Business Plan

UNIQUE PLASTICS
Quality at the BEST

rpims
bhayender, mumbai

[year-2010]
TABLE OF CONTENT

EXECUTIVE
SUMMARY………………………………………………………………………………………
………………….4

COMPANY
OVERVIEW………………………………………………………………………………………
…………………..5

MISSION………………….
………………………………………………………………………………………………………
………….5

MARKET AND
PRODUCT…………………………………………………………………………………………
…………………..6

OBJECTIVE………………………………………………………………………………………
…………………………………………..6

KEY TO SUCCESS..
………………………………………………………………………………………………………
………………..6

PRODUCT AND SERVICE

DESCRIPTION………………………………………………………………………………….
.7

MARKET COMPARISON………………………….
……………………………………………………………………………………7

POSSIBLE OBSTACLES…….………………………………….
………………………………………………………………………..7

INDUSTRY AND MARKET PLACE ANALYSIS………….

………………………………………………………………….9

INDUSTRY ANALYSIS……………………………………………………..
…………………………………………………………….6

2 |Unique Plastics
MARKETPLACE ANALYSIS…………………………………………………………………….
……………………………………..6

CUSTOMER
ANALYSIS…………………………………………………………………………………………
………………….…11

COMPETITOR
ANALYSIS…………………………………………………………………………………………
…………………12

MARKETING STRATEGY………….
……………………………………………………………………………………………12

PRODUCT SERVICE STRATEGY..

…………………………………………………………………………….………………….13

PRICING STRATEGY…………………………………………..
………………………………………………………………….…13

DISTRIBUTION
STRATEGY…………………………………………………………………………………………
………………13

ADVERTISEMENT AND PROMOTION

STRATEGY……………………………………………………………………….13

SALES
STRATEGY…………………………………………………………………………………………
……………………………13

SALES
FORECAST………………………………………………………………………………………
………………………………13

DEVELOPMENT
………………………………………………………………………………………………………
………….14

DEVELOPMENT STRATEGY….
…………………………………………………………………………………………………….1
4

MANAGEMENT…….
………………………………………………………………………………………………………
…….15

3 |Unique Plastics
OPERATIONS….
………………………………………………………………………………………………………
…………..16

SCOPE OF
OPERATIONS……………………………………………………………………………………
………………..…….20

SUPPLY CHAIN………………..
………………………………………………………………………………………………………
…21

PROCESS FLOWCHART………………………….
………………………………………………………………………………….22

GANTT
CHART……………………………………………………………………………………………
…………………………….23

FACILITY
LAYOUT……………………………………………………………………………………………
………………………..24

FINANCIAL STATEMENT………………………………….
…………………………………………………………………..25

STARTUP
EXPENCES…………………………………………………………………………………………
………………………25

INCOME
STATEMENT………………………………………………………………………………………
……………………….26

BALANCE SHEET……………………….
…………………………………………………………………………………………….…27

BREAK EVEN
POINT………………………………………………………………………………………………
………………….28

APPENDIX………………………………………………………………………………………
………………………………….29

Bibliography
………………………………………………………………………………………………………
………………33

4 |Unique Plastics
 Executive summary

Plastic is the basic need of our day to day life. During recent years the plastic
industry has grown with a substantial growth rate. This growth is driven by three
sectors viz packaging, infrastructure and agriculture. There are the various
verities of plastics out of which PVC (Polyvinyl chloride) and PET (Polyethylene
terephthylene) plastics have their considerable contribution. PET plastics are
generally used in the manufacturing of beverage bottles for the packaging and
PVC plastic is used in the production of household plastic materials. The growing
utilization of plastics in industrial and consumer applications and surrounding
solid waste recycling, has led to an increased demand for recycled plastic resins
and products.

We the Unique plastics provide a wide range of plastic solutions for household
and raw material for packaging of various companies. As a part of our ongoing
efforts to exploit this opportunity we will recycle the plastics and then produce
kitchen ware items and other related plastic material. We will also sell the
recycled plastics to the companies in the plastic business. We will have a
recycling plant along with the production unit. The raw material will be procured
from the waste collectors. The raw material will be post consumed beverage
bottles and other soft plastic materials

5 |Unique Plastics
 Our main focus is our industrial customer whom we will sell PET bottles and
PET flakes. It will contribute more than 60% of our sales. We will also focus on
the household plastic business which is the part of our portfolio. The initial set up
cost will be Rs 34, 40,000.

