ENTREPRENEURSHIPPROJECT – BUSINESS PLAN

RECYCLING PLASTIC PLAN

Company Name & Address

SAFE(RPP)

Our Statement of Confidentiality The undersigned reader acknowledged that the information provided by this business plan is

confidential, therefore , reader agrees not to disclose it without the express written

permission of SAFE(RPP)

Our Statement of Financial Needs There are three primary financial statements: The balance sheet, income statement

and statement of cash flow. Each one of these statements is equally important in

communicating the existing or projected financial health of the our recycling

business. These statements are prepared at the end of the financial year to assist our

business to consistently establish, meet goals and objectives.

o Income Statement:

The major category in this statement are revenues and expenses

Both revenue and statement are to be recorded in the year they are

earned or expensed, not when the actual cash is paid or received.

Revenues: sales revenue, service revenue, and interest revenue.

Expenses: salaries of executives, staff salaries, R&D expenses, bad

debt expense, depreciation for the current year expense, interest

expense, and income tax expense

o Cash Flow Statement: This financial statement deals with the cash transactions of the

business in a financial year.

Each period for which the cash flow statement is prepared begins with

a beginning cash balance (which may be zero).

Examples : any revenue received in cash is added and expenses paid in

cash are subtracted. The only transactions which are recorded in this

statement are those which have been made in CASH.

Executive Summary …………………………………………………………….1.0

Industry Analysis ……………………………………………………………….2.0Future outlook and trends………………………..2.1Analysis of competitors………………………….2.2Market segmentation ……………………………2.3Industry forecast…………………………………2.4

Description of Venture……………………………………………………………3.0Product…………………………………………..3.1Services…………………………………………3.2Size of business…………………………………3.3Office equipment and personnel………………..3.4Background of entrepreneurs…………………..3.5.

Marketing Plan…………………………………………………………………..4.0Form of ownership……………………………..4.1Identification of partners………………………4.2Authority of principals…………………………4.3Management team backgrounds……………….4.4Roles and responsibilities of members of organization……………………4.5

Organization Plan ……………………………………………………………..5.0Form of Ownership …………………….……...5.1Identification of Partners…………………….. 5.2Management Team Background ……………..5.3Role and Responsibilities……………………..5.4

Assessment of Risk……………………………………………………………..6.0Evaluate weakness of business ………………...6.1New technologies………………………………6.2

Financial Plan……………………………………………………………………7.0

1.0 EXECUTIVE SUMMARY

The purpose of the Recycling Plastic Plan is to provide resources which seeks to meet

the day to day need of plastic consumable,

The growing utilization of plastic in industrial and consumer applications, combined

with increased consumer awareness surrounding solid waste recycling, has lead to

increase demand for recycled plastic materials for recycling

Replay Plastics will capitalize on the opportunities in the recycled resin and

packaging markets through two main divisions: a Recycling Division and a

Packaging Division.

The sophisticated washing treatment plant installed at premises enables to produce

high quality plastic raw materials and plastic products made from hundred percent

post industrial waste.

The plastic is then dried and extruded into high quality recycled granules on the

Company’s Double vented Japanese extruders. And in turn produced a large variety

of value added products.

SAFE(RPP) is earth friendly and it provides a clean environment to this part of the world.

We firmly believe that it is everyone’s responsibility to recycle everything they can because

they can make the difference. We are trying so hard to stem the tide of pollution that is

overwhelming our beautiful planet. We encourage you to take a part in it.

2.0 INDUSTRY ANALYSIS

2.1 FUTURE OUTLOOK AND TREND Sales passing 15 million in first year, 31 million in year 2, growing to $43 million due

to high demand in the region.

Gross margin of 35% or more in first year, 45% in second year then 50% or more.

Net profit of 13% in year one, then exceeding 20% annually starting in year two.

The main key to success is that we will buy all kind of industrial/ post consumer plastic

materials and scraps in various forms, like baled/fluff/sheet/powder/rolls/others. Some of the

regular materials are listed below. If you have additional material related in plastic. We can

handle that too.

Material Form Color Quantity Description

HDPE Baled/lumps/fluff/powder & etc Natural /othersfull

container industrial/post consumer.

LDPE Baled/lumps/fluff/powder & etc Natural /others full

container industrial/post consumer.

LLDPE Baled/lumps/fluff/powder & etc Natural / Othersfull

container industrial/post consumer.

