Professional Documents
Culture Documents
ENTREPRENEURSHIP MGT-602
PROJECT – BUSINESS PLAN
RECYCLING PLASTIC
PLAN
Mc070400829
VIRTUAL UNIVERSITY OF PAKISTAN
MA JINNAH CAMPUS
DEFENCE ROAD,
OFF. RAIWIND ROAD, LAHORE
UAN: 042-111-880-880
FAX: 042-9202174
Our Statement of Confidentiality
The undersigned reader acknowledged that the information provided by the MC070400829
in this business plan is confidential, therefore , reader agrees not to disclose it without the
express written permission of MC070400829
MC070400829
Signature
Description of Venture……………………………………………………………3.0
Product…………………………………………..3.1
Services…………………………………………3.2
Size of business…………………………………3.3
Office equipment and personnel………………..3.4
Background of entrepreneurs…………………..3.5.
Marketing Plan…………………………………………………………………..4.0
Form of ownership……………………………..4.1
Identification of partners………………………4.2
Authority of principals…………………………4.3
Management team backgrounds……………….4.4
Roles and responsibilities
of members of organization……………………4.5
Assessment of Risk……………………………………………………………..6.0
Evaluate weakness of business ………………...6.1
New technologies………………………………6.2
Financial Plan……………………………………………………………………7.0
Sources of funds………………………………..7.1
Performa income statement……………………7.2
Performa balance sheet…………………………7.3
Cash flow projections…………………………..7.4
Appendix………………………………………………………………………..8.0
1.0 EXECUTIVE SUMMARY
Replay Plastics will capitalize on the opportunities in the recycled resin and
packaging markets through two main divisions: a Recycling Division and a
Packaging Division.
The plastic is then dried and extruded into high quality recycled granules on the
Company’s Double vented Japanese extruders. And in turn produced a large variety of
value added products.
MC070400829 is earth friendly and it provides a clean environment to this part of the world.
We firmly believe that it is everyone’s responsibility to recycle everything they can because
they can make the difference. We are trying so hard to stem the tide of pollution that is
overwhelming our beautiful planet. We encourage you to take a part in it.
2.0 INDUSTRY ANALYSIS
The main key to success is that we will buy all kind of industrial/ post consumer plastic
materials and scraps in various forms, like baled/fluff/sheet/powder/rolls/others. Some of the
regular materials are listed below. If you have additional material related in plastic. We can
handle that too.
Plastics' competitive edge rests with its proximity to its target markets, as well as the industry
knowledge, reputation and contacts of its senior management. Their many years of direct
experience have led them to identify this unique opportunity and put together the technology
and sources to take advantage of it. Their reputation in the specific market segment will
result in the achievement of long-term commitments for our production
We have already surpassed the following characteristics through strategic planning and
forecasting, which will deal the most common competitive issues in our future run. Such
issues are
Patents— We have already applied for our product under Trade Mark and Patent Law
High start-up costs—In many cases, this barrier is the most daunting one for small
businesses, we have a huge investors and we encourage more to promote us.
Knowledge—Lack of technical, manufacturing, marketing, or engineering expertise
apart from other competitors , we will resolve it as top level management of our
company is high skill and experiences.
Market saturation—It is a basic reality that it is more difficult to carve out a niche in a
crowded market than it is to establish a presence in a market marked by relatively
light competition. We are not going to sell in open market. But our plan is to provide
distributors the chance to earn themselves and earn us revenue as target planning.
We have already selected certain product to out market segmented audience. Such services
are
Consulting,
Size Reduction/Grindling,
Subcontracting Jobs,
Fine Seperation,
Dry Blending.
Our facility is equipped with the latest state-of-the-art single and twin screw compounding
equipment. Each of these instruments incorporates computer controlled operations and data
acquisition to ensure the optimum product quality and lot-to-lot consistency
Now under the MC070400829 umbrella all the companies are dedicated to providing a
superior level of service and quality. If you would like to try this for yourself visit the online
catalogue or contact us
3.0 DESCRIPTION OF VENTURE
3.1 PRODUCTS
We have a wide varities of product to offer which are carefully designed as per the rules and
regulations of IS0 9001-2000 to provide better quality plastic products / raw materials.
