paper plate final

INTRODUCTION:

Disposable food service products were initially developed to enhance public health by

improving practices in the food service industry. This requirement when combined with the

environmental threat faced by us at the turn of the 20th Century and need of strong efforts in

order to conserve the environment gave birth to the concept of PAPER PLATESS. There are

several inherent advantages in using Paper Plates as compared to plates of other materials. These

Paper Plates are gaining popularity all across the globe as a beautiful and stylish way of

minimizing exposure to food borne infections.

Paper Plates have numerous advantages like; they are manufactured in a very simple

process using Food Grade Raw Materials with least waste and are easiest to recycle. They are

ideal for individual servings at all kinds of parties, functions, picnic occasions, marriages, chat, tea

& food joints, etc. Non-toxic in nature, the shapes and surface designs on these paper plates are

attractive and present an inviting look. These paper plates can also be custom printed with an

outlet's logo, brand punch line or advertising message.

Available in a wide variety of designs, textures, colors and sizes, disposable paper plates are

gorgeous, stylish and eloquent. Adding premium aura wherever used, these plates are made with

utmost care to detail and are a unique addition to any table setting.

Hence, the future of the proposed unit for manufacturing paper plates is very vibrant and will be

a gesture towards supporting the usage of Eco-friendly products.

The benefits of using biodegradable products are many fold. Biodegradable plates are

typically made from bagasse, which is a material that is made from sugar cane. This is a

widely available renewable and sustainable resource. Biodegradable plates made from

bagasse will decompose over time and do not have the same negative impact on the

environment as non-biodegradable plates and other containers. There are a wide range

of biodegradable plates available.

Business plan on Paper Plates

COMPANY DESCRIPTION

Paper crockery House will be a unique business in Comilla as well as in Bangladesh. It will

clearly attract most of the customers because they prefer to use designable & hygienic products at

competitive price.

VISION: Corporate vision is a short, succinct, and inspiring

statement of what the organization intends to become and to achieve

at some point in the future. Our vision is “To become one of the

most well-known Paper Plates Manufactures in Bangladesh by

providing quality and innovative products at competitive price to

meet the requirements of the customers”

MISSION: The Mission Statement is a crucial element in the

strategic planning of a business organization. Our mission is:

To provide the quality and innovative products at competitive

price to meet the requirements of the customers.

Contribute to the success and satisfaction of our customers

and focusing on-in-time delivery.

Co-operation, teamwork and partnerships.

Continuous learning

Honesty, fairness, integrity, and respect.

Company goals and objective: The goals & objectives of our company will be as

follows:

Our main objective will be to capture the large percentage of the market in one year of

starting the business and retain it in the long run as well.

Our goal will be to provide products of high caliber and retain market and increase

profitability and ensure success.

Target market:

paper plates are ideal for individual servings at all kinds of


Non-toxic in nature, the shapes and surface designs on these paper plates are attractive and present an inviting look.

Target marketOur target market is all sorts of people of our society.

parties, functions, picnic occasions, marriages, chat, hotels & food joints, etc. Besides general market requirements, paper crockery is required in large quantities by the caterers. Because of their disposables nature and comparatively much lower prices, these are quite often preferred over porcelain, glass or metal containers for certain specific requirements. The demand for paper plates, dish and cups and saucers is likely to grow substantially in future both in urban as well as rural areas.

INDUSTRY ANALYSIS:

We will be the first company to manufacture designable paper plates in Bangladesh. Our

business is a start-up company for which the most vital issue to its success and profitability in the

long run is marketing. We will offer superior and unique products and services to our customers.

FACTS ABOUT THE INDUSTRY

Total size of the market:

The paper crockeries in Bangladesh are not that highly developed. So a business like our will

flourish. Total market is small with lots of opportunity.


Current demand in target market:

Our target market includes all occasions or festivals. We have found that the demand for our

product and service is high because occasion happens all around the year. People need Crocker

related services all the time and so we thing demand for our business will be high.

