Final Business Plan 2f6f7
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Industry analysis Indian packing industry
The current wave of economic development in India is being seen from all over the world. As infrastructure, manufacturing, agriculture, and services grow at high rates the packaging industry is also showing great variety and depth in its growth. India’s packaging industry may achieve an annual turnover as high as US$ 5 billion in the current financial year with a growth rate nearly 25 per cent in significant segments. Leading companies in the Indian packaging industry show a compound annual growth rate of 30 per cent, and the Indian Rupee is strengthening against the US dollar at annual rate of 4 to 5 per cent. Even then, the US$ 5 billion figure would represent about
one
per
cent
of
the
current
global
packaging
industry.
In 2001, the packaging industry worldwide generated an annual estimated turnover of US$ 417 billion. The major regions that made up this total include Europe, US$ 129 billion; North America, $116 billion; and Japan, US$ 81 billion. India’s consumer packaging ed for just US$ 2.3 billion in that year, that is about half of one per cent of the global packaging volume. Packing industry in 2001 Today, packaging is produced more quickly and efficiently. It is generally lighter in weight, uses less material, is easier to open, dispense from, reseal, store, and dispose. Packaging has evolved from a relatively small range of heavy, rigid containers made of wood, glass, and steel, to a broad array of rigid, semi rigid and flexible packaging options increasingly made .
1
Flexible packing
Flexible packaging consists of multi-layer laminated sheets of plastics (PVC, LDPE, HDPE, BOPP, BOPET), paper, cloth, or metal foils that are used separately or in combination for various packaging applications. However, this article discusses flexible packaging as laminates of plastics that have a unique set of properties that ensure toughness, moisture resistance, aroma retention, gloss, grease resistance, heat sealability, printability, low odour and taste. These find use in packaging food, tea, coffee, spices, chewing tobacco, bakery, confectionary, oils, and in certain
other
non-food
applications
such
as
household
detergents.
Causes of Flexible Packaging •
Protection: Flexible Packaging gives total consumer protection by keeping the product clean and protecting it from pilferage and adulteration
•
Barrier: It provides good barrier properties against moisture and gases and protects food from damage and wastage
•
Convenience: It provides convenience of handling and disposal after use
•
Cost Saving in Material: Flexible Packaging is light — a one kilogram oil pack weighs less than 10 grams compared to at least a 40 gram HDPE jar or 32-35 gram of PET, thereby giving tremendous saving in raw material cost.
•
Cost Saving in Storage and Transport: It fits closely to the shape of the contents and saves cost of storage and transport.
•
Savings in Raw Material Consumption: Tremendous saving in raw material consumption, serving the national cause by extension of usage at least times four times.
•
More Per Pack: It provides much more product per a given amount of package. Good examples include coffee, nuts and snacks that come in foil brick packs and pouches rather than in cans or jars; juice sold in pouches rather than in rigid containers, and household cleaner refills that come in thin pouches rather than in glass bottles.
•
Smaller Units Possible: Thus the option to buy only the required quantity at a time.
2
•
Conservation of Energy: Considerable conservation of energy for conversion. For a steel coffee can to be efficient as a foil brick pack, the can would have to be recycled at a rate of 85 per cent. However, steel cans are currently being recycled at a rate of about 45 per cent.
•
Important in Lifestyles: Convenience foods, individually packed small servings, microwaveable meals, “easy opening” packaging, secure packaging for pharmaceuticals and hazardous substances, are all examples of packaging playing a role in assisting and promoting our lifestyles.
•
Builds Brands: Helps product manufactures enhance brand images, increase sales and realize new market opportunities
Flexible Packaging Demand in India and Worldwide World demand for converted flexible packaging will grow at more than 4 per cent per year through 2005 to nearly 14 million metric tons, with a value exceeding US$ 50 billion. The best gains are expected in the world’s emerging markets, including Eastern Asia, Eastern Europe, Africa, and Middle East. India holds largely untapped markets with a potential of double digit market growth. The flexible packaging industry in India is currently estimated to be US$ 1 billion
and
records
a
high
growth
rate
of
approximately
20
per
cent.
The expansion of the Indian flex-pack market has accelerated due to: •
A growing middle class of over 300 million.
•
The conversion of the more traditional rigid packaging into flexible forms.
•
A favourable government tax structure. Excise duty that was once 24% has been reduced to 16%.
•
Liberalization of the Indian economy since 1991.
•
Globalization and the influx of multinational companies.
•
Modern plants and equipment available to the flexible packaging industry.
3
Considering these factors it is only obvious that flexible packaging has a very bright future in India The
and
is
major
here
to
Indian
stay
and
players
grow in
in
a
flexible
big
way.
packaging
The Indian packaging industry is a combination of organized large Indian and International companies and the unorganised small and medium local companies. The organized sector of the industry may be less than 5 per cent of the companies in the overall industry but it nevertheless controls over 70 per cent of the market by volume. The organized sector operates in the laminated product segment such as form-fill-seal pouches, Tetra packs, and lamitubes.
