web copy.off season vegitable and its juice ..business plan for a startup business

8/14/2019 Web Copy.off Season Vegitable and Its Juice ..Business Plan for a Startup Business

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GREEN PLATEOff season vegetable farm house &Vegetable Juices


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Business Plan


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MUHAMMAD MUBEEN BAHOO

RANA MUHAMMAD SHEHZAD IQBAL

GREEN PLATEOff season vegetable farm house & Juices

Address Juice Shop: Shop # 05, Adjacent to National Saving Centre, G-9 Markaz Islamabad

Address Farm House: Moza Bango, Rawalpindi Road, Near New Islamabad Air Port, Fateh

Jang, Islamabad

ZIP Code: 44000

Mobile1: +92-xxxxxxxx

Mobile2: +92-xxxxxxxx

Telephone: +92-51-xxxxxxx

Fax: +92-51-xxxxxxx

E-Mail: [email protected]


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I. Table of Contents

I. Table of Contents.......................................................................................4

II. Executive Summary....................................................................................5

III. General Company Description......................................................................6

IV. Products and Services...............................................................................13

V. Marketing Plan.........................................................................................19

VI. Operational Plan.......................................................................................34

VII. Management and Organization...................................................................51

VIII. Personal Financial Statement.....................................................................52

IX. Startup Expenses and Capitalization............................................................53

X. Financial Plan..........................................................................................56

XI. Appendices..............................................................................................58

XII. Refining the Plan......................................................................................61


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II. Refining the PlanExecutive Summary

The GREEN PLATE is a business which deals with the off-season vegetable farming and juice

of fresh vegetables. The farm house is located near fateh jang and juice shop is in G-9,

Islamabad. The purpose of the business is to provide fresh juice to peoples achieving a suitable

margin and having fame in business. The vegetable juicing is a new venture and farming will be

done to support the juice shop. The land in fateh jang is the owner property and agricultural loan

has been taken to run the juice shop.

Customers of the business are hotels, restaurants, domestic users, patients, young peoples and

everyone who could afford the product. For promotion of the business aggressive marketing will

be done. In support of this doctors recommendations have been incorporated. Off-season

vegetable will be sold in the market at comparatively low price than the competitor. By this the

monopoly of the competitor will be no more and people of Islamabad and Rawalpindi will have

fresh vegetables rather than a stored vegetable. Although it is a small new venture in terms of

vegetable juice but in 7th month of the business it will maintain its suitable margin. Vegetable

farming is already existing business so it will carry a suitable profit when the first crop will be

picked up.

The loan will be at 17% from ZTBL for 1 year. The payment schedule will be in terms of 2

installments.


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III. General Company Description

The business I have chosen for my small and medium entrepreneur project is vegetable green

house and the producing juice of vegetables. The purpose of the business is to grow off-season

vegetables and producing their juice as well. Farming will be done on cultivable land of Fateh

jang, Islamabad, and juices of different off-season vegetables will be sold in market of G-9

Islamabad as a fresh juice. The purpose of farming is not just to have a produce for vegetable

juice, but to produce off-season vegetables for the consumers as well. It will cater the demand

of restaurants and home usage of vegetables.

Mission Statement

To provide quality off-season vegetable and its juice to the consumers at affordable price

Company Goals and Objectives

To achieve maximum revenue by providing quality product to the consumers so that business

could grow. The juice will be titled as from seed of vegetable to your juice mug, its all pure. So

off-season vegetable juice by doctors prescription will be good for all type of peoples. The

objective is refined in this sense more, building a healthy nation.

Business Philosophy

The cultivation of off-season vegetable and their juice production is very important factor of the

business. It is because of the importance of vegetable for life in the prospect of health. There is

no growth in this sector so being an agrarian economy this sector should be promoted. So, I

found this business to be the best to contribute in countrys economy as well as having suitable

outcome from this entrepreneurial activity.

Importance of Vegetables

Vegetables are rich source of vitamins, carbohydrates, salts and proteins. With increased health

awareness in the general public and changing dietary patterns, vegetables are now becoming

an integral part of average households daily meals. In addition, high population growth rate has

also given rise to high demand in basic dietary vegetables. Increased health awareness, high

population growth rate, changing dietary patterns of increasingly affluent middle class and

availability of packaged vegetables, has therefore generated a year round high demand for


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vegetables in the country in general and in major city centers in particular. However, our farmers

have yet not been able to en-cash this opportunity and still follow traditional sowing and picking

patterns. This results in highly volatile vegetable supply market wherein the market is floodedwith seasonal vegetables irrespective of demand presence on one hand and very high priced

vegetables in off-season on the other. Lack of developed vegetable processing and storage

facility robs our farmers from their due share of profit margins. In natural season local

vegetables flood the markets substantially bringing down the prices. In the absence of storage

infrastructure and vegetable processing industry in the country, off-season vegetables farming is

the only viable option that can add value to the farmer produce and juicing is new venture

adding more value to the business.

Reason to Choose

General Agriculture sector is the backbone of Pakistans economy. The sector employs 44 % of

the work force and contributes 25% towards National GDP. Nature has blessed our country with

fertile land and suitable climate for growing variety of vegetables. The geographical location of

the country is ideally suited for a large variety of agricultural crops, which are used directly for

food as well as a raw material for processing industry. Vegetables grown in Pakistan are unique

in taste, aroma and are almost organic as very low quantity of chemicals is used in their

cultivation. Moreover, most of the vegetables grown are not genetically modified and original

species are still cultivated in the country. Juices of Vegetables are not so much famous, but they

cater the need of Vitamins which is directly eatable by human in the form of vegetables, being

juices of vegetables Doctors prefer to have such kind of nutritional brew rages. On other hand

our own family background is agricultural.

Project brief

The proposed project is designed as a small size off-season vegetable farming unit and juice

producing unit. Off-season vegetables, such as, tomatoes, cucumber, hot pepper and squashes

could be cultivated using High tunnel technology on 6 Acres, and there flavored juices as a

fresh juice will be available. The juice producing outlet will be in G-9 markaz, near Rahat Bakery

Islamabad. The target customers for off-season vegetable are hotels and restaurants and

general people. Products will follow proper distribution channels to reach to their actual

consumers.


