26715593 business plan edit

8/8/2019 26715593 Business Plan Edit

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Business Plan

UNIQUE PLASTICSQuality at the BEST

rpimsbhayender, mumb

[year-2010]


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TABLE OF CONTENT

EXECUTIVESUMMARY.4

COMPANYOVERVIEW..5

MISSION..5

MARKET ANDPRODUCT..6

OBJECTIVE..6

KEY TO SUCCESS....6

PRODUCT AND SERVICEDESCRIPTION..7

MARKET COMPARISON.7

POSSIBLE OBSTACLES....7

INDUSTRY AND MARKET PLACE ANALYSIS..9

INDUSTRY ANALYSIS...6

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MARKETPLACE ANALYSIS...6

CUSTOMERANALYSIS.11

COMPETITORANALYSIS12

MARKETING STRATEGY.12

PRODUCT SERVICE STRATEGY....13

PRICING STRATEGY...13

DISTRIBUTIONSTRATEGY13

ADVERTISEMENT AND PROMOTIONSTRATEGY.13

SALESSTRATEGY

13

SALESFORECAST13

DEVELOPMENT.14

DEVELOPMENT STRATEGY.

.14

MANAGEMENT..15

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OPERATIONS...16

SCOPE OFOPERATIONS

...20

SUPPLY CHAIN..21

PROCESS FLOWCHART..22

GANTTCHART

.23

FACILITYLAYOUT..24

FINANCIAL STATEMENT...25

STARTUPEXPENCES25

INCOMESTATEMENT.26

BALANCE SHEET..27

BREAK EVENPOINT.28

APPENDIX.29

Bibliography33

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Executive summary

Plastic is the basic need of our day to day life. During recent years the plasticindustry has grown with a substantial growth rate. This growth is driven by threesectors viz packaging, infrastructure and agriculture. There are the variousverities of plastics out of which PVC (Polyvinyl chloride) and PET (Polyethylene

terephthylene) plastics have their considerable contribution. PET plastics aregenerally used in the manufacturing of beverage bottles for the packaging andPVC plastic is used in the production of household plastic materials. The growingutilization of plastics in industrial and consumer applications and surroundingsolid waste recycling, has led to an increased demand for recycled plastic resinsand products.

We the Unique plastics provide a wide range of plastic solutions for householdand raw material for packaging of various companies. As a part of our ongoingefforts to exploit this opportunity we will recycle the plastics and then produce

kitchen ware items and other related plastic material. We will also sell therecycled plastics to the companies in the plastic business. We will have arecycling plant along with the production unit. The raw material will be procuredfrom the waste collectors. The raw material will be post consumed beveragebottles and other soft plastic materials

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Our main focus is our industrial customer whom we will sell PET bottles andPET flakes. It will contribute more than 60% of our sales. We will also focus onthe household plastic business which is the part of our portfolio. The initial set upcost will be Rs 34, 40,000.

Unique plastics will be a solution proprietorship business run by the promoterAjay Kamble, Deepak Gupta, Prabhakar Gawande and Arvind Yadav who is aMBA graduate with marketing as specialization. Our finance team is ShabanaKhan and Maya Sakhrani with Finance as specialization

Since plastic material does not carry any brand name so it will give us an additionbenefit in long term to establish our brand name. To exploit the market we willuse penetration pricing as our marketing strategy and utilize our stringentdistribution network and strong industrial relationship.

As a future plan in coming years we will increase the variety of plastics like LDPE(Low density polyethylene) and HDPE (High density polyethylene). By doing thiswe will be able to produce plastic carry bags and raw material for production forplastic chairs and tables and other fiber based products.

COMPANY OVERVIEW

Unique Plastics provide a wide range of plastic solutions for households and rawmaterial for packaging to the various companies. Silvassa is the place where thefacility will be established and other operation will commence.

We will collect the plastic garbage like consumer beverage bottles, plastic bagsfrom various garbage stores and then our recycle unit will process it whicheventually be used for the production of finished goods.

The plastic garbage we are getting as raw material has two components one isPVC (Polyvinyl chloride) and other is PET (Polyethylene terephthylene ). Firstlythe whole garbage is melted and then PVC and PET are separated from eachother by froth flotation technique.

