EntrepreneurshipBusiness Proposal

A Product of Frito’

Enterprisez

BANANA CRAZEE

A Taste of Nature

A Presentation By

Falcon’s Group

Ali Raza Sahni

The Business

Our Opportunity

Business is name of profit in legal manners

For a business opportunity gap must be there because of tough competition

Banana fruit have great market at national level because of no alternative

international brand “Pringles” is present who provide caned banana chips at limited level at high price

Description of Business

“Frito’ Enterprisez” will provide fruit snakes at reasonable price and earn profit

Now a days people have potato chips, snakes, popcorns, chocolates, etc but we will provide them fruit snakes

We may not have direct competitors but a lot of indirect in the market who are price and trend setters

The first mover advantage goes to “Super Crisp” who is the king from 20- 30 years

Then 10 years ago, “Lays – A Product of Pepsi Co.” entered into the market and replaced the “Super Crisp” into “Lays

Due to huge network, extensive promotional activities Super Crisp lost their market share to Lays

We have a great threat from Lays but it will take at least 2 years to tackle our product because their strategies & policies

Pakistani consumers are price conscious so we’ll provide a reasonable price to take the value from them

As we have first mover advantage so have great chance of success

Vision Statement

“We want to satisfy our customers by the

taste of nature”

Mission Statement

“We want to offer our dedicated and innovated products to customers for their maximum satisfaction as our ultimate goal. We want the growth along with our customers, staff, employees, suppliers and all other business associates by greater value”

Major Objectives For first 15- 20 years our objectives are:-

To present the “Frito‟ Enterprisez” at international level within next 6 years

To provide quality product at reasonable price

To loyal the customer and get response from them

To consider employee as assets who provide services at their best level

To change the customer mind from vegetables to fruits snakes

To attain at least 30% share of market in next 10 years

To compete the market on quality not on price

To provide sufficient return to investors

To maintain best relationship with suppliers

To nationalized our firm within next 10 years.

Competitive Advantage

We are offering a unique product to market with good quality, excellent taste & at reasonable price which will attract to consumer. We have a free market till next three years at least

Our main competitor is Lays but it will not be easy for them to catch us

In case of Lays we have national slogan of “Be Pakistani, Buy Pakistani” to capture the market.

And, we are offering “Halaal Food” to market under the Islamic Values.

Some years before we seen a crises about Pig oil in lays it will be our key to run in the market

Current Status We’ll launch our product in 3-4 cities

at early stages to check response from customer to avoid huge losses

As the first fruit snakes industry we may need high capital and to face high costs but it will be cover very soon

To get the competitor advantage we’ll use various promotional activities to promote our brand and product and by providing extra benefits to consumers, retailers and distributers

It is necessary for us to establish distribution channel at every level

Management Team

Management Designations

For the effective management, we have following managerial posts as:

CEO/Chairman

Board of Directors

Finance Manager

Accountant

Marketing Manager

Production Manager

Quality Inspector

Coordinator

HR Manager

Asst. Cost Manager

Salesperson

Other Staff Members

CEO/Chairman

It is top legal body of our organization. It is the most powerful person due to his authority and rights

A male or female with minimum 30 years of age with the experience of 3-5 years and education is minimum M.Com or M.BA

Specialization should be in accounting or finance with at least 80% marks

NOC from previous organization with the basic salary of Rs.35,000/-

Manage financial matter, act as head of finance department, provide forecasting about future, tackle bankers & bankers, provide briefing in meetings and having no concern with other department

Board of Directors Total five members as Executive Bodies of the “Frito’ Enterprisez”

CEO/Chairman

One Investor

One Banker

Coordinator

Advisor

All of the members to Board of Directors will entertain with specific amount from firm in the sense of “Allowance” for their personal involvement in the firm’s affairs.

CEO/Chairman: The head of the whole organization and work on skill – based partnership from the business as neutral body for the organization. He will be the official head of the whole organization & responsible for each & every activity of the firm.

Investor: A person except Banker who has at least 22% to the total investment will be eligible for the member to board of directors.

Banker: A representative of Bank not Investor who has at least 12% to the total investment will be eligible for the member to board of directors. This person will be act as the representative of the specific bank.

