Vous êtes sur la page 1sur 27

Report on

The Business Plan

Prepared For: Business Plan Competition

Prepared By: Angelic Mind Batch: 101

(Bachelor of Business Administration) Submission Date: 20th February, 2012.

Business Plan Concept

Easy Recycling Process of Paper

(Re-Writeable Paper, Erasable Ink Pen, Easy Spray)

For Business Plan Competition Primeasia University

Index

Executive Summary A. Business Idea: Our business plan is a process to convert used paper to the new, rewriteable paper. The process is known as easy recycling process. B. Implementation Plan: In the initial stage, we will start with the establishment of small/medium scale firm with support of Government in order to sustain in case of initial losses. Well try to capture the market by different means of marketing (Electronic, Print, Radio, TV etc). When our product captures target proportion of market, well then plan for the extension of the firm, either by expanding the plant size in the same area or installation of new plant on new piece of land. C. Financial Plan: Initial capital requirement for this processing will be around Tk. 50,00,000/-. D. Social and Economic Benefits: This process can reduce water use in paper production by nearly 60% and energy consumption by 40%. Air pollution can be decreased by 74% and water pollution. by 35%. Re-useable paper products are friendly to environment. Most of the people dont know about the concept of reusable paper. If awareness is created amongst the individuals, this will lead to increase in re-useable products demand.

Return on Investment: We plan to a lot his percentage of return on investment to our investor. However, if the net profit falls below the return value, we will then go for a different percentage which will be based on not profit.

General Company Description:

Company overview Papyrus paper mills is situated at Rupgang in Naraengang. It was formed by A.K. Khan in December 2010. It provides deluxe paper, erasable ink pen and spray. Papyrus Paper mill will used raw materials of sugar cane waste and jute pulp. If people encourage using our paper surely it will reduce the cutting of trees. Mission and Vision: Mission: Papyrus Paper Mills Ltd. believes in achieving intact rate of growth & being one of the best paper manufacturer organizations. Our aim is to keep our own position compact as well as to create national economic growth & value for our shareholders. Our primary objective of trade & commerce is to satisfy customers, investors, shareholders & employees; and to develop the society. Overall, our program is directed for these purposes. Manufacture & distribution of quality grade papers at reasonable prices is our main focus. Business is directed through maintaining strong moral quality which enables us to create assets for the organization

Vision: To create social and environmental awareness against deforestation and wastage of paper.

Products Overview Papyrus Paper Mills will provide the following products: Re-writeable paper Erasable ink pan Easy spray.

Erasable Inks (Blue):

We provide a wide range of Erasable inks to our clients entire range of erasable inks provided by our company is manufactured by using high grade raw materials sourced from reliable vendors. Paper Re-writeable process include the following main steps: At first you have to write with erasable ink pan (blue) on the rewriteable paper. Then apply erase spray over the particular paper.

Within a few seconds ink of your paper will be vanished. Now, your paper is ready to re-write.

Figure: Product Life Cycle

Benefits and features There will be reduction of cost and wastage of paper. Rate of cutting of trees will be minimized. Our product is environment friendly and harmless.

Strengths and core competencies Experienced R & D department. High quality product in comparison to competitors. Environment eco-friendly and healthy products. Owners commitment and dedication towards anti-pollution.

Challenges: Papyrus Paper Mills will face a challenging situation in creating its brand image and attracting customers towards its products due to presence of already established competitors in the local market. Such as: Bashundhara Paper Mills Khulna Newsprint Mills TK Papers Mills Karnaphuli Paper Mills.

Industry Analysis A Paper mill can be described as a manufacturing facility that is intended to provide convenience product with the help of special chemicals such as Si02, C, ethanol ... etc. It normally serves the educated people specially students and teachers.

In Bangladesh we have get a very large mill at Chandraghona in Rangamati district. There is another paper mill at Pakshi in North Bengal. The Khulna Newsprint Paper mill is also a large one.

Why do people buy our products?

Paper is a thing which is used in our daily basis. it is used in schools, colleges, offices, universities, courts etc. Huge amount of paper is needed to fulfill the demand. Everyday huge amount of paper are used & wasted. Students also buy paper for their writing purposes. If they buy our rewriteable paper they will not only minimize their cost but also they will contribute to save our environment. Because to make paper every year we cut huge amount of trees. Papers is usually made from wood grasses, bamboos and sugar cane wastes. For instance, the Karnaphully paper mill of Chandroghona used bamboo and Khulna Newsprint Mill uses Gaowa as raw materials.

