emtrepreneur mnmngt in manufacturing

8/11/2019 Emtrepreneur Mnmngt in Manufacturing

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EXECUTIVE SUMMARY

Plastic is a basic need of our day to day life. During recent years the plastic industry has

grown with a substantial growth rate. This growth is driven by three sectors viz

packaging, infrastructure and agriculture. There are the various verities of plastics out ofwhich PVC (Polyvinyl chloride) and PET (Polyethylene terephthylene) plastics have their

considerable contribution. PET plastics are generally used in the manufacturing of

beverage bottles for the packaging and PVC plastic is used in the production of

household plastic materials. The growing utilization of plastics in industrial and

consumer applications and surrounding solid waste recycling, has led to an increased

demand for recycled plastic resins and products.

We at Quality Plasticsprovide a wide range of plastic solutions for household and raw

material for packaging of various companies. As a part of our ongoing efforts to exploit

this opportunity we will recycle the plastics and then produce kitchen ware items andother related plastic material. We will also sell the recycled plastics to the companies in

the plastic business. We will have a recycling plant along with the production unit. The

raw material will be procured from the waste collectors. The raw material will be post

consumed beverage bottles and other soft plastic materials.

Our main focus is our industrial customer whom we will sell PET bottles and PET flakes.

It will contribute more than 60% of our sales. We will also focus on the household plastic

business which is the part of our portfolio. The initial set up cost will be Rs 34, 40,000.

Quality Plastics will be a solution proprietorship business run by the promoter Jugal Shah

who is a budding Entrepreneur and studying MCOM in his final year.

Since plastic material does not carry any brand name so it will give us an addition benefit

in long term to establish our brand name. To exploit the market we will use penetration

pricing as our marketing strategy and utilize our stringent distribution network and strong

industrial relationship. A long term loan will be taken from HDFC Bank who will Micro-

finance our business venture.

As a future plan in coming years we will increase the variety of plastics like LDPE (Low

density polyethylene) and HDPE (High density polyethylene). By doing this we will be

able to produce plastic carry bags and raw material for production for plastic chairs andtables and other fiber based products.


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MARKETS AND PRODUCTS

The plastic products usually do not carry a brand name so intruding in the business likeplastic will not be too hard with low price strategy. The population of Mumbai and the

cities around it like Pune,Surat,Ahmedabad and Gujarat is considerable and this area

basically comprises of low to middle income group families so they focus on plastic

products rather than fiber since it is a cheaper. Hence it is huge market to exploit.

From Surat city 500 tons of solid waste is produced from that 15tons of plastic bags and

around 7 tons of plastic bottles is generated per day. So the supply of raw material will be

continuous.

Apart from this we will sell raw material for packaging to the various small companies in

this area. Around 30 small and medium scale companies are working in this region. So a

large amount of industrial customer is also available.

There are two folds of products that we are providing one is industrial and other is

household.

OBJECTIVES

Develop a business that survives on its own cash.

Create a company which exceeds customer satisfaction level. Expand the service to Western India in first five years and then target rest of the

country.

Extending the services to electronic component manufacturing companies for

production of capacitors printed circuit boards etc.

KEY TO SUCCESS

The main keys to the success of the Company are:

Secure Supply- Contract for supply of post-consumer bottles and post-industrialmanufacturing waste for PET raw material feed stock.

Satisfy our customer so that we can retain them.

Maintain low overhead and operating costs.

Provide better prices than all our competitors.


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PRODUCT AND SERVICES

We will provide a wide range of plastic products for households and raw material for

packaging.

The recycled plastic is processed to Polyethylene Terephthalate (PET). PET is a

thermoplastic polymer viscous of polyester family. The biggest property of this

compound is it is transparent. This is the reason why it is used for packaging. Apart from

thisPET have good strength, ductility, stiffness and hardness. After the recycling process

completed an extruded plastic is generated. Plastics extrusion is a high volume

manufacturing process in which raw plastic material is melted and formed into a

continuous profile.

The products we are producing are :

Cleaned and recycled plastic flakes of PET and bottles, recovered from post-consumer beverage bottles. (this PET will work as raw material for packaging tovarious firms, not for the end user)

Household finished plastic goods. We are manufacturing plastic tubes of various

diameter, plastic kitchen ware. ( for the end user)

PET flake will be sold to thermo formers (those who mold plastic sheets into usableproducts) primarily to be used to produce high-visibility packaging. And also to the

beverage companies for packaging.

