PROJECT PROFILE NAME OF THE PRODUCT : PET Bottle PODUCTION CAPACITY : Pet bottles (12, 00,

000 nos.) Bottle Cap (60, 00, 000 nos.) CAPITAL INVESTMENT : Rs. 25, 91, 300/- MONTH &
YEAR OF PREPARATION : JUNE - 2020 PREPARED BY : MSME DEVELOPMNT INSTITUTE GOVT.
OF INDIA, MINISTRY OF MSME, 111 & 112 B.T.ROAD KOLKATA - 700108 WEST BENGAL
2 1. INTRODUCTION OF THE PRODUCT: The global plastics industry is observing a continuous shift of
production bases to low-cost Asian countries. With increasing foreign investment and rise in the number
of new manufacturing establishments in the region, Asia has become the largest and the fastest growing
market for plastics in the world. In particular, China and India offer enormous growth opportunities due
to expanding production activities in the countries. Packaging sector is the largest application sector for
the plastic industry, representing almost 60.0% of the total plastics demand .plastic consumption for
packaging in India is expected to reach 12.0 million tons by 2025. The FMCG sector compiled with the
rise in capital investment pose as the key growth drivers for the packaging industry in the country. The
demand for packaging of these products has to lead the development of the plastic packaging industry
in the country. Among the vast family of plastics, Polyethylene Terephthalate, popularly known as PET, is
expected to grow the fastest. 2. MARKET & DEMAND ASPECTS: PET jar, PET bottles were the products
of the firm. Polyethylene terephthalate (sometimes written poly ethylene terephthalate), commonly
abbreviated PET, PETE, or the obsolete PETP, is the most common thermoplastic polymer resin of the
polyester family and is used in fibers for clothing, containers for liquids and foods, thermoforming for
manufacturing. The global PET bottle market reached a volume of more than 19 Million Tons in 2019,
registering a CAGR of more than 2.3% during 2011-2019. The market is further projected to reach a
volume of nearly 19 Million Tons by 2024, at a CAGR of nearly 2.1% during 2019-2024. Polyethylene
terephthalate (PET) refers to a thermoplastic polymer resin of the polyester family which is widely used
for manufacturing plastic bottles. In comparison with PP, HDPE and PVC bottles, PET bottles are more
durable, transparent, lightweight, non-reactive, cost-effective and thermally stable. Moreover, they are
environment-friendly and can be recycled repeatedly which further reduces their manufacturing cost.
Primarily used in the packaging of drinking water and beverages, PET bottles are also gaining
prominence as a packaging solution for salad dressings, household cleaners, medicines, dish detergents
and mouthwashes. The rising trend of westernization, inflating disposable incomes and altering food
patterns of consumers have 3 increased the demand for bottled beverages, particularly in developing
countries like India and China. PET bottles are bottles made-up of a plastic resin chemically known as
polyethylene terephthalate and abbreviated as PET. Due to some inherent properties of PET resin, these
bottles are transparent, light-weight, high in strength and impermeable to carbon dioxide. Their
manufacturing is based on a stretch blow-moulding process, which provides strength and high
resistance to bear internal pressure and enables them to be stacked like glass bottles. Primarily used in
the packaging of water and beverages, PET bottles are also gaining shares in other industries like- juices,
salad dressings, household cleaners, medicines, dish detergents, mouthwashes, etc. Being light in weight
and easy to handle, they are preferred in the packaging of carbonated soft drinks (CSD's) and are
continuously replacing glass bottles due to their tendency to break and the inconvenience created while
returning them after consumption. 3. BASIS AND PRESUMPTION: a) The scheme is based on single shift
of 8 hours per day and 300 working days per annum. b) The interest rate on the borrowed capital has
been taken as 12 % per annum. c) The cost in respect of Raw Materials, Packing Materials, Machinery &
Equipments has been taken at the time of preparation of project profile and may vary from place to
place and time to time. d) The rental Value of production shed is taken as per the prevailing rates and
may vary from place to place. e) The plant capacity utilization has been taken as 50 % for the first year,
which masy subsequently increase to 60% and 70% in the second and third year respectively. 4 4.
