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RECYCLING PLASTIC

PLAN
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 .2.0
Future outlook and trends..2.1
Analysis of competitors.2.2
Market segmentation 2.3
Industry forecast2.4
Description of Venture3.0
Product..3.1
Services3.2
Size of business3.3
Office equipment and personnel..3.4
Background of entrepreneurs..3.5.
Marketing Plan..4.0
Form of ownership..4.1
Identification of partners4.2
Authority of principals4.3
Management team backgrounds.4.4
Roles and responsibilities
of members of organization4.5
Organization Plan ..5.0
Form of Ownership ....5.1
Identification of Partners.. 5.2
Management Team Background ..5.3
Role and Responsibilities..5.4
Assessment of Risk..6.0
Evaluate weakness of business ...6.1
New technologies6.2
Financial Plan7.0
Sources of funds..7.1
Performa income statement7.2
Performa balance sheet7.3
Cash flow projections..7.4
Appendix..8.0

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

HDPE

Baled/lumps/fluff/powder & etc

Natural /others

LDPE

Baled/lumps/fluff/powder & etc

Natural /others

LLDPE

Baled/lumps/fluff/powder & etc

Natural / Others

PET
PS
PVC

Baled/lumps/flakes/rolls & etc

mix

Lumps/Regrind/Rolls

Natural /others

Baled/lumps/fluff/Rolls

Natural /others

BOPP (ROLLS) all size mix rolls

printed / unprinted

PET (ROLLS) all size mix rolls

printed / unprinted

PP (ROLLS)

all size mix rolls

Audio/Video
damage/broken/crush/rolls
Cassettes / tapes
Tetra Pack
PE/Allu Coated Sheets/Rolls
Reels/sheets/etc

printed / unprinted

Quantity
full
container
full
container
full
container
full
container
full
container
full
container
full
container
full
container
full
container

any

full
container

Unprinted

full
container

Description
industrial/post consumer.
industrial/post consumer.
industrial/post consumer.
Post consumer
Bottle grade, preform
INJECTION
extrusion
Rejects/Surplus/Over
Produce materials
Rejects/Surplus/Over
Produce materials
Rejects/Surplus/Over
Produce materials
rejected/surplus/
overproduce tapesFor
recycling
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 costsIn many cases, this barrier is the most daunting one for small
businesses, we have a huge investors and we encourage more to promote us.

KnowledgeLack 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 saturationIt 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 MC070400829 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 PRODUCTS
We 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 MC070400829 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 VU 3rd 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 PRICING
MC070400829 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

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

Recycled Bags

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 FORECAST


Milestone
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

5.0 ORGANIZATION PLAN


5.1 FORM OF OWNERSHIP
MC070400829 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 PARTNERS
NOORUDDIN , one of the active partner is the student studying in VU MBA 3 rd Semester.
Alongwith Investors from different part of the Pakistan enjoying their return for the initial
investment they have made to purchase Bonds of MC070400829
5.3 AUTHORITY OF PRINCIPALS

Chief Executive Office alongwith the Top, Lower


And Middle Managers playing their parts. Also
to focus on stakeholder whereas the future
Investors

5.4 MANAGEMENT TEAM BACKGROUND


MC07040829 currently has commitments from customers to purchase all of the initial
production capacity. Excess flake will be sold to outside customers. All contractual planned
and skilled labor from top managers upto lower plant workers will be higher based on
expertise and qualification.
Nooruddin, President and CEO, has a history of working in this type of industries for the last
5 years as a junior and have the capabilities to work with other to encourage potential hidden
inside the plastic business
Mr. Arif Karim, Investor in Money Market for the last 10-15 years have a portfolio of more
than Rs.1,000,000 in different securities
Ms. Sarah Zain, SEVP and EVP in Garfield Bank in Forex and Treasury Division and have
the founding that this business have potentials in the future to attract investor
5.5 ROLES AND RESPONSIBILITIES OF MEMBERS OF ORGANIZATION
Production Personnel
Responsibilities
Shift Supervisor

To supervise all day to day operation and keep it going

Maintainence Techs

To 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 resold 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

7.0 FINANCIAL PLANS


7.1 SOURCES OF FUNDS
o Stakeholder
o Shareholders
o Investors
o Money Market

8.0 APPENDIX
Bangs, David H. The Business Planning Guide: Creating a Plan for Success in Your Own
Business. Upstart, 1998.
Belkin, Lisa. "The Art of Making a Plan and Making It Happen." New York Times. December
18, 2000.
Covello, Joseph A., and Brian J. Hazelgren. The Complete Book of Business Plans.
Sourcebooks Trade, 1994.
"How to Write a Great Business Plan." Harvard Business Review. July-August 1997.
Jones, Rebecca. "Business Plans: Roadmaps for Growth and Success." Information Outlook.
December 2000.
Kravitt, Gregory I. Creating a Winning Business Plan. Probus, 1993.
Massarella, Gregory J. et al. How to Prepare a Results-Driven Business Plan. Amacom,
1993.
Pinson, Linda. Anatomy of a Business Plan. 2d ed. Enterprise Dearborn, 1993.
"Your Business Plan." Phoenix Business Journal. September 29, 2000