EXECUTIVE SUMMARY:

FAKSAB Venture Limited is a private limited liability company registered with Registrar’s General Department under the Companies Code 1963, Act 179.

FAKSAB is located at Tepa, Ahafo Ano North District of Ashanti Region at House Number Plot 10 Block C with postal address of Post Office Box 13, Tepa Ashanti.

The Vision of FAKSAB Ventures Limited is to become the most recognized plantain processing entity for quality and nutrition products in Ghana.

The Mission of FAKSAB Ventures Limited seek to achieve its vision by producing high quality and nutritious plantain chips through the use of quality assurance processes to satisfy its target market at profit to maximize the value of shareholders.

The objectives of the company are to process large quantities of plantain in the area into plantain chips for marketing in the cities and towns, to reduce the post harvest losses of plantains in the area, to increase farmers’ income for sustainable marketing of farmers produce in the area.

The strategy by which FAKSAB Ventures Limited intends to operate is to price its products within the reach of its customers while embarking on intensive distribution to make the products accessible at every corner of its target market.

FAKSAB Ventures Limited initial capital of GHC 86,400 to grow to GHC 96,823.74 by the end of the third year indicating 12% growth. It has projected to break even by the end of the third year and the projected NPV of GHC 50,489.15 is to be achieved. This makes the project financially viable and economically acceptable.

The management team of FAKSAB Ventures Limited comprises of five (5) competent individual headed by General Manager with diverse background in Administration, Production and processing, procurement and marketing as well as sales and marketing among other business disciplines.

The financial objectives of FAKSAB Ventures Limited are as follows:

To achieve a positive NPV of not less than GHC50,489.15 in three years To grow the asset base of the Company by 12% by the end of the third year To break even with one year of operation

The growth objectives of FAKSAB Ventures Limited;

To expand operation through intensively to enter into Brong Ahafo by the end of second year

To increase the employee and production capacity by 20% and 60% by the end of the 3rd

year.

SECTION 1

1.0 Vision

The vision of FAKSAB VENTURES is to become the most recognized plantain processing entity for quality and nutrition products in Ghana

1.1 Mission

The Mission of FAKSAB Ventures Limited seek to achieve its vision by producing high quality and nutritious plantain chips through the use of quality assurance processes to satisfy its target market at profit to maximize the value of shareholders.

1.2 Core Values

Teamwork: Contribute fully to the activities of the team

Integrity: Doing the right thing even when no one is looking

Persistence: Ability to keep going through all resistance no matter the circumstances

Discipline: Discipline on everyday action steps that will allow us accomplish our vision and mission statement

Diversity: Considering other ideas open mindedly

1.3 UNIQUENESS

FAKSAB Ventures limited, our uniqueness is quality plantain chip with sweet flavor and the packaging of our chips with the brand logo boldly printed on our package thus sealed or bottled to make it different from those in the plantain chips production.

SECTION 2

2.0 INDUSTRY ANALSIS

The statistics of food crops grown in Ahafo Ano North for 2006/2009 is shown below.

Ministry of Food and Agriculture – Ahafo Ano North District

Production Figures (metric tons)

Year 2006 2007 2008 2009

1. Maize 15,881 16,058 18,588 19,0582. Plantain 100,201 103,534 116,814 121,7663. Cassava 81,600 84,872 96,407 102,1914. Cocoyam 50,606 51,001 55,206 56,310

Plantain production is predominant food crop farming in the District.

2.0 The Company Background

Tepa is 60 Kilometers from Kumasi, Ashanti Regional Capital. Tepa is capital town of Ahafo Ano North District which has a lot of villages. The main occupation in the district is farming.

In August, 2010, Fredua Agyemang A.,Boateng Victor,Gyasi Kwasi,Ajayi Emelia and Saa-Amoah Christiana decided to form FAKSAB Ventures Limited to process plantain into plantain chip in Tepa in other to add value into plantain production as means of increasing value and profit for farmers.

2.1 Capital

The set up of the company shall be (GHC 86,400.00] .Every member shall contribute

GH C17, 280.00.

2.2 Major Customers Groups

The company targets the general public.

