MAKING EXPANDED PET PRE-FOAMS FOR PACKAGING
Introduction
This business idea is for manufacturing and marketing
of Expanded Pet pre-foams. Expanded Low density polythene (LDP) foam nets are
attractive packaging used as protective shield for fruits, glasses,
bottles, etc. The business idea is premised on production of 2002 rolls per
month which translates into 24,024 rolls per year. The revenue potential is
estimated at US$ 600 per month translating into US$72,072 per year with a sales
margin of 10%. Total investment requirement is US$75,810 for the first year of
project operation.
Market Analysis
Low Density Polythene Expanded Foam nets are preferred over conventional packaging materials due to their merits. Besides fruits and glass bottles containing food products, beverages, alcoholic drinks and medicine, LDP foam sets may be used to pack other products such as general electronic instruments,
Production Process
LDP along with additives like blowing agent, talcum powder, etc. are mixed in the blender. This mixture is fed into the hopper of the extruder where the molten substance is mixed with Freon gas to provide smooth & glassy surface and strength. The extruded LDPE passes through a multi hole double rotation and expands. LDPE foam nets are pulled out by drawing machine and trimmed by pneumatic device. The nets are dropped into stainless steel container smoothly and continuously, from where they are removed, packed and sent to the market.
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit |
Amount |
|
Mixer |
No |
1 |
4,000 |
3,250 |
|
Extruder Screw diameter |
No |
1 |
3,000 |
3,000 |
|
Multi hole double rotating die |
No |
1 |
2,500 |
2,000 |
|
Drawing and cutting unit |
No |
1 |
3,000 |
2,500 |
|
Freon gas supply System |
No |
1 |
2,000 |
2,000 |
|
Blender |
No |
1 |
500 |
250 |
|
Total |
13,000 |
Production
and Operating Costs
1. Production costs assumed 312 days per year with a daily capacity of 77 rolls
of Expanded Pet Pre-foams
2. Depreciation (fixed asset write off) assumes _4_ years life of assets
written off at _25% per year for all assets.
3. Direct Costs include materials, supplies and other costs that directly go
into production of the product.
4. A production month is assumed to have 26 days.
Direct Materials, Supplies and Costs in
US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Low
Density |
rolls |
0.75 |
50 |
37.5 |
975 |
11,700 |
|
Resin |
liter |
2 |
20 |
40 |
1,040 |
12,480 |
|
Freon gas |
liter |
2 |
10 |
20 |
520 |
6,240 |
|
Talcum |
KG |
2 |
10 |
20 |
520 |
6,240 |
|
Sub-total |
90 |
117.5 |
3,055 |
36,660 |
||
|
General Costs(Overheads) |
||||||
|
Rent |
250 |
3,000 |
||||
|
Labour |
1,000 |
12,000 |
||||
|
Utilities |
150 |
1,800 |
||||
|
Preliminary costs |
100 |
100 |
||||
|
Transport Costs |
250 |
3,000 |
||||
|
Miscellaneous costs |
250 |
3,000 |
||||
|
Depreciation (Asset write off) Exp |
271 |
3,250 |
||||
|
Sub-total |
2,271 |
26,150 |
||||
|
Total Operating Costs |
5,326 |
62,810 |
Project Product Costs and Price Structure in US$
|
Item |
Qty/ |
Qty/Yr |
Unit |
Prod |
Unit |
T/rev |
|
Expanded |
77 |
24,024 |
2.6 |
62,810 |
3.0 |
72,072 |
Profitability Analysis in US$
|
Item |
Per day |
Per Month |
Per Yr |
|
Revenue |
231 |
6,006 |
72,072 |
|
Less:
Production and |
201 |
5,326 |
62,810 |
|
Profit |
30 |
680 |
9,262 |