This is a Business Plan for Plastic Recycling.

1. (Group B1)

3.  Name of the Firm : Go Green Recyclers
 Type of Firm : Proprietorship Firm
 Location : Silvassa, Dadar and Nagar Haveli (U.T)
 Web Site : www.gogreen.com
 Contact us : info@gogreen.com ,02603242732

4. 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.”

5.  According to CRISIL Research, 7360 companies (Plastic Recycling) with
an annual turnover of Rs. 9200 Cr. and employing 3.5 million people.
 Domestic demand for polymer grew by 13% and reached to 4.5 MMT in
the year 2009. During this period GDP grew by 6.3% and plastic industry
1.3 times of GDP.
 According to CRISIL demand will be 12 MMT by 2012 thus plastic
consumption is booming and this growth is driven by four major sectors
Packaging (15%), Plasticulture (14%) , Infrastructure (13%) and Consumer
Durables (10%).
 It is projected that because of this increase in demand the plastic waste
generation will reach to the level of 1.6 Million tons annually.
 Current recycling rate is 60% according to PLASTIC INDIA
FOUNDATION.

6.  India produces 500,000 tons of PET waste every year but only 145,000
TPA recycled, out of which Reliance Indst. Ltd (42,000 TPA), Ganesh
Polytex Ltd (39,600 TPA) and rest with other small players.
 Total demand for PP woven bags is 150,000TPA and expected increase in
Agricultural Production, Cement Prod. And other industries prod. Thus
there is growing demand for PP-Woven Sack recycled material.
 Increasing Crude oil prices have inflated the prices of Virgin Polymer/
Plastic material thus processors are finding margins through use of
recycled material as raw material with virgin material.
 Its going to help our country in Inclusive growth by generating income and
opportunities for poor people like rag pickers and others who is struggling
for three times food.
 Recycling reduces green house gas emission and also saves earth and
living being from hazards created by this non degradable waste.

7.  Silvassa , Dadar and Nagar Haveli is surrounded by state of Gujarat and
Maharashtra which are having healthy position economical and industrial.
 It is at almost equal distance from Mumbai, a business/ economic capital of
country and Surat a business/ economic capital of Gujarat.
 Silvassa is just 30 Km away from West Sea coast and the nearest railway
station is Vapi on western railway which is just 15km away and it is also
well connected by National highways, thus better Sea, Road and Rail
transportation facility.
 Very good network of electricity which is made available by CENTRAL
GRID and that to with uninterrupted supply at very cheap rate which is
very less compared to adjoining areas and states.
 At present newly established unit will get benefit of central sales tax
exemption which is available up to the year 2017.
 Good law and order maintained by the Government there.
 In Mumbai total plastic waste generated is 500 tons per day

9. • Manufacturing/ Recycling Unit : 1
 No. of Production Unit : 2 (1 for PET and 1 for Woven)
 No. of Ware house : 4 (2 for RM and 2 for FP)
• Go-Green Outlets in Mumbai : 4
(Waste collection Centre)

10. JOB WORK
JOB WORK
FROM Plastic
FROM Plastic
PROCESSORS
PROCESSORS
GO-GREEN
RAGPICKERS KABADDIWALA (SORTING
AREA)
WAREHOUSE(RM)
GG OUTLETS
RAGPICKERS (WASTE COLLECTION GO-GREEN RECYLING LINE
CENTRE)
LINE1: PP WOVEN BAGS to GGPP PELLETS
LINE2: PET WASTE to GGPET FLAKES
WAREHOUSE(FP)
CUSTOMER

11. SORTING,
SHREDDERS
DELABLING PET FLAKES
PET SCRAP AND
AND
GRINDER
CLEANING
CLEANING
GG-PET ELECTROSTATIC Drying
&WASHING
FLAKES SEPRATOR Section
SECTION

13. SORTING,
CLEANING &
DELABLING
PP SCRAP GRINDER WASHING
AND
SECTION
CLEANING
Drying Section
GG-PP FEED HIGH SPEED ELECTROSTATIC
PELLETS EXTRUDER MIXER SEPRATOR
(Colour Added)

15. We will give Just in Time facility to our
customer that is they are not required to create
any inventory of recycled material , it will be
supplied as per their demand and requirement
in the Silvassa region.

16.  We will maintain proper quality standards as per specifications
given by ASTM standards.
 To maintain the quality, a good quality control team will be
formed for maintaining the product quality by proper On-Line
and Off-Line testing.