Recycled plastic is widely used in mainstream construction products such as damp proofmembrane, drainage pipes, ducting and flooring. Bins, street signs and planters are

frequently made from plastic. They are cost competitive and resistant to damage. Local

authorities and schools are able to demonstrate recycling in action by specifying recycledproducts

High strength PET is used in the clothing, furnishings, tyre cord and technical textiles.

Apart from PET the household plastic will be directly sold to the end customers. In day to

day life plastic items like water bottles, shop case scrubber etc is frequently used. Sothere is a big demand of these in local market.


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MARKET COMPARISON

While quality and delivery are important factors to our potential clients, price is mostoften the determining factor in a buying decision. Good-quality packaging products

manufactured from recycled (less expensive) resins, as close as practical to the end

customer's operations, will be most competitive and achieve a significant market

share. These factors have helped to determine the business parameters of Quality Plastics.

POSSIBLE OBSTACLES

The possible obstacles to the product are :

Unavail able or scarce raw mater ial stock for production

Quality Plastics is confident that it has secured good availability of low cost post-

consumer PET bottles (feed stock) derived from post-consumer beverage bottles. It maybe possible that we would not get desired raw material.

Company may not meet envir onmental standards

This environmentally-favorable venture provides for the development of technicallyfeasible and economically viable solutions to PET plastic beverage bottle recycling, as

well as environmentally aware in-house re-use practices which filter and return nearly all

of the process water to the production lines


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INDUSTRY AND MARKETPLACE ANALYSIS

INDUSTRY ANALYSIS

Plastic recycling is an industry in itself in India. According to the Crisil research 7360companies are working in this industry with a turnover of Rs 9200 Crore provides

employment to 3.5 million people. In India per capita plastic consumption in lowest inthe world. The per capita consumption is just one fifth of world average which is 5kg. the

domestic demand of plastic has grown by 9% and reached to 4.5MMT in year 2010.The

GDP has grown during this period at 6.3% and plastic industry 1.3 times of GDP.According to the Crisil report the demand of plastic by 2015 will be around 12MMT. The

plastic consumption in India is booming. Demand for commodity plastics is growing at

the rate of 15% per year.India holds immense potential for the use of plastic in the

infrastructure and agriculture. In case of packaging industry we are using more plasticthan the developed countries. The growth is driven in three major sectors infrastructure

which is 13%% of the total, packaging is 15% of the total and 10% for plastic consumerdurables. It is projected that the plastic waste generation will reach the will reach the

level of 1.6 million tons annually.

India produces 5600 tons of plastic waste per day.

Region wise and polymer wise turnover of recycling industry in Rs.Crore

Region PVC PET

West 156 383

East 75 86

North 338 158South 111 139

Total 680 766

Each region is specialized in one type of plastic viz south: PET; north: PVC;

The current plastic recycling rate is estimated as 60% by Plastic India Foundation. Oneestimate is that about 20,000 microenterprises are engaged in reprocessing and recovery

of plastic waste in addition to 180,000 of various sorting and washing units, 60% of

which are unregistered. Delhi alone has estimated 53,400 units and Delhi and Bombay

together process over 50% of India's waste plastics.


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OTHER MANUFACTURERS

Many companies are not plastics specialists but employ molding operations in the

manufacture of some other product. For example shoe and boot makers use plasticsextensively and may carry out the various plastics molding operations in the same

production sequence as the work in leather, canvas, rubber etc. Many manufacturers use

plastic packaging machinery at the end of a production operation.

FABRICATORS

These firms cut and join sheet, rod or extrusion to manufacture a variety of products.They have no opportunity to use reclaim. Machinery and Tool Makers One other sector

of the plastics industry justifies mention although not customers for reclaim. The makers

and suppliers of plastics manufacturing machinery, tools, moulds and dies are well

informed about who does what, who makes what and who uses what within the localplastics industry. They may advise who is likely to buy material.

MARKETPLACE ANALYSIS

Various overseas players wish to explore the Indian market and invest in

opportunities thrown open by the country, projected to be world number 3 in plastics

consumption by 2018.As shown above the north region of India is specialized inrecycling of PVC. So there is a great scope of PET recycling. Apart from this the

other

A huge market with full of opportunity.

Absence of standard product and service

Well connected with other rural areas

Having good transportation facility


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CUSTOMER ANALYSIS

Since we are a new player in the market, we need to make some stringent strategies topenetrate market and grab customers. The customers of the plastic industry are scattered

due to lack well known brand names. So our first priority will be to accumulate the

defused customers.