Trends in target market:

Our paper crockery house is a start-up company for which the most vital issue to its success and

profitability in the long run is marketing. We will offer unique products and services to our

customers.. We want to attract those customers and other local people by providing them quality

products. Also, we will provide them better services to make their occasions valuable. In

Bangladesh, the market for a paper product service is yet wide open as there is no such company

which has dedicated its concentration solely toward this service

Industry Demand:

Bangladesh is a populated country with a population near 15 core. About 20% percent of them are

young and labor market is very cheap. After the war of 1971, this country is developing and the

living standard and life style of people in developing. So, we can say that the market is growing

here and also the demand of customers

Strength:

Our strength is that we are providing quality product and services at a reasonable price and

becoming the first designable paper plates manufacturer in Bangladesh. Also our expertise is

another one of our strength.

OUR PRODUCTS

Paper crockery such as paper plates, dish, cups, saucers etc is our main product. Because of it’s Non-toxic in nature, the shapes and surface designs on these paper plates are attractive and present an inviting look. They can be used extensively for serving eatables in parties, functions and social gathering.


Installed Capacity: Assuming operations for Single Shift per day for 300 working days per annum the following annual installed capacity and turnover is estimated:

Sl.No Descriptions Rate Amount (Tk)1. Plate / Dish Best quality 3,20,000 nos. 2.20 7,04,000/-2. Plate /Dish Normal quality 4,00,000 nos 1.30 5,20,000/-3. Cup Normal 2,80,000 nos 0.8 2,24,000/-4. Ice cream Cup 2,00,000 nos 1.10 2,20,000/-

Total: 16,68,000 /-

Manufacturing Process for Paper Dish/Plate:

Paper is first printed on the printing press. The printed part is cut to size and given the desired shape by die cutting. The cut circles are passed in screw press for obtaining the desired shape.

1. Feed the paper to the entrance,


2. The plates-fan-wall paper auto sealing on the body sealing mold After pre-heating, bottom heating, then the plates-bottom curling to the plates body,

3. Curling process: curling the plates top to circular shape,4. Pattern rolling, in here, you can add another system to send the finished paper plates to the

working desk.5. Package the finished paper plates in plastic bag or other hermetic Pc bags to protect the plates

top shape becoming ugly or breached.6. Package the plastic bags in a cardboard box............7. The general structure of paper plates (bowl) shaping machine is composed of five parts. They are

the first stage, the middle stage, the second stage, the third stage and its outer shell.

The first stage: mainly finishes transmission of the paper plates sidewall paper, shaping sidewall and transferring them to the middle stage after shaped.


Paper Pleats Manufacturing Machines

The medium stage: mainly finishes transmission of the plates- bottom paper, shaping plates-bottom, joining the shaped sidewall and plates-bottom, automatic transmission and discharging of the shaped plates, and curling the shaped plates edge.

The third stage: mainly includes 45 angle separating, preheating, curing bottom, rouletting, curling rim and so on mechanisms, which are the important parts in finishing paper plates machines

The fourth stage: mainly includes motor, reduction gear and soon. A frequency converter used to finish adjusting machine production speed and providing power.

Flow Chart:

BodyPrinted Forming

CuttingPE- InBottomCoated Machine

Paper

Packing CheckingSALES

of Quality

Manufacturing Flow Chart

Raw Materials:

The row materials required for the unit are mainly Paper, paraffin wax, ink, gum and packaging


materials required per year is as below .

SL.No Descriptions Taka (Ton/Kg/Qty)

Quantity Amount per year

1 Paper ;Grey Board, Mill Board,

72,000/- 8 ton 5,76,000

2 Single color printing ton 4150/- 4 16600

3 Paraffin wax 52000/- 520004 Ink, Gum etc 30000/- 300005 Packing cost 60000/- 60000

Total 734600/-Add vat 15% 110190/-Add Transportation:

120000/-

TOTAL COST 964790/-


Mill Board Paper Plate without Printing & Laminating

Paper Plate after Printing & Laminating

Power: Electricity power requirement for the unit is only for administration and production and generator is only use for office. Monthly 1340 KWHrs of power shall be consumed which may cost Taka 61104/-

Water; Water required by the unit is mainly for production and office. The amount required for this purpose 6000/- per year.