Market Analysis: Industry life cycle: Paper mill industry in Bangladesh still at growing stage. According to central bank statistics, Tk. 29.0 billion was spent to produce imported pulp, weste paper, finished and specialized paper during the 2008-9 fiscal year. However, the countrys demand for industrial paper is around 250,000 tones, writing paper around 250,000 tones, newsprint around 40,000 tones and specialized paper around 10,000 tones, according to industry insiders. Most of the leading paper manufacturers are now expanding their plants aggressively. The growth in demand for industrial and specialized paper including offset, A4, and carbon-less is rising by more than 10 percent annually while the demand for writing paper remained almost static in recent years. Double A of Thailand is supplying 63% of the computer and photocopy paper and century of India has captured 12% of the countrys specialized category paper market. Industry insiders said Bashundhara Group, which had lunched paper production on large scale in 1996-97 with a capacity of 100 tons a day in the private sector, is the countrys market leader. Earlier, there were four static owned paper mills. Khulna Newsprint Mills was established in 1996 in Khulna based on Gewa wood is now closed. Another government paper mill was in Pakshi and its raw materials was cane bagasses but it is also closed now. Only KPM is still in production and its capacity is 100 tons a day.

SOWT Analysis Strengths: Management committed towards to a result oriented approach to attract and maintain customers in a highly competitive market. Company will hire qualified, educated, and skilled chemist. We can patent our product. Science this is a non existing product in the market we dont have direct competitors. Weaknesses: Since this is the first stage of our business initial cost are high. The marketing budget of our company is short to attract large business clients. Though it is a new category of paper in the market so customers do not know about our papers benefit. Thats why they are not willingly to buy this products. Opportunities: In todays world people are more aware of the environment which fits our product and its a positive side for us. Though the expense is increasing in our daily life and if people realize that our product will minimize their expense then they will interested to buy our product. We can easily capture the market because our product is unique. Threats: Since we are lunching our product for the first time, we have to sell the 3 products re-writeable paper, erasable ink and easy spray) together at the same time. Normal paper is a great invention in human civilization so we cannot ignore it if we want.

Threat of intense segment rivalry: Though there is a lot of aggressive paper company in the market such as Bashundhara, TK, Karnaphuly etc but there product is almost similar without any unique feature.

Our most opportunity is that we have no close competitors. Double A, Kornofuli paper are our indirect competitors. Although, our product is different from our competitors product. So, in this segment our competitive advantage is very high. Threat of new entry: We get extra opportunity because we have no nearest competitors and there is no possibility to enter a new company as like us. We must patent our product so that no company can capture our product feature. To enter the market properly, try to good performing and in our business our investment is not so high, because our production cost is comparatively low. So, exit barrier is low. Suppliers bargaining power: Our Paper industry uses sugarcane waste and jute pulp as raw materials so we think suppliers bargaining power is very low since Bangladesh is a land of golden fiver. Buyers bargaining power: Though similar product is available in the market but our product feature is absolutely unique. For these reason buyers bargaining power is also low. Threat of substitute: Normal paper can play a substitute role as an alternative to our paper. Computers and paperless office also a good substitution of our product but that is too much expensive. The most influential analytical model for assessing the nature of competition in an industry is Michael Porter's Five Forces Model, which is described below:

Porter explains that there are five forces that determine industry attractiveness and long-run industry profitability. These five "competitive forces" are The The The The The threat of entry of new competitors (new entrants) threat of substitutes bargaining power of buyers bargaining power of suppliers degree of rivalry between existing competitors

Figure: Porters Five Forces There is no near substitute for our product, because we are first introducer, though we have no competitors, which are why we get extra advantages at this stage . Threat of buyers bargaining power: We offer a package for the consumer. If they will buy our product, they almost get extra benefit because it will reduce their cost as well as they expense, we think they will not bargaining to buy our product.

Figure: Graphical Presentation of SWOT

Mass Supply / Mass sale Papyrus Paper mill produces paper in its paper mill and it sell their products in its own stationary named Papyrus stationeries. It also distributes its products in other stationeries as well. By this process it can spread its product all over the country. Media Advertising: Papyrus Paper Mill will use internet, newspaper, magazines, television and radio as the medium of advertisement. In addition it will print 5000 brochures / leaflet for creating awareness in the market about their health care services, it distributed in major social awareness seminars, book fairs, education fairs and events where Papyrus Paper Mill will participate.