Unique plastics will be a solution proprietorship business run by the promoter

Ajay Kamble, Deepak Gupta, Prabhakar Gawande and Arvind Yadav who is a
MBA graduate with marketing as specialization. Our finance team is Shabana
Khan and Maya Sakhrani with Finance as specialization

Since plastic material does not carry any brand name so it will give us an addition
benefit in long term to establish our brand name. To exploit the market we will
use penetration pricing as our marketing strategy and utilize our stringent
distribution 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 this
we will be able to produce plastic carry bags and raw material for production for
plastic chairs and tables and other fiber based products.

COMPANY OVERVIEW

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

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

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

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

We will produce two types of replay plastics

6 |Unique Plastics
 • PVC( Polyvinyl chloride)

• PET( Polyethylene terephthylene )

Mission Statement

Unique Plastics

• Strive to provide the excellent plastic solution to the customers at

competitive 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 of
Mumabi and the cities around it like Thane, Pune, Nashik is around 3Cr. and this
area is basically comprises of low to middle income groUp families so they focus
on plastic products rather than fiber since it is a cheaper. Hence it is huge market
to exploit.

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

Apart from this we will sell raw material for packaging to the various small
companies in this area. Around 30 small and medium scale companies are
working 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 other
is household.

7 |Unique Plastics
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 companies

for 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 them
• Maintain low overhead and operating costs
• Provide better prices than all our competitors

Product and services

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

The recycled plastic is processed to Polyethylene Terephthalate (PET). PET is a

thermoplastic polymer viscous of polyester family. The biggest property of this

8 |Unique Plastics
compound is it transparent. This is the reason why it is used for packaging. Apart
from this PET have good strength, ductility, stiffness and hardness. After the
recycling process completed an extruded plastic is generated. Plastics extrusion
is a high volume manufacturing process in which raw plastic material is melted
and formed into a continuous profile.

The products we are producing are

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

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

Recycled plastic is widely used in mainstream construction products such as

damp proof membrane, drainage pipes, ducting and flooring. Bins, street signs
and planters are frequently made from plastic. They are cost competitive and
resistant to damage. Local authorities and schools are able to demonstrate
recycling in action by specifying recycled products

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

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 is
frequently 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 is
most often the determining factor in a buying decision. Good-quality packaging
products manufactured from recycled (less expensive) resins, as close as
practical to the end customer's operations, will be most competitive and achieve
a significant market share. These factors have helped to determine the business
parameters of Replay Plastics.

Possible obstacle

9 |Unique Plastics
The product is completed and ready for the market launch. The possible
obstacles 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 beverage
bottles. 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 of

technically feasible and economically viable solutions to PET plastic
beverage bottle recycling, as well as environmentally aware in-house re-
use practices which filter and return nearly all of the process water to the
production lines

Industry and marketplace analysis

Industry analysis

Plastic recycling is an industry in itself in India. According to the Crisil research

7360 companies are working in this industry with a turnover of Rs 9200 Crore
provides employment to 3.5 million people. In India per capita plastic
consumption in lowest in the world. The per capita consumption is just one fifth of
world 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 at
6.3% and plastic industry 1.3 times of GDP. According to the Crisil report the
demand of plastic by 2012 will be around 12MMT. The plastic consumption in
India 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 infrastructure
and agriculture. In case of packaging industry we are using more plastic than the
developed countries. The growth is driven in three major sectors – infrastructure
which is 13%% of the total, packaging is 15% of the total and 10% for plastic
consumer durables. It is projected that the plastic waste generation will reach the
will 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

10 | U n i q u e P l a s t i c s
West 156 383
East 75 86
North 338 158
South 111 139
Total 680 766

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 India

Foundation. One estimate is that about 20,000 microenterprises are engaged in
reprocessing and recovery of plastic waste in addition to 180,000 of various
sorting and washing units, 60% of which are unregistered .Delhi alone has
estimated 53,400 units and Delhi and Bombay together process over 50% of
India's waste plastics.

