PROJECT REPORT

Of

PLASTIC INJECTION
MOULDING
Name of the Firm Jai Hanuman Plastics
Name of Plastic Moulding & manufacturing
business/project
Location Industrial Area Pandaul, Madhubani 847234

Type of Organization Proprietary

(Proprietary/Partnership)
Address (with Phone, e- Add+Post=Hanumannagar Bhour Via Lohat
mail) Police Station-Pandaul
District-Madhubani
Pincode-847231
Email-
Name of the Promoter Lali Kumari

Date of Birth 05.02.1988

 PLASTIC INJECTION MOLDING

INTRODUCTION
Injection molding is a manufacturing process for producing parts by injecting
molten material into a mould. Injection moulding can be performed with a host
of materials mainly including metals (for which the process is called die-
casting), glasses, elastomers, confections, and most commonly the thermoplastic
and thermo setting polymers.

Injection molding is used to create many things such as wire spools,

packaging, bottle caps, automotive parts and components, toys, pocket combs,
some musical instruments (and parts of them), one- piece chairs and small
tables, storage containers, mechanical parts (including gears), and most other
plastic products available today. Injection moulding is the most common
modern method of manufacturing plastic parts; it is ideal for producing high
volumes of the same object.

An Injection molding machine also known as an injection press, is a

machine for manufacturing plastic products by the injection molding
process. It consists of two main parts, an injection unit and a clamping unit.

Injection molding machine molds can be fastened in either a horizontal or

vertical position. The majority of machines are horizontally oriented, but
vertical machines are used in some niche applications such as insert molding,
allowing the machine to take advantage of gravity. Some vertical machines also
do not require the mold to be fastened.
Types of Injection Molding Machine
These Machines are classified primarily by the type of driving systems they use:
hydraulic, mechanical, electrical, or hybrid

Hydraulic

Hydraulic presses have historically been the only option available to molders
until Nissei Plastic Industrial Co., LTD introduced the first all- electric injection
molding machine in 1983. Hydraulic machines, although not nearly as precise,
are the predominant type in most of the world, with the exception of Japan.
[citation needed]

Mechanical

Mechanical type machines use the toggle system for building up tonnage on the
clamp side of the machine. Tonnage is required on all machines so that the
clamp side of the machine does not open (i.e. tool half mounted on the platen)
due to the injection pressure. If the tool half opens up it will create flash in the
plastic product.

Electric

The electric press, also known as Electric Machine Technology (EMT), reduces
operation costs by cutting energy consumption and also addresses some of the
environmental concerns surrounding the hydraulic press. Electric presses have
been shown to be quieter, faster, and have a higher accuracy, however the
machines are more expensive.

Hybrid injection (sometimes referred to as "Servo-Hydraulic") molding

machines claim to take advantage of the best features of both hydraulic and
electric systems, but in actuality use almost the same amount of electricity to
operate as an electric injection molding machine depending on the
manufacturer.

Major components of Injection Molding unit Injection

Unit
Consists of three main components:

 Screw motor drive

 Reciprocating screw and barrel
 Heaters, Thermocouple, Ring plunger

Clamping unit

Consists of three main components:

 Mold
 Clamping motor drive
 Tie bars, the sender is clamped onto the edge of a workbench
Advantages of using Injection Molding Unit

There are 5 major advantages of using injection molding for manufacturing

plastic parts and components.

1. Detailed Features and Complex Geometry

The injection molds are subjected to extremely high pressure. As a result the
plastic within the molds is pressed harder against the mold compared to any
other molding process. Due to this excessively high pressure, it is possible to
add a large amount of details into the design of the part.

Furthermore, due to high pressure during the molding process, complex and
intricate shapes can easily be designed and manufactured which otherwise
would have been too complicated and expensive to manufacture.

2. High Efficiency

Once the injection molds have been designed to the customer’s specifications
and the presses pre-programmed, the actual molding process is very quick
compared to other methods of molding. Plastic injection molding process hardly
takes times and this allows more parts to be manufactured from a single mold.
The high production output rate makes plastic injection molding more cost
effective and efficient. Typically, hot-runner ejection mold systems produce
parts with more consistent quality and do so with faster cycle times, but it’s not
as easy to change colours nor can hot runners accommodate some heat-
sensitive polymers. Learn more about the key differences between hot- runner
and cold-runner systems.

