PLASTIC CRATES

PROJECT REPORT
ON
MANUFACTURE OF PLASTIC CRATES

Registered Office:

INDEX:

Location:

1. Project at a glance
2. Company Profile
3. Product Introduction
4. Scope of the Project
5. Constitution / Sector
6. Background of the Promoter
7. Background of Proposal Flow Chart
8. Process
9. Process Flowchart
10.
Raw materials
11.
Marketing
12.
Location Advantages
13.
Incentives
14.
Subsidies
15.
Licenses
16.
Project Cost & Means of Finance
17.
Notes on Project Cost
18.
Notes on Means of Finance
19.
Utilities
20.
SWOT Analysis
21.
Assumptions
22.
Financial Statements

Project at a Glance
1.
2.
3.
4.
5.
6.

Name of the Unit

Office
Location
Line of Activity
Sector
Constitution
7. Name of the Promoters
8. Project Cost & Means of
Finance
PROJECT COST

AMOUNT

Land

Own

Buildings

60.00

Machinery

95.00

Electricals &
Erection

5.00

.,
Manufacture of Plastic Crates
Small

MEANS OF
FINANCE
Capital

Term loan

AMOUNT
Rs in Lakhs
52.00

113.00

Working Capital
Total

20.00 Working Capital loan

180.00 Total

9. Promoters Contribution
10.
Power
11.
Employment

15.00
180.00

28.88%
125 HP
14

Introduction

Plastic crates are often used for shipment of bottles of water, beer, milk,
etc. Many are designed to stack securely and to be returned as reusable
packaging. See Milk crate, Bottle crate. Plastic moving boxes are
constructed using High Density Polyethylene HDPE which is made from oil
based petroleum products (14.52 pounds of oil makes 8.4 pounds of
plastic moving box).
Plastic moving crates or boxes are also becoming popular to move offices
and homes.

Milk crate

Furniture made from milk crates

Expedient stepping stones

Milk crates are square or rectangular interlocking boxes that are used to
transport milk and other products from dairies to retail establishments.
In English-speaking parts of Europe the term "bottle crate" is more
common but in the United States the term "milk crate" is applied even
when the transported beverage is not milk.
History
The dimensions of the milk crate may have been influenced by the
dimensions of the Tea chest. For all practical purposes, both hold similar
internal volumes, but tea chests are designed for shipping over the open
ocean.
The bottle crate emerged after the tea chest was a defacto shipping
method.
Design
Middle 20th century bottle crates were made of wood, later ones were
stainless steel, and those made in the latter part of the century were of
heavy-duty polyethylene.
The most common milk crate sizes are designed to carry several 1 US
gallon (3.8 l; 0.83 imp gal) milk jugs:
Number
carried
4

of

jugs

Internal dimensions

12

by

12

inches

(300

by

300 mm)

18.25 by 12 inches (464 by

305 mm)

Uses & recycling

Milk crates are often stolen for either personal or business use or for the
plastic that they are made out of. Theft of milk crates can cost dairies
millions of US dollars per year.
This has led at least one dairy farm to hire a private investigator to
discover what is happening to the crates; the results of investigations
point to plastic re-sellers being the culprits in the majority of thefts.
Alternate shipping methods
In July 2008, Wal-Mart and some other stores introduced a square milk
jug that does not need to be transported in a crate. Sometimes called
"green" milk jugs, they are not green in color, but rather are claimed to
be environmentally friendly.
These new milk jugs are stackable, and can be transported without crates.
Companies need not buy plastic for the crates, nor transport or wash
them.
Bottle crate

Reusable mineral water bottles in crates

A bottle crate or beverage crate is a container used for transport
of beverage containers. In the present day they are usually made

of plastic, but before the widespread use of plastic they tended to be

made of wood or metal.
Beverage crates began to be made of HDPE in the 1950s.
Such crates can be long-lived. In the 1980s in Sweden, a take-back
campaign was organized, when 25-bottle crates were replaced by the
more ergonomic 20-bottle crates. Some of the crates returned for
recycling had been in use since the 1960s.
Because
manufacturers
avoid
lead-based
and
cadmium-based
pigmentations, in response to legislation and public opinion, they have
had to resort to other methods of colouring HDPE crates. In Japan, since
the early 1970s, HDPE bottle crates have been pigmented with a variety
of perylene, quinacridone, azo condensation,
and Isoindoline pigments.
Japanese
manufacturers
have
modified
these
in
order
to
control nucleating behaviour, and have improved weathering performance
and impact-resistance properties by making the light-stabilisization
systems more efficient.

