AAP PAPER WORKS

PRIVATE LIMITED

1
 AAP PAPER WORKS PRIVATE LTD.

PRESENTER:-
ATUL KUMAR (61810034)
ABHISHEK MANDAL (61810010)
PRIYANSHU KUMAR (61810056)

IN GUIDENCE OF:
MANISH SIR
 AAP PAPER WORKS PRIVATE LTD.

SL.NO
Index Description
01 Project at a glance
02 Introduction
03 Mission & Vision
04 Quality & Quality Assurance
05 Types of Business organization
06 Market potential and strategy
07 Project cost
08 Plant layout
09 Machines
10 Raw materials
11 Manufacturing process
12 Our products
13 Man power
14 Salaries and wages
15 Annual sales/ revenue
16 Total yearly expenses
17 Application of funds
18 Means of finance
19 Project feasibility ratio
20 Balance sheet
21 Depreciation
22 SWOT analysis
23 List of suppliers
24 Assumptions
25 Conclusion
 AAP PAPER WORKS PRIVATE LTD.

Project at a glance
Name & Address of Unit
AAP Paper works private limited
Nimiya Daltonganj Palamau 822101

Activity Disposal plates

Email aappaperworks@gmail.com
Phone 9801938402
Constitution Partnership
Scheme MSME
Number of employments 10
Total project cost 637000
Fixed Capital 637000
Total Bank loan 477750
Promoters contribution 159250
Term loan 477750 Interest: 8%

Name & address of Promoters:

Name Atul, Abhishek, Priyanshu

Address Nimiya Daltonganj Palamau 822101

Phone 9801938402
Designation Founder
Category General
Email aappaperworks@gmail.com
 AAP PAPER WORKS PRIVATE LTD.

Introduction
Our products are Paper plates and bowls. Paper Plates and bowls are
alternatives of steel, glass and ceramic material that we often use in our
daily lives. Paper plates and bowls are basically not used on the first place
but are used as an alternative or for specific use. In India, paper plates and
bowls hold great prominence because of their large-scale usage. This
industry is growing in rapid rate in India and profit margin in the
manufacturing of plate and bowls is also very high.
WHERE IT IS USED: -
Paper plates and bowls are basically used in two categories. The first
category belongs to domestic usage and the second category belongs to
commercial use. The first category usage amounts to use for domestic
purpose, marriage, event, function, picnic and travel purpose. Most of us
use paper plates and bowls in marriages as the best way to serve the most
without worrying about cleaning or loss of item. It is also very convenient,
light and affordable.
On the other hand, we have the commercial use. Commercial use is linked
to street shops that offer eateries, street hawkers and their likes. This part
consumes the most manufactured paper plates as the demand is regular and
huge.
 AAP PAPER WORKS PRIVATE LTD.

Vision
To excel in serving the demands of
different types and sizes of paper plate
nationwide.

Mission
To attend customer loyalty by providing the
highest standard of quality products that can
be used for household as well as commercial
needs.
 AAP PAPER WORKS PRIVATE LTD.

Quality
At our paperwork we firmly believe that success and customer satisfaction are inextricably
linked without maintaining quality standards it is impossible to win the trust of the
customer. Following this set philosophy and with the heavy burning passion for perfection
we a well define quality control policy as per international standard of manufacturing. We
keep a strict lab on quality and durability of product each and every product manufactured
at our end is tested thoroughly night from the initial stage still the final delivery. Premium
quality paper and related raw materials and advanced tooling machines are used in the
production process to achieve the desired result of products. Hence, we are primarily
concerned to achieve ultimate customer satisfaction

Quality assurance
We take due care a product quality. Therefore, we have a separate quality control
department which is extremely engaged in checking the quality of our products. Our quality
control experts take up several vigilant measures to ensure that our clients get only the best
product they are tested on the basis of asset quality ecological compatibility high stability
and sanitation standard
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Type of Business
Organization
Partnership
Limited partnerships require a formal agreement between the
partners. They must also file a certificate of partnership with the
state. Limited partnerships allow partners to limit their own
liability for business debts according to their portion of
ownership or investment.

Our organization works on limited partnership and we have a

legal agreement between our partners, in which land belongs to
one of our partners and we are also giving him the rent. So that
we could share equal profit and debt according to our sale at
the same time.
 AAP PAPER WORKS PRIVATE LTD.