IMPLEMENTATION SCHEDULE: Preparation of The project implementation will take about nine months.
The break-up of activities with relative time for each activity is as follows: Sl. No. Activity Estimated
time periods (Months) 01. Scheme preparation & approval 0 – 1 02. Registration under MSME Act 2006
and sanction of loan 1 - 3 03. License from FDA 2 – 3 04. Placement of Orders for Machines 2 – 3 05.
Power Connection 1 - 2 06. Installation of Machines 3 - 4 07. Recruitment of Staff & Trial run 4 - 5 08.
Commercial Production 5 th onwards 5. POLUTION CONTROL NEEDS: There is no such harmful effluent
coming out of this factory. But dumping of wastage may create problem. Proper attention should be
given to dump the scrap. The unit should obtain No Objection Certificate from the State Pollution
Control Board. Workers must be provided hand gloves and masks during operation. . 6. TECHNICAL
ASPECTS: Polyethylene Terephthalate is a thermoplastic polymer that can be either opaque or
transparent, depending on the exact material composition. As with most plastics, PET is produced from
petroleum hydrocarbons, through a reaction between ethylene glycol and terephthalic acid. To produce
plastic bottles, the PET is first polymerized to create long molecular chains. Polymerization itself can be
a complicated process and accounts for many of the inconsistencies between one batch of
manufactured PET and another. Typically, two kinds of impurities are produced during polymerization:
diethylene glycol and acetaldehyde. Although diethylene glycol is generally not produced in high-enough
amounts to affect PET, acetaldehyde can not only be produced during polymerization but also during the
bottle manufacturing process. A large amount of acetaldehyde in PET used for bottle manufacturing can
give the beverage inside an odd taste. Once the plastic itself has been manufactured, the bottle
manufacturing process can begin. To ensure that the PET is appropriate for use, numerous tests are
done postmanufacturing to check that the bottles are impermeable by carbon dioxide (which is 5
important for bottles that carry soda). Other factors, such as transparency, gloss, shatter resistance,
thickness, and pressure resistance, are also carefully monitored. The first stage of a typical 2-step
Reheat and Blow Machine (RBM) bottle manufacturing process is injection moulding. Plastic pellets are
plasticized in the barrel of an injection moulding machine where the plastic is melted by heat and the
shearing action of a feed screw. The plastic is then injected into multiple-cavity moulds where it assumes
the shape of long, thin tubes. These tubes, called parisons, usually include the formed necks and threads
that will be used to cap the bottles that are yet to come. PET parisons, or pre-forms, are easily shipped
to bottling facilities as they are much more compact than fully formed bottles. During the re-heat
process, the parisons are loaded into a feeder and run through an unscrambler, which orients the
parisons for feeding into the blow moulding machine. The parisons are heated by passing by quartz
heaters and then enter the mould. Here, a thin steel rod, called a mandrel, slides into the neck of the
parison where it fills the parison with highly pressurized air, and stretch blow moulding begins: as a
result of the pressurized air, heat, and pressure, the parison is blown and stretched into the mould
axially and radially, where it assumes a bottle shape. This process produces what is called a bi-axially
oriented bottle which provides a CO2 barrier ideal for containing carbonated beverages. The mould
must be cooled relatively quickly, so that that the newly formed component is set properly. There are
several cooling methods, both direct and indirect, that can effectively cool the mould and the plastic.
Water can be coursed through pipes surrounding the mould, which indirectly cools the mould and
plastic. Direct methods include using pressurized air or carbon dioxide directly on the mould and plastic.
Once the bottle (or, in continuous manufacturing, bottles) has cooled and set, it is ready to be removed
from the mould. If a continuous moulding process has been used, the bottles will need to be separated
by trimming the plastic in between them. If a non-continuous process has been used, sometimes excess
plastic can seep through the mould during manufacturing and will require trimming. After removing the
