Manufacturing of PET preforms
KSIDC
PROJECT PROFILE
ON
MANUFACTURING OF PET PREFORMS
Prepared by:
Kerala State Industrial Development Corporation Ltd.
September 2012
Manufacturing of PET preforms
KSIDC
PROJECT PROFILE FOR MANUFACTURING OF PET PREFORMS
INTRODUCTION
The basic technical and financial parameters of a project on the manufacture PET
preforms by injection moulding PET bottle grade resin are described in this profile. This is
the first stage in the two stage PET bottle manufacturing process suitable for large scale
production and here the pet preform is molded on an injection moulding machine, then in
the second stage the preform is reheated and blown on a blow moulding machine. The
advantages of PET bottles include exceptional clarity, pure, safe, good barrier to oxygen,
carbon dioxide and water, lightweight and therefore less shipping costs, no leakage, design
flexibility, recyclable, long shelf life, good chemical resistance etc.
MARKET
The consumption of PET bottles is increasing on account of new customers being created
for bottled beverages as well as an increasing number of products being replaced with PET
bottles. The per capita consumption of PET is very low in India at 0.3 kg vis-à-vis the global
average of 2 kg. This shows that there is a significant growth opportunity for PET bottles in
India. In 2010, the PET resin demand was 5 lakh tpa and the demand has been growing at
7.5% per annum. In the bottled water industry itself there is a great demand for PET bottles.
PET preforms can be used for Packaging of Mineral Water, Juices, Liquor, Soda, Sparkling
Drinks, Edible Oil, Pharma Products, Pickles, Squashes, FMCG Products etc.
MANUFACTURING PROCESS
PET granules received from suppliers are dried in a dehumidifier. The PET granules
are then mixed with colorants. Then the material is fed into the injection moulding hopper.
The material is plasticized and is injection moulded in a mould which can produce 12-72
preforms in a single moulding. The moulded preforms are cooled in the machine itself till it
can maintain its shape and is taken out and cooled at room temperature. The preforms are
then packed in cartons for despatch.
PROJECT PARAMETERS
• Capacity
Proposed capacity of production
: 1,246 ton PET preforms per annum
• Land
Extent of land required
: 0.5 acres
Manufacturing of PET preforms
KSIDC
• Location
The project is proposed to be located at KSIDC’s Industrial Growth Centre at Valiya
Velicham, Kuthuparamba in Kannur District
• Raw Material & Utilities
Raw materials include various PET bottle grade resin, colorants etc. The total connected load
is estimated at 200 KVA and water requirement is estimated at 5KL / day.
• Plant & Machinery
The main items of machinery include four 50 tonnes injection moulding machines costing `
40 lakhs each.
• Manpower
Requirement of manpower is estimated to be 26 and include six administerial staff, five
skilled workers and 15 unskilled workers.
• Cost of the Project
The total cost of project is estimated at ` 617.00 lakhs as given below.
Item
Approx. cost
in ` lakhs
Land on lease
Land development
Building
Plant & Machinery
Utilities
MFA
Tech know-how & Engg Fee
Contingencies
Deposits
Prelim. and pre-op. Expenses
Margin money for Working Capital
Total
10.00
17.00
123.00
212.00
114.50
7.00
5.00
21.90
1.00
37.80
67.80
617.00
The time required for completion of the project is estimated to be 12 months.
• Means of Finance
Means of Finance for the Project is given below .
Equity
Share Capital
` 308.50 lakhs
Manufacturing of PET preforms
Debt
Term loan from FIs/ Banks
Total
KSIDC
` 308.50 lakhs
` 617.00 lakhs
• Sales Turnover
The optimum Sales Turnover (Revenue) is estimated to be ` 900 lakhs and can be achieved in
year 4.
FINANCIAL INDICATORS
•
•
•
•
•
Net Profit in year 4
Break Even Point (BEP)
Debt Service Coverage Ratio (DSCR)
Debt Equity Ratio (DER)
Internal Rate of Return (IRR)
` 159.65 lakhs
40.64%
3.23
1:1
27%
CONCLUSION
The project is found to be techno-economic viable. The project can be integrated vertically by
adding a line of the bottles / jars production from the preforms. The demand of packaged
and ready to drink /eat items is increasing tremendously with changing lifestyle, there is
huge potential for PET bottles/ jars and hence for PET preforms. The project is highly
recommended for implementation.
For further details please contact Kerala State Industrial Development Corporation Ltd.
Disclaimer:
The findings contained in this Project Profile are based on the initial information collated through primary and secondary
research, which is indicative in nature. Reference herein to any specific commercial product, process, service by trade name,
trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring by
KSIDC or any entities thereof.