Business Plan

RAINBOW MANUFACTURING PVT LTD

(A PLASTIC RECYCLING COMPANY)

[STARTING YEAR- 2020]

“This is business plan is submitted to Mrs Adnin Rifat as a part of
project management course .”

Submitted by:

Aman ullah (1603310108852)

Mahamudul hasan rifat (1603310108785)
Akram hossain (1703510109281)
Miskatul Hassan munna (1603310108778)
Md sirajul islam(1603310108840)
 Executive summary
Plastic is the basic need of our day to day life. During recent years the plastic
industry has grown with a substantial growth rate. This growth is driven by three
sectors, such as packaging, infrastructure and agriculture. There are the various
verities of plastics out of which PVC (Polyvinyl chloride) and PET (Polyethylene
terephthalate) plastics have their considerable contribution. PET plastics are
generally used in the manufacturing of beverage bottles for the packaging and
PVC plastic is used in the production of household plastic materials. The growing
utilization of plastics in industrial and consumer applications and surrounding
solid waste recycling, has led to an increased demand for recycled plastic resins
and products.

We provide a wide range of plastic solutions for household and raw material for
packaging of various companies. As a part of our ongoing efforts to exploit this
opportunity we will recycle the plastics and then produce kitchen ware items and
other related plastic material. We will also sell the recycled plastics to the
companies in the plastic business. We will have a recycling plant along with the
production unit. The raw material will be procured from the waste collectors. The
raw material will be post consumed beverage bottles and other soft plastic
materials.

COMPANY OVERVIEW
RAINBOW MANUFACTURING PVT LTD provide a wide range of plastic
solutions for households and raw material for packaging to the various
companies. Bayazid is the place where the facility will be established and other
operation will commence.
We will collect the plastic garbage like consumer beverage bottles, plastic bags
from various garbage stores and then our recycle unit will process it which
eventually be used for the production of finished goods.

The plastic garbage we are getting as raw material has two components one is
PVC (Polyvinyl chloride) and other is PET (Polyethylene terephthalate). Firstly
the whole garbage is melted and then PVC and PET are separated from each
other by froth flotation technique.
We will create a plant (actual facilities to be shared with the recycling unit) to
manufacture extruded plastic flakes (purified plastic). The extruded plastic is then
molded in the various products.

We will produce two types of replay plastics

 PVC( Polyvinyl chloride)

 PET( Polyethylene terephthalate )

Mission Statement
 Strive to provide the excellent plastic solution to the customers at
competitive prices.
 Continually expands our range of products.
 Is poised to service both large and small customers.

Markets and Products

The plastic products usually do not carry a brand name so intruding in the
business like plastic will not be too hard with low price strategy. The population of
Chittagong division is around 3Cr. and this area is basically comprises of low to
middle income group families so they focus on plastic products rather than fiber
since it is a cheaper. Hence it is huge market to exploit.

From Chittagong city 4600 tons of solid waste is produced from that around 200
tons of plastic bags and plastic bottles is generated per day. So the supply of raw
material will be continuous.

Apart from this we will sell raw material for packaging to the various small
companies in this area. Around 30 small and medium scale companies are
working in this region. So a large amount of industrial customer is also available.

There are two folds of products that we are providing one is industrial and other
is household.
Objectives
 Develop a business that survives on its own cash.
 Create a company which exceeds customer satisfaction level.
 Expand the service to whole Chittagong Division in first five years and
then to whole country.

Key to success:

The main keys to the success of the Company are:

 Secure Supply- Contract for supply of post-consumer bottles and post-

industrial manufacturing waste for PET raw material feed stock.
 Satisfy our customer so that we can retain them
 Maintain low overhead and operating costs.

Product and services

We will provide a wide range of plastic products for households and raw material
for packaging.

The recycled plastic is processed to Polyethylene Terephthalate (PET). PET is a

thermoplastic polymer viscous of polyester family. The biggest property of this
compound is it transparent. This is the reason why it is used for packaging. Apart
from this PET have good strength, ductility, stiffness and hardness. After the
recycling process completed an extruded plastic is generated. Plastics extrusion
is a high volume manufacturing process in which raw plastic material is melted
and formed into a continuous profile.

The products we are producing are

 Cleaned and recycled plastic flakes of PET and bottles, recovered from
post-consumer beverage bottles.
 Household finished plastic goods.

PET flake will be sold to thermo formers (those who mold plastic sheets into usable
products) primarily to be used to produce high-visibility packaging and also to the
beverage companies for packaging.