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Off- Season Vegetable

The land can be utilized for green farming during the idle period to maintain the fertility of soil.

Apart from green farming, the land can also be utilized for growing seasonal vegetables like

potato, carrot, onion, garlic and cabbage and specially mushrooms etc., in the idle period, but

this may affect the fertility of the land, resulting in reduction of yield of Green farming is done to

maintain the fertility of the land with the cultivation of any legume crop. When the crop is

matured it is then incorporated in soil with the help of a Rotavator. Therefore it is recommended

that only off-season vegetables should be grown on the proposed land, with a well chalked out

sowing pattern and in future plans cultivation of mushrooms will also take place. The estimatedyield potential of the farm varies according to the selected type of vegetable. There is a huge

demand for fresh vegetables in the local as well as international markets, which includes

Europe, Middle East, and Far Eastern markets but due to their perishable nature it is difficult to

export this commodity.

Vegetable Juice

Vegetable juice is a drink made primarily of blended vegetables. Vegetable juice is often mixed

with fruits such as tomatoes orgrapes to improve flavor. It is often touted as a low-sugar

alternative to fruit juice, although most commercial brands of vegetable juices contain large

amounts ofsodium.

In foreign Countries, Vegetable juices are produced and consumed for their refreshing character

and nutritional qualities being rich in vitamins and minerals and having regulatory functions to

the body systems; such as augmenting of alkaline reserve of the blood and proper functioning of

blood vessels, including capillary, permeability and fragility as a result of contained falconoid.

Juices also increase body retention of calcium, magnesium, nitrogen and are also good sources

of quick energy. These qualities need to be maximized in technologies used to process

Vegetable and fruit juices.

Many popular vegetable juices, particularly ones with high tomato content, are high in sodium,

and therefore consumption of them for health must be carefully considered. Some vegetables

such as beets also contain large amounts of sugar, so care must be taken when adding these to

juices.
http://en.wikipedia.org/wiki/Tomatohttp://en.wikipedia.org/wiki/Grapehttp://en.wikipedia.org/wiki/Juicehttp://en.wikipedia.org/wiki/Sodiumhttp://en.wikipedia.org/wiki/Tomatohttp://en.wikipedia.org/wiki/Grapehttp://en.wikipedia.org/wiki/Juicehttp://en.wikipedia.org/wiki/Sodium


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Although the actual nutritional benefits of vegetable juice are contested, a recent UC Davis

study found that drinking vegetable juice daily significantly increased drinkers' chances of

meeting the daily recommended number of vegetable servings. Having an easy source ofvegetables encouraged drinkers to incorporate more vegetables into their diets.

Industry

The facility of growing off-season vegetables also allows for growing non-conventional varieties

and vegetables, which are in high demand in the international market. The importance of

vegetables cannot be denied due to their nutritional value as these provide proteins,

carbohydrates & salts that are essential ingredients for the growth of human body. Vegetables

are used in raw form as salad or cooked food according to the taste, which provide a balanceddiet and keep human being healthy. A large number of world population now prefer vegetables

in their daily diet due to the awareness that vegetables provide better source of energy and

nourishment to the body, so their juice is best alternative to use it directly.

Mostly the vegetables grown in the world are local to their land and countries however other

varieties and types have also been introduced from across different continents/countries, which

are now grown and consumed in the local diet. Almost all types and varieties of known

vegetables are grown in Pakistan. Vegetables can be cultivated in off-season, with the induction

of an artificial technique like tunnel technology, in which temperature and moisture is controlled

for specific growth of vegetables. The production of vegetables all around the year enables the

growers to fully utilize their resources and supplement income from vegetable growing as

compared to other normal agricultural crops. As the landholding powers of farmers is

decreasing, they need to increase the productivity of their available land, off-season vegetable

farming is a measure through which they can attain higher profit margins from the crop and

vegetable juice is a new venture.

Competency

The fact is that this is not my DREAM PROJECT but in terms of earning handsome amount of

money green house is from one of those good options who have low risk for the investors.

Regarding to green house field the Competitors are not in large amount and not even in large
http://en.wikipedia.org/wiki/UC_Davishttp://en.wikipedia.org/wiki/UC_Davis


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scale. At present, the tunnel technology is being used at the following places/farms along with

other small farms:

Mian Shadi Agri-Farm, Mamonkangan, district Faisalabad

Haji Sons, Chiniot, Jhang

Ayub Agricultural Research Center, Faisalabad

National Agriculture Research Center (NARC) Chak Shehzad, Islamabad

University of the Punjab, Lahore

Sitara Farm, at Sitara Chemicals, Shah Kot, district Faisalabad

As we talk about the Vegetable juice, there is no competitor of this product. In future planningwhich is cultivation of mushrooms is also unique in Pakistan. A big unit for vegetable juice in the

form of tetra pack will be installed for the production at a very large level.

All we know that the population is increasing rapidly which is pushing the trend of expansion of

cities due to which the no of restaurants will increase with the passage of time and the

awareness of taste and selection of food and advices of doctor to use vegetables rather than

meat will increase the demand for such vegetables.

In this business my aim is to produce vegetables on large scale so that I will be able to compete

with the competitors by keeping the price low. The vegetables will be highly hygienic and will be

provided to the customers in a safe good packing. The location of my green house will be near

to the city for the convenience of the transport and to provide fresh supplies to the customers

and local markets.

Key success factors

The commercial viability of the project depends upon the regular and consistent supply of good

quality hybrid seeds and fertilizers.

The other important aspect is the need for strong linkages with the local market and progressive

vegetable exporter. The vegetable juice which we are providing in G-9 opposite to Rahat Bakers

is a best place for juice selling in the market. On other hand we are providing a quality juice with

recommendation of doctors so that all the recipes will have certain nutritional benefits according

to age and health of the peoples. The specialty of menu of juice is that all the juice recipes will

be designed according to the advice of doctor.