Coordinator: The inside person from the organization who will be responsible for the instructions & information’s distribution towards the entire workforce of the organization.

Advisor: A person rather than investor or banker who has technical, legal & analytical skills towards the business affairs with at least 3% to the total investment. This person will be act as advisor for our organization in every activity of the business.

Rules & Regulation for the Organization Structure

The official head of the organization will be CEO/Chairman

CEO have special authority to remove any head & other staff member anytime without any mutual concentration with any other official on the behalf of some reason

Any majority decision by board of directors must have one vote by investor or banker

For the meeting to heads of departments, minimum three members should be present except Coordinator

The returns of investors & bankers will be determine by the Finance Department with the concern of CEO/Chairman & Coordinator

The HR Manager will be appointed by the mutual concentration of all heads & board of directors

The HR Manager & Production Manager will be responsible for the appointment of labor & skills men for the manufacturing process

The bottom level staff of the entire organization will be under the shadow of HR Manager

Any kind of changes in organizational structure will be implemented by all the members to board of directors & heads of departments

Any increment in the salaries & wages for the entire organization will be passed by the board of directors & Finance Manager

Each & every person will be responsible towards their duties within the organization without any kind of relaxation & nepotism

Legal Company Structure

Frito’ Enterprisez

Our Firm –

Frito’ Enterprisez will be a Private Limited Co.

Association of at 2 – 50 members under the law

Restricted the right to transfer their invested part to another member

Prohibits to the public shares or debentures

Have the limited liability

Legal Status of Frito’ Enterprisez

Company involve various investors, bankers & skilled based persons who invested their money, time, experience & abilities on risk basis against high rate of returns

The investor will be members to board of directors on the investment basis

CEO/Chairman, Coordinator & Legal Advisor will be the members to board of directors on the skills & experiences basis

At the 5th of each month, firm will issue a special kind of document “Frito‟z Newsletter” – describes the firm news, policies, rules, strategies, plans & goals

Mention the duties & responsibilities of each staff member as increase or decrease on monthly basis

Confidential matters will not disclose because public document

A/L & H/O Addresses

Head Office (H/O)

Frito‟ Enterprisez, 73 / A, Century Plaza, Near Centre Point (Mini Golf), Lahore, Punjab – 35000

Assembly Line (A/L)

Frito’ Production Unit, Near Falcon Motor, Lahore Road, Sargodha - 40100

Ownership &

Intellectual

Property

Total Capital Investor # A – Rs. 26 Million – 26%

Investor # B – Rs. 20 Million – 20%

Investor # C – Rs. 15 Million – 15%

Banker # A – Rs. 13 Million – 13%

Banker # B – Rs. 11 Million – 11%

Banker # C – Rs. 7 Million – 7%

Legal Advisor – Rs. 4 Million – 4%

Total Investment Rs. 100 Million

 Owners of the Business

Owner

Preference%age Investment

Return on Investment

(%)

Investor # A 26% 14%

Investor # B 20% 12%

Banker # A 15% 14%

Investor # C 13% 08%

Banker # B 11% 12%

Banker # C 7% 10%

Legal Advisor 4% 3%

CEO/Chairman Skilled Base 10%

Coordinator Skilled Base 7%

Company Savings (for future concerns) 10%

Total 100% + Skills 100%

Intellectual Status

Our “Trade Mark” will be Firm's Monogram or Logo

Registration for our Assembly Line

(A/L) with the name of “Frito’ Assembly Line”

Industry Analysis

Industry Description

Pakistan have big potential for investment in the Snacks Industry because the Demand or Growth rate is very high

Annual Growth Rate is estimated at the rate of 20 % - 30 %

Most of the children, teenagers and young people are the target market-(use as a meal replacement).

