injuction molded

Business Opportunity: Injection Moulded Products

The injection moulding technology is used for mass production of plastic products. Plastic material, in the form of granules, is melted and injected under pressure to fill a mould to create different types of rigid shapes.

Injection moulding is a popular way of manufacturing both industrial as well as household products. The most common examples of injection moulded products include PET bottle caps, plastic containers, parts of washing machine, cooler and agricultural pipe fittings.

The table below enlists a number of products that can be made through injection moulding.

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Markets

The PET preforms and bottles/container segment is more crowded as compared to industrial/agri components. The quality specifications of industrial components are more stringent vis-a-vis household segment and therefore require more investment in machinery and experience in plastic technology.

The players in the injection moulding market can be divided into the following categories -
  1. Manufacturers who also market their products: For example, Plast-O-Pack India, Mumbai manufactures and markets various designer house hold products such as microwave containers, pencil boxes, fridge bottles, containers and corporate gift items.  Bangaru Irrigation systems, Telangana manufactures and markets the sprinklers and drips and other irrigation system components.
  2. Contract manufacturers: These players manufacture goods or rigid packaging material for others. In contract manufacturing, there are two models: A) complete job work price model, and B) conversion only price model.

Under the conversion price model, the clients provide the raw material (resins/pellets) and they are billed only for conversions of resins to products, thus protecting injection/blow moulding companies from price fluctuations of the raw material. The clients in such cases usually demand stringent quality standards. However, this consumer segment is difficult to enter for a new injection moulding company as the clients specifically look for imported machinery, in house testing facility and large operational capacity.

Some of the Hyderabad based contract manufacturers include Baba Group of companies (clientele includes Asian paints, Berger paints).  Innocorp Ltd. (clientele includes furniture brands such as Neelkamal and Polyset). Nano polymers (clientele includes Neelkamal, Wipro, HBL, Acme, Asian paints).

PROCESS & TECHNOLOGY

Figure 1: Process flowchart

injection molding process
Injection machine is the heart of the whole process, as it is responsible for turning resins into melted free-flowing liquid and injecting the same into mould cavities.  The capacity of the machine is measured in terms of the pressure it exerts to inject the melted material into the mould and it is measured in either Tonnes or Kilo-Newton. The capacity of the machine may also be referred to as “shot weight”. Basically, Shot weight/ Injection rate of any machine is the grams of the melted raw material injected to the mould at one shot of pressure. The popular injection moulding machinery suppliers in India include Windsor Machines Ltd., Ferromatik Milacron India Pvt. Ltd., Haitian Huayuan Machinery (India) Pvt Ltd, etc.

Moulds are the most critical part of the process, apart from the injection machine. Mould designs are critical for the shape and texture of the output and also for ascertaining the required injection rate and consequently the capacity of the machine.  Mould designs are typically mentioned in terms of cavities. As such, higher the cavity, higher the production speeds.

BUDGET

While   minimum budget to start an injection moulding unit would be more than Rs 3 Crores, including land, building, and working capital, the overall cost of plant would depend on the quality standards and complexity of the final product. The cost of an injection moulding unit has four components: injection moulding machine, blow moulding machine, auxiliary equipment and working capital. Moulds are the costliest part of the plant, more so because for each different shape, a different mould will be required and the moulds are priced based on the number and complexity in design of the cavities.

The table below depicts a sample plant cost for making containers, the process involves injection moulding as well as blow moulding.

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How Can We Help You?

If you are interested in setting up an injection moulding unit, we can assist you in starting one. 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

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HOW TO SELECT RIGHT PACKAGING FOR YOUR READY TO EAT PRODUCTS

For ready to eat products, packaging plays a vital role in preserving the quality of food, extending its shelf life and making it look attractive. With the upsurge in demand for ready to eat foods, the packaging technology is continuously evolving to facilitate customer convenience, minimize processing and keeping the product as natural as possible. This blog discusses different packaging technologies and their suitability to your product as well as budget.

Packaging Technology:

The choice of packaging technology depends on the nature of food (Acidity level, moisture content), expected shelf life (few weeks, months, years) and the conditions in which it would be stored (Room temperature, frozen).  As such the packaging technology for ready to eat foods can broadly be divided into three categories.

Thermal Heating: Food is packed in pouches/containers and heated to high temperature. The thermal heating can be done through different technologies including Retort, MATS and Hot fill & pasteurization.

MAP (Modified Atmosphere Packaging):  Filled and packaged product is exposed to UV and then MAP sealed. MAP sealing refers to removing the air from the pack and replacing it with a combination of nitrogen and carbon dioxide that can extend the shelf life of the food.