3. Enhanced Strength

In plastic injection molding, it is possible to use fillers in the injection molds.

These filler reduce the density of the plastic while it being molded and also help
in adding greater strength to the part after it has been molded. In fields where
parts need to be strong and durable, plastic injection has an option that other
molding processes do not offer.

4. Ability to Use Multiple Plastic Types Simultaneously

One of the major advantages of using plastic injection molding for

manufacturing parts is the ability to use different types of plastic
simultaneously. This can be done with the help of co-injection molding, which
takes away the worry about using a specific type of plastic.

5. Automation to Save Manufacturing Costs

Plastic injection molding is an automated process. A majority of the injection

molding process is performed by machines and robotics which a sole operator
can control and manage. Automation helps to reduce manufacturing costs, as
the overheads are significantly reduced. Furthermore, with reduced labour force
the overall cost of manufacturing the parts is reduced and this cost saving can
easily be passed on to the customer.

Furthermore, automation allows for making precise and accurate injection

molds. Computer aided design (CAD) and computer aided manufacturing
(CAM) allow close tolerances during the making of the molds.

Specification of Injection Moulding Machine

Injection molding machines are typically characterized by the tonnage of the
clamp force they provide. The required clamp force is determined by the
projected area of the parts in the mold and the pressure with which the material
is injected. Therefore, a larger part will require a larger clamping force. Also,
certain materials that require high injection pressures may require higher
tonnage machines. The size of the part must also comply with other
machine specifications, such as shot capacity, clamp stroke,
minimum mold thickness, and platen size.

Injection molded parts can vary greatly in size and therefore require these
measures to cover a very large range. As a result, injection molding machines
are designed to each accommodate a small range of this larger spectrum of
values

Injection Molded Plastics Market Analysis

The global injection molded plastics market size was valued at USD
258.2 billion in 2019. It is expected to register a CAGR of 4.6% over the
forecast period. Increasing demand for plastic components from various end-use
industries including automotive, packaging, home appliances, electrical and
electronics, and medical devices is anticipated to drive the market growth.
Modern innovations to minimize the rate of faulty production have enhanced
the significance of injection molded technology in mass production of complex
plastic shapes.

Plastic Injection Molding Manufacturing Process

The Injection Moulding Process is one of the plastic based product

manufacturing process, this process utilizes a specialized machine called
injection moulding machine which is fundamentally divided into two parts
mould and injector.

Wide range of plastic product can be manufactured from this machine, for each
differently shaped product a separate mould is required, thus multiple products
of same or different material can be manufactured on same Injection Moulding
Machine by simply changing its moulds.

The raw material is plastic granules which are supplied to Injection Moulding
Machine via Hooper & Feeder arrangement along with required additives, these
raw material are mixed in a mixer usually integrated within the Machine
followed by which these granules are converted to their semi-solid state
utilizing heaters of the injection moulding machine followed by which this
semi-solid plastic is injected into the mould using screw or plunger
arrangement.

The mould is then cooled down utilizing the chiller sub-system of machine and
part is ejected out of mould by ejector pins at command of the operator, these
parts are then collected and placed in their respective bins, followed by
appropriate packaging prior to sale.

Machinery &Equipment’s required:

Different Types of Injection Molding machine based upon capacity is known as

Gram weight name like:

 70 Gram Injection Molding Machine

  300 Gram Injection Molding Machine
 3 KG Injection Molding Machine
 50 Ton Injection Molding Machine
 80 Ton Injection Molding Machine
 130 Ton Injection Molding Machine etc.

Rate of the machine is vary according to the capacity of the machine.

Name Description Cost

Plastic Injection Molding Machine 150KG 12,50,000

Sub-total 12,50,000
GST @ 18% 225000
TOTAL 14,75,000

 Injection Molding Machine is also available in the market for 300 & 500 KG
batch production and price of machine varies accordingly.
 Cost of the machine is exclusive of other transportation & installation cost.