PET Baled/lumps/flakes/rolls & etc mixfull

container Post consumer

Bottle grade, preform

PS Lumps/Regrind/Rolls Natural /othersfull

container INJECTION

PVC Baled/lumps/fluff/Rolls Natural /others full

container extrusion

BOPP (ROLLS) all size mix rolls printed / unprinted full

container Rejects/Surplus/Over

Produce materials

PET (ROLLS) all size mix rolls printed / unprinted full

container Rejects/Surplus/Over

Produce materials

PP (ROLLS) all size mix rolls printed / unprinted full

containerRejects/Surplus/Over

Produce materials

Audio/Video Cassettes / tapes

damage/broken/crush/rolls anyfull

container

rejected/surplus/ overproduce tapesFor

recycling

Tetra Pack Reels/sheets/etc

PE/Allu Coated Sheets/Rolls Unprinted full

container Rejects/Surplus/Prime Over Produce Material

Along with good resources we have enrich management and marketing capabilities to promote our business to provide efficient resources. The forecasted benefits we will be going to avail are as follows:

2.2 ANALYSIS OF COMPETITORS

Plastics' competitive edge rests with its proximity to its target markets, as well as the industry

knowledge, reputation and contacts of its senior management. Their many years of direct

experience have led them to identify this unique opportunity and put together the technology

and sources to take advantage of it. Their reputation in the specific market segment will

result in the achievement of long-term commitments for our production

2.2.1 OUR COMPETITORS

We have already surpassed the following characteristics through strategic planning and

forecasting, which will deal the most common competitive issues in our future run. Such

issues are

• Patents— We have already applied for our product under Trade Mark and Patent Law

• High start-up costs—In many cases, this barrier is the most daunting one for small

businesses, we have a huge investors and we encourage more to promote us.

• Knowledge—Lack of technical, manufacturing, marketing, or engineering expertise

apart from other competitors , we will resolve it as top level management of our

company is high skill and experiences.

• Market saturation—It is a basic reality that it is more difficult to carve out a niche in a

crowded market than it is to establish a presence in a market marked by relatively

light competition. We are not going to sell in open market. But our plan is to provide

distributors the chance to earn themselves and earn us revenue as target planning.

2.3 MARKET SEGMENTATION

We have already selected certain product to out market segmented audience. Such services

are

Consulting,

Size Reduction/Grindling,

Subcontracting Jobs,

Fine Seperation,

Dry Blending.

2.4 INDUSTRY FOCUS

Our facility is equipped with the latest state-of-the-art single and twin screw compounding

equipment. Each of these instruments incorporates computer controlled operations and data

acquisition to ensure the optimum product quality and lot-to-lot consistency

Now under the SAFE(RPP) umbrella all the companies are dedicated to providing a superior

level of service and quality. If you would like to try this for yourself visit the online

catalogue or contact us

3.0 DESCRIPTION OF VENTURE

3.1 PRODUCTSWe have a wide varities of product to offer which are carefully designed as per the rules and

regulations of IS0 9001-2000 to provide better quality plastic products / raw materials.

3.1.1 REPROCESS GRANNULES

The Reprocessed Grannules we offer has an

excellent balance of impact strength and flexure

modulus as well as offering high melt flow and

good processability .

3.1.2 GARBAGE BAGS

When it comes to Garbage bags ,Refuse sacks,

Refuse Garden sacks , Bin Liners and standard

can liners, Modern offers quality, reliability and

customer service at competitive prices.

3.1.3 PLASTIC PIPES

Excellent mechanical strength and impact resistance .

Highly controlled production processes leading to high quality pipe products .

No requirements for protective coatings .

3.1.4 PET BOTTLES

A technology leap that breaks the mold. With a

Bottle that provides all the multiple advantages of

PET. Its lightweight , its shatterproof , and its

recloseable.

3.1.5 PLASTIC MOLDED PRODUCTS

One of SAFE(RPP) main aims is the drive for new

and innovative techniques to provide cost effective

solutions . Our house hold products such as

Hangers / Buckets / Cups and other

3.2 SERVICES Consulting,

Size Reduction/Grinding,

Subcontracting Jobs,

Fine Separation,

Dry Blending.

3.3 SIZE OF BUSINESS Strategist , Directors, Investors

Top Level Management 3 Managers, Planning, Distribution & Finances

Researchers , 5- 6 according to plant resources and new conducting operations

Office Staff, 10-15 Accountants, Administration, Sales Rep, Outdoor Clerks

Non Contractual Employee. 5 Peon and Sweepers to keep it clean

Plant Workers , 10 Shift operators and technician

3.4 OFFICE EQUIPMENT & PERSONNEL Heavy Duty Machineries at Plant

Office Furniture, Chairs, Tables, Filing Closet,

Electronics, Computers, Servers, Routers, Radio Link Tower etc

Accessories, Papers, Pen, Files etc

3.5 BACKGROUND OF ENTREPRENEUR Entrepreneur is currently studying in AU 4rd Semester, having 5-6 year experienced in

different industries such as, Commerce, Trade, Manufacturing etc and family history

of running different entrepreneur businesses.

