Project Report For

PLASTIC GRANULES MANUFACTURING

Promoter:

XXXXXXXXXXXXXXXXXXXXXXX
Address : XXXXXXXXXXXXXXXXXX

Prepared by:
Download Project Report.com
Flat No.G2 , A Wing, Goraksha Smruti Complex
Gujar Nibalkarwadi Road, Khopade Nagar,
Katraj, Pune-411046.
 Project For:
Plastic Granules Manufacturing

CONTENT

CHAPTER NO. PARTICULAR

I. PROJECT AT A GLANCE

II. ABOUT THE PROJECT

III. ECONOMICS OF THE PROJECT

A. TOTAL COST OF THE PROJECT & MEANS OF FINANCE
B. PROFITABILITY STATEMENT
C. CASH FLOW STATEMENT
D. BALANCE SHEET
E. CAPITAL ACCOUNT
F. PRODUCTION AND SALE
G. RAW MATERIAL CONSUMPTION AND INVENTORY
H. DIRECT OVERHEADS
I. INDIRECT OVERHEADS
J. TERM LOAN REPAYMENT AND INTEREST THEREON
K. WORKING CAPITAL
L. CURRENT ASSETS
M. FIXED ASSETS AND DEPRECIATION
 Project For:
Plastic Granules Manufacturing

I. PROJECT AT A GLANCE

1. About the Promoter : xxxxxxxxxxxxxxxxxxxxx

Address: xxxxxxxxxxxxxxxxxxx

2. Project Cost : Rs.18.65 Lakhs

3. Mean of Finance
A) T. L. facility from Bank : Rs.10.35 Lakhs

B) Beneficiary contribution : Rs.1.87 Lakhs

C) C.C. Facility from Bank : Rs.6.44 Lakhs

D) Subsidy (PMEGP scheme) : Rs.4.66 Lakhs

4. Rate of Interest : 11.00% Per Annum

5. Repayment :60 monthly installments, EMI @ 0.23 Lakhs

6. Nature of Project : Plastic Granules

7. Employment Potential : 18 Nos.

8. Nature of the Firm : Proprietary Firm

9. Average Debt Coverage ratios : 2.60

 Project For:
Plastic Granules Manufacturing

II. ABOUT THE PROJECT

Introduction

The term “plastics” includes materials composed of various elements such as carbon,
hydrogen, oxygen, nitrogen, chlorine, and sulfur. Plastics typically have high molecular
weight, meaning each molecule can have thousands of atoms bound together. Naturally
occurring materials, such as wood, horn and rosin, are also composed of molecules of
high molecular weight. The manufactured or synthetic plastics are often designed to
mimic the properties of natural materials. Plastics, also called polymers, are produced by
the conversion of natural products or by the synthesis from primary chemicals generally
coming from oil, natural gas, or coal.

Recycled plastic is a form of plastic that has the same properties as virgin plastic but is
made from scrap and waste. The main goal of Recycled Plastic is to minimise overall waste
and the negative impact of plastic waste on the environment. Companies working in the
industry would benefit from the high focus on packaging processes and products associated
with Recycled Plastic. The industry will rise as a result of rising demand for the commodity
as a result of its large range of applications in various industries. Because of the severe
environmental consequences of plastic waste, governments all over the world have placed
stringent restrictions on its use.

MARKET POTENTIAL & STRATEGY

By the end of 2026, the global recycled plastic industry is expected to be worth USD 72.6
billion. In the coming years, the emergence of many large-scale businesses around the
world would have a positive effect on the market's development. During the forecast period,
the India plastic recycling market is projected to expand at a healthy CAGR of more than
7%. The plastic recycling industry in India is booming, thanks to an increase in the number
of small-scale manufacturing plants in the country and an emphasis on secondary use
economy by non-governmental organisations. In certain Indian cities, the government is
focusing on imposing the ban on ultra-thin polyethylene bags, probably as a stopgap
measure for economic sustainability and development. Furthermore, the increasing
packaging industry is driving up demand for PET and HDPE for packaging applications, so it
is preferable to use recyclable plastic to reduce waste. In 2019, the government called for
the use of single-use plastics to be phased out. By 2022, the government has set a lofty
goal of banning single-use plastics. Government initiatives such as the Swachh Bharat
Mission (SBM) and Make in India are working to create circular economy policies that will
help India's plastic recycling industry grow.
 Project For :
Plastic Granules Manufacturing

