Lord’s Eco Plast

Project Report

Project at Gatti Industrial Area, Distt. Kathua, Jammu and

Kashmir

1
I. EXECUTIVE SUMMARY

Applicant Lord’s Eco Plast

Name
Date of 10.07.2024
Incorporation
Nature of Manufacturing of Plastic Furniture and Plastic
Activity Household Items
Sector Manufacturing
Constitution Proprietorship firm
Pan No.
CIN No. NA
Registered 75, Canal Colony, Mcleod Road, Amritsar
Office
Address
Project 4th Lane, Gatti Industrial Area,
Location Distt. Kathua, Jammu and Kashmir

About the The firm is proposing to set up a

Firm manufacturing facility to manufacture of
Plastic Furniture and Plastic Household Items.

Proprietor Mr. Sohrab Singh

Proposed
Project The land has already been purchased.
 Market Demand:
Key Highlights  Growing market demand for
of Project affordable and durable furniture and
household items.
 Increasing consumer interest in eco-

2
 friendly and sustainable products.

 Product Range:
 Comprehensive range including
chairs, tables, cabinets, shelves,
kitchenware, bathroom accessories,
garden furniture, storage solutions,
and decorative items.
 Customization options for colors,
designs, and sizes to cater to diverse
consumer preferences.

 Manufacturing Excellence:
 Efficient production processes
leveraging injection molding for high-
volume items.
 Robust quality control measures
ensuring product consistency and
safety standards compliance.

 Design and Innovation:

 Modern and attractive designs
enhancing interior aesthetics.
 Functional features such as
ergonomic designs, stackability, and
weather resistance for outdoor use.

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 Sustainability Initiatives:
 Use of recycled plastics and
biodegradable materials to promote
sustainability.
 Adoption of green manufacturing
practices and pursuit of
environmental certifications.

 Market Penetration Strategy:

 Distribution through retail chains,
online platforms, and specialty
stores to maximize market reach.
 Targeted marketing campaigns
highlighting product benefits,
sustainability efforts, and
customization options.

 Customer Engagement:
 Feedback mechanisms to gather
consumer insights and enhance
product offerings.
 Responsive customer service and
after-sales support to build
consumer trust and loyalty.

 Regulatory Compliance:
 Adherence to national and

4
 international standards for product
safety and environmental
regulations.
 Quality assurance processes
ensuring reliability and compliance
with industry norms.

 Financial Viability:
 Cost-effective manufacturing
techniques and efficient supply
chain management to optimize
production costs.
 Thorough financial projections and
profitability analysis to ensure
sustainable business growth.
 Innovation and Expansion:
 Continuous innovation in product
development to meet evolving
consumer needs and market trends.
 Strategic plans for geographical
expansion and diversification of
product lines based on market
feedback and demand.

Incentives in the  100 % on New DG Set ranging from 10KW

Jammu and to 2000KW with capping of Rs. 40 lac in
Kashmir zone A and Rs. 45 lac in Zone B
Industrial Policy  100% exemption on land transactions in

5
 Government Industrial Estates, Including
lease deed and mortgage deed
 30% on incurred charges Max on
procuring Quality Certification like ISO,
ISI, BIS, FPO, BEE, AGMARK, ECOMARK,
ZED Rating etc, up to 2 Lakhs certified by
CA
 25% on cost of Automation Max on
automation/ software/hardware /BPR
through computers/IT/Online Pollution
Control Devices, up to 2 Lakhs if the same
has not been claimed under CII or Similar
Schemes
 60% on Pollution Control Devices Max up
to 50 Lakhs if the same has not been
claimed under CII or Similar Scheme
 50% of expenses incurred on expenditure
incurred on Installation of new equipment
of rainwater harvesting, wastewater
recycling, zero discharge processing, solid
waste management
 Capital Investment Incentive at the rate of
50% on investment maximum upto
Rs.7.50 cr
 Capital Interest subvention at the rate of
6% for maximum 7 years on loan amount
up to Rs.500.00 cr for investment

6
  GSTL incentive equal to 100% of the
Gross GST for 10 years maximum upto
300% 300% of the investment in Plant &
Machinery.

Net Realizable As per valuation report.

Value

Total Estimate Sr. Cost Of Project Rs. In Lakhs

Project Cost No.

1. Cost of Land 48.00
2. Machinery 1575.00
3. Building & Civil 200.00
Works
4. Pre-operative 25.00
expenses
5. Working Capital 80.00
Total Cost of 1928.00
Project
Means of
Finance Sr. Particulars Amount
No. (Rs. In
Lakhs)
1. Term Loan-Machinery 1175.00
2. Working Capital Limit 50.00
3. Own Contribution 703.00
Total 1928.00
Primary Security: Plant and Machinery
Target of The project will start commercial production in
Completion Oct 2025.