We will create a plant (actual facilities to be shared with the recycling unit) tomanufacture extruded plastic flakes (purified plastic). The extruded plastic is thenmolded in the various products.

We will produce two types of replay plastics

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PVC( Polyvinyl chloride) PET( Polyethylene terephthylene )

Mission Statement

Unique Plastics

Strive to provide the excellent plastic solution to the customers atcompetitive prices.

Continually expands our range of products.

Is poised to service both large and small customers.

Markets and Products

The plastic products usually do not carry a brand name so intruding in the

business like plastic will not be too hard with low price strategy. The population ofMumabi and the cities around it like Thane, Pune, Nashik is around 3Cr. and thisarea is basically comprises of low to middle income groUp families so they focuson plastic products rather than fiber since it is a cheaper. Hence it is huge marketto exploit.

From Mumbai city 500 tons of solid waste is produced from that 15tons of plasticbags and around 7 tons of plastic bottles is generated per day. So the sUpply ofraw material will be continuous.

Apart from this we will sell raw material for packaging to the various smallcompanies in this area. Around 30 small and medium scale companies areworking in this region. So a large amount of industrial customer is also available.

There are two folds of products that we are providing one is industrial and otheris household.

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Objectives

Develop a business that survives on its own cash.Create a company which exceeds customer satisfaction level.

Expand the service to Mumbai in first five years and then to whole Up.

Extending the services to electronic component manufacturing companiesfor production of capacitors printed circuit boards etc.

Key to success:

The main keys to the success of the Company are:

Secure SUpply- Contract for sUpply of post-consumer bottles and post-industrial manufacturing waste for PET raw material feed stock.Satisfy our customer so that we can retain themMaintain low overhead and operating costsProvide better prices than all our competitors

Product and services

We will provide a wide range of plastic products for households and raw materialfor packaging.

The recycled plastic is processed to Polyethylene Terephthalate (PET). PET is athermoplastic polymer viscous of polyester family. The biggest property of this

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compound is it transparent. This is the reason why it is used for packaging. Apartfrom this PET have good strength, ductility, stiffness and hardness. After therecycling process completed an extruded plastic is generated. Plastics extrusionis a high volume manufacturing process in which raw plastic material is meltedand formed into a continuous profile.

The products we are producing are

Cleaned and recycled plastic flakes of PET and bottles, recovered frompost-consumer beverage bottles. (this PET will work as raw material forpackaging to various firms, not for the end user)Household finished plastic goods. We are manufacturing plastic tubes ofvarious diameter, plastic kitchen ware. ( for the end user)

PET flake will be sold to thermo formers (those who mold plastic sheets intousable products) primarily to be used to produce high-visibility packaging. Andalso to the beverage companies for packaging.

Recycled plastic is widely used in mainstream construction products such asdamp proof membrane, drainage pipes, ducting and flooring. Bins, street signsand planters are frequently made from plastic. They are cost competitive andresistant to damage. Local authorities and schools are able to demonstraterecycling in action by specifying recycled products

High strength PET is used in the clothing, furnishings, tire cord and technicaltextiles

Apart from PET the household plastic will be directly sold to the end customers.In day to day life plastic items like water bottles, shop case scrubber etc isfrequently used. So there is a big demand of these in local market.

Market comparison

While quality and delivery are important factors to our potential clients, price ismost often the determining factor in a buying decision. Good-quality packaging

products manufactured from recycled (less expensive) resins, as close aspractical to the end customer's operations, will be most competitive and achievea significant market share. These factors have helped to determine the businessparameters of Replay Plastics.

Possible obstacle

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The product is completed and ready for the market launch. The possibleobstacles are

Unavailable or scarce raw material stock for production

Replay is confident that it has secured good availability of low cost post-consumer PET bottles (feed stock) derived from post-consumer beveragebottles. It may be possible that we would not get desired raw material.

