BUSINESS PLAN

CGS
CLEAN & GREEN SOLUTIONS PVT. LTD

GROUP 25 SOMIL TURAKHIA

COMPANY PROFILE

The Company is called CGS or Clean and Green Solutions, which specializes in recycling of paper and providing more productive uses for waste and discarded materials. The company is a PVT LTD firm that is it is a Private Limited form of company. The company would be Recycling Paper and other fibbers to maximize the utility and reduce wastage of limited resources and gifts of nature. The company would be located in Indore (M.P) and would operate in and around various neighboring districts. After recycling of paper, the residue or the raw materials would be further sold to contractors, paper industry or to other waste managing companies.

AIM

To create self-sustaining, environment friendly and economically feasible business for the society as a whole

VISION
"To improve the quality of human life & surroundings."

MISSION

"To become a leading innovative waste solutions company in India, committed to continuous improvement for the company itself, our customers and the environment around us. "With the support of our employees we will aim to grow the company, while maintaining successful and long standing business partnerships with both our contractors and our customers"

OBJECTIVES
To provide the people, expertise and resources to ensure a first class service to our customers. To satisfy our customers' agreed requirements in all respects. To continuously monitor and improve our performance. To make a fitting contribution to the community and environment in which we conduct our business. To make the world a better place to live in.

CORE VALUES
Respect for the individual Individuals come from unique backgrounds and have had unique experiences; this means that they can make contributions that no others can. The Company respects individuals and all contributions they make. Love for nature and its creations Everything around us is the creation of nature and its beauty is unlimited. As a company we strive to work towards preserving, conserving and safeguarding it against all harms. Commitment to excellence Attaining excellence is a journey, not a destination. This means continually striving for improvement.

 Dedication to customer service Meeting the customers needs is the foundation of business success. If you meet their needs and respect them.

PAPER
It is a thin material mainly used for writing upon, printing upon, drawing or for packaging. The oldest known archaeological fragments of the immediate precursor to modern paper date to 2nd century BC in China. Paper is a versatile material with many uses. Whilst the most common is for writing and printing upon, it is also widely used as a packaging material, in many cleaning products, in a number of industrial and construction processes, and even as a food ingredient. The per capita consumption is only about 10-kilo gram against the global average of 57-kilo gram. Demand for paper in India 12 million tons.India imports 1.6 million tons of paper per year from abroad.

PAPER INDUSTRY
The pulp and paper industry comprises companies that use wood as raw material and produce pulp, paper, board and other cellulose-based products.

PAPER RECYCLING PROCESS

Collection: The process where all kinds of wastes are collected mostly mixed-up. Transportation: Under this process all the collected waste is transported to the recycling plant for further processing. Sorting: Next process comes the sorting where all the wastes collected are kept on the conveyor and paper is segregated from others, also the paper is also separated on basis of quality, design, inks used, materials etc. Processing;The process where recycling of paper actually starts, the paper is reacted with various chemicals and physical reactions. Finishing: The final process where recycled paper is measured and distributed into respective sizes.

PAPER RECYCLING PROCESS

PAPER FACTS
12,500 sheets of paper can be made from 1 tree 95% of all the paper is eventually thrown away.

1 ton of recycled paper saves 24,000 gallons of water and 5,000 meters worth of forest.

MARKETING
USP
Waste is nothing but useless materials, we give value to the waste paper and make life of our customers easier and their surroundings cleaner

STP
Segmentation: All those using paper in direct or indirect form. Targeting: Those believing in eco-friendly products. Positioning: All paper making industries.

4Ps
Product: paper, tissue papers, paper bags, covers, cups etc. Pricing: Competitive pricing and lower than the paper freshly made Placing: Sell raw materials to producers. Promotion: Radio advertising, Innovative methods

SWOT analysis
Strengths: Our industry deals with protection of environment, so we stands out from other industry. The wider range of our products that we can market. There Is no much competition in this industry Weaknesses: Higher operating costs when quality of waste paper is poor. Opportunity: Expand many product ranges. Everyone will prefer eco-friendly product. Threats: New industries entering in this field.

Feasibility The industry is feasible in selling: Sales to contractors, paper industry or to other waste managing companies.

