business plan paper

7/30/2019 Business Plan Paper

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BUSINESS PLAN

CGS

CLEAN & GREEN SOLUTIONS PVT. LTD

GROUP 25

SOMIL TURAKHIA


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Dedication to customer service

Meeting the customers needs is the foundation of business success. If

you meet their needs and respect them.

PAPERIt is a thin material mainly used for writing upon, printing upon, drawing or

for packaging.

The oldest known archaeological fragments of the immediate precursor to

modern paper date to 2nd century BC in China.

Paper is a versatile material with many uses. Whilst the most common is for

writing and printing upon, it is also widely used as a packaging material, in many

cleaning products, in a number of industrial and construction processes, and

even as a food ingredient.

The per capita consumption is only about10-kilo gram against the global

average of57-kilo gram.

Demand for paper in India 12 million tons.India imports 1.6 million tons of

paper per year from abroad.

PAPER INDUSTRY

The pulp and paper industry comprises companies that use wood as rawmaterial and produce pulp, paper, board and other cellulose-based products.

PAPER RECYCLING PROCESS

Collection: The process where all kinds of wastes are collectedmostly mixed-up.

Transportation: Under this process all the collected waste istransported to the recycling plant for further processing.

Sorting:Next process comes the sorting where all the wastescollected are kept on the conveyor and paper is segregated from

others, also the paper is also separated on basis of quality, design, inks

used, materials etc.

Processing;The process where recycling of paper actually starts,the paper is reacted with various chemicals and physical reactions.

Finishing: The final process where recycled paper is measured and

distributed into respective sizes.


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PAPER FACTS

12,500 sheets of paper can be made from 1 tree 95% of all the paper is eventually thrown away.

PAPER RECYCLINGPROCESS


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1 ton of recycled paper saves 24,000 gallons of water and 5,000

meters worth of forest.

MARKETING

USPWaste is nothing but useless materials, we give value to the waste paper and

make life of our customers easier and their surroundings cleaner

STPSegmentation: All those using paper in direct or indirect form.

Targeting: Those believing in eco-friendly products.Positioning: All paper making industries.

4PsProduct: paper, tissue papers, paper bags, covers, cups etc.

Pricing: Competitive pricing and lower than the paper freshly made

Placing: Sell raw materials to producers.

Promotion: Radio advertising, Innovative methods

SWOT analysisStrengths:

Our industry deals with protection of environment, so we stands out fromother industry.

The wider range of our products that we can market. There Is no much competition in this industry

Weaknesses:

Higher operating costs when quality of waste paper is poor.Opportunity:

Expand many product ranges. Everyone will prefer eco-friendly product.

Threats:

New industries entering in this field.

Feasibility

The industry is feasible in selling:

Sales to contractors, paper industry or to other waste managing

companies.


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Wide recycled products to consumers

Undertaking govt. contracts etc.

HUMAN RESOURCES

We would on a very initial stage hire/employ daily wage earners to collect waste

paper from neighboring houses and bring them to the depot, where they would

be transported vi trucks to the plant.


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We would also spend on Training and Development of those unskilled labors and

also give career opportunities to workers in the plant by giving them specialized

training in operating machines.

RECRUITMENT

We would go External recruitments as our Company is newly founded and we

have no pre-existing employees.

For Workers (Collection, Sorting, Machine operators etc.)

Direct recruitment Causal callers Employment exchange Placement agencies & consultants

Labor contractors

For Employees & Managers

Web publishing AD on Television Recommendations from employees campus recruitment Management consultants

Particular Type NumberFactory workers Machine operatives 5

Drivers (truck) General 3

Clerks Office 3

Managers Office 6

Top Managers Office 3

Factory workers Collection & Sorting 5

Salary /Wage Structure

HEADS NO. OF EMPLOYEES SALARY/WAGE

PER MONTH

TOTAL SALARY

CEO 1 2,00,000 24,00,000CFO 1 1,50,000 18,00,000


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1. Owners Capital 10,00,00,000/-

2. Venture Capital 5,00,00,000/-

3. Bank loan 10,00,00,000/-

Owners CapitalOwners would club in equal amount of capitals towards the start of business

Somil 5,00,00,000/- Roopa 5,00,00,000/-

Venture CapitalGreen technology and environmental friendly businesses are the new favorites ofthe investors world wide people now want a green business that has very less

carbon footprints.

Sequoia Capital 5,00,00,000/-

Address:902, Nicholas Piramal TowersPeninsula Corporate ParkGanpatraoKadamMargLower ParelMumbai 400013T: +91 (0)22 4074 7272F: +91 (0)22 4074 7271

Bank loanBank loan from Citi bank @ 12%

INITIAL INVESTMENT

INVESTMENT AMOUNT DESCRIPTION


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Plant and Machinery 1,02,00,000 Turnkey Projects

Conveyor System

Turbo Separator

Decker Thickener

Vibrating Screen

High Density Cleaner

Construction 50,00,000 Office

Building shed Work Shed warehouse Other Constructions

Trucks 30,00,000 3NOS TATA TRUCK

Security Deposit 10,00,000 Security deposit is for theland taken for rent.

