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Business plan for the organization of production of polypropylene monofilament

1. PROJECT SUMMARY
The goal of the project is to organize the production of polypropylene monofilament (fishing line) in the form of a pile and trim line. The location of the production is the city of Ramenskoye, Moscow Region. The place was chosen taking into account the maximum proximity to the consumers of the project products.

The monofilament pile is used to produce synthetic brooms, as well as brush discs for sweepers. Trim fishing line is used in trimmers – manual devices for cutting lawn grass (mowing). Sales are carried out both through intermediaries (wholesale companies, retail stores) and directly to shopping centers, hypermarkets using cleaning machines with brush discs.

The advantage of the project lies in the simplicity of production technology, relatively low production costs, as well as high-quality work of the sales department. Since the products do not have a wide range of consumer characteristics, and there are a fairly large number of analogs on the market, the main focus is on the quality of service and building long-term partnerships with customers.

Investment costs are directed to the acquisition of the production line, sales organization, as well as the formation of a working capital fund, from which the losses of the project are covered before it reaches its recoupment.

Table 1. Main project performance indicators
Payback period (PP), months
Discounted payback period (DPP), months
Net present value (NPV), rub.
Return on investment (ARR),%
Internal rate of return (IRR),%
Profitability Index (PI)

2. DESCRIPTION OF COMPANY AND INDUSTRY
The production of trimmer fishing line and pile from fishing line is a competitive industry. Today in the market, due to the availability and simplicity of technology, there are a large number of players.

Trim fishing line is used as a consumable material for trimmers – hand-held devices for mowing grass, cutting bushes and other garden work. Trimmers are widely used both by individuals in the improvement of houses adjoining plots, cottages, gardens, and by organizations – municipal, commercial for landscaping. Thus, the demand for consumables (fishing line) is quite high, especially in such a region as Moscow and the Moscow Region, where the marketing of the project’s products is organized.

The monofilament pile is used to make synthetic brooms and brush discs for sweepers. Brooms are widely used in households and organizations, displacing traditional brooms from natural materials. Sweepers are used primarily by organizations – shopping centers, hypermarkets. In this case, the brush discs are also consumable, requiring frequent replacement in accordance with the mode of operation of the machine. Today in Moscow there are 338 shopping centers, with a total area of ​​17 million square meters. m

Since the market of products from monofilament is quite specific, it is quite difficult to carry out its detailed analysis. To understand the general market situation, it is possible to analyze the general economic situation. GDP growth dynamics reflects the general state of the entire economic system of the country If at the end of 2011 – the beginning of 2012, GDP showed a growth of 4-5% per quarter, then in the II quarter of 2015, with a stable preliminary decline, it was already -5%. However, at the beginning of 2016, the drop decreased to -1%.

The prerequisites for the crisis are obvious: EU and US sanctions, a weakening of the ruble, a significant drop in oil prices. As a result of these processes, the cost of imported products has increased significantly. Since the production of many domestic goods uses imported technologies, raw materials, components, equipment, and so on, prices for Russian products have also increased. According to Rosstat, prices for goods and services in 2015 increased by an average of 12.9% compared with 2014.

The consumer confidence index of the population approached the values ​​of the crisis of 2008, which directly affects the development of retail trade. Nevertheless, experts, in particular RBC.Quote, predict an improvement in the economic situation in 2017–2018. and the growth of quotations for Brent crude to $ 66.4 per barrel. Experts also predict a decline in inflation and consumer price growth (up to 4.9%).

Nevertheless, even against this background, according to forecasts of the Ministry of Economic Development, real disposable incomes of Russians in 2016 will decrease by 2.8% due to high debt load, rising prices, and an unstable economic and political situation.

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