4.0 MARKETING PLAN

4.1 PRICINGSAFE(RPP) has chosen to focus on the production of plastic packaging materials from

recycled post-consumer beverage bottles. Because of the industry experience and expertise of

the management, we have identified a significant available market in the Pakistan

Unit Prices 2008 2009 2010 2011 2012

Recycled Bags 0.25 0.30 0.35 0.36 0.40

Recycled Mold Products 3.75 4.75 5.75 6.75 7.75

Recycled Bottle 0.45 0.50 0.55 0.60 0.65

Recycled Pipes 12.99 14.99 16.99 18.99 20.99

Direct Unit Costs 2005 2006 2007 2008 2009

Recycled Bags 0.5 0.10 0.15 0.20 0.25

Recycled Mold Products 1.75 2.25 3.50 4.75 6.00

Recycled Bottle 0.30 0.32 0.35 0.38 0.43

Recycled Pipes 9.19 9.50 11.75 12.80 13.17

4.2 DISTRIBUTION

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 further market research and development, and will

focus on continually updating our production technology in an effort to remain in the

forefront of our chosen marketplace

4.3 PROMOTION PRODUCT FORECASTMilestone Start Date End Date Budget

Advertising 1/1/2009 31/12/2010 Rs.5,096,256

Banners 1/1/2010 31/12/2012 Rs.1,553,896

News paper Adds 1/1/2009 31/12/2012 Rs.1,099,153

Brochures 1/1/2009 31/12/209 Rs.226,153

Rewards & Incentives 01/01/2011 31/12/2011 Rs.300,000

Awards 01/01/2012 31/12/2012 Rs.824,542

Scholarships 01/01/2010 31/12/2012 Rs.1,000,000

Totals Rs.10,100,000

4.4 CONTROLS

Because the Company is a start-up, our milestones will surround the establishment of

continuing facilities, confirmation of sourcing and sales contracts, equipment acquisition and

installation, staffing and training, and initiating production

Order Equipment

Secure Location

Hire & Trained Skilled Labor

Hire Plant Manager

Swot analysis

Strength

Friendly environment

Professionally trainers

Co facility for specific timings

Our trained chef (training from Greeks)

High quality of products

Weakness

Less space for future project

Lack of Experience as a entrepreneur

Comparatively equivalent pricing

Opportunity

Attractive Future Projects

no direct competitor

demand of the fast food in this area gradually increase

Threats

there will competitor in future

Contingencies

Legal and Security Issues

5.0 ORGANIZATION PLAN

5.1 FORM OF OWNERSHIP

SAFE(RPP) is owned by the initial founders, Nooruddin and other investors who are

the proposed three executives of the operating entity.

The plan was conceived and developed by these individuals, with the intent to apply

their extensive experience and contacts in the industry to building a successful

profitable corporation

5.1.1 START UP SUMMARY

Our largest Start-up Requirement is the building of the recycling and extrusion facility. Its

final value at completion is listed below as a long-term asset of 7,620,000. Aside from the

building itself, we need 2,500,000 in machinery and fixtures, 5,000,000 of inventory (plastic

raw materials) and cash to cover us through the initial year.

5.2 IDENTIFICATION OF PARTNERSOne of the active partner is the student studying in AU MBA 4rd Semester. Alongwith

Investors from different part of the Pakistan enjoying their return for the initial investment

they have made to purchase Bonds of SAFE(RPP).

5.3 AUTHORITY OF PRINCIPALS

Chief Executive Office along with the Top, Lower

And Middle Managers playing their parts. Also

to focus on stakeholder whereas the future

Investors

5.4 ROLES AND RESPONSIBILITIES OF MEMBERS OF ORGANIZATIONProduction Personnel Responsibilities

Shift Supervisor To supervise all day to day operation and keep it going

Maintainence TechsTo maintain all technical solution arise from non functionality of machinery

Skilled Recycle Plant Labor To produce and make it available within time

Production Assistant (full time) To assist in production issues

Sales and Marketing Personnel To make sales and keep achieving their targets

General and Administrative Personnel

Responsibilities

President To make deicisions

Vice Pres COO To assist in making decisions

CFO To control of all financial operations and forecasting

Plant Manager To achieve by producing as per given target

Accountant Day to day balancing of books

Clerk To assist in miscellaneous activities

Shipper Receiver To keep track of inventories.

6.0 ASSESSMENT OF RISK

6.1 EVALUATE WEAKNESS OF BUSINESS

6.1.1 Limited Supply of raw material

Recycled Plastics s are in high demand, and demand is currently under-supplied.

Many manufacturers are delaying expansion because of uncertainty of supply.

Entrants would have to consider sourcing post-consumer or post-industrial waste and

clean and refine it rather than attempting to purchase flake on the open market.

