DEV TRADING COMPANY
PROJECT REPORT
PROJECT REPORT
ON
Manufacturing of Plastic Dana
Plastic recycling is the process of recovering the scrap and plastic waste and reprocessing it
into a useful product.
The market potential for this business is vast mainly because of the higher reason to save
this earth against global warming and the practices of small and big companies to be free
from accusations of polluting this earth through the use of plastic they make and waste for
producing their own products
As a result there’s a need among big companies like Adidas, Coca-Cola m, Unilever,
PepsiCo etc to rather make use of the recycled plastic.
The recycled plastic undergoes a process as follows
Selection of plastic
Sorting
Shredding
Cleaning
Melting
Pellet making
These below are the sectors who dump the plastic the most and require the recycled ones
produced by your company to do their bit
Now the Uses of plastic can be determined on the basis of the types of recycled
plastics which are as follows:
Polyethylene terephthalate: This type of recycled plastic is used in manufacture of water,
soft drinks, peanut butter and salad dressing bottles
High density polyethylene: This type of recycled plastic is used to manufacture water,
juice and milk bottles and used as trash bags for retail, business and households
Polyvinyl chloride: This type of recycled plastic is used for manufacturing PVC pipes,
cling films etc.
On the basis of the types of plastic recycled into
Bottles
Films
Fibre
Foam
Pipes
Wire and cable
Licenses required
Licenses required to set up this business are-
NOC by state pollution control board
Factory license
MSME registration
GST registration
FSSAI certificate
Target consumers
The target consumers for your recycled plastic business would be
o Water bottle manufacturers: The mostly immensely dumped plastic, water bottles, are
they major consumers for recycled plastic processed by you that is polyethylene
terephthalate because of its strength, toughness and clarity supply recycled plastic
o Beverage industry : These require the recycled plastic bottles to curb the plastic waste and
serve the customers juices, soft drinks, hard drinks etc in a recycled plastic bottles
o Packaging industry: The industry dealing in plastic wraps, plastic carry bags, plastic boxes
etc also require the recycled plastic
o Bottle manufactures: The bottle manufactures of condiments, salad dressings, dips, sauces
etc require recycled plastic bottles too
o Retail shops and supermarkets: These require recycled plastic in the form of trash bags,
dumpsters etc to avoid use of harmful plastics and go green
o Construction firms: These require recycled plastic in order to construct ceilings, windows
made of recycled plastics
o Government: The molten form of recycled plastic can also be used to construct highway
roads. 60 kg of it can be used to make a 500 metre road that is 8 metre long
o Pipe manufactures: The PVC pipes also require recycled plastic for its production
Area required
The area required to set up a plastic recycling plant is 200 sqft- 500 sqft
Raw materials required
The raw materials required to recycle plastic are
o Mixed plastic ( HDPE, LDPE, PE, PP, NYLON, TEFLON) etc
o Water
o Sanitisers
o Containers
o Tools
Machinery
The machinery required to set up this business is
o Plastic sorting machine
o Plastic shredding machine
o Plastic cleaning and sanitising machine
o Plastic melting machine
o Dyer
o Cooler
o Pellet making machine
Manpower required
The manpower required to set up this plastic recycling busines is
o 1-technician
o 2-skilled workers
o 4-unskilled workers
Moreover ample training to these workers in terms of the following must also be provided
with
o Machinery usage
o Equipment handling
o Safety and precautions
Business model and growth
The business model of a plastic recycling business can be defined using these four variants
i. Value proposition: The value which this business is likely to priced to you use
o Easily available raw materials and in large amounts, literally
o Big and many target customers
i. Target consumers: The target consumers for this business are as follows:
o Retail and supermarkets stores
o Water bottle manufactures
o Beverage industry
o Construction industry
o Packaging industry
o Pipe manufacturers
i. Competitor review: The few key competitors of this noble busines are as follows
o Go green envirotek
o Skrapnet
o DB L Ventures pvt ltd
o Kyra
i. Marketing strategy: The marketing strategy that can be implemented by your unit is as
follows
o Advertising: Through social media by sweating up pages, contests etc
o Print media: through articles, blogs, claims justifying your recycling processes etc
