DELTA Plastics Recycling

Industry Description and Outlook

The growing utilization of plastics in industrial and consumer applications, combined
with increased consumer awareness surrounding solid waste recycling, has led to an
increased demand for recycled plastic resins and products. One of the fastest growing
types of collected plastic materials for recycling is polyethylene terephthalate ("PET")
from postconsumer be!erage and water bottles. "elta #ecycle Enterprise is such a
manufacturing company that dedicated to con!erting waste plastic materials into
commercially !iable products, utilizing en!ironmentally friendly recycling and
manufacturing methods.
Objectives
$. %ales passing &$' million in first year, &($ million in year ), growing to &*(
million.

). +ross margin of (', or more in first year, *', in second year then '-, or more.
(. .et profit of $(, in year one, then e/ceeding )-, annually starting in year two.
Mission
"elta #ecycle Enterprise is a manufacturing company dedicated to con!erting waste
plastic materials into commercially !iable products, utilizing en!ironmentally friendly
recycling and manufacturing methods. 0 intend to ma1e enough profit to generate
a significant return for my in!estors and to finance continued growth and continued
de!elopment in 2uality products. 0 will also maintain a friendly, fair, and creati!e wor1
en!ironment, which respects di!ersity, new ideas and hard wor1.
Keys to Success
The main keys to the success of the Company are:
%ecure %upply 3ontract for supply of postconsumer bottles and postindustrial
manufacturing waste for PET raw material feed stoc1.
4ar1eting 3ontractual arrangements for the sale of !irtually all initial
production.
4anagement %trong senior management with e/tensi!e, broadbased, industry
specific e/perience.
Potential Risks
Unavailable or scarce raw material feed stock for production
Premier #ecycle Enterprise is confident that it has secured good a!ailability of
low cost postconsumer PET bottles (feed stoc1) deri!ed from postconsumer
be!erage bottles.
ec!nolo"y employed may be unreliable or unproven
Premier #ecycle Enterprise will use a pro!en, patented technology that was
de!eloped by one of its principals for the cleaning and recycling phase. The
e/trusion di!ision will employ commercially pro!en technology the industry is
employing uni2ue recycled PET technology.
!ere may not be a market for t!e #ompany$s products
The 0ndustrywide e/perience of the 4anagement Team has allowed them to
identify mar1ets for the 3ompany5s products. Their e/pertise and reputations ha!e
allowed them to obtain commitments for !irtually all of the planned initial
production.
!e location may not be near enou"! to markets
The mar1ets that ha!e been identified are primarily in the 3hittagong city. 6hich
will pro!ide a distinct ad!antage to the 3ompany because of shipping costs and
deli!ery timing.
#ompany may not meet environmental standards
This en!ironmentallyfa!orable !enture pro!ides for the de!elopment of
technically feasible and economically !iable solutions to PET plastic be!erage
bottle recycling, as well as en!ironmentally aware inhouse reuse practices which
filter and return nearly all of the process water to the production lines.
Re"ulatory Restriction%
7t present there does not ha!e harmonised rules for such recycle plastic in
8angladesh. 8ut the business should be located in industrial area. 9or this reason 0
ha!e chosen my business location in O/ygen, 3hittagong, which is 1now as industrial
area in this city.
#ompany Summary
The 3ompany will capitalize on the opportunities in the recycled resin and pac1aging
mar1ets through two main di!isions: a #ecycling "i!ision and a Pac1aging "i!ision.
Recyclin" Division
;sing a patented process, the 3ompany will create a PET cleaning and refining plant
located in the O/ygen, 3hittagong. 0 ha!e chosen this region because this is the industrial
area of this city. 0ts initial annual capacity will be )- million pounds . The company uses
all or almost all of its recycled material in its Pac1aging "i!ision. 7ny surplus material
produced will be sold to outside companies.
Packa"in" Division
0 will create a plant (actual facilities to be shared with the #ecycling "i!ision) to
manufacture e/truded plastic roll stoc1 sheet or highstrength strapping, employing state
oftheart technology de!eloped to utilize recycled PET resin.
The e/truded sheet will be primarily sold to thermo formers who will con!ert it into high
!isibility pac1aging, as well as laminators and fabricators. The strapping will be sold to
commercial users for use as pac1age or pallet strapping.
The 3ompany currently has commitments from customers to purchase all of the initial
production capacity. E/cess fla1e will be sold to outside customers.
#ompany Owners!ip
Premier #ecycle Enterprise is owned by the initial founders, &nindya #!owd!ury%
The plan was concei!ed and de!eloped by myself, with the intent to apply my e/tensi!e
e/perience and contacts in the industry to building a successful profitable corporation.
Start'up Summary
Our startup e/penses are budgeted at &)$-,---, which is mostly for onsite contractor
ser!ices during facility preparation. &'-,--- has been set aside for legal and accounting,
&)',--- for special consulting that may be re2uired during start up and &'-,--- each for
local engineering and lab e2uipment and supplies. &(-,--- has been set aside as a
contingency for the start up period.
Our largest %tartup #e2uirement is the building of the recycling and e/trusion facility.
0ts final !alue at completion is listed below as a longterm asset of &(,<)-,--- (e/cluding
e/pensed items li1e consultants and engineering listed abo!e). 7side from the building
itself, we need &)',--- in machinery and fi/tures, &'--,--- of in!entory (plastic bottle
feed stoc1) and cash to co!er us through the initial year.

