Then the material is fed into the injection moulding hopper. The material is plasticized and is injection moulded in a mould which can produce 12-72 preforms in a single moulding. The moulded preforms are cooled in the machine itself till it can maintain its shape and is taken out and cooled at room temperature. The preforms are then packed in cartons for despatch. PROJECT PARAMETERS Capacity Proposed capacity of production Land Extent of land required

    : 1,246 ton PET preforms per annum

    : 0.5 acres

    Manufacturing of PET preforms

    KSIDC

    Location The project is proposed to be located at KSIDCs Industrial Growth Centre at Valiya Velicham, Kuthuparamba in Kannur District Raw Material & Utilities Raw materials include various PET bottle grade resin, colorants etc. The total connected load is estimated at 200 KVA and water requirement is estimated at 5KL / day. Plant & Machinery The main items of machinery include four 50 tonnes injection moulding machines costing ` 40 lakhs each. Manpower Requirement of manpower is estimated to be 26 and include six administerial staff, five skilled workers and 15 unskilled workers. Cost of the Project The total cost of project is estimated at ` 617.00 lakhs as given below. Item Approx. cost in ` lakhs
    Land on lease Land development Building Plant & Machinery Utilities MFA Tech know-how & Engg Fee Contingencies Deposits Prelim. and pre-op. Expenses Margin money for Working Capital Total 10.00 17.00 123.00 212.00 114.50 7.00 5.00 21.90 1.00 37.80 67.80 617.00

    The time required for completion of the project is estimated to be 12 months. Means of Finance Means of Finance for the Project is given below . Equity Share Capital

    ` 308.50 lakhs

    Manufacturing of PET preforms

    KSIDC

    Debt Term loan from FIs/ Banks Total

    ` 308.50 lakhs ` 617.00 lakhs

    Sales Turnover The optimum Sales Turnover (Revenue) is estimated to be ` 900 lakhs and can be achieved in year 4.

    FINANCIAL INDICATORS Net Profit in year 4 Break Even Point (BEP) Debt Service Coverage Ratio (DSCR) Debt Equity Ratio (DER) Internal Rate of Return (IRR) ` 159.65 lakhs 40.64% 3.23 1:1 27%

    CONCLUSION The project is found to be techno-economic viable. The project can be integrated vertically by adding a line of the bottles / jars production from the preforms. The demand of packaged and ready to drink /eat items is increasing tremendously with changing lifestyle, there is huge potential for PET bottles/ jars and hence for PET preforms. The project is highly recommended for implementation.

    For further details please contact Kerala State Industrial Development Corporation Ltd.

    The findings contained in this Project Profile are based on the initial information collated through primary and secondary research, which is indicative in nature. Reference herein to any specific commercial product, process, service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring by KSIDC or any entities thereof.

    Disclaimer:

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