PROJECT REPORT
Of Eco-friendly Paper Plates Manufacturing Unit under PMEGP Scheme
1. INTRODUCTION
Disposable food service products were initially developed to enhance
public health by improving practices in the food service industry. This
requirement when combined with the environmental threat faced by us at the
turn of the 20th Century and need of strong efforts in order to conserve the
environment gave birth to the concept of PAPER PLATES. There are several
inherent advantages in using Paper Plates as compared to Plates of other
materials. These Paper Plates are gaining popularity all across the globe as a
beautiful and stylish way of minimizing exposure to food borne infections.
Paper Plates have numerous advantages like; they are manufactured in a
very simple process using Food Grade Raw Materials with least waste and are
easiest to recycle. They are ideal for individual servings at all kinds of parties,
functions, picnic occasions, marriages, chat, tea & food joints, etc, non-toxic in
nature, the shapes and surface designs on these paper plates are attractive and
present an inviting look. These paper plates can also be custom printed with an
outlet’s logo, brand punch line or advertising message.
Available in a wide variety of designs, textures, colours and sizes,
disposable paper plates are gorgeous, stylish and eloquent. Adding premium
aura wherever used, these plates are made with utmost care to detail and are a
unique addition to any table setting.
Hence, the future of the proposed unit for manufacturing paper plates is
very vibrant and will be a gesture towards supporting the usage of Eco-friendly
products.
2. MARKET POTENTIAL
It is necessary to recognize that in a globalized economic environment the
business outlook for any paper product will depend on the global demand
supply balance for that product. For paper plates there is production less
capacity at a global level which was built up over the last decade or so in
response to a boom in global growth and increased levels of awareness of eco
friendly products. The growth of the manufacturing sector will be largely
influenced by the growth consumption.
A wide range of paper plates are now produced and marketed in India.
The paper plates are reckoned to be a high potential business for India.
Manufacturing paper plates is the purpose of satisfying needs and wants
of consumers in the market place. Developing a strategy for delivering an
effecting combination of food grade quality and cost effective features for
consumers within the target market is done.
The prospects of paper plates depend on the value of customers who
utilize it. But in our country paper plates are used by all the people and are easy
to use, hygienic and eco-friendly. Hence, the per capita consumption has
increased and the demand for it is recognized. While the demand for paper
plates has shown a good growth, the company will be successful in strategizing
its market operations.
As paper plates are a product of daily consumption and necessity, their
marketing will not be a problem as the consumers are aware of the advantages
of using paper plates. The raw materials are indigenously available and the
manufacturing process is also simple.
“GREEN DISH INDUSTRY” has decided to market their paper plates
to wholesalers, educational institutions, companies, industrial canteens,
restaurants, fast foods, catering people, tea shops, paper product dealers and
super markets.
“GREEN DISH INDUSTRY” has made marketing survey and potential
for our product and had very good responses. We have the regular market for
our manufacturing capacity. In future “GREEN DISH INDUSTRY” will
increase the capacity to meet the demand of our product. So it will not be a
difficult to find market for paper plates in this growing paper product industry.
The increasing demand is being vast, thrust for the development of this
industry is very big. “GREEN DISH INDUSTRY” will assimilate novel and
innovative methods to improve its competitiveness for its growth and contribute
to the country.
In conclusion, I would like to stress that present status of the industry is
in very good scope and this industry will provide ample employment
opportunities to the underprivileged of our society.
Therefore to sum up the setting up of “PAPER PLATE” manufacturing
unit is predictable and feasible for its marketing aspects.
3. MARKET COMPETITORS OVERVIEW
Paper Plates Manufacturing business is dominated by small-scale units,
especially under schemes like PMEGP, Start up India, etc. This segment
contains unorganised local units, semi-automatic units, large manufacturers like
Swayam Paper, Beco India, Eco-friendly startups like Greenware, Paper Man.
There is a shift towards eco-friendly alternatives to plastic and demand from
food delivery growing rapidly. Automation adoption is helping mid sized
players scale faster.
4. MANUFACTURING PROCESS OF PAPER PLATES
We have proposed to use the fully automatic paper plate forming machine
for our manufacturing process of paper plates.
The general structure of paper plate forming machine is very simple. The
raw material is loaded in to the machine. As the paper roll moves, the dye is
pressed and kept in the position giving time for plate forming. Then the dye is
released and paper plate is taken out.
