Scribd Logo
Upload

Welcome to Scribd!

  • 1K views

    Project Profile-LPG Bottling Plant

    Uploaded by

    SagarTak
    The document provides a project profile for setting up an LPG bottling plant in Kerala, India. It details that the proposed plant would have a capacity of 1200 MT per year and be located on 4 acres of land. The total investment required is approximately Rs. 350 lakhs and the means of finance include Rs. 175 lakhs of equity and Rs. 125 lakhs of secured loans. Financial analysis shows that the project would break even in the 6th year of operation and have an internal rate of return of 11% over 10 years. The plant would employ around 50 staff and bottle LPG for domestic use, addressing the state's demand-supply gap for cooking fuel.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Project Profile-LPG Bottling Plant

    Uploaded by

    SagarTak
    1K views6 pages
    The document provides a project profile for setting up an LPG bottling plant in Kerala, India. It details that the proposed plant would have a capacity of 1200 MT per year and be located on 4 acres of land. The total investment required is approximately Rs. 350 lakhs and the means of finance include Rs. 175 lakhs of equity and Rs. 125 lakhs of secured loans. Financial analysis shows that the project would break even in the 6th year of operation and have an internal rate of return of 11% over 10 years. The plant would employ around 50 staff and bottle LPG for domestic use, addressing the state's demand-supply gap for cooking fuel.

    Original Description:

    TEV

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides a project profile for setting up an LPG bottling plant in Kerala, India. It details that the proposed plant would have a capacity of 1200 MT per year and be located on 4 acres of land. The total investment required is approximately Rs. 350 lakhs and the means of finance include Rs. 175 lakhs of equity and Rs. 125 lakhs of secured loans. Financial analysis shows that the project would break even in the 6th year of operation and have an internal rate of return of 11% over 10 years. The plant would employ around 50 staff and bottle LPG for domestic use, addressing the state's demand-supply gap for cooking fuel.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views6 pages

    Project Profile-LPG Bottling Plant

    Uploaded by

    SagarTak
    The document provides a project profile for setting up an LPG bottling plant in Kerala, India. It details that the proposed plant would have a capacity of 1200 MT per year and be located on 4 acres of land. The total investment required is approximately Rs. 350 lakhs and the means of finance include Rs. 175 lakhs of equity and Rs. 125 lakhs of secured loans. Financial analysis shows that the project would break even in the 6th year of operation and have an internal rate of return of 11% over 10 years. The plant would employ around 50 staff and bottle LPG for domestic use, addressing the state's demand-supply gap for cooking fuel.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6
    At a glance
    Powered by AI
    The key takeaways are that LPG is a clean fuel that is a suitable alternative to traditional fuels for domestic and industrial applications. It also has other applications such as fuel for vehicles and as a chemical feedstock. However, there is still a gap between demand and supply of LPG in India, especially in rural areas.

    The main components of an LPG bottling plant include storage tanks, decanting pumps, compressors, piping, valves, filling equipment, testing equipment, conveyors and safety equipment.

    The different types and sizes of LPG cylinders available are 5kg cylinders for rural areas, 12kg and 14.2kg cylinders for domestic use, and 19kg and 47.5kg cylinders for commercial and industrial use.

    LPG Bottling Plant

    KSIDC

    PROJECT PROFILE
    ON

    LPG BOTTLING PLANT

    Prepared by:

    Kerala State Industrial Development Corporation

    LPG Bottling Plant

    KSIDC

    PROJECT PROFILE FOR LPG BOTTLING PLANT


    INTRODUCTION
    The project profile is on setting up of a Liquefied Petroleum Gas (LPG) Bottling plant
    for domestic use as cooking fuel.
    LPG is a mixture of commercial butane and commercial propane having saturated
    and unsaturated hydrocarbons. LPG is gaseous at normal atmospheric pressure, but may be
    condensed to the liquid state at normal temperature, by the application of moderate
    pressures. Although they are normally used as gases, they are stored and transported as
    liquids under pressure for convenience and ease of handling. Liquid LPG evaporates to
    produce about 250 times volume of gas. Thus, a large quantity of energy can be packed,
    stored, transported and used in small containers.
    Most commonly, LPG cylinders are available in compact 5 kg cylinders for rural, hilly
    and inaccessible areas and 12 kg as well 14.2 kg cylinders for domestic use. For commercial
    and industrial use, 19 kg and 47.5 kgs cylinders are available.
    MARKET
    The Indian LPG scenario presents a gap between demand & supply. The major utility
    of LPG is a cooking fuel. It is approximated that LPG is being used by around 20 % of the
    households in India. In urban areas, LPG is the common fuel, used by around 50 % of the
    households as fuel for cooking. The market penetration of LPG is 45 %. While the urban
    market penetration is 88 %, the rural penetration is only 19.6 %.
    It is estimated that around 204400 MT of LPG is required in the State of Kerala for
    domestic purposes alone. Kerala has around 568000 customers for LPG in the domestic
    category.
    MANUFACTURING PROCESS
    LPG is received in Bullet trucks and transferred to a storage vessel. The LPG stored in
    the vessel is pressurized to about 7 kg/sq.cm. The LPG pressure is boosted to about 12-13
    kg/sq.cm and sent to filling shed through pipe lines using an LPG Pump.
    The cylinders are washed with multiple forced jet of water to remove mud, dirt,
    stains, etc., from the outer surfaces. Subsequently the cylinders coming out of washing unit
    are dried by blowing the air on the sides and top surfaces of the cylinders as they move.
    Measured quantity of LPG is filled into cylinders at the filling shed under pneumatic control.
    The Purging Unit which is on-line equipment creates a vacuum in the first stage and fills
    LPG vapour in the second stage in new / hot repaired empty cylinders. Aluminium seal
    crimping unit/Hot air sealing unit crimps the aluminium cap seal around the cylinder valve