STRUCTURE OF THE PLASTICS INDUSTRY

The following pattern is likely to be general but there will be some variation from
country to country.

Raw Material Producers

These are chemical and petroleum companies who produce "virgin" plastic
(sometimes called resin or polymer) in huge quantities. The main influence they
have on the recycler is to fix prices and availability of virgin materials. Virgin
material is delivered in powder or pellet form, in plastic or paper sacks of around
20 kilos weight, in large cardboard drums that hold many times that quantity or
even by road tanker.

Compounders
These specialist companies, usually small, stock various polymers and provide
the manufacturers of plastic goods with technical advice and the most suitable
materials or mixtures for each individual need. The compounder is often the best
market for the recycler because he possesses sUperior technical knowledge and
has a large volume throughput of virgin material, in which small percentages of
reclaim will reduce cost without seriously affecting the quality required by the
molder.

Stockists
These warehouses stock polymers and compounds but neither manufacture
themselves, nor provide a compounding service. They may be agents or
subsidiaries of the producer companies or departments of companies concerned
with the supply of other materials such as chemical, rubber or paper. They may

11 | U n i q u e P l a s t i c s
be willing to stock reclaim alongside virgin materials, especially if these are in
short supply.

Specialist Manufacturers or Molders

These buy their raw materials from compounders. If they do their own
compounding, or if the material is used as produced and does not need
compounding, they may buy direct from stockists or producers. They are
specialists in plastics and do not perform other types of manufacturing. They may
be an attractive market to the recycler because they operate at high volume, but
rarely have as much flexibility to vary product quality as molders who know,
accurately, the final market for the product.

Other Manufacturers
Many companies are not plastics specialists but employ molding operations in
the manufacture of some other product. For example shoe and boot makers use
plastics extensively and may carry out the various plastics molding operations in
the same production sequence as the work in leather, canvas, rubber etc. Many
manufacturers use plastic packaging machinery at the end of a production
operation.

Fabricators
These firms cut and join sheet, rod or extrusion to manufacture a variety of
products. They have no opportunity to use reclaim. Machinery and Tool Makers
One other sector of the plastics industry justifies mention although not customers
for 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 is
likely to buy material.

Marketplace analysis

Various overseas players wish to explore the Indian market and invest in
opportunities thrown open by the country, projected to be world number 3 in
plastics consumption by 2010.As shown above the north region of India is
specialized 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

12 | U n i q u e P l a s t i c s
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 plastic
industry are scattered due to lack well known brand names. So our first priority
will be to accumulate the defused customers.

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

Apart from them there are few small companies which are giving compounding
services. They use to collect various types of plastics flakes along with the virgin
plastic and suggest customer (companies) in choosing appropriate plastic. An
Asha 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 the

market 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 materials
there are many companies in this region which are sUpplying PET. Indira
Plastics is one of them who is currently selling all types of plastics items. So in
case of business to business market they are our direct competitors. Kanpur is
plastic recycling city of UP. The direct threat we will also have is with the
companies operating in Kanpur. But as the distance between Kanpur and
Mumbai is 600km as well as the road is not in good condition, so it will not affect
much.

Marketing strategy

13 | U n i q u e P l a s t i c s
The Company has chosen to focus on the production of plastic packaging
materials from recycled post-consumer beverage bottles. we have identified a
significant available market in the eastern part of UP. All of our initial marketing
strategy will be to secure contracts in that segment, and after reaching full
planned 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 remain
in the forefront of our chosen marketplace.

Product/ service strategy

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

Unique Plastics will apply recycling and extrusion technology managed by

decades of industry specific expertise to create a competitive advantage for its
clients. These processes will produce clean, cost-efficient, recycled raw material
for 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 their
competitors.

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

Pricing strategy

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

In case of kitchenware and other household products we will provide combo

offers and discounts which a common customer expects.

