TABLE OF CONTENT

EXECUTIVESUMMARY……………………………………………………………4
COMPANY OVERVIEW……………………………………………………………5
MISSION……………………………………………………………………………….5
MARKET
PRODUCT…………………………………………………………………….………..6
OBJECTIVE……………………………………………………………………………..6
KEY TO
SUCCESS..………………………………………………………………………………
………………………………………..6
PRODUCT AND
SERVICEDESCRIPTION………………………………………………………………
…………………..7
MARKET
COMPARISON………………………….………………………………………………
……………………………………7POSSIBLE
OBSTACLES…….………………………………….……………………………………
…………………………………..7
INDUSTRY AND MARKET PLACE
ANALYSIS………….………………………………………………………………….9
INDUSTRY
ANALYSIS……………………………………………………..…………………………
………………………………….6MARKETPLACE
ANALYSIS…………………………………………………………………….…………
…………………………..6
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QuasarPlastics
CUSTOMERANALYSIS………………………………………………………………
…………………………………………….…11COMPETITORANALYSIS…………
……………………………………………………………………………………………
……12
MARKETING
STRATEGY………….…………………………………………………………………
…………………………12
PRODUCT
SERVICE STRATEGY..………………………………………………………………
…………….………………….13PRICING
STRATEGY…………………………………………..…………………………………
……………………………….…13DISTRIBUTIONSTRATEGY……………………
……………………………………………………………………………………13ADV
ERTISEMENT
AND PROMOTIONSTRATEGY………………………………………………………
……………….13SALESSTRATEGY…………………………………………………
……………………………………………………………………13SALESFORECAST
……………………………………………………………………………………………
…………………………13
DEVELOPMENT………………………………………………………………………
………………………………………….14
DEVELOPMENT
STRATEGY….……………………………………………………………………………
……………………….14
MANAGEMENT…….…………………………………………………………………
………………………………………….155 |
QuasarPlastics

OPERATIONS….………………………………………………………………………
…………………………………………..16
SCOPE
OFOPERATIONS………………………………………………………………………
……………………………..…….20SUPPLY
CHAIN………………..…………………………………………………………………
………………………………………21PROCESS
FLOWCHART………………………….…………………………………………………
……………………………….22GANTTCHART………………………………………
………………………………………………………………………………….23FACIL
ITYLAYOUT……………………………………………………………………………
………………………………………..24
FINANCIAL
STATEMENT………………………………….………………………………………
…………………………..25
STARTUPEXPENCES…………………………………………………………………
………………………………………………25INCOMESTATEMENT………………
……………………………………………………………………………………………
….26BALANCE
SHEET……………………….……………………………………………………………
……………………………….…27BREAK
EVENPOINT……………………………………………………………………………
…………………………………….28
APPENDIX………………………………………………………………………………
………………………………………….296 |
QuasarPlastics