Land &Building required:

Land required 1500-2000 Square Feet (approx.) Approximate

rent for the same is 30,000-35,000 per Month

Labour Requirement:

3-4 Manpower are required for the Injection Molding Plastic Parts
Manufacturing unit.

Includes:

1 skilled Labour

1-2Unskilled Labour 1

Helper
Raw Material Requirement for Plastic Injection Molds

Plastic Granules are required as raw material for injection molding parts
manufacturing. These granules are available in market in different colours and
types.

For example:

polyethylene (PE)

polypropylene (pp)

poly styrene (ps)

Alkathene (AT)

However, Polypropylene held the largest market share of over 36.0% in terms
of volume in 2019. This is attributed to its increasing consumption in
automotive components, household goods, and packaging applications.
Polypropylene is increasingly used for electrical connector bases and covers to
provided mechanical and electrical protection on account of its electrical
insulation properties. Other applications include battery housings and food
packaging. Polypropylene is the preferred packaging material for food
packaging as it is durable. Owing to these benefits, the segment is projected to
register a significant CAGR over the forecast period, thereby driving the overall
demand for injection molded plastics.

On an average raw material cost per KG: Rs. 70-100

Plastic Injection Molding Unit license &registration For

Proprietor:
 Obtain the GST registration.
 Additionally, Obtain the Udyog Aadhar registration.
 Fire/ Pollution Registration as required.
 Choice of a Brand Name of the product and secure the name with Trademark
if required.
Implementation Schedule

S.N. Activity Time Required

(in Months)
1 Acquisition Of premises 1
2 Construction (if Applicable) 1- 2 Months
3 Procurement & installation of Plant & Machinery 1
4 Arrangement of Finance 1
5 Requirement of required Manpower 1
Total time Required (some activities shall run 3-4 Months
concurrently)

Conclusion:
After completion of manufacturing process, product is ready to sell in the
market. Plastic Parts are used for daily routine domestic & commercial
activities. This machine can be installed with low investment at small scale and
it can be expended as per the requirement and investment size & one can earn a
good Margin of profit by doing this business.
 FINANCIAL ASSISTANCE REQUIRED

Term Loan of Rs. 17.10 lakh and Working Capital limit of Rs. 10.25 Lakhs
(in Lacs)
Own Bank
COST OF PARTICULARS Amount Contributio Financ
PROJECT n e
10.00% 90.00%
Building Civil Work
Plant & Machinery 14.75 1.48 13.28
Fixtures and Other Assets 4.25 0.43 3.83
Working capital 11.39 1.14 10.25
Total 30.39 3.04 27.35

MEANS OF PARTICULARS AMOUNT

FINANCE Own Contribution Bank 3.04
Loan 17.10
Working capital Limit 10.25

Total 30.39
COMPUTATION OF PRODUCTION OF CONTAINER

Items to be Manufactured

Container

Machine capacity per day 150 KG

machine capacity per Month 3750 KG

machine capacity per annum 45,000 KG

Raw Material

wastage 5% Of Input

Total raw material requirement 47,368 KG

Final Product

1 KG final output 10 Container

Total production per Annum 450,000 Container

Production of Container

Production Capacit Containe

y r
1st year 50% 225,000

2nd year 55% 247,500

3rd year 60% 270,000

4th year 65% 292,500
5th year 70% 315,000
Raw material Requirement

Capacity Requirement
(KG)
100%
47,368
Raw Material Cost

Year Capacity Rate Amount

Utilisation (per KG) (Rs. in

lacs)
1st year 50% 70 16.58

2nd year 55% 72 18.78

3rd year 60% 74 20.90

4th year 65% 75 23.10

5th year 70% 77 25.37

COMPUTATION OF (In Lacs)

SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year

Op Stock - 18,750 20,625 22,500 24,375

Production 225,000 247,500 270,000 292,500 315,000

Less : Closing Stock 18,750 20,625 22,500 24,375 26,250

Net Sale 206,250 245,625 268,125 290,625 313,125

sale price per
Container 20.00 20.40 20.60 20.81 21.02

Sales (in Lacs) 41.25 50.11 55.24 60.48 65.81

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Employee Salary

Month s

Skilled (in thousand rupees) 12,000 2 24,000

Unskilled (in thousand rupees) 10,000 3 30,000

Total salary per month 54,000

Total annual labour charges (in lacs) 6.48

BREAK UP OF STAFF CHARGES

Particulars Wages No of Total

Rs. per Employee Salary

Month s
helper 7,000 1 7,000

Total salary per month 7,000

Total annual Staff charges (in lacs) 0.84

Utility Charges (per month)

Particulars value Descriptio
n
Power connection required 20 KWH
consumption per day 160 units

Consumption per month 3,200 units

Rate per Unit 8 Rs.
power Bill per month 25,600 Rs.
PROJECTED PROFITABILITY (In Lacs)
STATEMENT
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Capacity Utilisation % 50% 55 60% 65% 70%

%

SALES

Container 41.25 50.11 55.24 60.48 65.81

Total 41.25 50.11 55.24 60.48 65.81

COST OF SALES

Raw Material Consumed 16.58 18.78 20.90 23.10 25.37

Electricity Expenses 3.07 3.38 3.72 4.09 4.50

Depreciation 2.64 2.26 1.94 1.67 1.43

Labour 6.48 6.80 7.14 7.50 7.88

Repair & maintenance 1.24 1.50 1.66 1.81 1.97

Consumables 0.83 1.00 1.10 1.21 1.32

Cost of Production 30.83 33.74 36.47 39.38 42.47

Add: opening Stock /WIP - 2.57 2.81 3.04 3.28

Less: Closing Stock /WIP 2.57 2.81 3.04 3.28 3.54

Cost of Sales 28.26 33.49 36.24 39.14 42.21

GROSS PROFIT 12.99 16.61 19.00 21.34 23.60

Interest on Term Loan 1.53 1.35 0.97 0.59 0.21

Interest on working Capital 1.03 1.03 1.03 1.03 1.03

Selling & distribution Expenses 1.32 1.45 1.55 1.51 1.45

Rent 4.20 4.62 5.08 5.59 6.09

TOTAL 8.07 8.44 8.62 8.71 8.77

NET PROFIT 4.92 8.17 10.38 12.63 14.83

Taxation 0.66 1.16 1.86 2.55

PROFIT (After Tax) 4.92 7.51 9.22 10.77 12.28

PROJECTED BALANCE (In Lacs)
SHEET

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Liabilities

Capital

opening balance 4.20 6.96 10.19 14.21

Add:- Own Capital 3.04

Add:- Retained Profit 4.92 7.51 9.22 10.77 12.28

Less:- Drawings 3.75 4.75 6.00 6.75 8.00

Closing Balance 4.20 6.96 10.19 14.21 18.49

Term Loan 15.20 11.40 7.60 3.80 -

Working Capital Limit 10.25 10.25 10.25 10.25 10.25

Sundry Creditors 0.83 0.94 1.05 1.15 1.27

Provisions & Other Liab 0.40 0.60 0.90 1.08 1.35

TOTAL : 30.88 30.15 29.99 30.49 31.36

Assets

Fixed Assets ( Gross) 19.00 19.00 19.00 19.00 19.00

Gross Dep. 2.64 4.90 6.84 8.51 9.95

Net Fixed Assets 16.36 14.10 12.16 10.49 9.05

Current Assets

Sundry Debtors 6.88 8.35 9.21 11.09 12.07

Stock in Hand 5.34 6.57 7.22 7.90 8.61

Cash and Bank 2.30 1.14 1.40 1.02 1.63

TOTAL : 30.88 30.15 29.99 30.49 31.36

PROJECTED CASH FLOW (In Lacs)
STATEMENT
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

