Company profile

A to Z is a small business encouraging a complete hand on approach to

quality control

This brand in lahore but it is aiming for nationwide and global presence

in future. The mission is to be the premier marketer and worldwide

distributors of fruit pulp products company is committed to many facture

fruit pulp products in modern state of the art found processing unit

under strict quality controls.

The company aimed at to offer good quality products at reasonable price

and also aim to preserve the natural properties of raw fruits.

The company doesn’t want differentiate itself on size but for its

commitment to quality to consume, service and abil ity to respond every

to charge.

By dealing with company the customer would be confident of receiving

the

Premier quality

Competitive pride

Punctual delivery

Uncontaminated fruit pulp

Our attention to quality means that the best in different parts of

Pakistan. Grown produce in available any where in Pakistan.

In future A to Z wants to market its products internationally and their by

enhance the image of Pakistan.

Vision

To be the Pakistan leading value supplier of fruit pulp products.

Mission

To be leader in introducing of new flavor or fruit pulp which are not

readily available. Through close customer contact and excellent

relationship we wil l meet the needs of the customer wherever we can. A

to Z wil l secure sufficient profit from free cash flows from operations to

sustain its stabil ity and finance further growth.

We wil l ad value to our community by making a friendly and famil iar work

environment.

Focus

As a startup company new to the industry and introducing new products

we must be focused and work hard to create acceptance for our self and

for al l products within market place. Company wil l focus on

quality

steady and discipl ine patron on store

customers and keeping them happy

Products

Init ial ly company is providing the pulp of different fruits in tetra packs

and tins. This is quit a new sort of products in the market which is not

readily available. Different f lavors of fruits wil l be available in the market

in packing from which provide customers two main benefits

nutrit ion’s (hygienic)

convenient (easy to use)

Detail of product is as under pulp

mango pulp

papaya pulp

strawberry pulp

l itchi pulp

cherry pulp

peach pulp

Size of business

The business wil l take initiative with following faci l it ies

Location and land

The project wil l setup on Shehbaz Pur Road where most of industries are

also working. An area about 2 Acres wil l be required. While selecting the

site the availabil ity of water, power and means of communications were

given due consideration.

Building

Building and other civi l construction work wil l have total covered

area of 3489 square meters. It includes

machine hall

office block

cold storage

workshop

godowns

boiler house

gate office

etc.

Detail of building is in annexure 1.

Machinery & Equipment

Most of plant and machinery wil l be imported they wil l provide complete

now how of machinery and equipment at any time ensuring an

interruption free running of machinery. Many of required machinery and

office equipment wil l be purchased locally. Details are in annexure 1.

Technical staff and labor

For the productions department of plant a total no. of 60 personnel

would be needed

technical 17

skil led 13

unskil led 30

More over 25 people would be required for administration sales and

purchase departments.

The total personal requirement of project wil l be 85 persons. During the

period of machinery installation and trai l commissioning of the plant

technical experts wil l also be employed. Cost of these personal wil l be

included in installation cost.

Founder and management team

The management team is comprised of

Nadeem Iqbal

Muhammad Irfan

I jaz-ul-Hassan

Sidra Yaqoob

Management team wil l use different advisors from their lower team.

Management team is highly motivated.

Project Implementation Chart

1. Land Acquisit ions

2. Letter of credit for imported machinery

3. Building construction Started

4. Building construction completed

5. Local Machinery Order Placed

6. Local Machinery Arrival

7. Imported Machinery Arrival

8. Installation

9. Trial Run

2

3

4

11

11.5

12.5

13

15

16

0 5 10 15 20

Trial run

Installation

Importedmachinary arrival

Local machinaryArrival

Local MachinaryOrder placed

Buildingconstructioncompleted

Buildingconstructionstarted

Letter of credit forimportedmachinary

Land Aquisition

Industry Analysis

Fruit processing industry in Pakistan includes many companies. Many of

them are working at very large scale and doing fruit processing as one

part of their big businesses. These companies are not making available

such process fruit pulp in local marketing in small packing to the

individual customer. They either export such fruit pulp in bulk to foreign

countries or they provide it on demand to some local Pakistani

companies. Who use these pulp as raw material in their further

production e.g. ( juices, beverages). Many juice companies also process

these fruits on their own and use it in their own products e.g. Simba

(Rahim Yar Khan) collect mangoes from this mango producing belt and

after process use it in its simba mango juices.

