PVC INSULATION TAPES

INTRODUCTION
For manufacturing Electrical insulation tapes cotton fabrics or PVC can be used.
Pressure sensitive PVC Tapes have become very popular as an electrical insulation
material. The major characteristics of insulation tapes are that they should be water
resistant, oil resistant and temperature resistant.
The pressure sensitive adhesives are composed of a rubbery type elastomer combined
with liquid or solid resin tackifier component. Sometimes, a mixture of resins can also be
used to obtain specific properties otherwise not obtainable by using the resins singlely.
The rheological properties of the adhesive can be altered by the addition of fillers. Antioxidants are used to stabilize the adhesive against oxidation, and light and heat
degradation. Adhesives for electrical insulation and high temperature applications,
sometimes contain a small amount of a heat curing oil or soluble phenolic resin. In this
case, an alkaline filler or zinc resinate is used as a catalyst to promote the reaction
between the phenolic resin and rubber. The adhesives are cured by the application of
heat.
The films are generally coated with a very thin anchor coating called a primer, to
improve the bonding of the adhesive to backing.
MARKET
Plastics have become an important part of modern life and are used in different sectors
of applications like packaging, building materials, consumer products and much more.
Each year about 100 million tons of plastics are produced worldwide.
Demand for plastics in India reached about 4.3 million tons in the year 2001-02 and
would increase to about 8 million tons in the year 2006-07. Currently, however, the per
capita consumption of plastics in India is only about 3 kg compared to 30-40 kg in the
developed countries. The present market in India is of about Rs. 25,000 crore.

INSTALLED CAPACITY
Product

Installed

No of working

Capacity per

Capacity per

capacity

hours per day

day

annum

per hour

300 days per

annum

PVC Insulation 275

2200

660000 Sq ft

Tape
PLANT AND MACHINERY
No.
1.

Description
One meter working width Adhesive

Qty

Price

(Nos.)

(Rs.)

Whole Unit

28,50,000

Coating Plant for PVC Tapes consisting of the following :

(i) Unwinder for Primary Web with tension control.

(ii) Rotogravure Printing unit

(iii) Drying Tunnel - 60 ft. length

(iv) Chilling Roll/Surface Support Roll

(v) Pneumatic/Hydraulic web aligner

(vi) Dancing Roller, Accumulator, Rewinder

1 each

(vii) A.C. & D.C. Motors, Control cabinets,

Air Blowers with Temperature Controllers etc.
2.

Slicing M/c. complete with 2 HP

Whole Unit

6,50,000

"

1,25,000

Motor, Starter & Circular Knives.

3.

Attriator cum Emulsifier 200 Lit.

capacity with 5 HP A.C. Motor.

4.

12" X 26" Three Roll Mass Grinding

2,75,000

M/c. with 15 HP Motor, Gear Box & Starter.

5.

Testing Equipments

1,00,000
Total

40,00,000
2

MANAFACTURING PROCESS
The present project envisages production of PVC Self-adhesive Electric Insulation
Tapes from PVC film rolls procured from market. The manufacturing process essentially
consists of the following major operations.
1. Manufacture of the adhesive mass.
2. Application of primer and adhesive coating to the PVC film.
3. Drying of the adhesive coating at the required temperature.
4.Cutting the film rolls into tapes of required width.
5. The required length of the finished tapes are wound on cores and suitably
packed for despatch.
Typical compositions of Primer coat and Adhesive coat are as follows :
PRIMER COAT :
Ingredient

Parts by Wt.

PVC Paste

60

Copolymer of Ethyl Acrylate

40

Methyl Methacrylate, and

Methacrylic acid
Titanium Dioxide

20

Dilute Acetic Acid

10

ADHESIVE COAT :
Ingredient

Parts by Wt.