SOURCES OF FUND

Own Margin 3.04

Net Profit 4.92 8.17 10.38 12.63 14.83

Depreciation & Exp. W/off 2.64 2.26 1.94 1.67 1.43

Increase in Cash Credit 10.25 - - - -

Increase In Term Loan 17.10 - - - -

Increase in Creditors 0.83 0.11 0.11 0.11 0.11

Increase in Provisions & Oth lib 0.40 0.20 0.30 0.18 0.27

TOTAL : 39.17 10.74 12.73 14.59 16.65

APPLICATION OF FUND

Increase in Fixed Assets 19.00

Increase in Stock 5.34 1.22 0.65 0.68 0.71

Increase in Debtors 6.88 1.48 0.86 1.88 0.98

Repayment of Term Loan 1.90 3.80 3.80 3.80 3.80

Drawings 3.75 4.75 6.00 6.75 8.00

Taxation - 0.66 1.16 1.86 2.55

TOTAL : 36.87 11.91 12.47 14.97 16.04

Opening Cash & Bank Balance - 2.30 1.14 1.40 1.02

Add : Surplus 2.30 (1.17) 0.27 (0.38) 0.61

Closing Cash & Bank Balance 2.30 1.14 1.40 1.02 1.63
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL (In Lacs)

PARTICULARS 1st year 2nd year 3rd 4th year 5th year
year
Finished Goods

2.57 2.81 3.04 3.28 3.54

Raw Material

2.77 3.76 4.18 4.62 5.07

Closing Stock 5.34 6.57 7.22 7.90 8.61

COMPUTATION OF WORKING CAPITAL REQUIREMENT (In Lacs)

TRADITIONAL METHOD

Particulars Amount Own contribution Bank Finance

Finished Goods & Raw Material 5.34 10% 0.53 90% 4.81

Less : Creditors 0.83 10% 0.08 90% 0.75

Paid stock 4.51 10% 0.45 90% 4.06

Sundry Debtors 6.88 10% 0.69 90% 6.19

11.39 10% 1.14 90% 10.25

Working Capital Requirement from bank 10.25

COMPUTATION OF DEPRECIATION (in Lacs)

Description Plant & Furniture TOTAL

Machinery
Rate of Depreciation 15.00% 10.00%

Opening Balance - - -

Addition 14.75 4.25 19.00

Total 14.75 4.25 19.00

Less : Depreciation 2.21 0.43 2.64

WDV at end of Year 12.54 3.83 16.36

Additions During The Year - - -

Total 12.54 3.83 16.36

Less : Depreciation 1.88 0.38 2.26

WDV at end of Year 10.66 3.44 14.10

Additions During The Year - - -

Total 10.66 3.44 14.10

Less : Depreciation 1.60 0.34 1.94

WDV at end of Year 9.06 3.10 12.16

Additions During The Year - - -

Total 9.06 3.10 12.16

Less : Depreciation 1.36 0.31 1.67

WDV at end of Year 7.70 2.79 10.49

Additions During The Year - - -

Total 7.70 2.79 10.49

Less : Depreciation 1.15 0.28 1.43

WDV at end of Year 6.54 2.51 9.05

Additions During The Year - - -

Total 6.54 2.51 9.05

Less : Depreciation 0.98 0.25 1.23

WDV at end of Year 5.56 2.26 7.82

Less : Depreciation 0.83 0.23 1.06

WDV at end of Year 4.73 2.03 6.76

Less : Depreciation 0.71 0.20 0.91

WDV at end of Year 4.02 1.83 5.85

CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 7.55 9.77 11.17 12.44 13.72

Interest on Term Loan 1.53 1.35 0.97 0.59 0.21
Total 9.08 11.12 12.13 13.02 13.92

REPAYMENT
Instalment of Term Loan 1.90 3.80 3.80 3.80 3.80
Interest on Term Loan 1.53 1.35 0.97 0.59 0.21

Total 3.43 5.15 4.77 4.39 4.01

DEBT SERVICE COVERAGE 2.65 2.16 2.55 2.97 3.48

RATIO
AVERAGE D.S.C.R. 2.76
 REPAYMENT SCHEDULE OF
TERM LOAN
Interest 10%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
1st Opening Balance

