business plan rice bran
TRANSCRIPT
BUSINESS PLAN
RICE BRAN OIL PROJECT
PREPARED BY:
RASHIDUZZAMAN KHAN DIPTO
CELL: +8801680139400
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ACA TRAINEE
OCTOKHAN
TABLE OF CONTENT
PRELIMINARY BUSINESS PLAN AND FEASIBILIY ANALYSIS: Page: 03
ADVANCED BUSINESS PLAN: Page: 39
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1. INTRODUCTION
1.1 General Introduction
Rice is one of the world's most important food crops and more than half of the people in the
world eat rice as the main part of their diets. Young rice plants have a bright green color and as
the grain ripen the plants turn golden yellow. A typical rice kernel is ¼ to 3/8 inches long.
Rice bran is an incredible source of the vitamins, minerals, amino acids, essential fatty acids and antioxidant nutrients that help fight disease and promote good health. It's no wonder the healthy oil that comes from rice bran is becoming so successful at replacing hydrogenated oils containing tans fat. Research is ongoing with this invaluable food source and scientists have found components critical to human health. Rice bran oil is ideal oil for margarine and shortening. The flavor gives the good palatability and the desired prime form crystal provides smooth plasticity and spreading qualities. Since rice bran oil contains three different kinds of natural antioxidants -namely TOCOPHEROL, TOCOTRIENOL and ORYZANOL some of the major antioxidants companies have recently switched their basic oil to rice bran oil. Delicate yet flavorful, rice bran oil just may be the world's healthiest edible oil, containing vitamins, antioxidants and other nutrients - rice bran oil is rich in vitamin E complex, tocopherols and tocotrienols, a unique antioxidant known as gamma oryzanol, high quantities of phytosterols, polyphenols and squalence. Rice bran has a very good shelf life compared to other cooking oils because of these antioxidants. Rice bran oil is extremely light, versatile and delicious use it to fry, sauté, in sated dressings, baking, dipping oils and wherever you use cooking oil. Once you use it you will be amazed cooling light and healthy is also the best tasting.
Rice bran oil is a source of vitamin E complex, antioxidants and other micronutrients to help
fight free radicals. Rice bran oil has the best balance of saturated, monounsaturated and
polyunsaturated fats and recommended by such organs as the American Heart Association and
the world health organization. Foods cooked with California rice oil absorb up to 20% less oil!
Less oil absorbed results in reduced calories, better, lighter tasting food and enhanced flavor
and payability. Less oil absorbed also makes it more economical. Rice bran oil has been a
popular cooking oil in Asian Countries for decades, where there is measurably lower level of
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cancer, diabetes, obesity and heart disease than in the United States. Studies show all of these
conditions are promoted from the use of hydrogenated oils containing trans fatty acids that are
so predominantly used in the USA. Many studies have also shown the unique cholesterol
lowering ability as well as many other health benefits from the use of rice bran oil.
1.2. Rice Bran Oil Industry:
The total market size of the edible oil industry is 1.4 million Tons/year in Bangladesh. The total
market size in the whole world is beyond imagination. 90% of the market size in Bangladesh is
imported from other countries such as: Malaysia, Indonesia, India, Brazil etc. So the potential for
oil market in Bangladesh is huge.
By seeing the rich growth in edible oil industry, the major competitors in the current market in
this segment are Gold Brand of Rashid Oil Mills ltd, and few Indian brands such as: Saffola
Gold, Ruchi Gold, Gold Winner, with so many brands in the segment the customer has a wide
variety of choices. It is up to the customer to make a choice as per his requirement but his
choice can be influenced in many ways. Before purchasing the oil, a customer look at various
aspects like: health, price, quality, quantity & brand.
1.3 Objectives of the study
1) To know the rice bran oil market
2) To identify the SWOT of Rice Bran Oil Project
3) To understand the market growth in Bangladesh and to understand the Export
opportunity.
4) To understand the investment required for Rice Bran Oil Project.
5) To study the competitors position in the market.
6) To forecast the financial performance of the project.
7) To understand the factors that will influence consumer to purchase rice bran oil
products.
8) To study the purchase views of products by consumers.
9) To know the existing problems with the products.
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10) To know the popularity of other brand and to identify how to make our brand
popular.
11) To know the health awareness about our products.
12) To know the consumer satisfaction that we need to achieve to survive in the
market
13) To know the quality to be obtained.
14) To know the advertisement effects that will be taking place.
15) To know the marketing strategy adopted by company.
16) To create a full fledged business plan along with a feasibility analysis of the rice
bran oil project.
17) To know the people's awareness towards Rice Bran oil and popular product
among the consumer (survey).
1.4 Scope of the study :
The scope of this study is huge. As the market size of the Edible oil market is huge so the scope
of this study is huge. Though there is a lot of limitation to collect information still due to the huge
demand of edible oil, the scope of the study will make the project more interesting.
1.5 Statistical tools employed
a. Charts.
b. Graphs.
c. Tables
d. Diagrams etc.,
1.6 Methodology
Primary and secondary data have been collected and used to bring out this project report:
1) Primary data have been collected through:
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By interviewing employees of Rashid Oil Mills Ltd. and Bangladesh edible oil Primary data are
collected. We have also interviewed the staffs of Rice mill owners association. We have created
different questionnaire according to the demand and collected information thus.
The main purpose of interview with Rashid Oil Mills and Bangladesh Edible Oil Ltd employee
was to:
a) To know the distributors activities towards the company.
b) To know the sales methods adopted by them.
c) To get the advice about the better packing and advertisement policies, which the company
should adopt.
d) To get advice about the marketing strategy adopted.
a) Interview with the consumers :
To know the consumers attitude towards the products, a questionnaire was prepared and
administered to 50 users in person. They were selected at random.
a) The facts affecting consumers to buy rice bran oil.
b) Opinion about the oil.
c) Types of refined oil preferred by respondents.
d) To know the purchase method of the consumer.
e) To get opinion about the quality and other aspect of the oil.
f) To get suggestion for the improvement of the oil.
1) Secondary data has been collected from:
➢ The website www.seaofindia.com and
➢ other websites.
➢ Google websites.
1.7 Limitations
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The limitations of the study are as follows :
1. The information provided by these companies is assumed to be authentic.
2. The data and opinion collected are assumed to be objective.
3. This study was done mainly through the secondary data.
4. Also, time limitation of the study.
5. The survey is conducted only on limited respondent.
1.8 Specific Introduction
Solvent extraction industry is the process of extracting crude edible grade oil from materials
such as rice bran, sunflower groundnut, soybean etc. Oil is selling at the price of ghee, they say
this statement is not far from reality. Hence Bangladesh is a major consumer of rice and a
remarkable producer of rice, rice bran oil is potential edible oil in Bangladesh and thus can reap
huge benefits. Bangladesh is the fifth consumer of oil after India, United States, China, Brazil
and Argentina consuming 1.4 million tones of various oil against the world consumption of about
330 million tones/year. Moreover main agricultural product of Bangladesh is Paddy. And 75% of
the agricultural land is used for paddy cultivation. You shall be surprised to know that among
this amount 90% is directly imported from other countries. So there is a big trade gap. Rice
bran oil will work as a weapon to minimize this gap as well as to make the economy of the
country healthier. On the other hand we can say that rice bran oil will ensure good health for its
consumers. If we observe carefully we shall notice that, India is the largest producer of rice bran
oil and producing about 700,000 tones of rice bran oil and promoting it as 'Heart Friendly Health
Oil' in the country thus creating impact in its economy. Bangladesh also has this opportunity to
create a impact by introducing Rice bran oil project in Bangladesh.
Location of solvent extraction industry:
Various geographical and economic factors effect the location they are:
1) Climatic conditions
2) Market condition
3) Labour position
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4) Water supply
5) Transport
6) Power supply
7) Capital invest
8) Raw materials
Proposed Location of Solvent Extraction Plant:
The belt which covers paddy cultivation is very important for Rice Bran Oil Plant. As in this belt
Rice Mills will be noticed remarkably. The main raw material for Rice Bran oil is Rice Bran,
which is a by product of Auto rice mills only. In Bangladesh there are a lots of semi auto rice
mills and also manual rice mills. But the number of Auto rice mill is very few in number. So we
need to identify the location near by the Auto rice mills.
Not only that, the rice bran from one Auto rice mill is not enough to meet the demand of raw
material for the rice bran oil plant. According to the feasibility of the project the project should
source from more than 15 auto rice mills.
Now, as the rice bran has a life time of only 72 hours, so the rice bran oil project needs to be in
a convenient place where rice bran is available. According to a study we have found that, if rice
bran is processed within 24 hours than the rice bran oil extracted is of the best quality.
Bagura-Naogao-Thakurgao the region covers the major number of Auto Rice Mills. So we need
to locate our Rice Bran Oil Project in this location.
1.9 Organization of the Project Report
Chapter 1: Deals with technical aspects of present study such as introduction about the study,
scope, objective of study, methodology, limitations of the study etc.
Chapter 2: This chapter deals with the company profile of major competitor
Chapter 3 : Information about rice brand and health benefits of Rice Bran oil.
Chapter 4 : Gives us the detailed information about the world scenarios
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Chapter 5 : This chapter discusses the introduction of marketing strategies and marketing
strategies adopted by the company and dealers.
Chapter 6 : This chapter highlights analysis of survey data based on questionnaire.
Chapter 7 : This chapter presents suggestions and conclusions.
