HDPE pipe manufacturing (High Density Polyethylene) business is a huge profit earning business in India. This post is analyzing the business opportunity of HDPE pipe manufacturing field. As we all know, HDPE pipes are used to carry water from one area to another.
Mainly these pipes are using for the purpose of irrigation especially in hill areas. Now we can examine why HD pipes are using for this purpose. Firstly, we can produce these types of pipes in any size of length. So, it is extensively using to pump water to the areas which has the distance of 500 meters or 1 km.
We can adjust its length in production based on the requirement of the customer. HD pipes will have the huge quantities of orders. Therefore it is possible to earn huge profit from this field. The quality of pipes is determined by the production techniques of two layers or three layers.
In two layers HDPE pipe manufacturing there will be a small coloring slid in one side of black color pipes. In three, layer pipes, there will be a white quoting in inside of the pipes and it will have good quality. We have given all the details to establish this kind of a unit in following sections.
Investment for HDPE pipe manufacturing business
The Investment for hdpe pipe making business also needs considerable investment for building, machinery, electrical connection, paper Clarence and working capital.
When we are constructing a building, we should have a clear plan and the idea about the production method and its machines. When we choose machine, you must ensure its capacity and it should be adequate to meet our needs. And finally, you should make a detailed market study on this in advance.
Building investment
HDPE pipe making business needs either two or three layer extrusion process. So your building space should be based on this production method and your requirement. Anyway here we have given a small plan about its required building.
The building is essential to have a shed with the minimum size of 10 meter width and 20 meter length to establish this kind of a unit. You can also purchase this kind of a building or buy it for rend.
If you are using this for rend, you can avoid the expenditure for building construction. A building with 10 meter width and 20 meter length will have the area of 2152 square feet. If you don’t need any amount for foundation work, approximately RS 250 will be enough for one square feet. So, in total, it needs RS 538,000 for the construction of building
Machinery for HDPE pipe making plan
Machinery for HDPE pipe making plan are usually manufacturing by the method of two layer and three layers extrusion process. Main essential type of machinery for this process is a machinery to mix raw material.
For two layers HDPE pipe making machine we need two extrusion machines and for three layers we need here extrusion machines. We can set this machine in accordance with your requirement.
In Kerala, most demanded sizes of HDPE pipes are the pipes up to the size of 3 inches. So, we need die heads to manufacture the pipes with the size from 0.5 inch to 3 inch.
Contact for machinery
Cemax extrusion
Coimpature Tamil nadu
PH: +91 9789647825
Zeenath Industries
Ganapathi coimpature
Tamil nadu
Ph :+9193676 44144
In addition to this, we need cooling sizer and cooling tang also for HDPE pipe making process. The pipes which have passed through die head after cooling can be taken by using take up.
For this purpose we need traction. And a control panel also necessary to control all these machines. In control system, there will be 4 AC drives for three layer and 3 AC dives for two layers. To install this kind of machines, approximately you need RS 1,590,000. To know more about this machine and to purchase it, feel free to use following contact details.
Investment for Electric connection and work
Perfect electrical wiring is compulsory for its electrical connection. For three layer machine, we need 25 hp capacity motor. So our electric connection should be in accordance with this capacity. Electrical investment includes adequate wiring to run this type of a machine, starter and panel boards.
For this purpose, approximately you have to invest 250,000 rupees including electrical connation. If you don’t have the access of three phase line to your unit, your expenditure for electrical connection will proportionately increase.
Besides this, if there is no adequate power allocation in your nearest KSEB, you should install a transformer also for your purpose. For this purpose also, you will have additional investment expenditure.
Investment for license HDPE
Investment expenditures for paper clearance will vary on the basis of types of your business like partnership business, private limited or proprietorship business. Here we are examining the procedures for the paper clearance of proprietorship business.
Mainly it need clearances form Panchayath, Pollution Control Board and the registration of GST. To get clearance from Pollution Control Bard, you have pay the proportionate charge on the basis of your total investment. For example, you have to pay around 40,000 rupees in Pollution Control Board for a unit with the investment of 25 lakh rupees.
For Panchayath license, you need building number. To construct a building, you will have building tax, professional fee and license fee. All these need a sum of around 25,000 rupees. Through one time registration in K- Swift, it is very easy to clear all these process. Any way, it is important to clear all these in three years. In addition o this, y need about 5000 rupees for GST registration.
