HDPE/PP Woven Sacks Project Feasibility Report

PRODUCT AND ITS USES HDPE/PP packing materials have become popular on account of their inertness to chemical, moisture and resistance to fungus and rotting.  They are light in weight and withstand stringent conditions than conventional bags.  Compared to jute the prices are stable and competitive.

MARKET POTENTIAL The major users of HDPE/PP woven sacks are fertilizer, sugar, cattle feed, cement.  Starches, pesticides, detergents and many other industrial bulk items are also being packed in woven sacks.  HDPE strips also used for deck chairs, etc.  PP strips used for marine rope manufacturing. With the introduction of circular looms, cost of production has come down drastically and making these sack more preferable now.  Demand is ever growing with more and more factories preferring woven sacks for packaging.  90% of the production is consumed in the domestic industry while a little is being imported to border countries.

MANUFACTURING PROCESS First the tape is produced through the tape extrusion machine.  This tape is fed to knitting machine to form cloth on circular weaving machine.  Cloth thus formed is cut to required dimensions and stitched to size.  Printing is also done as per requirement if planned. IS standards to be maintained meeting customer requirements.

PROJECT ESTIMATION Unit runs on single shift 25days per month; Wastage of raw materials estimated to be around 2%; Number of bags per kg depending on the density used; uninterrupted power availability is assumed. 450 MT production capacity estimated to be economically viable for a small scale industry.

LAND & BUILDING 1500 sq.m with built up area 500sq.m for plant & equipment.

MACHINERY & EQUIPMENT: Tape extruder; Chease winders with shutters – 8nos.; Circular weaving machine; heavy duty sewing machine-6 ; multi-color printing machine; weighing machines; lab equipment

RAW-MATERIALS 40T HDPE/PP granules; printing accessories; packing accessories.

UTILITIES Office furniture; 11kva transformer; Electricity & water

MISCELLANEOUS EXPENSES Office expenses; insurance, etc.

CAPITAL INVESTMENT Estimated capital investment: approximately INR 3,31,95,000/-

COST OF PRODUCTION Estimated Cost of production Per anum INR 3,48,40,000/-

TURNOVER Estimated sales income of 350T : INR4,16,16,000/-

PROFIT Profit per anum INR 67,76,000/- & Net Profit Ratio 16.28%

RATE OF RETURNS :   20.4 %

BREAK EVEN POINT :   B.E.P  51.83%

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