Air Bubble Packing Sheet Manufacturing Unit [Rs. 9.96 million, Jan-2021]

Air Bubble Packing Sheet Manufacturing Unit [Rs. 9.96 million, Jan-2021]
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07 May 2021
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Bubble Wrap or Air Bubble Packing Sheet is a transparent plastic material that is mainly used to pack fragile and easily breakable items. The bubbles have regularly spaced protruding air-filled hemispheres, which function as the cushioning agent for sensitive and breakable objects. It is widely used in packaging of precious decorative items, ceramics, glass products, mirrors, artworks and other sensitive products including electronics, furniture items and home appliances etc., to provide a safe and protected transportation.

This particular pre-feasibility study is for setting up an ‘Air Bubble Packing Sheet Manufacturing Unit’ in any major industrial city in Pakistan. The proposed unit will be equipped with latest machine to produce the high-quality air bubble wrapping sheets that will be sold to wholesalers and industrial users. The unit will have an installed capacity to produce 105,000 kilograms of air bubble sheet in a year based on 300 working days on 8 hours single shift basis. However, initial capacity utilization is assumed 55% with 5% annual growth, 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 are key factors for the success of this business.

Total project cost is estimated as Rs. 9.963 million with capital investment of Rs. 9.423 million and working capital Rs. 0.540 million. Based on an equity finance model, the project NPV is around Rs. 6.418 million, with an IRR of 29% and Payback Period of 4.17 years. The project will provide employment opportunities to 5 people including the Owner. The legal business status of this project is assumed to be ‘Sole Proprietorship’.

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