final entire plan power)

8/6/2019 Final Entire Plan Power)

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INDUSTRY ANALYSIS


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AB ELLs Framework

Customer Needs: Our Target market is RMG sector which are situated in various Export

Processing Zones (EPZ) in Bangladesh. Their main needs are

y H igher and uninterrupted production: For any manufacturing company this is the most basic need. They want to produce as much as possible within their capability. Also theydont like any interruption in their production. But in our country Govt. is unable to givethem sufficient power due to lack of power production. Also, Govt. one day off of power supply to every industry due to lacking of electricity. These hamper the EPZs productionmost.

y Production Capacity Enhancement: Recently China has launched open market system for its currency Yen. Thats why Yen is appreciating day by day. This means production costin China is getting higher day by day. In this situation. Investors now look for new andcheaper market. And obviously Bangladesh is one of them as it has brand equity in regardof readymade garments product. Therefore, RMG industry of Bangladesh is expectingmuch more investment and order. For that they will have to enhance their capacity of

production.y Sustainability and Eco-friendly way of doing business by the factories in EPZ areas:

Every business wants to be a sustainable one in order to get more profit by existinglonger period. To be a sustainable business they will have to consider three prongsfactors: social, economical and environmental. By doing sustainable development they

can meet their present needs without compromising the ability of future generations tomeet their own needs. Todays customers are too savvy. They not only search for productwhich fulfils their need but also the products which dont harm the environment. And indeveloped countries they value the eco-friendly products mostly due to their socialnorms. And most of our RMGs clients are from western countries. So factories in our country intend to be the one who is eco-friendly.

Wh o are bei n g satisfied (Customer group) a n d h ow t h e n eeds ca n be fulfilled:

y Our customer group is the companies and industries located in EPZ areas, which have aneed for more electric supply.

y Uninterrupted electricity supply: Continual electricity supply can meet the factorys production need as it is one of the main factors of production in RMG.

y Assurance of power supply on pick-hour: When any RMG factory is working for animportant order they seek for assurance of electricity supply. But the Govt. is unable to


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give such kind of assurance and that places the company managers with high risk whether they can meet their order in scheduled time and further we will give back-up power supply to all the companies and industries in the EPZ areas when they have suddenincrease in demand in a certain period of year.

y Utilization of alternative energy sources: Currently we are using non-renewable energysources (like fossil fuels, gas, coal etc) to produce electricity. But the whole world haslimited amount of non-renewable energy. So its always better that we can utilize thenon-renewable energy sources like solar-energy and bio-gas etc.

H ow Our Compa n y ca n fulfill t h e n eeds differe n tly:

y Ensuring the electricity supply: We will guarantee our customers uninterrupted electricitysupplies whenever they needed. We will supply them electricity what amount they ask for

and which process.y Focusing on Alternative Energy Sources: We are going to produce electricity from

alternative energy sources (like solar-panel, bio-gas etc). We know its not possible for usto supply all the electricity needed by our customers by the alternative energy sources asthey produce a little power. Thats why our initial target is to produce 75% of our energyfrom regular sources (fossil fuels), 20 % from solar energy and rest of 5% from bio-gas.

y Eco-friendly Company: We will establish our energy plant as an eco-friendly company aswe are using alternatives energy sources instead of burning fuels which is sustainable for the environment. By doing so we will get the ISO 14001 certificate from the InternationalStandardize Corporation.

y Creating Strong Brand Image: By distributing electricity smoothly to our customers weare going to have positive associative networks in our target consumers minds. And bydoing eco-friendly business and getting ISO 14001 we are transforming these associativenetworks to a strong brand image. This process requires certain amount of masscommunication. Our customers will like to buy electricity from us because by doing sothey can promote themselves eco-friendly too as they are buying renewable energies.

y Segmenting Customers: The Bangladesh Export Processing Zone Authority (BEPZA) has

categorized three types of investors in the EPZs: Foreign direct investors, Joint-venturesand local investors. These Three types of customers have different needs. So we willdifferentiate the factories in different categories and offer them different packages tofulfill their different needs. Also all of them dont have the same level of capability to

buy unique product/service. So our service to them will be customized rather thanstandardized.


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A bells Framework for Defi n in g t h e B usi n ess


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P orters 5 forces

For industry analysis, we used The Porter's 5 Forces tool, which is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helped us to

understand both the strength of our current competitive position, and the strength of a positionwe are looking to move into.With a clear understanding of where power lies, we can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. This makes it animportant part our planning toolkit.Conventionally, the tool is used to identify whether new products, services or businesses havethe potential to be profitable. However it can be very illuminating when used to understand the

balance of power in other situations too.Five Forces Analysis assumes that there are five important forces that determine competitive

power in a situation. These are:


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1. Foreign Direct Investors- who make full investment to establish a garments factory inBangladesh. They will surely want power supply in continuous process throughout theday, so we will charge a price of one strategy to these kinds of consumers.

2. Joint-ventures- a way in which a foreign company ventures with a local company to run a business. They will surely need Power Supply when there is inefficiency, so we willmake a different pricing chart for them.

3. Locals- the elite persons in our country, who start their own garments. Though theredemand will be low, we will charge them by our standard of pricing.

Some % of Tax rebate of garments factories located in EPZ- So the garments owners have ahigher buying power purchasing of purchasing electricity from our power plant to increase their

production as well as the efficiency.

The bargaining power of buyers is low, as they have a need for more electric powers in their

factories, to meet the demand of the timely summation of goods to foreign buyers within the timelimit of the contract and further more foreign investors are coming into the lucrative market of Bangladesh for its cheap labor force, so the demand for more electric power is increased.

B argai n in g power of Supplier

y Coal mines - Bangladesh has about 65Tcf equivalent sweet coal [minimum sulfur andalmost no ash] in 5 discovered coal mines in the greater Dinajpoor and Rangpoor region. Bangladesh can generate about 20000MW power for 30 years using domesticcoal if mined properly. So we will buy coals from these areas. Here is a sample of howwe will implement the whole process in one of our area, Barapukuria Coal mine.

We will load the coal on the trucks/vehicle by using mechanized pay loading facility provided atthe delivery point by Barapukuria Coal Mining Company Limited. Using of the company'sloading facility will cost Taka15.00 (fifteen only) per tonne. We can load coal on thetrucks/vehicle by using different facilities provided by other than Barapukuria Coal MiningCompany Limited, which may cost approximately Taka 27.00(twenty seven only) per tonne. Wewill work Saturday to Thursday, and our total cost will be determined by the transportation of thedestination we are sending.

y Solar panels- we can import solar panels from many countries, like Japan, United States.Germany, the Scandinavian countries, Italy and china and also we will take highmeasures to produce it locally with our high research and development department.


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y Energy from bio-gas- we will invest high in buying machineries which can regenerateenergy from bio-gas. We will also give incentives to local village people to give thenecessary raw products to make the energy.

The suppliers of coil has a high bargaining power because of the no formal law from thegovernment about the pricing of coil, so our suppliers can charge any price from us. For solar

panels and energy from bio-gas the supplier bargaining power is low, as for solar panels we will buy from foreign supplier, who have a fixed pricing and raw materials from bio gas we will getfrom the villages.