So A to Z enterprise is coming with the aim to process almost al l kinds of

possible fruits and make it available to individual customers even in off

season.

Future Outlook and Trends

Research shows that such business trends have very vast scope in it.

There are chances of huge increase in the user of such product because

of nutrit ion and convenience factor.

At the same time there is also a smart chance of increasing in the number

of producers of such product. Many new firms can enter in the market

with same kind of product due to the potential of market.

Analysis of Competitors

At its initial time of operations company is not facing any kind of competition. Because

of the unique nature of its product. So, there is no direct competition.

But as far as fresh fruit in the market is concerned, it could be an indirect competitor of

our product. But the parishablity of this fruit is its weakness. But our product has greater

shelf life and can be used for long time even in off season. There are very much chances

of the competitor to arrive in future. But company will gain the benefit of first to enter

in the market and will capture a huge no. of customers as the satisfied loyal customers.

SegmentationNo company can produce a product that can satisfy the needs of all customers in the

market. This is why market is divided into groups of similar customer and appropriate

groups which are selected for the firm to serve.

A to Z company divided the market geographically into two parts that are

1. Urban

2. Rural

Market

Urban Rural

Lower class Middle class Upper class

Target market

Out of these two parts the rural part is larger in number but contains very small no of

customers that have capacity to buy our products and/or lack of awareness.

On the other hand urban section is smaller as compared to rural section but contains

larger no. of potential customers. And it is easy to reach this segment and provide our

product.

Psycho graphically A to Z Enterprises divides the urban section into three segments i.e.

Middle, Upper and Lower class. Out of which A to Z is going to focus on middle and

upper class. So our target market is middle and upper class.

Market Prospect of Fruit Processing and Preserving

Pakistan is one of the few countries which have many verities and range of fruit (e.g.

Mango, Citrus Fruit, Apple, and so many). In Pakistan all different seasons come at their

full swing. So, Pakistan has almost all kinds of fruits that nourish in different weather

conditions.

It has been estimated that large quantity of fruit (15% to 20%) is spoiled in harvesting,

transportation and marketing during its season. This preservation of such fruit will help

in reducing spoilage and wastage rate. This will also have positive effect on country’s

economy.

Therefore such preservation of fruit pulp has great potential which can be further

developed by providing such small consumer packaging to the people in the market.

Climate

Whenever you start a new venture or operating an existing venture macro environment

does have its influence on it. Scan of the external macro environment in which the firm

operates include following factors

Political

Economic

Social

Technological

Environmental scan

External scan Internal scan

Macro environment Micro environment

PEST

Political factors

Political factors include government regulations and legal issues like employment laws,

environmental regulations, and political stability. There are no industry specific

employment laws. The several employment laws are applicable to our company. There

no specific environmental regulations applicable to our company because we are not

producing any hazardous waste material.

However in order to stabiles food processing company we will not only have register our

company bet will also have to take permission from food department. Their inspectors

will constantly check our process and we will have to keep our process up to mark.

Economic factors

Economic factors affect the purchasing power of potential customers and the firm’s cost

of capital For example

Economic growth

Interest rates

Inflation rates

Pakistan has made a rapid economic growth in previous two to three years. Pakistan’s

foreign exchange resources have increased. In Pakistan industry is growing. Pakistan’s

economic growth hit 20 years high. Interest rates affect firm’s cost of capital. In Pakistan

now a days.

Interest rates are low, which means low cost of capital (financial charges) which will

have positive influence on A to Z Company.

Although inflation rate is high in Pakistan but employment is also increasing in govt. and

private sector also poverty rate is decreasing which is having positive effect on

consumer’s purchasing power and our product will in the purchasing range of

consumers.

Consumers today have a larger disposable income.

Urban populations are growing rapidly.

Research suggests that fruit pulp sales increase if more awareness

is created and the product is made more available to the consumer.

Social factors

Social factors include general cultural and social tradition, norms and attitude. While

these values changes slowly such changes often bring about the need for new products

and services.

If we look in our society there is change in our values clearly visible i.e. people are more

conscious about hygiene and contamination in food articles. Moreover convince in use

of things, is what people in our society want. Keeping in view this change in social values

A to Z Company is going to launch its product Fru2 which serves the both needs i.e.

1. Fru2 will provide fruit pulp in tetra pack with no chance of contamination and

according to hygienic standards.