Gap exist for Fruit Chips

Industry Size

The size is so large because each kind of person likes snacks. The present market

Segments Share % Quantity (Tons)

Branded 60 1,200

Unbranded 40 800

Total 100 2,000

Industry Attraction

Export prospects for the next decade and expansion ofthe Fast Food Industry abroad

Profit Potential A basic parameter to execute the

business

The sales trend of crisps and snacks is increased by 10% between 2000 and 2005

we are producing unique product ,So more chances of high profit

The competitor analysis for Snacks Industry of Pakistan

COMPANY NAME BRANDNAME

Standard Foods (Pvt.) Limited Golden Chips

Tripple EM (Pvt.) Limited Super Crisps

Kohinoor Smith (Pvt.) Limited Smiths

Consolidate Kolson

Trading Enterprises Krincles

All of these firms are operating in the vegetables snacks not in fruit snacks

It will be a competitive advantage for us to produced a unique product

Competitive Position

Marketing Plan & Strategie

s

Product Line Banana Crazee – the taste of nature

BANANA CRAZEE – Saltiest

BANANA CRAZEE – Chill Up

Banana Crazee – Saltiest: The salty flavor of snacks especially for kids & health conscious people who avoid from the high fats & sugar. The neutralized iodized (0.025%) salt will be added in this product for the taste & ultimate flavor

Banana Crazee – Chill Up: The chilly flavors of snacks for young people especially for girls who demand something chill in their food. Various kinds of masala’s and magnesium salts will be added in this product for the taste

Product Feasibility

Product Taste WeightRP (For Mini

– Pack)

RP (For Midi –

Pack)

Banana

CrazeeSaltiest 30 Grams Rs. 20/= Rs. 35/=

Banana

CrazeeChill Up 65 Grams Rs. 20/= Rs. 35/=

Packing Feasibility

ProductWeights /

Quantity

TP of Each

Unit

Master

Packing

TP for

Master

Pack

Banana

Crazee –

Saltiest

30 Grams /

Mini – PackRs. 17/= 48 pieces Rs. 816/=

Banana

Crazee –

Chill Up

30 Grams /

Mini – PackRs. 17/= 48 pieces Rs. 816/=

Banana

Crazee –

Saltiest

65 Grams /

Midi – PackRs. 29/= 24 pieces Rs. 696/=

Banana

Crazee –

Chill Up

65 Grams /

Midi – PackRs. 29/= 24 pieces Rs. 696/=

Marketing

Strategies Following Marketing Strategies which will may valid for next 15 years of the business life:

Initial Launching Marketing Strategy

Phase Marketing Strategy

General Marketing Strategy

National Marketing Strategy

Marking Promotional Terms

Discount Package

Free Scheme

Extra – Benefits Allowance

Initial Launching Marketing Strategy

Before 10 days to launching the product in any area, we will start our promotional activity which includes, pamphlets, Banners, FM Adz, Cable Adz and Sign Boards Flexes

Under the Discount Package in this strategy (15% discount to our retailer)

Under the Free Scheme, (we offer 2 Free Carton with 10 Mini – Pack Cartons & 1 Free Carton with 10 Midi)

Under the Extra – Benefits Allowance (1 stand fro 3 cartons of anyone master packing ‘ will provide 1 banner and 100 pamphlets to each retailer) however every retailer must have 1 stand

Phase Marketing Strategy

after 30 days of launching

Under this strategy, we will provide 10% discount to each retailer on retail price (RP) under the activity of Discount Package. If he want to enjoy with the Free Scheme, then 2 Free Cartoons with 10 Mini – Pack Cartons & 1 Free Carton with 10 Midi – Pack Cartoons

Under the Extra – Benefits Allowance, we will provide him 1 stand on the net or credit purchase of 3 cartons of anyone master packing

This strategy will be valid till the allocation & deal of any distributor in the specific area

General Marketing Strategy

In this strategy Under this Discount Package, we will provide Rs. 1.5/= on Mini – Pack & Rs. 3/= on Midi – Pack is just valid for Distribution Network

And, distributor will provide Rs. 1.5/= on Mini – Pack & Rs. 3/= on Midi – Pack, on each unit to retailer, all carriage expenses of distributor will less from this profit margin

We will provide 1 Free Cartoons with 10 Mini – Pack Cartons & 1 Free Carton with 15 Midi – Pack Cartoons under Free Scheme

National Marketing Strategy Strategy valid for the national – level not for any specific area

Implement will be minimum after 8 years to the proper initial launching of our product

Discount Package, we will provide Rs. 1.5/= on Mini – Pack & Rs. 3/= on Midi – Pack, on each unit without any kind of carriage expenses

