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2016
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SOUTHEAST UNIVERSITY
AssignmentOn
“Business Plan”
Course Title: EntrepreneurshipCourse Code: MGT 3135
Submitted to:Ms. Sabreya Khanom Zuma
LectureSchool of Business Studies
Southeast University
Prepared by:
Name ID Contribution
Md. Jahid Hossain Zilan 2013010000257 1-11
Happy Akter 2014210000204 11-15
Md. Asad Rubel 2013210000170 16-20
Sumi Saha 2014010000135 21-24
24-29
Date of submission: December 17, 2016.
[2016]
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Letter of Transmittal
11 April, 2016
To,
Ms. Sabreya Khanom Zuma
Lecturer
School of Business Studies
Southeast University
Subject: Submission of term paper on “Business Plan”.
Dear Mam,
Here you have asked us to prepare a report on “Business Plan”. It is our great concession
to submit the report. We have applied our knowledge and analysis of various rules and
theories of ethical decision making in this paper. We tried our best to make this as
reflective as possible. We sincerely hope this paper will fulfill all the requirements
suggested by you. We appreciate to provide any information or classification if
necessary.
We, therefore, request your favor to accept our term paper.
Sincerely Yours,
Md. Zahid Hossain Zilan
2013010000257
On behalf of the Group
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Table of Contents
Letter of Transmittal............................................................................................................2ASM Papers Ltd..................................................................................................................4
DESCRIPTION THE VENTURES.............................................................................11Mission......................................................................................................................11Vision.........................................................................................................................11Goals..........................................................................................................................11Target Customers.......................................................................................................12Products:....................................................................................................................12Description of company’s operation:.........................................................................15Technology utilization:..............................................................................................15Pricing:.......................................................................................................................16Distribution:...............................................................................................................16Form of Ownership:...................................................................................................20Income Statement:.....................................................................................................21Cash flow projection:.................................................................................................22Balance Sheet:...........................................................................................................24Sources & Application of Fund:................................................................................25
Reference...........................................................................................................................29
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Company Name & Logo Company Address & Contact
Head Office:House# 47, Flat-D2Road -20/C, Nikunjo-2Dhaka-1212 BangladeshPhone: +880-2-9895209Email: [email protected]: www.zaspapers.com
ZAS Papers Ltd.
About Us:ZAS Paper Mills Limited is a pioneer among the private sector paper producers in the
country. The enterprise, since its inception in 2016, is helping the nation by recycling
paper products and saving huge amount of hard-earned foreign exchange by cutting
dependence on imported paper products.
Land: We selected our plant location at Paiyapara, Barura in Comilla. Our purchase or own
land are 3 bighas which price is total Tk.4500000. In this land project bank will
participate 50%, and we contribute 50% amount. Our lease land are 2 bigha that first
installment Tk.100000.
Building: Taka 7, 00,000 are allocated for establishing building. In this project bank will be
participate 70% of Tk.7000000 which is Tk.490000. We participate 30% which is
Tk.210000.
Imported machinery:
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For producing reusable paper product, we will import some machineries and equipments
from china. We will import paper bag manufacturing machine from China that price $
9000 per incubator and Tk.1530000. All cost adds with imported machinery such as
import duty, installation & then total imported machinery price Tk.1742860. In this
imported machinery bank will participate 75% of the imported machinery that
Tk.1307145. We participate 25% that Tk.435715.
Local Machinery:Our Local machineries amount will be Tk.100000.
Vehicle:
We will be purchase 3 pickup which is Tk.800000 per pickup and total amount
Tk.2400000.
Furniture:
Our project total furniture making amount will be Tk.100000
Office Equipment & Decoration:Our project total Office equipment & Decoration amount Tk.100000.
Others Cost:
Some others cost will be included such as utility connection cost, pre-operating cost, fire
fighting & safety Instruments, consultancy Fees total amount Tk. 134139.
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EXECUTIVE SUMMARY
Our Business plan is to convert used paper to the new, re-useable paper & other paper
products. The process is known as Paper Recycling. Our business will help the paper
industry to fulfill the rapidly increasing demand of paper products. Due to the inability
for paper industry to meet the demand of paper, country needs to import paper from
abroad. Due to this demand-supply gap, prices of paper products are increasing day by
day. Our business plan will not only decrease the import bill of the country but also will
decrease the price of paper products which will increase the purchasing power of the
individuals and hence it will increase their welfare.