18. PRODUCT USE & BRAND NAME LOGO
APPLICATION
PET-FLAKE It can be used as Raw GG-PET FLAKE
Material by PET
bottle manufacturer, in
the form of fibers by 1
textile industry, as raw
material in Road
construction etc.
PP-PALLETS It can be used in GG-PP
manufacturing of PALLETS
Woven bags, carry
bags and various film
grade items etc. 5

19.  COMPETITION BASED PRICING
JOB WORK AT DISCOUNTED RATE FOR PLASTIC PROCESSOR
1 5
GG-PET FLAKE GG-PP PALLETS

20.  Go-Green Recycler is located in Silvassa region and it has
good market coverage in Maharashtra and Gujarat region
which are economic capitals of our country.
 Good warehousing and inventory management enables Go-
Green to offer JIT facility to the customers located in near by
regions of Silvassa.
 Better transportation facility strengthens its dispatch efficiency
leading to timely deliveries.

21.  Go-Green Recycler business model is based upon B2B
marketing so we will promote our brand through following
promotional ways so as to reach our prospect buyers:
 Company Website (www.gogreen.com)
 Advertisements in www.plastmart.com , Magazines like India
Plast vision, Social networking websites like Linked In, Pop
off messages etc.
 Sponsoring events like Plast India Trade Fairs
 Direct Marketing through sales force.

22.  Go-green has segmented the market on the basis of :
 Type of industry (or type of customer).
 Company Size (or usage rate)
 Customer Location (or geographic area)
 End-use or application (or benefit of products)
 Purchasing Criteria

23.  Targeted segment for GG-PET Flake :
 Fibre manufacturing companies .
 PET sheet manufacturing companies.
 Strap manufacturing companies.
 Foamed Containers.
 Bottle for non food contact.
 Injection moulding comp (Automobile)
 Targeted segment for GG-PP Pallets:
 Woven sacks manufacturing companies.

24. Go-green Recycler will position itself in minds of its customer
based upon following major attributes of differentiation:
 Product Variable : Providing quality recycled plastic
material following the ASTM standards.
 Service Variables : Go-green is the only provider of J.I.T
service for recycled material not only in Silvassa region but
also in India.
 Personnel Variables : We recruit better people by strict
recruitment policy.
 Image Variables : “Quality recycled material with J.I.T
services .”

25.  Major competitors in PET recyling :
 Reliance Industries Ltd.
 Ganesh Polytex Ltd.
 Small and Medium scale PET recyclers.
 Major competitors in PP Woven Sack recycling:
 Surya Polymers Pvt Ltd.
 Shivom Polymers Pvt Ltd.
 Vinayak Extrusion Pvt Ltd.
 Maurya Packaging Pvt Ltd.
 Royal Touch Paks Pvt Ltd.
 Small and Medium recyclers.

28. MD/CEO
MANAGER MANAGER
MANAGER (P) MANAGER (Q) (HR)
(ADMN.))
ENGNR. (P) ENGNR. (Q) SALES(E)

29. DEsiGnATion no.oF PERsonnEL sALARY(in Rs/MonTh)
MD/CEO 1 50,000
MANAGER(P) 1 30,000
MANAGER(Q) 1 25000
MANAGER(ADMN.) 1 22,000
MANAGER(HR) 1 20,000
ENGINEER(P) 6*15,000 90,000
ENGINEER(Q) 1 12,000
SALES(E) 3*10,000 30,000
ACCOUNTANT 2*8000 16,000
RECEPTION 1 8,000
SUPERVISOR(Q) 2*8000 16,000
SKILLED OPERATOR 9*7,000 63,000
UNSKILLED OPERATOR 8*5,500 44,000
GUARD 9*6000 54,000
SERVICE BOY 3*5,500 16,500
DISPATCH AND SUPPLY 2*7000 14,000
CASHIER(GG OUTLELS) 5*6000 30,000
UNSKILLED LABOUR 5*5500 27,500

30. Internal Source
• Job Posting
• Promotions and internal transfers
External Source
• Advertisements
• Recruitment Firms

31. Types
• Induction training
• On the job training
Key Areas
• Personal protective equipment
• Manual handling
• Workplace transport

32.  Providing adequate personal protection equipment -
safety glasses, ear protection
 gloves, hard hats
 protective footwear
 back-support belts, dust masks.
 Equipped with emergency power-cut-off switches

