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

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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

Business Plan Plastic 111226114144 Phpapp01

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