Product Execution Timeline: Papyrus Paper Mill will follow this product execution model to enter in the paper market Task January Choosing location Website development Hiring training and admin staff Advertising Lunching products of February Execution Period March April May June July

Location: Papyrus Paper Mill will start its business at Rupgang area in Narayngang.

Personnel: Papyrus paper mill will start with a total of 200 initial staffs members, laborers and owners as well.

Cyclical Trends in Industry: Paper Industry is pretty much affected by our various cultural trends. Such as book fairs, board examinations. Market Demand: Ease of product: People are looking for paper that is re-useable and less expensive. Effectiveness of product: It can be re-used multiple times and reduce wastage of paper. Eco-friendly: this paper works indirectly for anti-pollution. Market Facts: In Bangladesh there are many educational institutes that order tons of paper for educational purposes. News paper is still a huge source of entertainment in Bangladesh. As a result huge amount of paper is used in our print media. Students of all ages use books, note books, diaries etc around the country. Paper industry is cutting town a lot of trees in order to make paper every year. Bangladesh is way behind in technology. As a result it is not yet possible to make a paperless office.

Facts about papers and paper waste: Approximately 324 of water is used to produce 1 kg of paper Source: Environment Canada Average worldwide annual paper consumption is 48 kg per person.

Source: International Institute for Environment and Development (IIED) The paperless office, once predicted as a result of IT, has not transpired. Industry analyst estimate that 95% of business information is still stored on paper. Source: International Institute for Environment and Development (IIED) Recycling 54 kg of newspaper will save one tree. Source: Government of Canada. It is estimated that paper consumptions has rised by 50% by 2010. The average daily web user prints 28 pages daily Source: Hewlett Packard (HP) 10,000 trees are cut down annually in china to make holiday cards. Every tree provides oxygen enough for 3 people to breathe. Source: North Carolina Office of Waste Reduction and Recycling. Recycling one ton of papers saves 682.5 gallons of oil 7,000 gallons of water, 3.3 cubic yards of landfill space. When paper rots or is comported it emits methane gas which is 25 times more toxic than Co2. Source: International Institute for Environment and Development (IIED)

Market Trends: The demand of paper is increasing day by day. We can see paper in various qualities, such as news print, white print, A4 paper etc. Colorful papers are used in decorating purposes.

Price New-product Pricing Strategies: Market Penetration Pricing: Papyrus paper mills will face a challenging situation in highly competitive market of Dhaka, Chittagong, Comilla, Rajshahi ,Khulna, Shylet and Barishal all over the divisional city in Bangladesh. We target this divisional city for the reason of highly reputed educational institution.Therefore, we will offer high quality product at cost less than its benefits than existing market competitors. Rather them retting a high initial price to skim off small but profitable market segments, we use market perpetration pricing. We set a low initial price in order to penetrate the market quickly and deeply to attract a large number of buyers quickly and win a large market share. The high sales volume results in falling cost, allowing the companies to cut it prices even further and it will be very helpful to receive a loan.

Figure: Pricing Strategies Matrix

Product Mix Pricing Strategies: Product Bundle/Package Pricing:

We will make a bundle of products (25 pieces A4 paper + erasable ink pan + easy spray) and offer the bundle at a reduced price of Tk. 95 only.

Financial Plan Start-up Expenses The start-up expenditures for Papyras Paper mill are summarized below: Start-up Expenses Papyrus Sources of capital:

Investment requirement _____________________ Total investment ________

Tk.:

9,000,000 Tk: 9,000,000 _____________

Start-up Expenses: ________ Factory Machines Delivery Van Capital Expenditures Promotion Labor cost Total Start-up Expenses

Tk ______________ 2,000,000 15, 00,000 15, 00,000 5, 00,000 5, 00,000 2,000,000 __________________ 8,000,000 _____________________

Balance sheet (Projected) Papyrus Paper Mill

Assets: Current Assets: Cash in Bank Account Receivable Prepaid Expense 90,000 15,000 12,770,000 1,00, 000 15,000 12,885,000

105,000

Fixed Assets: Factory Machines Delivery van Total fixed assets 2,000,000 15,00,000 15,00,000 5,000,000 Total Assets Liabilities and Equity: Current Liability: Accounts payable Long term Debt: Bank Loans payable Total Liabilities 6,00,000 1,000,000 15,00,000 25,00,000

