GREEN G Ltd (Start-up) - · PDF fileName: GREEN G Ltd (Start-up) Business Plan For: Materials...

GREEN G LTD Project Manager: Hayk N. Tell: +37493987270

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Name: GREEN G Ltd (Start-up)

Business Plan For: Materials Recovery Facility (MRF) for processing the

recyclable materials of Gyumri city’s municipal solid waste


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Contents 1. Executive summary ........................................................................................................................................................ 3

2. The business idea ........................................................................................................................................................... 5

3. Marketing ....................................................................................................................................................................... 6

4. Business location and operations ............................................................................................................................... 9

5. Start-up capital and Costs ............................................................................................................................................ 13

6. Financial planning ......................................................................................................................................................... 15

7. Objectives and Potential Risks ..................................................................................................................................... 19


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1. Executive summary

Increased recycling provides an attractive option since it eliminates some disposal requirements with

the additional benefits of reducing pollution, conserving energy, creating jobs and building more competitive

manufacturing industries. In addition, through the utilization of a well-designed materials recovery facility,

recycling can be a very economical opportunity.

A materials recovery facility (MRF) is a place where solid wastes are delivered to be separated,

processed and stored for later use. The idea, described in this business plan, determine the operation of a 70-

100 tons a day facility that could handle all of City`s waste stream. The product will be recovered materials

from waste (paper/cardboard, plastic, glass, metal, etc.). Our recycled waste will be targeted toward

manufacturers, which use recycled raw materials (excluding food and drink manufacturing).

As the collection of city waste is conducted by The Municipality, it is planned to contract with them to

deliver collected waste directly to the MRF. It will give them a feasible and cost effective alternative to

landfilling the whole waste (Landfill is filling up). We will solve this problem by accepting this waste and

recycling it into a useful product, therefore the Landfill will fill up slower.

Recycling can be both a thriving business - by creating employment and generating profit – as well as a

major step of environmental progress for Gyumri. This dual aim will thus create an opportunity for a

sustainable business.

Green G Ltd is entering a niche market in that municipal solid waste has not been recycled on any

sizeable scale in Armenia. This is a unique and viable concept that addresses the needs of various customers

and reaches an untapped market with great growth potential.

One of the most attractive aspects is that the business is projected to attain a strong cash position and

achieve profitability in the first year of operation. Due to a large need for these products, and a lack of direct

competition, our projection of quick profitability is attainable. The current business plan calculates costs and

benefits for the recycling of four main types of materials: plastic, glass, metal and paper/cardboard. The

processing of other types of materials (e.g., organic, textile, rubber, etc.) are left for a potential second stage

of expansion of the business. Research will be an ongoing process for the company; one particular area of


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interest is the possibility of fertilizing the organic waste. In this case, the profitability of the business will

increase.

For realizing this project it is needed to invest $ 447,200. The realization of the project will take 4-6

months and the payback period is 60 months. Up to 35 new jobs with $ 292 average salary will be created.

The main objective of this business plan is to submit a concrete profit and loss forecast for the MRF

that could work as a practicable business case. The company’s five year projections include sales ranging from

$ 261,763 in the first year to over $ 473,194 in the fifth year.

The following table summarizes our anticipated profit and loss for the first five years.

PRO FORMA PROFIT AND LOSS 2017 2018 2019 2020 2021 Gross Profit $ 245,681 $ 366,431 $ 413,119 $ 434,579 $ 457,112

Fixed Expenses $ 142,583 $ 204,361 $ 228,247 $ 243,814 $ 252,177

EBIT $ 103,098 $ 162,070 $ 184,872 $ 190,765 $ 204,935

EBIT/Gross Profit 42% 44% 45% 44% 45%


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2. The business idea

Name of business: GREEN G Ltd

Location: Gyumri, Armenia

The management team: Director - Hayk N., has four year background as manager and PhD on Finance.

Operations Manager – Karen M., has solid background in waste recycling and operated plastic

recycling company in Russia almost 8 years.

The idea is to establish a material recovery facility (MRF) plant in the city of Gyumri. The suggested

MRF is able to accept mixed municipal solid waste, to separate it and process for recycling.

