Pacbag business plan full-niloy_saha

EAST WEST
UNIVERSITY
Business Plan
Topic: “PAPER AND CLOTH BAGS (PAC Bags)”
.
Course Title: Corporate Finance.
Course Code: FIN-522 (Sec-1)
Submitted to:
Dr. Tanbir Ahmed Chowdhury.
Professor, Dept. of
Business Administration & Director, Executive
Development Centre
Prepared By:
Niloy Saha.
ID: 2018-2-95-019
East West University
Department of Business Administration
Program – MBA
Summer-2020
Date of Submission: 9th
August 2020

Niloy Saha
ID= 2018-2-95-019
Date : - 09-08-2020
PAPER AND
CLOTH BAGS
(PAC Bags)
BUSINESS PLAN

Table of Contents
EXECUTIVE SUMMARY
COMPANY OVERVIEW -------------------------------------------------------1
- Introduction --------------------------------------------------------1
- Mission --------------------------------------------------------1
- Market and product --------------------------------------------------------1
- Company goalsand objectives--------------------------------------------------------- 1
PRODUCT DESCRIPTION-------------------------------------------------------------------------- 2
- Introduction --------------------------------------------------------2
- Production description --------------------------------------------------------2
- Problem solving --------------------------------------------------------4
- Market comparison --------------------------------------------------------4
INDUSTRY ANDMARKETPLACE ANALYSES --------------------------------------------------- 5
- Industry analysis ---------------------------------------------------------5
- Marketplace analysis ---------------------------------------------------------5
- Customeranalysis ---------------------------------------------------------6
- Competitoranalysis ---------------------------------------------------------6
- SWOT Analysis ---------------------------------------------------------7
MARKETING STRATEGY----------------------------------------------------------------------------- 8
- Introduction ----------------------------------------------------------8
- Target marketstrategy -----------------------------------------------------------8
- Productstrategy -----------------------------------------------------------9
- Pricingstrategy -----------------------------------------------------------9
- Distribution strategy -----------------------------------------------------------9
- Advertising andsales promotion ------------------------------------------------------10
- Sales strategy10
- Sales forecast10
OPERATIONS----------------------------------------------------------------------------------------- 11
- Introduction 11
- Value chain 11
- Cloth bag manufacturing process ----------------------------------------------------- 12
- Paper bag manufacturing process----------------------------------------------------- 14
FINANCE ---------------------------------------------------------------------------------------------- 18
- Capital requirement -------------------------------------------------------------18
- Sales estimate -------------------------------------------------------------18
- Funding -------------------------------------------------------------18
- Profit andloss -------------------------------------------------------------19
- Balance sheet -------------------------------------------------------------20
- Breakeven -------------------------------------------------------------21
- Production capacity ------------------------------------------------------------15
- Location -------------------------------------------------------------16
- Inventory -------------------------------------------------------------17

HUMAN RESOURCE -------------------------------------------------------------------------------- 22
- Organisation Structure ----------------------------------------------------------22
- Personnel planning ----------------------------------------------------------22
- Recruitmentprocess ----------------------------------------------------------24
- Training ----------------------------------------------------------24
REFERENCE--------------------------------------------------------------------------------------- 26

EXECUTIVE SUMMARY
PAC Bags (Paper and Cloth bags Private ltd) have come up with a perfect substitute for
plastic carry bags, keeping in mind the ill effects of the plastic. PAC Bags will initially deal in
manufacturing of two products i.e. paper bags and cloth bags. The distinctive feature which
sets us apart from other small scale competitors is that we provide customize option as well the
option of promoting their brand. The Paper bag also will be better quality product with a
strong base.
Manufacturing of Paper and cloth bag idea is considered taking into consideration the harmful
effect of plastic bags. Due to plastic ban in Bangladesh, our business has a better opportunity
to bridge the gap created due to the ban.
We will be catering to Business 2 Business (B2B) segment i.e. all the Retailers, pharmacies,
showrooms, etc.
The project report includes detailed descriptions of the production of the bags, the material is
that we will be requiring, how we are going to go about the manufacturing process, a detailed
description of the personnel planning how we are going to train our employees and how we are
goingto recruit the employees and the financials.