And, distributor will provide Rs. 1.5/= on Mini – Pack & Rs. 3/= on Midi – Pack, on each unit to retailer without any kind of carriage expenses

Under the Free Scheme, we will provide 2 Free Cartons with 20 Mini – Pack Cartons & 2 Free Cartoons with 25 Midi – Pack Cartoons to distributor except from the benefit of Discount Package

Under the Extra – Benefits Allowance

expenses of carriage till the delivery

advertisement expenses will be bear by the firm

Display Allowance

% extra discount to those distributor who will continue their working relations with us since from first day

Marketing Manager have ability to give 0.5% to 1.5% extra discount to any distributor

Product Pricing Strategy

Price / CostFor Mini – Pack (in

rupees)

For Midi – Pack (in

rupees)

Total Variable Cost 7.35 14.15

Carriage Expenses 0.50 0.50

Selling Commission 0.50 0.50

Total Cost Per Unit 8.35 15.15

Fixed Cost Reserve 1.00 1.00

Firm Profit 7.65 12.85

Trade Price (TP) 17/= 29/=

Distributor Margin 1.50 3.00

Retailer Margin 1.50 3.00

Retail Price (RP) Rs. 20/= Rs. 35/=

Weights (in grams) 30 Grams 65 Grams

Promotional Strategies

Promotional Activities since 10 days before to the initial launching in which we focus on Pamphlets, Banners , Voucher Billing Pads, Sign Board Flexes, FM Band Advertisement, Local Cable Advertisements

After three years on initial launching when we feel we will advertise our product through digital media

Toll Free Number on backside to product – design

E – Mail ID + Web link on the product – design

Complaint Officer in the Head Office, Lahore

Garments with labeled promotional adz (as t – shirts, bands, etc)

Shopping Bags

Calendars

Key Chains, etc.

Operational Plan

Method of Production

We have proper Assembly Line (A/L) for our production setup

with the name of “Frito’ Assembly Line” (A/L). Our Assembly

Line has following characteristics as: This Line provide

1250,000 units production per year, Daily 9 Hours working time

, This Production Capacity will may be enhance by the induction

of more plants, Quality Output, Efficient use of inputs or

resources ,Low or no wastage ,Minimum ratio of Natural

Variation in the Final Output, Labor & Machinery Oriented

Assembly Line, Have complete control on cost behavior of

product cost, No Extra – Qualified & Experienced Labor is

required

Production Capacity

Particulars Produced Units

Per Hour

Production- 440

Daily Production (440 × 9 hrs) 3,960

Monthly

Production(3,960 × 26 days) 102,960

Bi - Annually

Production(102,960 × 6

months)617,760

Annually

Production(102,960 × 12

months)1,235,520

(with limitations)

Annually

Production

1,250,000

Availability of Labor

We have to require just 4 skilled persons without any kind of skilled labor who manage the whole Assembly Line, our production process is so simple.

We required most skilled people for the plant operations in

following departments as:

Sterilizing Department

Frying Department

Masala’s Containers

Packing to Packets Department

Labor’s Conditions For the Frito’ Assembly Line, we are offering wages on daily

basis for the labor and salary + wages for the four Skillman.

LaborSalary

(monthly)Wage (daily)

Working

Hours

Worker - N/A - Rs. 250/= 9 Hours

Skillman Rs. 5000/= Rs. 150/= 9 Hours

The A/L working timing will be fixed for each & every worker &

employee as:

From 8:00 am to 1:00 pm

1 Hour Breakdown

From 2:00 pm to 6:00 pm

A/L StaffLabor Quantity Work Arena

Production Manager 1 Incharge of A/L

Quality Inspector 1 Quaintly Checker

HR Manager 1Incharge for Human

Resource

Asst. HR Manager 1 Assistant for Hr Manager

Clerical Staff 1 For A/C based matters

Skillman 4 Skill – Person for A/L

Worker 15 Labor for A/L

Worker 5 Helper for A/L

Bottom Line

Management2 (Day & Night) Watch Man

Bottom Line

Management1 Sweeper

Bottom Line

Management1 Helper

Quality Control

Quality Statement

“The quality is an integral part of our commitment to world – class products. Our aim is to provide zero defected and

zero variation products to our consumers”

For the Quality Enhancement Program in the Frito’ Enterprisez, we will use the Statistical Process Control (SPC), for the elimination of the special cause variations and minimizing the natural cause variations on the continual basis improvements in the production process.