Recycled plastic is widely used in mainstream construction products such as

damp proof membrane, drainage pipes, ducting and flooring. Bins, street signs
and planters are frequently made from plastic.
Possible obstacle

The product is completed and ready for the market launch. The possible
obstacles are

 Company may not meet environmental standards

Industry and marketplace analysis

Industry analysis

At present, there are about 5000 plastic industries In the country of which 3500
are small and 1480 are medium and 20 are large sized. Currently recycling of
plastic wastes saves import cost for the industry and helps improve overall waste
management situation. The small unit were estimated to recycle nearly 60% of
plastic waste, which save approximately USD 44 million worth of imports in raw
materials.

Annual sales of plastics products are estimated at around BDT 150 billion in the
local market, in which household items account for nearly BDT 20 billion.
According to the BPGMEA data currently 300 manufactures export plastic good
worth nearly BDT 30 billion annually.

Besides, The local market of Bangladesh plastic products is about BDT 200
billion a year. Currently this industry produces 2500 types of plastics products.

Bangladesh spends about USD 225 million a year on import of more than
140000 tons of raw materials to produce PET products.

So, this is the huge market with high demand for Raw material of plastic.
STRUCTURE OF THE PLASTICS INDUSTRY

The following pattern is likely to be general but there will be some variation from
country to country.

 Raw Material Producers

 Compounders

 Stockists

 Specialist Manufacturers or Molders

 Other Manufacturers

Customer analysis

Since we are new player in the market so we need to make some stringent
strategies to penetrate market and grab customers. The customers of the plastic
industry are scattered due to lack well known brand names. So our first priority
will be to accumulate the defused customers.

The direct customers are the customers whom we are selling our product
regularly. So for us households whom we are selling plastic goods and
companies who are getting raw materials for packaging are direct customers
(PET bottles). So only in Chittagong around 50,000 families are our direct
prospective customers and in terms of business to business market around 20
small and medium scale companies are our direct customers

Competitor analysis

In plastic manufacturing market there is no specific brand name is existing so the

market is flooded by small companies which are in this business. So they are our
biggest direct competitors.
 Operations

The operations is defined as the process used to deliver your products and
service to the customer market place and also include manufacturing
transportation logistics travel and after sales services.

The facility is located at outside the city. Facility is divided in two parts

 Recycling and Production unit

 Warehouse

Stages of Recycling and Production

The process of recycling of waste plastics into products of varying usefulness

involves the following essential steps:

 Sizing / Chipping
 Cleaning
 Segregation.
 Agglomerating / Colouring
 Extrusion / Palletisation
 Fabrication into end Product.

Chipping:

The plastics waste is then required to be properly sized so that those may be
fed into the extruders for processing and palletizing. The sizing operation
depends on the type and shape of the waste plastics.

During this process, attention is required to separate any powdery material

from the sized / chipped plastics.

Segregation:

Certain polymeric materials are compatible with each other at all proportions.
For example LDPE and Lldpe are generally compatible to each other at all
proportions.

The advanced technology of separating / segregating different types of waste

plastics involves ‘Floatation Process’. In this process the property of the
 varying densities of different plastics is made use of for segregating different
types of plastics.

Cleaning:

The scale of cleaning depends on the type of waste. Whenever a cleaning

operation is involved, it is to be ensured that the water or any other cleaning
material used, should be discharged after ascertaining that the discharge
does not contain any objectionable substance. A proper Treatment Device
may have to be deployed – like a water treatment plant / effluent treatment
plant. For drying, a suitably designed drier is used.

Agglomerating / Colouring

In the next operation the sized plastics waste is mixed with color master batch
in high-speed mixers and the output is ready for extrusion into pellets.

Extrusion

This is the most important part of the process wherein the sized / chipped
plastics are plasticized and granulated to make the plastics material ready for
fabrication next.

The type and size of the Extruder depend on the type and volume of the
plastics waste.

Fabrication into end Product

Finally the reprocessed plastics granules are used as raw material for
producing end products using similar fabrication machines like Injection
Molding / Extrusion etc., depending upon specific requirement.

Scope of operations

Now presently our production capacity is 200kg/day from which in initial stages
we are utilizing around 50% of it. As the business expands we will reach to
optimum capacity utilization. We are expecting that we will start producing more
advance plastics in the fourth year of our operations and accordingly the sales
will increase and the facility will have to be expanded.
Process flow chart
Facility Layout
Financials
The startup cost of our business is as follows:

Start-up
Requirements Amount
Start-up Expenses
Legal 6,000
Stationery 500
Business Cards 500
Initial Mailing 100
Process Funding 400
Office Equipment 2,500
Total Start-up Expenses 10,000

Start-up Assets
Cash Required 1,00,000
Other Current Assets 0
Long-term Assets 33,30,000
Total Assets 34,30,000

Total Requirements 34,40,000