BUSINESS DEVELOPMENT PLAN ON ECO-SHIELD PAPER AND

PACKAGING COMPANY

Submitted To:

Associated Prof. Balram Bhattarai

Submitted By:

Pratima Ale (22225061)

MBA, 4th Trimester

For Partial Fulfillment of the Requirements for the degree of MBA

curriculum School of Business, Pokhara University

March, 2024

1
 ACKNOWLEDGEMENT

First of all, I would like to extend my heartfelt gratitude to Mr. Balram Bhattarai from
whom I got the immense inspiration to do this Business Development Plan. With active
participation, I have completed this Business Development Plan and have tried to do my
best in providing the relevant information. I am highly obliged to all those who have
helped me in preparing this plan. I would like to express my deep and sincere gratitude to
the School of Business, Pokhara University for providing me with this opportunity that
has given me practical exposure and real-time experience to various activities in practical
setting which will be fruitful and beneficial for my upcoming future. Last but not the
least; I would like to utter my heartfelt appreciation to all directly and indirectly support
providers or facilitators in this study.

……………………….

Sincerely,

Pratima Ale

MBA 4th Trimester

2
 DECLARATION

This is to certify that I have completed my Business Development Project for “Eco-
shield Paper and Packaging Company’’ under the guidance and supervision of Balram
Bhattarai, Professor in the partial fulfillment of the requirements for the degree in
Masters of Business Management from Pokhara University.

Pratima Ale

March, 2024

3
 EXECUTIVE SUMMARY

Eco-shield Paper and Packaging Company is dedicated to the production and distribution
of premium biodegradable paper and paper bags, prioritizing sustainability and eco-
friendliness to distinguish ourselves in the marketplace. Our mission is to cultivate a
strong reputation among consumers seeking environmentally responsible products.

Our product line encompasses a diverse range of biodegradable paper bags and paper-
based packaging solutions, krafted from high-quality materials that ensure durability and
sustainability. From bags to packaging, our offerings cater to both household and
commercial needs, maintaining accessibility through affordable pricing.

To ensure widespread availability, we are committed to establishing a robust distribution

network spanning both national and international markets. Leveraging retail partnerships,
online platforms, and direct sales channels via our website, we aim to amplify our brand
presence and cater to a broad and expanding customer base.

Central to our ethos is a steadfast commitment to product quality. We exercise meticulous

control over every stage of the manufacturing process, employing skilled artisans and
modern techniques to uphold the highest standards. This dedication guarantees superior
products for our customers, reinforcing our reputation for excellence.

At Eco-shield, sustainability is ingrained in our DNA. Our biodegradable paper products

are renewable and environmentally responsible, supported by manufacturing practices
designed to minimize waste and conserve resources. By prioritizing eco-friendliness, we
strive to minimize our environmental footprint and contribute positively to our planet.

Eco-shield Paper and Packaging Company is poised for growth and success, driven by
our unwavering dedication to quality, affordability, and sustainability. We are confident
that our commitment to excellence will continue to fuel demand for our products,
cementing our position as leaders in the biodegradable paper industry.

Embracing the importance of human resources, we are dedicated to recruiting individuals

who align with our values and can effectively champion our vision. Investing in our

4
employees' well-being is paramount, ensuring heightened productivity and sustained
success.

Furthermore, we pledge to deliver unparalleled customer service, prioritizing customer

satisfaction through attentive resolution of queries and proactive communication. By
engaging closely with our clientele and soliciting feedback, we aim to continually
enhance our offerings and strengthen customer relationships.

In summary, Eco-shield Paper and Packaging Company offers a compelling opportunity

for consumers seeking sustainable and high-quality paper-based solutions. Our steadfast
commitment to quality, affordability, and sustainability distinguishes us from
competitors, positioning us for enduring success in the marketplace.

5
6
7
 CHAPTER I

INTRODUCTION

1.1 Background

Plastic pollution, a global crisis, suffocates our oceans and mars our landscapes, posing a
dire threat to biodiversity and human health. Urgent action is imperative to curb this
pervasive problem and safeguard the future of our planet. According to the ICIMOD
(2018), Nepal produces about 2.7 tons of plastic garbage daily, and its improper
management creates lots of problems including environmental pollution.

In the heart of Nepal, Eco-Shield was born from a vision to combat plastic pollution and
champion eco-friendly alternatives. With determination and innovation, a team of like-
minded individuals set out to create biodegradable paper bags and seed boxes, driven by
a shared passion for environmental sustainability. From humble beginnings, Eco-Shield
emerged as a beacon of hope, dedicated to protecting the planet and inspiring positive
change. And so, our journey began, guided by a commitment to make a difference in the
world, one eco-friendly product at a time.

The biodegradable paper industry has been experiencing significant growth worldwide
due to increasing environmental awareness and regulatory measures aimed at reducing
plastic pollution. The Biodegradable Paper Packaging Materials Market is estimated to be
valued at USD 104.30 Billion in 2024 and is expected to reach USD 192.13 Billion by
2034 and is projected to exhibit a CAGR of 6.30% over the forecast period. This growth
is driven by factors such as the rising demand for sustainable packaging solutions,
stringent environmental regulations, and shifting consumer preferences towards eco-
friendly products.

In Nepal, although the biodegradable paper industry is still in its nascent stage, there is a
growing recognition of the importance of sustainable packaging solutions. With
increasing awareness about environmental issues and the adverse effects of plastic
pollution, there has been a surge in demand for biodegradable paper products in the

8
country. Moreover, the Nepalese government has implemented policies and initiatives to
promote eco-friendly practices, providing incentives and support for businesses operating
in the sustainable packaging sector.

As a result, there is a growing number of companies in Nepal, like Eco-Shield, that are
actively engaged in manufacturing biodegradable paper bags and packaging materials.
These companies are not only meeting the domestic demand for eco-friendly products
but also exploring export opportunities in the international market. With the potential for
further growth and innovation, the biodegradable paper industry in Nepal holds promise
for driving economic development, creating employment opportunities, and contributing
to environmental conservation efforts in the country.

Introduction

In an era where sustainability and environmental consciousness have gained primacy,

Eco Shield Paper and Packaging emerges as a forefront in eco-friendly solutions. As the
global community intensifying its commitment to reduce environmental impact, our
company stands at the forefront ready to revolutionize the paper and packaging industry.