5,105,000

15,385,000

9,000,000 96,00,000

Owners Equity: Retained earnings beginning Retained earnings current Total owners equity Total liabilities and equity 5,105,000 5,105,000 5,105,000 5,105,000 6,80,000 5,785,000 15,385,000

Revenue Forest (3-year) Sales forecast (3-year) Papyrus paper mill

Explanations Year-1: 50,000 Packages * Tk. 95 All packages (40 pcs): 40,000* tk. 50 Erasable Ink Pen: 30,000 * tk. 15 Easy spray ( 300 ml): 20,000 * tk. 80

Year-1 47,50,000 2,000,000 4,50,000 16,00,000

Year-2

Year-3

Year-2: 60,000 Packages * Tk. 95 All packages (40 pcs): 50,000* tk. 50 Erasable Ink Pen: 37,500 * tk. 15 Easy spray ( 300 ml): 25,000 * tk. 80

57,00,000 25,00,000 5,62,500 2,000,000

74,10,000 37,50,000 7,20,000 26,00,000

Year-3: 78,000 Packages * Tk. 95 All packages (40 pcs): 75,000* tk. 50 Erasable Ink Pen:48,000 * tk. 15 Easy spray ( 300 ml): 32,000 * tk. 80

88,00,000

107,62,500

14,480,000

Profit and loss projection (3 year) Papyrus paper mill

Explanations Revenue: Sales Total Revenue Operating cost: Factory Machines Delivery van Capital expenditures Promotion Labor cost Total Operating Expenses

Year-1

Year-2

Year-3

8,800,000 8,800,000

10,762,500 10,762,500

14,480,000 14,480,000

2,000,000 15,00,000 15,00,000 5,00,000 5,00,000 2,000,000 8,000,000

5,00,000 6,00,000 25,00,000 36,00,000

5,00,000 7,00,000 3,000,000 42,00,000

Profit before taxes Taxes (15%)

8,00,000 1,20,000

71,62,500 10,74,375

10,280,000 15,42,000

Net profit

6,80,000

60,88,125

87,38,000

Pro forma Cash flows Papyrus paper mill

Explanations Cash Received: Cash From Operations; Cash Sales Sub total cash from operations Additional cash received: New borrowing Sub total cash Received Expenditures: Promotion Labor cost Sub total spent on operations Additional Cash Spent: Taxes Purchases of long term assets Sub total cash spent Net cash flow

Year-1

Year-2

Year-3

8,800,000 8,800,000

10,762,500 10,762,500 10,762,500 10,762,500

9,000,000

17,800,000 10,762,500 14,480,000

5,00,000 2,000,000 2,500,000

6,00,000 2,500,000 31,00,000

7,00,000 3,000,000 37,00,000

1,20,000 5,000,000 25,00,000 51,20,000

10,74,375 -

15,42,000 -

41,74,375

52,42,000

12,680,000 19,358,125 28.596,125

References: http://www.ehow.com/list_7401309_chemicals-make-ink_.html http://www.ehow.com/how_12217240_make-erasable-ink.html http://www.paperonweb.com/chemical.htm http://www.paperonweb.com/wood.htm#top1

http://www.id2.ca/downloads/eco-design-paper-facts.pdf http://en.wikipedia.org/wiki/Paper_pollution http://wiki.answers.com/Q/What_chemicals_are_used_to_make_writing_pap er http://en.wikipedia.org/wiki/Methanol http://mpra.ub.uni-muenchen.de/17206/1/MPRA_paper_17206.pdf http://www.ehow.com/how-does_5019302_ink-eraser-work.html http://www.indiamart.com/rayudulaboratories/ http://www.indiamart.com/rayudulaboratories/erasable-inks.html http://www.worldscrap.com/modules/news/article.php?aid=13501 www.thefinancialexpress-bd.com http://en.wikipedia.org/wiki/Invisible_ink#Properties_of_an_.22ideal.22_invi sible_ink http://chemistry.about.com/library/weekly/aa121602a.htm http://tutor2u.net/business/strategy/porter_five_forces.htm http://www.netmba.com/marketing/product/lifecycle/ http://marketingteacher.com/lesson-store/answer-pricing.html Principles of Marketing (13e) By Philip Kotler and Gary Armstrong