M&N GREENLIFE

BUSINESS PLAN
By
Bollu Vinay Kumar

19
 Business Overview

According to research, recycling helps save 66% of energy that would have been
lost if manufacturing plastic bottles from the scratch. This is the reason mist
manufacturing companies are opting for pet recycled bottles in use to produce
drinks, toys, bags amongst other things.

According to IBIS World, the recycling industry has a net worth of $5 billion and
there has been a 5.5% growth from between 2011 to 2016, with the projection
estimated to be better in the next five years. There are about 1,500 recycling
facilities in the India, employing more than 23,000 people.

This industry is playing a vital role in the society especially as regards the
future of the earth. This is because according to facts, more than 1 trillion tons
of wastes are being generated by industries and households. The pet bottle
recycling market is on a steady rate and is being projected to being steadier in
the future. According to the Environmental Protection Agency (EPA), 3.8
barrels of crude oil is conserved when one ton of plastic is recycled.

Globally, the overall recycling industry is worth $410 billion and markets are
being started in developing worlds such as Asia, Latin America and Africa,
especially as governments have begun to be interested in what happens to the
earth and have started encouraging recycling ventures. The recycling market is
also booming in other developed worlds as North America has the largest
market share in the recycling industry with the United States having the largest
share market.

The plastic bottle recycling market is classified according to the type of

plastic material such as Polyethylene Terephthalate (PET), high-density
polyethylene (HDPE) and Polypropylene (PP) with PET being the most
recycled plastic material.

2|Page
The reasons why the recycling industry is gaining so much information is due
to the fact that it is in line with the objectives environmentalists and various
responsible governments of nations in ensuring that there is less greenhouse
gas emissions and degradation.

Bottles thrown away usually becomes buried in the earth and are shielded from
sunlight therefore making decomposition impossible which is why recycling
companies are being supported by the governments.

Pet Bottle Recycling Business Plan – Executive Summary

M&N Eco Green Life pet bottle recycling business is being established, licensed
and based in Andhra Pradesh, India Our aim of establishing the company is not to
only make profit but to ensure that we contribute our own quota to the
environment and by extension the earth.

Our proposed location here in Krishna district, Andhra Pradesh will not only
strategic but is also highly suitable for the kind of business we intend to run, as
we are on the outskirts of town that is also easily accessible to our staff and
clients. The intention of Green Life pet bottle recycling company is to recycle pet
bottles and provide raw materials for manufacturing and production companies
that need pet bottles.

Our goal is to provide quality recycled pet bottles that are eco-friendly and in this
effort be the preferred pet bottle recycling business for all our clients not only here
in Andhra Pradesh but all over the India as well.

We take our business structure quite seriously ad to this effect we intend to hire
employees who are not only competent but have the right knowledge and
experience necessary to ensure that we attain our desired goals and objectives.

We will ensure that our employees undergo continuous trainings that will not only
enhance their skills but improve productivity for the company. We will also ensure
that our employees have the best welfare packages comparable to other start-
ups such as ours in the industry.

3|Page
We know how important having an excellent customer care is and how beneficial
it is to the organization. Already, we are being recognized for our standard and
proactive customer care services and yet we intend to do more in ensuring that
we maintain our standards and keep being the best at what we do.

Finally, the business is owned and run by Mr. Bollu Vinay Kumar is a Madras
University Graduate and has over 20 years of managerial experience.

Our Products and Services

At Green Life pet bottle recycling company, we intend to deal in various

products and services in addition to our core service, which is recycling
quality pet bottles for sale in an environmentally friendly environment.

Our aim of establishing this business is to ensure that we create a source of

income that can be multiplied into several streams in order to boost the bottom
line of our company. We also intend to offer consultancy services and trainings
and also be distributors for excess bottles to other recycling companies.

All our sources of income are all under the permissible laws of the India. Listed
below are some of the products and services we intend to offer;

 Sale of cleaned and recycled pet bottles

 Sale of extruded roll stock sheet

 Consultancy services

4|Page
 Trainings

Our Vision Statement

Our vision is to be known for our environmentally friendly methods in

recycling our pet bottles all over the India, and to generate enough revenue
in order to ensure that our investors make a significant return on their
investment.

Our Mission Statement

In order to achieve this vision, we intend to ensure that we not only maintain a
conducive and creative work environment but that we also hire competent and
experienced employees to ensure that we attain our desired goals and
objectives.

Our Business Structure

Due to the standard of pet bottle recycling business we intend running, we know
how important it is that we get our business structure right from the beginning in
order to be able to reach our desired goals and objectives with as few hitches as
possible.

