Download - Business Plan Plastic 111226114144 Phpapp01
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Objectives
The objectives for this business plan are specific goals which are achievable by Kshitiz
Multicraft in the first few years of operation. These objectives are outlined below:
. To Ma!e "ales of over #$ million in #rdyear and over %$ million in %thyear.
&. To increase from single industry to three industry in $ years.
#. To 'ncrease gross margins.
(. To e)port our products in foreign mar!et.
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Mission
The mission of Kshitiz Multicraft is to become a recognized manufacturer of *uality plastic
materials such as+ tan!, buc!ets, jugs etc. in the -epal. The company guarantees $$ percent
customer satisfaction and values friendly service. Kshitiz Multicraft see!s to manufacture plastic
products by e)ceeding minimum acceptable *uality standards and by providing the highest
*uality product at the lowest possible price. e value our relationships with current and future
customers and hope to communicate our appreciation to them through our outstanding,
guaranteed product *uality, personal service, and efficient delivery. Our commitment to our
customers and the country will be reflected through honest and responsible business.
Keys to "uccessThe following facts of Kshitiz Multicraft ensure its financial success:
. /ni*ue services, unmatched in both *uality and presentation.
&. 0ow operating overhead.
#. 1eneficial word2of2mouth advertising.
(. 3 healthy, versatile plastic products which is suitable for all community.
4. 1ringing the new facility to ma)imum production within three years of operation.
%. 'ncreasing our profit margin with the use of improved technology in the new facility.
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5ompany "ummary
Kshitiz multicraft sells *uality products and provides e)cellent customer service for customesee!ing a reliable domestic plastic utilities and water storage solutions. 'n the future Kshitiz
intends to enter the e)tensive 6lastic mar!et.
5ompany Ownership
Kshitiz Multicraft is a privately held organization. 6roduction ta!es place in Kathmandu and
sales and mar!eting are focused on the whole of the country.
Ownership:
7ounder8s 9($;
Others 9%$;
"tart2up "ummary
"i)ty percent 9%$; of start2up costs will go to assets. "tart2up costs will be financed through the
owners< investments, and loans. The assumptions are shown in the following chart.
Startup Investment
Nrs. In 000
. Land and land development 440002. Building and civil construction 25245
3. lant! machineries " e#uipments 20$00
4. %urniture " &'ture (000
5. )ehicles (2000
*. re+operating cost (000
,otal %i'ed -ssets (0345Long ,erm Loans / *0 *23*$1ners #uit / 40 4(5$6
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Startup Investments50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
NPR 44,000.00
NPR 25,245.00
Land and land Building and civildevelopment construction
NPR 20,700.00
NPR 1,000.00
Plant, macineries!urniture " #$ture" e%uipments
NPR 12,000.00
NPR 1,000
&eicles Pre'operating
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5ompany 0ocations and 7acilities
The Kathmandu 7actory is located at 5hovar, Kathmandu
The factory is $$$ s*uare meters and should be large enough for the first three years of the
company
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6lant 0ayout
Domestic Products and
Tank Manufacturing Unit oter !"astic Items
!roduction units
Po#er 6ar!ing
$tation
Park
%inised &oods 'areouse
&uard
(ouse)a# Materia" $torage
*ntrance
+
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6roduction "cheme
There will be various production scheme for polyethene tan!s and domestic plastic products. The
production scheme are shown in table below.
6roduction "cheme for Tan!
Sn. articular )olume 7nit 8emar9
( &4$ ltr B$
2 4$$ ltr B$
3 $$$ ltr 4$
5 Tan! &$$$ ltr ($
* ($$$, $$$$ ltr On demand
6roduction "cheme for 6lastic utilities
Sn. particular Sizes unit 8emar9
( 1uc!et 0arge &$$
2 1uc!et "mall Carious sizes $$ Carious colors
3 ug &$$
4 Tub #$$
%or 8eccled roduct
Sn. particular sizes unit 8emar9 ( Dustbin 4$ Ereen
2 Foad Divider $ Orange
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:ar9et -nalsis Summar
The purchase of domestic and other 6lastic 6roducts has increased by 4$ percent over the past
two years. e e)pect the sales to continue growing, and to capitalize on this ever2present mar!et
for products 2 people will always need and buy daily plastic products.
