0

Contents
Executive Summary. 1.1. Mission. 1.2. Vision. 1.3. Keys to Success. 2.0. Future Outlook And Trends. 3.0. Venture Description. 3.1. Phase-1. Demand Satisfaction/Business Introduction. 3.2. Phase-2. Volume Sales/Growth Phase. 3.3. Phase-3. Automation. 3.4. Phase-4. Setting Up Of The CattleFarm. 3.5. Phase-5. Cameat Pakistan! 3.6. Products. 3.7. Size Of Venture. 3.8. Office Equipment And Personnel. 4.0. Market Summary. 4.1. Market Analysis. 4.2. Strengths. 4.3. Weaknesses. 4.4. Market Shares. 4.5. Collaborators. 4.6. Market Segmentation.
1.0. 4.6.1. 4.6.2. 4.6.3. 4.6.4. 5.0. What They Want?? How They Use Product?? How To Reach Them?? Price Sensitivity??

Marketing Strategy. 5.1. Product.

5.1.1. Brand Name. 5.1.2. Quality. 5.1.3. Scope Of Product Line. 5.1.4. Warranty. 5.2. Packaging. 5.3. Distribution (Place). 5.3.1. Distribution Channels. 5.3.2. Locations. 5.3.3. Logistics.

Contents (cont.)
5.4. Pricing. 5.4.1. List price. 5.4.2. Discounts. 5.5. Promotion. 5.5.1. Advertising. 5.5.2. Public Relations. 5.5.3. Promotional Programs. 6.0. Production Plan.

Phase-1. Demand Satisfaction/Business Introduction. 6.2. Phase-2. Volume Sales/Growth Phase. 6.3. Phase-3. Automation. 6.4. Phase-4. Setting Up Of The Cattle Ranch. 7.0. Operational Plan. 7.1. Phase-1. Demand Satisfaction/Business Introduction.
6.1. 7.1.1. Procurement. 7.1.2. Meat Slicing. 7.1.3. Packaging. 7.1.4. Transportation. 7.2. Phase-2. Volume Sales/Growth Phase.

Phase-3. Automation. 7.4. Phase-4. Setting Up Of The Cattle Ranch. 8.0. Financial Plan. 9.0. Break-Even And Ratio Analysis.
7.3.

References. Appendix.

1.0.

Executive Summary

ameat is a new & unique fresh packaged meat (chicken, mutton and beef) distribution company in the Karachi. Cameat is a Limited Liability Corporation, managed by its owners, Salman and Ali. Salman has five years of experience managing a successful meat distribution branch of a local meat depot. Ali had completed his MBA and is currently training to be a nutritionist; his knowledge of the health benefits of animal protein will help our marketing and sales efforts. We will initially start with the market of Karachi where demand for meat is very high[1]. The package meat will be available in the 2 kg to 0.5 kg packaging as well as in a bulk quantity for our corporate customers. We will do advertising by the help of the broaches that we intent to distribute. Moreover, we will also be doing advertising through billboards. Salman will be handling the operations and being finance major will look after the Finance function. By involving in our management team the people having diversified strengths we will be able to let our business be supported well by all functions. We have the benefit of being the second to none in the market. We have applied the concept of branding and have named our product as CAMEAT a name that is easy to associate the product with. Moreover through our services and advertising we have tried to portray the high quality that our products will surely offer. The report also provides a well-researched and conservative financial plan for the coming years that will ensure that we remain in the business in the long run. Every cost has been added. In the long run, we intend to enter into the cattle farming business.Home place of Ali i.e. Sahiwal is much favorable for the breeding as it being a fertile area provides climate suitable to cattles.

1.1. Mission.
Our Mission is to provide our health conscious clientelesthe nutritious, delicious & premium quality meat at their door-steps.

1.2. Vision.
To be a successful leading meat producer in Karachi through 100% cunsumer satisfaction.

1.3. Keys to Success.

Experienced Owners. Salman and Ali have years of experience in this and related industries. Product Quality. We sell only the premium quality meat. Enough Working Capital. to survive the first year as we build a customer base.

Before embarking to the next section Venture Description lets have a general look at the future outlooks and trends of the food industry;

2.0.

Future Outlook And Trends.