There are two possible reasons for which people would love to buy recycled paper
products.
1. In an era of high rate of inflation, this low priced range of products will attract people
to purchase.
2. Recycled paper products are friendly to environment. Most of the people don’t know
about the concept of recycling. If awareness is created amongst the individuals, this will
lead to increase in recycled product’s demand.
Since this production process requires used paper, less energy, less water and other raw
materials, it is a cost effective process. In this way it has advantage over other products in
the market. Another aspect of advantage is that of environment friendliness. This product
will not only compete with the existing paper maker firms but also it will compete with
the other closely related industries, such as polythene bag manufacturers. We all know
that polythene bags are in one way or the other hazardous to the environment. This
weakness of polythene bags becomes our strength and hence gives us competitive
advantage over them.
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In initial stage we’ll establish a paper processing plant & will try to capture the market by
different means of marketing (Electronic, Print, and TV etc). When our product captures
target proportion of market, we’ll then plan for the extension of the firm, either by
expanding the plant size in the same area or installation of new plant on new piece of
land.
Despite minor fluctuations in the consumption of paper over the years, it is showing an
increasing trend. From the data of 50 Years, we can predict that in future this demand
will be increasing; as a result production capacities will be needed to be increased to meet
the world demand.
Bangladeshi Paper market is large and growing but the pace of growth is declining
because of increase in cost of production due to rapid increase in Fuel and Energy prices.
Despite of the constraints, the market will grow because of the increase in demand of
paper products forthcoming years. Per capita paper consumption is showing increasing
trend over the years. In the period 2001-02, the consumption took huge jump showing the
increase in need of paper in daily life. Bangladesh’s share in World consumption,
although very minute, is increasing over time. From almost 0 percent in 1961, this share
increased to 0.02% in 2010. The information stated above shows that there is huge
potential in Paper Market as the per capita consumption is increasing over the years.
Paper Recycling has five main categories and 67 sub-categories. The details of the
processing stages will vary according to whether pulp substitute grades, newsprint or
packaging grades are treated. After an initial soaking, the recovered paper is pulped to
separate the fibers, screened to remove the non-paper components and paper and board
detrimental to production, de-inked, thickened and washed. During these refining
processes both unusable materials and some fibers are removed from the system; such
losses have been estimated at 15% for newsprint reprocessing. Therefore, the input of one
tone of recovered paper will result on average in the production of approximately 850 kg
of recycled paper. The yield does depend on the paper and board being produced – in
packaging grades yields are high, in newspaper production 15-20%, and in graphic papers
some 35%. Losses tend to increase with increased recovered paper content in paper
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destined for recycling. Unlike metals and glass, paper cannot be perpetually recycled, as
the fibers break in the pulping process. It is estimated that paper can be reprocessed four
times so virgin fiber will always be needed.
Initial capital requirement for manual processing will be around Tk. 1 Billion and for
automatic processing will be around Rs. 1.6 Billion.
Details of revenue and expenditures are given in main sections.
Some Environmental Benefits
1) Recycling can reduce water use in paper production by nearly 60% and energy
consumption by 40%
2) Air pollution can be decreased by 74% and water pollution by 35% (these figures
depend on factors such as transport distances and de-inking methods used)
3) Disposal problems are reduced by using waste paper to produce new paper. For every
ton of paper used for recycling, the savings are:
• At least 30000 liters of water
• 3000-4000 KWh electricity (enough for an average 3-bedroom house for a year.
• 95% of air pollution
4) Recycling half the world’s paper would free 20 million acres of forest land.
5) Recycling one stack of newspapers about six feet tall saves the life of one tree 35 feet
tall. Recycling approximately one ton saves 17 trees.
Some Social and Economic Benefits
1) Recycling will help local industries grow and will also bring in more employment.
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2) There is 28 – 70 percent less energy consumption in producing recycled paper
compared to virgin paper. Every ton of recycled paper saves approximately four barrels
of oil, 4200 kilowatt hours of energy and enough energy to heat and air condition the
average North American home for almost six months.