bottle from the mould and removing excess plastic, the plastic bottles are ready for transportation or
filling. Other bottle manufacturing processes combine the formation of the parisons and the blow
moulding in a single continuous process. One such machine is a continuous extrusion machine wherein
an extruder is continuously producing a parison. In the extrusion blow moulding process, the parison
forms vertically and its wall thickness is varied by changing the size of the orifice through which the
parison extrudes. Mould halves close over the suspended parison and transfer it to the blow moulding
station where the bottle is formed as in the second step of the RBM process described above. Varying
the wall thickness solves the problem of non 6 uniformity of the hanging parison as the weight of the
formed portion would otherwise stretch the hot and still-forming section above it. Wall thickness is thus
increased as the parison forms to create a uniform thickness throughout the formation. Another
manufacturing process is the reciprocating blow moulding machine. These machines move the screw
linearly within the injector barrel to accumulate a shot. Then the screw pushes the shot over the
mandrel to create the parison after which it is formed in the usual manner. Raw Materials: PET is a
plastic resin derived from petroleum hydrocarbons. The producer creates long chains of plastic
molecules through a process called polymerization, and then mixes the material with several chemical
compounds. They cut the resin into small pellets and send it on to the bottle manufacturer. The bottle
plant mixes PET resin pellets with "regrind" -- recycled plastic that has been reduced to flakes. Plastic
loses some of its physical properties when repeatedly heated, so manufacturers must limit the amount
of regrind they use, typically capping this ingredient at 10% of the total mix. Unless producing clear
bottles, dyes are introduced to the mix as well. Building a Preform: An extruder melts the PET and
regrind mix at temperatures of about 500 degrees Fahrenheit. A screw inside the extruder compresses
the PET mix and injects the nearly molten material into molds. The mold produces a bottle preform,
which is sometimes called a parison. The preform looks like a thick-walled test tube, often including the
bottle’s characteristic screw top. The preform cools as it travels to a machine called a blow molder, and
may need to be brought back up to the manufacturer’s specified temperature for that operation. If
necessary, the bottle manufacturer raises the temperature of the preform in a small oven. Stretching
the Preform: The preforms enter a two-part mold that closes around it. The inside of this mold is shaped
exactly like the finished bottle. Inside, a long needle pushes up through the preform, which is suspended
with the screw end facing downward. The needle stretches the preform upward toward the top of the
mold -- which will be the bottom of the bottle -- and simultaneously blasts enough pressurized air into
the preform to force it against the sides of the mold. This stretch blow molding process must happen
quickly in order to maintain the bottle’s integrity and consistent shape. Some manufacturers weld a
separate bottom piece to the bottle during blow molding, while others produce a bottom from the
preform along with the rest of the bottle. 7 Cooling and Trimming: The bottle must be cooled almost
instantly or it will lose its shape when gravity causes it to creep downward in its malleable, heated state.
Some manufacturers cool the bottle by circulating cold water or liquid nitrogen through the mold,
others elect to fill it with a shot of air at room temperature. The mold typically yields a clean bottle, but
some flashing may occur at the bottle seams, where the two mold halves met. If so, operators trim away
the excess material and add it to the regrind. 7. FINANCIAL ASPECTS: Land: 10, Gunth . Own. Shed:
1500 sft.@Rs. 300/- per Sq. ft Rs. 4, 50, 000/- Boundary work and others expenses L.S. Rs. 1, 88,
000/- Rs. 6, 38, 000/- i) Machinery & Equipments: Sl.
No. Specification. No. Rate Value 1. Blow moulding machine to make Pet bottles from preform pet of
cap.250 ml to 2.5 lit. (2 KW) 1 8, 00, 000 8, 00, 000 2. Injection moulding machine to make diff. Plastic
Cap with 3 KW motor) 1 3, 00, 000 3, 00, 000 3. Scrap grinder (5 HP motor) 1 50, 000 50, 000 4. Office