III. ECONOMICS OF THE PROJECT

A. COST OF PROJECT
(Rs. Lacs)

S.No. Particulars Total Spent Bal. To be

spent

1 Land & Buildings 4.75 0.00 4.75

Costruction(Shed)

2 Plant & Machinery 6.25 0.00 6.25

3 Furniture & Electricals 0.50 0.00 0.50

4 Working Capital 7.15 0.00 7.15

18.65 0.00 18.65

Means of Finance :

a) Own Contribution (10%) 1.87

b) T L facility from Bank (90%) 10.35

c) C.C. Facility from Bank (90%) 6.44

18.65

d) Subsidy Entitlement Under

PMEGP scheme @ 25% 4.66
 Project For :
Plastic Granules Manufacturing

B. PROFITABILITY STATEMENT
(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Sales 41.32 49.59 57.85 66.12 70.25 74.38

Add : Increase in Cl.Stock 5.43 3.38 3.86 4.33 4.32 4.56
Total Turnover 46.76 52.97 61.71 70.45 74.56 78.94

2 RM Consumption 30.52 36.63 42.73 48.84 51.89 54.94

3 Overheads
a) Direct 6.50 7.15 7.87 8.62 9.45 10.36
b) Indirect 1.25 1.38 1.51 1.64 1.77 1.91
4 Balance 8.48 7.81 9.60 11.35 11.46 11.72
5 Interest on TL & CC 1.83 1.64 1.43 1.19 0.93 0.77
6 Depreciation 1.46 1.27 1.10 0.96 0.83 0.73
7 Preliminery expenses W/off - - - - - -
8 Profit after Interest & Dep. 5.19 4.90 7.07 9.20 9.70 10.22
9 Income Tax 0.24 0.49 0.61 1.04 1.14 1.27
10 Profit after Tax 4.95 4.41 6.45 8.16 8.56 8.96
11 Add: Depreciation & Pre Exp. 1.46 1.27 1.10 0.96 0.83 0.73
12 Add : Interest on TL 1.83 1.64 1.43 1.19 0.93 0.77
13 Cash Accruals 8.24 7.32 8.98 10.31 10.32 10.46
14 Instalments of TL & Interest 3.47 3.47 3.47 3.47 3.47 0.77

15 DSCR 2.37 2.11 2.59 2.97 2.97 -

16 Average DSCR 2.60

17 N.P. to Total receipts 11.98 8.90 11.15 12.34 12.18 12.04

 Project For :
Plastic Granules Manufacturing

C. CASH FLOW STATEMENT

(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

A CASH INFLOW :

1 Collection from Debtors 39.60 47.52 55.44 63.36 67.32 71.28

2 T.L. from Bank 10.35
3 CC from bank 6.44
4 Capital 1.87 - - - - -
5 Subsidy 4.66 -

TOTAL (A) 62.92 47.52 55.44 63.36 67.32 71.28

B CASH OUTFLOW :

1 Fixed Assets 11.50 -

2 Payments to creditors 25.44 30.52 35.61 40.70 43.24 45.78
3 Direct overheads 6.50 7.15 7.87 8.62 9.45 10.36
4 Indirect Overheads 1.25 1.38 1.51 1.64 1.77 1.91
5 Interest on Bank Loan 1.83 1.64 1.43 1.19 0.93 0.77
6 Income Tax 0.24 0.49 0.61 1.04 1.14 1.27
7 Term Loan Repayment 1.64 1.83 2.05 2.28 2.55 -
8 Drawings 0.50 0.55 0.61 0.67 0.73 0.81

TOTAL (B) 48.90 43.56 49.68 56.13 59.80 60.90

SUMMERY:
Op. Cash & Bank Balance. - 14.02 17.98 23.74 30.97 38.49
Add : Surplus / (Deficit) 14.02 3.96 5.76 7.23 7.52 10.38
Cl. Cash & Bank Balance. 14.02 17.98 23.74 30.97 38.49 48.87
 Project For :
Plastic Granules Manufacturing

D. BALANCE SHEET
(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

A ASSETS :