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 Present Status Land has already been purchased and the
of Project following approvals has been received:
1. CLU
2. Building Plan Sanction
3. Pre-Electricity connection
4. Goods and Service Tax Registration

II. Introduction:

The Indian plastic industry is a significant sector within the

country's economy, playing a crucial role in various
industries such as packaging, infrastructure, automotive,
healthcare, and consumer goods. Here are some key aspects
of the Indian plastic industry:

Market Size and Growth: The Indian plastic industry is

one of the fastest-growing sectors, driven by increasing
domestic demand and export opportunities. It comprises
over 30,000 processing units, employing over 4 million
people directly and indirectly.

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Production Capacity: India has a strong production
capacity for a wide range of plastic products, including
polymers, resins, films, sheets, and various molded and
extruded products. The country has emerged as a major
producer and exporter of plastic goods.

Usage Across Sectors:

 Packaging: Plastic is extensively used in packaging

due to its versatility, cost-effectiveness, and
durability. It is used in packaging for food and
beverages, pharmaceuticals, electronics, etc.

 Automotive: Plastics are increasingly replacing

traditional materials in automotive applications due
to their lightweight nature, which helps in fuel
efficiency and reducing emissions.

 Construction: In the construction sector, plastics are

used in pipes, fittings, insulation materials, flooring,
and roofing.

 Consumer Goods: Plastic is widely used in

manufacturing consumer goods such as toys,
appliances, furniture, and household items.
Challenges and Sustainability: The industry faces
challenges related to environmental sustainability and

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waste management. Efforts are being made to promote
recycling, reduce single-use plastics, and develop
biodegradable alternatives.

Regulations and Standards: The Indian government has

introduced regulations to control the use of certain types of
plastics, promote recycling, and ensure the safety and
quality of plastic products.

Export Potential: India exports plastic products to various

countries, benefiting from its competitive manufacturing
costs and skilled workforce. The export market includes
both raw materials and finished goods.

Technological Advancements: The industry is adopting

advanced technologies such as automation, 3D printing,
and bioplastics to enhance productivity, improve product
quality, and address environmental concerns.

Overall, the Indian plastic industry is a vital part of the

economy, contributing significantly to industrial growth,
employment generation, and export earnings. However,
sustainable practices and innovation are crucial for its long-
term viability and to mitigate environmental impact.

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III. Need and importance of the project:

The market for plastic furniture and household items in

India presents several opportunities for growth, driven by
various factors and trends:

Rising Urbanization and Lifestyle Changes: India is

witnessing rapid urbanization, with more people moving to
cities and urban areas. This demographic shift fuels the
demand for compact, affordable, and versatile furniture and
household items, where plastic products excel due to their
lightweight nature and ease of maintenance.

Affordability and Accessibility: Plastic furniture and

household items are generally more affordable than
alternatives like wood or metal. This affordability makes
them accessible to a wider range of consumers, including
middle-income households and those in emerging markets.

Increasing Disposable Income: As disposable incomes rise

across different income brackets, consumers are willing to
invest in durable and aesthetically pleasing furniture and
household items. Plastic products cater to this demand by
offering a variety of designs and styles at competitive prices.

Demand for Eco-friendly Products: There is a growing

awareness and preference among consumers for eco-friendly
and sustainable products. Manufacturers can capitalize on
this trend by innovating with recycled plastics,
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biodegradable materials, and energy-efficient production
processes.

Expanding Retail Channels: The expansion of retail

channels, including e-commerce platforms, specialty stores,
and modern retail formats, provides greater visibility and
accessibility for plastic furniture and household items.
Online platforms particularly enable manufacturers to reach
a broader audience beyond traditional brick-and-mortar
stores.

Customization and Design Innovation: There is an

opportunity for manufacturers to differentiate themselves
through customization options and innovative designs.
Consumers increasingly seek products that not only meet
functional needs but also enhance interior aesthetics and
reflect personal style preferences.

Infrastructure Development: Infrastructure development

projects, such as affordable housing schemes, smart cities
initiatives, and commercial complexes, create demand for
cost-effective and durable furniture solutions. Plastic
furniture and household items are well-positioned to fulfill
these requirements due to their versatility and practicality.

Replacement of Traditional Materials: Plastic products

are gradually replacing traditional materials like wood and
metal in various applications due to their lower cost, lighter

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weight, and resistance to environmental factors such as
moisture and corrosion.

Export Opportunities: India has established itself as a

significant exporter of plastic products. Manufacturers can
leverage export opportunities by meeting international
standards, exploring new markets, and offering competitive
pricing and quality.

