HIMACHAL PRADESH UNIVERSITY BUSINESS

SCHOOL,
HPU, SUMMER HILL, SHIMLA,
MBA 3RD SEMESTER
ASSIGNMENT
(BUSINESS PLAN)

Subject: Entrepreneurship Development

Subject Code-302
 1. Executive Summary

EcoWrap Packaging is an eco-friendly packaging company that specializes in

providing sustainable, biodegradable, and recyclable packaging products to businesses
in various industries, including food, retail, e-commerce, and manufacturing. With the
growing environmental awareness and the global shift towards sustainability, this
venture will focus on providing innovative, biodegradable, and recyclable packaging
alternatives to businesses across various industries to replace traditional plastic
packaging with environmentally responsible alternatives that minimize waste and
reduce carbon footprints. Our mission is to reduce plastic waste and promote
environmentally responsible practices in packaging industry. The company provides
packaging solutions such as compostable food containers, biodegradable wrapping,
recyclable mailers, and custom packaging designs to meet the needs of eco-conscious
businesses looking to improve their sustainability practices.
 2. Description of Business

 General Description of the Business

Ecowrap Packaging will produce and distribute eco-friendly packaging made from
renewable materials, such as plant fibres, biodegradable plastics, and recycled content.
The business aims to provide customizable, high-quality, and affordable packaging
solutions that meet the needs of businesses looking to reduce their carbon footprint.

 Opportunity Identification and Selection

The increasing demand for sustainable products, coupled with stringent environmental
regulations worldwide, presents a significant market opportunity. Consumers and
businesses are becoming more environmentally conscious, leading to higher demand
for eco-friendly alternatives. This business will capitalize on this demand by offering
sustainable packaging solutions across various industries, including food, retail, and e-
commerce.

 Industry Background
The global eco-friendly packaging market is growing rapidly, driven by the increasing
consumer demand for sustainable practices and packaging waste reduction. The global
eco-friendly packaging market size was valued at approximately $310 billion in 2023
and is expected to grow at a CAGR of 7% over the next five years. The market is
projected to continue expanding as businesses and governments worldwide adopt
stricter regulations on single-use plastics and packaging waste. This presents a timely
and profitable opportunity for a company offering eco-friendly packaging solutions.

 Goals and Potential of the Business

EcoWrap Packaging will establish production facilities, secure key customers, and
develop brand recognition in the first two years and then will expand into new markets,
increase production capacity, and diversify the product range. In future it will become a
leading provider of sustainable packaging solutions in India and innovate new,
environment friendly packaging materials to expand globally.

 Products/Services Offered and Their Uniqueness

Our product offerings include:
 Biodegradable food packaging: Plates, cups, containers made from plant-
based materials like corn-starch, sugarcane bagasse, and bamboo.
 Compostable shipping materials: Mailers, envelopes, and boxes made from
recycled and biodegradable materials.
 Custom packaging solutions: Tailored packaging designs for brands aiming to
enhance their sustainability credentials.
 Reusable packaging options: Durable and sustainable packaging for e-
commerce, including boxes and protective materials.

Our products are unique due to their high level of customization, environmental
benefits, and cost-effectiveness compared to traditional plastic packaging and other
eco-friendly packaging brands.

3. Marketing Plan

 Target Market
1. Food and Beverage Industry: Restaurants, cafes, and food delivery services.
2. E-commerce: Online retailers seeking sustainable packaging solutions.
3. Retail: Brands looking for eco-friendly alternatives for their products' packaging.
4. Corporations and Institutions: Businesses aiming to meet corporate social
responsibility (CSR) and sustainability goals.

 Market Size and Trends

The global eco-friendly packaging market size was valued at approximately $310 billion
in 2023 and is expected to grow at a CAGR of 7% over the next five years. The market
size of Eco-friendly packaging in India in 2020 was valued at $3.5 billion and is
expected to reach $11.1 billion in 2025. So, it is growing at rapid pace. Consumer
demand for eco-friendly packaging, regulatory pressure, and environmental
consciousness are driving this growth and in future demand for eco-friendly packaging
will increase at rapid pace due to increase in customer awareness regarding
environment.

 Competition
Key competitors include established players like ‘Sealed Air’, ‘Amcor’, and Indian
companies like ‘Ecopack India’, ‘Uflex’ limited etc. While these companies provide
sustainable alternatives, our advantage lies in our ability to offer customized solutions
at competitive prices with a higher level of sustainability.