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Strengths and Opportunities

High quality vegetable due to high quality seeds

Low cost

Expanding nationwide

Our own agricultural background

Demand of vegetable juice will have a potential

Doctors recommendations for vegetable juice

No competitor for vegetable juice

Weakness and Threats

Low market share in the beginning

Extremely bad weather conditions

Pesticides attack

Floods / Rainstorms

Change in government regulations

Indirect Competitors may start vegetable juicing

Legal form of ownership

Ownership is going to be in the form of partnership. Both the partners have agricultural

background so our skills and abilities will combine to carry a long-term business and have a

suitable profit. All the profits and losses will be beard equally. The business is not at a very large

level so the risk will be minimum.


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I. Products and Services

Vegetables Which Can Be Sown

Growing under plastic is more competitive in todays vegetable market, it gives superior yields

and early spring production. Following crops are high value

Vegetables and has shown significant increase in earliness.

Melons

Tomato

Pepper

Cucumber

Bitter Gourds

Squashes

Eggplant

Water melon

Brinjal

Main types of Vegetable drinks:

Tomato Juice

Sugar cane juice


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Cucumber Juice

Carrot Juice

Vegetable Punch
http://en.wikipedia.org/wiki/File:DSC08581.JPG


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Total Production Capacity on the basis of low tunnel technology

Vegetables Area (Acres) ProductionQuantity in (Kg.s)/Acre

Total ProductionQuantity

Tomatoes 2 55,000 165,000

Cucumber 2 60,000 180,000

Capsicum/ Sweet

pepper

2 26,000 78,000


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Nutritional ingredients in a weight of 100 Gram(Source:www.Smeda.org)

Advantages

Benefits from year-round production include year-round income, retention of old customers, gain

in new customers, and higher prices at times of the year when other local growers (who have

only unprotected field crops) do not have produce. Other potential benefits of season extension

technologies are higher yields and better quality. In summers for off season vegetables

cultivation high quality indeterminate seed is easily available in markets. This indeterminate

seed grows upwards with provided support similar to Pumpkin instead of spreading on groundTherefore Tunnel farming has increased the production of plants in even smaller areas, which is

turned out to be profitable. Small farmers with small cultivating area can get benefits from plastic

tunnel farming and can increase their income. In plastic tunnel farming, problems due to less

supply of water are alleviating by using drip system irrigation. In addition, with year-round

production you can provide extended or year-round employment for skilled employees whom

you might otherwise lose to other jobs at the end of the outdoor growing season. Disadvantages

VegetableName

Calories ProteinsGram

Fats Gram CarbohydratesGram

Ascorbicacid

Potato 71.6 1.7 0.1 16 14.1

Turnip 30.0 0.9 0.2 6.2 24.7

Carrot 39.6 1.1 0.3 8.2 5.3

Cauli Flower 13.9 1.1 0.1 2.2 31.1

Cabbage 19.8 1.0 0.2 3.9 38.1

Peas 45.4 3.0 0.2 8.0 11.9

Tomato 20.0 0.9 0.3 3.5 20.5

Onion 45.8 0.9 0.2 9.7 8.4

Spinach 23.8 1.0 0.0 60.4 5.1

Brinjal 20.3 1.9 0.2 2.6 48.2

Lettuce 12.6 0.8 0.1 2.0 12.6
http://www.smeda.org/http://www.smeda.org/http://www.smeda.org/http://www.smeda.org/


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include no break in the yearly work schedule, increased management demands, higher

production costs, and plastic disposal problems.

Despite all these factors there is no any competitor of vegetable juice who is producing it under

a brand name. all the juice recipes are medically tested for the health. So this section has an

extra advantage due to its uniqueness.

Disadvantages

There is no particular disadvantage in this activity accept natural threat e.g. windstorms or

rainstorm etc, if indirect competitor start to make vegetable juice, or any government regulation

etc.

Technical analysis

Plantation & Growth Essentials

There are 15 essential requirements for healthy growth of a plant. The requirement and

their respective sources are provided in the following table:

Expected Production and Sale price

Expected production and sale price of some vegetable is given in Table below: -

Expected Production and Land Utilization

Vegetable LandUtilization(Acres)

ProductionQuantity(Kgs)/Acre

ProductionQuantity(Kgs)

Sale PriceRs7./ (Kg )

Tomatoes 2 33,300 100,000 30

SOURCE REQUIREMENT

Air & Water

Land

Carbon, Hydrogen, Oxygen, Nitrogen, Phosphorus and Potash

Calcium, Magnesium, Sulpher Iron, Copper, Zinc, Boran,Molybidenium, Maganese and Chlorine


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Cucumber 2 36,600 110,000 16

Capsicum

/Sweet pepper

2 8,000 48,000 25

The prices of vegetables in normal season are around one-third of the prices of

vegetables grown in off-seasons.

Proposed Capacity of Vegetable Juice

ProductName

ProductionAssumption

JuiceCriteria

Tomato 18.18% Fresh JuiceCucumber 9.09% Fresh JuiceCarrot 27.27% Fresh JuiceVegetable Punch 27.27% Fresh JuiceSugar cane 18.18% Fresh Juice


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I. Marketing Plan

Market research - Why?

Market research is a very important aspect of any new starting business. Our business is a new

venture in aspect of vegetable juice making. There is no competitor in vegetable juice making so

we need to have a market research that either people will like to have vegetable juice or not.

Although the fruit juicing industry is an indirect competitor yet the need is to locate the potential

in the market for vegetable juicing.

Market research - How?

To carry an ideal research for the off-season vegetable we are reviewing the competitors

strategies and the offered services. The research will be secondary research so we will be

consulting yellow pages from Pakistan. The reports of production of the vegetables by the

government authorities and annual statistical data compiled in the production of vegetable

context will be analyzed. As for primary market research concern the survey will be made for

off-season vegetable by questionnaire filling from general public, which includes young

generation, students, business personals, households etc. the need of assessment from ladies

carry a very important role because of vegetable use in cooking. We are conducting a survey

from different hotels and restaurants of Rawalpindi and Islamabad as well.

