PET Bottle Manufacturing Business

Overview

PET BOTTLE MANUFACTURING BUSINESS

OVERVIEW

PET (Polyethylene terephthalate) , a kind of plastic or polyester to be more precise, whose applications range from being used in blankets offered by emirates airlines to Indian cricket team uniforms made by Nike has been of a a major benefit to the F&B industry ( food and beverage)

Because of the 70% rate of the recycling PET offers, it’s use in manufacturing bottles have been advancing in this era of globalisation with environmental sustainability. The reason of its increased demand also lies in its nature I.e it being strong yet light weight, non-reactive, economical and shatterproof.

PET’s safety as storage containers for personal care, food and beverage and pharmaceutical and medical applications has been recognised by all health organisations across the world

pet bottle manufacturing business

    I.        Market potential

The global market of PET bottle has reached to a volume of 12.7 million tons in FY 2019, with a compound annual growth of 2% + in 2014-2019

·       A diversion towards westernisation, altering food patterns and increasing disposable income with consumers who prefer takeout foods and beverages have contributed to the rising demand of PET bottles

·       Moreover the flexibility in the structure of the PET bottles have increased the application of these in terms of appearance and utility, brands are now customising them into attractive shapes, colours and reaching the niche needs

·       Lastly, with the advent of technology the PET bottles are made more eco- friendly increasing its recycling rate for every bottle-to-bottle

Uses

BOTTLE APPLICATION ESTIMATED TIME FROM FACTORY-TO-WASTE (residence time) % OF TOTAL PET USED FOR BOTTLED APPLICATION
1.   Carbonated/aerateddrinks 3 months 25%
2.   Fruit / Nectar drinks 4 months 5%
3.   Packaged drinking/ mineral water 12 months 7%
4.   Dairy, lassi, cold coffee 6 months 1%
5.   Personal care 18 months 8%
6.   Liquor >2 years 12%
7.   Edible oil 12 months 6%
8.   Wellness/pharma 18 months 9%
9.   Homecare 2 years 5%
   10.Agro chemicals 2 years 1%


 II.        
Licenses required :

The domestic plastic sector however has been unlicensed and deregulated. Moreover, the government offers 100% foreign direct investment without any sectoral gap through an automatic route.

The licenses/ documents required are as follows :

·       Trade licenses

·       Sales tax registration

·       Business registration with ROC

·       Udyog Aadhar MSME registration

·       NOC from pollution control board

·       Professional tax registration

·       Factory license

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III.        Investment required :

The investment required to enter into the PET manufacturing business goes initially is limited to investment in machinery which is up to ₹ 1.6 crores including machinery.

However, the business can be established at a small scale between 10-12 lakhs.

Further breakdown will be shown below

PROFITS :

A typical PET manufacturing plant can produce 5,840,640 bottles annually, the profit per mould comes to around ₹2000 

 
   

IV.        Target consumers :

The consumers for the PET bottle could be categorised as follows:

·       Agro chemical industry

·       Homecare industry :

·       Wellness and pharmaceutical industry : ointment, syrups

·       Edible oils industry : retail oil bottles

·       Packaged/  water industry : mineral, sparkling

·       Drinks industry: liquor, carbonated, dairy

·        Personal care industry: cosmetics, baby products

 V.        Raw material required :

The raw material required for manufacturing the PET bottles are as follows :

·       PET granule

·       PET bottle flake

·       PET polymers

·       Water, power and electricity supply

·       Containers

VI.        Machine required :

·       Injection moulding machine    : ₹750000

·       Blow moulding machine           : ₹800000

·       Compressor                                 : ₹150000

·       Cooling tower.                            : ₹150000

·       Chiller unit                                   : ₹80000

·       Lather 8 ft. Refurnished            : ₹110000

·       Lathe 5 ft.                                    : ₹72000

·       Pillar drill 26 inches with pump ₹50000

·       Facer.                                            : ₹ 150000

·       Shaper.                                         : ₹125000

VII.        Area required :

The land required for this project is 5000 sq ft approximately.

This includes land for management building, production area, raw material store, finished goods store, loading area, workshop area and cooling area.

VIII.        Manpower required :

The breakdown of manpower is as follows :

·       1- Production manager

·       1- Accountant

·       2-Injection machine operator

·       2-Blow machine operator

·       1-Pre-form handler

·       4-Helpers

·       3-Guards

Moreover each of the manpower is required to undergo training as per :

·       Equipment handling procedures

·       Machine using procedure

·       Safety and precautions measures

·       Health and sanitary facilities available

·       On the job and off the job training

IX.        Business model and growth

The business model can is a constitution of these four dimensions, in case of PET industry it is as follows :

A. Value proposition: The unique selling point and value derived from manufacturing PET bottles as a business is

It’s rate of recycling I.e 70% making it an essential product in the major contributing retail sectors I.e

·       Food and beverage industry : non reactive can be used as containers , approved by FDA

·       Personal care : Doesn’t contain BPA which can be hence used in storing baby/infant related products 

B.   Target consumers : The target consumers for this product range vibrantly from healthcare, food and beverage to Agro chemicals and pharmaceutical industries

C.  Competitor review : The main producers of PET bottles in today’s market are Chemco group, Skypet polymers, Sibi polymers etc

D. Marketing strategy: The marketing strategy of these bottles is diverted across different niches using a penetrating marketing strategy

·       F&B industries, pharma industry: Digital and print media

·       Environmental activist groups, diverting consumers lifestyles towards eco friendly products: instagram, influencers, social media

Growth

·       Firstly, the PET industry is likely to witness an increase of $20 million in profits by the end of 2020, globally

·       Secondly, Increasing wellness and F&B sectors moreover a diversion of consumers lifestyle in making use of environmentally friendly products is likely to spurge the demand for PET between 2020-2025.

·       Thirdly, the nature of PET which is non reactive, light weighted, anti bacterial and high recycling rate has made this product omnipresent in any field of industrial aspect.

 X.        Profit margin

The profit margin of the PET bottle goes as far as ₹2000 per mould.

XI.        Final words

To conclude,

·       The PET bottle manufacturing doesn’t only have a large market potential but also a vibrant target customer base. The growth in this industry is like to boom until the above mentioned target consumers require PET bottles for storage, it won’t ever be stagnant

·       The nature of PET bottles, it’s diverse applications and the advent of technology has made manufacturing of customised PET bottles is every shape, size, colour etc for every niche possible

·       Lastly, for you to get into the PET bottle manufacturing business the investment surely goes heavy but the machinery comes with low maintenance and obsolescence costs, minimal manpower and more than just reasonable ROR in small durations.

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