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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