furniture LS 58, 000 5. Installation charges @ 10% 1, 15, 000 Total 13, 23, 000 PRE-OPERATIVE
EXPDITURE: Project profile 1500 Travel and transport 10000 Stationery 5000
Telephone 2000 Sale Tax Registration (GST) 5000 Other misc. expr.
12000 Rs. 35, 500/- Fixed capital Investment = Rs. 6, 38,000/- + Rs. 13, 23, 000/- + Rs. 35, 500/-
= Rs. 19, 96, 500/- 8 WORKING CAPITAL ANALYSIS: i) Staff and labour payment (Per month): Sl. No.
Designation No. Salary Total Amount (In Rs.) 01. Manager Self 02. Supervisor 2 10000 20, 000 03.
Skilled Labour 4 8000 32, 000 04. Unskilled Labour 10 6000 60, 000 05. Mechanic 1 8000 8, 000
05. Clerk cum Accountant 1 8000 8, 000 06. Watchman cum Peon 1 6000 6, 000 Total 1, 34, 000
ii) Raw materials to prepare 500 lit. of alcoholic hand sanitizer: Sl. no Materials Qty. Rate Value in Rs. 1.
Preform pet bottle 1,00,000 @ 2.00/pc 2,00,000 2. HDPE 2500 kg @ 80/kg 2,00,000 3. Lubricants filler
etc L.S 25, 000 Total 4, 25, 000 ii) Utility: Sl. No. Description Rate Quantity Value (Rs.) 01. Power Rs. 6/
unit 1000 KWH 6, 000 02. Water L.S 2, 000 Total 8, 000 9 iii) Other Expenses (Per Month): Sl. No.
Description Quantity Value 01. Postage & Stationery L.S 10, 000 02. Telephone L.S 1, 500 03. Repair &
Maintenance L.S 1, 500 04. Insurance @ 2% of Machinery & Equipment Cost L.S 2, 500 05. Marketing
& Travelling Expenses L.S 200 06. Other Misc. Expenses L.S 12, 000 Total 27, 700 WORKING CAPITAL
(PER MONTH): = Rs. 1, 34, 000 + Rs. 4, 25, 000 + Rs. 8, 000 + Rs. 27, 700 = Rs. 5, 94, 700/- TOTAL
CAPITAL INVESTMENT: Fixed capital Rs. 19, 96, 500 Working capital (1 month) Rs. 5, 94, 700
Total = Rs. 25, 91, 200/- Means of finance: Promoter contribution @ 25% Rs. 6, 47, 800/- Bank finance
@ 75% Rs. 19, 43, 400/- FINANCIAL ANALYSIS (a) COST OF PRODUCTION (PER ANNUM): Sl. No.
Description Value (Rs.) 01. Raw Material & Packaging Material 51, 00, 000 02. Salary & Wages 16, 08,
000 03. Utilities 96, 200 04. Other Expenses 3, 32, 400 05. Depreciation on Machinery & Equipments
@ 10% p.a. 1, 20, 800 06. Interest on borrowed capital @ 12 % p.a. 2, 33, 208 Total 74, 90, 608 10
(b) TURNOVER (PER ANNUM): Item Quantity & Rate Value in Rs. Pet bottles 16,00,000 @ 3.00/ bottle
48, 00, 000 Caps 60 lakhs @ 0.60/pc. 36, 00, 000 84, 00, 000 (C) NET PROFIT PER YEAR: Net Profit =
Total turnover - Total cost of production = 84, 00, 000 - 74, 90, 608 = 9, 09, 392 (D) Profit Ration
on Sales : Profit ratio on Sale: = Profit x 100 = 10.82 % Turnover (e) Rate of Return
(ROR) on Total Capital Investment: Net Profit per annum ROR = ---------------------------- x 100 Total
Capital Investment 9, 09, 392 = ---------------------- x 100 25, 91, 200 = 35.09 % (f) Break Even Analysis:
(i) Fixed Cost Sr. No. Description Amount (Rs.) 01. Depreciation on Machinery & Equipments @ 10% p.a.
1, 20, 800 02. Interest on Total Capital Investment @ 12 % p.a. 2, 33, 208 03. 40 % of Salary & Wages
6, 43, 200 04. 40 % of Other Expenses 1, 32, 960 Total 11, 30, 168 11 (ii) Break Even Point (BEP):
Fixed cost x 100 = 55.41% B.E.P. = Fixed cost + Profit ADDRESSES OF MACHINERY AND
EQUIPMENT: Address of Raw material suppliers: 1. M/s. Sun Temple International ,C/o-
P.K.Badapanda ,Khan Nagar Nua sahi, Link Road Santosh Petrol Pump Lane ,Cuttack-
753012 ,9437356700 ,9861810015 ,Tel-0671-2367123 {Dealls in ( all type of
Acid ,Chemicals ,Solvent ,perfume,Essence ,Colour ) Specialise : Raw material & chemicals for MAKING:-
ATAR .AGARBATI,LIQUID BLUE (Ujala type) ,LIQUID ACID (Harpic type) ,HAND WASH , SANITIZER,
SOAP,DETERGENT ,ROOM FRESHNER ,PHYNYLE Cosmetic Chemical, CHALK/CANDLE MOULD .all type of
SPRAYERS Raw Material Suppliers: 1) M/s. Sony Purfumary Works, C/o. Sri P.K. Nayak, Near Santha
Nirankari Sathsangha Bhawan, Rajendra Nagar, Madhupatna, Cuttack. Tel-641442 2) M/s. Mother India
Chemicals, Near Durga Mandap, Khapuria. Tel-644491 3) M/s. R.K. Trading , Bakharabad, Cuttack-2, Tel-
622021 4) United Chemical Company, Agarpara, Kolkata-700058 5) Akshar Exim Company Pvt. Limited,
Dakhin Mart, Kaikhali, Kolkata 6) Naveen Enterprise, South DumDum. Kolkata Pet bottles/tin containers:
1. M/s.Sai chem Industries, Madhupatna, Cuttack-751010. 2. M/s.Chauhan Brothers, Jayshree Cinema
Backside, Badambadi, Cuttack. Tel. 318644. 3. Essence & Bottle Supply (India) Pvt.Ltd., P.O.Box : 372, 14,
Radha bazar Street, Calcutta700001. Tel.2254994. 4. KKR Industries, Bura Bazar Market, Kolkata 5.
Chirag Group of company, Dhakuria, Kolkata