Wide recycled products to consumers Undertaking govt. contracts etc.

HUMAN RESOURCES
We would on a very initial stage hire/employ daily wage earners to collect waste paper from neighboring houses and bring them to the depot, where they would be transported vi trucks to the plant.

We would also spend on Training and Development of those unskilled labors and also give career opportunities to workers in the plant by giving them specialized training in operating machines.

RECRUITMENT
We would go External recruitments as our Company is newly founded and we have no pre-existing employees. For Workers (Collection, Sorting, Machine operators etc.) Direct recruitment Causal callers Employment exchange Placement agencies & consultants Labor contractors For Employees & Managers Web publishing AD on Television Recommendations from employees campus recruitment Management consultants

Particular Factory workers Drivers (truck) Clerks Managers Top Managers Factory workers

Type Machine operatives General Office Office Office Collection & Sorting

Number 5 3 3 6 3 5

Salary /Wage Structure

HEADS CEO CFO NO. OF EMPLOYEES 1 1 SALARY/WAGE PER MONTH
2,00,000 1,50,000

TOTAL SALARY
24,00,000 18,00,000

COO Marketing Manager Production Manger Factory Workers Accounting and Finance Manager Drivers Clerks Working Unit* TOTAL

1 2 2 10 2 3 3 24

1,50,000 30,000 30,000 5,000 30,000 8,000 8,000

18,00,000 7,20,000 7,20,000 6,00,000 7,20,000 2,80,000 2,80,000 75,00,000

ORGANISATIONAL STRUCTURE

CEO

COO

CFO

PRODUCTION

MARKETING

ACCOUNTANCTS

FINANCES
SOURCES OF FUND
S.No PARTICULARS AMOUNT

1. 2. 3.

Owners Capital Venture Capital Bank loan

10,00,00,000/5,00,00,000/10,00,00,000/-

Owners Capital
Owners would club in equal amount of capitals towards the start of business Somil 5,00,00,000/Roopa 5,00,00,000/-

Venture Capital
Green technology and environmental friendly businesses are the new favorites of the investors world wide people now want a green business that has very less carbon footprints.

Sequoia Capital Address:

5,00,00,000/-

902, Nicholas Piramal Towers Peninsula Corporate Park GanpatraoKadamMarg Lower Parel Mumbai 400013 T: +91 (0)22 4074 7272 F: +91 (0)22 4074 7271

Bank loan
Bank loan from Citi bank @ 12%

INITIAL INVESTMENT
INVESTMENT AMOUNT DESCRIPTION

Plant and Machinery

1,02,00,000

Turnkey Projects Conveyor System Turbo Separator Decker Thickener Vibrating Screen High Density Cleaner

Construction

50,00,000

Office Building shed Work Shed warehouse Other Constructions 3NOS TATA TRUCK Security deposit is for the land taken for rent. Office chairs & tables 2NOS Dell DQ-197YT for Rs 25,000

Trucks Security Deposit Furniture and fittings Computers TOTAL (A) START UP EXPENDITURE Brokerage fees Legal Expenses Marketing expenses Miscellaneous Expenses Total(B) WORKING CAPITAL RESERVES AND SURPLUS (D) GRAND TOTAL

30,00,000 10,00,000 1,50,000 50,000 1,94,00,000

1,00,000 3,50,000 5,00,000 50,000 10,00,000 3,00,00,000 50,00,000 5,54,00,000

One months rent Legal Formalities Break up given below For daily expenses and for unforeseen expenditure

(A+B+C+D)

BREAK UP OF PLANT AND MACHINERY

S.NO PARTICULARS NO. OF AMOUNT TOTAL

MACHINES 1. 2. 3. 4. 5. 6. 7. 8. Turnkey Projects Conveyor System Turbo Separator DeckerThickener Vibrating Screen High Density Cleaner Misc. Installation and Electrifying TOTAL 2 1 2 4 3 4 10 5

PER UNIT (RS) 10,00,000 15,00,000 20,00,000 50,000 1,00,000 5,00,000 10,000 20,000

AMONUT(RS) 20,00,000 15,00,000 40,00,000 2,00,000 3,00,000 20,00,000 1,00,000 1,00,000 1,02,00,000

BREAK UP OF CONSTRUCTION COSTS

PARTICULAR OFFICE CONSTRUCTION WAREHOUSE & STORE WORKERS SHED AMOUNT 5,00,000/30,00,000/15,00,000/DESCRIPTION Office Set up A 5000* 3000 sqft plot Shed for workers

DEPRECIATION CHART

S.NO 1. 2.

