Business Plan
JUICE COMPANY
HEAD OFFICE:
Smoothy Juice Co. Ltd 23/4, Dhanmandi 4/A, Dhaka Dhaka-1215 E-mail:
[email protected] Website: www.smoothy.com.bd FACTORY: Smoothy Juice Industry Limited Ashulia, Saver, Dhaka
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NAME AND ADDRESS OF THE PRINCIPALS
A. F. M. Rubayat-Ul-Jannat 73/9, 8/A Dhanmondi 15, Dhaka Cell: 01675031827 Email:
[email protected]
Shajahan Munshi Narayongonj, Dhaka Cell-01717431244 E-mail:
[email protected]
Nafij Ahmed Zakir Hossain road, Mohammadpur, Dhaka. Cell-01711014204 E-mail:
[email protected]
A.Z.M Shahadot Road no. 15 Sankor. Dhaka Cell-01714462940 E-mail:
[email protected]
Shahinur Akhter Road no-4/a, Dhanmondi, Dhaka. Cell-01911445453 E-mail:
[email protected]
Shaila Parvin Shantu 41/30 Mohammadpur Chanmia Housing, Dhaka. Cell-01722134026 E-mail:
[email protected]
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NATURE OF BUSINESS: We form our business as a “partnership” business. The types of our business are Manufacturing Juices, Distributor/ Wholesaler
STATEMENT OF FINANCING NEEDED: Initial financing requested of the company is 4,00,00,000 taka loan to be paid off over five years from Brac Bank Ltd.. This debt will cover office space, office equipment, and for supplies two leased vans, advertising and selling cost. The partners provided 11,00,00,000 taka jointly. So, the total cost of the project estimated at 15,00,00,000 taka.
Share of the Profit and Loss NAME OF WORKING PARTNER
SHARE OF PROFIT
1. A. F. M. Rubayat-Ul-Jannat 2. Nafij Ahmed 3. Shahinur Akhter 4. Shajahan Munshi 5. A.Z.M Shahadot 6. Shaila Parvin Shantu
SHARE OF LOSS
25% 15% 25% 15% 10% 10%
25% 15% 25% 15% 10% 10%
10% 25%
10%
A. F. M. Rubayat-Ul-Jannat Nafij Ahmed Shahinur Akhter Shajahan Munshi
15% 15%
A.Z.M Shahadot Shaila Parvin Shantu
25%
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Confidential Agreement
The undersigned reader acknowledges that the information provided by Shahinur Akhter in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of A. F. M. Rubayat-Ul-Jannat, chairman Smoothy Juice Company Ltd. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to membership. Upon request, this document is to be immediately returned to chairman.
___________________ Signature A. F. M. Rubayat-Ul-Jannat Name (typed or printed) ___________________ Date
This is a business plan. It does not imply an offering of securities.
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Executive Summery
We have prepared report is based on “Business Plan on “Smoothy Juice Company Ltd”. To prepare this report we have followed marketing research methodology for whose are children and diabetic people. The information, on which the total business plan stands, was the collection of data from the questionnaire made by Smoothy Juice Company Ltd. To see the market need and wants. The survey took place inside and outside of Dhaka.
After analyzing questionnaires we made some plan about location, building source of finance, price, product promotion, and Channel of distribution. We selected our plant location at Savar and head office at Dhanmondi. So we will get the raw materials easily. We will preserve 500ml, and 900 ml Orange, Mango, Cocktail Special juices. We keep our price relatively low than other soft drinks and fruit juice. We will place our advertisement at television & banner. We will distribute our product near by shop of Dhaka city in the form of bottle packaging so that consumer can get it easily. The whole production process is in strict conformity with international standards, and constant research and development all products. We are confident that our products and services will satisfy the highest of standards
Our pricing policy will be reasonable and channel of distribution will be convenience. So our target customers will get it easily. We hope that we will carry a good and competitive market share in soft drinks industry. Smoothy Juice provided superior value to their customer who they promised throwing advertising. So the customer are loyal the Smoothy Juice bran and build long term relationships.
Though it is exist in our country, but there is a great potentiality in this sector. If we can able to flourish this sector by investing more, our national economy will be flourishing. As well as there are lot of people may earn from this sector and can increase their life style as well increase our GDP.
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Industry Analysis
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Industry Analysis FUTURE OUTLOOK AND TRENDS: Many juice companies are already established. We determine our competitor as ACME, PRAN, SHEZAN, FROOTIKA etc. Our company will be based on beverage products. We mainly want to produce juice. It is a partnership business. Initially we prepare our business plan for three years. Next three year we target that we capture 5% of total market share. When our company will start, only three products we produce at that time. We wish to achieve a so much customer and consumer response in 1 year. It wills our betterment of our company. We get best wishes to our target customer and also the mind of the customer will obviously great beliefs of our products. Because we mention that, our product will free from sugar, fat & harmful chemicals. We expect the sales will be in next year approximately TK 5.50 corer. Our product cost is TK 3,30,50,000. The return on investment is 20% expected.
ANALYSIS OF COMPETITORS: In food & beverage market there are many renowned companies having their juice products.
