Page 106 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 7: Building the Business Plan

Notes

Case Study Khushi Plastics

ts not been a miracle that Khushi Plastics Private Limited has been able to have a
turnover of ` 20,000 crore in a span of 15 years. The success has come from the
Iarduous efforts of the promoters.
Company’s Background
Mr Pramod was a manager in a small plastic factory where he realized that working for
someone else would not quench his thirst for money, flexibility and growth so he decided
to go on his own. In 1990 he started with a small retail shop that sold plastic products like
polythene and plastic sheets. Through market sources he came to know that there was a
huge pile of plastic scrap lying on the offshore of a Gujarat port at throw away prices. He
was quite excited by the news and he informed his past employer (the owner of the plastic
factory) about it and how they could use this scrap with two or three new machines and
make a fortune. But the owner was not interested in purchasing the scrap and in fact had
decided to even sell off his current factory. This was the turning point in his life. Pramod
was not getting the returns from his current shop and an excellent business opportunity
was beckoning with wide-open arms. He therefore decided to visit Kandla Port. With the
little money he had, Pramod bought the scrap, then he bought some old machines after
selling his parental house. He took a factory premise on rent and started manufacturing
polythene. The company was able to achieve break even in just 8 months (which is
commendable!). After this there was no looking back. After reaping profit constantly for
nine years there was a slack period in the year 1997, when polythene bags were banned by
the government. At that time Pramod ventured into a new and related business-
manufacturing of disposable plastic containers. The sales and hence profits shot up
exponentially. Khushi Plastics not only became pioneers in the disposable plastic container
business but also became market leaders.
The Product

The disposable plastic container manufacturing at Khushi Plastics is made of special grade
of Polypropylene glasses that guarantee optimum strength and clarity. They are crack-
resistant, leak-free and pollution-free in nature. The range of products that are available
include:
1. DPP Plastic Glasses: In 3 sizes: 250 ml, 400 ml and 50 ml. The two brands that are
available for each: Classical and Funda.
2. DPP Plastic Plates: In two sizes: quarter plates and full plates. The two brands that
are available in each include: Classical and Kissan.
3. DPP Plastic Spoons of standard size, the brand name is Saathi.
4. DPP Plastic Bowls Standard of medium size, the brand name is Mili.
Distribution Strategy
Khushi Plastics has a two-tier distribution system. Distributors are to be given a discount
of 10% on cash sales.
Production
The location of the plant is in the industrial area of the town. The machineries brought five
years back were high tech and expensive but thanks to the fast changing technology, had
Contd...

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