PROJECT REPORT

Of

AIR BUBBLE SHEET

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Air Bubble sheet making unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

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 AIR BUBBLE PACKAGING

A. INTRODUCTION:
Air bubble packaging film has gained a good status in packaging field as a convenient and
economical cushioning material. Cushioning materials are available in many types and forms.
The old traditional wood excelsior and shredded paper or tissue have been supplemented
or replaced by corrugated pads. Further sophistication, convenience and improved functional
characteristic in cushioning have been achieved by using various types of plastic foams.
Most commonly used plastic foam for packaging application is expanded polystyrene.

Air bubble polyethylene film is preferred over expanded polystyrene because it is cost
effective. Resiliency of air bubble film is much higher than expanded polystyrene and
ultimate volume of package is much lower if air bubble film is used. It is most suitable for
packaging of light fragile items, sophisticated electronic goods, calculators etc.

The demand generation of electronic goods in recent years has left wide gap to fulfill the
packaging need using air bubble film which has generated a good potential of the project for
new entrepreneurs. Besides packaging applications, air bubble film is widely used in
developed countries as swimming pool cover.

B. PRODUCT USES & SPECIFICATIONS:

The major area of application may be segregated into the following fields.
1. Packaging of fragile items like crockery etc.
2. Packaging of electronic items.
3. Plastic machinery parts packaging.
4. Precious antiques packaging.
5. Pharmaceutical bottles, vials packaging etc..
6. Some special type of chemical packaging.
SPECIFICATIONS:
Air bubble film is a two-layer laminated low density polyethylene film with entrapped air
inside, between the two layers in bubble form in some orderly fashion. Air bubbles render
cushioning effect. The bubbles may be of different sizes. The size of bubble and thickness
of film is decided depending upon the end use (i.e.,) the type and weight of content to be
packed.

Air bubble LDPE film has following properties.

1. Excellent water resistance
2. Atmospheric resistance
3. High dielectric properties.
4. Resistance to termite and white ant.
5. Easy and economical packaging process.
6. Very high shock absorption property.
7. Resistant to most acid and alkalis for moderate duration.
8. Light in weight, attractive look, printable, washable and heat sealable.

C. MARKET POTENTIAL:
Packaging industry in India has an estimated turnover of Rs. 11,500 crores, which is growing
at the rate of 18 per cent annually. The changing pattern of the Indian Consumer behavior
directly affects the packaging industry as the direct expenditure incurred by companies to
make the products attractively packaged is increasing day by day. The industry has a huge
potential and it is growing at a rapid pace.

The packaging industry in India, which started way back in the 1950’s, has grown slowly and
steadily in both quality and quantity. The 70’s and 80’s witnessed a remarkable change in
materials as well as machinery depending on the tastes of the markets.

In the 80’s the Indian packaging industry witnessed about four to live percent growth. But
after the brand awareness caught on around the 90’s the growth touched 15-20 per cent.
This has not only given face-lift to the industry but also opened it up for innovations. In this
period, the industry by and large, depended on domestic resources for materials as well as
machinery. This was due to various restrictions on imports. Towards the mid 90’s,
liberalization opened the industry further and it began to reflect in the changes in
consumers’ consumption pattern.

Packaging manufacturers are responding with the state-of-the-art solutions such as multi-
layer foils, trays, stand bags, PET bottles, lids and closures. Ongoing innovations by the
plastics industry help to accommodate these requirements. The major disadvantage of all
plastic materials is the fact that they are gas-permeable, whereas glass, tinplate and
aluminum offer almost 100 percent protection.

The global market for packaging is worth US $900 billion and India’s share is only US
$3 billion. This itself shows the potential for growth as the economy expands with large
consumers in the waiting. If India can increase the penetration level in the global market,
the packaging industry can become a fast-emerging industry in India. The packaging
industry faces a challenge form the ever-growing demands of consumers, who want food to
remain fresh longer, as well as being easy to handle, healthy and packaged in
environmentally – friendly materials.
D. TECHNICAL ASPECTS:
Installed Capacity:
The capacity envisaged is 1440 MT per annum on the basis of single shifts per day for 300
days. This works out to 10435200 sq.mtrs.

