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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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Contact us:

Niir Project Consultancy Services

An ISO 9001:2015 Company

106-E, Kamla Nagar, Opp. Spark Mall,

New Delhi-110007, India.

Email: npcs.ei@gmail.com  , info@entrepreneurindia.co

Tel: +91-11-23843955, 23845654, 23845886, 8800733955

Mobile: +91-9811043595

Website: www.entrepreneurindia.co  , www.niir.org

 

 

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ABOUT NPCS

 

NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

Our various services are: Detailed Project Report,  Business Plan for Manufacturing Plant, Start-up Ideas, Business Ideas for Entrepreneurs, Start up Business Opportunities, entrepreneurship projects, Successful Business Plan, Industry Trends, Market Research, Manufacturing Process, Machinery, Raw Materials, project report, Cost and Revenue, Pre-feasibility study for Profitable Manufacturing Business, Project Identification, Project Feasibility and Market Study, Identification of Profitable Industrial Project Opportunities, Business Opportunities, Investment Opportunities for Most Profitable Business in India, Manufacturing Business Ideas, Preparation of Project Profile, Pre-Investment and Pre-Feasibility Study, Market Research Study, Preparation of Techno-Economic Feasibility Report, Identification and Section of Plant, Process, Equipment, General Guidance, Startup Help, Technical and Commercial Counseling for setting up new industrial project and Most Profitable Small Scale Business.

NPCS also publishes varies process technology, technical, reference, self employment and startup books, directory, business and industry database, bankable detailed project report, market research report on various industries, small scale industry and profit making business. Besides being used by manufacturers, industrialists and entrepreneurs, our publications are also used by professionals including project engineers, information services bureau, consultants and project consultancy firms as one of the input in their research.

Our Detailed Project report aims at providing all the critical data required by any entrepreneur vying to venture into Project. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line.

 


And before diversifying/venturing into any product, wish to study the following aspects of the identified product:


• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period


We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.

 

The report contains all the data which will help an entrepreneur find answers to questions like:

• Why I should invest in this project?
• What will drive the growth of the product?
• What are the costs involved?
• What will be the market potential?


The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product.

The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.


Reasons for buying the report:

• This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, demand of the product and reasons for investing in the product.

• This report provides vital information on the product like its definition, characteristics and segmentation.

• This report helps you market and place the product correctly by identifying the target customer group of the product.

• This report helps you understand the viability of the project by disclosing details like raw materials required, manufacturing process, project costs and snapshot of other project financials.

• The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decision.

 

Our Approach:


• Our research reports broadly cover Indian markets, present analysis, outlook and forecast.

• The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players. 

• We use reliable sources of information and databases.  And information from such sources is processed by us and included in the report.

 

Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

 

 

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

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

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

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

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

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

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    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