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How to Start Food Packaging Foil Manufacturing Business

How to Start Food Packaging Foil Manufacturing Business

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:

How to Start Food Packaging Foil Manufacturing Business. Production of Aluminium Foil - Big Profit Industry

 

Aluminum foils are produced by continuous casting and cold rolling of aluminum sheets. They are prepared in thin metal leaves and can be used to wrap around any product for packaging. They act as a major barrier to bacteria, oxygen, and moisture. These are used in the pharmaceutical and food and beverage sectors.

Packaging in today’s world has emerged as an integral part of the brand promotion. Owing to modern-day lifestyle coupled with today’s fast-paced life, customers’ inclination towards convenience packaging has increased.  Aluminum is a kind of metallic element available in abundance across the globe and is preferably used a barrier resistant material for packaging to safeguard food & beverages, pharmaceutical, cosmetics, etc. Aluminum foil sheets are readily used in the manufacturing of various kinds of containers as per packaging requirements.

Aluminium foil provides various benefits to the food and packaging industries. The consumers can heat or freeze food items in the foil container directly. Aluminium foil packaging material is a part of the flexible packaging material and is generally formed using aluminium sheets. Aluminium foil can be utilized to wrap around any product for packaging functions. It is produced through the regular casting and cold calling. Aluminium foil packaging is a sort of packaging, which arranges a resistant barrier to safeguard food, beverage, cosmetics and pharmaceuticals and helps in waste reduction. Aluminium packaging is extremely corrosion-resistant and chemically neutral. Moreover, it is hygienic and non-toxic in nature. The raw materials for aluminium foil packaging is produced utilizing aluminium sheets and it is a part of stretchable packaging material. The major users of aluminium foil packaging include pharmaceuticals, food and beverage industries. Aluminium foil wrap is produced through regular casting and cold rolling and thus it is favorable to be utilized to enclose around any product for packaging functions.

India, one of the fasted growing economies in the world is seeing a steady GDP growth in recent years.  Owing to strong economic growth and increasing middle class with growing disposable income, consumption of aluminium foil is growing fast in India. The change in life style which includes changed food habits has led to increased demand for foil packaging. Growing demand for ready to eat confectionaries and pharmaceutical products is another major growth drivers for aluminium foils industry in India.

Aluminum foils are easy to use, recyclable and consumer friendly product. Consumers can directly heat or freeze food products in the foil container. Its applications include personal care, confectionery, healthcare, beverage and varied industrial usage. It is widely used by food industry to pack roasting pans, baking pans, pizza pans, and cookie sheets. It comes in various sizes and shapes and can be easily customized to suit customer demand.

The use and demand for aluminum foil in pharmaceutical and drug industry is poised to grow at a faster rate than any other sector which may be primarily attributed to increasing demand to secure medicines safely. It is followed by increased demand across food packaging industry which includes railway catering services and chocolate production. Usage of aluminum in the manufacture of lamitudes is anticipated to increase as lamitudes might replace collapsible tubes in the future. In the case of milk, the consumption of foil for making milk cap bottles may decline over the next few years as milk tetra pack are expected to replace the milk bottle market.

Aluminium foil consumption in the Indian states like Maharashtra, Karnataka and Kerala has grown up dramatically by about 50 per cent in anticipation of the proposed ban on use of plastics in these three states.

In 2015, India exported an estimated 14,512 tons of aluminium foil and the total value of export stood at USD 3.1 billion which increased further to total at 16,448 tonnes in 2016. For the first eleven months of 2017, the export volume of foil is forecasted to total at 16,035 tonnes.

Aluminum Foil Packaging by Cosmetic Industry

The demand for aluminum foil packaging in the cosmetic industry will post a CAGR of 2.63% through the forecast period, and the market is estimated to be valued at 1.41 million tons by 2020.

The growth in the cosmetic industry is driving the demand for cosmetic packaging. Aluminum foil is used for the packaging applications in the personal care and cosmetic industries. This provides protection to the products internally and enhances the appearance of the packaging externally. Cosmetic content includes the application of special oils, vitamins, herbal and chemical compounds, which requires protection from light and contamination.

The demand in the global aluminum foil packaging market is anticipated to increment at a CAGR of 4.8% during the forecast period of 2017 to 2025. This prosperity of the market for aluminum foil packaging is a reflection of a number of factors, such as high preference for convenience packaging, growing demand for extended shelf-life of packaged food, popularity of ready-to-eat meals and processed food, and growing usage in pharmaceutical products and confectionaries. On the other hand, the lack of proper recycling processes in a number of countries and competition from alternatives are a few obstructions faced by the global aluminum foil packaging market. Nevertheless, growing emphasis on ecofriendly packaging and foray by the key companies in the emerging economies is expected to open new opportunities in the aluminum foil packaging market.

Robust economic growth along with rising middle population with inclining personal disposable income is anticipated to intensify the growth of global aluminium foil packaging market during the forecast period. The change in life style which includes changed food habits has led to inclining demand for packaging. Besides this, robust demand for aluminium foil packaging in snacks and chocolate industry are also strengthening the growth of aluminium foil packaging market all across the globe. Some of the major opportunities in global aluminium foil packaging market includes technological development to enhance the product quality, reduction in plants lossess, inclination in the obtainability of foils in different forms for crucial mass consumption usages and progress in the exportability of aluminium foils. The global aluminium foil packaging market is foreseen to observe a robust CAGR during the projected period.

Global Aluminum Foil Demand by Type:

·         Rapid industrialization coupled with heavy air conditioner usage in India, Egypt, Iran, and UAE boost the need for industrial aluminum foils

·         Blister foil is the major application in pharmaceutical industry, medical industry boom in emerging economies foster demand for aluminum foils

·         Rolled Aluminum Foil: Aluminum foil is primarily consumed by packaging, transportation, and construction sectors

·         The packaging industry took the largest share, approx. 41 percent, during 2016, followed by transportation

·         It is projected that global rolled foil consumption might increase by 5 percent CAGR from 2016–2021 with the transportation industry being the largest market Backed Aluminum Foil: These include laminated, embossed, backed with paper, plastics and adhesives. Foil tapes constitute a major part in backed aluminum foils. These are driven by their growing use in electrical and construction purposes giving superior adhesion and extended life

·         Developed regions are expected to show moderate growth for backed aluminum foil used in industrial purposes, especially from the electricity sector that uses such foils for insulation purposes

The market can be segmented into packaging applications and non-packaging applications. Packaging applications involve protecting the food from climatic, chemical and physical hazards. Non-packaging applications which utilize the property of conductivity of this foil include cable and capacitors wraps, the heat exchanging tube fins for air conditioners.

Due to high availability of substitutes in the food & beverages industry, packaging and quality of product have always been the key competitive factors. Also, this is one of the major reasons that why food and beverages manufacturers invest more than 11% of the revenue on packaging. Dry foods, like aromatic herbs and spices, are best preserved when packed in aluminium packaging medium. Lined cartons are the most favorable packaging method for many dry food products. Latest innovations in packing, like cylindrical design for an easy-to-open packaging mechanism, protective membranes under a plastic re-closable lid for repeated usage, and perforated top seam for easy opening, are revolutionizing aluminium foil packaging in the food industry.

 

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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