ASEPTIC: The product and package/container are sterilized separately first and then product is packed and sealed in sterile conditions.

More details on the packaging technology are available in picture 1.

Picture: 1 
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Source: Printpack Packaging Supplies (India) Pvt Ltd.

Costs

The cost of packaging   has two elements; fixed cost of the equipment and cost of the packaging material (cups/pouches). The fixed cost varies significantly across technologies as can be seen below.

Pic 2: Cost of packaging Technology

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The cost of packaging material depends on the shape and weight of the packaging container. As such the cost of packaging material does not depend on the technology that is being used for packaging.

How can we help?

Are you looking to set up a ready to eat/convenience food unit, we can

  1. Help you understand the market, technology, capital and operating costs
  2. Prepare the project proposal and assist you in obtaining bank funding
  3. Technical consultation to assist you identify right machinery, packaging material providers

Reach Us

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Write to us- bchhatre@finetrain.com

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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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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

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Fruits & Spices Processing Industry: Opportunities In AP & Telangana

The fruits and spices processing industry in Andhra Pradesh and Telangana is poised for a significant growth.  Bountiful availability of raw material along with positive policy environment that will build supply chain infrastructure is likely to create many new enterprises. This blog discusses the new opportunities, policy initiatives and funding availability for the industry.

What are the opportunities?

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Enabling environment 
Pic: 1 –  Food Processing Industry: Government Policy

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Note: Enclosed is a link to the Food Processing Policy of AP
Creation of Infrastructure for Food Processing Industry

GOI as part of its Mega food park scheme has sanctioned four food processing parks in Telangana. The details are as under

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Andhra Pradesh has SRINI Food Park in Chittoor, which is operational. Further, the state government has proposed to set up 8 mega food parks. Five of these parks will be located in the coastal districts of Srikakulam, Vizianagaram, Visakhapatnam and East Godavari. Three more parks are proposed in the Rayalaseema in Chittoor, Kurnool and Anantapur.

Funding for Food Processing Industry

A fund of Rs. 2000 crore has been created under NABARD to fund the term loan for food processing industry. The fund is available for food parks as well as units that are located in food parks. Key features of loan are as under:

  1. The loan is available to food processing units located in designated food parks[1]
  2. The list of activities that would be funded include fruits/vegetable/dairy/meat/aqua/herbs/nutraceutical/food flavours, colours, detailed list is available in the link here
  3. Maximum 75% of the project cost would be funded through term loan. Project cost would include site development/machinery/consultancy charges/capitalised working capital/pre-operative interest etc. If the individual is purchasing land (not leasing), 10 % of the land cost would also be included
  4. Term loan would be for a period of 7 years, The rate of interest would be linked to the prevailing interest
  5. Collateral would be required
How can we help you:

If you are interested in setting up a food processing industry, there is no better time than now. We at FineTrain can assist you in starting a fruit/spices processing unit. Our services include

  1. Market viability assessment
  2. Detailed project report preparation
  3. Technical support
Reach Us:

Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

[1] Food parks and mega food parks promoted by Ministry of food processing, food parks/food processing industrial estates promoted by State governments, Food processing SEZ, Any other area that has related infrastructure and has been designated as food park, the MOFPI has provided a list of such entities

 

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PET

Business opportunity: PET recycling

Ever thought about what happens to the cold drink/juice/mineral water bottle after we have discarded it. About 70 per cent of PET bottles are recycled and reused in textile and packaging industry.

India is one of the largest recyclers of PET in the world, next only to China. The industry is growing at a rate of more than 25 per cent per annum. India consumes around 800,000 tonnes of PET resins annually, around 70 per cent of which is collected and recycled. PET recycling business has a turnover of Rs 3,500 crore[1].

PET recycling business is concentrated in Maharashtra and Gujarat, textile and packaging hubs of the country. There are not many PET recycling units in Andhra Pradesh and Telangana. Given that both Telangana and Andhra Pradesh are bountiful in cotton and have identified textile as a focus sector, PET recycling can be an attractive opportunity.

PET Recycling Process

PET bottles are collected by rag pickers and eventually find their way in the recycling factories. Here the bottles are crushed to make PET flakes that are cleaned, cleared of other polymers, hot washed and dried. These flakes can be further processed into fibres (for textile) or injection moulded/ blow moulded for other applications.  The quality of PET is measured in terms of its purity (PPM, particle per million of impurities) and its hardness (Intrinsic viscosity, IV).  The quality of PET flakes is dependent on the input as well efficiency of the washing process.