Eco Shield is not just a name; it is a commitment to shielding our planet from the adverse
effects of conventional packaging materials. By harnessing cutting-edge technologies,
emphasizing sustainability, and fostering a culture of innovation, we aim to position Eco
Shield as the go-to-choice for businesses seeking a harmonious blend of quality,
functionality, and eco-consciousness in their packaging solutions.

Eco-Shield Paper and Packaging is a pioneering force in the industry, dedicated to

transforming the way we approach paper and packaging solutions. As a sustainable
business, our model is centered around the production of high-quality, biodegradable
materials that prioritize environmental well-being without compromising functionality.

Our business operates on a foundation of innovation, leveraging cutting-edge

technologies and sustainable practices to redefine industry norms. Committed to a
circular economy, Eco-Shield integrates eco-consciousness at every stage, from material
sourcing to production and end-of-life considerations.

9
The core of our strategy lies in providing businesses and consumers with viable
alternatives that not only meet but exceed their expectations for quality and performance.
By combining innovation with a commitment to environmental responsibility, we aim to
not only address current market demands but also shape the future of sustainable
packaging.

Eco-Shield's growth plan is rooted in expanding our reach globally, collaborating with
like-minded partners, and continuously investing in research and development. We
envision a future where our biodegradable solutions become the new standard, driving
positive change across industries and fostering a more sustainable and harmonious
relationship between commerce and the environment.

1.2 Vision, Mission and Objectives

Vision

Eco-Shield Paper and Packaging envisions a future where biodegradable papers redefine
sustainability, leaving a positive impact on the environment. We strive to be a global
leader, inspiring eco-conscious choices and fostering a greener, healthier planet.

Mission

Eco-Shield Paper and Packaging is on a mission to revolutionize the paper and packaging
industry by producing high-quality, biodegradable solutions that champion environmental
sustainability. Through innovation, education, and a relentless commitment to eco-
conscious practices, we aim to empower individuals and businesses to make a positive
impact on the planet, forging a path towards a greener and more sustainable future.

Slogan

“Let’s save the earth from plastic birth”

Objectives

10
The short-term, medium- and long-term goals of Eco-Shield Paper and Packaging
Company are as follows:

Short-term (1-2 years):

 To find the best quality raw materials for our papers and establish partnerships
with suppliers.

 To acquire best technology such as machinery for wood processing,

papermaking, chemical additives, recycling, energy management, process
control, and digital innovations.

 To deliver quality product in the market.

 To establish partnership with 100 retail businesses to use our products.

 Increase sales revenue by 20% through targeted marketing campaign.

 Obtain recognized certifications for environmental and sustainable practices,

such as certification, reinforcing Eco-Shield's commitment to eco-conscious
manufacturing and products.

Medium-term (3-5 years):

1. To become efficient in business operations and have economies of scale.

2. Expand in market outside the valley and cater to all over Nepal.

3. Achieve a 30% growth in market share for sustainable packaging solutions by

implementing targeted marketing campaigns, participating in industry events,
and establishing strategic partnerships.

4. Invest in technology upgrades and process improvements to achieve a 15%

reduction in energy consumption and waste generation, promoting more
efficient and eco-friendly manufacturing practices.

Long-term (5 years):
 Decrease overall carbon footprint by 40%.

 100% closed loop recycling for all products.

11
  Position Eco-Shield as a global leader in sustainable packaging solutions, with
a long-term goal of capturing a significant market share and influencing
industry standards for eco-friendly practices.

 Forge strategic partnerships with government agencies, NGOs, and other

businesses to actively participate in global initiatives addressing
environmental challenges, aiming to contribute to broader sustainability goals.

 Foster continuous innovation and expansion of product lines by investing

significantly in research and development, with a focus on pioneering
breakthroughs in sustainable materials, processes, and packaging
technologies.

1.3 Location and Premises

The company will be located in Pokhara-07, Ratnachowk. And the manufacturing house
will also be located within the premise of the company.

12
 Chapter II

PRODUCTS/SERVICE DESCRIPTION

Eco-shield paper and packaging company offers the following products and services:

1. Kraft Paper:

Kraft paper is a versatile and eco-friendly material produced from chemical pulp,
commonly used for shipping, wrapping, and the creation of standard brown paper bags.
Notably, it is unbleached, making it a triple threat in terms of sustainability as it is
biodegradable, compostable, and recyclable. Its natural properties make it an
environmentally conscious choice for various packaging needs, offering both strength
and eco-friendliness.

2. Seed Paper Boxes:

Seed paper is an innovative and sustainable solution made from post-consumer materials
embedded with seeds. Beyond its initial purpose, recipients can plant the paper, allowing
it to grow into plants that are beneficial to crucial pollinators. This not only eliminates
waste but also promotes environmental conservation and adds a unique and interactive
element to the packaging experience.

3. Shopping Bags, Block Bottom Bags, Brown Bags:

Eco-Shield offers a range of shopping bags, block bottom bags, and brown bags in
various sizes, shapes, and thicknesses, catering to diverse packaging needs. These options
provide environmentally conscious alternatives to conventional plastic bags, contributing
to the reduction of single-use plastics and encouraging sustainable consumer behavior.

4. Customized Packing Solutions:

Eco-Shield specializes in providing customized packaging solutions tailored to meet the

specific needs and preferences of individual brands, products, and clients. From graphic
designs to unique materials, these solutions not only enhance brand identity but also
prioritize functionality and offer a distinctive experience for the end consumer. This

13
approach ensures that the packaging aligns seamlessly with the values and image of each
brand.

5. Paper for Decoration:

Recognizing the environmental impact of discarded decor materials, Eco-Shield

introduces innovative products such as seed paper designed for decorative purposes.
From confetti to cutouts, wrapping paper, and greeting cards, these items not only serve a
decorative function but also contribute to environmental conservation by being
compostable or plantable, offering a sustainable alternative to traditional decorative
materials.

