Business Plan

Business plan

Of ECO FASHION PAPER BAGS

By- SANTOSH WATPADE (MBA finance)

[email protected] , [email protected]

Eco-Fashion Bags Pvt. Ltd. MIDC, Patalganga, Dist- Raigad, Maharashtra. Email- ecof ashion @gami l.com, paperba gs@ya hoo.com Telephone No. Fax No.-

1

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Table of contents Sr. No.

Topic Head

Page No.

1

Table of contents

03

2

Executive summary

04

3

Company profile

05

4

Product profile

07

5

Marketing plan

09

6

Operation plan

14

7

Human resources plan

18

8

Finance plan

22

9

Abbreviations













Executive Summary EFBPL Company offers eco-friendly paper bags to the people who adore nature at the Same time believe in following current fashion trends. Our clients are malls, multiplexes, Departmental stores, gift shops, hyper markets,

Changing lifestyle & fashion has been a major factor of growth of this industry. Ban

EFBPL Company is a private company formed by eleven promoters. Promoters will

Because of our endless efforts we are confident to achieve our vision which is \u201cT become a proactive, integral & responsible member of our environment & communities & become a strong global supply base for world class products.\u201d













Company profile: Eco fashion paper bags pvt. Ltd. Is one of the emerging paper bags company in

Vision : To become a proactive, integral and responsible member of our environment and communities making us a strong global supply base for world class products.

Mission: To constantly grow the customers by designing superior and cost effective product through contribution of ideas.

Values: Excellence













Company logo:

The logo contains the picture of earth supported by three green arrows. The blue

We are focussing on automated processes and quality of products where as most of the













PRODUCT PROFILE: Environmental issues have been driving market towards use of more eco-friendly

We are using recycled paper to produce eco friendly paper bags as it not only stop cutting of trees but also prevent degradation of environment. Our product is an eco friendly and also stylish, trendy and of high strength and unique

Products range:

The bags of six sizes are being manufactured, Size ranges from;

18”×24” to 40”×50”. We can also manufacture bags according to the customers‟ specifications & requirement. Product strength:

Our entire product having good busting strength and it is between 18 to 36 g/inch. Product quality:

We are committed to produce superior quality products. Raw material is being purchased from selected reputed supplier.















Total Company Risk Product Market Risk Customer loss Product Obsolescence

Financial Risk Capital cost change Inflation

Legal Risk Shareholder lawsuits Employee discrimination lawsuits

Regulatory Risk Environmental law change Price support ends

Tax Risk Income tax increases VAT and Excise tax increases

Input risk Input price increases













MARKETING PLAN EXECUTIVE SUMMARY (Marketing): With paper bags we would first target the big cities of Maharashtra like Mumbai,

The current demand of the product in six cities is around 40lakhs/month and is

Fashion and lifestyle of the customers are also changing has been an important factor for the growth of this industry. Consumer acceptance and brand recognition are the major barriers for us to enter in

Our product quality is as good as our competitors but our USP is price of products, we

We are ready to provide the higher credit than the existing supplier initially. We are













SWOT analysis Strength:

Low cost with high quality

Weaknesses:

Entry.

Not able to enjoy economy of scale. Opportunities:

Scope of export.

Environmental conscious customer. Threats:

Large number of competitors.













MARKETING STRATEGY Marketing objective: Within three years we would like to expand our business to rest of the big cities of

Target market: Our customers would be malls, multiplexes, hypermarkets, supermarkets,

Demand forcast: The Demand of the product in six cities is around 40lakhs units/month.













Strategies: Low pricing strategy we are using because of large number of competitors in the

Promotion: For promoting our product we using following strategies like; Discounts,

Friends‟ network, Commission to sale person, credit to customers, catalogs, Contract with the NGOs working on environment friendly projects like use of paper bags, Travelling and other incentives etc. Promotion budget would be Rs 3 lakhs for first year, 5 and 8 lakhs for second and third year respectively.

Market research: Data is collected by two ways primary data collection and secondary data. Primary

data through buyers‟ intention survey in which information is collected about their buying intensions, buying quantities, their existence suppliers etc.















Sales forecast: On the basis of buyer intention survey the sales is forecasted to be around 6 lakhs













OPERATION PLAN A) Plant Location:-

The plant location for the manufacturing of paper bags is at PATALGANGA MIDC (RAIGAD) Maharashtra. Distance from Mumbai is 75 kms. Distance from Pune is 77 kms. Size of land= 2000 Sq ft.

Location Advantages:-

1) 2) 3) 4) 5)

Reasonable cost of land. Infrastructure facilities. Transportation facilities. Near to target market. Easy availability of skilled and unskilled labour.













III)

Eylet Machine.

Size of machine= 2‟x 1, 1/2‟x 4‟ (in feet). Production capacity =6000 bags per shift (8 hrs). IV)

D-Shape Eylet Machine.

Size of machine= 2‟x 1.1/2‟x 4‟ (in feet). Production capacity= 6000 bags per shift (8hrs).

C) Plant Layout:The „U‟ shape plant layout is taken into consideration for easy and smooth flow of materials from one machine to another. The sequence of machineries is













FIGURE OF PLANT LAYOUT:-

P A E E -

E -

E -

MATERIAL

L

RAW I













D) Raw Material Requirement:For producing the paper bags the CRAFT Paper is used as a raw material. The required specification is in terms of Busting Factor and GSM of the paper.

Average paper consumption for 1 bag= 125 gm (Avg. of all sizes of bags). In one shift of 8 hours 24000 bags are produced and required approximate 3000

E) Suppliers :The supplier plays an important role for supplying the raw materials on time, at

I)

Name of supplier: - Premium Paper & Board Industries Ltd. Address: - A/604, Kol-Dongri Cooperative Housing Society, Parsiwada







































Annual leave with wages

–

As per the factories Act, 1948 the employees are liable to annual leave with wages if

Holidays-

Every employee will be entitled for holiday for 15 days (including National holidays). It will be decided as per the list of holidays provided by Maharashtra state. Working hours-

The minimum hour of working is 8 hours per day. There will be six working days per













Measures for motivating our employeesAs we stated before, the human workforce is the highly-ranked source for the

At initial stage, we are planning to schedule a small meeting every Saturday before













FINANCIAL PLANNING Assumptions a) Inflation rate may vary between 4%-6%.

b) Sales target will be achieved according market research and production capacity. c) Capital cost may vary but marginally

Financial policies a) The rate of depreciation of fixed assets is 10% per annum















Financial details a) Capital requirement i) Fixed assets Particulars Furniture

Amount Rs.

50000

















































f) Cash Flow Statement Year Particulars

2009-2010

2010-2011

2011-2012















h) Discounted cash flow Statement













Abbreviations

Business Plan

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