The direct customers are the customers whom we are selling our product regularly. So for

us households whom we are selling plastic goods and companies who are getting rawmaterials for packaging are direct customers (PET bottles). So only in Mumbai around

40,000 families are our direct prospective customers and in terms of business to business

market around 30 small and medium scale companies are our direct customers.

Apart from them there are few small companies which are giving compounding services.

They use to collect various types of plastics flakes along with the virgin plastic and

suggest customer (companies) in choosing appropriate plastic. Asha enterprise is one

compounder whom we will sell our plastics.

COMPETITOR ANALYSIS

In plastic manufacturing market there is no specific brand name is existing so the market

is flooded by small companies which are in this business. So they are our biggest directcompetitors.

As we are also not alone as a supplier of PET to the companies as raw materials there aremany companies in this region which are supplying PET. Allied Plastics is one of them

who is currently selling all types of plastics items. So in case of business to business

market they are our direct competitors. The direct threat we will also have is with thecompanies operating in Surat. But as the distance between Surat and Mumbai is around

300 km, so it will not affect much.


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MARKETING STRATEGY

The Company has chosen to focus on the production of plastic packaging materials fromrecycled post-consumer beverage bottles. We have identified a significant available

market in the south-eastern part of Mumbai. All of our initial marketing strategy will be

to secure contracts in that segment, and after reaching full planned capacity, look to grow

in concert with that segment and related markets. We see little need at present for furthermarket research and development, and will focus on continually updating our production

technology in an effort to remain in the forefront of our chosen marketplace.

PRODUCT/ SERVICE STRATEGY

The packaging companies require high quality and highly transparent PET bottles. The

companies which are producing mineral water will reject PET bottles with even a smallimpurity/ opaqueness. So we the Quality Plastics provide high end PET flakes for the

perfect packaging.

Quality Plastics will apply recycling and extrusion technology managed by decades of

industry specific expertise to create a competitive advantage for its clients. These

processes will produce clean, cost-efficient, recycled raw material for manufacturers ofthermoform, laminate and other high value-added products, and high strength packagingstrapping for shippers of large products and pallets, thereby reducing costs and creating a

clear pricing edge among their competitors.

Plastic bags and plastic sheets are now in high demand. And this demand is driven by

continuously increasing promotional activities.

PRICING STRATEGY

As plastic products do not carry any brand name so only pricing and distribution

strategies will works to achieve competitive edge. The pricing strategy we will use ispenetration pricing. The price of all household plastic goods we will sell will be lower

than the market price. Also for the PET flakes and bottles the price will be lower than the

competitors. A lower price enables us to get contracts of PET bottles and sheets fromvarious companies.

In case of kitchenware and other household products we will provide combo offers and

discounts which a common customer expects.


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DISTRIBUTION STRATEGY

As I described before that firstly we will target Mumbai city and villages close to it. We

will have a distribution center in the Mumbai city which continuously maintains the

supply of goods. So the household plastics will be sold through small local grocery shops

from which the customers can get them easily. Apart from this we will hire streethawkers who will roam around the city and sell the goods door to door.

PET bottles will be stored in warehouse which is close to the facility itself. The sales

people will directly contact to the companies which require these bottles for packagingand look for the contracts. In city as stated above that we will have a distribution center,

from that center we will distribute to whole sellers.

ADVERTISING & PROMOTION STRATEGY

As I described we are in both B2C(Business to Consumer) and B2B(Business to

Business) so for this we will use two different promotional strategies. For B2C businesswe will use flyers which will have full detail of our product range, price, combo offers

and discounts. These flyers will circulate through the newspapers across whole city. ForB2B business we will promote through online social media and we will also develop our

website through which enable us to widely spread our contact among various companies.

the site will have full details of product which are available for companies as well as enduser.


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SALES STRATEGY

The strategy of sales effort will be to convert potential and first time customers into longterm customers. Our sales strategy is totally based upon the distribution channel and the

pricing strategies. We will have a distribution centre in the city that will take care of sales

of household and also supply products to the wholesalers. We will also give the industrial

customers a facility to order the products through our website which will help them inreducing the delivery time.

To market the products, the Company will use a number of sales agents/brokers. They

have a customer base of their own, having developed successful relationships with their

client over the years. Their customer base is currently demanding product so they can

expand upon their current base. Of course, they will expand that to new customers whenproduct is available.