Bibliography………………………………………………………………………………
………………………………………33

Executive summary
Plastic is the basic need of our day to day life. During recent years the
plasticindustry has grown with a substantial growth rate. This growth is driven by
threesectors viz packaging, infrastructure and agriculture. There are the v
ariousverities of plastics out of which PVC (Polyvinyl chloride) and PET
(Polyethyleneterephthylene) plastics have their considerable contribution.
PET plastics aregenerally used in the manufacturing of beverage bottles for the
packaging andPVC plastic is used in the production of household plastic materials. The
growingutilization of plastics in industrial and consumer applications and
surroundingsolid waste recycling, has led to an increased demand for recycled
plastic resinsand products.We the Quasar plastics provide a wide range of plastic
solutions for householdand raw material for packaging of various companies. As a
part of our ongoingefforts to exploit this opportunity we will recycle the
plastics and then producekitchen ware items and other related
plastic material. We will also sell
ther e c yc l e d p l a s t i c s t o t h e c o mp a n i e s i n t h e p l a s t i c b u s i n e s s . We
w i l l h a v e a recycling plant along with the production unit. The raw material will
be procuredfrom the waste collectors. The raw material will be post
consumed beveragebottles and other soft plastic materialsOur main focus is our industrial
customer whom we will sell PET bottles and PETflakes. It will contribute more than
60% of our sales. We will also focus on thehousehold plastic business
which is the part of our portfolio. The initial set upcost will be Rs 34,
40,000.Quasar plastics will be a solution proprietorship business run by the
promoter Rajnish Kumar Chaubey who is a MBA graduate with finance and
marketing asspecialization.Since plastic material does not carry any brand name so it will give
us an additionbenefit in long term to establish our brand name. To exploit the market
we
willu s e p e n e t r a t i o n p r i c i n g a s o u r ma r k e t i n g s t r a t e g y a n d u t i l i z e o
u r s t r i n g e n t distribution network and strong industrial relationship.As a future plan in
coming years we will increase the variety of plastics like LDPE(Low density polyethylene)
and HDPE (High density polyethylene). By doing thiswe will be able to produce
plastic carry bags and raw material for production for plastic chairs and tables and other
fiber based products.
COMPANY OVERVIEW
Quasar Plastics provide a wide range of plastic solutions for households and rawmaterial for
packaging to the various companies. Allahabad is the place wherethe facility will be
established and other operation will commence.We will collect the plastic garbage like
consumer beverage bottles, plastic
bagsf r o m v a r i o u s g a r b a g e s t o r e s a nd t h e n o u r r e c yc l e u n i t wi l l p r o
c e s s i t wh i c h eventually be used for the production of finished goods.The plastic
garbage we are getting as raw material has two components one isPVC (Polyvinyl
chloride) and other is PET (Polyethylene terephthylene ). Firstlythe whole garbage
is melted and then PVC and PET are separated from eachother by froth flotation
technique.
We will create a plant (actual facilities to be shared with the recycling
unit) tomanufacture extruded plastic flakes (purified plastic). The extruded plastic is
thenmolded in the various products.We will produce two types of replay plastics
•
PVC( Polyvinyl chloride)
•
PET( Polyethylene terephthylene )
Mission Statement
Quasar Plastics
•
Strive to provide the excellent plastic solution
to the customers atcompetitive prices.
•
Continually expands our range of products.
•
Is poised to service both large and small customers
.
Markets and Products
T h e p l a s t i c p r o du c t s u s u a l l y d o n o t
c a r r y a b r a n d n a me s o i n t r u d i n g i n t h e business like plastic will not be too hard
with low price strategy. The population of Allahabad and the cities around it like
Varanasi, Gorakhpur, Johnpur is around3Cr. and this area is basically comprises of
low to middle income group familiesso they focus on plastic products rather than
fiber since it is a cheaper. Hence itis huge market to exploit.From Allahabad city
500 tons of solid waste is produced from that 15tons of plastic bags and
around 7 tons of plastic bottles is generated per day. So thesupply of raw
material will be continuous.Ap a r t f r o m t h i s w e wi l l s e l l r a w ma t e r i a l f o r
p a c k a g i n g t o t h e v a r i o u s s ma l l companies in this area. Around
30 small and medium scale companies areworking in this region. So a large amount
of industrial customer is also available.There are two folds of products that we are
providing one is industrial and other is household.
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QuasarPlastics

Objectives
•
Develop a business that survives on its own cash.
•
Create a company which exceeds customer satisfaction level.
•
Expand the service to whole UP in first five years and then to Delhi.
•
Extending the services to electronic component manufacturing companiesfor production of
capacitors printed circuit boards etc.
Key to success
:
The main keys to the success of the Company are:
•
Secure Supply- Contract for supply of post-consumer bottles and post-
industrial manufacturing waste for PET raw material feed stock.
•
Satisfy our customer so that we can retain them
•
Maintain low overhead and operating costs
•
Provide better prices than all our competitors
Product and services
We will provide a wide range of plastic products for households and raw
materialfor packaging.The recycled plastic is processed to Polyethylene
Terephthalate (PET). PET is athermoplastic polymer viscous of polyester family.
The biggest property of thiscompound is it transparent. This is the reason why it is used for
packaging. Apartfrom this