%tartup funding
%tartup 9unding
%tartup E/penses to 9und )$-,--- =>
%tartup 7ssets to 9und *,?@-,---=>
Total 9unding #e2uired ',---,---=>
7ssets
.oncash 7ssets from %tartup *,$*',---=>
3ash #e2uirements from %tartup <*',---=>
7dditional 3ash #aised -=>
3ash 8alance on %tarting "ate <*',---=>
Total 7ssets *,?@-,---=>
Aiabilities and 3apital
Aiabilities
3urrent 8orrowing -=>
Aongterm Aiabilities B--,---=>
7ccounts Payable (Outstanding 8ills) -=>
Other 3urrent Aiabilities (interestfree) -=>
Total Aiabilities &B--,---=>
3apital
Planned 0n!estment
9ounders $,'--,---=>
0n!estor ),?--,---=>
7dditional 0n!estment #e2uirement -=>
Total Planned 0n!estment *,)--,---=>
Aoss at %tartup (%tartup E/penses) ()$-,---=>)
Total 3apital (,@@-,---=>
Total 3apital and Aiabilities *,?@-,---=>
Total 9unding ',---,---=>
Products
"elta #ecycle Enterprise will utilize two processes in the same facility to produce:
3leaned and recycled plastic PET fla1e (#PET), reco!ered from postconsumer
be!erage bottles and manufacturing waste produced by its sheet customers
E/truded roll stoc1 sheet PET.
E/truded PET highstrength strapping for securing large pac1ages or pallet loadsC
each using $--, #PET produced inhouse

