Co-Extruded Multilayer Film
| Product Code | 303999004 |
| Quality and Standards | As per buyer's specification |
| Uploaded on | January 2008 |
Introduction
Three layer blown film extrusion (also known as blow film co-extrusion) is a process of simultaneously extruding in molten stage three polymers which adhere to each other through a common die to form an integral film of unique strength and barrier properties. The selection of layers depends upon end properties required as well as items to be packed. Some combinations of layers are as under
| Sl. No. | Combination | Application |
| 1 | LL/LD/LL | Heavy-duty bags |
| 2 | LL/HD/LL | Industrial base food oil, backed confectionery, dry vegetables, dry unit, hydrogenated oil, lube oil |
| 3 | LD/SCRAP/LD | Garbage bags. |
| 4 | HD/LD/LD | Industrial base food oil, backed confectionery, dry vegetables, dry unit, and hydrogenated oil, lube oil |
| 5 | HD/LL/Primacor | Oil packaging. |
This project is based on the combination of LLDE/LDPE/LLDPE layer which produces the heavy duty bags.
Market Potential
Now-a-days the Three Layers Coextruded blown film is playing a major role in the packaging industry. It is replacing the conventional packing materials like paper, aluminium foil, tin, glass etc. These films are considered for packing purpose because of specific requirement of self-life and protection to product. The other advantages are excellent resistance to puncturing, heat sealability, gas barrier, high mechanical property high bursting strength etc. Due to these properties these films are having very good scope for packaging.
Basis and Presumptions
- The efficiency of the unit is calculated at 80% of the total production capacity. The unit will work 25 days in a month on three shifts of 20 hrs. basis and 300 days in a year i.e. 6000 hrs. per year.
- The time period for achieving the full envisaged capacity utilization is one year.
- The labour wages are as per the prevailing rates in the market.
- The rate of interest for fixed and working capital is taken @ 14%.
- The margin money requirement for this project is 25%.
- The pay back period of this project is 5 years.
- The land area is 500 sq. meters and the constructed area is 250 sq. meters.
Implementation Schedule
| The time required for preparation of project report | Two months |
| Time required for selection of site | One month |
| Time required for registration as small-scale unit | One week |
| Time required for acquiring the loan | Three months |
| Machinery procurement, erection and commissioning | Two months |
| Recruitment of labours etc. | One month |
| Trial runs | One month |
Technical Aspects
Process of Manufacture
Raw materials are fed into the hopper, which gets heated in the barrel with the help of the heater. The melt in the extruders is conveyed forwarded by the screw rotation. The three extruders individually feed the three channels within the die. All the flow channels converge into a single flow channel, just a little distance before the material is blown out from the annular die orifice. The rotating die ensures even distribution of the melt flow while coming out of the die orifice. The rotating die ensures even distribution of the melt flow while coming out of the die office. The bubble is cooled by means of air circulation arrangements. The predetermined size of the blown film is obtained by inserting compressed air through the die. Iris rings, flattering boards, counter rotating nil rolls draw the film upwards and flatten it into a two layer lay flat film, which is wound on the winder. The film is also treated with corona discharge equipment and then printed on flexography or rotogravure printing machine in desired colours.
Quality Control and Standards
IS10141: 1982/1997 or as per customer's specification.
Production Capacity (per annum)
| Quantity | 630 MT |
| Value |
Motive Power
The total connected load of the unit is 150 kWH. On Assuming 60% utilization of the connected load.
Pollution Control
This unit has not been identified as the pollution making industry. However, proper ventilation of the working shed may be assured.
Energy Conservation
Production by proper planning may save the energy.
Financial Aspects
Fixed Capital
(i) Land and Building
Area sq. mtrs. |
Rate Rs/ sq. mtrs. |
Value (Rs.) |
|
| Land | 500 | 2500 | 1250000 |
| Working shed | 250 | 5000 | 1250000 |
| Office and Stores | 100 | 5000 | 500000 |
| Total | 3000000 | ||
(ii) Machinery and Equipments
Description |
Qty. (Nos.) |
Value (Rs.) |
| Production Unit | 1 | 4000000 |
| Three layer co-extrusion blown film plant with three single screw 47 mm extruder and accessories. | ||
| Corona surface treatment plant | 1 | 250000 |
| Three/four colour Rota Gravure Printing Machine | 1 | 700000 |
| Sliter-cum-regrinder machine | 1 | 150000 |
| Testing equipment | LS | 60000 |
| Electrification and Installation charges @ 10% of cost of machinery and equipment. | 516000 | |
| Total cost of Machinery and equipment | 5676000 | |
| Cost of office equipment/ working Table etc. | 80000 | |
| Total | 5756000 | |
| Pre-operative Expenses | 25000 |
| (Project cost, non-refundable deposits) Total fixed capital (i+ii+iii) | 8781000 |
B. Working Capital (per month)
(i) Personnel
Designation |
No. |
Salary (Rs.) |
Total (Rs.) |
| Manager | 1 | 15000 | 15000 |
| Machine Operator | 2 | 8000 | 16000 |
| Skilled Workers | 3 | 5000 | 15000 |
| Clerk-cum-accountant | 1 | 5000 | 5000 |
| Unskilled Workers | 3 | 3000 | 9000 |
| Peon | 1 | 3000 | 3000 |
| Total | 63000 | ||
| Perquisites @ 22% of Salaries | 13860 | ||
| Total | 76860 | ||
| or Say | 77000 | ||
(ii) Raw Materials Including Packaging Requirement (per month)
Particulars |
Qty. |
Rate/ Kg. |
Value (Rs.) |
| LDPE/LLDPE | 52,500 | 78 | 4095000 |
| Printing Ink | 60000 | ||
| Packing Material | 8000 | ||
| Total | 4163000 |
(iii) Utilities (per month)
(Rs.) |
|
| Power 96 kw ×500 hrs. × Rs. 4 ×0.6 utilization | 115200 |
| Fuel | 15,000 |
| Water | 2000 |
| Total | 117200 |
(iv) Other Contingent Expenses (per month)
Particulars |
(Rs.) |
| Postage/Stationery | 10000 |
| Telephone | 2000 |
| Consumable Store | 2000 |
| Repair and Maintenance | 5000 |
| Transportation Charges | 20000 |
| Advertisement and Publicity | 10000 |
| Insurance | 5000 |
| Total | 54000 |
(Rs.) |
|
| Staff and labour | 77000 |
| Raw material | 4163000 |
| Utilities | 117200 |
| Other Contingent Expenses | 54000 |
| Total | 4411200 |
| Total Recurring Expenditure of 2 Months | 8822400 |
C. Total Capital Investment
| Fixed capital | 8781000 |
| Working capital | 8822400 |
| Total | 17603400 |
Machinery Utilization
Co-extrusion process will be the bottleneck operation for this project. The production capacity is 105 kgs. per hour.
