Detailed Project Report (DPR) on Aluminium Slug

Detailed Project Report (DPR) on Aluminium Slug
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India
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Industry Overview

Aluminium collapsible tubes are widely used as packaging solutions in the cosmetic, healthcare, pharmaceutical, food, and adhesive industries, particularly for low-viscosity products such as lotions, creams, ointments, and adhesives. Their collapsible structure helps prevent the ingress of air and contaminants as contents are dispensed, supporting product shelf life.

Aluminium collapsible tubes are covered under IS: 3107-1979 (First revision), while tubes with other nozzle designs, such as eye ointment tubes, are covered under IS: 7852-1975. The tubes are manufactured from aluminium grade 19500 as specified in IS: 737-1974. Aluminium's collapsibility, moisture permeability characteristics, and workability make it suitable for this application.

The manufacturing process begins with aluminium of 99.70% purity, which is cast, rolled to the required thickness, and blanked into cylindrical slugs. The slugs are heat treated and lubricated before being converted into tube shapes through impact extrusion. Subsequent operations include trimming, thread rolling, annealing, lacquer coating, labeling, and packaging. The report proposes a greenfield aluminium slug production facility with a capacity of 1800 TPA.

Cost Estimation

Particulars Value
Plant Capacity 6 MT/Day
Land & Building (3625 sq.mt.) Rs. 3.32 Cr
Plant & Machinery Rs. 4.91 Cr
Working Capital for 1 Month Rs. 2.28 Cr
Total Capital Investment Rs. 11.07 Cr
Rate of Return 46%
Break Even Point 48%

Content Index

  • INTRODUCTION
  • USES & APPLICATIONS
  • ALUMINIUM SLUGS FOR COLLAPSIBLE TUBES
  • MARKET OVERVIEW
  • THE ALUMINUM SLUGS CAN BE SEGMENTED BY SHAPE, BY APPLICATION, AND BY END USE INDUSTRY.
  • ON THE BASIS OF SHAPE, THE GLOBAL ALUMINUM SLUGS ARE SEGMENTED INTO:
  • ON THE BASIS OF APPLICATION, THE GLOBAL ALUMINUM SLUGS ARE SEGMENTED INTO:
  • ON THE BASIS OF END USE INDUSTRY, THE GLOBAL ALUMINUM SLUGS ARE SEGMENTED INTO:
  • THE GLOBAL ALUMINUM SLUGS CAN BE SEGMENTED ON THE BASIS OF REGION SUCH AS:
  • PRESENT MANUFACTURER
  • PROPERTIES – RAW MATERIAL
  • THE CHEMICAL COMPOSITION OF WROUGHT ALUMINIUM AND ALUMINIUM ALLOY SHEET & STRIP CONFORM TO THE FOLLOWING TABLE:
  • MECHANICAL PROPERTIES
  • THE MECHANICAL PROPERTIES OF SHEET AND STRIP SHALL COMPLY WITH THE REQUIREMENT GIVEN IN TABLE:
  • ALUMINIUM CASTING
  • WROUGHT ALLOYS
  • FORMABILITY
  • RAW MATERIALS SUPPLIER
  • ALUMINIUM INGOT
  • ALUMINIUM SLUGS CHARACTERISTICS
  • THE APPLICATION AREA OF ALUMINUM SLUGS
  • SIZES OF SLUGS
  • SLUGS PACKAGING
  • MANUFACTURING PROCESS
  • CASTING
  • ALUMINIUM FLAT ROLLING
  • SHEARING
  • METAL SHEET PRESS
  • ANNEALING
  • TESTING & QUALITY CONTROL
  • CLEANING & PACKAGING
  • PROCESS FLOW
  • PROCESS STEPS
  • PLANT & MACHINERY (BROADLY)
  • PLANT AND MACHINERY SUPPLIERS/CONTRACTOR
  • FURNACE
  • ROLLING MILL MACHINERY
  • HYDRAULIC PRESS
  • DRILLING MACHINE
  • PLANT AND MACHINERY (GLOBAL)
  • UTILITIES REQUIREMENT (ESTIMATED - MONTH)
  • WASTE MANAGEMENT (ESTIMATED)
  • WATER
  • WASTE
  • PRINCIPLES OF PLANT LAYOUT
  • MAJOR PROVISIONS IN ROAD PLANNING FOR MULTIPURPOSE SERVICE ARE:
  • PLANT LOCATION FACTORS
  • PRIMARY FACTORS
  • RAW-MATERIAL SUPPLY:
  • MARKETS:
  • POWER AND FUEL SUPPLY:
  • WATER SUPPLY:
  • CLIMATE:
  • TRANSPORTATION:
  • WASTE DISPOSAL:
  • LABOR:
  • REGULATORY LAWS:
  • TAXES:
  • SITE CHARACTERISTICS:
  • COMMUNITY FACTORS:
  • FLOOD AND FIRE CONTROL:
  • ANTICIPATED ENVIRONMENTAL IMPACTS
  • CONSTRUCTION PHASE
  • OPERATION PHASE
  • MITIGATION MEASURES (PROPOSED)
  • HEALTH SAFETY & ENVIRONMENT
  • PROPOSED IMPLEMENTATION SCHEDULE
  • PROJECT FINANCIALS
  • BASIS & PRESUMPTIONS (FOR PROFITABILITY WORKINGS)
  • PRELIMINARY PLANT LAYOUT