Product Description
#oll stoc1 sheet will be sold to custom thermo formers primarily to be used to
produce high!isibility pac1aging. 0t will also be sold to manufacturers of laminates and
fabricated plastic products.
Digh strength PET pac1aging strapping is used to secure pac1ages or pallets in such
industries as lumber milling and corrugated and other paper production.
8oth products will be e/truded from postconsumer polyethylene terephthalate (PET)
bottles. ;sing a patented process, #eplay will clean and refine the PET material from the
postconsumer bottle stoc1 and postindustrial manufacturing waste. The PET fla1e resin
produced will be e/truded into roll stoc1 sheet or highstrength strapping.
7lthough the 3ompany e/pects to con!ert all of its bottle feed stoc1 into e/truded
products, any surplus fla1e will be sold to outside manufacturers.
#ompetitive #omparison
6hile 2uality and deli!ery are important factors to our potential clients, price is most
often the determining factor in a buying decision. +ood2uality pac1aging products
manufactured from recycled (less e/pensi!e) resins, as close as practical to the end
customer5s operations, will be most competiti!e and achie!e a significant mar1et
share. These factors ha!e helped to determine the business parameters of #eplay Plastics.
Sourcin"
0n e/cess of $--,---,--- pounds of postconsumer PET be!erage bottles are collected
and a!ailable as feed stoc1 for manufacturers who can reprocess this material into
commercial products. The 3ompany has e/cellent relations with the firms and
associations that collect and distribute these materials and has been assured that its
re2uirements will be a!ailable for the foreseeable future.
There are other sources of postconsumer feed stoc1 1nown to Premier #ecycle
Enterprise, and 0 am confident that 0 will ha!e sufficient materials a!ailable for our
production needs.
ec!nolo"y
One of 1ey member of my 4anagement team, is the original inno!ators of cleaning and
refining technology for postconsumer PET, and 0 will be utilizing his patented process in
our recycling facility. De has wor1ed in the establishment and operation of facilities
employing similar technologies o!er the last se!eral years.
On the manufacturing side, 4anagement has been an integral part of the ad!ancement of
industry practices o!er the last twenty years or so, and includes in their 1nowledge base
most, if not all, of the stateoftheart a!ailable e2uipment and manufacturing techni2ues.
Market &nalysis
%trong demand for recycled plastics is wor1ing in the industry5s fa!or. 4aEor users of
plastic pac1aging, apparently responding to consumer desires, ha!e begun incorporating
at least some recycled plastic content in their products as part of the growing interest in
recycling. #ecycled resin demand is on the rise as prices for the two maEor recycled
resins, PET and D"PE, continue to hold !alue or appreciate against their !irgin
counterparts.
0n !olume, PET is currently the number one recycled resin. %upply of recycled PET is in
e/cess of B-- million pounds per year. The plastics industry has de!eloped new mar1ets
and applications for recycled resins from both postconsumer and postindustrial sources.
4ar1ets and uses for recycled plastics are rapidly e/panding. Plastic containers are being
collected at the curb for recycling in nearly '-- communities.
Pac1aging is e/pected to be the largest mar1et segment for recycled plastics, with sheet
and lumber following. .The recycling industry intends to accelerate the rate of plastic
recycling as part of its commitment to de!elop solutions to the solid waste problem.
ar"et Market
The 3ompany has chosen its target mar1ets because recycled PET (#PET) is in high
demand as fla1e resin by con!erters, as roll stoc1 sheet used to produce high !isibility
pac1aging and as high strength strapping for the lumber industry. %ales are price
sensiti!e, so that pro/imity to mar1ets and feed stoc1 source pro!ide a competiti!e edge.
Premier Plastics identified an opportunity to ta1e ad!antage of both circumstances in the
western ;nited %tates.
RP( )lake
Total mar1et demand is reported as $.) billion pounds per year. 3onsumers are forced to
loo1 at wide spec !irgin PET (!irgin resin that is outside of spec but still usable) which is
normally sold at a discount to !irgin prices, but still higher than recycled (#PET) pricing.
P( )ilm * S!eet
The total reported mar1et of e/truded film and sheet is B?) million pounds, of
which identified industry usage of #PET is $<- million pounds.
RP( Strappin"
The total reported domestic plastic strapping mar1et is )*- million pounds. Of this
mar1et, industry usage of !irgin polypropylene is $() million pounds and of PET is $-B
million pounds.
0t is generally accepted in the industry that less e/pensi!e strapping made from #PET
could not only ta1e o!er the polypropylene strapping mar1et, but con!ert as much of the
much larger and more e/pensi!e steel strapping mar1et as #PET strapping was a!ailable.