MRF recycling process will include three steps, namely:

• Manual sorting of recyclables from remaining waste,

• Processing some of recyclables into raw materials,

• Packaging and transportation of recyclables to processors or remanufacturers.

The main function of the MRF is to maximize the quantity of recyclables processed, while producing

materials that will generate the highest possible revenues in the market. Separated materials and sources of

waste would be following:

Separated materials

for Recycling

Common sources of waste materials

• Paper magazines, catalogs, cardboard (boxes, tubes, smooth, egg cartons), office paper, beverage

cartons, books, other mixed paper

• Plastic bottles (PET), bags, pipes, fuel tanks, refillable and detergent bottles, thin films used for

food packaging, computer parts, chairs and tables, door mats and outdoor carpets, trash

bags, etc. (PVC, PEHD, PP, PELD)

• Glass Transparent, brown, green glass jars and bottles

• Metal metal cans, aluminum foil/trays, other metal (aluminum, bronze, steel)

• Others textiles, rubber, bones, clothes, batteries, fluorescent lights, electronic waste (e-waste),

water heaters, etc.


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The hierarchy of municipal solid waste management usually includes 5 main steps - waste collection,

recycling, composting, energy recovery and disposal (Sanitary Landfills). In Gyumri the “stakeholder” of waste

management is the Municipal authority. The chain of city`s waste management is, however, limited to

collection, open dumping, and burning practices. Recycling is currently not being held systematically in

Gyumri, which implies substantial loss in revenue as well as raises major environmental concerns.

As it is argues in this plan, recycling can be both a thriving business - by creating employment and

generating profit – as well as a major step of environmental progress for Gyumri. This dual aim will thus create

an opportunity for a sustainable business.

Recycling is being strongly encouraged in most developed countries. From an environmental

perspective, it is an extremely favorable option for municipal solid waste management, mainly due to its

relatively low negative environmental impact (MRF process excludes the mostly dangerous components from

waste), and its role in preserving raw materials by reusing discarded ones, as well as the energy it saves by

reducing extraction processes.

3. Marketing

Product

Green G Ltd will produce secondary raw materials (paper, plastic, metal, glass, etc.) recovered from

municipal solid waste, which will be used by manufacturers.

We performed analysis of the city’s waste stream to determine the type and relative quantity of each

incoming material.

Below are listed the key data and assumptions used in further analysis.

o Current population of Gyumri: permanent- 157,972, existent – 119,2681

o Average per capita waste produced in Armenia: 219 kg waste per year2

o Implied waste stream to MRF: 26,119-34,596 tons per year,

1 http://shirak.mtad.am/about-communities/576/ 2 Recycling of Household Waste in Armenia: Personnel training, data collection including waste analyses, recommendations for waste management actions. Project partners: Otto-von-Guericke-Universität Magdeburg and Yerevan State University of Architecture and Construction, Project management: Federal Environment Agency of Germany (Umweltbundesamt). 2011


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o Assumed waste stream: 30,000 tons/year.

o Proposed MRF will be able to recover 15-30% of total waste weight. The target after two years will

be 16.19% (this is the practical efficiency of operating MRFs in Russia, as we are going to purchase

equipment from a Russian company).

Yearly output of MRF

Name Index (tons/year)

Recycling Clarification

Municipal solid waste 30,000 100.00%

Organic waste - 0.00% for composting or disposal

Recovered raw materials 4,856 16.19% for sale

Non-utilizable waste 25,145 83.82% for dumping

o According to the study (reference 2) the composition of waste in Vanadzor city is following:

Assumption: As the cities (Gyumri & Vanadzor) have almost the same industry structure, the waste

composition of Vanadzor will be presumed to Gyumri.

Output calculation (30,000 TPY)

Waste type Composition

of waste (by weight)

Mass flow (TPY)

Sorting efficiency

Recovered raw

materials (TPY)

Recycling

Organic waste (food and small waste <80mm)

(leftovers of fruits, vegetables, cleaning, waste of meat and fish products, remains of bread, eggshells, foliage, waste of branches, branches, etc.)

