PROJECT REPORT

1. Introduction: -

Shree Durga Plastics has been promoted by Mr. Akhilesh Kumar to set up
Plastic Scrap Recycling Plant at Jalpaiguri District of West Bengal. This project will
come up at Fullbari, near Fullbari Cannal, P.S. Bhaktinagar, and District Jalpaiguri
on a land measuring 14 Kathas, which is nearly 8 km away from the town Siliguri.
Considering the importance of recycling of plastic scraps with regard to environment
we have decided to come up with this project to recycle the waste plastic scraps in
North Bengal Region. Trade license, NOC from West Bengal Pollution Control Board
and other legal formalities are in process and will be completed very soon. The
Residential Address of the Proprietor is located at Uttorayon – The New Township
UTC-030304 Efficiency and Comfort Complex, Matigara, Siliguri- 734428, West
Bengal, India.

Name of the Unit : SHREE DURGA PLASTICS

Status : Proprietorship Concern

Factory Address : Fullbari, Near Fullbari Cannal,

P.S. Bhaktinagar and District Jalpaiguri

2. Promoter & his back ground: -

Shree Durga Plastics is a Proprietorship Concern. Mr. Akhilesh Kumar, son

of Badri Prasad, is the Proprietor of the concern and belongs from a business family,
having wide business experiences. Mr. Kumar has been dealing in plastic scrap
since 5 years at Salbari Bazar, P.O.Sukna and has vast knowledge of the Scrap
business. Considering the growing importance of the town Siliguri in the entire North
Eastern State Mr. Kumar has decided to start his project at Siliguri Region.

3. Main features of the project: -

Recycling is the process of turning one products useful part into a new
product; this is done to conserve on the consumption of resources, energy and
space used in landfills. Recycling is a very environmentally green activity; By
recycling 1 plastic bottle not only saves anywhere from 100 to 1000 years in the
landfill but also saves the environment from the emissions in producing new bottles
as well as the oil used to produce that bottle. 
 For every1 ton of plastic that is recycled we save the equivalent of 2 people’s
energy use for 1 year, the amount of water used by 1 person in 2 month’s time and
almost 2000 pounds of oil. Plastics can be recycled and turned into many items from
clothing to lumber. Taking the responsibility of the consumer use is the only means
of avoiding plastics in the landfill. Most plastic products come with a code on the
bottom, this code determines if and how this product can be recycled. Before being
recycled the plastic is sorted by a Plastic Identification Code and number; there are 7
classifications for plastic. These classifications are used world wide along with the
arrowed triangle.

Recycling Co Abbreviation Name of Polymer Common Uses of Recycled Product

de &Symbols

PET / PETE Polyethylene terephthalate Polyester fibres, soft drink bottles.

HDPE High density polyethylene Bottles, plastic carrier bags, recycling bins.

PVC / V High density polyethylene Pipe, fencing, non-food bottles.

LDPE Low density polyethylene Plastic bags, containers, dispensing bottles.

PP Polypropylene Auto parts, industrial fibres.

PS Polystyrene Coffee cups, toys, video cassettes.

OTHER Other Plastics  Various.

I t is the misunderstanding of these arrows that contribute to plastic lagging far

behind other recyclable materials. Unfortunately not all codes are accepted in all
recycling centers, every city has their own standards of plastic acceptance.
The environmental benefits of recycling plastics include fewer toxins and less waste.
There are some misconceptions of plastic recycling. Plastic containers gathered
curbside is recycled into plastic containers again; many of the containers are actually
turned into un-recyclable products such as textiles and plastic lumber.

The knowledge of plastics being recycled has increased the usage of plastics while
the curbside pick up has not increased to match resulting in more plastics reaching
the landfill. The use of plastic containers produces less energy use; the recycling and
production of disposable plastics uses as much energy as that of producing glass
containers that can be reused, using reusable containers will conserve energy.
Nowadays the people are more conscious than before and use products which are
more environment friendly and which can be recycled later after use. Even in the
house and offices people tends to use more plastic materials which can be recycled
later on.
For the same this unit will come up with a semi- automated factory for recycling of
waste plastic scraps to tap the virgin market of North Eastern States and North
Bengal. The main concern is to make the environment free from pollution. The
environmental benefits of recycling plastics include fewer toxins and less waste of
energy.