Vegetable juice needs primary market research to be conducted. It is a new idea so there is no

direct competitor of it. Questionnaire for the survey was developed by keeping in mind the need

of customers and the trend of brewing industry and we will have a feed back on this.

Different ideas of peoples of different classes are taken about the vegetable juices. Doctors

have been consulted to promote the vegetable juice. The peoples of different regions were infocus to have ideas about the vegetable juice. There is a need to create the changing trend

about the vegetable juices. An aggressive marketing for vegetable juice will be done which will

be telling the product with its features and benefits attached with it for the healthy life.


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Economics

Facts about our industry:

Total size of our market :

In consideration for market size there is no exact figure which you can predict but as the

other businesses have idea of the market, our market size comprises of Islamabad and

Rawalpindi. But after some time it will increase to other major cities of Pakistan.

Percent share of the market we will have:

The percent of market capture incase of off-season vegetable will be more than 75% of

Islamabad and Rawalpindi. In case of vegetable juice the market capture will be 80% for

those who consume it. This comparison is in competition with competitors. But annual

market capture regarding as whole market trend will be a contribution of more than 2%.

Current demand in target market :

Although there is a great demand for off-season vegetable, but the available vegetable is

not under any particular label so it would be under the label of Green Plat, yet there will be a

great need to promote the brand. The vegetable juice will also require a great attention for

its availability everywhere so aggressive marketing will cover this assignment

Growth potential and opportunity for our business

Off-season vegetable and juice are the essential component for the human body. The

changing trends in the taste of people have led them to have a change of taste in different

products and breweries which they use. Medically the natural food always gives healthy

prospects. The trend of vegetable juicing and drinking juice of carrot in June or July will have

a very different taste.

Barriers to entry which we will face in entering this market with our new company are:

High capital costs

High production costs

High marketing costs


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Consumer acceptance and brand recognition

Unique technology and patents

Unions

Tariff barriers and quotas

How to overcome the barriers?

High capital cost will be the main problem because greater owner equity has very risk.

However partnership is made to overcome this problem. Market capture and consumer

acceptance are also important factors to be covered, so promotional activities and great

effort for the trend change will make it acceptable, however the risk of competitor after the

business success will always be attached. This will be tackled when there will be a great

threat from that competitor by adopting competitive advantage leading to innovation

strategies.

Following factors could affect our company

Change in technology

Change in government regulations

Change in the economy

Products Features and Benefits

As off-season Vegetable

Product Features Benefits

Tomatoes It would be available for

the whole year, as fresh.

Naturally growing

It is used in all the dishes made by the

restaurants and home dishes. It is health

giving vegetable

Cucumber It would be available for


Naturally growing

It used in salads, restaurants need it whole

year and for home use fresh cucumber will

be available


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Capsicum It would be available for


Naturally growing

Need of every dish. Without it there is no

taste in all types of dishes

As vegetable Juice

Tomato Juice Almost pure. A good

source of Phosphorus,

Sulfur, Vitamin C.

Best in taste, it is best for bringing a

person from hanging position after

drinking. It will have a great demand in

hotels. Best for Bladder Problems, Gall

Bladder Problems, Gout, Kidneys, Liver,

Skin Problems, Weight Loss. All age group

favorite.

Cucumber Juice Combination with fruit

taste. A good source of

Manganese, Potassium,

Silicon, Sulfur, Vitamin

A, Chlorophyll

Best alternative for Acne, Arthritis,

Eczema, Fluid Retention, Hair Loss, High

Blood Pressure, Kidneys, Psoriasis,

Weight Loss. Cool effect in summers.

Carrot Juice Source of Calcium ,

Phosphorus, Potassium,

Sodium, Vitamin A,

Vitamin B, Vitamin C,Vitamin E, Vitamin K.

Best for Brain, Cancer,Liver Problems,

Ulcers, Weight Loss, Skin Problems, Hay

Fever, Bladder Problems, eyes. Good in

taste. Youngsters favorite.

Vegetable punch Combination of all

vegetable juices with a

good taste

Everybody will like its taste; it could be

used as a wide range deficiency of

nutrition fulfilling. Best for Children. Old

age people like it.

CustomersFor off-season vegetable we are directly targeting hotels and restaurants, very small portion of

peoples for domestic purposes will be using it. There are number of hotels and restaurants in

Islamabad and Rawalpindi. The customer of the juice will be everyone who born and have taste

in his buds. There are 4000 blocks in G-9 and more than 15,000 peoples live in this sector. G-9

sector is almost in between of the Islamabad so all classes of peoples could easily access it.


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Age

Peoples of all age group (5 and above)

Gender

Male and Female both

Location

Restaurants of all types, House use

Income Level

People of all income level could afford any product

Social class and occupation

Education

All peoples, who have basic education

Competition

. At present, the tunnel technology is being used at the following places/farms along with other

small farms:

Mian Shadi Agri-Farm, Mamonkangan, district Faisalabad

Haji Sons, Chiniot, Jhang

Ayub Agricultural Research Center, Faisalabad

National Agriculture Research Center (NARC) Chak Shehzad, Islamabad University of the Punjab, Lahore

Sitara Farm, at Sitara Chemicals, Shah Kot, district Faisalabad

As we talk about the Vegetable juice, there is no competitor of this product. In future planning

which is cultivation of mushrooms is also unique in Pakistan.

In off-Season vegetable the competitor in Islamabad has no big scale production unit but the

thing is it is already existing and doing business in monopoly. By the start of this business at a


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low price it will give competitive advantage (porters five force model, 1980. Competitive

advantage) the innovation of new product which is vegetable juice, will have greater market

capture hence giving support to off-season vegetable. On other hand if off-season vegetablebecomes more successful in capturing the market then it would support the vegetable juice by

giving a brand name to it.

