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THE

GLOBAL rEpOrT fiELd STUdY

ON

“Disposable cup manufacturing machine Chile &

Himachal Pradesh”

SUBMiTTEd TO:

Gujarat Technological University

Sunshine Group of Institutions, Rajkot

MBA Semester III

Faculty of Management

Batch: 2013-15

GUidEd BY:

Asst. prof. Alpesh Gajera

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PREPARED BY

DECLARATION

NAME ENROLLMENT NO.Hirapara Priyanka 137730592023

Jadeja Ajaysinh 137730592024Patel Jalpa 137730592025

Javiya Hirva 137730592026Jithara Dharmesh 137730592028

Jivani Krunal 137730592029

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We undersigned Hirapara Priyanka, Jadeja Ajaysinh, Patel Jalpa, Javiya Hirva, Jithara

Dharmesh, and Jivani Krunal the students of management, 3rdsemester hereby declare that

the report for “Global Country Study Report” entitled “Overview of Social &

Educational Activity of Chile” is our own work and has been carried out under the

guidance of Assit. Prof. Alpesh Gajera of Department of Management Shri Sunshine

Group of Institutions, Rajkot.

This has been not submitted to any other University for securing in any examination.

ENROLLMENT NO. NAME SIGNATURE137730592023 Hirapara Priyanka137730592024 Jadeja Ajaysinh137730592025 Patel Jalpa137730592026 Javiya Hirva137730592028 Jithara Dharmesh137730592029 Jivani Krunal

DATE:

PLACE:

PREFACE

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Only theoretical knowledge is not enough, practical knowledge is also essential. Practical

training helps us as a student of management to know practicability of the theories that we

learn inside the lecture room

As a student of MBA syllabus we have to make a research study on any country and we got

golden opportunity to get practical knowledge of Seychelles the main object of arranging

such research is for giving practical knowledge and experience at global in the various filed

of management to the student

Though we tried our level best to collect information and valuable suggestion would be

gratefully acknowledged.

Index

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ACKNOWLEDGEMENT

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We thankfully acknowledge to all those people who helped us in preparation of this report

because it is impossible to mention all those who helped us in our perspiration work in

giving shape to our ideal and thinking.

It is an occasion of great pleasure and matter of keep felt personal satisfaction to present this

complied statement of the project this complied statement of the research study undergone

on economical and sports activity of Seychelles.

We would like to thank all those who directly or indirectly were involved in the completion

of our research study.

GCSR PART: 1 SUMMARY

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CHILE :

The territory of Chile has been populated since at least 12,000 B.C. By the 16th

century, Spanish conquistadors began to subdue and colonize the region of present-day

Chile, and the territory became a colony between 1540 and 1818, when it

gained independence from Spain. The country's economic development was successively

marked by the export of first agricultural produce, then saltpeter and later copper. The

wealth of raw materials led to an economic upturn, but also led to dependency and even wars

with neighboring states. Chile was governed during most of its first 150 years of

independence by different forms of restricted government, where the electorate was carefully

vetted and controlled by elite.

Most Chileans are Roman Catholics. The religion has played a large role in defining social

and political life. Religious instruction in public schools is almost exclusively Roman

Catholic.

Abortion is actually illegal due to the influence of the Church. Divorce was illegal

until 2004.

Most national holidays are religious in nature. Chileans of more mature generations still

celebrate their saint's day as much as they do their own birthday.

Major religions in Chile are as follows:

• Roman Catholic 70%,

• Evangelical 15.1%,

• Jehovah’s Witnesses 1.1%,

• Other Christian 1%

• Other 4.6%.

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Chile is in the advanced stages of the demographic transition and is becoming an aging

society - with fertility below replacement level, low mortality rates and life expectancy

on par with developed countries. However, with its dependency ratio is approaching its

lowest point, Chile could benefit from favorable age structure.

They have to keep their large population -age work productively employed, as he

prepares to meet the needs of its growing proportion of older people, especially women -

the traditional caregivers - are increasingly coming workforce. In the last two decades,

Chile has made great strides in reducing its poverty rate, which is now lower than most

Latin American countries.

Spaniards in the official language of Chile.

The food has a very special place in Chilean culture. Chilean normally eat four times a

day. The first meal of the day is breakfast, which consists mainly of dishes instead of

light including buttered toast and instant coffee. Lunch (served 1: 00-14: 00) is the big

meal of the day. Traditionally two main dishes. The first course can be a salad of some

sort. A common salad is the Chilean salad, including sliced onions, chopped tomatoes

and peeled oil and vinegar dressing and fresh coriander (cilantro).

The main course usually includes beef or chicken, served with vegetables. Around 17:00

Chilean taken once, an afternoon tea with bread and jam, often also includes cheese and

avocado (avocado).

Every year during the last week of February, Viña del Mar, an exclusive resort town

about two hours from Santiago, Viña del Mar holds Festival.The Music CarnavalAndino

With the Force of the Sun, or "Andino Festival with the Force of sun, "is one of the most

influential and entertaining a number of festivals that take place in February in northern

Chile region.Fiestas Patrias, or" Independence Day, "refer to the related celebrations

Independence Day Chile, which is celebrated on September 18.

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Before independence, the Christian religious orders mainly influenced Chilean

education. In fact, the Jesuits founded the first educational institutions in the country.

Since the First Government Junta (First Government Junta) in 1810 there was interest in

the development of education systems in the new country that is manifested by members

of the independence movement. This desire was completed by an approved decree

expressly waived taxes for a year and a half books, maps, printers, physics instruments

and machinery that contributed to the social and educational advancement. Based on this

predisposition to facilitate education, during 1813 the National Library was created,

freedom of the press was established, and the first official government newspaper, El

Monitor Araucano, was established.

The cost of education differs depending on the type of school. Schools with voluntary

enrollment may charge a fixed fee income, while subsidized private schools can charge

tuition mandatory enrollment, tuition, and other services. Moreover, private schools are

free to decide their own fee structure. In 2011, the country was widespread and violent

student protests, demanding reforms in the education system. Students said they wanted

more direct state participation in secondary education as well as to obtain benefits blatant

happening in higher education. The movement gained strong support across the country,

as the students refused to attend classes and took to the streets. Education in Chile is

divided into

Chile is divided into following part;

Preschool,

Primary school,

Secondary school,

& technical or higher education (university).

The levels of education in Chile are:

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Pre-school: For children up to 5 years old.

Primary school: for children aged 6–13 years old, divided into 8 grades.

Secondary school: for teenagers aged 14–17 years old, divided into 4 grades.

Higher education:

University (Universidad): These are divided between "traditional" universities

(public and private universities created (mostly) before the 1981 reform) and private

institutions.

Professional Institute (Institute Professional, IP): Private institutions offering

professional degrees, except for those given exclusively by universities. They were

created in 1981.

Technical Schooling Center (Centro de FormaciónTécnica, CFT): Also created in

1981, they are private institutions offering technical degrees only.

The Ministry of Education is responsible for pre-primary, primary, and secondary

schooling in Chile. The pre-primary level is two years of non-compulsory education for

children four to five years of age. Primary and secondary educations are compulsory.

Primary education is from ages 6 to 13, and secondary education is from ages 14 to 17.

In 2000, 99 percent of school -age children was studying at primary schools, and 90 at

secondary schools.

School categories.

In terms of financing, there are the following kinds of schools:

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1. Municipal: State-subsidized schools run by municipalities, which may also contribute

monetarily to the schools. The majority of the population studies at these schools (64% at

the primary level).

2. Particular Subvencionado: Private with a government subsidy. At the primary level, 29%

of the population attends this kind of school.

3. Particular: Private. At the primary level, 7% of the population attends this kind of school.

4. Corporate schools are schools run by corporations and which receive the same state

subsidy that the municipal schools receive.

