Profile No.

: 69 NIC Code: 20116

Thermoforming

1. INTRODUCTION

Thermoforming is one of many manufacturing process that converts plastic resin into
usable everyday product. Thermoforming is considered to be one of the most cost-
effective processes in plastic manufacturing because of the low moulding costs and fast
moulding cycles. Speed and cost efficiency are the highlighted qualities that
thermoforming offers which lead the way for the process becoming so important in
industry today.

We have entered into another area of plastic consumer goods, which are continuously
replacing the traditional items. The use of disposable items is increasing day by day
because of growing hygiene consciousness, low cost, easy usability and impressive
appearance. The major products that are in use are disposable glasses, cups, plates
and spoons. These have become a part of the hectic life style due to their convenience.
Apart from being used at home, they also come in handy during parties, picnics and
other functions and get-togethers. The major user of cups are the ice cream
manufacturers and they have started using plastic cups instead of paper ones that were
being used earlier. The main advantage of these plastic cups is that they are completely
leak proof. Plastic cups can be made up of different sizes and they can hold bulk
material easily in comparison to the traditional paper cups.

The new carry away fast food culture has created the demand for the articles to pack
food item. These articles consist of variety of packing boxes such as small tumblers,
bowls, etc. Apart from this the use of blisters for packing pencil cell, toothbrushes, pens
and variety of toys, etc. has also been on the rise. This is the new emerging area,
which can be tapped as an ancillary support to the various products of different kind of
above-mentioned products.
2. PRODUCTS AND ITS APPLICATION

The major sectors where thermoformed products are used are Food Industries,
Pharmaceutical, Electronics, Horticulture, Cosmetics, and Automobile Industry etc.

3. DESIRED QUALIFICATION FOR PROMOTER

The Promoter should have preferably a basic degree in plastic engineering/ processing
or a degree/ diploma in engineering / or a degree in chemistry. Experience of at least
two to three years in plastic industry is desirable.

4. INDUSTRY OUTLOOK/ TREND

The outlook for disposable food serving and packaging sector is very bright due to
changing life style, awareness towards cleanliness and hygiene. Moreover conventional
products made from forest resources face the problem of raw material. The trend in the
business of disposable item is to serve quickly, efficiently, hygienically, leak proof and
longer shelf life of packed products.

5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY

As per the Working Group Report on Petrochemicals, Ministry of Chemicals & Fertilizers,
the demand of PP Sheet in India is projected to be 30 KT by 2015-16.

The consumption of PP in PP Thermoformed Cups in India in 2015-16 was 20 KT.

Looking to the advantage of thermoformed product, the demand has increased in
various sectors for packaging and disposable items.

Thermoformed products are mainly used in food packaging and serving. With increase in
urbanization, changing lifestyle and increase in per capita income, demand for
disposable items has increased considerably for various events, household applications,
 food packing in the hotels and restaurants, railways and airlines. The growth in this
sector is very high and will result in to high demand for such products.

6. RAW MATERIAL REQUIREMENTS

Polypropylene sheets are produced by Kshitij Polyline Private Limited, Silvassa.

Mandhana Polymers Private Limited, Sarigam, GIDC, Valsad. And Roechling Engineering
Plastics (india) Private Limited, Khar West, Mumbai.

7. MANUFACTURING PROCESS

In the thermoforming of PP, constant air pressure and the use of a preheating oven are
essential requirements of a viable process. The heating station includes two plates, each
consisting of 6 transversal rows with 5 IR heating elements. The total power of each
plate as well as the power of each transversal row can be adjusted. The position of the
thermic screen allows adjusting the length of the exposed zone of the sheet by a
multiple of the forming step.

The thermoforming station consists of two mobile tables (lower) & (upper) on which the
mould, the chamber and in some cases the mobile plugs are fixed. It is possible to
introduce compressed air into the chamber and to create a vacuum in the mould. The
mould is thermoregulated. A measuring device allows visualizing the thermoforming
cycle by measuring the pressure in the mould and in the chamber and the plug
movement. On one cavity, contact sensors are installed. The cutting is a delicate
operation for PP, especially when it is done after the forming station. In order to center
properly the cutting operation, the knives are mobile in relation to the frame. They are
positioned with the help of TEFLON centering which lodge in the plastic cup. The knives
are heated to 170˚ C and the clamping force must be strong in order to achieve regular
cutting.

The quick cooling of the polypropylene when contacting the tool increases the
consistency and the material for the contact areas. Especially during the plug
 displacement, the strain rates value are almost zero in the frozen areas (that means in
the center of the sheet) and the deformation is localized in the warmer zones.

Thickness profile and mechanical resistance are closely linked especially for
thermoforming parts. To design a packaging component, the process conditions have to
be optimized and the mechanical behavior to be calculated.

Recent experimental studies confirm that, even with Homopolymer polypropylene, well-
controlled thermoforming conditions allow to form deep cups with good properties.

- Processing cycle time

- Thickness distribution
- Transparency
- Mechanical properties

The optimizations must become more efficient because it is easier to quickly test
different tool designs, process parameters and polypropylene grades.

