PROJECT REPORT

Of

PLASTIC INJECTION MOLDING

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Plastic Injection Molding.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : info@udyami.org.in
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE

1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxxxxxxx
Mobile xxxxxxx

5 Product and By Product : PLASTIC CONTAINER

6 Name of the project / business activity proposed : PLASTIC INJECTION MOLDING

7 Cost of Project : Rs.22.94 Lakhs

8 Means of Finance
Term Loan Rs.16.65 Lakhs
Own Capital Rs.2.29 Lakhs
Working Capital Rs.4 Lakhs

9 Debt Service Coverage Ratio : 2.15

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 29%

13 Employment : 8 Persons

14 Power Requirement : 20.00 HP

15 Major Raw materials : Plastic granules(Polypropylene)

16 Estimated Annual Sales Turnover (Max Capacity) : 73.03 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Building /Shed 500 Sq ft 3.00
Plant & Machinery 14.00
Furniture & Fixtures 1.50
Working Capital 4.44
Total 22.94

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.29

Working Capital(Finance) 4.00

Term Loan 16.65

Total 22.94
                                         PLASTIC INJECTION MOLDING

Introduction: Injection molding is a manufacturing process for producing
parts by injecting molten material into a mould. Injection moulding can be
performed with a host of materials mainly including metals (for which the
process is called die-casting), glasses, elastomers, confections, and most
commonly the thermoplastic and thermo setting polymers. Injection molding
is used to create many things such as wire spools, packaging, bottle caps,
automotive parts and components, toys, pocket combs, some musical
instruments (and parts of them), onepiece chairs and small tables, storage
containers, mechanical parts (including gears), and most other plastic
products available today. Injection moulding is the most common modern
method of manufacturing plastic parts; it is ideal for producing high volumes
of the same object. Injection molding machine molds can be fastened in either
a horizontal or vertical position. The majority of machines are horizontally
oriented, but vertical machines are used in some niche applications such as
insert molding, allowing the machine to take advantage of gravity.

Types of Injection Molding Machine: These Machines are classified
primarily by the type of driving systems they use: hydraulic, mechanical,
electrical, or hybrid.

 Hydraulic: Hydraulic presses have historically been the only

option available to molders until Nissei Plastic Industrial Co., LTD
introduced the first allelectric injection molding machine in 1983.
Hydraulic machines, although not nearly as precise, are the
predominant type in most of the world, with the exception of Japan.
 Mechanical: Mechanical type machines use the toggle system for
building up tonnage on the clamp side of the machine. Tonnage is
required on all machines so that the clamp side of the machine does
not open (i.e. tool half mounted on the platen) due to the injection
pressure. If the tool half opens up it will create flash in the plastic
product.
 Electric: The electric press, also known as Electric Machine
Technology (EMT), reduces operation costs by cutting energy
consumption and also addresses some of the environmental
concerns surrounding the hydraulic press. Electric presses have
been shown to be quieter, faster, and have a higher accuracy,
however the machines are more expensive. Hybrid injection
(sometimes referred to as "Servo-Hydraulic") molding machines
claim to take advantage of the best features of both hydraulic and
electric systems, but in actuality use almost the same amount of
electricity to operate as an electric injection molding machine
depending on the manufacturer.