COMPANY OVERVIEW
INTRODUCTION
“PAC Bags” – Paper and Cloth Bags Pvt. Ltd Will engage in production and selling of
customized cloth and paper bags. The basic function will include giving of clients the type of
bag they want may it be in shape, size, color and print. We will be using some old material
like newspaper, cloth for additional strength and to reduce our cost, the outer layer will be of
a good quality and presentable thus delivering our clients with durable yet presentable bags.
We provide a solution to the problem of pollution due to disposing plastic carry bags.
“PAC Bags” is guided by a simple philosophy, strong values and high ethical standards. In
everything we do, we strive to help people live better lives. Through the Eco friendly
approach.
MISSION STATEMENT
“To Provide customized and Quality products to all our Clients and cater to their needs by
taking intoconsideration the best ways to reduce pollution and safeguarding our environment.
MARKETS AND PRODUCTS
Product – Newspaper Bags and Cloth bags.
Target Location – Dhaka
Type of operation – Business 2 Business
Target customers - Supermarkets, pharmacy, general provisional stores, Clothing and electronic
showrooms, event management companies.
The location which we will target is Dhaka and since there has been a plastic ban all over
the country, we “PAC Bags” willprovide a alternative of paper as well as Cloth bags.
COMPANY GOALS AND OBJECTIVES
Goal - We aspire to be the market leaders in providing quality products within 5years from the
inception.
- Expand to other city and diversify intomore eco-friendlyproducts.
Objective - is to create awareness and try to influence people to use a eco-friendly product and
reduce the usage of Plastic bags.
pg. 1

PRODUCT DESCRIPTION
INTRODUCTION
PAC Bags pvt.ltd is introducing 2 biodegradable and eco-friendly products initially, which
varies in sizes and the unique thing which we are providing an option of customized message
of label on our product as per customers requirements along with general products offered.
DESCRIPTION OF PRODUCT
1. Paper Bag
General Newspaper bags
Customized Craft Paper Bags
To make paper bags Newspapers will be procured from the local paper
buyer in bulk and process it converts it into a carry bag. This will be
available in various sizes. We also will be offering a customized paper
bag option whereas per clients request pertaining to size, quality, shape,
design texture, handle and advertisement to be placed, we will be
sourcing craft paper instead of general newspaper.
pg. 2

2. Cloth Bag
Normal cloth bag Quality cloth bag
Cloth bag will be done initially with the help of used cloth from households
and for premium orders high quality raw material will be purchased as per
the demand. The differentiating feature which PAC Bag is providing to its
customers is we are providing them with the advertisement on the bags or
their business name.
Paper & cloth bag manufacturing (General size)
- General sizes for paper bags- 10*7, 12*9, 3*2
- General sizes for cloth bags- 24*14,16*12
All general size bags can be with custom designs or names as per the choice of the clients. The
clients will also have an advance custom option wherein they can choose the quality, size, thickness,
shape, texture, handle and the design of the bags.
The advance custom option will be depend on the order size placed by the clients, where in each
batch willhave a different option for Print, graphics and material.
To increase the strength of the bags PAPER MACHE will be used.
Paper for customized bags will be procured from local suppliers.
pg. 3

PROBLEM SOLVING
1. Less Pollution
Since the raw material used for making this product is paper and cloth and there is no
wastage and is easy disposable as it is biodegradable , whereas in the production of
plastic bags which causes land pollution when it is thrown after use , air pollution
when it is produced infactory.
2. Re-use
One of the mainproblem of plastic bag is of Re-usability, which often people don‟t
prefer to do with plastic bags as it most of the times could not handle the weight of
grocery. Whereas PAC bag cloth bag willensure that it handles the weight of grocery.
3. Alternate medium of advertising
It‟s a alternate medium of advertising and cheap source to spread the word for both the
client as well for PAC Bag comparatively to other source of advertising.
MARKET COMPARISON
Competition
- Small scale players producing small paper bags, they are not established and not
organized.
- House wife‟s producing cloth bags.
- Plastic bag dealers.
Point of Parity – Similarity between the other plastic bags and PAC bags are its use, the core
purpose of bags is to carry the materials and is convenient while shopping.
Point of Difference – The differentiation of our product is its Eco-friendly and can be Re- used
and Re-cycled whereas in case of plastic being non biodegradable its dangerous for environment.
Other differentiation is that we provide a customized product with added feature of client
advertising, logo or symbol can be placed on the cloth bag.
pg. 4