Types of Crates
Industrial Crates:
400 X 300 Series Crates
We are manufacturer and exporter of industrial crates for Automobile, Electronics, Hardware, Engineering, Brass,
Glass and Electrical industry. These crates are available in fixed length and breadth ratio with different height
options ranging from 65 mm to 275 mm having capacity of 4 ltrs. to 26 ltrs. .

Capacity : 8.5 Ltr.

Size : OD - 400x300x90 mm

Capacity : 11 Ltr.
Size : OD - 400 X 300 X 120 mm

Capacity : 14 Ltr.
Size : OD - 400x300x150 mm

Capacity : 17 Ltr.
Size : OD - 400x300x175 mm

Capacity : 20 Ltr.
Size : OD - 400x300x220 mm

500 x 325 Series Crate

This series include crates for Bakery Industry and Fruit Vegetable Industry. It is available with height options from
100 mm to 250 mm, models are also available with front window as SFPO models for big spare parts handling.

Capacity : 19 Ltr.
Size : OD - 500X325X150 mm

Capacity : 32 Ltr.
Size : OD - 500x325x250 mm

Jumbo And Mini Jumbo Crates

Manufacturer and exporter of Jumbo Crates such as Fresh Product Crates, Textile Crates, Crates for Garments,
Crates For Fisheries, Heavy Duty Crates, Double Wall Jumbo Crates and Automobile Industries Crates. These
Crates are especially designed for voluminous material handling. Crates are engineered to handle the heavy
material.

Capacity : 76 Ltr.
Size : OD - 650x450x315 mm

Capacity : 76 Ltr.
Size : OD - 650X450X315 mm

Capacity : 76 Ltr.
Size : OD - 650X450X315 mm

Capacity :60 Ltr.

Size : OD - 650X450X210 mm

Fabrication / Customized Crate

We offer a comprehensive range of Fabrication / Customized Crate, which is highly acknowledged for its compact
and user friendly designs. These crates keep the products in proper condition while storage and transportation. It
will also use as a heavy duty crates,

Capacity : 25 Ltr.
Size : OD - 500X325X150 mm

Capacity : 20 Ltr.
Size : OD - 400X300X220 mm

Capacity : 35 Ltr.
Size : OD - 600X400X175 mm

Capacity : 35 Ltr.
Size : OD - 600X400X175 mm

Dairy Crates
We are manufacturer and exporter of milk crates, plastic milk crates, milk product crates and crates for oil
pouches. Our clients can avail from us a wide range of Dairy Crates that is known for its tough and resilient finish.
These are made of high quality plastic and ensure durability. These crates have high capacity and can also keep
the products in proper condition.

Capacity : 10 (10 pouches of 1 Ltr. each)

Size : OD - 471x378x149 mm

Capacity : 12 Ltrs ( 12 Pouches of 1 Ltr. each)

Size : OD - 471x378x159 mm

Capacity : 12 Ltr. (12 pouches of 1 Ltr. each)

Size : OD - 471X378X168 mm

Capacity : 12 Ltr. (12 pouches of 1 Ltr. each)

Size : OD - 471X378X170 mm

Bakery Crates
We are involved in offering an exclusive range of Bakery Crates. These crates are made of high grade raw
material and meet the relevant quality standards. These crates keep the bakery products in proper condition.

Capacity : 35 Ltrs.
Size : OD - 570X485X140 mm

Capacity : 35 Ltrs.
Size : OD - 570X485X140 mm

Fruit & Vegetable Crates

These crates with over 10 different models are designed for handling of fruits and vegetables. Considering the
perishable nature of fruits and vegetables, crates have very good ventilation and smooth interiors with sturdy
exteriors to handle load. Millions of Galaxy fruits and vegetable crates are being used in storage and
transportation of Tomato, Apple, Orange, Grapes, Mango etc..

