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Preliminary Project Report On PLASTIC RECYCLING

Submitted by:
Amogh (66) Abhijeet (61) Ravikiran (98) Sharat kumar (102) Santosh .S (101)

Preliminary Project Report


1. General information Name of entrepreneur: M.N.Rao Date of birth : 1/4/1978 Project : plastic recycling manufacturing unit Location : Hubli Address : Rayapur, Hubli Type of organization : sole trading concern. 1.1Educational qualification Qualification SSLC PUC B.E. M.B.A 1.2 Work Experience Organization Cruze Plastics 1.3Annual income Cash in hand 4,00,000 Position Production Manager Nature of work Duration 3 years Institution Sharadamba school S.G college S.J.M college J.B college Year of passing 1994 1996 2000 2002

1.4 Details of proposed project Manufacturing unit 2. Machinery and Equipments Sl no Particulars 1 PET bottle recycling production line* TOTAL Quantity 1 Rate 11,25,000 Amount 11,25000 1,25,000

* 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 assets Sl no Particulars 1 2 Furniture Others TOTAL Amount 15,000 5,000 20,000

2.2 Preliminary expenses Sl no 1 2.3 Production programme No of working days No of working hours Installed capacity Utilized capacity 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 are firs sorted according to their nature and cellular structure to be processed with similar settings. 300days 8 hours / days 72,000 tons/ yr 45,000 tons / yr Particulars Registration TOTAL Amount 5000 5000

Sorting
Post-consumer PET is often sorted into different color fractions: transparent or uncolored PET, blue and green colored PET, and the remainder into a mixed colors fraction. The emergence of new colors (such as amber for plastic beer bottles) further complicates the sorting process for the recycling industry.

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 (a base material for the production of clothing, pillows, carpets, etc.), polyester sheets, strapping, or back into PET bottles etc.

Expenses
3. Raw materials Sl no 1 Particulars Plastic bottles TOTAL Quantity 45,000 tons Rate 14 Amount 6,30,000 6,30,000 Amount 2,40,000 2,40,000

3.2 utilities Sl no 1

Particulars Electricity TOTAL

3.3 Man power Sl Particulars no 1 Supervisor 2 Skilled 3 Un-skilled TOTAL

Members 1 2 3

Salary / months 4,000 3,000 2,500

Amount 48,000 1,08,000 60,000 2,16,000

3.4 Repairs and maintenances Sl no Particulars 1 Repairs expenses TOTAL

Amount 40,000 40,000

3.5 administration expenses Sl no Particulars 1 Rent (8,000*12) 2 Misc TOTAL

Amount 96,000 10,000 106,000

Market potential
As per market survey demand for plastics in the Hubli is 2,00,000 tons Supply from local suppliers is 1,20,000 And unmet demand is 80,000 so project is feasible. 4. Working Capital Sl no 1 2 3 4 5 6 Particulars Raw materials (630000/12) Salary and wages(216000/12) Utility(240000/12) Administration(106000/12) Repairs and maintenances(40000/12) Rent TOTAL Amount 52500 18,000 20000 8833 3333 8000 110666

4.1 Total cost Sl no s1 2 3 4.2 Means of finance Sl no 1 2

Particulars Fixed cost Working capital Preliminary expenses TOTAL

Amount 11,25,000 110666 5,000 1240666

Particulars Proprietors fund (1240666*30%) Term loan (1240666*70%) TOTAL Interest 43423 34739 26054 17369 8685 130270 Principle amt 173693 173693 173693 173693 173693 868465

Amount 372200 868466 1240666 Installment 217116 208432 199747 191062 182378 998735

4.3 interest calculation Year o/s amount 1 868466 2 694773 3 521080 4 347387 5 173693 TOTAL

4.4 Depreciation Sl no 1 2 5 .Sales revenue Year 1 2 3 4 5 Particulars Machinery (1125000*10%) Furniture (15000*5%) TOTAL Quantity 45000 50000 55000 60000 65000 Rate 33 33 33 33 33 Amount 112500 750 113250 Amount 1485000 1650000 1815000 1980000 2145000