It is for this aim that we intend to ensure that we source for and get only
competent and hardworking employees into the different positions in our
company to handle the various responsibilities that would be assigned.

At Green Life pet bottle recycling company, we intend to hire those with the
experience and commitment required to help us achieve our vision. We know that
getting the best would require committing financial resources and we are ready to
do this. Our pay packages for our employees are amongst the best in similar
start-ups such as our across the industry in the whole country and this is due to
the fact that we take our business very seriously.

Asides from being paid well, we also intend to ensure that our employees work
in an environment that is not only free, conducive and easily accessible but
one that is also eco-friendly. We also intend to ensure that

5|Page
our employees undergo various trainings at specific points in time in order to
enhance their productivity and their skills as well.

Therefore the business structure we intend to build at Green Life pet bottle
recycling company is;

Chairman President (Chief executive Officer)

Vice President (Chief Operating Officer) Chief
Financial Officer
General and Administrative Manager
Human Resources Manager Production
Manager
Plant Manager
Purchasing Manager
Maintenance Team
Sales and Marketing Executives
Customer Service Executives
Security Guard
Truck Drivers Cleaner

Roles and Responsibilities

President (Chief executive Offcer)

Develops strategies that would provide direction for the company

Communicates and ensures that the company’s overall visions and
missions are well implemented
Drafts and reviews the overall budget for the organization

Vice President (Chief Operating Offcer)

Meets with high level clients on behalf of the organization

6|Page
 Ensures that the recycling plant operates at best standards
Makes important decisions on behalf of the company

Chief Financial Offcer

Prepares financial budgets, reports and statements on behalf of Green Life

pet bottle recycling company
Ensures that the organization is tax compliant Carries
out financial forecasting and risks analysis

General and Administrative Manager

Ensures that the administrative tasks for organization runs smoothly

Ensures that offce supplies are checked and re-stocked
Ensures that the policies of the organization are adequately
implemented

Human Resources Manager

Sources for and recruits new and competent employees on behalf of the
organization
Responsible for staff training and performance appraisals
Responsible for staff welfare packages

Production Manager

Ensures that the materials are produced and recycled according to

organization’s standard
Ensures that the quality is maintained at all times
Ensures that production quota is being met

Plant Manager

Responsible for ensuring that the recycling machines to be used are

correctly installed

7|Page
 Ensures that the operations of the recycling machines are within its
operating standard for optimum effciency
Carries out light maintenance on the recycling machines

Purchasing Manager

Sources for materials to be used in recycling the pet bottles

Ensures that the vendors and distributors are reliable and ensures that back-
up vendors are in place
Drafts, negotiate and review the contract with distributors and vendors on
behalf of the organization

Maintenance Team

Carries out maintenance tasks on the recycling machines and other

equipment
Oversees the correct installations of the recycling machines
Install new parts for defective recycling machines

Sales and Marketing Executives

Conducts continual market research in order to attract new customers for

the organization whilst retaining the old ones
Develops new plans for increasing sales and ensuring that the sales and
marketing targets are met and exceeded
Use customers feedback to determine effective marketing policies

Customer Service Executives

Attends to clients’ enquiries in a prompt and polite manner

Stays abreast of current information and industry trends so as to pass
along accurate information to clients
Keep an accurate database of customers and reviews on a continuous
basis on behalf of the company

8|Page
Security Guard

Ensures that the premises and property of the organization are secured at all
times
Monitors the surveillance cameras daily
Scrutinizes incoming and outgoing staff and clients in and out of the
organization

Truck Drivers

Ensure that raw and recycled materials are correctly loaded and
offoaded
Ensure that the routes are planned and the safest and fastest routes are
picked to deliver and pick up materials
Carries out inspection on the trucks and effects light repairs and
maintenance where necessary

Cleaner

Ensures that the organizational premises is kept clean and maintained at all
times
Ensures that cleaning supplies are always in stock
Carries out any other duties as might be determined by the Human
Resources Manager

Pet Bottle Recycling Business Plan – SWOT Analysis

Due to our high degree for excellence and quality in starting and running our pet
bottle recycling business, we have engaged the services of a reputable business
consulting business here in Andhra Pradesh that understands the market and
industry to help us take a critical look at our business concept and determine
what it would take for us to be able to run the business successfully, and if what
we had was good enough to start off the business, compete favorably, generate
revenue and eventually profit and also take it to our intended desired goals and
objectives.

9|Page
 In taking stock of our business concept, the SWOT (Strengths, Weaknesses,
Opportunities and Threats) analysis were used in order to help us better
understand what we were likely to face during the course of starting and running
the business successfully.