PET have good

strength, ductility, stiffness and hardness. After therecycling process
completed an extruded plastic is generated. Plastics extrusionis a high volume
manufacturing process in which raw plastic material is meltedand formed into a
continuous profile.
The products we are producing are
•
Cleaned and recycled plastic flakes of PET and bottles, recovered frompost-
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 are manufacturing plastic tubes of various
diameter, plastic kitchen ware. ( for the end user)
PET flake will be sold to thermo formers (those who mold plastic sheets
intousable products) primarily to be used to produce high-visibility packaging.
Andalso to the beverage companies for packaging.Recycled plastic is widely used in
mainstream construction products such asdamp proof membrane, drainage
pipes, ducting and flooring. Bins, street signsand planters are frequently made
from plastic. They are cost competitive andresistant to damage.
Local authorities and schools are able to demonstraterecycling in action by
specifying recycled productsHigh strength PET is used in the clothing,
furnishings, tyre cord and technicaltextilesApart from PET the household
plastic will be directly sold to the end
customers.I n d a y t o d a y l i f e p l a s t i c i t e ms l i k e wa t e r
b o t t l e s , s h o p c a s e s c r u b b e r e t c i s frequently used. So there is a big demand of
these in local market.
Market comparison
While quality and delivery are important factors to our potential clients, price
ismost often the determining factor in a buying decision. Good-quality
packagingp r o d u c t s ma n u f a c t u r e d f r o m r e c yc l e d ( l e s s e x p e n s i v e ) r e s
i n s , a s c l o s e a s practical to the end customer's operations, will be most
competitive and achievea significant market share. These factors have helped
to determine the businessparameters of Replay Plastics.
Possible obstacle
The product is completed and ready for the market launch.
T h e p o s s i b l e obstacles are
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 beveragebottles. 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 t e c h n i c a l l y f e a s i b l e a n d e c o n o mi c a l l y v i a b l e s o
l u t i o n s t o P E T p l a s t i c beverage bottle recycling, as well as environmentally
aware in-house re-use practices which filter and return nearly all of the process
water to theproduction lines

Industry and marketplace analysis

Industry analysis
Plastic recycling is an industry in itself in India. According to the Crisil
research7360 companies are working in this industry with a turnover of Rs
9200
Crorep r o v i d e s e m p l o y m e n t t o 3 . 5 m i l l i o n p e o p l e . I n I n d
i a p e r c a p i t a p l a s t i c consumption in lowest in the world. The per capita
consumption is just one fifth of world average which is 5kg. the domestic demand of
plastic has grown by 9%and reached to 4.5MMT in year 2005.The GDP has grown
during this period at6.3% and plastic industry 1.3 times of GDP. According
to the Crisil report thedemand of plastic by 2012 will be around 12MMT. The
plastic consumption inIndia is booming. Demand for commodity plastics is
growing at the rate of 15%per year. .India holds immense potential for the use of plastic in
the infrastructureand agriculture. In case of packaging industry we are using more
plastic than thedeveloped countries. The growth is driven in three major sectors –
infrastructurewhich is 13%% of the total, packaging is 15% of the total and
10% for plasticconsumer durables. It is projected that the plastic waste generation will
reach thewill reach the level of 1.6 million tons annually.India produces 5600 tons of plastic
waste per day.Region wise and polymer wise turnover of recycling industry in
Rs.CroreR e g i o n
P V C P E
T W e
s t
1 5
6 3
8 3
E a
s t
7 5
8 6
N o r
t h 3
3 8 1
5 8 S
o u t
h 1 1
1 1 3
9 T o
t a l
6 8 0
7 6 6 Each
region is specialized in one type of plastic viz south: PET; north:
PVC;T h e c u r r e n t p l a s t i c r e c y c l i n g r a t e i s e s t i m a t e d a s 6 0 % b
y P l a s t i c I n d i a Foundation. One estimate is that about 20,000
microenterprises are engaged inreprocessing and recovery of plastic waste in
addition to 180,000 of
variouss o r t i n g a n d w a s h i n g u n i t s , 6 0 % o f wh i c h a r e u n r e g i s t e r e d .
D e l h i a l o n e h a s estimated 53,400 units and Delhi and Bombay together
process over 50% of India's waste plastics.
12 |
QuasarPlastics

