Plastic Bottle (PET) Recycling Business Plan
Plastic is the basic need of our day to day life. During recent years the plastic industry has grown with a substantial growth rate.
This growth is driven by three sectors viz packaging, infrastructure and agriculture. There are the various varieties of plastics out of which PVC (Polyvinyl chloride) and PET (Polyethyleneterephthylene) plastics have their considerable contribution. PET plastics are generally used in the manufacturing of beverage bottles for the packaging and PVC plastic is used in the production of household plastic materials.
The growing utilization of plastics in industrial and consumer applications and surrounding solid waste recycling, has led to an increased demand for recycled plastic resin sand products.
Table of content
Executive Summary 4
Business Description 7
Products and Services 8
Market Analysis 9
Competitor Analysis 11
Sales and Marketing Plan 13
Operational Plan 17
Management Plan 21
Financial Plan and Projections 22
PATILAD plastics provide a wide range of plastic solutions for household and raw material for packaging of various companies. As a part of our on-going efforts to exploit this opportunity, we will recycle the plastics and then produce kitchenware items and other related plastic material. We will also sell the recycled plastics to the companies in the plastic business. We will have a recycling plant along with the production unit. The raw material will be procured from the waste collectors. The raw material will be post consumed beverage bottles and other soft plastic materials. Our main focus is our industrial customer whom we will sell PET bottles and PET flakes. It will contribute more than 60% of our sales. We will also focus on the household plastic business which is the part of our portfolio.
The initial set up cost will be N10,000,000. PATILAD plastics will be a solution proprietorship business run by the promoter Adetiloye Dayo who is an MBA graduate with finance and marketing as specialization. Since plastic material does not carry any brand name so it will give us an additional benefit in the long term to establish our brand name. To exploit the market we will use penetration pricing as our marketing strategy and utilize our stringent distribution network and strong industrial relationship. As a future plan in the coming years, we will increase the variety of plastics like LDPE(Low-density polyethene) and HDPE (High-density polyethene). By doing this we will be able to produce plastic carry bags and raw material for production for plastic chairs and tables and other fibre-based products.
Products and Services
PATILAD Plastics provide a wide range of plastic solutions for households and raw material for packaging to the various companies. Kara Lagos State is the place where the facility will be established and other operation will commence. We will collect the plastic garbage like consumer beverage bottles, plastic bags from various garbage stores and then our recycle unit will process it which eventually be used for the production of finished goods. The plastic garbage we are getting as a raw material has two components one is PVC (Polyvinyl chloride) and other is PET (Polyethylene terephthalate). Firstly, the whole garbage is melted and then PVC and PET are separated from each other by froth floatation technique.
We have a two-phase project:
- The first phase collection, cleaning and crushing and pelleting phase,
- While the second phase will be to produce two types of replay plastics PVC (Polyvinyl chloride) and PET (Polyethylene terephthalate). We will create a plant (actual facilities to be shared with the recycling unit) to manufacture extruded plastic flakes (purified plastic). The extruded plastic is then moulded in the various products.
Current Product & Service Offering
- Collect waste plastics from the public via scavengers
- Treat & Recycle waste plastics
- Utilize the treated recycled wastes in production as well as
- Bag and Sell off the recycled plastics granules to other plastic production plants
We have a vast market to supply, and currently, we have made an agreement with five bottling companies in Lagos and Ogun who are demanding more than a tonne of plastic pellets from us per day. We also have local electronics assembly companies who have demanded for a 500kg worth of our products per month.
PATILAD PLASTICS seeks N10 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital.
Funding for the launch of the business is provided primarily by equity from the partners and investors.