WASTE TO WEALTH SERIES

Business Plan for

Manufacturing EGG TRAY
from Waste Paper
650 Trays/Hr (30 Cavity Tray)
or 15,000 Trays/Day

in

Nigeria
Submitted by :

Onella Consulting Pvt Ltd, India

Project Proposal submitted by

WASTE TO WEALTH SERIES

1.

Products Planned and Capacity

Egg Tray

2.

Process Description and Production Flow Chart

3.

Equipment List and Specifications

4.

Plant Details

5.

Project Details

6.

Project Financials

Project Proposal submitted by

WASTE TO WEALTH SERIES

1.

Products Planned, Capacity Planned and Production Details

Egg Tray:
The project involves converting waste paper into useful products like egg trays that are
salable and is in demand. A sophisticated machine, Paper Pulp Moulding System for Egg
Trays (Egg Filler Flats) is used for making Egg Trays.
The machine is capable to manufacture different size and shapes for Trays. Some of the
designs for Egg Trays are as follows:

6 Cavity Egg Tray

30 Cavity Egg Tray

18 Cavity Egg tray

Project Proposal submitted by

WASTE TO WEALTH SERIES

Colour Egg Tray

The plan would be capable for products of all the above products. The
Project is planned with the capacity of 650 Trays/Hr. The plant is designed
for 24hrs working. The plant is capable for production of about 15,600
Trays/Day @100% Capacity. The actual production, which can be achieved
is as follows:
For all the Projection, we have assumed Production of Egg Trays with 30
Cavities.
Daily Production Details:
Year 1
75%

Year 2
80%

Year 3
85%

Year 4
85%

Year 5
85%

11,700

12,480

13,260

13,260

13,260

Year 1
75%

Year 2
80%

Year 3
85%

Year 4
85%

Year 5
85%

3,861,000 4,118,400

4,375,800

Capacity Utilization
Daily Production Units
Egg Trays (Nos)

Yearly Production Details

Capacity Utilization
Yearly Production Units
Egg Trays (Nos)

4,375,800 4,375,800

Working Days in Year assumed as 330 Days. The plant is capable for
working more than 350 Days/Year.
Sales Price is assumed as Naira 40/ Pcs Ex Factory, although the Sales
Price is more than this.

Project Proposal submitted by

WASTE TO WEALTH SERIES

2.

Process Description and Production Flow Chart

Manufacturing Process of Egg Tray Making

Waste Paper, even the lower grades is converted into pulp of 4 % consistency in a critically
designed Hydrapulper. The pulp so formed in the Hydrapulper flow through a pulp screen
and a vibrator before being discharged to a pulp hold. Here wax, alum etc. are added and
diluted to about 1% consistency under constant agitation. The same is then pumped into an
overhead pulp tank with special agitator and discharge section. The pulp by gravity flow
enters the Moulding unit and overflows. The forming mould gets filled with the pulp which
is sucked through the surface of the mould by vacuum pull which leaves a fill of solid paper
fibre in the shape of the mould. The transfer mould gives a puff of controlled compressed
air uniformly, to discharge the wet tray and drop it to the prepositioned pallet for inline
Dryer. After Dryer the tray moves to compacting machine through conveyor.

Project Proposal submitted by

WASTE TO WEALTH SERIES

3.

Equipment List and Specifications

EQUIPMENT DETAILS AND DESCRIPTION

DESCRIPTION
PHOTO
S. No ITEM
NAME
1
Hydrapulper Heavy duty construction in
Mild Steel with rust preventive
coating. The cutter is made of
SS to ensure uniform and
aggressive pulping with less
input of power and time. Fitted
with suitable AC motor with
drive pulley and belt.
This assists to maintain
2
Agitator
uniform consistency of pulp in
the storage tanks

3.

6.

