Phoneix Papers

8/8/2019 Phoneix Papers

1/52

Presented by:

Kumar Prashant

Ram Kumar Singh

Nitin Champawat

Ashish Chaudhary


2/52

The Indian paper industry has considerable

untapped potential. And low entry barriers make it

attractive to new entrants and the sector is

completely de-licensed. ------ U. Subramanyam

Consumption of paper in India is set to double

from the current 7 million tonnes per annum in thenext eight years, according to Indian Paper

Manufacturers Association (IPMA).

INTRODUCTION


3/52

Some Facts about Mill made Paper

y The pulp and paper industry is the fifth largest consumer of energy,accounting for 4 percent of all the world's energy use.

y The pulp and paper industry uses more water to produce a ton of

product than any other industry.

y 40 percent of office paper still ends up in overburdened landfills.

y Producing pulp and paper casts a long ecological shadow beyond its

impacts on the world's forests. Converting trees into paper uses largeamounts of water, energy and chemicals and can generate vast amountsof air and water pollution.


4/52

WhyHandmade Paper

For everytonne of paper used for recycling thesavings are:

at least 30000 litres of water

3000 - 4000 KWh electricity(enough for an average 3bedroomhouse for oneyear)

95% of air pollution.

28 - 70% less energyconsumption than virgin paper


5/52


6/52

What Would You Prefer?What Would You Prefer?


7/52

CompanyProfile

COMPANY NAME : PHOENIX PAPERS

TYPE : PRIVATE LIMITED

INDUSTRY : PAPER INDUSTRY

HEAD OFFICE : BEGUSARAI, BIHAR.

PRODUCT : HANDMADE PAPERS


8/52

Mission, Vision & Objective

Mission & Vision

SAVE EARTH USE HANDMADE TREE FREE PAPER

Objective

To reduce the amount of paper waste generated by offices; To reduce the demand for paper made from virgin wood fibre;

To save our Planet Earth from Global Warming and Greenhouse Effect; To stop deforestation and to save our forest reserves; To cultivate habit of smart use of paper in people.


9/52


10/52

PlacePlace Commercial Area

Ease of Transport

Lack of Handmade paper industry in the proposedarea

Availability of Raw Material


11/52

Product

Handmade paper in sheets as per industry requirement.

Handmade paper in rolls for uses in magazines andnewspapers

We specialize in different types of color and texture ofsheets.

As per customer Specifications with variable GSM (Grams Per Square Meter) from 100 to250.

It can be a Bond Paper, Drawing Paper, Deckle EdgePaper, Certificate paper, Card Sheets and high gradeconverted stationery.


12/52

Price


13/52

Promotion


14/52

Promotion Strategy

Advertising through Print Media

OnlineAdvertisement

Hoarding & Billboards

Direct Contact withCustomers


15/52

SWOT Analysis

Strengths

Abundance of indigenous raw materials.

Availabilityof creative crafts work force.

Environment conscious

Weakness

Market concentration in few countries.

Lack of technologyfor product conversionleading to low production capacity.

Opportunity

Untapped potential of growing preferencesfor environmentallyfriendlyproducts

worldwide.

Increasing demand for hand made paper &products.

Up gradation of technologyfor paperconversion & improving productivity.

Improving & continuous market basedcreative product design & development.

Threat

Lack of appreciation ofhand madepaper & products in the domestic market.

Under-utilized, un-viable units dueto continuation of obsolete technology.

Growing competition globally.


16/52

CreatingAwareness


17/52

USP

QualityExcellent performance

Meets the same technical specifications as virginpapers(proposed).

Acid-free

Successfullyruns on the most demanding copiers, office

machines and printing presses

Aesthetic High to moderate brightness levels, with pleasing light

reflection

Ranges from clean, bright whites to a wide palette of colors

AvailabilityAvailable in virtuallyeverygrade of paper

Most printers, paper distributors, and retail outlets havesome recycled or handmade paper on their shelves

Choices are even greater ifyou order ahead of time

Financial

Buying in larger quantities and planning ahead furtherreduce price.

Eco- Friendly


18/52

Demand & Growth Indicators

During the period 2003-08 while newsprintregistered a growth of 13%, Writing & Printing,Containerboard, Carton board and others registered

growth of 5%, 11%, 9% and 1% respectively.

India is the fastest growing market for paper globally.

Paper consumption is poised for a big leap forward insync with the economic growth and is estimated totouch 13.95 million tons by2015-16.

As per industryestimates, paper production is likelyto growat a CAGRof 8.4% while paper consumption will grow at aCAGRof 9% till 2012-13.

Industryanalysts anticipate that the demand for newsprintwill touch the level of about 1,650,000 by2009 against lastyears demand of approximately150,000 tons.

Government emphasis on use of Paper bags instead ofplastic bags.

Source: IPMA


19/52

Customers

End users of paper are both industrial and individuals

The $10 billion Indian pharmaceutical industry

$8.5 billion Indian consumer products industry

$6.1 billion processed food industrysegment

Schools, colleges, offices are also major end users of

paper

Book publishing firms, print media and newspaperpublishers are another major industrial end users of paper

The expanding printing and packaging sectors are theintermediate end users of paper.