Financial Analysis
Cost of Production (per annum) |
(Rs) |
| Total recurring cost | 52934400 |
| Depreciation on building @ 5 % | 87500 |
| Depreciation on machineries @ 10% | 567600 |
| Depreciation on office equipment @ 20% | 16000 |
| Interest on total Capital investment @ 14% | 2464476 |
| or Say | 56070000 |
Turnover ( per year )
Item |
Qty. MT |
Rate per Kg. |
Value (Rs.) |
| Co-extruded two-layer film | 617 | 105000 | 64785000 |
| Scrap | 13 | 26000 | 338000 |
| Total | 65123000 | ||
Net Profit (per year)
Turnover (Rs.) |
Cost of Production (Rs.) |
Profit (Rs.) |
| 65123000 | 56070000 | 9053000 |
Net Profit Ratio
Net profit per year Turnover 9053000 × 100 |
|
= 65123000 |
|
29.2% |
Net Profit Ratio
Net profit per year Total investment 9053000 × 100 |
|
= 17603400 |
|
51.43% |
Break-even Point (% of Total Production Envisaged)
Fixed Cost |
(Rs) |
| Depreciation on machinery and equipment | 567600 |
| Depreciation on office equipment | 16000 |
| Depreciation on Building @ 5 % | 87500 |
| Interest on total capital investment | 2464476 |
| Insurance | 60000 |
| 40% of salary and wages | 30800 |
| 40% of other contingent expenses excluding insurance | 19600 |
| Total | 3245976 |
| or Say | 3246000 |
| B.E.P | Fixed cost × 100 Fixed cost + profit
|
|
3246000 × 100 3246000 +9053000 |
||
3246000 × 100 12299000 |
||
26.39 % |
Addresses of Machinery and Equipment Suppliers
Co-extrusion Blown Film Plan
- M/s. Klockner Windsor India Ltd.
5403, G.I.D.C. Industrial Estate,
Phase IV, Vatva,
Ahmedabad-382445 - M/s. Boolani Engineering Corporation
Prabhadevi Industrial Estate,
403, Veer Savarkar Marg,
Mumbai-400025 (Maharashtra) - M/s. Kolsite Machine Febrik Ltd.
P. O. Box 7368,
Veera Desai Road,
Mumbai-400058 (Maharashtra) - M/s. Brimco Plastic Machinery Pvt. Ltd.
Brimco House, Plot No. 55,
Govt. Industrial Estate,
Charcop, Kandivli West,
Mumbai-400067, (Maharashtra)
Carona Surface Treatment Plant
- M/s. Kohli Industries
6, New Office Bldg.,
Sona Panchayat Road,
Andheri East,
Mumbai. - M/s. Industrial Electronics Pvt. Ltd.
19-21, Ambalal Doshi Marg, Fort,
Mumbai-400023
Rotogravure Printing Machinery
- M/s. Big Ban Engineering Works
4, Sadi Bazar,
171, Maulana Azad Road,
Madanpura,
Mumbai-400008 - M/s. Print and Paper Sales Pvt. Ltd.
Post Boxt No. 394,
4/7, A Waterloo Street,
Kolkata-700069
Slitter-Cum-Rewinder
- M/s. Print and Paper Sales Pvt. Ltd.
Post Box No. 394,
4/7, A, Waterloo Street,
Kolkata-700069 - M/s. Arshed Electronics Pvt. Ltd.
305, Hammer Smith Ind. Estate,
Shitla Devi Temple Road,
Mahim, Mumbai-400016
Addresses of Raw Material Suppliers
- M/s. Indian Petro-Chemicals Corp. Ltd.
Post Office- Petro-Chemicals,
Distt. Vadodara-391346 - M/s. Union Carbide India Ltd.
Chemical and Plastic Division,
15, Mathew Road,
Mumbai-400004 - M/s. Alkali and Chemicals Corporation of India Ltd.
34, Chowringhee Road,
Kolkata-700021 - M/s. Bindal Agro Chem Ltd.
12th Floor, Gopala Tower,
25, Rajendra Place,
New Delhi-110008 - M/s. Polyolefins Industries Ltd.
Mafatlal Centre,
Nariman Point,
Mumbai-400021.
For further information please contact
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
