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Project Proposal submitted by
Business Plan for
Manufacturing EGG TRAY
from Waste Paper
650 Trays/Hr (30 Cavity Tray)
or 15,000 Trays/Day
in
Nigeria
Submitted by : Onella Consulting Pvt Ltd, India
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Project Proposal submitted by
1. Products Planned and Capacity
Egg Tray
2. Process Description and Production Flow Chart
3. Equipment List and Specifications
4. Plant Details
5. Project Details
6. Project Financials
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Project Proposal submitted by
1. Products Planned, Capacity Planned and Production Details
Egg Tray:
The project involves converting waste paper into useful products
like egg trays that are
salable and is in demand. A sophisticated machine, Paper Pulp
Moulding System for Egg
Trays (Egg Filler Flats) is used for making Egg Trays.
The machine is capable to manufacture different size and shapes
for Trays. Some of the
designs for Egg Trays are as follows:
6 Cavity Egg Tray
30 Cavity Egg Tray
18 Cavity Egg tray
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Project Proposal submitted by
Colour Egg Tray
The plan would be capable for products of all the above
products. The Project is planned with the capacity of 650 Trays/Hr.
The plant is designed for 24hrs working. The plant is capable for
production of about 15,600 Trays/Day @100% Capacity. The actual
production, which can be achieved is as follows: For all the
Projection, we have assumed Production of Egg Trays with 30
Cavities.
Daily Production Details: Year 1 Year 2 Year 3 Year 4 Year 5
Capacity Utilization 75% 80% 85% 85% 85%
Daily Production Units
Egg Trays (Nos) 11,700 12,480 13,260 13,260 13,260
Yearly Production Details
Year 1 Year 2 Year 3 Year 4 Year 5
Capacity Utilization 75% 80% 85% 85% 85%
Yearly Production Units
Egg Trays (Nos) 3,861,000 4,118,400 4,375,800 4,375,800
4,375,800
Working Days in Year assumed as 330 Days. The plant is capable
for working more than 350 Days/Year. Sales Price is assumed as
Naira 40/ Pcs Ex Factory, although the Sales Price is more than
this.
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Project Proposal submitted by
2. Process Description and Production Flow Chart
Manufacturing Process of Egg Tray Making
Waste Paper, even the lower grades is converted into pulp of 4 %
consistency in a critically
designed Hydrapulper. The pulp so formed in the Hydrapulper flow
through a pulp screen
and a vibrator before being discharged to a pulp hold. Here wax,
alum etc. are added and
diluted to about 1% consistency under constant agitation. The
same is then pumped into an
overhead pulp tank with special agitator and discharge section.
The pulp by gravity flow
enters the Moulding unit and overflows. The forming mould gets
filled with the pulp which
is sucked through the surface of the mould by vacuum pull which
leaves a fill of solid paper
fibre in the shape of the mould. The transfer mould gives a puff
of controlled compressed
air uniformly, to discharge the wet tray and drop it to the
prepositioned pallet for inline
Dryer. After Dryer the tray moves to compacting machine through
conveyor.
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Project Proposal submitted by
3. Equipment List and Specifications
EQUIPMENT DETAILS AND DESCRIPTION
S. No ITEM
NAME
DESCRIPTION PHOTO QTY
1 Hydrapulper Heavy duty construction in Mild Steel with rust
preventive coating. The cutter is made of SS to ensure uniform and
aggressive pulping with less input of power and time. Fitted with
suitable AC motor with drive pulley and belt.
1 No
2 Agitator This assists to maintain uniform consistency of pulp
in the storage tanks
1 No
3. Vibrator
Screen
This assists to screen possible impurities like metal, plastic,
wood etc. Driven by suitable AC motor
1 No
4 Vacuum pump With motor, Water separator Tank & water
Pump
This is used to create vacuum to suck the water from the moulds.
Fitted with suitable AC motor complete with pulley and belt
1 No
5 Pulp Lifting
Pump
This pump is used to lift the pulp from the tank to the moulding
machine and back. Driven by a suitable AC motor.
No Picture
1 No
6. Valves &
Piping
To Control the process and to Transport the pulp and water
No Picture
1 No
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Project Proposal submitted by
B. Forming Section:
S.
No
ITEM NAME DESCRIPTION PHOTO QTY
1 Reciprocating Moulding machine
This machine is used to make pulp moulded products using
relevant moulds from the pulp. Reciprocating Moulding machine
complete with pulp tank and with PLC controlled user-friendly
control panel.
1 No
2 Standard size 30-cavity Egg tray mould set consisting of 4 Nos
of forming moulds and 4 Nos. of transfer
moulds
To produce 30-cavity egg trays of standard size
1 Set
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Project Proposal submitted by
C. DRYING SECTION
S.
No
ITEM NAME DESCRIPTION PHOTO QTY
1 On Line
Dryer
On-Line conveyorised Drier with Multi-pass movement to save
energy, space, fuel consumption etc. Fitted with suitable drives
and supplied with suitable control panel. Provided with insulated
walls to conserve maximum possible heat energy
1 No
2 Gas heating System
To supply heat to the drying chambers by heating the air using
Gas as fuel
1 No
3. Finished Product Delivery Conveyor
To deliver the dried product from the Drier to Packing
section.
