Detailed Project Report (DPR) on chemical repackaging industry

Detailed Project Report (DPR) on chemical repackaging industry
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India
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Industry Overview

Repacking involves purchasing finished chemical, pharmaceutical, fine chemical, or medicinal products in bulk, transferring them into smaller packages, and selling them under the unit's own name and trademark. Products suitable for repacking may include castor oil, glycerine, Ryzol, Gentian Violet, Mercurochrome liquid, liquid paraffin, phenyle antiseptic lotion, hydrogen peroxide, and other similar products.

Repacking units are generally established on a small scale and can support large manufacturers by handling smaller-volume packaging and distribution requirements with comparatively limited capital investment. Units engaged in chemical and pharmaceutical repacking must comply with applicable registration and licensing requirements, including registration with the relevant state authorities and, for medicines, obtaining the required licence from the drug controller.

For chemical packaging, functional performance is particularly important. Containers should be non-toxic, compatible with their contents, resistant to moisture and chemical penetration, and capable of accommodating pilfer-proof closures to reduce the risk of adulteration. The project also covers chemical packaging methods, testing and analysis of packaging materials, repacking processes for selected products, plant layout and location considerations, export procedures, and project implementation planning.

Cost Estimation

Particulars Value
Plant Capacity 5000 Ltr/Day
Land & Building (1500 sq.mt.) Rs. 2.46 Cr
Plant & Machinery Rs. 64.65 Lacs
Working Capital for 2 Months Rs.1.58 Cr
Total Capital Investment Rs. 4.81 Cr
Rate of Return 26%
Break Even Point 54%

Content Index

  • INTRODUCTION
  • CHEMICAL REPACKAGING
  • CHEMICALS REPACKAGING BENEFITSOF USING A CONTRACT MANUFACTURE
  • SPECIALIZED MANUFACTURING SERVICES:
  • QUALITY CONTROL:
  • OUTSOURCE PRODUCTION ACTIVITY:
  • QUICK TURNAROUND:
  • CHALLENGES OFPACKAGING CHEMICALS
  • HEALTH HAZARDS
  • PHYSICAL HAZARDS
  • ENVIRONMENTAL HAZARDS
  • NUMEROUS PACKAGES
  • MARKETS THAT USE CUSTOM CHEMICAL PACKAGING
  • TRANSPORTATION
  • COMPREHENSIVE CHEMICALS PACKAGING
  • GUIDELINES AND EXPORT PROCEDURE
  • STARTING EXPORTS
  • 1. ESTABLISHING AN ORGANISATION
  • 2. OPENING & BANK ACCOUNT
  • 3. OBTAINING PERMANENT ACCOUNT NUMBER (PAN)
  • 4. OBTAINING IMPORTER-EXPORTER CODE (IEC) NUMBER
  • 5. REGISTRATION CUM MEMBERSHIP CERTIFICATE (RCMC)
  • 6. SELECTION OF PRODUCT
  • 7. SELECTION OF MARKETS
  • 8. FINDING BUYERS
  • 9. SAMPLING
  • 10. PRICING/COSTING
  • 11. NEGOTIATION WITH BUYERS
  • 12. COVERING RISKS THROUGH ECGC
  • PROCESSING AN EXPORT ORDER
  • 1. CONFIRMATION OF ORDER
  • 2. PROCUREMENT OF GOODS
  • 3. QUALITY CONTROL
  • 4. FINANCE
  • 5. LABELING, PACKAGING, PACKING AND MARKING
  • 6. INSURANCE
  • 7. DELIVERY
  • 8. CUSTOMS PROCEDURES
  • 10. DOCUMENTATION
  • 11. SUBMISSION OF DOCUMENTS TO BANK
  • 12. REALIZATION OF EXPORT PROCEEDS
  • MARKET OVERVIEW OF CHEMICAL INDUSTRY
  • THE OUTPERFORMER
  • EXHIBIT 1
  • GLOBALLY AND IN INDIA, THE CHEMICAL INDUSTRY TRS HAS GROWN ROBUSTLY OVER THE LONG TERM
  • EXHIBIT 2
  • THE INDIAN CHEMICAL INDUSTRY HAS BEEN OUTPERFORMING RELATED UPSTREAM/ DOWNSTREAM SECTORS IN INDIA
  • EXHIBIT 3
  • TRS HAS BEEN DRIVEN BY THE TRIPLE EFFECT OF REVENUE GROWTH, MARGIN EXPANSION AND A GROWING MULTIPLE
  • THE GROWTH IS LIKELY TO CONTINUE
  • EXHIBIT 4
  • INDIA HAS GROWN RAPIDLY, AT AN AVERAGE OF AROUND 7% OVER THE LAST 30 YEARS, THROUGH SHOCKS AND CYCLES
  • EXHIBIT 5
  • PETROCHEMICALS ARE EXPECTED TO CONTRIBUTE TO ~63% OF LIQUID DEMAND GROWTH OVER THE NEXT 15 YEARS
  • PACKAGING OF CHEMICALS
  • DRUMS
  • INTERMEDIATE BULK CONTAINERS (IBC)
  • JERRY CANS
  • FUNDAMENTAL DETAILS OF FEW ITEMS
  • 1. CASTOR OIL:
  • 2. GLYCERINE:
  • 3. PETROLEUM JELLY:
  • GENTIAN VIOLET
  • MERCURO CHROME
  • HYDRIGEN PEROXIDE
  • BENEDICT SOLUTION
  • REPACKING PROCESS
  • 1. REPACKING OF CASTOR OIL:
  • 2. REPACKING OF IODINE:
  • 3. REPACKING OF GLYCERINE:
  • 4. REPACKING OF PETROLIUM JELLY:
  • PROCESS FLOW CHART
  • CHEMICAL TESTING AND ANALYSIS OF PACKAGING MATERIALS
  • CHEMICAL ANALYSES OF SUBSTANCES IN PACKAGING AND PACKAGING MATERIALS
  • PACKAGING MATERIALS CHEMICAL ANALYSIS:
  • ADDRESSES OF PLANT AND MACHINERY SUPPLIERS
  • CHEMICAL PACKAGING SERVICES IN INDIA
  • PRINCIPLES OF PLANT LAYOUT
  • MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:
  • PLANT LOCATION FACTORS
  • PRIMARY FACTORS
  • 1. RAW-MATERIAL SUPPLY:
  • 2. MARKETS:
  • 3. POWER AND FUEL SUPPLY:
  • 4. WATER SUPPLY:
  • 5. CLIMATE:
  • 6. TRANSPORTATION:
  • 7. WASTE DISPOSAL:
  • 8. LABOR:
  • 9. REGULATORY LAWS:
  • 10. TAXES:
  • 11. SITE CHARACTERISTICS:
  • 12. COMMUNITY FACTORS:
  • 13. VULNERABILITY TO WARTIME ATTACK:
  • 14. FLOOD AND FIRE CONTROL:
  • EXPLANATION OF TERMS USED IN THE PROJECT REPORT
  • 1. DEPRECIATION:
  • 2. FIXED ASSETS:
  • 3. WORKING CAPITAL:
  • 4. BREAK-EVEN POINT:
  • 5. OTHER FIXED EXPENSES:
  • 6. MARGIN MONEY:
  • 7. TOTAL LOAD:
  • 8. LAND AREA/MAN POWER RATIO:
  • PROJECT IMPLEMENTATION SCHEDULES
  • INTRODUCTION
  • PROJECT HANDLING
  • PROJECT SCHEDULING
  • PROJECT CONSTRUCTION SCHEDULE
  • TIME SCHEDULE

