Converting plastic waste into tiles is an emerging concept, which is gaining popularity due to multiple advantages. They are more cost effective, take less processing time, light weight and easy to handle and install. Plastic tiles are produced from the plastic waste and are ideal to as pavement tiles in mosques, play areas, hospitals, gyms, lobby and laboratories, etc. These tiles are comprised of interlocking tab that hold the tiles together securely without the need for adhesives or the labor to apply them.
This particular pre-feasibility study is for setting up a ‘Plastic Waste Tiles Manufacturing Unit’. The proposed unit will produce 2X2 ft size tiles, weighing one kilogram each. Produced tiles will be directly sold to business consumers and for general consumer through wholesalers in major cities of Pakistan. The proposed unit has capacity to produce 432,000 tiles (180 tiles / hour) in a year based on 300 working on single shift (08 hours shift) basis. However, initial capacity utilization is assumed 60%, while maximum capacity utilization will be 90%. This production capacity is estimated to be economically viable and justifies the capital as well as operational cost of the project. However, entrepreneur’s knowledge of industry, competitive pricing and strong linkage with suppliers and wholesalers network are key factors for the success of this business.
Total project cost is estimated as Rs. 58.623 million with capital investment of Rs. 57.125 million and working capital Rs. 1.498 million. Based on an equity finance model, the project NPV is around Rs. 34.053 million, with an IRR of 28% and Payback Period of 4.23 years. The project will provide employment opportunities to 24 people including the Owner. The legal business status of this project is assumed to be ‘Sole Proprietorship’.