Distribution strategy

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

14 | U n i q u e P l a s t i c s
from this we will hire street hawkers who will roam around the city and sell the
goods door to door.

PET bottles will be stored in warehouse which is close to the facility itself. The
sales people will directly contact to the companies which require these bottles for
packaging and look for the contracts. In city as stated above that we will have a
distribution 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 different
promotional strategies. For B2C business we will use flyers which will have full
detail of our product range, price, combo offers and discounts. These flyers will
circulate through the newspapers across whole city. For B2B business we will
promote through online social media and we will also develop our website
through 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 customers
into long term customers. Our sales strategy is totally based Upon the distribution
channel and the pricing strategies. We will have a distribution centre in the city
that will take care of sales of household and also sUpply products to the
wholesalers. We will also give the industrial customers a facility to order the
products 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 successful
relationships with their client over the years. Their customer base is currently
demanding product so they can expand Upon their current base. Of course, they
will expand that to new customers when product is available.

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

Marketing & sales forecast

The first month prior to the opening will be used to get the new office in order, set
Up appointment and begin marketing activities. In the first month we will focus on
the generating public visibility. The sales forecast is based on the assumption
that we will sell all of the highest volume PET bottles that we can produce.
15 | U n i q u e P l a s t i c s
This flake will be sold to other manufacturing companies. Recycling industry is
growing with 15-20% each year. So we can assume that we will grow with at
least 20%. There is a continuing strong demand for flake and extruded
products made from recycled PET.

Sales forecast
year 1 year 2 year 3 year 4
Annual
sales 1620000 2106000 2737800 3559140
Monthly
sales 135000 175500 228150 296595

PET Sales 94500 122850 159705 207617

Household
items 40500 52650 68445 88978.5

Development

The development of Unique plastics required to accomplish a series of action

and formalities. Since we are new in the market we kept our production is low
initially, 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 formalities
• Office/business setUp
Future offerings and expansion plan
•

Development strategy

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

• LDPE ( Low density polyethylene)

• HDPE ( High density polyethylene)

LDPE plastic is used in the production carry bags and other plastic sheets as well
as cling wrap, car covers, squeeze bottles, liners for tanks and ponds, moisture
barriers in construction. And HDPE plastics are used in production of freezer
bags, water pipes, wire and cable insulation, extrusion coating.

16 | U n i q u e P l a s t i c s
Our development strategy will base on timely completion of the establishment of
the business centre with low execution cost. Our strategy will focus not only the
current uninterrupted production of PVC and PET and acquisition of customer as
fast as we can, but we will also look for the future expansion plan and execution
strategy.

Our future development strategy will focus on to chart out a careful plan for the
future expansion and growth of our business. The development strategy will
address 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. As
we will grow and our earning will increase, we will produce more of PVC and
PET as well as expand in new area. We have a development strategy to
expand our facility size in order to meet the production size.

17 | U n i q u e P l a s t i c s
18 | U n i q u e P l a s t i c s
 Management

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

Ajay Kamble, Deepak GUpta, Arvind Yadav,Prabhakar Gawande and Maya

Sakhrani, a MBA graduate with specialization in Marketing and Shabana Khan
Finance is the owner and promoter of Unique Plastics. She has intensive
knowledge and vast understanding in financial areas like Risk and Return
management, Investment portfolio and Capital Budgeting, which undoubtedly will
be 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 promotional

strategies and sales skills will all be extremely helpful in taking the business a
long way and will prove intensely valuable to take Unique Plastics to flaring
heights.

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

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

Job description

Process No of employees Proficiency

Sorting 2 unskilled
Belt Conveyer 1 semiskilled
PET Separator 1 semiskilled
Packaging 4 unskilled

19 | U n i q u e P l a s t i c s
 Operations

The operations is defined as the process used to deliver your products and
service to the customer market place and also include manufacturing
transportation logistics travel and after sales services.