1st month - 17.10 17.10 - - 17.10

2nd month 17.10 - 17.10 0.14 - 17.10

3rd month 17.10 - 17.10 0.14 - 17.10

4th month 17.10 - 17.10 0.14 17.10

5th month 17.10 - 17.10 0.14 17.10

6th month 17.10 - 17.10 0.14 17.10

7th month 17.10 - 17.10 0.14 0.32 16.78

8th month 16.78 - 16.78 0.14 0.32 16.47

9th month 16.47 - 16.47 0.14 0.32 16.15

10th month 16.15 - 16.15 0.13 0.32 15.83

11th month 15.83 - 15.83 0.13 0.32 15.52

12th month 15.52 - 15.52 0.13 0.32 15.20

1.53 1.90
2nd Opening Balance

1st month 15.20 - 15.20 0.13 0.32 14.88

2nd month 14.88 - 14.88 0.12 0.32 14.57

3rd month 14.57 - 14.57 0.12 0.32 14.25

4th month 14.25 - 14.25 0.12 0.32 13.93

5th month 13.93 - 13.93 0.12 0.32 13.62

6th month 13.62 - 13.62 0.11 0.32 13.30

 7th month 13.30 - 13.30 0.11 0.32 12.98

8th month 12.98 - 12.98 0.11 0.32 12.67

9th month 12.67 - 12.67 0.11 0.32 12.35

10th month 12.35 - 12.35 0.10 0.32 12.03

11th month 12.03 - 12.03 0.10 0.32 11.72

12th month 11.72 - 11.72 0.10 0.32 11.40

1.35 3.80
3rd Opening Balance

1st month 11.40 - 11.40 0.10 0.32 11.08

2nd month 11.08 - 11.08 0.09 0.32 10.77

3rd month 10.77 - 10.77 0.09 0.32 10.45

4th month 10.45 - 10.45 0.09 0.32 10.13

5th month 10.13 - 10.13 0.08 0.32 9.82

6th month 9.82 - 9.82 0.08 0.32 9.50

7th month 9.50 - 9.50 0.08 0.32 9.18

8th month 9.18 - 9.18 0.08 0.32 8.87

9th month 8.87 - 8.87 0.07 0.32 8.55

10th month 8.55 - 8.55 0.07 0.32 8.23

11th month 8.23 - 8.23 0.07 0.32 7.92

12th month 7.92 - 7.92 0.07 0.32 7.60

0.97 3.80
4th Opening Balance

1st month 7.60 - 7.60 0.06 0.32 7.28

2nd month 7.28 - 7.28 0.06 0.32 6.97

 3rd month 6.97 - 6.97 0.06 0.32 6.65

4th month 6.65 - 6.65 0.06 0.32 6.33

5th month 6.33 - 6.33 0.05 0.32 6.02

6th month 6.02 - 6.02 0.05 0.32 5.70

7th month 5.70 - 5.70 0.05 0.32 5.38

8th month 5.38 - 5.38 0.04 0.32 5.07

9th month 5.07 - 5.07 0.04 0.32 4.75

10th month 4.75 - 4.75 0.04 0.32 4.43

11th month 4.43 - 4.43 0.04 0.32 4.12

12th month(Subsidy
adjusted) 4.12 - 4.12 0.03 0.32 3.80
0.59 3.80
5th Opening Balance

1st month 3.80 - 3.80 0.03 0.32 3.48

2nd month 3.48 - 3.48 0.03 0.32 3.17

3rd month 3.17 - 3.17 0.03 0.32 2.85

4th month 2.85 - 2.85 0.02 0.32 2.53

5th month 2.53 - 2.53 0.02 0.32 2.22

6th month 2.22 - 2.22 0.02 0.32 1.90

7th month 1.90 - 1.90 0.02 0.32 1.58

8th month 1.58 - 1.58 0.01 0.32 1.27

9th month 1.27 - 1.27 0.01 0.32 0.95

10th month 0.95 - 0.95 0.01 0.32 0.63

11th month 0.63 - 0.63 0.01 0.32 0.32

12th month 0.32 - 0.32 0.00 0.32 -

 0.21 3.80

DOOR TO DOOR 60 MONTHS

MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
.