3) There is also less water usage. This is because most of the energy used in papermaking
is required for the pulping needed to turn wood into paper.
4) Using recycled paper reduces the need for primary raw materials.
Inflation rate is another crucial factor that could affect the buying power of the
customers. At the same time, it influences rise in production costs that lifts the price
upwards.
Government regulation Government initiatives can boost up the demand in a substantial
way. For example ban of polyethene had increased the jute product. If government
emphasizes on green packaging it will ensure an overwhelming growth of the industry.
Legal Issues
Any business firm or manufacturer in Bangladesh or any other nation in the world has to
comply with specific legal issues that are particular to that country, and also comply with
legal issues that are international requirements in the growing age of globalization. Here
we outline all the important legal issues we have deal with once we start our business.
INDUSTRY ANALYSIS
Future outlook & trends:
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Bangladeshi paper market is large and growing but the pace of growth is declining
because of increase in cost of production due to rapid increase in Fuel and Energy prices.
Despite of the constraints, the market will grow because of the increase in demand of
paper products forthcoming years. Per capita paper consumption is showing increasing
trend over the years. In the period 2001-02, the consumption took huge jump showing the
increase in need of paper in daily life. Bangladesh’s share in World consumption,
although very minute, is increasing over time. From almost 0 percent in 1961, this share
increased to 0.02% in 2010.
The information stated above shows that there is huge potential in Paper Market as the
per capita consumption is increasing over the years.
Analysis of competitors:
Our competitors will be the paper manufacturers, bag producers (paper, polythene etc),
paper raw material related industries etc. Our business is not restricted to paper making or
raw material generation; we want to be more diversified in order to be in sustainable
position. In this way, majority of the industries that directly related with paper
manufacturing will be our competitors.
List of competitors:
1.Title Holy Trading Corporation
Address 24/A Bijoynagar (Ground floor)
City Dhaka - 1000 Country Bangladesh
Telephone +880-2-9342458, 8312275
Fax
+880-2-9881963, 8319703
2.Title Reliance CorporationAddress 24, Kamal Ataturk Avenue,
A-R tower (5th floor), Banani
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C/A, City Dhaka - 1213Country BangladeshTelephone +880-2-9887626, 9886084Fax +880-2-8829367
Market Segmentation:
Considering the use of paper products, our target customers could be an individual, a
corporation or government. In addition, existing paper manufacturing companies can also
use our recycled pulp for their paper manufacturing, in this way we can also be the raw
material provider for the industry.
Industry & Market Forecast:
Despite minor fluctuations in the consumption of paper over the years, it is showing an
increasing trend. From the data of 50 Years, we can predict that in future this demand
will be increasing, as a result production capacities will be needed to be increased to meet
the world demand.
DESCRIPTION THE VENTURES
Mission
Our mission is: “Save the environment by saving the trees”
Vision
Our vision is: “To save the environment by reducing deforestation to produce paper
products and also to make the paper-packaging industry self-dependant by eliminating
the need for imported raw materials.”
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Goals
Our primary goals encompasses of these major objectives:
I. Protecting the environment and keeping it green, reducing land-fill needs and carbon
emissions
II. Making the paper industry domestically self-sufficient
III. Making quality paper and paper products for the domestic market and eventually for
the global arena
IV. To maintain healthy relationships with all our value chain members
Target Customers
We would be focusing on two segments of customers:
Business Buyers:
Food shops that need one-time-use food packages (box/glass/plate/serving tray)
Branded apparel or other store that use good-quality paper bags with their own logo. Any
company that is enthusiastic about green marketing or can be drawn to green marketing.
Individual Customers:
Customers with green preference lifestyle, concerned about pollution, aware of
environment and eager to support green movement and who are willing to pay for quality
product over low price.
Products:
We will be selling recycled pulp to the paper manufacturers. And we will also be engaged
in production of paper products like paper bags, tissue papers, gift papers, note books etc.
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Size of Business:
Initially it will be a medium scale paper processing plant. But with the increase of market
share the size of plant will also be expanded.