4. Siliguri and its Growing importance:-

After a long survey of the market and availability of industrial facilities, Mr.
Akhilesh Kumar has chosen Siliguri to start its new project of Recycling plastic
scraps. Basically Siliguri is the nerve center of entire North Eastern Zone. Fullbari,
the place of proposed factory unit, is just 8 K.M away from Siliguri Town.
During the last 15 years the town Siliguri has experienced a spectacular
development and this process of development is still under progress. Improvement
of the total infrastructure, drainage systems, water supply system, construction
of three bridges on the river Mahananda, Railway over bridge, several bypasses
and under passes, a Central Bus Terminus, a stadium (Kanchanjungha Krirangan),
a modern auditorium (Dinabandhu Mancha), several industrial development centre,
several big housing projects etc have increased the importance of the Siliguri
Town. Conversion of Siliguri Municipality to the Municipal Corporation and
establishment of the Siliguri Jalpaiguri Development Authority (SJDA) have
accelerated this development process in the region for betterment of the
social and industrial infrastructure facilities.
As a result of the recent thrust for promotion of the town Siliguri, almost
all the major companies, banks, industries have opened their branches in this town
and with in the last decades it is converted into one of the fast developing city of
India.
Now Siliguri is the nerve center of entire North Eastern Zone. Actually the town of
Siliguri is the gateway of the Seven North Eastern States (Assam, Manipur, Tripura,
Meghalaya, Arunachal Pradesh, Mizoram and Nagaland), Sikkim, Kingdom of Nepal
and Bhutan and called as capital of North Eastern States.
5. Transport Facilities:

Siliguri is well connected by Air, Rail and Road to all the major cities of India.

6. Products and Capacity thereof: -

The main product of this unit is the Plastic Recycled Granules (chips) which
are produced by recycling plastic scraps. We deal in various plastic items like PET
Granules, HDPE Granules, HDPE Blow Granules, LDPE Granules, PP Granules,
and other various plastic items. A plant having capacity of 1000 kg per day recycled
plastic granules will be installed. The unit will run in two shifts. The Machinery is
Semi- automated which will work with the aid of power and labour simultaneously.

7. Market: -

As per experts, consumption of plastic material has tremendously increased in

this region. Siliguri is well connected by roads with the entire north Bengal region
and has become the nerve centre of entire north Bengal region. Generally all the
plastic scraps get accumulated here from different parts of the north Bengal region.
Thereafter these plastic scraps are recycled here and after recycling it is dispatched
to the manufacturer of plastic products to get the new end product. The main product
of the unit is Plastic Granules (chips) of different varieties i.e. PET Granules, HDPE
Granules, HDPE Blow granules, LDPE Granules, PP Granules, Etc.

8. Raw Materials: -

Major raw materials required for this unit are: -

i) Plastic Scraps which will be purchased locally are available in reasonable

price at required quantity and without difficulty.

ii) Water, for washing the plastic granules will be taken out from the bore
well.
.
Other requirements are all available in the Siliguri Market.
.
9. Labour: -

Adequate number of semi skilled and unskilled labors will be deployed in the
unit. However as the plat is semi- automated, demand of labour will not be much
higher. All labors are locally available and cheapest in comparison the other parts
of India.
10. Manufacturing Process: -

Recycling of plastic scrap involves basically grinding, washing, and drying

activity. A semi-automated plant will be installed for the same. Initially this unit will
purchase plastic scraps of different types and then the sorting process starts
where the plastics are sorted manually according to the description i.e. PET,
HDPE, LDPE, PP, etc. and each of them are kept separately for further
processing. Thereafter grinding process starts where different types of sorted
plastic scraps are grinded into small granules/ chips. Then the washing process
starts where plastic granules are washed completely to remove dirt and at last it
is dried. Then the plastic granules/chips are packed in gunny bags of 100 kg
approx and are ready for dispatch.