Acme Juice
Pran Juice
Frooto Juice
Frutica Juice
Shezan Juice
Slice Juice
Competitors Position Acme
Pran 8%
Frooto
7%
Frutica
Shezan
Slice
12% 18%
30% 25%
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Now, we give a brief analysis about our competitor‟s market share.
Competitor
B
Price
A
D
Our position
C Performance
MARKET SEGMENTATION: We segment our market according to the demographic segmentation. In these segmentation criteria we segment our customer according to: Age, Sex, Income, and Occupation. Our main target customer is 60 % of diabetic people.
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Business Description
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Business Description Our business name is Smoothy Juice and we have different varieties in juices drinks as well and our Smoothy Juice Industry is located in Asulia, Savar, Dhaka.
WHY SMOOTHY JUICE? Smoothy Juice is especially for the children and diabetic people because it is a sugar free and diet juice. Smoothy Juice is also providing the totally fresh juices. People are very much conscious about their health and mostly people are like the fresh food rather than the Soda, Carbonated drinks. It will be also favorable for children and health conscious people.
PRODUCT & SERVICES: FRESH JUICES: For the first time we are producing orange juice for testing the consumer market. We are going to make fresh juices 3 flavors in juices available throughout the year - Orange, mango and Cocktail special. SEASONAL JUICES: In seasonal juices we initially introduced Mango, Orange. OUR SPECIALTY Our specialty, we produce juice for the children and health conscious people, because we reduce the fat level on 0.5% and add extra vitamins and add some sugar that are best for diabetic people.
100% pure juice
Pure Sugar free
Diet
Mixed flavor ( cocktail)
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SIZE OF BUSINESS: This business will produce & provide consumer product and organize medium size business. Initially we will cover the 2 division of the country but our prospect will be whole of the country.
OFFICE EQUIPMENT: As a Medium business we start our business with some necessary equipment. Our main office established in 250 Square ft Space and industry is established in 3000 square ft space. We arrange our main office with; 10 computers, 6 printers, 10 tables, 50 chairs, 10 fans, and 6 airconditioners. These are our main office equipments but there are also some other stationary and inventory. The inside view of our main office in Dhanmondi:
Accounts Department
Production Department
Conference room
Marketing Department Chairman Office
Technology & IT Depyt.
HR & Planning Department
PERSONNEL: For our new established business we will prefer skillful and capable employees who are also experience personnel in their own sector. We will try to maintain quality full employees, than quantity.
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BACKGROUND OF ENTREPRENEURS:
ONLY CV
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Business Strategy
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Business Strategy OBJECTIVE: Become as the Best New Juice Shop in the Bangladesh Improving the customer satisfaction through the good quality of products Turn in profits from the first year of operations. The creation of unique, innovative and healthy products that will differentiate Smoothy Juice from local juice shops Four new Outlets in next five years in other city of Bangladesh To exceed 6 million in annual sales by the third year of plan implementation.
KEYS TO SUCCESS FACTORS: Store design that will be both visually attractive to customers, and designed for fast and efficient operations. Employee training to insure the best juices preparation techniques. Marketing strategies aimed to build a solid base of loyal customers The products we serve are of the highest quality. We combine this quality with great service and atmosphere Customer satisfaction with high quality juices and services Competent management staff whose makes the juices and shakes fresh and good quality Location is our key success factor means that on Asulia, Savar is very suit able for our business. Management that treats every employee equally. We create an atmosphere where employee's love coming to work and can earn good money. Our commitment to providing excellent quality Juices at all times Excellent Customer Service. Quick delivery and each customer will be treated as would an honored guest in our homes Product quality. Not only great food but great service and atmosphere The creation of a unique, innovative, upscale atmosphere that will differentiate
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Fresh juice daily will give customers a unique experience as well as excellent product. Maintain good relationships with reliable supplier Repeat customers.
MISSION: Establish Smoothy Juice as the Local leading source of healthy energy in the form of freshly juices with an uncompromising commitment to making a difference through our values.
VISION: Explore all over the Bangladesh from fresh juices, providing for all their needs always with the assurance of outstanding quality.
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Production Plan
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Production Plan
Whole of the manufacturing maintain by our employees and all the raw materials will be purchased from our country and abroad and we produced our product in our factory.
MANUFACTURING MACHINERIES & EQUIPMENT AND ITS PROCESSES Three basic disciplines are used in the process: 1. Mass transfer 2. Heat transfer 3. Squeezing the orange
JUICE EXTRACTION
Firstly the oil is removed. This process is carried out without causing damage to the fruit. It is done to avoid undesirable flavors and obtain the highest possible level of aldehydes.
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Secondly the juice is extracted. The technology used involves cutting and squeezing the orange and is different to many of the In-line systems used. The HRS process does not damage the peel and therefore avoids contamination of the juice. Thirdly the juice is separated from the husk and the seeds. With this process we reduce the bitter constituents, obtaining a low reading for quick fiber and a low viscosity in NFC. The resultant juice has a minimum content of the bitter constituents, an agreeable colour, minimum natural oil content and an increased number of intact juice cells. The Limonina content is also reduced. The average cell size in the pulp is increased with a higher percentage of floating pulp. We must also highlight the fact that the process does not use water during the extraction processes, the energy consumption has been optimized and the contaminants contained in residual water have been minimized.
