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PROJECT REPORT - ADHESIVES

MANUFACTURE OF ADHESIVES
(Manufacture and marketing of BOPP self adhesive tapes
& Electrical PVC insulation tapes)

TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES

TRENDS INDUSTRIES
INDEX

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Description

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No.
Project At A Glance
Introduction
Market potential
Manufacturing process
Flow sheet diagram
About the promoter
Basis and Presumption
Inspection and quality control
Production Capacity
Pollution control
Electrical requirements
Financial aspects - Fixed capital
Total Recurring expenditure
Working capital assessments
Other financial aspects
Break-even analysis
Turn Over per Annum
Profit per Annum
Area Requirement

PROJECT AT A GLANCE
Name of the Company
Date of Incorporation
Constitution
Registered Office

TRENDS INDUSTRIES
2014
Proprietary Concern
Hyderabad

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PROJECT REPORT - ADHESIVES


Registration No.
Name of the

Will register as SSI unit


P. V. S. Soma Sekhar

Proprietor
Project Site
Project Description

K. Rajani Kumari
Near Vijayawada
BOPP TAPES &

Project Cost
Means of Finance

MANUFACTURE
Rs. 182.68 Lakhs
Promotors Contribution

Employment Potential
Land Required
Technical Know how

Institutional Finance
7 (Direct)
2000 square meters
Machinery supplier

Provider
Production Capacity

Annual capacity:60,000 cartons/year

Raw Material

10,000 cartons/year (PVC)


Film, Gum, Cartons, Core, Sleeks, Pigment ,

Pollution
Procurement of other

Diesel etc.
NIL
Power: 45 KVA

Utilities
Marketing

Water: 500 Liters per day


Company will advertise and market directly.

PVC

INSULATION

: Rs.

TAPES

62.68 Lakhs

: Rs. 120.00 Lakhs.

(BOPP)+

Arrangement

1. INTRODUCTION:
Adhesive Tapes are widely used for packaging, Labeling, electrical
insulation, Stationery, Sealing and general purpose applications. These
tapes are based on many kinds of pressure sensitive adhesives where in
adhesive is applied on one side. They can be easily put on any surface
very conveniently by applying slight pressure either mechanically or
manually.
Each and every industry will come across the adhesive tapes for the
purpose of packaging. So the major part of the application of the adhesive

TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES


tapes is occupied by the packaging industry and the other applications of
these adhesive tapes are stationery and households.
The size of the adhesives market in the country is around 5,000 tonnes
per month. In India and across the world, the industry is fragmented.
There are many companies that manufacture various types of products.
These products serve a plethora of markets.
Objective:

Manufacturing and marketing of BOPP self adhesive tapes.


Electrical insulation tapes (PVC tapes)

Adhesive manufacturing (used to coat the film for BOPP tapes), Core
making, at later stage(expansion program)
Annual capacity:60,000 cartons/year (BOPP)+ 10,000 cartons/year
(PVC)
Applications: packaging of cartons ( Brown, printed with company logos,
etc.. ), transparent Stationery tapes.-BOPP.
Electrical insulation tapes are used in current wiring(PVC).

BOPP
BOPP is a bi-axially oriented polypropylene film designed for flexible
packaging, packaging, label & Print finishing applications. OPP, oriented
polypropylene, is a flexible material derived from melting and orienting a
polymer called polypropylene. Biaxially oriented means that the
polypropylene film is stretched in machine direction and in transverse
direction.
The main feature of BOPP films are improved stiffness, high tensile
strength, excellent optics and good water barrier properties. They range
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PROJECT REPORT - ADHESIVES


from 15 to 50 microns and are most commonly 15 to 30 microns. BOPP
films have the advantage of being non-toxic and fully recyclable.
PVC Electrical Insulation Tape
Electrical tape (or insulating tape) is a type of pressure-sensitive tape
used to insulate electrical wires and other material that conduct
electricity. It can be made of many plastics, but vinyl is most popular, as it
stretches well and gives an effective and long lasting insulation. Electrical
tape for class H insulation is made of fiberglass cloth.
PVC self-adhesive insulation tapes are widely used for electrical insulation
and provide good insulation to industrial material. These PVC adhesive
tapes can be extended both crosswise and longitudinally when applied
and should be treated by heat-shrinkage before. These tapes are based
on many kinds of pressure sensitive adhesives where in adhesive is
applied on one side. They can be easily put on any surface very
conveniently by applying slight pressure either mechanically or manually.
Historical Perspective
1.1 Plastic Industry had its beginning in India in the mid twenties, LDPE
was produced in the late fifties, and HDPE in the late sixties. Polyethylene
has been the most used plastic films in India, and in the early sixties cast
polypropylene has made entry and was accepted because of its superior
properties. Stretching this film, especially in both directions, produces
even superior properties of tensile strength, flexibility, toughness and
such other. The stiffness of BOPP film is three times that of cast film and
eight times that of polyethylene film.
1.2 Even though the first BOPP process was developed in Germany in
1935, it made its rapid commercial entry only in the early sixties. The

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current world consumption is one million tonnes and the growth rate
around 8%.
1.3. BOPP made its entry into India only during the eighties, and the
present Indian consumption is less than 1% of the world consumption.
1.4. BOPP can be manufactured as heat sealable or as non heat sealable
material and in either case produced as white opaque, pearl lustre or
clear transparent films. Certain additives are usually added to improve its
properties relating to slip, blocking, modifying the heat seal temperature
and anti static requirements.
1.5. BOPP films are specified in terms of their end use requirements such
as strength and other physical properties, clarity and permeability. The
films are also converted through operations such as printing, coating,
lamination, metallisation and pouching to enable ultimate end use.
1.6. BOPP can be manufactured through either the Tubular or Bubble
process, or the Tenter process. In the Bubble process, polypropylene is
extruded in a tubular form and transverse orientation is achieved by
inflating the heated and softened tube with compressed air. On the other
hand in the Tenter process, the film is cast as a sheet and then stretched
in both directions. 0.1.7. Bubble process is generally used for lower
capacity production and the Tenter process for larger capacity production
suitable for longer runs. The film made by the Tenter process will have
better clarity and higher tensile and compressive strengths.
1.8. The raw materials used in BOPP are Polypropylene homopolymer and
Polypropylene copolymer. The latter is used to produce three layer BOPP
for heat scalable applications. A small part of the raw material
requirement for this industry is produced by the Indian Petrochemicals