STRUCTURE OF THE PLASTICS INDUSTRY

The following pattern is likely to be general but there will be some variation fromcountry to
country.

Raw Material Producers

These are chemical and petroleum companies who produce "virgin" plasti
c(sometimes called resin or polymer) in huge quantities. The main influence
theyhave on the recycler is to fix prices and availability
of virgin materials. Virginmaterial is delivered in powder or pellet form, in
plastic or paper sacks of around20 kilos weight, in large cardboard drums that hold
many times that quantity or even by road tanker.

Compounders
These specialist companies, usually small, stock various polymers and providethe
manufacturers of plastic goods with technical advice and the most
suitablematerials or mixtures for each individual need. The compounder is
often the bestmarket for the recycler because he possesses superior technical
knowledge andhas a large volume throughput of virgin material, in which small
percentages of reclaim will reduce cost without seriously affecting the
quality required by themolder.

Stockists
These warehouses stock polymers and compounds but neither manufactur
et h e ms e l v e s , n o r p r o v i d e a c o mp o u n d i n g s e r v i c e . T h e y ma y b e a g
e n t s o r subsidiaries of the producer companies or departments of companies concernedwith
the supply of other materials such as chemical, rubber or paper. They maybe
willing to stock reclaim alongside virgin materials, especially if these are inshort
supply.
Specialist Manufacturers or Molders
These buy their raw materials from compounders. If they do
t h e i r o w n c o mp o u n d i n g , o r i f t h e ma t e r i a l i s u s e d a s p r o d u c e d a n
d d o e s n o t n e e d c o mp o u n d i n g , t h e y ma y b u y d i r e c t f r o m s t o c k i s t s
o r p r o d u c e r s . The y a r e specialists in plastics and do not perform other types of
manufacturing. They maybe an attractive market to the recycler because they operate
at high volume, butrarely have as much flexibility to vary product quality
as molders who know,accurately, the final market for the product.
Other Manufacturers
Many companies are not plastics specialists but employ molding operations inthe
manufacture of some other product. For example shoe and boot makers useplastics
extensively and may carry out the various plastics molding operations inthe same
production sequence as the work in leather, canvas, rubber etc. Many
13 |
QuasarPlastics

