Polyvinyl Alcohol (PVA) Manufacturing Industry-201689 PDF

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Introduction
Polyvinyl alcohol, also known as PVOH, PVA, or PVAL, is a synthetic
polymer that is soluble in water. It is effective in film forming,
emulsifying, and has an adhesive quality. It has no odor and is not
toxic, and is resistant to grease, oils, and solvents. It is ductile but
strong, flexible, and functions as a high oxygen and aroma barrier.

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Polyvinyl Alcohol (PVA) is produced by polymerization of vinyl acetate
monomer followed by hydrolysis. PVA finds application in various end-
use industries such as food packaging, paper, textile, construction,
coatings, and pharmaceutical. Polyvinyl Alcohol exhibits resistance to
moisture and therefore, is predominantly used in the food packaging.
Due to high water solubility and biodegradability, PVA has increasingly
been used in the packaging industry.

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Uses:
Polyvinyl Alcohol use is growing in packaged food products due to the benefits
associated with it such as film forming and retention of taste & texture of the
product. It is also used in the nutritional supplement pills, tablets and capsules
owing to its viscosity. Polyvinyl alcohol is used as an additive in mortar and
cement in order to increase of their cohesion and fluidic properties, reducing
the drying time for the concrete surface. This increases the coating adaptability
and prevents concrete cloth from chapping.

Polyvinyl alcohol is widely used to strengthen textile yarn and papers,


particularly to make the latter more resilient to oils and grease. It is also used
in freshwater sports fishing. PVA is added into bags that are filled with oil-based
or dry fishing bait and attached to the hook. As PVA is soluble in water, when
the bag lands on the bed of the water, it breaks down, leaving the hook bait
surrounded by pellets and ground bait. This attracts fish to the hook bait,
although the PVA does cause the plastic to dissolve in water.

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PVA may also be used as a coating agent for food supplements and does
not pose any health risks as it is not poisonous. One of the leading
industrial uses for PVA is for food packaging, accounting for 31.4
percent of the global share in 2016. To combat moisture formation
from foodstuff, PVA film is created to be thin and water-resistant. Its
crosslinking density and resistance to moisture are added benefits to
its usability in this area.

Polyvinyl alcohol is a resin, a natural or synthetic organic compound


made of non-crystalline or viscous substance. Hence, it is often utilized
as the starting point for the creation of other resins such as polyvinyl
butyral (PVB) or polyvinyl formal (PVF). PVB has an adhesive quality
and is a water-resistant, plastic film, which is often used to laminate
safety glass for vehicles. PVF is commonly used to insulate wires.

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It is also interesting to note that in another growing market, the
pharmaceutical market, use of polyvinyl alcohol for coating of
medicinal tablets is quite prominent. Its various chemical properties
have shown the benefit of its use in health applications, and in
particular in pharmaceutics. However, extensive experimentation and
pharmaceutical use of PVA/PVOH has been limited due to regulations
on food and drugs.

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Market Outlook

The global polyvinyl alcohol (PVA) market is expected to reach USD


1.21 billion by 2025, reflecting a compound annual growth rate of
4.59%. PVA finds application in various end-use industries including
food packaging, paper, textile, construction, coatings, and
pharmaceutical. Polyvinyl alcohol is available in a wide-range of
grades, which is also a major positive for the product as it allows end
users a wider option to select from. Moreover, the product’s high
resistance to moisture, high water solubility and biodegradability
makes it suitable for various industrial application. The product is
increasingly being used in manufacturing sustainable packaging owing
to it physiochemical characteristics. Factors as such are expected to
support the global market for PVA during the review period.

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Increasing need for biocompatible and non-toxic packaging solutions in
food & beverage industry is expected to drive the growth. PVA is
extensively used in food packaging industry owing to its advantageous
properties such as good crosslinking density and moisture content.

The demand for PVA is expected to boost owing to the growth in


various end-use industries in the Asia Pacific region. Different grades
of polyvinyl alcohol are used in the papermaking process with high,
intermediate and low viscosities. These grades can be either fully,
partially or intermediately hydrolyzed in nature.

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U.S. Polyvinyl Alcohol Market Volume by End-Use,
2014 - 2025 (Kilo Tons)

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In addition, changing packaging trends in the cosmetics, and food &
beverage industries are also fueling the growth of this region.
Furthermore, rising use of biodegradable material by packaging
industry in order to prevent pollution is also contributing to the
increasing demand for PVA. Rising innovation in packaging coupled
with consumers’ demand for properties such as convenience, safety,
technology, and sustainability, is expected to fuel the demand for PVA
during the forecast period.

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Polyvinyl Alcohol Market: Revenue Shares (%), By
Region, Global, 2017

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The demand for PVA is expected to boost owing to the growth in
various end-use industries in the Asia Pacific region. Different grades
of polyvinyl alcohol are used in the papermaking process with high,
intermediate and low viscosities. These grades can be either fully,
partially or intermediately hydrolyzed in nature.