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Limited, Baroda and the rest of it has to be imported. IPCL is however
going in for an expansion which could meet the full indigenous demand.
The additives used in the film production are all imported.
1.9. The basic manufacturing plant comprises of compounding and
feeding, extrusion, casting, orientation, gauging, winding, recycle, Corona
treating and profile control systems. The main line plant is imported and
auxiliary equipment and utilities are indigenously obtained.
1.10. The first Indian BOPP unit to come up was MM Rubber in Tamilnadu
closely followed by Cosmo films in Maharastra and later by M P United
Polypropylene Ltd. At present, seven units are in operation, though
thirtytwo units took license for this activity. The present installed capacity
is 17000 tonnes and production during 1990-91 was 8400 tonnes. Cosmo
films has the largest capacity of 4000 tpa followed by Biax Ltd with 3900
tpa.
1.11. The Indian market has applications for BOPP in areas relating to
overwraps, innerliners, tapes, pouches/strip packs, print laminations and
decorative and release films and such other.
1.12. Adhesive tapes, print laminations, cigarette wrapers and biscuit
wrapers together account for more than two thirds of the BOPP market in
India today. It is estimated that the BOPP demand will go up to 17000
tonnes by 1997 reflecting an annual growth rate of 13.5%.
1.13. Of the seven manufacturers, five have obtained their plants from
Bruckner, Germany, one from Marshall Williams of USA and another from
Mitsubishi of Japan. The Mitsubishi plant is of the Bubble process, while all
other plants are of Tenter process.

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1.14. BOPP is presently manufactured by over thirty companies around
the world. Europe and North America account for roughly 80% of the total
market. Plants of maximum unit capacities of 16000 tpa with 8 meter
width of BOPP at speeds of 300-500 meters per minute are also in use.
Tenter is the most widely used process and some of the recent
improvements are automatic thickness and profile controls, and
computerised process controls.
1.15. A major difference between a typical International plant and a
typical Indian plant is the difference in size. This results from the larger
international market and the consequent long runs between product
changes. Infrastructural weaknesses, the very high cost of maintenance
and spares, and end user requirements also inhibit usage of large
capacity plants in India.
1.16. There is very little R & D activity in this industry. Testing facilities
with certain institutions like Indian Institute of Packaging, Central
Institute of Plastic Engineering & Technology, Indian Institute of
Technology, Central Food Technology & Research Institute, Indian Institute
of Toxicology are sometimes used by the industry. There are no Indian
standards for this material and the industry very largely uses ASTM
standards and end user specifications.
1.17. Of the seven manufacturers, six have obtained technical knowhow
from machinery manufacturers and the seventh from a BOPP
manufacturer overseas. Assistance from overseas consultants also have
been used to help in knowhow transfer and trouble shooting.
1.18. Technology gaps exist between Indian and overseas manufacture in
the area of raw material, equipment, process, film application,
consumption norms, conversion and end use.

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1.19. The single manufacturer of raw material in India, IPCL,


manufactures a limited range. Additives are not manufactured in India.
The plants in use in India are of less than half the capacity of typical
international plants and have lesser degree of automation such as
computerised, controlled, automatic reprocessing of scrap and such other.
1.20. Certain types of films such as those for DC capacitors, twist wraps
are not manufactured in India. Technology is also not available in India for
certain conversions of BOPP film such as acrylic coating, PVDC coating,
cold seal. High aroma barrier film has also to be developed. It is also
generally observed that the plant down time and wastage is of a higher
magnitude in India as compared to overseas plants.
1.21. Exports from India are minimal in this area mainly because of
technology gaps. Further India does not appear to have a comparative
advantage because of importation of plant and raw materials and low
labour intensity.

2.MARKET POTENTIAL
The global scenario

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The global market for adhesives and sealants is growing at about the rate
of GDP, with significant variations between the regions. Historically, the
industry was dominated by a few industrialized countries. Now, a
significant portion of new demand is being generated by emerging
countries such as China. The next major growth country could be India.
The largest global markets are North America, Western Europe and the
Far East. These three regions account for 85 per cent of the global
demand volume and 78 per cent of the total global value.
The Far East region continues to show the greatest growth and has the
most vibrant country markets. China has surpassed all other countries in
per annum growth, which overall is estimated at 7 per cent for the next
three years.
The three major forces that are driving the market are globalization, the
strengthening of new trading blocs, industrial consolidation and
technological evolution.
Market fragmentation continues as new adhesive demand is generated
from a supply and demand standpoint. The demand growth is also
supported by the emergence of new market applications that result from
changing substrates and evolving assembly processes. On the supply
side, despite ongoing industry consolidation and M&A activities at the
level of the multinational companies, new small- and medium-sized
companies are beginning to serve targeted market niches and/or
specialize in a specific state-of-the-art technology.
The world market for adhesive tapes is projected to expand at an annual
pace of over 6% through the year 2004 to almost 25 billion square meters
valued at $20.5 billion. Adhesive tapes will continue to account for over

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PROJECT REPORT - ADHESIVES


two-thirds of aggregate sales. Tapes will make further inroads at the
expense of competitive carton sealing media such as glues and
mechanical fasteners. Rising corrugated box sales will also bode favorably
for Adhesive tape demand. Among the other tape types, the best
opportunities exist for technical and specialty tapes, such as the
double-sided adhesive tapes increasingly utilized in fastening and bonding
applications in industries such as building construction, motor vehicle
assembly, electronics and telecommunications etc.
The global market for adhesives and sealants is expected to reach USD
43,195.5 million by 2020, according to a new study by Grand View
Research, Inc. Growth of construction, automotive and packaging
industries, mainly in China, India and Brazil is expected to drive the
demand for both adhesives and sealants over the forecast period.
However, fluctuation in prices of key feedstocks is expected to remain a
primary challenge for industry participants. In addition, stringent
regulatory framework, mainly in the U.S. and Europe, owing to growing
environmental concerns is expected to hinder the market growth over the
next six years. In order to overcome the aforementioned challenges, the
industry has been shifting its focus towards developing renewable
alternatives to petroleum based adhesives and sealants. Renewable
adhesives and sealants are produced using vegetable oils and are
environmental friendly in nature.
Water based adhesives dominated the global market, accounting for over
46% of total market volume in 2013. Water based adhesives have low
environmental impact with no VOC emissions, a key factor for their high
market penetration. Water based adhesives are expected to completely
replace solvent based adhesives in the U.S. and European markets over
the next decade. Water based adhesives are also expected to be the
fastest growing technology, at an estimated CAGR of 5.4% from 2014 to

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2020. The global market for hot melt adhesives is expected to reach
2,379.9 kilo tons by 2020, growing at an estimated CAGR of 5.1% from
2014 to 2020.
Global BOPP Market Scenario: Global annual average demand-growth
for bi-oriented polypropylene film is set to drop by about 2% in the next
few years. Capacity, however, is set to expand by 33%, which could make
for an interesting combat for market share. These are figures released by
PCI Films Consulting. The study examines the BOPP film market from
2003-2008 and predicts where it is headed for the period 2008-2013. PCI
predicts that demand will fall in every region, though that fall will be most
pronounced as a percent of total demand in Western Europe, the only
region where demand fell in 2008. The US$15 bln BOPP film industry
experienced more positive buyer behavior in other regions, Growth in
demand was seen in Eastern Europe, propped by investment in retailing,
food processing and new converting equipment. In South East Asia,
especially India, growth was stimulated by increased availability of film.
North America experienced a 3% growth in demand in 2008 owing to the
buoyant Mexican market, whereas demand in Central and South America
remained relatively stable. Due to recent capital investment, supply and
demand

in Chinas 1.8 mln ton market became

more

balanced,

encouraging suppliers to plan the next expansion phase of their industry


In South East Asia, especially India; growth was stimulated by increased
availability of film. A leading manufacturer of film extrusion equipment
has sold 10 new lines to China in 2009, equivalent to 375,000 tons of new
capacity.