3.2 SERVICES
Consulting,
Size Reduction/Grinding,
Subcontracting Jobs,
Fine Separation,
Dry Blending.
4.1 PRICING
MC070400829 has chosen to focus on the production of plastic packaging materials from
recycled post-consumer beverage bottles. Because of the industry experience and expertise of
the management, we have identified a significant available market in the Pakistan
Unit Prices 2008 2009 2010 2011 2012
Recycled Bags 0.25 0.30 0.35 0.36 0.40
Recycled Mold Products 3.75 4.75 5.75 6.75 7.75
Recycled Bottle 0.45 0.50 0.55 0.60 0.65
Recycled Pipes 12.99 14.99 16.99 18.99 20.99
4.2 DISTRIBUTION
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
4.3 PROMOTION PRODUCT FORECAST
Milestone Start Date End Date Budget
Advertising 1/1/2009 31/12/2010 Rs.5,096,256
Banners 1/1/2010 31/12/2012 Rs.1,553,896
News paper Adds 1/1/2009 31/12/2012 Rs.1,099,153
Brochures 1/1/2009 31/12/209 Rs.226,153
Rewards & Incentives 01/01/2011 31/12/2011 Rs.300,000
Awards 01/01/2012 31/12/2012 Rs.824,542
Scholarships 01/01/2010 31/12/2012 Rs.1,000,000
Totals Rs.10,100,000
4.4 CONTROLS
Because the Company is a start-up, our milestones will surround the establishment of
continuing facilities, confirmation of sourcing and sales contracts, equipment acquisition and
installation, staffing and training, and initiating production
Order Equipment
Secure Location
Hire & Trained Skilled Labor
Hire Plant Manager
5.0 ORGANIZATION PLAN
MC070400829 is owned by the initial founders, Nooruddin and other investors who
are the proposed three executives of the operating entity.
The plan was conceived and developed by these individuals, with the intent to apply
their extensive experience and contacts in the industry to building a successful
profitable corporation
Nooruddin, President and CEO, has a history of working in this type of industries for the last
5 years as a junior and have the capabilities to work with other to encourage potential hidden
inside the plastic business
Mr. Arif Karim, Investor in Money Market for the last 10-15 years have a portfolio of more
than Rs.1,000,000 in different securities
Ms. Sarah Zain, SEVP and EVP in Garfield Bank in Forex and Treasury Division and have
the founding that this business have potentials in the future to attract investor
5.5 ROLES AND RESPONSIBILITIES OF MEMBERS OF ORGANIZATION
Production Personnel Responsibilities
Shift Supervisor To supervise all day to day operation and keep it going
To maintain all technical solution arise from non
Maintainence Techs
functionality of machinery
Skilled Recycle Plant Labor To produce and make it available within time
Production Assistant (full time) To assist in production issues
Sales and Marketing Personnel To make sales and keep achieving their targets
General and Administrative
Responsibilities
Personnel
President To make deicisions
Vice Pres COO To assist in making decisions
CFO To control of all financial operations and forecasting
Plant Manager To achieve by producing as per given target
Accountant Day to day balancing of books
Clerk To assist in miscellaneous activities
Shipper Receiver To keep track of inventories.
6.0 ASSESSMENT OF RISK
6.1.2 Equipment costs are high and industry specific, resulting in a high exit cost.
Because of the scarcity of RPET flake, entrants may be forced to establish cleaning
and refining facilities for post-consumer bottles.
The equipment required is costly and very industry specific. It would not easily be re-
sold as a system.
There is a market for used extrusion equipment, which normally sees 60-70% of new
value being realized.
6.1.3 Vertical integration is an important consideration and difficult to accomplish
successfully.
Because of the scarcity of RPET resin, and to maximize profit potential, entrants must
consider a two-stage production facility.
Cleaning and refining post-consumer bottles and extruding the resulting flake into
commercial products requires a management team such as Replay has, with a broad
range of expertise, experience, industry contacts and knowledge in both areas.
6.1.4 Firm contracts for supply and sales.
Replay Management's industry contacts will allow us to secure contracts for both
supply of feed stock and sale of finished goods.
