1.GROUP 22ANKUR VERMABALVINDER SINGHSHIVAM GOYALPRATEEK DAHIYARAJAT

2. Objectives To set up a plastic recycling plant and to enable proper use of plastic To create awareness about plastic uses and harms To earn profits by selling recycled plastics Once we capture the market we will open branches in other area and towns. 3. Company Overview We will create a plant (actual facilities to be sharedwith the recycling unit) to manufacture extrudedplastic flakes (purified plastic). The extruded plastic isthen molded in the various products. We will produce two types of replay plastics PVC (Polyvinyl chloride) PET (Polyethyleneterephthylene) 4. Mission Statement Strive to provide the excellent plastic solution to thecustomers at competitive prices. Continually expand our range of products. Poised to service both large and small customers. 5. The ProductThe products we are producing are Cleaned and recycled plastic flakes of PET and bottles,recovered from post-consumer beverage bottles. (This PETwill work as raw material for packaging to various firms,not for the end user) Household finished plastic goods. We willmanufactureplastic tubes of various diameters, plastic kitchenware.(Forthe end user) PET flake will be sold to thermo formers (those who moldplastic sheets into usable products) primarily to be used toproduce high-visibility packaging. And also to the beveragecompanies for packaging. 6. Possible Obstacles Unavailable or scarce raw material stock for production Replay is confident that it has secured good availability of lowcost post-consumer PET bottles (feed stock) derived frompost-consumer beverage bottles. It may be possible that wewould not get desired raw material. Company may not meet environmental standards This environmentally-favorable venture provides for thedevelopment of technically feasible and economically viablesolutions to PET plastic beverage bottle recycling, as well asenvironmentally aware in-house re-use practices which filterand return nearly all of the process water to the productionlines 7. Industry Analysis 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 is one of the lowest in the world. The per capita consumption is just one fifth of world average that is 5kg. 8. Region wise and polymer wise turnover ofrecycling industry (in INR Crore)Region PVC PET West156383 East 7586 North 338158 South 111139 Total 680766 9. STRUCTURE OF THE PLASTICSINDUSTRY Raw Material Producers These are chemical and petroleum companies who produce "virgin" plastic (sometimes called resin or polymer) in huge quantities. Compounders These specialist companies, usually small, stock various polymers and provide the manufacturersof plastic goods with technical advice and the most suitable materials or mixtures for eachindividual need. Stockists These warehouses stock polymers and compounds but neither manufacture themselves, norprovide a compounding service. 10. STRUCTURE OF THE PLASTICSINDUSTRY Specialist Manufacturers or Molders These buy their raw materials from compounders. Other Manufacturers Many companies are not plastics specialists but employ molding operations in the manufactureof some other product. Fabricators These firms cut and join sheet, rod or extrusion to manufacture a variety of products. 11. 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. CUSTOMER ANALYSIS The customers of the plastic industry are scattered dueto lack well known brand names. So our first prioritywill be to accumulate the defused customers. Apart from them there are few small companies thatare giving compounding services. They use to collectvarious types of plastics flakes along with the virginplastic and suggest customer (companies) in choosingappropriate plastic. An Asha enterprise is onecompounder whom we will sell our plastics. 13. COMPETITOR ANALYSIS As we are also not alone as a supplier of PET to thecompanies as raw materials there are many companiesin this region that are supplying PET. Indira Plastics isone of them who is currently selling all types ofplastics items. So in case of business-to-businessmarket they are our direct competitors. Kanpur isplastic recycling city of UP. The direct threat we willalso have is with the companies operating in Kanpur.But as the distance between Kanpur and Allahabad is200km as well as the road is not in good condition, soit will not affect much. 14. MARKETING STRATEGY 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. 15. PRODUCT/ SERVICE STRATEGY Hind Plastics will apply recycling and extrusion technologymanaged by decades of industry specific expertise to createa competitive advantage for its clients. These processes willproduce clean, cost-efficient, recycled raw material formanufacturers of thermoform, laminate and other highvalue-added products, and high strength packagingstrapping for shippers of large products and pallets,thereby reducing costs and creating a clear pricing edgeamong their competitors. Plastic bags and plastic sheets are now in high demand.And this demand is driven by continuously increasingpromotional activities. 16. PRICING STRATEGY The pricing strategy we will use is penetration pricing.The price of all household plastic goods we will sellwill be lower than the market price. Also for the PETflakes and bottles the price will be lower than thecompetitors. A lower price enables me to get contractsof PET bottles and sheets from various companies. In case of kitchenware and other household productswe will provide combo offers and discounts which acommon customer expects. 17. DISTRIBUTION STRATEGY We will have a distribution center in the Allahabad city that 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 from this we will hire street hawkers who will roam around the city and sell the goods door to door. 18. ADVERTISING & PROMOTIONSTRATEGY As 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 that 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 that are available for companies as well as end user. 19. SALES STRATEGY 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. 