Bubble Packing: Profile No.: 72 NIC Code:22203

Profile No.
: 72 NIC Code:22203
BUBBLE PACKING
1. INTRODUCTION
Air bubble polyethylene film is preferred over expanded polystyrene because it is cost
effective. Resiliency of air bubble film is much higher than expanded polystyrene and
ultimate volume of package is much lower if air bubble film is set. It is most suitable for
packaging of light fragile items, sophisticated electronic goods, calculators etc.
2. PRODUCTS AND ITS APPLICATION
The major areas of application are segregated into the following fields.
 Packaging of fragile items like crockery, Glassware, Ceramic Products etc.

 Packaging of electronic & Electrical Appliances.
 Plastic machinery parts packaging.
 Precious antiques packaging.
 Pharmaceutical bottles, vials packaging etc.
 Some special type of chemical packaging.
 Handicrafts
 Pharmaceuticals
 Scientific Instruments
 Engineering & Automobile Spare Parts
 Fruits & Vegetables
 Machinery Wrapping
3. DESIRED QUALIFICATION FOR PROMOTER
The Promoter should have preferably a basic degree in plastic engineering/ processing or
a degree/ diploma in engineering / or a degree in chemistry. Experience of at least two to
three years in plastic industry is desirable.
4. INDUSTRY OUTLOOK AND TRENDS
Air bubble packaging film has gained a good status in packaging field as a convenient and
economical cushioning material. Cushioning materials are available in many types and
forms. The old traditional wood excelsior and shredded paper or tissue have been
supplemented or replaced by corrugated pads. Further sophistication, convenience and
improved functional characteristic in cushioning have been achieved by using various
types of plastic foams. Most commonly used plastic foam for packaging application is
expanded polystyrene.
The demand generation of electronic goods in recent years has left wide gap to fulfill the
packaging need using air bubble film which has generated a good potential of the project
for new entrepreneurs. Besides packaging applications, air bubble film is widely used in
developed countries as swimming pool cover.
5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY
The demand generation of electronic goods in recent years has left a wide gap to fulfill
the packaging need using air bubble film which has generated a good potential of the
project for new entrepreneurs. Besides packaging applications, air bubble film is widely
used in developed countries as swimming pool cover. Packaging industry in India has an
estimated turnover of Rs. 11,500 crores, which is growing at the rate of 18 per cent
annually. The changing pattern of the Indian Consumer behavior directly affects the
packaging industry as the direct expenditure incurred by companies to make the products
attractively packaged is increasing day by day. The industry has a huge potential and it is
growing at a rapid pace.
6. RAW MATERIAL REQUIREMENTS
LLDPE Granules
7. MANUFACTURING PROCESS
LLDPE granules fed into the hoppers of 100 mm and 75mm extruder respectively pass
through the extruders, where they are melted, plasticized and forced through the 2 layer
nips of T die. In the die two layers of LLDPE sheets of required thickness are formed
simultaneously. These two layers are passed through two silicon synthetic cooling rollers
where air bubbles are thermo formed over one roller and simultaneously it is laminated
by forcing other layer by pressure. At this point, vacuum forming of bubble, cooling of
outer surface of both layers and lamination of thermoformed layer on secondary layer
occur simultaneously.
After this the formed layers are cooled and moved forward trimmed and then to the winder
through take off rollers and then to winder.
8. MANPOWER REQUIREMENT
Sr. No. Particulars Nos Salary (Rs.)

1 Manager 1 12000
2 Accountant 1 10000
3 Office Assistant 1 7000
4 Office Boy 1 6000
5 Supervisor 4 36000
6 Skilled 8 64000
7 Semi-skilled 8 48000
8 Unskilled 12 60000
Total 24 1,83,000
9. IMPLEMENTATION SCHEDULE
Estimated implementation time for the project would be 15 to 17 months.
Sr. No. Particulars Time Period
1 preparation of Project report Two months

2 Sanction of loan Four months
3 Selection of Site Two month
4 Registration as Small Scale Unit One month
Time required for procurement of Machinery,
5 erection and commissioning six Months
6 Trial production and commissioning Two Months
10. COST OF PROJECT
Sr. No. Particulars Rs. In lakhs

1 Land and Building 32.00
2 Plant and Machinery 45.00
3 Miscellaneous Assets 7.85
4 P & P Expenses 4.00
Contingencies @ 10% on land and
5 building and plant and machinery 7.70
6 Working capital margin 54.31
Total 150.86
11. MEANS OF FINANCE
Rs.
Sr. No. Particulars
(lakhs)
1 Promoter's contribution 45.258
2 Bank Finance 105.602
3 Total 150.86
12. WORKING CAPITAL CALCULATION
Rs. Stock Promoter Margin Bank

Sr. No. Particulars
lakhs Period days Margin Amt. Finance
1 Salaries and wages 1.83 30 1 1.83 -
Raw material and
2 47.74 30 0.5 23.87 23.87
packaging material
3 Utilities 4.82 30 0.5 2.41 2.41
4 Debtors 65.5 30 0.4 26.2 39.3
Total 119.89 54.31
13. LIST OF MACHINERY REQUIRED
Sr. No. Particulars Rs. In Lakhs