Converted Flexible Packaging Demand
Item Converted Flexible Packaging
1990 1995 2000 2005 2010 63
153 295 595 1125
By Material Polyethylene
19
54
100 190 340
Polypropylene
5
20
60
160 360
Other Plastics
19
35
60
105 175
By Market Non-food
16
39
74
146 270
Paper and Foil
20
44
75
140 250
Food
47
114 221 449 855
Demand
There are around 13,000 converters in India — a majority in the small and medium sector located in all parts of the country. It is estimated that there are more than 200 flex-pack (flexible 4
packaging) converters in India – 50 units in the organized sector constituting 40 per cent of the Indian flexible packaging industry and about 150 in the unorganized sector that make up the remaining 60%. Most small operations have processing capacities of less than 250 tons a month and produce over wraps, co extrusion films, and polysacs.At least ten flex-pack converters process more than 4,000 T/annum and are on par with leading international operations. These larger Indian flexible packaging companies include •
Flex Industries Limited
•
Paper Products Limited (Huhtamaki Group)
•
Positive Packaging
•
Multiplex
•
Paharpur Industries Limited
Demand in India The current demand for flexible packaging in India stands at about 500,000 tons. Consumption of Flexible Packaging — India in Comparison to the Rest of the World According to industry experts, annual flexible packaging consumption per capita in various parts of the world is roughly as follows: •
N. America : US$45
•
Japan : US$31
•
W.Europe : US$25
•
S.Korea : US$15
•
Thailand : US$3
•
China : US$2
•
India : US$1
It is also observed that a mere 20 per cent of the population in India consumes 80 per cent of the packaged production whereas the remaining 80 per cent of the population have an access to only
5
20 per cent of the packaged production. There exists an exceptional gap in India between the necessary and actual demand for packaging of essential commodities and this is one of the major reasons why the growth of flexible packaging Major segments The consumer market dominates the global packaging industry and s for an estimated 70 per cent of sales, with industrial applications taking the remaining 30 per cent of the share. The food industry is the single largest end- market, valued at around US$ 145 billion, followed by
the
beverage
industry
at
approximately
US
$75
billion.
A high degree of potential exists for almost all segments in India which are expanding appreciably: •
Processed Foods
•
Mouth Fresheners (pan masala)
•
Beverages
•
Confectionary
•
Bakery Products
•
Spices
•
Edible Oils
•
Soaps and Detergents
•
Drugs and Pharmaceuticals
•
Cosmetics and Personal Care
•
Chemicals and Fertilizers
•
Office Stationary
•
Engineering Products
•
Tattoos
According to Fredonia, food and agricultural markets dominate the sales of converted flexible packaging in India and will continue to expand on of several factors — rising consumption of packaged foodstuff; the increasing presence of multinational food and beverage 6
firms in India; the trend towards additional processing of food grains and fresh produce; ongoing efforts
to
improve
sanitation
and
food
safety.
The Indian processed food industry stands at $ 30 billion and s for about 13 per cent of the country’s exports and involves 6 per cent of the total industrial investment in the country. Of this packaged food stands close to only $ 0.85 billion. Thus there is a tremendous potential for growth of flexible packaging in the food and processed food sectors. Going by the available data, an estimated 250,000 tons of flexible packaging materials for retail sales in the form of laminates and co-extruded films were consumed in India last year to pack a very large spectrum of products covering processed and convenience foods, fruit juice, beverages, dry and malted products, spices, tea, coffee, edible oils, toiletries, cosmetics, motor oils, and other products. Almost all the raw materials required in flexible packaging such as BOPP, PET, PE granules, aluminium foil, adhesives, and printing inks are made in India. These inputs
are
of
international
quality
and
are
exported
worldwide.
Packing equipment manufactured in India
India makes most of the equipment needed by the converting industry, including rotogravure printing presses, laminators, slitters, and pouching machines. A full range of semi-automatic to fully automated filling, sealing and wrapping machines is manufactured in India. These machines are of high quality and are very competitive in price and are exported in a big way to developed countries as well. There are some 600 to 700 packaging machine manufacturers, 95% of which are
in
small
and
medium
sector
and
located
all
over
the
country.
The Indian market for food packaging equipment amounts to $ 80 million. Currently, a 7
mere 2 per cent of India’s food production is being processed, and there are plans in place to increase the food processing level to 10 per cent over a period of ten years thereby increasing the demand for packaging equipment manifold. Another sector with a large demand for packaging machinery is the Indian cosmetic packaging segment that is expected to grow at a rate of over 20 per
cent
in
the
next
few
years.
The flexible packaging industry has a very crucial role to play in the lives of the ordinary people of India and thus has a great future here. Every broad industry or agricultural sector that consumes flexible packaging has its own unique and dynamic set of requirements. The huge possibilities latent in each of these sectors have to be defined and cultivated. India is indeed a dynamic, developing and demanding market and most of its potential has not yet been identified, leave apart conquered or covered. As new aspects of this market and its consumers’ behaviours are
defined
and
chalked
out
everyday.
Quality processes such as Six Sigma, waste minimization, the optimisation of supply chain efficiency through, for example, eCommerce initiatives, can contribute much to improved performance. So can “added value” products and services and an imaginative approach to meeting customers’ needs. In a world where commoditization is a fact, it’s evident that companies that develop unique products and services that are “genuinely out of the box” solutions to end s’ problems will gain a significant competitive edge. Goethe rightly said, “Knowing is not enough, we must apply. Willing is not enough, we must do.”
INTRODUCTORY PAGE 8
“Go green” Packing pvt Ltd, Near express highway, Nadiad, Dist. Anand Gujarat,India www.gogreen.com.
Name of the partners & proprietors 1. Sandeep Vaghela Jamnotri apt. 9
Ilora park, Vadodara. Phone no:- 9537333888 E mail:- [email protected]
2. Sunil Bhalani, At. Padadhari Dist-Rajkot Phone no:- 9725055005 E mail:[email protected]
3. Kiran Solanki 87,Gujarat housing board, Nr.Ahmedabad Highway Vallabhipur-364310 Dist. Bhavnagar. Phone no:- 9724992538 E mail:- [email protected]
4. Parshotam Kalia Airport road,
10
Bhavnagar. Phone no:- 8866370521 E mail:- [email protected]
Nature of business This business basically started with taking into consider environmental concern in packing and try to make environment friendly bag basically for wastages and using other environment friendly material. Packing bag which are made for waste papers like news papers. Bags basically for medical and kirana stores because they are the highest s of packing bags. On the monthly basis by taking order advance for the whole year.
Financing The business on the initial basis requires around 50 lacs for infrastructure development and initial operation of the production. And the main source of finance is from bank loan and letter on after development our company we will also went for IPO for expansion purpose.