PRODUCTION PLAN
Manufacturing process & management of residues:
Recovered paper reprocessing varies according to the type of recycled paper product,
which will in turn determine the type of recovered paper that is used as the process
feedstock. The higher quality, which need little cleaning, are used to make printing and
writing papers, tissues and wrapping papers, and are known as pulp substitute grades
since the quality is equal to virgin pulps. Newsprint and other papers needing de-inking
are reprocessed for further use in the production of newspaper and hygiene papers. The
lower qualities are mainly used for the production of packaging papers and board.
Recovered paper is graded into numerous categories.
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Paper Recycling processes include the following main steps:
a. Pulping: Adding water and applying mechanical action to separate fibers from each
other.
b. Screening: Using screens, with either slots or holes, to remove contaminants that are
larger than pulp fibers.
c. Centrifugal cleaning: Spinning the pulp slurry in cleaner cause’s materials that are
denser than pulp fibers to move outward and be rejected.
d. Flotation: Passing air bubbles through the pulp slurry, with a surfactant present,
causes ink particles to collect with the foam on the surface. By removing contaminated
foam, pulp is made brighter. This step is sometimes called deinking.
e. Kneading or dispersion: Mechanical action is applied to fragment contaminant
particles.
f. Washing: Small particles are removed by passing water through the pulp.
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g. Bleaching: If white paper is desired, bleaching uses peroxides or hydrosulfites to
remove color from the pulp.
h. Papermaking: The clean fiber is made into a “new” paper product in the same way
that virgin paper is made.
i. Waste disposal: The unusable material left over, mainly ink, plastics, filler and short
fibers, is called sludge. The sludge is buried in a landfill, burned to create energy at the
paper mill or used as a fertilizer by local farmers.
Management of Residues:
The rejects, effluents and sledges generated by the recycling process include inks
adhesive particles, small plastic particles and wax, paper filler and coating particles and
large solid materials such as grit, and ceramics. Treatment and disposal of these wastes
tend to be more complicated and costly than treatment and disposal of effluents and
sledges from virgin pulp mills, due to the increased variability and contamination of the
raw recovered paper feedstock. This has started to hamper an otherwise positive trend in
paper recycling, due to the fact that the more you recycle, the more residues you produce.
This is because of the increased recovered fiber content in paper and board destined for
recycling.
Physical plant, Machinery & equipment:
The plants will be constructed by GK construction in tk. 50 cr. & contractor will supply
the necessary equipment & machineries of paper plant.
Names of suppliers of raw materials:
1. Collection of waste paper from household waste stream by own employees.
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2. Collection of waste paper from scrape paper dealer of Nimtoli, Dhaka; and from
around the country.
OPERATIONAL PLAN
Description of company’s operation:
Company first collect scrap paper from suppliers & than do necessary processing to make
it paper pulp. After making paper pulp it sale some of its paper pulp to other paper
industries as final product and send the remaining paper pulp to another paper producing
plant of the company in order to produce plain paper & other paper items. These items
reach in the hand of customer through wholesale dealer & retailer.
Technology utilization:
Our paper processing plant would be fully automatic & necessary technologies would be
installed to make our production & administration most cost efficient.
MARKETING PLAN
Pricing:
Normal market price will be charged for paper pulps to paper making industry with some
credit facilities.
Normal market price will be charged for paper products to wholesale dealers with some
extra credit facilities & discount according to purchase quantity.
Distribution:
Considering the use of paper products, our target customers could be an individual, a
corporation or government. In addition, existing paper manufacturing companies can also
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use our recycled pulp for their paper manufacturing, in this way we can also be the raw
material provider for the industry. So we will distribute our pulps by ourselves & paper
products by wholesale & retail seller.
Promotion:
Customers are not waiting for our product to be launched instead we are providing them a substitute to a more expensive product. In order to be successful, we need to introduce ourselves to the market. For this purpose, we will communication through the following ways:
Website:
Ours will have its own website designed with sample paper made products and related prices. All the necessary details required to customize products will be provided. Besides, we will also give pop-up advertisements in famous and regular web pages like, facebook, twitter, yahoo etc.
Newspapers and magazine:
We will give advertisements monthly with its sample products mainly highlighting its environment-friendly features. Newspapers will include the most popular Bangla and English newspapers.
