A

FEASIBILITY REPORT
ON
ECO-FRIENDLY
RECYCLERS LTD

SUBMITTED TO:
PREPARED BY:
PROF. KRUTI PATEL DEEPALI AHUJA (01)
SEJAL
CHAUDHARI (11)

PARTH VORA (119)

Name of the proposed company:

ECO-FRIENDLY RECYCLERS LTD.

Name and titles of the founding company team members:

Parth Vora, Deepali Ahuja, Sejal Chaudhari

BUSINESS CONCEPT
 • Describe whether the proposed concept is retail, wholesale, manufacturing or service
business. Identifying the current stage of development for the venture(concept stage,
start-up, initial operation or expansion)

 It’s a manufacturing business to be launched in an unorganised sector. To convert

waste plastic materials into commercially viable products, utilizing environmentally
friendly recycling and manufacturing methods.

• Include a clear description of the targeted customer, the value proposition (in terms of
benefits gained) for that customer, and what the potential growth opportunities.

Target customers:

 Household women’s.

 Students.

 Industries

Value Proposition:

 In a vertically integrated environment, green zone will apply state-of-the-art

recycling and extrusion technology managed by industry specific expertise to
create a competitive advantage for its clients. These processes will produce clean,
cost-efficient, recycled raw material for manufacturers of thermoform, laminate
and other high value-added products, and high strength packaging strapping for
shippers of large products and pallets, thereby reducing costs and creating a clear
pricing edge among their competitors.

• Summarize any proprietary rights associated with this concept whether that be
patents, copyrights, licenses, royalties, distribution rights, or franchise agreements.

 We will apply for our product under Trade mark and Patent law.

INDUSTRY/MARKET ANALYSIS
• Explain the industry that this concept is focusing on as well as whatever trends may
exist in that particular industry today.

 Major users of plastic packaging, apparently responding to consumer desires, have

begun incorporating at least some recycled plastic content in their products as part
of the growing interest in recycling.
  Packaging is expected to be the largest market segment for recycled plastics, with
sheet and lumber following.

 Surveys indicate that people are increasingly willing to collect and separate
discarded packages, foregoing a degree of convenience to make products more
disposable, and even paying a premium for a recycled item.

• Discuss the target market analysis that has been used and what specific market niche
that has produced. In addition, identify the market size, its growth potential, and your
plan for market penetration based on research.

 Household’s women, students, and industries are prime targets. This is only
concerned about mass market with economical cost. Moreover, population
strength will provide a desired volume for the venture.

• Finally, be sure to include a competitor analysis that describes thoroughly the

competition existing today and how specially your concept will match up or exceed
the competition and why?

 Plastics competitive edge rests with its proximity to its target markets, as well as
the industry knowledge, reputation. The experience of the management will led to
identify unique opportunity and put together the technology and sources to take
advantage of it. The reputation in the specific market segment will result in the
achievement of long-term commitments for our production.

MANAGEMENT TEAM
• Identify the founding team members and the key personal in place to guide the
proposed company.

 The founding team members will consist of three members. The venture is such that
guidance requirement is very necessary. The guidance was provided by ICPE (Indian
Centre for Plastics in the Environment) which is a nodal agency recognizes by the
GOI to handle all issues related to plastics and environment in India.

• Explain the team’s qualification and how the critical tasks are being assigned. Also
include any board of director/advisors that are in place.
  All three members are having management background, having MBA degree. One
member has previously worked with a wind-mill manufacturing company and others
are fresher. Operations will be divided in certain critical tasks like, collecting plastics
and wastes, separation, crushing, grinding, and pelleting. Parth will handle operating
and marketing activities while Deepali will be focusing on whole financial part and
Sejal will be taking care of HR activities This dissemination of work is only until we
reach to the break even.

• Finally, outline any “gap” in the management team (in terms of skills and abilities)
and explain how will be addressed.

 There will be a huge gap at initial level as most of the members are fresher and thus
20% of the staff consists of skilled labours. The whole organization will drive on two
attributes that is management knowledge and latest technology.

PRODUCT DEVELOPMENT ANALYSIS

• Provide a detailed description of the proposed concept including any unique features
that make it distinctive.

 The growing utilization of plastics in industrial and consumer applications, combined

with increased consumer awareness surrounding solid waste recycling, has led to an
increased demand for recycled plastic resins and products. One of the fastest growing
types of collected plastic materials for recycling is Polyethylene Terephthalate
("PET") from post-consumer beverage and water bottles. Ozone Plastics will
 capitalize on the opportunities in the recycled resin and packaging markets through
two main divisions: a Recycling Division and a Packaging Division.

• Explain the current status of the project with a clear timeline of key tasks to complete.

 Its just a concept stage for developing this product. The idea came into mind in
September and industry and trend analysis will be done. Research will be carried out
in November and december will be dedicated to cost estimation and survey based best
location. Order for assets like grinding machines etc will be placed in December end.

• Finally identify any anticipated critical risks in terms of potential product liability,
govt. regulations or raw material issues that may hinder this project progress.

 Govt. is supporting this concept and thus no obstacles.

FINANCIAL ANALYSIS

• BASED ON ASSUMPTIONS and APPROXIMATIONS

Raw Material

15,000 kg/PM

Rs.18/per Kg

Total cost 15,000 kg *Rs18/kg = 2, 70,000

Utilities
 [Power] = 6000 units @ Rs 5

Total Cost = Rs. 30,000

Human capital

Particular No of Salary /pm

employees

Material Handler(26 days)

Women 3 6,240

Men 10 26,000

Machine Operator 3 18,000

Designer (26 days) 5 26,000

Accountant 1 5,000

Security 1 3,000

Total =84240 per month

Sales Generation- Per Month

S.no Product description No Total Rs/unit Sales /m Total

units/m units
Amount(Rs)

1 Plastic flowers 12,500 1.50.000 8 1,00,000 12,00,000

2 Fans 12,500 1,50.000 10 1,20,000 15,00,000

3 Vask 3750 45,000 40 1,50,000 18,00,000

4 Plastic Bags 7,443 89320 15 1,11,645 13,39,800

Total 58,39,800
Working Capital

Particulars Amount

Raw material 2,70,000

Power 6000 units 30,000

Cash in hand 1,00,000

Wages 84,240

Others 21760

Total 3,40,000

3,40,000 per month

Particulars Amount
(Rs) Fixed Assets

Land - 8192 sqr ft * 92.77 /sqr ft 7,60,000

Building ( shed and office) 7,00,000

Furniture 25,000

Machinery

1] Washing machine 80,000

2] Zatak machine 60,000

3]Casting machine 25,000

4]Aglow machine 60,000

5]Dana machine 3,00,000

6]design machine &packing instruments 6,00,000

Total 26,10,000
Total start of required Amount

Particulars Amount(Rs)

Working Capital 3,40,000

Fixed Assets 26,10,000

Start up Expenses 50,000

Investment 1,00,000

Total 31,00,000