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Demand and supply of bi-oriented polypropylene (BOPP) film is set to see


strongest growth in nations such as Dubai, India and China as the current
order in the sector swings from West to East. The report also confirms
that the Middle Eastern BOPP film industry is expected to emerge as a
significant regional production center in the future, doubling its size in the
next three years. One of the major factors driving this growth is the
support given by regional governments to downstream industries, which
are capable of adding value to oil assets. PP resin production, film
extrusion, flexible packaging, and food processing are all industries
targeted for expansion in the region. Limited regional demand, however,
means processors there will be pressed to find customers in export
markets. In the next five years an additional 2.3 mln tons of new BOPP
film capacity is expected to be commissioned, expanding the industry by
a third, which will likely will cause a shakeup not only in the markets
leadership but also in its pricing structure. Middle Eastern BOPP film
producers are confident of strong regional demand growth from flexible
packaging customers and increased opportunities to export volume based
on their lower costs of production. The report predicts that between 2009

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and 2014 there will be a strategic shift in the balance of power away from
the traditional suppliers of BOPP film. Previous market leaders such as
Treofan and ExxonMobil, have already had to make room for new players
such as Dubai-based Taghleef Industries and others emerging in India and
China. In the last five years, Taghleef has invested in new low-cost
equipment and also bought regionally based assets such as Radici Film, to
emerge as one of the worlds largest BOPP film producers with a worldwide

network

of

supply.

The Central and East Asian region, which includes South Korea, Japan and
China, is now the worlds largest producer and consumer of BOPP films
accounting for 46% of demand and capacity. The world BOPP film industry
has expanded by 60% since 2003 with China commissioning the majority
of new capacity. In 2008, while Asia saw demand grow by 7%, BOPP
volume demand in Western Europe shrunk by 3.1%.
Asia-Pacific: a market place of Adhesives & Sealants
The industry is witnessing high growth on an account of growing demand
in the Asia-Pacific region. China and India are the biggest consumers of
adhesives and sealants due to rapid industrialization and infrastructure
growth. Japan, Korea, and Taiwan have high per capita consumption of
adhesives and sealants and thus, are expected to grow with a moderate
CAGR.
The packaging, construction, and automotive industries are growing at a
high rate in China and India driving the demand of adhesives and
sealants. There is low control on consumption of high VOC adhesives and
sealants in China and India due to the absence of related Government
policies.
Key Market Players

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Market players are concentrating on expanding their product portfolio and
offer it to the consumers at competitive prices. The major market players
are focusing on R&D activities to innovate products under the stringent
regulations of EPA (Environment Protection Agency) and REACH
(Registration, Evaluation, Authorization, and Restriction of Chemicals).
Other development strategies opted by the market players include signing
agreements & collaborations to optimize their distribution chain in the
growing economies.
Key participants in adhesives and sealants market are Henkel (Germany),
Bayer Material Science (Germany), BASF (Germany), H. B. Fuller (U.S.),
Sika AG (Switzerland), The Dow Chemical Company (U.S.), and other
market participants.
Adhesives market in India
A recent report by Kotak's private client group on Pidilite Industries has
some info on the adhesives market in India. Extracts from the Kotak
report:
We estimate Indian adhesive market size at Rs 60 bn currently implying
per capita consumption of close to Rs 50. We believe that from per capita
standpoint, adhesives consumption in India is much lower than the
developed economies like USA, Japan and Europe (per capital
consumption estimates at Rs 750 in USA, Japan and South Korea
combined).
Currently, the major applications of adhesives in India are in furniture,
packaging, automotive and construction. We highlight that India differs
with other regions in terms of usage of disposable products. We believe
that growth in usage of such items would provide thrust to adhesive
demand going ahead.

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Pidilite has been enjoying a leadership positioning with over 60% market
share in Indian adhesives market and faces very little competition. Apart
from PIL, other noticeable players in the industry are 3M India,
Huntsman, National Starch, Bostik Findley and others. Huntsman with its
product Carpenter is considered as closest rival to the company is
furniture segment
Woodwork and furniture sector has been the major growth driver for
adhesives in India. Indian furniture Industry is estimated at around Rs
710 bn (Source: Annual Report-2013 Greenplay Industries Ltd) and is
estimated to grow at 25-30% CAGR over the next few years (Source:
Ernst & Young). Indian furniture industry is highly fragmented with
unorganized players enjoying over 80% market share. Some of the
prominent players in organized sector are Godrej & Boyce, Haworth,
Pantaloon, Shoppers Stop, Millenium Lifestyles, Durian, Tangent, Furniture
Concepts and Zuari.
Packaging is another industry that influences the demand of adhesives.
Adhesives are primarily required in making containers and flexible
packaging.
BOPP: The Indian scenario
BOPP or Biaxially Oriented Poly Propylene was introduced about 30 years
ago as a supplement to cellophane but only recently it was realized that it
would be the world leader and the most preferred material for functional
flexible packaging. Biaxially Oriented means that the polypropylene film
is stretched in both the machine direction (MD) and cross direction (CD).
Because of its superior strength at low gauges, flatness, clarity and
excellent printability, BOPP has become a major material for flexible
packaging. BOPP can be manufactured as heat sealable or as non heat

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PROJECT REPORT - ADHESIVES


sealable material and in either case produced as white opaque, pearl
luster or clear transparent films. Certain additives are usually added to
improve its properties relating to slip, blocking, modifying the heat seal
temperature and anti static requirements (discussed in detail below). The
basic BOPP manufacturing plant comprises of compounding and feeding,
extrusion, casting, orientation, gauging, winding, recycle, Corona treating
and profile control systems. The main line plant is imported and auxiliary
equipment and utilities are indigenously obtained. The first Indian BOPP
unit to come up was MM Rubber in Tamilnadu closely followed by Cosmo
films in Maharashtra and later by M P United Polypropylene Ltd. At
present, seven units are in operation, though thirty two units took license
for this activity. The present installed capacity is 17000 tonnes and
production during 1990-91 was 8400 tonnes. Cosmo films have the
largest capacity of 4000 TPA followed by Biax Ltd with 3900 TPA.