Advantages of using Injection Molding Unit: Following are the

advantages

i. Detailed Features and Complex Geometry: The injection molds are

subjected to extremely high pressure. As a result the plastic within the
molds is pressed harder against the mold compared to any other
molding process. Due to this excessively high pressure, it is possible to
 add a large amount of details into the design of the part. Furthermore,
due to high pressure during the molding process, complex and intricate
shapes can easily be designed and manufactured which otherwise
would have been too complicated and expensive to manufacture.
ii. High Efficiency: Once the injection molds have been designed to the
customer’s specifications and the presses pre-programmed, the actual
molding process is very quick compared to other methods of molding.
Plastic injection molding process hardly takes times and this allows
more parts to be manufactured from a single mold. The high production
output rate makes plastic injection molding more cost effective and
efficient. Typically, hot-runner ejection mold systems produce parts
with more consistent quality and do so with faster cycle times, but it’s
not as easy to change colours nor can hot runners accommodate some
heatsensitive polymers. Learn more about the key differences between
hotrunner and cold-runner systems.
iii. Enhanced Strength: In plastic injection molding, it is possible to use
fillers in the injection molds. These filler reduce the density of the
plastic while it being molded and also help in adding greater strength to
the part after it has been molded. In fields where parts need to be strong
and durable, plastic injection has an option that other molding
processes do not offer.
iv. Ability to Use Multiple Plastic Types Simultaneously: One of the
major advantages of using plastic injection molding for manufacturing
parts is the ability to use different types of plastic simultaneously. This
can be done with the help of co-injection molding, which takes away the
worry about using a specific type of plastic.
v. Automation to Save Manufacturing Costs: Plastic injection molding is
an automated process. A majority of the injection molding process is
performed by machines and robotics which a sole operator can control
and manage. Automation helps to reduce manufacturing costs, as the
overheads are significantly reduced. Furthermore, with reduced labour
force the overall cost of manufacturing the parts is reduced and this cost
saving can easily be passed on to the customer. Furthermore,
automation allows for making precise and accurate injection molds.
 Computer aided design (CAD) and computer aided manufacturing
(CAM) allow close tolerances during the making of the molds.

Injection Molded Plastics Market Analysis: The global injection

molding machine market size accounted for USD 17.05 billion in 2017 and is
estimated to expand at a CAGR of 3.5% by 2025. Growing demand for
lightweight and durable products coupled with increasing adoption from the
automotive and packaging industries is likely to drive this growth over the
forecast period. The rising importance of lightweight materials in the
automotive industry is expected to boost the use of plastic materials in
automotive component manufacturing, which, in turn, will drive the market.
Rapid growth in population, growing industrialization, along with
technological advancements, have augmented the demand for automotive in
emerging markets. It is used in applications such as interior and exterior trim
components, electronic subassemblies, and under-hood applications.

Plastic Injection Molding Manufacturing Process: The Injection

Moulding Process is one of the plastic based product manufacturing process,
this process utilizes a specialized machine called injection moulding machine
which is fundamentally divided into two parts mould and injector. Wide range
of plastic product can be manufactured from this machine, for each differently
shaped product a separate mould is required, thus multiple products of same
or different material can be manufactured on same Injection Moulding
Machine by simply changing its moulds. The raw material is plastic granules
which are supplied to Injection Moulding Machine via Hooper & Feeder
arrangement along with required additives, these raw material are mixed in a
mixer usually integrated within the Machine followed by which these granules
are converted to their semi-solid state utilizing heaters of the injection
moulding machine followed by which this semi-solid plastic is injected into
the mould using screw or plunger arrangement. The mould is then cooled
down utilizing the chiller sub-system of machine and part is ejected out of
mould by ejector pins at command of the operator, these parts are then
collected and placed in their respective bins, followed by appropriate
packaging prior to sale.

Machinery &Equipment’s required: Different Types of Injection

Molding machine based upon capacity is known as Gram weight name like:

 70 Gram Injection Molding Machine

 300 Gram Injection Molding Machine
 3 KG Injection Molding Machine
 50 Tonne Injection Molding Machine
 80 Tonne Injection Molding Machine
 130 Tonne Injection Molding Machine etc.

Rate of the machine vary according to the capacity of the machine. In this
project we have taken the machine with batch of 150 kg and the cost is 14.0
Lac Rs. Injection molding machine is also available in the market of 300 & 500
Kg batch production and price of machine varies accordingly.

Raw Material Requirement for Plastic Injection Molds:

Plastic Granules are required as raw material for injection molding parts
manufacturing. These granules are available in market in different colours and
types. For eg. Polythylene(PE), Polypropylene(PP), Poly styrene(PS),
Alkathene(AT).

However, Polypropylene held the largest market share of over 36.0% in terms
of volume in 2019. This is attributed to its increasing consumption in
automotive components, household goods, and packaging applications.
Polypropylene is increasingly used for electrical connector bases and covers
to provided mechanical and electrical protection on account of its electrical
insulation properties. Other applications include battery housings and food
packaging. Polypropylene is the preferred packaging material for food
packaging as it is durable. Owing to these benefits, the segment is projected to
register a significant CAGR over the forecast period, thereby driving the
overall demand for injection molded plastics.

On an average raw material cost per Kg: Rs. 75-100

Note: In this project plastic container is taken as plastic mold for

manufacturing in Injection plastic molding machine.