Financial Plan

Total Capital Requirements

Investor # A – Rs. 26 Million – 26%

Investor # B – Rs. 20 Million – 20%

Investor # C – Rs. 15 Million – 15%

Banker # A – Rs. 13 Million – 13%

Banker # B – Rs. 11 Million – 11%

Banker # C – Rs. 7 Million – 7%

Legal Advisor – Rs. 4 Million – 4%

Total Investment Rs. 100 Million

Initial Capital Requirement

First Year Requirement (Initial Costs)

Particulars Amt (in Rupees)

Plant & Equipments2,030,000

Office Equipments + Furniture1,163,000

Other Fixed Costs3,445,000

Annual Salaries Reserves7,872,000

Wages Reserve (Rs. 146,000 × 12)1,752,000

Promotional Budget5,000,000

Operating Expenses Reserves5,532,000

Raw Material Reserve18,000,000

Working Capital4,000,000

Preliminary Expenses1,206,000

Total Ist Year Capital Requirement50,000,000

Salaries Package - For Initial 5 YearsRemuneration Schedule (Monthly)

Person Nature Quantity Amt (in Rupees)

CEO/Chairman Allowance 1 10,000

Investor Allowance 1 10,000

Banker Allowance 1 10,000

Coordinator Allowance 1 10,000

Legal Advisor Allowance 1 10,000

Finance Manager Salary 1 35,000

Marketing Manager Basic Salary 1 30,000

Accountant Salary 1 20,000

Production Manager Salary 1 25,000

Quality Inspector Salary 1 20,000

HR Manager Salary 1 30,000

Asst. HR Manager Salary 1 20,000

Business Consultant Agency Fixed Fee 1 20,000

Law Firm Fixed Fee 1 10,000

Audit Firm Fixed Fee 1 8,000

Asst. Cost Manager Salary 1 17,000

Complaint Officer Salary 1 13,000

Salespersons Basic Salary 15 × Rs. 15,000 225,000

A/L - Labor * Wages 20 N/A

A/L - Skillman Basic Salary 4 × Rs. 5,000 20,000

H/O - Bottom Line Staff Salary 6 × Rs. 8,000 48,000

A/L - Bottom Line Staff Salary 4 × Rs. 8,000 32,000

Clerical Staff Salary 3 × Rs. 11,000 33,000

Total Monthly Salaries - - 656,000

Annual Salaries - - 7,872,000

Wages & Commissions – for Years

Wages & Commission Schedule

Person NatureAmt (in Rupees)

Marketing Manager Commission 0.25/sold unit

Salespersons Commission 0.25/sold unit

Labor Wages 250/day

Skillman Wages 150/day

Fixed Assets Details

Plant & Equipment Schedule

Plant/Machine Each Item Cost Quantity Total Cost

Banana Cutter 50,000 2 100,000

Sterilizer 170,000 1 170,000

Drying Machine 100,000 2 200,000

Frying Plant 180,000 2 360,000

Evaporator 120,000 2 240,000

Maslala 35,000 2 70,000

Packing Machine 220,000 2 440,000

Racks to Stock 6,000 75 450,000

Total Plant & Machinery Cost

- - 2,030,000

Con’tOffice Equipments & Furniture Schedule

Particular Each Item Cost Quantity Total Cost

Computers 20,000 10 200,000

Laser Printers 7,500 3 22,500

Lockers & Cupboards 5,000 20 100,000

Tables (for H/O) 1,700 15 25,500

Tables (for A/L) 2,700 20 54,000

Chairs (for H/O) 1,000 60 60,000

Chairs (for A/L) 650 40 26,000

Fixture (for H/O) - - 350,000

Fixture (for A/L) - - 150,000

Electric Equipments - - 25,000

Misc A/C (for H/O) - - 100,000

Misc A/C (for A/L) - - 50,000

Total Equipment Cost 1,163,000

Con’tOther Fixed Assets Schedule

Particular Each Item Cost Quantity Total Cost

Mini Trucks 870,000 1 870,000

Cultus Cars 870,000 2 1,740,000

A/L Generator 250,000 2 500,000

H/O Generator 250,000 1 250,000

Stock Carrier 8,500 10 85,000

Total Cost - - 3,445,000

Operating ExpensesReserves for Operating Expenses Schedule (monthly)