Manpower: The requirement and cost of manpower to be recruited locally are shown below:

S . L. No Descriptions No Salary per month

Amount

1. Manager / Accountant cum Supervisor

Self Self Self

2. Skilled worker 2 3300 6600/-3. Semi skilled

worker1 2200 2200/-

4. Sales Representative

1 3850 3850/-

5. Helper 1 1650 1650/- Total 14300


CAPITAL COST ESTIMATE:

A cost estimate is the approximation of the cost of a program, project, or operation. The cost estimate is the product of the cost estimating process. The cost estimate has a single total value and may have identifiable component values. A problem with a cost overrun can be avoided with a credible, reliable, and accurate cost estimate.

CAPITAL COST ESTIMATE:

A. LAND & BUILDING with a built up area1000sq. mtrs.

On rent

B. PLANT AND MACHINERY ;SL. NO DESCRIPTIONS QTY AMOUNT1. LBZ-LA Single Side PE Coated 01 3,17,000/-

paper Cup machine.2 HZ-D paper Plate Machine 01 3,50,000/-3. Gen Set 01 75,000/-

Total: 7,42,000/-Miscellaneous Fixed Assets1 Electrification 44,000/-2. Water installation 16,500/-3. Furniture & Fixtures including a Computer set 69,300/-

Total: 1,29,800/-Total Fixed Assets: 8,71,800/-

Working Capital (P.a)1. Raw Materials 243584/-2. Salary & Wages 171600

/-3. Miscellaneous exp 7,500/-5. Utilities & water 60000/-

Total : 482684/-Total Project Cost: 1354484/-


http://en.wikipedia.org/wiki/Cost_overrun

http://en.wikipedia.org/wiki/Project

Marketing Plan

Product Strategy

A product strategy is the ultimate vision of the product, as it states where the product will end up. By setting a product strategy, we can determine the direction of your product efforts. We will sell most of our products by our distributors. Those will paper plates, dish, cups, saucers and so on. Because of it’s Non-toxic in nature, the shapes and surface designs on these paper plates are attractive and present an inviting look. They can be used extensively for serving eatables in parties, functions and social gathering.

For parties, functions, picnic occasions, marriages we will design our product featuring the

main aspects and benefits according to our customers. Thus we will be able to maximize the

lifetime value of a customer. We will also include some societal and environmental advices

so that the customers feel good for our product.

Pricing Strategy

A business can use a variety of pricing strategies when selling a product or service. The Price

can be set to maximize profitability for each unit sold or from the market overall. It can be

used to defend an existing market from new entrants, to increase market share within a

market or to enter a new market.

We will follow competition based our pricing strategy. We will clearly mention in all of our

banners and advertisements as well as everywhere in our store “Your Price, Always!” to

encourage customers to buy products from our store at the most reasonable price. Since

our store is new and most of them customers don’t know about us. Lowering prices might

be suicidal because then the other wellknown stores will also lower their prices and thus

will be able to retain their customers. So, lowering prices than the market price will not be a

winning formula.


http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Product_(business)

Promotional Strategy:

Our promotional budget will be approximately 45000/- . These will also be our startup

cost and ongoing to which we might add some more when and if required. We will do strong

promotions so that the customers will be lured to come and buy wedding accessories from

our store:

1. We will advertise our products and services on newspapers. We will advertise on

Porothom Alo, Comillar Kajor, Ruposi Bangla, and Comilla Barta because most of the

potential customers are assumed to read those newspapers mostly.

2. We will place a Bill Board at Kandirpar initially because numerous people pass this

place and they will get to know about our store easily. It will be very effective advertising.