INDUSTRY AND MARKETPLACE
ANALSYS
INDUSTRY ANALSYS
Due to legislation of ban on plastic bags in various city particularly Dhaka, a huge opportunity for a
substitute has cropped up. Such a substitute has to provide minimum features, which were provided
by plastic bags. For e.g. the substitute has to be strong enough to bear weight of grocery, durable
enough to be used multiple times, cheap enough to be given almost free of cost by retailers,
malls etc. A cloth and paper bag fit well as substitute of plastic bag as it carries weight, stays long
and cost a little.
Currently there is a huge Scope for cloth and paper bags in Dhaka, so much that supply
comes nowhere near to market demand.
One of reasons for this huge demand-supply gap is lack of any big player in manufacturing of cloth
bags. There are fundamental reasons due to which a large player cannot sustain in this business.
Cloth Bag manufacturing is meant onlyfor tinyfragmented micro-enterprises.
Grocery bags do not carry any brand. This lack of branding makes local tiny players eligible for
manufacturing. The Bangladeshi Paper Industry accounts for about 1.6% of the world‟s
production of paper (Bdt. 25,000-crore). Source: Business Line
In Bangladesh, paperboard accounts for nearly 47.3% of the total market size, followed by
writing and printing paper (29.6%), newsprint (19.5%) and specialty paper (3.6%) according to
Research.
MARKET PLACE ANALSYS
Following are the findings which we got after a Personal interaction and observation with the Retail
owners and their staff with regard to use of plastic bags. It covered supermarkets, mini
supermarkets, brand stores, provision stores, and Pharmacy‟s and takeaway retail outlets etc. I
surveyed 10 retailers indifferent stores.
The study showed that approximately more than 1000 customers cater to these outlets every month,
which provide bags for its customers who come for shopping, while a small minor its does not
offer the same because of the reasons like „no demand‟ or „less demand‟. Most of these outlets
provided plastic bags for its customers because of its easy availability and high demand.
pg. 5

When asked “Would you be willing to replace the plastic bags with eco-friendly and customized
paper bags?” almost all the outlets responded positively by saying „Yes‟. But, only 60% of the
total believed in providing their customers with reusable cloth bags at a price ranging from BDT.
5-10.
On an average the demands for reusable cloth and paper bag is quite good, and as far as the
customer‟s point of view is concerned, he will always look for something which is eco-friendly.
So with an increased use of cloth and paper bags (which can be reused) over a period of
time can play a vital role in the right benefit of the environment and cater to the needs of our
customers. We get an added advantage of customizing in designing and adding of the
company name which ads as a part of their advertisements.
CUSTOMER ANALSYS
We would offer our products to the commercialusers i.e. B2B
 Retail outlets like Bata, Apex, and BFC etc.
 Supermarkets and general stores.
 Pharmacies.
COMETITOR ANALSYS
1. Existing small local suppliers of paper bags and cloth bagsartisans
2. Existing plastic bag manufacturers etc.
3. NGOs that do the manufacturing of paperbags.
pg. 6

SWOT Analyses
 STRENGHT
- Eco friendly, re-usable and is can be easily disposed off.
- Customized bag as per requirement of clients.
- Promotion tool for both the PAC bag as well as the client.
- Better and tough product compared to other small scalesuppliers.
 WEAKNESS
- Not well know, since PAC Bag is a newcompany.
 OPPORTUNITY
- Plastic ban has resulted inan opportunity for a substitute for customers, which is an
eco friendly product and would hold the weight of items.
- Promotional tool for client, so this willincrease PAC Bag‟s sales.
 THREATS
- Potential entrants in the market with sameproducts.
- Existing small scale producers likesmall artisans orhousewives.
- Existing Plastic bagproducers.
pg. 7

