This document provides information on plastic carry bags, including:
1) Plastic carry bags are commonly used for retail shopping and packaging various goods. They are produced in various sizes and colors using different types of handles.
2) Carry bags have applications for local packaging and retail shopping.
3) The industry is growing at 5% annually with increasing demand for plastic carry bags due to retail sector growth.
This document provides information on plastic carry bags, including:
1) Plastic carry bags are commonly used for retail shopping and packaging various goods. They are produced in various sizes and colors using different types of handles.
2) Carry bags have applications for local packaging and retail shopping.
3) The industry is growing at 5% annually with increasing demand for plastic carry bags due to retail sector growth.
This document provides information on plastic carry bags, including:
1) Plastic carry bags are commonly used for retail shopping and packaging various goods. They are produced in various sizes and colors using different types of handles.
2) Carry bags have applications for local packaging and retail shopping.
3) The industry is growing at 5% annually with increasing demand for plastic carry bags due to retail sector growth.
This document provides information on plastic carry bags, including:
1) Plastic carry bags are commonly used for retail shopping and packaging various goods. They are produced in various sizes and colors using different types of handles.
2) Carry bags have applications for local packaging and retail shopping.
3) The industry is growing at 5% annually with increasing demand for plastic carry bags due to retail sector growth.
Shopping & Carrier bags have recently become an integral part of retail selling in India. The advantage of these bags is not only the ease with which product can be carried but also in avoiding unnecessary show of items packed. A colorfully printed shopping bag is used for quite a long time and is taken to variety of places. Thus it acts as an advertisement media for the retail trade.
Blend ratios vary from 10-90% LLDPE in both HD/LLD as well as LD/LLD blends, with thickness varying from 40 microns to 100 microns.
Bags produced are of various sizes, designs and colors depending on the buyers need. Standard sizes being used are:
The bags produced are of different sizes as well as shapes. Also various types of handles, such as:
“Rasi” handle, Suitcase handle, Suitcase with grip type handle, Half round lock type handle are used, ‘D’ punch handle
From single colorup to twelve colors printing is possible. Depending on the quantity, rotogravure, flexo or screen printing process is used.
Advantages of LLDPE films –
1. Excellent draw-down ability makes possible to produce thinner films 2. Very high tensile strength 3. Outstanding puncture resistance 4. Very high tear strength 5. Exceptional hot tack, sealability and resistance to ESCR.
2. PRODUCTS AND ITS APPLICATION
Carry bags are being used for local packaging of vegetables, groceries and stationery etc. as well as for shopping and designer bags for large departmental stores.
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. Plastic carry bags fall in commodity plastics whose consumption is increasing rapidly in India. With Government policy of 100% Foreign Direct Investment in retail business, the demand for permitted carry bag made from plastic will increase many fold in near future. The attractive designs and printing of carry bags will further bust demand in retail business.
5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY
There is good demand for shopping bags in view of opening of New Malls, Garments Shops, Grocery Shops, General Stores, Vegetable Shops, and Sweet Shops etc. Depending upon the end products shopping bags of small and big sizes are made with aesthetic appeal. Good quality printed bags are also made for the customers especially for jewelry, cosmetics etc. with bright and attractive works. Shopping bags/carry bags have huge demand for all purpose which has replaced paper bags in specific applications.
6. RAW MATERIAL REQUIREMENTS
LLDPE Granules may be obtained from Reliance Industries Ltd., GAIL and Haldia Petrochemicals Ltd. Sufficient quantity of LLDPE is now available within the country. There is no other raw material required for the production of carry bags.
7. MANUFACTURING PROCESS
LLDPE or LD/LLDPE granules and color are fed to an extruder, where they are melted and extruded in the form of tube. This tube is inflated into a bubble which is then collapsed to form a lay flat film. The film is then surface treated on a corona treater and then proceeded to a winder. The film roll is brought to a four color flexo machine, where it is printed using rubber rolls.
The printed film is then converted into bags using a bottom or side seal bag making machine. The required handle is then attached to the bag.