Government Support and Regulations: Government

initiatives supporting the plastic industry, such as
infrastructure development, incentives for manufacturing,
and regulations promoting sustainable practices, provide a
conducive environment for growth and innovation.

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IV. Scenario of Plastic Furniture and Plastic Household
Industry:

The plastic industry in India continues to be a crucial

sector, contributing significantly to the economy while
facing several challenges and undergoing transformations.
Here's a snapshot of the current scenario:

Market Size and Growth: The Indian plastic industry is

one of the fastest-growing sectors, with a compound annual
growth rate (CAGR) of around 8-10%. It comprises over
30,000 processing units and is a major contributor to
employment generation, directly employing millions of
people.

Diverse Applications: Plastic is used across various

industries, including packaging, automotive, construction,
electronics, healthcare, and consumer goods. Its versatility,
durability, and cost-effectiveness make it indispensable in
modern manufacturing and daily life.

Challenges: The industry faces challenges related to

environmental sustainability, primarily concerning plastic
waste management and pollution. The accumulation of
plastic waste, especially single-use plastics, poses
significant environmental hazards and requires robust
regulatory measures and innovative solutions.

Regulatory Environment: The government has

implemented stringent regulations like the Plastic Waste
Management Rules to manage and minimize plastic waste.
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These rules emphasize Extended Producer Responsibility
(EPR), encouraging producers to take responsibility for the
collection and recycling of plastic waste generated by their
products.

Technological Advancements: There is a growing

emphasis on technological advancements in the industry,
including automation, 3D printing, and the development of
biodegradable and recyclable plastics. These advancements
aim to improve manufacturing efficiency, reduce
environmental impact, and meet evolving consumer
demands for sustainable products.

Export Potential: India has emerged as a significant

exporter of plastic products, leveraging its competitive
manufacturing costs and skilled workforce. The export
market includes both raw materials and finished goods,
with opportunities in neighboring countries and global
markets.

Shift towards Sustainability: There is a noticeable shift

towards sustainable practices within the industry, driven by
consumer awareness, regulatory requirements, and
corporate social responsibility (CSR) initiatives. Companies
are increasingly investing in eco-friendly alternatives and
promoting recycling and reuse initiatives.

Government Initiatives: The government continues to

support the plastic industry through incentives for
technology upgradation, export promotion, and skill

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 development. Initiatives like the Plastic Parks Scheme aim
to create dedicated industrial zones with modern
infrastructure to attract investments and enhance
competitiveness.

Consumer Awareness: There is a growing awareness among

consumers about the environmental impact of plastic usage,
leading to changing preferences towards eco-friendly and
recyclable products. This trend is influencing product
innovation and marketing strategies within the industry.

Overall, while the Indian plastic industry presents

significant opportunities for growth and innovation, it also
faces the imperative to address environmental concerns and
adopt sustainable practices. The industry's evolution will
continue to be shaped by regulatory developments,
technological advancements, market dynamics, and
consumer preferences towards sustainability.

V. Market Analysis

The demand for plastic furniture and household items in

India has been significant and continues to grow due to
several factors:

Affordability and Cost-effectiveness: Plastic furniture and

household items are generally more affordable compared to
traditional materials like wood or metal. This makes them
accessible to a wide range of consumers, including middle
and lower-income households.

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Durability and Low Maintenance: Plastic products are
known for their durability, resistance to moisture and
corrosion, and ease of maintenance. This makes them
suitable for both indoor and outdoor use, appealing to
consumers looking for practical and long-lasting furniture
and household items.

Versatility in Design: Advances in manufacturing

technology have enabled the production of plastic furniture
and items in various designs, colors, and styles. This
versatility allows manufacturers to cater to diverse
consumer preferences and aesthetic tastes.

Lightweight and Portability: Plastic furniture and

household items are lightweight, making them easy to move
and rearrange as needed. This flexibility is particularly
valued in urban areas where space can be limited.

Weather Resistance: Many plastic products are designed to

withstand outdoor conditions such as rain and sunlight,
making them suitable for use in gardens, balconies, and
outdoor spaces.

Rising Urbanization and Apartment Living: With

increasing urbanization and the trend towards apartment
living, there is a growing demand for compact and
functional furniture and household items. Plastic products
often meet these requirements due to their lightweight
nature and space-saving designs.

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Preference for Modern and Contemporary Styles: Plastic
furniture and household items often feature modern and
contemporary designs, appealing to younger demographics
and urban consumers who prioritize style and aesthetics.

Replacement for Traditional Materials: In some cases,

plastic products are replacing traditional materials like
wood or metal due to concerns about deforestation, cost,
and maintenance requirements associated with natural
materials.

