BUSINESS PLAN

 Concept: - We want to set-up a small scale industry for

plastic products which will be produced semi-finished and
will be supplied to large scale industries for making it the
final product.

 Objective: - Our main motto behind this is that there are so

many things which are made-up of plastic and thus we
have a greater scope for these products.

 Name of the company: - New Light Plastic Manufacturers

 Type of Business: - Partnership firm

 Names and Educational Qualifications of Partners : -

• Muzammil Deshmukh, MMS from Kohinoor college, Mumbai

• Priyanka Naik, MBA from NMIMS, Mumbai

• Fazlurrehman shaikh, Engg in instrumentation, Mumbai

• Amey Kavale, MBA from S.P. Jain, Mumbai

  Location of factory is decided to be Silvassa
as; there we get cheap labour, better environment, less
VAT charges to be paid and huge market for plastic
products.

 Availability of Land: - Land is given by one of

our partners, Mr. Siddharth Kheria

 Environmental aspects: - It is the guarantee of

the company that the environment will not be polluted. The
harm to the environment is too minimal, also as, the factory
is established in the industrial area far from the residential
area.

 Products: -

Medicine Box
Jewellery Box
Plastic belts
Plastic dice
Hangers
Plastic Bottles

The products will be superior in quality than the other

competitor products’ as we adopt Japanese technology.

 Method of Production: - Job and Batch Production

 Machinery: -

• 3 machineries named as Carmix

will be purchased for manufacturing purposes.
• Also, a mixer and a cooler are
required.

• Cost of 1 machine: - Rs. 5,00,000

• Cost of Mixer: - Rs. 50,000
• Cost of Cooler: - Rs. 30,000

 Construction of
Building is carried out for Rs. 4,00,000

 Budget: - The total

budget estimated is 30,00,000 (30 lacs)

 Availability of Money:
-

Rs. 4, 00,000 will be contributed by each partner except from

Mr. Siddharth Kheria as he is contributing land.

 Return on Investment is expected to be 8% p.a.

 Loan to be taken: - A loan of Rs. 15, 00,000 is to be

taken from HDFC Bank @ 6% p.a. interest.
 Power Supply: - Power to be supplied by the local
provider of Silvassa and the units to be consumed per day
are 50 units.

 Oil: - Oil will be supplied by Hindustan Petroleum.

 Depreciation: - Depreciation on assets will be 10% p.a.

by Straight Line Method of depreciation.

 Recruitment of People: - Five semi-skilled labourers

will be recruited to carry on the manufacturing process.

 Employee’ related Issues: -

• Wages: - Rs. 120 per day

• Provident Fund: - The Employee’

Provident Fund Act is followed and all the employees
of the company are entitled to contribute in it.

• ESIC Act is also followed by the

company.

 Insurance: - The factory building is insured for Fire

insurance and the ESIC (Employee State Insurance) Act
will be followed.

 Raw-Materials: - From Bajaj Manufacturers &

Suppliers
 • Material 1: - Plastic Granules @ Rs. 48 per kg

• Material 2: - Polistering @ Rs. 72 per kg

• Material 3: - Various Colours @ Rs. 12 per

250g pack

 Marketing: - The media of

communication will basically be the PR activity, face-to-face
communication with clients and through pamphlets. The
company follows continuous research process. And, the
expenses on marketing of product will be minimal.

 A summary of various costs involved:

-

• Raw-Materials

Material 1 4,800
Material 2 7,200
Material 3 2,000 14,000

• Wages
18,000

• Power & Electricity

10,000

• Maintenance
1,000
• Insurance charges
5,000

• Transportation
2,000

• Warehousing
1,000

• Other Expenses
1,000

TOTAL: 52,000