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How To Start New Plastic Injection Moulding Company

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How To Start Injection Moulding Company
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If you have reached this page then somehow you are associated with Injection Moulding of
Plastics, if not then you can still find some useful information about starting a business.
Starting any business need planning. Planning includes the following points to be studied and

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discussed with experienced professionals, friends before actually starting a company.

Things to Know

Purpose of Starting
PLC for Injection Moulding Machine
Mainteance of Moulding
low price.
Used Injection Moulding
Servo Motor Retrofitting

Products & Services

Platen Threading / Recoiling

Yuken Proportional Valves

Experience in Injection Moulding

Financial background
Technical knowledge about Plastics Processing
Location of Plant very important
End Customers and Location
Products to be manufactured / Job Work

Servo Valve Repair Service

Variable Displacement Pumps
Board Repair Services

Type of Products to be made Commercial / Industrial / Automotive / Aerospace

Legal Status of the Company Proprietor / Partnership / LLP / Pvt. Ltd. / Ltd.
Number of Partners / Directors
It all starts with your knowledge and experience in the Plastics Processing Industry, especially
Injection Moulding. I restrict my discussion to starting a small Proprietorship / Partnership

Potentiometers / company doing Job work or moulding commercial plastics components.
A Guide
to Injection
Now a days many people who are not associated with plastics are also starting Injection
SSR, Heater Control
Relay Card

moulding plant, by way of necessity / opportunity available.

Most people think about their budget first and decide about the size of the plant accordingly.
For a new comer starting Injection Moulding plant with little experience in the field, seems to
be easier with smaller machines initially. But you have to look at the over all project cost
before deciding what capacity machine to be purchased.

Recoil Spring

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Let us assume that one has decided to start with 100Tons Injection Moulding Machine to
manufacture Commercial items like 20 liter Water Jar Cap or house hold items.



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Plant Requirements
Plant Size in Square Feet
Amount of Rent per Month @ 20 per sq.ft
If rental Premises Cost of Advance
Cost of Machine assuming Used Machine

400 600 Sq.ft
8000 12000 minimum
10 Months of rent is norm
6.0 to 8.0 Lakhs depends
and condition of the machine
50000/Approx 35hp
60000/30000/25000/25000/5000 15000/30000/If required

A Frame with 2tons Chain Pulley Block

Power Required for Machine
Cooling Water Pump Power
Cooling Tower and Piping
Mould clamps and Tools
Hydraulic Oil for Machine about 200liters
Machine loading and unloading erection
Machine Transportation if not in the same city
Electrical fittings, wiring in the Building
Accessories like Scrap Grinder, Oven
If own products then cost of Mould
Working Capital considering 6 months rent, wages, and 3.0 lakhs
other expenses
Number of employees assuming accounts work to be taken 6 for 24 hours operation
care by owner./ consultant
Registration with Sales Tax
10000/Stationery Printing
Office Furniture
Rs. 13

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Monthly Expenses


Electricity Bill
Wages and staff welfare
Miscellaneous Expenses
Telephone / Mobile Expenses
Transportation Expenses
Interest on Investment @ 18% per annum
Insurance for Equipment

To be de

To be de

Total Monthly Expenses

**** assuming accounts related work is carried by owner. Otherwise you may have to pay
another Rs 1000/- Per month for filing sales tax returns.

Annual Expenses
Audit fees.
Filing of Income tax returns
Annual Sales tax assessment
Bonus for Employees
Festival / Pooja Expenses if any
Insurance for Equipment and plant

Statuary Requirements
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License to be taken from local Panchayat / Muncipality /

Corporation to run the Business.
Profession tax to be deducted from employees and paid to
the corporation
Monthly Sales Taxes to paid before 20th of Every month after
filing returns online.
If Registered with Central Excise then Duties to be paid
before 5th of every month
if Registered with Service Tax then same to be paid before
5th of every month.
TDS to be deducted and paid for payments made to sub-contractors, service providers.
Registration with ESI and PF to be made if no of employees are more than 15.
Filing Income Tax returns every year.
NOC from Pollution Control Board.

Working Capital Requirement

About six month's expenses to be the basis for working capital, so it is about 5,00,000/- in this
case. This amount needs to be kept aside and should not be used for buying equipments and
If the Machine is in good condition then it will not give any trouble otherwise spending for the
machine repairs will also to be accounted.