14
 CHAPTER III

BUSINESS ENVIRONMENT, INDUSTRY AND MARKET ANALYSIS

A. Industry Structure and Market Characteristics

Industry- Eco-Shield Paper and Packaging Company operates in the paper and
packaging industry, which is a highly competitive and highly fragmented with a large
number of players. The company is focused on Biodegradable packaging material, which
is a material that can naturally decompose and break down into non-toxic components
when they are visible to environmental conditions such a sunlight, moisture and
microbial activity. Since packaging is an important part of almost every product and
every industry, and with the growing concerns for eco-friendly packaging, the demand
for biodegradable packaging has increased over the past decade. The biodegradable
Packaging Industry in Nepal is expected to grow at a CAGR of 5.0 % and reach USD
269,463.14 million by 2030. The industry is driven by increasing consumer demand for
sustainable and eco-friendly products.

Nature of competition- The Global industry is characterized by a high degree of rivalry

among existing players, low barriers to entry and a high degree of price sensitivity among
buyers. The industry is also highly dependent on the price of raw materials, such as corn
starch, wood pulp, which can be volatile. In Nepal, there are companies producing
biodegradable packaging products, such as Get Paper Industry, which produces paper and
box packaging products from recycled paper. Bio Bags Nepal Pct Ltd is another company
that produces 100% compostable and biodegradable products made from natural starch,
vegetable oil derivatives and vegetable waste. Eco Sathi Nepal produces biodegradable,
organic cutlery for the Nepali market.

Biodegradable packaging products face competition from alternative materials, such as

plastic, metal and glass. However, biodegradable packaging products are still preferred
for their eco-friendliness and recyclability. Complementary and auxiliary sectors, such as
sustainable materials sectors provide eco-friendly materials such as hemp, hay, grass,
stems, cork for biodegradable packaging. The waste management sector plays a crucial

15
role in collecting, sorting and processing of biodegradable waste such as composting and
anaerobic digestion.

The market dynamics are shaped by licensing requirements and quality standards, which
function within a regulatory framework within the industry. The growing awareness of
environmental conservation and the need for sustainable products that are eco-friendly
and environmentally sustainable act as major drivers of market dynamics. Nepal
Government is increasing the implementation of policies which require use of sustainable
products and services and ban on the production, distribution and use of plastic bags that
are less than 40 microns thick. Eco-labeling schemes of government have also led to
increase in demand for green packaging solutions. In order to ensure continued growth
and competitiveness, establishing biodegradable packaging companies like Eco-shield,
must be aware of such industry structures and market features, strategically position them
and adjust to changing preferences of consumers.

Our targeted markets are retailers such as departmental stores, cosmetic brands, hotels,
restaurants who can use of biodegradable papers for packaging. There is increasing
demand of biodegradable paper packaging items due to its high-quality eco-friendly
nature. We will be distributing the product from our warehouse itself and export and
deliver the final product to our customers.

B. Porter’s Five Forces Model and its state in this industry

Porter’s Five Forces Model is a framework that analyzes the competitive forces within an
industry. It was formed by Micheal E. Porter of Harvard Business School in 1979. It
helps identify the factors that influence the competitive intensity and attractiveness of an
industry. By analyzing the effect of forces on a firm and identifying the strength and
direction of each force, the company can assess its position and ability to make a
sustained profit in the industry.

Threat of New Entrants

This force analyzes the likelihood of new competitors entering the industry. If barriers to
entry are low, it increases the threat. New entrants in Nepal bring innovation, new ways
of doing things and puts pressure on Eco-shield through lower pricing strategy, reducing

16
costs and providing new value propositions to the customers. The barrier to entry is low
in paper and packaging industry and there are many players but the use of biodegradable
paper for packaging is slowly growing, and hence the market is not highly saturated.
Eco-shield has to manage various challenges and build effective barriers to safeguard its
competitive edge.

Bargaining power of suppliers

Almost all the companies in the Nepalese industry buy the raw materials from numerous
suppliers. Suppliers in dominant position can decrease the margins Eco Shield can on in
the market. The beginning power of suppliers is moderate as the supply chain for
biodegradable materials is not highly consolidated but Suppliers of raw materials, such as
recycled paper or sustainable packaging materials, may have limited availability. And
there could be dependence on specific suppliers for eco-friendly materials. The overall
impact of higher supplier beginning power is that it low was the overall profitability of
the firm.

Bargaining power of buyers

Buyers are often demanding a lot they want to buy the best offerings available by paying
the minimum price as much as possible this impacts the company’s profitability in the
long run the beginning power of buyers is moderate as their limited options for
environmentally conscious consumers, But there is a growing number of competitors in
the biodegradable packaging sector.

Threat of substitute products

This force assesses the availability of alternative products or services that can meet the
same needs. When a new product or service meets a similar customer need in different
ways industry profitability suffers. In the case of Eco-Shield there are alternatives/
substitute products such as plastic bags, and non-eco-friendly options available posing a
threat.

Rivalry among the existing competitors

This force evaluates the level of competition among existing firms in the industry. If the
rivalry among the existing players in an industry is intense then it will drive down prices
and decrease the overall profitability of the industry. There will be constant price wars

17
and innovation to gain a competitive edge. The paper and packaging industry operates in
a highly competitive environment where there are many competitors in the market. The
rivalry among existing competitors of the biodegradable packing industry in Nepal is
moderate as there are only a few prominent players in the market.

CHAPTER IV

ORGANIZATION/ MANAGEMENT AND HUMAN RESOURCES PLAN

A. Organizational Structure

Eco-Shield is still in its early phases of operations; thus, the owners will initially be
personally watching. Depending on the circumstances and requirement, additional staff
and relevant authorities will be employed. An organizational hierarchy with distinct lines
of power and duty may be designed for the smooth flow of operation.

Board of Directors

Operation Manager Marketing and sales Human Resource Finance

Manager manager Manager

Quality
Control

7 workers

Graphic
18
Designer / IT
manager
Supply chain
Departmentalization and its Primary Purposes

 Operation Manager

The Operations Manager at Eco-Shield holds a key role with specific authority and
responsibilities focused on the efficient functioning of the production and supply chain
aspects of the company. With the authority to make decisions within the realm of
operations, this manager oversees the day-to-day manufacturing processes, ensuring they
align with sustainability goals and quality standards. This role also involves collaborating
closely with the General Manager and other department heads to integrate sustainable
practices into the overall business strategy.

