UPVC/CPVC AND HDPE PIPE MANUFACTURING UNIT

[CODE NO.4417]

High-density polyethylene (HDPE) is a polyethylene thermoplastic made from petroleum. It is known for its large strength-to-density ratio. The density of HDPE can range from 0.93 to 0.97g/cm3 or 970Kg/m3. The difference in strength exceeds the difference in density, giving HDPE a higher specific strength. It is also harder and more opaque and can withstand much higher temperatures (120°C for short periods, 110°C continuously). High-density polyethylene, unlike polypropylene, cannot withstand normally required autoclaving conditions. The lack of branching is ensured by an appropriate choice of catalyst (e.g., Ziegler-Natta catalysts) and reaction conditions.

HDPE pipes are important plastic products which have wide range of applications. These have more tensile strength in comparison to other plastic pipes. These are being used for Sprinkler Irrigation System, potable water supply and sewerage purpose. Their low cost, easily installation and better durability make them ideal for the purpose. They also offer very good resistance to most of the chemicals and have excellent electrical insulation properties. These pipes are also used for circulation of acids in various chemical industries due to their acid resistant quality.

The demand of HDPE Pipes are likely to increase due to their wide use in various sectors in India. Apart from its regular uses, such as for irrigation system, water supply, sewerage, it is being used by Department of Telecommunication for conduit for optical fiber cables. Looking to its increased demand, it appears to be good scope for setting up new small scale industries. Hence the product has good market potential.

COST ESTIMATION

Plant Capacity 26 MT/Day

Land & Building (10,000 sq.mt.) Rs. 6.73 Cr

Plant & Machinery Rs. 8.60 Cr

Working Capital for 1 Month Rs. 7.39 Cr

Total Capital Investment Rs. 23.50 Cr

Rate of Return 47%

Break Even Point 41%

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

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