Area:

The industrial setup requires space for Inventory, workshop or manufacturing

area, space for power supply utilities and auxiliary like Generator setup. Also
some of the area of building is required for office staff facilities,
documentation, office furniture, etc. Thus, the approximate total area required
for complete industrial setup is 1000 to 1400Sqft. Civil work will cost around
3 Lac (approx.)

Power Requirement –The power consumption required to run all the

machinery could be approximated as 20 hp.

Manpower Requirement– There are requirement of skilled machine

operators to run the machine set. Experience quality engineers are required
for desired quality control. Some helpers are also required to transfer the
material from one work station to other. Office staffs are required to maintain
the documentation. The approximate manpower required is 8 including 1
Supervisor, 1 Plant operator, 1 unskilled worker, 1 Helper and 1 security
Guard. 3 Skilled worker including Accountant, Manager and sales personal
each.

Approvals & Registration Requirement:

Basic registration required in this project:

 GST Registration
 Udyog Aadhar Registration (Optional)
 Choice of a Brand Name of the product and secure the name with
Trademark if require
Bank Term Loan: Rate of Interest is assumed to be at 11%

Depreciation: Depreciation has been calculated as per the Provisions of
Income Tax Act, 1961

Implementation Schedule:
S No. Activity Time required
1. Acquisition of premises 1-2 Months
2. Procurement & installation of Plant & Machinery 1-2 Months
3. Arrangement of Finance 1.5-2 Months
4. Requirement of required Manpower 1 Month
5. Commercial Trial Runs 1 Month
Total time Required (some activities shall run 5-6 Months
concurrently)

FINANCIALS

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.29 -

Reserve & Surplus 3.55 6.10 8.66 11.58 14.75
Depriciation & Exp. W/off 2.55 2.19 1.88 1.62 1.39
Increase In Cash Credit 4.00
Increase In Term Loan 16.65 - - - -
Increase in Creditors 0.51 0.08 0.08 0.09 0.09

TOTAL : 29.55 8.37 10.62 13.29 16.23

APPLICATION OF FUND

Increase in Fixed Assets 18.50 - - - -

Increase in Stock 0.86 0.14 0.15 0.16 0.16
Increase in Debtors 4.18 0.76 0.74 0.79 0.83
Repayment of Term Loan 1.85 3.70 3.70 3.70 3.70
Taxation - 1.83 2.60 3.47 4.42
Drawings 1.00 1.50 3.00 4.00 6.00
TOTAL : 26.39 7.93 10.19 12.12 15.12

Opening Cash & Bank Balance - 3.16 3.60 4.04 5.21

Add : Surplus 3.16 0.44 0.44 1.17 1.11

Closing Cash & Bank Balance 3.16 3.60 4.04 5.21 6.32
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 4.84 7.61 10.67 14.78
Add: Additions 2.29 - - - -
Add: Net Profit 3.55 4.27 6.06 8.11 10.32
Less: Drawings 1.00 1.50 3.00 4.00 6.00
Closing Balance 4.84 7.61 10.67 14.78 19.10
CC Limit 4.00 4.00 4.00 4.00 4.00
Term Loan 14.80 11.10 7.40 3.70 0.00
Sundry Creditors 0.51 0.59 0.68 0.77 0.86

TOTAL : 24.15 23.30 22.75 23.24 23.96

APPLICATION OF FUND

Fixed Assets ( Gross) 18.50 18.50 18.50 18.50 18.50

Gross Dep. 2.55 4.74 6.62 8.24 9.63
Net Fixed Assets 15.95 13.76 11.88 10.26 8.87

Current Assets
Sundry Debtors 4.18 4.94 5.68 6.47 7.30
Stock in Hand 0.86 1.00 1.14 1.30 1.46
Cash and Bank 3.16 3.60 4.04 5.21 6.32

24.15 23.30 22.75 23.24 23.96

TOTAL :

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 41.82 49.42 56.84 64.71 73.03

Total (A) 41.82 49.42 56.84 64.71 73.03

B) COST OF SALES

Raw Material Consumed 15.39 17.78 20.30 22.95 25.74

Elecricity Expenses 1.45 1.61 1.77 1.93 2.10
Repair & Maintenance 4.18 4.94 5.68 6.47 7.30
Labour & Wages 7.18 7.90 8.77 9.73 10.71
Depreciation 2.55 2.19 1.88 1.62 1.39