Analysis of competitors (For Off-season Forming)

Me(GreenPlate)

Hajisons

Ayubagriculture

NARC Universityof Punjab

Sindhufarm

Sitara farm Mianshadiagrifarm

ce

price Low High Medium High Medium High High Medium

distribution Medium Low Medium Low High Low Medium Medium

promotion High Low Low Medium Medium Low Low Low 4

Strengths/weakness

Medium/Medium

Low/Medium

Medium/Medium

High/low

Medium/Low

Low/Low

Medium/Medium

Medium/Medium

Quality High Low Medium Medium Good Low Medium Medium

Variety ofvegetables

Low Low Low Medium Low Low Low Low

Plantlocation

Medium Low Medium Medium High Low Medium Medium 2

Advertising High Low Medium Low Low Medium Low Low

Competitive advantages

The advantage over the competitors is of low price product which is off-season vegetable and

freshness of the vegetable will be maintained through proper and timely delivery through

distribution channels. All the products will be readily available throughout the year. The

vegetable juice is the big advantage over all market available juice producers. It is also the

reason of no threat from them that they are not direct competitors of our product which is

vegetable juice. Our competitorNational Agriculture Research Center (NARC) Chak

Shehzad is not enough competent to sustain his position with his existing conditions. His

business is not at so large level, it can be competed. After our product launching the monopoly


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will be broken. We will capture all city super markets for our product selling. Our competitor is

not advertising its products heavily and not taking any botheration due to its monopoly. We will

provide fresh vegetable juice for all classes of peoples. Our menus will be designed by thedoctors advice, which have uniqueness. In our culture nobody knows that when to eat onion. It

is kept in all types of hotels even in night timings. Which is medically proven that onion after

noon digests slowly. In same way radish will not be eaten after noon but people dont know

about this fact. We will promote our brand according to doctors prescription. Another advantage

is that we are producing juice of off-season vegetable which we grow our self. If any competitor

arises for juice he might not be able to provide off-season quality vegetable juice in our

comparison. So in this case we GREEN PLATE are good enough.

Competitive disadvantages

Disadvantage which we will face is that they are already doing business from a period of time in

off-season vegetable. On the behalf of juice the shezan, nestle, etc. are not direct product

competitors but they have a capture of fruit juice industry, which has a trend.

Niche

Our company has a very small unit of production, so in the beginning year it will just try to build

the image of its products in the minds of consumers, but after some period of time it will start

expanding. The main target customers are hotels and households for off-season vegetable and

for juice there is no defined category but young generation and patients are the main customers.

We are focusing on patients by the help of doctors. The future plan of growing mushrooms and

export of its product will carry a name in the world. The target peoples are everybody who could

afford our product. The specific classes are middle and upper class.

StrategyOur strategy to capture the market is mainly to focus on the promotion of the brand. This needs

heavy budget, and we will have aggressive marketing to get the attention of the customers

towards our product.


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Promotion

Our main focus in terms of marketing will be to promote the product. For this we have consulted

many doctors and advertising agencies. Following are two voluntarily working doctors who have

promised to provide their services free of cost for life time. They will promote our juice for

patients and we will launch an advertisement by the reference of these doctors so that our

brand will definitely make an image in the mind of our customers.

Doctor Ehsan-ul-Haq

Address: ehsan clinic, sadder bazaar, Rawalpindi

Ph# Clinic: +92-51-5580540

Ph# Cell: +92-333-5122103

E-mail: [email protected]

Doctor Shafqat Hussain Arshad

Address: PIMS, Islamabad

Ph# Cell: 03335144460
mailto:[email protected]:[email protected]


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On other hand we have consulted following advertising agencies to promote our brand by

banners, cable T.V ads, pamphlets.

Land Hill Advertising Agency

G-10 Markaz Islamabad

UAN: 111-111-160

Cell#: +92-333-5888848

Zahoor Fine Arts and Printing Press

Main Girls College Road, Block 16, Sargodha

Cell#: +92-321-6039585

Promotional Budget

Before Startup

100 banners 3x7 inches (By Zahoor Fine Arts. Sargodha)

10,000 pamphlets are as a gift from Zahoor Fine Arts, on startup.

At a cost of 50 each

100x50 = 5000 R.S

The cost is so minimum thats why we are ordering it in Sargodha.

Cable Ad at World Call Cable Network Islamabad

30,000 Advance.

20,000 per month


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Total Cost of Cable add before startup = 50,000

Net Total Cost before Startup = 55,000 rupees

After Startup

200 banners x 50 each =10,000 R.S

Cable add

20,000 x 5 month = 100,000

Net Total Cost after startup = 110,000 R.S

Total Advertising Cost = 165,000

Available Budget will be 300,000 Rupees.

After all this we want that our customers will be attracted in this sense that although they arenew comers with new idea but they are enough strong and really have a good quality with avery affordable price. They are hygienic and provide juices with the advice of doctors.

Our Logo

GREEN PLATEOff season vegetable farm house &Vegetable Juices


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Pricing

Our pricing methodology is 30% profit margin on sale of each off-season vegetable and juices

as well. The prices could be fluctuating according to market trend but there will be no

compromise on quality. Peoples are now more conscious towards the quality of the product so

we shall never compromise on quality. The difference of price from our competitor is 35%. Our

pricing strategy competes them highly. This estimate is for on-season peak days. The

advantage to our strategy is that we are breaking their monopoly by setting a suitable margin.

Customers dont always prefer a low price but they do prefer quality. For this we have

categorized our products in three qualities of vegetable.

A Category Finest Quality A grade Vegetable

B Category Good Quality B grade Vegetable

C Category Middle Quality C Grade Vegetable

In case of each category the price will decrease by 5% and 7% for B and C category.

Proposed Location

Location for off-season vegetable farming at Fateh jang road is nearest to Rawalpindi and

Islamabad. By the adoption of this place the purpose of delivery is accomplished in better way.

The fertility of land will generate a quality vegetable and in our future plans the export will be

easy. The location is very famous for land forming. Motorway M-2 passes 3 Km south of the

land. The land is exactly situated 4 Km to the south of New Air Port runway. The access of

retailer distributors is also very easy.