 Quality Control

The quality control sub-department at Eco-Shield will be responsible for ensuring the
quality of bamboo kitchenware. This includes tasks such as inspecting the raw materials,
monitoring the production process, and performing final product inspections. This sub-
department will be headed by Operation Head and will staff quality control specialist.

 Supply Chain & Logistics

The supply chain and logistics sub-department at Eco-Shield will be responsible for
managing the procurement of raw materials, the storage and transportation of finished
products, and the coordination of deliveries to customers. This includes tasks such as
sourcing materials, negotiating with suppliers, managing inventory level, and shipping
products. This sub-department will be headed by Operation Head and will staffed by
supply chain & logistics specialist.

 Graphics designer/ IT manager

He/she is responsible for managing the company's hardware, software, and network
systems. Functions include ensuring the security and integrity of data, implementing and

19
maintaining software solutions, and providing technical support to users. Along with that
he/she has responsibilities as creating visually appealing and informative materials for
marketing, packaging, and promotional campaigns. The graphic designer role ensures
that the message of Eco-Shield and client is effectively communicated through visually
engaging designs. This includes designing product packaging that reflects the company's
commitment to sustainability, creating marketing collateral that highlights the
environmental benefits of its products, and contributing to the overall branding strategy.

 Workers

Within the operations department at Eco-Shield, a normal worker typically engages in

various tasks related to the production and manufacturing processes of biodegradable
paper packaging. This may include operating machinery involved in the conversion of
agricultural waste materials into sustainable packaging solutions, ensuring the efficient
and high-quality output of the production line. Out of 7 workers 2 are cleaners, 5 are
staffs under operation department. These workers may also be responsible for monitoring
equipment, conducting routine maintenance, and troubleshooting issues to minimize
downtime. Additionally, they might collaborate with the quality control team to inspect
finished products, ensuring they meet Eco-Shield's standards for sustainability and
performance. These workers play a vital role in implementing and adhering to sustainable
production practices, contributing to the company's commitment to eco-friendly
operations.

 Marketing and sales manager

The Sales and Marketing Manager at Eco-Shield plays a pivotal role with a distinct set of
authority and responsibilities aimed at driving the company's market presence and
revenue growth. Provided with the authority to shape and execute the sales and
marketing strategies, this manager oversees the development and implementation of
campaigns to promote Eco-Shield's biodegradable paper packaging solutions.
Additionally, the manager monitors market trends, analyzes customer feedback, and
adjusts strategies accordingly to meet sales targets and maintain customer satisfaction. In
summary, the Sales and Marketing Manager at Eco-Shield holds the authority to shape

20
the brand's image and drive revenue, while shouldering responsibilities that contribute
directly to the company's market success and sustainable growth.

 Human resource manager

The Human Resource Manager at Eco-Shield plays a critical role with distinctive
authority and responsibilities in managing the company's human capital. Endowed with
the authority to shape HR policies and practices, this manager oversees recruitment,
employee relations, and talent development. Additionally, this role involves managing
diversity and inclusion initiatives, addressing employee concerns, and promoting
professional development opportunities. In summary, the HR Manager at Eco-Shield
holds the authority to shape the company's workforce strategies and bears responsibilities
that contribute significantly to the creation of a positive and sustainable work
environment.

 Finance manager

The Finance Manager at Eco-Shield plays a pivotal role with distinct authority and
responsibilities in managing the company's financial resources. Endowed with the
authority to make decisions regarding financial planning, budgeting, and resource
allocation, this manager oversees the financial health of the organization. This role also
involves providing accurate financial information to support strategic decision-making
and fostering transparency with investors and stakeholders. In summary, the Finance
Manager at Eco-Shield holds the authority to shape the company's financial strategies
and bears responsibilities that are integral to sustaining the company's growth and
success

C. Board Composition

There will be two members in the Board of Eco-Shield Paper & Packaging Company Pvt.
Ltd for now. As the company scales up, one director shall be appointed as Chairperson
upon mutual consent. The term of office of the Chairperson shall be four years and shall
be eligible for the reappointed.

The board will consist of:

21
Pratiksha Paudel : 50%

Subhekchhya Kc: 50%

D. Top Management

The top management consists of two partners, Pratiksha Paudel and Subhekchhya Kc.
Once the business is up and growing; we will hire additional employees to manage other
key areas.

E. Job Description of Key Positions and Employees

The senior management team, which includes operation manager, Sales and marketing
manager, Human resource manager and finance manager will support the general
manager in supervising the whole operation. Each unit performs a specific job for which
a cross-cutting relationship supporting one another is necessary.

 Operation manager

Responsibilities: Optimizing production workflows, coordinating with suppliers for the

responsible sourcing of agricultural waste materials, and implementing eco-friendly
practices in the production line. The Operations Manager is instrumental in maintaining
inventory levels, managing logistics for timely deliveries, and addressing any operational
challenges that may arise.

Education: Bachelor's or Master's degree in Operations Management, Business

Administration, or a related field.

Experience: Experience in operations and production management of Paper Company,

sustainable or eco-friendly industries.

Skills: Strong organizational and problem-solving skills, knowledge of sustainable

manufacturing practices and the ability to optimize production processes.

 Sales and Marketing Manager

Responsibilities: Identifying and cultivating key customer relationships, both B2B and
B2C, to expand the customer base. The Sales and Marketing Manager has the authority to

22
make decisions regarding pricing strategies, promotional activities, and market
positioning to enhance the brand's visibility and competitiveness.

Education: Bachelor's or Master's degree in Marketing, Business Administration, or a

relevant field.

Experience: Proven experience in sales and marketing roles, preferably within

sustainable or eco-friendly industries.

Skills: Strong understanding of marketing strategies, excellent communication and

negotiation skills, and the ability to develop and implement effective sales campaigns.

 HR manager

Responsibilities: Implementing fair and sustainable employment practices, ensuring

compliance with labor laws, and fostering a positive organizational culture that aligns
with Eco-Shield's commitment to sustainability. The HR Manager has the authority to
make decisions related to staffing, training programs, and employee engagement
initiatives, contributing to the overall success of the company.