manufacturers use plastic packaging machinery at the end of a production

operation.
Fabricators
These firms cut and join sheet, rod or extrusion to manufacture a variety
of products. They have no opportunity to use reclaim. Machinery and Tool
MakersOne other sector of the plastics industry justifies mention although not customersfor
reclaim. The makers and suppliers of plastics manufacturing machinery, tools,moulds and
dies are well informed about who does what, who makes what andwho uses what
within the local plastics industry. They may advise who is likely tobuy material.
Marketplace analysis
Various overseas players wish to explore the Indian market and invest
inopportunities thrown open by the country, projected to be world number 3
inplastics consumption by 2010
.
As shown above the north region of India isspecialized 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
Customer analysis
S i n c e we a r e n e w p l a ye r i n t h e ma r k e t s o w e n e e d t o ma k e s o me
s t r i n g e n t strategies to penetrate market and grab customers. The customers of
the plasticindustry are scattered due to lack well known brand names. So our first
prioritywill be to accumulate the defused
customers.Th e d i r e c t c u s t o me r s a r e t h e c u s t o me r s wh o m w e a r e s e l l i
n g o u r p r o d u c t r e g u l a r l y. S o f o r u s h o u s e h o l d s wh o m w e a r e s e l l i n
g p l a s t i c g o o d s a n d companies who are getting raw materials for packag
ing are direct customers( P E T b o t t l e s) . S o o n l y i n Al l a h a b a d a r o u n d
2 0 ,0 0 0 f a mi l i e s a r e o u r d i r e c t prospective customers and in terms of
business to business market around 20small and medium scale companies are our direct
customersApart from them there are few small companies which are giving
compoundingservices. They use to collect various types of plastics flakes along
with the virginplastic and suggest customer (companies) in choosing appropriate
plastic. AnAsha enterprise is one compounder whom we will sell our plastics.
Competitor analysis
In plastic manufacturing market there is no specific brand name is existing so themarket is
flooded by small companies which are in this business. So they are our biggest direct
competitors.As we are also not alone as a supplier of PET to the companies as raw
materialsthere are many companies in this region which are supplying PET. Indira Plasticsis
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
plasticrecycling city of UP. The direct threat we will also have is with the
companiesoperating in Kanpur. But as the distance between Kanpur
and Allahabad is600km as well as the road is not in good condition, so it will not affect
much.
Marketing strategy
T h e C o mp a n y h a s c h o s e n t o f o c u s o n t h e p r o d u c t i on o f p l a s t i c p a
c k a g i n g materials from recycled post-consumer beverage bottles. we have
identified asignificant available market in the eastern part of UP. All of our initial
marketings t r a t e g y w i l l b e t o s e c u r e c o n t r a c t s i n t h a t s e g me n t , a n d a
f t e r r e a c h i n g f u l l 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, andwill focus on continually updating our production technology in an effort to
remainin the forefront of our chosen marketplace.
Product/ service strategy
The packaging companies require high quality
and highly transparent PETbottles. The companies which are producing mineral
water will reject PET bottleswith even a small impurity/ opaqueness. So we the
Quasar Plastics provide highend PET flakes for the perfect
packaging.Quasar Plastics will apply recycling and extrusion technology m
anaged bydecades of industry specific expertise to create a competitive advantage
for itsclients. These processes will produce clean, cost-efficient, recycled raw
materialfor manufacturers of thermoform, laminate and other high value-added
products,and high strength packaging strapping for shippers of large products and
pallets,t h e r e b y r e d u c i n g c o s t s a n d c r e a t i n g a c l e a r p r i c i n
g e d g e a m o n g t h e i r competitors
.
Plastic bags and plastic sheets are now in high demand. And this demand
isdriven by continuously increasing promotional activities.
Pricing strategy
As plastic products do not carry any brand name so only pricing and
distributionstrategies will works to achieve competitive edge. The pricing
strategy we willuse