:ar9et ;eeds
Erowing 6opulation in city areas needs domestic plastic products and water storage tan!s. ater
tan!s are essential for the city people as well as all industrial and service sectors li!e hotels,
hospitals etc, as there is increasing problem of water. "o for storing the water for daily
consumption water tan!s will be must.
:ar9et ,rends
Kshitiz Multicraft will distribute the 6roducts to Kathmandu and various other outlets from
various company agents.
The cost of mar!eting the new product is e)pected to be the biggest challenge for Kshitiz
The initial use of =ardware shops for water tan!s and Departmental "tores and other
wholesalers for domestic plastic products, facilitates as a distribution channel will allow
for cost savings.
The lac! of an e)isting recognized brand name will be an initial problem, but in a few
years Kshitiz intends to have achieved powerful brand e*uity 2 allowing it to rely on, and
succeed because of its brand name.
:ar9et
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:ain =ompetitors
The main competitor of Kshitiz Multicraft poly tan! is as follows:
=illta!e 'ndustries pvt. 0td.
-epatop Tan! 'ndustries .
Fijalco 6olytan! industries.
Detail analysis of one of the tan! industries is mentioned below
>ill ,a9e
=illta!e industries is located in 1iratnagar and 1alaju. 'n 1alaju it is located within 1'D 91alaju
'ndustrial District; and its production facility is accommodated in two ropani of land. The land
has been ta!en in lease with 1'D.
't is one of the leading poly tan! producing industries of -epal. 't can produce si) tan!s at atime. =ill ta!e is the major contributor to mar!et. 't occupies nearly %4 of the mar!et share and
no single industry is able to compete with =illta!e. 1esides tan!, it also produces dust pan, road
divider, 66F pipes etc.
Astablished: &$4& 1."
Faw materials:
00D6A
Master granules>batch
'mported from "audi 3rabia, Malaysia
Machines and e*uipments:
s.n. Machines specification -os. /nit price Total
"crew m>c &
& =eater 9&$$$ watt; &
# 6owder m>c &
( Die 2222
4 5ontrol panel
% Alectric fan 2222
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6roduces tan! of following capacities
$$ lt. 4$$ lt.
&4$ lt. &$$$ lt.
4$$ lt. 4$$$ lt.B4$ lt. $$$$ lt.
$$$ lt.Daily production capacity:
5an produce si) tan!s at a time
Ta!es nearly &4 min to produce one tan!
Operates G hrs a day"o, total capacity is around 4 tan! per day
Amployment generated:
Eeneral manager2
Manager2#Operator2$
Officer level employee2&$
0abours2#4Drivers2B
Other staffs24
Total2 nearly H4
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The main competitor Kshitiz Multicraft =D6A plastic products is:
Eem plasticrafts pvt. 0td.
1agmati polyethene industries.
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Strateg and Implementation Summar
Kshitiz Multicraft strategy is to serve niche mar!ets of the plastic industry. There
are
many untapped potential mar!ets that desire high2*uality goods, but do not !now where to
purchase them. Kshitiz Multicrafts< mar!eting strategy will alleviate this problem.:ar9eting Strateg
The mar!eting strategy will focus on two segments:
. The company will benchmar! the objectives for promotion, outlet selling, and personal
selling.&. The mar!eting budget will be Fs %,$$,$$$ per year.
#. 7inancial scheme such as cash discount, turnover discount etc will be provided to dealers
and other schemes li!e cash prizes will be for customers.
ricing Strateg
The pricing strategy will be to initially undercut our price from our main competitors by $,using a mar!et penetration strategy. Then, pricing will be adjusted to be directly competitive
with the other major competitors.
romotion Strateg
6romotion will be initially spearheaded by public relations because of its low cost, and then
through advertising once the company begins to increase cash flow to an acceptable figure.
