Detailed Project Report (DPR) on recycled pet flakes

RECYCLED PET FLAKES

[CODE NO.4401] 

PET is polyethylene terephthalate, the chemical name for a polyester.In comparison with PP, HDPE and PVC bottles,PET is a clear, colourful, durable, cost- effective, thermally stable,strong but lightweight plastic that is widely used for packaging beverages like say, soft drinks, beer, medicines, sauces,juices or water for conveniently carrying it anywhere. And,PET flakes are small pieces of a PET bottle which are broken down from the whole size by cutting and crushing process.

Although PET is useful in several applications, principally in textile fibres for apparel and upholstery, bottles and other rigid or flexible packaging, electronic goods, as of 2022 only bottles were collected at a substantial scale. The main reason behind this move have been either cost reduction when fossil fuel prices spike or recycling the content of retail goods driven by government regulations or public opinion. Major pet flakes are recycled back into packaging bottles, various plastic products, FMCG, consumer goods, some goes into making fibres, film, and rest in strapping once these are sorted, cleaned, crushed and grinded, which is then processed further to be used for commercial purposes.

Recycled PET Flakes Market Report &Dynamics:

The global recycled PET flakes market size was valued at USD 9.22 billion in 2022 and anticipated to expand at a healthy CAGR of 10.9% from 2023 - 2030. The growth of this industry is accounted high as development of food & beverages, household appliances, and personal care products are using much of it.Surprisingly, they are also used in the production of automobile seat covers, sofa & chair top and in carpet industry as Recycled PET flakes exhibit numerous superior characteristics such as quick drying, heat retention, stretching resistance, softness, brittle, wrinkle resistance, high stiffness, and improved tensile and flexural strength. All these clothing productions costs low, thus the recycled polyethyleneterephthalate flakes are used by many companies, and so is expected highly to drive the market across the world.

Ecologically, its seen that re-using waste PET bottles is good as well as the wastage percent is low, but it’s an alarming danger to the climate. Rapid trending westernization, broad mindfulness about re-using things, drives by the public authority to support re-using, and consistent innovative advancements add to the worldwide PET container re-using market growth.The increment popular for drug and bundling materials in countries, like India, China, and Indonesia, are relied upon to gear up interest for Pet Bottle Recycling in the Asia Pacific all through the figure period.

The global dominance of trendy shopping malls over traditional brick-and-mortar stores these days,alongwith the stringent implementation of regulations have fuelled the growth of rPET flakes market worldwide, as vendors of fruits and vegetables sell their items in packets, boxes, or containers made of these flakes. In terms of generating revenue, the clear PET flakes product accounted for a prominent share of the market in 2022 and is further expected to rise because clear PET helps sense changes in the products inside, like variations in any colour, fungal progress, & chemical reaction.

Future Outlook of this Market: 

• The demand for PET Flakes in the food-grade industry alone will increase by nearly 15% in India by 2030. Whereas, the global Recycled PET market is expected to be worth USD 8.9 billion in 2021,increasing to USD 11.7 billion by 2026, at a CAGR of 5.7 % between 2021– 2026, due to its practical benefits.This worldwide idea of pet bottle recycling market possibility has made a noteworthy danger to ecological system and supportability. 

• Non-food bottles & containers segment dominated the end-use industry of the market, and accounted for 30 % share of the revenue last year. Further,increase spending on the commissioning of manufacturing units, in Asia Pacific region, is expected to surge the demand for recycled PET flakes, designed for use across various industries and the growing economies in the region.

• Top players are continuously working on developing their manufacturing plants owing to the increased usage of rPET flakes in the fibre & upholstery, FMCG, consumer goods,non-food, food & beverage industry. For instance, in November 2020, Amcor had adapted its leading-edge engineering and design technology to develop the lightest 900-ml polyethylene terephthalate (PET) bottle for edible oil in Brazil, which can be recycled a number of times. It has been one of the latest developments related to the recycling of PET flakes carried out in South America in recent times.

• Despite huge investments, non-recycled PET bottles have to be majorly exported to Southeast Asian nations for them to be recycled & then re-imported to a particular nation in North America in totally new bottles of new types,  which are created from rPET.

• Advancements in technology have insisted manufacturers to introduce a plasma-based coating which makes PET bottles more impervious in nature. They have also started utilizing silver to increase the product shelf-life and their flexibility. rPET bottles can be moulded into various shapes to improve their appearance, convenience and utility. For brand differentiation, manufacturers are also focusing on developing new polymers for production of distinctive proportionate-sized packaging which will be spurring the demand for colourful and designer PET bottles in near future.

COST ESTIMATION

Plant Capacity                            4 MT/Day

Land & Building (880 sq.mt.)  Rs. 76 Lac

Plant & Machinery                       Rs. 69 Lac

Working Capital for 0.25 Months Rs.  7 Lac

Total Capital Investment                Rs. 1.72 Cr

Rate of Return                                   33%

Break Even Point                             59%

• • INTRODUCTION
  
• • USES/APPLICATIONS
• • SPECIFICATIONS OF PRODUCTS
• • MARKET OVERVIEW
• • FORMULATION
• • RAW MATERIALS DETAILS
• • MANUFACTURING PROCESS STEPS/PROCESS FLOW
• • ENGINEERING DESIGN CONSIDERATIONS
• • SEWAGE AND WASTE WATER EFFLUENT
• • WASTE GENERATION & MANAGEMENT/GREEN BELT
• • PLANT/MACHINERY (BROADLY)
• • SUPPLIERS OF PLANT & MACHINERIES/TURNKEY
• • UTILITIES REQUIREMENT (ESTIMATED - MONTH)
• • PRINCIPLES OF PLANT LAYOUT
• • PLANT LOCATION FACTORS
• • HEALTH SAFETY & ENVIRONMENT
• • ANTICIPATED ENVIRONMENTAL IMPACTS
• • MITIGATION MEASURES (PROPOSED)
• • HSE REQUIREMENT
• • PROPOSED IMPLEMENTATION SCHEDULE
• • PROJECT FINANCIALS
• • PRELIMINARY LAYOUT
• • CONCLUSIONS

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSETS

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)