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

• Recycling and Production unit

• Warehouse

The facility is located in an area of 3000 sqft..Apart from these two units there
will be an office which will look for the perpetual sUpply of required raw material
and 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 contracted
with the sUppliers who can sUpply the raw material as quickly as we want. The
raw material contains post consumer beverage bottles and other plastic
materials. The bottles and other plastic material that can be recycled have a
specific 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 and
PVC cannot be recycled simultaneously due to their different properties. There
will 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 the
various shapes. Since there are a variety of product is being produced so the
preference will be given to that product whose demand is high. All the products
will not be produced each and every day. There will be different products which
will 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 the
warehouse according to the demand of raw material which different companies
need and other part will move for the molding in bottles.

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

20 | U n i q u e P l a s t i c s
Stages of Recycling and Production

The process of recycling of waste plastics into products of varying usefulness

involves the following essential steps:

• Sizing / Chipping
• Cleaning
•
• Segregation.
• Agglomerating / Colouring
• Extrusion / Palletisation
Fabrication into end Product.

Chipping:

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

During this process, attention is required to separate any powdery material

from 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 all
proportions.

The advanced technology of separating / segregating different types of waste

plastics involves ‘Floatation Process’. In this process the property of the
varying densities of different plastics is made use of for segregating different
types of plastics.

However in the Indian Context, this separation or segregation process, in

many cases, are done by manual process utilizing the availability of cheap
and expert labor force. In case the waste is contaminated with embedded
metals, proper method of separating the metals / other contaminants is
required.

21 | U n i q u e P l a s t i c s
 Cleaning:

The scale of cleaning depends on the type of waste. Whenever a cleaning

operation is involved, it is to be ensured that the water or any other cleaning
material used, should be discharged after ascertaining that the discharge
does not contain any objectionable substance. A proper Treatment Device
may have to be deployed – like a water treatment plant / effluent treatment
plant. For drying, a suitably designed drier is used.

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

Agglomerating / Colouring

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

Extrusion / Palletisation

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

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

Fabrication into end Product

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

Scope of operations

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

SUpply chain
22 | U n i q u e P l a s t i c s
In the city there are various small post consumer plastic bottle collectors. To
make a continuous sUpply of raw material we will have four sUppliers with us.
There will be one permanent sUpplier which will continuously sUpply the raw
material. In case of excess demand other sUppliers will be taken into
consideration. The transportation cost will be covered by sUpplier only. The
finished 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 the
finished household plastics as well as to the small shops.

Our average daily demand of raw material is 300kg and the lead time we will
keep lead time of 6hrs. We keep a safety stock of 50 kg. So the reorder point is
given 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+ reorder
point) of raw material in our inventory.

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

23 | U n i q u e P l a s t i c s
 Process flow chart

Gantt chart

24 | U n i q u e P l a s t i c s
As it is an assembly line the output of one stage is feeded to the input of next stage. The
whole process will run in series format. That is the reason why no parallel process is
mentioned in the gantt chart.

Facility Layout

25 | U n i q u e P l a s t i c s
Financials
26 | U n i q u e P l a s t i c s
The startUp cost of our business is as follows:

Start-Up
Requirements Amount
Start-Up Expenses
Legal
6,000
Stationery
500
Business Cards
500
Initial Mailing
100
Process Funding
400
Office Equipment
2,500
Total Start-Up Expenses
10,000

Start-Up Assets
Cash Required 1,00,000
Other Current Assets 0
Long-term Assets 33,30,000
Total Assets 34,30,000

Total Requirements 34,40,000

Income statement

27 | U n i q u e P l a s t i c s
The projected income is as shown below it shows that first year we will end
Up with loss but from second year we will start making profits.

YEAR
Particulars 1YEAR 2 YEAR 3 Year 4
16200 210600
net sales 000 2737800 3285360
cost of good 89100 115830
sales 00 1505790 1806948
72900
0 947700 1232010 1478412
gross margin
operating
expenses:
admin exp.
3000 3150 3308 3473
Advertisement
6000 7200 8640 10368
19200
0
Salaries 211200 232320 255552
96000
Transportation 105600 116160 127776
15000
Maintenance 15750 16538 17364
4800
Electricity 5040 5292 5557
10000
Telephone 11000 12100 13310
10000
Legal exp. 1000 1000 1000
20000
Insurance 20000 20000 20000
24000
Rent 26400 29040 31944
6000
other exp 6600 7260 7986
38680
0
34220
0 412940 451657 494330
30300
0
EBITDA 534760 780353 984082
39200
17555
less depreciation 0 272700 245430 220887
EBIT 262060 534923 763195
Less interest
paid
165061 153243 139926
28 | U n i q u e P l a s t i c s
 -
13635
EBT 0 96999 381680 623269
tax @ 30% 0 29100 114504 186981
-
13635
0
PAT 67899 267176 436288

