PVC and UPVC pipe manufacturing business

PVC, UPVC Pipe Manufacturing business is discussing in this post about the details of establishment. The Pvc (poly vinyl chloride )Upvc (un plasticized poly vinyl chloride) are making with the help of one machine. PVC, upvc pipes are mainly using for construction work, irrigation, electrical work and for agricultural farming.

It is very essential to make a market study on this business before you establishing your unit. Because various types of PVC pipes are already available in the market such as PVC wiring pipe, PVC plumbing pipe, UPVC and CPVC.

In PVC, product with different qualities and sizes are available in the market. So, you should identify which is the mast demanded and best seller PVC pipe in the market from your market study.

You also should note which quality and size of pipe is highly demanded in the market. Obviously, you need to have an adequate volume of small or large amount of investment as per your requirement to establish this unit.

You can either start PVC pipe manufacturing as small scale industry or by medium size industry. The amount of investment is subjected to vary based on your requirement.

In this article, we are discussing about the investment, marketing and expected profitability of both PVC and UPVC manufacturing unit. Because both products can be produce in same machine.

Investment for pvc and upvc pipe manufacturing business

In this section we have listed main items of investment expenditures to establish PVC and UPVC manufacturing business.

Building and Electrical Wiring Investment
Machinery and Equipment Investment
Electrical Connection and Paper Clearance Investment

Building and electrical investment

We need a building consisting of the area with 4000- 5000 square feet to establish a PVC and UPVC production unit. You can start it in your own place or in rental place. If you make 40000 square feet building in GI pipe and sheet ,the investment will be 10 Lakh INR.

Land for building (select suitable land for pvc production)

If you are referring your own land to establish the unit, you should ensure that the place is suitable for this purpose. The most suitable location for this kind of industries is government or private industrial plots or zones.

We can utilize those kinds of plots by taking it from government by a lease agreement for the duration of 35 to 90 years. And we can also purchase those plots from the hands of private individuals.

If we are taking it for rent, no need to consider the expenditure for plot in this calculation.

investment on machinery and equipment in pvc and upvc pipe

To calculate investment on machinery and equipment pvc and upvc pipe. We need to have a clear idea about all machineries and equipment which is essential for the production of PVC pipe. Following are the necessary machines for the production process of PVC or UPVC pipes.

Following are the necessary machines for the production process of PVC or UPVC pipes.

Material Mixer
Production Extrusion
Cooling Tang
Different size of die set
Take up or Traction
Automatic Cutter and Automatic Socketing Machine
Scrap Grinder Machine

Contact for machinery

Spideral Konical extrusion
Chennai Tamil nadu
PH : +91 98417 25731

Cemax extrusions
coimpature
Tamil nadu
PH: +91 9789647825

Various brands these machines of different companies are available in India. If you are establishing a production unit of both PVC and UPVC pipe, approximately 57 lakh rupees or above is required as machinery investment.

Electrical Connection and Paper Clearance Investment

Now we can make an approximate calculation of investment expenditure for paper clearance and electrical connection. For electrical connection, you have to install separate transformer for your unit.

Because, this kind manufacturing units are need the power connation with the capacity of above 100 HP. That’s why it is compulsory to install a separate transformer.

For this purpose you have to deposit around RS 260000 to 4 lakh rupees in accordance with the instruction of electricity board.

As it is a manufacturing unit, it need pollution certificate, Panchayath license, clearance pars from fire and safety and health department. But if it is located in industrial plot, you don’t need much investment for paper clearance.

Anyhow, you have to spend around 1 lakh rupees for paper clearance. In this situation the total investment expenditure to establish a PVC and UPVC manufacturing unit is 70 lakh and above in INR.

How about the working capital for pvc and upvc pipe production

By a PVC and UPVC pipe manufacturing machine we can produce huge quantity of output in a day. Approximately, you can produce 2 to 4 tone output in a single day based on the capacity of machine.

This type of machine usually has the capacity of 200 kilograms. Therefore, you can produce around 52 tone output in a month if you are running it in one shift.

If you are operating he machine for 24 hours, you can produce around 104 tone output. You have to arrange the working capital to run your machinery at least for three months. For a newly established company, it is necessary to have 72 lakh rupees as working capital to run it for one month if they are planning to run it in one shift.