2. Company Profile of XYZ Oil Mills Ltd.
2.1 Company:
Serial No:
1. Name of the Industrial Concern : XYZ Oil Mills Ltd.
2. Name of the Brand : XYZ Brand Rice Bran Oil
3. Address : xyyyyxxxxxyyy
a) Registered office : same
b) Factory : Bagura-Naogao-Thakurgao region
4. Directors : Local Partnership
5. Employee Overview:
6. Line of activity: Edible oil extraction
7. Size of the industry: Medium Scale Industry
Project Capacity:
Extraction capacity: Initial: Extraction of 100 tons per day from 500 tons of rice
bran
It can be converted to 300 tons per day after 2 years.
Refine Capacity: 30 tons per day
Market Prospect:
Total Market Size of Edible oil in Bangladesh: 1.4 million tons/yr
Total Market Size of Rice Bran oil in Bangladesh: Need an extensive survey,
no survey report found
Export Information:
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Of the total market size which is 1.4 million tons/yr 90% is imported from countries like Malaysia,
Indonesia, India etc. So there is no question to export as huge demand in local market is
available.
Market growth:
There is a huge market in Bangladesh i.e. local market is more lucrative. Even there is huge
opportunity for export due to low cost in labour and raw material.
c) Main raw materials: Rice bran, oil cakes & Soya bean seeds
9. End use of finished products: Refined edible oils wholesale and retail Consumers
Forecasting:
1st year (tk) 2nd Year (tk) 3rd Year (tk)
Annual Target
Turnover
19.2 crore 96 crore 192 crore
Target % PBT 33.81 % 35 % 45%
Major 2 competitors:
1. KBC Agro Products Ltd
2. Rashid Oil Mills Ltd
Resource Availability:
People: Manpower in the Bagura-Naogao-Thakurgao region
Technology: Experienced personnel in Bangladesh
Management: RA Management
Financial Fund: Equity +Debt Capital Or
Consortium with Rice mill owners
Project Cost & Finance:
Cost of the Project
a) Land : Tk 25,00,000/=
b) Building : Tk 1,25,00,000/=
c) Plant & Machinery : Tk 45,50,00,000/=
d) Miscellaneous fixed Assets : Tk 25,00,000/=
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e) Preliminary and Pre-Operative expenses : Tk 50,00,000/=
f) Contingencies & deposits
g) Working Capital Margin
Total : Tk 47,75,00,000/=
Means of finance:
a) Promoters Contribution
b) Term loan
c) Grand from Ministry of food Processing
Total
9 Financial & Profitability indicators
a) Promoters Contribution
b) Debt equity ratio (1 year)
c) Debt Service Coverage ratio (overage)
d) Internal rate of return
e) Profit before tax @ Maximum Capacity Utilization
f) Break even Point in terms of Sales
Employment potential:
Power requirement:
2.2 Background:
Two rice bran oil mills were established with the object of establishing the solvent extraction
plant & other related activities in field of edible oils. These Companies have Successfully
implemented their units of solvent Plant and achieved 95% of capacity utilization within 6
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Months from the date of commercial production by achieving a high turnover. With this
achievement & considering the increasing demand for oil especially edible oils in Bangladesh
and abroad the companies have already successfully expanded to other additional units of a
higher capacity, the refinery units are already in the process of completion.
Project and Product:
{Brief of the project and the product will go here}
Technical & Marketing Process:
The new technology enzymatic de-gumming technology which is tested & developed by Indian
Institute of Chemical Technology, Hyderabad, and a Government of India organization under
enzymatic de-gumming process are adopted their refinery. They are installing the continuous
physical refining technique, against the conventional chemical refining, which is batch process
this will help us in processing high FFA rice bran oil physical referring of rice bran oil which is
having high (Free tatty Acid 9FFA) percentage means 8-12% as against normal range of 3-5%.
The plant will be designed to process all kind of vegetable oils; however we are concentrating
mainly on RICE BRAN OIL. This is due to the fact that the rice bran oil will play significant role in
augmenting edible vegetable oil supply in the country. Refined rice brain oil is taking over other
refined edible oils etc. in Counties like Japan, Korea, China, Thailand & U.S.A Rice bran oil is
known “HEART OIL” as the rice bran oil contains CHOLESTROL LOVERING EFFECT due to
ORYZANOL & COTRIENOLS in the oil. Also the “SCALENE” Content in the rice bran oil is good
for skin’s nutrition & maintaining integration of skin.
2.3. Location & Site details:
Factory Site: Bagura-Naogao-Thakurgao region
a) Factory building
b) Godown
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c) Pollution control & other utilities
d) For future expansion
The company main plant i.e. REFINERY PLANT & enzymatic degumming equipments along
with thermic fluid heating system & chilling. Plant.
2.4 Raw materials & consumables:
The main raw materials are rice bran/oil Cakes. The unit requires 45000 mts / 60000 mts of rice
bran/oil cakes at installed capacity per annum. The proposed location is having a major paddy
growing area. There are about 200 rice Mills & oil Mills in & around Bagura-Naogao-Thakurgao
region we can procure rice bran/oil Cakes from surrounding district of Bagura-Naogao-
Thakurgao region where number of oil Mills & Rice Mills are situated but do not have any
solvent extractions plants which are running in these areas.
2.5 Essential services:
Power: - The unit requires 500KVA Power. We need to install 500 KVA D.G.Set to offset load
shedding & power failure along with STEAM TURIBINE for generation of power. The steam that
is produced for the purpose of in house use will be passed through the turbine to generate
power Around 400 KVA Power will be generated & the same will be used for our own power
requirements. This will cut down the power cost.
Water: - The requirement of water in the processes is for use in the boiler for system generation
and also in cooling tower. The set consumption after accounting for re circulation and human
consumption is estimated at 100000 liters of water per day. The company need to get
permission from the ministry to get abundant water supply. The Company can propose to have
its own bore well in the project.
Steam:- The steam is Major Cost element in the production of Solvent oils. The company needs
to install the boiler with a capacity to produce 14 ton per hour of steam. Boiler is a sophisticated
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which can run an agro waste like groundnut shells, Paddy help the company to reduce the cost
of production and cost of transportation by using the locally available fuel which are emanating
from rice mill and oil Mills situated in and around the area. The boiler proposed in the F.B.C
boiler (fluidized bed) which will enhance the heat required for generation of steam & reduce the
air pollution.
Man Power:
ADMINISTRATION TECHNICAL
1) General Manager 1) Engineer
2) Chief Accounts 2) Plant Operators
3) Clerk 3) Preparatory Operators
4) Typists 4) Boiler attainders
5) Sales-Clerks 5) Electronics
6) Store- Keepers 6) Others
7) Supervisors 7) Unskilled labourers
8) Attainders
9) Security
The Man Power required is two categories Skilled and Unskilled. The Skilled workers like boiler
operators, plants operator, electricians etc., and the company needs to have the skilled workers
who are working in other existing solvent extraction plants. The additional Manpower required
will be recruited & Trained in the our own plant. Some of the above manpower which are
already available in the existing setup, and additional people wherever necessary will be
recruited & trained in the our plant.
Transport:
As the plant will be located near the Bagura-Naogao-Thakurgaon, required transport would be
available easily. Transportation is vital.
Quality Control:
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Company needs to have full pledged laboratory for testing the raw materials and finished goods
for the quality control purpose. Additional equipments are proposed to be purchased & a
provision of Tk 15 lakhs also needs to be made in this project.
Effluents:
1) Company needs to take the permission of pollution control board, as per their guidance
required equipments are already in place to control water and air pollution.
2) For this unit the clearance from local Government authority needs to be obtained.
3) We propose to install effluent treatment plant to avoid water pollution.
4) Above measures along with any other guidelines/ Measures will be undertaken as per the
prescribed guidelines of pollution control board.
2.6 Working Capital:
The detailed working capital estimates are to annexure-11. The Company will have a working
capital facility from DBBL Bank, xxx branch.
2.7 Scope of Marketing and Selling Arrangements
The finished products, which the company is proposed to produce, are solvent oil and de-oiled
meal. The Solvent oils are edible grade and are mainly used in oil refinery units for further
processing and selling as refined edible oil which is an essential & daily consumer able food
item. The demand for edible oil exceeds. The supply and the government of Bangladesh is
spending crores together in terms of foreign exchange to import edible oil to bridge the gap b/w
the demand & supply. A short fall of edible oil is very huge. The Government inspite of best
efforts to increase the production is not in a position to increase the production of edible oil in
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the country; our production would be only a small portion, which helps substitute the imports to
the extent to our production.
Selling arrangement:
The Sales will be directly handled by the directors itself with the help of qualified Staff of the
company through commission agents & brokers.
2.8 Economic Consideration:
Oil is selling at a price of ghee. One says commonly today. The statement is not for reality in
this country the prices of oil and fats are always on the ascent. The reasons are
a) Over increasing population
b) Rise in the standard of living of bulk of the lower sections of the population.
c) Demand for the industrial use, soaps etc.
These factors are increased & continue to increase the demand for the oil & fats for edible &
non-edible purpose. But also the increase in the production of oil seed crop is not keeping with
the increasing demand. Bangladesh is forced today, to import oil for domestic. Consumption by
spending invaluable foreign exchanges. Since there is an sample demand in export market for
de-oiled meal, which brings in valuable foreign exchange to the country. Therefore any
propositions to recover oil from any possible source should not only prove profitable but also will
help in cutting down imports of oils thus saving foreign exchange. Hence pitting up a new
Solvent extraction plant is encouraged by the Government & attractive for investor also. Further
this will contribute it share to solve unemployment problem by creating an employment to 100
people directly & indirectly.
Swot Analysis :
Strengths :
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1. Consistency in Earning profit.
2. Dipto oil is the only 100 % Heart oil- Rice Bran Edible oil in the market of.
Weakness :
There are no weaknesses.
Opportunities :
Growing demand for the health caring oil products.