Besides, we will also use the some cable channels for our advertising in a monthly payment

basis with the cable operators. In the beginning of our business we are not going any direct

TV advertisement of our shop because it will take huge money.

3. We will give the price discount offer for our loyal customers from the beginning of

our business but the condition is that they have to buy TK. 30,000 product from our store

then they will get the 5% discount on this purchase.

4. We will make extreme promotion in social media like facebook, YouTube etc. We

will update our status every day.


Legal Environment

Legal Concern:

Constitution of the people republic of Bangladesh consists of important laws and ACTS to

govern the business of the country. Some of the laws are from the English Common law and

other laws are from Indian Law. Here Contract ACT of 1872 and Sale of goods ACT of 1930

are followed to govern the business. These laws are written precisely and very much related

to the business environment of the country. There are no confusion going on regarding those

LAWS and it supports all the legal operation to make profit.

Terms of Agreements:

3 Years agreement.

Have vision to expand the business.

60% of profit earned in a year will be reinvested till further notice.

Responsibilities will be specific and realistic.

Any kind of loss or profit will be distributed among the partners according to their

contribution for that particular loss or profit.

Partners should have good understanding between each other.

Any kind of unethical behavior will not be accepted.

Confidentiality of the firm must be reserved

All the partners should sit for a meeting to discuss future plan and recent threat for

once in month.

Any of the director cannot argue about the terms or agreement given above

INSURANCE COVERAGE:

We will take out insurance from Green Delta Insurance Company LTD. Which is one of the

leading general insurance company in Bangladesh and they are giving us one core taka as an

insurance safety. We have to give 8,000 taka per month as insurance premium.


BARRIERS TO ENTRY:

Like every business ours also has some barriers which might hamper our plan of starting a

Paper crockeries , but like all entrepreneurs we are ready to take risks and overcome the

barriers as much as possible. According to us the following points given below are the entry

to barriers:

We will overcome these barriers by going for extensive marketing so as to make sure that

enough profit is generated to cover the cost and also our store is recognized by our target

market.


High capital costs

High production costs

High Marketing Cost

Consumer acceptance and brand recognition

Training and skills

PORTER’S FIVE FORCES MODEL:

The nature of the competitive condition existing in an industry can provide useful information in assessing its future. Michael porter has written extensively on the issue of competitive strategy which involves the search for a competitive position in an industry. The factors are-

PORTER’S FIVE FORCES

Threat of new entrants.Bargaining power of buyers.Bargaining power of suppliers.Rivalry between existing competitors.Threat of substitute product or services.

1. Bargaining power of suppliers: raw materials for the product can be attained from a number of suppliers and consequently the bargaining powers of the suppliers are less. It is obviously a positive signal for the company.

2. Bargaining power of buyers: As we are going to produce Paper plates as a first mover; there is a little scope for the buyer to bargain. So the farm can charge as much amount as possible that is acceptable to the buyers and profitable for the firm.

3. Threat of substitutes: There are no alternative products that can be substituted for the paper plate manufacture. So the substitution effect on the price of the product is zero.


4. Threat of new entrants: As there is a demand for the paper plate of the leftist gardener in the market, there are possibilities that new firms will come to create competition. The presence of new firms can lower the price and grab the market share from the M/S Shuvro and co.

5. Rivalry among existing firms: There is no alternative firm in the market. So there is no rivalry among the market at present for the products.


SWOT Analysis

SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis

can be carried out for a product, place, industry or person. It involves specifying the

objective of the business venture or project and identifying the internal and external factors

that are favorable and unfavorable to achieving that objective.

Pic: SWOT AnalysisStrengths: Characteristics of the business or project that give it an advantage over others.

Weaknesses: Characteristics that place the team at a disadvantage relative to others.

Opportunities: Elements that the project could exploit to its advantage.

Threats: Elements in the environment that could cause trouble for the business or project.