Appendix

  • 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)

Frequently Asked Questions

Chemical repacking is the process of purchasing finished chemical products in bulk, transferring them into smaller packages, and selling them under a company's own name or trademark. The activity can cover products such as oils, glycerine, petroleum jelly and other chemicals. Proper repacking requires suitable packaging materials, controlled handling, accurate filling, secure closures, appropriate labeling, and quality checks to maintain product integrity and minimize contamination or adulteration risks.

A chemical repacking unit can handle a range of finished products, subject to their applicable handling, packaging, and regulatory requirements. The report identifies castor oil, glycerine, Ryzol, Gentian Violet, Mercurochrome liquid, liquid paraffin, phenyle antiseptic lotion, hydrogen peroxide and other products as examples. The suitability of a product depends on its physical and chemical properties, required container compatibility, safety considerations, labeling requirements, and any sector-specific licensing or regulatory obligations.

The key requirements are chemical compatibility, non-toxicity, barrier protection, and secure closure. Packaging should not react adversely with the product or introduce contaminants, while also providing suitable resistance to moisture and other chemical exposure. Containers should be selected according to the characteristics of the material being packed. Pilfer-proof or tamper-evident closures can also help reduce the risk of unauthorized opening, contamination, or adulteration during storage, handling, and distribution.

Quality control is essential because repacking must preserve the identity, quality, and integrity of the finished product. Checks can include examination of incoming materials, packaging compatibility, filling accuracy, container condition, closure integrity, labeling, and appropriate chemical testing. Effective quality procedures also help identify contamination, leakage, deterioration, or packaging failures before products reach customers. The exact controls should be established according to the characteristics of the product and the applicable regulatory requirements.

Site selection should consider raw-material supply, market access, power and fuel availability, water supply, climate, transportation, waste disposal, labor availability, regulatory laws, taxes, site characteristics, community factors, and fire and flood control. These factors influence operating continuity, logistics, safety, compliance, and overall project efficiency. A suitable site should also provide adequate space for receiving, storage, repacking, quality control, finished-goods handling, utilities, movement of materials, and other operational requirements.

Common chemical packaging formats include drums, intermediate bulk containers (IBC), and jerry cans, depending on the product and required package size. The correct format is selected based on chemical compatibility, storage conditions, transport requirements, handling characteristics, and the required level of protection against leakage or environmental exposure. Packaging materials should be evaluated for their chemical resistance and suitability for the specific substance before being used in commercial repacking operations.

The major steps include order confirmation, procurement of goods, quality control, finance arrangements, labeling and packaging, insurance, delivery, customs procedures, documentation, submission of documents to the bank, and realization of export proceeds. Exporters also need to establish an organization, open a bank account, obtain PAN and an Importer-Exporter Code, complete applicable registration requirements, select products and markets, find buyers, arrange sampling and costing, negotiate terms, and consider appropriate risk coverage.

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