REMOVING THE BITTERNESS:
Once the orange juice has been obtained we have to remove the bitterness from the juice. This is done by a process designed to eliminate the limonina, narangina y hesperidina from the juice.
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Specifically for Limonina the initial concentration could be as high as 20 ppm and the final result should be less than 0,1 ppm. The process starts with stabilised fresh juice and 15 Brix reconstituted juice. They are centrifuged in order to separate out the pulp from the juice. Lewait Bayer resin is added to the juice and it is then circulated to a storage vessel where the thermal treatment is carried out.
TREATMENT OF THE PULP AND ASEPTIC FILLING
One of the key aspects related to the treatment of the pulp is the mass transfer. HRS Spiratube has developed a piston pump particularly suited to this purpose, a pump which is hygienic and can develop pressures of up to 40 Bar. Another of the fundamental aspects of the process is the thermal treatment which is carried out using a triple tube heat exchanger (HRS Spiratube model AS). In this heat exchanger the product flows through an annulus formed by tree concentric tubes making the units especially useful for:
Fluids of high viscosity
Non-Newtonian fluids
Fluids which contain small particles
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Finally the process uses an aseptic filler of the type “Bag-in-Drum” or “Bag-in-Box”, both designed by HRS Spiratube, which allow the product to be packed into aseptic containers. Preformed and pre-sterilised containers of between 5 and 1000 liters are normally used.
MX PASTEURISER
The Pasteurisers MX series produced by HRS Spiratube are characterised by the high speed of treatment, carrying out product de-aeration when the product is cold and because little maintenance is necessary. HRS has developed a new series of Pasteurisers, designated the MX series in which special attention has been paid to the following features: Feature 1. Energy recovery. Up to 85% of energy can be recovered which reduces the processing costs substantially. Feature 2. Thermal treatment times are reduced. This results in a higher quality product being provided. Feature 3. The design is hygienic. This results in a higher quality product being provided. This key aspect of the design is the elimination of all dead zones within the unit where movement of the product is restricted. These zones are inevitable present in traditional designs using product to product heat recovery particularly in the area of the product entry into the headers.
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Feature 4. Reduction in space. The most visible aspect of the MX technology is the reduction in size of the units. This has been achieved by eliminating the bends interconnecting the units. Compared to a traditional design the volume needed for the MX series can be reduced by up to 70%. In the specific case of orange juice production we can take advantage of the MX technology because it allows us to use direct product to product heat recovery. The result is a more compact pasteuriser containing significantly fewer modules. As an example we can take the case of a plant processing 20 m3 per hour of juice which requires a thermal treatment of heating the juice from 2°C to 98°C and then cooling back to 2°C. With indirect recovery (using an intermediate water circuit) 30 units would be required, 22 of which would be for heat recovery. This system would allow us to recover 80% of the energy used. In order to achieve recovery of 80% of the energy using direct recovery (with unpasteurized product in the shell and the pasteurised product in the tubes) we would require 16 units. If on the other hand we maintain the original investment and use 30 units, all for direct recovery, we can recover 91% of the energy, an additional saving of 11% in the energy used. We can quantify this saving of 11% in energy by assuming we use the process described (Heating from 2°C to 98°C and cooling to 2°C) with a flow rate of 20.000 kg per hour of juice, for which we need 0,94 kcal per kilogramme per degree C. If the plant works for 20 hours each day this would represent a saving of 3.970.560 kcal per day. This quantity of energy would require 7352 kg of steam per day which, assuming a cost of per kg, would give a saving of 220€ per day. If the plant is working 365 days per year this represents a saving of 80.504€ per year.
CIP CLEANING SYSTEM The CIP (Clean in Place) cleaning system used by HRS Spiratube is centralized with automatic control of the parameters. An outstanding feature of this design is that it has automated practically all of the cleaning operations required in the plant. 21
THE JUICE MIXING ROOM The principal components are automatic systems for mixing the product, controls for the components and the CIP cleaning operations. Mixing takes place in tanks fitted with agitators in which we can programme the proportions of the various constituents. The mass transfer of the constituents is carried out using centrifugal or pistonpumps.
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SHIPPING The shipping area contains the chillers used for loading and unloading the tanks. These chillers use MX and AS type heat exchangers that generate the best heat transfer coefficients. The products must be chilled down to between 0°C and +2°C.
DRYING THE ORANGE PEEL
In order to market the orange peel we must use a drying plant. The first part of this plant is the hydrolysis zone which takes the peel coming from the juice plant and adds lime [CaO]. When we have the hydrolyzed peel it passes to the presses where we obtain a semi-solid product and a 23
liquid. The liquid is passed to a further process of evaporation where we obtain a concentrated liquid. The semi -solid product and the concentrated liquid are both passed to the final dryer from which we receive the dry product. The Trommel type dryer can use different types of fuel such as biomass, natural gas etc. and it is important to realise that the exhaust gases from the dryer can be used as an energy source on the evaporation plant. Lastly, the product is passed to a pelletiser which gives the peel in a form which can be sold.
