PLASTIC RECYCLING COMPANY

NAME :erick nganga CHEGE

INDEX :

This business plan has been handled to KNEC in partial for the award for the study of
certificate in engineering, July 2022.

DECLARATION
I declare that this business plan is an original copy of my work and has never been
handed over to any other institution.

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Acknowledgement
I acknowledge that I have handed this business plan to Mahanaim education
Institute.

Dedication
I dedicate this project to God Almighty my creator, my strong pillar, my source of
inspiration,
wisdom, knowledge and understanding. He has been the source of my strength
throughout this
program and on His wings only have I soared.
ABSTRACT
The plastics industry has developed considerably since the invention of various
routes for the production of polymers from petrochemical sources. Plastics have
substantial
Benefits in terms of their low weight, durability and lower cost relative to many
other material types. A major portion of plastic produced each year is used to make
disposable items of packaging or other short-lived products that are discarded within
a year of manufacture. These two observations alone indicate that our current use of
plastics is not sustainable.
Recycling is one of the most important actions currently available to reduce these
impacts and represents one of the most dynamic areas in the plastics industry today.
Recycling provides opportunities to reduce oil usage, carbon dioxide emissions and
the quantities of waste requiring disposal. Plastic recycling refers to the process of
recovering waste or scrap plastic and reprocessing it into useful product. Due to the
fact that plastic is non-biodegradable, it is essential that it is recycled as part of the
global efforts to reducing plastic and other solid waste in the environment.
Waste is now a global problem, and one that must be addressed in order to solve the
world's resource and energy challenges. Plastics are made from limited resources
such as petroleum, and huge advances are being made in the development of
technologies to recycle plastic waste among other resources. Mechanical recycling
methods to make plastic products and feedstock recycling methods that use plastic
as a raw material in the chemical industry have been widely adopted, and awareness
has also grown recently of the importance of Thermal recycling as a means of using
plastics as an energy source to conserve petroleum resources.
EXECUTIVE SUMMARY
Plastic is the basic need of our day-to-day life. During recent years the plastic
industry has grown with a substantial growth rate. This growth is driven by three
sectors viz. packaging, infrastructure and agriculture. There are the various verities
of plastics out of which PVC (Polyvinyl chloride) and PET (Polyethylene
Terephthalate) plastics have their considerable contribution. PET plastics are
generally used in the manufacturing of beverage bottles for the packaging and PVC
plastic is used in the production of household plastic materials. The growing
utilization of plastics in industrial and consumer applications and surrounding solid
waste recycling, has led to an increased demand for recycled plastic resins and
products.

We the Hind plastics provide a wide range of plastic solutions for household and raw
material for packaging of various companies. As a part of our ongoing efforts to
exploit this opportunity we will recycle the plastics and then produce kitchenware
items and other related plastic material. We will also sell the recycled plastics to the
companies in the plastic business. We will have a recycling plant along with the
production unit. The raw material will be procured from the waste collectors. The
raw material will be post-consumed beverage bottles and other soft plastic materials

Our main focus is our industrial customer whom we will sell PET bottles and PET
flakes. It will contribute more than 60% of our sales. We will also focus on the
household plastic business, which is the part of our portfolio. The initial set up cost
will be 300,000ksh.

Hind plastics will be a solution proprietorship business run by the promoters.

Since plastic material does not carry any brand name so it will give us an addition
benefit in long term to establish our brand name. To exploit the market, we will use
penetration pricing as our marketing strategy and utilize our stringent 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 this we
will be able to produce plastic carry bags and raw material for production for plastic
chairs and tables and other fiber-based products.
MARKETS AND PRODUCTS
The plastic products usually do not carry a brand name so intruding in the business-
like plastic will not be too hard with low price strategy. The population of
Zimmerman and the wards around it like Githurai, Kahawa West is around 3 Crores
and this area basically comprises of low to middle income group families so they
focus on plastic products rather than fiber since it is a cheaper. Hence it is huge
market to exploit.

From Zimmerman ward 3 tons of solid waste is produced from that 0.7tons of plastic
bags and around 1 tons of plastic bottles is generated per day. So, the supply of raw
material will be continuous.

Apart from this we will sell raw material for packaging to the various small
companies in this area. Around 15 small and medium scale companies are working in
this region. So, a large amount of industrial customer is also available.

There are two folds of products that we are providing one are industrial and other is
household.

Objectives
 Develop a business that survives on its own cash.
 Create a company that exceeds customer satisfaction level.
 Expand the service to whole UP in first five years and then to Kasarani.
 Extending the services to electronic component manufacturing companies for
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 material for
packaging. The recycled plastic is processed to Polyethylene Terephthalate (PET). PET
is a thermoplastic polymer viscous of polyester family. The biggest property of this
compound is it transparent. This is the reason why it is used for packaging. Apart
from this PET have good strength, ductility, stiffness and hardness. After the
recycling process completed an extruded plastic is generated. Plastics extrusion is a
high-volume manufacturing process in which raw plastic material is melted and
formed into a continuous profile.

