§1What this business is

LDPE granules are melted in two extruders and pushed through a T-die into two sheets; one sheet is vacuum-formed into bubbles on a cooling roller and the other is pressed on to seal them. The film is cooled, trimmed and wound. It cushions crockery, electronics, machine parts, antiques and pharmaceutical bottles, and is lighter and cheaper than thermocol.

Capacity: 1,440 MT a year (1,04,35,200 sq m) in a single shift for 300 days; report plans 60% in year 1 to 80% in year 3.

§2Is it right for you?

Who it is for

An established plastics or packaging business with bank credit lines and buyers lined up.

Who it is not for

A first-time founder looking for a small PMEGP project.

Advantages

  • Every e-commerce, electronics and crockery shipment needs cushioning
  • Lighter and cheaper than thermocol, says the report
  • Continuous process with a small crew
  • Printable, heat-sealable product can be converted into bubble bags

Drawbacks

  • ₹66 lakh project — above the PMEGP project-cost limit for manufacturing (₹50 lakh)
  • Huge working capital for LDPE granules
  • Margins depend on polymer prices
  • Heavy power load — 373 KW

Skills you need

  • Extrusion line operation
  • Polymer buying
  • Packaging sales to industry and e-commerce
  • Working capital management

Why difficulty 4/5: Large capital, very large working capital and polymer price risk.

§3Market

Who buys

  • Electronics and appliance makers
  • Crockery and glassware sellers
  • Pharmaceutical packers
  • E-commerce and courier packers

How it sells

  • Packaging-material dealers
  • Direct supply to manufacturers

Good to know

  • The report quotes the Indian packaging industry at ₹11,500 crore, growing 18% a year (no date given).
  • Bubble film is also used abroad as a swimming-pool cover, says the report.

§4Raw material & machinery

ItemQtyCost
Polycell bubble-sheet making machine (100 mm and 75 mm extruders, 2-layer T-die, silicone cooling rollers, winder)1₹50.00 lakh

From: PMEGP sample project report — Air Bubble Packaging Sheet (prepared by Udyami/Samadhan)

  • LDPE granules1,515.6 MT a year at ₹87 per kg (report figures)
  • Waterabout 15,000 kilolitres for the process

From: PMEGP sample project report — Air Bubble Packaging Sheet (prepared by Udyami/Samadhan)

§5Licences & registration

  1. Udyam
  2. GST
  3. Pollution Control Board NOC (report says no harmful effluent, but NOC is needed)
  4. Factory licence
  5. Plastic Waste Management Rules registration as a producer/brand owner where it applies
  6. Fire NOC

We can do this registration for you

§6Schemes & subsidies

Listed as a PMEGP sample, but ₹66.06 L is above PMEGP's ₹50 L manufacturing limit; a smaller line would be needed for PMEGP. CGTMSE and Stand-Up India (SC/ST or women founders) can fit the larger project.

§7Money

How the investment is worked out: Polycell bubble-sheet machine ₹50.00 L + furniture ₹2.50 L + contingencies ₹8.00 L + margin for working capital ₹5.56 L = ₹66.06 L. Land and building leased or owned (not in cost). Finance: own ₹26.68 L, term loan ₹39.38 L. The report separately works out a 3-month working capital need of ₹357.07 L (₹267.81 L after margin), which is not in the ₹66.06 L total.

Working capital: Very large: the report puts 3 months' working capital at ₹357.07 L because LDPE granules alone cost ₹1,318.57 L a year at full capacity.

Year not printed on the report — check current machinery prices. The report's own figures do not tie up (selling price ₹17 per sq m in assumptions, ₹15 in the table; working capital far above the amount in the project cost).

How to prepare a loan file

§8Export potential

Export council / board: PLEXCONCIL

  • The report prints no HS code; confirm the ITC(HS) line with DGFT before exporting.

§9Risks — where people fail

  • LDPE price swings
  • Working capital shortage
  • Power cost and outages
  • Rules on single-use plastics and EPR

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working air bubble packaging sheet unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Air Bubble Packaging Sheet?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Air Bubble Packaging Sheet (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.