1. GROUP 22
ANKUR VERMA
BALVINDER SINGH
SHIVAM GOYAL
PRATEEK DAHIYA
RAJAT

2. 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.

3. 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)

4. 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.

5. 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.

6. 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.
 Company may not meet environmental standards
 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

7. 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.

8. Region wise and polymer wise turnover of
recycling industry (in INR Crore)
Region PVC PET
West 156 383
East 75 86
North 338 158
South 111 139
Total 680 766

9. 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.

10. 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.

11. 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

12. 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.

13. 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.

14. MARKETING STRATEGY
 The Company has chosen to focus on the production
of plastic packaging materials from recycled post-
consumer 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.

15. 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. 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 Year 2 Year 3 Year 4
Annual
sales 1620000 2106000 2737800 3559140
Monthly
sales 135000 175500 228150 296595
PET Sales 94500 122850 159705 207617
Household
items 40500 52650 68445 88978.5

21. 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

22. 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)

23. 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

24. 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.

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

26. 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.

27. Stages of Recycling and
Production
 Sizing / Chipping
 Cleaning
 Segregation.
 Agglomerating / Colouring
 Extrusion / Palletisation
 Fabrication into end Product.

28. 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.

29. 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.

30.  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.

32. FACILITY LAYOUT

33. Financials
Start-up
Requirements Amount
Start-up Expenses
Legal 6,000
Stationery 500
Business Cards 500
Initial Mailing 100
Process Funding 400
Office Equipment 2,500
Total Start-up Expenses 10,000
Start-up Assets
Cash Required 1,00,000
Other Current Assets 0
Long-term Assets 33,30,000
Total Assets 34,30,000
Total Requirements 34,40,000

34. BALANCE SHEET
Sources of Funds Year-1 Year-2 Year-3 Year-4
Capital
Owner's capital 1930000 1930000 1930000 1930000
Surplus -136350 -68451 130274 765287
Net worth 1793650 1861549 2060274 2695287
Long Term loan
Loan 1417302 1324116 1219111 1100789
Current Liabilities
Creditors 70500 56722 68066 81680
Total liabilities 3281452 3242387 3347451 3877756
Application of fund
Plant & M/C 3030000 2727000 2454300 2208870
Less depreciation 303000 272700 245430 220887
2727000 2454300 2208870 1987983
Land 300000 300000 300000 300000
Actual Fixed Asset 3027000 2754300 2508870 2287983
Current Assets:
Inventory 97200 315900 410670 821340
Bank 10000 40000 100000 100000
Debtors 147252 132187 117911 232703
Advance to suppliers’ 0 0 210000 335730
Investment 100000
Total Assets 3281452 3242387 3347451 3877756

35. BREAK EVEN POINT
VC Amount in Rs FC Amount in Rs
Admin 3000
otherexp 6000 Interest 175550
transportation 96000 advertisement 6000
telephone 10000 Insurance 20000
wages 119250 Salary 192000
carriage inward 238500 Rent 24000
power 119250 maintenance 15000
raw material 414000 depreciation 303000
Legal 10000
total 1003000 Total 748550
contribution 617000
pv ratio 0.3808642
BEP units 1965398.703 135000
BEP SALES 15 in months
1.21 In years

36. 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.

37.  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.

38. Thank you