1 No
D. PACKING SECTION
S.
No
ITEM NAME DESCRIPTION PHOTO QTY
1 Compacting
Machine
To Press and compact the finished trays to save shipping
space
1 No
4. Plant Details:
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Project Proposal submitted by
The plant is designed for continuous 3 Shift working. The plant
is designed with required automation keeping Nigeria conditions in
mind.
The plant is designed with all the required accessories and
utility equipments for continuous working.
Total Building Required : 400 - 500 Sq. Mtrs
Recommended Space Required for complete Factory : About 300 Sq
Mtrs
(Machine Length 30 Feet, Width 25 Feet and Height 15 Feet) Total
Electricity Required : About 125- 150 KW
The Generators are planned with for Backup generators.
The complete Electricity Network is planned with following
options:
a. Electrical Connection from NEPA
b. Backup Generation using Diesel Generators
Total Employment Generation
Total Workers : About 20
Engineers and other Staff : About 5
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Project Proposal submitted by
Engineering Drawing and Technical Support
We would offer the following services:
a. Complete Engineering Services for complete plant
including
i. Building Drawing
ii. Complete Engineering Service Drawings
iii. Project Engineering Services iv. Project Management
Services b. Technical Services include
i. Plant Layout
ii. Utility Layout
iii Utility balancing
iv. Technical know how for Production
v. Man Power Training
We can also arrange the following Expats for:
1. Plant In charge
2. Production In charge
3. Production Planning & Control
4. Production Managers for each Section
The expats would be coming as Employees of the company on
contract.
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Project Proposal submitted by
Commercial Details: Cost of Plant, Service Utility, Freight Cost
Installation and other Cost:
S.No Description Qty Total Amount (USD)
1. Egg Tray Making Plant 1
(As per details given Above) TOTAL 180,000
Cost of Utility Services and Equipments:
S.No Description Nos Total Amount (USD)
1 Power Plants (NEPA Substation, Diesel Generators) 1 Set 2
Electrical Set up Including Distribution Panels, Wires,
Cables, Earthing, Indoor Lighting, Outdoor Lighting 1 Set
3 Pumps 1 Set 4 Piping 1 Lot 5 Compressor 1 Nos 6 Weighing
Scales 1 Lot 7 Others Misc equipments 1 Lot 8 Fire Fighting 1
Set
Total Utility USD 45,000
Total FOB Cost of Plant, Utility & Services 295,000 Freight
Cost (Lagos Port) Total 3 Containers 15,000 Total Installation Cost
Including Cost of Travel, Cost
of Expert, Supervision Cost, Visa Fee etc (Local Lodging and
Boarding Expenses to be borne by client)
10,000
Total Installed Cost (USD) 250,000
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Project Proposal submitted by
6. Project Financials Estimated Calculation of Building:
The Building required is about 300 Sq Mtrs and can be taken on
lease. We have assumed cost of lease of about Naira Million 5.00 in
1st year with increase of 15% yearly.
Estimated Project Cost S No Description Million Naira 1 Plant
& machinery 57.64 2 Pre-operative expenses 5.90
3 Contingent expenditure 6.35 4 Working capital (1st year)
5.15
Total Project cost 75.05
Project Highlights: Details
Break-even point (3rd Year) 37% Debt service coverage ratio
4.91
Internal rate of return 42%
Pay-back period (Years) 1.30 Interest rate - Term Loan 21%
Promoters Contribution 33%
If you take loan from India the cost would be much cheaper
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Project Proposal submitted by
Estimated Machine Prices:
Particulars No. of M/cs
BASIC COST
Total Cost USD
Currency EX-RATE
NET COST
Egg Tray Making Plant 1 250,000 250000 USD 200.00 50.00 Sub
Total 1 250000 50.00
Total 50.00
Total of Imported Plant and Machinery Million Naira 50.00 Add
Import Duty, Clearing Expenses, Local Transportation etc.
13.00% 6.50
Total Plant and Machinery Cost 56.50
Calculation of Working Capital:
DESCRIPTION 1st Year
No. of Months Required
Amount Required
STOCK OF INVENTORIES 1. Raw Material -Indigenous 0.15 0.11 2.
