Project Report For Areca Leaf Plate Making

Introduction to Project Report for Areca Leaf Plate Making: Areca leaf plates are considered to be the best substitutes to Plastics/Polymer based items and also Paper-based goods about which the entire globe is concerned. A 100% natural process is practiced during the manufacturing of these plates. The shredded areca leaf is gathered from cultivated regions. The Sheath of the areca leaf will be properly cleaned and placed in water for almost 15 minutes and shade dried for half an hour. They are then crushed to various shapes with the help of similarly shaped Machines. They are further packed as per the client’s need.

A guide to Project Report for Areca Leaf Plate Making, Manufacturing Process, and Business Plan

Benefits of Areca Plates

They are bio-degradable, eco-friendly, and compostable.
There is no need for cutting any trees, as the shredded leaves are only accumulated used for the manufacturing process. This is rightly seen as a waste to wealth idea.
During the manufacturing, none of the chemicals, or PE (Poly Ethylene) coating and bleaching steps are necessary.
They are tough, lightweight, and non-crushable.
They are safe to microwave and can be refrigerated.
Can preserve liquid items for up to 4 hours without any seepage.
Best options for wet, hot, and cool eatables.

Business plan for starting Areca Leaf Plate Project Report

If you are in the arrangement to initiate an Areca Leaf plate manufacturing center then you need to craft up a comprehensive and thorough business report because this market is already present. Your plan should not only be restricted to its manufacturing but also include supply, marketing policies, and returns. Here we will elaborate on how you can begin an Areca Leaf plate manufacturing unit.

Market demand
Basis and presumptions
Implementation schedule
List of approvals required
Raw materials and machinery required
Manufacturing process
Project economics
Marketing strategies to promote the product

Market demand for Areca Leaf Plates Manufacturing Business

1. Mainly the high-grade plates will be sent for the international market.

2. Next, the quality plates will be sold to local markets to the dealers, food restaurants, supermarkets, and caterers.

Areca Plates are useful on several occasions such as parties, picnics, buffets, outdoor catering, functions, food corners, temples, etc. This product is having a perfect scope in states like Delhi, Maharashtra, Madhya Pradesh, and Tamil Nadu. These plates proved as the perfect best subsites for plastics and hence they proved to be best in the market in the international market as well.

Basis and Presumptions of Areca Leaf Plate Manufacturing Business

The Areca Leaf Plate Manufacturing Project Profile relies on the following assessments:

Working hours/shift: 8 hrs.
No. of shift/day:1
Working days: 300
Labor expenses: as per the State Government’s Minimum Wages Act.
Rate of interest: 15% per annum
Costs of machinery and equipment: Taken based on A particular dealer
Value of raw material: As per local market Packing material/others rate (on wholesale rate)
Land: owned
Building Construction
Break-even point will be estimated on a full capacity utilization basis
Pay-back time is 5 – 7 years

Implementation schedule of Areca Leaf Plate Manufacturing Business

The project implementation schedule of Areca Leaf Plate Manufacturing Business

Project preparation: 0-1 month
Location selection, acquisition of 1-2 months land and land development
Loan Sanction: 1-3 months
Building construction: 3-4 months
Connection of electric supply and water: 4-5 months
Obtaining machinery: 5-6 months
Electrification & installation: 6-7 months
Recruitment of staff and workers: 7-8 months
Trial run can be initiated in 8-10 months
Commercial production could start from 10-11 months

Licenses required to start Areca Leaf Plate Manufacturing Business

Documentation and proper approvals: You must be prompt with these essentials by getting proper permission from the respective authorities. Paperwork like appropriate power connection, water supply provision, business registration, obtain GST, and few others.

Requirements for starting an Areca Leaf Plate Manufacturing Plant

There’s not much needed to start the Areca Leaf Plate manufacturing business. A few of the basic requisites are highlighted below.

Employment Opportunity in Areca Leaf Plate Manufacturing Business

The rural area is carefully chosen to generate employment. This is even useful for the owner as the labor and manufacturing shed will be available at less rate.