MARKETING STRATEGY
INTRODUCTION
PAC Bag will be giving customized bags based on need of the client like colour, design and size,
with the option of printing the clients name or wording which they demand to print on it. We will
be targeting all retail outlets like grocery stores, pharmacies, supermarkets and branded outlets.
We will position the product as complimentary service eco-friendly in nature which will aid
our client inthe promoting their brand.
We will use personal selling as major marketing strategy where our sales team will contact the
clients and explain the product and service hence getting the orders.
TARGET MARKET STRATEGY
 Location – Dhaka
Reason to select Dhaka, good opportunity for our product due to the ban on Plastic
carry bags and there are small scale paper and cloth bag manufacturers.
 Target industry –Retail
 Target Customers – All Retailer‟s likejewelery showrooms, mobile shop owners, General
provisional stores, grocery stores ,etc.
 Target Consumers – People who shop from this Retailers.
 Satisfying Need
- Clients – Need for replacement of Plastic bags as there is plastic ban in the state.
Also it will help in promoting company brand as it will be a less expensive way
of advertising.
 Demand for our product – Looking at the current scenario in Goa the demand for our
product will eventually increase as it‟s a eco friendly option, its re-usable and can be used
as fashionable item to portray the imageof stylish person.
pg. 8

PRODUCT STRATEGY
Product
Our products willinclude cloth and paper bags which can be used as carry bags or carry out bags.
Features
Customizable- the bags will be customized for the client as per their need
Eco-friendly- the bags will be made of environment friendly material.
Benefits
The clients willbe able to promote themselves.
They can givean added service to their customer.
The product i.e paper bag is much stronger compared to other paper bags as we have a strong
base and less chance of paper getting damage.
Differentiating Factor
The base of the paper bags willbe much stronger compared to other existing products and we will
produce in different size according to the need ofcustomers.
Promotional Tool for the customers i.e. Retailers
Eco-Friendly as compared to Plastic polythin bags, as we can re-use it as well as it is
biodegradable
PRICING STRATEGY
We will go for Target Costing as we willbe competing against the small scale producers ,
which are not well established and we are going for large scale production.
Prices willvary according the size of the carry bag demanded by the customers and according to
the printing cost and all raw material .
DISTRIBUTION STRATEGY
Personnel Selling
Sales team will deal with the delivery of the orders received and follow up to check on
reordering the stock from the clients. We choose personnel selling as having a distribution network
will not be a viable option for the company. The dis-advantage of Geographical location is not it
small and connecting to them personaly is muchproblem.
pg. 9

ADVERTISING AND SALES PROMOTION
 Advertising – In the initial stage we willbe using print media like newspaper, B- magazine,
posters, Web page and emails.
 Personal selling– Sales team willbe engaged in promoting the product and the value we
giveand getting theorders.
 Public relations – we intend to post write-up of the company, the ideology and
advantages to clients and society.
 Direct Marketing- this component will comprise of interactive consumer websites,
catalog distribution and promotional letters
SALES STRATEGY
Personnel Selling – we are going for personnel selling as Dhaka city being big as well as it‟s
a new start up. Personnel selling willbe looked upon by Internal Sales people.
SALES FORECASTS
Sales forecast (Figures in units)
Best guess
Years Year 1 Year 2 Year 3 Year 4 Year 5
Cloth bags 2000000 2100000 2200000 2300000 2400000
Paper bags 1300000 1365000 1430000 1495000 1560000
Worst case
Years Year 1 Year 2 Year 3 Year 4 Year 5
Cloth bags 1200000 126000 1320000 1380000 1440000
Paper bags 900000 945000 990000 1035000 1080000
pg. 10