11
ORGANISATION PLAN Form of ownership We are going for partnership firm for our business operati Name of the partners 1. Sandeep Vaghela Jamnotri apt. Ilora park, Vadodara. Phone no:- 9537333888 E mail:- [email protected] 12
3. Kiran Solanki 87,Gujarat housing board, Nr.Ahmedabad Highway Vallabhipur-364310 Dist. Bhavnagar. Phone no:- 9724992538 E mail:- [email protected]
4. Parshotam Kalia Airport road, Bhavnagar. Phone no:- 8866370521 E mail:- [email protected]
Authority of principals The main authority for the operation and business is in the hand of owners. And the ultimate authority of decision is in the hand of the owners and they are responsible for any matter in the company.
Management team background
CEO of the company: - Kiran solanki (BBA, MBA-Marketing, also owner of the company 13
Board of directors :-
Sandeep Vaghela (LLB, MBA HR) owner Sunil bhalani (MBA MARKETING) owner Parshotam Kalia (MBA FINANCE) owner Kiran Solanki (MBA MARKETING)
General Manager:-
Manan Bora (MBA MARKETING)
Marketing manager: -
Nirav gajjar (MBA MARKETING)
Financial manager:-
Kruti Desai (MBA FINANCE)
HR manager: -
Bincy Thomas (MBA HR)
Legal advisor:-
Sandeep Vaghela ( LLB, MBA-HR)
Technical advisor:-
Akash Kambad (MCA)
ORGANIZATION HIERARCHY
14
C.E.O.
General Manager
Marketing Manager
HR Manager
Finance Manager
Labors
DESCRIPTION OF THE BUSINESS
15
Mission statement of the company “To become a reputed coconut water pouch making firm in Gujarat” Vision of the company “To make healthier product and to deliver superior value to our customers” Objectives of the company The company come up with following objectives •
To provide low cost coconut pouch.
•
The another objective is to healthier product
•
We also want to provide employment opportunities to poor people by giving them easy unskilled workers.
Future goals & expansion The company at the initial stage target market of Baroda & Ahmedabad only but in future that will expand their market in all over Gujarat. The another thing is company go for more production at Bhavnagar and Rajkot after 3 years of their operation. In future company also wants to adopt more technology during production process to make production fast & easy.
Products
16
At the initial level company want for limited packaging only for medical and Kirana stores. So we have to offer bags in different shapes according to the quantity or products purchase by the consumers. Two types of packing bags we want to produce 1. Paper bags from the waste papers 2. Bags from waste tyres The bags range on the basis of quantity or weight of the products Like for 250 gm, 500 gm, 1 kg, 2kg in paper bag Above 2 kg tyre bag for packaging.
Services As per as the services are concern company only provide distribution service to the place of retailers by their own distribution channel and equipments.
Size of the business At the initial level the size of the company is small scale but latter on we want to make it medium scale enterprise by covering more market. Company at the initially started its operation into limited areas only latter on make target for whole Gujarat market. Office equipments and Personnel As per as the office equipments are concern we need basic furniture for the office, computers, telephone connection, fax machine and stationeries for the office purpose. 17
As per as the personnel or human resource management is concern we need both skilled as well as unskilled people for our business operations. Skilled workers In skilled worker we require following skilled persons General Manager Marketing manager HR manager Finance manager Legal advisor Technical advisor not on the permanent basis Unskilled workers Unskilled workers which are basically for labour or primary workers. We take both women as well as men workers for this purpose.
PRODUCTION PLAN
Location of the Production plan “GO green” Packing Pvt. Ltd Near express high way Nadiad Dist: Anand, Gujarat, India
18
Go green private Limited is located at Nadiad. This place is selected as a location because at the initial stage the target market for the company is Ahmedabad and Vadodara and this place is centre point between both the place and become convenience in transportation as well as supply of raw materials as well as finished goods. Production basically need unskilled workers which also include women and we easily get this at cheaper cost of labour. And the land available at this place is also cheap.
Availability of workers for production Go green packing Pvt. Ltd. Basically wants two types of worker unskilled workers and skilled workers which are limited of two or three at the initial stage for the management as well as for design of the packaging bag. And we take both male as well as female as worker in our company. Electricity We need limited amount of electricity for the purpose for sticking machine and for the purpose of basic requirement of air for our workers Space for production activity we want a production of 2,00,000 bags at initial level and for that we want to construct a building with basic infrastructure facilities like enough sitting facilities, so we need space around 1000 square feet. Production activities The production done in basically two phases in our company premises only in two different buildings 1. Here activities related to basic shape for the bag are done 2. Deg and final touching done in other premises by our skilled worker Plant layout
19
In our production area we construct basically two buildings and near by area for our basic requirement like canteen, sanitation, rest room, and other space we try to provide natural environment by planting trees in our premises Raw materials These are the materials which are use for the production of waste paper bag 1. Waste newspapers 2. Grey back duplex 3. Rivets 4. Jute threads Manufacturing process For the producing packing eco friendly bag we have to follow following simple steps Step -1 First and foremost step in which we have to make cutting of the paper according to the shape of the bag which we require with the help of cutter Step – 2 After that they attach grey back duplex at the bottom for increase capacity of bag in of weight. Step – 3 After that we have to stick all the cutting parts and also tied jute threads with it Step – 4 This work at this stage in which the deg and final touching is doesn’t in to another department with the help of experts.