27.00% 8,100 0% - 0.00%

Ferrous/ non-ferrous metals

4% Paper and cardboard10%

Glass and ceramics6%

Plastics17%

Organic waste27%

Textile4%

Inert waste8%

Leather/ rubber2%

Other waste10%

Middle grain8%

Fine waste4%

Composition of Waste


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Various paper 6.00% 1,800 80% 1,440 4.80%

Cardboard 4.00% 1,200 80% 960 3.20%

Terpak 0.04% 12 0% - 0.00%

PET bottles (mix) 2.00% 600 90% 540 1.80%

Polymer films (LDPE) 1.19% 357 50% 179 0.60%

Polymer films (stretch) 0.05% 15 50% 8 0.03%

LDPE bottles, cans 0.60% 180 90% 162 0.54%

Polypropylene (boxes, lids) 0.55% 165 50% 83 0.28%

Polystyrene 0.20% 60 0% - 0.00%

Polyvinylchloride 0.50% 150 0% - 0.00%

Non-ferrous metal - copper 0.02% 6 0% - 0.00%

Non-ferrous metal - aluminum can 0.25% 75 90% 68 0.23%

Black metal (thin sheet, barrels) 4.00% 1,200 50% 600 2.00%

Glass (mix) 6.00% 1,800 50% 900 3.00%

Non-utilizable waste 47.60% 4,280 0% - 0.00%

Total 100.00% 30,000 4,938 16.46%

After utilizable materials are sorted from waste stream, some of them will be packaged and sold, the

others will be processed before being sold. This depends on the market demand and the cost of recycling. Our

research suggests that that the recycling of some materials is financially not viable, while the following list of

materials can be recycled with positive cost-benefit margins:

Material Future Product specification Potential clients

Paper/Cardboard Baled Paper/Cardboard production

PET bottles (mix) Baled PET bottle recycling production

Polymer films (LDPE, HDPE) Densified (agglomerated)

Any type of production using plastic HDPE, LDPE (bottles, cans, etc.) & Polypropylene (boxes, lids, etc.)

Flake

Non-ferrous metal - aluminum can recycled to aluminum scrap Metal production

Black metal N/A

Glass (mix) Shredded Glass production

Commonly, paper/cardboard, PET bottles, metal and glass will be baled and packaged for further sale.

Polymer films are considered to be densified and after be sold. The other reclaimed post-consumer plastics

will be restored to manufacturing quality. The plastic will be processed through a series of steps that will

grind, wash, separate and dry the finished product (flake).

Potential Clients & Competitors

In the municipalities of Armenia waste recycling is in general not performed or at least not in a

streamlined way. The collection of valuable materials from waste is left to unorganized informal operations,

for example, often performed by homeless people.


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The business we propose will streamline all this activities and will create economies of scale. This scale

will in turn substantially cut the costs on all sides of collection, procession, recycling as well as transportation

to final customers.

Recycled raw materials are much cheap than primary ones, so that the market advantage of our

product is its low price.

The following enterprises are currently active in the area of buying recyclable materials:

Competitively large organizations in Armenia that buy recyclable materials Names of the enterprises

Recycling material

Capacity tons/year

Prices per kg (AMD)

Prices per kg in Russia (AMD)

Ltd. 50-50 Paper/Cardboard 1200

20-30 40-70 Ltd. Kartontara Paper/Cardboard -

Ltd. Grand Holding Paper/Cardboard -

Ltd. Saranist Broken glass (mix) 1500-2000 15-20 20-25

Ltd. Prom Sintez Polymer films (densified) 300-500 250-350 300-400

Ltd. Cleanland PET bottles 800-1000 70-150 150-200

Ltd. Eco-Enginering PET bottles 1000-1500

Ltd. NTG and Sons” Plastic (not processed) -

75-100 150-250 JSC Plastik Plastic (not processed) -

Ltd. Poliplast DW Plastic (not processed) -

Ltd. Europa Ferrous and nonferrous metals - aluminum:150-300, black metal:20-50

aluminum:250-350, black metal:40-60

Ltd. Dsulkentron Ferrous and nonferrous metals 4000-5000

P/E Nikol Duman Ferrous and nonferrous metals 200-300

The list above is not limited and as it is stated above the range of our clients is wide. The output of MRF

will be up to 5,000 tons/year, and it is feasible to distribute all products in Armenia. We also made some price

researches of materials in Russia and it showed that priced are higher, so Russian market could be considered

as alternative market for our products.