2. Fru2 will provide fruit pulp which is ready to use / eat so convenience is there

that is just open the pack and use fruit pulp. No need to washing fruits, peeling

of an extraction of pulp.

Social and cultural factors also place constraints on products or services which are

contrary to social or cultural values. But there is nothing in Fru2 which is in contrary to

the social or cultural values.

Technological factors

Technological factors can lower barriers to entry and minimum efficient production

level.

Some technological factors are,

R&D activity

Automation

Rate of technological change

A to Z company is a new company launching its first product in market that is A to Z is in

its initial stage and hence cannot afford to indulge in R&D at this initial stage however

when A to Z will be stabilize it will certainly involve in R&D.

A to Z company will use totally automated plant although the technology is changing

rapidly now a days but according to the regions and consumer demands there will be no

need to update or replace the plant in near future.

SWOT Analysis

Strengths

Competitive advantages

There is even not any single competitor producing such kind a product in the market.

Innovative aspects

Another edge which we have is the brand we are launching is not currently available in

the market this is a new brand with an innovative style.

Right products, quality and reliability

The product manufactured by our company is high in quality and taste. It remains fresh

whenever consumer may purchase it and use, because it is preserved very carefully.

Better product life

Our product is preserved by using special equipments and ingredients under the

supervision of specialists so it has a better and greater life and durability.

Weaknesses

Lack of awareness

One weakness of our product which is very necessary for recognition in the market is

the awareness which it currently don’t have. Because we have to start our business in

the existing market with a new product which is unknown to the potential customer.

Continuity in supply chain

As this is a fruit product and our plant will have to be continuing in production. So we

have to arrange raw fruits from fruit market and some farm owners but company

initially may face difficulty in getting continuous supply of fruits due to lack of strong

relations with suppliers.

Seasonal variations in sale due to price

Because it is high priced product as compared to its indirect substitute (fruit) especially

in that fruit season. So it can become the reason of its low sale volume.

Budget constraint

This is another problem the company can face initial operations.

Opportunities

New markets

Because it will be a new product which is not available in the market so it’s a chance for

us to grow up our business from local market to other new markets (nation wide and

internationally).

Increase of depth in product line

Along with different fruit pulp (mashed and crushed) the company can go towards the

fruit jams, juices and pickles

Better supplier deals

After early years of operations and having good reputation and strong footing in the

market the company will have an opportunity to build better supplier deals and

relations.

Threats

Competitor intentions

There is a large and free market to enter easily for any interested person to come in.

And there are many other firms having potential to enter in the market. So there is a

threat for intense competition.

Another big threat for this product is indirect competition in the form of available fruits

in the market. And which can satisfy the desire of fruit taste in low price as compared to

our product’s price.

Market demand

Majority of our country is belonging to middle and lower class. But our target market is

middle class and upper class. Neglecting the major section of lower class can become a

great threat for us in future. So the demand for our product will be improving in the

market or not is still a question mark and it can be a threat for us in future.

Indirect Substitute

Available Fruit in the market is the indirect substitute of our product and that can be the

reason of reduction in the sales.

Customer Analysis

Profile of typical users of fruit pulp is

Male / Female

Lower middle, middle and upper income class

People from all age groups

People who don’t like artificial flavors and essences.

These will likely to be the users of pulp.

Our research, which was conducted through questionnaire and personal

meeting shows that 95% of upper income group gave their healthy

response to buy fruit pulp and 65% of middle income group shows their

healthy response towards fruit pulps.

Potential commercial users of our product also show their high interest in

our new products. In our research, 80% of people say yes to the question

that they like off season fruit.

What will make people to buy Fru2?

After having analysis, following things come to surface, that will make

people to buy Fru2.

Off season fruits

Quality of fruit and packaging

Convenience in use.

Production Policy

A-Z will outsource production aspect where possible

Quality checks are in place throughout the assembly process

I future the company is aiming at to have programs like TPM and TQM, to be

introduced and implemented in its operations.

Strategic Options

There were two strategic options in front of A-Z management

Either to do complete manufacturing and packaging on its own

Or to subcontract some of its processes for example to get ready pulp from

some company etc.

But management decided to install a plant on which all processes of preservation of

fruit pulp will be carried out under strict quality measures.

Production Process

The production plan will be carried out under following series of steps.