Sales Strateg
Kshitiz Multicraft8s sales force will move form shop to shop for initial mar!eting and launch
various schemes li!e warranty, 4$ value on return of damaged products after use and other
various financial benefits scheme.
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Sales %orecast
The following table and chart show our present sales forecast for first si) years.
?ear ?ear ( ?ear 2 ?ear 3 ?ear 4 ?ear 5 ?ear *
Sales 203152.50270(70.00 33(5(7.5040)305.00 474022.50 541740.00
1thers 0 0 0 0 0 0
,otal Sales 203152.50270(70.00 33(5(7.5040)305.00 474022.50 541740.00
Table -o: 4 "ales 7orecast
Sales %orecast)00000.00
500000.00
400000.00
300000.00
200000.00
100000.00
0.00
*ear 1 *ear 2 *ear 3 *ear 4 *ear 5 *ear )
Sales rograms
"ales will be made by =ardware and sanitary wares shops for water tan!s and all daily utilities
stores and departmental store for domestic products. Outlets that achieve the highest figures in
sales will receive & discounts in order to encourage increasing sales.
1$ee financia" ana"/sis for detai"
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Organizational 5hart
+eneral anager
Production "aintenance
Production-ngineer
perator
!inance " /dmin anager
aintenanceengineer
ecnician
administration ta
14
/ccountant
ler
sales " areting
aret
PR
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6roduction plan
The raw materials, after purchasing is stored in store room. 't is then fed to the production floorto obtain the product as re*uired. The type of process that must be carried out in production floor
depends upon the nature, size and type of finished product.
6roduction of Tan!
Ra6 material toreage
/ccelerator operation
cre6 acining
Po6der acining
emporar torage
ie #lling
uni8orm eating
an
7ig. 6rocess flow diagram for tan!s
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Tan! manufacturing process
8a material
The raw materials are purchased from "audi 3rabia, Malaysia, and =ong Kong. The main raw
materials used are 00D6A and master granules.
-ccelerator operation
'n this process, the 00D6A and master granules are mi)ed in the ratio of %: by weight. The
resulting mi)ture is then heated gently to produce solid homogenous mi)ture. The function of
00D6A is to impart color on tan! while master granules are used for the formation of structure
of tan!.
Scre machining
The solid homogenous mi)ture obtained from above process is transformed into the thin wire
form of diameter appro)imately $.Bmm by drawing process through the screw machining. The
mi)ture obtained is in hot state so it is passed through the cold water to cool it. The obtained wire
is then cut into small pieces of length of appro)imately $.Hmm. This process is called wire
cutting.
oder machining
The material obtained from screw machining is fed to the hoper of the powder machine and is
grinded to obtain the powder. The obtained powder might contain some granules which is
separated by driving the powder to the height of #m with the help of two motors at the bottom
surface.
,emporar storage
The powdery material obtained from powder machine is stored into dry nylon sac!, which isfre*uently used for tan! production.
@ie &lling
The die is coated with a fine grease layer to its internal surface and then the powder obtained
from the powder machine is fed to the die and is capped properly.
7niform heating
The die along with mi)ture is heated uniformly. The rotating motion of die is controlled by
electronic control panel. The process where the rotating motion of die is controlled through
control panel and die is heated uniformly by rotating it is called roto molding process. The die is
heated for 42&$ minute and temperature of die is controlled by control panel.
,an9
The tan! is ta!en out of the die and then it is cooled by means of air 9either by use of electric fan
or by use of natural air;. The tan! ta!en out of die the normally need no additional finishing
process but in some cases soft filing can be carried out to remove some unwanted plastic scraps
associated with the product.
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The resin is injected into the mold by a reciprocating screw or a ram injector. The reciprocating
screw offers the advantage of being able to inject a smaller percentage of the total shot 9amountof melted resin in the barrel;. The ram injector must typically inject at least &$ of the total shot
while a screw injector can inject as little as 4 of the total shot. Assentially, the screw injector is
better suited for producing smaller parts.