Company may not meet environmental standards

This environmentally-favorable venture provides for the development oftechnically feasible and economically viable solutions to PET plasticbeverage bottle recycling, as well as environmentally aware in-house re-use practices which filter and return nearly all of the process water to theproduction lines

Industry and marketplace analysis

Industry analysis

Plastic recycling is an industry in itself in India. According to the Crisil research7360 companies are working in this industry with a turnover of Rs 9200 Crore

provides employment to 3.5 million people. In India per capita plasticconsumption in lowest in the world. The per capita consumption is just one fifth ofworld average which is 5kg. the domestic demand of plastic has grown by 13%and reached to 4.5MMT in year 2009.The GDP has grown during this period at6.3% and plastic industry 1.3 times of GDP. According to the Crisil report thedemand of plastic by 2012 will be around 12MMT. The plastic consumption inIndia is booming. Demand for commodity plastics is growing at the rate of 15%per year. .India holds immense potential for the use of plastic in the infrastructureand agriculture. In case of packaging industry we are using more plastic than thedeveloped countries. The growth is driven in three major sectors infrastructurewhich is 13%% of the total, packaging is 15% of the total and 10% for plasticconsumer durables. It is projected that the plastic waste generation will reach thewill reach the level of 1.6 million tons annually.

India produces 5600 tons of plastic waste per day.

Region wise and polymer wise turnover of recycling industry in Rs.Crore

Region PVC PET

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WestEastNorthSouthTotal

15675338111680

38386158139766

Each region is specialized in one type of plastic viz south: PET; north: PVC;

The current plastic recycling rate is estimated as 60% by Plastic IndiaFoundation. One estimate is that about 20,000 microenterprises are engaged inreprocessing and recovery of plastic waste in addition to 180,000 of varioussorting and washing units, 60% of which are unregistered .Delhi alone hasestimated 53,400 units and Delhi and Bombay together process over 50% ofIndia's waste plastics.

STRUCTURE OF THE PLASTICS INDUSTRYThe following pattern is likely to be general but there will be some variation fromcountry to country.

Raw Material ProducersThese are chemical and petroleum companies who produce "virgin" plastic(sometimes called resin or polymer) in huge quantities. The main influence theyhave on the recycler is to fix prices and availability of virgin materials. Virginmaterial is delivered in powder or pellet form, in plastic or paper sacks of around20 kilos weight, in large cardboard drums that hold many times that quantity oreven by road tanker.

CompoundersThese specialist companies, usually small, stock various polymers and providethe manufacturers of plastic goods with technical advice and the most suitablematerials or mixtures for each individual need. The compounder is often the bestmarket for the recycler because he possesses sUperior technical knowledge andhas a large volume throughput of virgin material, in which small percentages ofreclaim will reduce cost without seriously affecting the quality required by the

molder.

StockistsThese warehouses stock polymers and compounds but neither manufacturethemselves, nor provide a compounding service. They may be agents orsubsidiaries of the producer companies or departments of companies concernedwith the supply of other materials such as chemical, rubber or paper. They may



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be willing to stock reclaim alongside virgin materials, especially if these are inshort supply.

Specialist Manufacturers or MoldersThese buy their raw materials from compounders. If they do their owncompounding, or if the material is used as produced and does not needcompounding, they may buy direct from stockists or producers. They arespecialists in plastics and do not perform other types of manufacturing. They maybe an attractive market to the recycler because they operate at high volume, butrarely have as much flexibility to vary product quality as molders who know,accurately, the final market for the product.

Other ManufacturersMany companies are not plastics specialists but employ molding operations inthe manufacture of some other product. For example shoe and boot makers useplastics extensively and may carry out the various plastics molding operations inthe same production sequence as the work in leather, canvas, rubber etc. Many

manufacturers use plastic packaging machinery at the end of a productionoperation.

FabricatorsThese firms cut and join sheet, rod or extrusion to manufacture a variety ofproducts. They have no opportunity to use reclaim. Machinery and Tool MakersOne other sector of the plastics industry justifies mention although not customersfor reclaim. The makers and sUppliers of plastics manufacturing machinery,tools, moulds and dies are well informed about who does what, who makes what

and who uses what within the local plastics industry. They may advise who islikely to buy material.