20. MARKETING & SALES FORECAST 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. Sales forecastYear 1Year 2Year 3Year 4Annual sales1620000 2106000 2737800 3559140 Monthly sales135000175500228150296595 PET Sales94500 122850159705207617 Household items40500 52650 68445 88978.5 21. DEVELOPMENT The development of Hind plastics requiredaccomplishing a series of action and formalities. Sincewe are new in the market we kept our production islow initially, as demand will increase the productionwill be enhanced respectively. The developmentprocess involves following steps: Legal formalities Office/business setup Future offerings and expansion plan 22. Development strategy In future we are looking for the production of a varietyof plastic. These plastics will be LDPE (Low density polyethylene) HDPE (High density polyethylene) 23. Development strategy Our development strategy will base on timely completionof the establishment of the business centre with lowexecution cost. Our strategy will focus not only the currentuninterrupted production of PVC and PET and acquisitionof customer as fast as we can, but we will also look for thefuture expansion plan and execution strategy. Our future development strategy will focus on to chart out acareful plan for the future expansion and growth of ourbusiness. The development strategy will address followingissue: How will we expand our services? Which are the new areas we will include to provide ourservices? What will be the format of the business 24. Management Promoters and six supporting staff will manage thecompany. There will be five promoters of HindPlastics. Along with promoter five more employees will workfor the accomplishment of companies objective. 25. Job descriptionProcess Noof ProficiencyemployeesSorting 2UnskilledBelt Conveyer 1SemiskilledPET Separator 1SemiskilledPackaging 4Unskilled 26. OPERATIONS The facility is located at outside the city. Facility is divided in twoparts Recycling and Production unit Warehouse The facility is located in an area of 3000 sqft.Apart from thesetwo units there will be an office that will look for the perpetualsupply of required raw material and also take care about theoutbound logistics. The production capacity is 80kg/hr. The operations will be based upon JIT i.e. just in time. We willhave contracted with the suppliers who can supply the rawmaterial as quickly as we want. The raw material contains postconsumer beverage bottles and other plastic materials. Thebottles and other plastic material that can be recycled have aspecific sign from which it can be identified that it can berecycled or not. 27. Stages of Recycling andProduction Sizing / Chipping Cleaning Segregation. Agglomerating / Colouring Extrusion / Palletisation Fabrication into end Product. 28. 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. 29. Supply chain 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. 30. Our average daily demand of raw material is 300kg andthe lead time we will keep lead time of 6hrs.We keep asafety stock of 50 kg. So the reorder point is given by Reorder point= average daily uses x lead time + safetystock Reorder point = 300 X .25day + 50 = 125 kg. So at each and everyday we will have minimum of125kg (safety stock+ reorder point) of raw material inour inventory. 31. FACILITY LAYOUT 32. FinancialsStart-upRequirementsAmountStart-up ExpensesLegal 6,000Stationery500Business Cards500Initial Mailing 100Process Funding 400Office Equipment2,500Total Start-up Expenses 10,000Start-up AssetsCash Required 1,00,000Other Current Assets0Long-term Assets33,30,000Total Assets34,30,000Total Requirements34,40,000 33. BALANCE SHEET Sources of FundsYear-1 Year-2Year-3Year-4 Capital Owners capital 193000019300001930000 1930000 Surplus -136350-68451 130274765287 Net worth 179365018615492060274 2695287 Long Term loan Loan141730213241161219111 1100789 Current Liabilities Creditors 705005672268066 81680 Total liabilities 328145232423873347451 3877756 Application of fund Plant & M/C 303000027270002454300 2208870 Less depreciation 303000 272700 245430220887 272700024543002208870 1987983 Land300000 300000 300000300000 Actual Fixed Asset302700027543002508870 2287983 Current Assets: Inventory 97200315900 410670821340 Bank1000040000100000100000 Debtors 147252 132187 117911232703 Advance to suppliers 00210000335730 Investment100000 Total Assets328145232423873347451 3877756 34. BREAK EVEN POINTVC Amount in Rs FCAmount in RsAdmin 3000otherexp6000Interest175550transportation96000 advertisement 6000telephone 10000 Insurance 20000wages 119250Salary192000carriage inward 238500Rent24000power 119250maintenance 15000raw material414000depreciation303000Legal 10000total 1003000 Total 748550contribution617000pv ratio0.3808642BEP units 1965398.703 135000BEP SALES 15in months1.21In years 35. Benefits of recycling Reduce Material ConsumptionOne of the largest benefits of recycling is the ability to preserve more virgin materials forlater use. While some materials have a limited amount of times that they can be recycled,many others can theoretically be recycled an infinite number of times. This is true of mostmetals, particularly aluminum and steel. Reduce Energy ConsumptionOften the energy required to recycle materials is far less than the energy required to make aproduct out of new materials. Recycled aluminum, for example, saves 95 percent of theamount of energy it takes to create it from virgin materials. Other materials save amountsthat are more modest. Recycled glass, for example, only saves about 40 percent of the initialenergy investment. Reduce the Size of LandfillsLandfill size can be drastically reduced with an aggressive recycling program. Reducinglandfill size not only leaves more land for other uses, but also minimizes the amount ofenergy required to remove and eventually relocate trash.When considering the size of landfills, also take into account the wasted area around thelandfill. Land adjacent to landfills is often only for industrial sites. Air pollution makes iteven less likely that nearby land can be used for other purposes. 36. Reduce PollutionWaste often creates water pollution by leaching chemicals into thesoil. While some of these chemicals are filtered out by the soil,other pollutants go on to damage ground water sources. Airpollution is also a great concern. Methane and other gases releasedin landfills contribute to global warming problems as well as airquality concerns. Creates JobsRecycling is more labor intensive than landfill management,requiring more workers to sort and process recyclable waste. Thiscan revitalize rural areas where landfills are often located, bringingneeded jobs to the region. These manual skill jobs are particularlybeneficial in areas that were once manufacturing centers. 37. Thank you