Asia Pacific is the fastest growing market for Polyvinyl Alcohol as a


result of rapidly growing demand from packaging industry especially
pertaining to convenience food, from the working class in the
developing economies such as India, China, Thailand, and South Korea.
The product demand for packaged food products is growing due to
convenience and longer shelf life of the products. Growing healthcare
industry is also propelling the market growth with respect to rising
disease burden among the consumers.

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Increasing need for bio-based PVA alcohol products is key growth factor
to drive polyvinyl alcohol market growth. In addition, rising demand
from Asia Pacific region is further propelling the demand over the
forecast period.

By end use industry, the market has been segmented into packaging,
paper, construction, electronics, textile, and medical. Currently,
packaging is the leading segment while the textile segment is likely to
be the fastest growing segment. The intensive use of PVOH in
biodegradable packaging aids the packaging segment to gain the
leading position in the market, and currently accounts for 38.2% share
of the market. The textile segment is expected to expand at a CAGR of
5.49% owing to extensive use of PVOH for wrap sizing applications.
Moreover, increased demand for textiles has resulted in the consistent
growth of the textile industry.

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The polyvinyl alcohol market is segmented into North America,
Europe, Asia Pacific, Latin America, and the Middle East & Africa
regions for the purpose of the regional analysis. The Asia Pacific region
has emerged as the most rapidly developing market in 2017 and is
projected to develop at a strong CAGR of 5.45 percent through the
review period and is anticipated to touch USD 791.3 million by the end
of 2023. The reinforcing growth of the application industries such as
textile, food packaging, and construction can be credited towards this
development. The demand for sustainable packaging can be accredited
to the market growth in the region. The North American region is
another major region in the market for polyvinyl alcohol with growing
demand for the product as a polymerization aid.

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Demand for Polyvinyl Alcohol as an emulsifying and dispersing agent
also boosts the growth of the market. Furthermore, Polyvinyl Alcohol is
also used in vinyl-based emulsion in an array of applications including
paints & coatings, textile, re-dispersible powders, and construction
which adds to the growth of the market. Growing constructional
activities are expected to provide an opportunity for the Global
Polyvinyl Alcohol Market as it is used in a number of construction
chemicals. However, volatility in the price of raw materials might act
as a setback to the growth of the Global Polyvinyl Alcohol Market.

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Cost Estimation:
Plant Capacity: 2.0 MT/Day

Plant & Machinery: 31 Lakhs

Working Capital: 149 Lakhs

T.C.I: 358 Lakhs

Rate of Return: 62.67%

Breakeven Point: 42.18%

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Major Queries/Questions Answered in the Report?
1. What is Polyvinyl Alcohol (PVA) Manufacturing
industry ?

2. How has the Polyvinyl Alcohol (PVA)


Manufacturing industry performed so far and how
will it perform in the coming years ?

3. What is the Project Feasibility of Polyvinyl Alcohol


(PVA) Manufacturing Plant ?

4. What are the requirements of Working Capital for


setting up Polyvinyl Alcohol (PVA) Manufacturing
plant ?

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5. What is the structure of the Polyvinyl Alcohol (PVA)
Manufacturing Business and who are the
key/major players ?

6. What is the total project cost for setting up


Polyvinyl Alcohol (PVA) Manufacturing Business?

7. What are the operating costs for setting up


Polyvinyl Alcohol (PVA) Manufacturing plant ?

8. What are the machinery and equipment


requirements for setting up Polyvinyl Alcohol
(PVA) Manufacturing plant ?

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9. Who are the Suppliers and Manufacturers of Plant
& Machinery for setting up Polyvinyl Alcohol (PVA)
Manufacturing plant ?

10. What are the requirements of raw material for


setting up Polyvinyl Alcohol (PVA) Manufacturing
plant ?

11. Who are the Suppliers and Manufacturers of Raw


materials for setting up Polyvinyl Alcohol (PVA)
Manufacturing Business?

12. What is the Manufacturing Process of Polyvinyl


Alcohol (PVA)?

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13. What is the total size of land required for setting up
Polyvinyl Alcohol (PVA) Manufacturing plant ?

14. What will be the income and expenditures for


Polyvinyl Alcohol (PVA) Manufacturing
Business?

15. What are the Projected Balance Sheets of Polyvinyl


Alcohol (PVA) Manufacturing plant ?

16. What are the requirement of utilities and overheads


for setting up Polyvinyl Alcohol (PVA) Manufacturing
plant?

17. What is the Built up Area Requirement and cost for


setting up Polyvinyl Alcohol (PVA) Manufacturing
Business?

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18. What are the Personnel (Manpower)
Requirements for setting up Polyvinyl Alcohol
(PVA) Manufacturing Business?