Graphical outlook of the manufacturing process
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PHYSICAL PLANT:
Our Production Industry situated in Asulia, Savar near of Baipayl and Fantasy Kingdom Park. The Physical plant is as follows: Industry View
Workers Accommodation
R O A D
Finished Good
OFFICE
Satellite View of Location Ware House
Raw Storage Area
PRODUCTION AREA
NAME OF THE SUPPLIERS O RAW MATERIALS: In our Country: 1. Mr. Jamil Hossain, (Mango Suppliers), Office: 34/4, Saheb Bazar, Rajsahi. 2. Mr. Ahsan Mustak, (Mango Suppliers), Office: 15/4, Olonker Mor, Rajsahi In Foreign Country: 1. Mr. Cyang Mo, (Orange Suppliers), Office: 45/7/A, Syncho Street, Cuong, China 2. Suching Rong, (Orange Suppliers), Office:5454, Guya Lia Road, Jung Ki, China 3. Mr.Rathor Dash, (Varity Fruits Suppliers), Office: Kashmir and Agra 4. Mr. Jone Smith & Jonson Height, (Other Raw materials), Office: Fruit Fantasy; England
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Marketing Plan
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Marketing Plan MARKETING OBJECTIVES
Maximum profit margin The big price objective Smoothy Juice that they provided high quality product and satisfied the customer with its product then juice Smoothy taken premium price to their customer other than our competitors. Juice Smoothy contain maximum profit margin other than their competitors.
Quality leadership The main objective of Smoothy Juice that its responsibility to provided best quality which they promised to their customers. Smoothy Juice successfully fulfills their promised. Smoothy Juice main objective to provide quality products that satisfied the customer need and their requirement so Smoothy Juice deliver the quality product.
Long relationships with customer Smoothy Juice provided superior value to their customer who they promised throwing advertising. So the customer are loyal the Smoothy Juice bran and build long term relationships.
Communication objective Smoothy Juice use different sources to attract their target customer. The objective of Smoothy Juice produces awareness in our customer about new products and also produces awareness to new customer about Smoothy Juice. Smoothy Juice also tells their customer that they provide pure juices to their customers. Smoothy Juice also give the knowledge of their juices give you energy and good taste. Smoothy Juice also gives message that their juices are good for your health.
Strategy marketing objective To build unique distribution system that provides ubiquity at low cost. To build high speed, efficient and vertical integrated manufacturing capabilities to gain low cost advantage. To reduce energy consumption during production
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To increase advertisement activities. To redesign packaging to a more attractive and familiar. To make innovation in product so that it become more portable and in convenience oriented form. To improve product quality as ever provide
PRICING STRATEGY Smoothy Juice set it juices price on value pricing method. Smoothy Juice selling its juices at price added cost and prifit margin and also keep in mind the key competitors price. Smoothy Juice provide it customer quality fresh juices that provide customer good health and enjoyement. Smoothy Juice are available…? flavored. is a main objective that its responsibility to provided best quality who they promised to their customers and they fulfill their promised. Smoothy Juice is a big price objective that they provided high quality and taken premium price to its customer. Smoothy Juice contain maximum profit margin is another objective of pricing strategy. Smoothy Juice provided superior value to their customer who they promised throwing advertising.
PRICE STRUCTURE:
Product name
Mango Juice (500ml) Mango Juice (900ml) Orange Juice (500ml) Orange Juice (900ml)
Cocktail Special (500ml) Cocktail Special (900ml)
Cost of Production Marketing raw cost Cost materials
Profit
Price/ unit
Retailer’s Selling Price
14
3.50
1.50
3.00
22
25
25
6.75
3.25
5.00
40
45
15
2.50
1.50
3.00
22
25
30
6.00
4.25
4.75
45
48
17
4.00
2.50
1.50
25
28
35
8.50
3.50
3.00
50
55
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DISTRIBUTION STRATEGY A distribution strategy defines how you are going to move products from point of creation to points of consumption, in a cost-effective manner. The effectiveness of distribution coverage and practice is of paramount importance in achieving the desired fruit juice sales. We select place for Smoothy Juice Show Room and Whole Sale shop near Star Kabab in Sankar Dhanmandi and Banani. Our location very attractive because that place also very famous for Food Street. There is no any fresh fruit juices shop. That place is also attractive for juices because there is no juices corner but there are many good food restaurants like KFC and Pizza Hat and others. So that is advantage of place for Smoothy Juice.
We actually distribute our product in two ways: 1. B2B (Business to Business) 2. B2C (Business to Consumer) We show our distribution channel in chart below:
Manufacturer
Dealer
Wholesalers
Agent
Retailer
Business to Business (B2B)
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Manufacturer
Dealer
Wholesalers
Agent
Retailer
Customer
Business to Consumer (B2C)
PROMOTIONAL STRATEGIES Smoothy Juice use different sources to communicate their target marketing. Smoothy Juice use those sources on that the more customer attract like Local Cable, Newspapers, Billboard and when they lunch any scheme in juices they use pamphlets to aware their customer. Smoothy Juice uses the channel to attract the customer and give fully information about juices through these Electronic media. As our target consumers are Old, Children and all health conscious people, for this reason we promotion our product to give advertise in television, radio. We also use vehicle writing method and posturing for our product advertisement. We also promotion our product with the help of our packaging system. In packaging we mainly follow that the product will packaged in an attractive form, that make consumers interest on our product. It packaged in different levels in variation of quantity. So people can afford it easily.