OPERATIONS
INTRODUCTION
The manufacturing process will not completely be labor intensive nor capital intensive. The process
will differ from client to client based on quality requirement. As there are two products that our
company deals in, the process for each differs. These process will be explained in different parts.
This plan assumes that the machinery is utilized at 85% capacity and the labor is trained. The
production of the custom bags will be done in batches and the general sizes will be done at a
continuous scale or if there is no custom bag to me manufactured. We will have only 1 shift per
day and if there are order to be completed then only the company will run overtime. The
supervisors present at the site will be in charge of the quality and consistency wherein every 10 bag
will be rechecked for any defects. The manpower and machinery taken in this plan is based on
the production target requirement and on the timetaken for eachprocess.
ODERING PROCESS ( VALUE CHAIN)
Step 1 – Receive order from client including Logo’s for printing
Step 2 – Placing order for the material
Step 3 – Material print if demanded
Step 4 – Productions is carried out
Step 5 – After completion, Bags are Dispatched
pg. 11

CLOTH BAG MANUFACTURING PROCESS
1. The cloth required will be taken from the store based on the request of the client of
texture color and graphic. This material will be prior printed if required. This process will
also get the required old cloth that willbe used inthe product.
2. CUTTING
Here the fabric is arranged in layers & cut according to the product
pattern and size demanded by the customers. Cut fabric is marked
according to product coding & handed over to the next department. 3
employees willbe required here.
3. STITCHING AND FINISHING
All the body parts such as front back body, gusset, and handle of a bag
are stitched together in stitching machine. Based on the request of the
customer it will be changed if they require a non-stitched then that will
be done at this stage. 6 employees will be required here. The making
of handles willalso be done at this stage
4. CHECKING & PACKING
Finished bags are quality checked for any kind of errors. If any error is found then it is
mended & rectified. The bags are tied with the help of a cloth zip
tie and put in a big cloth bag which will include the name of the
client for whom the order has been placed. 2 employees will be
required here.
Production Capacity of Cloth Carry Bags
By utilizing an average of 200 meters of cloth can be produced in a day‟s operation out of
which an average of 500 carry bags can be produced per day. Thus, a total of 16666 bags can
be produced in a month.
pg. 12

Total cost of the department
Nos. Name of machine Quantity Rate
(Bdt.)
Amount
(Bdt.)
3 Cutting machines 20000 60000
6 Stitching machine 30000 180000
1 Attachment machine 40000
12 Furniture (chairs and tables) 50000
Fixtures 10000
Total 250000
Ultrasonic Non-Woven Bag Sealing Machine
Ultrasonic Manual Handle Attachment Machine
pg. 13

PAPER BAG MANUFACTURING PROCESS
1. The paper required will be taken from the store based on the request of the client of
texture color and graphic. This material will be prior printed if required. This process
willalso get the required old paper that willbe used in the product for strength.
2. Paper sheering
In this process paper is arranged in layers & cut according
to the product pattern and size demanded by the customers.
Sheered paper pieces is marked according to product coding
& handed over to the next department. 2 employees will be
required here.
3. Eyelet punching process
At this stage based on the request of the client paper bags will earthier have a handle or
a hole inorder to make it easy to carry. The holes willbe punched and
Eyelet willbe attached to the semi-finished product. 1 employees will
be required here.
4. Paper creasing
In this stage the cutout paper bags will be placed in layers and will be creased in order
to make the folding and sticking process more efficient. 2 employees
will be required here.
5. Hard Press
This stage will depend on the request of the client if the bag is of
thick and high quality then the paper will go through this process.
Here the glue will be applied to layers and the paper will be made thick
for durability and quality.
6. Folding, Sticking and Finishing
All the body parts such as front back body, gusset, and handle of a bag
are folded inthe required manner and stuck together. The making of
handles willalso be done at this stage and put for the bags. 5 employees willbe required
here.
pg. 14

7. CHECKING & PACKING
Finished bags are quality checked for any kind of errors.
If any error is found then it is mended & rectified. The
bags are tied with the help of a cloth zip tie and put in a
big cloth bag which will include the name of the client
for whom the order has been placed. 2 employees will
be required here.
Production Capacity of Paper Carry Bags
By utilizing an average of 500 meters2 of paper can be produced in a day‟s operation out of
which an average of 4000 carry bags can be produced per day. Thus, a total of 120000 bags
can be produced in a month.
Total cost of the department
Nos. Name of machine Quantity Rate
(Bdt.)
Amount
(Bdt.)
2 Paper sheering machines 10000 20000
1 Eyelet punching machine 15000
1 Paper creasing machine 10000
1 Hard press 10000
5 Glue making & appling tools 1000 5000
Fixtures 10000
Total 120000
pg. 15

