PowerPoint presentation on Feasibility study on PVC PIPE Manufacturing Plant.

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3. Name ID Program
Rashed Amin 10305062 BSEEE
K M Shahrear Hyder 11105040 BSEEE
Md. Ashraf Ali 11107065 BSME
Shimul kar 11205096 BSEEE
Miah Mohammad
Mursalin Haque
12105109 BSEEE
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4. ◦ Introduction
◦ Market
◦ Raw material
◦ Process Technology
◦ Utility
◦ Location
◦ Environmental Impact
◦ Investment Cost
◦ Operation cost
◦ Profitability Analysis
◦ Recommendations
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6. • Polyvinyl chloride , more correctly but unusually poly(vinyl chloride),
commonly abbreviated PVC, is the world's third-most widely produced
synthetic plastic polymer, after polyethylene and polypropylene.
• PVC comes in two basic forms: rigid (sometimes abbreviated as
RPVC) and flexible. The rigid form of PVC is used in construction for
pipe and in profile applications such as doors and windows. It is also
used for bottles, other non-food packaging, and cards (such as bank or
membership cards). It can be made softer and more flexible by the
addition of plasticizers, the most widely used being phthalates. In this
form, it is also used in plumbing, electrical cable insulation, imitation
leather, signage, phonograph records, inflatable products, and many
applications where it replaces rubber.
• Pure poly(vinyl chloride) is a white, brittle solid. It is insoluble in
alcohol but slightly soluble in tetrahydrofuran.
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8. PVC was accidentally synthesized in 1872 by German chemist
Eugen Baumann. The polymer appeared as a white solid inside a
flask of vinyl chloride that had been left exposed to sunlight. In
the early 20th century the Russian chemist Ivan Ostromislensky
and Fritz Klatte of the German chemical company Griesheim-
Elektron both attempted to use PVC in commercial products, but
difficulties in processing the rigid, sometimes brittle polymer
thwarted their efforts. Waldo Semon and the B.F. Goodrich
Company developed a method in 1926 to plasticize PVC by
blending it with various additives. The result was a more flexible
and more easily processed material that soon achieved
widespread commercial use.
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9. PVC pipes are used for a variety of purposes e.g. water supply schemes, spray
irrigation, deep tube well schemes and land drainage schemes. PVC slotted and
corrugated pipes are ideal systems for drainages of water from land where water
logging is inevitable. It is widely used by various utility services now-a-days too.
The major consumer of PVC pipes are the Public Health Engineering Department
(PHED) and Irrigation Departments. Besides these two, it is used by the Municipal
Corporations, Tea estates as well as in N.E. Region. The usage of PVC pipes also
depends upon the size of these pipes too. It is manufactured in different sizes
having innumerable usage value.
The World Bank has recently given top priority in rural water supply in developing
and under-developed countries. India has also received large amounts from World
Bank aid for Rural Water Supply Schemes. However, due to the acute shortage of
appliances including pipes this money could not be utilized to a large extent in our
country. Thus PVC/HDPE pipe manufacturing industry has received higher
priority. The requirement of PVC pipes in N.E. Region is around 10,000 MT out of
which the requirement in Assam is more than 50% followed by Tripura and other
five states of N.E. Region. At present there exist around 5 PVC pipes
manufacturing units in the region.
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10. Sl.no. Item Parts by wt.
i) PVC Resin 100
ii) Stabilizer (Non toxic) 5
iii) Primary Plasticizer 1.5
iv) Secondary Plasticizer 5
v) Internal Lubricant 3
vi) External Lubricant 4
vii) Epoxy Plasticizer 1.5
viii) Pigment base 3
ix) Pigment As required
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11. • Extrusion
• Plasticizers
• Stabilizers
• Lubricants
• Fillers
• Sizing
• Traction
• Cutting
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12. The basic material which on Polymerization produces P.V.C. Pipes is Poly vinyl
chloride which in resin form is hard and rigid. The rigidity can be controlled by
controlling the percentage of plasticizer at the time of compounding. Production of
Rigid PVC pipe is based on plasticizing and homogenizing PVC compound and then
passing the compound through an extruder. The hot molten PVC compound is extruded
through a circular slit. Circular slit governs the size of pipe to be extruded. Different
dies are used for manufacturing different size of pipes.
The Pipes thus extruded through the die is then passed through a vacuum sizing tank
wherein the dimensions of the pipe can be accurately set. It also helps in surface finish
of the pipes. Vacuum sizing reduces the percentage of wastage considerably.
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13. As the pipe being extruded is rigid in form they cannot be wound into
coils. So an inline motorized cutting device should be provided for
cutting the pipes into required sizes. For ascertaining the consistency in
product quality the unit should be equipped with process control
laboratory for preliminary testing of raw materials. The unit may also
have arrangement for quality testing of finished products.
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14. • Extrusion:
PVC uncompounded resin, unlike some other
thermoplastics is not suitable for direct processing. To
confer the required processing and end instability, it is