In recent years, the demand for eco-friendly and sustainable

plastic products has also been increasing, prompting
manufacturers to explore recycled materials and
biodegradable options. Overall, the market for plastic
furniture and household items in India remains robust,
driven by affordability, durability, versatility, and evolving
consumer preferences.

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VI. Opportunity for growth of Plastic Furniture and Plastic
Household Items Industry in Private Sector

The plastic furniture and household industry present

significant opportunities for growth due to several factors:

Demand and Market Expansion: There is a growing

demand for lightweight, durable, and cost-effective furniture
and household items. Plastic meets these criteria well and is
increasingly preferred over traditional materials like wood
and metal.

Technological Advancements: Innovations in plastics

manufacturing have led to the development of new materials
that are more sustainable, aesthetically pleasing, and
versatile. This includes the use of recycled plastics and
composites.

Cost-Effectiveness: Plastic furniture and household items

are often more affordable than their counterparts made from
other materials. This makes them accessible to a wider
range of consumers, including budget-conscious
households and businesses.

Customization and Design Flexibility: Plastics can be

molded into various shapes and designs, allowing for greater
customization and design flexibility. This appeals to
consumers looking for unique and personalized furniture
and household products.

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Durability and Maintenance: Modern plastics are durable,
easy to clean, and resistant to moisture and wear. This
durability is particularly appealing in household items that
experience heavy use, such as chairs, tables, and storage
solutions.

Environmental Considerations: With increasing

awareness of environmental issues, there is a shift towards
using recycled plastics and developing biodegradable
alternatives. Companies investing in sustainable practices
can leverage this growing consumer preference.

Global Market Reach: The plastic furniture and household

industry has a global market reach, with opportunities to
expand into both developed and emerging markets where
there is rising urbanization and disposable income.

E-commerce and Digital Marketing: The rise of e-

commerce platforms and digital marketing allows companies
to reach a broader audience and showcase their products
effectively. This enables small and medium-sized enterprises
(SMEs) to compete on a larger scale.

Changing Consumer Lifestyles: Modern lifestyles,

including urbanization and smaller living spaces, drive
demand for lightweight and modular furniture solutions.
Plastic meets these needs by offering practical and
adaptable designs.

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To capitalize on these opportunities, businesses in the
plastic furniture and household industry should focus on
innovation, sustainability, quality, and effective marketing
strategies. By understanding consumer preferences and
leveraging technological advancements, companies can
position themselves for growth in this dynamic market
sector.

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VII. Policies of the Government:

Jammu and Kashmir Industrial Policy:

The Jammu and Kashmir Industrial Policy 2021 is aimed at

creating a conducive ecosystem for industry, which attracts
investments in focus sectors leading to sustainable,
equitable, environment friendly and balanced industrial
development thereby creating employment opportunities for
the youth, income generation and overall development of the
region.

Objectives of the policy:

The new Jammu & Kashmir Industrial Policy 2021 aims:

 To attract substantial investment across focus sectors

 Creation of jobs for the youth
 Promoting development of backward regions
 Maximizing growth opportunities by optimum
utilization of the available resources
 Creating backward and forward linkages
 Harnessing the talents and skills of the people and
ushering prosperity in every household
 To nurture existing industries

Duration of the policy:

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 Jammu & Kashmir Industrial Policy 2021 shall be
valid for a period of 10 years from the 01.04.2021.
 The Government of Jammu & Kashmir can extend the
time period of the policy.
 The Government of Jammu & Kashmir can amend or
clarify to remove difficulty in implementation of the
policy.
 Minimum Regulation- Maximum Facilitation and
Digital Interventions:
 Government would act as facilitator rather than the
regulator.
 All UT related services, consents and permissions
required to set up and operate an industry in Jammu
& Kashmir shall be provided through Single Window
Portal.
 Strengthening Single Window Cell by involving the
concerned department wherever necessary with
respect to investments as well as concern and issues
that the industry may have encountered.
 Directorate of Industries, Jammu & Kashmir will
coordinate with Industrial Associations for Ease of
Doing Business initiatives.
 Implementation of Department for Promotion of
Industry and Internal Trade (DPIIT) District and State
level reforms.
 Government of Jammu & Kashmir would opt for Block
chain, Internet of Things, Artificial Intelligence,

23
 Robotics and other technologies for Ease of
Administration and Governance.

Package of Incentives:

 100 % on New DG Set ranging from 10KW to 2000KW

with capping of Rs. 40 lac in zone A and Rs. 45 lac in
Zone B
 100% exemption on land transactions in Government
Industrial Estates, Including lease deed and mortgage
deed
 30% on incurred charges Max on procuring Quality
Certification like ISO, ISI, BIS, FPO, BEE, AGMARK,
ECOMARK, ZED Rating etc, up to 2 Lakhs certified by
CA
 25% on cost of Automation Max on automation/
software/hardware /BPR through
computers/IT/Online Pollution Control Devices, up to
2 Lakhs if the same has not been claimed under CII or
Similar Schemes
 60% on Pollution Control Devices Max up to 50 Lakhs
if the same has not been claimed under CII or Similar
Scheme
 50% of expenses incurred on expenditure incurred on
Installation of new equipment of rainwater harvesting,

24
 wastewater recycling, zero discharge processing, solid
waste management
 Capital Investment Incentive at the rate of 50% on
investment maximum upto Rs.7.50 cr
 Capital Interest subvention at the rate of 6% for
maximum 7 years on loan amount up to Rs.500.00 cr
for investment
 GSTL incentive equal to 100% of the Gross GST for 10
years maximum upto 300%.
 Working capital Interest Incentive in the form of 5%
interest subsidy for existing units for 5 years,
maximum upto Rs.1.00 cr

25
VIII. Background of the Promoters:

Dr Sohrab Singh is the proprietor of the firm. He started his

operation by providing services to Soh Med Care Pvt Ltd) in
the year 2017 as a Director of the Company, in Soh Med
Care Pvt. Ltd. He have a responsibility to manage the object
of the company to management of Hospitals, Hotels,
Manufacturing units, Trading business and export house,
Construction and Educational centre under the name of
Company.

Mr. Sohrab Singh Kamboj is accountable for taking

marketing decisions of the firm and expansions of firm’s
goals and to put up the idea to accomplishment of firm’s
vision.

Mr. Sahil Sachdeva is the Chief Financial Officer of the firm

responsible for taking key decisions and managing day to
day operations of the firm. He is a Chartered Accountant
by profession and Post Graduate in Commerce. He is a
member of ICAI and has experience of more than 12
years in the field of financial management, and has
wide knowledge in taxation and Financial management of
Public and Private Sectors industries. He started his career

26
from Unicorn Investment Solution Ltd, by giving his
investment Consultancy Services making portfolios in
different sectors of the economy, after that he joined
renowned financial consultant firm to gain good experience
in finance, taxation and auditing practice of corporate,
public sectors and banks, and in 2013 he started his own
practice of financial consultancy in different sectors like
Hospital, Banks, financial institutions, Colleges, Hotels,
Construction Companies, manufacturing and trading firms.
He has vide knowledge about industry towards different
fields like manufacturing business, trading business of
pharmaceutical products ,marketing business, property
business ,construction business, hotel business, hospitality
and health care services He is also Executive board
members of Khalsa College, Amritsar and act as key note
speaker in various economy issues. He aims to work in a
dynamic environment that provides a vide spectrum of
experience and exposure, to implement a dynamic and
versatile portfolio of skills at work place and to serve the
organization. He has exposure in Statutory/Internal
Auditor of Industrial star Export Houses in Amritsar, Karnal
and Delhi of public limited companies. He is also one of the
director in Agrimax Distillery Limited.

Mr. Sandeep Singh is one of the key person of the firm. Mr.
Sandeep Singh have extremely vast and diversified
experience in different fields like manufacturing business,
trading business of pharmaceutical products ,marketing
business, property business ,construction business, hotel

27
business, hospitality and health care services with a
tradition of commitment to excellence and personal
attention towards the company goals.

He is also the Managing Director in Soh Med Care Pvt Ltd

and Agrimax Distillery limited. He is commerce graduate
and diploma holder of hospital management and also a MBA
Degree holder. He has an experience of more than 20 years
in management of hospitality. He started his career from
Amandeep Hospital, G.T. Road, Amritsar by giving his
management skills, on that time he was solely responsible
for Management of Amandeep Hospital and one of the Board
members of Amandeep Group which includes Amandeep
Hospital, Sohrab X-ray, Shabaz Medicos, Sajda Builders,
Navya Diagnostics. In 2008 he separated his business with
Amandeep Group and started his own Empire by taking
management of Karam Singh Hospital, Amritsar. After
successfully running the business of Karam Singh Hospital
for 5 years, he established his own hospital by incorporated
Private Limited Company in the name of SOH MED CARE
PVT LTD and starts his first unit of company i.e. PULSE
HOSPITAL, Maqboolpura chowk, Mehta Road, Amritsar.
Since 2013 he is running the hospital to shine the basic
healthcare facilities in the form of primary healthcare
services to patients. He is managing the hospital
management, hotel business and pharmaceutical business
aims to provide much higher standard facilities to the
society.