2.3 Regulatory Restriction

Environmental Protection Agency Mandatory Impact Assessment list includes the Manufacturing Industry – Chemicals and petrol- chemicals/pump and papers/food and beverages (abattoir, brewery etc) .It will constitute an offence under Regulation 29 of the Environment Assessment Regulation LI 1652 of 1999 for the manufacturing industry to operate without MIA certificate.

2.4 Sizes and Growth

The plantain chip production industry is in the infant developmental stage. Only a few companies are producing chips and marketing them in the polythene sheet bags in few super markets, lorry stations and along the street. Most of these small industries produced the

plantain chips in frying pans in house hold kitchens. The size of the industry is very small. Demand is expected to grow in tandem with the growing fast food industry in Ghana. Potato chips dominate the popular chicken/potato chips fast food meal. Plantain chips are popular fast food consumed in the lorry stations.

2.5 Impact of Economic factors

Plantain is a staple food consumed widely in Ghana and in most African countries south of the sahara. It grows everywhere and anywhere in Ghana. It is a predominately cash crop for rural farming communities second only to cocoa in the Ahafo Ano North district. The statistics of plantain production in the district between 2007/2009 are 100,201 metric tons in 2007, 103,534 metric tons in 2007, 116,814 metric tons in 2008, and 121,766 metric tons in 2009.

It is estimated that about 40% of the crop goes to waste for lack of ready market for rural farmers. Transporters of plantain to towns and cities also pay less than economic price to the rural farmers who in most cases are eager to sell the plantain for any price.

With the proposed establishment of plantain chips processing plant within the Ahafo Ano North plantain growing area, opportunities exist for the farmers

I. For ready access to marketing of their product at economic priceII. Increase production and thereby increasing their wealth

III. Increasing their purchasing power and thereby enhancing economic activities in the areaIV. Enhanced access to quality health services, education etc.,for rural poor as a result of

increased level of incomeV. Opportunity for women to participate in mainstream economic activities.

2.6 Impact of Environmental factors

The environmental factors in the plantain chips processing industry may be grouped as

I. Plantain peel hazard

The environmental pollution regulatory concerns to be addressed include

I. The management of plantain peel by- product may be sliced and used as animal feed or may be used to support local soap production

2.7 Growth rate.

The growth of the business is projected in the three year projected income. The business is projected to grow at rate of 20% annually from initial production of 20% of maximum capacity. The growth strategy is market oriented. A market survey of the consumption of the products in Ashanti, Western, Central, Eastern and Greater Accra Regions shall be commissioned. In order to manage the working capital requirement, the company shall negotiate supply agreement payment terms with the purchasers.

Depending on the market the company may step up production by 20% after the initial teething start up and marketing penetrating problems.

2.8 Exit Plan

The Board of Directors is the major facilitators of the project. However, the Directors may exit part of their ownership of the company after recovery of its total investment and reasonable margins from interest payments.

2.9 Outlook for the future

The long term goal of the company is to market plantain in the district schools and colleges in Ghana as wholes and export outside the country. All surplus plantain purchases will be supplied to the institution on contract basis.

SECTION 3

3.0 BUSINESS STRATEGY

3.1 The objectives of the Company are:

To process large quantities of plantain in the area into plantain chips for marketing in the cities and towns

To reduce the post harvest losses of plantain in the area

To increase farmers income for sustainable marketing of farmers produce in the area

To encourage plantain producing farmers cooperatives for sustainable supply of plantain to the factory.

3.2 Operational

3.2.1 Raw materials

The raw materials required for the plantain chips production are

I. Plantain bunchesII. Cooking oil

III. Salt, spices and flavors IV. Package materials

The plantain bunches are locally available. Cooking oil, the frytol type, can be purchased in drums from lever brothers or its distributing agents. Iodized ground fine salt, spices and flavors, required in smaller amount could be purchased from vendors.

The projected annual processing of 250 tons of plantain bunches would require 180 gallons of cooking oil. The delivery cost of plantain bunches is projected at GHC 37,500.00. The cost of cooking oil is projected at GHC 1,522.80

3.2.2 Production Facilities

Plantain Chips Production is a food industry and all standards pertaining to the industry should be enforced. Process equipment is stainless construction and processing floor and environment kept clean hygienic at all times.