STRENGTH


We are the pioneer in our city

The concept of paper crockery is totally unique in our city. As we are going to provide paper

crockeries to an occasion and so far we know that there is no shop where one can get

chance to buy paper crockery for an occasion. So it is certainly a great strength for us.

We will provide quality service

So far we planned for our business, we the executive body decided to put more emphasis on

providing quality service. We know for a business, it is very important to pay attention to

the product quality as it attracts customer. So it is sure that our service will be strength for

us.

Extensive marketing strategy

We will mostly emphasize on marketing and advertising activities. So it is definitely a great

strength for our product. We will run promotional campaigns; advertise on newspapers,

banners and many more, which stores don’t actually perform.

WEAKNESS

Brand unawareness

Unawareness of our brand among customers is our main weakness. But we are able to

overcome this obstacle at the very first stage through extensive advertising and promotion.

Inability train our employees

We all know that trained employees are asset for an organization

Lack of product knowledge

As we are the first in this business and this is the first time that we have come up with such

unique idea, it is obvious that we will have lack of product knowledge

OPPORTUNITIES

Expansion in other areas of Bangladesh


Up till now we decided to operate our paper crockeries industry in the Comilla city.. Since

we will have the largest market share in a very short period, we’ll also be able to expand our

business in our country.

We the owner of the business are educated

We the six executives as well as the shareholders of paper crockery industry are educated

and studied in the field of business. In market environment we often observe that many

business fail due to the lack of education of the founder. As he has less education, he usually

fails to carry on with his business. But in our case the situation is different. As we are the

student of business, we know much more than any other person. We will consider it as our

opportunity.

Higher demand and increasing popularity

Our business will certainly have higher demand and its popularity will increase day by day as

people will get necessary items in low price as they will get to know about our business from

advertisements and also from other people.

Entrepreneurial opportunities

Because of the all-time needs of occasion there will always be needs of crockery products

too. We will be making innovative products for occasion as time will change.

THREATS


More Expansion/Diversification May Lead to Chaos

Up till now our paper crockery will operate in comilla . But we already said that we have

planned to expand our business in Bangladesh . In that time as we will expand our

operations widely, it may create any problems or chaos

Huge competitors

Since we will be the first paper crockery industry in Bangladesh, it may happen that

businessmen, after acquiring knowledge from us, come up with more attractive feature than

us. It will become a threat for us.

Better Communication with nearby country

When the communication with nearby country like India (Kolkata) will become easier and cheaper, people will feel more comfortable to go in those areas to buy their crockery items from there. No matter how improved quality we are providing or even we are providing the same

Financial statement analysis


Financial statement analysis is an evaluative method of determining the past, current and projected performance of a company. Several techniques are commonly used as part of financial statement analysis including horizontal analysis, which compares two or more years of financial data in both dollar and percentage form; vertical analysis, where each category of accounts on the balance sheet is shown as a percentage of the total account; and ratio analysis, which calculates statistical relationships between data.

Financial statement analysis consists of 1) reformulating reported financial statements, 2) analysis and adjustments of measurement errors, and 3) financial ratio analysis on the basis of reformulated and adjusted financial statements. The first two steps are often dropped in practice, meaning that financial ratios are just calculated on the basis of the reported numbers, perhaps with some adjustments. Financial statement analysis is the foundation for evaluating and pricing credit risk and for doing fundamental company valuation.