REASONS TO STUDY IN CHILE:

1. Educational alternatives

2. Great connectivity

3. Economic and political stability

4. Friendly people

5. Great tourist attractions

6. Top-quality education

7. Affordable living costs

8. Safety

9. Active social and cultural life

10. Warm weather

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The Development of a Disposable CupExecutive Summary

Expanded polystyrene foam (EPS) and paperboard are the two most popular materials used

today in portable, disposable cups used in coffee shops. Polystyrene foam has better thermal

insulation, while paperboard is preferred for its superior printing quality. Recently there has

been much interest in combining the positive attributes of both materials into one.

This project was conceived to quantify and compare the thermal and mechanical properties

of Win Cup foam cups with comparable competing paper products. A new design intended

to

Solve current difficulties is presented based on findings. Strengths of the cup materials were

collected with tensile testing. The source of the low strength of EPS is recognized by

examination with optical microscopy. A coupled sample of EPS with paper was tensile

tested to explore the effect of coupling two materials of different behaviors. Results showed

strength can be significantly increased by this method.

Thermal insulation was tested by measuring the cups’ abilities to hold hot and cold

temperatures of the liquid being carried. Surface temperature of the cups was also measured

against liquid temperature to compare heat conduction through the cup walls. EPS was

shown to be optimal material for maintaining beverage temperature.

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Both materials have their pros and cons. To combine the positive benefits of both, a paper

wrapped foam cup design can be utilized. This composite cup allows high quality printing on

the outside paper surface and excellent thermal insulation of the interior EPS.

This research confirms the common claims of the superior thermal properties of EPS over

paper. A plastic wrapped foam cup design can be effectively utilized to conceive a product

that achieves the optimal combination of thermal insulation, printing capability, strength,

and aesthetic appeal.

Introduction:

Thermoformed disposables are generally used for Tea, Water and Packing of Beverages etc.

These Thermoform shapes are created from a process where a sheet of plastic is heated and

vacuumed on top of a model or die. The die can be made up from variety of materials.

There are different industries using thermoformed cups and trays like:

- Medical packaging in Pharmaceuticals

- Catering

- Food packaging

- Retail Outlets

- Restaurants

- Hotels

- Tourism

- Soft drinks, water and tea etc.

Market:

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Due to attractive look, low weight, ease of transportation and low permeability, thermoformed

disposable cups and trays are finding tremendous market in packaging of food products,

particularly Ice creams which is as high as 30%. The demand for thermoformed disposables is

growing for drinking water, Tea, Coffee, soft drinks and packing dairy products.

The global consumption of single-use disposable food and drink containers such as lunch boxes,

cups and bowls is estimated at 438 billion units per year. Out of which the consumption of

thermoformed disposable cups is 21% of the total disposable items.

Raw Material:

The major raw materials used for thermoforming are high impact polystyrene ABS, PVC,

Polypropylene, HDPE, Polycarbonate etc. The choice of each material depends upon the end-

user requirements and cost. The most common materials used for disposable wares are high

impact polystyrene (Considered), PVC and Polypropylene.

Manufacturing Process:

Thermoforming is a manufacturing process for thermoplastic sheet or film. The sheet or film is

heated between infrared, natural gas and other heaters to its forming temperature. Then it is

stretched over or into a temperature-controlled, single-surface mold. Cast or machined

aluminum is the most common mold material, although epoxy, wood and structural foam tooling

are sometime used for low volume production. The sheet is held against the mold surface unit

until cooled. The formed part is then trimmed from the sheet. The trimmed material is usually

reground, mixed with virgin plastic, and reprocessed into usable sheet.

Investment:

The investment for setting up a Thermoform Disposables manufacturing Plant works out to Rs.

1.11 Crores and the breakup of the cost is tabulated below. The land requirement will be around

0.5 acres. The Preliminary & Pre-operative expense works out to Rs 0.11 crores. Plant &

Machinery including installation, erecting & transportation charges are of 0.23 Crores. Buildings

and civil works are estimated to be 0.37 Crores. Contingencies @ 5% and electricity deposits

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have been considered in the project cost. Margin money for working capital is estimated to be

0.06 Crores.

Technology:

The technology/Machinery required for manufacturing of the thermoform disposables are 2 Nos.

of Automatic vacuum forming machine with control panel, 2 Nos. of Roller cutting machine, 4

Nos. of Aluminum mould with cutting mold, a sheet plant two layer, compressor, Grinder and a

Cooling tower.

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INTRODUCTION OF COMPANY

Established in the year 2007, ‘Primal Import & Export ' are reckoned as one of the leading

importers and exporters of a world class gamut of Non Woven Bag Making Machinery, Non

Woven Fabric Making Plant, Waste Recycling Machinery, Pellet Making Machinery, Steel

Forming Machinery, Disposable Cup or Glass Making Machinery, Bottle Making Machinery,

CNC Machinery, Incense Stick Making Machinery, SS Pipes, Color Sorter Machines,

Components, Air Compressor & Tank. Our range consists of Cereal Grain Color Sorter

Machine, Air Pneumatic Regulator, Belt Type Color Sorter Machine, Peanut Color Sorter

Machine and many more products of varied specifications & models. These are imported from

reputed vendors of the market, who use quality assured raw material to develop their range as

per international norms and guidelines. The machines and air compressors we offer are

acknowledged for their excellent performance, low maintenance cost, simple operations and

longer functional life. Moreover, our entire range of machine components and air tanks is widely

applauded by the patrons for its durability, resistance against corrosion and ability to withstand

extreme temperature.

A spacious and sound warehousing unit is maintained by us for having safe and arranged storage

of all the imported products. Sprawling The warehouse of our firm is always kept free from dust,

moisture and other harmful contaminants, so as to ensure safe storage. All our experts

themselves realize the importance of attaining organizational goals and strive for the same by

working in coordination with one another. A team of procuring agents conducts varied extensive

researches and market surveys to find our best manufacturers of our offered range and associate

ourselves with them. Every professional of our firm is completely aware with the pros and cons

of his/her assigned department, which benefits the firm in successfully accomplishing all the

tasks with perfection. Owing to sound infrastructure facility, diligent workforce, ethical trade

practices and honest dealings, we have mustered numerous patrons for ourselves, across the

world.

We Supply in Pune, Hyderabad, Andhra Pradesh, Chennai, Tamilnadu, Coimbatore,

Bombay, Indore, Madhya Pradesh, Jaipur, Haryana, Delhi, Gurgaon, Ahmadabad,

Karnataka, Bangalore, Mangalore, Maisore, Kerala, Trivendrum, Kochi, Tripura, and

Ernakulum.

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COMPANY GOALS

The following is a list of business goals and milestones we wish to accomplish within the next

three years.

• Secure necessary funds.

• Locate and lease suitable manufacturing facility.

• Purchase machinery, equipment and supplies.

• Hire skilled employees to complete our team.

• Set up shop and open for business.

• Successfully penetrate targeted markets.

• Secure contracts to achieve projected sales goals.

• Become a profitable company.

• Establish a solid reputation as an industry leader.

Our first major milestones will be securing funds and setting up our business. This is our

primary focus right now. In three years, we hope to have established our company in the

community and within our industry.

EXIT STRATEGY:

Should management or our investors seek a business exit, there are several options we would

be willing to pursue. Our company could most likely be sold to a manufacturing company

that does not already have mold manufacturing capabilities. A management buyout could

also be pursued once our business credit is firmly established.

MANAGEMENT ORGANIZATIONAL STRUCTURE

ORGANIZATIONAL STRUCTURE:

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Titus Mold Manufacturing understands the importance of a loyal and enthusiastic team to

reduce turnover and increase productivity. Our company's management philosophy will

encourage responsibility and mutual respect. While we will present a strong decisive

management team, we will also foster an atmosphere of genuine employee appreciation and

open communication.

LEADERSHIP:

Our company will be managed and run by our executive staff including Chief Executive

Officer John Baker, President Michael Smith, and Vice President Susan Jones, as well as our

Board of Directors. Our management staff of directors and supervisors will oversee daily

operations. However, as a small manufacturing facility starting out, the CEO, President and

VP will be responsible for the majority of purchasing, hiring, training, quality control, and

additional day-to-day duties.

Additional key leaders will include directors of finance, marketing and sales, human

resources, information technology and operations. While these positions remain unfilled at

this time, we do have several extremely qualified candidates interested in joining with us in

this new venture.