Capacity : 48 Ltr.
Size : OD - 542X360X280 mm

Capacity : 48 Ltr.
Size : OD - 542x360x290 mm

Capacity : 48 Ltr.
Size : OD - 542x360x290 mm

Capacity : 48 Ltr.
Size : OD - 542X360X300 mm

Capacity : 30 Ltr.
Size : OD - 595x395x150 mm

Capacity : 48 Ltr.
Size : OD - 595x395x256

Capacity : 65 Ltr.
Size : OD - 540X390X350 mm

Advantages:
Crates are material handling containers which can be used for
storage, transport or distribution and handling of products.
Traditionally crates in India were manufactured from wood but with
developments
in
plastics
processing
and
conservation
of
environment issues gaining importance in developed societies, most
of the material handling crates are being manufactured to size to suit
the end use, but are predominantly made from High Density
Polyethylene (HDPE) and sometimes from Polypropylene (PP). These
injection moulded crates have a long life and are easy to handle due
to its light weight, and have many other advantages over the
traditional wooden crates.
The advantages of using plastic crates are:
Considerable reduction in weight and hence easy handling and

transportation
Freedom from sharp corners and splinters facilitating safe handling
Complete freedom from corrosion unlike in the case of metal crates

 No noise while handling unlike metal crates

Requires negligible maintenance compared to wooden and metal

crates.
Have fairly long life and are suitable for multiple trips.

Good resistance to chemicals and harsh environment. Can be made in

variety of colors and hence have better sales appeal.

Scope of the Project

The envisaged project is to Manufacturing of Plastic Crates at , Dist.. The
administrative office at. The Project cost is estimated of Rs180.00 Lacs.
The installed capacity is 648 MT per annum with 8 working hours in 2
shifts in a day and 300 working days in a year. This would mean that
2.88 lakh pieces of crates having an average weight of 2.25 kg per crate
could be manufactured at 100% capacity utilisation. The operating
capacity is assumed 60%, 70% and 80% in first, second and conceding
year operations, The unit is eligible all incentives as per latest GO

Constitution & Sector

Constitution
, unit is constituted as a company act for Manufacturing of Plastic
Crates
Sector :
The proposed sector comes under Small Sector. The company has
already obtained registration Certificate from District Industries Centre,
Visakhapatnam.

Background of the Promoter

Mr. S/o aged years, residing at, Visakhapatnam.

He passed. He is

having over 15 years experience in. He is an income tax assesse.

With his experience and influence he plays a key role in making this
successful project.

Location & its Advantages

LAND: The proposed location of the Unit is situated at Visakhapatnam
Dist. The location of the industry has considerable influence on the
techno-economical facility of the project. There are various factors contributing to the functioning of an industry and following are the primary
factors taken into consideration.

REASONS FOR THE SELECTION OF THE SITE:

1. Availability of labor at economically rate.
2. Adequate supply of electricity power.
3. Adequate supply of water throughout the year.
4. The site is well connected with road facility.
5. Banking facilities and Government supports.
6. Adequate Transport facilities for economical transportation of
finished product and Spare parts.
7. Nearness to the Market.
8. As the area is developing area, the setting up of a unit in this will
help the people to progress both socially and economically. There
are several Engineering Colleges around the proposed unit.

Incentives / Subsidies
The following incentives are available for Micro and Small
Enterprises (MSEs):
1. 100% reimbursement of Stamp duty and transfer duty paid by the
industry on purchase of land meant for industrial use.
2. 100% reimbursement of Stamp duty for Lease of
Land/Shed/Buildings and also mortgages and hypothecations.