1 Fixed Assets 10.04 8.77 7.67 6.71 5.87 5.15

2 Investments - - - - - -

3 Current Assets 21.18 30.58 42.61 56.92 71.68 89.71

4 Loans & Advances - - - - - -

5 Pre Exp. Not written off - - - - - -

TOTAL (A) 31.21 39.35 50.27 63.63 77.55 94.86

B LIABILITIES:

1 Capital 10.98 14.84 20.69 28.19 36.01 44.16

2 Secured loans
Term Loan 8.71 6.87 4.83 2.55 - -

3 Unsecured Loans - - - - - -

4 Current Liabilities
Cash Credit 6.44 6.44 6.44 6.44 6.44 6.44
Sundry Creditors 5.09 11.19 18.31 26.45 35.10 44.26

TOTAL (B) 31.21 39.35 50.27 63.63 77.55 94.86

.
- - - - - -
 Project For :
Plastic Granules Manufacturing

(Rs. Lacs)

E. CAPITAL ACCOUNT

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Op. Balance - 10.98 14.84 20.69 28.19 36.01

2 Additions 6.53 - - - - -

3 Net Profit for the year. 4.95 4.41 6.45 8.16 8.56 8.96

Sub Total 11.48 15.39 21.30 28.85 36.75 44.97

4 Less : Drawings 0.50 0.55 0.61 0.67 0.73 0.81

5 Cl. Balance 10.98 14.84 20.69 28.19 36.01 44.16

 Project For :
Plastic Granules Manufacturing

(Rs. Lacs)

F. PRODUCTION AND SALES

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Capacity utilisation 0.50 0.60 0.70 0.80 0.85 0.90

1 Production per annum (MT)

Plastic Granules 56.35 67.62 78.89 90.16 95.80 101.43

2 Cl.Stock of Finished Goods (MT)

Plastic Granules 4.70 5.64 6.57 7.51 7.98 8.45

3 Sales per annum (MT)

(Tot Production less Cl. Stock)
Plastic Granules 51.65 61.99 72.32 82.65 87.81 92.98

4 Sales per annum

Plastic Granules 41.32 49.59 57.85 66.12 70.25 74.38
( Selling Price @ Rs 80 per Kg)

Total Sale 41.32 49.59 57.85 66.12 70.25 74.38

5 Sundry Debtors 1.72 2.07 2.41 2.75 2.93 3.10

(Credit period allowed 15 days)

6 Collection from Debtors 39.60 47.52 55.44 63.36 67.32 71.28

7 Total cost of Production 37.02 43.78 50.60 57.46 61.34 65.30

8 Cost per MT 0.66 0.65 0.64 0.64 0.64 0.64

9 Value of Closing Stock 3.09 3.65 4.22 4.79 5.11 5.44

 Project For :
Plastic Granules Manufacturing

PRODUCTION

Installed
capacity Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
S.No. Particulars (MT) 0.50 0.60 0.70 0.80 0.85 0.90

1 Production of Plastic Granules

112.70 56.35 67.62 78.89 90.16 95.80 101.43

Installed Capacity Kg/ Hrs 50.00

Per Day Working Hours 8.00
Less: Lunch Hours 1.00
Net 7.00

Total Production per day 350.00 Kg

Total production per annum 112.70 MT

Total Working Days 365.00

Weekly off 26.00
Holidays 7.00
Machine Break down 10.00 43.00
Net Working days 322.00
 Project For :
Plastic Granules Manufacturing

(Rs. Lacs)

G. RAW MATERIAL CONSUMPTION AND INVENTORY

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Production (MT) ( Output) 56.35 67.62 78.89 90.16 95.80 101.43

2 RM Purchases 28.18 33.81 39.45 45.08 47.90 50.72

Raw Material requirement ( Input)

S.No. Items Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Requirement of Raw Material 56.35 67.62 78.89 90.16 95.80 101.43

2 Purchase of Raw Materials 28.18 33.81 39.45 45.08 47.90 50.72

Waste Plastic Scrap
('@RS.50 Per Kg)

3 Total cost of R.M 28.18 33.81 39.45 45.08 47.90 50.72

 Project For :
Plastic Granules Manufacturing

(Rs. Lacs)

RAW MATERIAL CONSUMPTION AND INVENTORY

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 RM cost for total production 28.18 33.81 39.45 45.08 47.90 50.72