If the Company grows faster than its prime customer base, additional capacity may be

developed. We will identify additional prospective customers who can be attracted forour products.

MARKETING & SALES FORECAST

The first month prior to the opening will be used to get the new office in order, set upappointment and begin marketing activities. In the first month we will focus on the

generating public visibility. The sales forecast is based on the assumption that we will

sell all of the highest volume PET bottles that we can produce. This flake will be sold to

other manufacturing companies. Recycling industry is growing with 15-20% each year.

So we can assume that we will grow with at least 20%. There is a continuing strongdemand for flake and extruded products made from recycled PET.

Sales forecast

year 1 year 2 year 3 year 4

Annual sales 1620000 2106000 2737800 3559140

Monthly sales 135000 175500 228150 296595

PET Sales 94500 122850 159705 207617

Household items 40500 52650 68445 88978.5


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DEVELOPMENT

The development of Quality plastics required to accomplish a series of action and

formalities. Since we are new in the market we kept our production is low initially, as

demand will increase the production will be enhanced respectively. Now we are recyclingand producing only two types of plastics i.e. PVC and PET, as we grow we will produce

a wide the range of plastics and its finished product. . The development process involves

following steps:

Legal formalities

Office/business setup

Future offerings and expansion plan

DEVELOPMENT STRATEGY

In future we are looking for the production of a variety of plastic. These plastics will be

LDPE ( Low density polyethylene)

HDPE ( High density polyethylene)

LDPE plastic is used in the production carry bags and other plastic sheets as well as cling

wrap, car covers, squeeze bottles, liners for tanks and ponds, moisture barriers in

construction. And HDPE plastics are used in production of freezer bags, water pipes, wire

and cable insulation, extrusion coating.Our development strategy will base on timely

completion of the establishment of the business centre with low execution cost. Ourstrategy will focus not only the current uninterrupted production of PVC and PET and

acquisition of customer as fast as we can, but we will also look for the future expansionplan and execution strategy.

The development strategy will address following issue:

How will we expand our services?

Which are the new areas we will include to provide our services?

What will be the format of the business

Our development strategy will address all those above mentioned point. As we will grow

and our earning will increase, we will produce more of PVC and PET as well as expand

in new area. We have a development strategy to expand our facility size in order to meet

the production size.


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MANAGEMENT

The company will be managed by the promoter and six supporting staff.

Jugal Shah, a Management student, is the owner and promoter of Quality Plastics. He has

basic knowledge and understanding in financial areas like Risk and Return management,

Investment portfolio and Capital Budgeting, which undoubtedly will be of intense help inthe business. Apart from this he also has a good knowledge of chemicals and their

properties.

Marketing skills like convincing power, negotiating ability, creating promotional

strategies and sales skills will all be extremely helpful in taking the business a long way

and will prove intensely valuable to take Quasar Plastics to flaring heights.

Thus with such potential skills, and other qualities like efficient interpersonal skills,leadership skills and decision making quality, aptly makes him the best promoter and

eligible founder and owner of Quality Plastics

Along with promoter five more employees will work for the accomplishment ofcompaniesobjective. One supervisor will work on the facility along with two supporting

staff. Supervisor who will work upon the facility does not need to be a chemical engineer

a simple technician has experience on working upon the facility can be able to do this.

JOB DESCRIPTION

Process No of employees Proficiency

Sorting 2 unskilled

Belt Conveyer 1 semiskilled

PET Separator 1 semiskilled

Packaging 4 unskilled


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OPERATIONS

The operations is defined as the process used to deliver your products and service to thecustomer market place and also include manufacturing transportation logistics travel and

after sales services.

The facility is located at outside the city. Facility is divided in two parts

Recycling and Production unit

Warehouse

The facility is located in an area of 3000 sqft..Apart from these two units there will be an

office which will look for the perpetual supply of required raw material and also takecare about the outbound logistics. The production capacity is 80kg/hr.

The operations will be based upon JIT i.e. just in time. We will have contracted with thesuppliers who can supply the raw material as quickly as we want. The raw material

contains post consumer beverage bottles and other plastic materials. The bottles and other

plastic material that can be recycled have a specific sign from which it can be identifiedthat it can be recycled or not.

The plastic is then transferred to respective unit to be recycled because PET and PVCcannot be recycled simultaneously due to their different properties. There will be two

units running parallel to each other. On unit will recycle and produce PVC plastic and

other will perform the same for the PET plastic.