#ompetition and +uyin" Patterns
There has been a strong demand (sellers5 mar1et) for our products for se!eral years.
Traditional buying patterns in this industry are based on 2uality, price, reputation of
manufacturer, freight costs, deli!ery times and pro/imity to mar1ets. "uring such a
sellers5 mar1et, buying patterns are often more influenced by a!ailability.
Main #ompetitors
3urrently in the 8angladesh, there is no direct competition for cleaning and refining post
consumer or postindustrial PET. .or is there any noncapti!e e/trusion of roll stoc1
sheet.
Strate"y and Implementation
Premier #ecycle Enterprise will utilize its strong industrywide relationships to obtain
significant contracts for its production. %ome business will be obtained directly by
4anagement, while some amount of product will be sold by sales agents well 1nown to
the 3ompany who ha!e pro!en their effecti!eness.
These industrywide relationships will also pro!ide the 3ompany the ability to secure
contracts for the supply of its raw material at competiti!e pricing.
,alue Proposition
0n a !ertically integrated en!ironment, Premier #ecycle Enterprise will apply stateof
theart recycling and e/trusion technology managed by decades of industry specific
e/pertise to create a competiti!e ad!antage for its clients. These processes will produce
clean, costefficient, recycled raw material for manufacturers of thermoform, laminate
and other high !alueadded products, and high strength pac1aging strapping for shippers
of large products and pallets, thereby reducing costs and creating a clear pricing edge
among their competitors.
#ompetitive &nalysis
Premier #ecycle Enterprise competiti!e edge rests with its pro/imity to its target mar1ets,
as well as the industry 1nowledge, reputation and contacts of its senior management.
Their many years of direct e/perience ha!e led them to identify this uni2ue opportunity
and put together the technology and sources to ta1e ad!antage of it. Their reputation in
the specific mar1et segment will result in the achie!ement of longterm commitments for
our production.
Marketin" Strate"y
The 3ompany has chosen to focus on the production of plastic pac1aging materials from
recycled postconsumer be!erage bottles. 8ecause of the industry e/perience and
e/pertise of the management, 0 ha!e identified a significant a!ailable mar1et in the
8angladesh. 7ll of my initial mar1eting strategy will be to secure contracts in that
segment, and after reaching full planned capacity, loo1 to grow in concert with that
segment and related mar1ets..
Sales Strate"y
8ecause of the uni2ue e/tensi!e e/perience and reputation of my management in the
3ompany5s chosen industry segment, 0 am able to identify all of the potential customers..
To mar1et the products, the 3ompany will use a number of sales agents=bro1ers well
1nown to the founders . 7ll of these seasoned !eterans ha!e a customer base of their own,
ha!ing de!eloped successful relationships with their clientele o!er the years. Their
customer base is currently demanding product so they can e/pand upon their current
base. Of course, they will e/pand that to new customers when product is a!ailable from
Premier #ecycle Enterprise .
Sales )orecast
The sales forecast is based on the assumption that 0 will sell all of the highest
!alue e/truded products that we can produce. 0n addition, it is e/pected that there will be
amounts of refined fla1e surplus to our e/trusion capacity. This fla1e will be sold to
other manufacturing companies. There is a continuing strong demand for fla1e and
e/truded products made from recycled PET.
%ales 9orecast Fear $ Fear ) Fear ( Fear * Fear '
;nit %ales
#ecycled 9la1e PET )-,'((,<-- => $),B((,@-- => - => - => - =>
E/truded #oll %toc1 %heet B,(*$,*-- => )B,B?*,<-- => (-,B--,--- => (-,B--,--- => (-,B--,--- =>
E/truded %trapping - => *,*@$,'-- => $',*--,--- => $',*--,--- => $',*--,--- =>
Total ;nit %ales )B,B?',--- => *<,)--,--- => *<,)--,--- => *<,)--,--- => *<,)--,--- =>
;nit Prices Fear $ Fear ) Fear ( Fear * Fear'
#ecycled 9la1e PET -.*? => -.*?=> -.'- => -.') => -.'' =>
E/truded #oll %toc1 %heet -.?- => -.?*=> -.?? => -.B$ => -.B' =>
E/truded %trapping -.-- => -.@' => $.-- => $.-' => $.$- =>