Particular Amt (in Rupees)

A/L - Electricity Charges 120,000

A/L - Gas Charges 70,000

H/O - Electricity Charges 30,000

A/L - Generator Reserve 20,000

H/O - Generator Reserve 15,000

A/L - Building Rent 40,000

H/O - Building Rent 120,000

Office Maintenance Reserve 7,000

Plant Maintenance Reserve 5,000

Engineering Maintenance Reserve 1,500

Transportation Reserve 30,000

Admin Operating Reserve 2,500

Total Operating Costs 461,000

Annual Operating Costs 5,532,000

10 Years Capital FlowYear Capital Flow

First Year 50 Million

Second Year 36 Million

Third Year 36 Million

Fourth Year 35 Million

Fifth Year 36 Million

Sixth Year 88 Million

Seventh Year 77 Million

Eight Year 77 Million

Ninth Year 77 Million

Tenth Year 77 Million

Return on Investment (ROI) Policy

Owner Preference %age InvestmentReturn on Investment

(%)

Investor # A 26% 14%

Investor # B 20% 12%

Banker # A 15% 14%

Investor # C 13% 08%

Banker # B 11% 12%

Banker # C 7% 10%

Legal Advisor 4% 3%

CEO/Chairman Skilled Base 10%

Coordinator Skilled Base 7%

Company Savings (for future concerns) 10%

Total 100% + Skills 100%

Projected Rate of Returns to Investors (figures in “000”)

ParticularRate of

Return

Year

- 1Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8

Year -

9

Year -

10

Investor # A14% - 200 608 913 1,578 1,847 3,054 4,136 5,924 6,064

Investor # B12% - 200 522 782 1,352 1,583 2,617 3,545 5,078 5,198

Investor # C8% - 200 313 521 902 1,056 1,745 2,363 3,385 3,465

Banker # A14% - 200 608 913 1,578 1,847 3,054 4,136 5,924 6,064

Banker # B12% - 200 522 782 1,352 1,583 2,617 3,545 5,078 5,198

Banker # C10% - 200 435 652 1,127 1,320 2,181 2,954 4,232 4,332

Legal Advisor3% - 200 130 196 338 396 654 886 1,269 1,299

CEO/Chairman

10% - 200 435 652 1,127 1,320 2,181 2,954 4,232 4,332

Coordinator7% - 200 304 456 789 924 1,527 2,068 2,962 3,032

Savings10% - 200 435 652 1,127 1,320 2,181 2,954 4,232 4,332

Projected Income StatementParticular Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8 Year - 9 Year - 10

Sales 25,900 33,300 42,550 48,100 57,350 74,800 94,600 113,300 143,264 145,596

CGS 7,525 9,675 12,363 13,975 16,663 25,840 32,680 39,140 49,491 50,297

Gross Profit Margin 18,375 23,625 30,188 34,125 40,688 48,960 61,920 74,160 93,773 95,299

Selling Commission 350 450 575 650 775 850 1,075 1,288 1,628 1,655

Selling Expenses 350 450 575 650 775 850 1,075 1,288 1,628 1,655

FCR 800 1,200 1,500 1,400 1,300 1,600 1,800 2,575 3,256 3,300

Net Operating Income 16,875 21,525 27,538 31,425 37,838 45,660 57,970 69,010 87,261 88,690

Salaries 7,872 7,872 7,872 7,872 7,872 16,404 16,404 16,404 16,404 16,404

Operating Expenses 5,532 5,532 5,532 5,532 5,532 7,236 7,236 7,236 7,236 7,236

Promotional Expenses 5,000 2,500 2,500 1,700 2,061 8,000 8,000 8,000 8,000 8,000

Depreciation 332 315 300 285 270 1,045 1,045 1,045 1,045 1,045

Financial Charges 10,125 12,125 10,125 10,125 10,125 10,125 10,125 10,125 10,125 10,125

