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Paper Recycling business plan

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The green movement is on.

People are increasingly becoming aware of the need to protect the environment and conserve our mineral / natural resources. More than ever before the need to preserve the fast depleting forest reserve and to prevent adverse environmental disasters such as wind storm, erosion, etc. has led to the increasing demand for manufacturers to seek alternative to tree falling as source of pulp for paper manufacture.

Also based on industry standard, it cost far less in terms of wood, water, energy, man-time, etc. to recycle than to produce papers from wood. More over the tree species most suitable for paper making is not indigenous to the tropical environment hence manufactures have to depend solely on export to acquire this important raw material. The current economic situation of the country where foreign exchanges are at their all-time high, scarce and unavailable is also a good indication that it is high time we use what we have to produce what we want.

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Table of content                                                                               Page 

Executive Summary                                                                                   3

Business Description                                                                                 4

Products and services                                                                                6

Market Analysis                                                                                          7

Competitor Analysis                                                                                   8

Sales and Marketing Plan                                                                          9

Operational Plan                                                                                          12

Management plan                                                                                        13

Financial Plan and Projections                                                                 14

 

 

Executive Summary

Overview

In 1996 it was estimated that 95% of business information is still stored on paper. An estimated 115 billion sheets of paper are used annually for personal computers. The average web user prints 16 pages daily. Of all these used, only a meager 10% is recycled hence the birth of Peecyclers. Peecyclers is a standardized Paper Recycling Firm that is involved in collection, recycling and distribution of paper waste.  Peecyclers is tentatively located at 35 Ogudu Road, Off Ojota, Lagos.

 

The Company

Peecyclers is established as a limited liability company owned by Igbokwe Ifeanyichukwu, Desmond Elliot and Nathaniel Bassey. The Paper Recycling is managed and overseen by Igbokwe Ifeanyichukwu, a first class industrialist of over twenty years whose expertise has been procured by top-notch Paper manufacturers in Nigeria including Onward Paper Mill Plc, but has now now decided to work for himself.

 

Products and Services

Peecyclers products and services includes

  1. Recycled paper.
  2. Paper pulp.
  • Scrap paper.

 

The Market

Nigeria, no doubt, is both Africa’s most populated country and its largest economy but also its most important consumer of paper products. The size of the paper manufacturing industry in Nigeria according to the Raw Materials Research and Development Council (RMRDC) is valued at more than 500 billion Naira with an estimated annual growth of 10%.

Apart from the ‘comatose’ recently privatised Nigeria Paper Mill (NPM), Nigerian Newsprint Manufacturing Company (NNMC) and Nigerian National Paper Manufacturing Company (NNPMC), only very few paper manufacturing firm exist. Worth still, there is seemingly little or no company into paper recycling and this is in a country where more than 150tonnes of paper are consumed annually. The majority of used papers are either burned or stock up in open waste heap.

Also, as per capita income grows and society demand higher rates of literacy, the demand for paper will grow. Hence starting or investing in a paper recycling firm will prove to be a worthy investment opportunity that if rightly harnessed can produce enormous wealth.

Competition

Our competitors includes;

  1. Ecofuture Nigeria
  2. Envirocycles Limited

Our competitive advantage lies in our ability to source for used papers, the low-cost of production and efficient production system.

Financial Considerations

Peecyclers seeks N5 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.

Our market survey and research shows that Peecyclers holds the promise of reaching positive cash flow in its 7th month of operation. The advantage of this, is the provision it makes for accelerated repayment of its loan obligations, as well as for dividends to be paid to the owners.

Revenue is expected to amount to N12,984,326 and profit N3,592,736 in our first year of operation.

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