necessary to mix additives to the PVC resin. Following
are some of the additives which are generally used for the
manufacture of rigid PVC pipes.
• Plasticizers:
The common plasticizer in use are DOP, DIOP, DBP,
DOA, DEP, Reoplast, Paraplex etc.
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15. • Stabilizers:
The common stabilizers are lead, barium, cadmium, tib,
stearate etc.
• Lubricants:
Widely used lubricants are Buty-Stearate, Glycerol Moni-
Stearate, Epoxidised Monoester of oleic acid, stearic acid
etc.
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16. • Fillers:
Fillers are also used for producing special quality product (e.g.
calcined clay is used to improve the electrical properties of cable
compounds).
Before the extrusion operation PVC resin is to be compounded with
plasticizers, stabilizers, lubricants and fillers to improve
processibility and improve the endure stability. PVC resin is
compounded with other ingredients in a high speed mixer. The
compound resin is fed to the double screw extruder where the inserts
and die body for the required pipe diameter are fitted. The PVC
compounds are then passed through a heated chamber and they get
melted under the compression of the screw and temperature of the
barrel. The marking on the pipe is done at the time of extrusion.
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17. • Sizing:
• The pipes coming out from the extruder is cooled in the sizing
operation. There are basically two types of sizing used for
manufacturing of pipes. They are (i) Pressure sizing & (ii) Vacuum
sizing.
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• Traction:
• The next operation needed after sizing is traction. The tube traction unit
is required for continuous haulage of the pipes being extruded by the
extruder.
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• Cutting:
• The last operation needed is cutting. There are basically two cutting
techniques for rigid PVC pipes viz. manual and automatic. The pipes
are then tented for ISI marks and are ready for dispatching.
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18.  Electricity
 Gas
 Water
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19. • Dhaka: Ashulia, Narayanganj, Munshigonj,
• Chittagong: Bibirhat, Boalkhali,
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20.  Toxic level
 Pollution level
 Impact on Local community
 Impact on environmental resources
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21.  Polyvinyl Chloride, more commonly known as PVC or just vinyl, has been
in widespread usage since the early-mid 20th century.
 PVC is strong, resistant to oil and chemicals, sunlight, weathering and
flame resistant. It’s everywhere around us. PVC is an incredibly versatile
material use in bottles, packaging, toys, construction materials, bedding,
clothing, piping, wire coatings, imitation leather, furnishings and more.
 PVC ranks the third in both global plastic output and consumption. Over
33 million tons of PVC is being produced each year and that figure is
increasing annually. Around 57% of PVC’s mass is chlorine, so it requires
less petroleum than many other polymers.
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22.  Demand is the quantity of a good or service
that consumers and businesses are willing
and able to buy at a given price in a given
time period. Market demand is the sum of the
individual demand for a product from buyers
in the market. The total market demand of
PVC pipes in Bangladesh is approximately
2200 Core Tk.
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23.  River
 Rail
 Road
 Sea Port
 Air Transport
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24.  B/C Ratio
 IRR( Internal Rate of Return)
 Break-even analysis
 Cash flow
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25. Fixed capital :
Land and building:
Land : Purchase fr om IDCO 2 acres Tk. 6,00,000/-
Work shop shed : 10,000 sq.ft.X 3 nos. @ 300/sq.ft. Tk.90,00,000/-
Office Building : 1000 sq.ft. @ 400/sq.ft. Tk. 4,00,000/-
Store cum godown 20,000 sq.ft. @ 300/sq.ft. Tk.60,00,000/-
Watchman shed , Parking stand,
Boundary etc. LS Tk. 5,00,000/-
Bore well LS Tk. 1,00,000/-
Tk.1,66,00,000/-
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26. Land : 6,000 sq.ft.
Building : 1,800 sq.ft.
Power : 25 KW
Water : 1,500 Ltr. Per day.
Manpower : 10 Nos. (Administrative (3), Factory Staff (7),
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27. Land : 6,000 sq.ft.
Building : 1,800 sq.ft.
Power : 25 KW
Water : 1,500 Ltr. Per day.
Manpower: 10 Nos. (Administrative (3), Factory Staff (7),
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28. The production basis for a typical tiny unit would be as
under:
Working hours/day : 8 (1 shift)
Working days in a year : 300
Annual Production capacity : 150 MT
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29. • The total capital requirement including fixed capital
and working capital is estimated at Tk 45.00 lakhs as
follows. Of this, the project cost comprising fixed
capital and margin money on working capital is Tk
39.00 lakhs.
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30.  Fixed Capital estimated at Tk 45.00 lakhs
 Working Capital Tk 39.00 lakhs
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31. (Tk in lakhs)
1. Raw materials 55.00
2. Utilities 1.00
3. Wages & Salaries 6.00
4. Overheads 1.50
5. Selling expenses @ 1% on annual sales 1.10
6. Interest on term loan (14%) 3.55
7 Interest on Bank Finance for working capital (13%) 0.80
8 Depreciation @10% 3.00
Total 71.95
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32. Items Production(Met
er)
Unit Sales
Price(Rs per
Meter)
Annual Sales Price (Tk)