Degree of Rivalry

In the market we are in, we dont have any direct competitors but we do have few strong indirectcompetitors.

Rahimafrooze- Rahimafrooze operates in power and energy. It sells batteries, emergency power products, diesel as well as gas generators, lighting products, electrical accessories, solar systems,energy solutions using compressed natural gas, and power rectifiers.

Summit Power- Summit Power Limited (SPL) is the first independent power company in the private sector. It generates electricity and sells; the company is also enlisted in the stock market.

The competitive rivalry of ours is to a moderate level, because there are several competitors of us, but none of them are producing exactly what we are planning to produce. In addition to that,their target market is different from us.

Th reat of Substitutio n

These are some product substitute that may hinder our project implementation of making our power plant

1. Industrial Battery

2.

Diesel and Gas Generators3. IPS4. Private sector Power Company

The threat is moderate, as we dont have any direct.


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Star Plot of IndustryStructure


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P ESTLE A n alysis

P olitical: y Stability: Bangladeshs political instability is one of the major barriers of the business.

However recently after the National Election-2009 political situations seems more or less stable as there is less strike and unrest amongst the people.

y K ey Personals: K ey personals for doing business in Bangladesh have always been political leaders. They have enormous influence on the system that they can manipulateanything and everything. Even if we are ethical organization we will have to keep goodrelationship with them so that they wont be against our policy.

Econ

omical G rowt h of Eco n omy: Bangladeshs economy is very strong. Even though, most of thewestern country are facing recession; Bangladeshs GDP is constantly increasingwhich economists called as Bangladesh Paradox. At present Bangladesh rank is 48.Statistics GDP $228.4 billion (2008 est. PPP). GDP growth 5.6% (2009 est.) GDP per capita $1500 (2008 est. PPP) GDP by sector Agriculture (19%), industry (28.7%),services (53.7%) (2007 est.) Inflation (CPI) 5.4% (2008 est.) Population below povertyline 36% (2009 est.) Labor force 70.86 million (2008 est.) Labor force by occupationAgriculture (45%), industry (30%), services (25%) (2008 est.) Unemployment 2.4%(2008) Main industries textiles, jute, shipbuilding, telecommunications, tea, ceramics,

pharmaceuticals, food processing, cement, fertilizer, paper newsprint, chemicals,construction materials, transport .


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.

Sh ifti n g of occupatio n : Slowly but steadily Bangladeshs economy is moving towardsindustry from the agriculture. And most of the contribution goes to the garmentsindustry of our country.

Tec h n ological In frastructure: Although the technological infrastructure of our country is not

satisfactory we have enough scope to build the infrastructure as the Govt. is givingincentives for doing so.

Tec h n o-frie n dli n ess: Usually Bangladeshi people are not techno-friendly. But recentlydue to high demand of job many people are getting used to the technology. Also with thishuge population its easy to find out many specialists in this sector.

Educatio n : Education regarding technology is increasing day by day. Graduates from thetechnical sectors are enhancing year after year. These reflect that our country has enoughnumber of technical expertises. Talented engineers graduated from BUET, IUT, MIST,DU, K UET can employed in our company and these talents can give us superior service

quality.

LE G A L Tax Rebate: Company investing and producing power will get the tax rebate fully up to

5 years according to the law of Bangladesh. This actually has done to encourage theinvestors to invest in power plant.


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Rule a n d Regulatio n : On one hand, rules and regulations of Bangladesh are not thatmuch of investment friendly in some sectors (like telecom operator). On the other hand,rules and regulations are investment oriented in other sectors like agriculture and power

plant.

E n viro n me n tal G lobal-warmi n g: Global-warming issue gives us the potentiality to focus on eco

friendly business. Because we are the one who will be affected most by the global-warming so if we can show to the world that we ourselves affect less Ozone-layer destruction we will get the media attention of the world.

Cope n h age n Co n fere n ce 2009: In the Copenhagen Conference for global warming wehave successfully created an image of Bangladesh regarding the result of global-warming. So now we can get the sympathy from the developed world by this. And our

business will show them that although we are getting affected by global warming but itsnot we rather its who are responsible for this.

Diagram of P ESTLE A n alysis


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SWOT Analysis Strength

Capital The capital which is needed for initial investment and running the business ishigh at the beginning of our venture in the business, and it a strong strength of us that wehave enough capital to run the business without any shortage of money.

W ork force We will be focusing on recruiting highly knowledgeable and experiencedwork force to work in our Power Plant. They will be highly qualified in their respectivesegments they will be working on.

Stro n g Researc h an d Developme n t We will be focusing on investing on high on R &D department. They will be focusing on innovating and improving new ways to createelectricity in an eco friendly way, for sustainability in the longer run.

Low e n viro n me n t h azardous gas emissio n As the trend of world is changing to createsustainable eco friendly energy, we are creating energy from solar, bio gas, and coil(which will be highly refined to emit least carbon), we will have a strong brand image inthe eye of our consumers and the government who is prompting highly for sustainableenergy.

Weakness

H igh cost a n d i n sufficie n cy i n acquiri n g raw materials a n d mac h in eries the cost of acquiring solar panels and coal is high and the raw materials for making bio gas ininsufficient.

H igh in itial i n vestme n t a n d h igh cost of ru nn in g t h e busi n ess- Which indicates the business is of ling term investment and to come to break even we to wait for approximately 4 to 5 years.

Tra n sportatio n Cost a n d mac h in eries pla n tatio n cost The cost will be high becauseof big machineries to be transported and planting machineries in right places will be acostly task.

Lo n g time To complete the whole project of building a Power Plant is a long timeacquiring project, which need meticulous engineering and time frame to complete.

Limitatio n s of la n d space Building a Power Plant need huge land space at once, which

will be a tough job to acquire in our country.(M Golam Robbani, 1999)

Opportunities

y Tax Rebate Government has taken initiation of tax rebate of first 10 years to venturinginto making Power Plant. This is a high initiation for us to run the business for 10 years


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without taxation, and build a strong platform to run the business years ahead when the taxwill be imposed.

y C h eap Labor - We have the advantage to get cheap labors for doing menial jobs asBangladesh has high labor force.

y Latitude A dva n tage Our country is positioned in such a way in the globe that we gethigh degree of sunlight at day time which increases our capacity to store high solar energy at day time and increase our energy capacity.

y G over n me n t is pro In dia n This will help us to import coal from India in easy routewithout much hassle from government of both countries.

y H igh future i n crease i n dema n d for electricity We can estimate that there will behigh demand for electricity in near future, as the labor cost in Chinese market isincreasing because of the Chinese currency evaluation with U.S.A dollars and thegarments of our country will have more export contracts from buyers, so to fulfill thedemand they will need more electricity.

y Electricity S h ortage Our government is inefficient in providing enough electricity tofulfill the whole demand in the market for the electricity in the EPZ areas, so there isalways shortage and we can be the alternative source to fulfill the demand for theelectricity.

Threat

P olitical Situatio n of our cou n try The situation is mostly instable. We face the problems of Hartals which stoppage the whole market segments of ours, and then we can

also be threatened by abrupt changes of rules and regulations of our country which can goagainst our benefits.

