It is a startup idea which may help u for your business. The presentation is all about paper and cloth bag production. The slides will tell you how much one should invest, how much human resource you need, which is the best suitable place for your business, what funds government will provide you,etc

1. GROUP - B
PAPERANDCLOTH(PAC)
BAGSPVT.LTD.
BUSINESS PLAN
GROUP-B

2. GROUP - B
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 Uttar Pradesh, 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.
EXECUTIVE SUMMARY

3. GROUP - BCOMPANY OVERVIEW
Introduction
“PAC Bags” – Paper and Cloth Bags Pvt Ltd Will engage in production and selling of
customized cloth and paper bags. PAC bags is also an advertising media platform, which Provides Media
solutions to the brands. In Parallel, it helps to reduce the consumption of the very harmful poly Bags. The
basic function will include giving of clients the type of bag they want may it be in shape, size, colour 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.

4. GROUP - B
MISSION
Replace conventional non eco-friendly
products with economically viable eco-
friendly products. We are starting by
replacing plastic bags with Paper bags &
Cloth bags. As a side effect we also
provide advertisements having a lasting,
deeper and wider impression. The last
interaction of a vendor with their customer
is the packaging. Providing a recycled,
eco- friendly packaging which is reused
leaves them feeling really good.
“Imposing ban on plastic is not impossible; let’s do
It before time runs out”We want to make cities of India free from
plastic carry bags. We envision a future of
India greener than today, we want to create a
greener tomorrow. We all know there is
something wrong with our current system and
we are not doing enough to keep our
environment livable. It is getting worst every
day and every now and then we hear people
saying its impossible to reverse this effect
and we are moving towards a catastrophe. We
at PAC believe that it’s possible to reverse
this effect. PAC wants to see a tomorrow,
greener than today.
VISION

5. GROUP - BPRODUCT DESCRIPTION
DESCRIPTION OF PRODUCT:- (a) Paper Bags
Newspaper Bags Craft Paper Bags
To Make paper bags Newspapers will be procured from the local
Raddiwala in bulk and process it convert it into a carry bag. We also will be
offering a customized paper bag option where as 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.

6. GROUP - B
(b) Cloth Bags
Normal cloth bags Quality cloth bags
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.

7. GROUP - B
INDUSTRIAL& MARKETPLACE
ANALYSIS
INDUSTRY ANALSYS
Due to legislation of ban on plastic bags in various states particularly U.P, 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. One of reasons for this huge demand-supply gap is lack of any big player
in manufacturing of cloth bags.

8. GROUP - B
MARKET PLACE ANALSYS
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 Rs. 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.
CUSTOMER ANALSYS
We would offer our products to the commercial users i.e. B2B
 Retail outlets like Bata, Westside, Monginis etc.
 Supermarkets and general stores.
 Pharmacies
COMPETITORS ANALSYS
1. Existing small local suppliers of paper bags and cloth bags artisans
2. existing plastic bag manufacturers etc.
3. NGOs who do the manufacturing of paper bags.
People get Poly
bags at the at
the retail brands,
They don’t buy
it.
Shopping bags
are the retail
brand identity.
Due to the
government
policies and
social
responsibilities,

9. GROUP - B
- Eco friendly , re-usable and can be
easily disposed off.
- Promotion tool for both the PAC
bag as well as the client.
- Better and tough product compared
to other small scale suppliers
- Not well know , since PAC Bag is a
new company.
SWOT ANALYSIS
- Plastic ban has resulted in an
opportunity for a substitute for
customers, which
is a eco friendly product and would
hold the weight of items.
- Promotional tool for client , so this
will increase PAC Bag’s sales.
-Potential entrants in the market
with same products.
- Existing small scale producers like
small artisans or housewife.
- Existing Plastic bag producers

10. GROUP - B
TARGET MARKET STRATEGY
Location – Uttar Pradesh
Reason to select UP , 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 like jewellery showrooms, mobile shop owners, General provisional
stores, grocery stores , etc
Target Consumers – People who shop from these Retailers.
Satisfying Need -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.
MARKETING STRATEGY
PRICING STRATEGY
We will go for Target Costing as we will be competing against the small scale
producers , which are not well established and we are going for large scale
production. Prices will vary according the size of the carry bag demanded by the customers
and according to the printing cost and all raw material .

