ppr recycling

8/3/2019 Ppr Recycling

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Preliminary Project Report

On

PLASTIC RECYCLING

Submitted by:Amogh (66)

Abhijeet (61)

Ravikiran (98)

Sharat kumar (102)

Santosh .S (101)


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Preliminary Project Report

1. General information

Name of entrepreneur: M.N.Rao

Date of birth : 1/4/1978Project : plastic recycling manufacturing unit

Location : Hubli

Address : Rayapur, Hubli

Type of organization : sole trading concern.

1.1Educational qualification

Qualification Institution Year of passing

SSLC Sharadamba school 1994

PUC S.G college 1996

B.E. S.J.M college 2000

M.B.A J.B college 2002

1.2 Work Experience

Organization Position Nature of work Duration

Cruze Plastics Production Manager 3 years

1.3Annual income

Cash in hand 4,00,000

1.4 Details of proposed project

Manufacturing unit

2. Machinery and Equipments

Sl no Particulars Quantity Rate Amount1 PET bottle recycling

production line*

1 11,25,000 11,25000

TOTAL 1,25,000


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* the production line includes a crushing machine, a heater, a friction washing

machine and a two poaching washing machine as the main processing machines. All

the machines are connected through a set of conveyor belts.

2.1Miscellaneous fixed assetsSl no Particulars

Amount

1 Furniture 15,000

2 Others 5,000

TOTAL 20,000

2.2 Preliminary expenses

Sl no Particulars Amount1 Registration 5000

TOTAL 5000

2.3 Production programme

No of working days 300daysNo of working hours 8 hours / daysInstalled capacity 72,000 tons/ yr

Utilized capacity 45,000 tons / yr

2.4 Manufacturing process

Our sources include the city municipal corporation, local waste vendors and self help

groups and citizens. We buy the raw materials at 14 rupees per kg from all the sources,

the raw material being plastic bottles of all shapes and sizes and colors. These bottles arefirs sorted according to their nature and cellular structure to be processed with similar

settings.

Sorting

Post-consumer PET is often sorted into different color fractions: transparent or uncoloredPET, blue and green colored PET, and the remainder into a mixed colors fraction. Theemergence of new colors (such as amber for plastic beer bottles) further complicates the

sorting process for the recycling industry.


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Further treatment

The Further treatment process includes, crushing, heating stirring, friction washing and

two poaching washing. We further treat the post-consumer PET by shredding the material

into small fragments. These fragments still contain residues of the original content,

shredded paper labels and plastic caps. These are removed by different processes,resulting in pure PET fragments, or "PET flakes". After thorough washing these PET

flakes are made ready for sale. PET flakes are used as the raw material for a range of

products that would otherwise be made of polyester. Examples include polyester fibres (abase material for the production of clothing, pillows, carpets, etc.), polyester sheets,

strapping, or back into PET bottles etc.

Expenses 3. Raw materials

Sl no Particulars Quantity Rate Amount1 Plastic bottles 45,000 tons 14 6,30,000

TOTAL 6,30,000

3.2 utilities

Sl no Particulars Amount

1 Electricity 2,40,000

TOTAL 2,40,000

3.3 Man power

Sl

no

Particulars Members Salary / months Amount

1 Supervisor 1 4,000 48,000

2 Skilled 2 3,000 1,08,000

3 Un-skilled 3 2,500 60,000

TOTAL 2,16,000

3.4 Repairs and maintenances


1 Repairs expenses 40,000

TOTAL 40,000


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3.5 administration expenses


1 Rent (8,000*12) 96,000

2 Misc 10,000

TOTAL 106,000

Market potential

As per market survey demand for plastics in the Hubli is 2,00,000 tonsSupply from local suppliers is 1,20,000

And unmet demand is 80,000 so project is feasible.