8. MANPOWER REQUIREMENT

Sr. No. Particulars Nos Salary

1 Production Engineer 1 10000
2 Manager 1 12000
4 Sales Executive 1 10000
5 Accountant 1 10000
6 Store Keeper 1 7000
7 Watchman 2 12000
8 Skilled Workers 4 28000
9 Unskilled Workers 6 36000
Total 17 125000
 9. IMPLEMENTATION SCHEDULE

Sr. No. Particulars Time Period

The Time requirement for preparation of
1 Project report Two months
2 Time requirement for selection of Site One month
Time required for registration as Small Scale
3 Unit One Week
Time required for acquiring the loan,
Machinery procurement, erection and
4 commissioning Three months
5 Recruitment of labourer etc. One month
6 Trial runs Two weeks

10. COST OF PROJECT

Sr. No. Particulars Rs. In lakhs

1 Land and Building 38.00
2 Plant and Machinery 51.20
3 Miscellaneous Assets 6.50
4 P & P Expenses 3.50
Contingencies @ 10% on land and
5 building and plant and machinery 8.92
6 Working capital margin 45.26
153.38

11. MEANS OF FINANCE

Sr. No. Particulars Rs. (lakhs)

1 Promoter's contribution 46.0128
2 Bank Finance 107.3632
3 Total 153.38
 12. WORKING CAPITAL CALCULATION

Stock Promote Margin Bank

Sr. No. Particulars Rs. lakhs
Period days r Margin Amt. Finance
1 Salaries and wages 1.25 30 1 1.25 -
Raw material and
2 43.25 30 0.5 21.625 21.625
packaging material
3 Utilities 0.89 30 0.5 0.445 0.445
4 Debtors 54.84 30 0.4 21.936 32.904
Total 100.23 45.256

13. LIST OF MACHINERY REQUIRED

Sr. No. Particulars Rs. lakhs

1 Automatic Thermoforming Machine 30.00

2 Chilling Plant 5.00
Four Color Dry Offset Printing machine with
3 automatic unloading 12.00
4 Air Compressor 1.50
5 Scraper, grinder 1.50
6 Testing Equipment & Other Accessories 1.20
Total 51.20

 Rajoo Engineers Limited (Head office)

Survey No. 210, Plot No.1,
Rajoo Avenue, Industrial Area,
Veraval (Shapar), Rajkot - 360 024
Gujarat

 Sai Thermoformers
25, DSIDC Shed
Okhla Industrial Area Phase-1
New Delhi
 14. PROFITABILITY CALCULATIONS

Sr. No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Sales Realization per
(A) annum 46068750 52650000 59231250 59231250 59231250
(B) Cost of Production
1 Raw material per annum 37800000 43200000 48600000 48600000 48600000
2 Utilities 749616 856704 963792 963792 963792
3 Salaries 1500000 1620000 1740000 1860000 1980000
4 Repairs and maintenance 450000 500000 550000 600000 650000
Selling expenses (3% on
5 sales value) 1382063 1579500 1776938 1776938 1776938
Administrative Expenses
6 (other expenses) 650000 700000 750000 800000 850000
Total 42531679 48456204 54380730 54600730 54820730
Profit before interest &
(C) depreciation 3537072 4193796 4850521 4630521 4410521
depreciation 1338000 1338000 1338000 1338000 1338000
Profit Before term loan
and tax 2199072 2855796 3512521 3292521 3072521
Interest on term loan
(11%) 1138817 1012282 843568 674854.4 506140.8
Profit before tax 1060255 1843514 2668953 2617666 2566380
Tax (30%) 318076.4 553054.2 800685.8 785299.8 769913.9
Total Profit 742178.2 1290460 1868267 1832366 1796466

15. BREAKEVEN ANALYSIS

Fixed Cost (FC): Rs. In lakhs

Wages & Salaries 15
Repairs & Maintenance 4.5
Depreciation 13.38
Admin. & General expenses 6.5
Interest on Term Loan 11.38

Total 50.76
 Fixed Cost: 50.76
Profit After Tax: 7.42
BEP = FC x 100/FC+P
50.76 /58.18 x 70/100 x 100
61.07%

16. STATUTORY/ GOVERNMENT APPROVALS

There is no specific statutory requirement for plastic processing industry, however MSME & GST
registration, IEC Code for Export of end products and local authority clearance may be required
for Shops and Establishment, for Fire and Safety requirement and registration for ESI, PF and
Labour laws may be required if applicable. Entrepreneur may contact State Pollution Control
Board where ever it is applicable.

17. BACKWARD AND FORWARD INTEGRATION

Backward linkages can be established by putting up the facilities to produce PP sheets. This can
be done once the production is stabilized and market is fully developed to utilize production
capacity. Similarly forward linkages to diversify in to other thermoform products such as
packaging items for industrial parts, electronic products and household items like trayand
containers.

18. TRAINING CENTERS/COURSES

For plastic processing industry training and short term courses may be availed from the Central
Institute of Plastic Engineering and Technology (CIPET), Guindy, Tamil Nadu and its regional
centers. More over training and guidance are also provided by polymer manufacturers such as
Reliance Industries Limited, GAIL and Haldia Petrochemicals Limited. Udyamimitra portal ( link
: [Link] ) can also be accessed for handholding services viz. application filling /
project report preparation, EDP, financial Training, Skill Development, mentoring etc.
Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery manufacturers
have been taken from reliable sources, to the best of knowledge and contacts. However, no
responsibility is admitted, in case any inadvertent error or incorrectness is noticed therein.
Further the same have been given by way of information only and do not carry any
recommendation.