Detailed Project Report Overhead LLDPE Water Storage Tanks Unit

Detailed Project Report
Overhead LLDPE Water Storage Tanks Unit
NS-20, Industrial Area,

Jasidih, Deoghar,
Jharkhand, 814 142
Prepared by
Neeraj Singh
Bhanu Sadan, # 2, Anupam Greens,
Sikandra-Bodla Road, Sikandra,
Agra, UP, 282007
+91-99291-37131
HI-TECH INDUSTRIES – DPR LLDPE Roto Moulded Water Storage Unit
TABLE OF CONTENTS
PROJECT AT A GLANCE ...................................................................................................................................... 3
EXECUTIVE SUMMARY ...................................................................................................................................... 5
INTRODUCTION – INDIAN ROTOMOULDING INDUSTRY ................................................................................... 8
GROWTH OPPORTUNITIES FOR THE INDIAN ROTOMOULDING INDUSTRY ...................................................... 9
INDUSTRY & PRODUCT OUTLINE .................................................................................................................... 12
PROPOSED PRODUCT, ADVANTAGES & APPLICATION ................................................................................... 17
THE PROCESSES ............................................................................................................................................... 18
PLANT AND MACHINERY ................................................................................................................................. 24
POLLUTION CONTROL MEASURES .................................................................................................................. 25
AVAILABILITY OF INPUTS................................................................................................................................. 26
DEMAND POTENTIAL & MARKETING .............................................................................................................. 28
SOCIO - ECONOMIC AIMS & OBJECTIVES ........................................................................................................ 29
PROJECT FINANCIALS & ESTIMATION OF COST .............................................................................................. 34
ASSUMPTIONS ................................................................................................................................................ 36
SWOT ANALYSIS .............................................................................................................................................. 38
Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 2 of 38

PROJECT AT A GLANCE
1. Name of the unit HI-TECH INDUSTRIES
3. Factory Location NS-20, Industrial Area, Jasidih, Dist. Deoghar,

Jharkhand
4. Product Mix OVERHEAD LLDPE ROTO MOULDED WATER

STORAGE TANKS UNIT
5. Installed Capacity 13,500 KLPA
6. Project cost 122.86 (Rs. In Lakh)
Proposed in ₹ Lakh
LEASE HOLD LAND FROM SPIADA 6.00

i.
BUILDING & FACTORY SHED 30.00

ii.
PLANT & MACHINERY 44.11

iii.
ELECTRIC INSTALLATION 5.20

iv.
MARGIN FOR WORKING CAPITAL 9.39

v.
TOTAL 94.70

Means of Finance In Rs. Lakh
i Share Capital 23.82
ii. Term Loan 70.88
iii. Cash Credit Limit to meet Working Capital requirement 28.16
l TOTAL 122.86
Non Fund Based Limit Required: (in Lakh)
Letter of Credit : 20.00
Bank Guarantee : 20.00

EXECUTIVE SUMMARY
Companies Profile:
Name HI-TECH INDUSTRIES
Office & Factory Location NS-20, Industrial Area, Jasidih, Dist. Deoghar, Jharkhand
Product Mix PET BOTTLE/ JAR & OVERHEAD LLDPE WATER STORAGE TANKS
UNIT
Installed Capacity 13,500 KLPA
Ownership and Management:
M/s HI-TECH INDUSTRIES is a proprietorship venture invoked at Jasidih, Deoghar, Jharkhand with
main objective of setting up of Pet Bottle/ Jar & Overhead LLDPE Water Storage Tanks
manufacturing unit drawing on the expertise of Mrs. Priyanka Tekriwal and Mr. Rajiv Tekriwal
who have been long involved in family agriculture
business at Godda, Jharkhand.
The buoyant market conditions with increased

Governmental spending on infrastructure after
roaring success of Global Investor Summit –
Jharkhand extends ample business opportunities
for setting up of a water storage tank
manufacturing unit.

Promoter
Mrs. Priyanka Tekriwal
Name : Mrs. Priyanka Tekriwal
Qualification : Graduate
Present Activity : Actively engaged in Family’s Agriculture Business of

managing the agriculture land, mango plantation,
marketing of mangoes along with trading of food
grains.
Total Experience : 10 Yrs
Responsibilities in Proposed Project : Marketing & Sales
Mr. Rajeev Tekriwal aged about 38 years is a commerce graduate and has an overall experience
of 10 years in Abrasives Industry. He gained extensive knowledge in the process of setting up the
new unit. Further, he has been worked with the large players in Abrasive Industry as production
manager for last 05 years.
He is specialized in erection, installation and

functioning of abrasive industries and have an
enviable record in this field. He is inducted into
the Board in view of his track record to utilize his
experience and capacities.
He shall be responsible for the day to day

operations of our proposed project. He provides
strategic direction to the Company and is the
brain behind the idea of diversification of the
business.
He will provide the requisite insight to the project implementation program so as to implement
the same within the defined time and cost constraints.

He shall also looks after some of the marketing aspects of the company. He is involved in
managing the marketing team, handling and managing buyers, suppliers, job – workers/ sub
contractors and raw material suppliers.
He is a young dynamic visionary entrepreneur and handles various roles and responsibilities of
the Group and drives the organization with right blend of youthful wisdom and zeal. His vast and
rich experience, consistent with Production strategy will provide operational excellence to the
Company and a capability to drive innovation.
His responsibilities in this project as Director of the Plant would be to look into day today
Production, Finance & Accounts and Market development of the Proposed Project.
Name : Rajeev Tekriwal
Qualification : B.Com
Present Activity : Worked as Production Manager
Total Experience : 10 Yrs
Responsibilities in Proposed Project : Finance
In addition to all the above positives, the promoters are locally based and have excellent rapport
with the District and state government authorities, who are extending their full co-operation and
assistance to encourage up-coming Industrial units in the state.
Mr. Neeraj Singh aged about 42 Years will hold the profile of General Manager. He will be the
main force behind production & plant facilities of the proposed project. He will head the
production & plant facilities and brings his experience of 22 plus years in industry and holds
Bachelor’s Degree in Science with MBA in International Business & Marketing from Symbiosis
Institute of Management Studies, Pune along with PG Diploma in Foreign Trade Management
from the Institute of Export Management, Kolkata.
Acknowledgement
We wish to express sincere gratitude to the management of M/s Hi-tech Industries for the
confidence reposed in entrusting this valued assignment and for spontaneous and timely
cooperation by their Management and Officials in preparation of this Feasibility Report.