Process of Manufacturing:
Waste plastic materials are collected from various sources and segregated as per
grade,colour and quality. The waste plastic materials are cleaned and washed with water
before further processing. The cleaned plastic materials are put in a cutting machine and
converted into small pieces. The cut pieces are put in an extruder where it is melted to give
granule lumps. These lumps are put in grinding machine to obtain granules of required size
and packed in 50 kgs. and 100 [Link] bags for despatch to plastic processing units
BUSINESS PLAN FORMAT
Name of the Firm Dev Trading Company
Name of
Plastic Recycling & manufacturing
business/project
Location Chatta, Mathura, Uttar Pradesh, 281404
Type of Organization
(Proprietary/ PROPRIETARY
Partnership)
Address (with Phone, Near Ch. Charan School,0, Chatta, Mathura, Uttar
email) Pradesh, 281404
Name of the Chief
Jitendra Singh
Promoter(s)
Names of Partners N/A
Details of the Proposed Project
Land and Building:
[Link] Particulars Area Required Total Value Remarks
1. Land
2. Building
Machineries/Equipments:
[Link] Description Nos. required Rate (Rs) Total value(Rs)
1. Blow Extruder 1 1100000 1100000
2. Scrap Grinder 1 135000 135000
3 Color Mixer 1 90000 90000
4 Washer 1 90000 90000
5 Mould 2 75000 150000
1565000
Misc. Fixed Assets:
[Link] Particulars [Link] Rate (Rs) Total value(Rs)
1 Computer & 2 50000 100000
Accessories
2 Video Cam Recorder 1 5 25000
125000
Preliminary and Pre-operative Expenses:
[Link] Particulars Amount (Rs) Remarks
1 Interest during 84375
implementation
2 Establishment expenses 100000
3 Start-up expenses 200000
4 Misc. expenses 200000
584375
Working Capital:
[Link] Item Duration Total Value (Rs)
I YR II YR III YR IV YR V YR
1. Raw- 10 Days 897000 906576 915546 924516 933486
material
stock
2 Semi- 5 Days 448500 493350 538200 583050 627900
finished
goods
3 Finished 5 days 448500 493350 538200 583050 627900
goods
stock
4 Sales on 5 days 448500 493350 538200 583050 627900
credit
5 Production
expenses
6 2242500 2386626 2530146 2673666 2817186
Total Cost of the Project
[Link] Particulars Total value (Rs)
1 Fixed Capital (sum of 2.1+2.2+2.3) 3390000
2 Working Capital (Sum of 2.5) 2242500
3 Preliminary & Preoperative Expenses 584375
(sum of 2.4)
Total 6216875
Means of Finance:
[Link] Particulars Amount (Rs) Remarks
1 Own Investment/Equity 874375
2 Term Loan 2500000
3 Working capital Loan 2242500
4 Any other source (subsidy etc) 600000
Total 6216875
Sales Revenue: (Pricing)
[Link] Items (s) Quantity Rate/Unit (Rs) Sales
Sold/Yr Realizations
(Rs)
1 Plastic Granules 357000 116 41412000
Raw material (annual) Requirement:
[Link] Item (s) Quantity Rate (Rs) Total value
(Rs)
1 HDPE 250000 120 30000000
Master Batch 400 2000 800000
30800000
Utilities:
[Link] Particulars Annual Remarks
Expenditure
1 Power/electricity 480000
2 Water 100000
3 Coal/Oil/Steam 10000
4 Transport 200000
5 Any other item 100000
Total 890000
Man Power (Salaries/Wages):
[Link] Particulars No. Wages/Salary Annual
p.m (Rs) expenses (Rs)
1 Skilled 2 15000 360000
2 Semi-skilled 2 12000 288000
3 Unskilled 2 9000 216000
4 Office staff 2 12000 288000
5 Any other 2 10000 240000
Total 1392000
Repairs and Maintenance:
[Link] Particulars Amount (Rs)
1 Heaters 36000
2 Labor Assistance 36000
72000
Selling and Distribution Expenses:
[Link] Particulars Amount (Rs) Remarks
1 Publicity expenses 100000
2 Traveling 200000
3 Freight 50000
4 Commission 50000
5 Misc. 25000
425000
Administrative Expenses:
[Link] Particulars Amount (Rs) Remarks
1 Stationery & Printing 24000
2 Post/telephone 48000
3 Entertainment Expenses 50000
4 Miscellaneous
Total 122000
Interest:
Year Loan amount Interest (Rs) Installment Balance (Rs)
Outstanding (Rs) (Rs)
2500000 325000 500000 2000000
2000000 260000 500000 1500000
1500000 195000 500000 1000000
1000000 130000 500000 500000
500000 65000 500000 0
Depreciation:
[Link] Type of Asset Cost of Asset Expected Life Depreciation
1 Machinery 1640000 8 13
2 Computer Accessories 100000 5 20
Pricing:
Product
Amount
Total product cost per
unit (fixed 96.7
cost/unit+variable
/unit)+tax
Desired Profit 20 %
Sale Price (including tax) 121
Profitability Projections
S.N Particulars Amount (Rs)
o
Year-1 Year-2 Year-3 Year-4 Year-5
A Sales realization 41412000 43482600 45553200 47623800 49694400
B Cost of producing
1 Raw materials 29988000 31487400 32986800 34486200 35985600
2 Utilities 890000 934500 979000 1023500 1068000
3 Salaries/wages 1392000 1416000 1531200 1600800 1670400
4 Repairs & maintenance 72000 75600 79200 82800 86400
5 Selling& distribution 425000 429250 433500 437750 442000
expenses
6 Administrative expenses 122000 123220 124440 125660 126880