Grading:

The fruit undergoes grading process where bad quality and damaged fruit is removed.

Washing:

After grading fruit is transferred to the washing unit. Here it is rinsed by sprays as it is

lifted out by elevators.

Brushing:

In the brushing unit the dirt which may cling to the fruit is removed by brushes.

Inspection:

Inspection unit consist of roller conveyer on which the f5ruit rotates as it moves on.

Here unsuitable fruit is removed manually.

Fruit peel off and pulping:

After inspection fruit is sent to the unit where it is peeled off and the task of extraction

of pulp is done. The extracted pulp is then discharged into mixing tanks where the

preservative ingredients are added to the pulp.

Pasteurization:

To eliminate the chances of the bacterial attack the whole pulp is then passed through

the plate heat exchanger where all the pulp is heated for few seconds.

Cooling and Storage:

The pulp is then cooled for storage and packing. Then this is packed in tetra pack and

tins to be sent to the market.

(The process flow chart is shown on next page.)

Grading

Washing

Brushing

Inspection Waste Products Removed

Belt Elevator

Cutting And Pulping

Mixing Tanks Add Preservatives

Pump

Pasteurization

Pump

Cooler

Packing

Machinery and Equipment

The company will import most o fits machinery from Sweden. Many of remaining

machinery and office equipment twill be purchased locally. The detail of the machinery

to purchased is listed down in annexure –II.

Availability of Raw Materials

The company will preserve many fruits and will ensure the availability of each kind of

fruit from the main production reign of that fruit. i.e. the area where it is produced in

huge quantity. For mangoes the company will mainly focus on the district Rahim Yar

Khan and Multan. Fazal Kareem and Co. will be the major supplier of mango for A-Z.

Fazal Karim and Co. is the very large contractors of mango orchards. Many other small

suppliers will also be used to fulfill the demand. The apple, strawberries, papaya etc, will

be supplied by Chaudry Ghafoor and CO. This company also is a very big supplier of fruit

which are usually produced in cold areas like Quetta Peshawar and Northern Areas.

Many other huge companies like Imtiaz Traders ( www.imtiaz.biz) and Multifoods

(www.multifood .com) will also be used as big source of supply of raw fruits.

Operational Plan

For any manufacturing or non manufacturing company this plan should include as part

of business plan. This section goes beyond the manufacturing process and describes the

flow of goods and services from production to the customers. It includes inventory and

storage of manufactured products shipping inventory control procedures.

The company after having forecasted sales figures from sales personnel and distribution

channel will manage their raw materials and will order the suppliers. The company will

also store the fruit in raw condition to get advantage of low prices in the production

season of the fruit. It will also help the company the demand of customers in off

seasons. For this purpose cold stores will be used. Efficient and excellent stock controls

will be used. Stocks will be managed through software’s. These soft wares will help

company to instantly access all raw materials on hand.

After production the company is using very efficient distribution channel to make

available the products to the customers. The flow of the product from company to

customers will be as under:

Company

Wholesalers

Retailers

Customers

Company will use very good system of logistics in which efficient order processing

techniques will be used to fulfill the order as quickly as possible. The warehouses

of the company are located at such places ( detail in distribution ) from where it would

take less time to make product available in the market. In future the company is aiming

at to reduce its inventory management cost.

Marketing Plan

Objectives

Grow and maintain category leadership

Achieve 15% of target market share by 2007

To achieve 26,00,000 Sales in first year

To grow revenues 18% each year for the next two years

Marketing Strategy

Our marketing strategy will emphasize the strengths of both our company and our

products. We will position ourselves as an aggressive, innovative company that supplies

the market with new, high-quality products. Our marketing strategy will be based on

developing awareness of our product among customers. We will do this through

targeted advertising campaign. We will position ourselves in trade show and within

industry publication, to reinforce this marketing strategy. Our brochures, letterhead,

and business correspondence will further reinforce these concepts.

We also recognize that it costs six times more to attract a customer than to retain one.

To that end, we will operate under the principle that our best marketing is an

exceedingly satisfied customer.

Product

Brand name

The core of any business is brand. It is the powerhouse of the enterprise.

Brand name got a lot of importance because it is the name of brand which a potential

customer of comes to know first.

We choose the brand name Fru2

Why

By keeping in view the points that good brand name create positive image on the

customers and it should depict the features of the product, we choose Fru2, following

are the reasons

Concise & easy to pronounce

Name has two points Fru & 2

First part creates a sense of fruit related product in the mind of potential customer.