11. GROUP - B
ADVERTISING AND SALES PROMOTION
Advertising– In the initial stage we will be using print media like newspaper, B- magazine, posters, Web
page and emails.
Personal Selling– Sales team will be engaged in promoting the product and the value we give and getting
the orders.
Public – 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
Personal Selling – we are going for personal selling as it’s a new start up. Personnel selling will be looked
upon by Internal Sales people.
SALES FORECASTS (Figures in units)
Year Ist Year IInd Year Ist Year IInd Year
Paper Bags 2000000 2100000 1200000 1260000
Clothes Bags 1300000 1365000 900000 945000
Best Guess Worst
Cases

12. GROUP - B
Hands Up
If you’d like to see your
brand on a bag. Contact Us!
Design
Send us your logo and work with
us to create your eco-friendly
messaging to share with the world.
Produce
We’ll manufacture beautiful,
strong, paper & cloth bags
Distribute
We will share the plastic free
love with your retail community
Community Engagement
Inspire consumers through
marketing and
social media to take action by
supporting this project
OPERATIONS

13. GROUP - B
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 Machines Rate
(₹)
Amount
(₹)
2 Paper sheering machines 10000 20000
1 Eyelet punching machine 15000
1 Paper creasing machine 10000
1 Hard press 10000
5 Glue making & applying tools 1000 5000
12 Furniture (chairs and tables) 50000
Fixtures 10000
Total 120000
Nos. Name of Machines Rate
(₹)
Amount
(₹)
3 Cutting Machine 20000 60000
6 Stitching Machine 30000 180000
1 Attachment Machine 40000
12 Furniture(Chairs & Tables) 50000
Fixtures 10000
Total 340000
Production Capacity of Cloth Carry Bags
By utilizing an average of 200 meters2 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 15000 bags can be produced in a month.
Total cost of the department

14. GROUP - B
Location & Facility
The production unit will be located in Trans Ganga City, Unnao.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 Rs. 5000
which will be refunded if we stop the unit.The lease amount has to be paid in 7 installments. . The full construction will
cost around Rs. 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 Rs. 350000. The roof will be slanting. The building will also have other rooms like for the workers
separate for men and women, toilets and place to store water. All this is required to be kept at minimum area according to
the rules of the Industrial estates.
We will be requiring power and water which will be provided to us by IDC.
Top floor 1st floor Ground floor
Administrative
Department Paper bags
Production Department
Cloth Bags Cloth BagsPaper Bags
Storage Area
Raw Material
Finished Goods

15. GROUP - B
Quantity Name of equipment Rate (₹) Amount (₹)
3 Cutting machines 20000 60000
6 Stitching machine 30000 90000
1 Attachment machine 40000
12 Furniture (chairs and tables) 50000
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
12 Furniture (chairs and tables) 50000
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 Fees and legal 130665
FINANCE
Funding
Investment breakup from various sources
 30% form proprietors
 50% from government, Bank and IDC
 20% unsecured from friends and family

16. GROUP - B
Elements of Revenue & Expenditures 2017 2018
Sales:-
Cash Sales Paper Bags(@ ₹ 2/Bag)
4000000 4200000
Cloth Bags(@ ₹ 3/Bag 3900000 4095000
Net Sales 7900000 8295000
Less Cost of Sales
Raw Material 3000000 3100000
Carriage Inward 500000 600000
Gross Profit 4400000 4535000
Less: Operating Expenses
Salaries & Other Benefits 1500000 1600000
Administrative Expenses 50000 70000
Telephone & Internet 500000 50000
Electricity & Water 500000 550000
Insurance Premium 100000 10000
Legal & Auditing Expenses 5000 6000
Marketing Expenses 500000 550000
Startup Fees 130665 -
Depreciation 381000 340200
Elements of Revenue & Expenditures 2017 2018
Rent(Lease Payment) 3500000 3500000
Maintenance 50000 57000
Outward 300000 350000
Miscellaneous Expenses 9000 16000
3835665 3949200
Operating Profit 564335 645800
Less Interest Charges
Interest on Loan (loan from IDC @ 14%) 280000 280000
Profit Before Tax 284335 365800
Less: Provision for Tax 197246 124342
Net Profit(After interest & Tax) 87089 241428
PROFIT & LOSS STATEMENT

17. GROUP - BHUMAN RESOURCE
Panel of Directors
General Manager
Purchase &
Production department
Administration
department
Production
Manager
Purchase Manager
Production
Supervisor
Purchase Incharge
Store keeper
Raw Material
Collector
Finished
Good
Collector
Packing
Incharge
Employees
Other Staff
Organizational
Chart
Actual
Team
Client Service
Team
Sales/Marketing
Manager
Team Leader
HR
Manager
Finance
Manager
ClerkHR
Executive

18. GROUP - B
PERSONNELPLANNING
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
 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
Type of workers
 We have a mixture of skilled, unskilled
as well as professional employees that
help make our organization 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
qualification ions that make them
suitable for the job.

19. GROUP - BTHE TEAM
Co-Founder
XYZ
Co-Founder
PQR
Co-Founder
ABC
Co-Founder
JKL

20. GROUP - B