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Business Ideas for Manufacturing of Adhesive (Fevicol Type). Profit Y-1760 www.entrepreneurindia.co www.niir.org INTRODUCTION Adhesives are a broad term that refers to any substance that can be used to keep, fasten, or bind two or more materials or objects (i.e. substrates) together when placed between their surfaces. The adhesion (i.e., bond strength) created between substrates by the adhesive is largely determined by the adhesive's properties- specifically, its adhesion and cohesion. www.entrepreneurindia.co www.niir.org Due to the fact that these properties are the primary mechanisms underlying adhesives, measuring the failure point of both properties for each adhesive available aids in determining the best adhesive for use in a given application based on the technical requirements and specifications. www.entrepreneurindia.co www.niir.org Adhesives are commonly used in a number of residential, commercial, and industrial applications for permanent, semi- permanent, and temporary attachment purposes. Load carrying ability, chemical composition, reactivity or inertness, and shape are some of the characteristics that can be used to classify and categorise the wide variety of adhesives available. www.entrepreneurindia.co www.niir.org Each of these adhesives has unique properties and benefits, however, as with adhesive and cohesive strengths, the suitability of each property or feature (and the corresponding adhesive) is determined by the application. www.entrepreneurindia.co www.niir.org COMMON TYPES OF ADHESIVES Anaerobic Adhesives: Acrylic-based adhesives that cure in the absence of air are known as anaerobic adhesives. The curing process is accelerated when metal is present. This type of adhesive usually has a low viscosity, comes in liquid and paste forms, and is used to secure, seal, and preserve close-fitting and structural parts. www.entrepreneurindia.co www.niir.org Cyanoacrylates Adhesives: Adhesives that cure in the presence of moisture and ultraviolet (UV) light are known as cyanoacrylate adhesives (e.g., Krazy Glue ®, a brand of Toagosei Co., Ltd). This form of adhesive comes in a range of viscosity levels, from low to high, and can be used on porous and non-porous surfaces. Because of its low shear strength, it is not appropriate for structural applications. www.entrepreneurindia.co www.niir.org Epoxy Adhesives: Epoxies are often found in single-part and multi-part structures. These adhesives have good shear and peel strength (even in extreme temperatures and environments) and can be used to fill gaps and bind dissimilar substrates. www.entrepreneurindia.co www.niir.org Hot Glue: The term "hot glue" refers to a form of hot melt adhesive made from thermoplastic compounds. This adhesive has a high tackiness and can be used on both porous and non-porous substrates. In most cases, hot glue solidifies as it cools, but certain varieties may be cured by moisture or UV light www.entrepreneurindia.co www.niir.org White Glue: White glue (e.g., Elmer's® Glue, a trademark of Elmer's Products, Inc.) is a popular polyvinyl acetate (PVA) glue traditionally used for arts and crafts. This adhesive involves contact and pressure during solidification and is ideal for porous substrates such as fabric, cardboard, paper, and wood. www.entrepreneurindia.co www.niir.org BENEFITS OF ADHESIVES The creation of new products for a wide range of applications adds to the processing technology's challenges. This is especially true when different materials must be joined to form composite components that maintain their individual beneficial properties. This begs the question: which joining technique is capable of joining these various materials while preserving their unique properties? www.entrepreneurindia.co www.niir.org Traditional joining methods have a number of well-known drawbacks. Within the heat- affected environment, thermal techniques such as welding change the material's specific properties. Mechanical techniques such as riv- eting or the use of screws only allow for force transfer at specific points; additionally, www.entrepreneurindia.co www.niir.org drilling holes in the work parts to be joined “damages” and thereby weakens the materials. Bonding technology, on the other hand, is expected to play an increasingly important role in industry and the handicraft sector in the future. www.entrepreneurindia.co www.niir.org This is Due to Four Major Factors: Material: Bonding technology can be used to bind almost any desired combination of materials with each other, resulting in long- lasting bonds, with expert application. www.entrepreneurindia.co www.niir.org Processing: Line of Production The use of bonding technology in manufacturing processes enables the substrates' material properties to be preserved. The bonding process requires relatively little heat input as compared to welding and soldering/brazing. Unlike when rivets or screws are