Raw material for pvc pipe making business

Various forms of PVC pipes are available in the market. Here, we are mainly explaining about the raw materials for PVC plumbing pipe and UPVC cold hot water pipe.

The most important raw material to produce PVC pipe is the virgin material of PVC resin. You have to add chemical and filler to it.

We can use Calcium Carbonate (CC) as filler. If you prefer to manufacture ISI quality pipe, you have to use 2 kg filler to it. If you prefer to produce non-ISI product, you can add about 8 kg to 20 kg filler component to it.

In prevailing market price, Resin has the price of RS 140 for a kg. But the prevailing market price of Calcium Carbonate, which is used as filler, is RS 15 to RS 20/kg.

Chemicals for pvc

After that you have to add the chemicals for pvc pipe like stabilizer, wax, stearic acid, titanium. There for you also have to use chemicals to produce different colors like ivory, red, green and blue.

Raw materials are easily available in all times even though it may face a tight in very rare situations. The most branded Resin virgin materials are LG and Finolex. Some other kind of imported brands are also available in market in different grades.

PVC pipe market study

UPVC and PVC pipes have wide market opportunities especially in the areas of irrigation, construction and government sections. PVC pipes are highly demanded and mostly soled for government projects and works. Like irrigation activities, drainage systems and for construction work.

Different types of PVC pipes with different sizes and quality are available in the market. Most important types of PVC pipes are PVC wiring pipe, PVC pluming pipe, UPVC and CPVC pipes.

Usual sizes of PVC wiring pipes are 16, 20, 25 and 32. Within these sizes, many types of pipes are available with different qualities especially pipe with ISI mark and non-ISI quality pipe.

In the case of plumbing pipes, many sizes of pipes are producing and the size will vary from 0.5 inch to 8 inch. Among these sizes also many types of quality products are available.

pvc pipe Demand from different area

As a more populated country like India, PVC pipes will have huge demand in the market. You can market it through various forms. Many companies are following direct marketing strategy.

Some companies are supplying products only for government projects and accepting quotations only from the side of government. Some of the companies are completely depending on distribution side.

But some of the companies are marketing their product by adopting all these three forms of strategies. So, it is obvious that PVC and UPVC pipe manufacturing business has huge market potential and scope.

Profit from pvc pipe production line

This section deals with the calculation of profit margin from PVC and UPVC pipe manufacturing unit. It is possible to earn a huge amount of turnover from this unit. Because, the production capacity of its machine is from 2 tons to 4 tone in a day.

If it is making at least 10 rupees profit from one kilogram, it can be earn RS 20000 as profit in a day if it is producing 2 tone output per day. Usually most of the companies are making the profit of 10 to 25 rupees from one kilogram production.

We will get a minimum of 26 working days in a month. Even if we are considering the 10 rupees basic profit margin of one kilogram, we can earn the total gross profit of RS 520000 in a month.

monthly expenses from pvc pipe production line

Now we can calculate the total expenditure in a month. Main item of expenditure is electricity bill. As it is a manufacturing unit, we should calculate around 60000 rupees as electricity bill in a month.

The minimum number of labour to run a considerable size of unit is five. So we have to spend 75000 rupees to pay salary for those five workers.

Other main heads of expenditures are maintenance cost and cost for marketing and transportation. We have to expect less than 50000 rupees for these expenditures.

Net profit from pvc pipe production line

Therefore, the total expenditure to operate this type of a unit in a month is 180000 rupees. So, by deducting the total cost of 180000 rupees from the gross profit of RS 520000, we will get a net profit of RS 340000 in a month. Therefore is best business opportunity which securing a huge amount of expected profitability.

Conclusion

PVC and UPVC wiring and plumbing pipes are the essential and unavoidable product in anywhere of the world. By the term UPVC we mean that the product has the quality of American standard.

PVC pipe manufacturing unit is a good business opportunity which has big market and highest expected profitability. Any way it needs a considerable amount of medium level investment expenditures.

We have included all the aspects of this business and detailed market study in this article. To get more details and any help to establish this business, feel free to contact with the business consulting agency of “Look Solution”.