20
MARKETING PLAN
Executive Summary “Go green” packing private limited produce an eco friendly packing bag. This marketing plan illustrates our market segments and the strategies we are employing to get customers and create a solid revenue stream. We are not only concern about packing business but, Our unique focus not only do business but we want environment protection as a part of social responsibility in our business. We market our products mainly by taking into consider environment friendly We will fund development of our business of packing by providing different designs and size by taking help of different contractor. Vision for marketing Our marketing challenge is to attract visibility quickly and we intend to accomplish this by leveraging a multi-pronged approach that involves social media, email marketing and search engine optimization strategies to gain market share. As we gain traction in the marketplace, word of mouth will lift our game s significantly. Objectives 1. Generate over sales of more than 10,00,000 bags in every month for a one year
2. Increase sales by 100% by the month of next month
21
Target Markets Our ideal customer is at the initial level Kirana stores and medical stores for selling our packing bags We also want to target readymade garment stores, vegetable markets, consumer durables as our target market Market Definition and Segmentation We target two segments: Kirana stores and medical stores for our sells purpose. In both of these segments, customers are day to day sellers which sell in large volume and they also want packing bags on large quantities Distribution Channels
Our area in of geographical regions are ahmedabad and Baroda for providing a packing bag to both this cities and which is near by our production plant so in of distribution channel. We directly provide the product to the retailers with help of our delivery men by taking a delivery van for that purpose. We not use any intermediaries for distribution apart from our own efforts. Competitive Forces
Competitive force is concern there are many players which are there in packing business and they all are small players but in case of eco friendly packaging is concern there are no players apart from various NGOs as a part of their social activities. So we have a great opportunity to tab a market by producing this type of eco- friendly bags. Communications
We will leverage social media and word of mouth for the vast majority of our marketing using platforms such as Twitter, Facebook, Orkut and MySpace. These platforms are widely used by
22
the customers in our demographic market. We will make announcements via regular tweets and updates to our fan page on Facebook. The newsworthy component of our mobile games also makes it enticing for traditional media to publicize a game that is related to a current news story. We will also use our email marketing list which is comprised of people who have expressed interest in knowing when we release new games. We have segmented our email list so that we can send appropriate emails to media and different ones to actual gamers, our customers.
Promotion & ment Promotion and ment play an important role in success of the company. Different company use different techniques for ment and promotion for the product and service as per the size and product of the company As per as our company is concern we are a small player and we also take into consider an environmental aspects for our promotion we promote our company by taking care of environment. We want to use following techniques in ment and promotion of our products. 1. The first and foremost thing we use is billboard and banner 2. We also give ment in local newspapers 3. We promote our product by setting stalls at commercial market and where more and more
grocery and kirana stores located, road shows to promote our product.
23
Assessment of risk
As we all know that risk is in each and every business so for that company has to identify the risk factors which are affecting the operation of the business. Here in packing as specially eco friendly packing there are number of risk involved into business. So in assessment of risk we have to take into consider following thing under assessment of risk. Evaluate weakness of business •
The first and foremost weakness of our business is that it is basically and eco friendly bag we can not able to use plastic so for huge quantity our packing bag is not useful
•
The second weakness of our business is that adaptation of our product by various segment is also not possible because of conveniences of the customers
New technologies
As per as the technology in our business is concern as our product is eco- friendly we can not able to use technology as per our convenience.
24
Financial plan
Start-up Summary Start-up costs are shown in three areas. The first is in the start-up table, the second is within the cash flow assumptions and the third is in the P&L. 1. Start-up expenses: legal (incorporation and trademark registration), stationery (business cards and office supplies), etc., brochures, consultants (graphic design for logo and packaging), research and development (architecture fees for store and trade fixture design). 2. Start-up costs expressed in year one cash flow: FF&E for first Rainbow retail store. 3. Start-up costs included within year one P&L: brand marketing, management staff, travel costs to coordinate product development.
JANFEBMARCHStar
Expenses
Assets
Investment
t up12,00,00035,00,00 014,00,00033,00,000 particular
A
Financial
Plan
enables you to set a "budget",
against 25
which you measure your To
expenditure. deliver
project
you
"within
budget", you need to
produce
the
project deliverables at a total cost which does not exceed that stated in the budget. Using this financial plan template, you can detailed against
create
a
budget which
to
measure the success of your project.
Manufacturing budget for three
26
months (In term of lacs) Particular
Projected
10,00,000
12,00,000
14,00,000
sales( unit)Loans Desired ending -
-
-
inventory Available for sale Less:begining
10,00,000 -
12,00,000 1,00,000
14,00,000 200000
inventory Total production 10,00,000
11,00,000
12,00,000
required
Interpretation So from the estimated budget data regarding production we can say that we have to produce as a first month production 10 lacs and after that in second year 11 lacs and 12 lacs respectively for efficient operation of our business.
Income statement for three months 27
Particular JAN Sales 10 Less: cost of goods 4 sold Gross profit Operating expenses Selling expenses ment Salaries and wages Depreciation Total operating expenses Profit before taxes Taxes Net profit
FEB 12 5
MARCH 14 7
6
7
7
0.5 0.3 1.5 0.7 3
0.4 0.35 1.5 0.7 2.95
0.35 0.25 1.5 0.7 2.8
3 0.3 2.7
4.05 0.405 3.645
4.2 0.42 3.78
Break even point calculation Fixed costs: 2.2 Selling price: 0.75 Variable cost 0.5 BEP =
Fixed cost SP – VC/Unit
2.2 0.25
= 8.8 units
Human resurce plan
Human resource policies are important if your company wants to implement consistent human resource policies, procedures and solutions. Our policies and job descriptions are professionally written
and
fully
customizable
in
MS
Word
format. 28
Straight-forward, clear and concise HR Policies is important for a number of reasons. Failing to implement policies leaves our company open to legal challenges, grievances and lawsuits, especially if we inconsistently apply our human resources policies and our pay structure/system. Grievances and lawsuits lead to: •
Increased costs that affect your profits
•
Increased turnover
•
Negative morale
Our company will avoid these problems because we implement hr policies and procedures. Our company needs human resource policies and procedures that our staffs are treated equally across a variety of employment issues In our organisation most of the employees are lower level and they work as a labourer in our organisation so we have to face many problems regarding them. But from the very initial we take care of that by framing very strict policy regarding the matters like 1. Pay structure 2. Working hours 3. Working conditions 4.