Net Profit (before Tax) (1,986) (1,819) 6,209 9,311 16,099 18,850 31,160 42,200 60,451 61,880

Excise Duty (298) (273) 931 1,397 2,415 2,828 4,674 6,330 9,068 9,282

Sales Tax (298) (273) 931 1,397 2,415 2,828 4,674 6,330 9,068 9,282

Net Profit (1,390) (1,274) 4,346 6,518 11,269 13,195 21,812 29,540 42,316 43,316

Investor Returns (1,251) (1,146) 3,912 5,866 10,142 11,876 19,631 26,586 38,084 38,985

Saving Reserve (139) (127) 435 652 1,127 1,320 2,181 2,954 4,232 4,332

Projected Balance SheetParticular Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8 Year - 9 Year - 10

Fixed Assets

Total Fixed Assets 6,638 6,306 5,991 5,691 5,406 14,595 13,550 12,505 11,460 10,415

Less - Deprecation (5%) 332 315 300 285 270 1,045 1,045 1,045 1,045 1,045

Total Fixed Assets Value6,306 5,991 5,691 5,406 5,136 13,550 12,505 11,460 10,415 9,370

Current Assets

Operating Expenses 5,532 5,532 5,532 5,532 5,532 7,236 7,236 7,236 7,236 7,236

Promotional Budget Reserve5,000 2,500 2,500 1,700 2,061 8,000 8,000 8,000 8,000 8,000

Salaries Reserve 7,872 7,872 7,872 7,872 7,872 16,404 16,404 16,404 16,404 16,404

Wages Reserve 1,752 1,752 1,752 1,752 1,752 5,340 5,340 5,340 5,340 5,340

Working Capital 4,000 344 844 144 783 1,561 200 200 200 200

Raw Material Reserve 18,000 18,000 18,000 18,000 18,000 40,000 40,000 40,000 40,000 40,000

Stock & Spares 9,913 12,675 15,750 10,213 6,988 22,952 29,184 28,956 18,377 6,992

A/C Receivables 16,835 21,645 27,658 36,265 47,278 57,620 71,490 83,645 93,122 94,638

Banked Cash 20,938 35,109 63,511 143,095 185,009 157,548 233,627 299,213 391,117 470,775

Goodwill 852 580 890 1,021 1,589 1,789 2,014 2,546 2,789 3,045

Total Assets 97,000 112,000 150,000 231,000 282,000 332,000 426,000 503,000 593,000 662,000

Capital Equity:

Induced Capital 60,000 96,000 132,000 167,000 203,000 291,000 368,000 445,000 522,000 599,000

Profit for the Year (1,390) (1,274) 4,346 6,518 11,269 13,195 21,812 29,540 42,316 43,316

Business Draws - (2,000) (2,100) (2,500) (2,400) (2,300) (2,100) (2,400) (2,500) (2,100)

Current Liabilities

Long - Term Loans 35,000 15,000 10,000 50,000 62,000 18,000 24,000 13,000 10,000 16,000

A/C Payables 2,634 3,386 4,327 7,891 5,832 9,044 11,438 13,699 17,322 1,764

Various Provisions 756 888 1,427 2,091 2,299 3,061 2,850 4,161 3,862 4,020

Total Owner's Equity 97,000 112,000 150,000 231,000 282,000 332,000 426,000 503,000 593,000 662,000

CVP AnalysisProduct Variable Cost Schedule

Particular For Mini - Pack For Midi - Pack

Weight 30 Grams 65 Grams

Basic Raw Material 1.75 3.70

Banana Cutter Deptt. 0.00 0.00

Sterilizing Deptt. 0.70 1.90

Drying Deptt. 0.00 0.00

Frying Deptt. 1.00 1.70

Evaporating Deptt. 0.15 0.50

Masala's Deptt. 0.75 1.60

Packing to Packets 2.50 3.75

Master Packing 0.50 1.00

Total Variable Cost 7.35 14.15

Carriage Expenses 0.50 0.50

Selling Commission 0.50 0.50

Fixed Cost Reserve - FCR 1.00 1.00

Total Cost / per unit 9.35 16.15

Firm's Profit 7.65 12.85

Trade Price (TP) 17.00 29.00

Distributor Margin 1.50 3.00

Retailer Margin 1.50 3.00

Retail Price (RP) 20.00 35.00

(All the given below ratios are calculated according to the (TP)