Consumables -Indigenous 0.25 0.01 3. Stock of Work-In-Progress 0.04
0.16 4. Stock of Finished Goods 0.10 1.29 Sub Total 1.56 SUNDRY
DEBTORS 5.Bill Receivable/ Goods in transit 0.20 2.57 Sub Total
2.57 OTHER CURRENT ASSETS/ CONTINGENCIES 6. Utilities 0.25 0.30 7.
Labour & Plant Overheads 0.25 0.30 8. Factory Overheads 0.25
0.18 9. Administrative Expenses 0.25 0.18 10. Other Expenses 0.25
0.06
1.02 Total 5.15
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Project Proposal submitted by
Expected Yearly Sales:
Sales of Egg Trays Million Naira Yearly Sales Value Year 1 Year
2 Year 3 Year 4 Year 5 Egg Tray 154 165 175 175 175
Total Sales Value 154 165 175 175 175
Raw Material Required:
Raw Material Kgs/ Year Year 1 Year 2 Year 3 Year 4 Year 5
Capacity Utilization 75% 80% 85% 85% 85% Waste Papers 253,475
270,373 287,271 287,271 287,271
Total 253,475 270,373 287,271 287,271 287,271
Cost of Waste Papers : Naira 35/ Kgs (The Price of waste paper
is much less than this price as per our Market Survery) Value in
Million Naira Summary Year 1 Year 2 Year 3 Year 4 Year 5 Waste
Papers 8.87 9.46 10.05 10.05 10.05 Total Raw Material 8.87 9.46
10.05 10.05 10.05
Total Electricity Cost and Fuel Cost:
Cost of Electricity : Naira 32/ Unit of KWH
Cost of Gas : Naira 65/ Kg
Million Naira
Summary Year 1 Year 2 Year 3 Year 4 Year 5 Capacity Utilization
75% 80% 85% 85% 85%
Cost of Electricity 12.93 13.79 14.65 14.65 14.65 Cost of Fuel
1.28 1.36 1.45 1.45 1.45 TOTAL 14.20 15.15 16.10 16.10 16.10
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Project Proposal submitted by
Estimated Working Results:
Description Year 1 Year 2 Year 3 Year 4 Year 5 75% 80% 85% 85%
85%
a. Cost of Production 46.61 50.15 53.81 54.88 56.09 b.
Administrative Expenses -Administrative Salaries 8.40 8.40 8.40
8.40 8.40 - Other Admin. Overheads 1.00% 1.54 1.65 1.75 1.75 1.75
Total Admn. Expenses 9.94 10.05 10.15 10.15 10.15 c. Sale Expenses
5.00% 7.72 8.24 8.75 8.75 8.75 d. Total Cost Production 64.28 68.44
72.72 73.78 75.00 e. Expected Sales Ex-factory 154.44 164.74 175.03
175.03 175.03 f. Gross Profit Before interest 90.16 96.30 102.32
101.25 100.04 g. Financial Expenses -Interest on IC Loan 11.00
11.00 9.00 7.00 4.00 -Bank Charges 1% 0.77 0.82 0.88 0.88 0.88 h.
Total Financial Expenses 11.77 11.82 9.88 7.88 4.88 i. Depreciation
6.61 6.61 6.61 6.61 6.61 j. Operating Profit (h-j-k) 71.78 77.86
85.83 86.77 88.55 k. Profit/ Loss before Tax 71.78 77.86 85.83
86.77 88.55 l. Provision for Tax 22.63 25.19 28.29 28.98 29.89 m.
Profit after Tax 49.15 52.68 57.54 57.79 58.66 n. Retained Profit
49.15 52.68 57.54 57.79 58.66 o. Add Depreciation 6.61 6.61 6.61
6.61 6.61 p. Add Back Preliminary Expenses - - - - - q. Net Cash
Accruals 55.76 59.29 64.15 64.40 65.27
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Project Proposal submitted by
Break Even Analysis:
DESCRIPTION Year 1 Year 2 Year 3 A. Sales Realisation 154.44
164.74 175.03
B.- Raw material 8.87 9.46 10.05 - Consumables 0.51 0.54 0.57 -
Bank charges 0.77 0.82 0.88 - Utilities 14.20 15.15 16.10 - Sales
Expenses 7.72 8.24 8.75 Total B 32.08 34.21 36.35
C. Contribution (A-B) 122.36 130.52 138.68
D. Fixed costs - Salary & wages 14.36 15.32 16.28 - Factory
overheads 8.67 9.68 10.81 - Administrative overheads 8.40 8.40 8.40
- Interest on F/C loan - Interest on R/C loan 11.00 11.00 9.00 -
Depreciation & Preliminary Expenses 6.61 6.61 6.61 Total D
49.04 51.01 51.10
BREAK EVEN POINT D/C (%) 40% 39% 37%
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Project Proposal submitted by
Pay Back Period:
DESCRIPTION Year 1 Year 2 Year 3 Year 4 Year 5 A. Investment
1. Total Investment 75.18 2. Less Margin Money 5.28
Net Investment (1-2) 69.89
B. Net Inflows
1. Net Profit after Tax 49.15 52.68 57.54 57.79 58.66 2.
Depreciation 6.61 6.61 6.61 6.61 6.61
Total 55.76 59.29 64.15 64.40 65.27
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Cumulative 55.76 115.05 179.20 243.60 308.87
Pay back period { 69.89 - 115.05 } (45.15)
2.00 + ---------- ------- -------- = --------
{ 179.20 - 115.05 } 64.15
= (0.70)
2.00 + (0.70) = 1.30 Years