INTRODUCTION
Vermillion (sindoor) and bangles (kangan) symbolize prosperity and auspiciousness in Hinduism. It is not only worn as accessories on the body, representing a symbol of matrimony but is also offered to goddesses as a prayer token. Bangles were previously made manually under poor working conditions. However, with technology, many moulding machines can safely make bangles. These machines can also make small plastic bottles for carrying vermillion powder.
MARKET POTENTIAL
The global plastic containers market size was USD 55.80 billion in 2020. The market is projected to grow at a CAGR of 5% during the 2021-2028 period. The sudden rise in CAGR is attributable to the market demand and growth, returning to pre-pandemic levels. Plastic containers are mostly utilized in the packaging of food, beverages, pharmaceuticals, and cosmetics. These containers are becoming increasingly favourable for packaging food products due to their durability, lightweight, longer shelf-life, and protection from sunlight1. The India Plastic Packaging market was expected to register a CAGR of 2.5% during the forecast period 2021-20262. However, plastic packaging growth in the e-commerce space in the region is expected to be affected by the recent regulation on the ban of single-use plastics by 2022. Recyclable plastic granules have become more popular.
PROCESS
The manufacturing process consists of 3 main steps. The raw materials used for making bottles and bangles are small plastic granules. The moulding machine, which consists of a mould and a dye, is heated. Oil is spread out into the dye to make the granules non-sticky. The plastic granules are then put inside the heated dye and pressure is applied through the semi-manual hydraulic lever. The granules are then moulded into the required shape. This process is repeated separately for the container box, container cap, and bangles. The vermillion powder is manually put inside the container box. The boxes can also be sold empty for filling other powders like turmeric powder, naphthalene, etc. which are also used in prayer ceremonies.
BUSINESS FINANCIALS
Estimated costs and revenues are shared below based on standardized assumptions. These may vary from business-to-business basis capacity, efficiency, and other market factors.
Under the Work 4 Progress Programme of the Development Alternatives Group, such enterprises have availed government support through NLRM, with an average loan size of INR 50,000.
FIXED CAPITAL (One Time Expenditure)
| MACHINERY & EQUIPMENT | AMOUNT(INR) |
| Crystal Dibbi CM machine 3 pieces @INR 16,000/pc | 48,000 |
| Installation and training charges | 2,000 |
| Working Table | 14,000 |
| Total | 64,000 |
WORKING CAPITAL (Recurring Expenditure Per Month)
| RAW MATERIALS AND CONSUMABLES | AMOUNT(INR) |
| Plastic Granules for cap (40kg @ INR 150/kg) | 6,000 |
| Plastic beans for bangles (62.5kg @ 200/kg) | 12,500 |
| Plastic beans for dibbi (small boxes) (75kg @ 200/kg) | 15,000 |
| Vermillion powder | 800 |
| Lubricant oil (2 litres @ INR 150/ltr) | 300 |
| UTILITIES REQUIRED | |
| Electric Bill @INR 7 /unit | 1,050 |
| Rent | 8,000 |
| MANPOWER REQUIRED | |
| Entrepreneur’s salary | 10,000 |
| Total | 35,800 |
FINANCIAL SUMMARY (Annual)
| FINANCIALS | AMOUNT(INR) |
| Fixed Cost | 64,000 |
| Working Capital (for each cycle of 1 month duration) | 49,650 |
| Total Enterprise Cost | 1,13,6500 |
| Annual Revenue | 9,90,0000 |
| Total Expenditure (annual working capital) | 5,95,800s |
| Enterprise Profit | 3,94,200 |
| Payback Period (in months) | 2 |
BASIC ASSUMPTIONS
- Number of days operational – 25
- Number of machines required is one. The molds differ for each product and can be fixed in the machine for the desired shape
- Production efficiency – 75%
- Revenue Per Month is as follows
| Items | Quantity | Selling Price/Item (in INR) | Amount (in INR) |
| Empty plastic boxes | 18,750 | 1 | 18,750 |
| Plastic boxes filled withvermillion | 18,750 | 3 | 56,250 |
| Bangles | 15,000 | 1 | 7,500 |
Note: All figures mentioned are indicative and for reference purpose only. Development Alternatives Group bears no liability for accuracy. For any further information, please contact Development Alternatives on +91-11-2654-4100 or +91-11-2654-4200.
Star Entrepreneur
After facing continuous financial challenges, Taramani understood the local market and his experience to establish a plastic box manufacturing enterprise to sell sindoor. Since then:
- Availed a loan of INR 35,000 from NRLM connected through local coalition meeting
- Provided jobs to 5 people
- Monthly income of INR 12,000