Paper Recycling Plant Business Plan Proposal By:- Atif Memon
Our mission is to reuse the waste papers to makedynamic paper products using cost-effective and latestmethods of productions to not only raise profits butalso to promote GREEN and healthy living environment.
To purchase waste paper and make recycled paper from it on lower cost. To sell to the other paper manufacturing industries. To take care of the environment and to provide low-cost paper products to end customers.
Increasing literacy rate. Increase in demand of paper. Availability of competitive raw material and cheap labor force. Increase in GREEN trend. Great market potential. 40% decrease in the cost of paper production.
According to FAOSTAT 2011, Demand of paper = 1,522,400 tons Production of paper = 1,079,000 tons Imports of paper = 443,400 tons Paper market growth rate = 15% p.a
Product: recycled paper and/or extended products. Price: 30% mark up on the cost of production. Place: Availability in main cities of Sindh in initial phase and then whole Pakistan. Promotion: Contacts with paper products manufacturers and/or awareness sessions.
3-years goals: Market share = 10-15% Sales growth = 10% Maintain positive cash flows To increase the product line i.e. to include paper boards, stationery etc. Maintain average revenue growth rate = 20-25%
Form of business: Partnership Initial Investment: Rs.36,847,000 Debt= 50%, Equity= 50%
Unavailability of the specific machinery that is used for recycling paper waste in Pakistan. Costly infrastructure facilities in form of interrupted and irregular power supply and high transportation. People will be reluctant to buy our product if we do not market our product rightly. Lack of subsidy and funding for the recycled products. Higher taxes and duties. Competitors can enter.
Excess availability of the raw materials such as paper waste that is abundantly available everywhere. Cost efficiency. Abundant availability of manpower. Environmental friendly. Lessening the garbage and litter in the society.