Education: Bachelor's or Master's degree in orga Resources, Business Administration, or

a relevant field.

Experience: Experience in HR roles, often with a focus on sustainability, talent

acquisition, and employee relations.

Skills: In-depth knowledge of HR practices, excellent communication skills,

understanding of labor laws, and the ability to foster a positive work environment.

 Finance Manager

Responsibilities: Preparing financial statements, managing cash flow, and ensuring

compliance with accounting principles and regulatory standards. The Finance Manager
has the authority to make decisions related to investments, cost control measures, and
financial risk management, contributing directly to the company's overall financial
stability.

23
Education: Bachelor's or Master's degree in Finance, Accounting, or a related field.
Professional certifications may be preferred.

Experience: Significant experience in financial management, often in roles with a focus

on sustainability reporting and ethical financial practices.

Skills: Expertise in financial planning, budgeting, and analysis. Familiarity with

sustainable finance practices and strong attention to detail.

PART V

MARKETING PLAN

Conduct Market Research

By conducting a marketing research following SWOT analysis identified:

SWOT Analysis for Eco-Shield Paper and Packaging Business:

24
 Strength Weakness
High price in comparison to competitors
Unique design and quality
Limited product range
Environmentally friendly products Dependency on raw material
Local presence Technological gaps
Innovative packaging solutions Challenge to establish brand and gain market share
Well trained employees

SWOT

Opportunities Threats
Positive changes in customer sentiment towards
eco friendly products Competition with plastic packaging industry
Growing packaging industry Fluctuating raw material prices
Government support for sustainable practices such Regulatory changes such as tarrif rate, trade
as subsidy restrcitions can hamper the business.
Export Opportunities Limited infrastructures and resources
Employment opportunities to local farmers, Global competition
community

Marketing Mix:

1. Product:
Eco-Shield specializes in an array of biodegradable paper packaging solutions krafted
from agricultural waste materials, contributing to its commitment to sustainability. The
product line encompasses papers as as kraft paper, seed paper, translucent paper and
innovative alternatives for food packaging, shopping bags, wrapping paper, and
customizable packaging solutions tailored to the diverse needs of businesses. Eco-

25
friendly shipping materials, including padding and cushioning, extend the brand's reach
into the logistics and e-commerce sectors.

2. Price:
Eco-Shield adopts a competitive pricing strategy that reflects the added value of its
sustainable and innovative biodegradable paper packaging made from agricultural waste
materials. The pricing is designed to be competitive with traditional packaging
alternatives while transparently communicating the positive environmental impact. The
company may consider offering bulk discounts for businesses looking to make a larger
eco-friendly shift or loyalty programs to reward repeat customers.

3. Place:
Eco-Shield ensures the accessibility of its biodegradable paper packaging from
agricultural waste materials through a strategic distribution approach. Our production
plant will be in Pokhara considering the easy accessibility of the raw materials, labor and
land. The products are made available through various channels, including eco-friendly
retailers, online platforms, and partnerships with businesses that share a commitment to
sustainable practices.

4. Promotion:
Eco-Shield employs a comprehensive promotional strategy to raise awareness and drive
adoption of its biodegradable paper packaging made from agricultural waste materials.
The promotional efforts focus on education, collaboration, and community engagement.
Content marketing plays a crucial role, with the creation of informative materials
highlighting the environmental impact of traditional packaging versus the benefits of
choosing Eco-Shield's sustainable alternatives. Collaborations with influencers,
environmental organizations, and like-minded businesses are leveraged to expand the
brand's reach and credibility. Participation in sustainability events and sponsorship
activities reinforces Eco-Shield's commitment to eco-friendly practices.

5. People:
The people aspect at Eco-Shield plays a crucial role in delivering a positive customer
experience and reinforcing the brand's commitment to sustainability. Knowledgeable staff
members are an integral part of the brand's identity, equipped to effectively communicate

26
the benefits of Eco shield's biodegradable paper packaging made from agricultural waste
materials. Employee training programs focus on ensuring that customer-facing staff
possess a deep understanding of the environmental impact of traditional packaging and
can articulate the advantages of choosing Eco-Shield's sustainable alternatives. This
emphasis on expertise contributes to building trust with customers and helps in
answering inquiries or concerns related to the eco-friendly products.

6. Processes:
Eco-Shield's processes revolve around the efficient production of biodegradable paper
packaging from agricultural waste materials, embodying a commitment to sustainability.
The company prioritizes the use of innovative techniques to create eco-friendly solutions,
with a keen focus on sourcing materials responsibly. Rigorous quality control measures
ensure that the packaging meets high standards while adhering to the principles of
environmental responsibility. The order fulfillment process is optimized for efficiency,
and sustainable packaging materials may be utilized for shipping. Eco-Shield places a
strong emphasis on continuous improvement, regularly reviewing and refining its
processes to minimize environmental impact and stay at the forefront of sustainable
packaging innovation. This holistic approach ensures that every aspect of the production
chain aligns with the brand's values, delivering high-quality, sustainable products to its
customers.

7. Physical Evidence:
The physical evidence of Eco-Shield is evident in several tangible elements that reinforce
its commitment to sustainability and environmentally friendly practices. This includes the
actual biodegradable paper packaging products made from agricultural waste materials,
serving as a direct representation of the brand's dedication to reducing environmental
impact. The packaging itself becomes a visible testament to Eco-shield's values.
Certifications and eco-friendly labels prominently displayed on the products and
promotional materials serve as additional physical evidence. These certifications act as
tangible proof of the brand's commitment to sustainable practices, providing customers
with transparent information about the environmental benefits of choosing Eco-Shield.

E. Sales Strategies

27
 Educational Selling: Sales representatives focus on educating customers about the
environmental benefits of choosing biodegradable packaging over traditional
options. Emphasizing the positive impact on sustainability helps customers make
informed decisions.

 Customization Services: Offering customization options for packaging solutions

allows Eco-Shield to meet the unique needs of different businesses. Sales teams
work closely with clients to tailor solutions that align with their branding and
packaging requirements.

 B2B Partnerships: Establishing partnerships with businesses that prioritize

sustainability enables Eco-Shield to expand its reach. Collaborating with
companies sharing similar values and integrating its products into their supply
chains creates new sales opportunities.