Billboards:
Billboards will be set up in strategically important points emphasizing the features and exclusive environmental attributes of the tree-free products.
Per capita Paper Consumption of the World
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Figure 1 shows the per capita consumption of paper in the world since 1960.
We can clearly see from the figure that despite minor fluctuations in the consumption of
paper over the years, it is showing an increasing trend. From this data of 50 Years, we
can predict that in future this demand will be increasing; as a result production capacities
will be needed to be increased to meet the world demand.
Per-Capita Paper Consumption in Bangladesh
Bangladeshi Paper market is large and growing but the pace of growth is declining
because of increase in cost of production due to rapid increase in Fuel and Energy prices.
Despite of the constraints, the market will grow because of the increase in demand of
paper products forthcoming years.
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It is quite evident from the figure that per capita paper consumption is showing increasing
trend over the years. In the period 2001-02, the consumption took huge jump showing the
increase in need of paper in daily life.
Comparison with World Per-Capita Paper Consumption
Year World Bangladesh Share in World Consumption
1961 9364.94 0.09 0.00%1965 10885.22 1.08 0.01%1970 12935.97 0.69 0.01%1975 12751.44 1.81 0.01%1980 14694.99 1.99 0.01%1985 15416.3 2.63 0.02%1990 17288.43 3.6 0.02%1995 20688.13 5.03 0.02%2000 23181.33 5.31 0.02%2005 23293.55 5.6 0.02%2010 23493.59 5.9 0.02%
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Table 1 shows that trend of per capita consumption in both Bangladesh and World are
increasing over time. Bangladesh’s share in World consumption, although very minute, is
increasing over time. From almost 0 percent in 1961, this share increased to 0.02% in
2010.
The information stated above shows that there is huge potential in Paper Market as the
per capita consumption is increasing over the years.
Expected Market Share:
In initial stages we are not expecting to capture huge market share because of the
limitation of the resources employed. However, we can say that in 5 years time, we can
cover up to 10% of the market share and the paper recycling industry can cover 40-45%
of market share on aggregate.
Market share can be increased by means of marketing and creating awareness amongst
individuals. Low priced and moderate quality recycled goods will be popular in small
industries and households.
ORGANIZATIONAL PLAN
Form of Ownership:
The business will be operated as a private limited company under the business name of
ZAS Paper Recycling Plant for All. The business will include Md.Zahid Hossain Zilan,
Md. Asad Rubel, Sumi Saha, Md. Selim Khan and Md. Milon Jomadder as partners each
owning 20% shares of the business.
Authority of principals:
Md.Heemel Mondol will be Managing Director &
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Md. Shamsul Alam will hold the position of Human resource manager.
Management team members’ roles & responsibilities with background:
Name Role & ExperienceMd. Ali Mostofa Accountant Md. Milon Jomadder Finance Manager Md. Selim Khan Production & Marketing Manager
ASSESSMENT OF RISK
Evaluate strength and weakness of business:
SWOT Analysis
Strengths Weaknesses1. Low price
2. Environment Friendly
3. Low resource consumption
4. Less garbage in the society
1. Low availability of Machineries
2. Lack of Human expertise in recycling industry
3. People may not accept this product if we do not rightly market it
4. Lack of markets for collected materials
5. Lack of funding for recycling
6. Poor participation by residents in
materials collection
Opportunities Threats1. Employment Opportunities
2. Demand Supply Gap, creates a room for
our business
3. Purchasing power of the people will be
increased so that they will favour our products.
1. Firms may react on this establishment and
may negatively affect our profitability and
sustainability.
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FINANCIAL PLAN
Income Statement:
Our product will be in two different broad categories.
1. Raw Material (Pulp) Generation.
2. Final Paper product manufacturing.
We will be selling recycled pulp to the paper manufacturers; this will be the first source of revenue for us. If we can successfully convince them to purchase our pulp, then this source of revenue can get big.
Secondly, we will also be engaged in production of paper products like paper bags, tissue papers, gift papers, note books etc, this will also be the source of revenue for us.
