Film production business plan
Investments: from 5.5 million rubles
Payback: from 3.5 years
Shrink wrap is used for packaging food and various items. The simplicity of production technology and cost effectiveness allow this type of activity to turn into a successful business even for beginners.
Shrink film, or as it is also called stretch film, has a wide range of applications. It serves as a packaging for goods in supermarkets, catering establishments, pharmacies, hardware stores.
The film is also used in everyday life. Therefore, if in your city the production of shrink film is not established or does not work at full capacity, you can successfully occupy this niche. In addition, this activity has no seasonality.
What is required for implementation?
First, you need to get acquainted with the essence of the technological process of film production. It is made very simply: liquid raw materials are placed in an extruder, processed, then stretched on a special machine, cut to the required dimensions, and the joints are soldered. There are many different types of product depending on the number of layers: from 1 to 15. Three-layer films are often used.
For the production of stretch film, you need a minimum of raw materials:
- polyvinyl chloride (PVC);
- liquid glue.
The basis of production lies in equipment that is not cheap. In order to produce PVC films in large volumes, you will need the following types of equipment:
- extruder for processing raw materials and making films;
- cutting and soldering machine;
- punching press for the production of bags with handles;
- flexographic machine for applying logos or other images on PVC films;
- a device for crushing and granulating waste, from which garbage bags are made.
The idea of creating a company that produces films is questionable, since it is not known whether you can make a profit and not get bogged down in loans. A business plan for the production of a film will help to dispel doubts and clarify the incomprehensible points associated with the organization of production and the operation of the enterprise.
Film business plan warns:
- about financial costs and risks;
- about collisions with competitors.
When contacting investors or credit organizations, a business plan for the production of a film will be a powerful argument for obtaining investment or credit funds.
Solving the above issues makes it easier to start a case. Therefore, you can work calmly for your own pleasure.
Film production business plan with financial calculations
Choose the right kit
A basic business plan is an abbreviated version of a detailed business plan.
Shortened section of investment analysis
There is no analysis of profitability in the context of individual products and profit centers.
Description of the project concept and strategic goals
Investment and loan return plan
Sales plan for 5 years with details for individual products
Plastic wrap is rightfully considered one of the most popular packaging materials. It is used in many industries and the demand never diminishes. That is why the production of such a product is an ideal business that can provide a stable income. However, it has its own characteristics that should be carefully studied before starting your own business.
Any production process needs a room. It is important to ensure a high level of safety and storage conditions for both raw materials and the final product.
The received product must meet the requirements of GOST 10354-82. Otherwise, the buyer has the right to make a claim and demand a refund. The main indicators are the strength and elasticity of the material.
A quality product is durable and can withstand heavy loads. However, polyethylene is not used in heat and cold, as it is susceptible to temperature changes. The material melts with strong heating, losing its strength, and severe frost affects its elasticity - at very low temperatures, polyethylene cracks.
In the production of polyethylene film, the following materials are used as raw materials:
- High pressure polyethylene or LDPE. Dense elastic material. It cannot be used for food packaging.
- Low pressure polyethylene or HDPE. This material is more versatile, but less dense. Applicable in the food industry.
- Polyvinyl chloride or PVC. Used in the manufacture of finishing materials and furniture.
This raw material is a secondary product obtained after primary oil processing. Due to the high production speed, raw materials are purchased in huge quantities, 1 kg of granules costs about 100 rubles.
You can buy ready-made film and use it for making bags and other packaging.
When choosing the type of film to be produced, it is necessary to take into account the demand in the given region. The material is classified by fields of application:
When choosing a type of activity, every novice businessman is looking for a way to get a guaranteed profit with a small investment. Therefore, the manufactured products must be in demand. One of the types of such products are packaging materials: plastic and paper bags. Packaging is an integral part of almost any product. The production of packaging materials generates income regardless of the season.
Where to start production?
The initial stage of organizing any production requires the development of the necessary documentation. You will need to register the type of activity, draw up a package of permits and endorse them in the appropriate authorities. On average, registration costs will be $ 300-400. This process can last from one to two months.
Every three months the company is obliged to provide its products for examination for compliance with their quality to state standards. An expert opinion costs approximately $ 25 to $ 35.
At the initial stage of development of polyethylene production, it is necessary to take care of waste disposal. If there are available funds, you can purchase processing equipment and equip the workshop with it. A cheaper way is to conclude an agreement with organizations involved in the processing of household solid waste.
For the successful implementation of a business project, it is necessary to establish a sales network from the very beginning. As a rule, wholesalers become the main buyers.
The key to high quality polyethylene is quality equipment for film production. These devices are represented by a wide assortment, which together with innovative technologies allows even recycling raw materials and using them as raw materials for the manufacture of plastic packaging.
The production of packaging materials requires the following types of equipment:
- Extruder. It is used for processing special blanks, polyethylene granules-balls and making finished polyethylene films.
- Cutting and soldering machine. It is used to cut the film according to the required dimensions. After that, using the machine, the blanks of the packages are sealed on one side. Using this device, bags without handles or garbage bags are made.
- Punching press. Produces plastic bags with handles. He "cuts" holes, forming them.
- Flexographic machine. It is necessary for the manufacture of plastic bags with a pattern or logo of a certain company. In addition, the bag can be printed with the manufacturer's distinctive brand name, which is an excellent advertisement.
- Devices for crushing and subsequent granulation of waste are recommended, but not mandatory additional equipment. Required to process the generated waste. In the main production in the manufacture of garbage bags and packaging materials not related to the food industry, the use of recyclable materials is allowed.
Equipment for the production of polyethylene film costs from 100 to 180 thousand dollars, depending on the manufacturer and completeness.
Polyethylene manufacturing technology
Polymer granules from the receiving hopper are fed into a special hopper. After that, they fall under the auger and, due to their own friction against the cylinder walls, due to forced rotation, they are heated.
One of the most profitable options for simple production is the manufacture of stretch films: with wholesale sales, the price per kg is 130-150 rubles, profit is 37-57 rubles. per kg, if you produce 10-12 thousand tons, 370-684 thousand rubles per month will be obtained.
How to design your business
The form of registration of entrepreneurship depends on the scale of activity and structure of the enterprise:
It is also necessary to obtain permits issued by such organizations:
- by the environmental service, by the regional or city department of nature management - the price is about 6,000 rubles;
- by fire protection;
- by the sanitary-epidemiological station ;
- utilities and water management;
- local administration.
Approximately $ 400 will be spent on paperwork.
It will be necessary to resolve the issue of waste disposal in advance:
Important! Recyclable materials are not suitable for making thin cling film - they can be used in the middle part of three-layer films, which must be taken into account when deciding whether to self-process.
You can pass product certification when the first batch is released, when samples are received.
An approximate plan of financial costs for opening a stretch film production:
- documentary registration of the enterprise - $ 400;
- premises rental - $ 13 thousand per year;
- equipment - 110 thousand dollars;
- raw materials - 50 thousand dollars;
- salary for employees - for 10 people - 22 thousand dollars per year;
- other expenses - 10 thousand dollars
Total: $ 205,400. The costs are recouped in 1-3 years, depending on the quality of the sales organization and the presence of competitors. The profitability of the enterprise can reach 15%.