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 willbe
lower than the competitors. A lower price enables me to get contracts of PETbottles
and sheets from various companies.In case of kitchenware and other household
products we will provide combooffers and discounts which a common customer
expects.
Distribution strategy
As I described before that firstly we will target Allahabad city and villages close toit. We
will have a distribution center in the Allahabad city which
continuouslymaintains the supply of goods. So the household plastics will be sold
throughsmall local grocery shops from which the customers can get them easily.
Apartfrom this we will hire street hawkers who will roam around the city and sell
thegoods door to door.PET bottles will be stored in warehouse which is close to the
facility itself. Thesales people will directly contact to the companies which require these
bottles for packaging and look for the contracts. In city as stated above that we will
have adistribution center, from that center we will distribute to whole sellers.
Advertising & promotion strategy
As I described we are in both B2C and B2B so for this we will use two
differentpromotional strategies. For B2C business we will use flyers which will
have fulldetail of our product range, price, combo offers and discounts. These
flyers willcirculate through the newspapers across whole city. For B2B business
we
willp r o mo t e t h r o ug h o n l i n e s o c i a l me d i a a n d we wi l l a l s o d e v e l o p
o u r w e b s i t e through which enable us to widely spread our contact among various
companies.the site will have full details of product which are available for
companies as wellas end user.
Sales strategy
The strategy of sales effort will be to convert potential and first time customersinto
long term customers. Our sales strategy is totally based upon the distributionchannel and the
pricing strategies. We will have a distribution centre in the
cityt h a t w i l l t a k e c a r e o f s a l e s o f h o u s e h o l d a n d a l s o s u p p l y
p r o d u c t s t o t h e wholesalers. We will also give the industrial customers
a facility to order theproducts through our website which will help them in reducing the
delivery time.To
market the products, the Company will use a number of sales
agents/brokers.T h e y h a v e a c u s t o m e r b a s e o f t h e i r o w n , h a v i n g d
e v e l o p e d s u c c e s s f u l relationships with their client over the years.
Their customer base is currentlydemanding product so they can expand upon
their current base. Of course, theywill expand that to new customers when product is
available.If the Company grows faster than its prime customer base, additional
capacitymay be developed. We will identify additional prospective customers who
can beattracted for our products
.

Marketing & sales forecast

The first month prior to the opening will be used to get the new office in order, setup
appointment and begin marketing activities. In the first month we will focus
onthe generating public visibility. The sales forecast is based on the assu
mptiont h a t w e wi l l s e l l a l l o f t h e h i g h e s t v o l u me P E T b o t t l e s t h a t
w e c a n p r o d u c e . This flake will be sold to other manufacturing companies.
Recycling industry isgrowing with 15-20% each year. So we can assume
that we will grow with
atl e a s t 2 0 % . T h e r e i s a c o n t i n u i n g s t r o n g d e m a n d f o r f l a k e
a n d e x t r u d e d products made from recycled PET.
Sales
forecasty e a r 1 y e a r
2 y e a r 3 y e a r
4 Annualsales
1 6 2 0 0 0 0 2 1 0 6 0 0 0 2 7 3 7 8 0 0 3 5 5 9 1 4 0
Monthlysales
1 3 5 0 0 0 1 7 5 5 0 0 2 2 8 1 5 0 2 9 6 5
9 5
PET Sales
9 4 5 0 0 1 2 2 8 5 0 1 5 9 7 0 5 2 0 7 6
1 7
Householditems
4 0 5 0 0 5 2 6 5 0 6 8 4 4 5 8 8 9
7 8 . 5
Development
The development of Quasar plastics required to accomplish a series of actionand
formalities. Since we are new in the market we kept our production is
lowinitially, as demand will increase the production will be enhanced
respectively.Now we are recycling and producing only two types of plastics i.e. PVC and
PET,as we grow we will produce a wide the range of plastics and its finished product. .The
development process involves following steps:
•
Legal formalities
•
Office/business setup
•
Future offerings and expansion plan
Development strategy
In future we are looking for the production of a variety of plastic. These
plasticswill be
•
LDPE ( Low density polyethylene)
•
HDPE ( High density polyethylene)
LDPE plastic is used in the production carry bags and other plastic sheets as wellas cling
wrap, car covers, squeeze bottles, liners for tanks and ponds, moisturebarriers
in construction. And HDPE plastics are used in production of freezer bags,
water pipes, wire and cable insulation, extrusion coating.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 thecurrent uninterrupted production of
PVC and PET and acquisition of customer asfast as we can, but we will also look for the
future expansion plan and executionstrategy.Our future development strategy will
focus on to chart out a careful plan for thefuture expansion and growth of our
business. The development strategy willaddress 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 businessOur development strategy will address all those
above mentioned point. Aswe will grow and our earning will increase, we will
produce more of PVC andPET as well as expand in new area. We have a
development strategy toexpand our facility size in order to meet the production size.
Management
The company will be managed by promoter and six supporting staff.Rajnish Kumar
Chaubey, a MBA graduate with specialization in Marketing
andF i n a n c e i s t h e o w n e r a n d p r o m o t e r o f Q u a s a r P l a s t i c s . H
e h a s i n t e n s i v e k n o wl e d g e a n d v a s t u n d e r s t a n d i ng i n f i n a n c i a l a r
e a s l i k e R i s k a n d R e t u r n management, Investment portfolio and Capital Budgeting,
which undoubtedly willbe of intense help in the business. Apart from this he also has
a good knowledgeof chemicals and their propertiesMarketing skills like convincing
power, negotiating ability, creating promotionalstrategies and sales skills will all
be extremely helpful in taking the business along way and will prove intensely
valuable to take Quasar Plastics to flaringheights.Thus with such potential
skills, and other qualities like efficient interpersonalskills, leadership
skills and decision making quality, aptly makes him the bestpromoter and
eligible founder and owner of Quasar PlasticsAlong with promoter five more
employees will work for the accomplishment of companies’ objective.
One supervisor will work on the facility along with twosupporting staff.
Supervisor who will work upon the facility does not need to be achemical
engineer a simple technician has experience on working upon thefacility can
be able to do this.
Job
descriptionP r o c e s s N o o
f e m p l o y e e s P r
o f i c i e n c y
S o r t i
n g 2 u
n s k i l

