Detailed Project Report (DPR) on i.v. fluid (bfs technology)

I.V. FLUID (BFS TECHNOLOGY) [3551]

An indication of average landed cost is provided to assist the local producer to gauge initial exporting costs to a particular country. These costs do not include any clearance charges, duties/taxes or local distributor mark-ups. It should also be noted here that many producers make a particular product in various quality grades and this is reflected in their final price for these products. While these producers may have a `base’, `medium’ and/or `high’ price and/or quality levels, these price ranges cannot be easily identified from the trade data as the `product mix’ varies from country to country and, therefore, all statistical costs are averaged out within the specific product HS Code. It should also be noted that the variations in costs are also affected by the cost of the raw materials used for producing the product. High quality and pure raw materials are obviously more costly than their cheaper lower quality or synthetic counterparts and, hence, this is also reflected in the final price of the goods. It must be stressed here that within the above product ranges there are considerable costs variations which can be exit due to the `quality grade level’ (high/medium/low) of the products, the raw materials used in the production, the type of packaging used, the transport, logistical, distribution costs, the `product mix’ being imported, and the market price acceptable in the target country ñ which would be based on GDP, available disposable income and demand. As an example, a third world country is unlikely to import large amounts of high quality products as the local GDP and income compels the local populace to purchase lower cost/quality products. The converse would be true in developed western countries. It is likely for these reasons that there could be considerable landed cost differential between the countries. This information should assist local KSA companies to ascertain, in a very general manner, whether their respective products are likely to be competitive in the above identified export markets or not. Landed costs, by sea shipments, are normally based on CIF value - purely as a general guide, it is estimated that the variation between FOB and CIF costs could be somewhere in the region of 10% to 15% of FOB. Although the U.S. market comprises almost 70% of the total world market for IV solutions, the market for third world and emerging nations is growing much faster and presents a tremendous opportunity for the IVPC Facility™. This growth is due to the building of better and higher quality health care institutions and other health care infrastructures in areas once deemed dormant. World market growth is driven by population increases and constant up-scaling and sophistication of health care delivery. As part of this up-scaling, IV infusion therapy is becoming increasingly important in overall health care treatment regimens as new developments in antibiotics and other medications used in areas such as chemotherapy, burn centers, and renal/peritoneal dialysis centers favor intravenous use and application. Many countries continue to rely on imported product, which is often too expensive for the general population to afford. Frequently, where product is made locally, the quality is poor and the costs are still high. In addition, the lack of inexpensive and readily available supplies of IV solutions in many developing nations has lead to a high incidence of death from non-mortal injuries and non-terminal diseases. The IVPC Facility™ provides an immediate and inexpensive remedy to this situation. The economic advantages of producing IV solutions locally in emerging and medically developing nations via EWMA IVPC Facility™ can result in an extremely short return on initial investment. Profitability can be established at only 50% production capacity. Direct production costs using U.S. cost figures are 45% to 65% lower than current market pricing for primary product lines. Under the U. S. calculation. direct and indirect labor costs comprise the largest single cost element. In emerging nations, where the cost of labor is much less and the cost of IV solutions often is much higher, the actual production cost figures can be 60% to 90% lower than market pricing. Secondary product lines with significantly higher profit margins can be introduced at any time to greatly enhance profitability. Long distance shipping costs are not incurred with the regional target market creating significant savings on distribution costs. Demand for IV solutions is so great that should production exceed local demand. opportunities for national and export sales are unlimited in the foreseeable future. Local labor is trained in the technology and employed by the facility. The efficiency of the technology allows for a small staff of personnel to maintain rated production capacity. Most raw materials are available locally.

COST ESTIMATION

Plant Capacity                                        127200 Bottle/Day  
Land & Building (8000 sq.mt)             Rs. 5.25 Cr
Plant & Machinery                                  Rs. 40 Cr
Working Capital for 2 Months             Rs. 6.74 Cr
Total Capital Investment                      Rs. 52.50 Cr
Rate of Return                                       18%
Break Even Point                                  66%