Total Cost Ratio 43.24% 48.79%

Contribution Margin Ratio 56.76% 51.21%

Profitability Ratio 45.00% 44.31%

Break – Even Stage Break – Even @ 3,300,000 units

2.64 years – 32 Months

45% Average Profit on Each Unit

80 Millions – Fixed Expenses

1250,000 Units – Annual Productivity

Exit Strategy

If our business will never proceed towards the profit generation then we will provide an exit way to our all stakeholders to leave the organization in reasonable & respected way in the better interest of the business community. Following some strategies are shown which we will provide in case of loss in the business as:

Sale of Business to any Heavy Weight of Snacks Industry with Product Formula

To merge “Frito’ Enterprisez” with any other Industry related Firm

Bank – Raptly Slip to our all stakeholders

Critical Risk

Factors

Management Risks

Production Wastage

Labor Conflicts

Low Coordination

Leg Pooling Environment

Conflicts in Board of Directors

Conflicts in Directors & Investor/Banker

Low Level Management Problems

Marketing Risks The Market – Breakdown

Any Market Crash

Lays – As Competitor

Conflicts with Distributors

Decline in the Industry

Sudden Change in Trend

Operating Risks

Wastage During the Production

Low Quality of Banana’s

Conflicts with Suppliers

Less Coordination in A/L

Less Working Environment in A/L

Conflicts b/w A/L Staff

Financial Risks

Less Capacity for Fulfill the Demand in first 5 years

Financial Crack Down in Market

Political Instability

Law & Order Instability

Extra Money Utilize for Quality Enhancement

High Wastage Dumping Cost

Energy Crisis

Lays – Financial Take Over

Intellectual Property

Govt. Banned Policies

Decline in Goodwill by Competitor

Stolen of Trade Secrets

Legal Copy of Copyrights

Public Rules & Regulations

Other Risks High Taxation

Inflation Trends in the Market

Decline in the Value of Money

Rising Prices of Raw Material

Govt. Food Department Conflicts

Appendix

10 Years Capital Requirements

Overview on

AppendiX

Twice Production

StrategyProduction Capacity Analysis

Particulars Produced Units

Per Hour Production - 900

Daily Production (900 × 9 hrs) 8,100

Monthly Production (8,100 × 26 days) 210,600

Bi - Annually Production (210,600 × 6 months) 1,263,600

Annually Production (210,600 × 12 months) 25,527,200

(with limitations)

Annually Production (Estimated) 2,560,000

Product Cost – For Next 5 YearsNew - Product Variable Cost Schedule

Particular For Mini - Pack For Midi - Pack For Bigi - Pack

Weight 30 Grams 65 Grams 100 Grams

Basic Raw Material 2.00 4.00 6.00

Banana Cutter Deptt. 0.00 0.00 0.00

Sterilizing Deptt. 0.50 1.75 2.00

Drying Deptt. 0.00 0.00 0.00

Frying Deptt. 1.15 2.15 2.75

Evaporating Deptt. 0.12 1.35 1.75

Masala's Deptt. 0.85 1.75 2.10

Packing to Packets 2.75 3.95 4.75

Master Packing 0.65 1.15 2.15

Total Variable Cost 8.02 16.10 21.50

Carriage Expenses 0.50 0.50 0.50

Selling Commission 0.50 0.50 0.50

Fixed Cost Reserve - FCR 1.00 1.00 1.00

Total Cost / per unit 10.02 18.10 23.50

Firm's Profit 6.98 10.90 18.50

Trade Price (TP) 17.00 29.00 42.00

Distributor Margin 1.50 3.00 4.00

Retailer Margin 1.50 3.00 4.00

Retail Price (RP) 20.00 35.00 50.00

(All the given below ratios are calculated according to the (TP)

Total Cost Ratio 47.18% 55.52% 51.19%

Contribution Margin Ratio 52.82% 44.48% 48.81%

Profitability Ratio 41.06% 37.59% 44.05%

Question & Quires

The End