E n try of Competitors The initial investment of entry is very high, this will discouragemany investors. But many will be motivated to enter because of government tax rebate or

because of less competition. Tax of import of Coal We can be threatening if the government imposes higher tax in

the import of Coal in the future. Dh aka Electricity Supply Compa n y limited (DESCO) pla n s DESCO has plans to

import electricity from India, which will increase the electric capacity of our country, andthis may hamper our business if DESCO supply the electricity in lower costs than ours.

W eat h er The change in weather system will be a strong factor in acquiring energy. If the weather is gloomy we get less solar energy, which can reduce our energy storingcapacity.

(M ustafa K. M ujeri, 2008)


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Table of S W OT A n alysis

Stre n gt hs

Capital W ork force Stro n g Researc h an d Developme n t Low e n viro n me n t h azardous gas

emissio n

Opportu n ities

Tax Rebate Ch eap Labor

Latitude A dva n tage G over n me n t is pro In dia n H igh future i n crease i n dema n d for

electricity Electricity S h ortage

W eak n esses

H igh cost a n d i n sufficie n cy i n acquiri n g raw materials a n dmac h in eries

H igh in itial i n vestme n t a n d h igh costof ru nn in g t h e busi n ess

Tra n sportatio n Cost a n d mac h in eriespla n tatio n cost

Lo n g time Limitatio n s of la n d space

T h reats

P olitical Situatio n of our cou n try E n try of Competitors Tax of import of Coal Dh aka Electricity Supply Compa n y

limited (DESCO) pla n s W eat h er

T S W

O


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PRODUCTION PLAN


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will be responsible for all of the manufacturing operation solely. That means there willnot be any subcontracts in case of production.

Space : We will need 50 acres of area for our whole plant.

P roductio n P rocess:

Coal P ower-Statio n :We are going to establish a power station based on coal. As raw materials we will import coalfrom Raniganj coal mine, West Bengal, India. It will supply us 70% of electricity that we want to

produce. The stream of this power station will be supplied to the drying factories of DEPZ andthe brick burners of the neighbor localities. This will reduce the carbon emission

Solar P an el: We are going to rent unused agricultural land of farmers to set our solar plates temporarily.These sheds are moveable as wheel will be adjusted with these. The electricity produced by thesesheds will be transferred to our main power grid.

B io-gas c h amber:We are going to set lateens at the house of villagers totally free under our CSR program andmake contract with them so that we can get the collected organic wastages from these lateens.We will use those wastages to our bio-gas chamber to produce gas. Therefore there will be a gas-

chamber in our main production plant. This gas will be used to rotate the turbine in our central production plant. And by doing so we can reduce our demand of coal as raw-materials and hencereduce the cost associated with it.

Mai n P ower G rid:In power grid area of our plant we will combine all the electricity that we are going to producefrom our three different stations. Then we will need to set up the volt of our main grid. We canoffer different volt to our customers as different industries need different volts of electricity.Then we will supply this electricity to the DEPZ by 3.5 diameter metal wire.


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Mac h in ery a n d Equipme n t:

Coal-power Station:The buildings and equipment those are needed for our coal-fired thermal power station are:

1.

Cooling Tower 2. Cooling Water Pump3. Transmission Line4. Unit Transformer 5. Electric Generator 6. Low Pressure Turbine7. Boiler Feed Pump8. Condenser 9. Intermediate Pressure Turbine10. Steam Governor Valve11. H igh-Pressure Turbine

12. Deaerator 13. Feed Heater

14. Coal Conveyor 15. Coal Hopper 16. Pulverized fuel mill 17. Boiler drum 18. Ash hopper 19. Superheater 20. Forced draught fan 21. Re-heater 22. Air intake 23. Economizer 24. Air Pre-heater 25. Precipitator 26. Induced draught fan 27. Chimney Stack

Solar Power Station: For the initial stage of , we need most of the solar equipments andmachineries. These will be our long term investment as solar equipments have average life timeof 30 years. We will have to buy solar power machines and shads to produce electricity.

Solar Power Machines Required

P roducer Model(Qua n tity)

W att Volt W eig h t P rice Cost

Sharp Sharp224(10) 224 29.28 7.66 $715 $7150

BP Solar SX3220M(15) 220 36.6 4.92 $520 $7800

Su n W ize S W18 0 (25) 18 0 29 .0 7 .6 $63 2 $ 15800


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Bio-gas chamber:Here in our bio-gas chamber we are producing bio-gas which will help to rotate the turbine andthus produce electricity. For that we need to establish Apart from that in future when we will beable to assemble more organic dusts from the villages we will buy a gas turbine which itself will

produce electricity from the methane gas (C H4) of the gas chamber.

For the gas generator we need:y Compressor y Re-generator y Combustion chamber y Gas Turbiney Alternator y Starting motor

Main Grid: Equipments: DC/AC converter Volt Converter Transmitter

Raw Materials: Coal, Oil, Organic Dust, Metal Wires, Metals, Wheels for solar sheds, Water, Air etc.

Suppliers: Coal Supplier: H imadri Chemicals and Industries Ltd.

Address: 8Th Floor, 23A Netaji Subhas Road, K olkata - 700001.

West Bengal, IndiaSolar Generator Supplier:

1. BP Solar - U K Chertsey Road Sunbury onThames Middlesex TW16 7XA United K ingdom

2. Sharp Electronics (U K ) Ltd4 Furzeground WayStockley Park Stockley Park Uxbridge

UB11 1EZCost of Manufacturing:

Future Capital Equipment: In future we are expecting to invest more on Research &Development (R&D), so that we can produce more electricity from alternative energy sources.We will invest on windmill to produce electricity from the air. Therefore to establish windmillwe need fund also lad in hill-track arena.


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P h ysical P la n t Layout

VILLAGE -1 VILLAGE -2 VILLAGE -4 VILLAGE -3

H IGH WAY

DEPZ

SOL A R

B I O-G A S

CO A L

P O W ER G R I D

SUB W A Y


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Locatio n Map


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MARKETING PLAN


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Target Market Factories in DEPZ which require electricity (as they have demand for foreign orders but couldnt

produce at their level best due to lack of electricity) to produce and who are the key player of theindustry.

Co n sumer In sigh tOur target market is the big industries in RMG sector. So we have targeted towards business

people. The psychology of these business people is more rational than the regular customer.They will seek for the benefits they will get from our services. After getting our proposal theywill take some time for their cost-benefit analysis. They will analyze whether our service isworth to them or not, will their cost be paid off? This is the single most questions that will playinto their mind. So we have to show them the benefits they will get by using our service in a

business point of view and that are maximizing profit.

