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Sme tool kit_queryresolution_paperplatemanufacturing
Sme tool kit_queryresolution_paperplatemanufacturing
Sme tool kit_queryresolution_paperplatemanufacturing
Sme tool kit_queryresolution_paperplatemanufacturing
Sme tool kit_queryresolution_paperplatemanufacturing
Sme tool kit_queryresolution_paperplatemanufacturing
Sme tool kit_queryresolution_paperplatemanufacturing
Sme tool kit_queryresolution_paperplatemanufacturing
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Sme tool kit_queryresolution_paperplatemanufacturing

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  • 1. WWW.365BUSINESSDAYS.COMSatyajit Sinha: Business plan for a Paper Plate manufacturingunitQuery Resolution16th March, 2011 Company Confidential ©2010-11 Qcaliber-India Services Pvt. Ltd. Page | 1
  • 2. Contents Query Summary ........................................................................................................................................ 3 Resolution ................................................................................................................................................. 3 Next Steps ................................................................................................................................................. 6 About Us ................................................................................................................................................... 7Company Confidential ©2010-11 Qcaliber-India Services Pvt. Ltd. Page | 2
  • 3. Query SummaryClient Name: Satyajit Sinha Client Delivery Manager: 91-02-4Query Date: 10/03/2011 Query Type: Free, SMEToolkit IndiaBusiness Result Area: Business Planning SLA*: Not Applicable*SLA (Service Level Assurance) is only applicable for our premium membersQuery Description:“I want to start paper plate manufacturing unit. I want to know about the steps to be taken tomake this a successful venture”.ResolutionOur understanding of your current status:1. You want to establish a paper plate manufacturing unit.Your Query / Queries to Us & Their Resolution:1. Components of a sound business plan for a paper plate manufacturing unit a. Opportunity assessment and capacity planning – You should first determine the demand for paper plate in the geographical area which you wish to serve. You should identify the major customer segments which need paper plates for their business. Some of the major customer segments can be:  Caterers (who are hired for catering food in wedding and parties) who serve snacks in paper plates  Restaurants  Hawkers which sell food items on the roadside  Manufacturers of decorative items which need paper plates You should get a ballpark estimate for demand of paper plates from all these segments. For example, you can count the number of caterers in your geographical area. Then you can identify the number of parties/ wedding ceremony served by them in a month. Then you can estimate the average number of guests in a party, and paper plate needed perCompany Confidential ©2010-11 Qcaliber-India Services Pvt. Ltd. Page | 3
  • 4. guest. By multiplying these figures, you can estimate the demand for paper plates from caterers. You can similarly estimate the demand from other segments. After that you need to find out the current supply of paper plates in the market, and consequently demand supply gap. Then you should decide what percentage of this demand supply gap, and the percentage of current market you wish to serve. This will help you in estimating the manufacturing capacity of your unit. b. Location analysis – You need to select a suitable location for the proposed manufacturing unit. You can use specific criteria to support the location. The location should be closer to the intended customers. It should be closer to the suppliers of raw materials required in the plant. It should have good infrastructure in terms of connectivity, and power supplies. It should be located in an area, where you can easily source, attract, and recruit people for your plant. c. Manpower resource planning – Estimate the manpower required for the manufacturing plant on the basis of capacity of the plant. Estimate the manpower in both the administrative and managerial role. d. Competition analysis – You should analyze strategies followed by the established manufacturers across following functions:  Sourcing of raw materials  Ensuring quality of the product  Pricing Policy  Branding & marketing strategy  Customer relationship management  Financing Strategy You should determine which of the above strategy/ practices you can follow without incurring too much cost. e. Supply chain management – Paper, and aluminum foil are the main raw materials used in the paper plate manufacturing. Identify the suppliers of these raw materials on the basis of specific criteria such as reputation, lead time in supplying the material, credit term extended etc. You should try to negotiate better pricing with your suppliers by promising them prompt payment. Also, you should have a strict quality check on the quality of paper used at the time of receipt of raw material from the suppliers. f. Customer acquisition strategy – Since you will be a new player in the market, you will need to have a strong value proposition to create a market for yourself. For that you first need to identify the target segment for your product. You should determine theCompany Confidential ©2010-11 Qcaliber-India Services Pvt. Ltd. Page | 4