%ales #ecycled 9la1e PET @,)*-,$)- => <,-<*,-$B => - => - => - =>
E/truded #oll %toc1 %heet ',B(B,@B- => )$,))),B($ => )(,?<@,@-- => )*,@'B,(@' => )<,)-<,($' =>
E/truded %trapping - => *,)<<,@)' => $',*--,--- => $<,$?-,--- => $<,@*-,--- =>

Total %ales $',-?@,$-- => ($,''(,??* => (@,$<@,@-- => *$,$)B,(@' => *(,$*<,($' =>
"irect ;nit 3osts Fear $ Fear ) Fear ( Fear * Fear '
#ecycled 9la1e PET -.)? => -.)B => -.)@ => -.($ => -.() =>
E/truded #oll %toc1 %heet -.)? => -.)B => -.)@ => -.($ => -.() =>
E/truded %trapping -.-- => -.)B => -.(- => -.($ => -.(( =>
"irect 3ost of %ales
#ecycled 9la1e PET ',**$,*-* => (,'?$,-(( => - => - => - =>
E/truded #oll %toc1 %heet ),)$-,*?$ => B,-(*,('? => B,@@B,<-' => @,**B,'(' => @,@)-,@<) =>
E/truded %trapping - => $,)'?,<)- => *,<)-,--- => *,??*,--- => ',-B),--- =>
%ubtotal "irect
3ost of %ales ?,<'$,B?'=> $),B<(,-$-=> $(,<$B,<-'=> $*,))),'('=> $',--),@<)=>
Mana"ement Summary
The founders form the senior management group. %e!eral 2ualified candidates ha!e been
identified for the position of plant manager. The balance of the employees will be hired
and trained during the e2uipment purchase and installation phase (first fi!e months
after funding). 8ecause the sales management function will be the responsibility of mine,
with proEected use of familiar sales agents, there are no plans for additional inside sales
people or managers.
Or"ani-ational Structure
The Organizational %tructure of is planned to be a simple and traditional one. 7ll
recycling and manufacturing operations will report to the 3OO. 7ll administrati!e and
finance functions will report to the 39O. 8oth the 3OO and 39O will report to the 3EO,
who will also ha!e the responsibility for %ales and 4ar1eting.
&ppendi.

Startup fundin"
%tartup 9unding
%tartup E/penses to 9und )$-,--- =>
%tartup 7ssets to 9und *,?@-,---=>
Total 9unding #e2uired ',---,---=>
7ssets
.oncash 7ssets from %tartup *,$*',---=>
3ash #e2uirements from %tartup <*',---=>
7dditional 3ash #aised -=>
3ash 8alance on %tarting "ate <*',---=>
Total 7ssets *,?@-,---=>
Aiabilities and 3apital
Aiabilities
3urrent 8orrowing -=>
Aongterm Aiabilities B--,---=>
7ccounts Payable (Outstanding 8ills) -=>
Other 3urrent Aiabilities (interestfree) -=>
Total Aiabilities &B--,---=>
3apital
Planned 0n!estment
9ounders $,'--,---=>
0n!estor ),?--,---=>
7dditional 0n!estment #e2uirement -=>
Total Planned 0n!estment *,)--,---=>
Aoss at %tartup (%tartup E/penses) ()$-,---=>)
Total 3apital (,@@-,---=>
Total 3apital and Aiabilities *,?@-,---=>
Total 9unding ',---,---=>
Sales forecast%
%ales 9orecast Fear $ Fear ) Fear ( Fear * Fear '
;nit %ales
#ecycled 9la1e PET )-,'((,<-- => $),B((,@-- => - => - => - =>
E/truded #oll %toc1 %heet B,(*$,*-- => )B,B?*,<-- => (-,B--,--- => (-,B--,--- => (-,B--,--- =>
E/truded %trapping - => *,*@$,'-- => $',*--,--- => $',*--,--- => $',*--,--- =>
Total ;nit %ales )B,B?',--- => *<,)--,--- => *<,)--,--- => *<,)--,--- => *<,)--,--- =>
;nit Prices Fear $ Fear ) Fear ( Fear * Fear'
#ecycled 9la1e PET -.*? => -.*?=> -.'- => -.') => -.'' =>
E/truded #oll %toc1 %heet -.?- => -.?*=> -.?? => -.B$ => -.B' =>
E/truded %trapping -.-- => -.@' => $.-- => $.-' => $.$- =>