Threatening :
As this is the one of the Rice Bran oil in Bangladesh, there is very few Competitor for same
products. But there is a competition from other oil company products.
PRODUCT PROFILE
3.1 Details about Rice Bran
Rice Bran:
It is the outer brown layer of rice grain. Rice bran forms 8% of grass Milled rice contains 15-20%
oil. 0.4-1.5%wax, 5-8% Proteins, 40-50% Carbohydrates, and 5-8% Fiber. Rice bran processing
& production of oil is increasing year to year.
Post-Milling Precautions:
To avoid the lipase action rice bran has to be stabilized immediately on Production.
Common Name:
Rice Paddy (English), Chal (Bangla), Chawal (Hindi), Dhan (Punjabi) Bhatta (Kannada)
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Bran is a layer b/w husk & endosperm of the paddy grain. There are 18,000 varietes of rice in
the world.
Name for bran: Rice bran, Chal (Bangla)
The Major Rice producing contents are Asia (Roof mills of the long Himalaya range & its
radiating arms in South East Asia). Africa & America.
3.2. Cultivation condition :
Short day plant Rain fed/ irrigated Crop= 39oS lalitude (Australia) to 45o N latitude Growing =
(Japan) 50o N latitude (china) below sea level to 1978 meters high above sea land.
Temperature = 16-20o C at flowering time & 18-30oC
Condition = during ripening
Duration= 85-90 days to 240 days in different varieties
Soil = Reverine, aluminum, red yellow, red loamy hill & Sub –Montane, terrain,
laterite, coastal aluminum red sandy, Mixed red & black & Medium and black.
Seasons= Kharif & Rabi
Harvest = Harvested when Moisture content of the grain is 20-25% Paddy is dried
under shade to 13-14% Moisture before milling.
Grain colour = white & Red
Yields of Rice = All India average 1.67 tones hectare.
3.3 Rice Bran Oil:
Bangladesh though not being significant in Rice manufacture, but a huge area is used to
produce rice thus having potential to produce about 5 lakh tones of Rice Bran Oil per annum
form outer brown layer of rice called ‘brain. Currently the industry is processing about huge
tones of Rice bran by solvent extraction process producing about 18 lakhs tones of Rice Bran
Oil per annum, out of which 16.0 lakhs tones is of edible grade and the balance 2 lakh tones is
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none edible grade. The research Instates in Bangladesh, India & aboard has found this oil to
be“Heart friendly Health oil” with following unique properties beneficial for maintaining good
health.
a) It is good for heart, it contain oryzanol which increase HDL (good) Cholesterol and lowers
LDL (bad) Cholesterol & triglycerides.
b) It has the ideal ratio of saturated Mono unsaturated & polyunsaturated fatly acids & is the
closest to world health organization recommendation.
c) It is good for skin it contain squares, which improves skin, tone delays wrinkle formation.
d) It has hydroxy 3 Methoxy Cinnamic acids which stimulates hormonal secretion & rejuvenates
health.
e) It has tocotrienol which helps in maintaining balance of nervous system.
f) It has tocotrienol which has anti-thrombotic & anti-cancer properties.
g) Food tried in refined Rice Bran Oil absorbs 15%.
3.4 Cooking advantages of rice brain oil:
a) Nutritionally Superior
b) Contains more Micronutrients
c) More stable at higher temperature
d) Longer shift life
e) Oil is less sticky, saves Soaps
f) Economical 15% less absorption of oil during frying
g) Gives better taste & flavor to food items.
h) Frying takes less time, saves energy.
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3.5 States of rice bran oil in other countries:
a) Rice bran Oil is extensively used in Japan, Korea, China, Taiwan, and Thailand as premium
Edible oil.
b) In Japan, Rice bran oil is more popularly known as“Heart oil”.
c) In recent years, U.S. Scientists has also shown tremendous interest in the cholesterol
lowering properties of rice bran oil.
d) In western countries rice bran oil has acquired the status of a ‘health food’.
3.6 Model Contract for Edible/Commercial Grade Raw Rice
Bran
Annexure.. Dipto File………..
4. MARKETING MIX STRATEGY
Marketing mix refers to the amounts and kinds of marketing variable, the firm is using at a
particular time under marketing mix we include product mix, distribution mix, communication mix
and price mix. The credit of introducing this concept of Marketing mix goes to Professor N.H.
Borden” of Harvard Business School of America.
According to N.H. Borden:
“Marketing mix refers to two things {a} a list of important elements or ingredients that makeup
the marketing programme, and {b} the list of forces having bearing on the marketing
operations”.
According to Prof. Philip Kotler:
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“The firm’s task is to find the best solution for its marketing decision variable; the settings
constitute its marketing mix”.
According to Mr. Jerome Mc Cathy, an American Expert:
“Marketing to the pack of four sets of variables namely, product variable, price variables,
promotion variables and place variables”.
In other words, Marketing mix is the blend or the compound of all the marketing efforts around
the found ingredients namely product, price, promotion and place. These ingredients are
interrelated and all revolve round potential consumer satisfaction as the local point.
Nature of marketing Mix Strategy:
Marketing mix is a dynamic process. If changes with chance in needs of consumer.
Marketing mix is a difficult task as it involves the bleeding id decision in four different area of
marketing i.e., the product, price, promotion and place. In fact, effectiveness of marketing efforts
depends upon the decision made in cash of these found areas of their proper
combinations.
Objective of Marketing Mix Strategy:
The basic objective of marketing mix is to satisfy the needs of the customer in the most
economical manner. The emphasis of marketing mix is to satisfy the needs of the customer
effectively.
The elements of marketing mix strategy:
Precisely, marketing mix is the master mix of sub-mixes namely, product mix, price mix,
promotion mix and place mix as a set of good many variables. These elements of marketing
decisions are over which the firm has content.
Elements Of Marketing Mix Strategy:-
Product Mix Strategy
Price Mix strategy
Promotion Mix Strategy
Physical distributed
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Meaning & Objectives of Marketing Mix Strategy
1) Product 2) Pricing 3) Promotion 4) Positioning
5.1. Product strategy:
The product is the most tangible and important single component of marketing programme. The
product policy and strategy is the corner stone of a marketing mix, without product, there is
nothing to distribute, nothing to promote, nothing to price. If the product fails to satisfies
consumer demand. No additional cost on any of the ingredients of the marketing mix will
improve the product performance in the market place. A product strategy is a firm’s plan for
marketing its products greater emphasis is laid on the product objectives for this reason, the firm
develops a product design to achieve the ret objectives.
The company is producing only a single type of edible oil that is Rice bran oil our oil is different
from other regular edible oil, our oil is been called as HEAT oil in Japan as it contains original
which increases HOL (good) cholesterol and lowers LDL (bad) cholesterol & triglycerides. Over
oil contains sequence which improves skin tone, & delay wrinkle formation over oil contain
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vitamin E, which helps in maintaining balance of nervous system. Over oil observes 15% less oil
which can be lower in calorie in take.
Cooking advantages of Rice Bran oils:
High nutritional content
Longer Shift life
Oil is less sticky, saves soap
Gives better taste & flavor to food items.
Dipto oil is in market low in 3 different type of packing & in different quality
Packing:
The oil will come in 3 different type of packing that is in pouches and 2nd in the Tin and 3rd it
comes in bad debts.
Quantity:
Our oil comes in 1 /2 liters, 1 liter 5 liters that is in pouch, and 15 kg Tin and 180 kgs in barrels.
The pricing will be changing according to market demand and competition.
5.2 Pricing Strategy :
Pricing is an art of translating into quantities terms (taka and paisa) the value of the product or a
unit of service to customers at pain of time. Price is a major marketing tool and helps in directing
the products to a specific consumer regent; price is a powerful instrument in which both the
buyer and seller are keenly interested. It is the price of a product or a service that ensures a
decent return of investment, guaranteed table, economic structure creator, maintains and
extends market. Pricing task involve establishing pricing objectives. Identifying the factors
governing the product value in monetary terms, formation of pricing policies and the strategies,
implementing them and controlling them for the best result. Pricing plays a very vital role during
sales of a product. As we can find a large number of products in the market with the some
contents, so by this consumer’s will be having choice to buy, so while fixing the price the
company will look at the prices of the other competitors in the market & we will fix the price by
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keeping the Low class consumer’s also. As Rice bran oil is now started growing in the market,
the company had decided to offer the product is reasonable price, which would help the
company product to reach more people, by the price that the product will be kept.
5.3 Promotion Strategy:
Promotion strategy deals with efforts undertaken to increase and improve demand and sales of
the products of the firm.
Promotion also plays a very vital role the success of a product. The way a product is promoted
clearly has a major impact on the way it succeeds. Bad promotion can lay a good product to fail
in the market. Hence the promotion strategy adopted by a company should be carefully planed
& should be meticulous by nature. Today’s Markets, regardless of your product, are full of
competitors, promoting a product into this environment requires more than just a fortastic
Product, but specialized product launch knowledge & a Proper Process.
The goal of a product is to establish a product as the leader in the field, the first in a class, a
risk-free alternative. But to accomplish this goal two thing need to happen, first, an alternative.
But to accomplish this goal two things need to happen; first an untarnished perception & image
for the product & company must be created; & second, a comprehensive promotion plan, that
ensures that every high leverage / cost –justiable action is planned for and professionally
executed must be implemented “In the most successful ventures planning for the product
promotion starts along with preliminary design & development,” Gooze says “ Positioning, Sales
channels & distribution, adverting & public relations all need to be addressed & should be given
as much time & energy as the development & design stage. Synchronizing marketing activities
with product development is critical for success.”