1 Air Bubble sheet Plant 45
Total 45
The machinery is manufactured by a number of companies such as M/s. Konark Plastomac

Pvt. LTd., M/s. Remika Plastic Machinery Industries, Sunrise Palstic Machinery Mfg;
M/s.Polyprise Incorporatedetc.
14. PROFITABILITY CALCULATIONS
(Rs. )
Sr.
No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Sales
(A) Realization 52513045 60014909 67516772.4 67516772.4 67516772.4
Cost of
(B) Production
1 Raw material 40101600 45830400 51559200 51559200 51559200
2 Utilities 4045440 4623360 5201280 5201280 5201280
3 Salaries 2196000 2371680 2547360 2723040 2898720
Repairs and
4 maintenance 450000 470000 490000 510000 530000
Selling
expenses (3%
on sales
5 value) 1575391 1800447 2025503.172 2025503.17 2025503.172
Administrative
Expenses
(other
6 expenses) 520000 540000 560000 580000 600000
Total 48888431 55635887 62383343.17 62599023.2 62814703.17
Profit before
interest &
(C) depreciation 3624614 4379022 5133429.228 4917749.23 4702069.228
depreciation 1155000 1155000 1155000 1155000 1155000
Profit Before
term loan and
tax 2469614 3224022 3978429.228 3762749.23 3547069.228
Interest on
term loan
(11%) 1120136 995676 829730 663784 497838
Profit before
tax 1349478 2228346 3148699.228 3098965.23 3049231.228
Tax (30%) 404843.5 668503.7 944609.7684 929689.568 914769.3684
Total Profit 944634.8 1559842 2204089.46 2169275.66 2134461.86
Underlying assumptions for probability calculation are:-
The installed capacity of the plant is assumed at 675 MT per annum. The capacity utilization for
the first year is taken at 70% of installed capacity which will be increased to 90% in the third
year. The raw material price is assumed at Rs. 86/- per KG. The selling price is taken at Rs.111/-
per KG. Power cost is taken at Rs.8/- per unit. Interest rate on long term loan is taken at 11%.
15. BREAKEVEN ANALYSIS
Fixed Cost (FC): Rs. In lakhs

Wages & Salaries 21.96
Repairs & Maintenance 4.5
Depreciation 11.55
Admin. & General expenses 5.2
Interest on Term Loan 11.2
Total 54.41
Fixed Cost: 54.41

Profit After Tax: 9.44
BEP = FC x 100/FC+P
54.41 /63.85 x 70/100 x 100
59.65%
16. STATUTORY/GOVERNMENT APPROVALS
There is no specific statutory requirement for plastic industry process. However, MSME
registration various taxation related registration and labour law related compliances have
to be ensured. Entrepreneur may contact State Pollution Control Board where ever it is
applicable.
17. BACKWARD & FORWARD LINKAGES
There are no specific backward or forward linkages related techno-economic advantages

or synergies for this type of project. However, in future after achieving certain growth
entrepreneur may consider backward linkage.
18. TRAINING CENTRE AND COURSES:
There are number of institutions providing facilities and training courses on

production/marketing for the proposed project. These are Central Institute of Plastic
Engineering and Technology (CIPET), Indian Institute of Packaging Management (IIPM),
Plastic and Rubber Institute (PRI), Indo German Tool Room (IGTR), etc.
Udyamimitra portal ( link : www.udyamimitra.in ) can also be accessed for handholding

services viz. application filling / project report preparation, EDP, financial Training, Skill
Development, mentoring etc.
Entrepreneurship program helps to run business successfully is also available from

Institutes like Entrepreneurship Development Institute of India (EDII) and its affiliates all
over India.
Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery
manufacturers have been taken from reliable sources, to the best of knowledge and
contacts. However, no responsibility is admitted, in case any inadvertent error or
incorrectness is noticed therein. Further the same have been given by way of information
only and do not carry any recommendation.

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Profile No.

2. PRODUCTS AND ITS APPLICATION

 Packaging of fragile items like crockery, Glassware, Ceramic Products etc.

4. INDUSTRY OUTLOOK AND TRENDS

5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY

Sr. No. Particulars Nos Salary (Rs.)

Estimated implementation time for the project would be 15 to 17 months.

Sr. No. Particulars Time Period

1 preparation of Project report Two months

10. COST OF PROJECT

Sr. No. Particulars Rs. In lakhs

12. WORKING CAPITAL CALCULATION

Rs. Stock Promoter Margin Bank

13. LIST OF MACHINERY REQUIRED

Sr. No. Particulars Rs. In Lakhs

The machinery is manufactured by a number of companies such as M/s. Konark Plastomac

15. BREAKEVEN ANALYSIS

Fixed Cost (FC): Rs. In lakhs

Fixed Cost: 54.41

16. STATUTORY/GOVERNMENT APPROVALS

There are no specific backward or forward linkages related techno-economic advantages

18. TRAINING CENTRE AND COURSES:

There are number of institutions providing facilities and training courses on

Udyamimitra portal ( link : www.udyamimitra.in ) can also be accessed for handholding

Entrepreneurship program helps to run business successfully is also available from

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