Appendix

  • APPENDIX – A:
  • 01. PLANT ECONOMICS
  • 02. LAND & BUILDING
  • 03. PLANT AND MACHINERY
  • 04. OTHER FIXED ASSESTS
  • 05. FIXED CAPITAL
  • 06. RAW MATERIAL
  • 07. SALARY AND WAGES
  • 08. UTILITIES AND OVERHEADS
  • 09. TOTAL WORKING CAPITAL
  • 10. TOTAL CAPITAL INVESTMENT
  • 11. COST OF PRODUCTION
  • 12. TURN OVER/ANNUM
  • 13. BREAK EVEN POINT
  • 14. RESOURCES FOR FINANCE
  • 15. INSTALMENT PAYABLE IN 5 YEARS
  • 16. DEPRECIATION CHART FOR 5 YEARS
  • 17. PROFIT ANALYSIS FOR 5 YEARS
  • 18. PROJECTED BALANCE SHEET FOR (5 YEARS)

Frequently Asked Questions

Aluminium slugs are primarily used as starting blanks for manufacturing impact-extruded aluminium containers such as collapsible tubes. In this project, the slugs are intended for collapsible tubes used in cosmetic, healthcare, pharmaceutical, food, and adhesive applications. Their formability allows them to be converted into tubular shapes through impact extrusion. The resulting containers can provide controlled dispensing and collapse as contents are removed, helping limit the entry of air and contaminants.

Aluminium slugs are manufactured through a sequence that includes casting, flat rolling, shearing or blanking, heat treatment, and quality control. Aluminium is first converted into suitable stock and rolled to a predetermined thickness. The material is then cut into cylindrical blanks of the required dimensions. Heat treatment may be applied to achieve the desired metallurgical condition before further processing. In collapsible-tube production, lubricated slugs are subsequently converted into tube shapes through impact extrusion.

Aluminium is suitable for collapsible tubes because it combines formability, light weight, and the ability to be shaped through impact extrusion. The material can be processed into thin-walled containers and subsequently annealed to provide the flexibility required for repeated collapsing. Aluminium tubes are also suitable for packaging a broad range of liquids, semi-liquids, pastes, and formulations. These characteristics make aluminium useful across several industries where controlled dispensing and protection of the packaged product are important.

Impact extrusion is a metal-forming process in which a lubricated aluminium slug is forced into a die so that the material flows around a punch or plunger to create a hollow shape. For collapsible tubes, this process converts a cylindrical slug into a tube body while forming features such as the shoulder and nozzle. The process can operate at high production rates and is well suited to automated mass-production lines. The severe forming forces can also cause work hardening, which is subsequently addressed through annealing when greater tube flexibility is required.

The main stages include slug preparation, lubrication, impact extrusion, trimming, thread rolling, annealing, internal coating or lacquering, labeling, cleaning, and packaging. Depending on the product specification, additional inspection and quality-control operations are performed throughout the process. The report describes an automated production arrangement in which aluminium stock is converted into slugs and then into finished empty containers. Automation can integrate multiple operations into a continuous production line, reducing manual handling between successive manufacturing stages.

An aluminium slug manufacturing plant requires equipment suited to melting or casting, rolling, blanking, forming, heat treatment, inspection, and material handling. The report identifies equipment categories including furnaces, rolling mill machinery, hydraulic presses, and drilling machines. The exact equipment configuration depends on the manufacturing route, product dimensions, required capacity, automation level, and quality specifications. Supporting utilities, waste-management systems, storage, internal transportation, and quality-control facilities are also important considerations when developing the plant layout.

Quality control should verify the aluminium material, dimensions, surface condition, metallurgical condition, and suitability for subsequent forming operations. Slug diameter, thickness, weight, and surface quality are important because variations can affect extrusion performance and the dimensions of the finished tube. Material properties and chemical composition should conform to the applicable specifications identified for the project. Process controls during casting, rolling, shearing, and annealing are also important for maintaining consistent formability and product quality.

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