Vibrator
Screen

This assists to screen possible

impurities like metal, plastic,
wood etc. Driven by suitable
AC motor

Vacuum
pump
With motor,
Water
separator
Tank &
water
Pump
Pulp Lifting
Pump
Valves
Piping

This is used to create vacuum

to suck the water from the
moulds. Fitted with suitable AC
motor complete with pulley and
belt

This pump is used to lift the

pulp from the tank to the
No Picture
moulding machine and back.
Driven by a suitable AC motor.
& To Control the process and to
Transport the pulp and water
No Picture

Project Proposal submitted by

QTY

1 No

1 No

1 No

1 No

1 No

1 No

WASTE TO WEALTH SERIES

B. Forming Section:
S.
No
1

ITEM NAME DESCRIPTION

Reciprocating This machine is used to
Moulding
make pulp moulded
products using relevant
machine
moulds from the pulp.
Reciprocating Moulding
machine complete with
pulp tank and with PLC
controlled user-friendly
control panel.

Standard size
To produce 30-cavity egg
30-cavity Egg
trays
tray mould set of standard size
consisting of 4
Nos of forming
moulds and 4
Nos. of
transfer
moulds

Project Proposal submitted by

PHOTO

QTY

1 No

1 Set

WASTE TO WEALTH SERIES

C.

DRYING SECTION

S.
No
1

ITEM NAME DESCRIPTION

2
3.

PHOTO

Line On-Line conveyorised

Drier with Multi-pass
movement to save energy,
space, fuel consumption
etc.
Fitted with suitable drives
and supplied with suitable
control panel. Provided
with insulated walls to
conserve maximum
possible heat energy
Gas heating
To supply heat to the
drying chambers by heating
System
the air using Gas as fuel
Finished
To deliver the dried
Product
product from the Drier to
Delivery
Packing section.
Conveyor

QTY

On
Dryer

D.

PACKING SECTION

S.
No
1

ITEM NAME DESCRIPTION

Compacting
Machine

1 No

1 No
1 No

PHOTO

QTY

To Press and compact the

finished trays to save
shipping space
1 No

4.

Plant Details:

Project Proposal submitted by

WASTE TO WEALTH SERIES

The plant is designed for continuous 3 Shift working. The plant is designed with required automation
keeping Nigeria conditions in mind.
The plant is designed with all the required accessories and utility equipments for continuous working.
Total Building Required

400 - 500 Sq. Mtrs

Recommended Space Required for complete Factory

About 300 Sq Mtrs

(Machine Length 30 Feet, Width 25 Feet and Height 15 Feet)

Total Electricity Required

About 125- 150 KW

The Generators are planned with for Backup generators.

The complete Electricity Network is planned with following options:
a.

Electrical Connection from NEPA

b.

Backup Generation using Diesel Generators

Total Employment Generation

Total Workers

About 20

Engineers and other Staff

About 5

Project Proposal submitted by

WASTE TO WEALTH SERIES

Engineering Drawing and Technical Support
We would offer the following services:
a.

b.

Complete Engineering Services for complete plant including

i.

Building Drawing

ii.

Complete Engineering Service Drawings

iii.

Project Engineering Services

iv.

Project Management Services

Technical Services include

i.

Plant Layout

ii.

Utility Layout

iii

Utility balancing

iv.

Technical know how for Production

v.

Man Power Training

We can also arrange the following Expats for:

1.

Plant In charge

2.

Production In charge

3.

Production Planning & Control

4.

Production Managers for each Section

The expats would be coming as Employees of the company on contract.

Project Proposal submitted by

WASTE TO WEALTH SERIES

Commercial Details:
Cost of Plant, Service Utility, Freight Cost Installation and other Cost:

S.No

Description

1. Egg Tray Making Plant

(As per details given Above)

Qty

Total Amount
(USD)

TOTAL

180,000

Cost of Utility Services and Equipments:

S.No Description
1 Power Plants (NEPA Substation, Diesel Generators)
2 Electrical Set up Including Distribution Panels, Wires,
Cables, Earthing, Indoor Lighting, Outdoor Lighting
3 Pumps
4 Piping
5 Compressor
6 Weighing Scales
7 Others Misc equipments
8 Fire Fighting
Total Utility USD