%ales #ecycled 9la1e PET @,)*-,$)- => <,-<*,-$B => - => - => - =>
E/truded #oll %toc1 %heet ',B(B,@B- => )$,))),B($ => )(,?<@,@-- => )*,@'B,(@' => )<,)-<,($' =>
E/truded %trapping - => *,)<<,@)' => $',*--,--- => $<,$?-,--- => $<,@*-,--- =>

Total %ales $',-?@,$-- => ($,''(,??* => (@,$<@,@-- => *$,$)B,(@' => *(,$*<,($' =>
"irect ;nit 3osts Fear $ Fear ) Fear ( Fear * Fear '
#ecycled 9la1e PET -.)? => -.)B => -.)@ => -.($ => -.() =>
E/truded #oll %toc1 %heet -.)? => -.)B => -.)@ => -.($ => -.() =>
E/truded %trapping -.-- => -.)B => -.(- => -.($ => -.(( =>
"irect 3ost of %ales
#ecycled 9la1e PET ',**$,*-* => (,'?$,-(( => - => - => - =>
E/truded #oll %toc1 %heet ),)$-,*?$ => B,-(*,('? => B,@@B,<-' => @,**B,'(' => @,@)-,@<) =>
E/truded %trapping - => $,)'?,<)- => *,<)-,--- => *,??*,--- => ',-B),--- =>
%ubtotal "irect
3ost of %ales ?,<'$,B?'=> $),B<(,-$-=> $(,<$B,<-'=> $*,))),'('=> $',--),@<)=>


Ima"e of Premier Recycle/s products%

(.ecutive Summary
The growing utilization of plastics in industrial and consumer applications, combined
with increased consumer awareness surrounding solid waste recycling, has led to an
increased demand for recycled plastic resins and products. One of the fastest growing
types of collected plastic materials for recycling is polyethylene terephthalate ("PET")
from postconsumer be!erage and water bottles. Premier #ecycle Enterprise will
capitalize on the opportunities in the recycled resin and pac1aging mar1ets through two
main di!isions: a #ecycling "i!ision and a Pac1aging "i!ision.
Premier #ecycle Enterprise will create a PET cleaning and refining plant located in the
3hittagong ,87.+A7"E%D . 0ts initial capacity will be )- million pounds, and it will
utilize postconsumer bottle feed stoc1 presently collected in 3hittagong , "ha1a,
#aEshahi, 8arishal ,%ylhet , Ghulna %tates, which collect o!er $-- million pounds per
year. The 3ompany will be !ertically integrated, and use almost all of its recycled
material in its Pac1aging "i!ision. 7ny surplus materials (clean fla1e) produced will be
sold to outside companies. The e/truded sheet may then be sold to manufacturers, who
will thermoform it into high!isibility pac1aging or use it in other high !alue added
manufacturing operations. The strapping will be sold to companies who ship large
pac1ages or pallets, such as the lumber milling industry. The 3ompany currently has
commitments a!ailable from customers to purchase all of the product produced.