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 will manufacture plastic tubes of
various diameters, plastic kitchenware. (For the end user)
 PET flake will be sold to thermoformers (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.

Recycled plastic is widely used in mainstream construction products such as damp-

proof membrane, drainage pipes, ducting and flooring. Bins, street signs and planters
are frequently made from plastic. They are cost competitive and resistant to
damage. Local authorities and schools are able to demonstrate recycling in action by
specifying recycled products High strength PET is used in the clothing, furnishings,
tire cord and technical textiles. Apart from PET the household plastic will be directly
sold to the end customers. In day-to-day life plastic items like water bottles, shop
case scrubber etc. is frequently used. So, there is a big demand of these in local
market.
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

CUSTOMER ANALYSIS
Since we are new player in the market so we need to make some stringent strategies
to penetrate market and grab customers. 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.

The direct customers are the customers whom we are selling our product regularly.
So, for us households whom we are selling plastic goods and companies who are
getting raw materials for packaging are direct customers (PET bottles). So only in
Allahabad around 20,000 families are our direct prospective customers and in terms
of business-to-business market around 20 small and medium scale companies are
our direct 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.

COMPETITOR ANALYSIS
In plastic manufacturing market there is no specific brand name exists so small
companies that are in this business flood the market. So, they are our biggest direct
competitors.

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. Githurai is plastic recycling city of
UP. The direct threat we will also have been with the companies operating in
Githurai. But as the distance between Githurai and Kahawa West is 20km as well as
the road is not in good condition, so it will not affect much.
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.

PRODUCT/ SERVICE STRATEGY

The packaging companies require high quality and highly transparent PET bottles.
The companies that are producing mineral water will reject PET bottles with even
small impurity/ opaqueness. So, we the Hind Plastics provide high-end PET flakes for
the perfect packaging.

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.

PRICING STRATEGY
As plastic products do not carry any brand name so only pricing and distribution
strategies will work to achieve competitive edge. 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.
DISTRIBUTION STRATEGY
As I described before that firstly we will target Allahabad city and villages close to it.
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.

PET bottles will be stored in warehouse that is close to the facility itself. The sales
people will directly contact to the companies that require these bottles for packaging
and look for the contracts. In city as stated above that we will have a distribution
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 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.

SALES STRATEGY
The strategy of sales effort will be to convert potential and first-time customers into
long term customers. Our sales strategy is totally based upon the distribution
channel and the pricing strategies. We will have a distribution center 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.

To market the products, the Company will use a number of sales agents/brokers.
They have a customer base of their own, having developed successful relationships
with their client over the years. Their customer base is currently demanding product
so they can expand upon their current base. Of course, they will expand that to new
customers when product is available.

If the Company grows faster than its prime customer base, additional capacity may
be developed. We will identify additional prospective customers who can be
attracted for our products.
MARKETING & SALES FORECAST
The first month prior to the opening will be used to get the new office in order, set
up appointment and begin marketing activities. 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. This flake will be
sold to other manufacturing companies. Recycling industry is growing with 15-20%
each year. So, we can assume that we will grow with at least 20%. There is a
continuing strong demand for flake and extruded products made from recycled PET.

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
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. 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 plastics will
be

 LDPE (Low density polyethylene)

 HDPE (High density polyethylene)

LDPE plastic is used in the production carry bags and other plastic sheets as well as
cling wrap, car covers, squeeze bottles, liners for tanks and ponds, moisture barriers
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 center 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

Our development strategy will address all those above-mentioned points. As we will
grow and our earning will increase, we will produce more of PVC and PET as well as
expand in new area. We have a development strategy to expand our facility size in
order to meet the production size.
 MANAGEMENT
Promoters and six supporting staff will manage the company. There will be five
promoters of Hind Plastics.

Marketing skills like convincing power, negotiating ability, creating promotional

strategies and sales skills will all be extremely helpful in taking the business a long
way and will prove intensely valuable to take Hind Plastics to flaring heights.

Thus, with such potential skills, and other qualities like efficient interpersonal skills,
leadership skills and decision-making quality, aptly makes him the best promoter and
eligible founder and owner of Hind Plastics

Along with promoters five more employees will work for the accomplishment of
companies’ objective. One supervisor will work on the facility along with two
supporting staff. Supervisor who will work upon the facility does not need to be a
chemical engineer a simple technician has experience on working upon the facility
can be able to do this.

Job description
Process No of employees Proficiency

Sorting 2 Unskilled

Belt Conveyer 1 Semiskilled

PET Separator 1 Semiskilled

Packaging 4 Unskilled