Market potential & Strategy

The global paper Dona and paper plates market was worth US$ 109 Billion
in 2021. Paper dona and paper plates are made from paper-based materials
and are often coated or lined with plastic or wax to prevent the contents
from soaking through the paper. As consumers are nowadays becoming
more sanitation and hygiene conscious, they prefer disposables over the
reusable utensils. They are extensively used for serving foods like instant
noodles, fast food and sweet corn. Currently, there is a wide variety of
different paper dona and plates available in the market, which vary in size,
form and texture.

On account of their lightweight, cost-effectiveness, biodegradability, and

ability to provide air resistance, internal strength and stiffness, paper dona
and paper plates are extensively being utilized in the food and fast-food
industry. Also, they do not require cleaning and can be easily discarded
after use. Apart from this, there has been a rise in the influence of
westernization and increasing fast food consumption in developing regions.
This has led to an escalated demand for paper disposables for packing food
and beverages. Besides this, paper dona and plates are significantly more
biodegradable as compared to plastic and foam counterparts and tend to
take lesser time to get decomposed. Moreover, manufacturers are also
coming up with new strategies, such as advanced substrate technology, to
prevent the contamination of packaged food items by grease and oxygen.
This is projected to further augment the demand for paper dona and paper
plates globally.
 AAP PAPER WORKS PRIVATE LTD.

Project Cost
SL.NO ITEM AMOUNT (IN RS)
1 Building 300000
2 Machinery 150000
3 Computers & Printers 100000
4 Electrification & Electricity backup 80000
5 Transportation of machinery 5000
6 Other investments 2000
TOTAL 637000
 AAP PAPER WORKS PRIVATE LTD.

Plant Layout
 AAP PAPER WORKS PRIVATE LTD.

Machines

This is a manual machine in which you have

to put the die on to the machine and then you
have to put paper one by one on to the die
and then move the wheel so as to get the
output.
This Is A Fully Automatic Paper Plate
Machine Which Involves No Labor. We
Have to Put 5 Rolls on The Machine, And
Then Machine Takes the Roll Itself and
Gives the Finished Product Automatically.
You Can Change the Mold According to
Your Requirement. We Can Use Any Type of
Paper (Laminated or Nonlaminated), It
Should Be in A Roll Form.
This Is A Fully Automatic Paper Plate Machine Which
Involves No labor. We Have To Put Roll On The
Machine, And Then Machine Takes The Roll Itself And
Gives The Finished Product Automatically. You Can
Change the Mold According to Your Requirement. We
Can Use Any Type of Paper (Laminated or
Nonlaminated), It Should Be in A Roll Form. Some Plates
Which Cannot Be Made in Fully Automatic System
Because of the Shape Of Plate Or Non Availability Of
Paper Rolls Will Be Made By Semi-Automatic System
That Is Wrinkle Plate, Buffet Plates, Square Plates Will
Be Made By Semi-Automatic System In The Same
Machine.
 AAP PAPER WORKS PRIVATE LTD.

Raw Materials
Raw material as the name suggests it is the material which is in its complete
form and from which we aspire to make a desired product which would be
beneficial for us in some way. Whether it is production or manufacturing,
raw material plays the most fundamental and significant role for making of
product.
In our paper plate manufacturing company, we ensure to get the best quality
of raw material in order to make the most efficient type of paper plate
products from it, here we would be using raw materials either made of
paper or related to paper. The only reason behind to using paper related raw
material and not plastic is that although the plastics are recyclable but they
are not disposable whereas paper are disposable and so making the product
now harmful for the society and environment.
Here we would be using only three types of materials for all the five
products which would be made at three types of raw materials are

Kela patta raw material for 12 inches partition plates.

Silver paper

Kela patta
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Manufacturing Process
The manufacturing process for paper plates and dona is not complicated,
just we need different sizes of punch and dies first of the paper roll is
mounted on the machine than with the help of belts which is guided by
motors makes the sheet move forward. Then the sheet is pressed by punch
and die to give it the desired shape and prints. Then the plates and dona are
collected and packed and ready to export.

First raw material

is collected and
send to machine
for its production.

Machining is
done on the
material.
Raw material

Machines

Final product
 AAP PAPER WORKS PRIVATE LTD.

Our products
3-inch Dona: (1 bundle = 100 pcs.)
6-inch Dona: (1 bundle = 50 pcs.)