Market

In India recycled PET (R PET) is not allowed for packaging of food items. The key end use applications of RPET include textiles, PET straps and home furnishing. Nearly 70-80 per cent of R pet is consumed in textile industry.

Products can be made from PET Flakes

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The industry players are of two types, PET flakes manufacturers and integrated players who process the flakes into fibre or other products. The table below describes some of the integrated players.

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Budget

A PET flakes manufacturing unit (comprising PET grinder and washing line) of a capacity of 300 kg per hour can be set up within a budget of Rs. 1 crore.  The land requirement would be around 1000 sft. One also needs to develop a strong network of/chain to collect PET waste.

How can we help?

We can help you set up PET recycling unit through a number of services including market viability assessment, technical consultation and project execution support.

Reach Us

Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

[1] Source: http://www.petrecycling.in/ and Reliance industries presentation in

ASSOCHAM’s 4th National Conference on ‘Waste to Wealth

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Business Opportunity: Candy Manufacturing

Candy is a confectionery made with sugar or chocolate and flavored with fruits and nuts. Candies are popular with adults and children alike and constitute a large market of around Rs. 6,000 crore[1] which is growing at a CAGR of 14 per cent.   The market is broadly divided into two segments: Hard boiled segment (Mango bite) and soft toffee (Éclair). Hard boiled segment accounts for nearly 30 per cent of the market and is growing at 24 per cent.

While the market has a large number of national players (such as Nestle, Parle etc), smaller/local companies have also been able to grow as they are able to offer differentiated product and sell locally. Some of the Hyderabad based players are as under.

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Candy is manufactured by dissolving sugar in the water or milk to make syrup, the syrup is boiled until it reaches desired concentration. The syrup is then cooled and molded into different shapes. The hard boiled candy is boiled for longer time vis a vis soft candy.

Production Process
Picture: 1 – Stages Involved in Candy Production Line

Candy production line

Picture: 2 – Candy Making Unit

Toffee-Depositing-Machine

Budget

Machinery with capacity 2 Ton per day around Rs. 20 Lakhs and the total cost including Land, Labor and machinery cost will not exceed Rs. 40 Lakhs. The minimum land required to put this plant is about 3000 sqft and the area requirement will increase with increase in machinery capacity.

How can we help you?
  • We can help you start a candy manufacturing business through a number of services including business viability assessment, market landscaping and expert consultation.
  • We also offer support in executing your ideas by connecting you with sector experts and professionals.
Reach Us

Write to us: bchhatre@finetrain.com, admin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

[1] Source: http://brandequity.economictimes.indiatimes.com/news/business-of-brands/ds-groups-pulse-candy-the-sweet-that-has-set-the-candy-markets-pulse-racing/51888159

 

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T- PRIDE: Promoting Entrepreneurship among Scheduled Caste and Scheduled Tribes

The Telangana State Program for Rapid Incubation of Dalit Entrepreneurs (T-PRIDE) aims to develop entrepreneurship among Scheduled Caste and Scheduled Tribes. The scheme, which covers both manufacturing and service sector establishments offers a number of incentives to start a new enterprise or expand an existing business. This blog discusses key features of the scheme and its contribution to Dalit entrepreneurship.

Picture 1: Key incentives for Micro and Small enterprises under T- PRIDE

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What type of enterprises are eligible?

In order to claim incentives under T-PRIDE, an enterprise

  • Should be 100 percent owned by SC or ST entrepreneur or both together in case of a joint venture.
  • Should commence operation on or after 1st January 2015 and before 31st March 2019.
  • Can be manufacturing or a service sector unit. For manufacturing units, certain sectors are considered ineligible (list included). For service sector, the government has specified a list of industries that are eligible (list attached).
  • Can be set up anywhere in the state, manufacturing enterprises if set up under GHMC limit, should be set up in the existing industrial estates[1], service enterprises can be set up anywhere
  • Can be a new or an existing enterprises that is expanding or diversifying its business, as shown in the table below.
Picture 2:  Eligibility parameters for existing and new enterprises

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When are these incentives given?

Generally, these incentives are given as reimbursements within 6 months of starting commercial production.  However in some cases, investment subsidy can be claimed before start of commercial production, provided the bank loan has been sanctioned.

How do I arrange finance for my project?

The finance for these projects can be obtained under Stand up India scheme, a scheme that aims to increase capital availability to SC/ST enterprises. In order to read more about Stand up India, please click here.

How many units have benefited thus far?