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The above figure is a graphical representation of some of the major
manufacturers of BOPP in the world.
A recent report by Kotak's private client group on Pidilite Industries has
some info on the adhesives market in India.
Extracts from the Kotak report:
We estimate Indian adhesive market size at Rs 60 bn currently implying
per capita consumption of close to Rs 50. We believe that from per capita
standpoint, adhesives consumption in India is much lower than the
developed

economies

like

USA,

Japan

and

Europe

(per

capital

consumption estimates at Rs 750 in USA, Japan and South Korea


combined).
Currently, the major applications of adhesives in India are in furniture,
packaging, automotive and construction. We highlight that India differs
with other regions in terms of usage of disposable products. We believe
that growth in usage of such items would provide thrust to adhesive
demand going ahead.
The use of BOPP in Packaging: In todays world, technological
advances have changed people in general to become more practical and
efficient, including in their choice of packaging for a product. The
improvements in people's economic welfare have stimulated the demand
for more hygienic and esthetic packaging to attract buyers. As a result of
tight competition, packaging is no longer a supporting element in the
distribution of goods but has become a factor determining marketing
success, particularly for consumer goods. As a result there as been a shift
in the role of packaging, plastic film, especially BOPP film is becoming a
popular alternative material for the flexible packaging industry. BOPP film
is not only more cost efficient than other materials, such as cellophane

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film, kraft paper and aluminium, but also has greater resistance to pull
and shock, temperature changes and gas penetration. BOPP film also has
an advantage in its physical appearance due to technological advances in
flexible packaging and rotogravure printing.
BOPP film is the most popular plastic film for flexible packaging as a
substitute for cellophane film because of its quality. It is not only more
attractive in physical appearance but also more resistant to humidity.
BOPP film is produced in the form of plain and special film.
BOPP film is used for the packaging of various products, including food
products and cigarettes, as well as for producing adhesive tape. As such
by function, there are six types of BOPP film namely, plain film, heat
sealable film, white pearlescent film, metallizable/metallized film and
PVdC coated film. The demand for BOPP film for food products is very
dominant at the moment as a result of the rapid growth of food industries
in the country, such as instant noodle, snack food and biscuit industries.
Around 55% of the national BOPP film production is used for the
packaging of food products. The cigarette industry also uses BOPP film in
significant quantities, accounting for around 16% of the national BOPP
film production. The other industries contributing to the growth of the
BOPP film industry in the country include the adhesive tape, album and
laminating industries.
The strong demand for BOPP film has encouraged investors to go into the
BOPP film industry, as indicated by the existing investment plans in the
industry. In view of its rapid growth as a relatively new industry, it is
interesting to have a close look at the BOPP film industry in the country to
find out its prospects.
Types of BOPP: The different types of BOPP films used in the market are
as follows:

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Transparent and Opaque Non heat sealable film: This grade of
film is generally used in conjunction with wax coated paper. Non heat
sealable films are used for pressure sensitive tapes, over lay in print
lamination,

as

release

agents

in

decorative

laminates

and

most

importantly in lamination with other substrates selected to add sealability


and other characteristics. If an opaque film is used, it further reduces
light penetration and protects the products against UV radiations.
Transparent, heat sealable film: This grade of film is mostly used to
pack all snack products, either alone or as a laminate with other films.
These films are manufactured in combination with several materials such
as E.P. co-polymers and broad seal range polymers. This grade of BOPP is
the most economic and widely used film.
Opaque, Heat sealable film: Generally, opaque films are white
pigmented to act as a light barrier. The opacity of the film can be upto 80
to 90%, thus preventing the product from rancidity which is caused due
to the exposure of UV light. This grade of film is usually used in the
packing of biscuits, wafers, potato wafers, cough lozenges etc.
Pearlised BOPP: Apart from being opaque, this film can also provide a
shiny, eye catching, pearl appeal. Further its low density enables the
convertor to pack more products per quantity of film. Due to these two
properties, the pearlised film is mainly used to pack confectionery.
Metalized, Heat sealable film: Metallization is the process of
depositing a thin layer of aluminium over the film under vacuum. The
deposition of aluminium drastically improves the light, moisture vapor and
oxygen barrier of metalized film. Further it eliminates the problem of pin
holes, poor flex resistance which is often encountered in bare aluminium
foil. An optical density of about 2.0 is maintained to achieve better barrier
properties. This film is either available alone or as a laminate with other
films and is commonly used in the packaging of cream biscuits, stuffed
biscuits, pan masala, supari and so on.

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The above diagram shows the consumption level in India of the different
types of BOPP films as discussed above.
Features and Applications of BOPP: Bopp film combines several good
qualities to make itself a very versatile and cost effective construction.
Some of the properties or good qualities of BOPP are as follows:
Yield: Compared to all other plastics, BOPP has the lowest specific
gravity and for the same weight and thickness it yields more area than
any other packaging film.
Tensile Strength: Tensile strength is a crucial parameter for certain
applications such as pressure sensitive tapes. BOPP films have higher
tensile strengths compared to other films. The outstanding feature of
BOPP is its unique combination of strength with economy.
Moisture absorbing capacity: BOPP has the lowest absorption rate.
This very factor underlines its importance as a superior packaging
material in providing protection to the packed contents. This property is
also very useful and helpful in applications such as print laminations, tea
chest linings to pack water sensitive products.
Moisture vapor transmission rate (MVTR): BOPP has low MVTR
which enables the ability to protect packaged food products from the
accumulation of moisture which in turn increases shelf life of the
products. Therefore this property of the BOPP film is highly suitable for
the packaging of biscuits, snack foods and confectionery.

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Tear Strength: BOPP by far has the best tear strength compared to all
other films. This property signifies the stress it can take before snapping.
BOPP has very high tear initiation strength. Low tear propagation of BOPP
can also be used as an advantage by providing notches to a sealed pack
to enable the consumer to tear open the pack with ease.
BOPP films have outstanding optics and gloss/transparency which is
among the best compared to any other material.
BOPP films have good barriers to flavors and aromas especially at the
concentration level which is usually encountered in packaging products.
BOPP films are produced by melt extrusions at very high temperatures
and therefore are totally sterile when produced. Furthermore the surface
does not promote any microbial growth and hence is very convenient for
food packaging, aseptic packaging and retortable packaging.
BOPP films are eminently suitable for the purpose of conversion. They
are highly amendable to all operations like printing, coating, lamination,
and metallization and pouching.
BOPP films can be pearlised or cavitated. This gives the films a unique
pearlescent appearance which makes for excellent aesthetics. These films
can also hide the fats present in chocolates and high fat biscuits which
tend to leave an oily satin when in contact with other flexible packaging
film.
Some of the other special properties of BOPP are:

BOPP films have excellent properties of printability at high speeds.