4. Working Capital


1 Raw materials (630000/12) 52500

2 Salary and wages(216000/12) 18,000

3 Utility(240000/12) 200004 Administration(106000/12) 8833

5 Repairs and maintenances(40000/12) 3333

6 Rent 8000

TOTAL 110666

4.1 Total cost


s1 Fixed cost 11,25,000

2 Working capital 110666

3 Preliminary expenses 5,000

TOTAL 1240666

4.2 Means of finance


1 Proprietors fund (1240666*30%) 372200

2 Term loan (1240666*70%) 868466

TOTAL 1240666

4.3 interest calculation

Year o/s amount Interest Principle amt Installment

1 868466 43423 173693 217116

2 694773 34739 173693 208432

3 521080 26054 173693 199747

4 347387 17369 173693 191062

5 173693 8685 173693 182378

TOTAL 130270 868465 998735


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4.4 Depreciation


1 Machinery (1125000*10%) 1125002 Furniture (15000*5%) 750

TOTAL 113250

5 .Sales revenue

Year Quantity Rate Amount

1 45000 33 1485000

2 50000 33 1650000

3 55000 33 1815000

4 60000 33 1980000

5 65000 33 2145000

PROFITABILITY ANALYSIS YR 1

Sl no Particulars Amount Amount

1 Sales revenue 45,000*33 14,85,000

2 Less costsA Raw materials 6,30,000

B Utility 2,40,000

C Man power 2,16,000

D Administration 1,06,000

E Repairs and main 40,000

F Interest 43,423

G Depreciation 1,13,250

H Rent 96,000

I Principle amt 1,73,693 1658366

PROFIT (-)173366


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1 Sales revenue 50,000*33 16,50,000

2 Less costs

A Raw materials 6,30,000

B Utility 2,40,000



E Repairs and main 40,000

F Interest 34739

G Depreciation 1,13,250H Rent 96,000


PROFIT 318



1 Sales revenue 55,000*33 18,15,000

2 Less costs

A Raw materials 6,30,000B Utility 2,40,000



E Repairs and main 40000

F Interest 26054


H Rent 96,000


PROFIT +174003


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PROFITABILITY ANALYSIS Yr 4


1 Sales revenue 60,000*33 19,80,000

2 Less costs


B Utility 2,40,000


D Administration 1,06,000E Repairs and main 40000

F Interest 17369


H Rent 96,000


PROFIT +347688

PROFITABILITY ANALYSIS Yr 5


1 Sales revenue 65,000*33 21,45,000

2 Less costs


B Utility 2,40,000



E Repairs and main 40000F Interest 8685


H Rent 96,000


PROFIT +521372


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1st yr

FIXED COST Amount VARIABLE COST Amount

Manpower 2,16,000 RM 6,30,000Adm exp 1,06,000 Utilities 2,40,000

Principal 1,73,693

Depreciation 1,13,250

Rent 96,000

Interest 43423

Repair and

maintenance

40000

TOTAL 788366 8,70,000

2nd yr

FIXED COST Amount VARIABLE COST AmountManpower 2,16,000 RM 6,30,000

Adm exp 1,06,000 Utilities 2,40,000

Principal 1,73,693


Rent 96,000

Interest 34739

Repair andmaintenance

40000

TOTAL 779682 8,70,000

3rd yrFIXED COST Amount VARIABLE COST Amount

Manpower 2,16,000 RM 6,30,000


Principal 1,73,693


Rent 96,000

Interest 26054

Repair andmaintenance

40000

TOTAL 770997 8,70,000


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4th yr

FIXED COST Amount VARIABLE COST Amount

Manpower 2,16,000 RM 6,30,000Adm exp 1,06,000 Utilities 2,40,000

Principal 1,73,693


Rent 96,000

Interest 17369

Repair and

maintenance

40000

TOTAL 762312 8,70,000

5th yrFIXED COST Amount VARIABLE COST Amount

Manpower 2,16,000 RM 6,30,000


Principal 1,73,693


Rent 96,000

Interest 8685

Repair and

maintenance

40000

TOTAL 753628 8,70,000


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BEP (value) = fixed cost/ P/V ratio

=1.234

P/V ratio = (sales- variable cost) /sales

= ()/9,05,000

= 0.3

BEP(value) = 2,60,936/0.3

= 8,69,787

Feasibility

9,05,000 sales in 12 months8,69,787 in ?

=8,69,787*12/9,05,000

= 11.53 months

i.e Within 1year

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