BUSINESS PLAN

ON
PLASTIC RECYCLING

PRESENTED BY :-

Abhimanyu
Sharma
FMS-IRM
Objectives
• To set up a plastic recycling plant
and to enable proper use of plastic

• To create awareness about plastic –

uses and harms

• To earn profits by selling recycled

plastics

• Once we capture the market we will

open branches in other area and
CAPACITY

• We will use 120 million Kgs per year from

post-consumer bottle feed stock.

• The Company will use almost all of its

recycled material in its Packaging Division.

• The sheet may be sold to manufacturers,

who will convert it into high-visibility
packaging or use it in other high value
added manufacturing operations.
TECHNOLOGY
TECHNOLOGY
• We will use cleaned and recycled plastic
recovered from post-consumer beverage
bottles and manufacturing waste.

• We will create a plant to manufacture

plastic roll stock sheet, employing state-of-
the-art technology developed to utilize
recycled material.

• The sheet will be primarily sold to

laminators and fabricators who will convert
it into high visibility packaging.

• The sheet will be sold to commercial users

START- UP SUMMARY

• Start-up costs are approximated at

Rs. 40,00,000 , which primarily
consists of product costs and
expenses associated with
establishing a marketing program .

Now we explain projected sheet start

up Business.
START UP
Requirements
Start-up Expenses
Legal Rs.45,000
Insurance Rs.27,000
Rent Rs.58,000
Other Rs.36,000
Total Start-up 1,66,000
Expenses
Start-up Assets
Needed
Cash Balance on 25,00,000
Starting Date
Start-up Inventory 1,50,000
CONT…………
Total Current Assets Rs.26,50,000
Total Assets Rs.26,50,000
Total Requirements RS.28,16,000
Funding
Investment Rs.600,000
Total Investment Rs.600,000
Current Liabilities
Accounts Payable Rs.1,50,000
Total Current Rs.1,50,000
Liabilities
CONT…………
Loss at Start-up Rs.80,000
Total Capital Rs.4,34,000

Working capital = current asset – current liabilities

Total current assets:- Rs.26,50,000

Total current liabilities :- Rs.1,50,000
working capital = Rs.26,50,000 – Rs.1,50,000
= Rs.25,00,000
PROJECT COST AND
DETAILS. .
• Anticipated value of plants and machinery
= Rs.1.5 crore

• Anticipated production per annum 24

million kgs of capacity.

• Anticipated cost of working capital = 25

lakhs.

• Anticipated cost of office furnishing,

marketing setup etc. 50 lakhs
Returns expected:
• The cost of raw material = Rs. 7 per
KG (we shall buy used plastic bottles
etc. )

• We expect that we shall be able to

produce 20% recycled plastics out of
this. In the initial phase, the
production will be less. We expect
that in the first month, we shall buy 1
million KG of raw material, which will
Estimated costs and
benefits. . .
• Our fixed expenses are as under:
• Interest on 2.5 crores of capital @
16% per annum = 40 lakhs
• Salary of staff = 30 lakhs
• Wages etc. = 10 lakhs
• Others = 90 lakhs
• Total = 1.7 crores.
BEP CALCULATION.
• We expect that we shall be able to sell
strapping @ 50 per KG to wholesalers all
over the world.

• Our costs per kg are as under:

• (7 * 5 = 35 + electricity charges, chemical

charges etc. ) = 42 per KG.

• Thus contribution is Rs. 8 Per Kg.

BEP. .
• 1.7 crores / Rs. 8 (Fixed cost /
Contribution)

• =17000000/8

• =2125000 or 22 lakh KG.

• We hope to achieve break even in the first

year itself. (at least 2 lakh KG per month
will give 24 lakh KG).
IMPACT OF OUR B-PLAN
• Our business plan will enable to solve
the problem of wastage material
problems

• Our business plan will help to provide

better material with lower cost

• Our business plan is totally based on

society welfare so that this will be