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Billing and Revenues

Assuming 100 tons Injection moulding machine is being used for producing commercial plastic com
then costing is done based on shift rate or based on weight of Materials converted in Kgs. Per shi
1500 or per Kg Rs. 10/- is now norm in the market.
Revenue Calculation
Shift Rate
1500/Per Day
4500/Per Month assuming 25 days of production

So the revenues are just sufficient to pay the monthly expenses. If Owner is able to reduce the E
expenses, then that expense can be saved to survive. For this, Machine should run without any trou
days and there should be orders for the same. If any one fails then it will become loss.

To avoid this any one starting company should start with little higher capacity machine like 200 tons a
so that monthly revenues will be more and wages would be same so that income increases. W
Electricity bills are most expenses should be paid monthly without fail.

For this reason we strongly recommend not to start with lower capacity machine. Adding second mac
in one year will reduce the administration expenses like wages and increase the growth prospects.

Assumptions made in Project Report

Materials processed are PP, HDPE, LDPE. Etc which does not need preheating.
Location : Tamilnadu. Other places local taxes may wary like octori
Labour availability and cost low / medium.
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Un-official expenses not taken into account

Some times accommodation to be provided for employees is not accounted.
If ABS, Nylon, Polycarbonate, etc then Cost of Pre-heating the material and its equipment cost
also to be considered in the project cost.
If doing job work for any Automotive Supplier then maintaining Quality standards like ISO9000,
registering with Central Excise is also to be done.

Service Tax Implications

If billing done to one single customer and if it exceeds 4.0 lakhs per annum then
Registration with service tax is mandatory and service tax to be charged, if
customer is not an assessee of Central Excise. If not Job work, then Sales Tax
rate based on the components produced to be levied and the same to be paid to the CTO
(commercial Tax Officer ) every month by filing returns.

Other issues to be taken care

Safety during machine operation. Several instances are there where employees
have lost fingers / hands / life due to poor maintenance of shop floor and
machines. Safety of the Mould is also uptmost important. Many times operators
use metal rods to remove the stuck components from the mould which will
damage the mould. Also clamping of the mould to be done propperly with right torque. Bolt
should enter the platen atleast 30mm.
Recently one of our customer who started a new company lost half of his hand even before
company is up and running. Safety
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issues needs to be seriously taken care of from the

beginning of the operations. Internal wiring to done with proper earthing to the Machines.
Several companies gutted completely due to short circuit, losses running into cores of rupees.
Any unexpected loss to a new company that too in the first year is too much to bear and
should take extreme care in maintaining the shop floor and employee safety.
It is always suggested to make detailed study before stepping into starting a new company.
Decisions should not be taken on assumptions / hypothetical thinking. Discussing with
experienced professionals in the filed is mandatory.

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Support from

At creative we provide professional support to the customers to buy suitable machines and
offer after sales support through out the life of the machine. Some times we even say not to
venture into based on the market conditions prevailing. Some times we suggest to go for bigger
capacity machines instead of smaller machines.
So far we helped lot of new companies who have grown well and doing good business. We
helped companies to reduce the Electricity bills. We helped companies, who want to close by
selling their machines. Simply we are one point source for all your need for setting up , running
an Injection Moulding Plant.

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Support Network :

After sales Support available in INDIA for all the products sold by Creative. We have wide network of associates across India to support
customers in time. Since these products are made in India getting spares is easier and low cost.
We have wide network of associates across India for after sales service, in cities Bangalore, Bengaluru, Chennai, Coimbatore, Trichy,
Madurai, Tirunelveli, Pudukottai, Pondicherry, Salem, Vellore, Hyderabad, Kurnool, Nandyal, Nellore, Rajamandry, Vijayawada, Vizag /
Vishakapatnam, Tirupati, Chittoor, Tumkur, Mysore, Goa, Mumbai, Pune, Aurangabad, Jalgaon, Nasik, Ahmedabad, Surat, Vadodara,
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Delhi, Amritsar, Ludhiana, Jammu, Uttaranchal, Kolkata, Jaipur, Nagpur, Kanpur, Lucknow, Rudrapur, Ahmed Nagar, Ranchi, Kerala,
Thiruvananthapuram, Palakkad, Cochin,Thrissur etc.
More than a dozen dealers are selling Used Injection Moulding Machines in Chennai alone. Most of those dealers do not offer after sales
support. At Creative we provide third party support for any brand like Arburg, Battenfeld, Cincinnati Milacron, Chalese, Dr. BOY, Demag,
Engel, Ferromatic, Hishiya, Haitian, Haitai, Hwashin, JSW, Kraussmaffei, Niigata, Sandretto, Super Master, Jet Master, CMP,
Jagmohan, Rana Sons, Victor, Windsor etc.
Note : Brand names and trade marks mentioned here belongs to respective owners.
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