Business Plan

The idea which we have in our mind is all about Eco friendly and follows the concept of “GO
GREEN” of which both customers and environment is benefited.

Vision

“To provide the product which serves multipurpose and which is both eco friendly and human
friendly in nature”

Product Description

The product is a substitute to plastic water bottles being extensively used now a days, the product
can be produced using bamboo as a main source of raw material, the hallow inside the bamboo can be
used to fill the water by giving a glass sheet as support and which keeps the water fresh and safe and
the outer part of the bottle can be decorated by pictures drawn by handicrafts. The product can be
named as Green Water Bottle.

Opportunity

Water is highly essential and people outside home always search for safe and healthy drinking
water. The increasing number of eco friendly customers in the market gives a better opportunity to
bring the idea into physical form.

Advantages

 It is an eco friendly product.

 It serves multipurpose as a water bottle come showpiece and will have longlife.
 If thrown it will decay and doesn’t pollute the environment.
 It provides employment to handicraft, artisans and craftsmen.

Requirements

To bring the product “Green water bottle” into physical form following are essentials.

Financial Requirements

This industry falls into a category of small scale which requires the investment of 1.7 to 2.1Crores
to float. Finance can be raised from:

 Eco friendly institutions

 Accumulated savings,
 Funds from friends and family
 Sidbi etc
Cost and Returns

The cost of the product includes

 Cost of raw materials (140rs per bamboo [6 bottles])

 Labour cost
 Transportation
 Advertisement
 Electricity
 Wages
 Salaries
 Interest
 Rubber
 Glass

This comes to the total of 63rs per bottle

Pricing Strategy

The product can be launched in the first year using the penetration pricing strategy by
pricing the product at 69rs per bottle

Estimated Profit and loss account for year ending

Particulars (40,000units) Amount(RS)

Sales 27,60,000
LESS: Direct cost 9,20,000
Bamboo (23*40,000)
Gross profit 18,40,000

Less:Overheads (per unit)

Rent(2rs) 80,000
Wages and salaries(3rs) 1,20,000
Bank charges(1re) 40,000
Printing(12rs) 4,80,000
Rubber(10rs) 4,00,000
Glass(10rs) 4,00,000
Others(2rs) 80,000
Total Overheads 16,000,00

Net profit 2,40,000

 Cash flow statement (Two months)

Particulars 1st month(1500units) 2nd month(2000units)

Receipts
Sales 1,03,500
1,38,000

Payments
Wages 4500 4500
Rent 3000 3000
Bank charges 1500 1500
Printing 18,000 24,000
Rubber 15,000 20,000
Glass 15,000 20,000
Others 3000 4000
Total payments
60,000 77,000
Balance 43,500 61,000
Cash increase 17,500
 Estimated balance sheet

Fixed Assets
Machinery 30,000,00
LESS: Depreciation 3,00,000 27,000,00

Current Assets
Stock (10000*69) 3,45,000
Cash in hand 60,000,00
Cash in bank 32,50,000
95,95,000
Gross assets 1,22,95,000
LESS: Current Liabilities
Creditors 22,000,00
Loans 5,00,000
27,000,00
Net Assets 95,95,000

Fixed Liabilities
Financed by capital 45,000,00
Mortgages 61,90,000
1,06,90,000
LESS: Drawings 10,000,00
Tax 95,000
10,95,000
Net Liabilities 95,95,000
Payback Period

Year Profits(Lks) Cumulative(Lks)

01 Nil Nil
02 20 20
03 31.8 51.8
04 48.7 100.5
05 62.3 162.8
06 110.6 273.4

PBP= 4 years+7.2/110.6*12

==4 years and 1 months

Net Present value

Year Cash Inflow(Lks) Disc ftr(10%) Prst vlu(Lks)

01 Nil .909 Nil

02 20 .826 16.52
03 31.8 .751 23.88
04 48.7 .683 33.26
05 2.3 .621 38.68
06 110.6 .564 62.37

Total Prst val 174.71

174.71-170

===4.71lks
Profitability Index

PI== PV OF CASH INFLOW/PV OF CASH OUTFLOW

174.71/170

PI==1.02

Human resource Requirements

The industry requires around 20 employees which includes both skilled, semi skilled and
unskilled The unskilled labourer are used to transport the raw material that is bamboo from forest and
the semi skilled and skilled labourer are used to operate the plant and machinery and look after the
management

Hiring

The skilled labourer needed for the operation of machinery and managements can be hired on the
basis of qualification they hold and the skills they posses in the concerned field.

The semi skilled labourer will be hired in the factory gate through advertisements in newspapers
Craftsmen are a core part of the production, they will be hired based on the creativity they have and
the designs they have created till now.

Production Requirements

To cut the long bamboo into small pieces and to assemble the parts of the bottle, machinery with
new technology will be needed which costs 25 to 30 lakhs.

Marketing Requirements

As the product will be new to market it can be promoted through Fairs, teaser campaigns, green
campaigns retail distributors and grocery shops. Penetration pricing strategy can be followed to
capture the market in the beginning.
Competitors

Nature craft

Wild craft

Targeting Strategy

We can mainly target the customers who work outside and who travel a lot and also people who are
much concerned about nature.

Conclusion

The supporting attitude of people towards the environment and flexibility of the product thrives the
growth and development of the business plan we have designed.