BOPP films have good ink adhesion capability.

BOPP films have outstanding machinability. I.e. they do not stick to


the crimp heat seal jaws.

Good antistatic / Low static charge.

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BOPPs can be sealed at low temperatures.

The above diagram shows a comparison between BOPP and other Poly
Ethylenes namely CPP and LDPE.
The typical applications of BOPP are:
Plain BOPP film:

Industrial tapes (25-40 mic): Such as Pressure sensitive tapes.

Lamination (10-20 mic): BOPP films are widely used as a laminate


on book covers, brochures, catalogues, shopping bags, carton
boxes, cosmetic
boxes, restaurant menus, film to film laminate.

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Food packing (20-40 mic): BOPP in food packaging is basically used


for making printed laminated pouches and Metalized pouches to
store and preserve food.

Some of the other areas where plain film BOPP is used are in Tea chest
lining,

flower

over-wrapping,

textiles,

cable

over-wrappings,

photo

albums, release film, biscuit inner-wraps, envelope windows, tear tapes


and stationery.
Co-Extruded BOPP film:
Over wrapping (18-23 mic)

ver wrapping: Co Extruded BOPP films are used as an over


wrapper inCigarette cartons, audio/video cassette boxes, blade
boxes, toffees and candies.

Co Extruded BOPP films are also used for various general packaging
purposes such as in the packing of snack food, bakery products,
cosmetics, 2 minute noodles, textiles, bread and also as twist
wraps. A special grade of BOPP films known as the Super Seal BOPP
is used for the packaging of food grain and sugar.

TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES

The above diagram is a graphical representation of the consumption of


BOPP for the packaging of different products.

Market Outlook
The market for adhesives and sealants is being driven a rising trend in
various end user segments to use eco-friendly or green adhesives and
sealants or those with low VOC (volatile organic compound). Further,
technological advancement in production capabilities and enhancing
properties of adhesives and sealants will be fuelling the growth. The everincreasing need for high standard performance across all modern
applications is driving the growth of adhesives and sealants. This also
results in the development of newer and improved application and
performance properties. Adhesive and sealant systems that are fast, easy,
and low cost are in demand. The major hurdle, which is currently
inhibiting the growth of the market, is volatility in the prices of the raw
material for adhesives and sealants.
The demand drivers
The major users of adhesives are the packaging, automotive, construction
(housing, commercial buildings and organized retail) and furniture
(plywood, veneers and laminates) industries.
Plywood veneers and laminates: A big chunk of adhesives produced is
consumed by plywood, veneers and laminates sector. Indian plywood and
veneers industry is as big as Rs 80 billion and the laminate industry is
almost Rs 30 billion. The industry is growing at a rapid pace of 10 to 20
per cent per annum. Approximately 600 units are operating in the
country, of which the unorganized plywood sector comprises 80 per cent
and laminates around 50 per cent. Traditionally, most Indians preferred

TRENDS INDUSTRIES, VIJAYAWADA

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furniture made by local carpenters. However, with the increase in
disposable income of the urban middle class, the demand for the classy
custom-made branded furniture is on the rise. In fact, according to a
recent study, households with annual earnings upwards of Rs 10 lakh are
expected to grow from 0.8 million in 2002 to3.8 million in 2010. Indias
disposable income is poised to grow at 50 per cent from US $203 billion
to US$ 322 billion in the next three years. This would give a boost to the
plywood, veneers and laminates which in turn will further prop up the
adhesives industry.
Packaging: This is another industry that determines the demand of
adhesives. Adhesives are required for making containers and flexible
packaging. While this industry uses many types of adhesives, hot-melt
products are much in demand as they are particularly suitable for
modern, high-speed processes. Global packaging industry is valued at
around US 424 billion. Western Europe and North America are the largest
packaging markets, accounting cumulatively for 58 per cent of the global
industry. The size of the Indian packaging industry is estimated around
USD 14billion. The market is growing at the rate of more than 15 per cent
annually. Till now, Indias per capita packaging consumption was less than
$15. The global average in comparison was US$100, nearly a seventh.
However, the scenario is expected to change with the growth of the Indian
economy. As GDP grows to 7.5 per cent, the packaging industry, too, is
expected to double its growth to around 25 per cent
Housing: New applications in construction represent huge potential
markets. Floor systems can be adhesively bonded to support joints,
adding increased strength and rigidity. Interior wallboard and paneling
can be adhered to studs, providing wall surfaces free from blemishes
caused by nail or screw heads. Structural sealants can be used to hold
curtain wall panels and insulating glass units in place, sometimes without

TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES


accompanying support from mechanical fasteners. Research indicates an
increased demand for permanent, non-slum houses across India driven
primarily by the growth in population, urbanization and income. India is
the worlds fourth largest economy in terms of purchasing power parity.
According to estimates, the Indian middle class will spend an additional
USD 420 billion during the next four years. With growing aspirations, the
demand for houses is expected to remain robust. An increasing demand
for housing has led to a growing market for construction paints and
chemicals such as waterproofing material; repair materials namely crack
filling, rust remover. That will further give a boost to the adhesive
industry.
Commercial Buildings and Organized Retail: About 80 per cent of the
demand for office space is driven by IT/ITes sectors. India has over 3,000
IT service providers. The IT industry has grown by 21-24 per cent in
2007-08 and it is further expected that the industry (IT/ITes) is likely to
grow with the same pace to touch US $50 billion by 2008-09. The total
demand for commercial buildings is expected to increase to 500 million
square feet over the next decade.
Organised retail segment is also growing at a rapid pace, increasing its
share from 4 per cent of total retail sales to 5 per cent. This has increased
the demand for retail space. Mall space, for instance, has increased from
meager 1 million square feet in 2002 to 40 million square feet already. It
is expected to touch 200 million square feet by 2010. Estimates suggest
that organized retail segment will account for 12-15 per cent of total retail
sales by 2011. Growing office spaces and organized retail will lead to an
increased demand for adhesives and sealants and construction paint and
chemicals.

TRENDS INDUSTRIES, VIJAYAWADA

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Automotive Industry: The automotive market also offers significant
potential for new opportunities. Adhesives are already used for interior
applications such as bonding decorative elements and carpeting, and
sealing doors and windows and for exterior applications including vinyl
roofs and side moldings. Increased use of polymer composites will lead to
increased adhesive consumption. Even in conventional metal construction,
adhesive usage is expected to. The aerospace industry is also using
increasing amounts of adhesives and sealants for essentially the same
reasons as the automotive industry.
Growth in the sectors like Hospitals (the size of Indian private health care
sector is expected to double from the current figure of Rs 690 billion to Rs
1,560 bn by 2012), hotels (over 1,50,000 new hotel rooms to be added in
next five years), footwear (domestic market growth estimated to increase
from 1.5 billion pairs in 2000 to an estimated 2.3 billion pairs in 2010),
will also give a further boost to the sector.