They can imagine that product is all about Fruits.

The second part which is 2 shows the two main features of our product.

1. Nutrition (Hygienic)

2. Convenient (easy to use)

Quality

We are focusing on to provide customers with the quality product. We are using quality

raw materials (uncontaminated fruits).

We have a strong quality control mechanism in our food processing unit where in all the

incoming as well as outgoing raw materials are checked for market we are adopting

programs on TQM so as to produce flawless products.

Scope of product line

This is quite new idea to provide customer with Fruit pulp which is not readily available

in the market.

Research shows that there is very huge size of potential customers for such product so

the scope of this product line is very vast.

Packaging

Safe, distinctive & unique packaging is one method of attracting the customers. We are

doing so by taking following steps.

1. We are providing products in tetra packs and tins.

2. Using very attractive color schemes to attract the attentions of customer.

3. We will use packaging as a good source of communication e.g. to tell customers

about discounts the use of product.

Price

Pricing strategy

Because we are introducing new product in new category so we will use price skimming

strategy.

Before deciding this strategy we consider 4P’s that are the base of setting a price and

that have a very heavy influence on price.

1. Cost

As a starting business the cost will be a little high so we have to set a little high price.

2. Consumer demand

Research shows a good number of our potential customers so there is good demand for

our product.

3. Competition

There is no direct competition for our product so we can afford to charge a little high

price.

4. Government control

Our product will not suffer as such by Govt. control.

Although we will use skim pricing strategy, but yet we will not set too much high price

for following reasons

a. To make quick acceptance of our product

b. To discourage competition

List PriceStrawberry, Papaya’ Cherry Rs.50/250 grams

Mango, Peach, Palm Rs.40/250 grams

Missed Fruit Rs.45/250 grams

Crushed & Toppings

Pineapple, Strawberry, Papaya, Cherry Rs.60/250 grams

Apple, Mango, Peach Rs.45/250 grams

Mixed Fruit Rs.55/250 grams

Packing of half kg and 1kg will also be available. Large packs will cost less to the

commercial users.

Discounts

Seasonal discount strategy, Company will offer huge discounts one different fruit pulps

according to the season e.g. (a handsome discount on mango pulp in summer). Such

discounts will attract the customers with the products even in there peak season.

The company will offer up to 30% discounts to consumers according to seasons for that

Fruits whose prices highly fluctuate in their season and off season.

Discount (allowances) would also be given to distributors. (Discussed in “Place”)

Bundling

Company will use “price bundling” two to three different packs of different or same

pulp, as a package deals, which will cost them lower then the sum of individual

products pack price.

The logic behind bundling is to offer the customers increased value and simpler

“decision making”.

Promotion

Advertising

Objectives

1. To create awareness among people about Fru2.

2. To establish Fru2 as a consumer brand of choice in Fruit category

Strategies

To use combination of TV network, local Cable, Print media

Begin application of specific advertising

Tactics

TV network to launch an advertising campaign on TV because the diversified

nature of TV. Initially it is recommended to give add two times a day, one in

prime time and once in sports time.

Cable network, a clear message through cable network is recommended 10 to 15

time a day at least 2 to 3 month.

Print media, the ads in local papers daily. Twice in a weak on national level

papers and also in weekly and monthly loading magazines (food line, kitchen,

Akhbar-e-Jahan, Sports).

Billboards, five to ten billboards on different key locations in each target city.

Public Relations

In today’s global environment public relation is the best tool than any other

communication.

Tools to be used in Public Relations

1. Publications

Company will produce different kind of literature in which the public will addressed

on different issues e.g. we will initially print literature on which we try to tell the

public that use of packed Fruit Pulp is quite safe as compare to the open fruit in the

market. Open fruit may be hazardous due to different sprays and other

environmental contaminations.

2. Special events

Different events in the community will be sponsored by the company e.g. company

will sponsor by the health (body building) competitions and other sports

tournaments.

3. Public service programs

In future the company will start some public service program. This would also be a

positive tool in personal relations and person leverage for company and it complies.

Sales promotions Objective: to maintain brand and product positioning by introducing creative and

innovative promotional programs those have measure able results and tactics.

Coupons

Company will offer coupons as price inceptive to the consumers.