Marketplace analysis

Various overseas players wish to explore the Indian market and invest inopportunities thrown open by the country, projected to be world number 3 inplastics consumption by 2010.As shown above the north region of India isspecialized in recycling of PVC. So there is a great scope of PET recycling.Apart from this the other

A huge market with full of opportunity.

Absence of standard product and service

Well connected with other rural areas

Having good transportation facility



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Customer analysis

Since we are new player in the market so we need to make some stringent

strategies to penetrate market and grab customers. The customers of the plasticindustry are scattered due to lack well known brand names. So our first prioritywill be to accumulate the defused customers.

The direct customers are the customers whom we are selling our productregularly. So for us households whom we are selling plastic goods andcompanies who are getting raw materials for packaging are direct customers(PET bottles). So only in Mumbai around 20,000 families are our directprospective customers and in terms of business to business market around 20small and medium scale companies are our direct customers

Apart from them there are few small companies which are giving compoundingservices. They use to collect various types of plastics flakes along with the virginplastic and suggest customer (companies) in choosing appropriate plastic. AnAsha enterprise is one compounder whom we will sell our plastics.

Competitor analysis

In plastic manufacturing market there is no specific brand name is existing so themarket is flooded by small companies which are in this business. So they are our

biggest direct competitors.

As we are also not alone as a sUpplier of PET to the companies as raw materialsthere are many companies in this region which are sUpplying PET. IndiraPlastics is one of them who is currently selling all types of plastics items. So incase of business to business market they are our direct competitors. Kanpur isplastic recycling city of UP. The direct threat we will also have is with thecompanies operating in Kanpur. But as the distance between Kanpur andMumbai is 600km as well as the road is not in good condition, so it will not affectmuch.

Marketing strategy



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The Company has chosen to focus on the production of plastic packagingmaterials from recycled post-consumer beverage bottles. we have identified asignificant available market in the eastern part of UP. All of our initial marketingstrategy will be to secure contracts in that segment, and after reaching fullplanned capacity, look to grow in concert with that segment and related markets.We see little need at present for further market research and development, and

will focus on continually Updating our production technology in an effort to remainin the forefront of our chosen marketplace.

Product/ service strategy

The packaging companies require high quality and highly transparent PETbottles. The companies which are producing mineral water will reject PET bottleswith even a small impurity/ opaqueness. So we the Unique Plastics provide highend PET flakes for the perfect packaging.

Unique Plastics will apply recycling and extrusion technology managed bydecades of industry specific expertise to create a competitive advantage for itsclients. These processes will produce clean, cost-efficient, recycled raw materialfor manufacturers of thermoform, laminate and other high value-added products,and high strength packaging strapping for shippers of large products and pallets,thereby reducing costs and creating a clear pricing edge among theircompetitors.

Plastic bags and plastic sheets are now in high demand. And this demand isdriven by continuously increasing promotional activities.

Pricing strategy

As plastic products do not carry any brand name so only pricing and distributionstrategies will works to achieve competitive edge. The pricing strategy we willuse is penetration pricing. The price of all household plastic goods we will sell willbe lower than the market price. Also for the PET flakes and bottles the price willbe lower than the competitors. A lower price enables me to get contracts of PETbottles and sheets from various companies.

In case of kitchenware and other household products we will provide combooffers and discounts which a common customer expects.

Distribution strategy

As I described before that firstly we will target Mumbai city and villages close toit. We will have a distribution center in the Mumbai city which continuouslymaintains the sUpply of goods. So the household plastics will be sold throughsmall local grocery shops from which the customers can get them easily. Apart



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from this we will hire street hawkers who will roam around the city and sell thegoods door to door.

PET bottles will be stored in warehouse which is close to the facility itself. Thesales people will directly contact to the companies which require these bottles forpackaging and look for the contracts. In city as stated above that we will have adistribution center, from that center we will distribute to whole sellers.

Advertising & promotion strategy

As I described we are in both B2C and B2B so for this we will use two differentpromotional strategies. For B2C business we will use flyers which will have fulldetail of our product range, price, combo offers and discounts. These flyers willcirculate through the newspapers across whole city. For B2B business we willpromote through online social media and we will also develop our websitethrough which enable us to widely spread our contact among various companies.the site will have full details of product which are available for companies as well

as end user.