19. What are Statistics of Import & Export for


Polyvinyl Alcohol (PVA)?

20. What is the time required to break-even of


Polyvinyl Alcohol (PVA) Manufacturing
Business?

21.What is the Break-Even Analysis of Polyvinyl


Alcohol (PVA) Manufacturing plant?

22.What are the Project financials of Polyvinyl Alcohol


(PVA) Manufacturing Business?

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23. What are the Profitability Ratios of Polyvinyl
Alcohol (PVA) Manufacturing Project?

24. What is the Sensitivity Analysis-Price/Volume of


Polyvinyl Alcohol (PVA) Manufacturing plant?

25. What are the Projected Pay-Back Period and


IRR of Polyvinyl Alcohol (PVA) Manufacturing
plant?

26. What is the Process Flow Sheet Diagram of


Polyvinyl Alcohol (PVA) Manufacturing project?

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27. What are the Market Opportunities for setting
up Polyvinyl Alcohol (PVA) Manufacturing plant?

28. What is the Market Study and Assessment for


setting up Polyvinyl Alcohol (PVA) Manufacturing
Business?

29. What is the Plant Layout for setting up Polyvinyl


Alcohol (PVA) Manufacturing Business?

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Table of Contents
of the
Project Report

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1. PROJECT LOCATION
1.1. CITY PROFILE & GEOTECHNICAL SITE CHARACTERIZATION
1.1.1. General
1.1.2. Geography
1.1.3. Climate and Weather
1.1.4. Map
1.1.5. Administration
1.1.6. Culture
1.1.7. Economy
1.1.8. Transportation

2. INTRODUCTION

3. PROPERTIES

4. USES AND APPLICATIONS

5. ADVANTAGES & DISADVANTAGE OF PRODUCT

6. PRODUCT DESCRIPTION

7. B.I.S. SPECIFICATIONS

8. MARKET SURVEY

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9. EXPORT & IMPORT: ALL COUNTRIES

10. FINANCIALS & COMPARISON OF MAJOR INDIAN PLAYERS/COMPANIES


10.1. ABOUT FINANCIAL STATEMENTS OF CMIE DATABASE
10.2. PROFITS & APPROPRIATIONS
10.3. TOTAL LIABILITIES
10.4. TOTAL ASSETS
10.5. NET CASH FLOW FROM OPERATING ACTIVITIES
10.6. SECTION – I
10.6.1. Name of Company with Contact Details
10.6.2. Name of Director(S)
10.6.3. Credit Ratings
10.6.4. Plant Capacity
10.6.5. Location of Plant
10.6.6. Name of Raw Material(S) Consumed With Quantity & Cost
10.7. SECTION – II
10.7.1. Assets
10.7.2. Cash Flow
10.7.3. Cost as % Ge of Sales
10.7.4. Forex Transaction
10.7.5. Growth in Assets & Liabilities
10.7.6. Growth in Income & Expenditure
10.7.7. Income & Expenditure
10.7.8. Liabilities
10.7.9. Liquidity Ratios
10.7.10. Profitability Ratio

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10.7.11. Profits
10.7.12. Return Ratios
10.7.13. Structure of Assets & Liabilities (%)
10.7.14. Working Capital & Turnover Ratios

11. COMPANY PROFILE OF MAJOR PLAYERS

12. EXPORT & IMPORT STATISTICS DATA OF INDIA

13. PRESENT MANUFACTURERS

14. RAW MATERIALS

15. MANUFACTURING PROCESS

16. PROCESS FLOW DIAGRAM

17. BUYER’S LIST

18. SUPPLIERS OF RAW MATERIAL

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19. SUPPLIERS OF PLANT & MACHINERY

20. PHOTOGRAPHS/IMAGES FOR REFERENCE

20.1. PRODUCT PHOTOGRAPHS


20.2. MACHINERY PHOTOGRAPHS
20.3. RAW MATERIAL PHOTOGRAPHS

21. QUOTATION OF PLANT, MACHINERY AND EQUIPMENTS FROM SUPPLIER

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Project Financials
• Project at a Glance Annexure

• Assumptions for Profitability workings ………………………..1


• Plant Economics…………………………………………………..2
• Production Schedule………………………………………………3
• Land & Building……………………………………………….……4
Factory Land & Building
Site Development Expenses

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• Plant & Machinery……………………………………………..……..5
Indigenous Machineries
Other Machineries (Miscellaneous, Laboratory etc.)

