UNITY Md. Shafiul Azam Salman Nature of Business: As an Entrepreneur we have decided to establish a Plastic Recycling Plant as there only a few plants like this in Bangladesh. The title of our business is “Green Plastics”. Scrap plastics are very much available in our country and we need not to spend a lot of money to collect them. Only the local garbage collectors collect them and sell and/or exchange them for some other product. Location: Address: Puran Dhaka City: Dhaka Country: Bangladesh As most of our raw materials as in plastic scraps are sold in the Puran Dhaka area we decided to set our location in Puran Dhaka. Lot of small plastic scraps dealers sell plastic scraps wholesale or retail. We can buy those scrap plastics and because of close location our transportation cost will be reduced. Our office is situated at a 1100Sqft small single stored building. Product Services: Plastics are one of those products that we used for almost every daily works. But in Bangladesh there are very few plastic recycling facilities. With a population of this huge plastic is very much available and we can find them as a form of soft drinks bottles, bags, rappers, biscuit trays, pipes, sauce bottles and so many ways. Recycled plastics will sort out according to types of plastic in a form of plastic sheets and blocks. Our main focus will be producing clean, cost-efficient, recycled raw material for manufacturers of thermoform, laminate and other high value-added products, thereby reducing costs and creating a clear pricing edge among their competitors. Plastic bags and plastic sheets are now in high demand. Important Features: This plant is going to be one of the first plastic recycling plants in our country. With a population of this huge plastic is very much available and we can find them as a form of soft drinks bottles, bags, rappers, biscuit trays, pipes, sauce bottles and so many ways. Recycled plastics will sort out according to types of plastic in a form of plastic sheets and blocks. Our main focus will be producing clean, cost-efficient, recycled raw material for manufacturers of thermoform, laminate and other high value-added products, thereby reducing costs and creating a clear pricing edge among their competitors. Plastic bags and plastic sheets are now in high demand. And this demand is driven by continuously increasing promotional activities. As this is one of the few recycling plants in Bangladesh so we are only focusing on plastic materials though there are hundred other wastes are around. SWOT Analysis: It will be difficult for us to do SWOT analysis as we are just starting our business. Our weakness will be if our quality is not as good as the other plastic manufacturing companies. Threat will be like any other company can join the market and provide better products. Being a new company in the market it will be difficult for us to do the forecasting such as: economic forecasting, customer forecasting, market environment forecasting, cost forecasting etc. The SWOT analysis is given below: Strength Available resources. Benefit for citizens. Cheap & available raw materials. It helps to protect our environment. Weakness It’s not popular system, so there has a problem of unskilled employees. It’s not very profitable Opportunities Can be a profitable company in market. Creates the opportunity for green job creation. Threats Anyone can enter into the market. The company adds to the competitive rivalry for low cost plastic recycling sources. It can pay for larger supplies of plastics such as industrial plastic. Invested Money: Name Position Investing Money Percentage X Chairman 4,50,000 30% Y Director 3,00,000 20% Z Director 3,00,000 20% A Manager 1,50,000 10% Md. Shafiul Azam Salman Manager 1,50,000 10% B Manager 1,50,000 10% Total 15,00,000tk 100% INVESTMENTS: ASSET Value Machineries 8,00,000tk Rent (Advance for 1year) 3,00,000tk Tools 50,000tk Furniture 20,000tk Retention Money 3,30,000tk Production Process Production process of Plastic Recycling is followed by several steps. These steps are given bellow: Step 1- Plastic Collection: For the recycling process first thing we need to do is collect plastics. Plastics for recycling come from two sources: Post Consumer Plastics and Post Industrial Plastics. Post Consumer Plastics are those plastics which have been already used by consumers. These types of plastics can be found in the garbage. We have to collect them from the garbage collector and those retails where they sell used plastic at a kilo based price. On the other hand Post Industrial Plastics are those plastic which have been used by the industries. In that case we have to collect these used plastic directly from the industries. Step 2- Manual Sorting: There are different types of plastic which we can recycle. Such as plastics used for soft drinks are different from the plastics which are used for plastic bags or boxes or sheets. Plastics are called through different codes. Step 3- Chipping: Each sorted stream of plastic is then sent separately to a chipper. This is a cylinder of blades somewhat like an old-fashioned lawnmower in a vessel with a 10 mm grill floor. The blades cut the material until it is small enough to fall through the grill. Step 4- Washing: 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. For drying, a suitably designed drier is used. Many industries situated outside the metropolises, use open space for natural drying of the cleaned waste. Step 5- Coloring: 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. Step 6- Pelletizing: This is done by melting the chips and extruding them out first through a fine grill to remove any solid dirt or metal particles that have made it through the treatment thus far and then through a die of small holes. If the plastic was simply allowed to extrude from these holes it would come out as spaghetti-like strings and quickly tangle together. Manual sorting Pelletizing Chipping Coloring Washing Figure: Production Process of Plastic Recycle Production Equipments Plastic Color Mixer: RSM series rotation mixer suitable for powder, granule, solid plastic material and color master batch mixing. This series is a kind of large plastic color mixer. It is better than the traditional plastic color mixer in some defects. And also, it is characterized of large mixing capacity, low energy consumption and high efficiency. It is widely used for plastic extrusion, injection processing. Heavy Duty Granulator: The heavy duty granulators are used to crush plastic scraps on to granules. They play an important role in recycling plastic wastes, defective goods and rejects and therefore can increase the utilization ratio of plastic material. Spiral Color Mixer: Spiral color mixer are used to mix granulated solid plastic raw material and master batch. It is a large plastic material mixing equipment and has advantages of big capacity, low energy consumption and high working