The total process can be described in the flow chart as below:-

Flow Chart

Plastic Collection

Manual Sorting

Grinding/Chipping

Washing

Drying

Sorted, clean plastic Granules

11. Cost of project and means of finance:
To be financed by:
Bank Loan(
Land Cash Credit)
(Annexure - I) Rs.Owned
8,00,000.00
Bank Loan (Term
Factory Loan)
Shed (Annexure II) Rs.Rs.6,25,000.00
2,50,000.00
Own Contribution (Capital) Rs. 5,35,000.00
Plant & Machinery (Annexure - III) Rs. 5,60,000.00
TOTAL Rs. 19,60,000.00
Margin Money of Working Capital Rs. 11,50,000.00
TOTAL Rs. 19,60,000.00

Details of Cost:
Land (Annexure – I) :
This project will come up on a land measuring 14 Kathas located at Fullbari, near Fullbari Cannal,
P.S. Bhaktinagar, in Jalpaiguri District In the name of Sri Badri Prasad. Mr.Akhilesh Kumar is the
Son of Sri Badri Prasad and Sri Badri Prasad has no objection to utilize the said land by Akhilesh
Kumar for the business purpose.

Details of the land is as follows:-

J. L. No: 03
Police Station Bhaktinagar
Area 14 Kathas
Plot No: 1044(L.R), 358(R.S)
Khatian No: 2205(L.R)
Binnagur
Mouza: i
District Jalpaiguri

Factory Shed (Annexure – II):

Factory Building cum Godown Rs.1,60,000.00

Boundary Wall , Shed Rs. 90,000.00
TOTAL Rs. 2,50,000.00
Plant and Machinery (Annexure- III):

Washing Machine (10 HP Motor) Rs. 1,05,000.00

18” Grinder Machine (20HP) Rs1,30,0000.00
Knife Grinder Machine ( 1 HP) Rs 55,000.00
Grinder Machine Tools & Fittings Rs. 20,000.00
Electrical Connection & Fittings Rs. 2,50,000.00
TOTAL Rs. 5,60,000.00

12. Time Schedule of the Project Implementation:-

The various activities such as construction of Factory building, availing loan

from bank, erection of machinery, electrification, recruitment of staff etc. are to be
done for implementing the scheme in the following order.

Land     Acquired
       
Plan & Permissions     Oct' 2012
       
Arrangement of Finance     Sept -Oct'2012
       
Factory Shed - Start of Construction     Oct’ 2012
       
Factory Shed- Completion of Construction     Nov’ 2012
       

Installations of Plants & Machinery     Nov’2012

Electrical Connection     Nov'2012

Start of Commercial Production     Dec’2012

FINANCIAL IMPLICATIONS

1. Capacity Utilization:

The unit is having processing capacity of 1000 Kg. recycled plastic

granules per Day. We have considered one shift having 8 hours per shift to
 find out the capacity of the plants. Capacity utilization rate has been estimated
at 55% in the first year, 70% in the second year, 85% in the third year and
then 90% from fourth year onwards respectively.

2. Profitability Estimates:

 Earnings: This unit will produce plastic granules (chips) of different types i.e.
PET, HDPE Blow, LDPE, PP, etc. Selling Price of these plastic granules
(chips) is estimated to be between Rs.30-55 per kg. LDPE Granules will be
sold at a range of Rs.50-55 per kg., PET Granules at a range of Rs.45-55 per
kg., HDPE Blow at a range of Rs.35-40 per kg., PP Granules at a range of Rs.
30-35 per kg. This is considered to be very competitive.

 Raw Materials, Consumables, stores and Provisions:

Major raw material of these products is mainly plastic scraps. In addition of
plastic scrap it needs water for cleaning the plastic granules. Generally the
raw materials i.e. plastic scraps are purchased from local market at a range of
Rs.20-32 per kg. Processing cost per kg of plastic granules is estimated to be
around Rs.7 (approx). Raw material i.e. plastic scraps are easily available
through out the year and are not expected to be in short supply in the coming
year.

 Depreciation: Depreciation has been calculated at the rate as prescribed in

the Income Tax Act.

 Income Tax: Income tax liabilities have been calculated considering the
prevailing Rules of Income Tax Act. However, from the trends received from
the last there will not be any adverse changes in the rule in the near future.