The site for vegetable juice is in G-9 Markaz Islamabad is adjacent to National Saving Centre

which is very near to Rahat Bakery Islamabad. The location for juicing is in between of theIslamabad. It will cater the need of all the customers of juice. The location is ideal for such

business. It has enhanced our strength. There is a huge space for parking and most of the

peoples will be served in their cars. This place is exact for our company.


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Distribution Channels

The effectiveness of distribution coverage and practice is of paramount importance in achieving

the desired off-season vegetable sales. Understanding of the distribution channels is crucial in

order for the manufacturer to plan and implement an effective distribution strategy. Our study

shows that the distribution of our products is to be done through multiple channels involving

producers, importers, wholesalers, retailers and users. While it is the common practice for the

individual customers to buy the products from the retail outlets; institutional/ organizational

buyers such as tourist hotels and agencies would normally place orders directly with the

producers/importers and wholesalers. Juice will be served directly to the consumers.

A typical distribution setup of off-season vegetable business involves the following hierarchy


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Sales Forecast of Juice

We have estimated our sales by increase of 2.5% in juice and vegetable items. The sales of

juice is below

MONTHS BEST CASE WORST CASE

1st month 150000 50,000

2nd month 157500 52500

3rd month 165375 55125

4th month 173643 57881

5th month 182325 60775

6th month 191442 63814

7th month 201014 67005

8th month 211065 70355

9th month 221618 73873

10th month 232699 77567

11th month 244333 81445

12th month 256549 85517


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TOTAL 2387563 795,857

Expected Production and Sale price

Expected production and sale price of some vegetable is given in Table below: -

Expected Production and Land Utilization of off-season vegetable

Vegetable LandUtilization

(Acres)

ProductionQuantity (Kgs)/

Acre

ProductionQuantity

(Kgs)

Sale PriceRs. / (Kg )

Tomatoes 2.5 25,000 62,500 30

Cucumber 2.5 35,000 87,500 16

Capsicum 2.5 12,000 30,000 25

Sales analysis of off-season vegetable

In the business of farming the prices remain constant due to a long duration picking period ofthe vegetable but they do vitiate due to market changes. We assume 5% increase of sales by

each year.

YEAR Sale

1 31,98125

2 33,58031

3 3525933

4 3702229

5 3887341

6 4081708

7 4285793


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8 4500083

9 4725087

10 4961342

TOTAL 39916973


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I. Operational Plan

For off-season vegetable farming

Production

Production of off-season vegetable and vegetable juice will be in Fateh jang, near new

Islamabad air port, on a fertile land on 6 acres. Juice producing plant will be placed on half acre.

Total area will be of 7 acre. The land will cost schedule is following;

1 kanal rate is 300,000 R.s

8 kanals/ I Acre rate will be 300,000*8 = 24, 00,000 R.s

7.5 acre rate is 24, 00,000*7.5 = 1, 80, 00,000 Rupees

The benefit to us we own this land. The agricultural loan will be easily available.

Fertilizers on Production

Using fertilizers containing Nitrogen, Phosphorus and Potash the yield of the crop can be

maximized.

Appropriate quality and quantity of fertilizer plays a great role in the production and quality of

vegetables.

Sowing & Picking period of off-season vegetables

Following are sowing and picking periods of selected off-season vegetables in their respective

normal growing seasons:

Sowing and Picking period for the selected off-season vegetables

Vegetables Sowing Period Picking PeriodTomato October (Nursery)

November (transplantation)

February-May

Cucumber End of October to end of

December (direct seeding)

Mid January to May

Capsicum Mid of September to 1st

week of October

End of January to

September


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Cultivation by this method is gaining popularity because of low cost and easy usage.

Plastic tunnels are transparent which provides required sunshine to the plants, and the plastic

also plays a barrier against the cool air in winter.Structures

Various types of structures are available to lengthen the growing season for the crop and

improve overall crop health and quality. The following are just a few of the structures available,

such as high tunnels, low tunnels, walk-in tunnels, and greenhouses. Structures that are used

for winter production must be able to withstand heavy rainfall, snow, and wind. Structures that

are used for summer production must have good ventilation. Many structures may not be

suitable for year-round production.

In the construction of tunnel the major materials involved are mild steel bars and plastic sheets.

Plastic sheets are used for roof covering of the tunnel shaped construction, which is built with

steel bars. Bamboo lengths can also be used in some proportion with the mild steel bars. Plastic

sheet is to be spread in such a manner that it enables the stoppage of cold air from outside.

The tunnel construction offers maximum crop yield, better maintenance of the fertility of land,

controlled temperature and humidity, protection from wild animals and insects and better water

conservation.

There are three types of tunnels, known as high, low and walk-in tunnels.

Low Tunnel

It is cheaper than high tunnel but creates difficulty for soil preparation, spraying and picking. The

tunnels are suitable for cucumber sown flat bed, melons, watermelons, bitter gourds, squashes,

and snake gourds etc. The crop yield in this type of tunnel is however low compared to high

tunnels.


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Curtsey: Mian Shadi Agriculture Farms Mamoonkangan, Faisalabad

Dimensions of High Tunnel

Material Specification Pipe material

Steel

Mild steel, painted with red

oxide paint

Diameter 6 mmLength 10 ft

Tunnel Specification Plastic

Height

Width

Length

No. of tunnels

0.05 mm thick and 10 ft wide

2.5 ft, half moon shaped

5 ft

190 ft

30 per acre


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Support Structure

Each tunnel will be 190 feet long, 2.5 feet high and 5 feet wide. The tunnel is built by 6-mm

diameter steel bar of 10 feet length, in half moon shape. The steel bars are put at regular

intervals of approximately 10 feet. Each tunnel structure will then be covered by 0.05-mm thick

and 10 feet wide plastic sheet. Approximately 30 tunnels can be constructed on an acre of land.

Curtsey: Mian Shadi Agriculture Farms Mamoonkangan, Faisalabad

Seed and its Importance

For tunnel cultivation, F1 hybrid seed bred for tunnel use is used, because they have the ability

to resist multiple diseases. These hybrid seeds cost more than the ordinary seeds. The

productivity and quality of the crop is ensured from quality of these seeds. Hybrid seeds haveabove 90% germination capacity as compared to that of ordinary one. The ordinary seed is

produced from the crop itself whereas hybrid seed is produced through a special process. For

every crop, new hybrid seed needs to be purchased is sown.