4. Business location and Operations

The MRF will be located close to city`s dumpsite in order to minimize transportation expenses. This is

feasible since the location is far from residential areas.

As it is assigned bellow, the business will contract with Gyumri Municipality to deliver collected solid

waste directly to MRF plant. The contract should be long termed, and can be included the further properly

disposal of non-utilizable waste (every year the Municipality budget includes 10 ml AMD for proper disposal of

city waste, so this service can be carried by our firm with stated fee).


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Initial data for MRF Name Index Unit of measure Solid waste Q-ty 30,000 tons/year

Number of shifts 1 shifts

Number of h/y 2,800 hours/year

Number of days in a year 350 days/year

Number of hours per day 8 hours/day

Number of hours per shift 8 hours/shift

Productivity per hour 11 tons/hour

Trucks filled with the collected waste from Gyumri City will travel to the MRF. When waste are brought

into the facility, they are deposited in a large recessed area called the tipping floor. The tipping floor will be

designed to accommodate extra materials for the second operational shift and for at least two days of the

expected volume of materials. The floor will be designed to handle heavy weight, withstand the wear of

pushing materials and provide efficient drainage for liquids. Tipping floor utilize front-end loaders to move the

deposited waste onto conveyors that rise up to the separation systems. The heavy loads, that are

characteristic of mixed wastes, will be removed from stream by front-end loaders. After, conveyor lines

transport mixed waste to the sorting platform, where pickers will remove recyclable items into bins. These

bins will then be removed by a forklift and the recyclable products will be taken to different areas where they

will be packaged or processed for sale. Remaining waste will be transferred to a Landfill for dumping.

The following list contains various activities or administrative tasks that must be undertaken to get

such an operation running.

1. Training for recycling company pickers conducted by equipment suppliers.

2. Computer training for one or more employees

3. Investigations and site visits of similar recycling plants in Russia (equipment supplier’s projects).

5. Municipal involvement in recycling

6. Contacting markets and development of agreements with buyers.

Municipal involvement and legislation

Municipal involvement is important to the creation of a successful recycling enterprise in Gyumri. It could

be done in numerous ways:


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1. Contracting to deliver collected municipal waste directly to MRF plant. The MRF will contribute the

existing landfill site to fill a lot slower with recycling and thus the ultimate cost (environmental and

fiscal) will be lower.

2. A recycling company could do the recycling on municipal land (dump site) with assistance from the

municipality via the waste collection.

3. Municipality could pay a fee for every ton or cubic meter of non-utilizable waste to be disposed

properly in landfill.

Municipality could implement plans to secure sustainability of recycling enterprise through source

separation initiatives, by-laws, fines and general recycling awareness campaigns.

There are no legislative texts specifically addressing solid waste management, apart from some small

fragments and general guidelines that directly deal with solid waste management in Armenia. However, the

distribution of roles and responsibilities in the implementation of the laws and decrees is unclear, and

enforcement is practically non-existent. Waste collection is clearly the responsibility of municipalities, while its

treatment and disposal are somewhat vague.

Because the business recycles a waste product and incorporates it into an environmental product, the

company is under the potential jurisdiction of Ministry of Environmental Protection. We will obtain all

required permits and licenses to operate its facilities.


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5. Start-up capital and Costs

START-UP CAPITAL

Our start-up costs will be $ 447,200. The funds will be primarily used for the following:

o Business premises – 220,000 USD

o Equipment – 169,200 USD

o Vehicles – 30,000 USD

o Working capital – 28,000 USD

The bulk of our Start-up funding will be used for capital asset purchases, listed in the table below.