The process equipment consists of plantain peeling knives, slicers, deep frying electric equipment/frying pans and sealing equipment. The machinery and equipment including transport vehicles.

3.2.3 Production Cost

The production cost for processing about 250 tons of plantain bunches, less than 1% total of Ahafo Ano North District the year 2007 production .The 2009 cost of plantain purchased at Tepa was GHC 0.10per kilo. The cost estimated for delivery of plantain bunches in 2009 to factory was projected at GHC 0.15 per kilo. At maximum target production the plantain material cost was projected at about GHC 37,500.00. The cost of frying oil and other consumables was

estimated at GHC 2,522.80. The manpower requirement was estimated in Appendix 3. The requirement for the factory was 21, consisting of 16 production crew and 5 management team. The cost associated was GHC 39,931.20 annual.

3.2.4 Quality Control

The quality control procedures to be followed include but not limited to:

I. Inspection and rejection of spoiled plantainII. Rejection of below standard chips

III. High standard packaging of the product

3.2.5 Labour Requirement

The labour requirement for the plantain chips industry at Tepa as in Appendix 3.

Number

A. Plant OperationDirect Labour 16

B. Management 5

3.3 FINANCIAL PLAN FOR BUSINESS

The total cost of financing the project is estimated at GHC 86,400.00. The total amount is being contributed by 5(five) people namely:

Fredua Agyemang A. 20% GHc 17,280.00

Emelia Ajayi 20% GHc 17,280.00

Gyasi Kwasi 20% GHc 17,280.00

Saah Amoah Christiana 20% GHc 17,280.00

Victor Boateng 20% GHc 17,280.00

GHC 86,400.00

3.3.1 Preoperational Costs

The pre- operating costs involved in travelling expenses are estimated at GHC 820.00. The operational cost includes travel expenses related to the project by FAKSAB Team and registration of the new company.

3.3.2 Projected Comprehensive Statement of Account

The Projected Comprehensive Statement of Account. The income statement, at production rates between 20% of plant capacity in the first year and 60% of plant capacity in the third year, shows a profit of GHC 5,696.14 in the first year, based on turnover of GHC 115,000.00 for production of 200 tons of plantain chips from 250 ton of plantain bunches. The positive trend of income is maintained throughout the operation at projected 20% increases.

3.3.3 Projected Statement of Financial Position

The projected three year annual statement of financial position as shown. The analysis showed that:

Total non current assets decrease from GHC 36,600.00 in year 1 to GHC 23,020.28 in the second year at constant depreciation of GHC6, 829.86 annually .The total assets increased from GHC36, 600.00 in the first year to GHC48, 280.00 in the third year

3.3.4 Projected Cash Flow Statement

The financial projections indicate that the company would have enough internally generated funds after the first year injection of funds to continue its operations. The cash balances range between GHC 96,518.94 in the first year and GHC110, 913.60 in the third year. The dividend payments are recommended from the second year.

The increase in profits generated by this investment, specifically capital surpluses will allow the company to have the funds needed to repay the part of capital contributed by board of directors.

3.4 SWOT ANALYSIS

Strengths and weaknesses are internal factors whilst opportunities and threats are external factors

3.4.1 Strengths

On the basis of the social- economic analysis of the district, we identify and analyze critically the factors within and outside the Districts, which can facilitate or constrain the development of the proposed project.

The Strength of an area is positive factors within the area that can be controlled and capitalized upon.

3.4.2 Good Soils and Congenial Agro- Climatic Conditions

The soils, rainfall, humidity and temperature are all favorable for the growth of the growth of cocoa and oil palm can provide the raw materials for the industries. While cocoa and oil palm can provide the raw materials for industries, food items such as plantain, cassava, legumes etc. can help feed the industrial workers.

3.4.3 Availability of cheap Labour

There are no alternative job opportunities. The youth are therefore generally unemployed thus resulting in the availability of a pool of cheap labour.

3.4.4 Availability of Land for farm Expansion

In Ahafo Ano North District, there is much land available for expanding their farms to produce more plantain to feed the industries.

3.5 Weaknesses

Weaknesses are also factors within the area but are negative and as such should be eliminated as far as possible as they check progress.