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Product forecasts: This types of product continuing in the market on the basis of their features, reasonable price, standard maintain and also quality. We are also prepare and determine that our product will be quality full and reasonable price that‟s why we are optimist about our product that will be continue a certain time.
Controls: We believe in best quality. In producing our product we maintain quality as well as quantity. For control the products quality we will import best quality equipment from abroad. We also standardization our product from our expert researcher. Our whole production process mainly base on computer for this reason is done by a very systematic process. We produce our product which has no harmful chemical. That‟s why these products have no side effect and every one in every age can use our entire product frequently.
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Organizational Plan
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Organizational Plan
FORM OF OWNERSHIP The form of the business is “partnership” business and all the partners are responsible for the business. The partners are jointly and severally liable for all debts of the firm. Smoothy Juice ltd established with 6 partners initially. Each partner has their own particular designation in the company. Our company is flat organization.
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Peoples Republic of Bangladesh
TAKA
200 PARTNERSHIP DEED THIS DEED OF PARTNERSHIP IS MADE on this 30th day of March, 2010 by and among
A. F. M. Rubayat-Ul-Jannat 73/9, 8/A Dhanmondi 15, Dhaka Cell: 01675031827 Email:
[email protected]
Nafij Ahmed Zakir Hossain road, Mohammadpur, Dhaka. Cell-01711014204 E-mail:
[email protected]
Shahinur Akhter Road no-4/a, Dhanmondi, Dhaka. Cell-01911445453 E-mail:
[email protected]
Shajahan Munshi Narayongonj, Dhaka Cell-01717431244 E-mail:
[email protected]
A.Z.M Shahadot Road no. 15 Sankor. Dhaka Cell-01714462940 E-mail:
[email protected]
Shaila Parvin Shantu 41/30 Mohammadpur Chanmia Housing, Dhaka. Cell-01722134026 E-mail:
[email protected]
WHEREAS the above named partners have decided to start the partnership business of Food and Beverage in the name and style of Smoothy Juice Company Ltd. with effect from 1
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day of June, 2010 on the terms and conditions hereinafter mentioned and have desired to reduce the terms and conditions into writing. NOW THIS INDENTURE IS WITNESSETH AS FOLLOWS: 1.
THAT the PARTIES referred above shall carry on the business of Juice in the PARTNERSHIP FIRM under the name and style of hereinafter referred to as the Smoothy Juice Company, Limited , But by their mutual consent may start and carry on any other business or businesses under any other name or names at any other place or places.
2.
THAT the business of the PARTNERSHIP pursuant to this DEED of PARTNERSHIP shall be deemed to have commenced with effect from …1st day of June, 2010
3.
That the capital required for the business of Partnership shall be contributed time to time by the PARTIES in such manner in all respect as may be agreed to between them and such capital may be paid interest as may be mutually agreed from time to time at the rate of rates not exceeding 12% (Twelve Percent) per annum.
4.
That all the PARTIES referred above shall be Working Partners and shall attend diligently to the business of the Partnership and carry on the same for the greatest advantage of the Firm.
5.
That all the WORKING PARTNERS may be paid Salary w.e.f. 1st July Feb., 2010, for the work of the FIRM as may be agreed mutually from time to time between the PARTIES in accordance with the provisions of the Income Tax Laws as well as business necessities and other factors, subject however, that the monthly Salary to each such Partner shall not exceed as under: NAME OF WORKING PARTNER MAXIMUM BASIC SALARY NOT TO EXCEED
6.
1. A. F. M. Rubayat-Ul-Jannat
TK 25000
2. Nafij Ahmed
TK 25000
3. Shahinur Akhter
TK 25000
4. Shajahan Munshi
TK 25000
5. A.Z.M Shahadot
TK 25000
6. Shaila Parvin Shantu
TK 25000
That all business expenses shall be borne by the FIRM.
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7.
That the Profits or Losses, as the case may be, of the Partnership business shall be divided among the Partners as under : NAME OF WORKING PARTNER
SHARE OF PROFIT
SHARE OF LOSS
1. A. F. M. Rubayat-Ul-Jannat
25%
25%
2. Nafij Ahmed
15%
15%
3. Shahinur Akhter
25%
25%
4. Shajahan Munshi
15%
15%
5. A.Z.M Shahadot
10%
10%
6. Shaila Parvin Shantu
10%
10%
8.
That the duration of the PARTNERSHIP shall be at WILL subject to Clause „9‟.
9.
That any Partner may retire from Partnership after giving a notice to the other Partner (s) of not less than one month in writing and at the expiry of such notice period he shall be deemed to have retired.