Sampling

To create awareness of our product and to allow the customers to experience our

product, the company will provide free small samples of our products. These

miniature packages will be distributed to customers through door to door or in

stores.

The company will also use packaging as a source of promotion and communication.

Different recipes of milkshakes, juices, cakes, puddings etc. will be printed on the packs

to promote the new use of our product.

Place (distribution)

An important decision for any company is regarding channel strategy either to use direct

or indirect channel to make product available in the market.

After having a lock on the factors like market coverage target market characteristics,

nature of product, costs and also keeping in mind the goals to select most efficient

channel_ the one that best balance costs as it accomplishes necessary channel

objectives the company choose this channel.

Company wholesalers’ retailers’ consumers

Through this channel seem a little large and costly but this is the requirement of

business. The other thing the wholesalers also justify their cost by adding value. Such as

Ware housing (provide)

Act as a sales force for company,

Motivating channelsTo encourage distributors to perform some activity the company will often extend

various allowances to the retailers and wholesalers.

Apart from a specific margin the company will offer additional product to the

distributors / retailers.

Company will often provide distributors retailers with schemes like one pack of product

free whenever it orders for 12 etc.

The credit terms like 2% 30 net 45 will also be offered to encourage the channel

members. Company will often allowance for sales contest more displays etc.

Criteria for evaluating distributors

The company is choosing channel members on their past repute and ability to act as a

strong link in the chain of distributors.

The company will regularly check the distributor’s performance on following standards.

Sales quotas

Average inventory level

Customer delivery time

Treatment of damaged and lost goods

Cooperation in companies promotions programs

Service to the customers

Company will periodically evaluate its channel members and if there is some weak link

then try to make it strong or otherwise prune the weaker ones.

LogisticsCompany knows that in today’s global market place selling a product is some thing

easier than getting it to the customers. The company aimed at to use the best way to

store handle and move its products to the consumers at the right time and at right

place.

The major logistic function is handled by the company as follows.

Order processingThe company receives the orders from its sales persons and distributor daily often

electronically. The highly skilled order department will quickly process the order and the

warehouse will send at the order on time. Bills will be send out as soon as possible.

The company is aiming to launch a computerized order processing system in the 2nd year

of its operation.

Ware housing

Company has two big ware houses including small card storage beside factory premises

and one each in sukkar and multan.

These three distinct located warehouses will help company to fulfill the market demand

as quickly as possible.

Transportation

Company usually uses the trucks as a source of transportation. Company own many

vehicles to quickly fulfill the requirements of its distributors and consumers.

Organizational Plan

Founders &Management Team

The management team is composed of

Nadeem Iqbal

Muhammad Irfan

Sidra Yaqoob

Ejaz ul hasan

There wil l be two advisors also

Irfan Talib

Abdullah Masoud

The management team is highly motivated and qualif ied.

Form of Ownership

The A-Z Enterprise is privately held company. It wil l be run as

partnership. There are 4 partners.

There is a proper partnership agreement among the partners. As the cost

of the project is estimated to be Rs.4,65, 76,000. Two partner wil l invest

Rs.93,00,000 each and one partner wil l contribute Rs.1,16,44,000 and the

last partner wil l contribute Rs.163,00,000.The percentage of ownership

in the company wil l be as under:

25%

20%20%

35%Nadeem Iqbal

Sidra yaqoob

Ejaz Ulhasan

M.Irfan

Management Team Background

All four members of management team are student of MBA.But every

member also has some practical experience in different f ields.Mr.

Nadeem iqbal has an experience of 6years in fruit trading. Mr. Irfan has

Sidra Yaqoob

(20%)

M. Irfan

(35% )

EjazUlhasan

(20%)

Nadeem Iqbal (25%)

A-ZEnterprise

Partnership

an experience in the field of accounts. Mr. I jaz has background of

marketing.

Role and responsibil it ies of Members

Critical Risks and Problems

Manufacturing Risk Low/Moderate

The two main issues that need to be addressed in the manufacturing are the price of the

major commodity, and the quality and supply of the fruit.. Strong relationships will be

developed with suppliers of fruit which will ensure favorable trading terms. Quality

control checks have been introduced at all stages of assembly. To ensure only the best

supplies are sourced, two or three suppliers will be sought in the early stages of the

venture. Very high skilled labor is not required for these products. Our research shows

that this will be readily available in the district in which we have chosen to establish.