PROFITABILITY ANALYSIS YR 1 Sl no 1 2 A B C D E F G H I Particulars Sales revenue Less costs Raw materials Utility Man power Administration Repairs and main Interest Depreciation Rent Principle amt PROFIT Amount 45,000*33 6,30,000 2,40,000 2,16,000 1,06,000 40,000 43,423 1,13,250 96,000 1,73,693 Amount 14,85,000

1658366 (-)173366

PROFITABILITY ANALYSIS YR 2 Sl no 1 2 A B C D E F G H I Particulars Sales revenue Less costs Raw materials Utility Man power Administration Repairs and main Interest Depreciation Rent Principle amt PROFIT Amount 50,000*33 6,30,000 2,40,000 2,16,000 1,06,000 40,000 34739 1,13,250 96,000 1,73,693 Amount 16,50,000

1649682 318

PROFITABILITY ANALYSIS YR 3 Sl no 1 2 A B C D E F G H I Particulars Sales revenue Less costs Raw materials Utility Man power Administration Repairs and main Interest Depreciation Rent Principle amt PROFIT Amount 55,000*33 6,30,000 2,40,000 2,16,000 1,06,000 40000 26054 1,13,250 96,000 1,73,693 Amount 18,15,000

1640997 +174003

PROFITABILITY ANALYSIS Yr 4 Sl no 1 2 A B C D E F G H I Particulars Sales revenue Less costs Raw materials Utility Man power Administration Repairs and main Interest Depreciation Rent Principle amt PROFIT Amount 60,000*33 6,30,000 2,40,000 2,16,000 1,06,000 40000 17369 1,13,250 96,000 1,73,693 Amount 19,80,000

1632312 +347688

PROFITABILITY ANALYSIS Yr 5 Sl no 1 2 A B C D E F G H I Particulars Sales revenue Less costs Raw materials Utility Man power Administration Repairs and main Interest Depreciation Rent Principle amt PROFIT Amount 65,000*33 6,30,000 2,40,000 2,16,000 1,06,000 40000 8685 1,13,250 96,000 1,73,693 Amount 21,45,000

1623628 +521372

1st yr FIXED COST Manpower Adm exp Principal Depreciation Rent Interest Repair and maintenance TOTAL 2nd yr FIXED COST Manpower Adm exp Principal Depreciation Rent Interest Repair and maintenance TOTAL 3rd yr FIXED COST Manpower Adm exp Principal Depreciation Rent Interest Repair and maintenance TOTAL

Amount VARIABLE COST 2,16,000 RM 1,06,000 Utilities 1,73,693 1,13,250 96,000 43423 40000 788366 Amount VARIABLE COST 2,16,000 RM 1,06,000 Utilities 1,73,693 1,13,250 96,000 34739 40000 779682 Amount VARIABLE COST 2,16,000 RM 1,06,000 Utilities 1,73,693 1,13,250 96,000 26054 40000 770997

Amount 6,30,000 2,40,000

8,70,000 Amount 6,30,000 2,40,000

8,70,000 Amount 6,30,000 2,40,000

8,70,000

4th yr FIXED COST Manpower Adm exp Principal Depreciation Rent Interest Repair and maintenance TOTAL 5th yr FIXED COST Manpower Adm exp Principal Depreciation Rent Interest Repair and maintenance TOTAL

Amount VARIABLE COST 2,16,000 RM 1,06,000 Utilities 1,73,693 1,13,250 96,000 17369 40000 762312

Amount 6,30,000 2,40,000

8,70,000

Amount VARIABLE COST 2,16,000 RM 1,06,000 Utilities 1,73,693 1,13,250 96,000 8685 40000 753628

Amount 6,30,000 2,40,000

8,70,000

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 months 8,69,787 in ? =8,69,787*12/9,05,000 = 11.53 months i.e Within 1year