5. ABOUT THE PROMOTER
Mr. Naresh Kumar Yadav is the Promotor of the Business Firm “GREEN
DISH INDUSTRY”. The Promoter has done an indepth study of the
Project’s feasibility and has the relevant experience to successfully implement
the project. The Promoter is confident about the market potential of his
Project and he is capable to overcome competition & sales as provided in the
financial projections of this report.
Name of the Promoter : NARESH KUMAR YADAV
Constitution of the Firm. : PROPRIETORSHIP
Age/Sex : 53Years/MALE
Educational Qualification : Graduate
Permanent Address : Village – Bebejia Gaon, P.O. – BP Tiniali, Near
Valentina De Force Pvt LTD, Block – Gabharu,
District - Sonitpur Assam 78454
Unit Address : Dag No.– 4677 Patta No.– 351 Village Bebejia
Gaon
PO- BP Tiniali Near Valentina De Force Pvt LTD.,
Block- Gabharu, District- Sonitpur, Assam 784154
UDYAM : UDYAM-AS25-0011833
PAN/AADHAAR. : ABFPY0310D/393674023970
Contact Details. : 9996661524 / nareshkumaryadav1282@[Link]
Category of the Promoter : OBC & Ex Serviceman
Marital Status : Married
Nationality : Indian
Working Experience : 7Years experience in manufacturing operations.
Skills. : Knowledge of local market and business
Objective. : To establish sustainable business that generates
employment and
contribute to eco-friendly practices.
Project Description. : Setting up of Paper Plates Manufacturing Unit
Moratorium Period. : 6 Months
PMEGP Loan Applied. : Rs. 50,00,000(95%)
Promoter’s Contribution. : Rs. 2,63,158 ( 5%)
Subsidy Expected. : Rs. 17.50 Lakhs (35% for rural OBC Category)
6. BASIS AND PRESUMPTION OF THE PROJECT
i. The process of manufacturing is on the basis of single shift of eight hours
per day with three hundred working days in a year.
ii. Labour and wages mentioned in profile are as per prevailing local rates.
iii. Interest rate at 9.5% considered in the project
iv. The promoter contribution will be 5% of the total project cost. However it
may be vary for women entrepreneurs.
v. Subsidy and other concessions may be applicable as per the MSME Act
of Assam.
vi. The capacity of the plant 45,000 nos. of paper plates per day on the single
shift basis.
7. INSPECTION AND QUALITY CONTROL
“GREEN DISH INDUSTRY” will strictly adhere to the International
FDA standards and Indian BIS standards in the process of manufacturing paper
plates from procuring high quality food grade raw materials to hygienic
methods of packing, as we know that the satisfaction of the customers is the
foundation of any business.
8. PRODUCTION CAPACITY PER ANNUM
Quantity: 45,000 Nos. of paper plates per day; 1,35,00,000 Nos. of paper
plates per annum.
9. POLLUTION CONTROL
The technology adopted for making paper plates is eco-friendly. Plate
forming process is totally automatically done by the machine, only feeding and
packaging involves manual work. The scrap papers created out of this
manufacturing process also can be sold for recycled paper converters. Hence
there is no chance of any pollution out of this industrday
10. ELECTRICAL HP DETAILS
NO. OF H.P.
[Link]. NAME OF THE MACHINE
M/C CONNECTED
1. Fully Automatic Paper Plate
2 6
Forming Machines
1 2
2 Circle Cutting Machine
1 2
3.. Packaging Machine
4. Other electrical fittings/lighting
__ 2
etc.
Total H.P Connected 12
11. FINANCIAL ASPECTS
(a) Land and Building:
[Link]. DESCRIPTION AMOUNT (Rs.)
1 Land & building (3000 Sq,ft.) Own
(b) Machinery and Equipment:
RATE
[Link]. DESCRIPTION QUANTITY
(Rs)
1. Fully Automatic Double Die Paper
Plates Forming Machine [Link]. 14,17,000
2. Wrinkle Dies [Link]. 1,50,000
3. Circle Cutting Machine [Link]. 3,03,000
4. Packaging Machine [Link]. 2,25,000
5. Tools 55,000
TOTAL 20,50,000
12. RECURRING EXPENDITURE (PER MONTH)
(A) Raw Material per Month:
RATE AMOUNT
[Link]. DESCRIPTION QUANTITY
(Rs) (Rs.)