1 EXECUTIVE SUMMARY

The PET Bottles Manufacturing unit is a project of Plastic Sector, in which, the

most convenience-size bottles are made from Polyethylene Terephthalate. PET

has become the material of choice for bottled beverages because it is lightweight

and shatter resistant, and PET has been extensively tested for safety. PET resin

has superior properties i.e. attractive, pure, safe, good barrier, no leakage, design

flexibility, recyclable, etc. Bottles made with PET are widely used for everything

from water and fruit juice to soft drinks etc.

Every day, lacs of consumers rely on the safety and ease of plastic bottles to help

to preserve the quality and freshness of what we drink and serve our families.

Plastic make possible an array of opportunities for transporting, storing and

increasingly popular choice for busy people everywhere.

2 INTRODUCTION

2.1Project Brief

PET bottles are a packaging medium, made up of Polyethylene Terephthalate

(PET) . These are widely used in food grade packaging and are the preferred

packaging medium in this segment, due to their several advantages over other

resins like PE, HDPE and PVE.

The objective of this pre-feasibility study is to provide information for setting up a

PET bottles manufacturing unit.

2.2 Project Rationale

PET bottles are used as packaging in a variety of products. The demand of PET

bottles is on a rise as most of the food manufactures from different businesses are

converting to PET bottles for the packaging of their products. The PET

bottles/containers are commonly used for the packaging of the following:

* Mineral Water

* Carbonated Beverages

* Edible Oil

* Household Food Containers

* Detergents

* Paints

* Lubricating Oils

* Feeding Bottles for Babies

As PET bottles provide better packaging, and have a lower cost than the bottles

made from glass and other materials, different businesses in beverage, food and
non-food industry are shifting towards PET bottles.

The PET resin has superior properties, which are as follows:

♦ Attractive: Products look good, pure and healthy because of attractiveness of

PET bottles.

♦ Pure: Products taste good as PET complies with international food contact

regulations.

♦ Safe: PET bottles are tough and virtually unbreakable. If they do fail, they split,

not shatter. Their high impact and tensile strength makes them ideal for

carbonated products.

♦ Good barrier: The low permeability of PET to oxygen, carbon dioxide and

water means that it protects and maintains the integrity of products giving a

good shelf life. PET also has good chemical resistance.

♦ Lightweight: One tenth the weight of an equivalent glass pack, PET bottles

reduce shipping costs, and because the material in the wall is thinner, shelf

utilization is improved by 25% on volume compared to glass. High strength, low

weight PET bottles can be stacked as high as glass.

