1.

Introduction:

In the medical industry, thermoformed plastics are used in the manufacturing of diagnostic
systems, accessories, and medical plants. Thermoforming includes a manufacturing process of
converting a two-dimensional thermo polymer into a three-dimensional shape. In the
pharmaceutical industry, thermoformed plastics are used for products such as prefilled syringes,
injection trays, pharmaceutical bottles, and medicine electronics as well as for capsules and
tablets packing such as blister packaging.

The food industry is a major application segment for thermoformed plastics, which is expected to
positively impact the global thermoformed plastic market. Thermoformed plastics are preferred
over wood or glass for food packaging as these plastics are lightweight, flexible, bacteria-
resistant, and odor-free and displays high moisture barrier. The different industries using
thermoformed cups and trays in Food packaging, Catering, Restaurants, FMCG’s and retail
outlets.
The global thermoformed plastics market size was estimated at USD 12.3 billion in 2019 and is
expected to register a CAGR of 4.9% from 2020 to 2027. The increasing demand for
thermoformed plastics from the healthcare and pharmaceutical packaging sectors is projected to
be a key factor driving the market growth.
The thermoforming process involves fabrication of plastic sheets, after which they are heated so
as to convert them into a flexible form which can be molded into the desired shape which varies
based on the end-use application. Thermoformed plastics are increasingly used as a metal
replacement using the heavy gauge process, making them suitable for applications such as
transportation, industrial equipment, aerospace, kiosks, and medical devices.
This report aims at understanding the thermoforming industry and analyses the business
requirements to set up a thermoforming manufacturing unit in Navi Mumbai.

2. Market Overview

A. Pharmaceutical Packaging

The India pharmaceutical packaging market is expected to grow at a CAGR of 5% over the
forecast period 2020 to 2025. The growing population, rising health awareness, increasing life
expectancy can be attributed to the growth of the pharmaceuticals packaging industry. Moreover,
growing awareness of environmental issues due to traditional packaging material and the
adoption of new regulatory standards for packaging recycling is also driving the pharmaceutical
packaging industry in India.

According to the WHO report, over 20% of the country’s population suffers from at least one of
the non-communicable diseases or chronic diseases, such as cancer, heart ailments, respiratory
diseases, and diabetes, that are estimated to cost India USD 6.2 trillion during the period 2012-
2030. Moreover, it reflected that India lost USD 237 billion from 2005 to 2015 due to diabetes,
heart disease, and stroke. To prevent economic burden in the coming years, most of the
pharmaceutical companies are researching and developing a novel vaccine that would drive the
growth of the pharmaceutical packaging market in India.

B. Food Industry Packaging

Due to attractive look, low weight, ease of transportation and low permeability, thermoformed
disposable cups and trays are finding tremendous market in packaging of food products,
particularly Ice creams which is as high as 30%. The demand for thermoformed disposables is
growing for drinking water, Tea, Coffee, soft drinks and packing dairy products.

The global consumption of single-use disposable food and drink containers such as lunch boxes,
cups and bowls is estimated at 438 billion units per year. Out of which the consumption of
thermoformed disposable cups is 21% of the total disposable items.

3. Pharmaceutical Industry Trends

India is the third-largest pharmaceuticals in terms of volume and thirteenth most significant in
terms of value as it has a large raw material base and availability of a skilled workforce.
According to the India Brand Equity Foundation, India's pharmaceutical export stood at USD
19.13 billion in 2018-2019, reached USD 13.69 billion in 2019-2020 (till January 2020) and
grew by 30% to reach USD 20 billion by the first quarter of 2021.

The country has one of the lowest manufacturing costs in the world, more economical than that
of the USA and almost half of Europe, it is the largest supplier of generic medicines in the world
(20% to 22%of global export volume). It has fueled the research and development of efficient
packing solutions for the pharmaceutical sector that substantially prevents contamination,
provides drug safety, and convenience of delivery and handling.

4. Company Introduction

Schopfer Group is working into the field of infrastructure, construction, distribution of various
footwear brands and manufacturing of numerous plastic based PVC products. We are working
with different Partnership Firms, LLP’s and Pvt. Ltd. Companies located in Mumbai, Navi
Mumbai, Thane and Pune city. We are currently carrying out the manufacturing business in three
different companies namely RIGHT DYES, RIGHT PACKAGING AND GLOBAL
PACKAGING with a total experience more than a year. We come with a team of around 10
professionals specialized in Development and Manufacturing of Thermoformed and Vacuum
Formed Packaging Trays. We offer our customers Thermoform Trays, Vacuum Formed Trays,
Food Packaging, Seedling Trays, Pharmaceutical Packaging and Blister, Frozen Food Packaging.

Our mission is to offer aseptic packaging solutions for the pharmaceutical industry

Our vision is based on four fundamental values, each one closely connected to the other in
order to guarantee harmonious interaction, resulting in a leadership position that is rooted
in excellence
  Trust
 Accountability
 Ethics
 Deliver Timely Results

4.1 Our Team

Mr. Mansoor Khan and Mr. Mayur Shinde are associated with this business as
Directors/Partners.