1 Printed SBS Circles 7000 kgs. 70.00 4,90,000
2 Packaging Material 100kgs. _170.00_ 17,000
Total (A) 5,16,000
(B) Salaries & Wages per Month:
[Link] DESCRIPTION NO. SALARY AMOUNT
. (Rs.)
Production cum Marketing
1 1 15,000 15,000
Manager
2 Machine Operators 4 10,000 40,000
3 Checking & Packaging Staff 4 8,000 32,000
4 Office Assistant 1 8,000 8,000
Total 95,000
Perquisites 15% 14,250
Total (B) 1,09,250
(C) Utilities per Month:
[Link]
DESCRIPTION AMOUNT (Rs.)
.
1 Power 20 HP Units 2000@Rs.7.5per Unit 15,000
2 Machine Oil, Grease & other consumables 1,000
Total(C) 16,000
(D) Other Expenses per Month:
[Link]. DESCRIPTION AMOUNT (Rs.)
1 Rent 0
2 Marketing expenses & Advertisement 1,500
3 Postage & Stationery 250
4 Repairs & Maintenance 500
5 Travelling and transportation 1,000
6 Insurance 2050
7 Telephone & Mobile 700
8 Packing Materials 500
Total (D) 6,500
13. TOTAL RECURRING EXPENDITURE PER MONTH
A+B+C+D = Rs. 6,47,750/-
Recurring Expenditure for three months = Rs.19,43,250/-
14. WORKING CAPITAL ASSESSMENT
[Link]. DESCRIPTION AMOUNT (Rs.)
1 Raw Material (Requirement for one month) 5,16,000
Work in progress (Requirement for one
2 1,31,750
month)
Total 6,47,750
15. FINANCIAL ASPECTS
14. a) Total Project Cost
Plant & Machinery Rs. 20,50,000
Industry Shed. Rs. 14,67,000
Electrification Rs. 46,000
Furniture, Racks. Rs. 1,60,000
Preliminary Expenses. Rs. 40,000
Working Capital Rs. 15,00,000
Total Rs. 52,63,158
14. b) Means and Finance
Promoter contribution Rs. 2,63,158
Term Loan. Rs. 35,00,00
CC Loan. Rs. 15,00,000
Total Rs. 52,63,158
Finance required from the Bank Rs.50,00,000/-
16.c) Cost of Production per Annum:
[Link]
DESCRIPTION AMOUNT (Rs.)
.
1 Total recurring cost 77,73,000
2 Interest on Bank Loan @9.5% 2,87,296
Total Depreciation on Machinery, Shed,
3 Electricification and Furniture as per 5,30,500
company law.
Total 82,68,000
17. TURNOVER PER ANNUM
By sale of 1,35,00,000 nos. of paper plates of sizes at market value :
On an average @ Rs.0.73X 1,35,00,000 plates
Total Turnover per Annum : Rs. 98,55,000/-
18. PROFIT PER ANNUM
Turnover – Cost of production
Rs.98,55,000 – Rs. 87,68,000 = Rs. 10,87,000/-
19. PERCENTAGE OF PROFIT ON SALES
% of profit on sales = Profit per annum X 100
Turnover
= 10,87,000X 100
98,55,000
= 11.03%
20. RATE OF RETURN
Rate of Return = Profit per annum X 100
Total Capital Investment
= 10,87,000X 100
37,63,158
= 28.89%
21. BREAK EVEN ANALYSIS
1) Fixed Expenditure per Annum
Interest on Loan Rs. 4,95,000
Total Depreciation Rs. 5,00,000
40% of salary and wages Rs. 5,24,400
40% of other expenses & utilities Rs. 1,08,000
Rs. 16,27,400/-
2) Breakeven point
Breakeven point = Fixed cost per annum X 100
Fixed cost per annum + Profit per annum
= 16,27,400 X 100
16,27,400 + 10,87,000
= 59.96%
Implementation Schedule
The project can be implemented in 3 to 4months'time as detailed below:
[Link]. Activity Time Required
(in months)
1 Acquisition of premises 1
2 Construction (if applicable) 1-2
3 Procurement & installation of Plant & Machinery 1
4 Arrangement of Finance 1
5 Recruitment of required manpower 1
Total time required (some activities shall run concurrently) 3-4 Months