Balance sheet

The projected balance sheet of four years is as follows:

Sources of Funds Year-1 Year-2 Year-3 Year-4

Capital
Owner's capital 1930000 1930000 1930000 1930000
Surplus -136350 -68451 130274 765287

Net worth 1793650 1861549 2060274 2695287

Long Term loan
Loan 1417302 1324116 1219111 1100789
Current Liabilities
Creditors 70500 56722 68066 81680

Total liabilities 3281452 3242387 3347451 3877756

Application of fund
Plant & M/C 3030000 2727000 2454300 2208870
Less depreciation 303000 272700 245430 220887
2727000 2454300 2208870 1987983
Land 300000 300000 300000 300000
Actual Fixed Asset 3027000 2754300 2508870 2287983
Current Assets:
Inventory 97200 315900 410670 821340
Bank 10000 40000 100000 100000

29 | U n i q u e P l a s t i c s
 Debtors 147252 132187 117911 232703
Advance to sUppliers’ 0 0 210000 335730
Investment 100000
Total Assets 3281452 3242387 3347451 3877756

Break Even Point

Amount in Amount in
VC Rs FC Rs
Admin 3000
Interest 175550
other exp 6000
transportatio advertisem
n ent
96000 6000
telephone Insurance
10000 20000
wages Salary
119250 192000
carriage
inward
238500 Rent 24000
maintenan
power 119250 ce 15000
depreciatio
414000 n
raw material Legal 303000
1003000 Total 10000
total 748550
contributio
n 617000

pv ratio 0.3808642

30 | U n i q u e P l a s t i c s
 1965398.70
BEP units 3 135000
BEP SALES 15 in months

1.21 In years

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

Appendix

Annuity table:

total loan pmt[1-1/(1-

amt.=i)^n]/i
n is number of
years

i is interest rate
150000 ###
loan amount 0 ###
###
interest rate
annually
###
0.12
pmt 21520.
= 21521 64

princi balancAnnual
month EMIInterest ple e O/Sinterest
2152 149347
1115000 9
6521
2152 148689
2114935 4
2152 6586 148024
3114869 2
2152 6652 147352
4114802 4
2152 146673
6718
5114735 8
31 | U n i q u e P l a s t i c s
6785
 2152 145988
6 1 14667 6853 5
2152 145296
1 3
7 14599 6922
2152 144597
1 2
8 2152 14530 6991 143891
1 1
9 2152 14460 7061 143178
1 0
10 2152 14389 7132 142457
1 7
2152 141730
11 1 14318 7203 2
2152 140995
12 1 14246 7275 4 175550
2152 140253
13 1 14173 7348 3
2152 139503
1 8
14 2152 14100 7421 138746
1 8
15 2152 14025 7495 137982
1 2
16 2152 13950 7570 137209
1 9
2152 136430
17 1 13875 7646 0
2152 135642
18 1 13798 7722 2
2152 134846
19 1 13721 7800 6
2152 134043
1 0
20 2152 13643 7878 133231
1 3
21 2152 13564 7956 132411
1 6
22 2152 13485 8036 131583
1 6
2152 130747
23 13404 8116
1 4
2152 129902
24 1 13323 8198 8 165061
2152 129049
25 1 13241 8279 8
2152 128188
1 2
26 13158 8362
2152 127318