As we start our mold manufacturing business, we will implement a plan to hire management

and production staff first and fill in with mid-level management and administrative staff as

our budget and needs change.

BOARD MEMBERS & ADVISORS:

Our Board of Directors is not yet fully formed. CEO John Baker will serve as Chairman. The

board will consist of company owners (shareholders), officers and directors.

Duties of the Board of Directors may include:

• Establishing broad company policies and objectives.

• Selecting, appointing, and reviewing the performance of executive staff.

• Insuring the availability of adequate financial resources and approving annual budgets.

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• Accounting to the stakeholders for the organization's performance

We will actively seek individuals to sit on our Board of Directors who will have the ability

to add to and advise our organization such as lawyers, accountants, and professionals in the

automotive or medical fields.

INTRODUCTION OF HIMACHAL PRADESH COMPANY:

Pushpa Machines Pvt. Ltd. is a renowned name in the industry. Based in Uttar Pradesh,

They serve customer all over India. Over the years, we have established ourselves in the

market and have satisfied numerous customers with our

products.

Infrastructure

one of the prized possessions of our company is our state-of-the-art infrastructure endowed

with latest hardware and software components incorporated seamlessly together to empower

us with the capability to produce bulk requirements. To further increase productivity, our

infrastructure is segregated in various departments such as:

• Production unit

• R&D department

• Testing facility

• Sales & marketing

• Customer care and many more.

Quality Policy:

We are a quality oriented company and ensure each product is produced using top

grade raw materials. Our entire range of products is durable, reliable and has long service

life. Rigorously tested to determine their quality, working condition, capacity and

limitations, our products guarantee optimum performance.

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Packaging & Delivery:

• Packaging: We ensure our Machines are packed securely. We use superior packaging

materials and advanced techniques to ensure our products are not damaged while storing

or transportation.

• Delivery: We have a wide network of dealers that empowers us to deliver products on

time and within the scheduled time frame.

COMPANY PROFILE

1Basic information

Nature of BusinessExporter

Additional Business SupplierTraderImporter

Industry Industrial goods

Registered Address No. 203, Time Square Complex, Opposite Balaji Hall, 150 Feet Ring Road, Rajkot - 360 005, Gujarat.

Year of Establishment 2007

Total Number of Employees

Upto 10 People

Legal Status of Firm Partnership Firm Registered under Indian Partnership Act 1932

Proprietor Name Mr. Ankit Vagadiya

Annual Turnover Rs. 2 - 5 Crore

Trade & Market

Export Percentage 20-40%

Infrastructure

Location Type Urban

Building Infrastructure Permanent

Size of Premises 250 square feet

Location Photo 1

Location Photo 2

Company USP

Primary Competitive Advantage

• Experienced R & D Department

• Good Financial Position & TQMStatutory Profile

Banker • HDFC Bank

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COMPANY TEAM:

We have a team of competent and proficient professionals, which has proved to be the driving force of our organization. With the efficient assistance and hard work of our workforce, we have been able to offer a flawless range of Color Sorter Machines & Components and Air Compressors & Tanks to the esteemed customers. Our professionals understand the distinct needs of our clients and make sure to fulfill them in the best possible manner. The professionals associated with our organization are well versed with latest technologies and methodologies. Moreover, we conduct seminars and workshops for our workforce to update its knowledge about the market demand and technological advancements related to our domain.

Some of the members in our team are as follows:

• Procuring agents • Quality controllers

• Warehousing experts

• Packaging experts

• Skilled laborers

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VENDOR BASE

We have been associated with some of most trusted vendors of the

industry for procuring the range of defect-free Color Sorter Machines & Components and Air

Compressors & Tanks. Our team of experts selects the most authentic vendors for sourcing the

range of products as per the market demand. The vendors associated with our organization make

use of the best quality components and other material for manufacturing the entire range of

products. Moreover, they employ cutting-edge technology and sophisticated machinery for

designing, manufacturing, quality checking and packaging the products in compliance with the

international quality standards.

Following are the factors that are considered while selecting these vendors:

• Market repute

• Timely delivery

• Ability to take bulk orders

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• Competitive prices

MANUFACTURING PROCESS OF PAPER CUPS:

We have proposed to use the Automatic Paper Cup Forming Machine for our manufacturing process of Paper Cups. The general structure of paper cup forming machine is composed of three stages. They are:

1. The first stage: mainly finishes transmission of the paper cup's sidewall paper, shaping side-wall and transferring them to the second stage after shaped.

2. The second stage: transmission of the cup-bottom paper, shaping cup bottom, joining the shaped side-wall and cup bottom, automaticTransmission and discharging of the shaped cup, and curling the shaped cup's edge.

3. The third stage: mainly includes 45 degree angle separating, preheating, curling bottom, curling rim and so on mechanisms, which are the important parts in finishing paper cup.

PACKAGING

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The Company Provide Plywood packing for machine. A spacious

and sound warehousing unit is maintained by us for having safe and arranged storage of

all the imported products. Sprawling over an extensive area of land, this facility makes it

possible for our storekeepers to have categorized storage of all the products. The

warehouse of our firm is always kept free from dust, moisture and other harmful

contaminants, so as to ensure safe storage. Linked with variegated shipment network, our

warehouse supports the logistic experts in providing prompt delivery of orders at the

client’s destination.

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STRENGTH

• Experienced R & D Department

• Good Financial Position & TQM

• Patents

• Strong brand names

• Good reputation among customers.

• Favorable access to distribution networks.

WEAKNESS

• Lack of patent protection

• High cost structure

• Lack of access to key distribution channels.

OPPORTUNITY

• Cover more area of market in current situation.

• An unfulfilled customer need.

• Removal of international trade barriers.

• Arrival of new technology.

THREATS

Government rules of transportation in states and outside the state like Taxes, VAT, CST and

other to apply drastic changes government revolution is the major challenge to the industry.

• Shifts in consumer testes away firms products

• Emergence of substitute products.

• Increased trade barriers.

• New regulations.

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Product

1. DISPOSABLE CUP MAKING MACHINE

We are leading suppliers and traders of Disposal Cup Making Machine in the industry. Disposal Cups of a wide range of mark can be manufactured using this organization. These machines function in a highly cost in effect manner and consume less power. One side Letter of the alphabet coated cups can be manufactured in majority quantities using these machines. Customers can avail these machines at volume unit market price.

Since the inception of our organization, we are involved in production of Disposable Cup Making Machine. Widely used for manufacturing large number of disposable cups, this Disposable Cup Making Machine is reliable and has protective layer which provides complete protection to this Disposable Cup Making Machine from effects of rust and water. In order to meet rising demands of our large client base, we are offering Disposable Cup Making Machine at economical price.

We are one of the prime suppliers of disposable cup making machines. Our disposable cup making machines are fully automatic machines that are use for the making of glasses various sizes with high quality. We are the suppliers of automatically designed disposable cup making machine that are designed based on advanced technology and best preferred design. Our disposable cup making machine that are highly appreciated among our clients in the global market are much preferred machines. These disposable cup making machine are equipped with

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multi tasking station, failure detection and alarm system to protect them from major failure and damages.

These disposable cup making machine are manufactured using high quality raw material in compliance with international standards and are for easy cup making features. Especially designed by expert using state of the art systems, these disposable cup making machines have attractive stainless steel frames and with a perfect working mechanism of automatic paper feeding, sealing, oiling, bottom, punching, heating, curling and cup discharge. Our broad range of disposable cup making machines are widely acknowledged for their superb quality, high dispensing ability, durability, less power consumption and easy maintenance.

As per the requirements of the customers, we are involved in offering best quality of Disposable Cup Making Machine. This Disposable Cup Making Machine is extensively used for formation of glass of various sizes with high quality. Further, we are able to meet the huge market demands in given time frame.

Features:

• Attractive designs• Good quality

• Minimum price

• Light weight

• Long lasting

• Seamless finish

• Excellent performance

• Quality specification

• Hassle free performance

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2. PAPER CUP MAKING MACHINE

This Paper Cup Making Machines operates simple, stable performance with high efficiency

which is ideal equipment for producing paper/tea/coffee-drinking cups, juice/beverage cups, ice

cream cups, etc. It is widely used for hot drink and other beverages.