 4Ps/7Ps Strategies
1. Product: Sustainable, high-quality, customizable packaging solutions.
2. Price: Competitive pricing model, with options for bulk discounts and
subscription plans for long-term customers.
3. Place: Online sales and partnerships with retailers, distributors, and large
corporations.
4. Promotion: Digital marketing campaigns focusing on sustainability, partnerships
with environmental organizations, and participating in industry exhibitions.

5. People: A skilled team with expertise in manufacturing, design, and

sustainability.

6. Process: Efficient, sustainable production processes with a focus on waste

reduction and energy efficiency.
 7. Physical Evidence: Eco-certifications, Customer testimonials and packaging
made from recycled and biodegradable materials, and a clear sustainability
message in all marketing materials.

 Expected Sales
We anticipate reaching 10 crore rupees in sales by the end of year 2, scaling to 60 crore
rupees by year 5, as the market expands and customer adoption increases.

4.Production/Operations Plan

 Manufacturing Plan
The company will operate from a manufacturing facility equipped with state-of-the-art
machinery for producing biodegradable and recyclable packaging. The production
process will use renewable energy sources, minimize waste, and utilize water-based
adhesives and inks.

 Physical Plant (Location & Layout)

The production facility will be located in Baddi (Himachal Pradesh) India. The layout will
optimize workflow efficiency, minimize energy consumption, and provide space for
future expansion.

 Machinery and Equipment

Key equipment includes:
 Biodegradable plastic extruders
 Moulds for shaping packaging products
 Printing machines for custom designs
 Composting systems for waste management

 Raw Material Suppliers and Inventory Management

We will source materials from certified suppliers of biodegradable plastics, recycled
paper, and plant-based fibres. Inventory management will be handled using an
advanced software system to ensure materials are always in stock and minimize waste.

 Specific Operational Procedures

Operations will be streamlined for efficiency:
 Production will be monitored and tracked in real-time.
 Eco-friendly packaging products will be shipped using minimal, recyclable
packaging.
 Waste from production will be recycled or composted and proper quality control
measures will be taken.

5.Management and Organizational Plan

 Form of Ownership
The business will be established as a “Limited Liability Company (LLC)”to minimize
personal liability and facilitate potential future investments.

 Management Team - Key Personnel

 CEO: (Myself) Responsible for strategic direction, business development, and
partnerships.
 COO: Oversees daily operations, production processes, and logistics.
 CFO: Manages financial planning, cash flow, and investor relations.
 Sustainability Officer: Ensures that all products meet sustainability standards
and certifications
  Board of Directors, Advisors, Consultants
The board will include experts in sustainable packaging, business development, and
environmental law. Advisors will include industry veterans, environmental organizations,
and supply chain specialists.

 Organizational Structure
The company will follow a hierarchical structure, with departments for manufacturing,
marketing, sales, and customer service, all working together to achieve the company’s
goals.

6.Financial Plan

 Funds Requirement and Sources of Finance

The total initial capital required is 4 Crores Rs, which will be raised through:
 ‘Equity investment’: 2 crores Rs from founders and investors.
 ‘Bank loan; 2 crores Rs to finance machinery and equipment.

 Cash Flow
The business expects positive cash flow within the first year due to steady growth in
sales from B2B contracts and online orders. Net profit margins will increase as
economies of scale are realized.

 Break-even Analysis
We anticipate breaking even after 20 months of operation, with monthly fixed costs of
50,00,000 Rs and a gross margin of 30% on products.

 Projected Financial Statements

 Year 1: Revenue of 4 crore rupees, net loss of 40,00,000 rupees.
 Year 2: Revenue of 9.6 crore rupees, net profit of 50,00,000 rupees.
  Year 3: Revenue of 18 crore rupees, net profit of 3 crore rupees.
 Year 4: Revenue of 33 crore rupees. Net profit of 7 crore rupees
 Year 5: Revenue of 60 crore Rs. Net profit of 10 crore Rs.

7.Assessment of Risk

 Weaknesses of the Business

 High initial capital investment required.
 Dependency on the price and availability of raw materials, which can fluctuate.
 Difficulties in procurement of resources.

 Potential Problems and Risks

 Regulatory changes regarding packaging materials.
 Supply chain disruptions affecting the availability of eco-friendly raw materials.
 Competition from larger companies offering cheaper alternatives.
 Risk of substitute innovation.

 Contingency Plans
 Diversifying suppliers to mitigate material shortages.
 Developing a scalable production model to adjust to market changes.
 Exploring alternative revenue streams, such as consulting on sustainable
packaging design.

Ecowrap Packaging business plan outlines a sustainable and profitable approach to

meeting the growing demand for eco-friendly packaging solutions. With a clear strategy,
solid financial planning, and a commitment to environmental responsibility, the business
is well-positioned for long-term success.