TRENDS INDUSTRIES, VIJAYAWADA

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3. MANUFACTURING PROCESS OF ADHESIVE TAPES


The flat piece of easily portable and multi-layered adhesive tape is formed
by compressing the adhesive tape roll having circular shape or other
shapes. The adhesive tape roll is compressed and cohered during the
compressing step. A stiff interfacial layer, for example, having adhesion by
adhering two innermost adhesive surfaces, by providing a stronger
adhesion material, by inserting a stiff and solid material, or a stiff and
solid material coated with a strong adhesion material, is applied to the
symmetry plane of the adhesive tape during the compressing step. The
preferential material of the high adhesion material is a cyanoacrylate
adhesive or an epoxy adhesive.
Manufacturing process of BOPP: The basic raw material used for the
manufacturing of BOPP film is Polypropylene resin. Biaxial orientation is a
process in which a continuous cast film is heated to bring it to a
stretchable temperature and thereafter it is stretched in machine and
then in transverse direction. Biaxial orientation of polypropylene (BOPP)
film is done by two methods

Tenter frame process and


Double bubble process

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Tenter Frame Process: Tenter frame process is a very expensive
way of processing BOPP film. However it has become popular due to
higher production rate with very thin and wide width film. (Fig. 1)

Extruders used in Tenter frame process: Extruders with a


diameter up to 150 to 200 mm and screws having L/D of 26:1 to
30:1 are more popular.

Dies used in Tenter frame process: Here 600 to 1500 mm wide


coat hanger type of dies are used.

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Casting & Quenching: The molten polymer extruded from the die
is placed against a chill roll or multiple chill rolls. The most popular
being casting onto a chill roll partially submerged in a water bath.
The chill roll and water bath temperatures are generally 20 to 25C.
Usually, these chill rolls are 1000 to 2000 mm in diameter and
approximately 1000 to 1500 mm wide. The surface of the chill roll
must be very smooth; pitting or irregularities on the surface of the
roller will influence the film quality. An air knife is used to force
proper contact of molten polymer against the casting roll. The
cooled web proceeds towards the machine direction orientation
section.

Machine Direction Orientation (MDO): The base sheet is


alternatively heated by passing it over the heated rollers (145 150C)

to

achieve

uniform

heating

of

web

throughout

its

thickness. These rollers are usually smaller in diameter (450 to


600mm) compared to the casting drums (chilled rolls). When the
film reaches the necessary stretching temperature, it is passed over
a series of stretching rolls which are usually arranged in pairs. Each
pair has a rubber nip roll to prevent slipping of the web while
stretching. These first set of nip rollers are run at a speed similar to
preheat rollers. The next set of rollers is operated at higher speeds
than the first set of nip rollers. Usually the stretch ratio is kept
between 4:1 and 6:1. From the stretching rollers, the film is passed
on to a series of annealing rollers, which are heated to a
temperature, adequate to prevent shrinkage in the machine
direction (MD) of the web.

Transverse Direction Orientation (TDO): From the machine


direction orienter, the film is guided on to the chain, containing clips
which close on to the film. A rail guides the chain with clips to

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PROJECT REPORT - ADHESIVES


preheating section, where the film is heated with hot air at 160C,
slightly below the melting point of polypropylene.

As the film leaves the preheat section of the oven, the chain diverges
quite rapidly to a Ratio of 8:1 to 10:1. The film is then passed on to
annealing oven where it is maintained at 155C to reduce the shrinkage
of the film. Usually the tenter frame run at line speeds of 200 to 300
meters/min.

Winding: Edges of the film remain thick, as they are in the clips
while the film is being stretched. These edges are then trimmed off
as the film leaves the tenter frame. The wide film is slit into the
required width by rotating knives and wound on to separate
winders.

Double Bubble Process: The equipment for this process is small


compared to that of tenter frame process. It is difficult to produce thin

TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES


film in double bubble process. The output in term of quantity and width of
the film is also very low compared to that in tenter frame.

Extruders used in Double Film Process: Generally 50 mm to 75


mm extruders are used

Dies: Circular dies of 150 to 200 mm diameters are more popular

Quenching: The extruded tube from the die is directly taken into
the quenching bath (20-25C) collapsed between the nip rollers
located at the bottom of the quench bath. The film is then taken up

TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES


to second set of nip rollers via a drying unit. The water is stripped
in the drying unit.

Preheating: The tube in its flattened state is heated (at 150 to


160C) either by IR heaters or hot air. The heated tube is inflated
to its new dimensions, which is usually 5 to 6 times its original
diameter. With the third set of nip rollers, the film is stretched in
the machine direction at the ratio of 5:1 to 6:1.

A set of cooling rings are used to cool the inflated bubble prior to being
collapsed. The collapsed tube is then slit on both the edges and the web is
then separated before winding.
However, the Tenter process is the most widely practiced and fast growing
method for producing BOPP films.
Different conversions that can be done using BOPP: A majority of
BOPP films have to converted and it is estimated that over 70% of all
BOPP films used in the developed markets have to undergo a conversion
process. Therefore BOPP films are specifically tailored to meet the end use
requirement. The different conversion operations associated with BOPP
films are mainly the following:
Printing: BOPP films can be both surface printed as well as reverse
printed depending on either the ultimate structure or the size of the
printing run. Surface printed BOPP monoweb films are the most cost
efficient packaging and due to this a large majority of BOPP films used in
the European market are surface printed. However the requirement in
India and USA is for a much higher quality of reproduction and therefore
the industry standards calls for reverse printing even though this process
is more expensive. The printing processes used for BOPP films are usually
Rotogravure and Flexography.

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Lamination: BOPP films are quite often laminated either to themselves
(for reverse printed structures), metalized BOPPs or to other substrates
like LDPE, paper and board, aluminium foil etc. The lamination processes
used most commonly are dry laminations and extruded laminations or
coatings. However extruded lamination coatings are economical only for
large production lines. Lamination of BOPP films are well established in
India and various kinds of specialty adhesives are available for specific
applications.
Metalizing: Metalizing of BOPP films are done using a vacuum
decomposition process. The metal deposited is usually high purity
aluminium. The production of a matallizable grade of BOPP film is highly
specialized and requires a very special film formulation and surface
treatment. It is also important to ensure that there is sufficient good
adhesion of metal to the film surface without resorting to a priming
operation which makes the film very expensive.
Coating: Coatings on BOPP films can be carried out on all kinds of
conventional coating equipment and the process depends on the actual
coating being applied. The most popularly used coatings on BOPP films
are acrylics and PVDC. Acrylics impart gloss and stiffness and provide a
wider heat seal range. PVDC imparts gas barriers, gloss and also heat
sealability when used on a non sealable BOPP film. Coatings are applied
on BOPP films mainly for the following reasons:

To obtain a wider heatseal range.

