CO-EXTRUDED MULTILAYER FILM

Introduction:

         Plastic, today, is being increasingly utilized in almost every industry and activity. Its use has become indispensable due mainly to certain inherent properties like light weight, corrosion of chemical resistance etc. Plastic in many areas is not only a strong substitute but superior as well. To cite an example packaging industry now depends on plastic for packaging of milk, edible oils, snacks etc. and co-extruded films are predominantly used in this direction. Presently milk and ghee pouches in India consume a major portion of such films produced, which is an indication of high popularity grained by this plastic material.
         In Kerala too, use of milk pouches as a packaging material has already become popular among the large milk societies operating in the State. The convenience in handling and lightweight associated to replace the conventional glass bottles. Milk pouches are generally in 2 layers (LDPE 35 microns/ LDPE 35 microns) and are increasingly being used in the State.

Location of the unit:

         Location of the unit must be based on availability of infrastructural facilities such as electricity, water, transport & communication, bank etc. are also available. 900 ft² additional shed making a total plinth area of 1800 ft². to accommodate the project.

Plant & Equipment:

         Principal items of plant and equipment needed for the manufacture of co-extruded blown film is as follows: -

i) Co-extrusion film plant
ii) Corona surface treating equipment
iii) Rotogravure printing machine
iv) Co-extrusion film plant

         Co-extrusion means, combining more than one material by means of plasticizing extrusion into a unit structure in such a way that the materials will constitute distinct layers. As the co-extrusion technique is relatively a new one, special care is to be taken in the selection and procurement of the plant.

         The plant essentially consists of two single screw extruders, a control panel with separate thyrister control panel for each drive motors and a heating panel for all zone heaters, film die assembly, air cooling ring and blowers, an oscillating platform which can oscillate through 300 each way, take off tower unit, trimming attachment, a two station surface winder having a roller width of 800 mm. The machine and equipment are suitable for operation on 400/440volts, 3 phases with neutral 50 cycles AC supply. All electrical heaters are single phase but the load is distributed for 3-phase supply through control cabinet. Total power load required is 85 KW.

Corona Surface treating equipment:

         Plastics in general and polyolefin’s in particular have got a tendency to reject printing inks from their un-polarized surfaces. Hence it is necessary to polarize the surface of the film by this pre-treatment so that during printing the necessary level of adhesion is achieved.
         This equipment consists of a solid-state theater, HT transformer, and special oil for above transformer, enclosed type roller assembly, an extra pair special dielectric sleeve, one extra zone extraction unit etc/

Rotogravure printing machine:

         The printing machine is specially designed in such a way that all the printing units are identical with the possibility that additional color can be attached. The machine is equipped with DC motor coupled to a thyrister converter to operate on AC mains.

Raw materials:

         Plastic raw materials such as LDPE, LLDPE, HDPE, PP, and Nylon etc. can be used for the manufacture of co-extruded film depending upon the end use of the product. Since milk pouches are generally a two-layer film (LDPE/LDPE) and the project envisages production of plastic film for milk pouches, the requirement is only LDPE. The other important raw materials required are butanol, solvent IPA and gravure printing ink.

Marketability and Scope:

         Co-extruded films find extensive use in the manufacture of pouches for packaging of various edible consumer items like milk, ghee, oils, snacks etc. It is estimated that in India about 80% of co-extruded films are being consumed for milk pouches and ghee pouches. The market for blown films is expanding and it is envisaged that more and more items would be brought under this material for packaging purposes.

Basis and Presumptions:

        The efficiency of the unit is calculated at 80% of the total production capacity.
        The unit will work 25 days in a month of 3 shifts and 300 days in a year.
        The time period for achieving the full envisaged capacity utilization is one year.
        The labor wages are as per the prevailing rates in the market.
        The rate of interest for fixed and working capital is taken @ 14%.
        The margin money requirement for this project is 25%.
        The pay back period of this project is 5 years.
        The land area is 500m and the constructed area is 250 m.