LOCATION & FACILITY
The production unit will be located in Savar industrial estate because of the proximity to the road
transport facilities. According to the rules the land will be taken on 30 year lease and then
extended to 95 years. The total area that we will be required 500 mt2. For this we have to
deposit Bdt. 50000 which will be refunded if we stop the unit. The lease amount has to be paid in
7 installments. The building will be 3 storeys where the ground floor will be used as a storage
area. The first floor the machinery will be setup and production will be held. On the third floor
is where the administration department will be functioning. The production area will be split
into two for the paper and cloth section. The construction will occupy 4/5 of the area taken.
The full construction will cost around BDT.20, 00,000. The lease amount since it‟s a 3 flour
building will cost us approximately 700 per sq. mt. the total amounts to Bdt. 350,000. The roof
will be slanting. The building will also have other rooms like for the workers spate for men and
women, toilets and place to store water. All this is required to be kept at min area according to
the rules of the Industrial estates.
We will be requiring power and water which will be provided to us by IDC.
Production department
Paper
bags
Cloth
bags
Top floor 1st floor Ground floor
pg. 16
Finished goods
Cloth
bags
Raw material
Storage area
Administration
department
Paper
bags

INVENTORY
The major components of inventory willconsist of finished goods and Raw materials. There will
be days targets so there won‟t be WIPinventory.
 The raw material of the paper bags are Paper roll and old newspapers, Gum and Eyelets.
 The raw material required for cloth bags are cloth, old cloth and thread.
Most of the production will be based on the request of the client. Hence there will be no effect
of the seasonal demand and out products are non-seasonal and non-perishable.
The amount of inventory will be based on order size plus safety stock and minimum order
quantity of the supplier. The safety stock will be kept in order hedge against price rise or a
strike or natural calamity which can hamper the delivery of the raw materials. Also the
inventory will depend as the minimum order quantity of the supplier if it is more than the order
than there willbe inventory.
The inventory of finished goods will be kept batch wise based on client‟s orders. After the
order is complete it willbe dispatched.
Lead time for supplier‟s outstation suppliers is 10 days and in state suppliers is 3 days.
pg. 17

Capital requirement
FINANCE
Quantity Name of equipment Rate (BDT.) Amount (BDT.)
3 Cutting machines 20000 60000
6 Stitching machine 30000 90000
1 Attachment machine 40000
Fixtures for cloth bage manufacturing zone 10000
2 Paper sheering machines 10000 20000
1 Eyelet punching machine 15000
1 Paper creasing machine 10000
1 Hard press 10000
5 Glue making & appling tools 1000 5000
Fixtures for paper bage manufacturing zone 10000
Firniture and fixture for Admin area 100000
5 Computers 100000
Other loose tools 10000
Fixture & fittings for the storage area 50000
Construction of building 3000000
Total 3630000
Startup expenses and legal 130665
SALES ESTIMATE
Years 2020 2021 2022 2023 2024
Cloth bags 2000000 2100000 2200000 2300000 2400000
Paper bags 1300000 1365000 1430000 1495000 1560000
Funding
Investment breakup from various sources
 30% form proprietors
 50% from government, Bank and EDC
 20% unsecured from friends and family
pg. 18