20/52

C

ompetitors Kagzi Handmade Paper Industries, Jaipur

Krishna Lamicoat Private Limited, Bangalore

Rohit Commercial Private Limited, Kolkata

Perfect Image,Anand

Xebec International, Lucknow

R. M.Associates,NewDelhi


21/52

Future PlanFuture Plan

ForwardIntegration

Paper Bags VisitingCards Photo Frame

Gift Box Letter Head Telephone Index


22/52


23/52

Employee Motivation

Organization Culture

Health and safety

Employee retention policy

Women Labour

Training and Development


24/52

CEO 4 lakh

CFO 3 lakh

COO 3 lakh

CMO 3 lakh

Scientist 3 lakh

Labour(50) 36 thousand

Name Salary(per annum)


25/52

CEO

CFO R&DCMO COO


26/52


27/52


28/52


29/52

RAW MATERIALS

Str w.

Disc r c tton cloth.

W ste p per.

W ste cr ft.

T ilor c tting.

Hosiery w ste.


30/52

PROCESS OF MAKING HANDMADE PAPER:

Sheetofhand made paper can e made intwo ways:

DippingMethod:

LiftingMethod:

SortinganddustingRagchopping

Beating Couching

Pressing Drying

CleaningandSizing Calendaring

Cutting


31/52

Jute, stow

,rag,cotton,waste

cutting

MakingmouldSheet making y

all press /Roller

Drying

cham er/su

ndrying

calendaringcuttingTesting/

inspecti

on

packaging marketing

Flow chartof production process:


32/52

IMPORTANT TECHNOLOGIES ANDSYSTEMSDEVELOPEDFORWASTEPAPERRECYCLING.

DispersionofContaminants:Removal ofContaminants:

PrintingInks are removed y three progressive stages of

thedeinkingprocess.

Chemical Treatment for contaminant removal.Mechanical Treatments.

A FEW IMPORTANT AND NOVEL TECHNIQUES/SYSTEMS

Reveres cleaning.

Ahlstrom - Fi re flow System.Frotapulper.

Dry-sorting.


33/52

MACHINERIES AND EQUIPMENTS

Jute/ straw cutter machines.

Ragchopper.

Ball press/Roller machine.

Rag/straw greendigester.Dryingcham er.

Calendaring/Rollingmachine.

Paper cuttingmachine.

Knifegrinder.Frameandother equipment.

Trolley.


34/52

QUALITY CONTROL PROCEDURE

Mostofhandmade sector ignorequality control procedure

leadingto poor realizationandhigh level of rejection.

Weare implementingthis procedure inthe process of

purchasingraw materials, inspection procedures and

control of pulp parameters.

Acceptance procedure for pulp canensurethat paperproduce will e suitable from down line processes up to

finishingstages.


35/52


36/52

MISCELLANEOUS CALCULATIONS

Item Name Sale Price per ton

QuantityDemanded

(annually)

(ton)

Total Sale Value( Rs.)

Handmade Paper 50000 360 180 lacs

TOTAL SALES 180 lacs

1) TOTAL SALES REVENUE:


37/52

Amount ( in lacs)2.Calculation of Raw Material 54.00(360 ton*15000 per ton)

3. Calculation of Labour(50*36000) 18.00

4. Calculation of manufacturing Expenses 21.6(Including Power & water)

5. Calculation of selling & distribution Expenses 9.0(5% of sales)

6. Calculation of Maintenance & Repair Expenses 1.8(1% of Sales)

7. Calculation of other Expenses 3.6(2% of sales)


38/52

DEPRECIATION ON FIXED ASSETS: (Rs In Lac)

PARTICULARS RATE

OF

DEP.

INV DEP

AFTER

Istyear

NET BLOCK DEP

AFTER

2nd year

NET

BLOCK

LAND --- 30 ----- 30 --- 30

FURNITURE & FIXTURE 15% 5 0.75 4.25 0.63 3.62

PLANT AND MACHINERY

25% 15 3.75 11.25 2.81 8.44

BUILDING 10% 15 1.5 13.5 1.35 12.15

ELECTRIC INSTALLATION 20% 3 0.60 2.40 0.48 1.92

OTHER FIX ASSET

(IT EWUIPMENTS)

15% 2 0.30 1.70 0.25 1.45

TOTAL 70 6.9 63.1 5.52 57.58

(Note: Depreciation is charged by WDV method as per Income Tax Act)


39/52

LOAN RE-PAYMENT SCHEDULE:-:---(RS InLac)

YEA

RAMOUNT

INTEREST

@14% pa

INSTALLMENT

PAID

1 OPENING 28 3.92 4

CLOSING 24

2OPENING

24 3.36 4

CLOSING 20

3 OPENING 20 2.8 4

CLOSING 16


40/52

Financial cost: (Rs In Lacs)

S. No.

Particulars 1stYear 2 ndYear

01 Interest on Long Term

Loan 3.92 3.3602 Interest on Working

Capital

1.46

1.62

TOTAL 5.38 4.98


41/52

WORKING CAPITAL REQUIREMENT STATEMENT:-(RS In Lacs)

S. No. Particulars % of

margi

n

Holding Period Total

Amt.

