BIODEGRADABLE CARRY BAGS

[EIRI/EDPR/3855] J.C.: 1965XL

INTRODUCTION

Bio-plastics can be defined as plastics where part or all of the material is derived
from renewable biomass resources. For the purposes of clarity we will refer to bio-
based plastics as those made from plant-based molecular sources. The term ‘bio-
based’ must not be confused with the term ‘biodegradable’ which refers to the
natural breakdown of a material at the end of life disposal phase. Not all bio-based
polymers are biodegradable and not all biodegradable polymers are bio-based;
some biodegradable polymers only biodegrade under specific circumstances.

With the introduction of plant-based bio-PE as a ‘drop-in’ alternative to fossil-

derived PE (offering a direct replacement to its fossil based equivalent), coupled
with an increase in the production capacity of these bio-polymers, it is becoming
increasingly difficult to ignore the potential that bioplastics offer to improving the
sustainability of plastic products. They are making an impact on the wider
plastics market, in part because:

 As a result of increased demand and finite supply there is a long term

upward trend in the cost of fossil based resources. As a result demand for
bio-plastics is rising strongly year on year at a rate of 20-100%.

 The resources used to make bio-polymers are predominantly annual crops

(such as corn and sugar beet) or perennial cultures (such as cassava and
sugarcane) and as such are considered renewable.

 Bio-based plastics present a unique opportunity to reduce greenhouse gas

(GHG) emissions or even become carbon neutral.

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The production costs of sugarcane bio-ethylene across the globe are summarised
in Table. Overall the current production cost of bio-ethylene is between 1.1-2.3
times higher than the global average petrochemical ethylene, but ligno-cellulosic
bio-ethylene is expected to reduce the gap in the near future to the point where
bio-ethylene could be less expensive than fossil-based ethylene.

Table Average production cost of bio-ethylene

With regards to the cost of feedstock’s used to produce polymers the market
conditions are quite variable. Currently according to the Market Price Information
and Comparison of Price Indexes and IMF Commodity Price Forecasts for crude
oil, sugar, and cereals, the trend in the price of oil is stable to falling, based on a
growing supply of shale oil in the USA. The price of cereals is also not trending up
and the price of sugar is projected to strengthen slightly. On this basis, the trend
in the short term cost of oil-based ethylene is likely to be stable to falling, and the
trend for bio-based ethylene from sugarcane ethanol is likely to be stable to rising.

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However, large scale production of ligno-cellulosic ethanol will enable a significant
fall in the cost of bio-ethylene, but as it will take at least five years to develop and
construct such a plant, it must be considered that few will start up before 2020.
The longer term trend (10 – 20 years) is expected to see renewable sources of bio-
ethylene remain more stable and exhaustible sources of oil-ethylene follow a rising
trend as supplies dwindle. However, there is no guarantee on the predicted costs
into the future as has been shown with the impact of shale gas in recent years.

Total world petroleum-based ethylene production capacity (including oil-based

naphtha and ethane, propane and butane (natural gas liquids (NGLs)) reached
138 million tons per year (Mtpa) in 2011. The global demand for ethylene is
expected to increase at a higher rate than the gross domestic product (GDP) rate
of 3.9% through to 2020.

