Business Plan –Stretch Film

Imperialpackaging.comPresented BY-

Ankita Sharma Deepak Goyal

Nidhi MahuwaleShobhana Tripathi

Company

• Imperial Packaging is a manufacturer and distributor of quality packaging products of Stretch Film. Company would pride itself on being the ultimate combination of Quality, Service, and Value. We have a wide range of Stretch Film packaging products

• Location- Vadodara(Gujrat)

Vision & Mission

• “To establish ourselves as one among the top ten global players in Packing Material Supplier by 2020”

• “To provide best quality & value at the appropriate price”

• To achieve entire trust of customers by fulfilling their all expectation and requirements

• Our aspiration of growth encourages us to keep us update with market trends and quality standards. Hence, we have been striving to offer perfect items to customers after in-depth study on the market and specific customer needs

Values

• Always work on customer satisfaction.

• Never compromise with quality.

• Employee satisfaction leads to customer satisfaction.

• Always have honesty towards the association of the company

Goal

• “To become well established player in this Industry by 2012

Why Stretch film

• Porter’s five forces model– Bargaining power of suppliers - modest– Bargaining power of buyers - modest– Intensity of competition - high– Threats to entry - low to medium– Threats of substitutes - medium

Operational plan

Product

• Machine wrap– Cast machine film– Blown machine film

• Hand wrap– Cast machine film (Ultra clear film, Stretches

up to 250%, rolls are smooth and noise less) – Blown machine film (strong and puncture

resistant, only sticks to itself, not your products)

Plant layout

Process of production

• Three stages– 1st stage-Raw material transportation– 2nd stage-Actual manufacturing

-3rd stage-supply

Other information

• Capacity utilization

• Ordering process and supply

• Customers

• Credit policy

Marketing plan

• Product Type – Business to Business

• Customer – FMCG and other Established player (same business line)

• Competitors – unorganized sector and private players.

• Business to Business Marketing

1.Ideal Customer & Their Problems

2.Effective solution

Competitors

• Domestic Competitors1. Parikh Packaging Private Ltd.

2. Kohli Export Packaging (I) Pvt. Ltd.

3. Maruthi Plastics & Packaging (Chennai) Private Limited 

4. Asmaco Industries Limited

5. R R Packaging

6. COMPAK 

• Foreign Competitors1. Dongguan Yalan Packing Materials Co

2. Malpack Stretch Film Ltd

3. Kingdom Machine Co.

4. CFL INDUSTRIES SDN BHD

5. BP PLASTICS SDN BHD

6. Larsen Packaging Products

• POP’s1. Packaging Product – Stretch Film

2. Process - Manufactured by polyethylene resins

3. Delivery - Customized length, width and thickness

• POD’s1. Timely delivery

2. Supply – Demand Management

3. Quality

• STP1. Segment- foreign market and Indian Market (Gujarat

and Outside Gujarat)

2. Targeting- FMCG’s Companies like ITC, HUL & Food Stores like McDonalds, CCD, and Haldiram.

3. Positioning- “On time customized delivery”

• USP

Quality

• Promotional Activities & Plan1. We can’t charge premium as we are new in this market.

2. We are in B2B so we will advertise through internet as our media. So, we will market our products by making website and giving advertisement on other websites like: Alibaba.com, Tradeboss.com etc.

3. We will give advertisements in trade journals and trade magazines.

4. Incentive to buyer or decision makers.

MAN POWER PLAN

Organization Structure

Production Line: Cast Stretch Film & Blown Stretch Film

Man Power Plan

• Compensation plan

• Performance management

• Recruitment Plan

• Training & Development

• Employee Welfare

• Incentives/benefits

• Salary

The salaries for them are defined below:

Category No. of employees Basic Salary (p.m.) Gross Salary(p.m.)

       

Engineers 4 12000 20000

Labor 10 1800 3000

Workers 4 7000 12000Marketing Executive 2 12000 18000

Legal Expert 1 12000 18000

Accountant/ 1 8000 15000

Job Description

• Machine Operator• Plant Supervisor• Head Operations• Business Development Officer• Marketing Manager• HR Head• Labor Relation Officer• Finance head• Accountant

Finance Plan

Initial Balance SheetSources of Funds        In Rs.