The recycled PVC is then moved for the plastic injection molding unit in the various

shapes. Since there are a variety of product is being produced so the preference will begiven to that product whose demand is high. All the products will not be produced each

and every day. There will be different products which will be produced on different day

according to the demand in market.

After the recycling process is completed one part of PET flake is moved to the

warehouse according to the demand of raw material which different companies need andother part will move for the molding in bottles.

The recycled PET flake is then heated and made the viscous solution of it. The PET resinis then feeded to the molder and molder will give it various shape bottles. And then it left

for drying. Those products which further need for processing like buckets, the handle will

be inserted after the bucket is dried.


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STAGES OF RECYCLING AND PRODUCTION

The process of recycling of waste plastics into products of varying usefulness involves

the following essential steps:

Sizing / Chipping Cleaning

Segregation.

Agglomerating / Colouring

Extrusion / Palletisation

Fabrication into end Product.

CHIPPING:

The plastics waste is then required to be properly sized so that those may be fed intothe extruders for processing and palletizing. The sizing operation depends on the type

and shape of the waste plastics.

During this process, attention is required to separate any powdery material from the

sized / chipped plastics.

SEGREGATION:

Certain polymeric materials are compatible with each other at all proportions. For

example LDPE and Lldpe are generally compatible to each other at all proportions.

The advanced technology of separating / segregating different types of waste plastics

involves Floatation Process. In this process the property of the varying densities of

different plastics is made use of for segregating different types of plastics.

However in the Indian Context, this separation or segregation process, in many cases,are done by manual process utilizing the availability of cheap and expert labor force.

In case the waste is contaminated with embedded metals, proper method of separating

the metals / other contaminants is required.

CLEANING:

The scale of cleaning depends on the type of waste. Whenever a cleaning operation isinvolved, it is to be ensured that the water or any other cleaning material used, should

be discharged after ascertaining that the discharge does not contain any objectionablesubstance. A proper Treatment Device may have to be deployed like a water

treatment plant / effluent treatment plant. For drying, a suitably designed drier is used.


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Many industries situated outside the metropolises, use open space for natural drying

of the cleaned waste.

AGGLOMERATING / COLOURING:

In the next operation the sized plastics waste is mixed with colour master batch inhigh-speed mixers / agglomerators and the output is ready for extrusion into pellets.

EXTRUSION / PALLETISATION:

This is the most important part of the process wherein the sized / chipped plastics are

plasticized and granulated to make the plastics material ready for fabrication next.

The type and size of the Extruder depend on the type and volume of the plastics

waste.

FABRICATION INTO END PRODUCT:

Finally the reprocessed plastics granules are used as raw material for producing end

products using similar fabrication machines like Injection Molding / Extrusion etc.,

depending upon specific requirement.

SCOPE OF OPERATIONS

Now presently our production capacity is 200kg/day from which in initial stages we areutilizing around 50% of it. As the business expands we will reach to optimum capacity

utilization. We are expecting that we will start producing more advance plastics in the

fourth year of our operations and accordingly the sales will increase and the facility willhave to be expanded.


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SUPPLY CHAIN

In the city there are various small post consumer plastic bottle collectors. To make acontinuous supply of raw material we will have four suppliers with us. There will be one

permanent supplier which will continuously supply the raw material. In case of excess

demand other suppliers will be taken into consideration. The transportation cost will be

covered by supplier only. The finished product will be stored in the warehouse andaccording to the demand it will be send to city distribution centre. The distribution center

will directly sell the finished household plastics as well as to the small shops.

Our average daily demand of raw material is 300kg and the lead time we will keep lead

time of 6hrs. We keep a safety stock of 50 kg. So the reorder point is given by

Reorder point= average daily uses x lead time + safety stock

Reorder point = 300 X .25day + 50

= 125 kg.

So at each and every day we will have minimum of 125kg (safety stock+ reorder point)of raw material in our inventory.


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This means that when the raw material level reaches to 125kg we will place the next

order. The difference time in which we will place the order and receive the order is the

lead time which is 6hrs.

PROCESS FLOW CHART


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GANTT CHART

As it is an assembly line the output of one stage is feeded to the input of next stage. Thewhole process will run in series format. That is the reason why no parallel process is

mentioned in the gantt chart.