There are two types of machines, one is hot cup making machine type and the other is cold cup

type forming machine. These days, the machines are also being restricted with ocular controlled

non contact key which makes the entire paper/tea cup making progression very proficient and

simple.

Keeping in mind the various requirements of the customers, we are involved in offering best

quality of Paper Cup Making Machine. The offered Paper Cup Making Machine is extensively

used for formation of glass of various sizes with high quality. Our products are available in the

market in wide range at reasonable rates.

Our clients can avail from us an unparalleled assembly of Disposable Paper Cup Making

Machine. This range is widely acclaimed as an Automatic paper cup machine, multi-working

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station machine and is worked on paper feeding, sealing, oiling, bottom punching, heating,

curling and cup discharge procedures that aid us in creating single coated paper cups.

Leveraging on our sound domain knowledge of manufacturing, supplying, and exporting a

broad collection of Casting Dies we are offering Paper Plate Precision Dies to our prestigious

clients. These are made by using cutting edge technologies in modern manufacturing facilities.

We use only the finest grades of metal alloys that are procured from leading vendors of the

domain to manufacture these by adhering to rigorous standards of quality. Our clients can avail

our immaculate customization facilities to manufacture these as per given specifications.

Specifications:

• Raw material:250-300 GSM

• Capacity:40-50 pcs/min

Features:

• Good quality raw material

• Exceptional finishing

• Nominal cost

• Impeccable finish

• Dimensional accuracy

• Certified by CE approval

• Offered with optically controlled non-contact switch, which ensures the safety of

machine and operator

• Speed regulation is controlled by the micro computer controlled inverter of the machine

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• Installed with a photoelectric tracing system

• Equipped with high quality bearings

Application:

• Disposable paper cups

• Paper cup containers

Material:

• The frame is made utilizing metal and the steel is used for body

Maintenance:

• Sanitation and cleanliness of the machine should be fixed

• A fixed schedule should be maintained to clean lubricated places and lubricate them with

glycerol

• Keep greasy dirt away from the paper, die and roller

• Should be located away from paper scraps, dust accumulation or plastic rolling

Technical Details:

General power 3.5KWPaper request 150-350g/ Single Pe Coated Paper)Power supply 220V50HZ/ 380V50HZ Or CustomizeCup size 2 -12OZSpeed 40-55PCS/MINWeight 1750KGS

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Bottom diameter 45mmDimension 2800×1400×1700MM

MARKET ANALYSIS & MARKETING PLAN

INTRODUCTION

The disposable plastic cups are manufactured by thermoforming technique. They are fast replacing

conventional cups. Drinking water, Ice-cream and other dairy products are packed in disposable

cups. Besides Ice-cream industry, hotels, restaurants, canteens etc. have been increasingly using

disposable cups as against conventional glass-wares or ceramic cups. Disposable cups are mainly

used for food items and are made out of polypropylene or polystyrene sheets. Sheets having

thickness 0.35 mm to 2 mm is used for these items in thermoforming machine. The disposable cups

are gaining popularity due to attractive look, light weight for container, ease of transportation and

low impermeability. Now-a-days organizations like railways, airlines are using disposable cups for

serving water, coffee, tea etc.

MARKET POTENTIAL:

Due to the recent change in the life style of urban class the demand for disposable cups is

increasing at a rapid rate. Apart from being used at home, they also come in handy during

parties, picnics and other functions and get-togethers. Plastic disposable cups are also used by

Ice-cream industry, hotels, restaurants, canteens etc. but the major customer of disposable cups

is ice-cream industry and they have started using plastic cups instead of paper ones that were

being used earlier. The main advantage of these plastic cups is that they are completely leak

proof. Plastic cups can be made up of different sizes and they can hold bulk material easily in

comparison to the traditional paper cups. Besides organization like Railways, Airlines are using

a good quantity of plastic disposable cups.

Considering the above factors, demand of disposable cups is expected to increase faster in

future.

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BASIS AND PRESUMPTIONS:

• The basis for the calculation of the production capacity is calculated on single lift basis

on 75% efficiency.

• The rate of interest in the scheme has been taken on the basis of 14% at an average.

How-ever, this figure is likely to vary depending on the financial outlay of the project as

well as location of the unit.

• The breakeven point in the scheme has been calculated on the full capacity utilization

basis.

• Labor wages-Estimated on the minimum wages.

• The Cost of machinery, equipment, raw material and other expenditure initiated in the

profile are based on the prices prevailing at the time of project preparation. Therefore

they are subject to necessary change from time to time based on local condition and

availability.

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IMPLEMENTATION SCHEDULE

S.No. Activity Estimated

period

required 1. Market survey for collection of data in

respect of demand, raw material,

machinery and selection of site.

4 Weeks

2. Preparation of project document and

registration and other clearance.

4 Weeks

3. Arrangement of finance /loan 4 Weeks

4. Procurement of machinery & equipment

& Installation

6 Weeks

5. Purchase of raw materials 2 Weeks

6. Trail Production 2 Weeks

Total 22 Weeks

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TECHNICAL ASPECTS

Process of Manufacturing:

Polypropylene/Polystyrene sheet feeding reels of preset length is dragged from

bobbin reel in the Thermoforming plant. The conveyor chains carry the sheet through the heater

assembly to the Forming table. The heated sheet is punched to form the shape of the mould. The

cups thus formed are stocked and the punched waster sheet is wound on scrap sheet winder. To

get printed cups, the sheets are printed before forming into cup. Taking 200ml. cup as yard stick

as it is mostly used for serving drinking water, coffee/tea etc., The installed capacity of the

machine with 16 cavities mould is approximately 1,53,600 cups per shift. In terms of weight, a

200ml cup made of 0.7mm thick High Impact Polystyrene sheet is approximately 2.58 gms.

Therefore, the total weight of output per shift is 396 Kg Approx. The average weight of sheet

required per cup is 3.2gms. (Which implies wastage of approximately 0.62 gms per cup). As the

raw material wastage is very high the scrap needs to be recycled. The scrap can be ground and

may be either extruded in sheet extruder or sale.

Production Capacity: 120 MT of Disposable Plastic Cups @ Rs. 1, 54,000/- per MT

Value: Rs. 1, 84, 80,000/-

Quality Control and Standards: The Plastic disposable cups are manufactured as per

customer requirement and specification.

Motive Power: 70 KW

Pollution Control:

The unit does not create any pollution. However, proper ventilation should be made in the

processing area for the better circulation of the fresh air.

Energy Conservation:

Entrepreneurs may select energy efficient machinery and proper planning has also to be made

for saving energy in the unit.

MICHAEL PORTER’S FIVE FORCE MODEL

Michael Porter is well known for his forces framework which remains one

of the best ways to assess an industry’s underlying structure.

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One important component of industry analysis involves analyzing into the

industry’s competitive forces to discover what the main forces of competitive pressure

are and how strong each competitive force it.

Michael Porter provided a framework that models an industry as being

influenced by five forces.

While some investors and analysts employ the framework to declare an industry

attractive or unattractive , Porter recommends using industry analysis to understand “the

underpinnings of competition and root causes of profitability.”

A model consisting of five competitive force has been proposed – threat of

new entrants . rivalry among competitors , bargaining power of suppliers, bargaining power

of buyers and threat of substitute products – that determine the intensity of industry

competition and profitability.

Rivalry among Existing Competitors: -

Two types of rivalry:

(1) Inside India

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(2) Outside India.

International rivals Such as, Chile.

Threat from producing nation like U.A.E , Middle East and Africa.

Products with reasonable price and high quality.

Bargaining Power of Suppliers:-

In Machinery making industry the suppliers are U.A.E , Africa , Western Europe ,

South Asia and Middle East.

Few Alternatives of Fully automatic Machines and Two steps Plastic cup making

Machines.

