Thermoform Food Container & Glass Manufacturing Unit [Rs. 109.65 million, Feb-2021]

Thermoform Food Container & Glass Manufacturing Unit [Rs. 109.65 million, Feb-2021]
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23 June 2021
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Thermoforming is a manufacturing process where a plastic sheet is heated to a pliable forming temperature, formed to a specific shape in a mold to create a usable product. The thermoforming is extensively used in making of disposable food containers, plates, cups and glasses. There is a huge demand of thermoform disposable items by small restaurants, cafes’, canteens, outdoor eating places and at events.

This particular pre-feasibility study is for setting up a ‘Thermoform Food Container and Glass Manufacturing Unit’. The focus of the business would be to manufacture quality thermoform disposable food containers and glasses for local consumption. The major target customers will be outdoor eateries, small restaurants, industrial canteens, cafes’, caterers and event organizers etc.

The proposed unit has capacity to produce 20 million thermoforming food containers and 60 million glasses in a year based on 300 working days with 08 hours operational per day. However, starting operational capacity is assumed at 65% (i.e. 13 million food containers and 39 million glasses). The glasses produced can be used for both cold and hot drinks. 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.

The estimated total cost of the proposed ‘Thermoform Food Container and Glass Manufacturing Unit’ is estimated at Rs. 109.655 million, out of which Rs. 107.810 million is the capital cost and Rs. 1.845 million is for working capital. Based on an equity finance model, the project NPV is around Rs. 86.633 million, with an IRR of 32% and Payback Period of 3.81 years. The project will provide employment opportunities to 19 people including the Owner. The legal business status of this project is assumed to be ‘Sole Proprietorship’.

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