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FACILITY LAYOUT


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FINANCIALS

MICRO FINANCE

Microfinanceis a form offinancial services for entrepreneurs and small businesses

lacking access tobanking and related services. The two main mechanisms for the

delivery of financial services to such clients are: (1) relationship-based banking forindividual entrepreneurs and small businesses; and (2) group-based models, where

several entrepreneurs come together to apply for loans and other services as a group.

For some, microfinance is amovement whose object is "a world in which as many poorand near-poor households as possible have permanent access to an appropriate range of

high quality financial services, including not just credit but alsosavings,insurance,and

fund transfers." Many of those who promote microfinance generally believe that such

access will help poor people out ofpoverty.For others, microfinance is a way to promoteeconomic development, employment and growth through the support of micro-

entrepreneurs and small businesses.

Microfinance is a broad category of services, which includesmicrocredit.Microcredit is

provision of credit services to poor clients.Microcredit is one of the aspects ofmicrofinance and the two are often confused. Critics may attack microcredit while

referring to it indiscriminately as either 'microcredit' or 'microfinance'. Due to the broad

range of microfinance services, it is difficult to assess impact, and very few studies have

tried to assess its full impact. Proponents often claim that microfinance lifts people out ofpoverty, but the evidence is mixed. What it does do, however, is to enhancefinancial

inclusion.

MICROFINANCE IN INDIA

Loans to poor people by banks have many limitations including lack of security and high

operating cost and so Microfinance was developed as an alternative to provide loans topoor people with the goal of creating financial inclusion and equality.

Muhammad Yunusa Nobel Prize winner, introduced the concept of Microfinance inBangladesh in the form of the "Grameen Bank".NABARD took this idea and started

concept of Micro Finance in India.In this concept, there exists a link betweenSHGs(Self-

help group), NGOs and Banks. The SHGs are formed and nurtured by NGOs and onlyafter accomplishing a certain level of maturity in terms of their internal thrift and creditoperations.They are entitled to seek credit from the banks. There is an involvement of the

concerned NGO before and even after the SHG-Bank linkage.The SHG-Bank linkage

programme, which was undertaken since 1992 in India, had financed about 22.4 lakh
http://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Social_movementhttp://en.wikipedia.org/wiki/Savingshttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Remittanceshttp://en.wikipedia.org/wiki/Povertyhttp://en.wikipedia.org/wiki/Microcredithttp://en.wikipedia.org/wiki/Microcredithttp://en.wikipedia.org/wiki/Financial_inclusionhttp://en.wikipedia.org/wiki/Financial_inclusionhttp://en.wikipedia.org/wiki/Muhammad_Yunushttp://en.wikipedia.org/wiki/Muhammad_Yunushttp://en.wikipedia.org/wiki/NABARDhttp://en.wikipedia.org/wiki/Self-help_group_%28finance%29http://en.wikipedia.org/wiki/Self-help_group_%28finance%29http://en.wikipedia.org/wiki/NABARDhttp://en.wikipedia.org/wiki/Muhammad_Yunushttp://en.wikipedia.org/wiki/Financial_inclusionhttp://en.wikipedia.org/wiki/Financial_inclusionhttp://en.wikipedia.org/wiki/Microcredithttp://en.wikipedia.org/wiki/Microcredithttp://en.wikipedia.org/wiki/Povertyhttp://en.wikipedia.org/wiki/Remittanceshttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Savingshttp://en.wikipedia.org/wiki/Social_movementhttp://en.wikipedia.org/wiki/Bankinghttp://en.wikipedia.org/wiki/Financial_services


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SHGs by 2006. It involved commercial banks, Regional Rural Banks (RRBs) and

cooperative banks in its operations.

Micro Finance is defined as, financial servicessuch as Saving A/c, Insurance Fund&

creditprovided to poor & low income clients so as to help them to rise their income&there by improvetheir standard of living.

From this definition it is clear that main features of Micro Financing:

1) Loan are given without security

2) Loans to those people who live BPL (Below Poverty Line)

3) Even members of SHG enjoy Micro Finance

4) Maximum limit of loan under micro finance Rs 25,000/-

5) The terms and conditions given to poor people are decided by NGOs

6) Micro Finance is different from Micro Credit- under Micro Credit, small amount of

loans given to the borrower but under Micro Finance besides loans many other financial

services are provided such as Savings A/c, Insurance etc. Therefore Micro Finance haswider concept as compared to Micro Credit.

IMPACT

Proponents state that it reduces poverty through higher employment and higher incomes.This is expected to lead to improved nutrition and improved education of the

borrowers'children.

