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Business Opportunity: PET Sheets

PET sheets provide a convenient way of packaging product across a number of industries – consumer products, pharmaceuticals, food & beverages, etc. PET sheets are increasingly getting popular as a preferred option for packaging of food and pharma products, due to their visual appeal, their ability to keep the product safe from moisture and easy thermoform-ability.

The table below depicts various types and forms of packaging made out of PET sheets:

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Types of PET Sheets

Various PET sheets, based on their properties, are used in different applications. For example, CPET which has a very high working heat resistance (can withstand a temperature of up to 220 degree Celsius for more than 25 minutes) is used for microwaveable containers. The table below depicts the application of various types of PET Sheets.

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Market

PET sheet market is currently small, comprising just 1.5% of PET resin consumption in India. However, this market is rapidly growing and the resin consumed by PET sheet industry has nearly doubled from 6,400 tonnes/year in FY-14 to 11,150 tonnes/ year[1] in the FY 17.

Presently most of the PET sheet is manufactured by companies that make different kinds of packaging material. Two of the Hyderabad based players include Nirmala Pet A Pack Pvt Ltd and Spear Pet Pvt Ltd.

Process &Technology

Process
The process of PET sheet making broadly involves: Raw material pre-treatment, Extrusion and Drying & Winding/ Cutting the finished sheet

Fig1: Process flow

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Sometimes, the final product requires one more layer of PET or coatings, in such cases a co extruder will be required.

Single Versus Double Screw Extrusion

Screw is the most important part of any extruder. The screw is divided into three equal zones; feeding, transition, and metering. The primary functions of the three zones are:

  • Feed – taking in the resins and feeding it forward in the screw
  • Transition – compressing and melting the resin
  • Metering/ Pumping- homogenizing/ blending the melted resins and pumping out through the extruder at a constant rate.

There are mainly two types of extruders; Single screw and Twin screw.The single screw extruders typically cost less than twin screw, however they offer less operational flexibility.

Budget

The overall budget for starting a PET sheet extrusion unit with a minimum viable capacity i.e. 300 KG/hr would be Rs. 5 Crores. The machinery cost of twin screw and single screw alone would approximately be Rs. 3 Crores and Rs. 2 Crores respectively[2].

How Can We Help You?

If you are interested in setting up a PET sheet manufacturing unit, we can assist you in starting a processing unit. Our services include

  1. Market & Financial viability assessment
  2. Technical consultancy
  3. Detailed project report preparation
  4. Support in project execution

Reach Us

Call us @ 800 888 4932,

Write to us- bchhatre@finetrain.com

Visit us- www.finetrain.com

 

[1]Source: PRESENTATION OF RELIANCE INDUSTRIES LTD. – March1,2016

 

[2] Source: Based on discussion with extrusion machinery suppliers

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ginger-powder

Business Opportunity in Ginger Processing

Ginger, one of the most important spice crops in India, is known for its aromatic and medicinal properties. Ginger is used as a flavouring agent in many food items.  Ginger powder and oil are extensively used in herbal medicines.

India is the largest ginger producer in the world, accounting for nearly 40 per cent of world’s production. In India, Assam is the largest cultivator, followed by Gujarat and Karnataka.  In Telangana, ginger grows in Medak district. India produces 3.85 Lakh tonnes[1] of ginger per annum and most of which is domestically consumed.

Pic 1: State wise breakup for ginger production in India 
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NOTE: Other states include Arunachal Pradesh, Meghalaya, Sikkim, Orissa, Mizoram, West Bengal, Uttaranchal, Kerala, Andhra Pradesh and Telangana.

Ginger Processing Technology

Ginger can be processed into three products; ginger powder, paste and ginger oil. The ginger oil manufacturing is typically not taken up by small businesses as it requires large capital investment towards oil distillation and oleoresin extraction plant. The ginger processing machinery is explained below.

Pic 2: Ginger processing Machinery 

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Key Players in Telangana

Ginger paste and powder: There are a number of manufacturers including national players such as Priya, Aachi, Mother’s, Smith & Jones, Hommade, and Eastern as well as local manufacturers. Some of the local brands include Capital, Red Boss, Mega Rose, Mayuri, MSR, Surya etc. These products are available in packing sizes of 50 grams to 1 kg.