Process No. of employee Proficiency

Sorting 2 Unskilled
Belt conveyer 1 semiskilled
PET separator 1 semiskilled
Packaging 4 Unskilled

Operations
The operations is defined as the process used to deliver your products
ands e r v i c e t o t h e c u s t o me r ma r k e t p l a c e a n d a l s o i n c l u d e ma n u f a c
t u r i n g transportation logistics travel and after sales services.The facility is located at outside
the city. Facility is divided in two parts
•
Recycling and Production unit
•
WarehouseThe facility is located in an area of 3000 sqft..Apart from these two units
therewill be an office which will look for the perpetual supply of required raw
materialand also take care about the outbound logistics. The production
capacity is80kg/hr.The operations will be based upon JIT i.e. just in time. We will
have contractedwith the suppliers who can supply the raw material as quickly as
we want.
Ther a w m a t e r i a l c o n t a i n s p o s t c o n s u m e r b e v e r a g e b o t t l e s a n
d o t h e r p l a s t i c materials. The bottles and other plastic material that
can be recycled have aspecific sign from which it can be identified that it can be recycled
or not.The plastic is then transferred to respective unit to be recycled because PET andPVC
cannot be recycled simultaneously due to their different properties. Therewill be
two units running parallel to each other. On unit will recycle and producePVC
plastic and other will perform the same for the PET plastic.The recycled PVC
is then moved for the plastic injection molding unit in thevarious shapes.
Since there are a variety of product is being produced so thepreference will
be given to that product whose demand is high. All the productswill not be
produced each and every day. There will be different products whichwill be
produced on different day according to the demand in market.After the recycling process is
completed one part of PET flake is moved to thewarehouse according to the
demand of raw material which different companiesneed and other part will move for the
molding in bottles.
The recycled PET flake is then heated and made the viscous solution of it. ThePET
resin is then feeded to the molder and molder will give it various
shapeb o t t l e s . An d t h e n i t l e f t f o r d r yi n g . Th o s e p r od u c t s wh i c h f u
r t h e r n e e d f o r processing like buckets, the handle will be inserted after the bucket is dried.
Stages of Recycling and Production
The process of recycling of waste plastics into products of varying
usefulnessinvolves the following essential steps:
•
Sizing / Chipping
•
Cleaning
•
Segregation.
•
Agglomerating / Colouring
•
Extrusion / Palletisation
•
Fabrication into end Product.
Chipping:
The plastics waste is then required to be properly sized so that those may befed
into the extruders for processing and palletizing. The sizing
operationdepends on the type and shape of the waste plastics.During this process,
attention is required to separate any powdery materialfrom the sized / chipped plastics.
Segregation:
Certain polymeric materials are compatible with each other at all proportions.For
example LDPE and Lldpe are generally compatible to each other at
allproportions.The advanced technology of separating / segregating different
types of wasteplastics involves ‘Floatation Process’. In this
process the property of thevarying densities of different plastics is made use of
for segregating differenttypes of plastics.However in the Indian Context, this
separation or segregation process, inmany cases, are done by manual process
utilizing the availability of cheapand expert labor force. In case the
waste is contaminated with
