PACKAGING

Project Report
on
Mfg. Unit of Blow Moulded Containers

Bluejay Packaging
12-13-1086/1, Plot No.78, Kimty Colony, Shiridi Sai Nagar, Tarnaka, Sec’bad - 500 017.
Tel.: 27016135/40269625, , e’mail:oriolepackaging@gmail.com
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Cooling Towers
Chilling Plant

Main MachinerY

Scrap Grinder
Air Compressor
Moulds
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Contents
Summary
Introduction
Basis & Presumptions
Process of Manufacture
Blow Moulding Process
Location of Unit
Unit Name
Financial Analysis
Financial Aspects
Break Even Analysis
Repayment Schedule
Machinery Suppliers
Machine Details
Blow Moulding Machine
Scrap Grinder
High Speed Mixer
Quality Checking Tests
Moulds
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Summary

1. Name of the unit Bluejay Packaging

HDPE Blow Moulded Containers
2. Type of Project (High-density polyethylene)

3. Constitution Proprietor ship Firm

4. Production Capacity 170 TPA (Tonnes per Annum)

5. Location of the unit Cherlapally Phase III

6. Total Project Rs. 27,00,000.00

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INTRODUCTION
Packing Industry is one such industry where lot of SMES are concentrated. In India the consumer

pracking is undergoing adramatic change in recent past. In many Industries the plastic

containers are replacing conventional metal containers and glass containers because of their

comparatively better properties and ease of handling and transportation. Small size plastic

containers are used for packing of drugs, pharmaceuticals, insecticides, food items etc. The

plastic blow moulded containers are made from HDPE ( High-density polyethylene), LDPE (Low-

density polyethylene ), PP (Polypropylene) etc. Blow moulded plastic containers are finding great

demand in modern era. In replacing the traditional Metal / Non Metal and Glass containers

throughout the world. With latest trends in Blow Moulding technology and advanced machinery

and National and International standards moulds and dies, many types of packaging containers

are manufactured with accurate tolerance and fine quality. To suit the requirement of each and

every product manufacturing. These products includes Pet bottles, Dropper bottles, Upper

Handle bottles, Open top drums, wide mouth drums, Narrow mouth drums, Barrels, Jerry Cans &

Carboys, Square Jars, Round Jars, Rib Jars, Thin walled food packaging containers etc. They are of

different types and designs that are manufactured to cater the need of packaging. With high

quality raw materials procurement, blow moulded articles and containers are manufactured

with superior quality associated with convenient shapes and sizes, Strong and Sturdy

construction, Compact designs, Compatibility, Safe to use etc. AS there is very good demand for

plastic containers of various sizes and shapes and quality to meet the requirment of one and all.

Though there are lot of products can be manufactured by blow moulding technology. Are hope

ful of aiihably we would like to maintain the following in order to fulfill the needs of our clients

and consumers and I hope I can capture good market. Share with in a shortening.
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v Strong and Sturdy: The products are made out of special grade High Density

Polyethylene (HDPE) with excellent strength to withstand all transit hazards in any

conditions.

v Standard Designs: It includes wide range of latest & standard designs in packaging

products to provide and meet the requirement of each client or end user with latest

innovative designs and products with ease in handling to provide with complete bulk

packing solutions.

v Compatibility: The material used in production i.e. High Density Polyethylene (HDPE) is of

food grade (certified ) and compatible with food chemicals, petroleum products,

hazardous chemicals, Resins etc.

v Safety: The products goes through with multiple tests to pass all of them and use certified

virgin raw material only to give out complete packing solution.

v Packaging Standards: The products are also confirms national and international

packaging standards and are listed with IIP (Indian Institute of Packaging) to provide UN

Certification and other testing requirements.

v Price : Believing in right & fair price policy, in which we are ready to share information to

make the customer or end user comfortable about on their purchasing decisions.
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Promoters

The promoter Mr. G. Suresh Babu as an SSI unit. Is the main promoter of Spectrum

Designers. Who is having enough of experience since 2001 closely associated with Dr. Reddy’s

Laboratories in designing. Printing & Packaging of different consumers packs of

Pharmaceuticals manufactured by Dr. Reddy’s Laboratories Hyderabad, as inside ancillary

having successfully assuming the unit, along with other clients.