Based on our analysis of proposals sanctioned by SLC (State level investment committee of Commissioner of Industries, Telangana) during last two years, around 1100 enterprises have obtained approvals for incentives under T-PRIDE.  As can be seen in the picture below, transport and construction sector together account for around 60 per cent of incentive claims. Others, include hospitality, hospitals, mining, and engineering. In terms of geography, Warrangal accounts for highest number of claims, followed by Nalgonda and Karimnagar.

As such, there is a need to promote formation of new enterprises in manufacturing, agri related sectors as these boost employment and lead to development of district economy.

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How can we help you?

FineTrain is an advisory firm for small businesses; we assist our clients in starting or expanding their businesses.  We offer

  1. Advisory to help you to choose suitable business opportunity and DPR preparation
  2. Technical consultation
  3. Project implementation support
Reach us:

Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932

[1] The manufacturing units established in Sanathnagar, Azamabad, Chandulal Baradari and Kattedan Industrial Estates of Hyderabad and Ranga Reddy Districts are not eligible for any incentives/concessions.

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Business Opportunity in Tamarind Processing in India

Tamarind is a popular spice and the products from Tamarind family are being used in Indian food since ages. Tamarind pulp is commonly used in all households, restaurants, roadside eateries etc in food preparations. Not just the fruit, even Tamarind seed powder is extensively used in industries such as Textile, Paper, Confectionary, Cosmetics and Pharmaceuticals.

Opportunity

India is the world’s largest producer of tamarind products, with a production of over 200 thousand tonnes[1]. Tamarind is cultivated in Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Maharashtra, Telangana, Pondicherry and Mizoram (see the picture below).

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The value of the production of tamarind in India is estimated to be around Rs.1608crs[2], exports account for over 11% of the total value. Processed tamarind is exported mainly to European and Arab countries.

Budget

The capital requirements for a tamarind pulp making unit should be around Rs 50 lakhs including machinery and working capital needs.  The budget for the seed powder unit would vary, depending upon the process. For a totally integrated unit that includes roasting and removing the skin, grinding the seed and processing the seed powder into starch, the budget would exceed Rs. 1 crore. However, the capital requirements would reduce if one purchases clean seed (pappu, where the skin has been removed).

The biggest challenge in this business is raw material availability, also the area required to set up a processing facility would be upwards of 10000 sft.

Budget Estimation for Tamarind Processing Units

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How can we help 

We can help you start “Tamarind Processing Industry” through number services as shown below:

  1. Business viability assessment, market landscaping and expert consultation.
  2. Viability of setting up a Tamarind processing unit.
  3. Identifying most cost effective local suppliers for tamarind manufacturing unit.
  4. Connect you with the experts who can help you in setting up the tamarind processing plant.
  5. Preparing the detailed project report.
Reach Us

Write to us: bchhatre@finetrain.com, admin@finetrain.com

Call us: 800 888 4932

[1] Source: NHB, production figures are for 2014 -15.

[2] Assumed average price of tamarind is Rs. 80/kg which is then converted into tonnage price and multiplied with the total production of 200 thousand tonnes.

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Business Opportunity: Animal Feed Manufacturing

India’s animal feed industry, currently valued at around $ 15 billion[1] is expected to double in the next five years.  The feed consumption is estimated to be 21.5 million tonnes, of which cattle feed accounts for 7.5 million tonnes, aqua feed 1 million tonne and poultry feed around 13 Million tonnes.

The state of Telangana and AP contribute to a large chunk of Indian feed consumption, as can be seen in the table below. Given the large size of the industry and its growth, it presents an attractive opportunity for small and medium enterprises.

Animal feed industry in AP and Telangana

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Competitive landscape of the Industry

The industry is competitive, with international, national and regional companies vying for the market share.  The table below provides information on important players in AP and Telangana.

Animal feed companies in AP and Telangana

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Manufacturing process and budget

The feed manufacturing operations comprise four steps; raw material preparation, mixing and grinding the feed, palletisation and packaging. The plant capacity typically starts from 2-3 tonnes per hour to 15 tonnes per hour.

Animal feed manufacturing process

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An automated plant with a capacity of 3- 5 tonnes per hour can cost up to Rs. 40 lakhs. Considering the machines and raw material inventory and infrastructure required to store the raw material, the budget requirement for the unit could be up to Rs. 1 crore.

How can we Help

  • We can help you assess viability of animal feed and related opportunities through a number of services including market research, detailed viability assessment and technical consultation.
  • We also offer support in executing your ideas by connecting you with sector experts and professionals.

Reach Us

Call us @ 800 888 4932,

Write to us- bchhatre@finetrain.com

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[1] As per Yes Bank report on The Indian Feed Industry – Revitalising Nutritional Security

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