3.5.1 Lack of Basic Infrastructure

The greatest weakness that can constrain industrial development in the rural district is lack of or poor basic physical infrastructure.

Opportunities and threats describe the environment (i.e. outside the area). They can be positive and favorable (opportunities) or negative and unfavorable (threats).The analysis identifies the following factors affecting the capacity and feasibility of industrial project in the area. School exists in most of the communities but with dilapidated classrooms or fewer teachers than required. Health facilities do not exist in most communities in Ahafo Ano North District and with poor feeder roads to link them to outsider health facilities at the district capital, the inhabitants generally resort to herbal medicine or self medication. Water supply is mostly from streams and bore holes

3.5.2 Lack of security Services

There are not many police stations in the Ahafo Ano North District. There is fire service in the Tepa town, but with inadequate facilities. The Tepa town, however, has a police station. These services are very vital to industry as they keep law and order and protect property.

3.6 Opportunities

Several opportunities exist outside the units, which the inhabitants can avail themselves to support the industries. Examples of such outside opportunities are central government and district assembly policies, programmes and projects relating to rural development and rural poverty reduction.

Agricultural extension service, credit from the banks and inputs availability can all be accessed from outside the units if only the farmers are properly organized into farmers associations.

3.7 Threats

The threat in this context will be the major competitors in the big cities who will like to relocate to our operational area because of availabilities of raw materials to feed our company and also because of tax exceptions given to us by central government as a result of operating in the rural area.

3.8 Risk Analysis

Risk at its most general level, is used to describe any situation where there is uncertainty about what an outcome will occur.

3.8.1 Human Risk

Under the plantain peeling, slicing and frying processes ,workers under these departments can be injured .There might also be the resignation of some of these workers due to various reasons such as unsatisfactory salaries ,unfavorable working conditions or relocation of their family.

It is also possible for a worker to lose his life untimely due to accidents, ailments or negligent of other employees.

3.8.2 Economic Risk

Fluctuations in exchange rate will cause the increase in the cost of inputs used for production. As a business entity there would be the purchasing of equipment and materials for operations, the business might suffer from changes in exchange rate in the sense that the business purchases inputs imported into the country by their suppliers, therefore much Ghana cedis will have to be exchanged for fewer goods. This will have negative effects on operations as increase in cost of inputs will also increase cost of production and eventually decrease profit margin.

Also, if the prices of materials used to provide product increase at an increasing rate due to inflation leading to fluctuations in the general price levels, it will lead to targeted profit not being achieved at the end of operations, hence, leading to a less than expected cash flow.

All these forms of risk cannot be controlled by FAKSAB Ventures as they are all due to external forces.

3.8.3 Natural Risk

Another form of risk which cannot be controlled but can caused a major loss to operation is natural risk, this can be in a form floods and earthquakes.

Change in government or a coup d’etat are forces which cannot be controlled by FAKSAB ventures.

3.8.4 Loss Control

The loss control measures that can help manage these risk include the reduction of the frequency of activities that may bring about these risk which causes loss to the business since employees must be duly compensated in times of injury and also replacing resigned employees will be at a cost.

By putting in place precautionary measures such as providing employees with protective materials such as gloves, goggles and shoes will avoid the risk of injury amongst employees.

3.8.5 Loss Financing

The above risks can be managed by the use of loss financing methods, such as hedging, retention, insurance and other contractual risk transfers. FAKSAB ventures have adopted the purchasing of insurance policies as a way of managing the risk should they occur.

3.8.6 Internal Risk Reduction

As part of the long term plans and ways of risk reductions, FAKSAB ventures would diversify risk by investing its savings in many different stocks and shares.

The other method of reducing risk internally is to invest in the search for first hand information to forecast expected losses since these information can give management more accurate estimates or forecast of future cash flows.

3.9 COMPETITIVES STRATEGY

These competition in the industry focuses largely on prices, quality of products and reliability in delivery. The company should focus on selling to vendors and wholesalers. The task of selling to direct consumers is seen as outside the control of the producer. This is particularly true because the price of the products is negotiable with large purchasers who are middlemen in the business. The company has the option for contract production and shall negotiate for price.

