business plan for ceramic company
DESCRIPTION
Business plan for starting a new ceramic goods manufacturing company.TRANSCRIPT
Entrepreneurs:Yakin Reza
Mahbub Muctadir.Sahedul Hoque
Ahmed Aman Yousoof.
WelcomeSandstone Ceramics
Overview of selected industry
1st Manufacturer: Tajma ceramics in 1958.
Monno Ceramic Industries, Shinepukur Ceramic Industries, Bengal Fine Ceramic Industries, Standard Ceramic Industries and Peoples Ceramic Industries.
Overview( Cont.)Estimated growth of 80% in next 2 years.Exported goods:
More than Tk 3,000 crore has so far been invested in the sector from home and abroad.
Around 20 percent annual growth rate.
2006-07 Tk 219 crore 2007-08 Tk 270 crore 2008-09 Tk 235 crore 2009-10 Tk 273 crore 2010-11 Tk280 crore
Overview (Cont.)RAK Ceramics (Bangladesh) Ltd, a UAE-
based company (2003), now grabs one-fourth of the domestic market share producing 6.0 million SQM of tiles every year.
According to the industry people, sales of the locally produced tiles did not go down even in the past two years, the worst time for the country's construction industry.
Industry
analysis
Future outlook and trendsFloor tile( Homogeneous)Wall tileRoof tileCommodes.Basins.
CompetitorsRAK ceramics.(polished tile)
Akij ceramics( New rising company).
ATI ceramics.
Fu wang ceramics.
Description of ventureProduct line:TilesSanitary ware.
Size of business: Initial investment around 3.5 billion BDT.
Production goal:Tile: 816000 units(yearly)Sanitary ware: 82000 units.
Abell’s FrameworkWhat is Customer’s need?good quality. durable ceramic wares.cheap price that fulfils their specific needs.New and innovative designs.How that can be fulfilled?producing enough units. decreasing the operating costs.
Abell’s framework( Cont.)
How my organization can fulfill the need?Going for huge production. Getting out from the traditional approach:
Shapes and designs.Selling in lowest possible cost.
PESTAL Analysis
Political, legal and environmental factors
Vulnerable one with the first two years of a democratic government deemed stable.
The political unrest is creating Hortals, dhoromoghots etc.
Stability of Govt.Anti trust regulations: Still not any.Tax laws: Raw materials: 7.5-15%.Special incentives: LDC.
Political, legal and environmental factors(Cont.)Foreign trade regulations:Laws on hiring and promotion.
Environmental protection laws:Poor drainage system.Embargo on cutting hills.
Economic factorsGDP US$ 105.56 billion
GDP Growth 6.70%
Inflation 11.2%
Exchange rate
Interest rate
1 US$=Tk 83.75 (average)15-18%
Social factors Lifestyle changes.
Career expectation.
Consumer activism.
Rate of family formation.
Growth rate of population:1.566%
Regional shift of people.
Life expectancy and death rates
Technological factorsExcellent designs and patterns.
Unique ambience patterns.
Bone china.
Investment on R&D sector: 5% of NET Income.
Monocuttura technology.
Product innovationsSpecially printed tiles.Circle shaped and huge sized tiles.
Material used for innovative production:
New red high efficiency mud. Imported raw materials like soda feldspar,
potash feldspar, clays from India, Indonesia, Malaysia, and Thailand. Fritz & glazes from Spain & other European countries.
Testing: A laboratory of highest standards.
SWOT Analy
sis
Strengths
Creativity over another potential market.
Less competitors.
Spread of housing Business.
Weakness
Political unrest of the country.
Power Shortage.
Lack of pressure in Gas.
OpportunityRising Industry:
Yearly growth of 6.0% in Bangladesh and a whole growth of 800% In the whole world.
Less competitors( Most of the ceramic industries produce tableware)
Market leaders are mainly focusing on the international market.
ThreatsPowerful competitors are already
penetrating the market.
New rising companies: Akij Ceramics.
Production process is long.
Productio
n Proces
sTiles
Raw material suppliers1. Habib Enterprise.2. Mila Chemicals.3. Tandem Chemicals.4. Topflight CO.
Machinery
Ball mill B390 D
Pan mixer P15 HD 5000 litre
Tiles machine P15 HD
Economic Air dryer
Ball mill (Glazer)
Glazed tile presser
Firing Machine.
Production
processSanitary ware.
Machinery and equipment
Powder mixer PM 125D
Sanitary dicer (KT 398J)
Spray glaze maker(SH 343 S)
Operational
plan
New technologies used in production
SKSZ series high speed rotating Dryer
Water jet cutting( Used by RAK ceramics)
High efficiency red mud( By product can be used as 53% cement)
Marketing plan
PricingHomogenous tiles( Only glazed): 48 Tk per
square feet.
Roof tiles ( Only Glazed): 48 Tk per square feet.
Wall tiles ( Only Glazed): 48 Tk per square feet.
Basins: 2500TK per Piece.
Commod: 5000 Tk per piece
DistributionDistribution through distributors.
There will be two type of distribution.
Type 01
Type 02
PromotionPromotional activities for our final
customers:TVCNewspaper, magazine.Billboard.Promotional activities regarding our
dealers:Trade incentivesTrade shows and exhibits
Organizational
plan
Form of ownership: It is now a limited company.Each one of us will invest 26.25 crore and
the distribution of profit will be equal.Any 1 of our parents as the chairman.Planning of the company bringing in DSE.
(49%).
Roles and responsibilities of partnersYakin reza: Vice president(Finance).
Mahbub Muctadir: Vice president(HR).
Mohammad Sahedul Hoque: Vice president ( Marketing and sales).
Ahmed Aman Yousoof: Vice president ( Production).
Assessment of riskWeaknesses of Business:1. Lack of domestic suppliers.2. New Company.3. New entrepreneurs.4. Misallocations of funds.5. Low priced tiles in some other companies.
Contingency plansLoan from IFIC bank in 2019 for 2nd plant.
Every partner has their nominee to perform in case of their absence.
In case of sudden decrease in demand: Tiles only.
Storage of raw materials: 2 years.
Forecasted Net Income.
Forecasted Break-Even Point.
Sources and applications of funds1. Agrani bank loan. (130 Crore). Based on factory equipment.
2. IFIC Bank.
3. Our own funds.
A big investment in this field of production, is on the way. This ceramic industry emits less waste and the by products are highly usable.
This industry needs enough manufacturers to get a perfect competition.
Traditional designs are about to extinct. To, setup an industry of average capacity, it may
take 100 crore. But the return is much higher. There are not too many competitors and also, this is
not a monopoly.
So maybe, this will be the right time to setup a factory.
?