Implementation Schedule:

Preparation of project report
2 months
Selection of site
1 months
Registration as SSI
1 weeks
Acquiring loan
3 months
Machinery procurement, erection and commissioning
2 months
Recruitment of labors etc.
1 months
Trial runs
1 months

Process of Manufacture:

        Raw materials are fed into the hopper, which gets heated in the barrel with the help of the heater
        The melt in the extruders is conveyed forwarded by the screw rotation
        The 2 extruders individually feed the 2 channels within the die
         All the flow channels coverage into a single flow channel, just a little distance before the material is blown out from the annular die orifice
        The rotating die ensures even distribution of the melt flow while coming out of the die orifice
        The rotating die ensures even distribution of the melt flow while coming out of the die orifice
        The bubble is cooled by means of air circulation arrangements
        The pre-determined size of the blown film is obtained by inserting compressed air through the die.
        Iris rings, flattering boards, counter rotating nip rolls draw the film upwards and flatten it into a two layer lay flat film, which is wound on the winder.
        The film is also treated with corona discharge equipment and then printed in rotogravure printing machine in desired colors.

Quality Control and Standards

         IS 10141: 1982/1997 or as per customers specification

Production Capacity (per annum)

        a)         Quantity      630 MT
        b)         Value         441.00 lakhs

Motive Power

         The total connected load of the unit is 150 KWH. Assume 60% utilization of the connected load.

Pollution control:

         This unit has not been identified on the pollution making industry. However, proper ventilation of the working shed may be assured.

Energy Conservation

         Production by proper planning may save the energy.

Financial Aspects

A. Fixed Capital
         i) Land and Building

 
Area
Rate Rs. / m
Value (Rs.)
Land
500
 
 
Working Shed
250
 
 
Offices and Stores
100
Rented
15,000

         ii) Machinery and Equipments

Sl.No.
Description
Qty. (Nos.)
Values (Rs.)
1
Co-extrusion Blown film plant
1
28,00,000
2
Corona surface treatment plant
1
2,50,000
3
Rotogravure machine
1
6,00,000
4
Slitter-cum- re-grinder machine
1
1,50,000
5
Testing equipment
LS
50,000
6
Electrification and Installation charges @ 10% of cost
 
3,85,000
7
Total cost of machinery and equipment
 
42,35,000
8
Cost of office equipment, working table etc.
 
50,000

         iii) Pre-operative Expenses: 20,000
                 Fixed Capital = 43, 20,000/-

B. Working Capital (per month)

i) Personnel

Designation
Nos.
Salary (Rs.)
Total (Rs.)
Manager
1
12,000
12,000
Machine Operator
2
6,000
12,000
Skilled Workers
3
3,000
9,000
Clerck-cum-Accountant
1
5,000
5,000
Unskilled Workers
3
1,500
4,500
Peon
1
1,500
1,500
Total
 
 
44,000
Perquisites @ 15% of salaries
 
 
6,600
Total
50,600
Or
 
Say
50,000

ii) Raw materials including Packaging requirement (PM)

Particulars
Qty.
Rate / Kg.
Values (Rs.)
LDPE
52,500
50
26,25,000
Printing Ink
 
 
50,000
Packaging Material
 
 
5,000
Total
26,28,000

iii) Utilities (per month)

        Power 96 KW x 500 hrs. x Rs.4 x 0.6 utilization---------- 1,15,200
        Water -----------------------------------------------------2,000
        Total ----------------------------------------------------------------1,17,000

iv) Other Expenses (per month)

Other contingent expenses (per month)
Rs.
Rent
15,000
Postage and Stationery
10,000
Telephone
2,000
Consumable Store
1,000
Repair and Maintenance
1,000
Transportation Charge
10,000
Advertisement and Publicity
1,000
Insurance
4,000
 
35,000

v) Total Recurring Expenditure

Staff & Labor  
Rae Material  
Utilities  
Other expenses  
Total  
For 3 Months  

C. Total Capital Investment

        1. Fixed Capital -----------------43, 20,000
        2. Working Capital --------------86,46,000
        Total ----------------------------1,29,66,000

Machinery Utilization

        Co-extrusion process will be the bottleneck operation for this project. The production capacity is 105 kegs. /hr.

i) Cost of Production (per year)

Cost of Production (per year)
Rs.
Total recurring cost
3,45,84,000
Depreciation on machineries @ 10%
4,23,500
Depreciation on office equipment @ 20%
10,000
Interest on total capital investment @ 14%
18,15,240
Total
3,68,32,740
or
Say
3,68,33,000

ii) Turnover (per year)

Item
Qty.(MT)
Rate / Kg.
Value (Rs.)
Co-extruded film
617
70,000
4,31,90,000
Scrap
13
20,000
2,60,000
 
 
 
4,34,50,000

iii) Net Profit (per year)