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, One month 5 Recruitment of laborer etc. 6 Trial runs One month
10. COST OF PROJECT
Sr. No Particulars Rs. In Lakhs
1 Land & Building 30.00 2 Plant & Machinery 82.26 3 Other Misc. assets 3.00 4 Pre-Operative expenses 1.00 5 Margin for WC 6.00 Total 122.26
11. MEANS OF FINANCE
Sr. No particulars Rs. In lakhs
1 Promoter’s Contribution 30.565 2 Bank Finance 91.695 Total 122.26 12. WORKING CAPITAL CALCULATION
Stock Period Promoter Bank
Sr. No. Particulars Rs. lakhs Margin Amt. days Margin Finance 1 Salaries and wages 9.6 30 1 1.26 - Raw material and 2 20.14 30 0.5 10.07 10.07 packaging material 3 Utilities 2.63 30 0.5 1.315 1.315 4 Debtors 28.19 30 0.4 11.276 16.914 Total 60.56
13. LIST OF MACHINERY REQUIREDAND THEIR MANUFACTURERS
Sr. No Particulars Nos. Rs in Lakhs
1 Extrusion Blow Film Plant 1 4500000 2 Printing machine 1 1351000 3 Bag making machine 1 1800000 4 Scrap Grinder 1 175000 5 Cooling Tower 1 100000 6 Compressor 1 150000 7 Testing Equipment & Other Accessories 50000 8 Cost of Molds& Dies & Mini Expenses 100000 Total 82,26,000
Kabra Extrusiontechnik (KET)
Fortune Terraces, 10th Floor, B Wing, Opp. Citi Mall, Link Road, Andheri-(West) Mumbai-400053 Maharashtra, India. Rajoo Engineers Limited Survey No. 210, Plot No.1, Industrial Area Rajkot Gujarat 360024
REMICA PLASTIC MACHINERY MANUFACTURERS
2/Ab, Sardar Patel Industrial Estate, Near Gujarat Petrol Pump, Shahwadi, Narol, Ahmedabad, Gujarat 382405
Sr. No Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Production/Sales-MTs 283.5 324 364.5 364.5 364.5
A Sales Value 33835725 38669400 43503075 43503075 43503075 1 Raw Materials 24168375 27621000 31073625 31073625 31073625 2 packing material 280000 320000 360000 360000 360000 3 Power 3150000 3600000 4050000 4050000 4050000 4 Wages & Salaries 960000 1036800 1113600 1190400 1267200 5 Repair & maintenance 1120000 1280000 1440000 1440000 1440000 6 Depreciation 972600 972600 972600 972600 972600 Selling , Admin & Genera Exp 1400000 1600000 1800000 1800000 1800000 B Cost Of Production 32050975 36430400 40809825 40886625 40963425 Profit before Interest on term loan and Income tax 1784750 2239000 2693250 2616450 2539650 Sr. No Particulars Year 1 Year 2 Year 3 Year 4 Year 5
C Interest on term loan 972622 864552.9 720460.7 576368.6 432276.4
Profit before tax 812128 1374447.1 1972789.3 2040081.4 2107373.6 D tax 30% 243638.4 412334.13 591836.79 612024.42 632212.08 Profit after tax 568489.6 962112.97 1380952.51 1428057 1475162
15. BREAKEVEN ANALYSIS
Fixed Cost (FC): Rs. In lakhs
Wages & Salaries 9.60 Repairs & Maintenance 11.20 Depreciation 9.76 Admin. & General expenses 14.00 Interest on Term Loan 9.73
Total 54.29
Fixed Cost: 54.29
Profit After Tax: 5.68 BEP = FC x 100/FC+P 54.29 /59.97 x 70/100 x 100 63.37%
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 linkage to carry bags. However, as forward linkages
promoter may think of producing special purpose bags such as liners, lamination material, auto and machinery packing bags and cloth.
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, GAIL and Haldia Petrochemicals 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.
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.