Profitability: (TAKA. In Thousands)Sl.No. Description 1st Year 2nd Year 3rd year 4th Year 5th Year1. Capacity utilized as percent of 60% 70% 80% 80% 80%

installed capacity2. Annual Sales Tk. 1439 1679 1919 1919 19193. Annual Costs in Tk.(a) Raw Materials 760 886 1013 1013 1013(b) Utilities 48 55 63 63 63(c) Wages & Salaries 103 120 137 137 137(d) Administrative expenses 94 98 103 108 114

(e) Selling expenses 72 84 96 96 96(f) Depreciation 124 124 124 124 124(g) Interest on Composite Loan 109 88 65 39 134. Total Cost 1310 1455 1601 1580 1560

Variable Cost 880 1025 1172 1172 11725. Annual profit 129 224 318 339 3598 Return on investment 9.32 16.18 22.97 24.49 25.939. Return on sales 8.96 13.34 16.57 17.66 18.7010. Annual Contribution 559 - - - -11 Break Even Point as percent of 46.15% - - - -

capacity12 Cash accrual 253 348 442 463 48313. Debt servicing capacity 362 436 507 502 49614 Repayment of Composite Loan 157 183 209 209 20915. Debt serviced 266 271 274 248 22216 Pay Back Period 2 YeaTk 7 Months 24 days17. Debt Service Coverage Ratio 1.36 : 1

(DSCR)

Cash Flow Statement: )Sl. Description Pre- O p e r a t i n g Y e a r s


No. operative 60% 70% 80% 80% 80%Period FiTkt Second Third Fourth Fifth

1. Increase in Promoter’s capital 69 - - - - -2. Increase in composite loan 969 - - - - -

3 Increase in Subsidy 346 - - - - -

4. Depreciation - 124 124 124 124 1245. Profit before interests - 238 312 383 378 370A. TOTAL SOURCES 1384 362 436 507 502 4946. Increase in capital investment 1241 - - - - -7. Increase in working capital 143 - - - - -8. Interests - 109 88 65 39 13

9. Repayment of loan - 157 183 209 209 209B. TOTAL DISPOSALS 1384 266 271 274 248 222C. OPENING BALANCE - - 96 261 454 148D. NET SURPLUS - 96 165 233 254 272E. CLOSING BALANCE - 96 261 494 748 1020

Projected Balance sheet:Sl. Description Amount in Tk. Thousands as at the end of theNo. 1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.1. Capital Account of the 69 198 422 740 1079

Promoter2. Surplus from operations 123 224 318 339 359

NET WORTH: 198 422 740 1079 14383. Composite loan 812 629 420 211 nil4. Subsidy 346 346 346 346 346A. TOTAL LIABILITIES 1356 1397 1506 1636 17841. Gross Block (F C) 1241 1241 1241 1241 1241

Less Depreciation 124 248 372 496 6202 NET BLOCK 1117 993 869 745 6213 Current Assets 143 143 143 143 1434. Cash & Bank Balance 96 261 494 748 1020B. TOTAL ASSETS 1356 1397 1506 1636 1784


ASPECTS OF THIS PLAN

1. In the future we expand our business especially in the field of Green Business .

2. If we get success then this business will keep on growing in future. We will be planning to

expand our market and include as much target consumer as possible.

3. In future, we plan to export our products

4. In terms of expanding the business we must make good relation with customers. We

should have good communication too with them. It would help us to get well known to the

customer group.

5. To continue our business in long run we need to keep the existing customers as long as

possible.

6. We have planned to take the opinions from the customer to improve the quality of our

products As we are expanding our business, we will recruit much experienced employees

PRESUMPTION:

All due care has been taken in the preparation of this report to ensure that the information,

estimates, opinions, suppositions, suggestions, and recommendations contained here-in are

factually correct and accurate to the best of our knowledge, at the time of generating and

publishing this report. In particular as our Query Resolution service is not based on any Primary

Data collection and analysis, there can be inherent challenges in the depth and scope of the

issues it can address. We, at 365BusinessDays, accept no liability for any loss or damage or

unforeseen consequential loss or damage that may arise from the use of the information

contained within this report. The information, estimates, opinions, suppositions, suggestions, and

recommendations within this report cannot be guaranteed, and readers are advised to use this

information and the implications there-in at their own discretion and risk. The information

published in this report may be subject to change without notice at any time, and we accept no

liability or obligation to inform the readers or users of this report of such changes.


paper plate final

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