Mr. Mansoor Khan is a BFM (Financial Market) graduate, He has also completed Level 1 in
Chartered Financial Analyst (CFA) examination. Mansoor has a professional work experience in
Financial Markets for more than 7years. As a First Generation Entrepreneur he is having good
experience in Banking, Finance management, Procurement & Marketing.

Mr. Mayur Shinde is a Civil Engineer, graduated from Pune University. After graduation he has
done his Post Graduate Programme of Management of Family Owned Construction Business
(PGP MFOCB) from a well-known Institute NICMAR (Pune). Mayur has also completed
Master’s of Science in Supply Chain and Project Management from Sydney Business School
(University of Wollongong, Australia)

4. Raw Material

The major raw materials used for thermoforming are high impact polystyrene ABS, PVC,
Polypropylene, HDPE, Polycarbonate etc. The choice of each material depends upon the end-use
requirements and cost. The most common materials used for disposable wares are high impact
polystyrene (Considered), PVC and Polypropylene

Polyvinyl chloride and PVDC (polyvinylidene chloride) are mostly used in pharmaceuticals as
primary packaging materials that protect the pharmaceutical products against oxygen and odor,
moisture, water vapor transmission, contamination, and bacteria. It makes both PVC and PVDC
the material of choice for blister packaging. PVC is the third most widely produced synthetic
plastic polymer used across the globe as it has excellent organoleptic properties, which means it
does not affect the taste of the packaged food or medicine. PVC mono films protect against
contamination by helping to prevent the spread of germs during manufacture, distribution, and
display and are sunlight and UV rays resistant.

4. Manufacturing Process

Thermoforming is a manufacturing process for thermoplastic sheet or film. The sheet or film is
heated between infrared, natural gas and other heaters to its forming temperature. Then it is
stretched over or into a temperature-controlled, single-surface mold. Cast or machined aluminum
is the most common mold material, although epoxy, wood and structural foam tooling are
sometime used for low volume production. The sheet is held against the mold surface unit until
cooled. The formed part is then trimmed from the sheet. The trimmed material is usually
reground, mixed with virgin plastic, and reprocessed into usable sheet.

Thermoformed disposables are generally used for Tea, Water and Packing of Beverages etc.
These Thermoform shapes are created from a process where a sheet of plastic is heated and
vacuumed on top of a model or die. The die can be made up from variety of materials.

Thermoforming is one of many manufacturing process that converts plastic resin into usable
everyday product. It is considered to be one of the most cost-effective processes in plastic
manufacturing because of the low moulding costs and fast moulding cycles. Speed and cost
efficiency are the highlighted qualities that thermoforming offers which lead the way for the
process becoming so important in industry today.

5. Technology

The technology/Machinery required for manufacturing of the thermoform disposables are 2 Nos.
of Automatic vacuum forming machine with control panel, 2 Nos. of Roller cutting machine, 4
Nos. of Aluminum mould with cutting mold, a sheet plant two layer, compressor, Grinder and a
Cooling tower

6. Competition Analysis

The India pharmaceutical packaging market is fragmented and is dominated by a few major
players like West Pharmaceutical Packaging India Pvt. Ltd., Huhtamaki PPL Ltd, SGD Pharma
India Ltd, Amcor Flexibles India Pvt Ltd, and Uflex Limited. These major players, with a
prominent share in the market, are focusing on expanding their customer base across foreign
countries. These companies are leveraging strategic collaborative initiatives to increase their
market share and increase their profitability. However, with technological advancements and
product innovations, mid-size to smaller companies are increasing their market presence by
securing new contracts and by tapping new markets. In January 2020 - Huhtamaki PPL Ltd had
completed the acquisition of Mohan Mutha Polytech Private limited’s flexible packaging
business. The acquisition would allow Huhtamaki to speed up its growth in India by improving
its capacity to serve customers in South India.
7. SWOT Analysis

STRENGTH WEAKNESS

1. Availability of skilled and 1. High working capital requirement

experienced labour 2. Customer Credit cycle
2. Efficient machinery 3. Delivery lead time
3. Recycling of waste material 4. Dependency on transportation
4. Voluminous production possible

OPPORTUNITIES THREATS

1. Forward and backward integrated 1. Existing and emerging competition

supply chain businesses 2. Fluctuating raw material costs and
2. Vendor agreements with availability
Pharmaceutical companies like 3. Hazard to ecosystem
CIPLA and Sun Pharma
3. Export market
4. FMCG packaging
5. Corrugated boxes manufacturing

8. Marketing Channels

Direct marketing- The Directors of Schopfer Packaging Solutions LLP come from a strong direct
marketing background. The company can take advantage of these skills to penetrate the market
with fast, direct marketing channels. Direct marketing efforts could result in higher number of
repeated orders. Also, focus on customer service, market capturing and retention will be done by
Online Search Engine Optimization (SEO), Bulk SMS, Telephone and Email Marketing.
Following is a list of targeted domestic companies for this financial year

• Sanofi India
• Mapra Labs
• Zen Pharma
• Shree Anandlife Science Limited
• Neon Labs Limited
• Kilitch Drugs
• Tablets India Limited
• Theropathic Pharma
• Russan Pharma
• Agio Pharma
• Wallace Pharma Limited
• Bharat Serums
• Systochem Limited
 • Sanjivani Paranteral Limited
• Fredun Group

9. Raw material requirements

Polypropylene sheets and Poly Vinyl Chloride sheets are manufactured and provided by many
suppliers in Mumbai, Gujarat, Diu and Daman. We have identified Mahalakhsmi Plastics and SA
plastics (both based in Mumbai) as our key suppliers due to their material availability,
competitive rates and less lead time.