The available evidence indicates that in many cases microcredit has facilitated the

creation and the growth of businesses. It has often generated self-employment, but it hasnot necessarily increased incomes after interest payments. In some cases it has driven

borrowers into debt traps. There is no evidence that microcredit has empowered women.

In short, microcredit has achieved much less than what its proponents said it would

achieve, but its negative impacts have not been as drastic as some critics have argued.Microcredit is just one factor influencing the success of small businesses, whose success

is influenced to a much larger extent by how much an economy or a particular marketgrows.


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MICROFINANCE FOR QUALITY PLASTICS

For our business, Micro Finance will be obtained from HDFC Bank. Repayment alongwith Interest will be done on a monthly basis till the Loan is repaid back. Ahead in the

project , a detailed report on Repayment of loan is made.

The startup cost of the business is as follows:

START-UP

Requirements Amount

Start-up Expenses

Legal 6,000Stationery 500

Business Cards 500

Initial Mailing 100

Process Funding 400

Office Equipment 2,500

Total Start-up Expenses 10,000

Start-up Assets

Cash Required 1,00,000

Other Current Assets 0

Long-term Assets 33,30,000

Total Assets 34,30,000

Total Requirements 34,40,000


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INCOME STATEMENT

The projected income is as shown below it shows that first year we will end

up with loss but from second year we will start making profits.

Particulars YEAR 1 YEAR 2 YEAR 3 Year 4

Net sales 1620000 2106000 2737800 3285360

Cost of good sales 891000 1158300 1505790 1806948

Gross margin 729000 947700 1232010 1478412

Operating expenses:

Admin exp. 3000 3150 3308 3473

Advertisement 6000 7200 8640 10368

Salaries 192000 211200 232320 255552Transportation 96000 105600 116160 127776

Maintenance 15000 15750 16538 17364

Electricity 4800 5040 5292 5557

Telephone 10000 11000 12100 13310

Legal exp. 10000 1000 1000 1000

Insurance 20000 20000 20000 20000

Rent 24000 26400 29040 31944

Other exp 6000 6600 7260 7986

386800 412940 451657 494330

EBITDA 342200 534760 780353 984082

Less depreciation 303000 272700 245430 220887

EBIT 39200 262060 534923 763195

Less interest paid 175550 165061 153243 139926

EBT -136350 96999 381680 623269

Tax @ 30% 0 29100 114504 186981PAT -136350 67899 267176 436288


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BREAK EVEN POINT

VC Amount in Rs FC Amount in Rs

Admin 3000

other exp 6000 Interest 175550

transportation 96000 advertisement 6000

telephone 10000 Insurance 20000

wages 119250 Salary 192000

carriage inward 238500 Rent 24000

power 119250 maintenance 15000raw material 414000 depreciation 303000

Legal 10000

total 1003000 Total 748550

contribution 617000

pv ratio 0.3808642

BEP units 1965398.703 135000

BEP SALES 15 in months

1.21 In years

AstheBEP is 15months it means that at 15 thmonth we will be in a trade off

total expenses and revenue.


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APPENDIX

ANNUITY TABLE:

total loan amt.= pmt[1-1/(1-i)^n]/i

n is number of years

i is interest rate

loan amount 1500000 ######

interest rate annually 0.12 ######

pmt = 21521

21520.64

month EMI Interest principle balance O/S Annual interest

1 21521 15000 6521 14934792 21521 14935 6586 1486894

3 21521 14869 6652 1480242

4 21521 14802 6718 1473524

5 21521 14735 6785 1466738

6 21521 14667 6853 1459885

7 21521 14599 6922 1452963

8 21521 14530 6991 1445972

9 21521 14460 7061 1438911

10 21521 14389 7132 1431780

11 21521 14318 7203 1424577

12 21521 14246 7275 1417302 17555013 21521 14173 7348 1409954

14 21521 14100 7421 1402533

15 21521 14025 7495 1395038

16 21521 13950 7570 1387468

17 21521 13875 7646 1379822

18 21521 13798 7722 1372099

19 21521 13721 7800 1364300

20 21521 13643 7878 1356422

21 21521 13564 7956 1348466

22 21521 13485 8036 1340430

23 21521 13404 8116 133231324 21521 13323 8198 1324116 165061

25 21521 13241 8279 1315836

26 21521 13158 8362 1307474

27 21521 13075 8446 1299028


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29

28 21521 12990 8530 1290498

29 21521 12905 8616 1281882

30 21521 12819 8702 1273180

31 21521 12732 8789 1264391

32 21521 12644 8877 1255515

33 21521 12555 8965 124654934 21521 12465 9055 1237494

35 21521 12375 9146 1228348

36 21521 12283 9237 1219111 153243

37 21521 12191 9330 1209782

38 21521 12098 9423 1200359

39 21521 12004 9517 1190842

40 21521 11908 9612 1181229

41 21521 11812 9708 1171521

42 21521 11715 9805 1161716

43 21521 11617 9903 1151812

44 21521 11518 10003 114181045 21521 11418 10103 1131707

46 21521 11317 10204 1121504

47 21521 11215 10306 1111198

48 21521 11112 10409 1100789 139926

49 21521 11008 10513 1090277

50 21521 10903 10618 1079659

51 21521 10797 10724 1068935

52 21521 10689 10831 1058103

53 21521 10581 10940 1047164

54 21521 10472 11049 1036115

55 21521 10361 11159 102495556 21521 10250 11271 1013684

57 21521 10137 11384 1002300

58 21521 10023 11498 990803

59 21521 9908 11613 979190

60 21521 9792 11729 967461 124920

61 21521 9675 11846 955615

62 21521 9556 11964 943651

63 21521 9437 12084 931567

64 21521 9316 12205 919362

65 21521 9194 12327 907035

66 21521 9070 12450 89458467 21521 8946 12575 882010

68 21521 8820 12701 869309

69 21521 8693 12828 856481

70 21521 8565 12956 843526


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30

71 21521 8435 13085 830440

72 21521 8304 13216 817224 108010

73 21521 8172 13348 803876

74 21521 8039 13482 790394

75 21521 7904 13617 776777

76 21521 7768 13753 76302477 21521 7630 13890 749134

78 21521 7491 14029 735104

79 21521 7351 14170 720935

80 21521 7209 14311 706624

81 21521 7066 14454 692169

82 21521 6922 14599 677570

83 21521 6776 14745 662825

84 21521 6628 14892 647933 88957

85 21521 6479 15041 632892

86 21521 6329 15192 617700

87 21521 6177 15344 60235688 21521 6024 15497 586859

89 21521 5869 15652 571207

90 21521 5712 15809 555398

91 21521 5554 15967 539432

92 21521 5394 16126 523305

93 21521 5233 16288 507018

94 21521 5070 16450 490567

95 21521 4906 16615 473952

96 21521 4740 16781 457171 67486

97 21521 4572 16949 440222

98 21521 4402 17118 42310499 21521 4231 17290 405814

100 21521 4058 17462 388352

101 21521 3884 17637 370715

102 21521 3707 17813 352901

103 21521 3529 17992 334910

104 21521 3349 18172 316738

105 21521 3167 18353 298385

106 21521 2984 18537 279848

107 21521 2798 18722 261126

108 21521 2611 18909 242216 43293

109 21521 2422 19098 223118110 21521 2231 19289 203829

111 21521 2038 19482 184346

112 21521 1843 19677 164669

113 21521 1647 19874 144795


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114 21521 1448 20073 124722

115 21521 1247 20273 104449

116 21521 1044 20476 83973

117 21521 840 20681 63292

118 21521 633 20888 42404

119 21521 424 21097 21308120 21521 213 21308 0 16031


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CONCLUSION

After preparing the project report on Entrepreneurship Management, we conclude that

the establishment of any organization is a crucial task . The promoter has to deal with

many circumstances whichrequire high involvement in decision making and strategicplanning regarding proper innovations.

However it is essential that the top management personnel carry out their responsibilities

in a good manner.

The motto of our business is :-

QUALITY AT ITS BEST.

Potential for plastics is increasing, thus we have to maintain our reputation.

Plastic is the basic need of our day to day life. Since plastic material does not carry anybrand name, it will give us an addition benefit in long term to establish our brand name.


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BIBLIOGRAPHY

CRISIL REPORT ON PLASTIC INDUSTRY

PLASTIC WASTE OPTION FOR SMALL SCALE RECOURSERECOVERY BY INGE LARDINOIS

SMALL SCALE RECYCLING OF PLASTIC BY- JON VOGLER

WEBLIOGRAPHY

www.google.com

www.wikipedia.org
http://www.google.com/http://www.wikipedia.org/http://www.wikipedia.org/http://www.google.com/

emtrepreneur mnmngt in manufacturing

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