GROUP 22 ANKUR VERMA BALVINDER SINGH SHIVAM GOYAL PRATEEK DAHIYA RAJAT

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.

Company Overview
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 PVC (Polyvinyl chloride) PET (Polyethyleneterephthylene)

Mission Statement
Strive to provide the excellent plastic solution to the

customers at competitive prices. Continually expand our range of products. Poised to service both large and small customers.

The Product
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 willmanufacture plastic tubes of various diameters, plastic kitchenware.(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.

Possible Obstacles
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. 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

Company may not meet environmental standards

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.

Region wise and polymer wise turnover of recycling industry (in INR Crore)
Region
West East North South Total

PVC
156 75 338 111 680

PET
383 86 158 139 766

STRUCTURE OF THE PLASTICS INDUSTRY

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.

STRUCTURE OF THE PLASTICS INDUSTRY

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.

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

CUSTOMER ANALYSIS
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. Apart from them there are few small companies that 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
As we are also not alone as a supplier of PET to the

companies as raw materials there are many companies in this region that 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 Allahabad is 200km as well as the road is not in good condition, so it will not affect much.

MARKETING STRATEGY
The Company has chosen to focus on the production

of plastic packaging materials from recycled postconsumer 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

Hind 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
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
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.

ADVERTISING & PROMOTION STRATEGY

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.

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.

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 forecast Year 1 Annual sales 1620000 2106000 175500 122850 52650 2737800 228150 159705 68445 3559140 296595 207617 88978.5 Year 2 Year 3 Year 4

Monthly sales PET Sales Household items

135000 94500 40500

DEVELOPMENT
The development of Hind plastics required

accomplishing 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. 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)

Development strategy
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

Management
Promoters and six supporting staff will manage the

company. There will be five promoters of Hind Plastics. Along with promoter five more employees will work for the accomplishment of companies objective.

Job description
Process No of Proficiency employees Sorting 2 Unskilled Belt Conveyer 1 Semiskilled PET Separator 1 Semiskilled Packaging 4 Unskilled

OPERATIONS
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 that 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.

Stages of Recycling and Production

Sizing / Chipping
Cleaning Segregation.

Agglomerating / Colouring
Extrusion / Palletisation Fabrication into end Product.

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
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 everyday we will have minimum of 125kg (safety stock+ reorder point) of raw material in our inventory.

FACILITY LAYOUT

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

1,00,000

Other Current Assets Long-term Assets Total Assets

Total Requirements

0 33,30,000 34,30,000
34,40,000

BALANCE SHEET
Sources of Funds Capital Owner's capital Surplus Net worth Long Term loan Loan Current Liabilities Creditors Total liabilities Application of fund Plant & M/C Less depreciation Land Actual Fixed Asset Current Assets: Inventory Bank Debtors Year-1 1930000 -136350 1793650 1417302 70500 3281452 3030000 303000 2727000 300000 3027000 97200 10000 147252 Year-2 1930000 -68451 1861549 1324116 56722 3242387 2727000 272700 2454300 300000 2754300 315900 40000 132187 Year-3 1930000 130274 2060274 1219111 68066 3347451 2454300 245430 2208870 300000 2508870 410670 100000 117911 Year-4 1930000 765287 2695287 1100789 81680 3877756 2208870 220887 1987983 300000 2287983 821340 100000 232703

Advance to suppliers Investment Total Assets

0
3281452

0
3242387

210000
3347451

335730 100000 3877756

BREAK EVEN POINT

VC
otherexp transportation telephone wages carriage inward power raw material total contribution pv ratio BEP units BEP SALES

Amount in Rs
6000 96000 10000 119250 238500 119250 414000 1003000 617000 0.3808642 1965398.703 15 1.21

FC
Admin Interest advertisement Insurance Salary Rent maintenance depreciation

Amount in Rs
3000 175550 6000 20000 192000 24000 15000 303000

Legal
Total

10000
748550

135000 in months In years

Benefits of recycling
Reduce Material Consumption One of the largest benefits of recycling is the ability to preserve more virgin materials for later 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 most metals, particularly aluminum and steel.
Reduce Energy Consumption Often the energy required to recycle materials is far less than the energy required to make a product out of new materials. Recycled aluminum, for example, saves 95 percent of the amount of energy it takes to create it from virgin materials. Other materials save amounts that are more modest. Recycled glass, for example, only saves about 40 percent of the initial energy investment. Reduce the Size of Landfills Landfill size can be drastically reduced with an aggressive recycling program. Reducing landfill size not only leaves more land for other uses, but also minimizes the amount of energy required to remove and eventually relocate trash. When considering the size of landfills, also take into account the wasted area around the landfill. Land adjacent to landfills is often only for industrial sites. Air pollution makes it even less likely that nearby land can be used for other purposes.

 Reduce Pollution

Waste often creates water pollution by leaching chemicals into the soil. While some of these chemicals are filtered out by the soil, other pollutants go on to damage ground water sources. Air pollution is also a great concern. Methane and other gases released in landfills contribute to global warming problems as well as air quality concerns. Creates Jobs Recycling is more labor intensive than landfill management, requiring more workers to sort and process recyclable waste. This can revitalize rural areas where landfills are often located, bringing needed jobs to the region. These manual skill jobs are particularly beneficial in areas that were once manufacturing centers.

Thank you