 Online Presence: Maintaining a strong online presence through an e-commerce

platform and active engagement on social media facilitates direct sales to
individual consumers. A user-friendly website showcases products, provides
information, and supports online purchasing.

 Promotional Campaigns: Implementing targeted promotional campaigns during

key periods, such as environmental awareness months, encourages businesses and
consumers to make the switch to eco-friendly packaging. Special discounts or
promotions can incentivize adoption.

28
 Chapter VI

FINANCIAL PLAN

A. Financial Objective

The financial plan is in congruent with the service to be provided and the marketing
strategies. The initial years will be focused on customer acquisition and growth while
maintaining positive working capital. Then, the plan is aimed at expansion such that the
pay back is achieved.

I. Short Term (3-5 years)

 To maintain positive cash flow.
 To achieve the revenue targets.

2. Medium Term (6-10 years)

 To grow the business to maximize revenue.

3. Long Term (11-20 years)

 To maintain a profit to grow business.

B. Equity Capital

Equity Capital
Name Capital Invested (Amount in Rs.)

Pratima Ale 25,20,500

Subhekchhya Kc 25,20,500

Total 50,41,000

29
Key Assumption to the Financial Statements
a. Project Cost
The total project cost is NRs. 60,41,000/- which comprises factor building and structures,
plant and machinery, furniture and fixtures, office equipment and other assets.

b. Business Operation
It is assumed that the construction and finishing will be fully completed until Shrawan 1,
2081 and will get into operation from that date.

c. Loan and Advances

The Term loan of NRs. 10 lakh is assumed while preparing the financial projection. The
term of loan is presumed to be of 10 years from the date of operation. Interest rate is
presumed to be 11% p.a. for first 2 years. Loan will be taken from Agriculture
Development Bank Ltd.

d. Machinery and Equipment comprises Digester, Pulper, Fourdrinier, Cylinder

machine, Paper bag making machine, Printing machine, Gluing machine, Handle making
machine, etc.
e. 100% Sourcing of raw material can be done through local supplier.
f. The administration expenses (indirect cost) have been worked out considering the
actual expenses of similar type of industry.
g. Income tax at 25% has been considered.
h. The cost of debt is 11% and cost of debt after text is 8.25%.
i. There will be increase in rent in year three by ten percent.
j. Payable Deferral Period will be 15 days, Receivable Collection Period and
Inventory conversion period will be 30 days.

30
 Annex 1 Cost estimation of Plant and Machineries
Amoun
t Life Year 1 Year 2 Year 3 Year 4 Year 5
Fixed
Assets
Buildin 10,
g 00,000 20 50,000 50,000 50,000 50,000 50,000
Pulping 5,
Machine 00,000 10 50,000 50,000 50,000 50,000 50,000
Drying 3,
Machine 00,000 10 30,000 30,000 30,000 30,000 30,000
Pressin
g 2,
Machine 00,000 10 20,000 20,000 20,000 20,000 20,000
Rolling 3,
Machine 00,000 10 30,000 30,000 30,000 30,000 30,000
Box
Making 2,
Machine 00,000 10 20,000 20,000 20,000 20,000 20,000
Automa
tic Paper
Bag
Making 6,
Machine 00,000 10 60,000 60,000 60,000 60,000 60,000
Furnitur
e and 2,
Fixtures 00,000 10 20,000 20,000 20,000 20,000 20,000
2,
Printing 00,000 5 40,000 40,000 40,000 40,000 40,000
System,
Softwar 4,
e 00,000 10 40,000 40,000 40,000 40,000 40,000
10, 1, 1, 1, 1, 1,
Vehicle 00,000 10 00,000 00,000 00,000 00,000 00,000
49, 4, 4, 4, 4, 4,
Total 00,000 60,000 60,000 60,000 60,000 60,000

Total
book
value of 49,00,0 44, 39, 35, 30, 26,
FA 00 40,000 80,000 20,000 60,000 00,000
Annex 2 Total Project cost
Particulars Amount for

31
 Year 0
Fixed Assets 49,00,000
Pre-operating / Preliminary expenses 1,00,000
Working Capital Investment 10,41,000
Total Start Up Investment Needed 60,41,000

Investment in Fixed Assets 49,00,000 81.11%

Investment in Operating Capital 11,41,000 18.89%

Annex 3 Capital Structure

Cost of
Particulars Amount Proportion Capital
Share Capital 50,41,000 83.45% 20%
Project Term Loan 10,00,000 16.55% 8.25%
Total 60,41,000 100%

WACC (Overall Cost of

Capital) 18.05%

Annex 4 Revenue
Demand in KG
Price
per
Particulars KG Year 1 Year 2 Year 3 Year 4 Year 5
1, 1, 2,
Kraft Paper 30,000.0 90,800.0 20,000.0 80,000.0 20,000.0
Bags 120.00 0 0 0 0 0
1, 2, 3, 4,
Seed Paper 60,000.0 10,000.0 00,000.0 05,000.0 10,000.0
Boxes 150.00 0 0 0 0 0

36, 1,08, 1,44, 2,16, 2,64,

Revenue from 00,000.0 96,000.0 00,000.0 00,000.0 00,000.0
Kraft Paper Bags 0 0 0 0 0
90, 1,65, 3,00, 4,57, 6,15,
Revenue from 00,000.0 00,000.0 00,000.0 50,000.0 00,000.0
seed paper boxes 0 0 0 0 0
1,26, 2,73, 4,44, 6,73, 8,79,
00,000.0 96,000.0 00,000.0 50,000.0 00,000.0
Total Revenue 0 0 0 0 0

32
Annex 5 Income Statement
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
2,7
1,26,00, 3,96,00 4,44 6,73 8,7
Total Sales Revenue 000 0 ,00,000 ,50,000 9,00,000
2,0
91,92, 3,90,64 3,24 4,91 6,3
Cost of Goods sold 000 0 ,45,000 ,16,800 7,75,360
7
34,08, 0,05,36 1,19 1,82 2,4
Gross Profit 000 0 ,55,000 ,33,200 1,24,640
Operating Expenses
2
29,64, 9,64,00 34 34 3
Salary Expenses 000 0 ,08,600 ,08,600 9,19,890
Other Administrative 30,
Expenses 000 34,500 39,675 45,626 52,470