Below is a breakdown of the analysis that was conducted on behalf of

Green Life Bottle Recycling Company here in – Andhra Pradesh;

Strengths

Our strength lies in the fact that we have been able to secure a supply
contract with major clients in our target market. We have laid down policies
and strategies to ensure that we meet with the demand for our products
even if it were to increase at a short notice.

Also, we have an excellent business structure where competent and experienced

employees who understand the business and have industry knowledge on how
to grow the business have been sourced for and recruited by us. Also, we have
an excellent and strong management team who all collectively have an extensive
and industry specific experience and who are also attuned to the vision of our
company.

Finally, our President and Vice President, has over 40 years experience in the
plastic converting and manufacturing industry and have worked in different
managerial and technical positions and will therefore bring forth their
experiences in order to ensure the business attains its goals and objectives.

Weaknesses

The weaknesses we are likely to face in this market is that of saturation which
might lead to there being less markets for our products, we have however
conducted market research for our products, and have identified several
markets for our products. Another weakness is in the arrival of a major
competitor in our location, we are however prepared to handle this as we have
laid down commitments with our identified target markets.

10 | P a g e
 Opportunities

There are several opportunities that abound for us in this industry as our nearness
to the target market means we will be able to sell all that we produce. Also,
statistics for this industry has shown that we are poised to have a huge share of
the market once we have perfected our publicity and advertising strategies.

Threats

Every business faces threats at every point in time, either during start-up or while
the business is in operation; and so we at Green Life have gone through the
threats we are likely to face starting this business, and have laid out proactive
measures to handle these threats.

The threats we are likely to face are scarce raw material for production, however
we have created back-up sources for when we encounter scarcity. Another threat
is likely to stem from using unreliable technology in cleaning and recycling the
pet bottles, however we intend to stick to technology that has been commercially
proven.

Pet Bottle Recycling Business Plan – MARKET ANALYSIS

Market Trends

The bottle recycling business is one that serves a dual purpose because not
only is it a lucrative business, it is also a business that is regarded as
environmentally friendly. The business is also one that receives support from the
government as well as other agencies that are eco-friendly. This is why any
serious entrepreneur going into the business can begin to rake in profit from
within 3 – 6 months.

One important factor in this business is having to source for the raw materials and
more often than not, recycling companies usually set up various bottle collection
points, whilst also sourcing for other means in which to get the raw materials in
the case, enough hasn’t been collected at a certain period.

This business is also one that inculcates education as consumers have to be

taught on the benefits of recycling. Asides from individual consumers,

11 | P a g e
 manufacturing companies have also begun to see the benefits of using recycled
materials for the production of their company as opposed to using raw materials.

These two reasons are why the recycling industry has boomed and is growing
on a continual basis, and becoming more lucrative for innovative entrepreneurs
especially those that have devised a strategy to gain a huge share of the
market.

Lastly, improving technologies has played a huge role in this industry as

materials are not only recycled faster and more effciently, but also have more
quality to them. Also, the use of the internet has increased awareness and
enlightenment for recycled products. Also, ensuring that the recycled materials
are produced in an environmentally friendly environment and state has been
made possible by technology.

Our Target Market

Before starting off our pet bottle recycling business, we conducted a market
research so as to be able to be certain of the type of customers we are to expect
from our target market and what they expect from us here at Green Life pet bottle
recycling company. The market research was conducted by a reputable business
consultant here in Andhra Pradesh and took several factors into consideration.

The result we got from the market research has helped us to draft suitable
strategies based on our strategic location and edge in the industry that will allow
us gain a huge share of the market. From the result, we found that we were in
business to sell our products and services to the following groups of clients;

Chemical manufacturing companies

Manufacturers and distributors
Food and drinks processing and packaging companies
Other allied recycling existing businesses and start-ups

Our Competitive Advantage

12 | P a g e
 Our vision whilst starting Green Life pet bottle recycling business is so to
ensure that we recycle quality pet bottles under an environmentally friendly
environment and be known all over the India for our quality production and
sound business structure. This vision has already given us the required
competitive edge we need against our competitors in the industry.

First off, we intend to ensure that we are guided by the best practices in the
industry and that our recycling plant is built in accordance with modern
technology befitting for these times.

Another competitive advantage is in hiring competent employees who are

certified and highly trained in their various fields and who also understand the
business and by large the industry, to fill in the different positions that would be
required by the company.

Our employees are not only going to be working in a conducive and

environmentally safe environment but will also be well paid as their welfare
package is the best across similar start-ups in this category in the whole of the
India.

Finally, we are running the best customer care service as can be found in the
industry. Our customer care executives are well trained to positively project the
image of the company and are also knowledgeable as regards industry trends.