3. 25% rebate in land cost limited to Rs. 10.00 Lakhs in Industrial

Estates/ Industrial Parks.
4. 25% Land conversion charges for industrial use limited to Rs. 10.00
lakhs.
5. Fixed power cost reimbursement @ Rs.0.75 per unit (upper ceiling)
on the proposed revised rate (2010 -11) for 5 years from the date of
commencement of commercial production. Incase decrease in Power
Tariff; the reimbursement will be reduced proportionately.
6. 15% investment subsidy on fixed capital investment subject to a
maximum of Rs. 20.00 Lakhs.
7. Reimbursement of 100% VAT/CST or State Goods and Services Tax
(SGST) for a period of 5 years from the date of commencement of
commercial production to Micro Enterprises.
8. Reimbursement of 50% VAT/CST or State Goods and Services Tax
(SGST) for a period of 5 years from the date of commencement of
commercial production to Small Enterprises.
9. Interest subsidy under PavalaVaddi Scheme on the term loan taken
on the fixed capital investment by New Micro and Small enterprises
in excess of 3% per annum subject to a maximum reimbursement of
9% per annum for a period 5 years from the date of commencement
of commercial production.
10.
Seed capital assistance to First Generation entrepreneurs to
set-up Micro Enterprises @ 10% of the Machinery cost , which will be
deducted from the eligible investment subsidy
11.
50% reimbursement of cost involved in skill up gradation and
training the local man power limited to Rs.2000 per person.
12.
50% subsidy on the expenses incurred for quality
certification / patent registration limited to Rs. 2.00 Lakhs for MSEs
13.
25% subsidy on specific cleaner production measures limited
to Rs. 5.00 lakhs.
14.
To extend investment subsidy to the identified service
activities related to industries setup in all Municipal Corporation
limits in the state as per the list appended as Annexure-II

Licenses
The following licenses will be required for the Starting up the Industry:
1. Part I
2. Single Window approvals

3.
4.
5.
6.
7.
8.

Panchayati
Inspector of Factories
Pollution
Electricity
VAT
Town & City Planning

Market Potential
Plastic containers are considered as necessity items for every household.
As per 2014 census the population of Southern region is 5 3.90 crores.
Considering that five persons constitute a household the total household
in the region is 78,00,000. Again considering that every year there is a
replacement demand to change these items by at least 30% of total
number of households, the requirement of these items on this basis
becomes 23,40,000 numbers. This may be in addition to the new
demand for these items by at least 15% of total number of household
every year which stands at 11,70,000. Therefore, every year at least
35,10,000 numbers of these items are required by the households in the
North Eastern Region.
To meet the above demand there exist around 10 numbers of related
units in the region. The production of these units is limited and bulk of
the requirement is being met from outside sources, the leading brands
being Brite and Prince. Therefore there is a scope for additional
around 10 numbers of such units with capacity to produce 1.5 lakh
number of plastic containers
In India, at present there are several manufacturers of large injection
moulded crates. This segment of business is dominated mainly by
organized sector players. The major players in injection moulded
crates are:

Nilkamal Crates and Bins

Bright Brothers

Supreme Industries Limited

Prince Plastics

Synthetic Moulders

Gold Plast

The following is the sectors and the use of crates in these sectors.

Soft drink industry

Milk and dairy products
Fisheries, and Marine
Automobile industry
Fruits and vegetable
Electronic and electricals
Pharmaceuticals
Agro-products
Yarn and textiles industry
Defense Sector

Storage, handling, transport and

distribution.
Handling, transport, distribution.
Storage, handling, transport and meat
products distribution.
Storage
Storage, handling, transport.
Storage, handling.
Storage, handling.
Storage, handling
Storage, handling
Storage, handling of bombs

Following types of crates are generally available in Market and

are popular amongst end-users.

Fully closed crates - with all surfaces of crates in solid except top.

Grilled crates - with all sidewalls grilled and bottom close.

Totally grilled crates - with all sides and bottom also grilled.

Crates with lids - a lid on top to protect the contents.

Folding crates - entire crate can be folded to a flat assembly to save

space when not in use.

Bins - modified shape of crate so that contents can be removed

from front without unloading the bins stacked over it.

Stacking and nesting crates - height of crate can be reduced when

stored in nesting positions.

Soft drink crates - these are available with partitions to separate

bottles rattling with each other.

Milk pouch crate.

Tetra pack crates.

Crates for handling Printed Circuit Boards.

The traditional segments of crates experience stiff competition and

hence, the crates manufacturers are always in look out for newer and
newer application. The demand for crates is increasing from a diverse
range of businesses. The usage of crates especially in agri business is full
of promise as it has demonstrated its superiority in handling, storing and
transporting of agricultural produce by reducing the damage level of
food products by almost 30%. The entry of crates in agriculture is
likely to revolutionize the crates business and this segment is
expected to drive the future growth of this business.

