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Hot Melt Adhesives Production for Corrugated Board

Hot Melt Adhesives Production for Corrugated Board

Capacity 0 Plant and Machinery cost 0.00 Lakhs
Working Capital 0.00 Rate of Return (ROR) 0.00 %
Break Even Point (BEP) 0.00 % TCI 0.00 Lakhs
Cost of Project 0.00Lakhs

Description:

Hot Melt Adhesives Production for Corrugated Board. Investment Opportunities in Manufacturing of Packaging Adhesives

 

The hot melt adhesives are thermoplastic adhesive. This adhesive can melt and flow when heated and become rigid on cooling for providing the sturdy adhesion to the surface. They are commonly known as hot glue. Generally, available in the solid cylindrical sticks having various diameters. They are designed to be melted in an electric hot glue gun. The major driving factor for hot melt adhesives market across the globe is low price and potential to be used as a substitute for the other adhesives.

Hot melt adhesives, also known as hot glue, and are in the form of thermoplastic adhesive which is applied using a hot glue gun. The variety of polymers in this class is wide and includes both natural and synthetic ones. It is commonly sold as solid cylindrical sticks of various diameters and can also be applied by spraying or dipping.

Hot melt adhesives are generally 100% solids formulations based on thermoplastic polymers. They are solid at room temperature and are activated upon heating above their softening point, at which stage they are liquid, and hence can be processed. After application, they retain the ability to wet the substrate until they solidify. Upon solidification, they return to a physical state that has structural integrity and can function as an adhesive. The adhesive is applied by extruding, rolling, or spraying and joining is carried out immediately after application or after reheating the solidified layer. The variety of polymers in this class is very wide and includes both natural and synthetic polymers.

Hot melts are used in industry for a wide range of applications. The packaging industry (manufacturing of packaging from paper, cardboard, and corrugated board) is one of the major users. Hot melts are also used in the printing industry for bonding the spines of books, in the textile industry for bonding appliqué, and in the shoe-making industry for bonding for example shoe soles. The wood processing industry uses hot melts for veneer surrounds and edging. The automotive industry employs hot melts for a host of applications including bonding insulating and cushioning materials, bonding headlight covers into metal frames and for wheel covers. The electronics industry also uses hot melts, for example for bonding coil windings and coil ends.

There are several kinds of industrial adhesives available on the market. Hot melt adhesives are polymer based, and are thermoplastic in nature, meaning they are solid at room temperature. These are generally applied as either a molten film or in a series of beads that is converted to a solid form when the materials cool and set. Because hot melt adhesives do not utilize water or solvents, they also have a very fast set time, which makes them the more popular kind of industrial adhesive.

Types of Hot Melt Adhesives

The two most popular types of hot melt adhesives are ethylene-vinyl acetate (EVA) and polyolefin, or metallocene.

1. Ethylene-vinyl acetate (EVA) – this form of hot melt adhesive works well with paper and cellulosic materials and has a wide range of formulation. These adhesives set quickly and offer strong resistance properties and operate in a moderate range of temperatures. They are used in the packaging, converting, paper, automotive, and assembly industries, and are a generally more affordable kind of hot melt adhesive.

2. Polyolefin – these hot melt adhesives are made with a catalyzed metallocene base, and has excellent adhesive qualities and an even faster set speed. It is also extremely resistant and services a vast range of temperatures. These adhesives are also used in the packaging, converting, and assembly industries, but are limited in their range of available formulations; they are also generally more expensive, but definitely more economical on a per-use basis.

Advantages

There are several advantages to using hot melt adhesives. Hot melt adhesives have a very fast set speed, and feature moderate resistance properties. Depending on the formulation being used, they also are also applicable in a wide range of temperatures and industries, and feature excellent adhesive qualities. Along with their affordability and quality, these features continue to make hot melt adhesives the more popular form of industrial adhesive currently available on the market.

Market Outlook

The global market for hot melt adhesives is gaining significant impetus from the rise in the trading activities, leading to a high demand for packaging. The increasing construction activities across the world is also fueling the need for hot melt adhesives substantially. On the other hand, the volatility in crude oil prices and the easy availability of substitutes are likely to create hindrances in the higher adoption of hot melt adhesives across the world in the years to come.

