1. Market Analysis and Physical
Distribution of Moulded
Plastic Industry
of
The power of
Presented by:
Alok Jain - 13

2. COMPANY PROFILE
• Dhunseri Petrochem & Tea Ltd. Is a Sole
proprietorship company.
• Mr. C.K. Dhanuka is the Executive Chairman.
• Company is engaged into Tea production,
Polyethylene Terephthalate (PET) production
& IT infrastructure development.

3. Molded Plastic Industry In India
• Oligopolistic in nature
• Cyclical Industry
• Industry’s expected growth rate is 25 to 30 per
cent in next 5 to 7 years as compared to 12 to 15
per cent at present.
• Asia is the world largest plastic consumer of
around 30 per cent of the consumption followed
by N. America with 26 percent & W. Europe with
23 percent of the consumption
• Key growth segment is packaging with 35 per
cent of the global consumption.

4. Objectives
1. Understand the undisclosed/under-disclosed
market of PET resin.
2. Distribution channel analysis.
3. PET bottle unit Set-up cost analysis at Haldia

5. Research Methodology
 Market research design – Descriptive type.
 Scope of research – Molded plastic industry.
 Data Source – Primary/Secondary.
 Research Approach – Survey method.
 Research Instrument – Questioner
 Sample size – 110 samples.
 Mode of collecting data – Respondent to be
chosen randomly.

6. SWOT Analysis for Molded Plastic
STRENGTH WEAKNESS
Industry Growth 12-15% Many authorized & un-
Huge un-tapped market authorized players.
Growing awareness Un-awareness among rural
among people population.
Un-organized sector.
OPPORTUNITIES THREAT
Sustained increasing Max. per cent of
market growth in coming un-authorized players
years. Too many un-authorized
Huge population for un- manufacturers dilutes the
taped market. profit margin.

7. Research and Analysis

8. Chart 1.
Classification of Respondent
10%
Vendor (11)
Consumer (99)
90%

9. Chart 2.
Awareness of using PET Vs. Glass according to Income
group
90
80
70
60
% of Awareness
50
40
30
20
10
0
>7 Lakh 4L to 7L 1.5L to 4L <1.5 Lakh Overall
Yes 84.75 68.65 58 51.5 61.25
No 15.25 31.35 42 48.5 38.75

10. Chart 3.
Awareness of using moulded plastic in different sectors
40
35
30
% of Respondent
25
20
15
10
5
0
Package package Pharma House Cosmeti Beverag Others
d d food use deco c e
drinking packing
bottle
Column1 36 28 12 8 5 9 2

11. Chart 5. Classification of sources of market
information to the vendors
60
50
% of Respondents
40
30
20
10
0
Other Manuacturers Internet Others
% 55 27 18

12. PET bottle unit Set-up cost Analysis
Particulars Cost (Rs.) – in Lakh
Machinery 86.20
Human Resource 34.80
Land & Building 35.00
Over head 23.75
Total 179.75

13. Key assumptions:
 300 days p.a. with two operating shifts per day &
8 hours / shift.
 Annual production capacity 75,00,000 bottles
 Capacity growth rate (yearly) 5 - 6 per cent
 Maximum capacity utilisation 95 per cent
 Electricity growth rate 10%
 Wages growth rate 10%
 Office equipment growth 5%
 Machine maintenance growth rate 5%

14. Financial Assumptions:
• List of Depreciation Rates:
 Building & infrastructure 5%
 Machinery & Equipment 10%
 Furniture & Fixtures 10%
• Project Finance:
 Project life 10 years (after 10 years a renovation
would be required)
 Debt: Equity Ratio 50:50
 Interest rate on long term debt 16%
 Discount rate for calculation of NPV 20%

15. Total cost Per Bottle
Size Weight Yearly R.M Cost / F. Cost / T. Cost /
(Grams) expected bottle (Rs.) bottle (Rs.) bottle (Rs.)
order in a b a+b
lakhs
.300 liters 9.5 15 1.80 2.20 4.00
.500 liters 15.5 20 2.40 3.50 5.90
1.0 liters 17.75 30 .90 1.60 2.50
2.0 liters 30.60 10 1.60 2.70 4.30
 Net Loss in a year is Rs. 1,75,000
Break even comes in 1 year 4 days

16. Limitations of PET bottles for entering
into alcohol industry
• PET bottles allow oxygen to pass through,
which will spoil most of the wines and beers.

17. DISTRIBUTION CHANNEL

18. Findings
Dhunseri Petrochem & Tea Ltd. Follows of multi
– party selling system of indirect distribution
system.
DPTL has a dependent channel arrangement of
contractual dealers, a long term contract is
committed between both the principal and the
distributors.

19. Findings Cont…
4 tier distribution channel followed by DPTL.
Manufacturer
Finished product
C&F Agents
Manufacturers
Distributors
Retailers
Consumers

20. Recommendations
Distribution channel for new PET bottle unit.
Manufacturer
Distributors
Customer
End user

21. Reference
http://www.gits4u.com/water/water16.htm
http://articles.economictimes.indiatimes.com
/2012-05-29/news/31888118_1_indian-
standards-bis-spurious-units
http://articles.economictimes.indiatimes.com
/2011-02-17/news/28554882_1_bottling-
plants-rail-neer-rail-neer
http://en.wikipedia.org/wiki/Distribution_(bu
siness)

22. THANK YOU

23. Annexure - 2
Human Resources Numbers Monthly Salary Yearly Salary
Chief Executive Officer 1 1,05,000 12,60,000
Production Manager 1 55,000 6,60,000
Accountant 1 22,000 2,64,000
Injection Machine operator 2 17,000 4,08,000
Blow Machine operator 2 15,000 3,60,000
Helpers 4 8,000 3,84,000
Guards 3 4,000 1,44,000
Total 34,80,000
BACK

24. Annexure - 1
Machinery units Rate (Rs.) Amount (Rs.)
Injection Molding Machine – Type - I 1 17,50,000 35,50,000
Injection Molding Machine – Type – II 1 13,50,000 18,50,000
Blow Molding Machine – Type - I 1 3,50,000 8,00,000
Blow Molding Machine – Type - II 1 8,00,000 6,00,000
Compressor 1 1,50,000 4,50,000
Cooling Tower 1 1,50,000 2,50,000
Chiller Unit 1 80,000 1,75,000
Lathe (8ft.) - Refurbished 1 1,10,000 2,10,000
Lathe (5.5ft.) - Refurbished 1 72,000 1,70,000
Pillar Drill 26 inches with pump 1 50,000 90,000
Facer 1 1,50,000 2,50,000
Shaper 26 inch 1 1,25,000 2,25,000
TOTAL 86,20,000
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25. Annexure - 3
Over head Expenses Amount (Rs.)
Insurance 1,75,000
Electricity 12,00,000
Furniture's & Fixtures 5,50,000
Machinery Maintenance 2,00,000
Stationary 1,50,000
Others 1,00,000
TOTAL 23,75,000
BACK