2-Ethyl Hexyl Acrylate

360

Acrylic Acid

Ethyl Acetate

120

Nonyl Phenol Ethelene

25

Ammonium Persulphate

Sodium Metabisulphate

Sodium Acetate

Water

500
3

The films are often coated on the opposite side with a release agent to reduce the
adhesion of the adhesive to the backings of the next layer of tape when finished in roll
form.
RAW MATERIALS
For Sq. metres

660000
Qty-MTs

Rate/MT

Value Rs. Lakhs

PVC film-100

72.00

65000

46.80

Rubber based adhesive

36.00

50000

18.00

0.00

1.65

Core for winding

TOTAL

66.45

Packing materials

660000

0.50

3.30

LOCATION LAND AND BUILDING

Built up area-Sq.ft

2500

Rent p.m.-Rs per .5 per sq.ft

12500

Advance-10 months.Rs

125000

UTILITIES
Three phase-

KW

54.00

Power charges Rs.lakhs p.a

12.31

Water-For process-Litres per day

2000

For human consumption-litres/day

200

MANPOWER
Nos

Monthly wages

Total

Supervisor

6000

6000

Skilled

5000

10000

Unskilled

3000

18000

Accounts Assistant

4000

4000

Sales Executive

5000

5000

Security

2000

4000

sub total

38000

Add benefits

20%

Total per month

7600
45600

TOTAL PER ANNUM-Rs. lakhs

5.47

SCHEDULE OF IMPLEMENTATION
After the financial arrangements are made the project can be implemented in 3 months
times.
COST OF PRODUCTION AND PROFITABILTY
Assumptions
Installed capacity

6,60,000 Sq. Mtrs. of PVC Insulation Tapes per

annum

Capacity utilisation

Year-1 -60%
Year -2 -70%
Year-3 onwards- 80%

Selling price

Rs.19.00 per Sq. metre

Raw materials

As per the details given above

Packing materials

As per details given above

Power

Rs.12.30lakh per annum at 100%

Wages and salaries

Rs. 5.47 lakhs with increase 5% every year.

Repairs and Maintenance

Rs.0.60 lakh per annum

Depreciation

Written down value method -15 % on machinery

Selling general and

Rs.30000 per month

administrative expenses
Interest on Term loan

11% per annum

Interest on working capital

11 % per annum

Income tax

33.66 % on profits
5

MACHINERY SUPPLIERS:
1. M/s.Babubhai Ambalal, Division of Sarabhai Machinery, Shahibag House, Ist Floor
15, Walchand Hirachand Road, Ballard Estate, Mumbai - 400 038.
2. M/s.Goldman Automatics Pvt. Ltd, 75, Village Road, Bhandup, Mumbai - 400 078.
3. M/s.Hero Precision Machines Pvt. Ltd.,136, Arcot Road, Chennai - 600 093.
4. M/s. Micromeritics Engineers Pvt. Ltd., No. 298, K.S. Est Pantheon Road, Egmore
Chennai - 600 008. (Machinery for Rubber Adhesive Mfg.)
5. G.P. Windsor India Ltd, 2 J, Century Plaza, Teynampet, Chennai 600 018.
6. Europack Machines India Pvt Ltd, 52 Bindal Industrial Estate, Sakinaka, Andhari East
Mumbai 500 072.
7. Ambica Engineering & Wire Products, L 45, GIDC Estate, Odher, Ahmedabad382415,
8. Hind Hydraulics & Engineers, Faridabad, Plot No. 13, Sector 74, Faridabad121005.
9. Prasad Groups & Companies, Plot No. 14 16 GIDC Industrial Estate, Phase 1 Valva,
Ahmedabad 382445
10. HMT International Ltd, 52 HMT Bhavan, Bellary Road, Bangalore 560 032.
ADDRESSES OF RAW MATERIALS & OTHER CONSUMABLES SUPPLIERS
PVC FILM :
1. M/s. The Supreme Industries Ltd.,17/18, Shah Industrial Estate, Veera Desai Road
Andheri(West), Mumbai - 400 058.
2. M/s. Caprihans India Ltd., Block - D, Shivsagar Estate, Dr. Annie Besant Road Worli
Mumbai - 400 018.
3. M/s. Sun Poly Industry, 28-D, Kalathiappa Street, Choolai, Chennai - 600 112.
4. M/s. Amisha Vinyls Ltd., Ganesh Industrial Estate, Kachigam, Daman (U.T.).
CHEMICALS SUPPLIERS FOR ADHESIVE MANUFACTURING
1. M/s. R. K. Polymers, 196/5, Govindappa Naicken Street, Chennai - 600 001.
2. M/s. Jayashree Impex, 59-A, `Ragamalika' 1st Avenue, Ashok Nagar, Chennai - 600 083.