Cost of Production 30.75 34.42 38.40 42.71 47.24

Add: Opening Stock /WIP - 0.60 0.70 0.81 0.92

Less: Closing Stock /WIP 0.60 0.70 0.81 0.92 1.04

Cost of Sales (B) 30.15 34.32 38.30 42.60 47.12

C) GROSS PROFIT (A-B) 11.66 15.10 18.54 22.11 25.91

27.89% 30.55% 32.62% 34.18% 35.48%
D) Bank Interest (Term Loan ) 1.81 1.48 1.07 0.66 0.25
ii) Interest On Working Capital 0.44 0.44 0.44 0.44 0.44
E) Salary to Staff 3.78 4.61 5.53 6.20 6.82
F) Selling & Adm Expenses Exp. 2.09 2.47 2.84 3.24 3.65

TOTAL (D+E) 8.12 9.00 9.88 10.53 11.16

H) NET PROFIT 3.55 6.10 8.66 11.58 14.75

8.5% 12.3% 15.2% 17.9% 20.2%
I) Taxation - 1.83 2.60 3.47 4.42

J) PROFIT (After Tax) 3.55 4.27 6.06 8.11 10.32

Raw Material Consumed Capacity Cost per kg Amount (Rs.)

Utilisation

I 45% 76 15.39
II 50% 79 17.78
III 55% 82 20.30
IV 60% 85 22.95
V 65% 88 25.74
COMPUTATION OF SALE
Particulars I II III IV V

Op Stock - 3,375.00 3,750.00 4,125.00 4,500.00

Production 2,02,500.00 2,25,000.00 2,47,500.00 2,70,000.00 2,92,500.00

2,02,500.00 2,28,375.00 2,51,250.00 2,74,125.00 2,97,000.00

Less : Closing Stock(5 Days) 3,375.00 3,750.00 4,125.00 4,500.00 4,875.00

Net Sale 1,99,125.00 2,24,625.00 2,47,125.00 2,69,625.00 2,92,125.00

Sale Price per container 21.00 22.00 23.00 24.00 25.00

Sale (in Lacs) 41.82 49.42 56.84 64.71 73.03

COMPUTATION OF MAKING OF CONTAINERS

Item to be Manufactured Containers

Manufacturing Capacity per day 150 kg

Manufacturing Capacity per annum 45,000 kg

1 Kg final output 10 Containers

No. of Working Day per annum 300

Total Production per Annum 4,50,000 Containers

Total Production per Annum 4,50,000 Containers

Year Capacity PLASTIC CONTAINER

Utilisation

I 45% 2,02,500.00
II 50% 2,25,000.00
III 55% 2,47,500.00
IV 60% 2,70,000.00
V 65% 2,92,500.00
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(5 Days requirement) 0.60 0.70 0.81 0.92 1.04
Raw Material
(5 Days requirement) 0.26 0.30 0.34 0.38 0.43

Closing Stock 0.86 1.00 1.14 1.30 1.46

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 0.86
Less:
Sundry Creditors 0.51
Paid Stock 0.35 0.03 0.31

Sundry Debtors 4.18 0.42 3.76

Working Capital Requirement 4.07

Margin 0.45

MPBF 4.07
Working Capital Demand 4.00
BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Supervisor 18,000.00 1 18,000.00
Plant Operator 15,000.00 1 15,000.00
Unskilled Worker 10,000.00 1 10,000.00
Helper 8,000.00 1 8,000.00
Security Guard 6,000.00 1 6,000.00

57,000.00
Add: 5% Fringe Benefit 2,850.00
Total Labour Cost Per Month 59,850.00
Total Labour Cost for the year ( In Rs. Lakhs) 5 7.18

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager 12,000.00 1 12,000.00
Accountant cum store keeper 10,000.00 1 10,000.00
Sales 8,000.00 1 8,000.00
Total Salary Per Month 30,000.00