Incentives and benefits
In our company one of our partners is from HR so HR department handle by MR.Sandeep Vaghela. •
Compliance to all applicable legal and other requirements to which we subscribe through
•
Establishing effective Integrated Management Systems for Environment, Health & Safety
•
Setting objective and targets for continual improvement in Environment, Health & safety per performance
29
•
Executing projects and plans for improvement
•
Imparting appropriate training to all individuals entering our premises
30
The current wave of economic development in India is being seen from all over the world. As infrastructure, manufacturing, agriculture, and services grow at high rates the packaging industry is also showing great variety and depth in its growth. India’s packaging industry may achieve an annual turnover as high as US$ 5 billion in the current financial year with a growth rate nearly 25 per cent in significant segments. Leading companies in the Indian packaging industry show a compound annual growth rate of 30 per cent, and the Indian Rupee is strengthening against the US dollar at annual rate of 4 to 5 per cent. Even then, the US$ 5 billion figure would represent about
one
per
cent
of
the
current
global
packaging
industry.
In 2001, the packaging industry worldwide generated an annual estimated turnover of US$ 417 billion. The major regions that made up this total include Europe, US$ 129 billion; North America, $116 billion; and Japan, US$ 81 billion. India’s consumer packaging ed for just US$ 2.3 billion in that year, that is about half of one per cent of the global packaging volume. Packing industry in 2001 Today, packaging is produced more quickly and efficiently. It is generally lighter in weight, uses less material, is easier to open, dispense from, reseal, store, and dispose. Packaging has evolved from a relatively small range of heavy, rigid containers made of wood, glass, and steel, to a broad array of rigid, semi rigid and flexible packaging options increasingly made .
1
Flexible packing
Flexible packaging consists of multi-layer laminated sheets of plastics (PVC, LDPE, HDPE, BOPP, BOPET), paper, cloth, or metal foils that are used separately or in combination for various packaging applications. However, this article discusses flexible packaging as laminates of plastics that have a unique set of properties that ensure toughness, moisture resistance, aroma retention, gloss, grease resistance, heat sealability, printability, low odour and taste. These find use in packaging food, tea, coffee, spices, chewing tobacco, bakery, confectionary, oils, and in certain
other
non-food
applications
such
as
household
detergents.
Causes of Flexible Packaging •
Protection: Flexible Packaging gives total consumer protection by keeping the product clean and protecting it from pilferage and adulteration
•
Barrier: It provides good barrier properties against moisture and gases and protects food from damage and wastage
•
Convenience: It provides convenience of handling and disposal after use
•
Cost Saving in Material: Flexible Packaging is light — a one kilogram oil pack weighs less than 10 grams compared to at least a 40 gram HDPE jar or 32-35 gram of PET, thereby giving tremendous saving in raw material cost.
•
Cost Saving in Storage and Transport: It fits closely to the shape of the contents and saves cost of storage and transport.
•
Savings in Raw Material Consumption: Tremendous saving in raw material consumption, serving the national cause by extension of usage at least times four times.
•
More Per Pack: It provides much more product per a given amount of package. Good examples include coffee, nuts and snacks that come in foil brick packs and pouches rather than in cans or jars; juice sold in pouches rather than in rigid containers, and household cleaner refills that come in thin pouches rather than in glass bottles.
•
Smaller Units Possible: Thus the option to buy only the required quantity at a time.
2
•
Conservation of Energy: Considerable conservation of energy for conversion. For a steel coffee can to be efficient as a foil brick pack, the can would have to be recycled at a rate of 85 per cent. However, steel cans are currently being recycled at a rate of about 45 per cent.
•
Important in Lifestyles: Convenience foods, individually packed small servings, microwaveable meals, “easy opening” packaging, secure packaging for pharmaceuticals and hazardous substances, are all examples of packaging playing a role in assisting and promoting our lifestyles.
•
Builds Brands: Helps product manufactures enhance brand images, increase sales and realize new market opportunities
Flexible Packaging Demand in India and Worldwide World demand for converted flexible packaging will grow at more than 4 per cent per year through 2005 to nearly 14 million metric tons, with a value exceeding US$ 50 billion. The best gains are expected in the world’s emerging markets, including Eastern Asia, Eastern Europe, Africa, and Middle East. India holds largely untapped markets with a potential of double digit market growth. The flexible packaging industry in India is currently estimated to be US$ 1 billion
and
records
a
high
growth
rate
of
approximately
20
per
cent.
The expansion of the Indian flex-pack market has accelerated due to: •
A growing middle class of over 300 million.
•
The conversion of the more traditional rigid packaging into flexible forms.
•
A favourable government tax structure. Excise duty that was once 24% has been reduced to 16%.
•
Liberalization of the Indian economy since 1991.
•
Globalization and the influx of multinational companies.
•
Modern plants and equipment available to the flexible packaging industry.
3
Considering these factors it is only obvious that flexible packaging has a very bright future in India The
and
is
major
here
to
Indian
stay
and
players
grow in
in
a
flexible
big
way.
packaging
The Indian packaging industry is a combination of organized large Indian and International companies and the unorganised small and medium local companies. The organized sector of the industry may be less than 5 per cent of the companies in the overall industry but it nevertheless controls over 70 per cent of the market by volume. The organized sector operates in the laminated product segment such as form-fill-seal pouches, Tetra packs, and lamitubes.
