Plastic Fittings Industry

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ABSTRACT

In the world of globalization we are seeing a great deal of developments through out the
world. Big Buildings, skyscrapers, corporate offices, govt. factories, houses, flats are
being made at a greater rate day by day. All of these above mentioned in any condition
need these plastic electrical fittings for efficient electrical wiring throughout the system.

General bricks are made up of used up of used up plastic but this product is made up
highly designed and plastic called as high density plastic. The use of these fittings allows
us to provide electrical wiring through every bend and corner of a room thus helping us in
the maximum purposeful utilization of electricity. These plastic made electrical fittings
are cheaper and stronger and also more resistant to temperature than the general bricks. It
is a small scale industry of cost around 35Lakhs.

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TABLE OF CONTENTS

ABSTRACT........................................................................................................................ii
...........................................................................................................................................iii
TABLE OF CONTENTS...................................................................................................iv
1. GENERAL INFORMATION..........................................................................................5
2. ENTREPRENUER PROFILE.........................................................................................6
3. TYPE OF THE PRODUCT.............................................................................................7
Marketing Strategy...........................................................................................................7
Targeted Consumer/Clients.............................................................................................8
4. MANUFACTURING PROCESS....................................................................................9
4.1 Technical Know-how availability..............................................................................9
4.1 Step By Step Description of Process.........................................................................9
5. PRODUCTION SCHEDULE........................................................................................10
6. DETAILS OF THE PROPOSED PROJECT.................................................................11
6.1 Land and Building....................................................................................................11
6.2 Machineries/equipments..........................................................................................11
6.3 Misc. fixed assets.....................................................................................................11
6.4 Preliminary and pre operative experience................................................................12
6.5 Sales revenue...........................................................................................................12
6.6 Raw material ...........................................................................................................13
6.7 Utilities.....................................................................................................................13
6.8 Man Power (Salaries/wages)....................................................................................13
6.9 Repairs and maintenance.........................................................................................14
6.10 Selling and distribution expenses...........................................................................14
6.11 Administrative expenses .......................................................................................14
6.12 Interest ...................................................................................................................14
6.13 Depreciation ..........................................................................................................14
6.14 Misc. expenses ......................................................................................................15
7. WORKING CAPITAL..................................................................................................16
8. TOTAL COST OF THE PROJECT..............................................................................17
9. MEANS OF FINANCE.................................................................................................18
10. PROFITABILITY PROJECTIONS............................................................................19
11. BREAK EVEN POINT................................................................................................20
12. CONCLUSION............................................................................................................21
REFERENCES..................................................................................................................22

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PLASTIC FITTING INDUSTRY

1. GENERAL INFORMATION

Name of the Entreprenuers:

Proposed Project:
This Business Plan deals in setting up a manufacturing plant which
produces electrical plastic fittings.

Major Product / Services:

Our company manufactures plastic fittings from the
material called as high density plastic which is quite different from
other commercially available plastic fittings.

Proposed Locations:
Berhampur, Orissa.

Type of Organisation:
Manufacturing Organization

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PLASTIC FITTING INDUSTRY

2. ENTREPRENUER PROFILE

1. Name :
2. Educational Qualification: Bachelor of Technology
Technical Skills: Sound knowledge in C and C++

3. Name:
Educational Qualification: Bachelor of Technology
Technical Skills: Sound knowledge in C and C++

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PLASTIC FITTING INDUSTRY

3. TYPE OF THE PRODUCT

1. Type of the Project :

This project deals with the production of good quality plastic
fittings.

2. Product / Services Description :

It is a manufacturing organization which produces a special kind of
plastic fittings which are more durable and resistant to high
temperature.

3. Major Consumers :
All buildings, factories, houses etc.

MARKET POTENTIAL

This is a product new to market so the public is not aware of the plus points of these
products over the normal plastic accessories. In near future it is going to have high
demand as these have higher durability, better sustainability to high temperature as they
are made up of advanced plastic called high density plastic. These products can be used
everywhere including houses, offices, and buildings in every remote corner so that
electricity through wires can be delivered.