used, there is no harm. www.entrepreneurindia.co www.niir.org Joining: The two aforementioned considerations allow the unique material properties of substrates to be optimally exploited in components during product manufacture. This enables the use of modern building techniques. www.entrepreneurindia.co www.niir.org Design: Panels bonding technology may also be used to incorporate customized additional properties into the part during the actual joining process. Furthermore, the use of bonding technology in industrial production can save time, speed up the manufacturing process, and thus provide real economic benefits. Internal decks can now be bonded into the primary structure in shipbuilding, removing the time- consuming straightening work that would be needed if the inside decks were connected by welding. www.entrepreneurindia.co www.niir.org MARKET OUTLOOK By 2026, the Indian adhesives and sealants market is expected to have grown at an annual rate of 8.07 percent, reaching USD 1,703.68 million (2021-2026). The increasing demand from the packaging industry and the country's rising construction industry are two major factors driving the market studied. On the other hand, the slowing of the automotive industry and the negative effect of COVID-19 are impeding the market's growth. www.entrepreneurindia.co www.niir.org Residential development is being driven by population growth and urbanization in developing countries such as China, India, Indonesia, Vietnam, Brazil, and Mexico. In these countries, there is a growing demand for permanent housing, which is driving demand for adhesives and sealants. Adhesives and sealants are used in a variety of building applications, including carpet, tiling, wallpapers, and exterior insulation systems. Curtain wall panels and insulating glass units are also kept in place with adhesives and sealants. As a result, the construction industry's growing demand for adhesives and sealants is a major market driver. www.entrepreneurindia.co www.niir.org KEY PLAYERS Anabond Ltd. Arofine Polymers Ltd. C I C O Technologies Ltd. Century Plyboards (India) Ltd. D H Resins & Chemicals Pvt. Ltd. D I C India Ltd. Pidilite Industries Ltd. Renuka Adhesives Ltd. Resinova Chemie Ltd. S R Continental Ltd. Uflex Ltd. www.entrepreneurindia.co www.niir.org MACHINERY PHOTOGRAPHS EMULSIFYING TANK-750L SELF PRIMING MAGNETIC PUMP www.entrepreneurindia.co www.niir.org 2 GEAR PUMPS BAG TYPE FILTER www.entrepreneurindia.co www.niir.org REACTOR INVERTER www.entrepreneurindia.co www.niir.org PROJECT AT A GLANCE www.entrepreneurindia.co www.niir.org COST OF PROJECT MEANS OF FINANCE Particulars Existing Proposed Total Particulars Existing Proposed Total Land & Site Development Exp. 0.00 32.00 32.00Capital 0.00 41.36 41.36 Buildings 0.00 40.60 40.60Share Premium 0.00 0.00 0.00 Plant & Machineries 0.00 47.12 47.12Other Type Share Capital 0.00 0.00 0.00 Motor Vehicles 0.00 6.00 6.00Reserves & Surplus 0.00 0.00 0.00 Office Automation Equipments 0.00 18.00 18.00Cash Subsidy 0.00 0.00 0.00 Technical Knowhow Fees & Exp. 0.00 5.00 5.00Internal Cash Accruals 0.00 0.00 0.00 Long/Medium Term Franchise & Other Deposits 0.00 0.00 0.00Borrowings 0.00 124.09 124.09 Preliminary& Pre-operative Exp 0.00 2.00 2.00Debentures / Bonds 0.00 0.00 0.00 Provision for Contingencies 0.00 4.21 4.21Unsecured Loans/Deposits 0.00 0.00 0.00 Margin Money - Working Capital 0.00 10.53 10.53 TOTAL 0.00 165.46 165.46TOTAL 0.00 165.46 165.46 www.entrepreneurindia.co www.niir.org Year Annualised Book Debt Dividend Retained Payout Probable P/E Yield Price/ Value Earnings Market Ratio Book Value Price Per No.of EPS CEPS Per Share Share Per Share Times ` ` ` ` ` % ` % ` % 1-2 5.64 9.29 15.64 24.00 0.00 100.00 5.64 0.00 5.64 1.00 0.00 2-3 8.83 12.02 24.47 18.00 0.00 100.00 8.83 0.00 8.83 1.00 0.00 3-4 11.90 14.69 36.38 12.00 0.00 100.00 11.90 0.00 11.90 1.00 0.00 4-5 14.82 17.25 51.19 6.00 0.00 100.00 14.82 0.00 14.82 1.00 0.00 5-6 17.54 19.67 68.73 0.00 0.00 100.00 17.54 0.00 17.54 1.00 0.00 www.entrepreneurindia.co www.niir.org Year D. S. C. R. Debt / - Equity Total Return Profitability Ratio Assets Current Deposits as- Net on Net Turnover Ratio Debt Equity Worth Worth Ratio Individu Cumulativ Overall GPM PBT PAT Net P/V al e Contrib Ratio ution (Number of times) (Number of times) % % % % % % Initial 3.00 3.00 1-2 1.38 1.38 1.53 1.53 2.11 18.47% 9.38% 6.48% 182.97 50.83% 1.83 0.99 2-3 1.74 1.55 0.74 0.74 1.16 21.07% 13.31% 8.70% 213.47 50.83% 1.96 1.36 3-4 2.15 1.73 2.13 0.33 0.33 0.65 22.79% 16.01% 10.26% 243.96 50.83% 1.96 1.82 4-5 2.61 1.93 0.12 0.12 0.38 23.91% 17.87% 11.35% 274.46 50.83% 1.87 2.34 5-6 3.14 2.13 0.00 0.00 0.21 24.60% 19.11% 12.09% 304.95 50.83% 1.75 4.11 www.entrepreneurindia.co www.niir.org BEP BEP - Maximum Utilisation Year 5 Cash BEP (% of Installed Capacity) 59.50% Total BEP (% of Installed Capacity) 62.40% IRR, PAYBACK and FACR Internal Rate of Return .
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