Skilled labor

Bargaining power of India is enhanced because India is largest consumer of

Disposable and Plastic cup making Machinery.

Bargaining Power of Buyers:-

Divided in two types

1.) Domestic buyers

2.) Foreign buyers

As investment (Demand increase) Bargaining power of Indian exporter went

unchallenged.

Expertise require to fulfill the needs of buyers world over.

Threat of Substitutes:

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Substitutes are Plastic Foam Plate and Cup and Food Box making Machine ,

Injection molding machine for making plastic bowls /plats / cups and spoons , 2014 New

style plastic plates and cups making Machines etc.

Status and standard of living become fast and increase level Consumption , so

demand of products of use and throw is increasing at high rate.

Time, Money, Personal Preferences and convenience should also consider in the

machinery making Industry.

Threat of New Entrants:-

High capital requirement.

Government subsidy.

EXIM policy & government’s rules-regulations are high.

Skilled manpower is essential.

Advanced technology required.

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IMPORT/EXPORT POLICIES & PROCEDURES FOR DISPOSABLE CUP MAKING MACHINE

IMPORT CUSTOMS PROCEDURES IN CHILE:

CUSTOMS PROCEDURES:

Import Procedures:

Chile is a very open market. All natural persons or legal entities are authorized to carry out import transactions. In spite of the liberal import regime, licenses are required for goods whose value is over 3,500 USD. In principle, they are granted automatically by the Central Bank of Chile. The importer must present an "Informe de Importacion", a document which must go through the commercial bank.

The commercial forms used by both importers and exporters are commercial invoices, certificates of origin, bills of lading, freight insurance and packing lists. Special permission, certificates, and approval documents, such as sanitary and phytosanitary certificates, are required for most agricultural products and in special cases for industrial products.

Specific Import Procedures:

Chile only approves the import of processed food products on a case-by-case basis.To bring in a product, the importer must obtain the permission of the Health Service Officer at the port of entry.

Importing Samples:

It is possible to export temporarily to Chile according to the procedure in the ATA 12 documentation. It allows temporary admission: - of commercial samples, - merchandise en route to markets, exhibitions and other commercial displays, - professional materials. The carnet ATA equally applies to postal and transit traffic. On the other hand it is not acceptable as regards unaccompanied merchandise.

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COMMON EXPORT DOCUMENTS

This section covers documents that are commonly used in exporting, but specific requirements vary by destination and product. It is divided into the following subsections: common export documents, transportation documents, export compliance documents, certificates of origin, other certificates for shipments of specific goods and, other export-related documents.

COMMON EXPORT DOCUMENTS:

Commercial Invoice :

A commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods when assessing customs duties. Governments that use the commercial invoice to control imports will often specify its form, content, number of copies, language to be used, and other characteristics.

Export Packing List :

Considerably more detailed and informative than a standard domestic packing list, an export packing list lists seller, buyer, shipper, invoice number, date of shipment, mode of transport, carrier, and itemizes quantity, description, the type of package, such as a box, crate, drum, or carton, the quantity of packages, total net and gross weight (in kilograms), package marks, and dimensions, if appropriate. Both commercial stationers and freight forwarders carry packing list forms. A packing list may serve as conforming document. It is not a substitute for a commercial invoice.

Pro Forma Invoice :

A pro forma invoice is an invoice prepared by the exporter before shipping the goods, informing the buyer of the goods to be sent, their value, and other key specifications. It also can be used as an offering of sale or price quotation.

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TRANSPORTATION DOCUMENTS:

Airway Bill :

Air freight shipments require airway bills. Airway bills are shipper-specific (i.e., USPS, Fed-Ex, UPS, DHL, etc.).

Bill of Lading:

A bill of lading is a contract between the owner of the goods and the carrier (as with domestic shipments). For vessels, there are two types: a straight bill of lading, which is non-negotiable, and a negotiable or shipper's order bill of lading. The latter can be bought, sold, or traded while the goods are in transit. The customer usually needs an original as proof of ownership to take possession of the goods.

Electronic Export Information Filing (formerly known as the Shipper’s Export Declaration)

Electronic Export Information (EEI) is the most common of all export control documents. It is required for shipments above $2,500* and for shipments of any value requiring an export license.

EXPORT COMPLIANCE DOCUMENTS:

Export Licenses:

An export license is a government document that authorizes the export of specific goods in specific quantities to a particular destination. This document may be required for most or all exports to some countries or for other countries only under special circumstances. Examples of export license certificates include those issued by the Department of Commerce’s Bureau of Industry and Security, the State Department’s Directorate of Defense Trade Controls, the Nuclear Regulatory Commission, and the U.S. Drug Enforcement Administration.

Destination Control Statement:

A Destination Control Statement (DCS) is required for exports from the United States for items on the Commerce Control List that are outside of EAR99 (products for which no license is required) or controlled under the International Traffic in Arms Regulations (ITAR). A DCS appears on the commercial invoice, ocean bill of lading, or airway bill to notify the carrier and all foreign parties that the item can be exported only to certain destinations.

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CERTIFICATES OF ORGIN:

Generic Certificate of Origin :

The Certificate of Origin (CO) is required by some countries for all or only certain products. In many cases, a statement of origin printed on company letterhead will suffice. The exporter should verify whether a CO is required with the buyer and/or an experienced shipper/freight forwarder or the Trade Information Center.

OTHER CERTIFICATES FOR SHIPMENTS OF SPECIFIC GOODS:

Certificate of Analysis:

A certificate of analysis can be required for seeds, grain, health foods, dietary supplements, fruits and vegetables, and pharmaceutical products.

Certificate of Free Sale:

Certificate of free sale may be issued for biologics, food, drugs, medical devices and veterinary medicine. More information is available from the Food and Drug Administration. Health authorities in some states as well as some trade associations also issue Certificates of Free Sale.

Dangerous Goods Certificate :

Exports submitted for handling by air carriers and air freight forwarders classified as dangerous goods need to be accompanied by the Shipper’s Declaration for Dangerous Goods required by the International Air Transport Association (IATA). The exporter is responsible for accuracy of the form and ensuring that requirements related to packaging, marking, and other required information by IATA have been met.

For shipment of dangerous goods it is critical to identify goods by proper name, comply with packaging and labeling requirements, which vary depending upon the type of product shipper and the country shipped to.

For ocean exports, hazardous material regulations are contained in the International Maritime Dangerous Goods regulations.

Health Certificate:

For shipment of live animals and animal products (processed foodstuffs, poultry, meat, fish, seafood, dairy products, and eggs and egg products). Note: some countries require that health certificates be notarized or certified by a chamber and legalized by a consulate. Health certificates are issued by the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS).

Inspection Certificate:

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Weight and Quality certificates should be provided in accordance with governing USDA/GIPSA regulations for loading at port and loading at source/mill site as appropriate. A certificate of origin certified by the local chamber of commerce at the load port and a phytosanitary certificate issued by APHIS/USDA and fumigation certificate are to be provided to the buyer. Costs of all inspection, as well as certificates/documents at the load port, are usually the responsibility of the seller. Independent inspection certificates may required in some instances.

Pre-Shipment Inspections :

The governments of a number of countries have contracted with international inspection companies to verify the quantity, quality, and price of shipments imported into their countries. The purpose of such inspections is to ensure that the price charged by the exporter reflects the true value of the goods, to prevent substandard goods from entering the country, and to deflect attempts to avoid payment of customs duties. Requirements for pre-shipment inspection are normally spelled out in letter-of-credit or other documentary requirements.

Insurance Certificate :

Insurance certificates are used to assure the consignee that insurance will cover the loss of or damage to the cargo during transit. These can be obtained from your freight forwarder or publishing house. Note: an airway bill can serve as an insurance certificate for a shipment by air. Some countries may require certification or notification.

Radiation Certificate:

Some counties including Saudi Arabia may require this certificate for some plant and animal imports. The certificate states that the products are not contaminated by radioactivity.

Other (Product-Specific) Certificates:

Shaving brushes and articles made of raw hair must be accompanied by a recognized official certificate showing the consignment to be free from anthrax germs. Used clothing requires a disinfection certificate. Grain requires a fumigation certificate, and grain and seeds require a certificate of weight. Many countries in the Middle East require special certificates for imports of animal fodder additives, livestock, pets, and horses.