Marketing Strategy

The marketing strategy should be in the view of the following things:

1. New user with new uses
2. Existing user with new uses

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PLASTIC FITTING INDUSTRY

As the product is new to market we have to look for more awareness among the people
through advertisement. The big contractors and builders should be invited for meeting
and the plus points of this type of fittings should be explained.

Targeted Consumer/Clients

The main target of this industry will be the general public as it is majority of nation who
will use this product in their houses and other includes buildings and offices of both
government sectors, public sectors.

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PLASTIC FITTING INDUSTRY

4. MANUFACTURING PROCESS

4.1 Technical Know-how availability

For this industry we are using different varieties of injection moulding machine with
different production capacities. They use different types of mould in order to produce 10-
12 different products. The whole machine comes from the company as set.

4.1 Step By Step Description of Process

Material required:
High density plastic

1. First of all we use high density plastic granules for production.

2. The machine is turned on for few minutes to get heated up.
3. The granules are then poured into the hollow cylinder
4. Then the piston is forced down into the cylinder where in a few minutes after
heating the plastic is converted into a paste
5. This paste is then put into moulds so as to form desired or respective products.
6. These moulds are then allowed to cool for a few minutes by the help of a fan .
7. Then respective product is drawn from each mould.

This is the process through which we get desired products which can be used as
electrical fittings.

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PLASTIC FITTING INDUSTRY

5. PRODUCTION SCHEDULE

No of Working days per annum - 300 days

No. of working shifts (8 Hrs) per day - 2 shifts
Installed capacity (say annual) - 60 lakhs
Utilized capacity (%)
1st year - 60%
2nd year - 75%
3rd year - 80%

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ENTREPRENEURSHIP PROJECT

6. DETAILS OF THE PROPOSED PROJECT

6.1 Land and Building

Sr. No Particular Area Required Total Value

1. Land ¼ Acres 1 Lakhs
2. Building 900 sqr. Ft 2,00,000
Total: 3,00,000

6.2 Machineries/equipments

Sr. No Description Nos. Required Rate Total Value

1. ½ oz 2 14,000
2. ¾ oz 2 20,000
3. 1 oz 1 12.000
4. 1 ½ oz 2 40,000
4. 2 ½ oz 1 50,000
Total 1,36,000

6.3 Misc. fixed assets

Sr. no. Particulars Nos. required Rates Total value

Electrification with 64,000 64,000
1 1
Stabilzer
64,000

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ENTREPRENEURSHIP PROJECT

6.4 Preliminary and pre operative experience

Amount(Rs in
Sr. no Particulars Remarks
lakhs)
1. Establishment 4

6.5 Sales revenue

Year Quantity Rates per unit Sales

Items
(2007) sold/year (Rs) realization(Rs)
Elbow 3lakhs 0.60 1,80,000
Tee 2.1Lakhs 1 2,10,000
Press saddle 1lakhs 0.40 40,000
Bar saddle 3lakhs 0.80 2,40,000
Junction box 1.2 lakhs 2.60 3,12,000
Junction dp box 0.9lakhs 2.60 2,34,000
Round plate(2
5.4lakhs 1.50 8,10,000
hole)
Round plate(4
5.4lakhs 1.50 8,10,000
hole)
RS 1”* ¾” 3lakhs 0.60 1,80,000
RS ¾”* ¾” 3lakhs 0.60 1,80,000
RS 1”* 1” 3lakhs 0.60 1,80,000
Total 33,76,000

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ENTREPRENEURSHIP PROJECT

6.6 Raw material

Sr. no Items Quantity Rates(Rs)/ton Total value(Rs)

High
1. Density 10 ton 7,50,000 7,50,000
Plastic
Total-
7,50,000

6.7 Utilities
Annual
Sr. no Particulars Remarks
expenditures(Rs)
1. Power/electricity 36,000
Total 36,000

6.8 Man Power (Salaries/wages)

Wages/salaries Annual
Sr. no Particulars No.
per month (Rs) expenses (Rs)

1. Skilled 2*90*30 5,400

2. Semi skilled 4*70*30 8,400
3. unskilled 13*60*30 23,400 5,90,400
4. Office staff 4*100*30 12,000
5. Any other
Total- 49,200