6-inch wrinkle plate: (1 bundle = 50 pcs.)

12-inch partion plate: (1 bundle = 25 pcs.)
12-inch buffet plate: (1 bundle = 25 pcs.)
 Manpower
Required
1) 2 Semi skilled worker for Operating Fully automatic machine.
2) 1 Skilled worker for Operating hand operating machine.
3) 2 Operator for packaging of finished products.
4) 1 Worker for managing Inventory.
5) 1 Skilled worker for marketing and mating the demands of the firm.
6) 1 Manager for maintain all these stuffs.
7) 2 unskilled labor for load and unloading of the goods.

No. of employees: 2+1+2+1+1+1+2=10.

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Salaries and Wages

In order to achieve organizational goal, we have
plan and established a good wage system.
We know that a good wage system should provide financial
and non-financial incentive which will motivate employees
to better work performance.
Although our company has variety of workers (skilled,
semi-skilled, unskilled) so we had planned to introduce a
Time rate system, Piece rate system, Incentive wage
system.
➢ Time rate system: In this system of wage payment, the
workers are paid the wages on the basis of time as, per
hour, per day, per week, per fortnight or per month etc.

Wages = Time spent by the worker × Rate of wages

according to time.
➢ Piece rate system: In this system, the rates of wages are
determined according to quantity and quality of work
and the workers are paid according to these rates.

Wages = Units of production × Rate per unit.

➢ Incentive wage system: These systems are also known as
incentive wage systems, progressive wage system and
bonus schemes etc.
Under these systems, both the time and speed are
considered as the basis of wage payment.
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Annual Sales / Revenue

Revenue = No. of unit sold * Avg. price

SL.NO ITEM RATE QUALITY UNIT TOTAL RS
1 Revenue from sales 23400 numbers 4250808
TOTAL 4250808

Total Yearly Expense

SL.NO ITEM AMOUNT (IN RS)

1 Rent 84000
2 Salary 720000
3 Electricity/Gas charges 60000
4 Stationary expenses 12000
5 Purchase Raw materials 2280000
6 Transportation 60000
7 Telephone/internet 12000
8 Advertising cost 24000
9 Miscellaneous expenses 24000
TOTAL 3276000
 AAP PAPER WORKS PRIVATE LTD.

Application of Fund

SL.NO ITEM SUBSIDY% NO. RATE AMOUNT

1 Building 0 1 300000 300000
2 Machinery 0 1 150000 150000
3 Computers & Printers 0 1 100000 100000
4 Electrification & Electricity 0 1 80000 80000
backup
5 Transportation of 0 1 5000 5000
machinery
6 Other investments 0 1 2000 2000
Total Investment 637000
Total Subsidy 0
Net Investment 637000

Means of Finance

SL.NO ITEM AMOUNT

1 Term loan 477750
2 Total loan 477750
3 Term loan contribution 159250
 AAP PAPER WORKS PRIVATE LTD.

Project Feasibility Ratio

Debt Service Coverage Ratio (Average)

Year 1 Year 2 Year 3 Year 4 Year 5

Current Ratio 0 0 0 0 0
Quick Ratio 0 0 0 0 0
Interest covering Ratio 3.33 7.51 9.25 12.16 18.85
Debt equity Ratio 2.659 0.996 0.749 0.504 0.243
TOL/TNW 2.66 0.96 0.46 0.23 0.09
DSCR 1.40 2.65 2.64 2.56 2.41
Gross profit Sales % 18.89 18.33 17.63 16.77 15.78
Net profit Sales% 6.90 7.75 7.66 7.35 6.83
BEP in % of installed 33.33 34.75 36.69 39.24 42.55
capacity %
BEP in sales of Rs 76746.99 1034096.06 1169697.30 1334293.92 1537435.02
Return on capital 0.02 0.32 0.28 0.25 0.22
Employed
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Balance sheet
Liability Pre-operative period 31/03/21 31/03/22 31/03/23 31/03/24 31/03/25
Share holders
funds
Capital 1.59 1.59 1.59 1.59 1.59 1.59
Reserve and 0 0.16 2.47 4.91 7.41 9.88
Surplus
Non-current
liabilities
Term loan 4.78 4.66 3.88 3.02 2.06 0.99
Current liability
Working capital 0 0 0 0 0 0
loan
Account payable 0 0 0 0 0
Total liability 6.37 6.41 7.94 9.52 11.06 12.46
Asset
Non-current
assets
Fixed assets 6.37 6.41 7.94 9.52 11.06 12.46
Current assets
Inventory 0 0 0 0 0 0
Trade receivables 0 0 0 0 0 0
Cash and cash 0 0.082 2.14 4.18 6.12 7.87
equivalence
Total assets 6.37 6.41 7.94 9.52 11.06 12.46
 AAP PAPER WORKS PRIVATE LTD.