Invest.

Max per

finance

by Bank

(75%)

Own

Fund

(25%)

A Current Asset

1.STOCK-Raw Material

-Work In Process

-Finished Goods

1.Debtors

25

25

25

25

1/2 month ofpurchase

month of sales

month of sales

1 month of sales

2.253.75

7.5

15

1.69

2.81

5.62

11.25

0.56

0.94

1.88

3.75

TOTAL 28.5 21.38 7.12

B Current Liabilities

Creditors

2 month of purchase 9 6.75 2.25

NET WORKING CAPITAL (A-B) 19.5 14.63 4.87)


42/52

COST OF PROJECT:- (Rs InLacs)

INVEST IN FIXED ASSETS

-LAND-------------------------- 30-PLANT AND MACHINERY-------- 15

-BUILDING----------------------- 15

-FURNITURE & FIXTURE-------------- 5

-ELECTRIC INSTALLATION----------- 3

-OTHER FIXED ASSETS------------ 2 70

INVEST IN WORKING CAPITAL 28.5

INVEST IN PRELIMINARY EXPENCES 3

TOTAL 101.5


43/52

MEANS OF FINANCE

LOAN FROM BANK:(RS In Lac)

LONG TERM LOAN 28WORKING CAPITAL LOAN 14.625

SUPPORT FROM CREDITOR9

OWN INVESTMENT 49.875

TOTAL 101.5


44/52

PROJECTED PROFITABILITY STATEMENT:---(Rs In Lac)

PARTICULARS 1st Year 2nd Year

INCOME

SALES 180 200

TOTAL 180 200

EXPENSES

RAW MATERIAL 54 60

LABOUR 18 18

SALARY 21.5 21.5

MANUFACTURING EXPENSES 21.6 24OTHER EXPENSES 3.6 4

MAINTENANCE & REPAIR 1.8 2

RESEARCH AND DEVELOPMENT 9 10

SALES AND DIS. EXP. 9 10

PRELIMNARY EXPENSES W/F 1 1

FINANCIAL COST 5.38 4.98

DEP. 6.9 5.52

TOTAL 151.78 161

PROFIT BEFORE TAX 28.22 39

Less- corporate tax 33% 9.31 12.87

Profit after tax 18.91 26.13


45/52

PROJECTED FUND FLOW STATEMENT

PARTICULARS 1st Year 2nd Year

SOURCE OF FUND:

OPENING BALANCE -- 22.80

LOAN FROM BANK:

LONG TERM LOAN 28 --------

WORKING CAPITAL LOAN 14.62 ---------

SUPPORT FROM CREDITORS 9 -------

OWN INVESTMENT 49.87-------

FUNDS FROM OPERATION

PROFIT AFTER TAX 18.91 26.13

DEPRECIATION 6.9 5.52

PRELIMINARY EXPENCES 1 1

TOTAL 128.30 55.45


46/52

APPLICATION OF FUND

INVESTMENT IN FIXED ASSETS70

-------

INVESTMENT IN WORKING CAPITAL 28.5 --------

INVESTMENT IN PRELIMINARY

EXPENCES3 -------

LOAN REPAYMENT 4 4

TOTAL 105.5 4

CASH 22.80 51.45


47/52

PARTCULARS 1st Year 2nd Year

1: LIABILITY

OWN FUND 49.87 49.87

GENERAL RESERVE 18.90 45.03

LONG TERM LOAN 24 20

SUNDRY CREDITOR 9 10

WORKING CAPITAL LOAN 14.62 16.25

TOTAL 116.40 141.69

PROJECTED BALANCE SHEET :---(Rs In Lac)


48/52

2:APPLICATION OF FUND (RS In Lac) (RS In Lac)

FIXED ASSETS (NET BLOCK) 63.1 57.58

CURRENT ASSETS:

STOCK & DEBTOR 28.5 31.66

CASH 22.80 51.45

3:MISCELLANEOUS EXPENDITURE:

PRELIMINARY EXPENCES 2 1

TOTAL 116.40 141.69


49/52

BREAK EVEN POINT

FIXED COST 39.5 LACS VARIABLE COST 112.28 LACS TOTAL COST 151.78 LACS

SELLING PRICE PER TON 50,000 RS VARIABLE COST PER TON 31,200 RS

B.E.P ( IN UNITS) = FIXED COSTSELLING PRICE PER TON V.COST PER TON

= 210 TON


50/52


51/52

References:

Khadi and Village Industries Commision

Indian Paper Manufacturing Association

www.wasteonline.org.in

www.handmadepaper.org.in


52/52

Phoneix Papers

Documents

Transcript of Phoneix Papers