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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