PVC pipe
90mm
75,000 75/- 56,25,000
PVC
Pipe110mm
53,571 100/- 53,57,100
Total 109,82.100
Say : Tk 110.00 lakh
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35. 1. Preparation of project profile 1,000
2. Contingency 1,000
3. Sale tax regn. 5,000
4. Telephone 2,000
5. Travelling 10,000
6. Trial run 12,000
7. Misc. exp. 2,000
33,000
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36. Land & Shed : 1,66,00,000
Machinery & equipment 50,80,000
Pre-operative expenditure 33,000
2,17,13,000
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37. • Staff and Labour payment :
S.no. Designation No./salary Total salary
1. Manager 1 @ Tk.10,000 10,000
2. Production chemist cum 1 @ Tk.7,000 7,000
supervisor
3. Clerk cum typist 1 @ Tk.5,000 5,000
4. Accountant 1 @ Tk.4,500 4,500
5. Storekeeper 1 @ Tk.4,000 4,000
6. Skilled workers 4 @ Tk.5,000 20,000
7. Semi skilled workers 4 @ Tk.4,000 16,000
8. Peon cum watchman 2 @ Tk.3,000 6,000
Total 72,500
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38. S.no. Item Qty./rate Amountin
Tk.
1. PVC Resin 58,000 @ Tk.54 31,32,000
2. D.O.P. 2200 @Tk. 60/- 1,32,000
3. Stabilizers 1200 @Tk. 60/- 72,000
4. Lubricants 600 @Tk. 62/- 37,200
5. Colours 200 @ Tk.140/- 28,000
6. Fillers 3800 @ Tk.10/- 38,000
TOTAL : 34,39,200
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39. 1. Postage and stationery 3,000
2. Advertisement and publicity 10,000
3. Traveling 4,000
4. Telephone 700
17,700
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40. Total working capital per month = Tk. 35,77,400/-
Working capital for 3 months= Tk. 1,07,32,200/-
Total Capital investment Tk. 2,17,13,000
Working capital investment Tk. 1,07,32,200
Tk. 3,24,45,200
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41. 1. Working capital for 12 months 4,29,28,800
2. Depreciation on plant and machinery @ 10% 4,83,000
3. Dep. On shed @ 5% 8,00,000
4. Depreciation on office furniture @ 20% 10,000
5. Interest on total invt. @ 12% 38,93,424
4,81,15,224
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42. Rigid PVC pipe produced per month using 80% efficiency
Of machinery 64,000 kg.
Turnover = 768 MT @ 73,000 per MT Rs. 5,60,64,000
PROFIT:
= Rs.5,60,64,000 - 4,81,15,224 = 79,48,776/-
Rate of return = Profit x 100 = 14%
Total invt.
Net profit ratio = Profit x 100 = 24.4%
Turnover
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43. Fixed cost
1.Depreciation on plant and machinery @ 10% 4,83,000
2.Dep. On shed @ 5% 8,00,000
3.Depreciation on office furniture @ 20% 10,000
4.Interest on total invt. @ 12% 38,93,424
5.40% salary 3,48,000
6.40% other exp. 84,960
B.E.P. =
Fixed cost x profit
Fixed cost + profit = 41%
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44. Property Rigid PVC Flexible PVC
Density [g/cm3] 1.3–1.45 1.1–1.35
Thermal conductivity [W/(m·K)] 0.14–0.28 0.14–0.17
Yield strength [psi] 4500–8700 1450–3600
Young's modulus [psi] 490,000
Flexural strength (yield) [psi] 10,500
Compression strength [psi] 9500
Coefficient of thermal expansion (linear) [mm/(mm °C)] 5×10−5
Vicat B [°C] 65–100 Not recommended
Resistivity [Ω m] 1016 1012–1015
Surface resistivity [Ω] 1013–1014 1011–1012
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45.  The heat stability of raw PVC is very poor, so the addition of a
heat stabilizer during the process is necessary in order to
ensure the product's properties. PVC starts to decompose when
the temperature reaches 140 °C (284 °F), with melting
temperature starting around 160 °C (320 °F). The linear
expansion coefficient of rigid PVC is small and has good
flame retardancy, the Limiting oxygen index (LOI) being up to
45 or more. The LOI is the minimum concentration of oxygen,
expressed as a percentage, that will support combustion of a
polymer and noting that air has 20% content of oxygen.
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46. • PVC is a polymer with good insulation properties,
but because of its higher polar nature the electrical
insulating property is inferior to non polar polymers
such as polyethylene and polypropylene.
Since the dielectric constant, dielectric loss tangent
value, and volume resistivity are high, the corona
resistance is not very good, and it is generally suitable
for medium or low voltage and low frequency insulation
materials.
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47.  PVC is chemically resistant to acids, salts, bases, fats,
and alcohols; therefore, it is used in sewerage piping.
It is also resistant to some solvents, mainly uPVC.
Plasticized PVC, also known as PVC-P, is in some
cases less resistant to solvents. For example, PVC is
resistant to fuel and some paint thinner. Some
solvents may only swell it or deform it but not
dissolve it, but some of them, like tetrahydrofuran or
acetone, may damage it.
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• PVC is used extensively in sewage pipe due to its low cost, chemical
resistance and ease of jointing
• PVC's relatively low cost, biological and chemical resistance and
workability have resulted in it being used for a wide variety of applications.
It is used for sewerage pipes and other pipe applications where cost or
vulnerability to corrosion limit the use of metal. With the addition of
impact modifiers and stabilizers, PVC scrap has become a popular material
for window and door which is 50% less than the cost of a wooden window
and door. By adding plasticizers, it can become flexible enough to be used
in cabling applications as a wire insulator. It has been used in many other
applications. In 2013, about 39.3 million tones of PVC were consumed
worldwide. PVC demand is forecast to increase at an average annual rate
of 3.2% until 2021.