Marketing & Branding 1,00, 1,25,00 1 1

expenses 000 0 ,56,250 ,95,313 2,44,141

Selling & Distribution 80, 1,04,00 1 1

overhead 000 0 ,35,200 ,75,760 2,28,488
1
12,00, 2,00,00 13 13 1
Rent 000 0 ,20,000 ,20,000 3,20,000
6,
Maintenance 000 8,000 10,000 15,000 20,000
15,
Utilities 000 20,000 23,000 25,000 28,000
50,
Business Insurance 000 50,000 50,000 50,000 50,000
1,00,
Preliminary expenses 000 - - - -
4
Total Operating 45,45, 5,05,50 51 52 5
expenses 000 0 ,42,725 ,35,299 8,62,989
Operating Profit 2
before - 4,99,86 68 1,29 1,8
Depreciation(EBDIT) 11,37,000 0 ,12,275 ,97,901 2,61,651

4,60, 4,60,00 4 4
Depreciation 000 0 ,60,000 ,60,000 4,60,000
Operating Profit after - 2 63 1,25 1,7
Depreciation(EBIT) 15,97,000 0,39,86 ,52,275 ,37,901 8,01,651

33
 0
1,14,
Interest on Term Loan 621 96,385 76,058 53,402 28,148
1
Profit Before Tax - 9,43,47 62 1,24 1,7
(PBT) 17,11,621 5 ,76,217 ,84,500 7,73,503

- 4,85,86 15 31 4
Tax @ 25% 4,27,905 9 ,69,054 ,21,125 4,43,376
1
Profit After Tax - 4,57,60 47 93 1,3
(PAT) 12,83,716 6 ,07,163 ,63,375 3,30,127

- 1,73,89 48 1,42 2,7

Cumulative PAT 12,83,716 0 ,81,053 ,44,428 5,74,555

34
Annex 6 Cash Flow
Year
Particulars 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flow
from
Operating
Activities
Profit / Loss
after Tax as 14,57,60 47,07,16 1,33,30,12
per P & L A/c 0 -12,83,716 6 3 93,63,375 7
Add:
Depreciation 0 4,60,000 4,60,000 4,60,000 4,60,000 4,60,000
Provision for 15,69,05
tax 0 -4,27,905 4,85,869 4 31,21,125 44,43,376
Financial
Expenses 0 1,14,621 96,385 76,058 53,402 28,148
Cash Flow
from
Operating
Activities
before wc 24,99,86 68,12,27 1,29,97,90 1,82,61,65
changes 0 -11,37,000 0 5 1 1
Adjustment
for Working
Capital
Changes
(Increase) / -
Decrease in 10,04,53
Inventories 0 -7,66,000 -9,33,220 0 -13,89,317 -12,21,547
(Increase) /
Decrease in
Trade and - -
Other 12,33,00 14,17,00
Receivables 0 -10,50,000 0 0 -19,12,500 -17,12,500
Provision for 15,69,05
tax 0 -4,27,905 4,85,869 4 31,21,125 44,43,376
Increase /
(Decrease) in
Current
Liabilities 0 3,83,000 4,66,610 5,02,265 6,94,658 6,10,773
Cash Flow
from
Operating 33,23,95 1,14,95,00
Activities 0 -21,42,095 3,14,381 6 72,69,618 2

35
Cashflow
from
Investing
Activities
Purchase of 49,00,
Fixed Assets 000 0 0 0 0 0

Cashflow
from
Investing 49,00,
Activities 000 0 0 0 0 0

Cashflow
from
Financing
Activities
(Decrease)/
Increase in
Medium- and
Long-Term 10,00,
Loans 000 -1,59,102 -1,77,338 -1,97,665 -2,20,321 -2,45,575
Less:
Financing
Expenses 0 114621 96385 76058 53402 28148
(Decrease)/
Increase in
Paid Up Share 50,41,
Capital 000 0 0 0 0 0

Cashflow
from
Financing 60,41,
Activities 000 -2,73,723 -2,73,723 -2,73,723 -2,73,723 -2,73,723

Net Cashflow 1,09,4 30,50,23 1,12,21,27

for the year 1,000 -24,15,817 40,658 3 69,95,895 9

Increase /
(Decrease) in
Cash & Bank
Balances
Closing Cash -
& Bank 11,41, 12,34,15 18,16,07 2,00,33,24
Balances 000 -12,74,817 9 4 88,11,969 8
Opening Cash 0 11,41,000 - - 18,16,074 88,11,969

36
& Bank 12,74,81 12,34,15
Balances 7 9

37
Annex 7 Balance Sheet
Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

49,00,00 44,40,0 39,80,0 35,20,00 30,60,00 26,00,00

Net Fixed Assets 0 00 00 0 0 0

Current Assets
7,66,00 16,99,2 27,03,75 40,93,06 53,14,61
Inventory 0 0 20 0 7 3
Trade and Other 10,50,0 22,83,0 37,00,00 56,12,50 73,25,00
Receivables 0 00 00 0 0 0
- -
Cash & Bank 11,41,00 12,74,8 12,34,1 18,16,07 88,11,96 2,00,33,
Balance 0 17 59 4 9 248
Total Current 11,41,00 5,41,18 27,48,0 82,19,82 1,85,17, 3,26,72,
Assets 0 3 61 4 536 862
60,41,00 49,81,1 67,28,0 1,17,39, 2,15,77, 3,52,72,
Total Assets 0 83 61 824 536 862

Current Liabilities
Trade and Other 3,83,00 8,49,61 13,51,87 20,46,53 26,57,30
Payables 0 0 0 5 3 7
Total Current 3,83,00 8,49,61 13,51,87 20,46,53 26,57,30
Liabilities 0 0 0 5 3 7
Long Term
Liabilities
Project Term Loan 10,00,00 8,40,89 6,63,56
of 5 Years 0 8 1 4,65,896 2,45,575 0