Overall, the worldwide market for hot melt adhesives is expected to report thriving success over the next few years, rising at a CAGR of 5.20% between 2016 and 2024. The opportunity in this market is projected to increase from US$6.00 bn in 2015 to US$9.44 bn by the end of 2024.

Strong demand in construction sector is projected to positively influence the global hot melt adhesives market over the forecast period. Growing construction spending in emerging countries such as China, Brazil, India, Malaysia, Indonesia and Vietnam is expected to boost the hot melt adhesives market. Increasing demand for pressure sensitive industries which use hot melt adhesives is forecasted to increase international trade thereby aiding the overall market. Hot melt adhesives ability to instantly bond with reengineered plastics, ceramics and various other types of composites over other conventional adhesives is expected to drive the overall market. Newer industry participants have been crucial for the market growth. Initiatives to overcome supply demand imbalance by developing lucrative applications may help in gaining competitive advantage over the other market players. Continuous demand in this market has led to huge technological advancements, which has further grown the hot melt adhesives market. Growing demand for polyolefin based adhesives is expected to bolster the hot melt adhesives market. Switching from the solvent based conventional adhesives due to its hazardous effects is touted to fuel the hot melt adhesives market growth. Strong adhesion without having to reapply after the application is another advantage over other solvent based adhesives.

The global hot melt adhesives market has witnessed sustainable growth due to increasing demand of HMAs in various applications such as furniture & woodwork, nonwoven hygiene products etc. Furthermore, the overall market is also being propelled by the swiftly increasing demand from emerging countries such as China and India. Extensive growth in the packaging and nonwoven industry are some of the major factors responsible for this growth. The market is further boosted by technological advancements in hot melt adhesives by various vendors across the globe. One of the prominent trend witnessed by this market include surging use of HMAs in road marking application. However, the global hot melt adhesives market is hampered by lower thermal resistance and volatility in the raw material prices.

The hot melt adhesives market has been segmented by type, application and geography exclusively. Based on the types hot melt adhesives commercially available, the market is categorized into ethylene-vinyl acetate, polyolefin, polyurethanes, polyamides and others. Each type varies greatly and the composition is different with different technical specifications. The key user segments automobile industry, construction industry, electronic industry, food and beverage industry, industrial assembly, packaging industry, textile industry, wood working industry and others.

However, the preferences of consumers for vehicle designs are changing, leading to the development of new and more sophisticated vehicle designs using lighter gauge metals, plastics, nonferrous metals, and coated steels; thereby creating the need for new assembly methods. This is resulting in the increasing use of hot melts for joining automobile parts.

Other major application of hot melt adhesives includes building and construction, paper converting, woodworking, tiles and floor adhesive product, bookbinding, clear case bonding, soap & bubble gum wrapper coating, footwear & leather goods, stock & tapes manufacturing, bottle labeling, automotive headlights and glue sticks.

Increasing demand from high speed manufacturing companies is driving the global hot melt adhesive market. Additionally, changing trend of the packaging industry (largest end-user of hot malt adhesive) is expected to increase the global demand for hot melt adhesive products. Also, government policy by EPA (environment protection agency) in the U.S. and European country for using ecofriendly product is further expected to increase the demand for hot melt adhesive products to some extent.

The automotive industry employs hot-melt adhesives for a host of applications, including bonding insulating and cushioning materials, bonding headlight, fixing cables in the roof liner, bond door sill protectors, and other plastic parts and for wheel covers.

The packaging, construction, non-woven, book binding and paper binding, furniture, footwear, and the electronics industries have surfaced as the key end users of hot melt adhesives. The packaging industry has been reporting the most prominent demand for hot melt adhesives and is expected to retain its position as their leading consumer over the coming years. The construction sector is also projected to report a high demand for hot melt adhesives in the near future.

 

Few Indian major players are as under:

·         Anabond Ltd.

·         C I C O Technologies Ltd.

·         D H Resins & Chemicals Pvt. Ltd.

·         Golden Chem-Tech Ltd.

·         H B Fuller India Adhesives Pvt. Ltd.

·         Henkel Adhesives Technologies India Pvt. Ltd.

 

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Information

  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
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  • Caution: The project's cost, capacity and return are subject to change without any notice. Future projects may have different values of project cost, capacity or return.

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


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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.


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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