Sales strategy

The strategy of sales effort will be to convert potential and first time customersinto long term customers. Our sales strategy is totally based Upon the distributionchannel and the pricing strategies. We will have a distribution centre in the citythat will take care of sales of household and also sUpply products to thewholesalers. We will also give the industrial customers a facility to order theproducts through our website which will help them in reducing the delivery time.

To market the products, the Company will use a number of sales agents/brokers.They have a customer base of their own, having developed successfulrelationships with their client over the years. Their customer base is currentlydemanding product so they can expand Upon their current base. Of course, theywill expand that to new customers when product is available.

If the Company grows faster than its prime customer base, additional capacitymay be developed. We will identify additional prospective customers who can beattracted for our products.

Marketing & sales forecast

The first month prior to the opening will be used to get the new office in order, setUp appointment and begin marketing activities. In the first month we will focus onthe generating public visibility. The sales forecast is based on the assumptionthat we will sell all of the highest volume PET bottles that we can produce.



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This flake will be sold to other manufacturing companies. Recycling industry isgrowing with 15-20% each year. So we can assume that we will grow with atleast 20%. There is a continuing strong demand for flake and extrudedproducts made from recycled PET.

Sales forecast

year 1

Annual

sales

Monthlysales

PET SalesHouseholditems

1620000

135000

94500

40500

2106000

175500

122850

52650

2737800

228150

159705

68445

3559140

296595

207617

88978.5

year 2 year 3 year 4

Development

The development of Unique plastics required to accomplish a series of actionand formalities. Since we are new in the market we kept our production is lowinitially, as demand will increase the production will be enhanced respectively.Now we are recycling and producing only two types of plastics i.e. PVC and PET,as we grow we will produce a wide the range of plastics and its finished product. .The development process involves following steps:

Legal formalitiesOffice/business setUpFuture offerings and expansion plan

Development strategy

In future we are looking for the production of a variety of plastic. These plasticswill be

LDPE ( Low density polyethylene)HDPE ( High density polyethylene)LDPE plastic is used in the production carry bags and other plastic sheets as wellas cling wrap, car covers, squeeze bottles, liners for tanks and ponds, moisturebarriers in construction. And HDPE plastics are used in production of freezerbags, water pipes, wire and cable insulation, extrusion coating.



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Our development strategy will base on timely completion of the establishment ofthe business centre with low execution cost. Our strategy will focus not only thecurrent uninterrupted production of PVC and PET and acquisition of customer asfast as we can, but we will also look for the future expansion plan and executionstrategy.

Our future development strategy will focus on to chart out a careful plan for thefuture expansion and growth of our business. The development strategy willaddress following issue:

How will we expand our services?Which are the new areas we will include to provide our services?What will be the format of the business

Our development strategy will address all those above mentioned point. Aswe will grow and our earning will increase, we will produce more of PVC andPET as well as expand in new area. We have a development strategy toexpand our facility size in order to meet the production size.

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Management

The company will be managed by promoter and six Up porting staff.

Ajay Kamble, Deepak GUpta, Arvind Yadav,Prabhakar Gawande and MayaSakhrani, a MBA graduate with specialization in Marketing and Shabana KhanFinance is the owner and promoter of Unique Plastics. She has intensiveknowledge and vast understanding in financial areas like Risk and Returnmanagement, Investment portfolio and Capital Budgeting, which undoubtedly willbe of intense help in the business. Apart from this Deepak also has a good

knowledge of chemicals and their properties

Marketing skills like convincing power, negotiating ability, creating promotionalstrategies and sales skills will all be extremely helpful in taking the business along way and will prove intensely valuable to take Unique Plastics to flaringheights.

Thus with such potential skills, and other qualities like efficient interpersonalskills, leadership skills and decision making quality, aptly makes him the bestpromoter and eligible founder and owner of Unique Plastics

Along with promoter five more employees will work for the accomplishment ofcompanies objective. One sUpervisor will work on the facility along with twosUpporting staff. SUpervisor who will work Upon the facility does not need to bea chemical engineer a simple technician has experience on working Upon thefacility can be able to do this.