Equity Capital
Paid Up Share 50,41,00 50,41,0 50,41,0 50,41,00 50,41,00 50,41,00
Capital 0 00 00 0 0 0
-
Reserves and 12,83,7 1,73,89 48,81,05 1,42,44, 2,75,74,
retained earning 0 16 0 3 428 555
50,41,00 37,57,2 52,14,8 99,22,05 1,92,85, 3,26,15,
Total equity capital 0 84 90 3 428 555
Total Capital and 60,41,00 49,81,1 67,28,0 1,17,39, 2,15,77, 3,52,72,
Liabilities 0 83 61 824 536 862

38
Annex 8 Economic Appraisal
Year 0 1 2 3 4 5
Initial Investment
Total Investment of -
Project 60,41,000 0 0 0 0 0

-
Economic Operating 12,37, 24,99,86 68,12,27 1,29,9 1,82,61,
Cash Flow 000 0 5 7,901 651
Less: Trade and Other 10,50, 22,83,00 37,00,00 56,12, 73,25,00
Receivables 000 0 0 500 0
Add: Deferred 10,50,00 22,83,00 37,00, 56,12,50
Receipt 0 0 0 000 0
-
Economic Cash 22,87, 12,66,86 53,95,27 1,10,8 1,65,49,
Flow 000 0 5 5,401 151
Terminal Cash Flow
-
Net Cash Flow (as - 22,87, 12,66,86 53,95,27 1,10,8 1,65,49,
going concern) 60,41,000 000 0 5 5,401 151
-
Total Net Cash Flow - 22,87, 12,66,86 53,95,27 1,10,8 1,65,49,
(only of 5 years) 60,41,000 000 0 5 5,401 151

Discount Factor 1.000 0.847 0.718 0.608 0.515 0.436

Discounted Cash -
Flow (as going - 19,37, 32,79,14 57,07, 72,16,96
concern) 60,41,000 233 9,08,992 7 087 5
-
Discounted Cash - 19,37, 32,79,14 57,07, 72,16,96
Flow (only of 5years) 60,41,000 233 9,08,992 7 087 5

Net Present Value

(Rs) 91,33,958

18.05 18.05
WACC 18.05% % 18.05% 18.05% % 18.05%

- - -
Cumulative Cash - 83,28, 70,61,14 16,65,86 94,19, 2,59,68,
Flow 60,41,000 000 0 5 536 687
Discounted - - -
Cumulative Cash - 79,78, 70,69,24 37,90,09 19,16, 91,33,95
Flow 60,41,000 233 1 4 993 8

39
 2.26
Payback Period years
Discounted Payback 2.63
Period years
Profitability Index 2.51
Internal Rate of
Return (IRR) 44.20%

Table 1 Break Even Analysis

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
SALES MIX
Revenue from Kraft paper
Bags 29% 40% 32% 32% 30%
Revenue from Seed paper
Boxes 71% 60% 68% 68% 70%
MOST LIKELY SALES
PRICE PER UNIT
Revenue from Kraft paper
Bags 120.00 120.00 120.00 120.00 120.00

Seed paper Boxes 150.00 150.00 150.00 150.00 150.00

1,26,00 2,73,96 4,44,00 6,73,50 8,79,00
Total sales revenue ,000.00 ,000.00 ,000.00 ,000.00 ,000.00
VARIABLE COSTS
Cost of agricultural 90,72 2,02,40 3,22,56 4,88,88 6,35,04
residue ,000.00 ,640.00 ,000.00 ,000.00 ,000.00
20 30 45 56 64
seed ,000.00 ,000.00 ,000.00 ,000.00 ,000.00
1,00 1,20 1,44 1,72 2,07
Energy and fuel ,000.00 ,000.00 ,000.00 ,800.00 ,360.00
91,92 2,03,90 3,24,45 4,91,16 6,37,75
Total Variable costs ,000.00 ,640.00 ,000.00 ,800.00 ,360.00
Variable cost for kraft 1215000 1820646 2224800
paper 3057333 9207081 0 3 7
Variable cost for seed 61 1,11 2,02 3,09 4,15
paper ,34,667 ,83,559 ,95,000 ,10,337 ,27,353

VCPU for kraft paper 101.91 101.40 101.25 101.15 101.13

VCPU for seed paper 102.24 101.67 101.48 101.35 101.29

Fixed Costs
29,64 29,64 34,08 34,08 39,19
Salary Expenses ,000.00 ,000.00 ,600.00 ,600.00 ,890.00

40
 Other Administrative 30 34 39 45 52
Expenses ,000.00 ,500.00 ,675.00 ,626.25 ,470.19
Marketing & Branding 1,00 1,25 1,56 1,95 2,44
expenses ,000.00 ,000.00 ,250.00 ,312.50 ,140.63
Selling & Distribution 80 1,04 1,35 1,75 2,28
overhead ,000.00 ,000.00 ,200.00 ,760.00 ,488.00
12,00 12,00 13,20 13,20 13,20
Rent ,000.00 ,000.00 ,000.00 ,000.00 ,000.00
6 8 10 15 20
Maintenance ,000.00 ,000.00 ,000.00 ,000.00 ,000.00
15 20 23 25 28
Utilities ,000.00 ,000.00 ,000.00 ,000.00 ,000.00
50 50 50 50 50
Business Insurance ,000.00 ,000.00 ,000.00 ,000.00 ,000.00
4,60 4,60 4,60 4,60 4,60
Depreciation ,000.00 ,000.00 ,000.00 ,000.00 ,000.00
49,05 49,65 56,02 56,95 63,22
Total Fixed Costs ,000.00 ,500.00 ,725.00 ,298.75 ,988.81
CONTRIBUTION
MARGIN PER UNIT
CMPU for Kraft paper
bag 18.09 18.60 18.75 18.85 18.87
CMPU for seed paper
box 47.76 48.33 48.53 48.65 48.71
Weighted average
CMPU 39.28 36.51 38.87 39.10 39.75
BEP In Unit 124875 136016 144147 145671 159064
Kraft paper bag 35678 54097 46750 46719 47773
seed paper box 89196 81920 97396 98953 111290

Contribution Margin
Ratio 0.27 0.26 0.27 0.27 0.27
1,81,34 1,94,18 2,08,08 2,10,37 2,30,38
BEP In Amount ,683.10 ,679.13 ,112.92 ,358.82 ,300.95

41
42
43