27 13075 8446

28 12990 8530

29 12905 8616
30 12819 8702

32 | U n i q u e P l a s t i c s
 1 0
2152 126439
31 1 12732 8789 1
2152 125551
1 5
32 2152 12644 8877 124654
1 9
33 2152 12555 8965 123749
1 4
34 2152 12465 9055 122834
1 8
2152 121911
35 1 12375 9146 1
2152 120978
36 1 12283 9237 2 153243
2152 120035
37 1 12191 9330 9
2152 119084
1 2
38 12098 9423
2152 118122
1 9
39 2152 12004 9517 117152
1 1
40 2152 11908 9612 116171
1 6
2152 115181
41 11812 9708
1 2
2152 114181
42 1 11715 9805 0
2152 113170
43 1 11617 9903 7
2152 112150
1 4
44 11518 10003
2152 111119
1 8
45 2152 11418 10103 110078
1 9
46 2152 11317 10204 109027
1 7
47 2152 11215 10306 107965
1 9
2152 106893
48 1 11112 10409 5 139926
2152 105810
49 1 11008 10513 3
2152 104716
50 1 10903 10618 4
2152 103611
1 5
51 10797 10724

52 10689 10831

53 10581 10940

54 10472 11049
33 | U n i q u e P l a s t i c s
 2152 102495
55 1 10361 11159 5
2152 101368
1 4
56 10250 11271
2152 100230
1 0
57 2152 10137 11384
1
58 2152 10023 11498 990803
1
59 2152 9908 11613 979190
1
2152
60 1 9792 11729 967461 124920
2152
61 1 9675 11846 955615
2152
62 1 9556 11964 943651
2152
1
63 2152 9437 12084 931567
1
64 2152 9316 12205 919362
1
65 2152 9194 12327 907035
1
2152
66 1 9070 12450 894584
2152
67 1 8946 12575 882010
2152
68 1 8820 12701 869309
2152
1
69 2152 8693 12828 856481
1
70 2152 8565 12956 843526
1
71 2152 8435 13085 830440
1
2152
72 8304 13216 817224 108010
1
2152
73 1 8172 13348 803876
2152
74 1 8039 13482 790394
2152
1
75 7904 13617 776777
2152

76 7768 13753 763024

77 7630 13890 749134

78 7491 14029 735104

79 7351 14170 720935

34 | U n i q u e P l a s t i c s
 1
2152
80 1 7209 14311 706624
2152
1
81 2152 7066 14454 692169
1
82 2152 6922 14599 677570
1
83 2152 6776 14745 662825
1
2152
84 1 6628 14892 647933 88957
2152
85 1 6479 15041 632892
2152
86 1 6329 15192 617700
2152
1
87 6177 15344 602356
2152
1
88 2152 6024 15497 586859
1
89 2152 5869 15652 571207
1
2152
90 5712 15809 555398
1
2152
91 1 5554 15967 539432
2152
92 1 5394 16126 523305
2152
1
93 5233 16288 507018
2152
1
94 2152 5070 16450 490567
1
95 2152 4906 16615 473952
1
96 2152 4740 16781 457171 67486
1
2152
97 1 4572 16949 440222
2152
98 1 4402 17118 423104
2152
99 1 4231 17290 405814
2152
1
100 4058 17462 388352

101 3884 17637 370715

102 3707 17813 352901

103 3529 17992 334910

35 | U n i q u e P l a s t i c s
 2152
104 1 3349 18172 316738
2152
1
105 3167 18353 298385
2152
1
106 2152 2984 18537 279848
1
107 2152 2798 18722 261126
1
108 2152 2611 18909 242216 43293
1
2152 Bibliography
109 1 2422 19098 223118
2152
• Crisil
110 report
1 on plastic 2231
industry 19289 203829
• Plastic waste
2152 option for small scale recourse recovery by Inge
Lardinois
111 1 2038 19482 184346
2152
• Small scale
1 recycling of plastic by- Jon Vogler
112 2152 1843 19677 164669
1
113 2152 1647 19874 144795
1
114 2152 1448 20073 124722
1
2152
115 1 1247 20273 104449
2152
116 1 1044 20476 83973
2152
117 1 840 20681 63292
2152
1
118 633 20888 42404

119 424 21097 21308

120 213 21308 0 16031

36 | U n i q u e P l a s t i c s
37