Sales Forecast for n ext T h ree Years

P roduct Offeri n g Our company G_Power is going to provide electricity to different factories of DEPZ atcustomized rate. Basically it is in other sense utility service to our customer. Our very firstservice will be providing 100 Megawatt electricity at the voltage of 10 Ohm to our clients. Wewill differentiate our service on the basis of time. Our Govt. organization DESA, DESCO cant

produce electricity to our customers seven days a week. Thats why every factory has to be close

Sales ForecastSales 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2011 2012 20 13 BigCompanies(Bulk Buyer) 1285600 77136000 462816000 2776896000 1190369180 3437919380 127099230.8SmallCompanies 3214000 19284000 115704000 694224000 297592295 859479845 1681946494

Total Sales 1607000096420000

578520000 3471120000 1487961475 4297399225 16946564170Direct Cost of Sales 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2011 2012 20 13

Recreational 722748205 43364895 260189370 1561136220 1871917968 2105725620 8312636440

Competitive 3097459205 18584955 11509830 669058380 802250557 902453838 3562558470Subtotal DirectCost of Sales 10324975 61949850 371699100 2230194600 2674168525 3008179458 11875194919


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for one day in a week although they are capable of running them. So some of our customer will be those, who want to utilize this one day every week. So they will have to buy electricity fromus at a higher price. This will give them competitive advantages. In addition to that we will haveanother type of customer who will in need of high electricity when they will get high amountorder and need higher production. They will come to us as they dont want to lose their importantorders from their buyers.

P ositio n in g We will promote our company G-Power to our consumers mind as Our Performance is Your Conformance . By that we mean that our customers consistent success in their business field isdepended on our performance. We will promote our company as a reliable and continueselectricity supplier.

Strategies To get sustainable growth of our company need both short-term sales and long-term brandequity. We will get those by adopting push and pull strategy simultaneously.

P us h Strategy : It is effective for short-term selling. In our case we can give incentiveslike discounts for bulk buyers, special rate for regular customers, customer card on the

basis of previous transactions, sale off during winter as the lacking of electricity seems to be lower then. These activities will make our service attractive to our customer for short-term and we will generate initial profit from this.

P ull Strategy : It is effective for long-term brand building. Our regular PR activities printand TV advertising will be based on the importance on green Bangladesh and Green

business. This will create positive associative networks towards peoples mind regardingour brand G_Power. With time, these positive associative networks will become brandequity.

Marketi n g MixG_Powers marketing mix is comprised of the following approaches to pricing, distribution,advertising, promotion, and customer service.

y P rici n g: Pricing will be different for our different packages. The companies who

will order for our electricity before four months hand will get 5 % discounts. Onthe other hand the companies who will order for our service before only one monthahead of time will have to pay 7.5% premium for their urgent service.

y Distributio n : Initially we will start our business from DEPZ. Latterly, we will gothe rest of seven EPZs of Bangladesh.

y P romotio n : We will create an Integrated Marketing Communication (IMC)campaign for next three years which we will discuss later.


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y Customer Service : As our produce is a utility service so the customer servicequality is vital. So we will strive to achieve benchmarked levels of customer care.

I MC Campaig n Our IMC campaign will be consisting of all sorts of communication mix to utilize the diversityof all medium of communication.

A dvertiseme n t : As our target market is the business people we will launch printads to those newspaper and magazines those they read occasionally. For example,The Daily Star, Prothom Alo, K aler K ontho- we will give ads on the 10 inchcolorful ad first page and last page of these newspapers. We will also give black-white ads in the business page of those newspapers. In addition to that we will also

provide our print ads to create awareness. Direct marketi n g: As our business is the B2B business we will directlycommunicate with our customers through email, telephone etc. We will recruit

some marketer who will have good persuasive communication skills. We will sendthem to our potential customers office. They will carry on seminars their andexpose the concealed needs of our customers.

P ublic Relatio n : Public Relation plays the most vital communication roles in anyB2B business. For our public relation we will recruit very high efficient liaisonofficer with high salary. They will create and maintain good relationship with thecorporate. We will not depending solely on those liaison officers but also our CEOand Marketing head will have direct, one-to-one communication with thecorporate. There will be different group in the public relation department whoseresponsibility is to maintain relationship with the media as in todays world we all

know the power of media. Our public relation department will be filled by veryhigh efficient employees whose persuasive ability has to be excellent. To the mass

people our branding strategy will be we are in a green business, so we are againstglobal-warming and our business is making the world green again.

Spo n sors h ip: We will be sponsoring different events relating to our business. For example we will be title sponsor of Dhaka International Environmental Fair 2011,2012, Dhaka Tree Fair, Energy Consumption Seminars etc. By sponsoring theseevents we will get media attention without any extra cost.


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OPERATIONAL PLAN


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P roductio n P rocess The three prongs of our electricity sources will work simultaneously and produce enoughelectricity to supply to our customers. The solar energy will be effective only on day timewhilst the other two-bio-gas source and coal is available all the time. The solar energy ismost powerful when the sun rays is on 70-90 degree it the solar panel. Our panels will bere-adjustable with the time. We need an employee there who will re-adjust the degree of the solar panel in every two hours. In this way we can get efficiency. In addition to that wewill produce most of our electricity from our coal plant. It will operate during 9-5everyday. In this plant our production will vary with the orders we will get from our customers. In the coal plant the coal will be burn and the steam of the coal will beresponsible to rotate the magnified turbine of the plant. This rotation of electrified turbinewill produce electricity. In our bio-gas plant we will produce methane gas from our humandust which we will collect from the sanitary toilets we have set up to the villagers. We willsell 40% this methane gas to our customer as they have also problem with the gas supply

from TITAS Gas Co. the rest of the gas will use as steam air for the coal plant along withhot coal air.

Raw Materials Required Coal : We need coal at most for our production as 70% of our electricity is

producing from this coal. We will have contract to two large and fifteen small coalsuppliers to get continuous supply of coal to our factory.

Orga n ic Dust : we will need organic dust for our bio-gas plant. We will collect

these organic dusts from the sanitary toilets that we already have established innearby villages.

C h emicals : We need 12 different chemicals for our coal plant. These chemicalswill used to burn up the coals. In addition to that we need twenty differentchemicals including nitric acid, sulphoric acid, potassium nitrate and potassium

permanganate. Most of these chemicals wil be used for mutate the organicchemicals.

Labor We will need 300 direct labors in our coal plant. They will be categorized in three classes.One classs responsibility is to transfer the coal from the storage to the main plant, whereanother group will be assigned to mix chemicals to the coal-burner. At the meantime thelast group will be assign to remove the wastage of these coals efficiently. In our bio-gas

plant we only 75 labors, from which 35 of them will collect organic wastages from nearbyvillages. Rest of them will be assigned to maintenance of the gas-chamber. We will need


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the least labor for our solar panels. Their only job is to maintain the panels from stealingand any damage by rainy weather and re-adjust the panels according to sunrays timely.

Tra n sportatio n of Raw Material We will subcontract with Wings Transportation Ltd. for our raw materials transportation toour factory. Basically they will bring the coal from our main coal supplier H imadriChemicals and Industries Ltd. to our site.

In ven tory We will build storage for our stock of coal. Our minimum balance which we must have inour storage for a particular month is 20% of the raw materials required to produceelectricity for that particular month.


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ORGANIZATIONAL

PLAN


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will be established as a partnership. This company consists of four partners who act asBoard of Director. Among them one of the Board of Directors holds 28% ownership of thecompany and rest of the portion (72%) divided among others as because one of the BOGS musthave checking-sign authority or control over the company.