Weight Certificate :

A certificate of weight is a document issued by customs, certifying gross weight of the exported goods.

OTHER EXPORT-RELATED DOCUMENTS:

Consular Invoice:

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Required in some countries, a consular invoice describes the shipment of goods and shows information such as the consignor, consignee, and value of the shipment.

Canadian Customs Invoice:

Although not required by regulation, this customs invoice is a preferred document by Canadian Customs and customs brokers. It is issued in Canadian dollars for dutiable and taxable exports exceeding $1600 Canadian dollars.

Dock Receipt and Warehouse Receipt:

A dock receipt and warehouse receipt are used to transfer accountability when the export item is moved by the domestic carrier to the port of embarkation and left with the ship line for export.

Import License:

Import licenses are the responsibility of the importer and vary depending upon destination and product. However, including a copy of an import license with the rest of your documentation may in some cases help avoid problems with customs in the destination country.

MODE OF ENTRY TO FOREIGN MARKETS

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There are two major types of entry modes: equity and non-equity modes. The non-equity modes category includes export and contractual agreements. The equity modes category includes: joint venture and wholly owned subsidiaries

EXPORTING:

Exporting is the process of selling of goods and services produced in one country to other countries.

There are two types of exporting: direct and indirect.

1) Direct Exports:

Direct exports represent the most basic mode of exporting made by a (holding) company, capitalizing on economies of scale in production concentrated in the home country and affording better control over distribution. Direct export works the best if the volumes are small. Large volumes of export may trigger protectionism. The main characteristic of direct exports entry model is that there are no intermediaries.

Passive exports represent the treating and filling overseas orders like domestic orders.

Types: Sales representatives:

Sales representatives represent foreign suppliers/manufacturers in their local markets for an established commission on sales. Provide support services to a manufacturer regarding local advertising, local sales presentations, customs clearance formalities, legal requirements. Manufacturers of highly technical services or products such as production machinery, benefit the most form sales representation.

Importing distributors:

Importing distributors purchase product in their own right and resell it in their local markets to wholesalers, retailers, or both. Importing distributors are a good market entry strategy for products that are carried in inventory, such as toys, appliances, prepared food.

Advantages:• Control over selection of foreign markets and choice of foreign representative companies• Good information feedback from target market, developing better relationships with the

buyers

• Better protection of trademarks, patents, goodwill, and other intangible property

• Potentially greater sales, and therefore greater profit, than with indirect exporting.

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Disadvantages:• Higher start-up costs and higher risks as opposed to indirect exporting• Requires higher investments of time, resources and personnel and also organizational

changes

• Greater information requirements

• Longer time-to-market as opposed to indirect exporting.

2) Indirect Exports

Indirect exports are the process of exporting through domestically based export intermediaries. The exporter has no control over its products in the foreign market.

Types: Export trading companies (ETCs):

These provide support services of the entire export process for one or more suppliers. Attractive to suppliers that are not familiar with exporting as ETCs usually perform all the necessary work: locate overseas trading partners, present the product, quote on specific enquiries, etc.

Export management companies (EMCs):

These are similar to ETCs in the way that they usually export for producers. Unlike ETCs, they rarely take on export credit risks and carry one type of product, not representing competing ones. Usually, EMCs trade on behalf of their suppliers as their export departments.

Export merchants:

Export merchants are wholesale companies that buy unpackaged products from suppliers/manufacturers for resale overseas under their own brand names. The advantage of export merchants is promotion. One of the disadvantages for using export merchants result in presence of identical products under different brand names and pricing on the market, meaning that export merchant’s activities may hinder manufacturer’s exporting efforts.

Confirming houses:

These are intermediate sellers that work for foreign buyers. They receive the product requirements from their clients, negotiate purchases, make delivery, and pay the suppliers/manufacturers. An opportunity here arises in the fact that if the client likes the product it may become a trade representative. A potential disadvantage includes

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supplier’s unawareness and lack of control over what a confirming house does with their product.

Nonconforming purchasing agents:

These are similar to confirming houses with the exception that they do not pay the suppliers directly – payments take place between a supplier/manufacturer and a foreign buyer.

Advantages:• Fast market access• Concentration of resources towards production

• Little or no financial commitment as the clients' exports usually covers most expenses associated with international sales.

• Low risk exists for companies who consider their domestic market to be more important and for companies that are still developing their R&D, marketing, and sales strategies.

• Export management is outsourced, alleviating pressure from management team

• No direct handle of export processes.

Disadvantages:• Little or no control over distribution, sales, marketing, etc. as opposed to direct exporting• Wrong choice of distributor, and by effect, market, may lead to inadequate market

feedback affecting the international success of the company

• Potentially lower sales as compared to direct exporting (although low volume can be a key aspect of successfully exporting directly). Export partners that incorrectly select a specific distributor/market may hinder a firm's functional ability.

LICENSING :

An international licensing agreement allows foreign firms, either exclusively or non-exclusively to manufacture a proprietor’s product for a fixed term in a specific market.

Summarizing, in this foreign market entry mode, a licensor in the home country makes limited rights or resources available to the licensee in the host country. The rights or resources may include patents, trademarks, managerial skills, technology, and others that can make it possible for the licensee to manufacture and sell in the host country a similar product to the one the licensor has already been producing and selling in the home country without requiring the licensor to open a new operation overseas. The licensor earnings usually take forms of one time payments, technical fees and royalty payments usually calculated as a percentage of sales.

As in this mode of entry the transference of knowledge between the parental company and the licensee is strongly present, the decision of making an international license agreement depend on the respect the host government show for intellectual property and on the ability of the licensor

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to choose the right partners and avoid them to compete in each other market. Licensing is a relatively flexible work agreement that can be customized to fit the needs and interests of both, licensor and licensee.

Following are the main advantages and reasons to use an international licensing for expanding internationally:

• Obtain extra income for technical know-how and services• Reach new markets not accessible by export from existing facilities

• Quickly expand without much risk and large capital investment

• Pave the way for future investments in the market

• Retain established markets closed by trade restrictions

• Political risk is minimized as the licensee is usually 100% locally owned

• Is highly attractive for companies that are new in international business.

On the other hand, international licensing is a foreign market entry mode that presents some disadvantages and reasons why companies should not use it as:

• Lower income than in other entry modes• Loss of control of the licensee manufacture and marketing operations and practices

leading to loss of quality

• Risk of having the trademark and reputation ruined by an incompetent partner

• The foreign partner can also become a competitor by selling its production in places where the parental company is already in.

FRANCHISING :

The by the franchisor. In addition to that, while a licensing agreement involves things such as intellectual property, trade secrets and others while in franchising it is limited to trademarks and operating know-how of the business.

Advantages of the international franchising mode:

• Low political risk• Low cost

• Allows simultaneous expansion into different regions of the world

• Well selected partners bring financial investment as well as managerial capabilities to the operation.

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TURNKEY PROJECTS:

A turnkey project refers to a project when clients pay contractors to design and construct new facilities and train personnel. A turnkey project is a way for a foreign company to export its process and technology to other countries by building a plant in that country. Industrial companies that specialize in complex production technologies normally use turnkey projects as an entry strategy.

One of the major advantages of turnkey projects is the possibility for a company to establish a plant and earn profits in a foreign country especially in which foreign direct investment opportunities are limited and lack of expertise in a specific area exists.

Potential disadvantages of a turnkey project for a company include risk of revealing companies secrets to rivals, and takeover of their plant by the host country. Entering a market with a turnkey project CAN prove that a company has no long-term interest in the country which can become a disadvantage if the country proves to be the main market for the output of the exported process.

WHOLLY OWNED SUBSIDIARIES (WOS):

A wholly owned subsidiary includes two types of strategies: Greenfield investment and Acquisitions. Greenfield investment and acquisition include both advantages and disadvantages. To decide which entry modes to use is depending on situations.