Manufacturing Process
Process, Plant & Machinery (Details & List of Machinery Suppliers)
Manufacturing Process
The manufacturing process of injection moulded crate is simple in
concept. The Poly Propylene granules are fed via a regulated hopper
into a homogenous molten mass by application of heat and shearing
action of continuously rotating extruded screw, which also keeps
pushing the plastic melt forward. The melt gets collected at the forward
end of the extruder cylinder and is pushed into the mould cavity by the
screw, now acting as a hydraulic piston. The mould is kept at prespecified temperature and once injected, the plastic melt is held under
high pressure to ensure that the material reaches all the ends of the

mould. In crates moulding, the moulds used have comparatively very

large depth.
The mould is opened after plastic melt has solidified sufficiently and the
moulded item is ejected by means of ejector pins or plates. During the
cooling cycle in the mould, the extruder screw prepares another batch
of plastic melt, ready to be injected, and thus the cycle goes on
continuously. The moulded articles usually do not require any finishing
operation other than removal of wastage. Otherwise, after visual
inspection, they are kept for curing for about 40 to 50 hours and then
despatched.
Plant and Machinery Suppliers
The following is the list of plant and machinery suppliers
Sl NoName
Communication Address
1
M/S Bonhomie Plastics Pvt. Ltd. 14/a, Ujagar Indl. Estate, Next
To
Dukes,
Deonar,Mumbai2
Naroto N.A.Group of Companies Plot
No.3725,
Phase
IV,
GIDC,Vatva
I.E., Ahmedabad 382445 India
Tel. No.:079 25840374 /
Raw Material & Utilities Requirement
The major raw material required for the project would be polypropylene /
HDPE of injection moulding grade. In addition, some stabilisers and
additives would also be needed. The raw material required would be
around 689 MT at 100% capacity utilisation. The unit has been assumed
to operate at 70%, 80% and 90% of its installed capacity in the first,
second and third year and at 100% capacity from the fourth year onwards
of its operation.
The utilities required are power and water. Around 75 KW of Power and
600 KLPA of water are required.

Process Flowchart
RAW GRANULES
PLASTIC IS FED INTO
THE MODLING MACHINE

HEATED TO LIQUID
FORM, COLOURED

INJECTED IN TO THE
LARGE MOULD TO
CREATE THE MAIN
BODY OF THE CRATE

LIDS ARE ALSO MADE

IN THE SAME WAY BUT
ON A SMALLER
MACHINE

IF REQUIRED BOTH
PARTS ARE HOT FOIL
PRINTED WITH LOGO
AND DETAILS

Project & Means of Finance

PROJECT COST

AMOUNT

Land
Buildings
Machinery
Electricals & Erection
Working Capital
Total

MEANS OF FINANCE

Own
Capital
60.00
95.00
Term loan
5.00
20.00 Working Capital loan
180.00 Total

Promoter Contribution

AMOUNT
Rs in Lakhs
52.00
113.00
15.00
180.00

: 28.88%

Notes on Project Cost

Land & Buildings Req

uirement:

The total land area is 1000 sq metres and the built up area is 750 sq mt.
Plant & Machinery:-

The machinery and equipment worth of Rs.95.00 lacs are required to run
the unit. The promoter has already approached reputed suppliers,
obtained quotations and enclosed the same for your reference.
Working Capital:-

An amount of Rs.20.00 Lacs provided towards working capital facility to

run the unit in smooth levels. The detailed working requirement placed as
annexure.

Notes on Means of Finance

1. CAPITAL:
The promoters capital was fixed at Rs.52.00 Lacs.
2. TERM LOAN:
The

unit

desires

to

avail

Term

Loan

of

Rs.113.00

Lacs.

from

Bank/Financial Institute to meet part cost of the project cost, which works
out to 62.77% of the total project cost of Rs.180.00 Lacs. The amount
would be repayable in 28 quarterly installments of Rs.4.03 lacs each with
a moratorium of twelve months from the date of commencement of
Commercial Production.