INTRODUCTION – INDIAN ROTOMOULDING INDUSTRY

Indian Rotomoulding Industry started in early 70’s with a focus on water tanks and containers.
Rotomoulded water tanks became extremely popular due to their light weight, durability,
hygienic & easy installation and maintenance, easy availability, and low cost. Since then, the
industry has grown by leaps and bounds, both in number of rotomoulders and plastic
consumption. Today, there are more than 200 rotomoulders spread across the country
consuming around 70 KTA of different grades of polymers. The annual growth rate of the industry
is around 20% and this robust growth is likely to continue in the years to come.
Water tanks have traditionally been the main product segment for the Indian Rotomoulding
Industry and more than 95% of rotomoulders depend on this segment. Today, water tanks
constitute 80% of the market share and would continue to be the major segment due to scarcity
of water and increasing building and construction activities in the country. This market segment
will continue to have very good growth rate and higher volumes.
With increased awareness and access to the global market, many of the rotomoulders have
started venturing into custom made/industrial products like fuel tanks, chemical tanks, material
handling products, solid waste management products, etc. These products – though they are at a
nascent stage – will register higher growth rates. Awareness within Indian design community
about the process and products is fast growing, and this will fuel further growth in the industry,
as new and innovative design products are developed.
Presently, the Indian Rotomoulding Industry uses fabricated sheet metal/stainless steel moulds
since the tanks have been the main product segment. Rotomoulders have extended their
knowledge of sheet metal fabrication to newer products. The development of casting technology
and usage of cast/CNC machined aluminum moulds is still at the infancy. The industry has to
invest in technology for casting/CNC machining. Also mould-in or mouldon graphics in
rotomoulded products have neither been used nor developed.
Indian rotomoulding industry is going through structural changes in terms of material

development, technological advancement in machines, processes, moulds and new market
segments.

GROWTH OPPORTUNITIES FOR THE INDIAN ROTOMOULDING

INDUSTRY
Rotational moulding provides a means of producing polyethylene articles of a size and shape that
cannot be manufactured economically in any other way, and is particularly suited for relatively
large, hollow, seamless parts. Such articles include large industrial chemical or agricultural tanks,
shipping containers, marine floats, traffic bollards, canoes and small boats, rocking horses, pedal
cars – indeed almost any hollow, enclosed or open-ended shape.
Rotomoulding is one of the fastest growing sectors and its developmental activities are highest in
emerging markets like Asia, and particularly in India. The Indian economy, which is growing at a
fast pace, is opening up new avenues for the Rotomoulding Industry. The growing government
emphasis on development of infrastructure, agriculture, health and sanitation, building and
construction, etc. apart from
growth sectors like automotive, Agriculture
• Advanced Agricultural
white goods, retail, petrol technology
• Distribution channels
stations, recreation, marine • Refrigerated storage
industry, etc., will generate

tremendous growth potential
Infrastructure Plastic Other growth areas
and opportunities for
• Building & Construction Demand • Automotive/Appliances
• Medical/personal care
Rotomoulding Industry. • Public utilities services Growth • Industrial/rigid
• Mega highway projects
Drivers packaging
Infrastructure is a key driver for

the Indian economy. This
segment is highly responsible Packaging Industry
• Food/Processed food
for pushing India's overall • FMCG items
• Packaged & fast food
industry
development and enjoys focus
from government for policies, ensuring timely creation of world class infrastructure. India's focus
on infrastructure over the last decade made the country the second fastest growing economy in
the world. As per the 12th Five Year Plan, India had committed USD 1 trillion in upgrading its
ageing infrastructure like Power, Telecom, Roads, Irrigation, Railways, Oil& Gas and others. The
Reserve Bank of India (RBI) has notified 100% foreign direct investment (FDI) under automatic
route in the construction development sector. The new limit came into effect in December 2014.

The Government of India has relaxed rules for FDI in the construction sector by reducing
minimum built-up area as well as capital requirement. It has also liberalised the exit norms. In
fact, the Cabinet has also approved the proposal to amend the FDI policy.
The Indian Rotomoulding Industry is at an exciting stage with the development of a wide range of
products including automotive components like bumpers, crash guards, air ducts, engine covers,
three-wheeler bodies, seating systems, septic systems, underground tanks, manholes, garbage
bins, portable toilets, public utilities, traffic & safety barriers, retail products like point of sale/
point of purchase, kiosks, indoor and outdoor furniture, decorative products, etc.
Easy availability of raw material, technical support from local material manufacturers, access to
the global information system will give further impetus to the growth of the Rotomoulding
Industry in India.
Some of the Jharkhand Industrial Development Policy initiative that are currently favourable for
implementation of the project are briefly stated below;
 Devipur Industrial Estate at Deoghar district has area of 547 acres. Appropriate budget
provisions will be made for the development of this industrial estate.
 Existing air strip in Deoghar, Palamu, Dhanbad, etc. shall be developed for the operation
of Air taxis, Air ambulance and private jet operations etc.
 Efforts will be made for installation of ULMP at Hazaribagh and Deoghar districts at the
earliest Efforts will be made for operationalisation of already constructed power plants
which have not started production due to de-allocation of coal blocks.
 Steel Utensils Cluster and Agriculture Equipment Cluster, Deoghar
 Deoghar Pera and Allied Cluster, Deoghar
 All six districts of Santhal Pargana i.e. Deoghar, Dumka, Gooda, Sahebganj, Jamtara and
Pakur will be covered under this Mega Handloom cluster. DPR of the said Mega cluster
with total project cost of Rs. 83.19 crore (with GoI’s share of Rs. 69.99 crore and
remaining Rs. 13.20 crore by SPV/beneficiary/State Govt.) has been approved by PAMC.
About 25000 handlooms will become functional at the end of fifth year of project and
this will help more than 1,00,000 weavers.
 Oil Mills, Glass, Steel, Aromatic-Medicinal Plant, Medicine, Coal based power plants, silk-
textile, food and feed processing industries

 The government's open duct policy for the telecom industry will be the first in India and
will be one of the major consumers of PVC Ducts. The pilot project is set to be rolled out
in Deoghar in Jharkhand.
 The 11 member ministerial council led by chief minister Raghubar Das approved the
formation of the SPV (Jharkhand Plastic Park Limited) and cleared the deck for setting up
a plastic park in Debipur block in Deoghar district. A financial approval of Rs 120 crore
was given for the same on 02August 2016.