Among the key components included is a Strong Product promotion
plan.
a) Clearly defined sales objectives
b) Building a large consumer base
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c) Good packaging & branding
d) Assured sales channel realness
e) Promotional functions in place
f) Resources to track, Monitor & account for execution
g) Good advertising & vast coverage
h) Catchy Punch line
i) Maintaining quality & proper quantity
“Products often fail because companies don’t manufacture adequate quantities of the new
product and make them available to prospective customers”. Webb Says, He suggest creating a
management team with responsibility for, among other things, ensuring that all level of the
company are prepared to handle demand for the product and to train staff in its use for
customer support.
Publicity is the most cost effective way to launch your company’s latest product regardless of
whether you plan to Market your product on a local, national or international scale, with publicity,
you can introduce a product to thousands, even millions of people literally overnight and gain
valuable product marketing research in the process.
IMA defines publicity as mass communication with potential customers through the media
publicity is the process by which your company’s new product marketing “Sales Pitch” is
transformed into a editorial format or news.
Editorial Coverage of new product marketing launches can take many forms, but the most
profitable type usually occurs in print media such as newspaper & magazines.
Beat your competition to the market with a professionally launched product.
a) Present your product & company with the very best image possible.
b) Ensure the alignment of your marketing, sales customer service, & interest, marketing
activities for maximum impact.
c) Eliminate the perception of risk by the market or your potential customer base.
d) Enhance your product knowledge base.
e) Ensure that no delays occur that could adversely affect your product in the market.
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f) Ensure that no critical action fall through the cracks & come back to haunt you late.
g) Keep your product on track so you can beat the competition in the market.
h) Eliminate the risk & expense of a re-launch
i) Structure a product launch that will achieve your market & early sales goals.
For your initial product launch, your best reception will be found in the relationship buyers.
These are business customers who like your products & services. They have built a relationship
with your employers. They think of your company as their primary superior of your category.
They do not want to be bothered to have to shop around every time they make a new purchase.
They look for quality, good service, helpfulness. Friendship and information, if you can supply
these things, they will stick with you when your competition is on sale. If you have a new
product, they will be the first to want to hear about it. It is to these good people that we look for
our product launch.
What does a customer want?
Sometimes companies mistakenly conduct interviews with intension of gathering new customers
for existing products.
“If the goal is product development, you shouldn’t be sending researches into the field to debit
price or performance”. Gooze says “This should instead be a time for rigorous listening Ask
open-ended questions that are designed to reveal genuine needs & feelings among your
customers. And then listen to the answers”.
Ideally, a cross junctional a product development team including representatives from
manufacturing, engineering operations, marketing etc- should conduct these interviews this
way, critical functional areas arrive at a keener understanding of what the end-user needs & the
environment in which they would use the intended product.
Of course, not all companies can afford to do this so whether you hire an outside marketing firm
or use limited resources to conduct one customer interviews, these are the types of questions
you need answered.
a) Who are our customers?
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b) What is their problem or seed?
c) How will the proposed new product answer that need or solve that problem?
d) Does the new product offer advantages over what the competition has? e) What factors will
go into the customer’s decision to purchase the new product?
Execution:
How will the product reach customer? Are you established sales channels. Up to the new
challenge?
“When promoting a product, you need to step back & assess its fit with existing channels”
Gooze says, for example, if the product is a features reduced version of an existing product that
is being targeted to a mass market, there are some questions you should ask.
a) Do you existing distributors serve mass marketing retail outlet.
b) Does our current pricing schedule take factors like mass market competition into
consideration?
c) If we lower our price, how much can we offer to spend on the sale of each unit at this lower
price?
d) Can we reach this market with our current sales force?
“Determining your pricing strategy & reviewing your sales channels should be happening while
the product is being positioned, as there factors will have a definite impact on the positioning
message.”Gooze Says.
In situations where one company partners with another to introduce a new product, web advises
strict due diligence before the execution phase- thus ensuring that each partner is fully
committed to the process & has the necessary financial resources & familiarity with the market
place.
“Whatever the circumstances have clear cut performance objectives in place & be ready to
measure than carefully” he add’s “Use launch team to track progress & make it responsible for
communicating results to senior management.”
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5.4 Positioning:
“Positioning is not about features & specifications it is the care message that differentiates your
product from everything else in the market place. A unique product identifies strong tunes the
market’s perception of your product and in turn reinforces your company’s overall positioning”.
To make sure everyone is working toward the same goal, certain milestones should be
established.
a) Have we identified all necessary launch channels?
b) What number of new product do we plan to sell by a specific date?
c) When will the product be ready to launch at rational trade convection?
d) Are sufficient Stocking orders placed with key distributors?
e) How can we grow the product into a 5-10 percent market entrenchment by a specified date?
“Break down every conceivable launch component “Identify customer data basis where
appropriate send now product sample to industry & trade publication reviewers, do everything
necessary to create a strong, functioning life support system for that product”.
Planning for these activities should be as simple as possible, he adds “We not talking about
writing a so page launch overview document. These tasks should facilitate the most favorable
development of the new product- that’s all.
Approaching the customer with the new product can be the most delicate situation of all, which
is why “having your ducks in a row”, is so important. If existing customers encounter design
flaws in the new product, they may forgive and forget, but its unlikely new customers will feel the
same way. Also, the new product may not be the right “fit” with all of your current customers.
Prepared reduces the risk that the company’s credibility may be managed by missteps at the
launch time.
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“In order to establish the new product’s identity in the market place, the core message must be
repeated over and over again” this requires consists positioning within all of the company’s
marketing communications, including.
a) New & Current product literature
b) Press releases
c) Product specifications
d) Sales presentations
Slogan or punch line is the one of the most important aspects of promotion. What is your
slogan? Is the slogan consistent with your positioning strategy? This question needs to be
asked by the management to see top it that their product is promoted properly. Did you provide
any sketches of your creative ideas? Example: newspaper advertisement, T.V advertisement,
coupon, radio script.
To operate successfully in global economic scenario, along with steady it is very important that
the company also develops a brand image for its product & positive corporate identify among its
buyer & suppliers. Corporate brand & image building activities are one of the most important
activities for the strategic business planning using of a company.
6. ANALYSIS AND INTERPRETATION OF SURVEY DATA
With the object of knowing consumer attitude towards refined rice bran oil and to know the
market share of various brands one types of filed survey was conducted on various aspects.
1) General Refined oil Survey
GENDER
GENDER NUMBER PERCENTAGE
Male 07 28
29
Female 18 72
Total 25 100
Source: Survey data
Table: 1 Reveals that among the 25 respondents who are interviewed 07
(28%) are male and the reaming 18 (32%) are female.
Source : Table 1
AGE
Table 2: The age groups of the consumers interviewed is presented.
Age group in years Number Percentage
20-30 6 24
30-40 5 20
40-50 9 36
50 & above 5 20
Total 25 100
Source: Survey data
About 24% of the respondents are in the age of 20-30, 20% in the age group of 30-40, 36% are
in the age group of 40-50& 20% in the age group of 50 and above.
Source : Table 2
MARITAL STATUS
Table 3: The marital status of the consumers interviewed is presented
Marital status Number Percentage
Married 20 80
30
Unmarried 05 20
Total 25 100
Source: Survey data
The above Table 3, shows the No. of Married and unmarried consumers among the 25
interviewed 20 members are married (80%) & 05 members are unmarried (20%). By seeing the
above 3 tables it can be interpreted that a large No. of respondents are of middle aged, married
female members. As refined oil is a product involved in cooking. As cooking is more done by the
females? This trend can be seen.
Source : Table 3
INCOME
Table 4: Showing the incomes of respondents
INCOME (in Tk.) Number Percentage
10000-15000 10 40
15000-30000 09 36
30000&above 06 24
Total 25 100
Source: Survey data
About 40% of the respondents are having the income around tk.10000-15000, 36% are having
the income around the Tk.15000-30000, and 24% are having the income around 30000 &
above.
TYPES OF REFINED OIL
Table 5: Showing type of refined oil used
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Type of refined oil Number Percentage
Sun flower oil 12 48
Soybean oil 3 12
Mustard Oil 8 32
Rice Bran Oil 2 8
Total 25 100
Source: Survey data
The above table reveals that the large No. of consumers use sun flower based refined oil. As lot
of different types of oils are available in market. Rice bran is holding at the fourth place in the
above table according to survey.
BRANDS OF OIL
Table 6: Showing brand preferred
Brand Number Percentage
Pran 8 32
Sun Flower 1 4
Rupchada Oil 10 40
Meizan 4 16
Rice Bran Oil 2 8
Total 25 100
Source: Survey data
By there above table we can come to know that sunflower based refined oils are most
commonly used type. And as a lots of brand products are available. Not one single brand has a
significant market share. The Rupchada holds the 1st place in the table.
Source : Table 6
MOTIVATING FACTORS
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Table 7 : Showing factors motivating consumers
Factors Number (25) Percentage
Health 14 56
Price 13 52
Quality 05 20
Advertising 08 32
Dealers influence 07 28
Quantity 02 8
Brand 01 4
Source: Survey data
The table no.6 shows us that the people first give preference to there and there family’s health &
they look at price before purchasing & the advertisements & dealers influence also motivate the
consumers to buy the product.
About 56% of health factor motivated the consumers & about 52% of price factor motivated the
consumers and advertising 32%, Dealers influence 28%, quality 20% motivated the consumers
& about 12% factor covers quality and brand
Source : Table 7
QUANTITY
Table 8 : Showing Quantity Needed by the consumers
Liters Number Percentage
Half Liters 14 56
One Liters 5 20
Five Liters 13 52
10 Liters 8 32
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Total 25 100
Source : Survey data
Most of the people during the survey about 56% of people prefer half liters, 20% people prefer 1
liters, 52% prefer 5 liters & 32% prefer 10 liters.