SECTION 4

4.0 COMPANY PRODUCTS

The product of FAKSAB Ventures Limited is to produce plantain chips in large quantities to market them in the cities and towns. The company plantain chips will be different from those selling on the street in terms of packaging and taste.

4.1 Production Process

The production process of our company plantain chips will be also different from those on the street because machines will peel the plantain, from there, it will go into slicers to be sliced in sizes. Salt, spices and flavors will be added to give it taste and flavor, it will then go into the frying area for some minutes and from there it will go into sealing zone for packaging.

4.2 Raw Materials

The raw materials for our company’s product are Plantain bunches, Cooking oil, Salt, spices and flavors and Package materials

4.3 Cost

The cost of raw materials for our operations are as follows

Plantain Bunches 250 tonnes x GHC150.00 GHC 37,500.00

Frying Oil 180gallons x GHC 8.46 GHC 1,522.80

Salt, spices and flavors GHC 1,000.00

Packaging Materials GHC 3,000.00

Contingency GHC 1,000.00

GHC 41,022.804.4 Key SuppliersThe plantain bunches are locally available. Cooking oil, the frytol type, can be purchased in drums from lever brothers or its distributing agents. Iodized ground fine salt, spices and flavors, required in small amount could be purchased from vendor and packaging materials will be supplied by Plastic and Pens Company in Accra.

The company has plans to export its product outside Ghana in future.

SECTION 5

5.0 MARKETING PLAN

5.1 Marketing Strategy

FAKSAB Venture Limited strives to create and market unique product for varied customer groups through differentiation and also strives to appeal to one or more groups of consumer and the industrial buyers focusing on the cost leadership and differentiation patterns.

5.2 Target Market.

The company targets the general public through retailing

5.3 Bases for segmentation

The company intended to use life style segmentation because of the varying attitude/access, interest and opinions of consumers.

5.4 Marketing implementation strategy

The company intends to push through the market by:

1. Pricing strategy: the company intends to keep down our cost and also used penetration pricing.

2. Packaging strategy: the company intends to package our chips in sealed plastics and bottles with the brand logo of the company printed on it

3. Distribution strategy: the company intend to distribute the chips through the sales forces,wholesalers,vendors,retailers and the practicing of just –in-time delivery services(J.I.T)

4. Product strategy: the company intends to adapt to new ideas and developments from management. Modify changes in form, colour and shape. Develop additional models and sizes and also specialize our product and service by creating brand loyalty.

5. Place: the company intends to situate our business at Tepa because of availability of raw materials.

6. Sales strategy: this is based on making a sale and maintain customers through long term relationships. This will be based on ,

I. Prospecting: making relationship with customers and generate repeated sales.

II. Targeting: this will be done through awareness creation and adverts through promotions across all the market.

III. Selling: approach, present, answer questions and make a sale in a large volume basis.

IV. Information gathering : market research in varying customer attitudes and change sales tactics, thus ,emphasizing more on accountable relationship marketing to gather information on customers’ needs and wants.

7 Promotional strategies: sales promotions like free samples will be given to a target market and premium pricing to attract a large market.

8 Aggressive marketing activities through Television adverts, radio adverts, news paper advert.

The second approach of marketing our chips on the foreign market is by trade shows participation and food exhibitions.

To be able to participant in these programmes, steps must be followed at the local front to establish strong image at the local level. Some of programmes are:

A. Registration and certification from the Ghana Food and Drugs Board (FDB)B. Registration and certification by Ghana Standard Board for ISO certification.C. Registration with Ghana Chamber of commerce.D. Registration with Ghana Export Promotion Council.E. Registration with Environmental Protection Agency (EPA).

SECTION 6

6.0 LOCATION AND LAYOUT

The company’s processing plant location, Tepa is 60 Kilometers from Kumasi, Ashanti Regional Capital. Tepa is capital town of Ahafo Ano North District which has a lot of villages.

Raw materials supply needs of the company, since Ahafo Ano North District, is one of the leading farming Districts in Ghana.

Better rainfall pattern throughout the year, resulting in good fertile soil for all year round farming businesses

Willing and strong youths and women farmers/ Labour forces throughout the District

6.1 Traffic Count

The Company has taken into consideration traffic count of the location of the company. There is little vehicular movement in the town as compared to towns such as Kumasi. Transporting our products to our customers will not be a problem at all.