REQUIRED START-UP CAPITAL

Investments USD

• Business Premises 220,000 Pr. Construction 200,000 Other (Utilities) 20,000

• Equipment 169,200 large angle skirt belt conveyor (MRF) 47,800 Horizontal sorting belt conveyor (MRF) 34,600 Control system (MRF) 5,800 Installation (MRF) 8,700 Hydraulic baler 17,300 Plastic granulator m. 25,000 Shredder 12,000 Pelletizer m. 3,000 Transportation fee 15,000

• Vehicles 30,000 Loader V. (2 q-ty) 30,000

Working Capital 28,000 Operating costs 12,000 License & Leg. Costs 1,000 Contracting 5,000 Other costs 10,000

Total Start-up capital 447,200

Notes:

1. As the source of funding is not clear, it is considered that the business will raise the start-up capital from loan granted with

following conditions:

➢ Loan amount – 447,200 USD

➢ Period – 60 months

➢ Interest – 10%

➢ Loan repayment grace-period – 12 months


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2. Costs on business premises includes purchasing land, construction of premises (1000 sq.) and utilities. But if the premises can

be rented, these costs can be excluded.

3. MRF equipment will be purchased from a Russian firm operating in the field of waste management (the purchase value of these

items has been estimated, VAT included), and the other machinery would be sought second hand as the prices of many of these

items new would exceed the projects capability for repayment. There is no custom fees for importation of equipment from

Russia.

4. The MRF will start-over after 3-4 months the loan is granted.

COSTS

There would be no feedstock procurement costs, the only cost on good considered to be the disposal

of unused waste. This cost varies from 3.5-4.5% of monthly revenue.

Below stated all monthly operating costs of the business.

Operating costs per month Salary 8,762.9 Payroll (taxes etc.) 3,608.2 Repairs/ Maintenance 618.6 Vehicles (repairs & gas) 721.6 Accounting and Legal 309.3 Utilities 721.6 Interest 3,333.3 Overalls 103.1 Transport. of materials 3,866.0 Other expense 309.3 Total 22,354.0

Notes:

1. Costs on labor include 35 employees with 2 shifts and $292 average salary.

2. Below listed required human resources:

Human resource requirements

Job Title Number of people Salary (AMD) Salary (USD)

Managing Director 1 500,000.00 1,030.93

Manager of Facility 1 250,000.00 515.46

Sorters / pickers / 15 1,800,000.00 3,711.34

Front-end loaders 6 480,000.00 989.69

Operators 4 400,000.00 824.74

Drivers 2 240,000.00 494.85

Engineer 1 80,000.00 164.95

General labor/cleaners 5 500,000.00 1,030.93

Total 35 4,250,000.00 8,762.89

Total with taxes 35 6,000,000.00 12,371.13


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6. Financial planning

Profit and loss forecast

The calculation of expected revenues have been based on the studies of the city waste stream and

composition. Also it is stated above, that the MRF waste recovery efficiency is about 16%.

Target revenue for 30,000 tons/year waste stream

Product Final specification Recovered

(TPY) Prices

(tons/AMD) Prices

(tons/USD)

Income (USD)

Paper/Cardboard Baled-packaged 2,400.0 20,000.0 41.24 98,969.07

PET bottles (mix) Baled- packaged 540.0 100,000.0 206.19 111,340.21

Polymer films Densified- packaged 186.0 250,000.0 515.46 95,876.29

Other Plastic Shredded or granulated 244.5 75,000.0 154.64 37,809.28

Metal - aluminum can Processed to aluminum 67.5 150,000.0 309.28 20,876.29

Black metal N/A 600.0 25,000.0 51.55 30,927.84

Glass (mix) Shredded- packaged 900.0 18,000.0 37.11 33,402.06

Total 4,938.0 429,201.03

P&L projection (target year) Revenue (Sales) $ 429,201

Disposal $ 16,082 3.7%

Gross Profit $ 413,119

Operating Expenses

Salary expenses $ 105,155 24.5%

Payroll expenses $ 43,299 10.1%

Repairs/ Maintenance $ 7,423 1.7%

Vehicles $ 8,660 2.0%

Accounting and Legal $ 3,711 0.9%

Utilities $ 8,660 2.0%

Overalls $ 1,237 0.3%

Transport. of materials $ 46,392 10.8%

Other expense $ 3,711 0.9%

Total Expenses $ 228,247 53.2%

EBIT $ 184,871 43.1%

It is considered, that with 30,000 tons/year stream of waste the proposed MRF will be able to recover

about 5,000 tons of raw materials and the target revenue from sales will be up to 430,000 USD a year. This