Converted Flexible Packaging Demand
Item Converted Flexible Packaging
1990 1995 2000 2005 2010 63
153 295 595 1125
By Material Polyethylene
19
54
100 190 340
Polypropylene
5
20
60
160 360
Other Plastics
19
35
60
105 175
By Market Non-food
16
39
74
146 270
Paper and Foil
20
44
75
140 250
Food
47
114 221 449 855
Demand
There are around 13,000 converters in India — a majority in the small and medium sector located in all parts of the country. It is estimated that there are more than 200 flex-pack (flexible 4
packaging) converters in India – 50 units in the organized sector constituting 40 per cent of the Indian flexible packaging industry and about 150 in the unorganized sector that make up the remaining 60%. Most small operations have processing capacities of less than 250 tons a month and produce over wraps, co extrusion films, and polysacs.At least ten flex-pack converters process more than 4,000 T/annum and are on par with leading international operations. These larger Indian flexible packaging companies include •
Flex Industries Limited
•
Paper Products Limited (Huhtamaki Group)
•
Positive Packaging
•
Multiplex
•
Paharpur Industries Limited
Demand in India The current demand for flexible packaging in India stands at about 500,000 tons. Consumption of Flexible Packaging — India in Comparison to the Rest of the World According to industry experts, annual flexible packaging consumption per capita in various parts of the world is roughly as follows: •
N. America : US$45
•
Japan : US$31
•
W.Europe : US$25
•
S.Korea : US$15
•
Thailand : US$3
•
China : US$2
•
India : US$1
It is also observed that a mere 20 per cent of the population in India consumes 80 per cent of the packaged production whereas the remaining 80 per cent of the population have an access to only
5
20 per cent of the packaged production. There exists an exceptional gap in India between the necessary and actual demand for packaging of essential commodities and this is one of the major reasons why the growth of flexible packaging Major segments The consumer market dominates the global packaging industry and s for an estimated 70 per cent of sales, with industrial applications taking the remaining 30 per cent of the share. The food industry is the single largest end- market, valued at around US$ 145 billion, followed by
the
beverage
industry
at
approximately
US
$75
billion.
A high degree of potential exists for almost all segments in India which are expanding appreciably: •
Processed Foods
•
Mouth Fresheners (pan masala)
•
Beverages
•
Confectionary
•
Bakery Products
•
Spices
•
Edible Oils
•
Soaps and Detergents
•
Drugs and Pharmaceuticals
•
Cosmetics and Personal Care
•
Chemicals and Fertilizers
•
Office Stationary
•
Engineering Products
•
Tattoos
According to Fredonia, food and agricultural markets dominate the sales of converted flexible packaging in India and will continue to expand on of several factors — rising consumption of packaged foodstuff; the increasing presence of multinational food and beverage 6
firms in India; the trend towards additional processing of food grains and fresh produce; ongoing efforts
to
improve
sanitation
and
food
safety.
The Indian processed food industry stands at $ 30 billion and s for about 13 per cent of the country’s exports and involves 6 per cent of the total industrial investment in the country. Of this packaged food stands close to only $ 0.85 billion. Thus there is a tremendous potential for growth of flexible packaging in the food and processed food sectors. Going by the available data, an estimated 250,000 tons of flexible packaging materials for retail sales in the form of laminates and co-extruded films were consumed in India last year to pack a very large spectrum of products covering processed and convenience foods, fruit juice, beverages, dry and malted products, spices, tea, coffee, edible oils, toiletries, cosmetics, motor oils, and other products. Almost all the raw materials required in flexible packaging such as BOPP, PET, PE granules, aluminium foil, adhesives, and printing inks are made in India. These inputs
are
of
international
quality
and
are
exported
worldwide.
Packing equipment manufactured in India
India makes most of the equipment needed by the converting industry, including rotogravure printing presses, laminators, slitters, and pouching machines. A full range of semi-automatic to fully automated filling, sealing and wrapping machines is manufactured in India. These machines are of high quality and are very competitive in price and are exported in a big way to developed countries as well. There are some 600 to 700 packaging machine manufacturers, 95% of which are
in
small
and
medium
sector
and
located
all
over
the
country.
The Indian market for food packaging equipment amounts to $ 80 million. Currently, a 7
mere 2 per cent of India’s food production is being processed, and there are plans in place to increase the food processing level to 10 per cent over a period of ten years thereby increasing the demand for packaging equipment manifold. Another sector with a large demand for packaging machinery is the Indian cosmetic packaging segment that is expected to grow at a rate of over 20 per
cent
in
the
next
few
years.
The flexible packaging industry has a very crucial role to play in the lives of the ordinary people of India and thus has a great future here. Every broad industry or agricultural sector that consumes flexible packaging has its own unique and dynamic set of requirements. The huge possibilities latent in each of these sectors have to be defined and cultivated. India is indeed a dynamic, developing and demanding market and most of its potential has not yet been identified, leave apart conquered or covered. As new aspects of this market and its consumers’ behaviours are
defined
and
chalked
out
everyday.
Quality processes such as Six Sigma, waste minimization, the optimisation of supply chain efficiency through, for example, eCommerce initiatives, can contribute much to improved performance. So can “added value” products and services and an imaginative approach to meeting customers’ needs. In a world where commoditization is a fact, it’s evident that companies that develop unique products and services that are “genuinely out of the box” solutions to end s’ problems will gain a significant competitive edge. Goethe rightly said, “Knowing is not enough, we must apply. Willing is not enough, we must do.”
INTRODUCTORY PAGE 8
“Go green” Packing pvt Ltd, Near express highway, Nadiad, Dist. Anand Gujarat,India www.gogreen.com.
Name of the partners & proprietors 1. Sandeep Vaghela Jamnotri apt. 9
Ilora park, Vadodara. Phone no:- 9537333888 E mail:- [email protected]
2. Sunil Bhalani, At. Padadhari Dist-Rajkot Phone no:- 9725055005 E mail:[email protected]
3. Kiran Solanki 87,Gujarat housing board, Nr.Ahmedabad Highway Vallabhipur-364310 Dist. Bhavnagar. Phone no:- 9724992538 E mail:- [email protected]
4. Parshotam Kalia Airport road,
10
Bhavnagar. Phone no:- 8866370521 E mail:- [email protected]
Nature of business This business basically started with taking into consider environmental concern in packing and try to make environment friendly bag basically for wastages and using other environment friendly material. Packing bag which are made for waste papers like news papers. Bags basically for medical and kirana stores because they are the highest s of packing bags. On the monthly basis by taking order advance for the whole year.
Financing The business on the initial basis requires around 50 lacs for infrastructure development and initial operation of the production. And the main source of finance is from bank loan and letter on after development our company we will also went for IPO for expansion purpose.