Profit and Loss account for PAC Bag Pvt ltd
Elements of revenues and expenses 2020 2021 2022 2023
Sales:
Cash sales: Paper Bags
Cloth bags
Net sales
Less Cost of sales
Raw material
Carriage inward
Gross profit
Less: operating expenses
salaries & other benefits
Administrative expenses
Telephone & internet
Electricity & water
Insurance premium(Oriental Insurance)
legal & auditing expenses
Marketing expenses
start up fees
depreciation
Rent (lease payment)
Maintenance
outward
Miscellaneous Expenses
Operating profit
Net profit before interest and taxes
Less: Interest charges
Interest on loans (loan form EDC
@14% interest)
Net profit before tax
Less: provision for tax
Net profit ( After Interest and tax )
4000000 4200000 4400000 4600000
3900000 4095000 4290000 4485000
7900000 8295000 8690000 9085000
3000000 3100000 3250000 3300000
500000 600000 700000 800000
4400000 4595000 4740000 4985000
1500000 1600000 1700000 1750000
50000 70000 62000 64000
50000 50000 50000 50000
500000 550000 600000 620000
10000 10000 10000 10000
5000 6000 5000 5000
500000 550000 600000 620000
130665 - - -
381000 340200 301725 269602
350000 350000 350000 350000
50000 57000 40000 60000
300000 350000 350000 400000
9000 16000 25000 27000
3835665 3949200 4093725 4225602
564335 645800 646275 759398
280000 280000 280000 280000
284335 365800 366275 479398
197246 124372 124533.5 162995.3
87089 241428 241741.5 316402.68
pg. 19

BALANCESHEET OF PAC BAG pvt ltd
Particulars 2020 2021 2022 2023
I. Sources of funds
(1) Shareholder’s Funds
(a) Share Capital 1000000 1000000 1000000 1000000
(b) Reserves and Surplus
(profit) 87089 241428 241741 316402
(2) Loan Funds
(a) secured Loan
Loan from EDC 2000000 1820000 1656200 1507142
(b) Unsecured loan
400000 368000 338560 311475.2
Total Capital employed 3487089 3429428 3236501 3135019.2
II. Application of Fund
(1) Fixed Assets
+ Building 3000000 2700000 2430000 2187000
+machinery 360000 306000 260100 221085
+firniture & fixtures 270000 243000 197100 177390
+ land
less depriciation
Machinery 54000 45900 39015 33163
Firniture and fixtures 27000 24300 19710 17739
Buliding 300000 270000 243000 218700
Net Block 3249000 2908800 2585475 2315873
(2) Investments Nil Nil Nil Nil
Current assets loans and advances 238089 520628 651026 819146.2
Less: Current Liabilities and
provision
TOTAL 3487089 3429428 3236501 3135019.2
pg. 20

Breakeven sales
BREAK EVEN ANALSYS
Average per unit revenue 2.5
Average perunit profit 0.15
Average Variable cost per unit 1.06
Average Fixed cost per month 29000
Fixed cost 3481665
Gross profitperunit 1.33
Monthly unitsforbreakeven 218149.4361
pg. 21
3481663.9
2617793.2Breakeven units

HUMAN RESOURCE
ORGANIZATION STRUCTURE
Panel of directors
Purchase
&Pr tion
General Manager
Admnistration
Production
Manager(2)
oduc
Departmen
t
Purchase
manager
Sales/Marke
ting
Manager
Department
HR
Manager
Finance
Manager
Production
supervisor
(4)
purchase
incharge
Team
Leaders
HR
executiv
e
Clerk
Emplo
yees
RM/fini
shed
product
collecto
rs
Packin
g
inchar
ge
store/inven
tory keeper
Raddiwal
as/raw
material
collectors
Actual
Team
client
services
team
Other staff
( cleaners,
security,
etc...)
PERSONNEL PLANNING
Total number of employees
 General manager – 1
 Production manager –2
 Purchase manager –1
 Production supervisor –4
 Purchase incharge – 1
 Stores/inventory keeper – 1
 Raw material/finished product collectors –4
 Packing incharge – 4
 Raddiwalas –6
pg. 22

 Employees
 Paper bags manufacturing – 11
 Cloth Bag manufacturing – 9
 Sales/Marketing Manager – 1
 Team Leader – 2
 Sales team – 6
 Client services team – 6
 Human Resource Manager – 1
 Human Resource Executive – 1
 Finance Manager –1
 Clerk – 2
TOTAL NUMBER OF EMPLOYEES ON PAYROLL: 64
 The security and maintenance will be outsourced to reputed agencies that will provide us
with the required number of security personnel as well as the required amount workers
to help maintain basic cleanliness.
 Also the training and development department will be outsourced as we require training
onlyduring the initial stage of set up.
Type of workers
 We have a mixture of skilled, unskilled as well as professional employees that help make
our organisation a success.
 The employees making the handbags are mostly skilled workers got from various self-
help groups.
 The raddiwalas, packing incharge and the raw material collectors are mostly unskilled
labour who have the basic knowledge of reading and writing.
 All the other workers are professionals that have the required skills and qualificat ions
that make them suitable for the job.
pg. 23