28
 Mrs. Surabhi Mahajan W/o Mr. Sahil Sachdeva, is also
one of the key person in the firm. She is responsible for
taking various HR related decisions of the firm. She is
commerce graduate and CA intermediate degree holder.
She has an experience of more than 11 years in
management of Punjab State power Corporation ltd.
After that she is a businesswoman and being a
partner in Financial Management Consultancy firm.
She has knowledge about industry towards
different fields like Cost management, product
development, marketing strategy.

INTRODUCTION ABOUT GROUP COMPANIES

M/s Soh Med Care Pvt. Ltd. was incorporated on

27.11.2012, started with the object to run Hospitals, Hotels,

Manufacturing units, Trading business and export house,

Construction and Educational centre .The Company started

its first plan by establishment of a hospital unit for

providing health care services in the name and style of M/s

Pulse Hospital situated at Maqboolpur chowk, Mehta Road,

Amritsar. The company’s hospital provide a wide range of

facilities like Orthopedics, Cardiology, gastrology, ENT,

general surgery, emergency case and pharmacy. Hospital

also provides specialized medical facilities by combining medical

29
 expertise with modern equipments for the health care of the

society.

This is a unique venture in the corporate sector with rare

blend of co-operation between doctors, managements,

patients and their well wishers. Hospital motto is to provide

comprehensive medical service in the most congenial,

friendly and reassuring environment under one roof and to

supplement the efforts to provide quality health care

services at a reasonable cost to economically poor sections.

Over the last seven years company’s revenue growth was

15% to 30% annually. The financials are as follows:

PARTICULAR F.Y TURNOVE PROFIT TAX PROFI

S R BEFORE AMOUN T

AMOUNT DEPRECIATION T AFTER

,TAX & TAX

EXTRAORDINA

RY ITEMS

Audited 2016 834.94 233.41 60.31 134.11

-17

Audited 2017 1018.97 306.56 74.55 161.55

-18

30
Audited 2018 1712.82 481.52 103.31 250.01

-19

Audited 2019 1865.52 492.86 98.06 216.40

-20

Audited 2020 2277.80 466.16 86.10 250.64

-21

Audited 2021 3699.26 462.79 87.09 247.29

-22

Audited 2022 4119.50 350.15 41.31 132.63

-23

Present Project:

Now Ms. Surabhi Sachdeva is setting up a project for

manufacturing of Plastic Furniture and Plastic Household
Items at Gatti Industrial Area, Gatti, Kathua, Jammu and
Kashmir.

31
IX. Production Process:

The detailed manufacturing process of plastic furniture and

household items involves several steps, from material
selection to finishing and quality control. Here’s a
comprehensive outline of each stage:

 Material Selection and Preparation:

 Polymer Selection: Choose the appropriate

polymer based on the desired properties of the
final product (e.g., polypropylene (PP),
polyethylene (PE), polyvinyl chloride (PVC),
acrylonitrile butadiene styrene (ABS)).

 Additives: Incorporate additives like colorants,

UV stabilizers (for outdoor use), flame retardants,
and reinforcements (e.g., glass fibers) to enhance
specific properties such as strength, durability,
and weather resistance.

 Material Preparation:

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 a. Compounding: Mix the polymer pellets with
additives in precise ratios using
compounding machines to achieve uniform
distribution.

b. Drying (if necessary): Some polymers

require drying to remove moisture before
processing to prevent defects in the final
product.

 Molding Process:

 Injection Molding (for complex shapes and high-

volume production):
a. Preparation: Load the compounded plastic
pellets into the hopper of the injection
molding machine.
b. Heating and Melting: The pellets are
heated and melted in the barrel of the
machine using heaters and screw
mechanisms.
c. Injection: The molten plastic is injected into
a mold cavity under high pressure. The
mold is typically made from steel and is
precision machined to form the desired
shape.
d. Cooling: The mold is cooled to solidify the
plastic. Cooling can be controlled to optimize
part properties and minimize cycle time.

33
 e. Ejection: Once cooled, the mold opens, and
the molded part is ejected by pins or ejector
rods.
 Blow Molding (for hollow items like bottles and
containers):

a. Extrusion: Plastic resin is melted and

extruded into a hollow tube (parison) that is
then clamped into a mold.
b. Blow and Form: Compressed air inflates the
parison to conform to the mold shape.
c. Cooling and Ejection: After cooling, the
mold opens, and the part is ejected.

 Thermoforming (for thin-walled products like

packaging trays):

a. Heating: A plastic sheet is heated to a

pliable forming temperature.
b. Forming: The heated sheet is stretched and
formed using a mold.
c. Cooling and Trimming: The formed part is
cooled, trimmed to final shape, and excess
material is recycled.