OPINION
Table 9 : Showing opinions of the consumers towards 5 point Likrd scale.
Opinion Number Percentage
Excellent 4 16%
Good 11 44%
Satisfied 9 36%
Not Satisfied 1 4%
Bad 0 0%
Total 25 100
Source : Survey data
This 5 point Likrd scale table shows us the opinions of the customer and most of the consumers
opinion about there refined oil is good 11(44%) and satisfactory 9(36%).
On the basis of survey findings some suggestions are provided to the Rice Bran Oil
companies are:
Advertising:
In the present world of technology, advertising plays the major role in marketing of a product.
Advertising is a social and business process responsible for the mass communication of the
information. If the product is the lack. Advertising is the key to open the product to the market. It
is only one mediator between producer and ultimate consumer, which makes the consumer to
see, to think and to feel about the product and it also, tempts the consumer to buy the product.
Advertisement can popularize and establish an image on the product and build up reputation
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and good will for the producer. This show that in present world advertising can create wonders
in the market advertising may be by means of television or by using board cast media or by
using magazines as the media.
By survey it has been seen that most of the consumers prefer television advertising as they
spend most of their free times in watching television.
So the company gives more advertisement in Television and also through magazines,
newspapers, internet etc., to attract the new customers from the corner and corner of the
country.
Sales promotion:
Sales promotion has been the fastest growing segment a promotion mix and has become a
major factor in success of marketing in recent years, "sales-promotion are the achievements of
short-terms marketing objectives by schematic means". Sales-promotion is a direct and
immediate inducement that adds an extra value to the product. So it prompts the sale force,
dealers and consumers to buy the product sales. Promotion carried along with advertising and
publicity creates effectiveness in the selling activity the company has not undertaken the sales
promotion at the expected level. The company should give importance to the following sales
promotion.
i. Free offers should be given such as if your buy one nail enamel you will get another free
ii. By providing special discount during festival times
iii. By providing special price off on buying multi packs
iv. Providing special bonus offers, free gifts, free coupons to wholesale dealers and retailers
because they are the people who actually sell the product and they must be mentioned to sell
more specially.
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v. Sales contest to the sales force to double or multiples their selling interest and efforts. By this
the hidden competitive spirit is boosted and the overall performance of the sales-force is
improved.
Attractive packing:
Packing plays the most vital role in marketing the cosmetics successfully packaging is an
activity which is concerned with the protection, economy, and convenience with the promotional
considerations. An attractive package maintains the brand image and creates an interest in
minds of the customers and an impulse to by. So the packaging should be done in such a way
that the contents can be stored for long time and convenient for transportation.
The company must also consider change of package to
1. Attract new customers and expand the market
2. Create stimuli for demand
3. Cope with new innovation in the field of packaging
Innovation:
Product innovations have become an important part of the companies marketing strategy today.
Both establishing and established firms are inventing new products of brining about changes in
their original products to increase and maintain the consumers. Now a day’s people expect
something new. They purchase such products, which have something special in them.
Therefore innovations are must.
Distribution:
The distribution network of the company is good, but rather than this the company should make
quickly flew of products the distributors. If in case of delay in supply, people will start moving to
next best alternative.
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The company should take steps to supply its products to distributors with 3 to 4 days.
The company should appoint effective sales person in rural and district area to boost the sales.
Periodical survey of the market is necessary by the company to know changing attitudes
regarding to products.
Suggestions of the users:
1) They have to give lot of advertising in different kinds of media, sales promotion which is
helpful in boosting the sales.
2) They must inform the customers and retailers about new product by visiting door to door & by
distribution of free samples.
3) They must survey about there products to know other refined oil.
4) The colour should be changed in order to attract the consumers.
5) They must concentrate more on the packing of 5 & 10 liters can.
Suggestions of dealers:
1) They must note down any complaints about the product or any defect and lodges with the
company’s sales man.
2) They must supply the product, whenever there is demand because it may lead to diversion of
mind to other product.
3) They must also study the strategy of other products i.e. its competitors.
4) They must be very alert to changing situation.
5) They must provide special gift offers for selling a targeted amount of boxes.
Own suggestions:
1) They must give add’s in different media but not to stick on to the single type.
2) Cooking competitions should be arranged in the cities to attract the customers.
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3) Price should be less than the other products.
4) By the survey most of the consumers suggested to change the colour.
8. Conclusion:
We have discussed the business plan of Rice Bran Oil throughout the report, my main concern
was to analyses the current market situation and give suggestion to the firm so that they can
initiate Rice Bran Oil Project with better promotion strategy.
The result of the survey proves that Bangladesh although being price conscious people now are
concentrating on the health and quality factor as well. To have a dominant product in the
market, sales promotion is very crucial.
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The survey conducted in Dhaka that is one of the fastest growing cities, well known for
educational institution and famous in business field and recognized as a business and finance
hub, has proved a very good market for refined oil.
In the present competitive market the consumers are described as the king. Thus it is very
essential that the trading co., should manufacture products and services that satisfy consumer
needs. Consumer orientation is importance for creating the brand image in the minds of the
consumer thus it is very important for creating brand image in the minds of the consumer.
ADVANCED
BUSINESS PLAN
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FOR
PREMIERE GROUP
RICE MILLING AND BY-PRODUCT MANUFACTURING FACILITY
Executive Summary
Our initial statement to financial lenders, this rice milling and by product producing business plan, is a candid disclosure of the Premiere Group business proposal – our intent is to set realistic business expectations, and eliminate any questions about the profitability of the business venture.
We have a vested stake and financial commitment in the success of this business. Our intent is to have a definitive business, financial, and marketing plan that not only serves our need for capital financing, but is utilized as our daily business roadmap. We have taken all precautions to
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validate our business and financial models, focusing on realistic projections. We have accomplished this as follows:
1. Our Financial model is rooted in industry facts, not optimism. We have based costs on our vast industry and practical experience.
2. Our business concept was derived from detailed Market Analyses.
Instead of building a business around a preconceived concept, we analyzed the market findings and built a concept around our customers. In other words, our business is built to service an unmet consumer ‘want’.
3. Deep Management Experience. Our management has 14 years of experience in the rice milling business.
Premiere Group proposes to acquire and take over an existing rice mill business in Sylhet, Bangladesh and build upon the business model by introducing new business and marketing strategies, increasing the production by investing in new and additional machinery and equipment, and increasing the turnover and profitability by producing a wide range of by-products such as cooking oil, polish (rice bran), broken rice as well as milling rice.
The primary business will involve establishing new and managing existing strong long-term relationships with local farmers (with whom we are already in negotiations) to purchase grain for milling on a regular basis, milling the grain to produce rice and other by-products, and then sell the products at a wholesale level to traders in and around a 100 mile radius of the Sylhet area. In addition, we will be setting up a drying facility to offer local farmers and traders a service where by we will dry their grain for them at a cost, as from our experience, we recognize wet and moist grain as being a large problem in the area which businesses don’t seem to have the ability to overcome. We already have access to a strong network of traders with whom our management team has been doing business with over the past 14 years. We aim to build on these existing relationships with traders and also work towards acquiring new customers in line with our marketing strategies.
Mission
Premiere Group will be an inspiring and interesting rice milling and by-product manufacturing business. The mission is to not only offer high quality products but also an efficient and superior service - customer satisfaction is our paramount objective.
Employee welfare, participation, and training are equally important to our success. Everyone is treated fairly and with the utmost respect. Our employees will feel a part of the success of Premiere Group.
We will aim to offer fair profits for the owners, and a rewarding place to work for the employees.
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Premiere Group seeks to serve rice traders by exceeding minimum acceptable quality standards and by providing the highest quality product at the lowest possible price. We value our relationships with current and future customers and hope to communicate our appreciation to them through our outstanding, guaranteed product quality, personal service, and efficient delivery. Our commitment to our customers and the country of Bangladesh will be reflected through honest and responsible business.
Keys to Success
1. Product Quality: Producing and offering all products at a consistently high level of quality.
2. By-products: Satisfying all of our customers (traders) needs by offering all required products ‘under one roof’ and giving them the opportunity to expand their businesses and increase turnover & profitability by offering their customers other by-products, such as cooking oil.
3. Cost Control Focus: We will enforce strong cost control standards and control costs at all times. Cost Control will be an integrated function of the business from the outset. Cost Control is about managing the numbers - interpreting and comparing the numbers that impact the bottom line.
4. Strong working relationships with local businesses: Establishing and maintaining strong working relationships with local farmers, wholesalers, and traders.
5. New Machinery and Equipment: Bringing the new facility to maximum production within 3 months of purchasing and installing the production facilities.
6. Additional Services: Offering additional services such as grain drying (which our market research tells us that no other businesses currently offer, but which there is a huge demand for because of the quantities of moist grain in the area). We believe this will differentiate us from our competitors massively, and result in increased turnover & profitability.
Objectives
Premiere Group will increase production from milling 100 x 40kg bags of grain per day to 500 x 40kg of grain per day for the first 3 months and then 900-1000 x 40kg bags of grain per day there afterwards by investing in new and additional machinery and introducing new quality control and production standards.
Premiere Group will maximise production (and profitability) and utilize all aspects of the grain by producing by-products such as rice, cooking oil, polish (rice bran), husk, and broken rice.
Sell all stock of milled rice and by-products within 2-3 days of production.
Increase sales substantially within the first year of operation.
Look to open a second and third site in the second and third years, respectively.