Greenfield investment is the establishment of a new wholly owned subsidiary. It is often complex and potentially costly, but it is able to provide full control to the firm and has the most potential to provide above average return. “Wholly owned subsidiaries and expatriate staff are preferred in service industries where close contact with end customers and high levels of professional skills, specialized know how, and customization are required.” Greenfield investment is more likely preferred where physical capital intensive plants are planned. This strategy is attractive if there are no competitors to buy or the transfer competitive advantages that consists of embedded competencies, skills, routines, and culture.

Greenfield investment is high risk due to the costs of establishing a new business in a new country. A firm may need to acquire knowledge and expertise of the existing market by third parties, such consultant, competitors, or business partners. This entry strategy takes much time due to the need of establishing new operations, distribution networks, and the necessity to learn and implement appropriate marketing strategies to compete with rivals in a new market.

Acquisition has become a popular mode of entering foreign markets mainly due to its quick access. Acquisition strategy offers the fastest, and the largest, initial international expansion of any of the alternative.

Acquisition has been increasing because it is a way to achieve greater market power. The market share usually is affected by market power. Therefore, many multinational corporations apply

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acquisitions to achieve their greater market power, which require buying a competitor, a supplier, a distributor, or a business in highly related industry to allow exercise of a core competency and capture competitive advantage in the market.

Acquisition is lower risk than Greenfield investment because of the outcomes of an acquisition can be estimated more easily and accurately. In overall, acquisition is attractive if there are well established firms already in operations or competitors want to enter the region.

On the other hand, there are many disadvantages and problems in achieving acquisition success.

• Integrating two organizations can be quite difficult due to different organization cultures, control system, and relationships.Integration is a complex issue, but it is one of the most important things for organizations.

• By applying acquisitions, some companies significantly increased their levels of debt which can have negative effects on the firms because high debt may cause bankruptcy.

• Too much diversification may cause problems. Even when a firm is not too over diversified, a high level of diversification can have a negative effect on the firm in the long-term performance due to a lack of management of diversification.

JOINT VENTURE:

There are five common objectives in a joint venture: market entry, risk/reward sharing, technology sharing and joint product development, and conforming to government regulations.

Other benefits include political connections and distribution channel access that may depend on relationships.

Such alliances often are favourable when:

• The partners' strategic goals converge while their competitive goals diverge• The partners' size, market power, and resources are small compared to the Industry

leaders

• Partners are able to learn from one another while limiting access to their own proprietary skills

The key issues to consider in a joint venture are ownership, control, length of agreement, pricing, technology transfer, local firm capabilities and resources, and government intentions. Potential problems include:

• Conflict over asymmetric new investments• Mistrust over proprietary knowledge

• Performance ambiguity - how to split the pie

• Lack of parent firm support

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• Cultural clashes

• If, how, and when to terminate the relationship

Joint ventures have conflicting pressures to cooperate and compete:

• Strategic imperative: the partners want to maximize the advantage gained for the joint venture, but they also want to maximize their own competitive position.

• The joint venture attempts to develop shared resources, but each firm wants to develop and protect its own proprietary resources.

• The joint venture is controlled through negotiations and coordination processes, while each firm would like to have hierarchical control.

STRATEGIC ALLIANCE:

A strategic alliance is a type of cooperative agreements between different firms, such as shared research, formal joint ventures, or minority equity participation.The modern form of strategic alliances is becoming increasingly popular and has three distinguishing characteristics:

1. They are frequently between firms in industrialized nations.2. The focus is often on creating new products and/or technologies rather than distributing

existing ones.

3. They are often only created for short term durations.

Advantages:

Some advantages of a strategic alliance include:

Technology exchange:

This is a major objective for many strategic alliances. The reason for this is that many breakthroughs and major technological innovations are based on interdisciplinary and/or inter-industrial advances. Because of this, it is increasingly difficult for a single firm to possess the necessary resources or capabilities to conduct their own effective R&D efforts. This is also perpetuated by shorter product life cycles and the need for many companies to stay competitive through innovation. Some industries that have become centers for extensive cooperative agreements are:

• Telecommunications• Electronics

• Pharmaceuticals

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• Information technology

• Specialty chemicals

Global competition:

There is a growing perception that global battles between corporations be fought between teams of players aligned in strategic partnerships.Strategic alliances will become key tools for companies if they want to remain competitive in this globalized environment, particularly in industries that have dominant leaders, such as cell phone manufactures, where smaller companies need to ally in order to remain competitive.

Industry convergence:

As industries converge and the traditional lines between different industrial sectors blur, strategic alliances are sometimes the only way to develop the complex skills necessary in the time frame required. Alliances become a way of shaping competition by decreasing competitive intensity, excluding potential entrants, and isolating players, and building complex value chains that can act as barriers.

Economies of scale and reduction of risk:

Pooling resources can contribute greatly to economies of scale, and smaller companies especially can benefit greatly from strategic alliances in terms of cost reduction because of increased economies of scale.

In terms on risk reduction, in strategic alliances no one firm bears the full risk, and cost of, a joint activity. This is extremely advantageous to businesses involved in high risk / cost activities such as R&D. This is also advantageous to smaller organizations which are more affected by risky activities.

Alliance as an alternative to merger:

Some industry sectors have constraints to cross-border mergers and acquisitions, strategic alliances prove to be an excellent alternative to bypass these constraints.

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Alliances often lead to full-scale integration if restrictions are lifted by one or both countries.

Disadvantages:1. Difficult to find a good partner2. Risk of unequal partnership

3. Loss of control

4. Relationship management across borders.

SUPPORTING INSTITUTES TO FACILITATE

EXPORT/IMPORT

Export-Import Bank of India (EXIM Bank) - Web site of EXIM Bank:

Export-Import Bank of India (Exam Bank) www.eximbankindia.in Export-Import Bank of India (EXIM Bank) is a specialized financial institution, wholly owned by Government of India, set up in 1982, for financing, facilitating and promoting foreign trade of India. EXIM Bank extends Lines of Credit (LOCs) to overseas financial institutions, regional development banks, sovereign governments and other entities overseas, to enable buyers in those countries to import developmental and infrastructure projects, equipment, goods and services from India, on deferred credit terms. EXIM Bank has laid strong emphasis on enhancing project exports, the funding options for which have been enhanced with introduction of the Buyer's Credit-National Export Insurance Account (BC-NEIA) program. The Bank facilitates two-way technology transfer by financing import of technology into India, and investment abroad by Indian companies for setting up joint ventures, subsidiaries or undertaking overseas acquisitions. To promote hi-tech exports from India, the Bank has a lending programmed to finance research and development (R&D) activities of export-oriented companies. During the year ended 31st March, 2013, EXIM Bank sanctioned loans of Rs.40, 960crore, while disbursements amounted to Rs.40,635 crore. Loan Assets stood at Rs.65, 563crore as on March 31, 2013.

EXIM Bank has put in place a Technology and Innovation Enhancement and Infrastructure Development (TIEID) Fund of US$ 500 million exclusively for MSMEs by partnering with Banks/FIs. TIEID seeks to meet long term foreign currency loan requirements of the MSME sector in addition to offering short-term export credit refinance in rupee and foreign currency. The Bank has put in place an Export Marketing Services (EMS) Programme to assist Indian companies in identification of prospective business partners, facilitating placement of final orders and also identification of opportunities for setting up plants or projects or for acquisition of companies overseas. During 2012-13, EXIM Bank became the first ever Indian entity to be

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included in the Emerging Market Bond Index. The Bank became the first Indian entity to tap the Australian Dollar market and Singapore Dollar market.

FINANCIAL PLAN

7.1 REQUIREMENTS

Titus Mold Manufacturing, Inc. requires $4,450,000 to launch and operate. We are currently seeking funding from outside investors and business loans. We are also looking into additional options including supplier financing, deferred rent, subleasing space, partnerships, vending and client advance payment.

At this time, we have raised $450,000 in working capital and are seeking the additional funds to start our business. We have raised $150,000 in venture capital funds. In addition, co-owners John Baker, Michael Smith and Susan Jones have each invested $100,000 into the company.