INTRODUCTION    
TYPES OF IV FLUID    
COMMONLY USED IV FLUIDS    
HOW INTRAVENOUS FLUIDS ARE CREATED    
IV FLUID/ELECTROLYTE THERAPY    
KEY TERMS    
DEXTROSE    
DEXTROSE SALINE INJECTION    
PROPERTIES    
TABLE I. PHYSICAL PROPERTIES OF D-GLUCOSE    
TABLE 2. SOLUBILITY OF DEXTROSE IN WATER    
REQUIREMENTS OF RAW MATERIALS    
TABLE I: REQUIREMENT FOR DEXTROSE MONOHYDRATE    
EXPORT OPPORTUNITY OF INTRAVENOUS SOLUTION    
LOCAL MANUFACTURING ACTIVITIES    
HS CODES    
WORLD MARKET TRENDS IMPORTS & EXPORTS    
MAJOR INTERNATIONAL IMPORTING COUNTRIES    
MAJOR IMPORTING COUNTRIES - MENA REGIONAL & GCC    
COMPETITION - MAJOR EXPORTING COUNTRIES    
ESTIMATE OF IMPORTER’S LANDED COSTS    
ECONOMIC PROFILE    
WORLD MARKET CONSUMPTION    
SOURCE OF MACHINES TECHNOLOGY    
GLOBAL MARKET OVERVIEW OF IV FLUID    
GEOGRAPHICAL SEGMENTATION OF THE INTRAVENOUS SOLUTIONS MARKET    
COMPETITIVE LANDSCAPE AND KEY VENDORS    
KEY VENDORS IN THIS MARKET ARE -    
GROWTH DRIVERS, CHALLENGES, AND UPCOMING TRENDS:
     HOME TREATMENT    
USES AND APPLICATION    
SOME GENERAL INTRAVENOUS FLUIDS    
SPECIFICATION OF INDIAN PHARMACOPEIA ON I.V FLUIDS DEXTRAN 40 INJECTION
DEXTRAN 110 INJECTIONS    
B.I.S. SPECIFICATIONS FOR PLASTIC I.V. BOTTLES    
SODIUM CHLORIDE AND DEXTROSE INJECTION    
IDENTIFICATION:-    
ASSAY:    
BASIC RAW MATERIALS    
REQUIREMENTS OF RAW MATERIALS AND SPECIFICATIONS    
WATER FOR INJECTION    
HDPE PHARMA GRADE LAMINATE/ PLASTIC ROLL    
LABELING    
IDENTIFICATION    
HEAVY METALS    
COMPOSITION OF IV FLUID    
COMPOSITION OF COMMON IV FLUID (MEQ/L)    
COMPOSITION OF IV FLUIDS    
COMPOSITION OF COMMERCIAL I.V. FLUID AVAILABLE    
BASIS OF BFS TECHNOLOGY    
BLOW FILL SEAL (BFS) AND FORM FILL SEAL (FFS) TECHNOLOGY    
CONCEPT OF BFS    
MANUFACTURING PROCESS OF I.V. FLUID (FFS TECHNOLOGY)    
PROCESS FLOW DIAGRAM    
PROCESS IN DETAILS    
1. DISTILLED WATER PREPARATION:-    
2. SOLUTION PREPARATION :-    
3. INJECTION BLOW MOULDING    
4. MOULDING PROCESS    
5. FILLING PROCESS    
6. SEALING PROCESS    
7. MOULD OPENING PROCESS    
FILTRATION AND FILLING:-    
STERILIZATION:-    
QUALITY CONTROL:-    
FLOW DIAGRAM OF MANUFACTURING OF I.V. FLUIDS    
SWOT ANALYSIS    
FORM FILL SEAL TECHNOLOGY    
1. FORM-FILL-SEAL TECHNOLOGY:-    
1.5 FILTRATION (MEMBRANE):-    
LIST OF MACHINERY IV BAG PRODUCTION FORM FILL AND SEAL MACHINE    
IV BAG PRODUCTION (IV PRODUCTION AND PACKING)    
IV BAG EMPTY PRODUCTION LINE    
1.  WATER PURIFYING    
2.  DISTILLATION    
3.  SOLUTION FILLING    
4.  STERILIZATION    
5.  PACKING    
A TYPICAL FFS PROCESS WORKS AS FOLLOWS.    
SUPPLIERS OF RAW MATERIALS    
POTASSIUM PERMANGANATE    
SODIUM CHLORIDE (I.P. GRADE)    
DEXTROSE    
SUPPLIERS OF PLANT AND MACHINERY    
STERILIZING EQUIPMENTS    
PM METER    
LABELING MACHINES    
TANKS    
BOILER    
FILTER PRESS    
LABORATORY EQUIPMENTS    
MIXER    
EMPTY IV BAG MANUFACTURER AND SUPPLIER IN INDIA    
SUPPLIERS OF COMPLETE PLANT AND MACHINERY    
CONSULTANT OF TURNKEY PROJECT SUPPLIER OF THE PLANT
   AND MACHINERY    
CLEAN ROOM SUPPLIERS    
MACHINERY CATALOG    

APPENDIX – A:

01.    PLANT ECONOMICS    
02.    LAND & BUILDING     
03.    PLANT AND MACHINERY    
04.    OTHER FIXED ASSESTS    
05.    FIXED CAPITAL    
06.    RAW MATERIAL    
07.    SALARY AND WAGES    
08.    UTILITIES AND OVERHEADS    
09.    TOTAL WORKING CAPITAL    
10.    TOTAL CAPITAL INVESTMENT    
11.    COST OF PRODUCTION    
12.    TURN OVER/ANNUM    
13.    BREAK EVEN POINT     
14.    RESOURCES FOR FINANCE    
15.    INSTALMENT PAYABLE IN 5 YEARS    
16.    DEPRECIATION CHART FOR 5 YEARS    
17.    PROFIT ANALYSIS FOR 5 YEARS    
18.    PROJECTED BALANCE SHEET FOR (5 YEARS)