Job description

ProcessSorting

Belt ConveyerPET SeparatorPackaging

No of employees 2

114

Proficiencyunskilled

semiskilledsemiskilledunskilled



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Operations

The operations is defined as the process used to deliver your products and

service to the customer market place and also include manufacturingtransportation logistics travel and after sales services.

The facility is located at outside the city. Facility is divided in two parts

Recycling and Production unit WarehouseThe facility is located in an area of 3000 sqft..Apart from these two units therewill be an office which will look for the perpetual sUpply of required raw materialand also take care about the outbound logistics. The production capacity is

80kg/hr.

The operations will be based Upon JIT i.e. just in time. We will have contractedwith the sUppliers who can sUpply the raw material as quickly as we want. Theraw material contains post consumer beverage bottles and other plasticmaterials. The bottles and other plastic material that can be recycled have aspecific sign from which it can be identified that it can be recycled or not.

The plastic is then transferred to respective unit to be recycled because PET andPVC cannot be recycled simultaneously due to their different properties. Therewill be two units running parallel to each other. On unit will recycle and produce

PVC plastic and other will perform the same for the PET plastic.

The recycled PVC is then moved for the plastic injection molding unit in thevarious shapes. Since there are a variety of product is being produced so thepreference will be given to that product whose demand is high. All the productswill not be produced each and every day. There will be different products whichwill be produced on different day according to the demand in market.

After the recycling process is completed one part of PET flake is moved to thewarehouse according to the demand of raw material which different companiesneed and other part will move for the molding in bottles.

The recycled PET flake is then heated and made the viscous solution of it. ThePET resin is then feeded to the molder and molder will give it various shapebottles. And then it left for drying. Those products which further need forprocessing like buckets, the handle will be inserted after the bucket is dried.



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Stages of Recycling and Production

The process of recycling of waste plastics into products of varying usefulnessinvolves the following essential steps:

Sizing / ChippingCleaningSegregation.Agglomerating / ColouringExtrusion / PalletisationFabrication into end Product.

Chipping:

The plastics waste is then required to be properly sized so that those may befed into the extruders for processing and palletizing. The sizing operationdepends on the type and shape of the waste plastics.

During this process, attention is required to separate any powdery materialfrom the sized / chipped plastics.

Segregation:

Certain polymeric materials are compatible with each other at all proportions.For example LDPE and HDPE are generally compatible to each other at allproportions.

The advanced technology of separating / segregating different types of wasteplastics involves Floatation Process. In this process the property of thevarying densities of different plastics is made use of for segregating differenttypes of plastics.

However in the Indian Context, this separation or segregation process, inmany cases, are done by manual process utilizing the availability of cheap

and expert labor force. In case the waste is contaminated with embeddedmetals, proper method of separating the metals / other contaminants isrequired.



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Cleaning:

The scale of cleaning depends on the type of waste. Whenever a cleaningoperation is involved, it is to be ensured that the water or any other cleaningmaterial used, should be discharged after ascertaining that the dischargedoes not contain any objectionable substance. A proper Treatment Device

may have to be deployed like a water treatment plant / effluent treatmentplant. For drying, a suitably designed drier is used.

Many industries situated outside the metropolises, use open space for naturaldrying of the cleaned waste.

Agglomerating / Colouring

In the next operation the sized plastics waste is mixed with colour masterbatch in high-speed mixers / agglomerators and the output is ready forextrusion into pellets.

Extrusion / Palletisation

This is the most important part of the process wherein the sized / chippedplastics are plasticized and granulated to make the plastics material ready forfabrication next.

The type and size of the Extruder depend on the type and volume of theplastics waste.

Fabrication into end Product

Finally the reprocessed plastics granules are used as raw material forproducing end products using similar fabrication machines like InjectionMolding / Extrusion etc., depending Upon specific requirement.

Scope of operations

Now presently our production capacity is 200kg/day from which in initial stageswe are utilizing around 50% of it. As the business expands we will reach tooptimum capacity utilization. We are expecting that we will start producing moreadvance plastics in the fourth year of our operations and accordingly the saleswill increase and the facility will have to be expanded.