Top Ma n ageme n t Team a n d T h eir B ackgrou n d :Top management team of Green Power consists of Board of Directors, Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Corporate Officer (CCO), Chief Financial Officer (CFO) and General Manager of different departments.Chief Executive Officer (CEO) will be recruited either among from the Board of Directors or outside of the company. If CEO will be outsider, he/she will have a MBA from any reputeduniversity in abroad (Preferable North American degree holder). He will also have 10-plus yearsin successful experiences, at least 4 years as CEO in the power plant sector.Chief Operating Officer (COO) will have a MBA from any recognized university or bachelor degree in Electrical/Mechanical/Civil from any reputed institution (Preferable North Americandegree holder) and will also have 7 to 10 years successful experiences regarding power plantsector.Chief Corporate Officer (CCO) who a MBA degree major in Marketing from any reputeduniversity in Bangladesh or abroad. He will also have 5 to 8 years successful experiencesregarding corporate sector.Chief Financial Officer (CFO) will have Chartered Accountant or MBA in Finance &Accounting with good records in any reputed university in abroad and about 10 years of experience in banking or financial institutions having strong management assurance dept of

which at least 5 year worked as Head of Internal Audit. General Manager in Production, Maintenance and Technical Services departments have a

graduation degree regarding in science background and General Manager in Admin and GeneralServices, HR, Commercial and Procurement departments have a BBA degree in any reputeduniversity. Seven general managers will be required in the required departments.

Ot h er Ma n ageme n t Team a n d T h eir B ackgrou n d : Other management team consists of middle level and lower level management. Most of themiddle level management like- Deputy Manager and Assistant Manager. They will have agraduate degree from reputed university. Of them, Production, Maintenance and Technical

Services departments employees will have science background and rest of the employees have aBBA degree. Lower level management is such as supervisor, foremen and floor in charge. Theywill have graduation degree and experiences regarding power industries.


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Duties a n d Respo n sibilities of t h e Top Ma n ageme n t Team

Managing Directors :Board of Directors has the right to recruit CEO, COO, CFO and CCO. They are the ultimateauthority to take any kinds of decisions regarding the organization. They also have VATO power against CEOs decision.Chief Executive Officer (CEO):CEO will have to perform some activities, like-

Directs and executes all activities of the organization either directly or through delegatedauthority;

Provides leadership in the areas: the creation of strategic, tactical, and financial plans;developing goals and measuring performance to the approved goals; organizationaldevelopment; liaison to the public, government, affiliated organizations, and thedevelopment of the association's staff;

Ensures that an annual plan and budget are prepared for and presented to the managingdirectors;

H ires, rewards, disciplines, terminates, and sets the remuneration of, all organizationsemployees under him/her, except for him/herself, in accordance with policy and/or approved budgets;

Acts as the spokesperson for the organization.

Chief Operating Officer (COO): Chief Operating Officer will have some duties and responsibilities such as-

Provide inspirational people leadership for the Management & Employees;

Integrate people through vision, mission, values and organizational structure; Manage day to day operations through effective action oriented approach; Ability to build Managers, domain competencies and unleash innovation; Ability to build a trust based relationship with the CEO; Ability to collaborate with a Founder CEO if CEO is Founder.

Chief Corporate Officer (CCO ):Main duties and responsibilities of Chief Corporate Officer will deal with corporate affairs suchas maintaining liaison with Government and public affairs. By Human resources department, he

will recruit employees, provide training to employees for greater productivity and so on. ByCommercial department, he will deal sales and marketing sides and by Procurement departments,he deals with foreign purchasing, local purchasing, import logistics and warehouse.


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Chief Financial Officer (CFO):The Chief Financial Officer is required to furnish necessary and classified information to the

board of directors along with his analysis and suggestions as the Chief Financial Officer attendsthe board meetings, any issue with financial implications is being discussed, the person likely to

be most in command of these implication is on the spot and immediately available for questions. In order to strengthen and formalize corporate decision-making process, significant issues arerequired to be placed for the information, consideration and decision of the boards of directors bythe CFO. These are:

Annual business planes, cash flow projection, forecasts and long term planes; Budgets include capital, manpower and overhead budgets along with variance analyses; Quarterly operating results of the company as a whole and in terms of its operating

divisions or business segments; Details of joint ventures or collaboration agreements or agreements with distributors,

agents, etc;

Default in payment of principal and/or interest, including penalties on late payments andother dues, to a creditor, bank or financial institution, or default in payment of publicdeposit;

Failure to recover material amounts of loans, advances, and deposits made by thecompany, including trade debts and inter-corporate finances;

Significant public or product liability claims likely to be made against the company,including any adverse judgment or order made on the conduct of the company.

Accordingly, responsibilities towards shareholders, The Chief Financial Officer is required to provide all the necessary data to be presented in the Directors Report. For this purpose Chief

Financial Officer must ensure the following.y The financial statement, prepared by the management of company, present fairly its states

of affairs, the results of its operation, cash flows and changes in equities;y Proper books of accounts of the company have been maintained;y Appropriate accounting policies have been consistently applied in preparation in financial

statements and accounting estimates are based on reasonable and prudent judgment;y International accounting standards, as applicable in Bangladesh, have been followed in

preparation of financial statements and any departure there from has been adequatelydisclosed;

y The system of internal control is sound in design and has been effectively implementedand monitored;

y There are no significant doubts upon the companies ability to continue as going concern;

Moreover, Chief Financial Officer now has extensive responsibilities for internal and externalreporting. All the information required for decision-making by the Board of Directors and Chief Executive is processed and furnished by the Chief Financial Officer. Apart from this, external


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reporting requirement is fulfilled by Chief Financial Officer, the accounts and financialstatements are signed by the Chief Financial Officer before they are sent to concerned authorities

General Managers :Each of General Managers will hold individual department and their Duties and responsibilitiesis formulating policies, managing daily operations, and planning the use of materials and humanresources, but are too diverse and general in nature to be classified in any one functional area of management or administration, such as personnel, purchasing, or administrative services.

Duties a n d Respo n sibilities of Ot h er Ma n ageme n t Team:Middle level management deals with task of implementing the policies and plans formulated bythe top level. It comprises of departmental heads and other executive officers who will lead thegroup of workers to the planned targets and provide them with necessary resources in order toget the job done. This group is responsible for the execution and interpretation of policies

throughout the organization and for the successful operations assigned to the division or departments. In this level the managers have to plan the operations, issue instructions laid by thetop management, collect the resources required and control the work of the men. Managers areresponsible for leading all the function within each department; they provide the guidance andstructure for a purposeful enterprise. Functions to be performed in the middle level managementare-

y Follow the rules and policies formulated by the top management;y Motivating personnel for higher productivity;y Collecting detailed analysis report of the department and the personnels;y Mutual understanding with other departments in the enterprise;y Recommendations to top management.

The lower level in the organization foreman, supervisor executives will be assisted by number of workers carry out the process to be done as per schedule. Their authority and responsibility in theorganization will be very much less compared to other workers. They will have to follow therules and guidelines made out by the higher authorities of the organization. The importance of the functions in this level cannot be overlooked.

The quality and quantity of the work done will depend upon the performances of the workers in

this level how hard they work to attain their goals. The supervisors in this level will have tomaintain standards of the quality of the manufactured product assign duties to the workers as per plan and schedules given by the top and middle level management. They will also responsible for maintaining respect, discipline among themselves and increase the spirit of work among theworkers.