Income Statement of first three years
Particulars YEAR 1 YEAR 2 YEAR 3Sales
Less: Cost of Goods Sold
16050000020000000
17060000023000000
17570000024000000
Gross ProfitGross Profit percentage
14050000087.54%
14760000086.52%
15170000086.34%
Less: Operating Costs
Sales & Marketing exp.
Administrative exp.
Depreciation exp.
Maintenance exp.
Utilities exp.
2000000
5000000
14500000
500000
100000
1500000
5000000
14500000
550000
100000
1000000
6000000
14500000
600000
120000
Total Operating Cost 22100000 21650000 22220000Profit before Interest & Tax 118400000 125950000 129480000
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Less Interest expense
35000000 35000000 35000000
Profit before Tax 83400000 90950000 94480000Less Tax 0 0 0Net Profit (After Tax)Net Profit percentage
8340000051.96%
9095000053.31%
9448000053.77%
Cash flow projection:
Cash Flow Statement of first three years
Particulars YEAR 1 YEAR 2 YEAR 3Cash Received:Cash Received from Operations: Cash Sales Cash from receivables
60000000100000000
8000000090000000
9000000085000000
Subtotal Cash from Operations 160000000 170000000 175000000Additional Cash Received: New long term liability New investment received
700000000800000000
00
00
Subtotal Additional Cash received 1500000000 Total Cash Received 1660000000 170000000 175000000Cash disbursement:Cash Spending for Operations: Cash Spending Payment of Accounts Payable
760000020000000
715000023000000
772000024000000
Subtotal Cash spending for operations 27600000 30150000 31720000Additional Cash Spent: Purchase of land
Purchase of building
Purchase of machinery
600000000
200000000
300000000
35000000 35000000
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Purchase of other fixed assets
Interest payment
100000000
35000000Subtotal Additional Cash Spent 1235000000 35000000 35000000Total Cash Spent 1262600000 65150000 66720000Net Cash Flow 397400000 104850000 108280000
Balance Sheet:
Balance Sheet of first year
Particulars Amount (taka)Assets: Current Assets:
Cash
Bank
Account Receivables
7400000
390000000
500000Total Current Assets 397900000Fixed Assets (land, building, machinery & Other fixed Assets)Less : Accumulated depreciation
120000000014500000
Total Fixed Assets 1185500000Total Assets 1583400000 Liabilities & Capital:Current Liabilities 0Long term liabilities 700000000Total liabilities 700000000Paid-up Capital 800000000Retained Earnings 83400000Total Capital 883400000 Total Liabilities & Capital 1583400000
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Sources & Application of Fund:
Sources & Applications of Funds, End of first year
SOCIAL & ECONOMIC BENEFITS & ENVIRONMENTAL ASSESSMENT
Industrialized paper making has an effect on the environment both upstream (where raw
materials are acquired and processed) and downstream (waste-disposal impacts).
Recycling paper reduces this impact.
Particulars Amount(Tk.) Amount(Tk.)Sources of funds: Long term loan
Personal funds
Net income from operations
Add depreciation
700000000
800000000
83400000
14500000
Total funds provided 1597900000 Application of funds: Purchase of land
Purchase of building
Purchase of machinery
Purchase of other fixed assets
Interest payment
600000000
200000000
300000000
100000000
35000000
Total funds expended 1235000000Net increase in working capital 362900000 1597900000
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Today, 90% of paper pulp is made of wood. Paper production accounts for about 35% of
felled trees, and represents 1.2% of the world’s total economic output. Recycling of
newsprint saves about 1 ton of wood while recycling 1 tone of printing or copier paper
saves slightly more than 2 tons of wood. This is because Kraft pulping requires twice as
much wood since it removes lignin to produce higher quality fibers than mechanical
pulping processes. Relating tons of paper recycled to the number of trees not cut is
meaningless, since tree size varies tremendously and is the major factor in how much
paper can be made from how many trees. Trees raised specifically for pulp production
account for 16% of world pulp production, old growth forests 9% and second- and third-
and more generation forests account for the balance. Most pulp mill operators practice
reforestation to ensure a continuing supply of trees. The Forest Stewardship Council
(FSC) certifies paper made from trees harvested according to guidelines meant to ensure
good forestry practices. It has been estimated that recycling half the world’s paper would
avoid the harvesting of 20 million acres (80,000 km²) of forestland.