INDUSTRY & PRODUCT OUTLINE

Rotational molding – also referred to as rotomolding or rotational casting – is one of the fastest
growing plastics processing methods today.
It’s easy to see why. Rotational molding techniques – coupled with polyolefin powders – can be
used to make hollow items of any size, open or closed, and of any desired shape.
In recent years, rotomolding techniques have been developed extensively. On the production
line, this process can now compete with or outperform blow molding, injection molding and
thermoforming. In many cases, pieces virtually impossible to fabricate by any other processes can
be produced by rotomolding.
Rotational molding was first developed early in the 20th century. But it wasn’t until the early
1960s, with polyolefin resins, that rotomolding gained wide acceptance. Within a few years, the
development of low and high density polyethylene specifically designed for rotomolding enabled
rotational molders to enter markets where vinyl parts and processes could not compete. In the
early 1970s, crosslinkable and modified polyethylene grades made their way into the rotational
molding market.
These new resins again opened up more new market areas, especially production of large tanks.
Linear low density polyethylene for rotomolding was developed in the late 1970s, while the
1980s brought a surge of non-polyethyl-ene resins, including nylon, polypropylene and
polycarbonate for rotomolding.
The main difference between rotational molding and other plastics molding techniques, such as
blow and injection molding, are as follows:
 resin powder is used instead of pellets;
 the resin melts in the molds instead of being forced under pressure into the molds in a
molten state;
 the mold has a biaxial rotation;
 rotomolding molds are less expensive because of their simplicity;
 and operating pressures are relatively low, allowing molds to be made from less
expensive materials.

In rotational molding, rigid, resilient hollow bodies are formed by powdered plastic material in
heated molds, which are rotated simultaneously in two planes perpendicular to each other.
The plastic particles make contact and melt on the inner surfaces of the hot molds and fuse in
layers until all the powder is fused and the desired end product and wall thickness is obtained.
The wall thickness is controlled by the amount of powder placed in the mold.
Rotationally molded pieces are stress-free except for slight shrinkage forces because the pieces
are produced without any external pressure. Additionally, there is practically no scrap in
rotational molding.
The uniformity of wall thickness can be maintained to within ±10 percent, which is better than
that normally possible with the blow molding process. Wall thicknesses can range from 1/32 inch
to 1 inch (0.8mm to 25mm). Most resins used in rotational molding are powders ground to 35
mesh and ranging in diameter from 74 microns to 2000 microns.
Polyethylene (PE) is the most largely used plastic raw-material by Indian industry. Its demand has
grown at 8% CAGR in last 5 years to reach ~3.6 MnTPA in FY13. Polypropylene (PP) is the second
largest with consumption growing from 1.8 MnTPA in FY08 to 2.1 MnTPA in FY13 at a growth rate
of 2% p.a. Polyvinyl Chloride (PVC) demand has grown at 10% p.a. from 1.2 MnTPA to 2.1 MnTPA
in FY13. Poly-Styrene (PS) has observed a slower growth rate of 3% p.a. to reach ~250,000 TPA in
FY13, while other (PC/ ABS etc.) have grown at 7% p.a. from 94,000 TPA to 141,000 TPA in FY13.
To manufacture finished products, polymers are processed through various types of techniques
namely extrusion, injection moulding, blow moulding and roto moulding. Various products
manufactured through these processes are highlighted in the following table
Classification of plastic products by type of process
Films and Sheets, Fibre and Filaments Pipes, Conduits and profiles,
Extrusion
Miscellaneous applications
Injection Industrial Injection Moulding, Household Injection Moulding and

Plastic
moulding Thermo- ware/ Moulded luggage
products
Blow moulding Bottles, containers, Toys and Housewares
Roto moulding Large circular tanks such as water tanks

Extrusion process is the most commonly used process in India and accounts for ~ 60 % of total
consumption by downstream plastic processing industries. Injection moulding is the other
popular process accounting for ~ 25 % of the consumption. Blow moulding is used for ~ 5 % while
Rotomoulding 1 % while the rest of the plastic is processed through other processes. Though
Roto Moulding accounts for Demand breakup of plastics by types, Fy13
about 1 % of the plastic 2% 5%

LDPE
24% 18%
consumption in India it opens a LLDPE
rather crucial market place not HDPE
PS
catered to by many players. The
PVC
water tank market is the critical 20%
PP
component of the construction 28%
Others
3%
industry and households. Source: Chemicals & Petrochemical Statistics, Analysis by Tata Strategic
The market snapshot prepared by Plast India Foundation and quoted here throws light on the
roto moulding scenario.
Roto Moulded Plastic water Storage Tanks are

made from Linear Low Density
Polyethylene/Low Density Polyethylene. These
tanks are light in weight, therefore, it is easy to
fix them at the place of choice. These tanks
require no painting, no water proofing since
Polythene is 100%
resistant to water
and salt corrosion. In
rotational moulding
product is formed
inside a closed mould
rotating biaxially in
two plains
perpendicular to
each other. In batch
type-rock-N- Roll type Rotational Moulding machines; frame of the machine is turned in a
primary axis while mould is rotated in secondary axis.

