ECO-FRIENDLY BAG COMPANY

Executive Summary:
This business plan is about eco-friendly bags. All of us know that the usage of plastic bags
destroys eco system very badly. It not only effect human beings but also marine life in water.
Because it doesn’t decompose easily it takes centuries to decompose a single plastic bag. So, that
is why I started this project to help our eco system.
With the expectation of high profitability, it is assumed that it would be the perfect product to be
manufactured in today’s environment after all it’s an environmental friendly product.

Description of Company:
Name of unit Paper bag

Registered office At bypass road Thana

Location of the unit At bypass road Thana

Malakand agency

Organization Form partnership

Name of Owner Hajra Gul

Hammad Ahmad

Name of product Eco-friendly bag

Size of the unit Small scale

Cost of project 4 million rupees

Management setup:
Partner’s background
1. Name Hajra Gul

Age 21 Years

Academic Qualification BS English

Role of the unit Finance

Financial Contribution 2 million

2. Name Hammad Ahmad

Age 25 Years

Academic Qualification MBA (Marketing and production)

Role of the unit Marketing and production

Financial Contribution 2 million

Organization Structure:

Owner

Production personnel Marketing Finance

Manager Manager Salesman Accountant

Workers
Vision of the Company:
Vision of the eco-friendly bag comapany are :

 To become a proactive, integral in responsible member of our eco system and

community, making us a strong global supply base for world class product.
 To use totally eco-friendly bag, which are made not from tree.
 To make the product popular Malakand and gradually cover all nearby places in KPK.
 To offer continuous value-added product to our customer.
 To make the firm a medium scale industry and then a large scale.

Mission:
The eco-friendly bag manufacturing industry is poised for a higher growth with a bright
future.
To constantly grow the costumers by design superior and cost-effective product through
contribution of ideas.
Due to the increasing awareness of hazards of plastic bags to the environment among the
public and the ban impose on plastic bags throughout the country. Then there will be a great
demand of eco-friendly paper bags.

Product Details:
People use regularly use paper bag now days if we go to shopping Centre and purchase some
goods the shop keeper gives the goods in the paper bag. The option is also to use a polythene
bag, but they are harmful to use because we produce the plastic bags, but we cannot destroy it.

Product features:
There are many features of paper bag are as follow: -
 It is very economical: - Paper bags are very economical in nature it is cheaply available in
the market.
 It is eco-friendly in nature: - It is very easy to produce paper bag and it is easily
decomposes. So, it has no harm to nature.
Uses :
 Carrying household articles like grocery.
 Garments, toys
 Stationary items
 Food and vegetables
 Medicines
 Cosmetics items etc.

Raw Materials:
The required raw materials for paper bag company are:
 Paper in roll
 Gum
 Printing ink
 Misc. chemical
 String

Machines:
 Automatic paper bag machine – 3Nos
 Stereo Press – 2Nos
 Stereo Grinder – 2 Nos
 Roll Slitter motorized with 2 HP packing machine – 2Nos
 Testing equipment – 1 no.
 Punching machine – 1 no.

Manufacturing process:
 Raw material (paper roll)
 Cutting through automatic machine
 Stereo pressing with the help of gum and chemical grinding
 Printing through ink
 Punching
 Packing
 Testing
 Manufacturing process in detail:
The requires raw materials is in the form of roll, the cutting of roll is done through the
automatic paper bag machine according to the size, and then pressing to require size is done
through stereo pressing machine with the help of gum and chemicals. Then side grinding of
paper bag is done. Then the printing is done and after that punching is done and after this
string is tide in these holes and it at last they are tested for bursting and packing is done.

Production capacity schedule:

Production capacity 1,06,20000 Units
No of working days in month 25
No of working days in a year 300
No of shifts per day 1
No of working hours per shift 8
Production capacity per month 8,85,000 Units

Staff and labor:

No. Staff and labor No.
1 Factory staff
Skilled 4
unskilled 6
2 Technical Supervisor 1
3 clerk 1
4 Accountant 1
5 Peon and Watchman 1
6 Salesman 2
7 Manager 1
Cost of production:
Raw Material
Particulars Rate/kg Required/day Required/month Required/year
Paper in roll 10 2,950 73,570 8,85,000
Total (Rs) 29,500 7,37,500 88,50,000
Gum 8 35 875 10,500
Total (Rs) 280 7,000 84,000
Printing ink 65 20 500 6,000
Total (Rs) 1300 32,500 3,90,000
Misc. Chemical 4 40 1,000 12,000
Total (Rs) 160 4,000 48,000
String 7 50 1,250 15,000
Total (Rs) 350 8,570 1,05,000
Net Total 7,89,750 94,77,000

Staff and labor

Particulars No. Rate P.M. P.A.

Factory
Skilled 4 2,000 8,000 96,000
Unskilled 6 1,800 10,800 1,29,600
Technical 1 5,000 5,000 60,000
Supervisor
Salesman 2 3,000 6,000 72,000
Manager 1 7,000 7,000 84,000
Clerk 1 2,500 2,500 30,000
Accountant 1 3,500 3,500 42,000
Peon and 1 2,000 2,000 24,000
Watchman
Total 44,800 5,37,600
Other expenses and utilities:
Sr. Particulars P.M. P.A.
1. Electricity 17,000 2,04,000
2. Water Charges 1,500 18,000
3. Postage and Telegram 2,000 24,000
4. Stationary 12,00 14,400
5. Repairs 2,000 24,000
6. Telephone expense 1,800 21,600
7. Transport
inward 2,000 24,000
outward 2,000 24,000
8. Packing 3,000 36,000
9. Miscellaneous Exp 2,000 24,000
10. Audit Fees 21,500
11. Professional Tax 1,000
12. Legal Fees 15,000
13. Insurance 1,02,000
14. Selling Exp 16,750 2,01,000
Total 51,250 7,55,000

Total working capital requirement:

Sr. Particulars P.M. P.A.
1 Raw Material 7,89,750 94,77,000
2 Staff and Labor 44,800 5,37,600
3 Other Expenses 51,250 7,55,000
Total 8,85,800 1,07,69,600

Total project fund:

Sr Particulars Amount
1. Fixed Cost 43,65,000
2. Working Capital (2months) 16,75,550
Total 60,40,550
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