TIFORP

MANUFACTURING
BUSINESS PROPOSAL PLAN
BY: YASH KUMAR

BBA 3RD YEAR

INTRODUCTION

• TIFORP TISSUE PAPER MANUFACTURING(TTPM) is a tissue paper manufacturing firm. It will be a

partnership firm of Mr X and Y with a deed of 50% each.

• The tissue paper business is one of the easiest businesses nowadays . It is a business where you can make profit
in a short period due to the fact that tissue is an essential commodity that is used in everyday affair.
INDUSTRY OVERVIEW

• Tissue papers are basically made from three major raw materials such as chemical pulp, mechanical
pulp as well as recovered paper. These raw materials are then made into paper towel, facial tissue,
wrapping tissue, paper napkin as well as specialty tissue.
• Basically, the tissue paper industry has two broad categories known as At Home and Away from
Home. At Home tissues which are also called consumer tissues are mainly used for purposes that
are domestic in nature, while Away from Home are used mainly for industrial and commercial
purposes.
• The industry is a capital intensive one because it relies heavily on machinery.
EXECUTIVE SUMMARY

• TTPM will be a registered and licensed manufacturing firm that will be based in Okhla Industrial Area, New
Delhi to cater to domestic and international clients.

• Our location will be easily accessible not only for our employees but also for our distributors and
suppliers as well. This is to ensure that production and distribution goes on efficiently.
• TTPM will be owned and run by Mr X & Y , an experience businessmen and entrepreneurs, Mr Y who
has a Masters Degree in Business from a prestigious business school and Mr X has also worked in a
tissue paper manufacturing company for seven years and will bring his vast experience to bear in this
business.
 OUR PRODUCTS AND SERVICES

• We intends to not only focus on producing tissue papers but also produce other items that are closely related to
tissue paper as well. We intend to produce white and colored tissue papers.

• However, in an aim to shore up our revenue base, we intend to offer other services as well such as franchise, and
consultancy services. Listed below are some of the products that we intend to offer; White and colored tissue
paper for home use, Paper Napkins , Face Wipes, Wrapping Tissue, Paper Towels, Specialty Tissue.
MANAGEMENT TEAM

• We also plan to offer other products and services at TTPM and to this effect, we know we need more hands to be
able to ensure that the business grows and expand smoothly in achieving our business objectives. Listed below
are those we believe will build this firm;

• Chief Executive Officer, Plant Manager, Floor Supervisor, Human Resources and Admin Manager, Sales and
Marketing Executives, Accountants, Truck Drivers, Customer Service Executives,Security Guard.
 SWOT ANALYSIS

• Strength: Our strength is our up-to-date technologies and machineries deployed to

produce tissue papers and secondly our excellent customer service.
• Weakness: The tissue production market is one that already has many players in the field in
Delhi and in the India as a whole.
• Opportunities: There is however several opportunities in this field which stems from the fact
that tissue paper is used daily, which shows the market is there. Also, because of our approach
to producing quality and affordable tissue papers.

• Threats: The threats that would face us in this area include having to compete
against already established tissue paper manufacturing firms, and also unfavorable
government policies.
MARKET ANALYSIS

• Market Trends: While the tissue market is regarded as a stable one, tissue manufacturing firm
have to sometimes come up with strategies that would differentiate them from their
competitors. This can be in the production of high-premium tissues, and colored tissues as well.
• Another trend is in ensuring that we not only produce tissue papers but also other related
hygienic products as well such as paper towels, organic facial and hand wipes for health
conscious folks and wrapping tissue as well.
• We also intend to use the internet in reaching out to our various existing as well potential
clients.
OUR TARGET MARKET

• The use of tissue paper is regarded as hygienic and with no close substitutes available and so our target market is
basically everyone in Delhi and in the India as a whole.

• Due market researches, we know exactly who and where our target markets are, and what they expect from us.
We intend to engage in wholesale distribution to retail stores that will cater to the following group of people:
Households, Hospitals, Malls, Government Institutions, Educational Institutions, Spas and Beauty Salons,
Restaurants, Every person not listed.
 OUR PRICING STRATEGY

• Tissue papers and its other related products are regarded as essential commodities and will always be purchased
no matter what. This means that pricing for most of tissue products are cheap and affordable.

• Our pricing module will however not be too different from that of our competitors, as we would during the first
six months of operations offer our products at a little less price than that of our competitors; we might however
raise the prices a bit after our brand has become well known. We would never offer prices that are below our cost
of production as well as overheads as we intend to be in business for a long time.
STARTUP EXPENDITURE (BUDGET)
• Business incorporations fees and other legal expenses in the Delhi – 20,000rs
• Obtaining of licenses and permits – 20,000rs
• Operational cost for the first six months (operation cost expenses, employee salaries) – 300,000rs
• Insurance coverage – 50,000rs
• Marketing and publicity promotion expenses for launching as well as for six months of operations – 60,000rs
• Cost of tissue making equipment – 1,00,000rs
• Cost of inventory (raw materials and packaging materials) – 30,000rs
• Cost of hiring a business consultant – 10,000rs
• Setting up a storage facility plus equipment – 10000rs
• Cost of renting facility for tissue production for at least a year – 1,00,000rs
• Cost of tissue distribution truck – 80,000rs
• Cost of administrative start-up expenses (computers, printers, stationeries, phones) – 1,40,000rs
• Cost of launching an official website – 20,000rs
• Cost of launch party – 30,000rs
• Miscellaneous – 30,000rs
• From the above requirements, we would need an estimate of 10,00.000rs to successfully start and operate our tissue production firm. This amount
can successfully cover our first six months of operations.
THANK YOU