    LPG Bottling Plant

    KSIDC

    as a final operation on the filled LPG cylinder. Auto cap fixer fixes safety caps on to the valve
    of LPG cylinders.
    Filled cylinders are subjected to 100 % weight check, presence and effectiveness of O
    ring inside cylinder valve and checks for leak and bung leak. Tamper proof seals are fixed on
    the valves of sound cylinders. These cylinders are loaded to stake trucks and dispatched to
    various markets. Cylinder movement inside the Plant is achieved using chain conveyors
    driven by electrical motors through worm gear reducers/planetary gear reducers.
    PROJECT PARAMETERS

    Capacity
    The installed capacity of the plant is 1200 MT/Annum. It is assumed that on an
    average 285 cylinders of 14.2 kg are to be produced every day, which translates into 1200
    MT/Annum.

    Land
    It is proposed that the project may be set up in 4 acres of land

    Laocation
    The project is proposed to be located KSIDCs Industrial Growth Centre at Pallippuram,
    Cherthala, Alappuzha District.

    Raw Material & Utilities


    The major raw material for the plant is LPG which will be transported in trucks to the
    plant, maintaining safety standards. The source of LPG will be from manufacturers like IOC,
    HPCL etc.

    Plant & Machinery

    LPG Storage Tank

    Decanting Pumps & Transfer pumps

    LPG Compressor

    Pipes with structural steel support

    Ball Valve

    Decanting House

    Cylinder Valve Testing Unit

    Purging Gun

    Fire fighting system

    Water sprinkler systems

    LPG Bottling Plant

    KSIDC

    Cylinder dip testing machine


    Bottling machine
    Evacuation system
    Hot air crimping unit
    Cold repairing unit with cylinder valve opening
    Cylinder check scale
    Chain conveyor system
    Pressure differential valve
    Pop action relief
    Air regulator cum filter
    Bleeder valve cum filter
    Non return valve
    Strainer

    Manpower
    The unit may require approximately 50 staff inclusive of managerial staff and
    production staff. There may be 3 managerial staff and around 50 production staff

    Cost of the Project


    The total investment required for setting up of an LPG bottling plant is envisaged as
    Rs 350 lakhs. The detailed break up is provided belowItem
    Land
    Building & Civil Works
    Plt & M/c
    Furniture,
    fittings&interior
    Misc.Fixed
    Assets
    including vehicles
    Utilities
    Deposits
    Preliminary&pre-oprative
    exp
    Interest
    during
    Construction
    Contingency
    Margin Money for WC

    Cost
    45
    75
    155
    25
    30
    20

    LPG Bottling Plant

    Others
    TOTAL

    KSIDC

    350

    Means of Finance
    The means of finance for the project is as followsEquity
    Secured Loan
    Unsecured Loan

    Rs 175lakhs
    Rs 125 lakhs
    Rs 50 lakhs

    Sales Turnover
    The optimum capacity utilization is at 85 %. The total income at optimum capacity
    utilization of 85 % is Rs 272,734, 00. The total income is inclusive of Sale of LPG cylinder and
    income from deposits on new connections. It is approximated that per kg of LPG is sold at
    Rs 26.67. Income from every new connection is Rs 70; it is estimated that there will be 1000
    new connections every year.
    FINANCIAL INDICATORS
    Profit After Tax is 737,757,5
    Break Even Point (BEP) is in the 6th year of operation at 85 % capacity utilization.
    Debt Service Coverage Ratio (DSCR) is 3.28
    Debt Equity Ratio (DER) is 1.1
    Internal Rate of Return (IRR) is 11 % taking into account cash flow for 10 years
    CONCLUSION
    LPG addresses aspects like quality, costs, efficiency, environment, heat controllability
    making it a suitable fuel choice for domestic and industrial applications. LPG also finds
    many other applications such as fuel for vehicles , refrigerant, chemical feed stock , in
    running turbines to produce electrical energy and in Centralized heating solutions for
    domestic and industrial applications

    Disclaimer:

    The findings contained in this Project Profile are based on the initial information collated through primary and secondary
    research, which is indicative in nature. Reference herein to any specific commercial product, process, service by trade name,

    LPG Bottling Plant

    KSIDC

    trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring by
    KSIDC or any entities thereof.

    You might also like