Costs of new machinery for finished products

[Shalin Doshi]

If we do decide to pursue making plastic bags, PFA the machinery costs and details.

By selling only pellets, we can earn anywhere from Rs.50 to Rs.150 per kg of pellets.

1kg plastic makes around 200 printed plastic bags(using blow moulding, automated, read pdf attached), which, if sold at around Rs 1 per bag would also earn us Rs 200 per kg of plastic overall. However, this would require around Rs 2 lakhs of initial investment in buying the required machinery. 

The machine has a capacity of making around 6000 bags an hour. So 6 hours of work would mean 36k bags a day, that is around Rs.36k worth sales everyday. Therefore one machine utilizes around 180kg plastic everyday, that is anywhere around Rs.9k-27k earnings by selling pellets of the same amount. So, clearly, immediate profits are higher in case of plastic bags, but we need a lot of added investment, machinery maintenance costs, a couple of extra workers etc.

So. Now what do you all think? :) Pellets or Bags?

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Shalin Doshi

BT11B064

Second Year Undergraduate Student

Department of Biotechnology,

Indian Institute of Technology Madras, Chennai

Ph. - 9962292640

[Akshit Salecha]

It looks good. But, I think we shouldn’t get into it now. What we can
do is propose it under future plans, and include in the up gradation
part of our company.

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Regards,


Akshit Salecha,
Department of Biotechnology,
IIT Madras.

[Supreet Hegde]

@Akshit What if net profit ( including the payment for workers and
maintenance costs ) in the baggage making is more than the pellets?
Initial investments of 1 or 2 lakh will be payed back in a very short
period of time according to above estimated costs.

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[Shalin Doshi]

But i think selling bags at Rs.1 per bag would be too expensive.

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[Akshit Salecha]

That's true. But, it will be difficult for us to diversify later. What we can show is that we will make pellets initially and then get into making bags,cutlery,bottles and whatever possible.

Also, I don't totally agree with the authenticity of the above statistics.

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[Shalin Doshi]

Oh those were the rates for normal plastics. My bad. Bioplastics pellets actually sell for much more - around Rs.350 per kg, due to high operating costs, and are therefore not very popular. Bioplastic bags sell for somewhere around Rs. 2 per bag. Please do the math yourselves now. :P

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[Piyush Uthra]

Can someone tell me which machines are we going to use? Accordingly we'll have to look into electricity consumption for setting up the industry.

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Regards,

Piyush Uthra

Second Year Undergraduate

Department of Biotechnology

IIT Madras

[Priyanka Som]

@Piyush......... check d flowchart which shalin posted.......... 
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Priyanka Som,

IInd Year Undergraduate,

Biotechnology,

IITm

[Piyush Uthra]

That is for simple lastics and not for bioplastics. :p

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[Priyanka Som]

abey its mostly d same........... apart from d cultivation of algae.......... the process of manufacturing will mostly be the same

[Vasanth Narayan]

CAN someone find the properties of PLA like the temp it can withstand the durability and so on??

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[Priyankaa Pitcheshwar]

@ Vasanth...I'm doing that...!

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[Srihita Rudraraju]

@shalin this is cool but we'll first have to find a market for bioplastic bags....

and i partly agree with akshit ... we can upgrade it later but since this is all hypothetical business...

we can just say that we are producing pellets and also aiming at bags...we can put stats for both...by this we can escape the technical part and the rest details for bags..

wat do u say??

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[Piyush Uthra]

@shalin +1

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