SPECIFICATIONS:
Roto Moulded
Tanks are
manufactured as
per IS: 12701-1996
(Reaffirmed 2006).
This standard
covers the
requirements of
materials
dimensions, construction shape, tolerances on dimensions, fittings workmanship, performance
requirements and inspection and testing of rotational moulded polythene water shortage tanks.
This standard is applicable only to water storage tanks subjected to the following two conditions:
 Own hydrostatic head of water.
 Tank with uniform flat base support.
The internal and external surface of the water storage tank should be smooth clean and free from
other hidden internal defects, such as air bubbles, pits and metallic or other foreign material
inclusions. The mould parting line and excess material near the top rim of the tank shall be cut
and finished to the required level. Defects like air bubbles and pits at mould parting line and at
top rim of main man-hole shall be repaired by hot air filler rod welding method.
THE LIST OF APPLICABLE STANDARDS IS LISTED BELOW;
Indian Standard: IS 12701 : 1996 (First Revision)
ROTATIONAL MOULDED POLYETHYLENE WATER STORAGE TANKS – SPECIFICATION
1 SCOPE
1.1 This standard covers the requirements of materials, dimensions construction, shape, workmanship,
performance requirements and inspection and testing of rotational moulded polyethylene water storage
tanks with a nominal service temperature from +1°C to +50°C
1.1.1 These tanks are not meant for underground applications.
1.2 This standard is applicable only to water storage tanks subjected to the following two conditions:
a) Own hydrostatic head of water, and

b) Tank with uniform flat base support.
1.3 This standard does not cover mobile water tanks and horizontal cylindrical water tanks.
2 REFERENCES
2.1 The Indian Standards listed below are necessary adjuncts to this standard.
IS No. Title
554:1985 Dimensions for pipe threads where pressure-tight joints are required on threads (
third revision)
1879:1987 Malleable cast iron pipe fittings ( second revision )
2530:1963 Methods of test for polyethylene moulding materials and poly-ethylene compounds
4905:1968 Methods for random sampling
7328:1992 High density polyethylene materials for moulding and extrusion
8543 (Part 4/Sec Methods of testing plastics : Part 4 Short term mechanical properties, Section 1
1): 1984 Determination of tensile properties
9845:1986 Methods of analysis for the determination of specific and/or overall migration of
constituents of plastic materials and articles intended to come into contact with
foodstuffs ( first revision )
10141:1982 Positive list of constituents of polyethylene in contact with foodstuffs, pharmaceuticals

and drinking water
10146:1982 Polyethylene for its safe use in contact with foodstuffs, pharmaceuticals and drinking
water
13360 (Part Plastics - Methods of testing: Part 5 Mechanical properties, Section 7 Determination of
5/Sec 7):1995 flexural properties
Field investigations have revealed that due to increase in the house building activities and
preference given by the Government to provide homes to the homeless people, the demand for
plastic water storage tanks is likely to increase in the years to come. Hence there is good scope
for establishing a few units for the manufacture of water storage tanks by Roto Moulding
process.
PROPOSED PRODUCT, ADVANTAGES & APPLICATION

The Roto Moulded water storage tanks provide extend both uility and production advantages
over other types of tanks and production methods. Some are being discussed herewith for beter
understanding;
 Because rotational moulding does not involve any injection pressure, high shear rates,
this process offers certain basic advantages over other processes and techniques of
plastic processing.
 Complex parts can be moulded without need for past assembly.
 Low machinery cost relative to production capacity.
 Double walled items can be produced.
 Ease of colour and material change.
 Multiple product and multi colours can be moulded at the same time.
 Minimum wastages
 High production capacity on selected parts.
 Production design freedom.
These tanks keep water clean, odour free and maintain the quality of water stores intact. These
tanks are economical, practical and hygienic alternative of storing portable water in single or
multi storied residential units, industrial set-ups, commercial establishments and sites
everywhere under the sun. These tanks are becoming increasingly popular in Indian and have
caught the eyes of many users for their requirement of storing water for domestic and other
purposes. These tanks are also used in hostels, hospitals, schools, cinema houses and
construction sites.
Roto-Moulded Plastic Water Storage Tanks being lighter in weight are easy in handling and can be
easily fitted at any desired place, and are hence preferred and practically replacing the
conventional tanks of steel, cement concrete or stone. These tanks are available in market in
various sizes and shapes. The prices of these tanks are at the rate of ₹ 4 per liter of water capacity
approximately. The demand of plastic water storage tanks is increasing day by day. They are not
only installed in the individual houses and flats but are fitted in factories, group housing schemes
and multi-stories buildings as well.

THE PROCESSES
Brief
The LLDPE granules are mixed with granules of black colour concentrates. These are extruded and strands
are chopped as granules so as to achieve uniform distribution of carbon black. The granules are pulverized
in a special pulverization system to 30 to 40 mesh powder. This powder is fed in the mould in the required
quantity. The burners of the Roto Moulding Machine are fired with help of LPG or Diesel and the moulds
are heated to 300°C to 350°C. Molten powder when rotated in the heated moulds form hollow storage
tank. After proper time when the tank is ready, the mould is cooled and opened and the tank is taken out.
Finishing of the tanks is done manually.
Rotational Molding and Blow Molding
Rotational Molding
The rotational molding is a high temperature and low pressure plastic forming process. The
powder is inserted into the closed split mold and rotated in biaxial to produce a hollow part. The
schematic of rotational molding process is shown in figure below.
Working Principle
The plastic material in the form of powder is inserted into the mold. The mold is heated in an
oven and rotated biaxial until the powder has melted. The molten powder is adhered to the mold
wall and makes a thin layer. The mold is opened and finished part is removed.
The mold is rotated at different speeds in order

to avoid the accumulation of molten powder.
The amount of time required to heat the
powder at molten temperature in to the oven is
important. If the oven is heated for long time,
powder will degrade and it will affect the
mechanical properties. If the mold is heated
short time, the powder may not be completely
melted, resulting in large bubbles in the
powder. The formed part must be cooled
FIGURE 1-NROTATIONAL
Author: EERAJ SINGHMOLDING Date of Print: 9/26/2019 9:36:00 PM Page 18 of 38
through the air so that it solidifies slowly. The formed part will shrink on cooling, and facilitating
easy removal of part. The cooling rate must be kept within a certain range. The water cooling
should be avoided, because formed part may shrink and warped after cooling.
A mold release agent should be used to quickly remove the formed part. Mold release can reduce
cycle times and defects of finished product. Three different types of mold release agent may be
used i.e. sacrificial coating (silicones), semi-permanent coating, (polysiloxane), and permanent
coating (polytetrafluoroethylene).
DIAGRAMMATIC PRESENTATION OF THE MATERIAL FLOW IN BLOW MOULDING
Process Parameters
Receipt of Raw Testing of Raw Storage of Raw
Material Material Material
• The amount of
powder
Heating the Mould • Heating temperature

over LPG/ Diesel Feeding the Mix to
Cooling the Mould
Burners while the Mould and time
rotating on bi-axises
• Rotational speeds
• Cooling rates
Removal of the Quenching/ Cooling
Inspection for defects
Product of the Product
Material Used
Thermosets and thermoplastic