Pet Bottle Recycling Business Plan – SALES AND MARKETING

STRATEGY

Sources of Income

Green Life Recycling Company is an establishment whose aim is to generate

revenue and make enough profit to not only boost the bottom line and sustain the
business for eventual growth and expansion, but also allow us compete favorably
with our competitors in the same location and industry.

Asides, our core service, we intend to engage in other services that will
generate more income for the company. Therefore, Green Life Recycling

13 | P a g e
 Company intends to generate income through the sales of these products and
offering of these services;

Sale of cleaned and recycled pet bottles Sale

of extruded roll stock sheet
Sale of extruded strapping
Distributors of post consumer beverage bottles
Consultancy services
Trainings

Sales Forecast

The bottle recycling business is such that would always provide raw materials for
production and manufacturing companies, which means that there will always be
demand for the products.

Our strategic position in Andhra Pradesh has us quite optimistic of the fact that
we will reach our intended target generation goals on time during our first year of
business and then grow the business from that point.

Our critical evaluation of this industry has led us into analyzing our
chances, based on similar start-ups in our location here in – Andhra
Pradesh as well as some assumptions during the time of research and
allowing us to come up with the following sales forecast.

Therefore below are the sales projections for Green Life pet bottle recycling
business;

First Fiscal Year-:

INR 4,000,000
Second Fiscal Year-:
INR 7,000,000
Third Fiscal Year-:
INR 10,000,000

N.B: It should be noted that the above sales projections were done based on the
obtainable facts in the industry, and certain assumptions. A change in the
assumptions will mean that the figures will either decrease or increase.

14 | P a g e
 Marketing Strategy and Sales Strategy

Having the right sales and marketing strategies is very important to us especially
as we marketing is the sole means of increasing awareness for our brand that
would result in generating revenue for Green Life pet bottle recycling company.
Therefore we intend to conduct a marketing research before drafting our
marketing strategies so that we could draft the right strategies that would be
effective for our business in the long and short run.

Our aim is to ensure that we deliver on our corporate goals and achieve our
intended vision, which is why our marketing strategies would not only allow us
penetrate the market but also allow us gain a huge share of the market here in –
Andhra Pradesh as well as all around the India.

We have hired reputable and experienced marketing consultants based here in –

Andhra Pradesh, who understand the industry and know the right marketing
strategies that would suit our business.

Our sales and marketing team are not only the best the industry has to offer with
several years of professional experience but have also been empowered to
ensure that all marketing strategies are in line with our corporate goals and will
further promote our brand positively to our customers.

Therefore some of the marketing and sales strategies we intend to adopt at

Green Life pt bottle recycling company are;

Send a formal letter of introduction introducing potential clients and major

stakeholders in the industry of our pet bottle recycling company
Engage in direct marketing
Place advertisements for our business in local and national newspapers, on
online forums and websites, as well as on radio and television stations
Ensure that our business is listed in offine and online directories
Use our social media platforms – Facebook, Twitter, LinkedIn and
Google Plus to vigorously market our business

15 | P a g e
 Attend relevant events, seminars and trade fairs and use the
opportunity to network with relevant and potential customers.

Pet Bottle Recycling Business Plan – Publicity and Advertising Strategy

The pet bottle recycling business is one that needs a lot of intense publicity and
advertisement in order to get the attention of the target market and get the
required customers we would need for our business. Publicity is also necessary
in order for Green Life pet bottle recycling company to favorably compete with
other leading brands here in – Andhra Pradesh and in the whole of the India as
well.

We intend to deploy a publicity mix in getting the interest of our target market
and due to this have employed the services of a reputable branding consultant to
help us draft publicity strategies that would be highly beneficial to us here in –
Andhra Pradesh and also when we intend to venture into other cities in the
India. The publicity strategies will also help to promote and positively
communicate our brand to the target market.

Therefore the platforms we intend leveraging on to promote our Green Life pet
bottle recycling business here in – Andhra Pradesh are;

Install our billboards in strategic locations here in as well as all around

Memphis
Ensure that we place adverts via newspapers both local and national,
magazines, online forums and in radio and television stations
Engage in and sponsor relevant programs in the community where our plant
is located
Use our website and social media platforms such as Facebook, LinkedIn,
Google Plus, and Twitter in order to promote our brand
Create customized clothes for all our staffs and also ensure that our
trucks are well branded with our unique logos and color
Send out press releases monthly on the benefits of recycling and its
impact on the environment

16 | P a g e
 Our Pricing Strategy

Setting a price on our recycled pet bottles will depend on certain factors such
as the size of the bottle, how we sourced for the bottles, what our competitors
are offering and the final packaging. Other factors to be considered are our
operating expenses, our overheads as well as freight and shipping costs.
This means that we would need to employ a detailed strategy in setting the
right price for our recycled pet bottles.