Company Summary
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Premiere Group will enter into contractual agreements with local farmers (some of which we already have long-term business relationships with) to purchase grain at very competitive rates at the times of harvest (June/July and November/December) and also continue to purchase more grain throughout the other months of the year from farmers and storage facilities with whom we will have agreements with. We will then mill the grain to produce rice and other by-products: cooking oil, polish (rice bran), husk, husk coil, and broken rice. All of these products will then be sold at a wholesale level within 2-3 days of being produced via local traders with whom we will also have agreements and contracts.
Company Ownership
Premiere Group is a UK based Limited Company that is made up of a management team that has 17 years of Rice Milling and Trading experience in Bangladesh, 21 years of Food Wholesaling and Restaurant experience in the UK, and 10 years of Sales, Marketing and Accounting experience in the UK, Europe, and Dubai.
Company History
The Rice Mill that Premiere Group proposes to take over and develop has been successfully operating as a family-run business for over 14 years, milling around 100 x 40kg bags of grain per day. Premiere Group’s plan is to acquire the Rice Mill and upgrade the machinery and equipment to increase productivity and profitability. With the new technology installed Premiere Group will have the capacity to mill 500 x 40kg bags of grain per day plus by-products for the first 3 months, and then approximately 900-1000 x 40kg bags of grain per day plus by-products there afterwards.
Start-up Capital
Premiere Group's Start-Up costs consist mainly of the purchase of new machinery & equipment, a small building extension, and also a goodwill sum to acquire the business from its current owners.
We will purchase the following Current Assets on acquisition of the business:
Stock: Tk. 1,350,000 worth of grain from local farmers to begin milling.
We will purchase the following Long-Term Assets:
New Machinery & Equipment: An investment of Tk 4,550,000 is required to upgrade existing and introduce additional machinery and equipment in order to increase the productivity and also to allow the manufacture of by-products. A detailed breakdown of the particulars of the machinery and equipment can be found later in the Business Plan.
Building Extension: An investment of Tk 3,375,000 is required for a building extension to allow for storage facilities.
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In addition, we have agreed to pay the current owners of the Rice Mill a goodwill fee for acquiring the business and taking over the premises, the Goodwill fee is to be calculated. Plus, a monthly rent of Tk 67,500 for the premises and land.
Location & Operations
Location
The site that Premiere Group will be taking over is currently located at:
Sheikh Abas,
Vill: Joihirpur,
District Jaganathpur,
City: Sylhet,
Bangladesh.
This area and market has been carefully selected and tested for the necessary demographics and access to farmers & markets necessary to meet the goals laid down for profitability.
Operating Criteria
The new and improved site will operate for 16 hours per day, rotating staff shift patterns.
Products
With the new machinery and equipment installed, Premiere Group will produce the following products from the processing of purchased grain:
Rice
Polish (Rice Bran)
Cooking Oil
Husk (Coil)
Broken Rice
Services
In order to differentiate us from our competitors we will also offer the following services:
Delivery (we will offer customers the option of having their orders delivered to them with our delivery truck)
Drying (with our new state of the art drying facility we will offer a grain drying service whereby farmers and traders will be able to bring their own grain to be dried)
Storage (depending on our own stock levels, we will also offer storage services within our secure 5,000 square foot storage facility)
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Products & Services Summary
Competitive Comparison
In order to differentiate ourselves from our competitors, we have utilized our resources to give us the following Unique Selling Points:
Consistent Supply/Stock: We will be setting up agreements and contracts with local farmers for the supply of grain to ensure that we have a consistent supply all year round.
Competitive Pricing: Having contractual agreements with our farmers will ensure that we are purchasing the grain at competitive rates, and also maximizing production and utilizing every aspect of the grain to produce by products will also result in the products costing us less, allowing us to pass savings onto the traders.
Grain Drying Facility: Our state of the art grain drying facility will ensure that all grain is totally dry before being processed and thus of a high quality. Also, we will offer the drying service to other farmers and traders where we will dry their grain at a cost.
By-products: Satisfying all of our customers (traders) needs by offering all required products 'under one roof' and giving them the opportunity to expand their businesses and increase turnover & profitability by offering their customers other by-products.
We have approximately 15 other rice mills in the area whom are competitors, however, our research tells us that they do not have the production facilities that we are proposing and are not able to offer services such as grain drying which we believe gives us a big competitive edge.
Sales Literature
Unlike traditional rice mill businesses that rely purely on word-of-mouth marketing, Premiere Group proposes to conduct many marketing activities to bring new business on board. These will include leaflet drops in the neighboring towns, an advertising campaign, and sales agents visiting local farmers and traders to present the Premiere Group concept to them.
Sourcing
The Premiere Group site is ideally situated in an area where we already have strong relationships with local farmers and traders with whom we will be signing contracts to purchase their grain at competitive rates, and also to support them with labor and financial issues when needed. All contracts will be secured six months in advance of harvest.
Technology
Improvements in technology are vital to the Premiere Group business model. New machinery and equipment will allow Premiere Group to have an edge over its competitors, maximise
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production, reduce costs, increase profitability, and expand the business in terms of products, services, sales and turnover.
As part of our extension of plant, we propose to invest in the following machinery and equipment:
Machineries CostRice Mill 1,550,000 Diesel Generators 1,400,000 Transmitter/ Transformer
300,000
Oil press 800,000 Bottle Capping Machine
200,000
Briquette Machine 300,000 Total 4,550,000
Market Analysis Summary
Bangladesh has a primary agrarian economy. Agriculture is the single largest producing sector of the economy and comprises about (data released in November 2010) of the country's GOP and employs around 45% of the total labor force. With 35.8 million metric tones produced in 2000, rice is Bangladesh's principal crop. However, despite this, our extensive market research shows that there is still a large shortage of rice and rice based by-products in Bangladesh - most of which is likely to be linked with increases in the population. We believe that there is definitely room in the market for our business because of our competitive pricing, extensive range of by-products and offering of services that appear to be rare to come by.
Instead of building a business around a preconceived concept, we conducted market research and built a concept around the needs of the market.
Market Segmentation
The potential customer groups for Premiere Group are:
Rice Traders within a 100 mile radius Local Farmers that require the use of our grain drying facility Local Farmers that require the use of our storage facilities Cooking Oil Traders within a 100 mile radius Polish (Rice Bran) Traders within a 100 mile radius Broken Rice Markets Local Coil fuel consumers
Competition and Buying Patterns
Premiere Group plans to stay one step ahead of its competitors by continually meeting customer's need through the consistent supply of rice all year round. We recognize that the main months for the purchase of grain are the harvest months of June/July and
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November/December and whilst most mills tend to be low on stock for the rest of the year, we plan on tackling this issue by having contractual agreements with local farmers whereby we are able to purchase surplus grain which can either be stored by the farmers for a cost, or which can be stored in our in-house storage facilities. This allows us to have a constant supply of rice and by-products consistently right the way through the year, and not just at periods of harvest.
Main Competitors
There are around 15 other major rice milling businesses in the area that we intend to cover. They are:
Koilash Auto Rice Mill, Gotatikor, Alompur BISICDaily Rice Milling Average in Peak Season: 600 x 40kg bags
Shuvo Auto Rice Mill, Gotatikor, Alompur BISICDaily Rice Milling Average in Peak Season: 400 x 40kg bags
Jedda Auto Rice Mill, Gotatikor, Alompur BISICDaily Rice Milling Average in Peak Season: 300 x 40kg bags
Shajalal Auto Rice Mill, Gotatikor, Alompur BISICDaily Rice Milling Average in Peak Season: 500 x 40kg bags
Meghna Auto Rice Mill, Gotatikor, Alompur BISICDaily Rice Milling Average in Peak Season: 600 x 40kg bags
Sonar Bangia Auto Rice Mill, Gotatikor, Alompur BISICDaily Rice Milling Average in Peak Season: 600 x 40kg bags
Khaja Auto Rice Mill, Technical Road, South Surma, SylhetDaily Rice Milling Average in Peak Season: 400 x 40kg bags
Oly Auto Rice Mill, Technical Road, South Surma, SylhetDaily Rice Milling Average in Peak Season: 500 x 40kg bags
Adorsho Auto Rice Mill, Technical Road, South Surma, SylhetDaily Rice Milling Average in Peak Season: 500 x 40kg bags
Halima Auto Rice Mill, West Kajir Bazar, SylhetDaily Rice Milling Average in Peak Season: 300 x 40kg bags
Ahmed Auto Rice Mill, West Kajir Bazar, SylhetDaily Rice Milling Average in Peak Season: 400 x 40kg bags
Sahin Auto Rice Mill, Sheikh-Ghat, SylhetDaily Rice Milling Average in Peak Season: 700 x 40kg bags
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Bengal Auto Rice Mill, Sheikh-Ghat, SylhetDaily Rice Milling Average in Peak Season: 700 x 40kg bags
S. L. Auto Rice Mill, Sheikh-Ghat, SylhetDaily Rice Milling Average in Peak Season: 600 x 40kg bags
Surma Auto Rice Mill, Sheikh-Ghat, SylhetDaily Rice Milling Average in Peak Season: 500 x 40kg bags
Competitor Analysis
Our research shows us that the competitors listed above only mill these amounts throughout the peak seasons i.e. for approximately 5-8 weeks after harvest which typically takes place in June/July and November/December. For the rest of the year their production output runs at only a fraction of what they produce during peak seasons.
Premiere Group; however, propose to consistently mill 800-1000 x 40kg bags of Rice, plus by-products every single day of the year. We will accomplish this by having a constant supply of grain from local farmers whom we will have contractual agreements with. Also, our new state of the art machinery and equipment will have the capacity to produce these large amounts with ease. We believe this gives us a huge advantage over our competitors.