PARTICLARS Machinery Computers

RATE 20% 60%

YEAR 1 20,40,000 30,000

YEAR 2 16,32,000 6,000

3. 4.

Trucks Furniture and Fittings

40% 25.88%

12,00,000 38,820

7,20,000 28,774

5.

Buildings TOTAL

10%

5,00,000 38,08,828

4,50,000 28,36,774

CASH FLOW STATEMENT

PARTICULARS Cash Received Cash from Operations: Subtotal Cash from Operations Additional Cash Received: Capital contribution from owners Subtotal Cash Received Expenditures Expenditures from Operations: Cash Spending Portion venturecapitalist Subtotal Cash Spent Payment of taxes Net Cash Flow Previous years Cash b/d Cash Balance YEAR1 YEAR 2

75,00,000 75,00,000

1,50,00,000 1,50,00,000

10,00,00,000 10,75,00,000 6,00,00,000

10,00,00,000 16,50,00,000 6,00,00,000

1,00,00,000 3,75,00,000 1,12,50,000 -----2,62,50,000

1,00,00,000 9,50,00,000 2,85,00,000

9,27,50,000

REVENUE MODEL
YEAR 1 Price of Recycled Paper (Raw Form) 600/- per kg Price of Chemically Enhanced Paper 800/- per kg Average Monthly Sales 10 thousand kg Revenue in 1 month peak season =7,000kg*600+3,000kg*800 =42,00,000+24,00,000 =66,00,000 Annual Revenue = 66,00,000*12 7,92,00,000/-

YEAR 2 Price of Recycled Paper (Raw Form) 600/- per kg Price of Chemically Enhanced Paper 800/- per kg Average Monthly Sales 15 thousand kg

Revenue in 1 month peak season =9,000kg*600+6,000kg*800 =54,00,000+48,00,000 = 1,02,00,000 Annual Revenue =1,02,00,000*12 =12,24,00,000/-

INCOME AND EXPENDITURE ACCOUNT

YEAR 1 7,92,00,000 YEAR 2 12,24,00,000

REVENUES AND INCOME (A) LESS: EXPENSES Administration Expenses Electricity& Fuel Rent Salary& Wages Maintenance expenses Depreciation Marketing Expenses TOTAL EXPENSES (B) TOTAL OPERATING PROFIT/LOSS(A-B) LESS: TAX (33%) NET PROFIT/LOSS

6,00,000 60,00,000 75,00,000 38,08,828 30,00,000 2,09,08,828 5,82,91,172

6,00,000 60,00,000 75,00,000 28,36,774 25,00,000 1,94,36,774 10,29,63,226

1,92,36,086 3,90,55,085

3,39,77,864 6,89,85,361

BALANCE SHEET
PARTICULARS YEAR 1 YEAR 2

ASSETS Current Assets Cash Bank Fixed Assets Less: Depreciation Net Fixed Assets Total Assets LIABILITIES Sources of Fund (A)Owners Capital (B)Bank loan (C)Venture Capital NET PROFIT PROVISION FOR TAXATION Total Liabilities

2,62,50,000 15,00,00,000 12,31,00,000 38,08,828 12,23,02,085 29,85,02,085

9,27,50,000 15,00,00,000 9,92,96,172 28,36,774 8,84,32,361 32,84,32,361

10,00,000 10,00,000 5,00,000 4,85,02,085 --29,85,02,085

10,00,000 10,00,000 5,00,000 7,84,32,361 ---32,84,32,361

Break-Even Analysis
TC-TR approach Break even is achieved where TR=TC Total costs =1,94,36,774 + 10,00,00,000 =11,94,36,774 Total Revenue= 7,92,00,000 TR/TC =0.66 =0.66*12 =7.92 = 7months & 28 days
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