Depreciation
Particular Rate 31/03/21 31/03/22 31/03/23 31/03/24 31/03/25
Building 5 3.00 2.99 2.84 2.70 2.56
Less Depreciation 0.013 0.15 0.14 0.13 0.13
Written down value 2.99 2.84 2.70 2.56 2.43
Machinery 15 1.50 1.48 1.26 1.07 0.91
Less Depreciation 0.019 0.22 0.19 0.16 0.14
Written down value 1.48 1.26 1.07 0.91 0.77
Computers & printers 15 1.0 0.99 0.84 0.71 0.61
Less Depreciation 0.013 0.15 0.13 0.11 0.091
Written down value 0.99 0.84 0.71 0.61 0.52
Other Investments 15 0.020 0.020 0.017 0.014 0.012
Less Depreciation 0 0.0030 0.0025 0.0021 0.0018
Written down value 0.020 0.017 0.014 0.012 0.010
Total less 0.044 0.52 0.46 0.40 0.36
Depreciation
Total written down 6.33 5.80 5.34 4.94 4.58
value
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SWOT Analysis

• We make products • We don't have any way

which are completely to fully examine the
disposable and non- quality of raw material.
harmful for the We have to trust the
environment and the suppliers for it.
society.

STRENGTHS WEAKNESSES

OPPURTUNITIES THREATS

• Daily user of these • There is a huge

products is the fast- competition in this
food sellers. The more business because the
fast-food sellers we work process is easy.
deal with, the more
profit we get.
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LTD.

List of Suppliers
• Maa Vaishno paper manufacturers, near mousam
bivag Anishabad, Patna Bihar 800002. Material
required - silver laminated paper- 100, 120 GSM -
roll type. kela pata print paper- no.12 -roll type.
• Agrawal paper plate and Dona raw materials,
yaduvansh Nagar, Bokaro Steel City, Jharkhand -
827013.
Raw materials - silver laminated paper 100, 120, 140
GSM - roll time. sal patta paper - 100; gsm - film
type.
• Maa Rankini paper manufactures, Tata road near
Indian oil petrol pump Jadugoda, Bhatin, Jharkhand-
832102. Raw material - kela patta print paper- no. 12
-circle type.
• AFPC manufacturer of paper plates, 206 A, A.P.C.
road Kolkata West Bengal 700009. Raw material- sal
patta paper- 120 GSM - roll type.
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Assumption
The entire projection is based on the assumption that the sales for 5 years will
be
All figures are in lakhs
31/03/21 31/03/22 31/03/23 31/03/24 31/03/25
2.30 29.76 31.88 34.01 36.13

From Revenue from Sales,

31/03/21 31/03/22 31/03/23 31/03/24 31/03/25
2.01 26.20 28.32 30.54 32.86

• The depreciation is as follow

Particulars Value
Building 5%
Machinery 15%
Computers/Printers 15%
Other Investments 15%

• The term loan repayment is calculated at an interest rate of

8.00% for 5 years.
• Cost of land or building is based on the basis of current rate.
• Cost of machinery is based on the quotation by the supplier.
• Value of raw material & utility charges as per the current market
conditions.
• All other assumptions are calculated based on the basis of
experience of the promoter and deep study on the working of
similar model.
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Conclusion
The project as a whole describes the scope and
viability of the manufacturing industry and
mainly of the financial, technical and its
market potential. The project guarantees
sufficient fund to repay the loan and also give
a good return on capital investment. When
analyzing the social economic impact, this
project is able to generate of 10 and above. It
will cater the demand of manufacturing and
thus helps the other business entities to
increase the production and service which
provide service and support to this industry.
Thus, more cyclic employment and livelihood
generation. So, in all ways, we conclude the
project is technically and socially viable and
commercially sound too.