PVC INSULATION TAPES

INTRODUCTION
For manufacturing Electrical insulation tapes cotton fabrics or PVC can be used.
Pressure sensitive PVC Tapes have become very popular as an electrical insulation
material. The major characteristics of insulation tapes are that they should be water
resistant, oil resistant and temperature resistant.
The pressure sensitive adhesives are composed of a rubbery type elastomer combined
with liquid or solid resin tackifier component. Sometimes, a mixture of resins can also be
used to obtain specific properties otherwise not obtainable by using the resins singlely.
The rheological properties of the adhesive can be altered by the addition of fillers. Anti-
oxidants are used to stabilize the adhesive against oxidation, and light and heat
degradation. Adhesives for electrical insulation and high temperature applications,
sometimes contain a small amount of a heat curing oil or soluble phenolic resin. In this
case, an alkaline filler or zinc resinate is used as a catalyst to promote the reaction
between the phenolic resin and rubber. The adhesives are cured by the application of
heat.
The films are generally coated with a very thin anchor coating called a primer, to
improve the bonding of the adhesive to backing.

MARKET
Plastics have become an important part of modern life and are used in different sectors
of applications like packaging, building materials, consumer products and much more.
Each year about 100 million tons of plastics are produced worldwide.

Demand for plastics in India reached about 4.3 million tons in the year 2001-02 and
would increase to about 8 million tons in the year 2006-07. Currently, however, the per
capita consumption of plastics in India is only about 3 kg compared to 30-40 kg in the
developed countries. The present market in India is of about Rs. 25,000 crore.

1
INSTALLED CAPACITY
Product Installed No of working Capacity per Capacity per
capacity hours per day day annum
per hour 300 days per
annum
PVC Insulation 275 8 2200 660000 Sq ft
Tape

PLANT AND MACHINERY

No. Description Qty Price
(Nos.) (Rs.)
1. One meter working width Adhesive Whole Unit 28,50,000
Coating Plant for PVC Tapes consisting of the following :
(i) Unwinder for Primary Web with tension control. 1
(ii) Rotogravure Printing unit 1
(iii) Drying Tunnel - 60 ft. length 1
(iv) Chilling Roll/Surface Support Roll 1
(v) Pneumatic/Hydraulic web aligner 1
(vi) Dancing Roller, Accumulator, Rewinder 1 each
(vii) A.C. & D.C. Motors, Control cabinets,
Air Blowers with Temperature Controllers etc.
2. Slicing M/c. complete with 2 HP Whole Unit 6,50,000
Motor, Starter & Circular Knives.
3. Attriator cum Emulsifier 200 Lit. " 1,25,000
capacity with 5 HP A.C. Motor.
4. 12" X 26" Three Roll Mass Grinding 2,75,000
M/c. with 15 HP Motor, Gear Box & Starter.
5. Testing Equipments 1,00,000
Total 40,00,000

2
MANAFACTURING PROCESS
The present project envisages production of PVC Self-adhesive Electric Insulation
Tapes from PVC film rolls procured from market. The manufacturing process essentially
consists of the following major operations.

1. Manufacture of the adhesive mass.

2. Application of primer and adhesive coating to the PVC film.
3. Drying of the adhesive coating at the required temperature.
4.Cutting the film rolls into tapes of required width.
5. The required length of the finished tapes are wound on cores and suitably
packed for despatch.

Typical compositions of Primer coat and Adhesive coat are as follows :

PRIMER COAT :
Ingredient Parts by Wt.
PVC Paste 60
Copolymer of Ethyl Acrylate 40
Methyl Methacrylate, and
Methacrylic acid
Titanium Dioxide 20
Dilute Acetic Acid 10

ADHESIVE COAT :
Ingredient Parts by Wt.
2-Ethyl Hexyl Acrylate 360
Acrylic Acid 6
Ethyl Acetate 120
Nonyl Phenol Ethelene 25
Ammonium Persulphate 1
Sodium Metabisulphate 2
Sodium Acetate 2
Water 500
3
 The films are often coated on the opposite side with a release agent to reduce the
adhesion of the adhesive to the backings of the next layer of tape when finished in roll
form.

RAW MATERIALS
For Sq. metres 660000
Qty-MTs Rate/MT Value Rs. Lakhs
PVC film-100 72.00 65000 46.80
Rubber based adhesive 36.00 50000 18.00
Core for winding 0.00 0 1.65
TOTAL 66.45
Packing materials 660000 0.50 3.30

LOCATION LAND AND BUILDING

Built up area-Sq.ft 2500
Rent p.m.-Rs per .5 per sq.ft 12500
Advance-10 months.Rs 125000

UTILITIES
Three phase- KW 54.00
Power charges Rs.lakhs p.a 12.31
Water-For process-Litres per day 2000
For human consumption-litres/day 200

MANPOWER
Nos Monthly wages Total
Supervisor 1 6000 6000
Skilled 2 5000 10000
Unskilled 6 3000 18000
Accounts Assistant 1 4000 4000