10. Upon mutual understanding, each Partner or his duly authorized agent shall have free access to the account books of the Partnership and shall be entitled to take copies or extracts from any or all such books and records of the Partnership Business. 11. That no Partner shall have the right to sell, mortgage or transfer his share of interest in the FIRM to any one else except to his heir or heirs or any one of the existing Partners or to their heir (s). In the event of heir (s) selling his/her share to any one else, the existing Partners shall have a right or pre-emotion in respect of such share (s) sold. 12. That the Partners shall keep or cause to be kept the books of account of the FIRM at the principal places of its business and make all entries therein, and that all such books of account kept shall be closed on 31st March every year or in the case of any necessity on any other date as the Partners may mutually decide. 13. That no Partner shall do any act or thing whereby FIRM or the FIRM property may prejudicially effected.
be
14. That the terms of the Partnership Deed may be altered, added to or cancelled by the written consent of the Parties to this DEED. 15 That the partners can open the bank account of the firm, in any bank and bank account shall be operated by the partners jointly or individually, as the case may be.
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16. That the partners shall not take any loan from any person/Financing Company, bank or any other Govt./Pvt. Department in any case, without the written consent of each other. 17. That in the case of any dispute arising out of this DEED between the Parties of this DEED; it Shall be decided by Arbitration as provided for under the Indian Arbitration Act.
IN WITNESS WHEREOF the Parties hereto have set and subscribed their respective hands to these presents the day, month and year first written above. WITNESSES OF THE PARTNERS AGREEMENT: 1. A. F. M. Rubayat-Ul-Jannat
-Mr.Farid Uddin
2. Nafij Ahmed
-Mr. Karim Khan
3. Shahinur Akhter
- Ruksana Rahman
4. Shajahan Munshi
- Mr. Faqruddin
5. A.Z.M Shahadot
- Dr. Abul Maal
6. Shaila Parvin Shantu
- Seikh Jorina
SIGNATURE OF PARTNERS
1. A. F. M. Rubayat-Ul-Jannat …………………………
……
2. Nafij Ahmed
…………………………
……
3. Shahinur Akhter
…………………………
……
4. Shajahan Munshi
…………………………
……
5. A.Z.M Shahadot
…………………………
……
6. Shaila Parvin Shantu
…………………………
……
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MANAGEMENT TEAM BACKGROUND: The company's management philosophy will be based on responsibility and mutual respect. Our management style reflects the participation of the owners; we are not very hierarchical, and encourage all employees to learn as much as possible about all aspects of the business. Smoothy has a very strong organizational culture. It believes on teamwork.
The main goal will be of our management team, to manage the organization effectively and efficiently to continue the business enterprise. The Management Team includes those peoples who have the real power in making the impossible in possible. All the members are practically experienced in practical field.
ROLES AND RESPONSIBILITIES OF MEMBERS OF ORGANIZATION: In our company we appoint 5 managers under the CEO for handling different managerial activities in different sectors. We mainly appoint manager for production & operation work, marketing work, planning and development work, financial work and also appoint procurement officers. We appoint mainly high qualified employee for our company. Under the all department manager we will employee some officers for the minimize the pressure of All Managers. ENTREPRENURE/ CHAIRMAN: A. F. M. Rubayat-Ul-Jannat, the Chairman of Juice Company. Selected by the all partners of the company, who actually give the command over the invention and control all the departments. All the business partners and personnel‟s are responsible to perform the duties as the chairmen stated. His main responsibility is to maintain the suppliers to ensure the continuity of good relations to them. The Head of the company who actually control & implement all partners‟ idea about the business. It means an individual developing something unique. Its behaves is that: 1. Initiative taking 2. The acceptance of risk or failure
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HEAD OF PRODUCTION & OPERATION: Nafij Ahmed is our Head of Production, and he has a complete and strong command over Operational management and Production Analysis. Production manager mainly responsibility is that describe the physical plant layout, the machinery and equipment needed to Perform manufacturing operation; raw materials and suppliers names, address and terms, cost of manufacturing. A production manager allocates the raw materials from different suppliers to produce the final products. The responsibilities are
Purchasing the all staff of food with better quality from food market
Responsible for all the operations with in the shops (cleanness, quality of food, timely delivery to the customer)
Responsible all the food expenses recodes
Responsible to works with all other managers
Managing Labor & controlling the production system.
Motivating the labors & making the reward opportunities.
HEAD OF MARKETING: Shaila Parvin Shantu, our head of marketing, cause she has completed his graduation on Marketing major and she has good command over marketing. Marketing involve that implementing decisions related to the marketing mix variables products, price and promotion activities. It helps effective decision strategy as well as for forecasting sales, products or services is indicated in order to project profitability of the venture. The main responsibilities are:
Focus on the Customer
Monitor the Competition
Own the Brand.
Find & Direct Outside Vendors.
Create New Ideas.
Communicate Internally.
Manage a Budget.
Understand the ROI.
Set the Strategy, Plan the Attack, and Execute
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HEAD OF PLANNING & PERFORMANCE MANGEMENT: A.Z.M Shahadot, our head of planning and performance management and he have the strength to take decision and maintain the company‟s performance. These department officers involve setting the goals and how to be achieving that, it also help to develop the existing product. The responsibilities are:
Staff Induction.
Reward and Recognition.
Staff Retention.
Management Development / Career Development.
Succession Planning.
Competency Building / Mapping.
Compensation / Benefit programs.
To facilitate / support the development of the Team members
To facilitate development of staff with special focus on Line Management
To recommend and ensure implementation of Strategic directions for people development within the organization.