• Other Fixed Assets………………………………………..........….......6


Furniture & Fixtures
Pre-operative and Preliminary Expenses
Technical Knowhow
Provision of Contingencies

• Working Capital Requirement Per Month……………………….…7


Raw Material
Packing Material
Lab & ETP Chemical Cost
Consumable Store

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• Overheads Required Per Month and Per Annum………….…….…8
Utilities & Overheads (Power, Water and Fuel Expenses etc.)
Royalty and Other Charges
Selling and Distribution Expenses

• Salary and Wages …………………………………………....……..9

• Turnover Per Annum ……………………………………….....…10

• Share Capital…………………………………………………….....11
Equity Capital
Preference Share Capital

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• Annexure 1 :: Cost of Project and Means of Finance

• Annexure 2 :: Profitability and Net Cash Accruals

 Revenue/Income/Realisation
 Expenses/Cost of Products/Services/Items
 Gross Profit
 Financial Charges
 Total Cost of Sales
 Net Profit After Taxes
 Net Cash Accruals

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• Annexure 3 :: Assessment of Working Capital requirements

 Current Assets
 Gross Working Capital
 Current Liabilities
 Net Working Capital
 Working Note for Calculation of Work-in-process

• Annexure 4 :: Sources and Disposition of Funds

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• Annexure 5 :: Projected Balance Sheets

 ROI (Average of Fixed Assets)


 RONW (Average of Share Capital)
 ROI (Average of Total Assets)

• Annexure 6 :: Profitability Ratios

 D.S.C.R
 Earnings Per Share (EPS)
 Debt Equity Ratio

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• Annexure 7 :: Break-Even Analysis

 Variable Cost & Expenses


 Semi-Variable/Semi-Fixed Expenses
 Profit Volume Ratio (PVR)
 Fixed Expenses / Cost
 B.E.P

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• Annexure 8 to 11 :: Sensitivity Analysis-Price/Volume

 Resultant N.P.B.T
 Resultant D.S.C.R
 Resultant PV Ratio
 Resultant DER
 Resultant ROI
 Resultant BEP

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• Annexure 12 :: Shareholding Pattern and Stake Status
 Equity Capital
 Preference Share Capital
• Annexure 13 :: Quantitative Details-Output/Sales/Stocks
 Determined Capacity P.A of Products/Services
 Achievable Efficiency/Yield % of Products/Services/Items
 Net Usable Load/Capacity of Products/Services/Items
 Expected Sales/ Revenue/ Income of Products/ Services/
Items

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• Annexure 14 :: Product wise Domestic Sales
Realisation

• Annexure 15 :: Total Raw Material Cost

• Annexure 16 :: Raw Material Cost per unit

• Annexure 17 :: Total Lab & ETP Chemical Cost

• Annexure 18 :: Consumables, Store etc.


• Annexure 19 :: Packing Material Cost

• Annexure 20 :: Packing Material Cost Per Unit

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• Annexure 21 :: Employees Expenses

• Annexure 22 :: Fuel Expenses

• Annexure 23 :: Power/Electricity Expenses

• Annexure 24 :: Royalty & Other Charges

• Annexure 25 :: Repairs & Maintenance Expenses

• Annexure 26 :: Other Manufacturing Expenses


• Annexure 27 :: Administration Expenses

• Annexure 28 :: Selling Expenses

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• Annexure 29 :: Depreciation Charges – as per Books (Total)
• Annexure 30 :: Depreciation Charges – as per Books (P &
M)
• Annexure 31 :: Depreciation Charges - as per IT Act WDV
(Total)
• Annexure 32 :: Depreciation Charges - as per IT Act WDV
(P & M)
• Annexure 33 :: Interest and Repayment - Term Loans
• Annexure 34 :: Tax on Profits
• Annexure 35 :: Projected Pay-Back Period and IRR

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identifying the target customer group of the product

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Scope of the Report
The report titled “Market Survey cum Detailed Techno Economic
Feasibility Report on Polyvinyl Alcohol (PVA).” provides an insight
into Polyvinyl Alcohol (PVA) market in India with focus on uses and
applications, Manufacturing Process, Process Flow Sheets, Plant
Layout and Project Financials of Polyvinyl Alcohol (PVA) project.
The report assesses the market sizing and growth of the Indian
Polyvinyl Alcohol (PVA) Industry. While expanding a current
business or while venturing into new business, entrepreneurs are
often faced with the dilemma of zeroing in on a suitable
product/line. And before diversifying/venturing into any product,
they wish to study the following aspects of the identified product:

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• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period

We at NPCS, through our reliable expertise in the project


consultancy and market research field, have demystified the
situation by putting forward the emerging business opportunity
in the Polyvinyl Alcohol (PVA) sector in India along with its
business prospects. Through this report we have identified
Polyvinyl Alcohol (PVA) project as a lucrative investment
avenue.

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Niir Project Consultancy Services (NPCS)
can provide Detailed Project Report on
Polyvinyl Alcohol (PVA) Manufacturing
Industry.
The Global Polyvinyl Alcohol (PVA)
Market is expected to Reach USD 1.21
Billion by 2025

See more
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https://goo.gl/wQUsM1

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