To improve gloss.

To impart a stiffer feel.

To provide release- this is particularly important or cold seal


applications and for certain types of adhesive tapes.

TRENDS INDUSTRIES, VIJAYAWADA

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Areas requiring attention while using BOPP films: There are some
areas that need to be specially looked into while using BOPP films. These
cannot be called problem areas but careful attention to these will result in
getting optimum value and output from the BOPP films. Some of these
areas are:
Treatment: All BOPP films that have to be laminated to other
substrates, converted by printing, metalizing, coating etc need to be
surface treated with corona discharge on the surface where such an
operation needs to be carried out. The normal recommended level of
treatment is 40 to 42 dynes.
Heatsealability: Most of the conventional BOPP films have an effective
heatseal range of around 120 to 130 degrees C. it is therefore very
important to control the temperature on the heat seal apparatus as
excess temperature will result in the shrinkage of the film. An important
function of heat sealability is hot tack strength i.e. the ability of the heat
seal

process

to

bond

together

at

higher

temperatures

which

is

encountered during the heat seal process. This is particularly important


for Vertical Form Fill Seal machine operations where often the seal has to
carry the weight of the product until it cools and sets.
Static: BOPP films have the tendency to dis-charge static forces on the
surface particularly when running over machine parts during conversion
or packaging operations. These static charges tend to cause the film to
stick to machine parts and causes machine feeding problems. Even
though it is possible to incorporate a certain amount of anti-static
additives in the film, it is important for all the equipments running BOPP
films to be ideally equipped with anti static devices for removing or
neutralizing the charges developed.

TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES


Stiffness: This is one of the major concerns in the packaging
operation. Usually the problems if any would involve modifications in the
feeding system for the film. The best solution to avoid this problem of
stiffness is to slightly increase the thickness of the film.
Dead fold: BOPP films have very low dead fold properties because the
PP resins has a property that always tends to make it go back to its
original configuration. This is a very important consideration which needs
to be taken into account while designing packaging machines for BOPP
films. E.g. twist wrapping machines. Extensive research is being carried
out into modifying the resin formulation so as to impart the dead fold
property of the BOPP films. However this is sure to take some time.
Cutting: It is important for the knives used to cut the BOPP films to be
kept sharp at all times. This means using the right material and cutting
angles for the knives. It is advisable that the knives used for cutting the
BOPP films be kept and used solely for the purpose of BOPP film cutting
as performing other jobs may result in blunting of the blades or knives.
Slip: It is important to get the right slip on the surface of the BOPP
films. Usually the film has to be tailored for the right amount of slip for
specific applications. There would be no problem if the film manufacturer
is advised before hand about the end use condition so that the film
formulation can be suitably tailored.

PVC Insulation Tape


PVC log rolls will be purchased from outside and will be cut in to
appropriate sizes as per the market order on PVC slitting machine.
The small rolls will be packed in small boxes or rolled in sleeks using
packing machine and Core cutting machine. The small rolls/ boxes
will be packed in big cartons.

TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES

4. PROCESS FLOW DIAGRAM


The process of manufacturing Adhesive plastic tapes can be seen in the
following process flow diagram:

Polythin film, glue have to be purchased.


On the coating machine, glue will be coated on the film. The gum
coated film will be passed through the driers.
The big log rolls will be cut in to appropriate sizes as per the market
order on slitting machine.

TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES

The small rolls will be packed in small boxes or rolled in sleeks using
packing machine and Core cutting machine. The small rolls/ boxes
will be packed in big cartons.
If customer wants his company logo has to be printed on the tapes ,
Before coating the gum, the film will be passed through printing
machine.

5. MACHINERY
Coating machine. Channel Length 80mt Coating rate 70mt/hr. Cost: Rs
22Lacks.
BOPP Slitting machine and Core cutting machine. Automatic. Cost:
Rs 8Lacks.
Packing machine Cost: Rs 1.5Lacks.
PVC slitting machine. Automatic. Cost: Rs 5Lacks.
Printing machine. (Single colour )Cost: Rs 6Lacks.
Total machinery cost Rs 42 Lacks.

TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES

6. ABOUT THE PROMOTERS


promoter(s) : P.V.S.SOMA SEKHAR.
(K.RAJANI KUMARI, wife, P.SRI ASHRITA daughter) if needed.
Bio-data : P.V.S.SOMA SEKHAR.:
Date of Birth June 2nd 1963. Age: 51yrs
Education : B.E (chemical eng.,) Andhra University 1983
Experience: Working in Sanghi Polymers since 1989 on words at different
levels.

Presently working as Sr.Gen Manager-Production& markrting.

Social category : O.C

TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES


Mr.Soma sekher was working partnor in J.B polymers registered at
Registrar of companies, RR Dt., Hyderabad,during 2011-2013. (shell i
mention company reg., nos?)
Soma sekhar is currently running business (trading of tapes) under the
name of Trends enterprises, at Hyderabad having many clients from A.P.
So planning to establish a production unit surrounding Vijayawada.
Bio-data (K.RAJANI KUMARI, wife:
Date of Birth June 5nd 1965. . Age: 49yrs
Education : M.Sc , Ph.D, Osmania University 1991
Experience: Working in , Osmania University 1994 on words at different
levels.

Presently working as Assistant Professor of Physics .

Bio-data : P.S.ASHRITA.
Date of Birth Aug15th 1991. . Age: 23yrs
Education : B.E (civil eng.,) JNTU 2012,
M.S (civil) USA doing..

7. BASIS AND PRESUMPTION OF THE PROJECT :


i. The process of manufacture is on the basis of single shift of eight hours
per day with three hundred working days in a year.
ii. Labor and wages mentioned in this report are as per prevailing local
rates.
iii. Interest rate at 13.5% considered in the project
iv. The Promoter contribution will be 35% of the total project cost.
v. Subsidy and other concessions may be applicable as per the industrial
policy of the government.
TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES


vi. Annual capacity:60,000 cartons/year (BOPP)+ 10,000 cartons/year
(PVC)
8. INSPECTION AND QUALITY CONTROL :
The firm will strictly adhere to the Indian BIS standards in the process of
manufacturing BOPP and PVC Tapes from procuring high quality raw
materials to modern methods of packaging, to the satisfaction of the
customers.
9. PRODUCTION CAPACITY PER ANNUM :
Quantity: Annual capacity:60,000 cartons/year (BOPP)+ 10,000
cartons/year (PVC)
10. POLLUTION CONTROL
The technology adopted for making Cello Tapes is eco-friendly. Hence
there is no chance of any pollution out of this industry.
11. ELECTRICAL LOAD
Total electrical load will be 45 HP.
12. FINANCIAL ASPECTS
12.1. FIXED CAPITAL :
(a) Land & Building :
SI.