 Assembly:

 Joining Methods:

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 a. Ultrasonic Welding: Uses high-frequency
ultrasonic vibrations to create a molecular
bond between plastic parts.
b. Heat Staking: Heat is used to join plastic
parts through localized melting and
bonding.
c. Adhesive Bonding: Adhesives are applied to
join plastic components or to bond plastic
with other materials.
d. Mechanical Fastening: Bolts, screws,
rivets, or snap-fit features are used for
assembly.
 Finishing:

a. Surface Treatment: Processes like

polishing, sanding, or coating may be
applied to improve aesthetics and
functionality.
b. Decoration: Printing, labeling, or adding
decorative elements (e.g., decals, inserts) to
enhance product appearance.

 Quality Control:

 Inspection:

a. Visual inspection for surface defects,

dimensional accuracy, and color
consistency.

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 b. Use of measuring tools (calipers, gauges) for
critical dimensions.
 Testing:

a. Performance tests such as load testing (for

furniture), impact resistance, weather
resistance (UV exposure), and chemical
resistance.
b. Regulatory compliance tests for safety
standards and environmental regulations.

 Packaging and Shipping:

 Packaging: Products are packaged securely to

prevent damage during transportation and
storage.

 Distribution: Finished goods are distributed to

wholesalers, retailers, or directly to consumers
through various channels including e-commerce
platforms.

 Environmental Considerations:

 Recycling: Incorporate recycled plastics into

products and support recycling initiatives.

 Waste Management: Proper disposal and

management of plastic waste generated during
36
 manufacturing processes to minimize
environmental impact.

X. Project Particulars:

Production Capacity:

The installed capacity will be 10 tons per day. The unit will
work at 45% capacity in the first year and will increase to
50% in the second year and gradually reached to 70% from
6th year onwards.

Land and Building:

The promoter have 7 kanal 15 Marla of land for the project.

The cost of Land is about Rs.48.00 lakhs and estimated cost
of land development is Rs.200.00 lakhs which includes
factory shed, transformer room, other Civil work, Water
tank, compound wall and fencing and other buildings such
as office building, Laboratory, Labour quarters, security
room etc that have to be built in the premises.

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Plant and Machinery:

The total cost of Plant and Machinery will be Rs.1575.00

lakhs.

Working Capital

The production will operate in 2 shifts a day. The working

capital requirements has been estimated on a realistic
basis as below:

Particulars Rs. (in lakhs)

Stock 30.00
Book Debts 50.00
Working Capital 80.00

Contingencies:

The implementation of the project will start immediately and

will be completed within 6 months. The firm expects to
implement the project in time within budgeted costs and
avoid cost escalation. The firm have tied up with machinery
suppliers for supply of Plant and Machinery and we don't
expect any cost escalations in this regard. All provision for
contingencies is included in project cost.

Total Cost of the Project:

Sr.No. Cost Of Project Rs. In Lakhs

1. Cost of Land 48.00
2. Shed & Civil Works 200.00
3. Plant & Machinery 1575.00

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 4. Pre-operative expenses 25.00
5. Working Capital 80.00
Total Cost of Project 1928.00

Means of Finance:

Sr. No. Particulars (Rs. In Lakhs)

1. Term Loan-Machinery 1175.00
2. Working Capital Limit 50.00
3. Own Contribution 703.00
Total 1928.00

Schedule of Implementation:

A brief list of activities from the stage of preparation of

project report to the stage of commercial production with the
approximate time for each stage is furnished in below.
Accordingly, the unit will start commercial production from
Oct-2025 onwards.

1. Acquisition of land Already Acquired

2. Civil Construction Aug-2024 to
September-2024
3. Placement of orders for Sept-2024
Machinery
4. Delivery at Site Jan-2025 to-June
2025
5. Arrangement for Power Aug-2024 to
September-2024
6. Arrangement for Water Aug-2024

39
7. Erection of Equipment Jan-2025 to-June
2025
8. Procurement of Raw materials, - July-2025
Selection of Key Personnel
9. Commissioning of Plant and Aug-2025
Trial production
10 Commercial Production Oct-2025
.