The crop yield achieved from hybrid seeds is 3 to 4 times more than to the ordinary seeds and

is also less prone to diseases.


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Practical Tips for off-season vegetable farming

Any person who is planning to adopt this technology should have some practical knowledge

about farming.

Land that is being utilized for off-season vegetable farming should be tested which will help in

determining the quality of land for agriculture purposes.

Farmer should ensure that the plant they are planning to grow must have the ability to self-

pollinate under the plastic sheet.

Selection of the seed is most important factor because this determines the productivity of the

crop.

Vegetables, which are in demand, should be cultivated; this will help in earning higher profit

margins.

Timing of cultivation of vegetables has to be done accurately. The farmer should

have knowledge about the benefit that the early crop will offer and should gather data about the

prices of these early crops.

LAND UTILIZATION

Total Land utilization per Vegetable

Vegetables (Acres)

Tomato ( Determinate) 2.5

Cucumber (Parth.) 2.5

Capsicum 2.5

A Soil Preparation and Sowing

Laser leveling or with any precise method soil should be properly leveled

Deep ploughing and harrowing.


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Apply well decomposed FYM 10 ton per acre or green manuring is recommended at least 60

days before sowing.

Apply basal dose chemical fertilizer one month before sowing followed by irrigation.

Prepare soil, complete beds & mulching one week before sowing.

Make holes 2 days before seeding.

Irrigation field after seeding in such a way that moisture should reach the seed place.

Next day light irrigation should be repeated to assure the proper moistures at seed place.

Material Availability

Tunnel material i.e. mild steel bar, Plastic Sheet, Iron Wire, Bamboo, is available locally from

different suppliers.

Mian Shadi Agricultural Material Company, Syngenta Pakistan Ltd and haji sons are the

major suppliers of hybrid seeds.

Fertilizers of all kinds are available locally.

Pesticides of different natures are also available locally.

Water is available from canal or can be used from peter engine.


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Process Flow Chart

Production Flow of off-season vegetables

The production flow varies slightly for different vegetables. The following production flow is

based on the production of tomatoes:

i. Sowing of seeds in a separate plot of land for nursery.

ii. Preparation of seed beds in the field for cultivation of vegetables.

iii. Using fertilizer in the soil to maintain its fertility.

iv. Transplantation of nursery in the soil or sowing of seeds directly in the soil.

v. Maintaining level of moisture in the soil.

vi. Protection from the pests, diseases and other wild growths by using pesticides/sprays of

chemicals, and trimming.

vii. Using fertilizer of different varieties for the smooth growth of plantation.

viii. Picking/harvesting at various times as per nature/requirement of the plantation.

ix. Grading of crop on the basis of quality and other standards.

x. Application of post harvesting technology for picking/plucking, packing and storing the

vegetables in order to fetch the maximum price.

xi. Transportation to the sale points in local or export markets.

PLANT & MACHINERY FOR OFF-SEASON FARMING

Following plant and machinery is required for an off-season vegetable farm of 6

Acres:

Tools, Equipment and Vehicles


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INFRASTRUCTURE REQUIREMENT

Total Land and Building Covered Area

Description Area

Agriculture Land (Acre) 7.5

Construction Cost for low tunnel per Acer

Description No. of Units

Price perUnit

Total Cost inRs.

Mild Steel, Red Oxide

painted (Kg/ Acer)

600 40 24,000

Plastic String (Kg/

Acre)

25 100 2,500

Paint, Labor (Acer) 1600

Total Cost in Rs. per

Acer

26,500

Plastic Cost Kg/ Acer) 135 140 18,900

Plastic Mulch 40 150 6000

Plastic Cost Kg/

Acer)

24,900

Total Cost Per Acer 51,400


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For vegetable juice

Vegetable juice production will be by traditional method. It is because of freshness to bemaintained. The juice will be produced in juicing machine used in home for juicing. The juice will

be flavored and recipes will be different by the combination of different other items.

Following additional items could be used in juicing;

Potatoes

Grapes

Black pepper

Sugar

Orange

Lemon

And many more used in juice recipes

HUMAN RESOURCE REQUIREMENT

Number of Staff Required

Description Number Monthly Salary per person (Rs.)

Annual Salary (Rs)

Chef 1 15000 180,000

Helpers 2 14000 168,000

Waiters 5 6000 360,000

Total 708,000

Tools, Equipment and Vehicles

Description Cost per Unit (in Rs)

Crockery 20,000

Juicing Machine 30,000

Computer 20,000


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Tables and Chairs 30,000

Counter 15,000

Interior decoration 200,000

Advertisement 300,000

Utilities expenses 25,000

Total cost 640,000

Assumptions

CropAssumptions

Cost perSeed inRs.

AverageSeedRequirement in unit/Acre

Av. SeedPrice/Acre

CropYield perAcre inKgs

SalePrice ofCrop perKg

Tomato 1.9 15000 22500 25,000. 30.Capsicum 1.5 15000 22,500. 12,000. 25.Cucumber 1.6 15000 24,000. 35,000. 13.Sale Price GrowthRate 5.%

Economy related AssumptionsElectricity Growth Rate 10.%Water price growth rate 10.%Wage Growth Rate 5.%

Cash Flow AssumptionsAccounts Payable cycle (in days) 15Equipment & Spare Part Inventory(in months) 1

Expenses AssumptionsCropWastage 1,5.%Raw Material pricegrowth rate 5.%


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Administrative Overhead (%ofTotal Revenue) 1.%Water cost per Irrigation per Acre

(Rs.) 200Irrigation (No. ofMonths) 5No. of times land irrigated (permonth) 2Fixed Electricity perMonth 3500Transport Cost per Kg(in Rs) 2.5Packing Cost per Kg(Rs) 1.5Maintenance Cost of Tunnel