The mold is the part of the machine that receives the plastic and shapes it appropriately. The
mold is cooled constantly to a temperature that allows the resin to solidify and be cool to the
touch. The mold plates are held together by hydraulic or mechanical force. The clamping force
is defined as the injection pressure multiplied by the total cavity projected area. Typically molds
are overdesigned depending on the resin to be used. Aach resin has a calculated shrin!age value
associated with in.
8e#uired roduct
The re*uired product is then obtained from the injection molding process. The size and type ofproduct can be varied by varying the molder. 1y this process, we can obtain jugs, mugs and
buc!ets.
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lastic 8eccling
The slogan ?EO EFAA-@ is increasingly becoming popular and in fact essential to protect
environment. 3s we !now, plastics are non degradable they help to pollute environment. 'f it is
recycled, then environment pollution due to plastics can be reduced.
't is difficult to trace bac! when e)actly the recycling would have started. On the basis of
informal interaction with various people in the field of recycling it may be suggested that
recycling of the waste generated from the manufacturing and processing units would have been
the first step. The machinery re*uired for the reprocessing is technically similar to the processing
machinery.
6rocess flow diagram
6lastic aste 5ollection
6lastic aste "torage
ashing
5rushing
Temopary storage
injection moulder
Fe*uired 6roduct
7ig. 6rocess flow diagram for dustbins and road dividers
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lastic aste collection
6lastics are widely used and are one of the main ingredients of environment pollution. The waste
plastics collected by scavengers are bought by the company which is later utilized to producevarious plastic products.
lastic aste storage
The waste plastics that is bought by company is then stored in raw storage.
ashing
The collected plastics may contain unwanted particles+ they may contain those particles which
may affect the production process. "o, to remove those unwanted particles it is first fed to the
washing room where it is washed by water, detergents and other chemicals if re*uired.
=rushing
The washed plastic waste is then sent to crusher for crushing. 5rusher transforms those plastic
waste into small granular particles.
InAection molder
3 mold is bolted into the 5lamping section of the machine. The machine closes the mold,
then
applies a large force to ?0oc!@ the mold closed. 'nside the closed mold is a cavity that is the
e)act shape of the plastic part.
The 'njection section of the machine has a hopper to hold plastic pellets+ a barrel with
heater bands to li*uefy the plastic pellets+ a feed screw to move the pellets forward in the barrel+
a chec! valve to force the li*uid plastic into the mold, and a nozzle to seal the injection section to
the mold. The li*uefied plastic is forced into the cavity of the mold with high pressure.
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Once the li*uid plastic has been injected into the mold, the machine goes into the 5ooling phase.
The li*uid plastic must cool enough to turn solid so it ta!es on the shape of the cavity and stays
that way. hile the cooling ta!e place, the screw will rotate, bringing in more pellets for ne)t
part.
hen the part is ready to be removed from the mold, the clamp will open, and the part will
be
removed from one half of the mold. Then the part will be Ajected from the other half of the
mold, and the machine will start a new cycle.8e#uired product
7inally, we can obtain dust pans, toys etc.