Add: 5% Fringe Benefit 1,500.00

Total Salary for the month 31,500.00

Total Salary for the year ( In Rs. Lakhs) 3 3.78

COMPUTATION OF DEPRECIATION

Plant &
Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - -
Addition - 3.00 14.00 1.50 18.50
- 3.00 14.00 1.50 18.50
- - -
TOTAL 3.00 14.00 1.50 18.50
Less : Depreciation - 0.30 2.10 0.15 2.55
WDV at end of Ist year - 2.70 11.90 1.35 15.95
Additions During The Year - - - - -
- 2.70 11.90 1.35 15.95
Less : Depreciation - 0.27 1.79 0.14 2.19

WDV at end of IInd Year - 2.43 10.12 1.22 13.76

Additions During The Year - - - - -
- 2.43 10.12 1.22 13.76
Less : Depreciation - 0.24 1.52 0.12 1.88
WDV at end of IIIrd year - 2.19 8.60 1.09 11.88
Additions During The Year - - - - -
- 2.19 8.60 1.09 11.88
Less : Depreciation - 0.22 1.29 0.11 1.62
WDV at end of IV year - 1.97 7.31 0.98 10.26
Additions During The Year - - - - -
- 1.97 7.31 0.98 10.26
Less : Depreciation - 0.20 1.10 0.10 1.39
WDV at end of Vth year - 1.77 6.21 0.89 8.87
 REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter 16.65 - 16.65 0.46 - 16.65
Iind Quarter 16.65 - 16.65 0.46 - 16.65
IIIrd Quarter 16.65 - 16.65 0.46 0.93 15.73
Ivth Quarter 15.73 - 15.73 0.43 0.93 14.80
1.81 1.85
II Opening Balance
Ist Quarter 14.80 - 14.80 0.41 0.93 13.88
Iind Quarter 13.88 - 13.88 0.38 0.93 12.95
IIIrd Quarter 12.95 - 12.95 0.36 0.93 12.03
Ivth Quarter 12.03 12.03 0.33 0.93 11.10
1.48 3.70
III Opening Balance
Ist Quarter 11.10 - 11.10 0.31 0.93 10.18

Iind Quarter 10.18 - 10.18 0.28 0.93 9.25

IIIrd Quarter 9.25 - 9.25 0.25 0.93 8.32
Ivth Quarter 8.32 8.32 0.23 0.93 7.40
1.07 3.70
IV Opening Balance
Ist Quarter 7.40 - 7.40 0.20 0.93 6.47
Iind Quarter 6.47 - 6.47 0.18 0.93 5.55
IIIrd Quarter 5.55 - 5.55 0.15 0.93 4.62
Ivth Quarter 4.62 4.62 0.13 0.93 3.70
0.66 3.70
V Opening Balance
Ist Quarter 3.70 - 3.70 0.10 0.93 2.77
Iind Quarter 2.77 - 2.77 0.08 0.93 1.85
IIIrd Quarter 1.85 - 1.85 0.05 0.93 0.92

Ivth Quarter 0.92 0.92 0.03 0.93 - 0.00

0.25 3.70

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R

PARTICULARS I II III IV V

CASH ACCRUALS 6.10 6.46 7.94 9.72 11.72

Interest on Term Loan 1.81 1.48 1.07 0.66 0.25

Total 7.90 7.94 9.01 10.38 11.97

REPAYMENT
Repayment of Term Loan 1.85 3.70 3.70 3.70 3.70
Interest on Term Loan 1.81 1.48 1.07 0.66 0.25

Total 3.66 5.18 4.77 4.36 3.95

DEBT SERVICE COVERAGE RATIO 2.16 1.53 1.89 2.38 3.03

AVERAGE D.S.C.R. 2.15

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 20
Load Factor 0.7460
Electricity Charges per unit 7.50
Total Working Days 300
Electricity Charges 2,68,560.00

Add : Minimim Charges (@ 10%)

(B) DG set
No. of Working Days 300 days
No of Working Hours 0.3 Hour per day
Total no of Hour 90
Diesel Consumption per Hour 8
Total Consumption of Diesel 720
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel 0.47

Add : Lube Cost @15% 0.07

Total 0.54

Total cost of Power & Fuel at 100% 3.22

Year Capacity Amount

(in Lacs)

I 45% 1.45
II 50% 1.61
III 55% 1.77
IV 60% 1.93
V 65% 2.10
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
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reflect the views of the industry which are drawn from various research material
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considering specific requirement of the project, capacity and type of plant and
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intended for general guidance only and must not be considered a substitute for a
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