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Salaries a n d Facilities:

Chief Executive Officer (CEO): Basic Salary of Tk. 2,00,000 monthly Two festival bonuses

Profit Share of 3%-5% Twenty days on-paid leave(yearly) Travel Program once in a year with family members at Malaysia Medical Allowances Dhaka Golf Club Membership Golds Gym Member Ship Card Entertainment Allowance of Tk. 150000 per year Full-time Automobile ( Toyota Allion 2009) Full- free accommodation at Ghulshan/Banani Health Care allowances for family members ( 20% of basic salary) Half of education expense of children

Chief Operating Officer (COO), Chief Corporate Officer (CCO), Chief Financial Officer (CFO): Basic Salary of Tk. 1, 20,000 monthly Two festival bonuses Fifteen days on-paid leave(yearly) Travel Program once in a year with family members at Malaysia Medical Allowances Entertainment Allowance of Tk. 100000 per year Full-time Automobile ( Toyota Allion 2009) Rental Allowances ( 60% of the basic salary)

General Managers: Basic Salary 50,000 monthly Transportation Allowances (25% of the basic salary) Two weeks on-paid vacation Medical Allowance Rental Allowances (40% of the Basic Salary) Fieldtrips Travel allowances with family for 3 days and 3 night s at Coxs bazaar

Middle level Managers:y Basic Salary 20,000 monthlyy Transportation Allowances (25% of the basic salary)y Two weeks on-paid vacationy Medical Allowancey Accommodation Allowances (40 % of the basic salary)


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Junior Manager : Basic Salary 10,000 monthly Transportation Allowances ( Tk. 3600 per months)

OR G A N IZ A T I ON STRUCTURE


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FINANCIAL PLAN


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Un derlyi n g A ssumptio n s

Solar Energy Farm, Inc. will have an annual revenue growth rate of 3%-5% per year. The Owner will solicit Tk 3,000,000,000 of equity funds to develop the business.

The Company will invest 25% of its after-tax profits back into the Companys operatinginfrastructure.

Se n sitivity A n alysis

The Companys revenues are moderately sensitive to changes in the general economy. Producedelectricity is comparatively priced with their petroleum/coal based counterparts, and in the eventthat prices decline, the company may see a reduction in its revenues. Only in the event of a steepdrop in the price of petrol based energy products does management anticipate that the companywill have issues regarding top line income.

P RO FORM A Sources a n d A pplicatio n s of Fu n ds

Sources of Fu n dsPersonal funds of founders 3,000,000,000

Net income (Loss) from operations (1,845,880,000)ADD: Depreciation 58,200,000Total fu n ds P rovided 1, 212,3 20 ,000

A pplicatio n of Fu n dsPurchase of equipments 500,000,000Inventory 101,200,000Total fu n ds expe n ded 6 01, 200 ,000

Net i n crease i n worki n g capital 6 11,1 20 ,0001,212,320,000


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P rojected Startup Costs

Initial Lease Payments &Deposits 50,000

Working Capital 400,000,000Personal Properties 750,000Opening Supplies 101,200,000Company Vehicles & Lease Deposits 80,000,000Marketing Budget 1,000,000Miscellaneous unforeseen Costs 250,000,000

Total Startup Costs 833 ,000 ,000

0%

48%

0%

12%

10%0%

30%

P rojected Startup Cost

Initial Lease Payments &Deposits

Working Capital

Personal Properties

Opening Supplies

Company Vehicles & LeaseDeposits

Marketing Budget


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P RO FORM A BA L A NCE S H EET

P RO FORM A BA L A NCE S H EET P art-1

Year- 1 Year-2 Year- 3 Year-4 Year-5

A SSETS

Curre n t A ssets:Cash in Bank 315,000,000 826,969,000 1,304,561,963 1,948,603,909 2,835,893,813Inventory 101,200,000 609,331,290 665,942,280 809,006,176 973,366,840Accounts Receivable 2,455,000,000 1,100,737,660 880,590,128 704,472,102 634,024,892

Total Curre n t A ssets 2,8 71,200 ,000 2 ,53 7,03 7,950 2 ,8 51,094 ,3 71 3 ,46 2,082,18 7 4 ,44 3 ,285,

Fixed A ssets:Land 800,000,000 800,000,000 800,000,000 800,000,000 800,000,000Buildings 215,000,000 215,000,000 215,000,000 215,000,000 215,000,000Less Depreciation 550,000 550,000 550,000 550,000 550,000

Net Land & Buildings 1,014,450,000 1,014,450,000 1,014,450,000 1,014,450,000 1,014,450,000

Equipment 500,000,000 500,000,000 580,000,000 580,000,000 580,000,000Less Depreciation 19,770,000 19,770,000 19,770,000 19,770,000 19,770,000

Net Equipment 480,230,000 480,230,000 560,230,000 560,230,000 560,230,000

Total Fixed A ssets 1,494 ,6 80,000 1, 494 ,6 80,000 1, 574 ,6 80,000 1, 574 ,6 80,000 1, 574 ,6 80,

TOT A L A SSETS 4,36 5,88 0,000 4 ,03 1,717,950 4 ,425 ,774 ,3 71 5,036 ,76 2,18 7 6 ,017,96 5,


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P art-2


L I AB I L I T I ES

Curre n t Liabilities:Accounts Payable 520,000,000 976,489,200 1,432,978,400 1,719,574,080 2,063,488,896Interest Payable 0 0 0 0 0

Total Curre n t Liabilities 520 ,000 ,000 97 6 ,489,200 1, 43 2,97 8,400 1, 719,574 ,080 2 ,063 ,488,8 96

Lo n g-Term Liabilities:Long-Term Loans 1,400,000,000 1,400,000,000 1,400,000,000 1,400,000,000 1,400,000,000Mortgage 600,000,000 500,000,000 100,000,000 80,000,000 60,000,000Total Lo n g-TermLiabilities 2,000 ,000 ,000 1, 900 ,000 ,000 1, 500 ,000 ,000 1, 480,000 ,000 1, 46 0,000 ,000

TOT A L L I AB I L I T I ES 2,520 ,000 ,000 2 ,8 76 ,489,200 2 ,93 2,97 8,400 3 ,1 99 ,574 ,080 3 ,523 ,488,8 96

Year- 1 Year-2 Year- 3 Year-4 Year-5EQU I TY

Capital At the Beginning

of the Year 3,091,760,000 1,845,880,000 1,155,228,750 1,492,795,971 1,837,188,107Investment 600,000,000 0 0 0 0

Net Income/ Loss-

1,845,880,000 -690,651,250 337,567,221 344,392,137 657,288,541Drawings 0 0 0 0 0Capital at the End of theYear 1,845,880,000 1,155,228,750 1,492,795,971 1,837,188,107 2,494,476,649TOT A L EQU I TY 1,8 45 ,88 0,000 1,1 55 ,22 8, 750 1, 492 ,795 ,97 1 1,8 3 7,188,1 07 2 ,494 ,47 6 ,6 49

L I AB I L I T I ES A NDEQU I TY 4,36 5,88 0,000 4 ,03 1,717,950 4 ,425 ,774 ,3 71 5,036 ,76 2,18 7 6 ,017,96 5,545


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P ro Forma In come Stateme n t