11
ORGANISATION PLAN Form of ownership We are going for partnership firm for our business operati Name of the partners 1. Sandeep Vaghela Jamnotri apt. Ilora park, Vadodara. Phone no:- 9537333888 E mail:- [email protected] 12
3. Kiran Solanki 87,Gujarat housing board, Nr.Ahmedabad Highway Vallabhipur-364310 Dist. Bhavnagar. Phone no:- 9724992538 E mail:- [email protected]
4. Parshotam Kalia Airport road, Bhavnagar. Phone no:- 8866370521 E mail:- [email protected]
Authority of principals The main authority for the operation and business is in the hand of owners. And the ultimate authority of decision is in the hand of the owners and they are responsible for any matter in the company.
Management team background
CEO of the company: - Kiran solanki (BBA, MBA-Marketing, also owner of the company 13
Board of directors :-
Sandeep Vaghela (LLB, MBA HR) owner Sunil bhalani (MBA MARKETING) owner Parshotam Kalia (MBA FINANCE) owner Kiran Solanki (MBA MARKETING)
General Manager:-
Manan Bora (MBA MARKETING)
Marketing manager: -
Nirav gajjar (MBA MARKETING)
Financial manager:-
Kruti Desai (MBA FINANCE)
HR manager: -
Bincy Thomas (MBA HR)
Legal advisor:-
Sandeep Vaghela ( LLB, MBA-HR)
Technical advisor:-
Akash Kambad (MCA)
ORGANIZATION HIERARCHY
14
C.E.O.
General Manager
Marketing Manager
HR Manager
Finance Manager
Labors
DESCRIPTION OF THE BUSINESS
15
Mission statement of the company “To become a reputed coconut water pouch making firm in Gujarat” Vision of the company “To make healthier product and to deliver superior value to our customers” Objectives of the company The company come up with following objectives •
To provide low cost coconut pouch.
•
The another objective is to healthier product
•
We also want to provide employment opportunities to poor people by giving them easy unskilled workers.
Future goals & expansion The company at the initial stage target market of Baroda & Ahmedabad only but in future that will expand their market in all over Gujarat. The another thing is company go for more production at Bhavnagar and Rajkot after 3 years of their operation. In future company also wants to adopt more technology during production process to make production fast & easy.
Products
16
At the initial level company want for limited packaging only for medical and Kirana stores. So we have to offer bags in different shapes according to the quantity or products purchase by the consumers. Two types of packing bags we want to produce 1. Paper bags from the waste papers 2. Bags from waste tyres The bags range on the basis of quantity or weight of the products Like for 250 gm, 500 gm, 1 kg, 2kg in paper bag Above 2 kg tyre bag for packaging.
Services As per as the services are concern company only provide distribution service to the place of retailers by their own distribution channel and equipments.
Size of the business At the initial level the size of the company is small scale but latter on we want to make it medium scale enterprise by covering more market. Company at the initially started its operation into limited areas only latter on make target for whole Gujarat market. Office equipments and Personnel As per as the office equipments are concern we need basic furniture for the office, computers, telephone connection, fax machine and stationeries for the office purpose. 17
As per as the personnel or human resource management is concern we need both skilled as well as unskilled people for our business operations. Skilled workers In skilled worker we require following skilled persons General Manager Marketing manager HR manager Finance manager Legal advisor Technical advisor not on the permanent basis Unskilled workers Unskilled workers which are basically for labour or primary workers. We take both women as well as men workers for this purpose.
PRODUCTION PLAN
Location of the Production plan “GO green” Packing Pvt. Ltd Near express high way Nadiad Dist: Anand, Gujarat, India
18
Go green private Limited is located at Nadiad. This place is selected as a location because at the initial stage the target market for the company is Ahmedabad and Vadodara and this place is centre point between both the place and become convenience in transportation as well as supply of raw materials as well as finished goods. Production basically need unskilled workers which also include women and we easily get this at cheaper cost of labour. And the land available at this place is also cheap.
Availability of workers for production Go green packing Pvt. Ltd. Basically wants two types of worker unskilled workers and skilled workers which are limited of two or three at the initial stage for the management as well as for design of the packaging bag. And we take both male as well as female as worker in our company. Electricity We need limited amount of electricity for the purpose for sticking machine and for the purpose of basic requirement of air for our workers Space for production activity we want a production of 2,00,000 bags at initial level and for that we want to construct a building with basic infrastructure facilities like enough sitting facilities, so we need space around 1000 square feet. Production activities The production done in basically two phases in our company premises only in two different buildings 1. Here activities related to basic shape for the bag are done 2. Deg and final touching done in other premises by our skilled worker Plant layout
19
In our production area we construct basically two buildings and near by area for our basic requirement like canteen, sanitation, rest room, and other space we try to provide natural environment by planting trees in our premises Raw materials These are the materials which are use for the production of waste paper bag 1. Waste newspapers 2. Grey back duplex 3. Rivets 4. Jute threads Manufacturing process For the producing packing eco friendly bag we have to follow following simple steps Step -1 First and foremost step in which we have to make cutting of the paper according to the shape of the bag which we require with the help of cutter Step – 2 After that they attach grey back duplex at the bottom for increase capacity of bag in of weight. Step – 3 After that we have to stick all the cutting parts and also tied jute threads with it Step – 4 This work at this stage in which the deg and final touching is doesn’t in to another department with the help of experts.