Projected Employment Details:

A list of estimated manpower required for smooth operations

of the unit and their annual remuneration is detailed as
follows:

Category Monthly No. of Salary

Salary Persons (Rs.)
(Rs.)
Manager (Production & 75000 1 75000
Office)
Accounts Officer 40000 2 80000
Engineering Staff 40000 3 120000
Shift in Charge 30000 3 90000
Admin Staff 30000 3 90000
Store Keeper 15000 2 30000
Time Keener & Security 15000 4 60000
Office Assistants 25000 4 100000
Office-Boy 12000 2 24000
Skilled Workers Contract 10 750000
Unskilled Workers Workers 10 250000
16.69
lakhs

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 Preliminary and pre-operative expenses:

Administration expenses, staff salaries, legal expenses,

documentation charges, professional charges, travelling
expenses, postage & telephone, marketing expenses etc.,
during the implementation and pre-operative period is
estimated at Rs.25 Lakhs.

XI. SWOT Analysis:

Strengths:

 Affordability: Plastic furniture and household items

are generally more affordable compared to alternatives
like wood or metal, making them accessible to a wide
range of consumers, including price-sensitive
segments.

 Versatility and Design Flexibility: Plastic products

can be molded into various shapes, sizes, and colors,
offering a wide range of design options to cater to
diverse consumer preferences and interior styles.

 Durability and Low Maintenance: Plastic items are

durable, resistant to moisture and corrosion, and easy
to clean, making them suitable for both indoor and
outdoor use. They require minimal maintenance
compared to other materials.
41
  Lightweight: Plastic furniture and household items
are lightweight, making them easy to transport, move
around, and rearrange, which is beneficial for urban
dwellers and renters.

 Weather Resistance: Many plastic products are

designed to withstand outdoor conditions, making
them ideal for garden furniture and outdoor
accessories.

Weaknesses:

 Perception and Aesthetics: Despite improvements in

design, there can still be a perception that plastic
items lack the aesthetic appeal of natural materials
like wood or the perceived durability of metal.

 Environmental Concerns: There is growing consumer

and regulatory scrutiny over the environmental impact
of plastics, including issues related to recycling, waste
management, and the use of non-biodegradable
materials.

 Quality Perception: Some consumers may perceive

plastic items as less durable or of lower quality
compared to alternatives like wood or metal, affecting
purchasing decisions.

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Opportunities:

 Growing Demand for Sustainable Products: There is

an increasing demand for eco-friendly and sustainable
products. Manufacturers can capitalize on this trend
by innovating with recycled plastics, biodegradable
materials, and promoting sustainable production
practices.

 Rising Disposable Income: As disposable incomes

rise, consumers are willing to invest in durable and
aesthetically pleasing furniture and household items,
presenting opportunities for premium plastic products
with enhanced designs and features.

 E-commerce and Digital Marketing: The expansion

of e-commerce platforms provides manufacturers with
new channels to reach a broader audience, including
rural and semi-urban markets, which were previously
underserved.

 Customization and Innovation: There is an

opportunity to differentiate products through
customization options, innovative designs, and
integration of technology (e.g., smart home features).

Threats:

43
  Competitive Market: The market for furniture and
household items is highly competitive, with numerous
players offering a variety of materials and designs.
Competing materials like wood, metal, and synthetic
materials pose a threat to the market share of plastic
products.

 Regulatory Pressures: Increasing regulations related

to plastic waste management, recycling, and bans on
single-use plastics can impact manufacturing costs,
operations, and market access.
 Shift in Consumer Preferences: Changes in
consumer preferences towards natural materials,
sustainable products, or alternative materials (e.g.,
bamboo, rattan) could affect the demand for plastic
furniture and household items.

 Global Economic Factors: Fluctuations in raw

material prices, global trade policies, and economic
conditions can impact production costs and market
competitiveness.

XII. Cost of production and Profitability:

A detailed projected profitability statement, for 10 years is

given in Annexure. The statement has been prepared in the
following assumptions:
44
  The sale price is estimated at Rs. 85000/ton. Ex GST
18%. The selling prices will vary with change in raw-
material prices which has not been considered here.

 The unit will work for 330 days a year on two shifts
basis.

 Provision for employees benefit at 20% for wages and

salaries and for annual increase at 10 to 15% is made.

 Cost of repair and maintenance of assets is taken as

2.00% and insurance cost at 0.35% of an assets
including current assets.

Balance Sheet:

Projected profitability statement and balance sheet for

five years is enclosed as Annexure.

Coverage Ratios:

Coverage Rations has been calculated in Annexure.

Projected Profitability Statement:

Kindly refer Annexure for detailed profitability

statement.

Assumptions:

 Installed Capacity 10 Tons per day

45
 Selling price for projection is adopted for all periods
uniformly based on the present market rates. As this is
variable compared to raw material and other variables
cost, the same price is adopted for working out
profitability statement and for other purpose.

 GST is worked out at 18%.

 Depreciation is worked out as per W.D.V. method at the

prescribed rates under respective schedule.

 Working capital assessment is worked out under CMA

format.

46