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 CONTENTS

INTRODUCTION
TABLE AVERAGE PRODUCTION COST OF BIO-ETHYLENE
TABLE CAPACITY AND STATUS OF KNOWN PLANTS AND PROJECTS
(BIO-PE AND BIO-E)
BIODEGRADABLE BAGS
BIOPLASTICS AND BIODEGRADABLE PLASTICS
BIOPLASTICS
BIOPOLYMER
INGREDIENTS:
BIODEGRADABLE POLYETHYLENE BAGS
INGREDIENTS:
TYPES OF BIO PLASTIC
1) STARCH BASED OR BIOBASED (HYDRODEGRADABLE)
EXAMPLES OF POLYMERS WITH WHICH STARCH IS COMMONLY USED:
2) ADDITIVE BASED (OXODEGRADABLE/PHOTODEGRADABLE):
A) PROS & CONS OF STARCH BASED TO ADDITIVE BASED FILM/BAG
COMPARISON OF PHYSICAL PROPERTIES COMPARE TO OTHER POLYMERS
THE BREAK DOWN CAUSED BY MICROORGANISM CAN BE
OF THREE DIFFERENT TYPES:
STARCH BASED PLASTICS
BACTERIA BASED PLASTICS
SOY BASED PLASTICS
CELLULOSE BASED PLASTICS
LIGNIN BASED PLASTIC
USES AND APPLICATION OF BIODEGRADABLE FILM/BAGS
COMMON MATERIALS USED FOR BIODEGRADABLE/DEGRADABLE FILM:
AVAILABLE THICKNESS
TOLERANCES:
BIODEGRADABLE/DEGRADABLE BAGS CAN BE USED FOR
ANY APPLICATION HOWEVER IT IS POPULAR FOR FOLLOWING USE:
CURRENTLY USED:
TYPES OF BAGS
POSITIVES OF USING BIODEGRADABLE BAGS AND IT’S IMPACT ON
ENVIRONMENT
REASON FOR USING BIODEGRADABLE BAGS IN INDIA
AND FUTURE IN INDIAN MARKET
MARKET OVERVIEW OF BIODEGRADABLE PLASTIC BAGS IN INDIA
OVERVIEW OF BIODEGRADABLE PLASTIC & PACKAGING
TWO MARKET SEGMENTS ARE DRIVING THE SURGE:
MARKET OVERVIEW OF BIODEGRADABLE BAGS
FUTURE OF BIODEGRADABLE PLASTICS

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BIODEGRADABLE PLASTICS WOLDWIDE
BIODEGRADABLE PLASTICS IN EGYT
BIODEGRADABLE PLASTICS APPLICATIONS WORLDWIDE
BIODEGRADABLE PLASTIC APPLICATIONS IN EGYPT
BIODEGRADABLE PLASTIC BAGS GLOBALLY
BIODEGRADABLE PLASTIC BAGS IN EGYPT
MANUFACTURERS/SUPPLIERS OF BIODEGRADABLE
CARRY BAGS/GARBAGE BAGS
OUTLINE OF MANUFACTURING PROCESS
MANUFACTURING PROCESS OF BLOWN FILM EXTRUSION
PROCESS AND BAG MAKING
PROCESS FLOW DIAGRAM
RECIPE OF PLA BIOPLASTICS
PROCESSING STEPS TO MANUFACTURE FILM & BAGS
EXTRUSION PROCESS
ELEMENTS OF BLOWN FILM
BLOW-UP RATIO (BUR)
COEXTRUSION OF BLOWN FILM
BIOPLASTICS AND BIODEGRADABLE PLASTICS
BIOPLASTICS
A RECIPE FOR PLA BIOPLASTICS
BIODEGRADABLE PLASTICS
SWOT ANALYSIS
PRINCIPLES OF PLANT LAYOUT
PLANT LOCATION FACTORS
EXPLANATION OF TERMS USED IN THE PROJECT REPORT
PROJECT IMPLEMENTATION SCHEDULES
SUPPLIERS OF RAW MATERIALS
BIODEGRADABLE GRANULES
SUPPLIERS OF PRINTING INKS
SUPPLIERS OF PACKAGING MATERIALS
SUPPLIERS OF LUBRICANTS
SUPPLIERS OF RAW MATERIALS (IMPORTED)
SUPPLIERS OF PLANT AND MACHINERY
DIE CUTTING PUNCHING MACHINE
FLEXOGRAPHIC PRINTING MACHINE
BOTTON SEALING & SIDE SEALING MACHINE
SLITTING MACHINE
LOOP HANDLE MAKING MACHINE
SUPPLIERS OF AIR COMPRESSORS
SUPPLIERS OF D.G. SETS
SUPPLIERS OF DIES
SUPPLIERS OF LABORATORY EQUIPMENTS
SUPPLIERS OF INSTRUMENTATION & PROCESS CONTROL EQUIPMENTS

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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)

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 COST ESTIMATION

Plant Capacity 800 KG/Day

Land & Building (500 sq.mt.) Rs. 73 Lac
Plant & Machinery Rs. 54 Lac
Working Capital for 2 Months Rs. 1.29 Cr
Total Capital Investment Rs. 2.66 Cr
Rate of Return 40%
Break Even Point 49%

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