8. Man-Power and Labour requirements-

No Particulars No of Labours Salary (Per Month- INR)

1. Production Engineer 1 17,500
2. Manager 1 17,500
3. Accountant 1 30,000
5. Skilled and Unskilled Labour 8 96,000
6. Watchman 1 12,000
7. Total 12 1,73,000

9. Project Implementation Schedule

No. Activity Time Period Status

1. Preparation of Detailed Project Report 1 month Completed
2. Site Selection and Agreement 1 month In process
3. Company Registration 15 days Completed
4. Loan Application (Documentation) 1 month Not started
5. Loan Procedure and Disbursement 2 months Not started
6. Machine Ordering and Manufacturing 45 days Not started
7. Machine Commissioning and Trials 15 days Not started
8. Recruitment of staff and labor 15 days In process

10. Cost of Project

No Particulars Cost (INR- Lakhs)

.
 1. Plant and Machinery 54.00
2. Working Capital Margin 150.00
3. Own Contribution 16.00
4. Total Investment 220.00

11. Working Capital requirements

No Particulars Year 1 Year 2 Year 3 Year 4 Year 5

.
1. Current Assests 208.15 225.30 259.46 300.92 348.01
2. Current Liabilities 131.62 143.66 158.71 171.32 181.58
3. Net Working Capital 76.53 81.65 100.75 129.60 166.43

12. List of Machinery

A single set of machine is considered for calculation

No Machine Cost
.
1. Automatic Thermoforming Machine 11.56
2. Semi-Automatic Thermoforming Machine 10.50
3. Air Compressor 2.00
4. Cooling/Chiller Machine 2.95
5. Total 27.00

13. Profitability Calculations

No Particulars Year 1 Year 2 Year 3 Year 4 Year 5

A. Sales Proceeds 596.16 720.03 870.69 1008.87 1112.99
B. Cost of Production
1. Raw Materials 432.00 523.30 632.26 733.19 809.45
2. Total Direct Expenses 45.89 49.60 54.54 62.16 66.08
3. Administration and 94.37 106.83 121.51 134.17 143.04
 Selling Expenses
4. Total Cost of Sales 458.41 569.02 682.08 791.05 812.36
5. PBIT 43.38 44.18 67.10 83.66 97.59
6. Finance Cost 22.10 22.63 20.52 18.14 15.46
7. PAT (Profit After Tax) 14.64 14.82 32.04 45.08 56.50

The assumptions for the above calculations are as follows-

The installed capacity for two forming machines is at 4,80,000 kgs per annum. The capacity
utilization is taken at 60% in the first year and sales of 2,88,000 kgs of finished products. The
raw material price as per market situation is considered at Rs 150/kg and the sale rate is Rs 240
per kg. Interest rate on long term loan of 100 lakhs is taken at 12% and 100 lakh cash credit is
also 12%

Here’s a list of successfully completed orders from the past

15. Ratio Analysis

No Ratio Year 1 Year 2 Year 3 Year 4 Year 5

1. Debt Service 0.48 0.59 1.20 2.42 9.04
Coverage
2. Debt Equity 2.94 1.62 0.72 0.28 0.06
3. Quick Ratio 1.43 1.40 1.45 1.56 1.71
4. ROI 5.77 5.61 10.96 13.70 15.19

16. Completed Order Summary

No. Company Name Product Name Order Date Order Dispatch

Quantity Date
1. Shree Anand Lifescience 5 ML Vial 15/02/2021 2,10,000 23/02/21
Limited 2 ML Amp
2. Systochem Limited 5 ML Vial 22/04/2021 1,00,000 27/04/21
2 ML Amp
3. Systochem Limited 10x10x5 ML 05/05/2021 1,50,000 14/05/21
4. Systochem Limited 5 ML Vial 05/05/2021 1,00,000 18/05/21
2 ML Amp
5. Sanjivani Parental 10x3 ML 3x2 21/05/2021 1,07,000 24/05/21
ML PVC

@schöpferpackaging
16. Statutory/Government Requirements

There is no specific statutory requirement for plastic processing industry, however MSME &
GST registration, IEC Code for Export of end products and local authority clearance may be
required for Shops and Establishment, for Fire and Safety requirement and registration for ESI,
PF and Labour laws may be required if applicable. Entrepreneur may contact State Pollution
Control Board where ever it is applicable.

17. Backward and Forward Integration

Backward linkages can be established by putting up the facilities to produce PP sheets. This can
be done once the production is stabilized and market is fully developed to utilize production
capacity. Similarly forward linkages to diversify in to other thermoform products such as
packaging items for industrial parts, electronic products and household items like tray and
containers.