Plant & Machinery

Polycell Bubble Sheet Making machine Rs. 50.00

Manufacturing Process:
LDPE granules fed into the hoppers of 100 mm and 75mm extruder respectively pass
through the extruders, where they are melted, plasticized and forced through the 2 layer
nips of T die. In the die two layers of LDPE sheets of required thickness are formed
simultaneously. These two layers are passed through two silicon synthetic cooling rollers
where air bubbles are thermo formed over one roller and simultaneously it is laminated by
forcing other layer by pressure. At this point, vacuum forming of bubble, cooling of outer
surface of both layers and lamination of thermoformed layer on secondary layer occur
simultaneously.

After this the formed layers are cooled and moved forward trimmed and then to the winder
through take off rollers and then to winder.

Raw Materials
LDPE granules 1515.6 MT/annum.
Price Rs.87 per kg.

Land & Building:

Land 20,000 Sq.ft.
Building 4,500 Sq.ft.

Utilities:

Electricity
Power requirement is 373 KW. is sufficient for operation. For
Heaters 222 KW 225 KW
For Motors 174 HP 130 KW
For Miscl. 25 HP 18 KW
Total Power 373 KW
Power Consumed per annum
(373 x 8 hrs x 300 days) = 667820 KW

Water: Water about 15000 kilo litres is required for process.

Effluent Treatment:

Process does not discharge any harmful effluent. However NOC from Pollution Control
Board has to be obtained.
 Man Power Requirement:

S.No. Designation No.

1 Manager 1
2 Accountant 1
4 Office Boy 1
5 Supervisor 2
6 Skilled 3
8 Unskilled 2
9 Maintenance fitter 1
10 Electrician 1
Total Monthly Salary
Total Annual Salary 12

7. ASSUMPTIONS:
1. Installed capacity-1440 Mt (10435200 Square metres) per annum
2. Capacity utilization Year 1- 60%, Year 2-70% and Year 3-80%
3. Selling Price Rs.17 per Sq.mt
4. Raw materials at 100 % capacity Rs.1318.57 lakhs
5. Power charges at 100% Rs.47 lakhs –Power rate Rs.7.00 per unit
6. Admn & general expenses Rs.24.82lakh per annum
7. Interest on Term Loan and Working capital finance 12% p.a.

FINANCIAL ASPECTS
1. COST OF PROJECT [Rs.lakhs]

S.NO. PARTICULARS TOTAL COST MARGIN 25% LOAN

1 Land & Building Leased/Owned

2 Plant and Machinery 50.00 12.50 37.50
3 Furniture & Fixture 2.50 0.63 1.88
4 Contingencies 8.00 8.00 -
6 Margin for Working Capital 5.56 5.56 -
Total 66.06 26.68 39.38
2. MEANS OF FINANCE

S.NO. PARTICULARS AMOUNT

Own Contribution
1 26.68
2 Term Loan 39.38
Total 66.06

COST OF PRODUCTION & PROFITABILITY STATEMENTS

Years 1 2 3

Installed Capacity - MT 1440 1440 1440

- Sqmt. 10435200 10435200 10435200
Utilization 60% 70% 80%
Production/Sales - MT 864 1008 1152
- Sqmt. 6261120 7304640 8348160
Selling Price per Sqmt. Rs Rs. 15 15.00 15.00

Sales Value (Rs.lakhs) 939.17 1095.70 1252.22

Raw Materials 792.64 924.75 1056.86
Power 28.20 32.90 37.60
Wages & Salaries 21.24 24.78 28.32
Admin. & Selling expenses 14.89 17.38 19.86
Cost of Production 856.98 999.80 1142.63
Interest on Loan 39.34 38.14 36.94
Total 896.31 1037.94 1179.57
Profit Before Tax 42.86 57.76 72.65
Add: Depreciation 7.50 6.38 5.41
Cash Accruals 50.36 64.13 78.06

TOTAL WORKING CAPITAL 3 MONTHS

1 Salary and Wages 3,540,000.00
2 Raw Material 132,107,200.00

3 Utilities 4,699,734.40
Other selling and administrative
4 Expenses 2,482,280.00
5 Total 1,428.29
6 Working Capital for 3 months Rs in Lakhs 357.07
7 Less: Margin 25% 89.26
8 Working capital Requirement 267.81
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN assume no
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contained in Project report is for educational purpose and reflect the views of the industry
which are drawn from various research material sources from internet, experts, suppliers and
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to case basis considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is intended for
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