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• PVC is commonly used as the insulation on electrical cables; PVC used for
this purpose needs to be plasticized.
• In a fire, PVC-coated wires can form hydrogen chloride fumes; the
chlorine serves to scavenge free radicals and is the source of the material's
fire retardance. While HCl fumes can also pose a health hazard in their
own right, HCl dissolves in moisture and breaks down onto surfaces,
particularly in areas where the air is cool enough to breathe, and is not
available for inhalation.[27] Frequently in applications where smoke is a
major hazard (notably in tunnels and communal areas) PVC-free cable
insulation

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• Processed by thermoplastic methods
• Wide range of flexibility possible with varying levels
of plasticizer
• Plastisol processing possible
• Non-flammable
• Dimensional stability
• Comparatively low cost
• Good resistance to weathering

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• Attacked by several solvent types
• Limited thermal capability
• Thermal decomposition evolves HCI
• Stained by sulphur compounds
• Higher density than other plastics

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• For starters, oil and chlorine aren’t what you’d call “green”
substances in regards to their extraction, refining and by-
products. So much of our modern life is based on oil that if
production were to suddenly increase, it’s not just transport
that would suffer – it would affect every aspect of our lives.
We really need to kick our fossil fuel addiction before we are
forced into withdrawals.
• PVC’s durability is also its downfall environmentally speaking
– it’s not biodegradable or degradable. Items made from PVC
will retain their form for decades and the breakdown that
occurs is just granulation – the pieces simply become smaller.
Animals can ingest these pieces and the plastic can block their
digestive tracts.

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• This is a tough one. Some new materials with most of the
desirable properties of PVC, without the health and
environmental concerns are now being produced. These
degradable plastics are engineered to breakdown under landfill
conditions (darkness, heat and moisture) within a few years
without emitting toxic gases or other pollutants. At this point
in time, these sorts of materials aren’t widely available and are
quite expensive.
• However, the more environmentally friendly materials that
PVC originally replaced are still around. These are economical
and widely available. For a list of PVC alternatives, check out
this article on Greenpeace’s site – PVC Solutions.

56.  By this feasibility study we can understand
that The project is socially economically and
technically viable and can be taken up for
implementation.
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