Distribution Patterns
We will be using our newly acquired truck to transport our rice and other by-products to markets to allow traders to purchase it, as well as offering our customers the option of collecting it from our premises, or getting it delivered by us at an additional cost.
Strategy and Implementation Summary
Our strategy is to increase production output capabilities through investment in new technology to allow us to service the need for more rice and by-products, and also to collaborate with local farmers to ensure that we are able to offer a consistent supply right the way through the year.
We will focus on establishing strong, long-term business relationships with local farmers and traders, and ensure we operate in a totally ethical manner.
Competitive Edge
As already mentioned, Premiere Group has a combination of factors that help give them a competitive edge. These are as follows:
1. Established relationships with local farmers and traders & wholesalers.
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2. Contractual agreements with local farmers to ensure a consistent supply of grain to produce rice and by-products throughout the year.
3. 17 years management experience in the rice milling industry.
4. Competitive pricing due to maximising production, reduced costs, and utilising all elements of the grain to produce by-products and therefore allow final products to be sold at a more competitive price.
5. Additional services and revenue streams i.e. grain drying facility, storage facility, and optional delivery facility.
6. High quality products due to the use of new, state of the art machinery & equipment.
7. Giving traders/customers a wider choice of products by offering them by-products to help them grow and expand their businesses by offering their customers more choice.
8. Well trained, experienced and skilled staff.
9. A strong, customer service focus with the aim to continually build strong, long-term relationships with farmers and traders.
10. Targeted Marketing campaigns and a team of dedicated sales agents to deal with farmers and traders.
Marketing Strategy
Typically in the rice milling industry, very little or no marketing and advertising is done at all other than word-of-mouth. We at Premiere Group however, have vast knowledge and experience in Sales & Marketing. Our management team has over 10 years experience in Global Marketing, and we believe that despite the success of any business, Marketing is essential.
We will be setting up a dedicated team of Sales Agents whose job it will be to constantly be out on the road visiting farmers, traders, and wholesalers, and building new and managing existing relationships with them, and continually looking for new clients and business opportunities. We believe that this will strengthen our relationships with our customers and also with the farmers that we have contractual agreements with because they each get regular communication and visits from dedicated sales agents to ensure their needs are catered for and that everything is running smoothly.
In addition to this, we will be doing leaflet drops within a 100 mile radius of our base, and doing targeted advertising campaigns in the form of eye-catching boards.
Promotion Strategy
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We will also be promoting our business and products by holding occasional open days at our premises where by we will invite local traders and potential customers to come and sample our products. We believe such activities will aid in building and strengthening our relationships with our customers.
As well as this, we will also be running promotional campaigns through our team of sales agents to get our brand well-known and become established.
Marketing Program
In line with our Marketing strategy, we will employ three different marketing tactics to increase customer awareness of Premiere Group: In-house Marketing, Public Relations Marketing, and Media Marketing. Although, we still believe that our most important tactic will be word-of-mouth/in-house marketing. This will be by far the cheapest and most effective of our marketing programs. We strive to build a well known and trustworthy reputation and brand that will be easily recognized.
Pricing Strategy & Sales Forecast
We plan on entering the market with a very competitive pricing strategy. We will be able to do this because our initial investment in new machinery & equipment will not only let us produce maximum output and reduced costs, but also allow us to ensure that all elements of the grain are utilized by producing by-products and therefore producing extra revenue streams - and thus allowing us to be able charge less for our Rice products. We aim to produce high quality rice and by-products and sell them at a low price to increase and establish our market share.
A detailed breakdown of our Pricing is as follows:
Please note: that the purchase price of grain i.e. what we will be paying for the grain to local farmers fluctuates throughout the year (usually between 500-750 Taka's per 40kg bag), depending on the Season, so for the purposes of these calculations we have based the workings on an average rate of 600 Taka's per 40kg bag when purchasing grain from farmers, before milling.
These working are based on revenue produced from 100 x 40kg bags of grain:
Cost of purchasing 100 x 40kg bags of grain from local farmers at 675 Taka's per bag: 67,500 Taka's
After milling and processing, the following products are produced from these initial 100 x 40kg bags of grain:
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This gives a Total Revenue of approximately 88,912.18 Taka's per 100 bags of grain bought
for an initial cost of an average of 67,500 Taka's, resulting in a Gross Profit of approximately 21,412.18 Taka's per 100 bags of grain milled.
We forecast that we will be milling and processing 500 bags of grain per day for the first 3 months of having installed the new machinery & equipment, and then 800-1000 bags per day
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(an average of 900 bags per day) there afterwards and consistently going forward. This will mean:
Forecast Turnover for first 3 months (approximately): 12,003,144.55 Taka's per month(approx. £ 88,912.18 per month)
Gross Profit for first 3 months (approximately): 2,890,644.55 Taka's per month(approx. £ 21412.18 per month)
Forecast Turnover after first 3 months (approximately):
21,605,660.18 Taka's per month
(approx. £160,041.93 per month)Gross Profit after first 3 months (approximately): 5,203,160.18 Taka's per month
(approx. £ 38,541.93 per month)
So, to conclude, we forecast that (from milling and processing):
First Year Turnover to be: Tk 230,460,375First Year Gross Profit to be: Tk 55,500,375Second Year Turnover to be: Tk 259,267,922Second Year Gross Profit to be: Tk 62,437,214Third Year Turnover to be: Tk 259,267,922Third Year Gross Profit to be: Tk 62,437,214
In addition to this, we will be offering grain drying, grain storage, and delivery services which will also bring in revenue streams. We forecast these to be an additional Tk 675,000 (£ 5,000) per month.
So, final Turnover and Gross Profit forecast:
First Year Turnover to be: Tk 238,560,375First Year Gross Profit to be: Tk 63,600,375Second Year Turnover to be: Tk 267,367,922Second Year Gross Profit to be: Tk 70,537,922Third Year Turnover to be: Tk 267,367,922Third Year Gross Profit to be: Tk 70,537,922
Strategic Alliances
As already mentioned, Premiere Group will be forming a number of strategic alliances with other businesses in order to operate successfully. These will include local farmers with whom we will have contractual agreements to purchase grain and also to dry their grain, and traders and wholesalers to whom we will sell our products and offer our services.
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Milestones/ Action Plan
Our milestones that we aim to hit are as follows:
Secure financing
Purchase new machinery & equipment
Carry out building extension on premises
Install new machinery & equipment
Purchase grain and sign contractual agreements with local farmers for purchasing of grain
Begin milling and processing
Hit maximum production within 3 months of installing new machinery & equipment
Operate at full production output consistently there afterwards
Look to acquire a second and third premises in the second and third years respectively
Management Summary
The strength of our management positions us for success. We have a team that embraces different disciplines, accomplished professionals with expertise in all areas of the business, including marketing, accounting and rice mill management.
Premiere Group, with more than 17 years of experience in the rice milling industry, understands the importance of strong management.
We are a UK based Limited Company that is made up of a management team of 3 Directors that have expertise in different areas of business that consist of 17 years of Rice Milling and Trading experience in Bangladesh, 21 years of Food Wholesaling and Restaurant experience in the UK, and 10 years of Sales, Marketing and Accounting experience in the UK, Europe, and Dubai.
Personnel Plan
Our Personnel/ staffing plan consist of the following (all of which are well-trained, experienced, and skilled individuals):
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Position Monthly Salary (Taka's)
General Manager 40,000Mill Manager 30,000Second Mill Manager 30,000Maintenance Engineer 20,000Operator- Mill 12,000Operator- Oil Press and Other Machinery
10,000
Operator - Briquette Machine 10,000
Operator- Briquette Machine 10,000Labourer 6,000Labourer 6,000Labourer 6,000Labourer 6,000Truck Driver 6,000Total 192,000
Based on a rate of 135 Taka's to 1 GBP- 192,000 Taka's is approximately £1,422.22 per month on staff wages/salary.
In addition, we will employ 3 Sales Agents at a total cost of approximately £350 per month and a UK based Professional Engineering Advisor who has over 50 years of experience globally.
Financial Plan
The financial plan is to borrow Tk 80 lac now as a long-term loan from UCB Bank, at an interest rate of 18% along with a capital of Tk 15 lac to buy machineries and extend building which is suitable to our needs. We will repay this loan within five years from the cash flow of the
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business. We expect to have a cash flow from the very 1st month of the business operation. This investment will allow us to start our business which include producing: rice, rice bran, rice bran oil, briquette and broken rice along with additional service of providing dryer service, which will give us a further edge over the local competition and enabling us to further expand into our target market, while increasing recognition of our name and services.
As there is a lack of edible oil in Bangladesh market, the sales is related to production assuming that 100% of production will be sold. As we shall expand our capacity on the 4th month of our business operation we expect to gain more revenue afterward. So we can say that revenue is related to production capacity. So the revenue is expected to jump high on the 4th month and remain stable afterward.
From the very start, management will start building the business and taking it to the highest level. There is a huge demand of edible oil in Bangladesh, and other than that the export opportunity is huge, so it is expected that the management will experience good time in the recent years. The management aim to be a leader in the rice bran oil market.
Important Assumptions
This business plan was developed for Premiere Group assuming the following:
Steady growth from good management, barring any unforeseen local or national disasters such as the economic slowdown seen by most of the country following the September 11th, 2001 tragedies.
An adequate loan amount to allow for initial implementation of plans. Competition and buying patterns remain similar to those used for forecasting. Existing customer base maintained. Market research is on target and current (received from different state
organizations). New customers will be gained through direct sales and advertising. Long-term interest rate will be no more than 18%. Income tax rate is 35%. Sales tax rate is 15%.
