Preface

INTRODUCTION:
Recycling is processing used materials (waste) into new products to
prevent waste of potentially useful materials, reduce the consumption of
fresh raw materials, reduce energy usage, reduce air pollution (from
incineration) and water pollution (from land filling) by reducing the need for
"conventional" waste disposal, and lower greenhouse gas emissions as
compared to virgin production. Recycling is a key component of modern
waste reduction and is the third component of the "Reduce, Reuse, Recycle"

waste hierarchy. Recyclable materials include many kinds of glass, paper,

metal, plastic, textiles, and electronics. Although similar in effect, the
composting or other reuse of biodegradable waste such as food or garden
waste is not typically considered recycling. Materials to be recycled are
either brought to a collection center or picked up from the curbside, then
sorted, cleaned, and reprocessed into new materials bound for
manufacturing.
In the strictest sense, recycling of a material would produce a fresh
supply of the same materialfor example, used office paper would be converted
into new office paper, or used foamed polystyrene into new polystyrene. However,
this is often difficult or too expensive (compared with producing the same product
from raw materials or other sources), so "recycling" of many products or materials
involve their reuse in producing different materials (e.g., paperboard) instead.
Another form of recycling is the salvage of certain materials from complex

products, either due to their intrinsic value.

EXECUTIVE SUMMARY:
The increasing level of consumption and community activities also
resulted in increasing effluent or waste generated. Sewage or effluent generated
from the activity and consumption is often called domestic waste or garbage. The
waste into environmental problems due to the quantity and level of danger disrupt
the lives of living beings.Waste is waste resulting from a production process both
industrial and domestic (household, better known as trash), whose presence at a
particular time and place is not desired by the environment because it does not have
economic value. One type of waste is the most widely produced plastic waste.Plastic
is an artificial inorganic materials are composed of chemicals are quite harmful to
the environment. Plastic waste is very difficult to disentangle natural. To elaborate
on plastic waste itself requires approximately 80 years to be degraded completely.
The use of plastic materials can be said to be friendly to the environment or
conservative when used without specific restrictions.
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 Terephthylene) 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 shall 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 postconsumed 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 Rs 34, 40,000.
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.

COMPANY OVERVIEW:
Our company will provide a wide range of plastic solutions for
households and raw material for packaging to the various companies. Multan
is the place where the facility will be established and other operation will
commence.
We will collect the plastic garbage like consumer beverage bottles, plastic
bags from various garbage stores and then our recycle unit will process it
which eventually be used for the production of finished goods.
The plastic garbage we are getting as raw material has two
components one is PVC (Polyvinyl chloride) and other is PET (Polyethylene
Terephthylene). Firstly the whole garbage is melted and then PVC and PET
are separated from each other by froth flotation technique.
We will create a plant (actual facilities to be shared with the
recycling unit) to manufacture extruded plastic flakes (purified plastic). The
extruded plastic is then molded in the various products.
We will produce two types of replay plastics

PVC (Polyvinyl chloride)

PET (Polyethylene terephthylene)

MISSION STATEMENT

Strive to provide the excellent plastic solution to the customers at

competitive prices.

Continually expand our range of products.

Poised to service both large and small customers.

By educating the public about and encouraging them to utilize

our company Recyclings programs.

By ensuring that the organization operates as a model of

environmental excellence.

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 Multan and the cities around it like Rahim yar khan, Muzaffer
garh, Rajanpur 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 Multan and related areas 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 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 30 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.
Strong demand for recycled plastics is working in the industry's
favor. Major users of plastic packaging, apparently responding to consumer
desires, have begun incorporating at least some recycled plastic content in

their products as part of the growing interest in recycling. Recycled resin

demand is on the rise as prices for the two major recycled resins, PET and
HDPE, continue to hold value or appreciate against their virgin counterparts.
In volume, PET is currently the number one recycled resin. Supply of recycled
PET is in excess of 800 million pounds per year. This figure is expected to
grow, reaching over 1 billion pounds during the next few years. The plastics
industry has developed new markets and applications for recycled resins
from both post-consumer and post-industrial sources.
PET leads the recycled recovered resins as the most visible and valuable, and
its use is increasing. Of the total 3.7 billion pounds of PET consumed in 1997,
just 16% was from recycled sources. Of the more than 90 billion pounds of
plastics produced annually in the United States, less than 5% is from recycled
sources. Plastics, after aluminium, represent the second highest value
material in the waste stream and have the highest projected growth rate.

OBJECTIVES:

Develop a business that survives on its own cash.

Create a company that exceeds customer satisfaction level.

Expand the service to Punjab in first five years and then to whole
country.

Gain increased by 20% each year.

Growing great creative industry in the plastic recycling business.

Being a company that contributes to saving the environment

Improve employee well-being and satisfaction

KEY TO SUCCESS:
The main keys to the success of the Company are:

Secure Supply- Contract for supply of post-consumer bottles and postindustrial 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 thermo formers (those who mold plastic
sheets into usable products) primarily to be used to produce highvisibility 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,
tyre 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.

MARKET COMPARISON:
While quality and delivery are important factors to our potential clients, price is
most often the determining factor in a buying decision. Good-quality packaging
products manufactured from recycled (less expensive) resins, as close as practical to
the end customer's operations, will be most competitive and achieve a significant
market share. These factors have helped to determine the business

parameters of Replay Plastics.

INDUSTRY AND MARKETPLACE ANALYSIS

INDUSTRY ANALYSIS:
Plastic recycling is an industry in itself in Pakistan. According to the
Crisil research 7360 companies are working in this industry with a turnover of
Rs 9200 Crore provides employment to 3.5 million people. The domestic
demand of plastic has grown by 9% and reached to 4.5MMT in year 2005.The
GDP has grown during this period at 6.3% and plastic industry 1.3 times of
GDP. According to the Crisil report the demand of plastic by 2012 will be
around 12MMT. The plastic consumption in Pakistan is booming. Demand for
commodity plastics is growing at the rate of 15% per year. Pakistan holds
immense potential for the use of plastic in the infrastructure and agriculture.
In case of packaging industry we are using more plastic than the developed
countries. The growth is driven in three major sectors infrastructure that is
13% of the total, packaging is 15% of the total and 10% for plastic consumer
durables. It is projected that the plastic waste generation will reach the will
reach the level of 1.6 million tons annually. Pakistan produces 5600 tons of
plastic waste per day.

Region wise and polymer wise turnover of recycling industry in Rs.Crore

Region

PVC

PET

West

156

383

East

75

86

North

338

158

South

111

139

Total

680

766

Each region is specialized in one type of plastic viz south: PET; north: PVC;
Plastic Foundation estimates the current plastic recycling rate at 60%. One estimate
is that about 20,000 microenterprises are engaged in reprocessing and recovery of
plastic waste in addition to 180,000 of various sorting and washing units, 60% of
which are unregistered.

STRUCTURE OF THE PLASTICS INDUSTRY

Raw Material Producers:
These are chemical and petroleum companies who produce "virgin" plastic
(sometimes called resin or polymer) in huge quantities. The main influence
they have on the recycler is to fix prices and availability of virgin materials.
Virgin material is delivered in powder or pellet form, in plastic or paper sacks
of around 20 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 provide
the manufacturers of plastic goods with technical advice and the most
suitable materials or mixtures for each individual need. The compounder is
often the best market for the recycler because he possesses superior
technical knowledge and has a large volume throughput of virgin material, in
which small percentages of reclaim will reduce cost without seriously
affecting the quality required by the molder.

Stockists:
These warehouses stock polymers and compounds but neither manufacture
themselves, nor provide a compounding service. They may be agents or
subsidiaries of the producer companies or departments of companies
concerned with the supply of other materials such as chemical, rubber or
paper. They may be willing to stock reclaim alongside virgin materials,
especially if these are in short supply.

Specialist Manufacturers or Molders:

These buy their raw materials from compounders. If they do their own
compounding, or if the material is used as produced and does not need
compounding, they may buy direct from stockists or producers. They are
specialists in plastics and do not perform other types of manufacturing. They
may be an attractive market to the recycler because they operate at high

volume, but rarely 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
in the manufacture of some other product. For example shoe and boot
makers use plastics extensively and may carry out the various plastics
molding operations in the same production sequence as the work in leather,
canvas, rubber etc. Many 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
Makers and other sector of the plastics industry justifies mention although
not customers for reclaim. The makers and suppliers of plastics
manufacturing machinery, tools, moulds and dies are well informed about
who does what, who makes what and who uses what within the local plastics
industry. They may advise who is likely to buy material.

MARKETPLACE ANALYSIS:
Various overseas players wish to explore the Pakistani market and invest in
opportunities thrown open by the country. 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 Punjab around
20,000 families are our direct prospective customers and in terms of business-tobusiness 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 try to 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. So in case of
business-to-business market they are our direct competitors. Multan will be the plastic
recycling city of Punjab. The direct threat we will also have is with the companies
operating in Punjab.

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 part of Punjab. 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 provide high-end PET flakes for the perfect
packaging.
we 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 works 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 Punjab and city and close to it. We will
have a distribution center in the Multan 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:

We shall use different promotional strategies. 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 and 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 centre 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

1620000

2106000

2737800

3559140

Monthly sales

135000

175500

228150

296595

PET Sales

94500

122850

159705

207617

Household
items

40500

52650

68445

88978.5

Annual sales

DEVELOPMENT:
The development of company 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 centre 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 point. 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 our company.
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 company 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

Unskilled

Belt Conveyer

Semiskilled

PET Separator

Semiskilled

Packaging

Unskilled

OPERATIONS:
The operations is defined as the process used to deliver your products and service to the
customer market place and also include manufacturing 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
Warehouse
The facility is located in an area of 3000 sqft. Apart from these two units there will be an
office that will look for the perpetual supply of required raw material and also take care
about the outbound logistics. The production capacity is 80kg/hr.
The operations will be based upon JIT i.e. just in time. We will have contracted with the
suppliers who can supply the raw material as quickly as we want. The raw material
contains post consumer beverage bottles and other plastic materials. The bottles and
other plastic material that can be recycled have a specific 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 and PVC
cannot be recycled simultaneously due to their different properties. There will be two
units running parallel to each other. On unit will recycle and produce PVC plastic and
other will perform the same for the PET plastic.
The recycled PVC is then moved for the plastic injection-molding unit in the various
shapes. Since there are a variety of product is being produced so the preference will be
given to that product whose demand is high. All the products will not be produced each

and every day. There will be different products that will 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 the
warehouse according to the demand of raw material that different companies need and
other part will move for the molding in bottles.
The recycled PET flake is then heated and made the viscous solution of it. The PET resin
is then feeded to the molder and molder will give it various shape bottles. And then it
left for drying. Those products that further need for 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 usefulness involves
the following essential steps:

Sizing / Chipping

Cleaning

Segregation.

Agglomerating / Colouring

Extrusion / Palletisation

Fabrication into end Product.

Chipping:
The plastics waste should be properly sized so that those may be fed into the extruders
for processing and palletizing. The sizing operation depends on the type and shape of
the waste plastics.

During this process, attention is required to separate any powdery material from the
sized / chipped plastics.

Segregation:
Certain polymeric materials are compatible with each other at all proportions. For
example LDPE are generally compatible to each other at all proportions.
The advanced technology of separating / segregating different types of waste plastics
involves Floatation Process. In this process the property of the varying densities of
different plastics is made use of for segregating different types of plastics.
However in the Pakistani Context, this separation or segregation process, in many cases,
are done by manual process utilizing the availability of cheap and expert labor force. In
case the waste is contaminated with embedded metals, proper method of separating
the metals / other contaminants is required.

Cleaning:
The scale of cleaning depends on the type of waste. Whenever a cleaning operation is
involved, it is to be ensured that the water or any other cleaning material used, should
be discharged after ascertaining that the discharge does not contain any objectionable
substance. A proper Treatment Device may have to be deployed like a water
treatment plant / effluent treatment plant. For drying, a suitably designed drier is used.
Many industries situated outside the metropolises, use open space for natural drying of
the cleaned waste.

Agglomerating / Colouring:
In the next operation the sized plastics waste is mixed with colour master batch in highspeed mixers / agglomerators and the output is ready for extrusion into pellets.
Extrusion / Palletisation:
This is the most important part of the process where in the sized / chipped plastics 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 the plastics waste.
Fabrication into end Product:
Finally the reprocessed plastics granules are used as raw material for producing end
products using similar fabrication machines like Injection Molding / Extrusion etc.,
depending upon specific requirement.

Scope of operations :
Suppose now presently our production capacity is 200kg/day from which in initial stages
we are utilizing around 50% of it. As the business expands we will reach to optimum
capacity utilization. We are expecting that we will start producing more advance plastics
in the fourth year of our operations and accordingly the sales will increase and the
facility will have to be expanded.

Supply chain:
In the city there are various small post consumer plastic bottle collectors. To make a
continuous supply of raw material we will have four suppliers with us. There will be one
permanent supplier that will continuously supply the raw material. In case of excess

demand other suppliers will be taken into consideration. Supplier will cover the
transportation cost only. The finished product will be stored in the warehouse and
according to the demand it will be send to city distribution center. The distribution
center will directly sell the finished household plastics as well as to the small shops.

Process Flow Chart

Gantt chart

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

FINANCIALS:
The startup cost of our business is as follows:
Start-up
Requirements

Amount

Start-up Expenses
Legal

6,000

Stationery

500

Business Cards

500

Initial Mailing

100

Process Funding

400

Office Equipment

2,500

Total Start-up Expenses

10,000

Start-up Assets
Cash Required

1,00,000

Other Current Assets

Long-term Assets

33,30,000

Total Assets

34,30,000

Total Requirements

34,40,000

INCOME STATEMENT:
The estimated projected income is as shown below it shows that first year we will
end up with loss but from second year we will start making profits.
Particulars

YEAR 1

YEAR 2

YEAR 3

Year 4

Net sales

1620000

2106000

2737800

3285360

Cost of good sales

891000

1158300

1505790

1806948

Gross margin

729000

947700

1232010

1478412

Admin exp.

3000

3150

3308

3473

Advertisement

6000

7200

8640

10368

Salaries

192000

211200

232320

255552

Transportation

96000

105600

116160

127776

Operating expenses:

Maintenance

15000

15750

16538

17364

Electricity

4800

5040

5292

5557

Telephone

10000

11000

12100

13310

Legal exp.

10000

1000

1000

1000

Insurance

20000

20000

20000

20000

Rent

24000

26400

29040

31944

Other exp

6000

6600

7260

7986

386800

412940

451657

494330

EBITDA

342200

534760

780353

984082

less depreciation

303000

272700

245430

220887

EBIT

39200

262060

534923

763195

Less interest paid

175550

165061

153243

139926

EBT

-136350

96999

381680

623269

tax @ 30%

29100

114504

186981

PAT

-136350

67899

267176

436288