Due to the fact that we are relatively new to the industry, we know how important
it is to ensure that our target market is aware of our existence and to this effect;
we intend to lower the prices for our recycled pet bottle sin the first three months
of operation so as to increase our customer base and gain a huge share of the
target market here in – Andhra Pradesh as well as in the India. This strategy
might lower our profit margin but would be worth it for the company in the long
run.

Payment Options

In setting up a payment option for our different clients, we are aware of the fact
that our different customers in all over the country would prefer to have as many
options as possible and so we have come up with different payment options that
would suit them.

Below are the payments options we intend to make available at Green Life pet
bottle recycling company;

Cash payment
Payment via check
Payment via bank draft
Payment via Point of Sale (POS) Machine
Payment via online payment portal

The above payment platform options were carefully chosen for us by our bank
and we have been told that customers will experience no hitches whilst using
these platforms.

17 | P a g e
 Start – Up Expenditure (Budget)

Starting a standard pet bottle recycling business can be capital intensive as the
bulk of the capital goes into procuring machines and equipment for use as well
as paying the salaries of employees and utility bills for a certain period of time.
We also hope to acquire a truck to help in delivering finished products and
brining in raw materials.

Therefore, the key areas where we intend to spend our start-up capital on are;

Total fee for registering the business in the India –

INR 75000
Accounting (startup expenses and software) and legal (permits and
licenses) – INR 50000
Cost of hiring business consultants – INR 150000
Insurance (general liability, property insurance, workers’ compensation)
– INR 100000
Cost of leasing and renovating a facility for manufacturing and
administrative use for at least a year – INR 2000000
Operational cost for the first six months (employees’ salaries and
payment of bills) – INR 1500000
Other start-up expenses – stationery and utility deposits – INR 200000
Cost of start-up inventory – (machines, lab equipment and local
engineering) – INR 800000
Marketing promotion expenses (promotion for grand opening ceremony and
general marketing promotion activities) – INR 200000
Storage hardware (shelves, bins and racks) – 200000
Cost of launching a website – INR 50,000

Miscellaneous – INR 200,000

18 | P a g e
 From the above breakdown, we would need an estimate of INR 7,225,000 in
order to successfully start-up and run a pet bottle recycling business here in –
Andhra Pradesh. It should be noted that the bulk of the capital go into leasing a
facility, procuring recycling equipment and machinery, payment of employees’
salaries and utility bills for at least 6 months.

Generating Funding / Startup Capital for Green Life Pet Bottle

Recycling Business

Green Life pet bottle recycling company is a business that is owned and operated
by Mr. Bollu Vinay Kumar. The gentleman have vast experience in manufacturing
companies such as this and have therefore carefully chosen financing options
that they would need to get the required start-up capital to start the pet bottle
recycling business.

The areas where they therefore intend to generate start-up capital from are;

Generate part of the start-up capital from sale of personal stocks and
properties
Apply for loan from the bank
Seek for loan from private investors

N.B: We were able to generate the sum of 1,500,000 from the sale of our
personal stocks and properties. We have plans to apply for a loan from bank for
the sum of INR 6,000,000 at the best possible interest rate to be repaid in 7
years.

19 | P a g e
 Pet Bottle Recycling Business Plan – Sustainability and Expansion
Strategy

In order for us to remain in business for a long time, we intend to deploy several
factors such as ensuring that we build a solid business structure via employing
competent employees, engage in effective marketing, and also ensure we retain
a huge share of our existing customers. These major factors will ensure that we
remain in business for as long as we want.

Having a solid business structure will enable us start and run our business with
as few hitches as possible, which is why we take our business structure very
seriously. We intend to hire only competent employees with professional
experience and well committed to our business goals and objectives, because
we know that the commitment and expertise will ensure that the company gets
to the intended level, in addition to the trainings which we will give them to
enhance their productivity and skill set.

Green Life pet bottle recycling company knows how important and effective the
right marketing strategies are, and so we intend to deploy marketing strategies
that would effectively penetrate the target market and gain a huge share of the
market, while also positively communicating our brand. We also intend to
continually conduct market researches that would allow us get an idea of new
target markets for our business.

Finally, knowing how important our customer base is, we intend to deploy
strategies aimed at retaining a huge number of our customers whilst also
effectively seeking out new ones to boost our bottom line. Ensuring that these
three factors are in place will go a long way into building our business and
sustaining it effortlessly.

20 | P a g e