7.2 USE OF FUNDS

The start-up funds will be used to cover operating costs including payroll, taxes, and utilities. Start-up funds will also be used to purchase capital expenditures such as leasehold improvements, software and machinery, which will produce future benefits for the company. Approximately forty percent will be spent on assets, while the other sixty percent will be spent on operations until we realize profitability.

7.3 INCOME STATEMENT PROJECTIONS

The accompanying income statement demonstrates our company's profitability. Our income shows a gross profit margin of seventy-two percent. Our monthly operating expenses average $116,325. Projected net income will average $54,075 per month in our third year.

After completing a comprehensive break-even analysis, we will achieve our break-even point by the middle of year two.

7.4 CASH FLOW PROJECTIONS

The nature of our business requires that our company collect payment after the product is complete. So we have included the accompanying cash flow statement, which projects our

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monthly flow of cash. While we expect to reach break-even by our eighteenth month, it will take nearly two years to become cash flow positive.

7.5 BALANCE SHEET

Our balance sheet will depend greatly on our sources of capital. We expect to raise approximately $1.5 million through loans and $2.95 million through equity capital.

Our assets will be comprised of cash, leasehold improvements, equipment, software and other tangible assets.

7.6 ASSUMPTIONS

Our projections are based on the assumption that the manufacturing industry, particularly the medical and automotive industries, will continue to follow present trends. Industry regulation and government legislation is always poised to interfere with business projections, but there are no indications at this time to expect any negative influence to our projections. Additionally, we are not relying on new regulations or the passage of new legislation to enable our company to reach our projected numbers.

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Balance sheet of 1 st year

Labiality Amt Asset Amt Owned capital Land & building

810000 3745000+ net profit - dep. 299600 3445400

6040280 6850280 Plant & machinery

Barrowed capital

500000

6000000 - dep.40000 460000+ int. on loan Computer

660000 5340000 50000-dep.1000 49000

Creditors 100000 Furniture

100000Bill payable 900000 -dep.5000 95000

Cash balance 7217400Closing stock 1480000Bill receivable 100000

Debtors 150000Bank balance 193480

13190280 13190280

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TRADING ACCOUNT OF 2 nd YEAR

Particular Amt Particular Amt To opening stock 1480000 By Sales A/c 6000000To perches 900000 Closing stock 4150000to wages 170000To utility 20000

To gross profit (?) 7580000

10150000 10150000

Profit & loss account of 2 nd year

Particular Amt Particular Amt To salary acc. By gross profit 7580000Manager 125000Supervisor 85000Clerk 37000Account 97000To dep.acc.Machinery 40000Land & building 299600Furniture 5000Computer 1000To indirect expense Postage & stationery

25000

Telephone 73000Advertise 73000Repair & maintains

7800

Tax 10000Sales expense 40000Mis .expense 528000Interest on loan 6000

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Net profit 61276007580000 7580000

Balance sheet of 2 nd year

Labiality Amt Asset Amt Owned capital

Land & building

810000 3445400+ net profit - dep. 299600 3145800

6127600 6937600 Plant & machinery

Barrowed capital

460000

6000000 - dep.40000 420000+ int. on loan Computer

660000 5340000 49000-dep.1000 48000

Creditors 700000 Furniture

95000Bill payable 50000 -dep.5000 90000

Cash balance 720000Closing stock 20000Bill receivable 40000

Debtors 4150000Bank balance 4393800

13027600 13027600

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TRADING ACCOUNT OF 3 rd YEAR

Particular Amt Particular Amt To opening stock 454000 By Sales A/c 12800000To perches 1210000 Closing stock 9150000to wages 182000To utility 110000

To gross profit (?) 19994000

21950000 21950000

Profit & loss account of 3 rd year

Particular Amt Particular Amt To salary acc. By gross profit 19994000Manager 126000Supervisor 80000Clerk 38000Account 48000To dep.acc.Machinery 40000Land & building

299600

Furniture 5000Computer 1000To indirect expense Postage & stationery

750000

Telephone 600000Advertise 72000Repair & maintains

73000

Tax 657800Sales expense 300000Mis .expense 3700000

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Interest on loan

396000

Net profit 1280760019994000 19994000

Balance sheet of 3 rd year

Labiality Amt Asset Amt Owned capital Land &

building 810000 3145800

+ net profit - dep. 299600 284620012807600 13617600 Plant &

machineryBarrowed capital 420000

6000000 - dep.40000 380000+ int. on loan Computer

660000 5340000 48000-dep.1000 47000

Creditors 200000 Furniture

90000Bill payable 100000 -dep.5000 85000

Cash balance 73000Closing stock 9150000Bill receivable 48000

Debtors 40000Bank balance 6588400

19257600 19257600

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TRADING ACCOUNT OF 4 th YEAR

Particular Amt Particular Amt To opening stock 2956600 By Sales A/c 14800000To perches 1220000 Closing stock 17650000to wages 183000To utility 112000

To gross profit (?) 27978400

32450000 32450000

Profit & loss account of 4 th year

Particular Amt Particular Amt To salary acc. By gross profit 27978400Manager 258000Supervisor 81000Clerk 50000Account 99000To dep.acc.Machinery 40000Land & building

299600

Furniture 5000Computer 1000To indirect expense Postage & stationery

800000

Telephone 1316800Advertise 78000Repair & maintains

75000

Tax 869500

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Sales expense 320000Mis .expense 900000Interest on loan

264000

Net profit 2252150027978400 27978400

BREAKEVEN POINT & LIST CHART

Break- Even analysis is a concept used very widely in

the production management and costing. It is an analytical tool

which helps the firm to identify that level of sale where it will cover

its cost of production. Any sale over and above the break- Even

Point will accrue profits to the firm, while any sales less than it

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would put the firm into losses. The Break- Even Point shows the

price at which the firm makes neither profit nor loss.

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Limitation of BEP:-

1)For the break- even point to be counted, all costs need to be

clearly categorized in fixed and variable costs, which may not be

possible every time.

2)For the multiple- product or joint- product operations, it is

difficult to apply the break- even analysis. On needs to ascertain

the costs to each product> hence the analysis is applicable only for

single product.

3)The computation of break- even point is based on the

historical information. If this information is not relevant, the

analysis can not be applied usefully.

Significance of Break- Even Analysis

The break- even analysis helps us to determine the levels

of sales necessary to meet all the operating costs. With the

estimates of revenue and costs, we can forecast the profits. One can

also appraise the effects of change in price, fixed costs and variable

cost on sales volume, total cost and total revenue and in turn, on

the break- even point. One can compare the profit earning

capacities of different firms. It can also bring out the significance of

capacity utilization for achieving economy.

BEP ANALYSIS

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1) PVR = C X100

S

=2377200 X100

4650000

=51.12%

BEP = FC

PVR

= 1999600

51.12%

= 3911580.59

2) PVR = C X100

S

=5637200 X100

8050000

=70.03%

BEP = FC

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PVR

= 2018080

70.03%

=2881736.40

3) PVR = C X100

S

= 5021829 X100

7500000

=66.96%

BEP = FC

PVR

= 1958560

66.96%

=2924970.13

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4)PVR = C X100

S

=6189572 X100

8700000

=71.14

BEP = FC

PVR

= 1946270

71.14%

= 2735830.76

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5) PVR = C X100

S

=6931002 X100

9550000

=72.58%

BEP = FC

PVR

= 1896798

72.58%

=2613389.36

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RATIO ANALYLSIS

(1) GROSS PROFIT RATIO= Gross Profit x 100

Net Sales

= 24398000 x 100

19000000

=128.41%

(2) NET PROFIT RATIO = Net Profit x 100

Total Sales

= 14041000x 100

19000000

= 73.9%

(3)STOCK TURNOVER RATIO = SALES X 100

CLOSSING STOCK

= 19000000X100

7030000

= 270.27%

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(4) RETURN ON INVESTEMENT=EBIT x 100

Capital

= 16152400 x 100

810000

= 19.94%

5) EXPENS RATIO = EXPENS X 100

SALES

= 33000X100

19000000

= 0.17%

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