2 Cl. Stock of RM
( assumed 30 days consumption)
O/p Stock - 2.35 5.17 8.45 12.21 16.20
Add : Addition 2.35 2.82 3.29 3.76 3.99 4.23
Closing Stock 2.35 5.17 8.45 12.21 16.20 20.43

3 RM Purchases 30.52 36.63 42.73 48.84 51.89 54.94

4 Sundry Creditors 5.09 6.10 7.12 8.14 8.65 9.16

(Credit period allowed 60 days)

5 Payment to creditors 25.44 30.52 35.61 40.70 43.24 45.78

 Project For :
Plastic Granules Manufacturing

(Rs. Lacs)

H. DIRECT OVERHEADS

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Manpower
a Skilled Worker 5.76 6.34 6.97 7.67 8.43 9.28
8 no.@ Rs. 6,000 per month

b Unskilled Worker 4.80 5.28 5.81 6.39 7.03 7.73

10 no.@ Rs. 4,000 per month

2 Electricity 0.60 0.66 0.73 0.80 0.88 0.97

@ Rs. 5000 per month

3 Packaging & Transportation 0.60 0.66 0.73 0.80 0.88 0.97

@ Rs. 5,000 per month
.
4 Other Production Overheads 0.50 0.55 0.61 0.64 0.67 0.70

Total 6.50 7.15 7.87 8.62 9.45 10.36

`
 Project For :
Plastic Granules Manufacturing

(Rs. Lacs)

I. INDIRECT OVERHEADS

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Advertisement & Publicity 0.25 0.28 0.30 0.33 0.37 0.40

2 Repairs & Maint. 0.50 0.55 0.61 0.67 0.73 0.81

( 5% of machinery cost)

3 Misc. Expenses 0.50 0.55 0.61 0.64 0.67 0.70

1.25 1.38 1.51 1.64 1.77 1.91

 Project For :
Plastic Granules Manufacturing

(Rs. Lacs)

J. TERM LOAN REPAYMENT AND INTEREST THEREON

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 TL / Op. Bal. 10.35 8.71 6.87 4.83 2.55 -

2 Repayment during the year 1.64 1.83 2.05 2.28 2.55 -
3 Cl. Balance 8.71 6.87 4.83 2.55 - -

4 Interest at 11 per cent p.a. 1.06 0.87 0.66 0.42 0.15 -

5 Total repayment with Interest 3.47 3.47 3.47 3.47 3.47 0.77

6 Interest on CC 0.77 0.77 0.77 0.77 0.77 0.77

( at 12 per cent p.a.)

Total Interest 1.83 1.64 1.43 1.19 0.93 0.77

LOAN AMOUNT 10.35

RATE OF INTEREST PER ANNUM 11.00%
RATE OF INTEREST PER MONTH 0.917%
NO OF INSTALLMENT 60
EMI 0.23
Term Loan Repayment Schedule