20
MARKETING PLAN
Executive Summary “Go green” packing private limited produce an eco friendly packing bag. This marketing plan illustrates our market segments and the strategies we are employing to get customers and create a solid revenue stream. We are not only concern about packing business but, Our unique focus not only do business but we want environment protection as a part of social responsibility in our business. We market our products mainly by taking into consider environment friendly We will fund development of our business of packing by providing different designs and size by taking help of different contractor. Vision for marketing Our marketing challenge is to attract visibility quickly and we intend to accomplish this by leveraging a multi-pronged approach that involves social media, email marketing and search engine optimization strategies to gain market share. As we gain traction in the marketplace, word of mouth will lift our game s significantly. Objectives 1. Generate over sales of more than 10,00,000 bags in every month for a one year
2. Increase sales by 100% by the month of next month
21
Target Markets Our ideal customer is at the initial level Kirana stores and medical stores for selling our packing bags We also want to target readymade garment stores, vegetable markets, consumer durables as our target market Market Definition and Segmentation We target two segments: Kirana stores and medical stores for our sells purpose. In both of these segments, customers are day to day sellers which sell in large volume and they also want packing bags on large quantities Distribution Channels
Our area in of geographical regions are ahmedabad and Baroda for providing a packing bag to both this cities and which is near by our production plant so in of distribution channel. We directly provide the product to the retailers with help of our delivery men by taking a delivery van for that purpose. We not use any intermediaries for distribution apart from our own efforts. Competitive Forces
Competitive force is concern there are many players which are there in packing business and they all are small players but in case of eco friendly packaging is concern there are no players apart from various NGOs as a part of their social activities. So we have a great opportunity to tab a market by producing this type of eco- friendly bags. Communications
We will leverage social media and word of mouth for the vast majority of our marketing using platforms such as Twitter, Facebook, Orkut and MySpace. These platforms are widely used by
22
the customers in our demographic market. We will make announcements via regular tweets and updates to our fan page on Facebook. The newsworthy component of our mobile games also makes it enticing for traditional media to publicize a game that is related to a current news story. We will also use our email marketing list which is comprised of people who have expressed interest in knowing when we release new games. We have segmented our email list so that we can send appropriate emails to media and different ones to actual gamers, our customers.
Promotion & ment Promotion and ment play an important role in success of the company. Different company use different techniques for ment and promotion for the product and service as per the size and product of the company As per as our company is concern we are a small player and we also take into consider an environmental aspects for our promotion we promote our company by taking care of environment. We want to use following techniques in ment and promotion of our products. 1. The first and foremost thing we use is billboard and banner 2. We also give ment in local newspapers 3. We promote our product by setting stalls at commercial market and where more and more
grocery and kirana stores located, road shows to promote our product.
23
Assessment of risk
As we all know that risk is in each and every business so for that company has to identify the risk factors which are affecting the operation of the business. Here in packing as specially eco friendly packing there are number of risk involved into business. So in assessment of risk we have to take into consider following thing under assessment of risk. Evaluate weakness of business •
The first and foremost weakness of our business is that it is basically and eco friendly bag we can not able to use plastic so for huge quantity our packing bag is not useful
•
The second weakness of our business is that adaptation of our product by various segment is also not possible because of conveniences of the customers
New technologies
As per as the technology in our business is concern as our product is eco- friendly we can not able to use technology as per our convenience.
24
Financial plan
Start-up Summary Start-up costs are shown in three areas. The first is in the start-up table, the second is within the cash flow assumptions and the third is in the P&L. 1. Start-up expenses: legal (incorporation and trademark registration), stationery (business cards and office supplies), etc., brochures, consultants (graphic design for logo and packaging), research and development (architecture fees for store and trade fixture design). 2. Start-up costs expressed in year one cash flow: FF&E for first Rainbow retail store. 3. Start-up costs included within year one P&L: brand marketing, management staff, travel costs to coordinate product development.
JANFEBMARCHStar
Expenses
Assets
Investment
t up12,00,00035,00,00 014,00,00033,00,000 particular
A
Financial
Plan
enables you to set a "budget",
against 25
which you measure your To
expenditure. deliver
project
you
"within
budget", you need to
produce
the
project deliverables at a total cost which does not exceed that stated in the budget. Using this financial plan template, you can detailed against
create
a
budget which
to
measure the success of your project.
Manufacturing budget for three
26
months (In term of lacs) Particular
Projected
10,00,000
12,00,000
14,00,000
sales( unit)Loans Desired ending -
-
-
inventory Available for sale Less:begining
10,00,000 -
12,00,000 1,00,000
14,00,000 200000
inventory Total production 10,00,000
11,00,000
12,00,000
required
Interpretation So from the estimated budget data regarding production we can say that we have to produce as a first month production 10 lacs and after that in second year 11 lacs and 12 lacs respectively for efficient operation of our business.
Income statement for three months 27
Particular JAN Sales 10 Less: cost of goods 4 sold Gross profit Operating expenses Selling expenses ment Salaries and wages Depreciation Total operating expenses Profit before taxes Taxes Net profit
FEB 12 5
MARCH 14 7
6
7
7
0.5 0.3 1.5 0.7 3
0.4 0.35 1.5 0.7 2.95
0.35 0.25 1.5 0.7 2.8
3 0.3 2.7
4.05 0.405 3.645
4.2 0.42 3.78
Break even point calculation Fixed costs: 2.2 Selling price: 0.75 Variable cost 0.5 BEP =
Fixed cost SP – VC/Unit
2.2 0.25
= 8.8 units
Human resurce plan
Human resource policies are important if your company wants to implement consistent human resource policies, procedures and solutions. Our policies and job descriptions are professionally written
and
fully
customizable
in
MS
Word
format. 28
Straight-forward, clear and concise HR Policies is important for a number of reasons. Failing to implement policies leaves our company open to legal challenges, grievances and lawsuits, especially if we inconsistently apply our human resources policies and our pay structure/system. Grievances and lawsuits lead to: •
Increased costs that affect your profits
•
Increased turnover
•
Negative morale
Our company will avoid these problems because we implement hr policies and procedures. Our company needs human resource policies and procedures that our staffs are treated equally across a variety of employment issues In our organisation most of the employees are lower level and they work as a labourer in our organisation so we have to face many problems regarding them. But from the very initial we take care of that by framing very strict policy regarding the matters like 1. Pay structure 2. Working hours 3. Working conditions 4.
Incentives and benefits
In our company one of our partners is from HR so HR department handle by MR.Sandeep Vaghela. •
Compliance to all applicable legal and other requirements to which we subscribe through
•
Establishing effective Integrated Management Systems for Environment, Health & Safety
•
Setting objective and targets for continual improvement in Environment, Health & safety per performance
29
•
Executing projects and plans for improvement
•
Imparting appropriate training to all individuals entering our premises
30
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