P RO FORM A I NCOME ST A TEMENT OF YE A R- 1

Year-11st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total

Sales 16,070,000 96,420,000 578,520,000 867,780,000 1,558,790,000Cost Of Goods Sold 11,249,000 67,494,000 404,964,000 607,446,000 1,091,153,000G ross In come 4,8 21,000 2 8, 926 ,000 173 ,556 ,000 2 6 0,33 4,000 4 6 7,63 7,000

Operati n g Expe n ses:Salaries and Wages 2,000,000 2,000,000 2,000,000 2,000,000 8,000,000

Rent Expenses 1,500,000 1,500,000 1,500,000 1,500,000 6,000,000Storage 300,000 350,000 350,000 350,000 1,350,000Advertising & MktExpense 2,500,000 2,000,000 2,000,000 1,500,000 8,000,000Utilities Expenses 6,500,000 6,500,000 6,500,000 6,500,000 26,000,000Depreciation Expenses 14,550,000 14,550,000 14,550,000 14,550,000 58,200,000Miscellaneous Expenses 250,000,000 250,000,000 250,000,000 250,000,000 1,000,000,000Travel and Vehicle Costs 1,200,000 1,200,000 1,200,000 1,200,000 4,800,000Professional Fees andLicensure 1,500,000 2,250,000 3,375,000 5,062,500 12,187,500Total Operati n g

Expe n ses 280,050 ,000 2 80,3 50 ,000 2 81, 475 ,000 2 82,66 2,500 1,1 24 ,53 7,500E B I T -275 ,229 ,000 -25 1, 424 ,000 - 107 ,919,000 -22 ,3 28, 500 - 6 56 ,900 ,500Interest (14%) -38,532,060 -35,199,360 -15,108,660 -3,125,990 -91, 966 ,070E B T -236 ,6 96 ,940 -2 16 ,224 ,6 40 -92 ,81 0,3 40 - 19,202 ,510 -5 6 4,93 4,43 0Taxes 0 0 0 0 0

Net P rofit -11 0,52 8, 000 - 3 13 ,799 ,6 00 - 147 ,6 70 ,400 -27 6 ,88 2,000-

1,8 45 ,88 0,000

0

2,000,000,0004,000,000,000

6,000,000,0008,000,000,000

1 2 3 4 5

P ro Forma B ala n ce S h eet

TOTAL ASSETS TOTAL LIABILITIES TOTAL EQUITY


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P RO FORM A I NCOME ST A TEMENT OF YE A R-2

Year-21st Qtr 2nd Q tr 3rd Qtr 4th Q tr Total

Sales 17,194,900 103,169,400 619,016,400 928,524,600 1,591,288,361Cost Of Goods Sold 12,036,430 72,218,580 433,311,480 649,967,220 1,167,533,710G ross In come 5,1 58,470 3 0,950 ,8 20 18 5,704 ,920 27 8, 557 ,3 80 42 3 ,754 ,6 51

Operati n g Expe n ses:Salaries and Wages 6,000,000 6,000,000 18,000,000 18,000,000 48,000,000Rent Expenses 1,500,000 1,500,000 1,500,000 1,500,000 6,000,000Storage 3,900,000 350,000 350,000 350,000 4,950,000

Advertising & MktExpense 1,000,000 1,000,000 1,000,000 1,000,000 4,000,000Utilities Expenses 6,500,000 6,500,000 6,500,000 6,500,000 26,000,000Depreciation Expenses 14,550,000 14,550,000 14,550,000 14,550,000 58,200,000Miscellaneous Expenses 250,000,000 250,000,000 250,000,000 250,000,000 1,000,000,000Travel and Vehicle Costs 12,000,000 1,000,000 1,000,000 1,000,000 15,000,000Professional Fees andLicensure 7,593,750 18,281,250 11,390,625 27,421,875 64,687,500Total Operati n gExpe n ses 3 03 ,043 ,750 299 ,181, 250 3 04 ,290 ,6 25 3 20 ,3 21,8 75 1, 226 ,83 7,500E B I T -297 ,88 5,280 -2 6 8, 23 0,43 0 -118, 585,705 -4 1, 76 4,495 - 803 ,082,849

Interest (14%) -41,703,939 -37,552,260 -16,601,999 -5,847,029 -11 2,43 1,599E B T -25 6 ,181, 3 41 -23 0,6 78,1 70 - 101, 983 ,706 -3 5,917,466 -6 90 ,6 51,250Taxes 0 0 0 0 0Net P rofit -25 6 ,181, 3 41 -23 0,6 78,1 70 - 101, 983 ,706 -3 5,917,466 -6 90 ,6 51,250


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P RO FORM A I NCOME ST A TEMENT OF YE A R- 3

Year-31st Qtr 2nd Qtr 3rd Q tr 4th Q tr Total

Sales 993,521,322 1,702,678,546 1,821,866,045 1,949,396,668 6,467,462,580Cost Of Goods Sold 695,464,925 1,191,874,982 1,275,306,231 1,364,577,667 4,527,223,806G ross In come 298, 056 ,3 97 5 10,8 03 ,56 4 54 6 ,559 ,81 3 584,81 9,000 1, 940 ,23 8, 774

Operati n g Expe n ses:Salaries and Wages 36,000,000 36,000,000 54,000,000 81,000,000 207,000,000Rent Expenses 500,000 500,000 500,000 500,000 2,000,000

Storage300,000 350,000 350,000 350,000 1,350,000

Advertising & MktExpense 1,000,000 1,000,000 1,000,000 1,000,000 4,000,000

Utilities Expenses 6,500,000 6,500,000 6,500,000 6,500,000 26,000,000Depreciation Expenses 14,550,000 14,550,000 14,550,000 14,550,000 58,200,000Miscellaneous Expenses 250,000,000 250,000,000 250,000,000 250,000,000 1,000,000,000Travel and Vehicle Costs 1,500,000 1,500,000 1,500,000 1,500,000 6,000,000Professional Fees andLicensure

32,906,250 77,625,000 39,487,500 93,150,000 243,168,750

Total Operati n gExpe n ses

3 43 ,256 ,250 3 88, 025 ,000 36 7,88 7,500 44 8, 550 ,000 1, 547 ,718, 750

E B I T -45 ,1 99 ,8 53 122 ,778,56 4 178, 6 72 ,3 13 136 ,26 9,000 3 92 ,520 ,024Interest (14%) -6,327,979 17,188,999 25,014,124 19,077,660 54 ,952 ,8 03 E B T -3 8,8 71,8 74 105 ,589,56 5 153 ,6 58,18 9 11 7,1 91, 3 40 33 7,56 7,22 1 Taxes 0 0 0 0 0

Net P rofit -3 8,8 71,8 74 105 ,589,56 5 153 ,6 58,18 9 11 7,1 91, 3 40 33 7,56 7,22 1


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P RO FORM A I NCOME ST A TEMENT OF YE A R-4 & YE A R-5

Year-4 Year-5

Sales 7,001,028,243 12,601,850,838Cost Of Goods Sold 4,900,719,770 8,821,295,587G ross In come 2,1 00 ,3 08, 473 3 ,780,555 ,251