MONTHS EMI INTERES PRINCIP OST

T AL PRINCIP
REPAYM AL
ENT
0 10.35
1 0.23 0.09 0.13 10.22
2 0.23 0.09 0.13 10.09
3 0.23 0.09 0.13 9.96
4 0.23 0.09 0.13 9.82
5 0.23 0.09 0.13 9.69
6 0.23 0.09 0.14 9.55
7 0.23 0.09 0.14 9.41
8 0.23 0.09 0.14 9.27
9 0.23 0.09 0.14 9.13
10 0.23 0.08 0.14 8.99
11 0.23 0.08 0.14 8.85
12 0.23 0.08 0.14 8.71
First Year 2.70 1.06 1.64
13 0.23 0.08 0.15 8.56
14 0.23 0.08 0.15 8.42
15 0.23 0.08 0.15 8.27
16 0.23 0.08 0.15 8.12
17 0.23 0.07 0.15 7.97
18 0.23 0.07 0.15 7.82
19 0.23 0.07 0.15 7.66
 20 0.23 0.07 0.15 7.51
21 0.23 0.07 0.16 7.35
22 0.23 0.07 0.16 7.19
23 0.23 0.07 0.16 7.03
24 0.23 0.06 0.16 6.87
Second Year 2.70 0.87 1.83
25 0.23 0.06 0.16 6.71
26 0.23 0.06 0.16 6.55
27 0.23 0.06 0.17 6.38
28 0.23 0.06 0.17 6.22
29 0.23 0.06 0.17 6.05
30 0.23 0.06 0.17 5.88
31 0.23 0.05 0.17 5.71
32 0.23 0.05 0.17 5.54
33 0.23 0.05 0.17 5.36
34 0.23 0.05 0.18 5.18
35 0.23 0.05 0.18 5.01
36 0.23 0.05 0.18 4.83
Third Year 2.70 0.66 2.05
37 0.23 0.04 0.18 4.65
38 0.23 0.04 0.18 4.47
39 0.23 0.04 0.18 4.28
40 0.23 0.04 0.19 4.10
41 0.23 0.04 0.19 3.91
42 0.23 0.04 0.19 3.72
43 0.23 0.03 0.19 3.53
44 0.23 0.03 0.19 3.33
45 0.23 0.03 0.19 3.14
46 0.23 0.03 0.20 2.94
47 0.23 0.03 0.20 2.75
48 0.23 0.03 0.20 2.55
Fourth Year 2.70 0.42 2.28
49 0.23 0.02 0.20 2.34
50 0.23 0.02 0.20 2.14
51 0.23 0.02 0.21 1.94
52 0.23 0.02 0.21 1.73
53 0.23 0.02 0.21 1.52
54 0.23 0.01 0.21 1.31
55 0.23 0.01 0.21 1.09
56 0.23 0.01 0.21 0.88
57 0.23 0.01 0.22 0.66
58 0.23 0.01 0.22 0.44
59 0.23 0.00 0.22 0.22
60 0.23 0.00 0.22 0.00
Fifth Year 2.70 0.15 2.55
 Project For :
Plastic Granules Manufacturing

(Rs. Lacs)

K. WORKING CAPITAL

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Total Inventory 5.43 8.81 12.67 17.00 21.31 25.87

2 Sundry Debtors 1.72 2.07 2.41 2.75 2.93 3.10

Total 7.15 10.88 15.08 19.75 24.24 28.97

3 Bank C.C. 6.44 9.79 13.57 17.78 21.82 26.07

(90 per cent)

4 Own Contribution (10%) 0.72 1.09 1.51 1.98 2.42 2.90

 Project For :
Plastic Granules Manufacturing

(Rs. Lacs)

L. CURRENT ASSETS

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Cl. Stock of Materials 2.35 5.17 8.45 12.21 16.20 20.43

2 Cl. Stock of Finished Goods 3.09 3.65 4.22 4.79 5.11 5.44

Total Inventory 5.43 8.81 12.67 17.00 21.31 25.87

3 Cash and bank Balance 14.02 17.98 23.74 30.97 38.49 48.87

4 Sundry Debtors 1.72 3.79 6.20 8.95 11.88 14.98

Total 21.18 30.58 42.61 56.92 71.68 89.71

 Project For :
Plastic Granules Manufacturing

M. FIXED ASSETS AND DEPRECIATION

(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

1 Land & Buildings

Op. Balance - 4.28 3.85 3.46 3.12 2.80
Additions 4.75 -
Total 4.75 4.28 3.85 3.46 3.12 2.80
Less : Depreciation 0.48 0.43 0.38 0.35 0.31 0.28
Cl. WDV 4.28 3.85 3.46 3.12 2.80 2.52

2 Plant & Machinery

Op. Balance - 5.31 4.52 3.84 3.26 2.77
Additions 6.25 -
Total 6.25 5.31 4.52 3.84 3.26 2.77
Less : Depreciation 0.94 0.80 0.68 0.58 0.49 0.42
Cl. WDV 5.31 4.52 3.84 3.26 2.77 2.36

3 Furniture & Electricals

Op. Balance - 0.45 0.41 0.36 0.33 0.30
Additions 0.50 -
Total 0.50 0.45 0.41 0.36 0.33 0.30
Less : Depreciation 0.05 0.05 0.04 0.04 0.03 0.03
Cl. WDV 0.45 0.41 0.36 0.33 0.30 0.27

Total Depreciation 1.46 1.27 1.10 0.96 0.83 0.73

Cl. WDV 10.04 8.77 7.67 6.71 5.87 5.15