STARTING PLASTICS INJECTION MOULDING MANUFACTURING PLANTSTARTING PLASTICS INJECTION MOULDING MANUFACTURING PLANT
If you have reached this page then somehow you are associated with Injection Moulding of Plastics, if not then you can still find some useful information about starting a business. Starting any business need planning. Planning includes the following points to be studied and discussed with experienced professionals, friends before actually starting a company.
Purpose of Starting
Experience in Injection Moulding
inancial bac!ground
"echnical "e chnical !nowledge about Plastics Processing
#ocation of Plant $ very important
End %ustomers and #ocation
Products to be manufactured & 'ob (or!
"ype of Products to be made %ommercial & Industrial & )utomotive & )erospace
#egal Status of the %ompany Proprietor & Partnership & ##P & Pvt. #td. & #td.
*umber of Partners & +irectors It all starts with your !nowledge and experience in the Plastics Processing Industry, especially especially Injection Moulding. I restrict my discussion to starting a small Proprietorship & Partnership company doing 'ob wor! or moulding commercial plastics components. *ow a days many people who are not associated with plastics are also starting Injection moulding plant, by way of necessity & opportunity available. Most people thin! about their budget first and decide about the sie of the plant accordingly a ccordingly.. or a new comer starting Injection Moulding plant with little experience in the field, seems to be easier with smaller machines initially. initially. -ut you have to loo! at the over all project cost before deciding what capacity machine to be purchased. #et us assume that one has decided to start with //"ons //"ons Injection Moulding Machine to manufacture %ommercial items li!e 0/ liter (ater 'ar %ap or house hold items.
PROJECT REQUIREMENT AND COST
Sl.*o.
Plant 1e2uirements
+etails
Plant Sie in S2uare eet
3// $ 4// S2.ft
0
)mount of 1ent per Month 5 0/ per s2.ft
6/// $ 0/// minimum
7
If rental Premises %ost of )dvance
/ Months of rent is norm
3
%ost of Machine $ assuming 8sed Machine
4./ to 6./ #a!hs depends on age and condition of the machine,.
9
) rame with 0tons %hain Pulley -loc!
9////&:
4
Power 1e2uired for Machine
)pprox 79hp
;
%ooling (ater Pump Power
hp
6
%ooling "ower and Piping
4////&:
<
Mould clamps and "ools
7////&:
/
=ydraulic >il for Machine about 0//liters
09///&:
Machine loading and unloading erection
09///&:
0
Machine "ransportation if not in the same city
9/// $ 9///&:
7
Electrical fittings, wiring in the -uilding
3
)ccessories li!e Scrap ?rinder, >ven
9
If own products then cost of Mould
4
(or!ing %apital considering 4 months rent, wages, and
7////&: If re2uired 7./ la!hs
other expenses ;
*umber of employees assuming accounts wor! to be ta!en
4 for 03 hours operation
care by owner.& consultant 6
1egistration with Sales "ax
<
Stationery Printing
////&: ;///&:
0/
>ffice urniture
09///&: 1s. 7,<;,///&:
">")# I*@ES"ME*"
Monthly Expenses +escription
+etails
Electricity -ill
9,///&:
(ages and staff welfare
3/,///&:
Miscellaneous Expenses
9///&:
"elephone & Mobile Expenses
///&:
"ransportation Expenses Interest on Investment 5 6A per annum Insurance for E2uipment
"o be determined 0/3;9&: "o be determined
"otal Monthly Expenses
63;9&:
BBBB assuming accounts related wor! is carried by owner. >therwise you may have to pay another 1s ///&: Per month for filing sales tax returns.
Annual Expenses
)udit fees. iling of Income tax returns )nnual Sales tax assessment
-onus for Employees
estival & Pooja Expenses if any
Insurance for E2uipment and plant
Statuay Re!u"e#ents
#icense to be ta!en from local Panchayat & Muncipality & %orporation to run the -usiness.
Profession tax to be deducted from employees and paid to the corporation
Monthly Sales "axes to paid before 0/ th of Every month after filing returns online.