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ENTREPRENEURSHIP PROJECT

6.9 Repairs and maintenance

Sr. no Particulars Amount (Rs)

Repairment of machine
1. 50,000
parts

6.10 Selling and distribution expenses

Sr. no Particulars Amount Remarks

1. Publicity expenses
2. Traveling
30,000 Print and electronic
3. Freight
20,000 Media
4. Commission
5. Misc.
Total- 50,000

6.11 Administrative expenses

Sr. no Particulars Amount (Rs)

1. Stationary & printing 10,000
2. Post/telephone/telegrams 15,000
3. Entertainment expenses 12,000
4. Misc. 5,000
Total- 32,000

6.12 Interest

Outstanding loan amount

Year Interest Value in Rs
(Rs)
2007 17,00,000 10%PA 1,70,000

6.13 Depreciation

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ENTREPRENEURSHIP PROJECT

Cost of Depreciation
Sr. no Type of asset Expected life Depreciation
asset per year(Rs)
1. Plant 2,00,000 10yrs 20% 40,000
2. Machine 1,00,000 5 yrs 5% 5,000
Total 45,000

6.14 Misc. expenses

Sr. no Description Cost (Rs)

1. Damage of plastics 21,000

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ENTREPRENEURSHIP PROJECT

7. WORKING CAPITAL

Sr. No. Item Rs.

1. Raw-Material 7,50,000.00
2. Salary/Labor 5,90,400.00
3. Interest on loan 1,70,000.00
Total 15,10,400.00

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ENTREPRENEURSHIP PROJECT

8. TOTAL COST OF THE PROJECT

Sr. No. Particulars Total Value(Rs.)

1. Fixed Capital 5,00,000
(Total if item No.2.1,2.2,2.3)
2. Working Capital margin 15,10,400
(Total of item No. 2.5)
3. Preliminary & Pre-operative 4,00,000
Expenses
(Total of item No. 2.4)

Total 24,10,400

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ENTREPRENEURSHIP PROJECT

9. MEANS OF FINANCE

Sr. no Particulars Amount(Rs.) Remarks

1. Term loan 10,00,000 Financing institution
2. Working capital loan 7,00,000
3. Own investment 7,10,400
Total- 24,10,400

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ENTREPRENEURSHIP PROJECT

10. PROFITABILITY PROJECTIONS

Sr. no Particulars Amount(Rs)

A. Sale realization 33,76,000
B. Cost of manufacturing
a. Raw materials 7,50,000
b. utilities 36,.000
c. salaries/wages 5,90,400
d. repairs or Maintenance 50,000
e. selling and distribution expenses 50,000
f. administrative expenses 32,000
g. interest 1,70,000
h. depreciation 45,000
i. misc. expenses 21,000
j. Rent NA
Total 16,94,400
C. Gross profit/loss (A-B) 16,81,600
D. Income tax (33.6%) 5,65,017
E. Net profit/loss 11,79,382

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ENTREPRENEURSHIP PROJECT

11. BREAK EVEN POINT

Break even point = (Fixed cost X 100) / (Fixed Cost + Profit)

= (500000 x 100) / (500000 + 1681600)
= 22.92

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ENTREPRENEURSHIP PROJECT

12. CONCLUSION
This proposed project plastic fitting industry must be a successful launch if the required
items are available and the market strategy as same as we have decided. The demand of
this type of product is high in the market means the plastic goods are essential for the
customers. Before placing the product in the market the product should be well advertised
among the people. The easy finance is available from the commercial banks and the
requirement of the capital is very less and some amount is shared by the entrepreneurs.
The estimated Sale Realization is Rs.33, 76,000 and Cost of Manufacturing/Servicing is
Rs.16, 94,400. Hence we should have the gross profit of Rs.16, 81,600. The market of
plastic industry is one of the most demanding sectors. The market is flooding with new
plastic products retailers.

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ENTREPRENEURSHIP PROJECT

REFERENCES
[1] www.eeaonline.org/indonesia
[2] www.NIIR.org
[3] www.ecenter.mit.edu/elab
[4] www.nstedb.com
[5] www.techno-preneur.net

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