  • 5. attributes of your target segments (such as who need paper plates in bulk, who make prompt payment etc). Then you will need to make marketing strategy for each customer segment. To establish your identity, you can enter into an arrangement with the buyers, where you can sell your paper plates at lower prices (as compared to competitors) at the start. Once the buyer is assured of your higher quality, you can then raise the price of paper plates. Also you can enter into long term arrangement with your customers by offering plates at discounted price. g. Quality assurance – Quality of the paper plate is very important for ensuring your success in the market. You need to ensure the quality control at all points of your value chain. You can take following measures to ensure quality  Quality of raw materials  Best practices in manufacturing to ensure quality  Training and sensitizing your employees towards the need to ensure quality  Ensuring quality during the transport of final products to the customers  Taking quality certifications (in long term) h. Financial Analysis –  Capital expenditure required for the plant – for the land, machinery, installation of plant  Operating expenditure for the plant – Salary, electricity, fuel, transportation  Initial working capital requirement  Debt- equity ratio for funding the capital expenditure and initial working capital requirement  Source of debt and equity  Profit and loss statement, and balance sheet for the manufacturing plant for the life of the plant  Profit, and return on equityThis resolution is provided basis the limited information we have about you. To know moreabout different aspects of an effective business plan, please visit the following link:http://365businessdays.com/PublicSite/Advisory.aspx?AdvisoryID=3If you need our support to help you develop the business plan, it will require us to understandthe level of support you need, and your previous expertise in the sector. We always begin ourrelationship in an extremely cost efficient online method and then depending upon the need ofthe client; deepen the relationship to offline engagement with considerable advantages of costCompany Confidential ©2010-11 Qcaliber-India Services Pvt. Ltd. Page | 5
  • 6. and turnaround time for delivery over comparable services. You could get to know more aboutour services by visitinghttp://365businessdays.com/PublicSite/takeatour.aspxNext StepsWe wish you success in your desire to establish a paper plate manufacturing unit,and will be extremely willing to provide you all the support that we can to help youachieve this aspiration. We are committed to providing skill based research andanalytics support to our Premium Members to help them drive their business.When you sign up as a Premium Member and we engage with you to support youfor developing and implementing your marketing plan and support you in thecontent development process, you can be assured of access to a pool of highquality business management professionals with deep expertise in 80 skill areasthat drive any business.http://www.365businessdays.com/PublicSite/BusinessConcept.aspxAs for example, we will help you  In opportunity assessment, and the capacity planning for the unit  Developing a model for choosing the location for the plant  Deciding criteria for selecting suppliers, and recommending a suitable supplier for the raw material required in the plant  Customer acquisition strategy  Quality assurance strategy  Financial analysis, and calculation of financial return from the plant  Raising funds from different sourcesCompany Confidential ©2010-11 Qcaliber-India Services Pvt. Ltd. Page | 6
  • 7. About Us SME ToolKitThe SME Toolkit is a joint project of IFC (International Finance Corporation), a member of theWorld Bank Group and ICICI Bank. The Toolkit website has been created as an online resourcecentre to empower Indian SMEs and help them become globally competitivehttp://india.smetoolkit.org/india/en 365BusinessDays365BusinessDays provides high quality, well researched, relevant and neutral external skillsupport in a cost efficient manner to our customers. We provide this service through a secureand easy to use proprietary online platform. To know more about our services please visit ourTake a Tour section. Please click here to Sign up for our Business Advisory Services.DISCLAIMER:All due care has been taken in the preparation of this report to ensure that the information, estimates,opinions, suppositions, suggestions, and recommendations contained here-in are factually correct andaccurate to the best of our knowledge, at the time of generating and publishing this report. In particular asour Query Resolution service is not based on any Primary Data collection and analysis, there can be inherentchallenges in the depth and scope of the issues it can address. We, at 365BusinessDays, accept no liability forany loss or damage or unforeseen consequential loss or damage that may arise from the use of theinformation contained within this report. The information, estimates, opinions, suppositions, suggestions, andrecommendations within this report cannot be guaranteed, and readers are advised to use this informationand the implications there-in at their own discretion and risk. The information published in this report maybe subject to change without notice at any time, and we accept no liability or obligation to inform the readersor users of this report of such changes.Company Confidential ©2010-11 Qcaliber-India Services Pvt. Ltd. Page | 7
  • 8. WWW.365BUSINESSDAYS.COM365BusinessDays offers management consulting and business advisory services in theform of business query resolution based on deep industry and functional expertise,delivered through a convenient and cost-effective online business model. Our serviceaids entrepreneurs, business owners, and senior management in critical decision-makingprocess when faced with complex business challenges, thereby helping them select themost relevant business solution from amongst multiple choices potentially available,supported by our knowledge and experience in Business Planning, Sales Enhancement,Cost Reduction, and Operational Management. Company Confidential ©2010-11 Qcaliber-India Services Pvt. Ltd. Page | 8

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