THERMO-FORMED DISPOSABLE TRAYS
Introduction
A simple process of converting thermoplastic sheets into finished articles is called thermo-forming. This is one of the oldest techniques employed, in which the process of heating sheets, between glass transition temperatures is by softening the point of the material in order to carve the material into the desired shape by using pressure/ vacuum. The process of thermo-forming is restricted to relatively simple shapes having limited depth of draw. With this technique, it is possible to produce articles of less than 1mm of section thickness. Total investment would costs US$100,275 producing 3,600,000 units annually collecting estimated revenue of US$ 100.
Production Process, Capacity and Technology
High impact polystyrene is fixed on to the frame with the material heated to soften in the mould. The mould is closed and vacuum/air pressure is applied to get the desired shape on the die. After cooling, the molded items are removed, separated and packed in corrugated boxes. The plant has a minimum capacity of 3,600,000 trays per annum.
Market Analysis
Thermoformed disposables have wide applications as containers for curd, gravy foods & ice cream etc. Disposable trays are used in packing food and for use in cushioning of other things etc. These are not only attractive, but also lightweight, cargo friendly and with low permeability. The growing food industry has tremendous potential for thermo-formed disposable trays. However, there are no key players yet in this sector in Uganda.
Capital Investment Requirement in US$
|
Item |
Units |
Qty |
Price |
Total cost |
|
Thermo-forming machine |
No |
1 |
2,500 |
2,500 |
|
Air compressor |
No |
1 |
500 |
500 |
|
Vacuum &water Pumps |
No |
1 |
600 |
600 |
|
Set of moulds |
No |
10 |
700 |
7,000 |
|
Scrap grinder and chilling machine |
No |
1 |
650 |
650 |
|
Buffing machine |
No |
1 |
750 |
750 |
|
Moulding machine |
No |
1 |
1,000 |
1,000 |
|
Total cost of tools & Equipment |
13,000 |
Production and Operation costs in US$
Direct Materials, Supplies and costs
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Polystyrene |
kgs |
21 |
6.41 |
134.6 |
3500 |
42,000 |
|
PVC |
kgs |
22 |
1.60 |
35.3 |
917 |
11,000 |
|
Polypropylene |
kgs |
8.9 |
3.21 |
28.5 |
742 |
8,900 |
|
Packaging |
pckts |
0.5 |
80.13 |
40.1 |
1042 |
12,500 |
|
Poly-carbonate |
kgs |
18.5 |
0.80 |
14.8 |
385 |
4,625 |
|
Sub-total |
253 |
6,585.42 |
79,025 |
|||
|
General Costs (Overheads) |
||||||
|
Labour |
350 |
4,200 |
||||
|
Selling & distribution |
200 |
2,400 |
||||
|
Utilities (Water, power) |
200 |
2,400 |
||||
|
Administration |
250 |
3,000 |
||||
|
Rent |
400 |
4,800 |
||||
|
Miscellaneous expenses |
100 |
1,200 |
||||
|
Depreciation |
271 |
3,250 |
||||
|
Sub-total |
1,771 |
21,250 |
||||
|
Total Operating Costs |
8,356.22 |
100,275 |
1. Production costs assumed are for 312 days per year with a daily capacity of 11,538.5
2. Depreciation (fixed assets write off) assumes 4 year life of assets written off at 25% per year for all assets
3. Currency used is US Dollar.
Project product costs and Price Structure in US$
|
Item |
Qty/day |
Qty/yr |
Unit |
Prod |
Unit |
Total |
|
Trays |
11,538.5 |
3,600,012 |
0.03 |
100,275 |
0.04 |
144,00 |
Profitability Analysis in US$
|
Item |
Per day |
Per |
Per |
|
Revenue |
462 |
12,000 |
144,000 |
|
Less: Production and operating costs |
321 |
8,356 |
100,275 |
|
Profit |
140 |
3,644 |
43,725 |