♦ No leakage: Absolute closure integrity is possible because of the injection

molded neck finish. The absence of a weld line in the base means that PET

bottles have no leakage.

♦ Design flexibility: PET bottles are suitable for containers of all shapes, sizes,

neck finish designs and colors.

♦ Recyclable: Used PET bottles can be washed, granulated into flakes and

reshaped as PET bottles or employed as material for strapping, carpeting, fiber

filling, etc. Specially designed thick-wall bottles can be washed, refilled and

reused. PET is made from the same three elements (carbon, oxygen, and
hydrogen) as paper, and contains no toxic substances. When burned, it

produces carbon dioxide gas and water, leaving no toxic residues. Being

recyclable is the most important factor of success of business of PET bottles.

Cost Estimation

Plant Capacity 30000 Nos./Day

Land & Building (Area 4000 sq.mt.) Rs. 5.35 Cr.

Plant & Machinery Rs. 1.80 Cr.

W.C. for 3 Months Rs. 3.81 Cr.

Total Capital Investment Rs. 11.21 Cr.

Rate of Return 22%

Break Even Point 54%

Product Description

Pet Bottles In 500ml, 1 Ltr, 2 Ltrs, 5 Ltrs, Used For Packaged Drinking Water, Edible Oils, Alcoholic
Beverages (Country Liquor & Imfl) Etc
Technical Aspects:

Manufacturing Process :

Polyethylene terephthalate (PET), bottles manufacturing process involves two basic stages of

Pre-form manufacturing and Bottle Stretch Blow Molding.

1. Pre-form manufacturing process consists of following steps:

a. Resin drying and dehumidification

b. Melting of resin and injection into mold

c. Injection blow molding

d. Primary cooling

e. Secondary cooling

f. Ejection and storage

2. Bottle Stretch Blow Molding, process involves:

a. Pre-form feeding

b. Pre-form heating

c. Transfer of heated pre-forms to blow wheel

d. Bottle stretch blow molding

e. Bottle ejection

Step 1: PET is first heated up and placed in a tube shaped mold called a parison, which is cut

into the correct length after it’s cooled

Step 2: The parison gets heated up and placed into a bottle shaped mold, with a screw top

included. A mandrel (Steel rod) is inserted into the parison to allow highly pressurized air

to enter and stretch the plastic. The molecules then polarize, due to the combination of

stretching and high temperature, and produce a bottle

Step: 3 The bottle is cooled quickly to avoid creep and the removed.
Intro

Since the aerated water (cold drink) and mineral water Industries have increased many fold. The
demand for the plastic

bottles have increased considerably. A simple blow mould machine which can be easily aerated, covered
generate

sufficient profit. Not only cold drink mineral water, but oil fruit syrups and variety of industries are using
Bottles as packing

material. The demand for the bottled are increasing day by day
TECHNICAL SPECIFICATION: Machine Specification Machine Category Fully Automatic Machine Model
DM-BKFAE3 No of Cavities 3 Cavity Production Capacity (Bottles/Hour) (Depending on Moulds and pre-
form Quality) 3900BPH for 300ml 3750BPH for 500ml 3600BPH for 1000ml Blowing Capacity 100ml –
1000ml Bottle Outlet Through Belt Conveyor Size of the Mould (Width x Length) 120mm x 310mm
Container Specification Types of Bottles Blowing Water, Juice & Soft Drinks Types of Preform Alaska &
PCO Max. Neck Diameter 28mm Max. Diameter of Bottle 82mm Max. Height of the Bottle 270mm
Electrical System Pre-heating System Near Infrared No of Heaters 12 Nos Heater Capacity 2000 Watts
Machine Connected Power 9KW, 3 Phase Machine with accessories Connected Power 38KW, 3 Phase
Total Power Consumption (Include accessories) 26KWH (Units) Air System Blowing Pressure 20Bar
Working Pressure 6Bar Air Consumption 70CFM Required Accessories Compressor Capacity (High
Pressure) 30HP/25Bar/84CFM (Duplex) Air Dryer Capacity 100CFM/30Bar CWater Chiller Capacity
3.5Ton@10 Cooling Tower 30TR