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amount of revenue will be reached after 2 years operation. Further increase in revenue will depend on either

increase of waste stream or increase of efficiency.

The tables below outlines the income statement (5 years) and Cash flow (24 months) projection. The

forecast is based on reasonable sales projections within our market.

261,763

382,513

429,201450,661

473,194

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Year 1 Year 2 Year 3* Year 4 Year 5

Inco

me

fro

m S

ales

(U

SD)

*target year

Revenue projection for 5 years


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Projected Income Statement (5 Years)

Green G Ltd.

2017 2018 2019 2020 2021

Revenue (USD) 261,763 382,513 429,201 450,661 473,194

Variable costs (disposal)

16,082 6.1% 16,082 4.2% 16,082 3.7% 16,082 3.6% 16,082 3.4%

Gross Profit $245,681 $366,431 $413,119 $434,579 $457,112

Operating Expenses

Salary expenses 64,132 24.5% 93,716 24.5% 105,155 24.5% 115,933 25.7% 121,730 25.7%

Payroll expenses 26,407 10.1% 38,589 10.1% 43,299 10.1% 47,737 10.6% 50,124 10.6%

Repairs/ Maintenance

4,527 1.7% 6,615 1.7% 7,423 1.7% 7,423 1.6% 7,423 1.6%

Vehicles 5,281 2.0% 7,718 2.0% 8,660 2.0% 8,660 1.9% 8,660 1.8%

Accounting and Legal

3,711 1.4% 3,711 1.0% 3,711 0.9% 3,711 0.8% 3,711 0.8%

Utilities 5,281 2.0% 7,718 2.0% 8,660 2.0% 9,010 2.0% 9,190 1.9%

Overalls 1,237 0.5% 1,237 0.3% 1,237 0.3% 1,237 0.3% 1,237 0.3%

Transport. of materials

28,294 10.8% 41,345 10.8% 46,392 10.8% 46,392 10.3% 46,392 9.8%

Other expense 3,711 1.4% 3,711 1.0% 3,711 0.9% 3,711 0.8% 3,711 0.8%

Total Expenses $142,583 54.5% $204,361 53.4% $228,247 53.2% $243,814 54.1% $252,177 53.3%

0

EBIT 103,098 39.4% 162,070 42.4% 184,872 43.1% 190,765 42.3% 204,935 43.3%

Interest 44,700 17.1% 39,578 10.3% 28,403 6.6% 17,228 3.8% 6,053 1.3%

EBT 58,398 122,492 156,468 173,537 198,882

Profit Tax (20%) - - - - -

Net Income $ 58,398 22.3% $122,492 32.0% $156,468 36.5% $173,537 38.5% $198,882 42.0%


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May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 Total

Cash on hand (beginning of month) 0 0 11,800 8,075 4,350 4,771 5,910 7,766 10,440 13,832 18,193 23,648 29,948 37,090 35,739 35,004 34,888 34,849 34,657 34,733 35,075 35,685 36,562 37,706 39,118

CASH RECEIPTS

Cash sales 0 0 0 12,711 14,180 15,649 17,325 18,794 20,778 23,021 24,747 26,474 28,149 29,412 30,521 30,521 30,047 30,436 30,824 31,212 31,601 31,989 32,377 32,766 543,536

Loan proceeds 447,000 447,000

TOTAL CASH RECEIPTS 447,000 0 0 12,711 14,180 15,649 17,325 18,794 20,778 23,021 24,747 26,474 28,149 29,412 30,521 30,521 30,047 30,436 30,824 31,212 31,601 31,989 32,377 32,766 990,536