Projected Profit and Loss
Outlined below and in the following table and chart, are some of the intrinsic facets of the projected profit and loss for Premiere Group. Cost of sales reflects our cost to produce rice, rice bran, rice bran oil, and other by products from grain. Gross margin will be at an attractive position and will continue to be stable throughout the years forecasted. Payroll expenses currently include the salary and wages of the employees in the management, sales agents, operators and labourers and also directors. Further details are available in our Personnel table (above). Advertising and marketing expenses (news ads, magazine ads, etc.) are projected to be stable. Depreciation forecasted includes building and machineries in the mill(details provided in appendix). Depreciation is based on reducing balancing method at 10%. Fuel costs are projected to be stable as the capacity of the mill is stable. But if the management again on the 2nd or 3rd year expand their capacity, then fuel along with all other costs will go up. Assuming that 100% of production will be sold immediately and capacity being stable all other expenses
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are kept stable, but with the sales percentage fluctuating and capacity increasing or utilization not being 100% of capacity, the scenario will differ. The scenario analysis is explained later on. (Where we have seen that the company makes good profit and balance sheet is healthy enough).
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PROFORMA PROFIT & LOSS FORECAST
FY 2012-13 FY 2013-14 FY 2014-15Sales Tk 230,460,375 Tk 259,267,922 Tk 259,267,922
Additional Sales(Extra Services) Tk 8,100,000 Tk 8,100,000 Tk 8,100,000
Total Sales Tk 238,560,375 Tk 267,367,922 Tk 267,367,922
Cost of Sales Tk 174,960,000 Tk 196,830,000 Tk 196,830,000
Gross Profit Tk 63,600,375 Tk 70,537,922 Tk 70,537,922
Less Expenses:
Rent Tk 810,000 Tk 810,000 Tk 810,000
Bank Loan Repayments Tk 2,437,769 Tk 2,437,769 Tk 2,437,769
Electricity Tk 9,240,000 Tk 10,080,000 Tk 10,080,000
Water & Plumbing Tk 81,000 Tk 81,000 Tk 81,000
Staff Wages Tk 2,592,000 Tk 2,592,000 Tk 2,592,000
Sales Agents Wages Tk 567,000 Tk 567,000 Tk 567,000
Engineer Costs Tk 486,000 Tk 486,000 Tk 486,000
Directors Remuneration Tk 3,240,000 Tk 3,240,000 Tk 3,240,000
Professional Costs(Legal ctc) Tk 324,000 Tk 324,000 Tk 324,000
Training Tk 162,000 Tk 162,000 Tk 162,000
Marketing & Advertising Tk 1,200,000 Tk 1,200,000 Tk 1,200,000
Licencing /Subscriptions Tk 162,000 Tk 162,000 Tk 162,000
Cleaning Tk 162,000 Tk 162,000 Tk 162,000
Travel Costs Tk 1,620,000 Tk 1,620,000 Tk 1,620,000
Telephone & Internet Tk 81,000 Tk 81,000 Tk 81,000
Insurance Tk 405,000 Tk 405,000 Tk 405,000
Depreciation(Machinery) Tk 807,500 Tk 726,750 Tk 654,075
Vehicle Lease Tk 480,000 Tk 480,000 Tk 480,000
Property Maintenance Tk 162,000 Tk 162,000 Tk 162,000
Equipment Maintenance Tk 324,000 Tk 324,000 Tk 324,000
Equipment Replacement Tk 1,200,000 Tk 1,200,000 Tk 1,200,000
TOTAL EXPENSES Tk 26,543,269 Tk 27,302,519 Tk 27,229,844
NET PROFIT(before Tax) Tk 37,057,106 Tk 43,235,403 Tk 43,308,078
Net Profit/Sales 15.53% 16.17% 16.20%
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Projected Cash Flow
The cash flow projection for Premiere Group shows that provisions for ongoing expenses are adequate to meet the needs of the company, as the business generates sufficient cash flow to support operations and future expansions. Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month and the other representing the monthly balance. The annual cash flow figures are included here and in our Cash Flow table. Detailed monthly numbers are included in the Appendix. Cash Flow shows the purchase of long-term assets as follows:
Machineries CostRice Mill 1,550,000.00
Diesel Generators 1,400,000.00
Transmitter/ Transformer 300,000.00
Oil press 800,000.00
Bottle Capping Machine 200,000.00
Briquette Machine 300,000.00
Total 4,550,000.00
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CASH FLOW PROJECTION FY 2012-13 FY 2013-14 FY 2014-15Estimated Cash Receipts
From Cash Sales Tk 238,560,375 Tk 267,367,922 Tk 267,367,922
Proceeds from Bank Loan Tk 8,000,000 -
-
Total Cash Receipts Tk 246,560,375 Tk 267,367,922 Tk 267,367,922
Estimated Cash Payments
To supplier of goods Tk 177,049,343 Tk 198,126,460 Tk 198,380,072
To employees (wages) Tk 3,159,000 Tk 3,159,000 Tk 3,159,000
Purchases of non-current assets Tk 8,075,000 -
-
Rent and Rates Tk 10,131,000 Tk 10,971,000 Tk 10,971,000
Other overhead Tk 10,008,000 Tk 10,008,000 Tk 10,008,000
Repayment of loan Tk 2,437,769 Tk 2,437,769 Tk 2,437,769
Total Estimated Cash Payments Tk 210,860,112 Tk 224,702,229 Tk 224,955,841
Net surplus/ (deficit) for month Tk 35,700,263 Tk 42,665,693 Tk 42,412,081
Opening cash balance Tk 75,000 Tk 35,775,263 Tk 78,440,956
Closing cash balance Tk 35,775,263 Tk 78,440,956 Tk 120,853,038
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Projected Balance Sheet
The Balance Sheet shows healthy growth of net worth, and strong financial position. The monthly estimates are included in the Appendix. The balance sheet for Premiere Group is quite solid. We do not project any trouble meeting our debt obligations. Our management is strong enough and more than capable of keeping the business on track for total repayment of any obligations (loans). Our major capital asset (the property and affixed buildings and other mill equipments) is valued at about Tk 7,267,500. Our current assets include Raw Material which is to be purchased at the beginning of business amounting to Tk 2,430,000. These items will be purchased upon funding of the requested loan, for the amount of Tk 80 lac. We will have a solid starting balance in the company account. This will allow us to start the business with a security nest and will allow us to grow our cash balance at a steadier pace. Our projected balance sheet is presented in the table below.
PROFORMA BALANCE SHEET
FY 2012-13 FY 2013-14 FY 2014-15Asset:
Current Asset
Cash in Hand Tk 35,775,263 Tk 78,440,956 Tk 120,853,038
Finished Goods -
-
-
Inventory Tk 2,430,000 Tk 2,430,000 Tk 2,430,000
Total Current Assets Tk 38,205,263 Tk 80,870,956 Tk 123,283,038
Non-Current Asset
Goodwill -
-
-
Buidling Extension Tk 3,037,500 Tk 2,733,750 Tk 2,460,375
Other Assets Tk 135,000 Tk 121,500 Tk 109,350
Rice Mill Tk 1,395,000 Tk 1,255,500 Tk 1,129,950
Diesel Generators Tk 1,260,000 Tk 1,134,000 Tk 1,020,600
Transmitter/ Transformer Tk 270,000 Tk 243,000 Tk 218,700
Oil press Tk 720,000 Tk 648,000 Tk 583,200
Bottle Capping Machine Tk 180,000 Tk 162,000 Tk 145,800
Briquette Machine Tk 270,000 Tk 243,000 Tk 218,700
Total Non-Current Assets Tk 7,267,500 Tk 6,540,750 Tk 5,886,675
Total Asset Tk 45,472,763 Tk 87,411,706 Tk 129,169,713
Liability
Bank Loan Tk 6,915,657 Tk 5,619,197 Tk 4,069,125
Total Liability Tk 6,915,657 Tk 5,619,197 Tk 4,069,125
Capital
Capital Tk 1,500,000 Tk 38,557,106 Tk 81,792,509
Profit Tk 37,057,106 Tk 43,235,403 Tk 43,308,078
Total Capital Tk 38,557,106 Tk 81,792,509 Tk 125,100,588
Total Capital and Liability Tk 45,472,763 Tk 87,411,706 Tk 129,169,713
Net Worth Tk 38,557,106 Tk 81,792,510 Tk 125,100,587
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Business Ratios
Premiere projected business ratios are provided in the table below.
Ratio Analysis FY 2012-13 FY 2013-14 FY 2014-15Sales Growth
Percent of Total Assets Inventory 5.34% 2.78% 1.88%
Total Current Assets 84.02% 92.52% 95.44%
Long-term Assets 15.98% 7.48% 4.56%
Total Assets 100.00% 100.00% 100.00%
Long-term Liabilities 15.21% 6.43% 3.15%
Total Liabilities 15.21% 6.43% 3.15%
Net Worth 84.79% 93.57% 96.85%
Percent of Sales Sales 100.00% 100.00% 100.00%
Gross Margin 26.66% 26.38% 26.38%
Operating Expense 11.13% 10.21% 10.18%
Cost of Goods sold 73.34% 73.62% 73.62%
Profit Before Interest and Taxes 15.53% 16.17% 16.20%
Main Ratios ROCE 81.49% 49.46% 33.53%
Net Profit Margin 26.66% 26.38% 26.38%
ROI 81.49% 49.46% 33.53%
Inventory Turnover 72 81 81
Inventory Turnover Period 5.07 4.51 4.51
Total Asset Turnover 5.25 3.06 2.07
Debt to Net Worth 18% 7% 3%
Assets to Sales 19% 33% 48%
Sales/Net Worth 6.19 3.27 2.14
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APPENDIX
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