Energy
Energy consumption is reduced by recycling, although there is some debate concerning
the actual energy savings realized. The EIA claims a 40% reduction in energy when
paper is recycled versus paper made with un-recycled pulp. Some calculations show that
recycling one ton of newspaper saves about 4,000 KWh of electricity. This is enough
electricity to power a 3- bedroom European house for an entire year. Recycling paper to
make pulp may actually consume more fossil fuels than making new pulp via the Kraft
process, however, since these mills generate all of their energy from burning waste wood
and byproduct lignite. Pulp mills producing new mechanical pulp use large amounts of
energy; a very rough estimate of the electrical energy needed is 10,000 mega joules (MJ)
per ton of pulp (2500 KWH per short ton), usually from hydroelectric generating plants.
Landfill use
About 35% of municipal solid waste (before recycling) by weight is paper and paper
products. Recycling 1 ton of newspaper eliminates 3 cubic meters of landfill. Incineration
of waste paper is usually preferable to land filling since useful energy is generated.
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Organic materials, including paper, decompose in landfills, albeit sometimes slowly,
releasing methane, a potent greenhouse gas. Many larger landfills now collect this
methane for use as a biogas fuel.
Water and air pollution
The US EPA has found that recycling causes 35% less water pollution and 74% less air
pollution. Pulp mills can be sources of both air and water pollution, especially if they are
producing bleached pulp. Modern mills produce considerably less pollution than those of
a few decades ago. Recycling paper decreases the demand for virgin pulp and thus
reduces the overall amount of air and water pollution associated with paper manufacture.
Recycled pulp can be bleached with the same chemicals used to bleach virgin pulp, but
hydrogen peroxide and sodium hydrosulfite are the most common bleaching agents.
Recycled pulp, or paper made from it, is known as PCF (process chlorine free) if no
chlorine-containing compounds were used in the recycling process.
Additional Environmental Benefits
1) Disposal problems are reduced by using waste paper to produce new paper. For every
ton of paper used for recycling, the savings are:
• At least 30000 liters of water
• 3000-4000 KWh electricity (enough for an average 3-bedroom house for a year.
• 95% of air pollution
2) Recycling one stack of newspapers about six feet tall saves the life of one tree 35 feet
tall. Recycling approximately one ton saves 17 trees.
Other Social and Economic Benefits
1) Recycling will help local industries grow and will also bring in more employment.
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2) There is also less water usage. This is because most of the energy used in paper
making is required for the pulping needed to turn wood into paper.
3) Using recycled paper reduces the need for primary raw materials.
In the initial stages, cost of recycled paper is well below paper from virgin pulp. These
costs are rising as the utilization of recycled paper is increasing. The cost rises to the
extent that it matches the cost of producing paper from virgin paper. This point is shown
with red circle in the diagram. It shows that after this limit, recycled paper utilization in
economically not feasible because the similar cost is being used for producing paper from
virgin pulp.
Conclusion:
ASM paper took an initiative to bring a very important notion in our country and make
people aware of a rising concern – to save the environment through saving woods and
forests. We are at a fortunate time in the development of environmentally sound papers.
Several new high grade deinking pulp mills have opened or are in the development
process, enlarging the potential for recycled paper production. Technological
breakthroughs have solved problems with processing many contaminants such as toners.
Several producers and distributors are strongly dedicated to providing kenaf and hemp
papers. In addition, paper mills have dramatically reduced the amounts of water and
energy they use and the pollution they produce compared to even fifteen years ago.
Paul Hawken, in his book The Ecology of Commerce, quotes from the futurist Willis
Harmon, “Business has become, in the last century, the most powerful institution on the
planet. The dominant institution in any society needs to take responsibility for the whole.
Every decision that is made, every action taken has to be viewed in the light of, in the
context of, that kind of responsibility.”
2016
20
Reference
Journal of Chemical Engineering, IEB
Vol. ChE. 26, No. 1, December 2011
Paper Sector in Bangladesh:
Challenges and Scope of Development
Dr. Engr. M M A Quader
Additional Chief Engineer, KPML, Chandraghona
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