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 Sales Executive
Security
sub total
Add benefits
Total per month
TOTAL PER ANNUM-Rs. lakhs
SCHEDULE OF IMPLEMENTATION
After the financial arrangements are made the project can be implemented in 3 months
times.
COST OF PRODUCTION AND PROFITABILTY
Assumptions
Installed capacity
Capacity utilisation
Selling price
Raw materials
Packing materials
Power
Wages and salaries
Repairs and Maintenance
Depreciation
Selling general and
administrative expenses
Interest on Term loan
Interest on working capital
Income tax
1 5000 5000
2 2000 4000
38000
20% 7600
45600
5.47
6,60,000 Sq. Mtrs. of PVC Insulation Tapes per
annum
Year-1 -60%
Year -2 -70%
Year-3 onwards- 80%
Rs.19.00 per Sq. metre
As per the details given above
As per details given above
Rs.12.30lakh per annum at 100%
Rs. 5.47 lakhs with increase 5% every year.
Rs.0.60 lakh per annum
Written down value method -15 % on machinery
Rs.30000 per month
11% per annum
11 % per annum
33.66 % on profits
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MACHINERY SUPPLIERS:
1. M/s.Babubhai Ambalal, Division of Sarabhai Machinery, Shahibag House, Ist Floor
15, Walchand Hirachand Road, Ballard Estate, Mumbai - 400 038.
2. M/s.Goldman Automatics Pvt. Ltd, 75, Village Road, Bhandup, Mumbai - 400 078.
3. M/s.Hero Precision Machines Pvt. Ltd.,136, Arcot Road, Chennai - 600 093.
4. M/s. Micromeritics Engineers Pvt. Ltd., No. 298, K.S. Est Pantheon Road, Egmore
Chennai - 600 008. (Machinery for Rubber Adhesive Mfg.)
5. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai 600 018.
6. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari East
Mumbai 500 072.
7. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad382415,
8. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad121005.
9. Prasad Groups & Companies, Plot No. 14 16 GIDC Industrial Estate, Phase 1 Valva,
Ahmedabad 382445
10. HMT International Ltd, 52 HMT Bhavan, Bellary Road, Bangalore 560 032.

ADDRESSES OF RAW MATERIALS & OTHER CONSUMABLES SUPPLIERS

PVC FILM :

1. M/s. The Supreme Industries Ltd.,17/18, Shah Industrial Estate, Veera Desai Road
Andheri(West), Mumbai - 400 058.
2. M/s. Caprihans India Ltd., Block - D, Shivsagar Estate, Dr. Annie Besant Road Worli
Mumbai - 400 018.
3. M/s. Sun Poly Industry, 28-D, Kalathiappa Street, Choolai, Chennai - 600 112.
4. M/s. Amisha Vinyls Ltd., Ganesh Industrial Estate, Kachigam, Daman (U.T.).

CHEMICALS SUPPLIERS FOR ADHESIVE MANUFACTURING

1. M/s. R. K. Polymers, 196/5, Govindappa Naicken Street, Chennai - 600 001.
2. M/s. Jayashree Impex, 59-A, `Ragamalika' 1st Avenue, Ashok Nagar, Chennai - 600 083.

6
FINANCIAL ASPECTS

1. COST OF PROJECT

[Rs.lakhs]
Land & Building (Advance) 1.25
Plant & Machinery 40.00
Other Misc. assets 0.50
Pre-Operative expenses 1.50
Margin for WC 1.75
45.00

2. MEANS OF FINANCE

Capital 15.00
Term Loan 30.00
45.00
Term Loan is assumed at 75% of the Machinery value

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs.lakhs]
Years 1 2 3 4 5
Installed Capacity-Sq.metres 660000 660000 660000 660000 660000
Utilisation 60% 70% 80% 80% 80%
Production/Sales-Sq.mts 396000 462000 528000 528000 528000
Selling Price per Sq.mtrRs. 19
Sales Value (Rs.lakhs) 75.24 87.78 100.32 100.32 100.32

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Raw Materials 39.87 46.52 53.16 53.16 53.16
Packing Materials 1.98 2.31 2.64 2.64 2.64
Power 7.39 8.62 9.85 9.85 9.85
Wages & Salaries 5.47 5.75 6.04 6.34 6.66
Repairs & Maintenance 0.60 0.66 0.73 0.80 0.88
Depreciation 6.00 5.10 4.34 3.68 3.13
Cost of Production 61.31 68.96 76.76 76.47 76.32
Selling, Admin, & General exp 3.60 3.78 3.97 4.17 4.38
Interest on Term Loan 3.30 2.89 2.06 1.24 0.41
Interest on Working Capital 0.69 0.69 0.69 0.69 0.69
Total 68.90 76.32 83.48 82.57 81.80

Profit Before Tax 6.34 11.46 16.85 17.75 18.52

Provision for tax 2.13 3.86 5.67 5.97 6.23
Profit After Tax 4.21 7.60 11.18 11.78 12.29
Add: Depreciation 6.00 5.10 4.34 3.68 3.13
Cash Accruals 10.21 12.70 15.51 15.46 15.42
Repayment of Term loan 0.00 7.50 7.50 7.50 7.50

4. WORKING CAPITAL:

Months Values % Margin Bank

Consumptions Amount Finance
Raw Materials 0.50 1.66 25% 0.42 1.24
Consumables 2.00 0.33 25% 0.08 0.25
Finished goods 0.50 2.55 25% 0.64 1.91
Debtors 0.50 3.14 10% 0.31 2.83
Expenses 1.00 0.30 100% 0.30 0.00
7.98 1.75 6.23

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 5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax = 11.18 11%

Sales 100.3
2
Profit before Interest and Tax = 19.60 38%
Total Investment 51.23
Profit after Tax = 11.18 75%
Promoters Capital 15.00

6. BREAK EVEN LEVEL

Fixed Cost (FC):

[Rs. lakhs]
Wages & Salaries 6.04
Repairs & Maintenance 0.73
Depreciation 4.34
Admin. & General expenses 3.97
Interest on TL 2.06
17.14
Profit Before Tax (P) 16.85
BEL = FC x = 17.14 x 80 x 100
100
FC +P 33.98 100
40% of installed capacity