Storing of finished
tanks according to Repair of the defects
material can be used, for
Wraping of the Tank
the specifications & or rejection
Size example: low density
polyethylene (LDPE), high
density polyethylene (HDPE),
Dispatch polypropylene, and polyvinyl
chloride (PVC).
Applications
Additives for weather resistance, flame retardation can be incorporated. Products that can be
manufactured include storage tanks, bins and refuse containers, airplane parts, road cones,
footballs, helmets, and rowing boats.
Advantages
• Allows complex mold split lines.

• Allows molded threads and mold-in inserts.
• Allows a wide range of surface finishes (textured, smooth, or polished).
• Very little waste.
• Low residual stresses
• Tooling is less expensive
• Suitable for both low-volume prototypes and high-volume production runs
Disadvantages
• Slow production speed. It usually takes about one hour to complete the process
• Lower precision
Machining of Plastics
Most of the finished plastic products are produced directly by molding processes. But some of
the complex plastic products that can’t be directly manufactured by the molding process and
require finishing operations to give final shape, to improve dimensional accuracy and final finish.
The life cycle of plastic products are very short, and if limited numbers of plastic product are
molded for specific application then machining becomes more economical. All plastic materials
(thermosets and thermoplastic) can’t be machined, because some of the plastic materials are soft
and flexible in nature. The machining of plastic material depends on the two factors i.e. cutting
tool material and rigidity of the material being cut. The machining of plastics is different from
metal due to its rigidity. The rigid plastic materials can be machined easier; but more flexible and
softer plastic materials are very difficult to machine. The softer and flexible plastic materials can
also be machined with the application of specially designed jigs and fixtures.
It is well known that the plastics have lower thermal conductivity therefore heat generated
during machining can’t dissipate quickly. At higher machining speed, plastic may soften due to
heat induced during machining and the machined surfaces may get smeared. Therefore, cooling
medium (air or lubricant) is required during the machining. Generally, compressed air is used for
machining of plastics. Because lubricant or liquid coolant may react with the plastic material
during machining and it can degrade the mechanical properties or surface quality. A strong jet of
compressed air or coolant serves three purposes i.e. it cools the workpiece as well as cutting tool,
it helps to remove chips quickly and improves the surface finish of machined surface.
An important point is to be noted that while the machining of thermoplastics produces

continuous swarf, but thermosets produce chips form. The chips are always removed rapidly in
order to carry away as much heat from the surface as possible.
The high speed steel (HSS), carbon steel, and carbide tool materials are commonly used for
machining of plastic materials. Machining with carbide tool may improve the surface finish of
plastic product. A large number of machining methods (such as turning, drilling, milling, threading
and tapping, sawing, and grinding) can be used for plastics which have been discussed as follow:
Drilling: All types of hard plastic material can be drilled. Generally, standard twist drill is used for
drilling of plastics. During drilling of thermosets, cracking around inlet and exit hole edges are
common. Moreover, higher drill point angle induces more stress along thickness direction as
compared with lower drill point angle. Therefore, especially designed twist drill (drill point angle
may be varies from 60˚ to 90˚, and rake angle 0˚) should be used for drilling of plastics. The heat
generated by the drill causes the thermoplastic to expand and shrink up on cooling. Hence, to
maintain the drilled hole sizes, allowance has to be made in drill sizes (0.002 to 0.16 mm
depending upon the drill size). The operating variables (feed rate and cutting speed) should be
high so that the material can be easily drilled and chips are removed quickly. Drilling forces
(thrust force and torque) slightly decrease as the cutting speed increases. At higher cutting speed,
surface finish will improve. Drilling with carbide tool materials gives better surface finish. While
drilling with thick sheet (thickness 3 times greater than drill diameter), cooling air or lubricant
should be used.
Reaming: It can be carried out after drilling or boring operation to provide both accuracy and
good surface finish. Generally, spiral-fluted reamers are used. The reaming can be done dry, but
use of water coolants will improve the surface finish. Standard cooling oils or lubricants should be
avoided.
Threading and Tapping: Threading should be done using single point with carbide insert. The
coarse series of threads should be used because less frictional heat will be generated. Tapping is
the process of cutting internal threads. The tapping speed should be low. It is also recommended
that oversized tapes should be used because of elastic recovery of plastic materials. Coolant may
be used for both threading and tapping operations.
Sawing: Band saw and circular saw with buttress thread or widely spaced thread should be used
in order to easy removal of chips. The speed of the saw blade should be used in the range of 300
to 900 m/min for better cut. Feed rate should be high. It should also minimize the friction
between the saw blade and the work, and even blocking of the saw. A clamping fixture should be
used in order to avoid vibrations and consequent rough cutting or even rupture. Tungsten
carbide saw blades provide an optimum surface finish.
Turning: Turning speed should be in the range of 90 to 180 m/min and low feed rate should be
preferred. Fine grained C-2 carbide tool is generally used for turning operations. Sharp tool bits
with 10 to 15˚ clearance angles and 10 to 20˚ positive rake angles should be used for better
operations.
Milling: Two flute end mills, face mills and shell mills with inserts as well as fly cutters can be
used. Down-milling is normally recommended to reduce heat by dissipating it into the chip. Fast
table travel and high spindle speed will improve the surface finish, but low travel speed will
generate excessive heat that can cause melting. Fixtures should be used for providing adequate
support to the workpiece. Mist type water cooling is recommended.
Grinding: It is rather difficult to grind the thermoplastics due to high amount of heat generated
and it results in the clogging of the abrasive wheel. A low grade grinding wheel with open grain
spacing with the application of coolant should be used. Generally, hard materials are better
ground with finer grit size wheels and soft materials are better suited for grinding with coarse grit
wheels. The wheel specification, 54 and 46 grits are recommended for thermosets and
thermoplastics, respectively.
Advantages
• Plastic product can be manufactured with short lead times
• Ability to manufacture low volumes economically
• Thicker wall sections can be machined
• Heavy molded plastic can be machined
• The power required to machine plastics are low
• Chips can be recycled
Disadvantages
• Soft and flexible plastic can’t be machined easily
• Relative high cost of block plastic material