As backword integration and on also encouraged by lot existing clients who is taking our

services in designing the packing material other literature and advertising and publishing

material right from ides developing and designing stage. Encouraged by the enquires and the

confidence and the assurance offered by the exciting clients and known customers related and

associatis it is thought to promote their unit in the name of ORIOLE PACKAGING as a different

manufacturing unit.
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TECHNOLOGY

BIS SPECIFICATIONS
SCOPE

a) Formulation of Indian Standards on rigid, semi-rigid and flexible plastic containers, closures and their
methods of test.

b) To co-ordinate with the work of ISO/TC 122 (Plastic Packaging only) so far as it concerns its own scope
of work.

c) To co-ordinate with the work of ISO/TC 61 ‘ Plastics ‘ so far as it concerns its own scope of work.

SCOPE

Sl.No. IS No. Title

1. IS 7408 (Part 1/ Sec 0): 2000 Blow moulded polyolefin containers Part 1 Up to 5 litres capacity
(Second revision)

2. IS 7408 (Part 2/ Sec 0): 2000 Blow moulded polyolefin containers Part 2 Up to 5 litres up to and
including 60 litres capacity (first revision).

3. IS 7408 (Part 3/ Sec 0): 2000 Blow moulded polyolefin containers Part 3 Closed head containers
over 60 litres, upto and including 250 litres capacity ( first revision)

4. IS 8747:1977 Methods of tests for environmental stress-crack resistance of

Blow moulded polyethylene containers

5. IS 1080 : 1994 Blow moulded HDPE containers for packing of vanaspati ( second
revision)

6. IS 15473 (Part 0/Sec 0) : 2004 Blow moulded HDPE containers for packaging of edible oil
specification.
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Blow molding is a manufacturing process that is used to create hollow plastic parts by

inflating a heated plastic tube until it fills a mold and forms the desired shape. The raw

material in this process is a thermoplastic in the form of small pellets or granules, which is

first melted and formed into a hollow tube, called the parison. There are various ways of

forming the parison, as explained below. The parison is then clamped between two mold

halves and inflated by pressurized air until it conforms to the inner shape of the mold cavity.

Typical pressures are 25 to 150 psi, far less than for injection molding. Lastly, after the part

has cooled, the mold halves are separated and the part is ejected.

Parts made from blow molding are plastic, hollow, and thin-walled, such as bottles and

containers that are available in a variety of shapes and sizes. Small products may include

bottles for water, liquid soap, shampoo, motor oil, and milk, while larger containers

include plastic drums, tubs, and storage tanks. Blow molded parts can be formed from a

variety of thermoplastic materials, including the following:

Low Density Polyethylene (LDPE)

High Density Polyethylene (HDPE)

Polyethylene Terephtalate (PET)

Polypropylene (PP)

Polyvinyl Chloride (PVC)

As mentioned above, there are different methods used to form the parison which

distinguish the following three forms of blow molding:

Extrusion blow molding

An extruder uses a rotating screw to force the molten plastic through a die head that forms

the parison around a blow pin. The parison is extruded vertically between the two open

mold halves, so they can close on the parison and blow pin. Pressurized air flows through
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the blow pin to inflate the parison. This is the most common type of blow molding and is used

to manufacture large quantities of relatively simple parts.

Injection blow molding

The molten plastic is injection molded around a core inside a parison mold to form the hollow

parison. When the parison mold opens, both the parison and core are transferred to the blow

mold and securely clamped. The core then opens and allows pressurized air to inflate the

parison. This is the least commonly used method because of the lower production rate, but is

capable of forming more complicated parts with higher accuracy. Injection blow molding is

often preferred for small, complex bottles, such as those in medical applications.

Stretch blow molding

The parison is formed in the same way as injection blow molding. However, once transferred to

the blow mold, it is heated and stretched downward by the core before being inflated. This

stretching provides greater strength to the plastic. Stretch blow molding is typically used to

create parts that must withstand some internal pressure or be very durable, such as soda

bottles.
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1 A Balloon 2 Mold Closes

3 Mold Opens
of Material is Hollow Part
Injected Between Air Forced In Is Removed
Mold Halves Pushes Material And Trimmed
Into Mold Cavities
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STEPS INVOLVING IN BLOW MOULDING PROCESS

PLASTIC GRANULES DROPPING ON TO SCREW THREAD

HDPE GRANULES

HEAT
MOULD

FLUID PLASTIC MOVED BY ROTATING SCREW THREAD

HDPE GRANULES

HEAT
MOULD

MOTOR
HEAT
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FLUID PLASTIC FORCED INTO MOULD

HDPE GRANULES

HEAT
MOULD

HEAT MOTOR

AIR BLOWN INTO MOULD FORCING PLASTIC AGAINST THE SIDES

HDPE GRANULES
COMPRESSED AIR

HEAT

HEAT MOTOR
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BIN REMOVED FROM MOULD

HDPE GRANULES

HEAT
MOULD

HEAT MOTOR
HDPE BIN

HDPE GRANULES
COMPRESSED
AIR IN HEAT

HEAT MOTOR
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LOCATION UNIT

We are going to start the unit at Cherlapally Phase III , besides Indian Oil Corporation, we
have taken newly construction building for lease.