Provide counsel and assistance to employees at all levels in accordance with the company's policies and procedures as well as relevant legislation.
Salary letters and employment contracts.
Approve updated organizational charts on a monthly basis and maintain
Co-ordinate the design, implementation and administration of human resource policies and activities to ensure the availability and effective utilization of human
HEAD OF FINANCE: Shajahan Munshi, our Head of financial manager and planner, he has a great command over finance because he has a educational and financial management background. Financial manager‟s responsibilities are that projection of financial data which determine economic flexibility and necessary financial investment, commitment. Financial officer control the all finance related task in an organization. The Responsibilities are
Accounts Payable
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Accounts Receivable
Audit
Budgeting
Cash Receipts
Fixed Assets
Current Assets
Payroll / Benefits
Utility Billing
HEAD OF IT & INFORMATION: Shahinur Akhter, she completed her major in CSE and has a great experience in IT sector. Its information monitors the overall organizations IT related task. They are responsible for digitalized work in an organization such as computer system, internet activities, and software system activities controlling and problem findings, and its solution activities.
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Financial Plan
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Financial Plan Smoothy Juice Company Ltd. Pro-forma Income Statement for the Year ended 31 July 2011 (Taka) Revenue: Net Sales
2,55,00,000.00
Less: Cost of Goods Sold: Beginning Inventory Add:
Purchases Freight-in
0.00 1,15,00,000.00 3,50,000.00
1,18,50,000.00 Less:
Ending Inventory
17,04,500.00
Total Cost of Goods Sold
1,01,45,500.00
Gross Profit
1,53,54,500.00
Less: Operating Expenses: Advertising Maintaince
29,00,000.00 30,000.00
Salaries & wages
10,90,000.00
Building Rent
16,60,000.00
Repairs
8,15,000.00
Depreciation (Land &Building)
1,50,000.00
Depreciation (Machinery& Equipment)
1,63,400.00
Office Expenses
50,000.00
Miscellaneous
90,000.00
Professional Fees Telephone Utilities
1,70,000.00 90,000.00 99,000.00
Marketing Van
1,60,000.00
Packaging Cost
23,00,000.00 97,67,400.00
Operating Profit
55,87,100.00
Less: Interest Expense
53,30,200.00
Net Profit Before Taxes
2,56,900.00
Less: Tax (40%) Net Income
1,02,760.00 1,54,140.00
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Financial Plan Smoothy Juice Company Ltd Cash Flow Projections For the year ended 31st July 2011 Particulars Details Cash flow from operating activities: Net income
(Taka)
1,54,140.00
Adjustment to reconcile act income to net cash: Add: Depreciation/ Amortion Loss on sale of equipment Decrease in prepaid expenses Increase in accured expenses payable Less: Increase in account receivables Increase in inventories Decrease in account payable
3,25,000.00 1,10,000.00 2,00,000.00 54,000.00 (2,80,000.00) (95,000.00) (65,000.00)
Net cash provided by operating activities
4,03,140.00
Cash flow from investing activities: Add: Sales of plant assets Investments Less: Purchases of equipment Purchases of land Purchases of building
95,000.00 5,00,000.00 (2,30,000.00) (26,00,000.00) (10,63,000.00)
(32,98,000.00)
Net cash used by investing activities Cash flow from financing activities: Add: Common stock Less: Paid of cash dividend Redemption of bond Net cash used by financing activities Net cash Decrease in during year
000000.00 (85,000.00) (00000.00)
(85,000.00)
Add: Opening cash balance
(29,79,860.00) 11,00,00,000.00
Cash of the end of the year
10,70,20,140.00
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Smoothy Juice Company Ltd. Proforma Balance Sheet For the year ended 31st July 2011 Liabilities Currents Liabilities Account payable Supplier Tax payable Notes payable Accrued payable
(Taka) 4,80,000.00 8,05,400.00 1,05,940.00 9,35,000.00 4,73,000.00
Assets Currents Assets Cash and cash equivalents Inventories Bank Account receivables Prepaid expenses Marketable securities
(Taka) 4,75,00,000.00 17,04,500.00 65,53,000.00 13,00,850.00 89,00,000.00 85,00,000.00
Long-term Liabilities Bank loan Reserve fund
3,46,69,800.00 13,85,000.00
Total current assets
7,44,58,350.00
Owner’s Equity
Fixed Assets
Rubayet
2,75,00,000.00
Land &Building
1,94,94,965.00
Shajahan
1,65,00,000.00
Machinery & Equipment
4,35,00,000.00
Shainur Nafij Shaila Sourav
2,75,00,000.00 1,65,00,000.00 1,10,00,000.00 1,10,00,000.00
Freezer Furniture and fixture Computer Cover Van Staff vehicles
Total Owner‟s Equity
Total Liabilities
25,26,500.00 18,54,325.00 11,25,000.00 35,00,000.00 23,95,000.00
11,00,00,000.00
14,88,54,140.00 Total Assets
14,88,54,140.00
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Break Even Analysis
Smoothy Juice Company Ltd Break Even Analysis for the Year Ended 31st July 2011 Fixed Cost
Variable Cost
Computer Cover Van Air Conditioner Photocopy Machine
11,25,000.00 35,00,000.00 7,20,000.00 5,50,000.00
Gas Generator Staff Vehicles Furniture & Fixture Freezer Land & Building
14,50,000.00 23,95,000.00 18,54,325.00 25,26,500.00
Total Fixed Cost
Total Cost
Raw Materials Factory Overhead Cost Miscellaneous expenses Salaries & wages