FINANCIAL ASPECTS
1. COST OF PROJECT
[Rs.lakhs]
Land & Building (Advance)

1.25

Plant & Machinery

40.00

Other Misc. assets

0.50

Pre-Operative expenses

1.50

Margin for WC

1.75
45.00

2. MEANS OF FINANCE
Capital

15.00

Term Loan

30.00
45.00

Term Loan is assumed at 75% of the Machinery value

3. COST OF PRODUCTION & PROFITABILITY STATEMENT

[Rs.lakhs]
Years
Installed Capacity-Sq.metres
Utilisation
Production/Sales-Sq.mts
Selling Price per Sq.mtrRs.
Sales Value (Rs.lakhs)

660000

660000

660000

660000

660000

60%

70%

80%

80%

80%

396000

462000

528000

528000

528000

87.78

100.32

100.32

100.32

19
75.24
7

Raw Materials

39.87

46.52

53.16

53.16

53.16

Packing Materials

1.98

2.31

2.64

2.64

2.64

Power

7.39

8.62

9.85

9.85

9.85

Wages & Salaries

5.47

5.75

6.04

6.34

6.66

Repairs & Maintenance

0.60

0.66

0.73

0.80

0.88

Depreciation

6.00

5.10

4.34

3.68

3.13

61.31

68.96

76.76

76.47

76.32

Selling, Admin, & General exp

3.60

3.78

3.97

4.17

4.38

Interest on Term Loan

3.30

2.89

2.06

1.24

0.41

Interest on Working Capital

0.69

0.69

0.69

0.69

0.69

68.90

76.32

83.48

82.57

81.80

Profit Before Tax

6.34

11.46

16.85

17.75

18.52

Provision for tax

2.13

3.86

5.67

5.97

6.23

Profit After Tax

4.21

7.60

11.18

11.78

12.29

Add: Depreciation

6.00

5.10

4.34

3.68

3.13

10.21

12.70

15.51

15.46

15.42

0.00

7.50

7.50

7.50

7.50

Cost of Production

Total

Cash Accruals
Repayment of Term loan

4. WORKING CAPITAL:
Months

Values

Consumptions

Margin

Bank

Amount

Finance

Raw Materials

0.50

1.66

25%

0.42

1.24

Consumables

2.00

0.33

25%

0.08

0.25

Finished goods

0.50

2.55

25%

0.64

1.91

Debtors

0.50

3.14

10%

0.31

2.83

Expenses

1.00

0.30

100%

0.30

0.00

1.75

6.23

7.98

5. PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax

11.18

Sales

11%

100.3
2

Profit before Interest and Tax

19.60

Total Investment

38%

51.23

Profit after Tax

11.18

Promoters Capital

75%

15.00

6. BREAK EVEN LEVEL

Fixed Cost (FC):
[Rs. lakhs]
Wages & Salaries

6.04

Repairs & Maintenance

0.73

Depreciation

4.34

Admin. & General expenses

3.97

Interest on TL

2.06
17.14

Profit Before Tax (P)

BEL =

FC x

16.85
=

17.14

80

100
FC +P

33.98
40%

100
of installed capacity

100