• High volume of chips to be removed
• For increase in production by machining will require robust jigs and fixtures
• Heat generated in the machining process can’t dissipated quickly
• Dust producing plastics require an effective dust collection system

PLANT AND MACHINERY

Roto Moulding
The major equipment required by the unit for manufacturing plastic water tanks are as follows:
• Biaxial rotation Moulding Plant 3 arm Moulding Machine
• Moulds
• Chain Block with stands
• Cutter machine for rejection Tank
• Heavy duty grinding machine - used for grinding scrap & rejects
• Pulverising Machine – used for Pulverising scrap & rejects
• Weighing Machine – for batching & quality control
• Testing Equipments

POLLUTION CONTROL MEASURES

The unit does not create any pollution. However, a proper ventilation should be made in the
processing area for the better circulation of the fresh air.

AVAILABILITY OF INPUTS
Selection of the site for any project is the most important aspect for it’s successful operation and
better economic viability. The proximity to Raw material require, the condition of assured supply
of fuel and other infrastructure support, which is required to be essentially examined while
selecting the site of the plant.
For successful operations and running of any unit is very important that most of the raw
materials should be easily available, various utilities should also be easily available to the unit.
Scarcity in availability of utilities may cause equal problem in obtaining the desired production
levels. The Major Inputs required by the proposed plant are discussed as below:
Raw Material: First and Foremost requirement is of raw material i.e. LLDPE Resin (both virgin &
used) is available in Jamnagar, Mumbai, Kolkata, Patna, Kanpur & Delhi. The raw material is
available directly from the manufacturers or from the traders. As timely availability is crucial for
continuous running of the plant we will keep a mix of supplies from traders and manufacturers. It
has to be taken into account that raw material quality cannot be allowed to vary as it will have
direct impact on the stable state production process.
Utilities:
a. Power: The Unit shall require 11 KV, 50 KVA power for operation various machines.
Electric supply is given by Jharkhand state electricity board. On a preliminary discussion
regarding power supply for the proposed unit, they have no difficulty in allocating the
power demand.
b. Water: The plant operations and project setup activities require water for cooling
purpose only. There will be water attrition of 1000 ltr per day due to evaporation loss and
additional water will be required for other utilities. Water would be mainly required for
the following applications –
 Cooling
 Drinking
 Housekeeping

Water will be sourced from bore wells and ponds developed within the factory site including
rainwater harvesting.
c. Labour: Trained and Skilled labour force is available to achieve the production levels. Due
to the location advantage, Labour is also cheaper as compare to other part of country.

DEMAND POTENTIAL & MARKETING
The rural urban migration, post economic liberalization, has resulted rapid rise in India’s
urbanization which now stands at 31.2% whereas for Jharkhand it is 24%. The trend of migration
from rural to urban areas is likely to continue and around of 40% population of India will stay in
urban areas by 2030 whereas in Jharkhand it will be 32%.
According to a report submitted by a Technical Committee of the Ministry of Housing and Urban
Poverty Alleviation (MHUPA), Jharkhand urban housing shortage is estimated nearly 0.63 million
households in 2012. Around 96 % of the shortage constitute of Economically Weaker Section
(EWS) and Low Income Group (LIG) of the society.
All dwellings are to be provided with “Basic Urban Services / Municipal Services” like services of
drinking water supply and sanitation, drainage, sewerage, solid waste disposal and street lighting.
The external and internal developments shall include;
A) External development: External development shall include road connectivity, street lighting, water
supply, sewerage connection, solid waste management facility and public transport service.
B) Internal development: Internal development works shall include all internal roads, footpaths,
complete water supply including overhead or surface water reservoir/ distributions lines. Electric
distributions lines/ 11 KV line/ transformers etc. (if required), internal sewer lines/ drainage lines/
Nullahas (wherever required), gated compound/ street light/ parks/ adequate and proper tree
plantation in parks and in front of buildings. Rainwater harvesting structures, Solar system &
sewerage treatment plant shall be mandatory as per requirement.
All round development like above provide ample opportunities for the water storage tanks
manufacturing unit at Deoghar that presents stable industry development environs.
Further, the government sanitization schemes & policy of open defecation free country opens up
newer avenues of toilets that need a minimum of 300 ltr water tanks for water storage.

SOCIO - ECONOMIC AIMS & OBJECTIVES

Social responsibility is a voluntary effort on the part of business to take various steps to satisfy
the expectation of the different interest groups. The Proposed project is aware of its socio aim
which can be enumerated in following points:
 Public Image - The activities of business towards the welfare of the society earn goodwill
and reputation for the business. The earnings of business also depend upon the public
image of its activities. People prefer to buy products of a company that engages itself in
various social welfare programmes. Again, good public image also attracts honest and
competent employees to work with such employers.
 Government Regulation - To avoid working against the government regulations

businessmen should discharge their duties voluntarily. For example, if any business firm
pollutes the environment it will naturally come under strict government regulation,
which may ultimately force the firm to close down its business. Instead, the business firm
should engage itself in maintaining a pollution free environment.
 Survival and Growth -Every business is a part of the society. So for its survival and
growth, support from the society is very much essential. Business utilizes the available
resources like power, water, land, roads, etc. of the society. So it should be the
responsibility of every business to spend a part of its profit for the welfare of the society.
 Employee satisfaction - Besides getting good salary and working in a healthy

atmosphere, employees also expect other facilities like proper accommodation,
transportation, education and training. The employers should try to fulfill all the
expectation of the employees because employee satisfaction is directly related to
productivity and it is also required for the long-term prosperity of the organization. For
example, if business spends money on training of the employees, it will have more
efficient people to work and thus, earn more profit.
 Consumer Awareness - Now-a-days consumers have become very conscious about their
rights. They protest against the supply of inferior and harmful products by forming
different groups. This has made it obligatory for the business to protect the interest of
the consumers by providing quality products at the most competitive price.