Operati n g Expe n ses:Salaries and Wages 310,500,000 473,512,500Rent Expenses 2,000,000 2,000,000Storage 1,350,000 1,350,000Advertising & Mkt Expense 1,000,000 1,000,000

Utilities Expenses 26,000,000 26,000,000Depreciation Expenses 58,200,000 58,200,000Miscellaneous Expenses 1,000,000,000 2,000,000,000Travel and Vehicle Costs 9,000,000 16,500,000Professional Fees and Licensure 291,802,500 437,703,750Total Operati n g Expe n ses 1, 6 99 ,852 ,500 3 ,016 ,266 ,250E B I T 400 ,455 ,973 76 4,289,001 Interest (14%) 56 ,063 ,8 36 107 ,000 ,46 0E B T 3 44 ,3 92 ,1 3 7 6 57 ,288, 541 Taxes 0 0Net P rofit 3 44 ,3 92 ,1 3 7 6 57 ,288, 541


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P ro Forma Cas h Flow



Cas h In flows:Cash From Operations 250,000,000 300,000,000 360,000,000 432,000,000 518,400,000Cash From Receivables 0 2,455,000,000 1,100,737,660 880,590,128 704,472,102Operati n g Cas h In flow 250 ,000 ,000 2 ,755 ,000 ,000 1,46 0,73 7,66 0 1, 3 12,590 ,1 28 1, 222 ,872 ,1 02

Ot h er Cas h In flows:Equity Investment 600,000,000 0 0 0 0Increased Borrowing 240,000,000 0 0 0 0Sales of Business Assets 0 0 0 0 0A/P increases 120,000,000 856,489,200 576,489,200 1,143,084,880 920,404,016Total Ot h er Cas h In flows 9

6 0,000 ,000 856 ,489,200 57 6 ,489,200 1,1 43 ,084,88 0 920 ,404 ,016

Total Cas h In flows 1, 210,000 ,000 3 ,6 11, 489,200 2 ,03 7,226 ,8 6 0 2 ,455 ,6 75 ,008 2,1 43 ,27 6 ,118

Cas h Outflows:Repayment of Loan 0 0 166,742,240 176,746,774 187,351,581A/P Decreases 520,000,000 456,489,200 976,489,200 743,084,880 1,320,404,016

A/R Increases 2,455,000,000 (1,354,262,340) (220,147,532) (176,118,026) (70,447,210)Asset Purchases 1,595,880,000 1,651,880,000 280,000,000 336,000,000 403,200,000Dividends 0 0 0 0 0Total Cas h Outflows 4,570 ,88 0,000 754 ,1 06 ,8 6 0 1,20 3 ,083 ,90 8 1, 079 ,713 ,6 29 1,8 40 ,50 8, 3 87

Net Cas h Flow (3 ,36 0,88 0,000) 2 ,857 ,3 82,3 40 83 4,1 42 ,952 1, 3 75 ,96 1, 3 79 3 02 ,76 7,73 2Cas h B ala n ce (3 ,36 0,88 0,000) (50 3 ,497 ,66 0) 33 0,6 45 ,292 1, 70 6 ,6 06 ,6 71 2,009 ,3 74 ,403

02,000,000,0004,000,000,0006,000,000,0008,000,000,000

1 2 3 4 5


Total Cash Inflows Total Cash Outflows

Cash Balance


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B reak-Eve n an alysis

We assume the average selling price is Tk 4 per unit. Fixed costs in year-1 is Tk 1,124,537,500and since, Cost of Goods Sold is 70% of sales revenue, we can assume a variable cost per unit of Tk 2.8.

Using these calculations we can determine the break-even point in units as follows:

Total Fixed CostsB/E=

Selling/unit Variable Cost/unit

1,124,537,500=

4 2.8

= 937114583.3 units


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STRATEGY

IMPLEMENTATION


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Our implementation strategy for our business plan will differ with the life stage of our business.

Formi n g t h e Compa n y: We will present our business plan to investors withintention to make them interested to invest in our projects. From the interestedinvestors we will chose the best four on the basis of their credit history, socialreputation, and influential power on corporate. Each of them will have to investTk. 45 crore initially which will make Tk. 140 crore for the company. With thisamount of money company will buy land, build building and buy machineries.And these items will be used as collateral to the bank and we will borrow another Tk.140 crore from the bank from which we can offset our other expenses.

Recruiti n g H eads : In the next step we will recruit our key employees fromdifferent companies who are in the same industry (like Summit Power, Energrpac,Rahim-Afrooze etc.) with higher incentives. These employees will be key player

for establishing our company.

In troductio n Stage : The first two years of our business will be in introductionstage. In those days we will create awareness among our target market regardingthe brand name G_Power. They will have to know the existence of our companyfirst. We will invest huge amount of money in our PR activities in this stage. Alsowe will control other administrative costs in this stage. Our net income will benegative all over in this stage.

G rowt h Stage : Our initial growth stage will be from the beginning of the 3 rd year

to the end of the 7 th year. In those years the demand of our service will be raisedsignificantly due to our marketing activities during the introduction stage. So wewill need more people to produce and deliver this service. So we will hire moreemployees and train them in this stage. In addition to that at the beginning of thisstage we will be able to recover our break-even. So we can charge lower in thisstage than the previous one. This will also create new demand for our services tothe medium and small factories.

G oin g P ublic : We know that Govt. is not taking any tax from any power provider until first 5 years of its establishment. So during the first five years we are gettingthis benefit. At the end of the 5 th year we will launch our IPO and go to public toget more investment for our growth. This will increase our growth stage of the

business. And keep us away from getting into maturity stage.

In vestme n t o n R&D : We will not withdraw our profit from the business until the5th year. Our net profit will be re-invested in our own business. Much of them will


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be invested in Research and Development department for innovation of newtechnology and any cost controlling method. We will give our emphasis on

producing electricity from wind mill, different plants, float of rivers etc.

G oin g G lobal : After doing business for ten years in Bangladesh we will enter inthe maturity stage. That is our high time to go into the global business. By goingglobal we actually mean that we are going to expanding our business in our neighbor countries like Sri-lank, Pakistan, Afghanistan etc. as operating in thesecountries will be much cheaper. Furthermore it will give us competitive advantageas we will enter into the industry which is in the growth stage


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CONTINGENCY PLAN If our business fails for some unavoidable reasons we just cant get out of this huge investmentover a night. What we will do is that we will transfer our business from B2B to B2C. To do thiswe will begin to produce mobile chargers and laptop charger with our solar energy, solar IPSwhich will reserve the electricity from the solar energy, Solar battery which will replace intractors in villages and this battery will also available for auto rickshaw. By doing so we will weoffset some losses from our original business plan. We will gradually reduce investment and paythe interest regularly so that we cant get bankruptcy.


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B IB LIOGRAPHY

WORLD TRADE ORGANIZATION AND T HE READYMADE GARMENTINDUSTRY OF BANGLADES H : A CRITICAL ANALYSIS

M Golam Robbani, 1999 The financial express- Mustafa K. Mujeri, A pril 16, 2008.

APPENDIX

final entire plan power)

Documents