SUpply chain



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In the city there are various small post consumer plastic bottle collectors. Tomake a continuous sUpply of raw material we will have four sUppliers with us.There will be one permanent sUpplier which will continuously sUpply the rawmaterial. In case of excess demand other sUppliers will be taken intoconsideration. The transportation cost will be covered by sUpplier only. Thefinished product will be stored in the warehouse and according to the demand it

will be send to city distribution centre. The distribution center will directly sell thefinished household plastics as well as to the small shops.

Our average daily demand of raw material is 300kg and the lead time we willkeep lead time of 6hrs. We keep a safety stock of 50 kg. So the reorder point isgiven by

Reorder point= average daily uses x lead time + safety stock

Reorder point = 300 X .25day + 50

= 125 kg.

So at each and every day we will have minimum of 125kg (safety stock+ reorderpoint) of raw material in our inventory.

This means that when the raw material level reaches to 125kg we will place the nextorder. The difference time in which we will place the order and receive the order is thelead time which is 6hrs.



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Process flow chart

Gantt chart



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As it is an assembly line the output of one stage is feeded to the input of next stage. Thewhole process will run in series format. That is the reason why no parallel process ismentioned in the gantt chart.

Facility Layout



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Financials



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The startUp cost of our business is as follows:

Start-

UpRequirementsStart-Up ExpensesLegalStationeryBusiness CardsInitial MailingProcess FundingOffice Equipment

Total Start-Up Expenses

Start-Up AssetsCash RequiredOther Current AssetsLong-term Assets

Total Assets

Total Requirements

Amount

6,000500500100400

2,50010,000

1,00,0000

33,30,000

34,30,000

34,40,000

Income statement



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The projected income is as shown below it shows that first year we will endUp with loss but from second year we will start making profits.

Particulars

net salescost of goodsales

gross marginoperatingexpenses:

admin exp.Advertisement

SalariesTransportationMaintenanceElectricityTelephone

Legal exp.InsuranceRentother exp

YEAR1YEAR 2 YEAR 3 Year 416200 210600

000 2737800 328536089100 115830

00 1505790 180694872900

0 947700 1232010 1478412

3000600019200

09600015000480010000

100002000024000600038680

034220

030300

03920017555

0

31507200

21120010560015750504011000

100020000264006600

412940

534760

272700262060

165061

33088640

23232011616016538529212100

100020000290407260

451657

780353

245430534923

153243

347310368

25555212777617364555713310

100020000319447986

494330

984082

220887763195

139926

EBITDA

less depreciationEBITLess interestpaid



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EBTtax @ 30%

PAT

-13635

00

-136350

9699929100

67899

381680114504

267176

623269186981

436288

Balance sheet

The projected balance sheet of four years is as follows:

Sources of Funds

Capital

Owner's capital

Surplus

Net worth

Long Term loan

Loan

Current Liabilities

Creditors

Total liabilities

Application of fund

Plant & M/C

Less depreciation

Land

Actual Fixed Asset

Current Assets:

Inventory

Bank


Year-1

1930000

-136350

1793650

1417302

70500

3281452

3030000

303000

2727000

300000

3027000

97200

10000

Year-2

1930000

-68451

1861549

1324116

56722

3242387

2727000

272700

2454300

300000

2754300

315900

40000

Year-3

1930000

130274

2060274

1219111

68066

3347451

2454300

245430

2208870

300000

2508870

410670

100000

Year-4

1930000

765287

2695287

1100789

81680

3877756

2208870

220887

1987983

300000

2287983

821340

100000


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Debtors

Advance to sUppliers

Investment

Total Assets

147252

0

3281452

132187

0

3242387

117911

210000

3347451

232703

335730

100000

3877756

Break Even Point

VC

other exptransportationtelephonewagescarriage

inward

power

raw material

totalcontribution

pv ratio

Amount in

Rs

6000

9600010000

119250

FCAdminInterestadvertisementInsuranceSalary

Amount in

Rs3000

175550

600020000

192000

24000

15000

30300010000

748550

238500 Rentmaintenan

119250 cedepreciatio

414000 nLegal

1003000 Total

617000

0.3808642



30/36

BEP unitsBEP SALES

1965398.70315 in months

1.21 In years

135000

As the BEP is 15months it means that at 15th month we will be in a trade offtotal expenses and revenue.