If 1egistered with %entral Excise then +uties to be paid before 9 th of every month
if 1egistered with Service "ax then same to be paid before 9 th of every month.
"+S to be deducted and paid for payments made to sub:contractors, service providers.
1egistration with ESI and P to be made if no of employees are more than 9.
iling Income "ax returns every year.
*>% from Pollution %ontrol -oard.
$o%"n& Cap"tal Re!u"e#ent )bout six monthCs expenses to be the basis for wor!ing capital, so it is about 9,//,///&: in this case. "his amount needs to be !ept aside and should not be used for buying e2uipments and machines If the Machine is in good condition then it will not give any trouble otherwise spending for the machine repairs will also to be accounted.
'"ll"n& an( Re)enues )ssuming // tons Injection moulding machine is being used for producing commercial plastic components, then costing is done based on shift rate or based on weight of Materials converted in Dgs. Per shift /// to 9// or per Dg 1s. /&: is now norm in the mar!et.
Re)enue Cal*ulat"on Shift 1ate
9//&:
Per +ay
39//&:
Per Month assuming 09 days of production
09//&:
So the revenues are just sufficient to pay the monthly expenses. If >wner is able to reduce the Employee expenses, then that expense can be saved to survive. or this, Machine should run without any trouble for 09 days and there should be orders for the same. If any one fails then it will become loss. "o avoid this any one starting company should start with little higher capacity machine li!e 0// tons and above, so that monthly revenues will be more and wages would be same so that income increases. (ages and Electricity bills are most expenses should be paid monthly without fail. or this reason we strongly recommend not to start with lower capacity machine. )dding second machine with in one year will reduce the administration expenses li!e wages and increase the growth prospects.
Assu#pt"ons #a(e "n Po+e*t Repot
Materials processed are PP, =+PE, #+PE. Etc which does not need preheating.
#ocation "amilnadu. >ther places local taxes may wary li!e octori
#abour availability and cost low & medium.
8n:official expenses not ta!en into account Some times accommodation to be provided for employees is not accounted. If )-S, *ylon, Polycarbonate, etc then %ost of Pre:heating the material and its e2uipment cost also to be considered in the project cost. If doing job wor! for any )utomotive Supplier then maintaining Fuality standards li!e IS>
Se)"*e Tax I#pl"*at"ons
If billing done to one single customer and if it exceeds 3./ la!hs per annum then 1egistration with service tax is mandatory and service tax to be charged, if customer is not an assessee of %entral Excise. If not 'ob wor!, then Sales "ax rate based on the components produced to be levied and the same to be paid to the %"> Gcommercial "ax >fficer H every month by filing returns.
Othe "ssues to ,e ta%en *ae
Safety during machine operation. Several instances are there where employees have lost fingers & hands & life due to poor maintenance of shop floor and machines. Safety of the Mould is also uptmost important. Many times operators use metal rods to remove the stuc! components from the mould which will damage the mould. )lso clamping of the mould to be done propperly with right tor2ue. -olt should enter the platen atleast 7/mm. 1ecently one of our customer who started a new company lost half of his hand even before company is up and running. Safety issues needs to be seriously ta!en care of from the beginning of the operations. Internal wiring to done with proper earthing to the Machines. Several companies gutted completely due to short circuit, losses running into cores of rupees. )ny unexpected loss to a new company that too in the first year is too much to bear and should ta!e extreme care in maintaining the shop f loor and employee safety. It is always suggested to ma!e detailed study before stepping into starting a new company. +ecisions should not be ta!en on assumptions & hypothetical thin!ing. +iscussing with experienced professionals in the filed is mandatory.
Support from
)t creative we provide professional support to the customers to buy suitable machines and offer after sales support through out the life of the machine. Some times we even say not to venture into based on the mar!et conditions prevailing. Some times we suggest to go for bigger capacity machines instead of smaller machines. So far we helped lot of new companies who have grown well and doing good business. (e helped companies to reduce the Electricity bills. (e helped companies, who want to close by selling their machines. Simply we are one point source for all your need for setting up , running an Injection Moulding Plant.