Hiring workers for Areca Leaf Plate Manufacturing Business

In our country, India around 4 Lac Hectares of Areca Crop is being cultivated, near about 5400 million Areca leaves which fall off from the tress and channelized as Agro waste. These leaves are now useful and recognized as value-added products.

Around 1,95,000 leaves are required for an Areca leaf plate manufacturing unit annually. In this condition, approximately 27700 plate manufacturing units could be arranged across the country. 1.5 lakh new job roles are generated with these 27700 units. This Particular project can develop “A Rural Employment Revolution” in our nation.

Currently, only 1500 units are there across India in various regions. In that, around 1000 units have been established and concentrated to south India. The major chains of raw materials for south Indian units are Salem and Coimbatore in Tamil Nadu, Tumkur, Shimoga in Karnataka state, and parts of Kerala.

Project Report/ Economics of Areca Leaf Plates Manufacturing Business

In case if you miss this: Cinnamon Oil Project Report.

Here, we have added an estimated analysis for Areca Leaf Plates making for your ease and immediate reference.

Fixed capital

Machinery and Equipment: Rs. 6,50,000

Recurring expenditure (per month)

Raw Material Per Month: Rs. 2,55,100

Salaries and Wages Per Month: Rs. 30,475

Utilities Per Month: Rs. 4750

Utilities Per Month: Rs. 12500

Total recurring expenditure per month: Rs.3,02,825/-

Recurring Expenditure for 3 months: Rs. 9,08,475/-

Working capital assessment: Rs. 6,50,000.

Financial aspects for Areca Leaf Plates Making Business

Total Project Cost required to start Areca Leaf Plates Making Business

Plant and Machinery: Rs. 16,50,000

Working capital: Rs. 16,50,000

Total: Rs. 13,00,000

Total Project Cost: Rs. 13,00,000

Promoter contribution 10%: Rs. 1,30,000

Total: Rs. 11,70,000

Finance required from the Bank: Rs. 11,70,000/-.

Cost of production per annum

Total recurring cost: Rs. 36,33,900

Interest on Bank Loan @12.5%: Rs. 1,46,250

Total Depreciation on Machinery & Stabilizer @15%: Rs. 90,000

Total Depreciation on furniture’s and other equipment’s @ 20%: Rs.5,000

Total: Rs. 38,75,150.

Turnover Per Annum

By sale of 1,20,00,000 nos. of Areca Leaf Platess @ Rs. 0.39: Rs. 46,80,000/-.

Profit Per Annum

Turnover – Cost of Production = Rs. 46,80,000 – Rs. 38,75,150 = Rs. 8,04,850/-

Percentage of profit on sales = Profit/annum X 100/Turnover = 8,04,850 X 100/46,80,000 = 17.2%.

Rate of Return

Rate of Return = Profit per annum x 100/Total Capital investment = 8,04,850 X 100/13,00,000 = 61.91%.

Break Even Analysis

Fixed expenditure per annum:

Interest on Loan: Rs. 1,46,250

Total Depreciation: Rs. 95,000

40% of salary and wages: Rs. 1,46,280

40% of other expenses & Utilities: Rs. 1,82,800

Total: Rs. 4,70,330.

Profit in Areca Leaf Plates Making Business

Profit per annum: Rs. 8,04,850/-

Break-Even Point = Fixed Cost per annum x 100/fixed cost per annum + Profit per annum = 4,70,330 X 100/1275180 = 36.88%.

Waste Disposal

1. Food plates discarded after eating will get degraded naturally in two months similar to any plant material.

2. The Areca sheaths manufacturing will result in some waste that could be used for vermicompost, bio-fuel bricks, and as dry fodder for animals.

Marketing strategies to promote your Areca Leaf Plates

You may also check this: Neem Cake Project Report.

round 1917962 1280 — How to Market your **Areca Leaf Plates** (pic source: pixabay)

You can promote your product through online websites like B2B and B2C websites. Also, approach online selling stores. Later you can target marriage functions, parties, and other hotels also.