Appendix

Annuity table:

total loan pmt[1-1/(1-amt.=i)^n]/in is number ofyears

i is interest rate

loan amount

interest rateannually

1500000

0.12

############

21520.64

principle

6521

6586

6652

6718

6785

balancAnnuale O/Sinterest149347

9

1486894

1480242

1473524

1466738

pmt=

month

21521

EMIInterest2152

1115000

21522114935

21523114869

21524114802

21525114735



31/36

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

2930

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

2152

121521

21521

21521

21521

21521

21521

2152

12152

14667

14599

14530

14460

14389

14318

14246

14173

14100

14025

13950

13875

13798

13721

13643

13564

13485

13404

13323

13241

13158

13075

12990

1290512819

6853

6922

6991

7061

7132

7203

7275

7348

7421

7495

7570

7646

7722

7800

7878

7956

8036

8116

8198

8279

8362

8446

8530

86168702

1459885

1452963

1445972

1438911

1431780

1424577

1417302

1409954

1402533

1395038

1387468

1379822

1372099

1364300

1356422

1348466

134043

01332313

1324116

1315836

1307474

1299028

1290498

128188

2127318

175550

165061



32/36

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

12152

12152

12152

121521

21521

21521

21521

21521

21521

2152

12152

12152

12152

12152

12152

12152

1

215212152

12152

12152

12152

12152

12152

1

21521

12732

12644

12555

12465

12375

12283

12191

12098

12004

11908

11812

11715

11617

11518

11418

11317

11215

11112

11008

10903

10797

10689

10581

10472

8789

8877

8965

9055

9146

9237

9330

9423

9517

9612

9708

9805

9903

10003

10103

10204

10306

10409

10513

10618

10724

10831

10940

11049

0126439

1125551

5124654

91237494

1228348

1219111

1209782

1200359

1190842

118122

9117152

1116171

6115181

2114181

0113170

7112150

4

1111198110078

9109027

7107965

9106893

5105810

3104716

4

1036115

153243

139926



33/36

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

7879

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

2152

121521

21521

21521

21521

21521

21521

2152

12152

10361

10250

10137

10023

9908

9792

9675

9556

9437

9316

9194

9070

8946

8820

8693

8565

8435

8304

8172

8039

7904

7768

7630

74917351

11159

11271

11384

11498

11613

11729

11846

11964

12084

12205

12327

12450

12575

12701

12828

12956

13085

13216

13348

13482

13617

13753

13890

1402914170

1024955

1013684

1002300

990803

979190

967461

955615

943651

931567

919362

907035

894584

882010

869309

856481

843526

830440

817224

803876

790394

776777

763024

749134

735104720935

108010

124920



34/36

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

12152

12152

12152

121521

21521

21521

21521

21521

21521

2152

12152

12152

12152

12152

12152

12152

1

215212152

12152

12152

12152

12152

12152

1

21521

7209

7066

6922

6776

6628

6479

6329

6177

6024

5869

5712

5554

5394

5233

5070

4906

4740

4572

4402

4231

4058

3884

3707

3529

14311

14454

14599

14745

14892

15041

15192

15344

15497

15652

15809

15967

16126

16288

16450

16615

16781

16949

17118

17290

17462

17637

17813

17992

706624

692169

677570

662825

647933

632892

617700

602356

586859

571207

555398

539432

523305

507018

490567

473952

457171

440222

423104

405814

388352

370715

352901

334910

67486

88957



35/36

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

21521

2152

1

3349

3167

2984

2798

2611

2422

2231

2038

1843

1647

1448

1247

1044

840

633

424

213

18172

18353

18537

18722

18909

19098

19289

19482

19677

19874

20073

20273

20476

20681

20888

21097

21308

316738

298385

279848

261126

242216

223118

203829

184346

164669

144795

124722

104449

83973

63292

42404

21308

0 16031

43293



36/36

Bibliography

Crisil report on plastic industryPlastic waste option for small scale recourse recovery by IngeLardinoisSmall scale recycling of plastic by- Jon Vogler

26715593 business plan edit

Documents