Ginger oil: There are not many local players. Ginger oil manufacturers are largely based in Kerala. 

Budget

The capital requirements for ginger processing plants is discussed below.

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How Can We Help

We can help you start a “Ginger Processing Unit” through a number services including business viability assessment, market landscaping, technical consultation and project execution support.

Reach Us

Call us @ 800 888 4932,

Write to us- bchhatre@finetrain.com

Visit us- www.finetrain.com

[1] http://agriexchange.apeda.gov.in/Market%20Profile/one/GINGER.aspx

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Business Opportunity: Organic Fertilizers

Organic fertilizer is a mixture of decayed organic matter. It is usually made by gathering plant material such as leaves, grass clippings, and vegetable peels and animal waste into a pile or bin and letting it decompose with the help of earthworms, fungi or bacteria. Organic compost contains essential macro and micro nutrients for plants, often absent in synthetic fertilizers. Compost releases nutrients slowly over the cultivation period, which helps plants soak those nutrients better and make a healthy food in our plates.

The demand for organic fertilizers is rising in India as well as internationally due to increasing awareness of organic farming and sustainable agricultural practices. The market size for organic fertilizers in India stands at 2547 lakh metric tonnes as of FY 2015-16.[1]

The major consumers of organic fertilizers are horticulture farmers, farmers of export oriented crops, farmers of crops such as ginger and turmeric and urban households that use compost for their home gardens.

What are different types of organic Fertilizers?

As per the Fertiliser Control order, 1985, the organic fertilisers can be divided into three categories:

Vermin compost: Most popular form of organic fertiliser, made by decomposing the organic material with the help of Vermi, FCO has specified guideline in terms of nutrient percentage, moisture levels etc

City compost: The compost made from city waste, including household waste, municipal waste etc.

Organic manure: Compost made from animal and plant waste (including the vermi and city compost). Manure typically has higher organic content vis a vis other organic fertilisers.

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What is the market?

The market has two segments:

Horticulture farmers: Farmers growing fruits and vegetable crops use compost to reduce chemicals residue from their crops. Further, these crops are relatively more profitable vis a vis traditional field crops such as paddy, cotton and hence can afford to purchase organic compost. This segment is dominated by large fertiliser companies who have the dealer network and sales force required to reach the farmers. Below are the large players in Andhra Pradesh and Telangana.

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Nurseries: This segment has a lot of small and medium enterprises. Here the product packaging is important. Some of the players in this segment also sell only through online network.

How to get started with manufacturing of organic compost?

One needs to have a detailed understanding of the processes involved in manufacturing, marketing and selling the compost.

It’s not a very capital intensive business and hence capital requirements are not very large. One does not need many plants and equipment’s except for pits /wilgrows to dump the waste, shredder and a palletising machine. The main cost of establishing will be land and labour. A unit of capacity to process 20-30 tonnes of waste per day can be set up within a budget of INR 50 Lakhs.

The compost is also made as a by-product of a biogas plant. The biogas plant converts the organic waste into bio gas through anaerobic digestion and produces a slurry, which can be dried and used as compost.

Government incentives

There are a number of incentives available to manufacturers and farmers. It can broadly be categorized as incentives for farmers and incentives for entrepreneurs as given below.

Farmers are offered organic fertilizers at a subsidized cost

Entrepreneurs are offered incentives to set up compost manufacturing facility. For example, under National Program for organic farming, manufacturers of compost from vegetable waste are offered a subsidy of 33% of the cost of project.

Challenges
  • The market is still in its formative stage and awareness of the benefits of organic compost has just begun to spread across farmers and farmer groups.
  • Reliable Data on organic input market is not present.
  • Organic system of farming is far more expensive than doing farming using chemical fertilisers
  • The economics depend on the waste procurement cost, so those have to be tightly controlled

How can we help?

We can help you set up a compost manufacturing unit through a number of services including

  • Market viability assessment
  • Technical consultation and
  • Project execution support.

[1] Source: National Centre for Organic Farming

Reach us

Call us @ 800 888 4932,

Write to us- bchhatre@finetrain.com

Visit us- www.finetrain.com

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