Total cash available 0 447,000 11,800 8,075 17,061 18,952 21,559 25,090 29,234 34,610 41,213 48,396 56,422 65,240 65,151 65,524 65,408 64,897 65,093 65,557 66,288 67,286 68,551 70,084 71,884

CASH PAID OUT

Process residue and reject disposal 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 28,144

Salary expenses 3,114 3,474 3,834 4,245 4,605 5,091 5,640 6,063 6,486 6,897 7,206 7,478 7,478 7,362 7,457 7,552 7,647 7,742 7,837 7,933 8,028 133,167

Payroll expenses 1,282 1,431 1,579 1,748 1,896 2,096 2,322 2,497 2,671 2,840 2,967 3,079 3,079 3,031 3,070 3,110 3,149 3,188 3,227 3,266 3,306 54,833

Repairs/ Maintenance 220 245 271 300 325 359 398 428 458 487 509 528 528 520 526 533 540 547 553 560 567 9,400

Vehicles 256 286 316 350 379 419 464 499 534 568 593 616 616 606 614 622 630 638 645 653 661 10,967

Accounting and Legal 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 6,495

Utilities 256 286 316 350 379 419 464 499 534 568 593 616 616 606 614 622 630 638 645 653 661 10,967

Interest 3,725 3,725 3,725 3,725 3,725 3,725 3,725 3,725 3,725 3,725 3,725 3,725 3,725 3,647 3,570 3,492 3,415 3,337 3,259 3,182 3,104 3,027 2,949 81,407

Overalls 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 2,165

Transport. of materials 1,374 1,533 1,692 1,873 2,031 2,246 2,488 2,675 2,862 3,043 3,179 3,299 3,299 3,248 3,290 3,332 3,374 3,416 3,458 3,500 3,542 58,750

Other expens 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 309 6,495

SUBTOTAL 0 3,725 3,725 12,290 13,042 13,793 14,651 15,402 16,417 17,565 18,448 19,332 20,189 20,835 21,324 21,247 20,927 21,048 21,169 21,290 21,411 21,532 21,653 21,774 402,790

Loan principal payment -9,313 -9,313 -9,313 -9,313 -9,313 -9,313 -9,313 -9,313 -9,313 -9,313 -9,313 -9,313 -111,750

Capital purchases -419,200 -419,200

Other startup costs -16,000 -16,000

Owners' withdrawal 0

TOTAL CASH PAID OUT 435,200 3,725 3,725 12,290 13,042 13,793 14,651 15,402 16,417 17,565 18,448 19,332 29,501 30,147 30,637 30,559 30,239 30,360 30,482 30,603 30,724 30,845 30,966 31,087 -144,160

Cash on hand (end of month) 0 11,800 8,075 4,350 4,771 5,910 7,766 10,440 13,832 18,193 23,648 29,948 37,090 35,739 35,004 34,888 34,849 34,657 34,733 35,075 35,685 36,562 37,706 39,118 40,797

Beginning

Cash Flow Projection (24 months) GREEN G Ltd


19 | P a g e

7. Objectives and Potential Risks

The objectives of this business are:

1. To form a Materials Recovery Facility for Processing the Recyclable Materials in Gyumri.

2. To develop a business centered on sound business practice.

3. To ensure that recycling is sustainable in Gyumri.

4. To minimize landfilling.

5. To create jobs.

6. To investigate options for processing and value adding to recycled products.

There are two main areas where the business may face potential problems. These are insufficient

distribution (Municipal involvement) and insufficient sales. We have considered each of these areas in the

business plan.

The problem of insufficient distribution will be sold by contracting with Municipality to deliver city waste

on daily basis. The benefit of Municipality will be decrease of costs on disposal and influence of open burning

on environment as open dumping and burning carry extremely high risks for contaminating natural resources

with harmful and potentially toxic pollutants.

Our market research shows that the business will be well positioned to meet market demands for

reclaimed materials. The company's location makes it good to collect, process and deliver product to clients.

Local trucking companies and independent truckers will be used for distribution of the product.

Date post:	13-Mar-2018
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