6.1.2 Equipment costs are high and industry specific, resulting in a high exit cost.

Because of the scarcity of RPET flake, entrants may be forced to establish cleaning

and refining facilities for post-consumer bottles.

The equipment required is costly and very industry specific. It would not easily be re-

sold as a system.

There is a market for used extrusion equipment, which normally sees 60-70% of new

value being realized.

6.1.3 Vertical integration is an important consideration and difficult to accomplish

successfully.

Because of the scarcity of RPET resin, and to maximize profit potential, entrants must

consider a two-stage production facility.

Cleaning and refining post-consumer bottles and extruding the resulting flake into

commercial products requires a management team such as Replay has, with a broad

range of expertise, experience, industry contacts and knowledge in both areas.

6.1.4 Firm contracts for supply and sales.

Replay Management's industry contacts will allow us to secure contracts for both

supply of feed stock and sale of finished goods.

6.1.5 Freight is a major cost of operations; proximity to source of supply and markets is

crucial.

Hauling plastic materials is expensive so entrants will have to consider establishing

facilities close to materials and markets.

Entrants with existing operations would have to consider new separate facilities in

many cases, reducing economies of scale and making management more difficult.

6.2 NEW TECHNOLOGIES

6.2.1 RPET Flake

The current pricing for virgin resin is 0.65-0.73 per lb. and 0.42-.53 for RPET flake. The

new spread between the two has traditionally been maintained at approximately $0.20 per lb.

Technological changing has ascertain great return.

6.2.2PET Film & Sheet

The reported market demand (to replace virgin PS, PVC and PET) if RPET was available

is estimated at 1 billion Current pricing for RPET sheet is 0.70-0.79 per lb. This technology

for Bottle reshaping and designing have been adopted by different international company.

6.2.3RPET Strapping

The total reported domestic plastic strapping market is 240 million . Of this market, industry

usage of virgin polypropylene is 132 million and of PET is 108 million . Strapping

technology have been advanced.

Financial plan

The total amount to established that business is Rs.1100000 while in that amount Rs. 400000

is the reserve fund, which is the liability of the business. Which will be returned.

Here we have prepared our forecasting of our business for our business. First we have shown

our expenses and then we tried to show how our projected revenue will generate

Expenditures

One time expense Rs/-Building Contract cost for five years costs: 500000

Business registration Fee: 45000

Production house equipments 75000

Furniture and Decorations 190000

Playing area equipments 50000

Other setup charges 110200

Value added tax VAT 705120

total 1675320

Depreciation costs for every year within a five year period:

Year 1st year 2nd year 3rd year 4th year 5th yearDepreciations 1081194 864955 691964 553572 2214285

12 months expenditure throughout the year

expense 1st year 2nd year 3rd year 4th year 5th yearRental 144000 144000 144000 144000 144000

Administrative 100000 119900 129000 150000 175000

Technology (machines)

300000 326900 387920 412500 456300

Salaries 26000 33000 39000 46000 50000

Depreciations 1081194 864955 691964 553572 2214285

Others 556000 568500 691964 6635727 597600

Total 2207194 2057255 2083848 1969799 3637185

Investments & Revenues

Our Investors total contributed:

Revenue Calculation

1st year 2nd year 3rd year 4th year 5th yearProjected revenue

22080850 3168930 5712534 8130737 8361250

Expense 2207194 2057255 2083848 1969799 3637185Balance 8906 1111675 3628686 6160938 4724065

From above we can see that we will enjoy the most incomings in the 4th year after launch.

And this is a positive sigh that we will have been reached at the break even point within 1st

year.

The total amount to established that business is Rs. 1073360 while in that amount Rs. 388160

is the reserve fund, which is the liability of the business. Which will be returned.

Anum Rafique 285200Syeda Anum Nawazish 197040Anum Tariq 197040Syeda Um-e-Rubab 197040Sehrish Ashraf 197040Total 1073360 Rs/-

BALANCE SHEETFOR THE YEAR ENDED 31

DEC.2011

ASSETSFIX ASSETS

BUILDING 500000COMPUTER 17,500PRINTER 9,000TELEPHONE SET 700FURNITURE 40,000STATIONARY 5,000FAN 20000LIGHT 3000EXHAUST FAN 5000A.C 50,000REGISTRATION 35,000TOTAL FIXED ASSETS 685200CURRENT ASSETSCASH 388160A/R 0

TOTAL ASSETS 1073360

LIABILITIES + O .E OWNER EQUITY 685200LIABILITIES 388160

TOTAL ASSETS 1073360

Exist strategy

If some of misconducts or any breakup among our partnership comes may be we can dismiss

our business. Though there is a low possibility but if one of the following scenarios happens

we will close our business-

If any bankruptcy happens to us

If law enforces us to do so

If our partnership breaks up

If we become unable to run business