29847013 Business Plan on Plastic Recycle

BUSINESS PLAN on Plastic Recycling.

“mannath---10”

Green ZONE RECYCLING

Join hands together…..

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INTRODUCTION:

Plastic recycling In India:

Indian plastic industry is in the path of an impressive growth now. So what is the

position of India in global plastic recycling market? When compared to the usage of steel &

aluminium, the usage of plastic is more on volume basis .

Indian economy and plastic industry:

In the year 2000, India was the 10th in plastic consumption. But owing to the growth

through 2000-2009, it is expected India to be the 3rd largest consumer of plastics by

2010.obviously by this great leap in this industry the total contribution of plastic in Indian

economy will also jump to Rs.2100Bn by 2010.

Executive Summary:

Objectives:.

1.. To achieve a Profit of about 21% or more in first year, and increase it in the coming years.

2. Save Trees, Save the Environment.

Vision:

To become the Leader in Global market of green business

Mission:

To convert waste plastic materials into commercially viable products, utilizing environmentally friendly recycling and manufacturing methods.

We intend to make enough profit to generate a significant return and to finance continued growth and continued development in quality products.

We will also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas and hard work.

Friendly environment business for the shake world to reduce the percentage of co2

To increase economy of country.

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Keys to Success

The main keys for the success of the Company will be:

Secure Supply- Contract for supply of post-consumer bottles and post-industrial manufacturing waste for PET raw material feed stock.

Marketing - Contractual arrangements for the sale of virtually all initial production.

Committed Management team.

The growing utilization of plastics in industrial and consumer applications, combined

with increased consumer awareness surrounding solid waste recycling, has led to an

increased demand for recycled plastic resins and products. One of the fastest growing types

of collected plastic materials for recycling is Polyethylene Terephthalate ("PET") from

post-consumer beverage and water bottles. Ozone Plastics will capitalize on the

opportunities in the recycled resin and packaging markets through two main divisions: a

Recycling Division and a Packaging Division.

Company Summary:

• The Company will capitalize on the opportunities in the recycled resin and packaging

markets through two main divisions: a Recycling Division and a Packaging Division.

• Recycling Division

• Using a patented process, the Company will create a PET cleaning and refining plant

The Company will become totally vertically integrated, and use all or almost all of its

recycled material in its Packaging Division. Any surplus material produced will be

sold to outside companies.

• We will create a plant (actual facilities to be shared with the Recycling Division) to

manufacture extruded plastic roll stock sheet or high-strength strapping, employing

state-of-the-art technology developed to utilize recycled PET resin.

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Company Ownership:

Green zone Plastics is owned by the initial founders, Touheedahmed Peerzade and Bharatkumar .Bhattad who are the proposed two executives of the operating entity. The plan will conceive and developed by these individuals, with the intent to apply their extensive experience and contacts in the industry to building a successful profitable corporation.Start-up Summary:

Our start-up expenses are budgeted at Rs.31lack which is for the site of our industry.

Our largest Start-up Requirement for land& building of the recycling and extrusion facility is

of amounted to Rs.14.6lacks. The machinery costs which are involved in the manufacturing

process will be about 11.25lacks. The requirement of raw materials for the initialy. will be

about 2.70lack

Technology:

As one of the member of our Management team, is one of the original innovators of

cleaning and refining technology for post-consumer PET, and we will be utilizing his

patented process in our recycling facility. He has worked in the establishment and operation

of facilities employing similar technologies over the last several years.

Products:

Shopping Bags

Multiwall Bags

Artificial flowers

Chinese fans

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Product Description:

Plastic bags are popular with consumers and retailers as they are a functional, lightweight,

strong, cheap, and hygienic way to transport food and other products. The over consumption

of plastic bags find their way on to our streets, parks, and into our waterways.

In past few decades the use of plastic has increased all over the world. Plastic is a big threat

to our Planet Earth. The reason is plastics are not biodegradable. Plastic is not capable of

being decomposed by biological agents. Hence, when thrown after use, it is not decomposed,

which tends to threat the earth.

Although plastic bags make up only a small percentage of the total litter zones, the impact of

these bags is no doubt significant. Plastic bags create visual pollution problems and can have

catastrophic effects on aquatic and terrestrial animals. Plastic bags are particularly striking

components of the litter zone due to their size and can take a long time to fully break down

(not biodegradable).

Multiwall BagsA multiwall bag is two to six bags, one sitting inside the other. These bags are exceptionally strong because each layer carries its own share of the weight of the product, so the bags often are used to ship large quantities of heavy materials.

Plastic Recycling process:Plastics cause serious environmental problems. Although they are not intrinsicallyDangerous, they take up a huge amount of space in landfills and they are made from a nonrenewable resource, namely fossil fuels. For these reasons it is important that, wherePossible, plastics are recycled.

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The recycling of plastics is carried out in a five step process.

Step I Procurement:

This is done through roadside collections, special recycling bins and directly fromindustries that use a lot of plastic. Or this can be collected by intermediatories.Especially who are placed in Gandhi nagar junc dealers

Step II Separation:

At this stage nails and stones are removed, and the plastic is sorted into three types: PET,HDPE and 'other.

Step III Crushing:

The sorted plastic is cut into small pieces ready to be melted down.

Step IV Grinding:

This stage removes contaminants such as paper labels, dirt and remnants of the productoriginally contained in the plastic.

Step V PelletingThe plastic is then melted down and extruded into small pellets ready for reuse.

Some recycled plastic is then used in applications similar to those for which virgin plastic is used. The remaining plastic is made into a variety of objects such as Multiwall Bags etc.

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RECYCLING PROCESSStep 1 – Procurment:Plastics for recycling come from two main sources: post consumer plastics and post industrialplastics. Post consumer plastics are those which have already been used by people. Theseare the plastics collected in plastics recycling bins and at domestic roadside collections. Postindustrial plastics, on the other hand, are rejects from industry — offcuts, damaged batchesetc. These plastics are collected either directly from the industry or collected by the localcouncil, squashed into bales and sold to a recycler.

Step 2 – Separation: In theory, every type of plastic can be recycled. In practise in New Zealand only codes 1(PET) and 2 (HDPE) are recycled. The incoming plastic is manually sorted into these twocodes and 'other', and the three separate streams sent off to be chipped. It is particularlyimportant that all PVC is removed from the PET stream as the more sophisticated sortingused later on cannot differentiate between these two types of plastic. Any rocks, nails, meta letc. that is mixed in with the plastic is also manually removed at this stage. A summary of the plastics recycling codes is given.

Step 3 – Chipping or Crushing:Each sorted stream of plastic is then sent separately to a chipper. This is a cylinder of bladessomewhat like an old-fashioned lawnmower in a vessel with a 10 mm grill floor. The bladescut the material until it is small enough to fall through the grill.

Step 4 – Grinding:The chips are then washed to remove glue, paper labels, dirt and any remnants of the productthey once contained. Both the "other" stream and the PET stream are washed at around 90oCfor at least twelve minutes, while the HDPE (which has a much lower melting point) must bewashed below 40oC to prevent discolouration.The wash solution consists of an alkaline detergent in water, which removes dirt and greaseand degrades protein. The detergent used is an alkaline, cationic detergent (i.e. an alkaline

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solution containing a cationic surfactant). Dishwashing detergents are usually anionic,because glass, china etc. usually build up a negative surface charge. This means thatpositively charged dirt particles are attracted to them, so an anionic detergent is needed toremove the dirt. If a cationic surfactant were used it not only would be incapable ofremoving the dirt, but it would itself stick to the surface to be cleaned, making it greasy.However, plastics aquire a positive surface charge, meaning that a cationic detergent isneeded to clean them. Cationic surfactants are much less common than anionic ones, butthey are used for shampoos and for fabric softeners1. Surfactants are explained in more detailin the article on soaps and detergents.During washing the agitator in the wash tank acts as an abrasive, grinding off the glue of thelabels and reducing any paper labels to fibres. The plastics are then separated from the glue,paper, dirt etc. in a spinning tower in which this very fine material is forced out through smallholes, while the plastic itself remains inside. The plastics are then further rinsed and then (inthe PET and HDPE streams) separated on the basis of weight. This is done using a watercyclone which is designed to separate out the given plastic from all the others.

Step 5 - PelletingThis is done by melting the chips and extruding them out first through a fine grill to removeany solid dirt or metal particles that have made it through the treatment thus far and thenthrough a die of small holes. If the plastic was simply allowed to extrude from these holes itwould come out as spaghetti-like strings and quickly tangle together. However, it is sprayedwith water as it comes out (to prevent the plastic from sticking together) and cut off byrotating knives to give small, oval pellets.

Process cycle:

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Procurement

Separation

Crushing

Grinding

Pelleting

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Process Design

Procurement Separation

Grinding Converted raw

material

Pelleting

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Washing

Washing

ENVIRONMENTAL IMPLICATIONS OF PROCESS:

As stated above, plastic recycling prevents damage to the environment via excessiveland filling and use of non-renewable resources. The process is also largely environmentallysafe, with the only effluent being from the wash water. This is recycled in the plant as muchas possible to minimize water use and when it is finished with it is still sufficiently clean tobe dumped into the sewers.

DESIGN ROOM:

STEP1: Remodification :

Remodification is done by skilled employees to design the raw material in to final product.

Step2: Process:

Several steps are taken place to remodify the product less number of machineries are to be used or sometimes machineries are not necessary.

Step3: Finished products:

This is the final stage of production where raw materials are converted in to finished products like shopping bags, multiwall bags etc.

Market Analysis:

Strong demand for recycled plastics will work in the industry's favour. Major users

of plastic packaging, apparently responding to consumer desires, have begun incorporating at

least some recycled plastic content in their products as part of the growing interest in

recycling. The plastics industry has developed new markets and applications for recycled

resins from both post-consumer and post-industrial sources. Improved quality of resins,

environmental issues and higher prices for virgin resin will contribute to growth.

Packaging is expected to be the largest market segment for recycled plastics, with sheet and

lumber following. Surveys indicate that people are increasingly willing to collect and

separate discarded packages, foregoing a degree of convenience to make products more

disposable, and even paying a premium for a recycled item.

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Marketing strategy with 4ps:

Product:

Environmentally friendly products can increase and decrease production costs;

environmentally friendly production may increase costs for organisations and their suppliers

but this may be offset by lower fuel bills through energy efficiency measures or an increase in

sales caused by a positive product image.

Flexible

Price:

The ideal marketing mix is a reduction in costs and/or an increased in costs which is

exceeded by an increase in profits. (must be affordable to all category of people)

Value based pricing.

Place:

All organisations will need to “carefully” time when their product reaches consumers; exact

time of distribution will depend on the product or service being distributed. Such timing may

have an environmental implication.

Hubli

Kolhapur

Belgaum

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Promotion:

The use of carrier bags has changed dramatically in the UK over the last 2-3 years.

Retailers actively promote the benefit of reusable bags as they have many benefits

• Lower costs for the retailer

• Consumers “feel good” as they believe that the use of a reusable bag is helping the

environment

• Fewer carrier bags go to landfill

Media and Celebrities.

Local TV channels.

Awareness programmes.

Distributing dust pins to hospitals, institutions, city bus stops.

example is hotels offering guests the opportunity to engage in fewer linen and towel changes. Such strategy is environmentally friendly as it reduces the use of detergents and energy but it also reduces costs for the hotel and improves corporate image.

Some organisations providing products and services which may harm the environment have added “off setting” methods to their portfolios and marketing literature. The idea behind “off setting” is that the consumer is offered the opportunity to indirectly engage in an activity (such as tree planting) that benefits the environment and therefore balances/evens out the damage they caused for example through flying. Such schemes attempt to ease the consumer’s conscience and retain a positive image for the organisation providing the environmentally unfriendly product or service.

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HR Plans:

1. We are hiring 20 employees in which 5skilled labours and remaining are unskilled.

2. Providing employment directly and indirectly.

3. Full utilisation of resources.

4. Providing healthy and clean environment.

SWOT AnalysisStrengths

consolidation Low price Environment Friendly Low resource consumption Unavailability of Machinery

Weak ness : People may not accept this product if we do not rightly market it. lack of markets for collected materials

Opportunities Employment Opportunities Demand Supply Gap, creates a room for our business Purchasing power of the people will be increased so they will favour our products.

Threats: custom duties growing compition

Competition:

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Plastics competitive edge rests with its proximity to its target markets, as well as the

industry knowledge, reputation. The experience of the management will led to identify

unique opportunity and put together the technology and sources to take advantage of it. The

reputation in the specific market segment will result in the achievement of long-term

commitments for our production.

We will surpass 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 will apply for our product under Trade mark and Patent law.

High start up costs.

Improving skills in technical, manufacturing, marketing and engineering expertise.

Target Market Segment Strategy:

The Company has chosen its target markets because recycled PET (OPET) is in high

demand as flake resin by converters, as roll stock sheet used to produce high visibility

packaging and as high strength strapping for the lumber industry. Sales are price-sensitive,

so that proximity to markets and feed stock source provide a competitive edge.

It is generally accepted in the industry that less expensive strapping made from OPET

could not only take over the polypropylene strapping market, but convert as much of the

much larger and more expensive steel strapping market as OPET strapping was available.

Target customers:

Household women’s.

Students.

Industries

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Value Proposition:

Green Zone

In a vertically integrated environment, green zone will apply state-of-the-art recycling

and extrusion technology managed by 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.

Marketing Strategy:

The Company 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. 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.

Segmenting: Economic and demographic

Primary Targets: Premium Class of the city (niche)

Secondary Targets: At a later stage Masses

Positioning: 1. reduction of co2 quantity by using recycled products for healthy

environment.

2. to reduce global warming and deforestization.

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Raw Material

15,000 kg/PM

Rs.18/per Kg

Total cost 15,000 kg *Rs18/kg = 2, 70,000

Utilities

[Power]= 6000 units @ Rs 5

Total Cost = Rs.30,000

Human capital

Particular No of employees

Salary /pm

Material Handler(26 days)

Women 3 6240

Men 10 26,0000

Machine Operator 3 18,0000

Designer (26 days) 5 26,000

Accountant 1 5,0000

Security 1 3000

Total =84240 per month * 12=10,10,880

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Working Capital

Particulars Amount

Raw material 2,70,000

Power 6000 units 30,000

Cash in hand 1,00,000

Wages 84,240

Others 21760

Total 3,40,000

3,40,000 per month

Fixed Assets

Particulars Amount (Rs)

Land - 8192 sqr ft * 92.77 /sqr ft 7,60,000

Building ( shed and office) 7,00,000

Furniture 25,000

Machinery

1] Washing machine 80,000

2] Zatak machine 60,000

3]Casting machine 25,000

4]Aglow machine 60,000

5]Dana machine 3,00,000

6]design machin&packing instruments 6,00,000

Total 26,10,000

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Total start of required Amount

Particulars Amount(Rs)

Working Capital 3,40,000

Fixed Assets 26,10,000

Start up Expenses 50,000

Investment 1,00,000

Total 31,00,000

Sales Generation- Per Month

S.no Product description No units/m

Total units

Rs/unit Sales /m Total

Amount(Rs)

1 Plastic flowers 12,500 1.50.000 8 1,00,000 12,00,000

2 Fans 12,500 1,50.000 10 1,20,000 15,00,000

3 Vask 3750 45,000 40 1,50,000 18,00,000

4 Plastic Bags 7,443 89320 15 1,11,645 13,39,800

Total 58,39,800

Profit Projection:

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Particulars 1st year 2nd year 3rd year

Sales 58,39,800 70,07,760 87,59,700

Less: cost of goods sold 40,59,800 48,79,760 58,55,712

Gross profit 17,80,000 21,28,000 29,03,988

Less: Operating expenses 7,67,600 8,44,360 9,71,014

PBT 10,13,300 12,83,640 19,32,974

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PROFIT AND LOSS A/c

Particulars Amount Particulars Amount

To Raw materials 32,40,000 By sales 58,39,800

To wages 6,98,900

To Electricity 3,60,000 By stock 2,40.000

To gross profit 17,80,900

60,79,800 60,79.800

To salaries 3,12,000 By gross profit 17,80,900

To stationery 6100

To telephone bill 6000

To depreciation

Building- 70,000

Plant &machinery - 1,35,000

Furniture 4,500

To interest on loan 1,44,000

To selling exps 30,000

To advt exps 30,000

To maintenance 10,000

To insurance 20,000

To net profit 10,13,300

60,79,800 60,79,800

BALANCE SHEET

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Liabilities Amount

(Rs)

Assets Amount (Rs)

Owners capital FIXED ASSETS

Thoheed 10,00,000 Land Building 14,60,000

Bharat 9,00,000 19,00,000 Less: DEP @10% on B

7,00,000 13,90,000

Surplus 4,13,300 Plant & machinery 11,25,000

Less: DEP @ 12% 1,35,0000 9,90,000

Long Term Loan- 1200000 Furniture 25,000

Less-Re payment 200000 10,00,000 Less: DEP @ 18% 4500 21,500

INVESTMENT 1,61,800

CURENT ASSETS

stock 2,40,000

Cash in hand 1,00,000

Cash at Bank 2,00,000

Debtors 1,60.000

MISCELLANEOUS EXPS

50,000

33,13,300 33,13,300

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Break Even Point [BEP]

Total Sales Rs 58, 39,800 Total Variable Cost Rs 39, 86,900 Total Fixed Cost =10, 13,500 Thus contribution is Rs18, 52,900

Fixed Cost

BEP Sales = *100

Contribution

=10, 13,500/18, 52,900

= 54.69 %

Our BEP sales is 54.69%, so that much sales we will reach at 7 month after commencing, exactly 7 months after we will reach BEP level that is Rs31,93,790 , then after we will earn sustainable amount profit.

Management Summary:

The two founders of the management group. Several qualified candidates have been

identified for the position of plant manager. The balance of the employees will be hired and

trained during the equipment purchase and installation phase (first five months after funding).

Environmental Factors:

Considering the damage created by the plastics to the environment, the Govt. tries to

ban the usage of plastics in the country. But thousands of families in India make there living

out of the money earned through plastic waste recycling. Any such total ban in this sector

will also adversely affect the countries economy negatively.

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Conclusion:

We are waste as raw material for producing our plastic products.by doing this we are

protecting environment from pollution and keeping healthy environment for socity .at the

same time we are saving natural resources which otherwise would have been used for

manufacturing plastics and control over global warming.

Future plans:

1. Establishing paper recycling business to save trees as a vision and to reduce

deforestization.

2. Tyre recycling business to reduce carbon emissions and control over global warming and

healthy environment.

Note: This business plan is prepared by BET’s Global Business School Belgaum students to

take part in management Fest. But not to meet any business need and any Rules Students can

use as a model Business Plan.

Queries and suggestion contact:

[email protected]

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