PROPOSED NAME OF UNIT & BRAND NAME

We would like the name the production unit as

bluejay PACKAGING

BRAND NAME

bluejay
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FINANCIAL ANALYSIS
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FINANCIAL ASPECTS

A. Fixed Capital
1. Building (2,300 sft work are a is leased with deposit) : 2,00,000
2. Machinery & Implements
Sl.No. DESCRIPTION Nos RATE ( ` ) AMOUNT IN ( ` )

1. Blow moulding Machine 3 Ltr. 1 6,44,500.00 6,44,500.00

2. Blow moulding Machine 500 ml 1 5,17,000.00 5,17,000.00

3. Scrap Grinder 1 1,19,600.00 1,19,600.00

4. Air Compressor 1 1,45,128.00 1,45,128.00

5. Cooler Tower 1 51,660.00 51,660.00

6. Chiller 1 2,37,145.00 2,37,145.00

7. Platform Type Weighing Machine 1 15,000.00 15,000.00

8. Leak Detectors 1 1,97,000.00 1,97,000.00

9. Set Moulds 15 21,000.00 3,15,000.00

10. Hopper Loader 1 41,600.00 41,600.00

11. Vertical Colour Mixer 1 47,840.00 47,840.00

12. Other Machineries 1,00,000.00 1,00,000.00

Sub Total 24,31,473.00

Packing & Forwarding charges @ 5 % 1,2,3,4,5,6,8,10,11 1,05,823.65

Commissioning @ erection charges @ 5% except item no. 1,2,3,4,5,6,8,10,11 1,05,823.65

Sub Total 26,43,120.03

3. Furniture & Office Equipment ` 50,000.00

Total Fixed Capital Investment

Sub Total: 26,43,120.00

Furniture & Office Equipment 50,000.00

Total 26,93,120.03 Say `.27,00,000.00

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A. Working Capital per month
1. Raw materials & Consumables
No. MATERIAL QUANTITY UNIT RATE AMOUNT ( ` )

1. HDPE (HIGH DENSITY POLYETHYLENE) Granules 7 Tones 80,000 per Tone 5,60,000.00

Basis & Presumptions

v The production is considered on single shift basis and the working days in a month are 25 and that of
per annum is 300.

v The Installed Capacity of the unit is 480 kg per shift. HDPE Granules is processed to manufacture Jerry
Cans of different shapes and sizes. The time period for achieving fully / envisaged capacity utilization is
three years.

v Though the unit is run with Blow moulding technology, many types of plastic articles and households
items can be manufactured. Initially, Jerry Cans of 250 ml, 500 ml, 1 , 2 Liter capacity would be
manufactured in the proposed unit.

v The weight 250 ml capacity Jerry Can is 40 grams, 500 ml capacity Jerry can is 50 grams, 1 liter capacity
Jerry can is 92 grams, 2 Liter capacity Jerry can is 100 grams.

v Wastage in the Raw Materials and process losses has been considered at a rate 2 %.

v The salaries and wages for staff and labour have been taken into consideration as per the Minimum
Wages Act.

v The cost of plant and machinery, Raw materials, selling price of finished products etc. are the prices
collected at the time preparation of project report and may vary depending upon location,
manufactures, market and other various reasons.

2. Salary & Wages

Sl.No. Particulars Nos. Salary ( ` ) AMOUNT ( ` )

1. Machine operator (Skilled) 1 15,000.00 15,000.00

2. Semi Skilled Worker 1 8,000.00 8,000.00

3. Helpers 3 5,000.00 15,000.00

4. Watchman 1 5,000.00 5,000.00

Total 6 43,000.00
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Marketing Expenses
Sl.No. Particulars Nos. Salary ( ` ) AMOUNT ( ` )

1. Own employees 2 10,000.00 20,000.00

2. Commission Agent 5% on there billing 2

3. Advertising & Publication 15,000.00 15,000.00

Total 6 35,000.00

2.Utilities
Sl.No. Description Units Rate / Unit AMOUNT ( ` )

1. Electricity 13,440 4.13 55,507.20

Annexure
Sl.No. Machine Power Load
1. Blow Moulding Machine 2 Ltr 30 HP
2. Blow Moulding Machine 500 ml 22 HP
3. Scrap Grinder 5 HP
4. Air Compressor 1 HP

