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
29 | U n i q u e P l a s t i c s
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
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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 | U n i q u e P l a s t i c s
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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 | U n i q u e P l a s t i c s
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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 | U n i q u e P l a s t i c s
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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
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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 | U n i q u e P l a s t i c s
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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 | U n i q u e P l a s t i c s
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Bibliography
Crisil report on plastic industryPlastic waste option for small scale recourse recovery by IngeLardinoisSmall scale recycling of plastic by- Jon Vogler
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