7 Interest 325000 260000 195000 130000 65000
8 Rent
9 Misc. expenses
TOTAL –B (1 TO 9) 33214000 34725970 36329140 37886710 39444280
C Gross profit(A-B)/Loss 8198000 8756630 9224060 9737090 10250120
D Less: Depreciation 213200 213200 213200 213200 213200
E Repayment 500000 500000 500000 500000 500000
F Net profit/loss 7698000 8256630 8724060 9237090 9750120
G Income-tax 30% 30 % 30 % 30 % 30 %
H Retained surplus 5388600 5779641 6106842 6465963 6825084
Synopsis
Machine & Equipment Details
Scrap Grinders
High speed Mixers
Extrusion Blow Molding
Head Trimming
Working Process
Recycling
Generation of Raw Material by Ratio
Color Mixing
Blowing
Trimming
Work Labor Implementation and Product Layout
Grinding
Mixing
Blowing
Trimming
End-Product
Plastic Granules
Scrap Grinder:
Motor: 15 HP
Drive: Pulley Drive
RPM:1440
Output: 250kg to 350 kg per hour
The most recycled plastic, HDPE (high-density polyethylene)
or number 2, is downcycled into plastic lumber, tables, roadside curbs,
benches, truck cargo liners, trash receptacles, stationery (e.g. rulers) and other
durable plastic products and is usually in demand.
Scrap Grinders plays major role in manufacturing process and it plays vital
display of Recycling the Plastic Components. In this process used Plastic
components are Fine processed and Ventilated through using high speed
Air ,and grinded into small Sizes like chips and as Shown in above Picture.
The Motion is implemented through Pulley Drive using High Speed Serious Motors.
eg: Kirloskar
The most recycled plastic, HDPE (high-density polyethylene) or number 2, is
downcycled into plastic lumber, tables, roadside curbs, benches, truck cargo
liners, trash receptacles, stationery (e.g. rulers) and other durable plastic
products and is usually in demand.
2. High Speed Mixer
Motor: 15 HP
Drive: Pulley Drive
RPM :1440
3. Blow molding
Extrusion blow molding
Blow molding is a manufacturing process by which hollow plastic parts are formed. In
general, there are three main types of blow molding: extrusion blow molding, injection
blow molding, and injection stretch blow molding. The blow molding process begins with
melting down the plastic and forming it into a parison or in the case of injection and
injection stretch blow moulding (ISB) a preform. The parison is a tube-like piece of plastic
with a hole in one end through which compressed air can pass.
The parison is then clamped into a mold and air is blown into it. The air pressure then
pushes the plastic out to match the mold. Once the plastic has cooled and hardened the mold
opens up and the part is ejected.
Extrusion blow molding
Extrusion blow molding
In extrusion blow molding (E M), plastic is melted and extruded into a hollow tube (a parison). This
parison is then captured by closing it into a cooled metal mold. Air is then blown into the parison, inflating
it into the shape of the hollow bottle, container, or part. After the plastic has cooled sufficiently, the mold is
opened and the part is ejected.[2] Continuous and Intermittent are two variations of Extrusion Blow
Molding.
Working Process
Recycling
Before recycling, most plastics are sorted according to their resin type. In the past, plastic re
claimers used the resin identification code (RIC), a method of categorization of polymer
types, which was developed by the Society of the Plastics Industry in 1988. Polyethylene
terephthalate, commonly referred to as PET, for instance, has a resin code of 1. Most plastic
re claimers do not rely on the RIC now; they use automatic sort systems to identify the resin,
such as near infrared (NIR) technology. Some plastic products are also separated by color
before they are recycled. The plastic recyclables are then shredded. These shredded fragments
then undergo processes to eliminate impurities like paper labels. This material is melted and
often extruded into the form of pellets which are then used to manufacture other products.
Generation of Raw Material by Ratio
The Preparation of Raw material is depends upon the application of End product and Economic Factors.
Hence the Quality of the product is directly distinguished by their Raw material Ratio and indirectly
affects the price of the Product.
An important measure of the profitability of an energy company. The higher the recycle ratio, the greater
the profitability of the company
The recycle ratio equals the profit per barrel divided by the total cost of discovering and extracting that
barrel (more commonly known as the netback divided by the finding and development costs).
Color Mixing
Master batches plays vital role. Initially variants are shown by their different Colors and Sizes The Regular
colors are
Red
Orange
Blue
Green
Yellow
End-Product