embeddedme t a l s , p r o p e r me t h o d o f s e p a r a t i n g t h e me t a l s / o t h e r c o
n t a mi n a n t s i s required.
Cleaning:
The scale of cleaning depends on the type of waste. Whenever
a cleaningoperation is involved, it is to be ensured that the water or any other
cleaning
material used, should be discharged after ascertaining that the
dischargedoes not contain any objectionable substance. A proper Treatment
Devicemay have to be deployed – like a water treatment plant / effluent
treatmentplant. For drying, a suitably designed drier is used.Many industries situated outside
the metropolises, use open space for naturaldrying of the cleaned waste.
Agglomerating / Colouring
In the next operation the sized plastics waste is mixed with colour
master b a t c h i n h i g h -
s p e e d mi x e r s / a g g l o me r a t o r s a n d t h e o u t p u t i s r e a d y f o r extrusion
into pellets.
Extrusion / Palletisation
This is the most important part of the process wherein the sized /
chippedplastics are plasticized and granulated to make the plastics material ready
for fabrication next.The type and size of the Extruder depend on the type and
volume of theplastics waste.
Fabrication into end Product
F i n a l l y t h e r e p r o c e s s e d p l a s t i c s g r a n u l e s a r e u s e d a s r a w ma t e r i a l
f o r producing end products using similar fabrication machines like Injec
tionMolding / Extrusion etc., depending upon specific requirement
.
Scope of operations
Now presently our production capacity is 200kg/day from which in initial
stageswe a r e u t i l i z i n g a r o u n d 5 0 % o f i t . As t h e b u si n e s s
e x p a n d s w e wi l l r e a c h t o optimum capacity utilization. We are expecting that
we will start producing moreadvance plastics in the fourth year of our operations
and accordingly the saleswill increase and the facility will have to be expanded.
Supply chain
In the city there are various small post consumer plastic bottle collectors.
Tomake a continuous supply of raw material we will have four suppliers
with us.There will be one permanent supplier which will continuously
supply the
rawm a t e r i a l . I n c a s e o f e x c e s s d e m a n d o t h e r s u p p l i e r s
w i l l b e t a k e n i n t o consideration. The transportation cost will
be covered by supplier only. Thefinished product will be stored in the
warehouse and according to the demand itwill be send to city distribution centre.
The distribution center will directly sell thefinished household plastics as well as to the
small shops.

Our average daily demand of raw material is 300kg and the lead time we
willkeep lead time of 6hrs. We keep a safety stock of 50 kg. So the reorder point
isgiven byReorder point= average daily uses x lead time + safety stock

Reorder point = 300 X .25day + 50= 125 kg.So at each and every day we will have
minimum of 125kg (safety stock+ reorder point) of raw material in our inventory.
This means that when the raw material level reaches to 125kg we will
place the nextorder. The difference time in which we will place the order and
receive the order is thelead time which is 6hrs.

As it is an assembly line the output of one stage is feeded to the input of next stage.
Thewhole process will run in series format. That is the reason why
no parallel process ismentioned in the gantt chart.
Financials

The startup cost of our business is as follows

Requirement Amount
Startup expenses
Legal 6000
Stationery 500
Business card 500
Initial mailing 100
Process funding 400
Office equipment 2500
Total startup expenses 10000
Startup Assets
Cash required 100000
Other current assets 0
Long term assets 3330000
Total Assets 3430000

Total requirement 3440000