33.  In case of minor accidents
 In case of major accidents
 Relief by transferring

34. FinAnCE

35. PET
Production Of 10 TON / DAY
300 TON / MONTH
1 Ton = 1000 KG
300 Ton = 300000 KG
Selling Price @ 35 / Kg
300000 * 35 = 105,00,000 / month
105,00,000 * 12 month = 12,60,00,000 /
Year
PP
Production Of 12 TON / DAY
360 TON / MONTH
1 Ton = 1000 KG
360 Ton = 3,60,000 KG
Selling Price @ 30 / Kg
3,60,000 * 30 = 108,00,000 / month
108,00,000 * 12 month = 12,96,00,000 /
Year

36. Cost of RAW MATERIAL Kabbadiwala Rag Pickers
PET Rag Pickers
40%
Kabbadiwalla 60 % @ 12 / Kg Kabbadiwala
1,80,000 Kg * 12 = 21,60,000 / month 60%
Rag pickers 40 % @ 8 / Kg
1,20,000 Kg * 8 = 9,60,000 / month
31,20,000 / month * 12 month = 3,74,40,000 / Year
PP
Kabbadiwalla 60 % @ 15 / Kg
2,16,000 Kg * 15 = 32,40,000 / month
Rag pickers 40 % @ 10 / Kg
1,44,000 Kg * 10 = 14,40,000 / month
46,80,000 / month * 12 month = 5,61,60,000 / Year
TOTAL COST = 9,36,00,000 / Year

37. Project Requirement
Land 8000 sq. mt @ 1250 / sq. mt = 1,00,00,000
Building = 75,00,000
Plant & Machinery
PET Assembly Line 40,00,000
PP Assembly Line 50,00,000
5 pc Weigh Machine 1,50,000
DG Set 4,00,000
2 no. Old Truck 8,00,000
Loose Tools 1,50,000 = 1,05,00,000
Furniture & Fixture = 10,00,000
TOTAL FIXED ASSETS = 2,90,00,000

38. Schedule of Working Capital
Current Assets
Inventories ( 1 day )
PET 3,74,40,000
PP 5,61,60,000 = 9,36,00,000
Cash = 10,00,000
Debtors = ------------
--------------------
Gross Working Capital = 9,46,00,000
Less: Creditors = ------------
--------------------
Net Working Capital = 9,46,00,000 Rs.

39. SCHEDULE OF FIXED ASSETS
Under Written Down Value Method
ASSETS RATE OF GROSS BLOCK DEPRECIATION NET BLOCK
DEP.(%)
LAND _ 1,00,00,000 _ 1,00,00,000
BUILDING 10 75,00,000 7,50,000 67,50,000
PLANT & 20 1,05,00,000 21,00,000 84,00,000
MACHINARY
FURNITURE 15 10,00,000 1,50,000 8,50,000
&
FIXTURES
TOTAL _ 2,90,00,000 30,00,000 2,60,00,000

40. MEANS OF FINANCE
PARTICULARS AMOUNT (Rs)
OWNER’S FUND 90,00,000
LONG TERM LOAN 2,00,00,000
WORKING CAPITAL LOAN 9,46,00,000
TOTAL 12,36,00,000

41. COST OF THE PROJECT
PARTICULARS AMOUNT (Rs)
LAND 1,00,00,000
BUILIDING 75,00,000
PLANT & MACHINARY 1,05,00,000
FURNITURE & FIXTURE 10,00,000
INVESTMENT IN WORKING 9,46,00,000
CAPITAL
TOTAL COST OF PROJECT 12,36,00,000

42. REPAYMENT OF LOAN
@ 12 % for 2 years
Quarter PRINCIPAL INSTALMENT INTEREST
1 2,00,00,000 25,00,000 24,00,000
2 1,75,00,000 25,00,000 21,00,000
3 1,50,00,000 25,00,000 18,00,000
4 1,25,00,000 25,00,000 15,00,000
5 1,00,00,000 25,00,000 12,00,000
6 75,00,000 25,00,000 9,00,000
7 50,00,000 25,00,000 6,00,000
8 25,00,000 25,00,000 3,00,000

