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Business Plan-Ecofriendly Paper Bags
Business Plan-Ecofriendly Paper Bags
Eco-friendly
increasing awareness of hazards of
plastic
Ban imposed on plastic bags in many
states
Current fashion trend
Executive Summary
Company: Eco Fashion Bags Pvt. Ltd.
Product: Paper bags
Clients: Malls, Departmental stores,
Super
Markets, Gift shops, etc.
No. of Promoters: 11
Contribution of each promoter: 200000
Rs.
Target market: 6 cities of Maharashtra
Projected sales: 7200000 units p.a.
Company Profile
Vision
To become a proactive , integral and
responsible member of our
environment and community, making
us a strong global supply base for
world class products.
Mission
To constantly grow the customers by
designing superior and cost effective
product through contribution of ideas.
Values
Excellence
Integrity
Passion
Teamwork
Commitment
Company
Logo
Product Profile
Products range:
The bags of six sizes are being manufactured,
Size ranges from;
1824 to 4050.
We can also manufacture bags according to the
customers specifications & requirement.
Product strength:
All our product having good busting strength and
it is between 18- 36 g/inch.
Product quality:
Manufacturing superior quality products.
Purchases reputed supplier.
Product price:
Our price range is between 3 to 10 Rs.
Input risk
Input price increases
Labor strikes
Key employees leave
Supplier fails
Operational Risk
Machinery breakdown
Product defect increases
Inventory Obsolescence
Regulatory Risk
Environmental law change
Price support ends
MARKETING PLAN
EXECUTIVE SUMMARY
Target the big cities of Maharashtra like Mumbai, Pune, Nagpur,
Nasik, Aurangabad and Kolhapur
Current demand of the product in six cities is around
40lakhs/month and is expected to go high
Consumer acceptance and brand recognition are the major
barriers
USP is excellent service, quality products at a reasonable price,
transportation network and sales force capabilities
SWOT
Strength:
Low cost with high quality.
Dedicated & punctual staff.
On time delivery.
Favorable access to distribution networks.
Weaknesses:
Entry.
Inexperience.
High cost structure.
Limited area of operation.
Not able to enjoy economy of scale.
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Opportunities:
Scope of export.
Large market.
Changing of lifestyle/fashion.
Environmental conscious customer.
Threats:
Large number of competitors.
Threats of substitute product.
Highly sensitive & volatile market.
New regulation.
MARKETING STRATEGY
Marketing objective:
important domestic player in terms of market share
backward integration
expand business
Target market:
Our customers would be malls, multiplexes, hypermarkets,
supermarkets, departmental stores, speciality stores, gift shops etc
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Demand forecast:
The Demand of the product
in six cities would be around
40lakhs units/month.
Promotion:
Promotion strategies like;
Discounts
Salesperson incentives
Word of mouth and Friends network
Commission to sale person, credit to customers
catalogs
Contract with the NGOs working on environment friendly projects
like use of paper bags
Travelling and other incentives etc.
Strategies:
market penetration strategy
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Competitors:
A.L paper house, jaipur, Rajasthan.
Delhi paper bag manufacturer, Delhi.
Vishal paper bag company, Mumbai, Maharashtra.
Market research:
Primary data through buyers intention survey
FINANCIAL:
Break even analysis: Break Even Point
will be achieved in 10.6 Months
Sales forecast:
target sales would be around
6 lakhs units/month
CONTROLS:
Marketing organisation:
1 sales manager responsible for
the sale in six cities.
7 salesmen; 3 for Mumbai, 2 for Pune, 1 for Nasik and Nagpur and 1 for
Aurangabad and Kolhapur [first year]
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OPERATION PLAN
A) Plant Location:PATALGANGA MIDC (RAIGAD)
Maharashtra.
Distance from Mumbai is 75 kms.
Distance from Pune is 77 kms.
Size of land= 2000 Sq ft.
Approximate cost of land= Rs 540000
(270 Rs, per
Sq Ft).
Approximate construction
cost= Rs 510000.
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3) Eyelet Machine.
Cost of each machine= Rs 20,000/Production capacity =6000 bags per shift (8 hrs).
C) Plant Layout:D) Raw Material Requirement: For producing the paper bags the CRAFT
Paper is used as a raw material.
The required specification is in terms of
Busting Factor and GSM of the paper.
For producing the quality bags the
busting factor of the craft paper should
range between 18 to 36 gm/inch and
the GSM of the paper is between 120 to
400.
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Human Resource
2009-10
2010-11
2011-12
Finance
manager
Sales manager
Asst.Sales
manager
Salesman
10
12
Clerk
Manufacturing 3
Workforce Guard
No .of
position
2009-10
2010-11
2011-12
Supervisor
Skilled
Unskilled
12
Helper
Legal aspects.
Financial
Plan
Assumptions
Inflation rate may vary between 4%6%.
Sales target will be achieved
according market research and
production capacity.
Capital cost may vary but marginally
Financial policies
Depreciation -10%
Creditors.
Debtors .
Closing stock.
Short term investment.
Profit margin 6 %.
Capital
Capital Requirement
Particulars
Amount Rs.
Fixed assets requirement
Working capital requirement
Total
3973000
1702000
2271000
Capital sources
Particulars
Amount Rs.
Promoters contribution
Bank Loan
Total
4000000
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2200000
1800000
1st year
Direct cost
2nd year
3rd year
Administrative overheads
1758600
2207180
2704462
Selling overheads
2298600
3067180
4495318
3904462
7006646
30186600
1811196
2697190
4765037
4203987
7427044
31997796
4.45
4.00
4.15
Total Cost
Profit at 6 %
Sales
Selling Price Per Unit
1st year
2nd year
3rd year
31997796
47650371
74270448
4304044
5750696
8521470
120200
157180
141462
37500
37500
1831061
3255906
Indirect Income
Net Profit
1367808
1st year
2nd year
3rd year
Share Capital
2200000
2200000
2200000
Bank Loan
180000
1800000
1800000
Dividend
275000
825000
1100000
Fixed Assets
2821800
2664620
3873158
Current
Liabilities
6227484
6407509
4123651
Current Assets
8564489
9841757
13383268
2009-10
2010-11
2011-12
Total Inflow
40210839
74515952
109500464
Total Outflow
40190075
74453852
109473387
Net Inflow
20764
62100
29900
40162089
4490860
35671229
Ratio Analysis
Particulars
Current Ratio
Quick Ratio
Debt Equity
Ratio
Gross Profit
Ratio
Net Profit Ratio
Working Capital
TOR
Inventory TOR
2009-10
2010-11
2011-12
1.36 :
1.65 :
1.56 :
1
0.78 :
1
1.09 :
1
1.08 :
1
0.60 :
1
0.52 :
1
0.37 :
1
13.45
1
12.07
1
11.47
%
4.27
%
3.84
%
4.38
%
14.09
%
11.53
%
14.62
8.86
13.32
16.92
= 64,16,140 (units)
Thank You
???
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