Expanded Polypropylene (EPP) Manufacturing Business

Expanded Polypropylene (EPP) Manufacturing Business. Production of EPP

Expanded Polypropylene (EPP) Foam Market is expected to reach USD 1.30 billion

 

EPP is highly versatile and fully recyclable. Its other properties include excellent energy absorption, buoyancy, impact resistance, thermal insulation, water and chemical resistance, and high strength-to-weight ratio. EPP can be manufactured with a wide range of densities ranging from 10 to 180 grams per liter. It can then be transformed by molding into EPP with densities ranging from 16 to 265 grams per liter. Properties of EPP such as absorption of high-magnitude kinetic impacts without breaking down and re-attainment of the original shape after the impact are factors driving the market for EPP in several applications, especially the aircraft modelling.

Expanded Polypropylene (EPP) foam is a bead foam used in automotive and industrial packaging applications. They exhibit unique properties such as thermal insulation, excellent energy absorption, chemical and water resistance, impact resistance etc. EPP foams are used extensively in industrial packaging due to its cushioning capability and its flexibility provides excellent protection to complex shapes.

EPP foams are available in different densities called high density EPP grade and low density EPP grade depending on the application. High density grade EPP foams exhibit excellent strength and reduced weight property and are used in applications where energy management is a critical parameter. Hence, they are used in automotive applications such as passenger safety parts and automotive bumpers. Low density EPP grades are used in industrial packaging applications and medium density EPP grades are used in consumer products and furniture.

Applications

EPP is widely utilized by automotive manufacturers because of its performance benefits for energy management, lightweight, enhanced functionality, durability and recyclability.

Applications include seating, bumpers, stowage systems, door panels, pillars, floor levelers, parcel shelves, head rests, tool kits, sun visors and myriad filler parts.

Reusable industrial packaging, known as dunnage, is frequently made from EPP due to its durability and its inherent ability to absorb energy in transit. EPP is used increasingly in furniture, toys such as model aircraft and other consumer products due to its versatility as a structural material and its light weight, as well as other performance characteristics.

An added advantage is the fact that EPP components are environmentally friendly, sustainable and recyclable and in line with the end of life (ELV) automotive requirement. Expanded polypropylene has many applications. It is used in various types of cloth and textile products ranging from clothing to diapers. Its synthetic, non-absorbent nature also makes it useful in the medical industry. Surgical tools like sutures are often made from polypropylene.

 

Market Outlook

Global Expanded Polypropylene (EPP) Foam Market is projected to reach USD 1.59 Billion by 2023 at a CAGR of over 11% owing to the increasing demand of lightweight automotive parts made of EPP Foams. The increasing penetration of the product in applications such as packaging, consumer goods, and furniture is expected to have significant impacts on the overall market growth during the forecast years.

The increasing application scope of the product can be attributed to the superior product qualities such as durability, chemical & water resistance, thermal insulation, and recyclability. The growing demand for chemical and water-resistant materials in the packaging and consumer goods industries is slated to propel product demand over the forecast period.

The rising awareness of environmental concerns and increasing demand for fuel efficient and light weight cars is the major driver for the growth of global EPP foam market. There is an increase in production and consumption of automotive across the globe, which is expected to boost the global EPP foam market growth. The recyclable and light weight properties of EPP foam has enabled its application in wide range of industries such as packaging, aerospace, automotive etc.

The excellent strength and light weight along with enhanced absorption properties has facilitated its use in automotive crash prone parts. The use of high density EPP foam in heavy industrial packaging is expected to drive the growth of global EPP foam market.

The expanded polypropylene (EPP) foam market can be segmented on the basis of density, process, and application. In terms of density, the market can be divided into high, low, and porous. In terms of process, the EPP foam market can be segregated into solid-state processing and melt-state processing. Based on application, the market can be divided into automotive, packaging, textile, furniture, food & beverages, and toys.

Expanded polypropylene (EPP) foam, owing to its elasticity, thermal resistance, oil resistance, non-toxicity, recyclability, and shock-proof nature, is an integral part of the automotive manufacturing sector. Using advanced lightweight materials on even the most basic car parts can improve overall fuel efficiency as well. Owing to the aforementioned factors, the demand for EPP is increasing in the automotive sector. Moreover, there is an increase in production and consumption of automobiles across the world, which is expected to further boost the global EPP foam market growth.

The country is also the largest consumer of expanded polypropylene foam at the global level. Other emerging economies such as Brazil, India, and Mexico are projected to grow at a high rate in the expanded polypropylene foam market.

Top Players including- Kaneka Corporation, BASF SE, JSP Corporation, DS Smith PLC, Furukawa Electric Co. Ltd., Hanwha Corporation, The Woodbridge Group, Dongshing Industry Inc. and others.

 

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  •    Land & Building

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            Site Development Expenses

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             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

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            Technical Knowhow

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  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

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           Consumable Store

  •   Overheads Required Per Month And Per Annum

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             Royalty and Other Charges

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            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

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                Gross Profit

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                Total Cost of Sales

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                Net Cash Accruals

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                Current Liabilities

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             Debt Equity Ratio

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                Variable Cost & Expenses

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                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

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  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

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   Resultant PV Ratio

   Resultant DER

  Resultant ROI

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        Equity Capital

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        Determined Capacity P.A of Products/Services

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       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

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  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR