Busness Pan

Ra|nsh
Chaubey
IBMR Bangalore
QUASAR PLASTICS
Quality at the BEST
| y e a r - 2 0 0 8 - 2 0 1 0 |
1 | O u a s a r P a s t c s
2 | O u a s a r P a s t c s
This is business plan is submitted to the IBMR Bangalore as a part of
curriculum.
Submitted by:
Rajnish umar !haubey
"#$M %&''()&'*'+
3 | O u a s a r P a s t c s
T,B-. /0 !/1T.1T
EXECUTIVE
SUMMARY
.
C!MPA"Y
!VERVIE#
..$
MISSION........
.......................................
.....5
MARKET AND
PRODUCT..................................
.........6
OB|ECTIVE.................................
..................6
KEY TO SUCCESS..
.......................................
........6
PR!%UCT A"% SERVICE
%ESCRIPTI!".
.&
MARKET COMPARISON...........
................................7
POSSIBLE OBSTACLES.................
.............................7
I"%USTRY A"% MAR'ET PLACE A"ALYSIS.
.(
INDUSTRY ANALYSIS......................
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MARKETPLACE ANALYSIS...........................
................6
| O u a s a r P a s t c s
CUSTOMER
ANALYSIS..................................
.........11
COMPETITOR
ANALYSIS..................................
.......12
MAR'ETI") STRATE)Y.
12
PRODUCT SERVICE STRATEGY..
......................................13
PRICING STRATEGY..................
...........................13
DISTRIBUTION
STRATEGY..................................
......13
ADVERTISEMENT AND PROMOTION
STRATEGY............................13
SALES
STRATEGY..................................
...........13
SALES
FORECAST.................................
............13
%EVEL!PME"T

.1
DEVELOPMENT STRATEGY..
.......................................1
4
MA"A)EME"T.

.1$
$ | O u a s a r P a s t c s
!PERATI!"S.

..1*
SCOPE OF
OPERATIONS................................
...........20
SUPPLY CHAIN........
.......................................
.21
PROCESS FLOWCHART...........
................................22
GANTT
CHART...................................
............23
FACILITY
LAYOUT...................................
...........24
+I"A"CIAL STATEME"T.
..2$
STARTUP
EXPENCES..................................
.........25
INCOME
STATEMENT.................................
..........26
BALANCE SHEET..........
.....................................27
BREAK EVEN
POINT....................................
........28
APPE"%IX
.2(
* | O u a s a r P a s t c s
Bi,li-./a0hy

33

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 P!T (Polyethylene
terephthylene plastics have their considerable contribution. P!T plastics are
generally used in the "anufacturing of beverage bottles for the packaging and
PVC plastic is used in the production of household plastic "aterials. The growing
utilization of plastics in industrial and consu"er applications and surrounding
solid waste recycling, has led to an increased de"and for recycled plastic resins
and products.
#e the $uasar plastics provide a wide range of plastic solutions for household
and raw "aterial for packaging of various co"panies. %s a part of our ongoing
efforts to e&ploit this opportunity we will recycle the plastics and then produce
kitchen ware ite"s and other related plastic "aterial. #e will also sell the
recycled plastics to the co"panies in the plastic business. #e will have a
& | O u a s a r P a s t c s
recycling plant along with the production unit. The raw "aterial will be procured
fro" the waste collectors. The raw "aterial will be post consu"ed beverage
bottles and other soft plastic "aterials
'ur "ain focus is our industrial custo"er who" we will sell P!T bottles and P!T
flakes. (t will contribute "ore than )*+ of our sales. #e will also focus on the
household plastic business which is the part of our portfolio. The initial set up
cost will be ,s -., .*,***.
$uasar plastics will be a solution proprietorship business run by the pro"oter
,a/nish 0u"ar Chaubey who is a 12% graduate with finance and "arketing as
specialization.
3ince plastic "aterial does not carry any brand na"e so it will give us an addition
benefit in long ter" to establish our brand na"e. To e&ploit the "arket we will
use penetration pricing as our "arketing strategy and utilize our stringent
distribution network and strong industrial relationship.
%s a future plan in co"ing years we will increase the variety of plastics like 4DP!
(4ow density polyethylene and 5DP! (5igh density polyethylene. 2y doing this
we will be able to produce plastic carry bags and raw "aterial for production for
plastic chairs and tables and other fiber based products.
COMPANY OVERVIEW
$uasar Plastics provide a wide range of plastic solutions for households and raw
"aterial for packaging to the various co"panies. %llahabad is the place where
the facility will be established and other operation will co""ence.
#e will collect the plastic garbage like consu"er beverage bottles, plastic bags
fro" 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 "aterial has two co"ponents one is
PVC (Polyvinyl chloride and other is P!T (Polyethylene terephthylene . 6irstly
the whole garbage is "elted and then PVC and P!T are separated fro" each
other by froth flotation techni7ue.
1 | O u a s a r P a s t c s
#e will create a plant (actual facilities to be shared with the recycling unit to
"anufacture e&truded plastic flakes (purified plastic. The e&truded plastic is then
"olded in the various products.
#e will produce two types of replay plastics
PVC( Polyvinyl chloride
P!T( Polyethylene terephthylene
Mission Statement
$uasar Plastics
3trive to provide the e&cellent plastic solution to the custo"ers at
co"petitive prices.
Continually e&pands our range of products.
(s poised to service both large and s"all custo"ers.
Markets and Products
The plastic products usually do not carry a brand na"e so intruding in the
business like plastic will not be too hard with low price strategy. The population of
%llahabad and the cities around it like Varanasi, 8orakhpur, 9ohnpur is around
-Cr. and this area is basically co"prises of low to "iddle inco"e group fa"ilies
so they focus on plastic products rather than fiber since it is a cheaper. 5ence it
is huge "arket to e&ploit.
6ro" %llahabad city :** tons of solid waste is produced fro" that ;:tons of
plastic bags and around < tons of plastic bottles is generated per day. 3o the
supply of raw "aterial will be continuous.
%part fro" this we will sell raw "aterial for packaging to the various s"all
co"panies in this area. %round -* s"all and "ediu" scale co"panies are
working in this region. 3o a large a"ount of industrial custo"er is also available.
There are two folds of products that we are providing one is industrial and other
is household.
( | O u a s a r P a s t c s
O!ectives
Develop a business that survives on its own cash.
Create a co"pany which e&ceeds custo"er satisfaction level.
!&pand the service to whole =P in first five years and then to Delhi.
!&tending the services to electronic co"ponent "anufacturing co"panies
for production of capacitors printed circuit boards etc.
"ey to success#
The "ain keys to the success of the Co"pany are>
3ecure 3upply? Contract for supply of post?consu"er bottles and post?
industrial "anufacturing waste for P!T raw "aterial feed stock.
3atisfy our custo"er so that we can retain the"
1aintain low overhead and operating costs
Provide better prices than all our co"petitors
Product and services
#e will provide a wide range of plastic products for households and raw "aterial
for packaging.
The recycled plastic is processed to Polyethylene Terephthalate (P!T. P!T is a
ther"oplastic poly"er viscous of polyester fa"ily. The biggest property of this
co"pound is it transparent. This is the reason why it is used for packaging. %part
fro" this P!T have good strength, ductility, stiffness and hardness. %fter the
recycling process co"pleted an e&truded plastic is generated. Plastics e&trusion
is a high volu"e "anufacturing process in which raw plastic "aterial is "elted
and for"ed into a continuous profile.
The products we are producing are
Cleaned and recycled plastic flakes of P!T and bottles, recovered fro"
post?consu"er beverage bottles. (this P!T will work as raw "aterial for
packaging to various fir"s, not for the end user
5ousehold finished plastic goods. #e are "anufacturing plastic tubes of
various dia"eter, plastic kitchen ware. ( for the end user
12 | O u a s a r P a s t c s
P!T flake will be sold to ther"o for"ers (those who "old plastic sheets into
usable products pri"arily to be used to produce high?visibility packaging. %nd
also to the beverage co"panies for packaging.
,ecycled plastic is widely used in "ainstrea" construction products such as
da"p proof "e"brane, drainage pipes, ducting and flooring. 2ins, street signs
and planters are fre7uently "ade fro" plastic. They are cost co"petitive and
resistant to da"age. 4ocal authorities and schools are able to de"onstrate
recycling in action by specifying recycled products
5igh strength P!T is used in the clothing, furnishings, tyre cord and technical
te&tiles
%part fro" P!T the household plastic will be directly sold to the end custo"ers.
(n day to day life plastic ite"s like water bottles, shop case scrubber etc is
fre7uently used. 3o there is a big de"and of these in local "arket.
Market com$arison
#hile 7uality and delivery are i"portant factors to our potential clients, price is
"ost often the deter"ining factor in a buying decision. 8ood?7uality packaging
products "anufactured fro" recycled (less e&pensive resins, as close as
practical to the end custo"er@s operations, will be "ost co"petitive and achieve
a significant "arket share. These factors have helped to deter"ine the business
para"eters of ,eplay Plastics.
Possi%e ostac%e
The product is co"pleted and ready for the "arket launch. The possible
obstacles are
&navai%a%e or scarce ra' materia% stock (or $roduction
,eplay is confident that it has secured good availability of low cost post?
consu"er P!T bottles (feed stock derived fro" post?consu"er beverage
bottles. (t "ay be possible that we would not get desired raw "aterial.
Com$any may not meet environmenta% standards
This environ"entally?favorable venture provides for the develop"ent of
technically feasible and econo"ically viable solutions to P!T plastic
beverage bottle recycling, as well as environ"entally aware in?house re?
use practices which filter and return nearly all of the process water to the
production lines

11 | O u a s a r P a s t c s
Industry and market$%ace ana%ysis
Industry ana%ysis
Plastic recycling is an industry in itself in (ndia. %ccording to the Crisil research
<-)* co"panies are working in this industry with a turnover of ,s AB** Crore
provides e"ploy"ent to -.: "illion people. (n (ndia per capita plastic
consu"ption in lowest in the world. The per capita consu"ption is /ust one fifth of
world average which is :kg. the do"estic de"and of plastic has grown by A+
and reached to ..:11T in year B**:.The 8DP has grown during this period at
).-+ and plastic industry ;.- ti"es of 8DP. %ccording to the Crisil report the
de"and of plastic by B*;B will be around ;B11T. The plastic consu"ption in
(ndia is boo"ing. De"and for co""odity plastics is growing at the rate of ;:+
per year. .(ndia holds i""ense potential for the use of plastic in the infrastructure
and agriculture. (n case of packaging industry we are using "ore plastic than the
developed countries. The growth is driven in three "a/or sectors C infrastructure
which is ;-++ of the total, packaging is ;:+ of the total and ;*+ for plastic
consu"er durables. (t is pro/ected that the plastic waste generation will reach the
will reach the level of ;.) "illion tons annually.
(ndia produces :)** tons of plastic waste per day.
,egion wise and poly"er wise turnover of recycling industry in ,s.Crore
,egion PVC P!T
#est ;:) -D-
!ast <: D)
Eorth --D ;:D
3outh ;;; ;-A
Total )D* <))
!ach region is specialized in one type of plastic viz south> P!TF north> PVCF
The current plastic recycling rate is esti"ated as )*+ by Plastic (ndia
6oundation. 'ne esti"ate is that about B*,*** "icroenterprises are engaged in
reprocessing and recovery of plastic waste in addition to ;D*,*** of various
sorting and washing units, )*+ of which are unregistered .Delhi alone has
esti"ated :-,.** units and Delhi and 2o"bay together process over :*+ of
(ndia@s waste plastics.
12 | O u a s a r P a s t c s
S)R&C)&RE O* )+E P,AS)ICS IN-&S)RY
The following pattern is likely to be general but there will be so"e variation fro"
country to country.
Ra' Materia% Producers
These are che"ical and petroleu" co"panies who produce GvirginG plastic
(so"eti"es called resin or poly"er in huge 7uantities. The "ain influence they
have on the recycler is to fi& prices and availability of virgin "aterials. Virgin
"aterial is delivered in powder or pellet for", in plastic or paper sacks of around
B* kilos weight, in large cardboard dru"s that hold "any ti"es that 7uantity or
even by road tanker.
Com$ounders
These specialist co"panies, usually s"all, stock various poly"ers and provide
the "anufacturers of plastic goods with technical advice and the "ost suitable
"aterials or "i&tures for each individual need. The co"pounder is often the best
"arket for the recycler because he possesses superior technical knowledge and
has a large volu"e throughput of virgin "aterial, in which s"all percentages of
reclai" will reduce cost without seriously affecting the 7uality re7uired by the
"older.
Stockists
These warehouses stock poly"ers and co"pounds but neither "anufacture
the"selves, nor provide a co"pounding service. They "ay be agents or
subsidiaries of the producer co"panies or depart"ents of co"panies concerned
with the supply of other "aterials such as che"ical, rubber or paper. They "ay
be willing to stock reclai" alongside virgin "aterials, especially if these are in
short supply.
S$ecia%ist Manu(acturers or Mo%ders
These buy their raw "aterials fro" co"pounders. (f they do their own
co"pounding, or if the "aterial is used as produced and does not need
co"pounding, they "ay buy direct fro" stockists or producers. They are
specialists in plastics and do not perfor" other types of "anufacturing. They "ay
be an attractive "arket to the recycler because they operate at high volu"e, but
rarely have as "uch fle&ibility to vary product 7uality as "olders who know,
accurately, the final "arket for the product.
Ot.er Manu(acturers
1any co"panies are not plastics specialists but e"ploy "olding operations in
the "anufacture of so"e other product. 6or e&a"ple shoe and boot "akers use
plastics e&tensively and "ay carry out the various plastics "olding operations in
the sa"e production se7uence as the work in leather, canvas, rubber etc. 1any
13 | O u a s a r P a s t c s
"anufacturers use plastic packaging "achinery at the end of a production
operation.
*aricators
These fir"s cut and /oin sheet, rod or e&trusion to "anufacture a variety of
products. They have no opportunity to use reclai". 1achinery and Tool 1akers
'ne other sector of the plastics industry /ustifies "ention although not custo"ers
for reclai". The "akers and suppliers of plastics "anufacturing "achinery, tools,
"oulds and dies are well infor"ed about who does what, who "akes what and
who uses what within the local plastics industry. They "ay advise who is likely to
buy "aterial.
Market$%ace ana%ysis
Various overseas players wish to e&plore the (ndian "arket and invest in
opportunities thrown open by the country, pro/ected to be world nu"ber - in
plastics consu"ption by B*;*.%s shown above the north region of (ndia is
specialized in recycling of PVC. 3o there is a great scope of P!T recycling.
%part fro" this the other
% huge "arket with full of opportunity.
%bsence of standard product and service
#ell connected with other rural areas
5aving good transportation facility
Customer ana%ysis
3ince we are new player in the "arket so we need to "ake so"e stringent
strategies to penetrate "arket and grab custo"ers. The custo"ers of the plastic
industry are scattered due to lack well known brand na"es. 3o our first priority
will be to accu"ulate the defused custo"ers.
The direct custo"ers are the custo"ers who" we are selling our product
regularly. 3o for us households who" we are selling plastic goods and
co"panies who are getting raw "aterials for packaging are direct custo"ers
(P!T bottles. 3o only in %llahabad around B*,*** fa"ilies are our direct
prospective custo"ers and in ter"s of business to business "arket around B*
s"all and "ediu" scale co"panies are our direct custo"ers
%part fro" the" there are few s"all co"panies which are giving co"pounding
services. They use to collect various types of plastics flakes along with the virgin
plastic and suggest custo"er (co"panies in choosing appropriate plastic. %n
%sha enterprise is one co"pounder who" we will sell our plastics.
1 | O u a s a r P a s t c s
Com$etitor ana%ysis
(n plastic "anufacturing "arket there is no specific brand na"e is e&isting so the
"arket is flooded by s"all co"panies which are in this business. 3o they are our
biggest direct co"petitors.
%s we are also not alone as a supplier of P!T to the co"panies as raw "aterials
there are "any co"panies in this region which are supplying P!T. (ndira Plastics
is one of the" who is currently selling all types of plastics ite"s. 3o in case of
business to business "arket they are our direct co"petitors. 0anpur is plastic
recycling city of =P. The direct threat we will also have is with the co"panies
operating in 0anpur. 2ut as the distance between 0anpur and %llahabad is
)**k" as well as the road is not in good condition, so it will not affect "uch.

Marketin/ strate/y
The Co"pany has chosen to focus on the production of plastic packaging
"aterials fro" recycled post?consu"er beverage bottles. we have identified a
significant available "arket in the eastern part of =P. %ll of our initial "arketing
strategy will be to secure contracts in that seg"ent, and after reaching full
planned capacity, look to grow in concert with that seg"ent and related "arkets.
#e see little need at present for further "arket research and develop"ent, and
will focus on continually updating our production technology in an effort to re"ain
in the forefront of our chosen "arketplace.
Product0 service strate/y
The packaging co"panies re7uire high 7uality and highly transparent P!T
bottles. The co"panies which are producing "ineral water will re/ect P!T bottles
with even a s"all i"purityH opa7ueness. 3o we the $uasar Plastics provide high
end P!T flakes for the perfect packaging.
$uasar Plastics will apply recycling and e&trusion technology "anaged by
decades of industry specific e&pertise to create a co"petitive advantage for its
clients. These processes will produce clean, cost?efficient, recycled raw "aterial
for "anufacturers of ther"ofor", la"inate and other high value?added products,
and high strength packaging strapping for shippers of large products and pallets,
thereby reducing costs and creating a clear pricing edge a"ong their
co"petitors.
Plastic bags and plastic sheets are now in high de"and. %nd this de"and is
driven by continuously increasing pro"otional activities.
Pricin/ strate/y
%s plastic products do not carry any brand na"e so only pricing and distribution
strategies will works to achieve co"petitive edge. The pricing strategy we will
use is penetration pricing. The price of all household plastic goods we will sell will
1$ | O u a s a r P a s t c s
be lower than the "arket price. %lso for the P!T flakes and bottles the price will
be lower than the co"petitors. % lower price enables "e to get contracts of P!T
bottles and sheets fro" various co"panies.
(n case of kitchenware and other household products we will provide co"bo
offers and discounts which a co""on custo"er e&pects.
-istriution strate/y
%s ( described before that firstly we will target %llahabad city and villages close to
it. #e will have a distribution center in the %llahabad city which continuously
"aintains the supply of goods. 3o the household plastics will be sold through
s"all local grocery shops fro" which the custo"ers can get the" easily. %part
fro" this we will hire street hawkers who will roa" around the city and sell the
goods door to door.
P!T bottles will be stored in warehouse which is close to the facility itself. The
sales people will directly contact to the co"panies which re7uire these bottles for
packaging and look for the contracts. (n city as stated above that we will have a
distribution center, fro" that center we will distribute to whole sellers.
Advertisin/ 1 $romotion strate/y
%s ( described we are in both 2BC and 2B2 so for this we will use two different
pro"otional strategies. 6or 2BC business we will use flyers which will have full
detail of our product range, price, co"bo offers and discounts. These flyers will
circulate through the newspapers across whole city. 6or 2B2 business we will
pro"ote through online social "edia and we will also develop our website
through which enable us to widely spread our contact a"ong various co"panies.
the site will have full details of product which are available for co"panies as well
as end user.
Sa%es strate/y
The strategy of sales effort will be to convert potential and first ti"e custo"ers
into long ter" custo"ers. 'ur sales strategy is totally based upon the distribution
channel and the pricing strategies. #e will have a distribution centre in the city
that will take care of sales of household and also supply products to the
wholesalers. #e will also give the industrial custo"ers a facility to order the
products through our website which will help the" in reducing the delivery ti"e.
To "arket the products, the Co"pany will use a nu"ber of sales agentsHbrokers.
They have a custo"er base of their own, having developed successful
relationships with their client over the years. Their custo"er base is currently
de"anding product so they can e&pand upon their current base. 'f course, they
will e&pand that to new custo"ers when product is available.
(f the Co"pany grows faster than its pri"e custo"er base, additional capacity
"ay be developed. #e will identify additional prospective custo"ers who can be
attracted for our products.
1* | O u a s a r P a s t c s
Marketin/ 1 sa%es (orecast
The first "onth prior to the opening will be used to get the new office in order, set
up appoint"ent and begin "arketing activities. (n the first "onth we will focus on
the generating public visibility. The sales forecast is based on the assu"ption
that we will sell all of the highest volu"e P!T bottles that we can produce.
This flake will be sold to other "anufacturing co"panies. ,ecycling industry is
growing with ;:?B*+ each year. 3o we can assu"e that we will grow with at
least B*+. There is a continuing strong de"and for flake and e&truded
products "ade fro" recycled P!T.

Sale3 4-/e5a3t
yea/ 1 yea/ 2 yea/ 3 yea/
A66ual
3ale3 1620000 2106000 2737800 3559140
M-6thly
3ale3 135000 175500 228150 296595
PET Sale3 94500 122850 159705 207617
7-u3eh-l8
ite93 40500 52650 68445 88978.5
-eve%o$ment
The develop"ent of $uasar plastics re7uired to acco"plish a series of action
and for"alities. 3ince we are new in the "arket we kept our production is low
initially, as de"and will increase the production will be enhanced respectively.
Eow we are recycling and producing only two types of plastics i.e. PVC and P!T,
as we grow we will produce a wide the range of plastics and its finished product. .
The develop"ent process involves following steps>
4egal for"alities
'fficeHbusiness setup
6uture offerings and e&pansion plan
-eve%o$ment strate/y
(n future we are looking for the production of a variety of plastic. These plastics
will be
4DP! ( 4ow density polyethylene
5DP! ( 5igh density polyethylene
1& | O u a s a r P a s t c s
4DP! plastic is used in the production carry bags and other plastic sheets as well
as cling wrap, car covers, s7ueeze bottles, liners for tanks and ponds, "oisture
barriers in construction. %nd 5DP! plastics are used in production of freezer
bags, water pipes, wire and cable insulation, e&trusion coating.
'ur develop"ent strategy will base on ti"ely co"pletion of the establish"ent of
the business centre with low e&ecution cost. 'ur strategy will focus not only the
current uninterrupted production of PVC and P!T and ac7uisition of custo"er as
fast as we can, but we will also look for the future e&pansion plan and e&ecution
strategy.
'ur future develop"ent strategy will focus on to chart out a careful plan for the
future e&pansion and growth of our business. The develop"ent strategy will
address following issue>
5ow will we e&pand our servicesI
#hich are the new areas we will include to provide our servicesI
#hat will be the for"at of the business
'ur develop"ent strategy will address all those above "entioned point. %s
we will grow and our earning will increase, we will produce "ore of PVC and
P!T as well as e&pand in new area. #e have a develop"ent strategy to
e&pand our facility size in order to "eet the production size.


11 | O u a s a r P a s t c s
Mana/ement
The co"pany will be "anaged by pro"oter and si& supporting staff.
,a/nish 0u"ar Chaubey, a 12% graduate with specialization in 1arketing and
6inance is the owner and pro"oter of $uasar Plastics. 5e has intensive
knowledge and vast understanding in financial areas like ,isk and ,eturn
"anage"ent, (nvest"ent portfolio and Capital 2udgeting, which undoubtedly will
be of intense help in the business. %part fro" this he also has a good knowledge
of che"icals and their properties
1arketing skills like convincing power, negotiating ability, creating pro"otional
strategies and sales skills will all be e&tre"ely helpful in taking the business a
long way and will prove intensely valuable to take $uasar Plastics to flaring
heights.
Thus with such potential skills, and other 7ualities like efficient interpersonal
skills, leadership skills and decision "aking 7uality, aptly "akes hi" the best
pro"oter and eligible founder and owner of $uasar Plastics
%long with pro"oter five "ore e"ployees will work for the acco"plish"ent of
co"paniesJ ob/ective. 'ne supervisor will work on the facility along with two
supporting staff. 3upervisor who will work upon the facility does not need to be a
che"ical engineer a si"ple technician has e&perience on working upon the
facility can be able to do this.
2o descri$tion
Process No o( em$%oyees Pro(iciency
3orting B unskilled
1( | O u a s a r P a s t c s
2elt Conveyer ; se"iskilled
P!T 3eparator ; se"iskilled
Packaging . unskilled

O$erations
The operations is defined as the process used to deliver your products and
service to the custo"er "arket place and also include "anufacturing
transportation logistics travel and after sales services.
The facility is located at outside the city. 6acility is divided in two parts
,ecycling and Production unit
#arehouse
The facility is located in an area of -*** s7ft..%part fro" these two units there
will be an office which will look for the perpetual supply of re7uired raw "aterial
and also take care about the outbound logistics. The production capacity is
D*kgHhr.
The operations will be based upon 9(T i.e. /ust in ti"e. #e will have contracted
with the suppliers who can supply the raw "aterial as 7uickly as we want. The
raw "aterial contains post consu"er beverage bottles and other plastic
"aterials. The bottles and other plastic "aterial that can be recycled have a
specific sign fro" which it can be identified that it can be recycled or not.
The plastic is then transferred to respective unit to be recycled because P!T and
PVC cannot be recycled si"ultaneously due to their different properties. There
will be two units running parallel to each other. 'n unit will recycle and produce
PVC plastic and other will perfor" the sa"e for the P!T plastic.
The recycled PVC is then "oved for the plastic in/ection "olding unit in the
various shapes. 3ince there are a variety of product is being produced so the
preference will be given to that product whose de"and is high. %ll the products
will not be produced each and every day. There will be different products which
will be produced on different day according to the de"and in "arket.
%fter the recycling process is co"pleted one part of P!T flake is "oved to the
warehouse according to the de"and of raw "aterial which different co"panies
need and other part will "ove for the "olding in bottles.
22 | O u a s a r P a s t c s
The recycled P!T flake is then heated and "ade the viscous solution of it. The
P!T resin is then feeded to the "older and "older will give it various shape
bottles. %nd then it left for drying. Those products which further need for
processing like buckets, the handle will be inserted after the bucket is dried.
Stages of Recycling and "roduction
The process of recycling of waste plastics into products of varying usefulness
involves the following essential steps>
3izing H Chipping
Cleaning
3egregation.
%gglo"erating H Colouring
!&trusion H Palletisation
6abrication into end Product.
C.i$$in/#
The plastics waste is then re7uired to be properly sized so that those "ay be
fed into the e&truders for processing and palletizing. The sizing operation
depends on the type and shape of the waste plastics.
During this process, attention is re7uired to separate any powdery "aterial
fro" the sized H chipped plastics.
Se/re/ation#
Certain poly"eric "aterials are co"patible with each other at all proportions.
6or e&a"ple 4DP! and 4ldpe are generally co"patible to each other at all
proportions.
The advanced technology of separating H segregating different types of waste
plastics involves K6loatation ProcessJ. (n this process the property of the
varying densities of different plastics is "ade use of for segregating different
types of plastics.
5owever in the (ndian Conte&t, this separation or segregation process, in
"any cases, are done by "anual process utilizing the availability of cheap
and e&pert labor force. (n case the waste is conta"inated with e"bedded
"etals, proper "ethod of separating the "etals H other conta"inants is
re7uired.
C%eanin/#
The scale of cleaning depends on the type of waste. #henever a cleaning
operation is involved, it is to be ensured that the water or any other cleaning
21 | O u a s a r P a s t c s
"aterial used, should be discharged after ascertaining that the discharge
does not contain any ob/ectionable substance. % proper Treat"ent Device
"ay have to be deployed C like a water treat"ent plant H effluent treat"ent
plant. 6or drying, a suitably designed drier is used.
1any industries situated outside the "etropolises, use open space for natural
drying of the cleaned waste.
A//%omeratin/ 0 Co%ourin/
(n the ne&t operation the sized plastics waste is "i&ed with colour "aster
batch in high?speed "i&ers H agglo"erators and the output is ready for
e&trusion into pellets.
Extrusion 0 Pa%%etisation
This is the "ost i"portant part of the process wherein the sized H chipped
plastics are plasticized and granulated to "ake the plastics "aterial ready for
fabrication ne&t.
The type and size of the !&truder depend on the type and volu"e of the
plastics waste.
*arication into end Product
6inally the reprocessed plastics granules are used as raw "aterial for
producing end products using si"ilar fabrication "achines like (n/ection
1olding H !&trusion etc., depending upon specific re7uire"ent.
Sco$e o( o$erations
Eow presently our production capacity is B**kgHday fro" which in initial stages
we are utilizing around :*+ of it. %s the business e&pands we will reach to
opti"u" capacity utilization. #e are e&pecting that we will start producing "ore
advance plastics in the fourth year of our operations and accordingly the sales
will increase and the facility will have to be e&panded.
Su$$%y c.ain
(n the city there are various s"all post consu"er plastic bottle collectors. To
"ake a continuous supply of raw "aterial we will have four suppliers with us.
There will be one per"anent supplier which will continuously supply the raw
"aterial. (n case of e&cess de"and other suppliers will be taken into
consideration. The transportation cost will be covered by supplier only. The
finished product will be stored in the warehouse and according to the de"and it
will be send to city distribution centre. The distribution center will directly sell the
finished household plastics as well as to the s"all shops.
'ur average daily de"and of raw "aterial is -**kg and the lead ti"e we will
keep lead ti"e of )hrs. #e keep a safety stock of :* kg. 3o the reorder point is
given by
,eorder pointL average daily uses & lead ti"e M safety stock
22 | O u a s a r P a s t c s
,eorder point L -** N .B:day M :*
L ;B: kg.
3o at each and every day we will have "ini"u" of ;B:kg (safety stockM reorder
point of raw "aterial in our inventory.
This "eans that when the raw "aterial level reaches to ;B:kg we will place the ne&t
order. The difference ti"e in which we will place the order and receive the order is the
lead ti"e which is )hrs.
23 | O u a s a r P a s t c s
Process flow chart
3antt c.art
2 | O u a s a r P a s t c s
%s it is an asse"bly line the output of one stage is feeded to the input of ne&t stage. The
whole process will run in series for"at. That is the reason why no parallel process is
"entioned in the gantt chart.
*aci%ity ,ayout
2$ | O u a s a r P a s t c s
*inancia%s
2* | O u a s a r P a s t c s
The startup cost of our business is as follows:
Start )up
Requirements A9-u6t
Start-up Expenses
egal !"###
Stationer$ %##
Business &ar's %##
Initial Mailing (##
)rocess *un'ing +##
,ffice Equipment -"%##
Total Start-up Expenses (#"###

Start-up .ssets
&ash Require' ("##"###
,ther &urrent .ssets #
ong-term .ssets //"/#"###
Total .ssets /+"/#"###

Total Requirements /+"+#"###
Income statement
The pro0ecte' income is as shown below it shows that first $ear we will en'
up with loss but from secon' $ear we will start ma1ing profits.
Pa/ti5ula/3
YEAR
1 YEAR 2 YEAR 3 Yea/
2& | O u a s a r P a s t c s
net saes
16200
00
210600
0
273780
0 3285360
cost of good
saes
89100
0
115830
0
150579
0 1806948
gross margn
72900
0 947700
123201
0 1478412
-0e/ati6.
e:0e63e3;
admn exp. 3000 3150 3308 3473
Advertsement 6000 7200 8640 10368
Saares
19200
0 211200 232320 255552
Transportaton 96000 105600 116160 127776
Mantenance 15000 15750 16538 17364
Eectrcty 4800 5040 5292 5557
Teephone 10000 11000 12100 13310
Lega exp. 10000 1000 1000 1000
Insurance 20000 20000 20000 20000
Rent 24000 26400 29040 31944
other exp 6000 6600 7260 7986

38680
0 412940 451657 494330
EBITDA
34220
0 534760 780353 984082
ess
deprecaton
30300
0 272700 245430 220887
EBIT 39200 262060 534923 763195
Less nterest
pad
17555
0 165061 153243 139926
EBT
-
13635
0 96999 381680 623269
tax @ 30% 0 29100 114504 186981
21 | O u a s a r P a s t c s
PAT
-
13635
0 67899 267176 436288
4a%ance s.eet
The pro/ected balance sheet of four years is as follows>
Sources o( *unds Year56 Year57 Year58 Year59
Ca$ita%
'wner@s capital ;A-**** ;A-**** ;A-**** ;A-****
3urplus ?;-)-:* ?)D.:; ;-*B<. <):BD<

Eet worth ;<A-):* ;D);:.A B*)*B<. B)A:BD<
,on/ )erm %oan
4oan ;.;<-*B ;-B.;;) ;B;A;;; ;;**<DA
Current ,iai%ities
Creditors <*:** :)<BB )D*)) D;)D*

)ota% %iai%ities -BD;.:B -B.B-D< --.<.:; -D<<<:)
A$$%ication o( (und
Plant O 1HC -*-**** B<B<*** B.:.-** BB*DD<*
4ess depreciation -*-*** B<B<** B.:.-* BB*DD<
B<B<*** B.:.-** BB*DD<* ;AD<AD-
4and -***** -***** -***** -*****
%ctual 6i&ed %sset 8:7;::: 7;<98:: 7<:==;: 77=;>=8
Current Assets#
(nventory A<B** -;:A** .;*)<* DB;-.*
2ank ;**** .**** ;***** ;*****
Debtors ;.<B:B ;-B;D< ;;<A;; B-B<*-
%dvance to suppliersJ * * B;**** --:<-*
(nvest"ent ;*****
)ota% Assets 87=69<7 87978=; 889;9<6 8=;;;<?
2( | O u a s a r P a s t c s
4reak Even Point
VC
A9-u6t
i6 R3 +C
A9-u6t
i6 R3
Admn 3000
other exp 6000 Interest 175550
transportat
on 96000
advertsem
ent 6000
teephone 10000 Insurance 20000
wages 119250 Saary 192000
carrage
nward 238500 Rent 24000
power 119250
mantenan
ce 15000
raw matera 414000
deprecato
n 303000
Lega 10000
t-tal 1223222 T-tal &1$$2
5-6t/i,uti-
6 *1&222

pv rato 0.3808642

BEP unts
1965398.70
3 135000
BEP SALES 1$ i6 9-6th3

1.21 In years
32 | O u a s a r P a s t c s

.s the BE) is (%months it means that at (%
th
month we will be in a tra'e off
total expenses an' re2enue.
,ppendi2
,nnuity table:
t-tal l-a6
a9t.<
09t=1>1?@1>
iAB6C?i
6 i3 6u9,e/ -4
yea/3
i i3 i6te/e3t /ate
oan amount
150000
0
###
###
nterest rate
annuay 0.12
###
###
pmt
= 21521
21520.
64
9-6th EMI I6te/e3t
0/i65i
0le
,ala65
e !?S
A66ual
i6te/e3t
1
2152
1 15000 6521
149347
9
2
2152
1 14935 6586
148689
4
3
2152
1 14869 6652
148024
2
4
2152
1 14802 6718
147352
4
5
2152
1 14735 6785
146673
8
6
2152
1 14667 6853
145988
5
7
2152
1 14599 6922
145296
3
8
2152
1 14530 6991
144597
2
9
2152
1 14460 7061
143891
1
10
2152
1 14389 7132
143178
0
11
2152
1 14318 7203
142457
7
31 | O u a s a r P a s t c s
12
2152
1 14246 7275
11&32
2 175550
13
2152
1 14173 7348
140995
4
14
2152
1 14100 7421
140253
3
15
2152
1 14025 7495
139503
8
16
2152
1 13950 7570
138746
8
17
2152
1 13875 7646
137982
2
18
2152
1 13798 7722
137209
9
19
2152
1 13721 7800
136430
0
20
2152
1 13643 7878
135642
2
21
2152
1 13564 7956
134846
6
22
2152
1 13485 8036
134043
0
23
2152
1 13404 8116
133231
3
24
2152
1 13323 8198
13211
* 165061
25
2152
1 13241 8279
131583
6
26
2152
1 13158 8362
130747
4
27
2152
1 13075 8446
129902
8
28
2152
1 12990 8530
129049
8
29
2152
1 12905 8616
128188
2
30
2152
1 12819 8702
127318
0
31
2152
1 12732 8789
126439
1
32
2152
1 12644 8877
125551
5
33
2152
1 12555 8965
124654
9
34
2152
1 12465 9055
123749
4
35
2152
1 12375 9146
122834
8
32 | O u a s a r P a s t c s
36
2152
1 12283 9237
121911
1 153243
37
2152
1 12191 9330
120978
2
38
2152
1 12098 9423
120035
9
39
2152
1 12004 9517
119084
2
40
2152
1 11908 9612
118122
9
41
2152
1 11812 9708
117152
1
42
2152
1 11715 9805
116171
6
43
2152
1 11617 9903
115181
2
44
2152
1 11518 10003
114181
0
45
2152
1 11418 10103
113170
7
46
2152
1 11317 10204
112150
4
47
2152
1 11215 10306
111119
8
48
2152
1 11112 10409
110078
9 139926
49
2152
1 11008 10513
109027
7
50
2152
1 10903 10618
107965
9
51
2152
1 10797 10724
106893
5
52
2152
1 10689 10831
105810
3
53
2152
1 10581 10940
104716
4
54
2152
1 10472 11049
103611
5
55
2152
1 10361 11159
102495
5
56
2152
1 10250 11271
101368
4
57
2152
1 10137 11384
100230
0
58
2152
1 10023 11498 990803
59
2152
1 9908 11613 979190
33 | O u a s a r P a s t c s
60
2152
1 9792 11729 967461 124920
61
2152
1 9675 11846 955615
62
2152
1 9556 11964 943651
63
2152
1 9437 12084 931567
64
2152
1 9316 12205 919362
65
2152
1 9194 12327 907035
66
2152
1 9070 12450 894584
67
2152
1 8946 12575 882010
68
2152
1 8820 12701 869309
69
2152
1 8693 12828 856481
70
2152
1 8565 12956 843526
71
2152
1 8435 13085 830440
72
2152
1 8304 13216 817224 108010
73
2152
1 8172 13348 803876
74
2152
1 8039 13482 790394
75
2152
1 7904 13617 776777
76
2152
1 7768 13753 763024
77
2152
1 7630 13890 749134
78
2152
1 7491 14029 735104
79
2152
1 7351 14170 720935
80
2152
1 7209 14311 706624
81
2152
1 7066 14454 692169
82
2152
1 6922 14599 677570
83
2152
1 6776 14745 662825
3 | O u a s a r P a s t c s
84
2152
1 6628 14892 647933 88957
85
2152
1 6479 15041 632892
86
2152
1 6329 15192 617700
87
2152
1 6177 15344 602356
88
2152
1 6024 15497 586859
89
2152
1 5869 15652 571207
90
2152
1 5712 15809 555398
91
2152
1 5554 15967 539432
92
2152
1 5394 16126 523305
93
2152
1 5233 16288 507018
94
2152
1 5070 16450 490567
95
2152
1 4906 16615 473952
96
2152
1 4740 16781 457171 67486
97
2152
1 4572 16949 440222
98
2152
1 4402 17118 423104
99
2152
1 4231 17290 405814
100
2152
1 4058 17462 388352
101
2152
1 3884 17637 370715
102
2152
1 3707 17813 352901
103
2152
1 3529 17992 334910
104
2152
1 3349 18172 316738
105
2152
1 3167 18353 298385
106
2152
1 2984 18537 279848
107
2152
1 2798 18722 261126
3$ | O u a s a r P a s t c s
108
2152
1 2611 18909 242216 43293
109
2152
1 2422 19098 223118
110
2152
1 2231 19289 203829
111
2152
1 2038 19482 184346
112
2152
1 1843 19677 164669
113
2152
1 1647 19874 144795
114
2152
1 1448 20073 124722
115
2152
1 1247 20273 104449
116
2152
1 1044 20476 83973
117
2152
1 840 20681 63292
118
2152
1 633 20888 42404
119
2152
1 424 21097 21308
120
2152
1 213 21308 0 16031
Bibliography
&risil report on plastic in'ustr$
3* | O u a s a r P a s t c s
)lastic waste option for small scale recourse reco2er$ b$ Inge
ar'inois
Small scale rec$cling of plastic b$- 3on 4ogler
3& | O u a s a r P a s t c s