Recruitment process
 Recruitment duties will be handled by the HR department who will keep track on any
available vacancies, promotions, and other needs.
 The recruitment process willbe different at every level of management.
 The general manager will be chosen by the panel of directors through referrals, head hunting,
database of consultancies mainly based on the expertise, understanding of the sector and
business as well as ability to handle the business in the most convenient manner. The HR
department willhave nothing to do with that whatsoever.
 The managers will be chosen by the General Manager with help from the HRdepartment.
 The various mediums that will be used for recruiting managers will be referrals,
newspaper advertisement, online job search engines (naukri.com, monster.com, etc…)
and recruitment consultancies sending in candidates that fitthe criteria ofselection.
 At later stages the manager‟s post can be filled internally through promotions of the
junior employees.
 The other employees other than the SHG employees will be hired solely by the HR
department through walk in interviews, newspaper advertisements, job search engines
(naukri.com, monster.com, etc…), and recruitment consultancies.
 The managers of every department willscreen the employees and finally select.
 The employees will be selected through interviews conducted by the HR executive who
will conduct the initial interview and filter out the suitable candidates who will later be
interviewed by the department manager and the HR manager before the final selection.
At the set up stage the HR department will be outsourced to hire the first batch of employees.
They will also be responsible for forming a permanent HR department for the company the
willhandle all the above duties later.
Training required
 The employees will be provided all the required training to maintain our quality levels
and aid customer satisfaction.
 Every employee from a particular department willbe trained according to the needs and
demands of hisjob description.
 The mainmode of training willbe on the job and simulation training.
pg. 24

 The employees that make the handbags will be trained to use the machines without wear
and tear as well as how to maintain the machines.
 The sales/marketing team and the client services team will be given additional training
insoft skills as they are the first point of contact with our clients.
 Every new employee that joins our company willbe under training for 1 month under the
supervisor and the training team so as to minimise any losses due to errors.
 The supervisors willbe trained to use the machines, clear any queries as well as train
any employee as and when need arises.
 The production manager willalso be trained how to use the machines as it is very
important that he knows thesame.
pg. 25

REFERENCE
BOOKS
1. Aaker, D. A. & McLoughlin, D. (2010), Strategic Market Management: Global
Perspectives, UK: John Wiley&Sons
2. Dahlen, M., Lange, F. & Smith, T. (2010), Marketing Communications: A Brand
Narrative Approach, UK: John Wiley&Sons
3. Fifield, P. (1998), Marketing Strategy, UK: Butterworth-Heinemann
4. Lamb, C., Hair, J. & McDaniel, C. (2011), Essentials of Marketing 11th Edition, USA:
South-Western Cengage Learning
5. Kotler, P. & Keller, K. (2012), Marketing Management 14th Edition, USA: Pearson
Education
6. Beebe, S., Mottet, T., & Roach, K. (2003), Training and Development: Enhancing
CommunicationandLeadershipSkills, Pearson
7. Bell, R. (2012), Coaching, Training & Developing The Retail Manager, CreateSpace
IndependentPublisher
8. Bersin, J. (2008), The Training Measurement Book: Best Practices, Proven Methodologies, and
Practical Approaches(EssentialKnowledge Resource),JonWiley &Sons
WEBSITES
1. www.entrepreneur.com
2. ForEntrepreneurs.com
3. OneVest.com
4. Quora.com
5. Reddit: startups
6. Wekipedia.com
pg. 26

Pacbag business plan full-niloy_saha

More Related Content

What's hot (20)

Similar to Pacbag business plan full-niloy_saha (20)

More from Niloy Saha (20)

Recently uploaded (20)

Pacbag business plan full-niloy_saha