5. Chiller 2 HP
As the machines run intermittent, the connect load of all the
machinery and the other lighting, fans etc is 10 HP

4. Other Expenses
Sl.No. Description AMOUNT ( ` )

1. Rent for Building (2300 sft) 27,600.00

2. Repair & Maintenance 5,000.00

3. Stores Consumables 4,000.00

4. Telephone 2,500.00

5. Miscellaneous expenses 4,000.00

6. Insurance 2,500.00

Total 45,600.00
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Packaging & Transportation
Sl.No. Description AMOUNT ( ` )

1. Packaging

2. Transportation

Total

Total Working Capital

Sl.No. Description AMOUNT ( ` )

1. Raw Material & Consumables 5,60,000.00

2. Salary & Wages 43,000.00

3. Utility Charges 55,507.00

4. Other Expenses 45,600.00

Total 7,04,107.00

Total Capital Investment

Sl.No. Description AMOUNT ( ` )

1. Total Fixed Capital 27,00,000.00

2. Total Operational cost 7,04,107.00

Total 34,04,107.00

Means of Finance
1. My Contribution (@ 25% on Capital Investment) 8,51,026.00

2. Loan From Bank 25,53,081.00

Total 34,04,107.00

Cost of production ( per annum)

Sl.No. Description AMOUNT ( ` )

1. Total working capital 84,49,284.00

2. Depreciation @ 10% on Machinery & Equipment 2,43,147.30

3. Depreciation @ 15% on Furniture & office equipment 7,500.00

4. Interest on Total Investment @15% 5,10,616.00

Total 92,10,547.00
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Sales Realisation ( per Annum)

Sl.No. Description AMOUNT ( ` ) AMOUNT ( ` )

1. 2400 bottle of 100 ml @ 20 gm wt. @ Rs. 2.50 6,000 x 12 72,000.00

2. 2400 bottle of 250 ml @ 40 gm wt. @ Rs. 4.80 11,520 x 12 1,38,240.00

3. 2400 bottle of 500 ml @ 40 gm wt. @ Rs. 6.00 14,400 x 12 1,72,800.00

4. 72,000 bottle of 100 ml @ 40 gm wt. @ Rs. 11.00 7,92,000 x 12 95,04,000.00

Total 98,87,040.00

Less Marketing Expenses @ 2.5 % 2,47,176.00

Net Turnover 96,39,864.00

PROFITABILITY ESTIMATES

A. Sales revenue per Annum : Rs. 96,39,864.00

B. Cost of production per Annum : Rs. 92,10,547.00

C. Net Profit before Tax (A-B) : Rs. 4,29,317.00

PROFIT RATIO
Net Profit per year
Net Profit Ratio = x 100
Annual Sales Revenue

4,29,317
= x 100
96,39,864

= 4.5%
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RATE OF RETURN ON INVESTMENT

Net Profit per year

Rate of Return on investment = x 100
Total Capital Investment

4,29,317
= x 100
34,04,107.00

= 12.6%

BREAK EVEN ANALYSIS

Fixed Cost
Sl.No. Description AMOUNT ( ` )

1. Rent on Building 27,600.00

2. Depreciation @ 10% on Machinery & Equipment 2,43,147.30

3. Depreciation @ 15% on Furniture & office equipment 7,500.00

4. Interest on investment @ 15% 5,10,616.00

5. 40% Salary & Wages 2,06,400.00

6. 40% Utility Charges 2,66,433.00

7. 40% Other Expenses except rent 2,18,880.00

Total 14,80,576.00

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

14,80,576
B.E.P. = x 100
14,80,576 + 4,29,317

= 77.5%
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Machinery Suppliers
1) M/s AARNA MACHINES PVT. LTD
A-4, Gundecha Building, 3 X H.K. Road, Kandivali (W),
Mumbai - 400067, Maharashtra, India
Phone:91-22-28051466

2) M/s ELGI EQUIPMENT LIMITED

Singanallur, Coimbatore - 641 005, India.
Tel: 422- 2589555

3) M/s GEM Equipments Limited,

S.F. No.103, Avanashi Road, Arasur,
Coimbatore, TN 641 407, INDIA
Phone: 422- 2360013

4) M/s SARO ENTERPRISES

OFFICE & FACTORY: 28,
First Reddy Street, Ekkattuthangal,
Chennai – 600 032
M: 9884068651

5) M/s Progressive Engineers

Mumbai, INDIA.
T: +91-22-25796760 /
32944289 /32953422
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Other Blow Moulded Containers

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