Marketing Van Utility Bill Advertisement Packaging Cost 50,94,965.00 Telephone Bill
1,92,15,465.00 Total Variable Cost
1,01,45,500.00 80,000.00 90,000.00 10,90,000.00 1,60,000.00 99,000.00 29,00,000.00 23,00,000.00 90,000.00
1,69,54,500.00
= Total Fixed Cost + Total Variable Cost = Tk. (1,92,15,465.00+ 1,69,54,500.00) = Tk. 3,61,69,965.00
Selling price per unit: Tk. 40.00 Variable cost per Unit: Tk.31.50
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Break even quantity = Fixed Cost / (Selling Price Per Unit – Variable Cost Per Unit) = Tk. 3,61,69,965.00/TK(40.00 – 31.50) = Tk. 3,61,69,965.00/ 9.50 = 38,07,365 Units (Approximately)
Break even Sales = Total produced unit * Revenue = 38,50,365 * 9.50 = Tk. 3,65,78,468 (Approximately)
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Source of application of Fund Our total equipment and capital is taka 11 crore and we have taken a loan amount of taka 4 crore to improve our product quality. Now our total capital is Taka 15 crore. The amount of taka 15 crore that we have in which areas we use this money is given below:
Plant and Machinery
Tk 4,35,00,000.00
Transportation Cost
Tk 25,00,000.00
Staff Vehicles for the corporate Office
Tk 23,95,000.00
Computer
Tk 11,25,000.00
Land &Building
Tk 1,94,94,965.00
Cover Van
Tk 35,00,000.00
Furniture and fixture
Tk 18,54,325.00
Freezer
Tk 25,26,500.00
Total Used
Tk 7,68,95,790.00
Cash in Hand
Tk 4,75,00,000.00
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Assessment of Risk
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Assessment of Risk EVALUATE WEAKNESS OF BUSINESS: Our main weakness is our business is small size business, that‟s why we have a very small capital. So we will able compete with the lower price competitor. And our resources are also limited in compare to competitors. The company can improve or eliminate the risk by:
Evaluate the setup cost in right manner
To compete with the competitors in an innovative technical way.
Carefully analyze the economic condition of the country.
To improve technological and technical support of the company.
The company should justify the legal concern in appropriate way.
The company should have clear concept about market (national & international) industry demand.
NEW TECHNOLOGIES: We don‟t implement any kind of new technologies in primary stage of our business.
CONTINGENCY PLAN: In the time when we bought our factory land in Ashulia we saw that there is a big possibility to introduce a Mineral Water as a side business. But now we don‟t take any step for this business. In future, we have a plan when our business is well established we will introduce a Mineral Water in our business area.
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APPENDIX Marketing Research Data As an initial stage of our business we actually follow some existing group of juice companies in our country. The main command of our business plan based on the Pran Group of industries. We followed them to prepare our new business invention. We research their marketing strategies in different formulas like we have collect data from website and observing the consumer market.
About Pran Group PRAN” is currently the most well known household name among the millions of people in Bangladesh and abroad also. Since its inception in 1980, PRAN Group has grown up in stature and became the largest fruit and vegetable processor in Bangladesh. It also has the distinction of achieving prestigious certificate like ISO 9001:2000, and being the largest exporter of processed agro products with compliance of HALAL & HACCP to more than 70 countries from Bangladesh. PRAN is the pioneer in Bangladesh to be involved in contract farming and procures raw material directly from the farmers and processes through state of the art machinery at our several factories into hygienically packed food and drinks products. The brand “PRAN” has established itself in every category of food and beverage industry and can boost a product range from Juices, Carbonated Drinks, Confectionery, Snacks, and Spices to even Dairy products. Today, our consumers not only value “PRAN” for its authentic refreshing juice drinks products , but also for its mouth watering quality confectionery products with high visual appeal and exciting texture. We intend to expand our presence to every corner of the world and strive to make “PRAN” a truly international brand to be recognized globally.
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Our Process of Collecting Information from Primary Sources: Primary Sources of Information: As primary information sources we use following media: 1. Investment Bankers 2. Sales Force 3. Suppliers 4. Customers 5. Employees 6. Consultants/Specialized Firms
As Secondary information we use following media:
Bibliography: 1. Hisrich D. Robert, Entrepreneurship, 5th Edition 2. Kotler. P, Keller.K. L, Marketing management, 11th Edition 3. Ahammed.M, Commercial Law (Business plan) 4. Gitman. J. Lawerance, Managerial Finance, 10th, Edition 5. Kotler.P& Armstrong, Principle of Marketing, 11th Edition Website 1. www.google.com 2. www.tatamcgrawhill.com 3. www.pan bev.com 4. www.bplan.com 5. Business Plan Pro Software
== THE END ==
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