HDPE pipe Production process
In the production process of HDPE pipes, mainly we need the HD resin and granules as raw materials. After mixing all these necessary raw materials by using mixer, we have to put it in to copper.
Then we will have extrusion process by heating it with a required degree Celsius. Then it has to melt and flow through barrel screw to make HD pipe. For this purpose, you have to put raw material into extruter.
When we on machine, it will melt and flow throw die head. This melted material has to go through sizer and then it has t be cooled to form it as a rigid pipe. After this process it should take by using take up and it has to be passing through traction.
The traction will make it as in the form of a pipe automatically. After rolling it we can cut it on the basis of your required sizes to make it as a final product. This is the production method of a HDPE pipe.
Raw material for HDPE pipe
Its raw materials for hdpe pipe making are available in market abundantly. Two types of raw materials are mainly using for this process.
Most commonly using martial is virgin HD material. Another one is scrap grained granules. Both these materials are easily available in market. But if you are using grained granules, the quality of product will change. When we using granules, the quality will be low and if you are using virgin material the quality of your product will be high.
To add color we have to use color agents and the chemicals like elasticizer and plasticizer. In the above mentioned production process, we should care to use adequate amount of chemical to set batch.
It is important to produce quality product. The prices of all these raw materials will fluctuate in different times in market. For any product, the quality is determined by its HDPE raw material and its quantity and the technology of the machines. It is also important to have an experienced and skilled operator for production process.
Profit from HDPE pipe making business plan
The Profit from HDPE pipe making business plan is mainly determined by the production capacity of machine, market demand and your earnings. The best type of production method is very important to make high profit.
Because it is very important to meet quality and you can provide different types of quality products with different brand names. Your profit will vary on the basis of raw material.
Daily profit calculation
Her we are calculating the expected profit of a machine with the production capacity of 70 kg to 100 kg in an hour. Usually you can make a profit of RS 40 to RS 70 out of one kilogram production. On an average, the production capacity of one shift will be 700 kg to 1000 kg in the marketing of distribution side; its profit margin will be 15 rupees to 25 rupees in one kg production.
Here we are assuming that average production is 800 kg in a day and average profit margin is 30 rupees. In this case, RS 24000 can be earning as gross profit from HDPE pipe in a day.
Daily expenses
Here, main expenses are electricity, labour cost and transportation cost. We have to deduct all these expenses from gross profit to get net profit. To operate one machine, we need three labors. So, we will have RS 2000 as labour cost.
On an average, RS 1200 will be the electricity cost to run a machine for 10 hours in a day. The transpiration cost in a day will be RS 2500 and we have to calculate RS 200 as depreciation expense in a day.
Net profit from HDPE pipe making business in a day
So, after deducting all these costs from gross profit, we will get 18000 rupees as net profit from HDPE pipe business plan in a day. The main problem in this business is it is a seasonal business in Kerala. In all over India also it has a good market and you can also adopt the strategies to promote exports.
Market potential of HDPE pipe or marketing tips
In marketing, many strategies are used by different entrepreneurs. Small size of units is mainly concentrating in local area marketing. From local area marketing, it is possible to earn huge profit.
For this you should have a sale man and market representative. In this we can directly approach clients and accept orders within your district or nearest towns. Another marketing method is we can supply t through distributors.
The main feature of this method is we can supply huge quantity of product at a time. So here risk and efforts are low even though the profit margin is low. Here you have to identify the main distributors in your locality and other areas.
After identifying main distributors, you can supply your product to local suppliers thorough them. Another important strategy is that you can export your products to other states. In any form, it is assure to secure a minimum amount of profit.
Conclusion for HDPE pipe manufacturing business
HDPE pipe manufacturing business is a best business opportunity which can be establish by the assistance and subsidy of government. In this article we have given all the details relating with this unit.
If you are interested to establish this unit, you can get all the instructions and consulting to understand the way to access government subsidy and how to establish it at a minimum possible lowest cost of investment. For the consultancy, you can contact with above given details.
All the information given in this article is purely based on our market study in this field. You might be very successful in this business if you are start this based on these information. On the other hand, if you face a loss in HDPE pipe business, we will not be responsible for your loss.
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