Profile No.

: 71 NIC Code:22203

BOPP SELF ADHESIVE TAPE

1. INTRODUCTION

The packaging industry in India, which started on low ebb in the 1950’s, has grown
slowly and steadily in both quality and quantity. The 70’s and 80’s witnessed a
remarkable change in materials as well as machinery. This has not only given a face-lift
to the industry but also opened it up for innovations. In this period, the industry by and
large, depended on domestic resources for materials as well as machinery. This was due
to various restrictions on imports. Around the mid 90’s, liberalisation opened the industry
further and it began to reflect in the changes in consumers’ consumption pattern.

2. PRODUCTS AND ITS APPLICATION

These tapes are used in electrical insulation purpose, in packaging, sealing and a various
other general uses. These tapes are also used for general labelling with printing.

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

Packaging in India is an Rs.11, 500 crores industry and growing at the rate of 18 per
cent annually. The global market for packaging is US $900 billion and India’s share is
only US $3 billion, but while the per capita expenditure on packaging in the US is a
whopping US $125, it is only $6.5 in India. Therefore, there is a huge potential for
growth in the Indian packaging industry.
4. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY

The BOPP Adhesive Tapes are used for packaging. It is consumed daily in large
quantities by all industrial and commercial organisations. From packing courier covers
and bags to packing of pharmaceutical cartons, everywhere, the self-adhesive tapes are
consumed. The consumption increases in line with the improved standard of living and
business activity in the society. Therefore the consumption of this product is bound to
increase further.

5. RAW MATERIAL REQUIREMENTS

The materials required for manufacturing self-adhesive tapes are the following:
12 mm BOPP film in 1000 mm wide rolls.

6. MANUFACTURING PROCESS

The BOPP roll is loaded in the coating machine and adhesive applied on one side. The
coated roll is loaded in the slitting machine and the slit tapes wound in the paper core of
required width automatically. The paper core of required width is obtained from the
automatic core cutting machine by cutting from the long paper core.

7. MANPOWER REQUIREMENT

Sr. No. Particulars Nos Salary (Rs.)

1 Manager 1 12000
2 Accountant 1 10000
3 Office boy cum Store Keeper 1 5000
4 Unskilled Worker 4 14000
5 Supervisor 1 7500
6 Skilled worker 2 14000
7 Semi-Skilled Worker 4 18000
8 Watchman 1 5000
Total 15 85500
 8. 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 Twomonth
4 Registration and other formalities One month

5 Machinery procurement, erection and Installation six Months

6 Trial production and commissioning Two Months

9. COST OF PROJECT

Sr. No. Particulars Rs. In lakhs

1 Land and Building 30.00
2 Plant and Machinery 44.11
3 Miscellaneous Assets 3.25
4 P & P Expenses 2.35
Contingencies @ 10% on land and building and
5 plant and machinery 7.41
6 Working capital margin 65.07
Total 152.19

10. MEANS OF FINANCE

Sr. No. Particulars Rs. (lakhs)

1 Promoter's contribution 45.657
2 Bank Finance 106.533
152.19
 11. WORKING CAPITAL CALCULATION

Stock Promoter Margin Bank

Sr. No. Particulars Rs. lakhs
Period days Margin Amt. Finance
1 Salaries and wages 0.85 30 1 0.85 -
Raw material and
2 68.21 30 0.5 34.105 34.105
packaging material
3 Utilities 0.56 30 0.5 0.28 0.28
4 Debtors 74.58 30 0.4 29.832 44.748
Total 144.2 65.067

12. LIST OF MACHINERY REQUIRED

Sr. No. Particulars Rs. lakhs

1 Coating machine 28.5
2 slitter turret machine with accessories 6.51
3 Automatic core cutting machine 5.50
4 Baby slitter 1.80
5 Salvage rewinding machine 1.80
Total 44.11

The major machinery required for the project, namely, protein plant is manufactured by
a number of manufacturers such as Remika Plastic Extrusion technology,
KonarkPlastomac Pvt. Ltd.;
 13. PROFITABILITY CALCULATIONS
(Rs. )
Sr. No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Sales Realization per
(A) annum 89349750 102114000 114878250 114878250 114878250
(B) Cost of Production
Raw material per
1 annum 81854745 93548280 105241815 105241815 105241815
2 Utilities 472500 540000 607500 607500 607500
3 Salaries 1026000 1077300 1128600 1128600 1128600
Repairs and
4 maintenance 250000 265000 280000 295000 310000
Selling expenses (3%
5 on sales value) 2680492.5 3063420 3446347.5 3446347.5 3446347.5
Administrative
Expenses (other
6 expenses) 315000 335000 355000 375000 395000
Total 86598737.5 98829000 111059262.5 111094262.5 111129262.5
Profit before interest &
(C) depreciation 2751012.5 3285000 3818987.5 3783987.5 3748987.5
depreciation 1111650 1111650 1111650 1111650 1111650
Profit Before term
loan and tax 1639362.5 2173350 2707337.5 2672337.5 2637337.5
Interest on term loan
(11%) 1113269.85 937490.4 703117.8 468745.2 234372.6
Profit before tax 526092.65 1235859.6 2004219.7 2203592.3 2402964.9
Tax (30%) 157827.795 370757.88 601265.91 661077.69 720889.47
Total Profit 368264.855 865101.72 1402953.79 1542514.61 1682075.43

Underlying assumptions for probability calculation are:-

The installed capacity of the plant is assumed at 700 MT per annum. The capacity utilization is
taken at 70% for the first year. The raw material price is assumed at Rs. 115/- per KG. The
selling price is taken at Rs.140/- per KG. Power cost is taken at Rs.8/- per unit. Interest rate on
long term loan is taken at 11%.

14. BREAKEVEN ANALYSIS

Fixed Cost (FC): Rs. In lakhs

Wages & Salaries 10.26
Repairs & Maintenance 2.5
Depreciation 11.13
Admin. & General expenses 3.15
Interest on Term Loan 11.13

Total 38.17

Fixed Cost: 38.17

Profit After Tax: 3.68
BEP = FC x 100/FC+P
=38.17/41.85 x 70/100 x 100
63.84%

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.

Udyamimitraportal ( 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.