        Turn over – cost of production = 4,34,50,000 – 3,68,33,000
        = 66,17,000

iv) Net Profit Ratio

        Net Profit per year x 100 / Turnover

        = 66, 17,000 x 100 / 4,34,50,000

        = 15.23 %

v) Rate of Return

        Net profit per year x 100 / Total Investment

        = 66, 17,000 x 100 / 1,29,66,000

        = 51.03 %

VI) Breakeven Point (% of Total Production Envisaged)

1
Fixed Cost
Rs.
a)
Depreciation on machinery and equipment
4,23,500
b)
Depreciation on Office Equipment
10,000
c)
Rent
1,80,000
d)
Interest on Capital Investment
18,15,240
e)
Insurance
48,000
f)
40% of Salary and Wages
2,40,000
g)
40% of other expenses
1,68,000
Total
28,84,740
or
Say
28,85,000

B.E.P. = Fixed Cost x 100 / Fixed Cost + Profit

        = 28,85,000 x 100 / 28,85,000 + 66,17,000

        = 28,85,000 x 100 / 95,01,740

        = 30.36 %

NAMES AND ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

Kollite Industries
        Manufacturers and exporters of PP film plants, blown film machines, plastics extrusion plants, thermoplastic extrusion         equipments, polypropylene film machines, slit film plants, HDPE pipe plants, RPVC pipe plants and other extrusion         plants and machines.
        Address: 334, Sudershan Park, Behind E.S.I Qtrs Ring Road, New Delhi -110 015, India
        Phone: +(91)-(11)-25461846/25413264

Frans Engineering Corporation
        Manufacturers and exporters of variety of packaging machinery such as lamination machines. Also export printing         machines, flexo graphic print press, rotogravure printing press, slitting machines, coil rewinder/ doctoring machines, hot         stamping foils etc.
        Address: Plot No. C-1/B-6, 1st Phase, GIDC, Vapi - 396 195, India
        Phone: +(91)-(260)-430947/431453 Fax: +(91)-(260)-423959

P.S.K. Brothers
        Manufacturers and exporters of printing machines, rotogravure printing machines, flexographic printing machines,         lamination machine, coating machines, slitting machines and rewinding machines.
        Address: A 33- Phase-I, Naraina Industrial Area, IInd Floor, New Delhi - 110 028, India
        Phone: +(91)-(11)-55108943/55380539 Fax: +(91)-(11)-25795554

Zaman Enterprise, Dhaka
        Suppliers of woven sacks bag making machine, pp, hdpe, ldpe film blow machine, cutting and bag making machine,         lamination machine, rotogravure printing machine, slitting machine, spice making hole plant, biscuit plant  etc.
        Address: 482, North Shahjahanpur, Dhaka - 1217, Bangladesh
        Phone: +(880)-(2)-9344990

Printpac Machineries
        Suppliers of rotogravure printing machines, slitting machine, lamination  machinery, doctoring machine, offset printing         machinery, other printing & paper converting machines.
        Address: F.C.A-120, Yadav Colony, Near Keshav Nursing Home, Mohna Road, Faridabad - 121 001, India
        Phone: +(91)-(129)-2311477/9810404427 Fax: +(91)-(129)-2300022

Converting Services And Supplies
        Mnaufacturer and exporter of rotogravure printing machine, magnetic ink  mixing rollers, air operated ink pumps,         slitting machines, coating machine etc.
        Address: 25-B, Pocket - 6, Mayur Vihar, Phase III, New Delhi - 110 096, India
        Phone: +(91)-(11)-22623163/22623120 Fax: +(91)-(11)-2527579

NAMES AND ADDRESSES OF RAW MATERIAL SUPPLIERS

Shubham Trade Link
        Sellers of all types of plastic raw material including PET, HDPE, LDPE, PP, PET bottle grinding scrap, PET lumps and         PET chips.
        Address: Room No. 4, 1st Floor, Alpana Rashmi Co-op Housing Society, Nahur  Road, Near Mehul Theatre,         Mulund (West), Mumbai - 400 080, India
        Phone: +(91)-(22)-25642517

Resin Distributors Private Limited
        Exporters of raw materials like hdpe, lldpe and polypropylene.
        Address: 707, Embassy Center, Nariman Point, Mumbai - 400 021, India
        Phone: +(91)-(22)-31053413 Fax: +(91)-(22)-30346203

Newline Plast
        Exporters of all types of plastic raw materials like pp, hdpe, ldpe, lldpe, engineering items, ps and hips.
        Address: 19, Jaykar Smruti, Aarey Road, Goregaon ( West), Mumbai - 400062, India
        Phone: +(91)-(22)-28768211