Plastic is one element that is an integral part of the modern life. From morning to midnight, toothbrush to tools – plastic is everywhere. The sector is never saturated and pose immense opportunity for growth. However, setting up a plastic manufacturing industry requires a lot toil. Here are few tips to follow if you are planning to set up a plastic manufacturing unit.
Plastic is something vehemently used in our regular lives, from toothbrushes to vehicles, from toilets to significant manufacturing plants – it is everywhere. The plastic equipment manufacturing industry is a massive sector in terms of business volume, employment generation, economic contribution and various other aspects. Plastic equipment manufacturing is majorly done by the technology of injection & blow molding processes. Setting up such a plant to manufacture simple or complex plastic products requires a lot of aspects to be attended to. It requires legal registration, machinery procurement, setup and installation, product or services manifesto, raw materials and supply chain formation. Also involved are the aspects of human resources, marketing and branding, business growth strategy, etc.
In India, plastic equipment manufacturing is a fast-growing multi-billion-dollar sector. Currently, the country has around 30,000 plastic processing units, 15 large-scaled polymer manufacturers, 7,000 recycling units and around 1.7 million employees forming up the domestic plastic equipment manufacturing industry. Globally, the plastic market size was valued at $439.28 billion in 2021, while the market is projected to grow from 457.73 billion in 2022 to $643.37 billion by 2029, at a CAGR of 5.0%. This massive growth projection comes despite a 2.5% slump in business volume in 2020 due to the Covid-19 pandemic. This makes the plastic equipment manufacturing industry a perfect business case with tremendous growth potential.
As India aims to become self-reliant in the manufacturing sector under its Atmanirbhar Bharat campaign, plastic industry has a crucial role to play. The domestic plastic sector can become truly massive with the scope to capture. They can not only serve the demand of domestic market but export large volume of products to the overseas markets in different segments. However, that needs well planned strategic moves.
Here is the checklist one should follow when planning to set up a plastic equipment manufacturing business.
- Research well and be knowledgeable
- Choose site location wisely
- Obtain permits & licenses
- Decide on business size
- Machinery procurement
- Raw materials & supply chain
- Product or services manifesto
Research well and be knowledgeable
The plastic equipment manufacturing venture demands a good amount of investment. Investment in the forms of funds, time and knowledge. In order to avoid business blunders, one should do in-depth research before jumping into the venture. Before entering the business, the venture owner should have an in-depth understanding of bank loan availability, demand and supply chain, market functioning, possible chances of losses, opportunities, maintenance and storage, quality control, machinery operations, environmental impact, etc. Equally, in-depth knowledge about government rules and regulations and subsidies is essential. In a nutshell, more knowledge means better decision-making.
- How To Conduct a Market Analysis For Your Business
- What is PEST & PESTLE analysis? Definitions, Examples & Free Templates;
- What is SWOT Analysis & How to Perform It? Advantages & it’s Limitations
Choose site location wisely
Choosing the manufacturing unit site location wisely is equally important as gaining knowledge about the business. A plastic equipment manufacturing plant simply cannot be set up in a whatever location. Plastic is hazardous for the environment, hence the main manufacturing facility should be away from the city or located on the outskirts of the city. Also, the distance between the manufacturing plant and storage warehouse
should be minimum in order to reduce the transportation cost. Transportation is a significant cost center for any business. Distance between suppliers and the plastic equipment production factory, sufficient demand around the factory location, and amenities like water and electricity supply among others at the factory location are equally important factors for a smooth operation.
Obtain permits and license
For setting up a business like a plastic equipment manufacturing factory, obtaining a legal permit is mandatory as it would safeguard the owner from any future legal trouble. The business needs to be registered, and the owner must complete all the vital documentation. These include GST registration, permits, license etc. Visiting the government offices and consulting knowledgeable professionals are recommended steps to get these done.
Decide on business size
Deciding on the business size is essential to set strategy and other goals. Only the owner of the business knows the company’s strategy, financial strength, resources and goals. Working on bigger-than-reality plans eventually increases the risk of failure. Starting the business on a small scale after considering the reality-based possibilities is the best strategy. Later on, the business can be expanded with time.
Machinery procurement
Getting the machinery for the plant is a huge cost center, and it comes at the expense of a large chunk of the total investment for the business. The machinery should be procured keeping a few factors in focus. While purchasing machinery, the owner should keep things like after sales servicing, recurring maintenance costs etc. in mind. Setting up the machines and installing them should also be focal points. While buying the machinery, one should keep a focus on what product he or she wants to manufacture.
Raw materials and supply chain
Raw material procurement and supply chain development is a crucial segment when starting a business in plastic equipment manufacturing. Procuring raw materials quickly, easily and affordably along with ensuring a robust supply chain is one of the prerequisites for a successful business of manufacturing plastic products.
Product or services manifesto
Before setting up a business, a manifestation of products or services offered should be clearly stated, as it would help the potential customers and supply chain partners to know about the business, its service, products and offerings in a much better manner and streamline their purchase process and business alignment.
Also Read:
- How to Find a Manufacturer to Transform Ideas into Products
- How to Turn Ideas into Successful Startup Firms
- The How and Why of Creating New Product Ideas
- Patent: Definition, Economic Benefits, Patent Law & Global Insights
- The Franchise Business Model Explained: To Expand Globally
- Indian plastic manufacturers have a wide-open ground to grow: Here’s how