  Shareholder's fund      

  Equity Share Capital     2500000  

           

  Outsider Fund      

  12 % Bank Loan     2500000 5000000

    Total   5000000

         

Application of Fund      

  Fixed Assets    

  Machinery     3700000  

  Furniture     100000  

  Building     200000  

  Vehicle     200000 4200000

  Investment    

  Land Security     300000 300000

  Current Assets    

  Cash at Bank     400000 400000

  Misc. Exp.    

  Preliminary Exp.     100000 100000

         

    Total   5000000

Sales Revenue   56050000    

  29500 Rolls @ 1900        

Less - Sales Tax        

  4%   2242000 53808000  

Add. Closing Stock        

  Raw Material 525000      

  Finished Goods 734814.3   1259814 55067814

Less - Raw material        

  305 ton @ Rs.105000     32025000  

Less - Direct Cost        

158000x12 Labor 1896000      

15000/Day Power & Fuel 4125000      

300 x Rs.1000 Chemical 300000      

  Excise duty 3265859   9586840  

Profit & Loss A/c

Cont….Less - Indirect Cost        

15% of Sales S&D Exp. 8407500      

100000 @ 12Adv. & Marketing 1200000      

  Admin. Exp. 612000      

  Depreciation 470000      

  Rent 1200000      

  Preliminary 20000      

  Bad debts 100000      

  Maintenance 300000      

25000 @ 12 Other Exp. 300000   12609500 54029659

           

    PBIT     1038156

  Less - Interest   12% 300000  

           

    PBT     738155.6

  Less - Tax   40% 295262.2  

           

    PAT     442893.3

P&L Appropriation A/c

  PAT    442893.

3

Less - Provident fund & ESI     253260  

       189633.

3

Less - Reserve & Surplus     113780  

Less - Dividend     37926.7  

  Balance Transfer to B/S  37926.6

7

Expected Balance Sheet at the end of YearSources of Funds        

  Shareholder's fund        Equity Share Capital     2500000    Reserve & Surplus          Reserve & Surplus 113780      P&L A/C 37926.67 151706.7 2651707  Outsider Fund        Bank Loan     2500000 2500000    Total   5151706.671         

Application of Fund        Fixed Assets      Machinery     3330000    Furniture     80000    Building     160000    Vehicle     160000 3730000  Investment      Land Security     300000 300000  Net Current Assets      Current Assets 4047705    Less:-        Current Liabilities 3005998    Net Current Assets   1041707 1041707             Misc. Exp.      Preliminary Exp.     80000 80000             Total   5151706.671

Cost SheetCost Sheet    

No. of Units   30000   Cost Per Unit No. of Unit

Direct Material          

  300000 Kg.   31500000 1050 30000  

Direct Labor   1896000 63.2 30000  

  Prime Cost   33396000 1113.2 30000  

Indirect Material   7790859 259.70 30000  

  Production Cost   41186859 1372.90 30000  

Office Exp.   3002000 100.07 30000  

  Cost of Production   44188859 1472.96 30000  

  Cost of Goods Sold 43452378 1448.41 29500  

  S&D Exp.   8407500 280.25 29500  

  Adv. Exp.   1200000 40 29500  

Cost of Sales   53059878 1768.66 29500  

  Add. Sales Tax   2242000 74.73 29500  

      55301878 1843.40 29500  

  Profit Margin   738122 56.60 29500  

  Sales Revenue 56050000 1900 29500  

Projected Cash Flows & NPV

Particulars 1st 2nd 3rd 4th 5th

Investment 2500000 0 0 0 0

Sales 56050000 67260000 80712000 96854400 116225280

Var. Cost 50789274 60947129 73136555 87763866 105316639

Contribution 5260726 6312871 7575445 9090534 10908641

Fixed Cost 4202000 4202000 4202000 4202000 4202000

EBIT 1058726 2110871 3373445 4888534 6706641.3

Interest 300000 300000 300000 300000 300000

EBT 758725.9 1810871 3073445 4588534 6406641.3

Tax 189811.4 724348.4 1229378 1835414 2562656.5

PAT 568914.5 1086523 1844067 2753121 3843984.8

NPV and IRR

YearCash Inflow

PV @ 12%

PV of Inflow

1 568914.5 0.893 508040.6

2 1086523 0.797 865958.6

3 1844067 0.712 1312976

4 2753121 0.635 1748232

5 3843985 0.567 2179539

Total PV     6614746

YearCash Inflow IRR

PV of Inflow

0 -2500000   Payback

1 568914.5   1931086

2 1086523 49% 844562.8

3 1844067 3rd year

4 2753121   0

5 3843985   0

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