Furniture and fittings 1,50,000 Office chairs & tables

Computers 50,000 2NOS Dell DQ-197YT forRs 25,000

TOTAL (A) 1,94,00,000

STARTUP

EXPENDITUREBrokerage fees 1,00,000 One months rent

Legal Expenses 3,50,000 Legal Formalities

Marketing expenses 5,00,000 Break up given below

Miscellaneous Expenses 50,000 For daily expenses and forunforeseen expenditure

Total(B) 10,00,000

WORKING CAPITAL 3,00,00,000

RESERVES AND

SURPLUS (D)

50,00,000

GRAND TOTAL 5,54,00,000 (A+B+C+D)

BREAK UP OF PLANT AND MACHINERY

S.NO PARTICULARS NO. OF AMOUNT TOTAL


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MACHINES PER UNIT

(RS)

AMONUT(RS)

1. Turnkey Projects 2 10,00,000 20,00,000

2. Conveyor System 1 15,00,000 15,00,000

3. Turbo Separator 2 20,00,000 40,00,000

4. DeckerThickener 4 50,000 2,00,000

5. Vibrating Screen 3 1,00,000 3,00,000

6. High Density

Cleaner

4 5,00,000 20,00,000

7. Misc. 10 10,000 1,00,000

8. Installation and

Electrifying

5 20,000 1,00,000

TOTAL 1,02,00,000

BREAK UP OF CONSTRUCTION COSTS

PARTICULAR AMOUNT DESCRIPTION

OFFICE CONSTRUCTION 5,00,000/- Office Set up

WAREHOUSE & STORE 30,00,000/- A 5000* 3000 sqft plot

WORKERS SHED 15,00,000/- Shed for workers

DEPRECIATION CHART


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S.NO PARTICLARS RATE YEAR 1 YEAR 2

1. Machinery 20% 20,40,000 16,32,000

2. Computers 60% 30,000 6,000

3. Trucks 40% 12,00,000 7,20,000

4. Furniture and Fittings 25.88% 38,820 28,774

5. Buildings 10% 5,00,000 4,50,000

TOTAL 38,08,828 28,36,774


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CASH FLOW STATEMENT

PARTICULARS YEAR1 YEAR 2

Cash ReceivedCash from Operations: 75,00,000 1,50,00,000

Subtotal Cash from

Operations

75,00,000 1,50,00,000

Additional Cash Received:

Capital contribution from

owners

10,00,00,000 10,00,00,000

Subtotal Cash Received 10,75,00,000 16,50,00,000

Expenditures

Expenditures from

Operations:

6,00,00,000 6,00,00,000

Cash Spending

Portion venturecapitalist 1,00,00,000 1,00,00,000

Subtotal Cash Spent 3,75,00,000 9,50,00,000

Payment of taxes 1,12,50,000 2,85,00,000

Net Cash Flow

Previous years Cash b/d ------

Cash Balance 2,62,50,000 9,27,50,000

REVENUE MODEL

YEAR 1

Price of Recycled Paper (Raw Form) 600/- per kg

Price of Chemically Enhanced Paper 800/- per kg

Average Monthly Sales 10 thousand kg

Revenue in 1 month peak season =7,000kg*600+3,000kg*800

=42,00,000+24,00,000

=66,00,000

Annual Revenue = 66,00,000*12

7,92,00,000/-

YEAR 2

Price of Recycled Paper (Raw Form) 600/- per kg

Price of Chemically Enhanced Paper 800/- per kgAverage Monthly Sales 15 thousand kg


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Revenue in 1 month peak season =9,000kg*600+6,000kg*800

=54,00,000+48,00,000

= 1,02,00,000

Annual Revenue =1,02,00,000*12

=12,24,00,000/-

INCOME AND EXPENDITURE ACCOUNT

YEAR 1 YEAR 2

REVENUES AND INCOME

(A)

7,92,00,000 12,24,00,000

LESS: EXPENSES

Administration Expenses

Electricity& Fuel 6,00,000 6,00,000

Rent 60,00,000 60,00,000

Salary& Wages 75,00,000 75,00,000

Maintenance expenses

Depreciation 38,08,828 28,36,774

Marketing Expenses 30,00,000 25,00,000

TOTAL EXPENSES (B) 2,09,08,828 1,94,36,774

TOTAL OPERATING

PROFIT/LOSS(A-B)

5,82,91,172 10,29,63,226

LESS: TAX (33%) 1,92,36,086 3,39,77,864

NET PROFIT/LOSS 3,90,55,085 6,89,85,361

BALANCE SHEET

PARTICULARS YEAR 1 YEAR 2


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ASSETS

Current Assets

Cash 2,62,50,000 9,27,50,000

Bank 15,00,00,000 15,00,00,000

Fixed Assets 12,31,00,000 9,92,96,172Less: Depreciation 38,08,828 28,36,774

Net Fixed Assets 12,23,02,085 8,84,32,361

Total Assets 29,85,02,085 32,84,32,361

LIABILITIES

Sources of Fund

(A)Owners Capital 10,00,000 10,00,000

(B)Bank loan 10,00,000 10,00,000

(C)Venture Capital 5,00,000 5,00,000

NET PROFIT 4,85,02,085 7,84,32,361

PROVISION FOR TAXATION --- ----

Total Liabilities 29,85,02,085 32,84,32,361

Break-Even Analysis

TC-TR approach

Break even is achieved where TR=TC

Total costs =1,94,36,774 + 10,00,00,000 =11,94,36,774

Total Revenue= 7,92,00,000

TR/TC =0.66

=0.66*12

=7.92 = 7months & 28 days[[idis

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