6.1.5 Freight is a major cost of operations; proximity to source of supply and markets is
crucial.
Hauling plastic materials is expensive so entrants will have to consider establishing
facilities close to materials and markets.
Entrants with existing operations would have to consider new separate facilities in
many cases, reducing economies of scale and making management more difficult.
6.2.3RPET Strapping
The total reported domestic plastic strapping market is 240 million . Of this market, industry
usage of virgin polypropylene is 132 million and of PET is 108 million . Strapping
technology have been advanced
7.0 FINANCIAL PLANS
Expenses:
Advertising 0.00
Amortization 0.00
Bad Debts 0.00
Bank Charges 0.00
Charitable Contributions 0.00
Commissions 0.00
Contract Labor 0.00
Credit Card Fees 0.00
Delivery Expenses 0.00
Depreciation 0.00
Dues and Subscriptions 0.00
Insurance 0.00
Interest 0.00
Maintenance 0.00
Miscellaneous 0.00
Office Expenses 0.00
Operating Supplies 0.00
Payroll Taxes 0.00
Permits and Licenses 0.00
Postage 0.00
Professional Fees 0.00
Property Taxes 0.00
Rent 0.00
Repairs 0.00
Telephone 0.00
Travel 0.00
Utilities 0.00
Vehicle Expenses 0.00
Wages 0.00
Total Expenses 0.00
Other Income:
Gain (Loss) on Sale of Assets 0.00
Interest Income 0.00
Total Other Income 0.00
Fixed Assets:
Vehicles 0.00
Less: Accumulated Depreciation 0.00 0.00
Equipment 0.00
Less: Accumulated Depreciation 0.00 0.00
Buildings 0.00
Less: Accumulated Depreciation 0.00 0.00
Land 0.00
Total Fixed Assets 0.00
Other Assets:
Goodwill 0.00
Total Other Assets 0.00
Current Liabilities:
Accounts Payable 0.00
Sales Taxes Payable 0.00
Payroll Taxes Payable 0.00
Accrued Wages Payable 0.00
Unearned Revenues 0.00
Short-Term Notes Payable 0.00
Short-Term Bank Loan Payable 0.00
Total Current Liabilities 0.00
Long-Term Liabilities:
Long-Term Notes Payable 0.00
Mortgage Payable 0.00
Total Long-Term Liabilities 0.00
Capital:
Owner's Equity 0.00
Net Profit 0.00
Total Capital 0.00
[Month] Total
Beginning Cash Balance
Cash Inflows (Income):
Accts. Rec. Collections 0.00
Loan Proceeds 0.00
Sales & Receipts 0.00
Other:
0.00
0.00
Total Cash Inflows 0.00 0.00
Available Cash Balance 0.00
Cash Outflows (Expenses):
Advertising 0.00
Bank Service Charges 0.00
Credit Card Fees 0.00
Delivery 0.00
Health Insurance 0
Insurance 0
Interest 0
Inventory Purchases 0
Miscellaneous 0
Office 0
Payroll 0
Payroll Taxes 0
Professional Fees 0
Rent or Lease 0
Subscriptions & Dues 0
Supplies 0
Taxes & Licenses 0
Utilities & Telephone 0
Other:
Subtotal 0.00 0.00
Other Cash Out Flows:
Capital Purchases 0.00
Loan Principal 0.00
Owner's Draw 0.00
Other:
0.00
Subtotal 0.00 0.00
Total Cash Outflows 0.00 0.00
Ending Cash Balance 0.00
8.0 APPENDIX
Bangs, David H. The Business Planning Guide: Creating a Plan for Success in Your Own
Business. Upstart, 1998.
Belkin, Lisa. "The Art of Making a Plan and Making It Happen." New York Times. December
18, 2000.
Covello, Joseph A., and Brian J. Hazelgren. The Complete Book of Business Plans.
Sourcebooks Trade, 1994.
"How to Write a Great Business Plan." Harvard Business Review. July-August 1997.
Jones, Rebecca. "Business Plans: Roadmaps for Growth and Success." Information Outlook.
December 2000.