Description

Amount (Rs.)

No.
1
2

Land & Land Development (2000 m2)


Building (6000 sft)

5,00,000
60,00,000

(b) Machinery and Equipment :


SI.

Description

No.
TRENDS INDUSTRIES, VIJAYAWADA

Qty.

Amount (Rs.)

PROJECT REPORT - ADHESIVES


1

Coating machine. Channel Length

22,00,000

80mt Coating rate 70mt/hr. .


BOPP Slitting machine and Core

8,00,000

cutting machine. Automatic. .


Packing machine .
PVC slitting machine. Automatic. .
Printing machine. (Single colour ).
Miscellaneous
TOTAL

1,50,000
5,00,000
6,00,000
7,50,000
50,00,000

3
4
5
6

13. TOTAL RECURRING EXPENDITURE (PER MONTH ):


(A)

Raw Material Per Month: (25 working days in a month, 80%

CU)
SI.
No.
1
2
3
4
5
6
7

Description
Film
Gum
Cartons
Core
Sleeks + Pigment etc
Diesel
PVC Roll

Qty.

Rate

Amount

1 T/day
1.5 T/day
160/day
700/day

(Rs.)
200/kg
100/kg
40/no.
30/no.

100/day

300/rol

(Rs.)
4000000
3000000
128000
420000
30000
140000
600000

l
TOTAL

83,18,000

(b) Salaries &Wages Per Month :


SI.

Description

Salar

Amount

No.

(Rs.)

(Rs.)
15000

Operators

No.

+
20000
TRENDS INDUSTRIES, VIJAYAWADA

35,000

PROJECT REPORT - ADHESIVES


2
3

Male workers
Female workers
TOTAL

3
2

7000
4500

21,000
9,000
65,000

C) Utilities Per Month :


SI.

Description

Amount (Rs.)

No.
1

Power 45 HP

45,000

TOTAL

45,000

(D) Other Expenses Per Month :


SI.

Description

Amount (Rs.)

No.
1

Rent

Marketing expenses & Advertisement

Postage and stationery

250

Repairs and maintenance

500

Traveling and transportation

Insurance

Telephone &Mobile

Packing Materials

5000

1200
300
2000
750

TOTAL

10000

TOTAL RECURRING EXPENDITURE PER MONTH:


A+B+C+D=

Rs.

84,38,000/-

Recurring Expenditure for three months =

Rs.

253,14,000/-

14. WORKING CAPITAL ASSESSMENT:


TRENDS INDUSTRIES, VIJAYAWADA

PROJECT REPORT - ADHESIVES


SI.

Description

Amount (Rs. Lakh)

No.

(@80% CU)

Raw Material + Utilities + Expenses

87.49

(Required for one month)


Work in progress

(Required for 3 days)


Finished Good

(Required for 15 days)


Bill receivable

101.33

(Required for 30 days )


Less: Sundry Creditors (30 days)

(84.36)

TOTAL

157.64

8.87
44.30

15. FINANCIAL ASPECTS


15. a. Total Project Cost
Description

Cost, Rs. Lakhs

Land & Land Development

10.00

Civil and Structural works

60.00

Plant & Machinery

50.00

Misc Fixed Assets

10.00

Provision for Contingencies (5% on P&M & Civil)

5.00

Prelim. & Pre-Op Expenses

10.00

Interest During Construction (IDC)

8.10

Margin Money for WC

29.58
Total

182.68

15.b. Means of Finance

Description
1. Equity from Promoters
2. Capital Subsidy

TRENDS INDUSTRIES, VIJAYAWADA

% Amount , Rs. Lakhs


34.31%

62.68

0.00%

0.00

PROJECT REPORT - ADHESIVES

3. Term Loan

65.69%
Total

120.00
182.68

15.c. Cost of Production Per Annum :


SI. No.

Description

Amount (Rs. Lakh)

Total recurring cost

Interest on Bank Loan @13.5%

Total Buildings @10%

7.01

Total Depreciation on Machinery@15%

8.76

Total Depreciation on furniture and

1.75

1012.56
16.20

other equipments @ 15%


TOTAL

1046.28

16. TURN OVER PER ANNUM


By sale of 160 cartons per day (BOPP tape) at market rate of Rs. 2200/per carton and 100 cartons per day (PVC Insulation Tapes) at market rate
of Rs. 2000/- per carton:
Total Turnover Per Annum @80% CU: Rs. 1216.00 Lakh
17. PROFIT PER ANNUM
Profit = Turnover - Cost of Production
= 1216.00 - 1046.28 (Rs. Lakhs)
= Rs. 169.72 Lakh
18. BREAK-EVEN ANALYSIS
(1) Fixed expenditure per annum: Rs. lakh
Interest on Loan::

18.20

Total Depreciation::

17.52

40% of salary and wages::


40% of other expenses & Utilities::
TRENDS INDUSTRIES, VIJAYAWADA

3.12
26.93

PROJECT REPORT - ADHESIVES


TOTAL:

65.57

(2) Profit per annum

= Rs. 169.72-

Break Even Point =

Fixed Cost/annum * 100


Fixed cost/annum + Profit/annum
=

65.57X 100
65.57 + 169.72

27.87%

19. RETURN ON INVESTMENT


Rate of Return =

Profit/annum * 100
Total Capital investment
=

169.72 X 100
182.68

93.00%

20. AREA REQUIREMENT


Sl. No. Description
1
2
3
4
5
6
7
8
9
10

Machine area
Storage for raw material
Storage for finished goods
Office
Electrical cum DG Room
Water tank
Security
Parking
Open area
Greenery
Total

TRENDS INDUSTRIES, VIJAYAWADA

Length,

Width,

Area,

M
20
15
15
10
5
5
4

M
30
20
20
10
10
5
5

SQM
600
300
300
100
50
25
20
105
200
300
2000

PROJECT REPORT - ADHESIVES


About 2000 square meters is needed for the Adhesive Tapes of 60,000
cartons per annum (BOPP) and 10000 cartons per annum (PVC Insulation
Tapes) manufacturing capacity.

IMPLEMENTATION SCHEDULE:
1. Preparation of retort and regn. With D.I.C. 1 month
2. Availability of finance 3 months
3. Installation of machinery 2 months
4. Procurement of raw material and trial run 2 months
8 months

Conclusion: BOPP is a growing market. Some markets in Europe are


under pressure to consolidate and other markets like India and China still
see new players joining the game.

TRENDS INDUSTRIES, VIJAYAWADA

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