Profile No.

: 80 NIC Code: 22203

PLASTIC BOTTLES (PET)

1. INTRODUCTION

The packaging of hair shampoos in PET blow molded bottles is preferred because of the
high clarity, good impact and availability in assorted shapes and color tints to provide
sales appeal. Major reputed producers of shampoos have standardized the marketing of
their products in PET blow molded bottles.

The basic variance in shape is the circular and oval type. The popular marketing sizes
and related bottle weight for oval bottle range from:

Sr. No. Particulars Particulars

1 50 ml – 10 gms 200 ml – 25 gms
2 100 ml – 17 gms 250 ml – 39 gms
3 125 ml – 18 gms 300 ml – 42 gms

The circular bottle will have a 10 to 15% lower weight for above capacity sizes.

2. PRODUCTS AND ITS APPLICATION

Most of the shampoo producing companies prefers PET bottles because of its
convenience both for the consumers and producers. It is easy to handle and less weight
compared to glass/tin bottles. While marketing it is advantageous to have very distinct
shapes and colours. Additional products besides shampoos which can be packed in PET
bottles and containers would be oils, deodorants, talcum powder, creams, hair tonic,
containers, skin lotions etc.

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/Trend

Plastic and Polymer industries in India is growing at about 5% per annum. There are
mainly two types of polymers such as commodity plastics and engineering plastics. The
products in commodity plastics are well developed and growing at lesser space then
engineering plastics. The trend in consuming industries is to have more sophisticated
and attractive packaging. Therefore the demand for well-designed and printed bottles
are ever increasing. Moreover glass packing material is being replaced by plastic due to
ease of production, reduced cost, printability and impact resistance.

5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY

The demand for PET blow molded items is increasing, on everyday basis. Lot of
consumer products are packed in PET molded items. Hence, market potential is not a
hurdle for any new entrepreneurs as the personal care sector is growing rapidly. The
simplest shape to blow is a sphere and this is the most economical in terms of surface
are to content in a given volume. Other shape preferred is oval. The consuming sector
such as shampoo and other personal care products are growing at the rate of 14% per
annum.

6. RAW MATERIAL REQUIREMENTS

The major raw material is blow moulding grade PET. This is available from Reliance
Industries Ltd. and other importers.

7. MANUFACTURING PROCESS
 There are two types: (1) Blow moulding process and (2) Extrusion blow moulding &
injection blow moulding.
The extrusion blow moulding process begins with plastication, which involves production
by extrusion of a “PARISON”. The mould seals off the top end of the parison. A blowing
pin is inserted from the bottom and compressed air is blow through it. This parison thus
takes the shape of the mould cavity.

The following properties of end product must be ensured during manufacturing:

 Uniform wall thickness of the container
 Weight of different articles produced in a production run should be consistent
 Uniform color dispensation throughout the article
 Specified dimensional accuracy.

Factory that would be important in replacing conventional packaging materials with PET
shampoo bottles are as follows:

 Economics
 Clarity/Appearance factors
 Functional Container Performance
 Top Load
 Vacuum Resistance
 Impact Strength
 Flexibility
 Availability of Raw Materials
Run Lengths by Size and Filling Locations

8. MANPOWER REQUIREMENT
 Sr. No. Particulars Numbers Salary Per Month

1 Production Engineer/Manager 1 20,000

2 Sales Executive 2 20,000
3 Accountant 1 10,000
4 Store Keeper-cum-Clerk 1 8,000
5 Watchman 1 5,000
6 Supervisor 2 16,000
7 Technicians 2 24,000
8 Workmen 15 75,000
Total 25 1,78,000

9. IMPLEMENTATION SCHEDULE

Sr. No. Particulars Time

1 The Time requirement for preparation of Project report Two months
2 Time requirement for selection of Site One month
3 Time required for registration as Small Scale Unit One Week
4 Time required for acquiring the loan Three months
Machinery procurement, erection and commissioning
5 Recruitment of laborer etc. One month
6 Trial runs One month

10. COST OF PROJECT

Sr. No. Particulars Rs in lakhs

1 Land and Building 35.00
2 Plant and Machinery 16.85
3 Miscellaneous Assets 18.00
4 P & P Expenses 15.00
Contingencies @ 10% on land and building and
30.60
5 plant and machinery
6 Working capital margin 34.68
Total 150.13
11. MEANS OF FINANCE

Means Of Finance

Sr. No Particulars Rs. In lakhs

1 promoters contribution 37.5325
2 Bank Finance 112.5975
   Total 150.13

12. WORKING CAPITAL CALCULATION

Monthly
Total Promoters Margin Bank
Sr. Consumption
value margin amount finance
No. Particulars s
Staff and
1 labour 1 21.36 100% 21.36 0
2 Raw materials 8.17 4.90 60% 2.94 1.96
3 Utilities 0.5 3.24 25% 0.81 2.43
4 other expenses 1 1.32 50% 0.66 0.66
 Total 30.82 25.77 5.05

13. LIST OF MACHINERY REQUIRED AND THEIR MANUFACTURERS

Blow moulding machines for PET shampoo bottles are available from Thailand, Vietnam,
India and China. The proposed capacity of the plant would be 140 tonnes per annum.