Structure 2500Machine Maintenance(machine/month) 2500Machine Maintenance GrowthRate 5.%Pesticide Requirement per Acreper Year (Rs) 15000Fertilizer Cost per Acre per Year(Rs.) 15000

Farmyard Manure Cost

Farmyard Manure Per Acre Cost

Tomatoes 2889

Capsicum 2315

Cucumber 2500

Financial Assumptions

Project Life (years) farm House 10

Interest Rate Loan (on farm Land) 17%

Debt Tenure (Years) 1

Payments in a Year 2 installments


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LocationThe location for our both business units is:

Address Juice Shop: Shop # 05, Adjacent to National Saving Centre, G-9 Markaz Islamabad

Address Farm House: Moza Bango, Rawalpindi Road, Near New Islamabad Air Port, Fateh

Jang, Islamabad

Land near New Air Port, Islamabad for farming


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Map View of G-9 Shop

G-9 Shop


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The place which we have caters our all requirements regarding our budget. The customer focus

will be there. Fateh jang is the place where trade has very broader prospects regarding future.

Air port will value our land and distribution of our products will be very easy. We have 7.5 acres

in Fateh Jang near new air port for forming and we have a shop of 13x16 feet shop for juicing.

Initially we are starting our business from this place later on we will expand it further.

In G-9 we have enough space for parking. As there is currently no building in front of our

selected shop. We will run our juice shop from 7 A.M to 11 P.M. The vegetables for juice will be

fresh of our own farm and rest will be bought from market if they will be required. In farm house

we will be selling our vegetables on daily basis in terms of net cash system.

Utilities Required

Electricity

Diesel (for tube well operations)

Water

Telephone/Fax


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Trademarks, copyrights, or patents

We will register the company as partnership after the starting of business on the name of

GREEN PLATE. It will include both the Farm House and Juicing shop.


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I. Management and Organization

Our juice shop will be operated by MR.RANA MUHAMMAD SHEHZAD and the employee who

will be serving as chef. He will manage the juicing section and MR. RANA SHEHZAD will look

after him.

The Farm House will be managed by MR. MUHAMMAD MUBEEN BAHOO he will care for the

vegetable farming. Both partners will keep checks on both units frequently.

The hierarchy of peoples will be

Professional and Advisory Support Insurance agent

Banker


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I. Personal Financial Statement

Following is the spreadsheet of startup expenses and capital where contingencies are 20

percent of the total investment before adding contingencies.

Startup Expenses

GREEN PLATE

Sources of Capital

Owners' Investment (name & %ownership)Muhammad Mubeen Bahoo 50%owner 787,500Rana Muhammad Shehzad 50%owner 787,500

Total Investment15,75,

000

Bank Loans

ZTBL (loan has been taken on25% of total expenses)

5,25,000

(Loan is agricultural loan at

17% to be paid in twoinstallments according tocrops)

Total Bank Loans5,25,0

00

Reserve for Contingencies 342740

Debt/equity ratio

Debt 25%

Equity 75%


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II. Startup Expenses and Capitalization

Startup Expenses

Buildings / Real Estate

Construction cost of low tunnel Rs. 51400

Remodeling Rs. 198750

Other

Total Buildings and R / E Rs. 250150

Capital Equipment ListRotavator 30,000

Ridger 12,000

Soil Leveler/ Scraper 12,000

Spray Machines 50,000

Peter Engine 20,000

Tractor & Cultivator 350,000

Total cost of tools,equipment & vehicle

474,000

Crockery 20,000

Juicing Machine 30,000

Computer 20,000

Tables and Chairs 30,000

Counter 15,000


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Interior decoration 200,000

Advertisement 300,000

Utilities expenses

Total cost

Furniture & fixture

Pre-operational expenses

25,000

640,000

50,000

97300

Total Capital Equipment 11,14,000

LocationRental (2 months advancesecurity 50,000

Total Location Expenses 50,000

Other Expenses

interest5118

7(we have divided 2 installmentsin 12 months)Salaries of farm house 103500

Reserve for Contingencies 342740

Grand Total of startupexpenses

20,58,877


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Security and Collateral for Loan Proposal

Collateral for Loans Value

Agricultural land 1,80,00,000

Owned by MR. Muhammad MubeenBahoo

Moza Bango, Rawalpindi Road, Near

New Islamabad Air Port, Fateh Jang,

Islamabad

Owners Description

Muhammad Mubeen Bahoo

Residence: MuhammadMubeen Bahoo, House # 2,Street # 40, Sector G 10/4

Rana Muhammad Shahzad

Residence: RanaMuhammad Shahzad, H#425, Street #2, G-9/2,Islamabad.


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III. Financial Plan

12-Month Profit and Loss ProjectionFile is attached (Namely Financial Plan GREEN PLATE in excel format)

Four-Year Profit Projection (Optional)File is attached (Namely Financial Plan GREEN PLATE in excel format)

Projected Cash Flow

File is attached (Namely Financial Plan GREEN PLATE in excel format)

Opening Day Balance SheetFile is attached (Namely Financial Plan GREEN PLATE in excel format)

Break-Even AnalysisOur Breakeven point comes in between 6th and 7th month. In this month the Total revenue

becomes equal to Total Cost

Month Total Revenue Total Cost

1 150000 196000

2 157500 196000

3 165375 196000

4 173643 196000

5 182325 196000

6 191442 200,000

7 201014 200,000

8 211065 200,000

9 221618 200,000

10 232699 200,000


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11 244333 200,000

12 256549 200,000


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IV. Appendices

References:

http://www.juicingbook.com/

http://www.soymilkquick.com/vegetablejuicerecipes.php

www.smeda.org

Counsultency:

Aini Rose International Pvt. Ltd.

www.ainirose.com.pk

First floor block 20 A G-8 Markaz, Islamabad.
http://www.juicingbook.com/http://www.soymilkquick.com/vegetablejuicerecipes.phphttp://www.smeda.org/http://www.ainirose.com.pk/http://www.juicingbook.com/http://www.soymilkquick.com/vegetablejuicerecipes.phphttp://www.smeda.org/http://www.ainirose.com.pk/


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