Responsibility towards Different Interest Groups
After getting some idea about the concept and importance of social responsibility of
business let us look into the various responsibilities that a business has towards different
groups with whom it interacts. The business generally interacts with owners, investors,
employees, suppliers, customers, competitors, government and society. They are called
as interest groups because by each and every activity of business, the interest of these
groups is affected directly or indirectly.
i. Responsibility towards owners
Owners are the persons who own th

e
business. They contribute capital an
d
bear the business risks. The primary
responsibilities of business towards its
owners are to:
a. Run the business efficiently. Owners Social Responsibilities of Business
b. Proper utilization of capital and other resources.
c. Growth and appreciation of capital.
d. Regular and fair return on capital invested.
ii. Responsibility towards investors
Investors are those who provide finance by way of investment in debentures, bonds,
deposits etc. Banks, financial institutions, and investing public are all included in this
category. The responsibilities of business towards its investors are :
a. Ensuring safety of their investment,
b. Regular payment of interest,
c. Timely repayment of principal amount.
iii. Responsibility towards employees
Business needs employees or workers to work for it. These employees put their best
effort for the benefit of the business. So it is the prime responsibility of every business to
take care of the interest of their employees. If the employees are satisfied and efficient,

then only the business can be successful. The responsibilities of business towards its
employees include:
a. Timely and regular payment of wages and salaries.
b. Proper working conditions and welfare amenities.
d. Opportunity for better career prospects.
e. Job security as well as social security like facilities of provident fund,
group insurance, pension, retirement benefits, etc.
f. Better living conditions like housing, transport, canteen, crèches etc.
g. Timely training and development.
iv. Responsibility towards suppliers
Suppliers are businessmen who supply raw materials and other items required by
manufacturers and traders. Certain suppliers, called distributors, supply finished products
to the consumers. The responsibilities of business towards these suppliers are:
a. Giving regular orders for purchase of goods.
b. Dealing on fair terms and conditions.
c. Availing reasonable credit period.
d. Timely payment of dues.
v. Responsibility towards customers
No business can survive without the support of customers. As a part of the responsibility
of business towards them the business should provide the following facilities:
 Products and services must be able to take care of the needs of the
customers.
 Products and services must be qualitative
 There must be regularity in supply of goods and services
 Price of the goods and services should be reasonable and affordable.
 All the advantages and disadvantages of the product as well as procedure to use
the products must be informed do the customers.

 There must be proper after-sales service.
 Grievances of the consumers, if any, must be settled quickly.
 Unfair means like under weighing the product, adulteration, etc. must be
avoided.
vi. Responsibility towards competitors
Competitors are the other businessmen or organizations involved in a similar type of

business. Existence of competition helps the business in becoming more dynamic and
innovative so as to make itself better than its competitors. It also sometimes encourages
the business to indulge in negative activities like resorting to unfair trade practices. The
responsibilities of business towards its competitors are :
 not to offer exceptionally high sales commission to distributers, agents etc.
 not to offer to customers heavy discounts and /or free products in every sale.
 not to defame competitors through false or ambiguous advertisements.
vii. Responsibility towards government
Business activities are governed by the rules and regulations framed by the government.
The various responsibilities of business towards government are:
 Setting up units as per guidelines of government
 Payment of fees, duties and taxes regularly as well as honestly.
 Not to indulge in monopolistic and restrictive trade practices.
 Conforming to pollution control norms set up by government.
 Not to indulge in corruption through bribing and other unlawful activities.
viii. Responsibility towards society
A society consists of individuals, groups, organizations, families etc. They all are the
members of the society. They interact with each other and are also dependent on each
other in almost all activities. There exists a relationship among them, which may be direct
or indirect. Business, being a part of the society, also maintains its relationship with all
other members of the society. Thus, it has certain responsibilities towards society, which
may be as follows:

 to help the weaker and backward sections of the society
 to preserve and promote social and cultural values
 to generate employment
 to protect the environment
 to conserve natural resources and wildlife
 to promote sports and culture
 to provide assistance in the field of developmental research on education,

medical science, technology etc.

PROJECT FINANCIALS & ESTIMATION OF COST
A. COST OF PROJECT:
Total cost of project has been estimated to be around Rs. 99.00 Lacs. The following items are
including in the above cost of Project:-
Proposed in ₹ Lakh
LEASE HOLD LAND FROM SPIADA 6.00

i.
BUILDING & FACTORY SHED 30.00

ii.
PLANT & MACHINERY 44.11

iii.
ELECTRIC INSTALLATION 5.20

iv.
MARGIN FOR WORKING CAPITAL 9.39

v.
TOTAL 94.70
1. Land & Site Development.
The company had already purchased the lease rights of NS-20, Industrial Area, Jasidih,
Deoghar Jharkhand from JPIADA for an total consideration of Rs 3.56 Lakh along with
name transfer expenses of Rs. 0.50 Lakh. The site development has also been undertaken
with a cost of Rs 1.94 Lakh. Therefore the total cost for land & site development work out
to Rs 6.00 Lakh.
2. Factory Building & Civil Works:
The Factory Building consists of Main Factory Shed, Office Building, Store Room, Water
Tank and Guard room, Generator room, Labour amenities. The Total cost estimated for
Factory Building & Civil works estimated to Rs 30.00 Lakh including GST payouts. The
Company had already started civil works in the factory and major portion have been
completed.
3. Plant & Machinery & Electrical Installations:

The details of Plant & Machinery are provided in the Annexure of the Project report. The
total cost for Plant & Machinery and electrical Installation has been valued at Rs 49.31
Lakh including GST payouts.
4. Misc. Fixed Assets :
This cost head includes Computers, office furniture and equipments.
B. MEANS OF FINANCE:
The total cost of project estimated to be Rs. 122.86 Lakh. The above sum shall be financed by the
following sources.
Equity ₹ Lakh
i. Share Capital /Net Worth/ Owned Funds 23.82
TOTAL 23.82
Debt
i. Fund Based Limit Required:
Term Loan 70.88
Cash Credit 28.16
99.04
ii. Non Fund Based Limit Required: 40.00
Total Exposure with Bank 139.04

ASSUMPTIONS
 Depreciation has taken on Written down Method as per Income Tax Act.
 Interest on Loan has been taken @ 12.50 % p.a.
 Inventory for Raw Material & Finished Goods are assumed to be at 15 Days.
 Debtors Collection period is assumed to be at 7 Days.
 Creditors Repayment is assumed to be nominal as the sales is considered cash sales.
 Projected Income/ Expenses are at current market rates/ prices
 Revenue and Operating Costs are based on prevailing market rates.
 Production Capacity [expected) is based on realistic: basis and after considering normal
working days.
 Cost of factory shed, plant and machinery, and other fixed assets have been taken on
basis of Quotation/Civil Estimates at the prevailing market price. It has been presumed
that either there would be no variation in the price of capital assets during project
implementation period, or if it at all varies, the variation would be met by promoters by
bringing additional fund.
 Electric power cost has been taken on the basis of present electricity tariff of Jharkhand
State Electricity Board for industrial consumers.
 All figures are in lakh rupees if not otherwise stated.
 Sales Tax on Capital Equipment have been taken on the basis of present tariff.
 For Income Tax purpose, Depreciation rates have been taken as per Income Tax Rules,
1962 prevailing on date. Similarly Income Tax rates applicable on Company has been
taken as per Finance Act, 2015. Necessary allowances have been made for the deductions
& assumptions available to the unit.
 Interest on term loan has been taken on the basis of prevailing rate of interest.
 No accounting for inflation has been done in the projections on the premise that increase
costs will be offset by increase in revenues.

 Availability of inputs and sale of outputs have been assumed to be without state
regulations with respect to price & quantity.
 Manpower cost has been taken on the basis of cost of personnel employed in similar type
business.
 Surplus in cash flow [i.e., Inflow - Outflow] is to be used towards additional current and
fixed asset build up or as may be decided by the management in the best interest of the
company.

SWOT ANALYSIS
SWOT ANALYSIS OF THE INDUSTRY
The strengths, weaknesses, opportunities and threats for the Indian steel industry have
been listed below:
Strengths:
1. The location is better placed in terms of logistics, raw material sourcing, and
closeness to demand pockets, manpower availability and social infrastructure
2. Availability of unhindered Electric Power
3. Low labour wage rates
4. Well-qualified and experienced management and technical team.
5. Mature production base & technology
6. Promoters are well experienced
and have proven track record.
Weaknesses:
1. Small Scale of operations

2. Low productivity
3. Low R&D investments
4. High cost of debt
5. Inadequate infrastructure
Opportunities:
1. Nascent market in Santhal

Pargana region & North Bihar
2. Growing domestic demand
3. Import of low cost raw material
4. Boom in Housing & infrastructure Industry.
5. Increasing Governmental spending on urban amenities & telecom.
Threats:
1. Major players having good presence in the industry

2. Market price fluctuations of raw materials and finished goods

Detailed Project Report Overhead LLDPE Water Storage Tanks Unit

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Detailed Project Report Overhead LLDPE Water Storage Tanks Unit

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Detailed Project Report

Overhead LLDPE Water Storage Tanks Unit

NS-20, Industrial Area,

Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 2 of 38

1. Name of the unit HI-TECH INDUSTRIES

3. Factory Location NS-20, Industrial Area, Jasidih, Dist. Deoghar,

4. Product Mix OVERHEAD LLDPE ROTO MOULDED WATER

5. Installed Capacity 13,500 KLPA

6. Project cost 122.86 (Rs. In Lakh)

LEASE HOLD LAND FROM SPIADA 6.00

BUILDING & FACTORY SHED 30.00

PLANT & MACHINERY 44.11

ELECTRIC INSTALLATION 5.20

MARGIN FOR WORKING CAPITAL 9.39

Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 3 of 38

Means of Finance In Rs. Lakh

i Share Capital 23.82

ii. Term Loan 70.88

iii. Cash Credit Limit to meet Working Capital requirement 28.16

Non Fund Based Limit Required: (in Lakh)

Letter of Credit : 20.00

Bank Guarantee : 20.00

Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 4 of 38

Name HI-TECH INDUSTRIES

Installed Capacity 13,500 KLPA

Ownership and Management:

The buoyant market conditions with increased

Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 5 of 38

Mrs. Priyanka Tekriwal

Name : Mrs. Priyanka Tekriwal

Present Activity : Actively engaged in Family’s Agriculture Business of

Total Experience : 10 Yrs

Responsibilities in Proposed Project : Marketing & Sales

He is specialized in erection, installation and

He shall be responsible for the day to day

Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 6 of 38

Name : Rajeev Tekriwal

Present Activity : Worked as Production Manager

Total Experience : 10 Yrs

Responsibilities in Proposed Project : Finance

Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 7 of 38

INTRODUCTION – INDIAN ROTOMOULDING INDUSTRY

Indian rotomoulding industry is going through structural changes in terms of material

Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 8 of 38

GROWTH OPPORTUNITIES FOR THE INDIAN ROTOMOULDING

industry, etc., will generate

Infrastructure is a key driver for

Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 9 of 38

 Steel Utensils Cluster and Agriculture Equipment Cluster, Deoghar

 Deoghar Pera and Allied Cluster, Deoghar

Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 10 of 38

Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 11 of 38

INDUSTRY & PRODUCT OUTLINE

 resin powder is used instead of pellets;

 the mold has a biaxial rotation;

 rotomolding molds are less expensive because of their simplicity;

Author: NEERAJ SINGH Date of Print: 9/26/2019 9:36:00 PM Page 12 of 38

Classification of plastic products by type of process

Injection Industrial Injection Moulding, Household Injection Moulding and

Blow moulding Bottles, containers, Toys and Housewares

Roto moulding Large circular tanks such as water tanks