efficiency. It is ideal auxiliary equipment for plastic extruding and injecting processing production Chipper: This is a cylinder of blades somewhat like an old-fashioned lawnmower in a vessel with a 10 mm grill floor. The blades cut the material until it is small enough to fall through the grill. Pellet Machine: This pellet machine is use for the recycling scrap materials. It takes the advantages of simple structure, easy operation, high capacity, low energy consumption, even granule-cutting, safety, reliability, Market Environment Target Market: Our target market will be those companies which will produce plastic products. They will buy the pellets or blocks from us and then shape in whatever form they want. For example: soft drink producers will buy PET plastics from us and then they will shape it so that they can provide drinks in it. Business-to-Business Market: We will supply recycled plastics to those entire plastic product producing industry. We will supply directly to industries. There will be not any type of retailer or wholesaler to supply our product. Our initial target market will be the plastic product producing industries around Dhaka. We have identified a significant available market in the eastern part of UP. All of our initial marketing strategy will be to secure contracts in that segment, and after reaching full planned capacity, look to grow in concert with that segment and related markets. We see little need at present for further market research and development, and will focus on continually updating our production technology in an effort to remain in the forefront of our chosen marketplace. Product/ service strategy Some companies like the packaging companies require high quality and highly transparent PET bottles. The companies which are producing mineral water will reject PET bottles with even a small impurity. So we the Plastics provide high end PET flakes for the perfect packaging. Plastics will apply recycling and extrusion technology managed by decades of industry specific expertise to create a competitive advantage for its clients. These processes will produce clean, costefficient, recycled raw material for manufacturers of thermoform, laminate and other high value-added products, and high strength packaging strapping for shippers of large products and pallets, thereby reducing costs and creating a clear pricing edge among their competitors. Plastic bags and plastic sheets are now in high demand. And this demand is driven by continuously increasing promotional activities. Distribution strategy Our distribution strategy is that we are interested in selling the product directly to them who are interested to buy our products which mean industrial users. For example: PET bottles will be stored in warehouse which is close to the facility itself. The sales people will directly contact to the companies which require these bottles for packaging and look for the contracts. Manufacturer Industrial User Pricing strategy . The pricing strategy we will use is price skimming. As the price of recycled plastic is lower than the price new manufactured plastics, in that case if we use price penetration then we might not be able to achieve our target revenue. Moreover we are new in the market with fewer competition so we have advantage of setting up a high price for our product. But the price is around $1100-2000/ton around the world for new plastic pellets. But as we producing recycled plastic so we thought to set our price around $900-$1500/ton (63900BDT- 106500BDT/ton) for different type of plastics. Promotional Strategy In promotional strategy we must choose some ways for the promotion of goods, services, companies, or ideas so that our product can capture its target market. Without the promotional activities it’s totally impossible to get the attention of our target customers. Sometimes only the promotional activities can provide the success of a company. As our target market is industrials users so we have to be very specific about our promotional activities. This strategy not only gives us our target market but also provides us with what their desired product and helps us to maintain a strong relationship with them. For the promotional activities we have choose different Medias such as: Business Magazines(Online) Direct Specialty Advertising Yellow Pages. Our target is to sell 2- 3tons of plastics each month At. We are expecting to sell this much plastics each month. Total Sales: 1,00,000*2.5ton = 2,50,000 Less: Expenses: Salaries 40,000 Advertising 20,000 Raw Materials 80,000 Utility bill 30,000 Other Expense 30,000 Total: 2,00,000 ____________________________________ Profit: 50,000 ================================ Business plan, Market demand,Strategy,Operational and Financial Plan: Our target market will be those companies which will produce plastic products. They will buy the pellets or blocks from us and then shape in whatever form they want. For the promotional activities we have choose different Medias. Our distribution strategy is that we are interested in selling the product directly to them who are interested to buy our products which mean industrial users. we producing recycled plastic so we thought to set our price around (1,00,000tk/ton). Different from existing in the market: Ans: this is one of the few recycling plants in Bangladesh so we are only focusing on plastic materials though there are hundred other wastes are around. Implementing Business: Ans: We will collect consumer and industrially used plastic scraps and turn them into small pellets. Then we will sell them to the plastic factories around Bangladesh. Contributing in the national economy and employment: Ans: As the costs of producing the products is low and plastic scraps are available in our country. It will cut our expenses and gain our profits and contribute to the economy. By employing in our business, We will also create Job opportunities for our society. Thus contribute in the employment generation. Conclusion: As we already know that plastic is one of the most necessary things that we used everyday life. The problem is that plastics are harmful for human body as well as the environment. It does not decompose naturally rather it gradually poisoned the soil and produces harmful chemicals. As we cannot throw it out from our life so all we can do is recycle it and then reuse it over time. A plastic recycling plant gives us the opportunity to reduce the use of new plastics. In every developed country and almost every developing country have plastic recycling plants to reduce plastics from the environment. So, now it’s time that we establish a recycling plant in our own country save our environment. We certify that the information n this report is accurate and true. Name: Date: _________________________________________________________________________ This report is prepared for: Shafayet Ullah Lecturer Department of Management.