6.2 Lease /Rate

Since a lot of people in the town have left the town due to lack of employment opportunities, there are a lot of rooms/buildings to rent out by landlords in the town.

6.3 Labour needs and supply

Getting labour force of the company will not be a problem at all because there are a lot of willing and strong youths and women farmers/ Labour forces throughout the District

SECTION 7

7.0 Competitor Analysis

7.1 Major Competitors

The company’s major competitors are Chrisann Foods and Confectionery Plantain chips at Kwadaso Agric, Feliprude Plantain Chips at Santasi etc.

7.2 Strengths

The strength of our existing competitors is that they have the channels of distribution already, thus they have the market. The cost of cutting across their communication channels and promotional strategies like sales promotions, advertisement will minimize.

7.3 Weaknesses

The quality design of product and packaging far distinguishes us from that of our competitors and also we have well segmented our market with different sales force grouped into territory therefore enhancing our just in time delivery services to that of our competitors.

SECTION 8

8.0 Management Team

The management team shall comprise of:

Emelia Ajayi General Manageress

She has HND Accounting and final year student of Christian Service University College pursuing BBA Banking and Finance with 5 years management experience in the food industry. She is strategic thinker and good communicator

Saah –Amoah Christaina

Plantain Chips processing Manageress

She has HND Catering and final year student of Christian Service University College pursuing BBA Human Resources Management. Has been a production deputy manageress in a food processing industry with 4 years experience. She is motivator of people with excellent planning skills.

Samuel Appiah

Supply Manager

He has HND Purchasing and Supply with 4 years working experience in similar industry. Financial background and good negotiator

Joseph Twumasi Ankrah Accountant/ Cashier

He has HND Accountancy with 6 years working experience in accounting. He is also good communicator.

Kwasi Gyasi

Marketing Manager

He has HND Marketing and final year student of Christian Service University College pursuing BBA Marketing with 3 years working experience, proven skills in marketing in the food market. He has ability to convince customers to reach his target turnover goal.

8.1 Board of Directors

The board of directors shall comprise of;

Fredua Agyemang A. is a Board Chairman of the company; he is a final year student of Christian Service University College pursuing BBA Accounting with 10 years management experience. He is also a Board member of St Martin De Porres Credit Union.

Ajayi Emelia , is a Board Treasurer of the company, she has HND Accounting and final year student of Christian Service University College pursuing BBA Banking and Finance with 5 years management experience in food industry.

Kwasi Gyasi is a Board member of the company; he has HND Marketing and final year student of Christian Service University College pursuing BBA Marketing with3 years working experience.

Saah –Amoah Christaina is a Board Secretary, she has HND Catering and final year student of Christian Service University College pursuing BBA Human Resources Management with 4 years experience in food industry.

Boateng Victor is a Board member of the Company; he has HND Building Technology and final year student of Christian Service University College pursuing BBA Accounting with 6 year working experience. He is also a Board member of Conpro Limited.

SECTION 9

9.0 Plan of Operation

The set up of the company shall be (GHC 86,400.00] .Every member shall contribute

GH C17, 280.00.

The success of every company depends on primarily on the board of directors and management team.

9.1 The Functions of the Board

Guide the company to fulfills its mission and vision

To protect the assets of the company.

Monitor the operates of the company.

To approve the short terms plans and objective set by management.

To ensure effecting planning and setting of long terms goals.

9.2 Functions of General Manager

The general manager shall be responsible to the board.

She shall oversee the general administration of the company.

9.3 Functions of Plantain Supply Manager

He shall be responsible to general manger

He shall be intermediate between the company and the farmers

He shall responsible in raw materials procurement

9.4 Functions of Purchasing/ Marketing Manager

He shall ensure customer relationship management

He shall ensure corporate social responsibilities

He shall promote new product development and innovation

9.5 Functions of Accountant/Cashier

He shall prepare cash flows and budget

He shall prepare final accounts of the business

9.6 Functions of Plantain Chips Processing Manager

She shall be responsible of producing quality product

SECTION 10

Financial Forecasts