However, the interest on the term loan would be

payable as and when it is applied on the account.

repayment programmed is placed in this report.

Utilities & Services

The detail of the

POWER:
The Unit requires 125 HP power supply under L.T.

Limit. No

problems are anticipated with regard to obtaining of power supply.

WATER:
The unit requires 1,000 Liters of water per day.
EFFLUENTS:
There are no harmful effluents generated in the process.
TRANSPORTATION:
The proposed unit is located at , Visakhapatnam Dist. There is no
problem for transportation of raw material and finished goods.
MANPOWER REQUIREMENTS:
The unit will be employing 14 Nos. of workers besides 4 Nos. of
administrative staff. All the above persons can be recruited locally
without any difficulties.

SWOT Analysis

STRENGTH:
The unit is located at, Dist.
The company is having some sort of experience in the same line of
activity

WEAKNESS:

The unit has competition from the existing units as the proposed unit
is having latest technology and by the government encouragements to
start new industry the units can competent with the old industries.

Assumptions Underlying for Preparation of Financial

Statements
(In Nos)

Installed Capacity Per Hour

No.of Working hours

Industri Jumbo/
al
Milk
20
20
:

8hrs /Shift

Fruits &
Veg
20

Total
60

No. of Shifts Per Day

Installed Capacity Per

Day:

Industrial

Jumbo /Milk

320

320

No of Working days

Fruits &
Veg
320

Total (in
Nos)
960

300 days

Installed Capacity @ 100 % Capacity

Industrial

Jumbo/ Milk

Fruits & Veg

96000

96000

96000

Total (in
Nos)
2,88,000.00

Operating Capacity is assumed as under :Description

Industrial
Jumbo
Fruits & Veg
Total
Utilization (%)

2015-16
57600
57600
57600
172800
60

2016-17
67200
67200
67200
201600
70

2017-18
76800
76800
76800
230400
80

Raw materials Requirement

The average price of the raw materials with 20% wastage the average
price is 78,000.00
Sl.
No
1

Description

Qty in MTS Unit Cost

Amount

Plastic Granules

466.56

363,91,680.
00

78,000.00

Stores & Spares :- Stores and Spares are estimated at 5% of Raw

materials of Rs.
18, 19,550.00

Power & Fuel :- The unit requires 125 HP load of power and the unit run
for 10 hrs in 2 shifts in a day and 300 days in a year.
125x8x2x300x.746x.80x.60x6.50= 13,
96,512.00
Wages :-

Wages are calculated as under

S.
No

Description

No.of
employee
s

Salary/mont
h

Total/month Salary/yea
r

Works Manager

15,000.00

12

Accountantcum-Store
Keeper
Administrative
Assistant
Clerk
Skilled Workers

10,000.00

12

8,000.00

12

72,000.00

1
5

8,000.00
6,000.00

12
12

Semi Skilled
Workers
Unskilled
Workers
Peon/Watchma
n

5,000.00

12

4,000.00

12

72,000.00
3,60,000.0
0
1,20,000.0
0
96,000.00

3,000.00

12

36,000.00

3
4
5
6
7
8

1,80,000.0
0
1,20,000.0
0

10,56,000.
00

Other Manufacturing Expenses: - Other Manufacturing Expenses are

estimated of
5% on sales Rs. 23, 32,800.00
Administrative Expenses: - Administrative Expenses are estimated Rs
12,40,000.00 per year.
Selling Expenses: - Selling expenses are estimated at 2% on Sales
9,33,120.0
Packing Expenses: Packing expenses are estimated at 1% on sales 4,
66,560.00
SALES:
Sl.
No
1

Description

Qty In Nos

Industrial Crates
Jumbo Crates
Fruits & Veg Crates
Total

57600
57600
57600
172800

Unit Cost In
Rs.
255.00
285.00
270.00

Amount in
Lacs
146,88,000.00
164,16,000.00
155,52,000.00
466,56,000.
00

Depreciation :- Depreciation was been calculated on written down value

method
Plant & machinery

15%

Buildings

10%

Interest :- Interest has been calculated as per effective rate

Term Loan
Working Capital

12.50%
12.75%