Total FOB Cost of Plant, Utility & Services

Freight Cost (Lagos Port) Total 3 Containers
Total Installation Cost Including Cost of Travel, Cost
of Expert, Supervision Cost, Visa Fee etc (Local
Lodging and Boarding Expenses to be borne by client)

Total Installed Cost (USD)

Project Proposal submitted by

Nos

Total Amount
(USD)

1 Set
1 Set
1 Set
1 Lot
1 Nos
1 Lot
1 Lot
1 Set

45,000
295,000
15,000
10,000
250,000

WASTE TO WEALTH SERIES

6.

Project Financials

Estimated Calculation of Building:

The Building required is about 300 Sq Mtrs and can be taken on lease. We have assumed
cost of lease of about Naira Million 5.00 in 1st year with increase of 15% yearly.
Estimated Project Cost
S No
1

Description
Plant & machinery

Million Naira
57.64

Pre-operative expenses

5.90

Contingent expenditure

6.35

Working capital (1st year)

5.15

75.05

Total Project cost

Project Highlights:
Details
Break-even point (3rd Year)

37%

Debt service coverage ratio

4.91

Internal rate of return

42%

Pay-back period (Years)

1.30

Interest rate - Term Loan

21%

Promoters Contribution

33%

If you take loan from India the cost would be much cheaper

Project Proposal submitted by

WASTE TO WEALTH SERIES

Estimated Machine Prices:
Particulars

No. of
M/cs

BASIC
COST

Total Cost
USD

Currency

EXRATE

NET
COST

1
1

250,000

250000
250000

USD

200.00

50.00
50.00
50.00

Egg Tray Making Plant

Sub Total

Total
Total of Imported Plant and Machinery Million Naira
Add Import Duty, Clearing Expenses, Local
Transportation etc.

Total Plant and Machinery Cost

13.00%

50.00
6.50

56.50

Calculation of Working Capital:

DESCRIPTION
No. of Months
Required
STOCK OF INVENTORIES
1. Raw Material
-Indigenous

1st Year
Amount Required

0.15

0.11

0.25

0.01

3. Stock of Work-In-Progress

0.04

0.16

4. Stock of Finished Goods

0.10

1.29

2. Consumables
-Indigenous

1.56

Sub Total
SUNDRY DEBTORS
5.Bill Receivable/ Goods in transit
Sub Total
OTHER CURRENT ASSETS/
CONTINGENCIES
6. Utilities
7. Labour & Plant Overheads
8. Factory Overheads
9. Administrative Expenses
10. Other Expenses
Total

Project Proposal submitted by

0.20

2.57
2.57

0.25
0.25
0.25
0.25
0.25

0.30
0.30
0.18
0.18
0.06
1.02
5.15

WASTE TO WEALTH SERIES

Expected Yearly Sales:
Sales of Egg Trays
Yearly Sales Value
Egg Tray
Total Sales Value

Million Naira
Year 4
Year 5
175
175

Year 1
154

Year 2
165

Year 3
175

154

165

175

175

175

Raw Material Required:

Raw Material Kgs/ Year
Capacity Utilization
Waste Papers

Year 1
75%
253,475

Year 2
80%
270,373

Year 3
85%
287,271

Year 4
85%
287,271

Year 5
85%
287,271

Total

253,475

270,373

287,271

287,271

287,271

Cost of Waste Papers :

Naira 35/ Kgs (The Price of waste paper is much less
than this price as per our Market Survery)
Summary
Waste Papers
Total Raw Material

Year 1
8.87
8.87

Year 2
9.46
9.46

Year 3
10.05
10.05

Value in

Million Naira

Year 4
10.05
10.05

Year 5
10.05
10.05

Total Electricity Cost and Fuel Cost:

Cost of Electricity

Naira 32/ Unit of KWH

Cost of Gas

Naira 65/ Kg

Summary
Capacity Utilization
Cost of Electricity
Cost of Fuel
TOTAL

Project Proposal submitted by

Year 1
75%

Year 2
80%

Year 3
85%

Year 4
85%

Million
Naira
Year 5
85%

12.93
1.28
14.20

13.79
1.36
15.15

14.65
1.45
16.10

14.65
1.45
16.10

14.65
1.45
16.10

WASTE TO WEALTH SERIES

Estimated Working Results:
Description

a. Cost of Production
b. Administrative Expenses
-Administrative Salaries
- Other Admin. Overheads
Total Admn. Expenses
c. Sale Expenses
d. Total Cost Production
e. Expected Sales Ex-factory
f. Gross Profit Before interest
g. Financial Expenses
-Interest on IC Loan
-Bank Charges
h. Total Financial Expenses
i. Depreciation
j. Operating Profit (h-j-k)
k. Profit/ Loss before Tax
l. Provision for Tax
m. Profit after Tax
n. Retained Profit
o. Add Depreciation
p. Add Back Preliminary Expenses
q. Net Cash Accruals

Project Proposal submitted by

1.00%
5.00%

Year 1
75%

Year 2
80%

Year 3
85%

Year 4
85%

Year 5
85%

46.61

50.15

53.81

54.88

56.09

8.40
1.54

8.40
1.65

8.40
1.75

8.40
1.75

8.40
1.75

9.94
7.72
64.28

10.05
8.24
68.44

10.15
8.75
72.72

10.15
8.75
73.78

10.15
8.75
75.00

154.44 164.74 175.03 175.03 175.03

1%

90.16

96.30

102.32

101.25

100.04

11.00
0.77
11.77
6.61
71.78
71.78
22.63
49.15
49.15
6.61
-

11.00
0.82
11.82
6.61
77.86
77.86
25.19
52.68
52.68
6.61
-

9.00
0.88
9.88
6.61
85.83
85.83
28.29
57.54
57.54
6.61
-

7.00
0.88
7.88
6.61
86.77
86.77
28.98
57.79
57.79
6.61
-

4.00
0.88
4.88
6.61
88.55
88.55
29.89
58.66
58.66
6.61
-

55.76

59.29

64.15

64.40

65.27

WASTE TO WEALTH SERIES

Break Even Analysis:
DESCRIPTION
A. Sales Realisation

Year 1

Year 2

Year 3

154.44

164.74

175.03

B.- Raw material

- Consumables
- Bank charges
- Utilities
- Sales Expenses
Total B

8.87
0.51
0.77
14.20
7.72
32.08

9.46
0.54
0.82
15.15
8.24
34.21

10.05
0.57
0.88
16.10
8.75
36.35

C. Contribution (A-B)

122.36

130.52

138.68

14.36
8.67
8.40

15.32
9.68
8.40

16.28
10.81
8.40

11.00

11.00

9.00

6.61
49.04

6.61
51.01

6.61
51.10

40%

39%

37%

D. Fixed costs
- Salary & wages
- Factory overheads
- Administrative overheads
- Interest on F/C loan
- Interest on R/C loan
- Depreciation & Preliminary
Expenses
Total D
BREAK EVEN POINT D/C (%)

Project Proposal submitted by

WASTE TO WEALTH SERIES

Pay Back Period:
DESCRIPTION
A. Investment

Year 1

Year 2

Year 3

Year 4

Year 5

1. Net Profit after Tax

2. Depreciation

49.15
6.61

52.68
6.61

57.54
6.61

57.79
6.61

58.66
6.61

Total

55.76
55.76

59.29

64.15

64.40

65.27

115.05

179.20

243.60

308.87

2.00

{
+
{

69.89
---------179.20

-------

115.05
-------115.05

}
=
}
=

(45.15)
-------64.15
(0.70)

2.00

(0.70)

1.30

Years

1. Total Investment
2. Less Margin Money

75.18
5.28

Net Investment (1-2)

69.89

B. Net Inflows

Cumulative
Pay back period

Project Proposal submitted by