Sr. No. Particulars Nos. Rs in lakhs

Hand operated station injection blow moulding
1 machine-120gms-1.25 liters 1 6.00
Hand operated station injection moulding machine-
2 180gms-250 liters. 1 8.00
3 Compressor 1 HP capacity 1 0.10
4 Mould & Dies 6 2.40
5 Electrification and erection 0.15
Total 16.65

 Duex Industrial Systems

H-312, Sharad Industrial Estate,
Lake Road Bhandup West,
Near Bhandup Police Station
Mumbai - 400078
Maharashtra.
  Zeel Plast Machinery 75,
Shyam Industrial Estate,
Odhav Industrial Estate,
Nr. Zaveri Estate,
Singarva-Kathwada Road,
Ahmedabad, Gujarat.

 Ocean International
Nikol, Ahmedabad,
Gujarat

14. PROFITABILITY CALCULATIONS

(Rs. )

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1330000 1496250
(A) Sales Realization
11637500 0 0 14962500 14962500
(B) Cost of Production
Raw materials 5880000 6720000 7560000 7560000 7560000
Utilities 226800 259200 291600 291600 291600
 Salaries 1569960 1783560 1997160 1997160 1997160
Stores and Spares 882000 1008000 1134000 1134000 1134000
Repairs and maintenance 504000 576000 648000 648000 648000
Selling expenses @20% 504000 576000 648000 648000 648000
Administrative Expenses (other
expenses) 92400 105600 118800 118800 118800
1102836 1239756
Total
9659160 0 0 12397560 12397560
(C) Profit before interest &
depreciation 1978340 2271640 2564940 2564940 2564940
depreciation 249750 249750 249750 249750 249750
 Profit Before term loan and tax 1728590 2021890 2315190 2315190 2315190
Interest on term loan (11%) 1194337 1061633 884694 707755 530816
 Profit before tax 534253 960257 1430496 1607435 1784374
Tax (30%) 160275.9 288077.1 429148.8 482230.5 535312.2
373977. 672179. 100134 1125204. 1249061.
Total Profit 1 9 7 5 8

Underlying assumptions for probability calculation are:-

The installed capacity of the plant is assumed at 120 MT per annum. The capacity utilization is
taken at 70% for the first year producing about 85 MT per annum. The raw material price is
assumed at Rs. 72/- per KG. The selling price is taken at Rs.136/- per KG. Power cost is taken
at Rs.8/- per unit. Interest rate on long term loan is taken at 11%.

15. BREAKEVEN ANALYSIS

Sr. No. Fixed Cost (FC): Rs. In lakhs

1 Wages & Salaries 15.69
2 Repairs & Maintenance 0.50
 3 Depreciation 2.49
4 Admin. & General expenses 0.92
5 Interest on Term Loan 11.94

Total 31.40

Fixed Cost: 31.40

Profit Before Tax: 5.34
BEP = FC x 100/FC+P
31.40/36.74x 70/100 x 100
59.82 %

16. STATUTORY/ GOVERNMENT APPROVALS

There is no specific statutory requirement for plastic processing industry. However MSME
& GST registration, IEC Code for Export of end products and local authority clearance
may be required for Shops and Establishment, for Fire and Safety requirement and
registration for ESI, PF and Labour laws may be required if applicable. Entrepreneur may
contact State Pollution Control Board where ever it is applicable.

17. BACKWARD AND FORWARD INTEGRATION

There is no possibility of backward linkages in this case. However as forward linkages

promoter may think of going for higher volume capacity bottles, printing on bottles and
also use of other polymers like HDPE and PP.

18. TRAINING CENTERS/COURSES

For plastic processing industry training and short term courses may be availed from the
Central Institute of Plastic Engineering and Technology (CIPET), Guindy, Tamil Nadu and
its regional centers. More over training and guidance are also provided by polymer
manufacturers such as Reliance Industries Limited.
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.