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7inancial 3nalysis
-rs. 'n8$$$
(. 7i)ed 3ssets 'nvestment
a; 0ong Term 0oan
b; Owner8s A*uity2. 'nitial or!ing 5apital
a; "hort Term 0oan
b; Owner8s A*uity
#. Total 'nvestment 9initially;
a; 0ong term 0oan
b; "hort term 0oan
c; Owner8s A*uity
B. Land and land development
(0345
%%B
(4BG**334.0(
&(B4%.$
(4BG
(26$0(.0(
%%B
&(B4%.$
(4BG
%i'ed -sset Investment
Nrs. In 000
44000
a; 0and 4 ropani G$ la!h>ropani ($$$$
b; 0and development $ ($$$
6. Building and civil construction 25245
a; Manufacturing facility
i;Manufacturing area including all sections 4($$ s*.ft. 4$$ G$$
ii;Luality control, store and administration $G$$ s*.ft. &$$ &H%$
b; Fefreshment and guard house &B$$ s*.ft. B$$ GH$
c; aste disposal management
"ubtotal &&H4$
5ontingencies $ &&H4
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. lant! machineries " e#uipments 20$00
%or )= ,an9
a; 6lastic A)truder &$$
b; 6lastic 5rusher 4$
c; Foc! n Foll type Foto Moulding Machine &$$
d;1i2a)ial Moving Oven Type Machine 4$$e; Dies $$$
%or lasticraft
a; 'njection Moulder 9'ndian 5hinese; H$$$
b; 5ontrol 6anel 4$$
8eccling lant
a; 5rusher 4$
b; A)truder &$$
c; 'njection Moulder ($$$
Transformer 9&4$KC3; stabilizers G$$
Eenerator ($$$
(0. %urniture " &'ture (000
a; Office furniture #4$
b; 7actory furniture 4$
c; Office e*uipments computers 4$$
((. )ehicles (2000
a; Delivery van2& #$$$
b; Truc!2 &$$$
c; 5ar2# %$$$
d; Motorcycle24 $$$
(2. re+operating cost (000
a; 7easibility report $$
b; Angineering design, construction I management 4$$
c; Fegistration $$
d; Technical consultancy &$$
e; Miscellaneous $$
,otal %i'ed -ssets (0345
Long ,erm Loans / *0 *23*$
1ners #uit / 40 4(5$6
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-nnual 1perating =ost
3C %i'ed =ost
(. @epreciation 5((*.25a; 1uilding I civil construction 4 4&%.&4
b; Machinery I e*uipments $ 4H$
c; Cehicles 4 G$$d; 7urniture I fi)ture &$ &$$
2. -mortization on pre+operating e'penses / (0 (00
3. Insurance on &'ed asset De'cept land "
pre+operating e'pensesE / ( D( of 5425000E 54.25
4. 1Fce overheads (2$0
a; Office material>stationery &$$
b; 3dvertisement I Eoodwill 4$$
c; 3udit I legal e)penses $$
d; 5ommunication &$
e; Fepair I maintenance &4$
f; Miscellaneous $$
5. Interest on long term loan 8s *2*55000 / (5 36.52
*. Indirect laGor D23+numGerE 4$$6.60
a; Managing director2 Fs.4$,$$$>month %$$
b; 6roduction manager2 Fs.($,$$$>month (G$
c; Mar!eting manager2 F.s($,$$$>month (G$
d; 7inance manager2 Fs.&$,$$$>month &($
e; 3dministration manager2 Fs.&$,$$$>month &($
f; "ales Officers24 Fs. 4,$$$>month H$$
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4. Interest on short term loan 8s. 6(2$0 / (4 ((3$.20
5. )ariaGle 1verheads 400
a; 7or production &4$
b; 7or administration 4$
*. @irect LaGor Dno+(6E 3300
a; "upervisior2# Fs. &$$$$>month B&$
b; "!illed labor 9Operator;2$ Fs. 4$$$>month G$$
c; /ns!illed labor24 Fs. G$$$>month (G$
"ubtotal #$$$
6lus $ fringe benefits #$$
$. Sales romotional 'penses D(0 of net income 8s.*$$.($5 H(0* ;*$$($.50
,otal variaGle costs 52*534.(5
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-nnual rod
.N. ?ear of 1peration ( 2 3 4 5 *
=apacit utilization 30 40 50 *0 $0 601 Ra6 materials 115254.00153)72.00192090.0023050(.002)(92).00307344.003(
2 irect La:our 990.00 1320.00 1)50.00 19(0.00 2310.00 2)40.00 3
3 ;tilities 17295.00 230)0.00 2((25.00 34590.00 40355.00 4)120.00 5
4Repair aintenance 572.24 7)2.9( 953.73 1144.47 1335.22 1525.9) 1
5rime =ostD(234E(34(((.24($66(4.62235(6.$32*6222.4$3(22*.2235$*2.*44$
) &arria:le veread 120.00 1)0.00 200.00 240.00 2(0.00 320.00
7
(
ales Promotion -$penses
/dministrationvereads