43. PARTICULARS 2011 2012 2013
A.REVENUES
Sales 25,56,00,000 28,11,60,000 30,92,76,000
other income 0
TOTAL REVENUE 25,56,00,000 28,11,60,000 30,92,76,000
B.EXPENSES
RAW MATERIAL 9,36,00,000 10,29,60,000 11,32,56,000
SALARY & WAGES 71,46,000 78,60,600 86,46,660
ELECTRICITY EXPENSES 1,80,000 1,98,000 2,17,800
ADMINISTRATIVE EXPENSES ( 3 % ) 76,68,000 84,34,800 92,78,280
SELLING & DISTRIBUTION EXP ( 10 % ) 2, 55,60,000 2,81,16,000 3,09,27,600
PACKAGING COST (1 .5 % of sales ) 51,12,000 56,23,200 61,85,520
AUDITOR FEES 1,00,000 1,10,000 1,21,000
INSURANCE COST 20,00,000 22,00,000 24,20,000
ADVERTISEMENT & PROMOTION 2,00,00,000 2,20,00,000 2,42,00,000
REPAIRS & MAINTAINANCE 20,00,000 22,00,000 24,20,000
TOTAL EXPENSES 16,33,66,000 17,97,02,600 19,76,72,860
EBIDTA 9,22,34,000 10,14,57,400 11,16,03,140
INTEREST @ 12 % 78,00,000 30,00,000 0
DEPRECIATION 30,00,000 24,82,500 20,59,875
PBT 8,14,34,000 9,59,74,900 11,36,63,015
Less: Income tax exempted as of SEZ 0 0 0

44. Projected Fund Flow Statement
FUNDS FLOW STATEMENT
AMOUNT ( Rs) AMOUNT ( Rs )
PARTICULARS AMOUNT(Rs.) 2011 2012 2013
(A) SOURCES OF FUND
LONG TERM LOAN 2,00,00,000 1,75,00,000 1,50,00,000
10,40,60,000 10,51,00,600
WORKING CAPITAL LOAN 9,46,00,000
OWNER INVESTMENT 90,00,000 90,00,000 90,00,000
FUNDS FROM OPERATION 8,44,34,000 9,84,57,400 11,57,22,890
TOTAL (A) 20,80,34,000 22,90,17,400 24,48,23,490
(B) APPLICATION OF FUND
INVESTMENT IN FIXED ASSETS 2,90,00,000 2,60,00,000 2,35,17,500
INVESTMENT IN WORKING CAPITAL 9,46,00,000
10,40,60,000 10,51,00,600
INVESTMENT IN PRLIMINARY
EXPENSES 0
0 0
REPAYMENT OF LOAN 1,00,00,000
1,00,00,000 0
TOTAL (B) 13,36,00,000
14,00,60,000 12,86,18,100
CASH (A-B) 7,44,34,000
8,89,57,400 11,62,05,390
TOTAL 20,80,34,000

45. Projected BALANCE SHEET
BALANCE SHEET
AMOUNT ( Rs) AMOUNT ( Rs )
PARTICULARS AMOUNT(Rs.) 2011 2012 2013
SOURCES OF FUND
OWN FUND 90,00,000 90,00,000 90,00,000
9,59,74,900 11,36,63,015
CREDIT BALANCE OF P / L 8,14,34,000
LONG TERM LOAN 1,00,00,000 0 0
WORKING CAPITAL LOAN 9,46,00,000 10,40,60,000 10,51,00,600
SUNDRY CREDITORS 0 0 0
TOTAL (A) 19,50,34,000 20,90,34,900 22,77,63,615
(B) APPLICATION OF FUND
NET ASSETS (Less Depreciation ) 2,60,00,000 2,35,17,500 2,14,57,625
WORKING CAPITAL 9,46,00,000
9,65,60,000 9,75,00,600
PRLIMINARY EXPENSES 0
0 0
CASH BALANCE 7,44,34,000
8,89,57,400 11 ,62,05,390
TOTAL (B) 19,50,34,000
20,90,34,900 22,77,63,615

46. Ratio analysis
Net profit ratio = Net profit after tax x100 = 8,68,34,000 x 100
Sales 25,56,00,000
= 33.9726 %
Debt equity = long term debt = 2,00,00,000
Owners fund 90,00,000
= 2.222 %
Interest coverage Ratio = EBIT/Interest
8,92,34,000 = 37.18%
24,00,000

47.  www.google.com
 www.slideshare.com
 Crisil Research Report
 Plast India Vision Magazines
 The Economics Times
 Business standard
 www.plastmart.com