Financing Risk- Low/Moderate

As no traditional funds are required, this venture is not susceptible to fluctuating

interest rates. However, the venture partner requires to be confident that their

expected (or promised) returns are assured at all stages of the venture. In addition, the

venture is self funding and it is not envisaged that further injections of venture capital

will be required in the future.

Marketing Risk- Moderate/high

The initial marketing risk is high because of the low awareness. As this product is new to

the market, the broader market needs to be educated in the features and benefits of

the product. This will involve time and effort.

Management Risk- Low/Moderate

This project falls under "a new and unique product or products" category .Some

problems may arise in the management of such new venture. Although there is a strong

team in place, there is always a risk of human relationships souring over time.

Exit Risk- Low/Moderate

Given the forecast sales, the solid returns, Sale strategy, the exit risk for the partners is

assessed to be moderate to low.

A-Z Enterprises

Pro Forma Income StatementFor the year ended 2006

Sales Revenue 260, 00000Less:

C.O.G.S (18122000)

Gross Profit 7878000

Operating Expenses

Administration Exp. (2568000)

Selling Exp (2279400) (4847400)

Operating Income before Tax 3030600 Less:

Income Tax (40%) (1212240)

Profit after Tax 1818360

Operating Cost:

Selling Expenses:

Designation Number of Seats

Salary/Month Total Annual Salary

Sales Manager 1 20000 240000

Sales Offices 2 10000 240000

Clerk/Typist 2 3500 84000

Peon/Chowkidar 3 2500 90000

Purchase Officer 1 10000 120000

Store Officer 1 5000 60000

Total 834000

Salaries 834000

Fringe Benefits 20% 166800

Total Salaries 1000800

Sales Expenses:

Salaries 1000800Advertisement etc. 1278600

Total 2279400

Administrative & General Expenses:

Salaries:

Designation No. of Seats Salary/Month Salary/YearManaging Director 1 30,000 360000Secretary 1 10000 120000Chief Accountant 1 15000 180000Accounts Officer 2 10000 120000Clerk/Typist 3 3500 126000Peon 3 2500 90000Driver 4 3000 144000

Total 1140000

Salaries: 1140000

Fringe Benefits: 228000

Total Salaries 1368000Add:Other Expenses 1200000

Total A & G Expenses 2568000

Capital Cost of the Project:

Estimated Capital Cost of the Proposed Plant is Rs. 46576000 which is summarized as below:

Description AmountLand 2000000Building 4926000Machinery 29950000Vehicle 6000000Office Equipment etc. 200000Net Working Capital 3500000Total Project Cost 46576000

Details of Buildings:

Description Dimension Meters Areas Square MeterMachine Hall 22 * 28 616Packing Room 18 * 12 216Boiler House 10 * 8 80Electricity Compression & Lab 8 * 8 64Plant Office 3 * 8 18Cold Storage 2 (18 * 30) 1080Godown 24 * 16 384Fresh Fruit Shed 12 * 28 336Office Block 30 * 20 600Gate office 3 * 5 15Work Shop 8 * 10 80Tube well Dia 3 Inch - -

Overhead/ Under Ground Water Tanks

- -

Details of Machinery & Equipment:

Feed Conveyer

Transfer Conveyer

Elevator

Storing Line Conveyer

Citrus Washing Line with Elevator

Burnishing Line

Elevator Models 7/V

Pulp Extractor

Refiner Model Super Creamer

Pulp Transfer Pulp/Model Monix 4

Pulp Transfer Pump/ (Centrifugal Pump)

Pulp Pump - Model Monix 4

Pulp Final Cooler

Set of interconnecting pipes and fitting

Pulp Pasteurizer

CIP (Cleaning in Place) Equipment for the plant

Refrigeration for Cold Storage

Laboratory Equipment

Compressed Air Plant

Stainless Steel Installation Material

Spare parts for One Year Normal Running of the Plant

Motor Starter and Central Board

Equipment like Storage Drums

Weight Bridge Stainless Steel Tanks and Workshop Equipment etc will be manufactured locally.

List of Local Machinery’s

Weight Bridge

Tanks

Storage Drums

Can Making plant

Pipe & Fittings

Insulation Material for Cold Rooms

Insulation Material for Steam

Tools and Workshop Equipment

Storage Bins

Electrical Cable & Fittings

Boilers