World food production shall not meet demand by 2030 and there would be great shortage in all animal products in the next 30 years[2]. There would also be great water shortage throughout the world in the next 20/30 years[3], so managing animal-based products would primarily be a matter of water conservation. In Pakistan, water wastage has induced water logging and salinity problems rendering about 50% of the area of NWFP and Sindh unusable[4], eating into about 40 thousand acres of land annualy[5], and rendering the remaining land far less productive[6]. This waste-land is then utilized for grazing animals, and the animals made ready for commercial utilization are not at par with the demand and the death rates of animals are also high. Many such diseased and dead animal are informally injected into the meat industry, hence risking the life of the consumer. Seeing that the future projection of the global industry is a shortage in meat supply, we foresee that such practices would increase. What would increase alongside is animal smuggling to neighboring countries, especially Afghanistan where much of the local animal is being smuggled today, and where an environment conducive for local industry is far from sight. It is an important observation that cattle from Punjab is being smuggled to Afghanistan and from Sindh it is being smuggled to Iran[7]. Hence, both the northern and southern parts of Pakistan face increasing livestock and meat prices due to animal shortfall. The per capita meat consumption in Pakistan is way below the global average of 41.2 kg per capita per annum, but the per capita per annum consumption of Pakistan at 14.5 kg is only below China in the region. Theconsumption in India is 5.1 kg, Bangladesh 3.1 kg, Nepal 9.7kg and Sri Lanka 7.1 kg, which is way below the consumption in Pakistan, but the consumption in China is 59.5 kg per capita per annum, around four times that of Pakistan[8]. Hence, Pakistan is second in the regional rank of meat consumption. The large difference with China in meat consumption is mainly due to meat prices and availability, as more than 50% of Pakistanis would prefer to consume meat rather than vegetable and pulses if price was kept constant and financial constraints are removed, as found in a Gallup survey[9]. This is not only the problem of Pakistan, but according to an FAO Survey this is the case with most developing countries especially those in Africa and South Asia[10].The recent decrease in consumption of about 1.7 percent can be attributed largely due to increases in the meat price and that can subsequently be attributed to the smuggling of the animal to Iran and Afghanistan.

3.0.

Venture Description.

The theme of Venture is about sustainable production and distribution of quality meat and meat based products. As we foresee the demad of the meat in Karachi, we plan to base our venture on meat and related products. For the start-up we plan to purchase, clean, and repackage meat for household and different restaurantsusage. This would help us generate real meat demand, or atleast judge the potential for meat demand before further investment into the venture. We have split the growth of the venture into five distinct phases:

3.1. Phase-1. Demand Satisfaction/Business Introduction.

In the first phase, the sole purpose of the business would be to realize demand and efficiently cater it. No significant investment would be made in operations or production. We would purchase good meat from the open market, process and repackage it into a high-quality acceptable form. This phase would be sales/advertising intensive.

3.2. Phase-2. Volume Sales/Growth Phase.

This phase would set in if profitability in the first phase is achieved and significant volume demand of ourproduct is realized. If we find that the supply of our product is far less than the demand, and the consumer is falling in love with the product, we shall increase the volume and expand production levels significantly.

3.3. Phase-3. Automation.

To become a true competitor in fresh meat industry and to expand towards production of meatbased products we would require greater investment in machinery. We realize this as the third phase for our business expansion. This would not set in unless the volumes justify that investment into machinery would make processes more efficient& reliable.

3.4. Phase-4. Setting Up Of The CattleFarm.

The dream in our business is to set up a model ranch, where we can rear cattle in an environmentally responsible and cost reducing manner. We expect that if significant sales is generated, then we can expand our margins considerably by investing into the animal breeding and rearing it on the farm for the ranch we will be buying wasteland. Our setup and maintenance costs for the ranch would be lower than most formal cattle-rearing setups. Hence, it would be a true cattle ranch for the future.

3.5. Phase-5. Cameat Pakistan!

Nobody knows what the future holds, but if we are able to increase our brand value significantly and cusumers begin to realize that our products are nutritious, delicious and high quality then we can definitely integrate into the ultimate vertical node for the industry, the restaurant business. A restaurant chain based on meat based products might help us utilize maximum margins possible in the industry.

3.6. Products.
For the business launch, we plan meat to be the only product. We shall pay particular attention to the cleaning, proper cutting/slicing, and packaging of the meat. As the venture grows and we find it profitable, we shall try to integrate the business into meat-based products like kebabs, frozen meat foods, and fresh-cooked meat food, and tap onto backward linkages by setting up our own model ranch with lowest possible costs of production and highest possible standards for health. Our primary focus is not on forward linkages, but to integrate backwards to maximize our margins through operations. Our vision of the perfect forward linkage is to be a major player in the fresh food business, and a favorite food outlet with meat based products. Meat (chicken, mutton and beef) are known for their characteristics of natural preservation for up to five days in harsh humid weather. This can go in our favor as we would not need to work very hard on preservation and the meat quality can be retained with minimum effort in the beginning.

3.7. Size Of Venture.

The size of business would differ from phase to phase, but at the initial level we foresee our revenues in tens of thousands a month, a rental facility to process the meat, and some two permanent and four/five part-time employees.

3.8. Office Equipment And Personnel.

At the start-up level, we foresee that we would require one full-time employee who is skilled butcher and knowledgeable about meat. Hewould be our meat procurement officer, and would also be in charge of the cutting/cleaning of the meat. He can be assisted by some part-time young employees. There would also be a full-time employee for packaging the meat. The major chunk of our Human Resource would be part-time Salespeople; for this,we would hire university-level students for this job and pay them on an hourly rate.

4.0.

Market Summary.

Market Analysis is very crucial before entry into any business. The industry for our business is primarily the meat industry and the food industry in general. The analysis for this industry is relatively difficult because of the little amount of local recorded information. However, we were able to gather some crucial information through recorded information, and other through our own observations.

4.1. Market Analysis.

As far as chicken is concerned K&Ns holds the number 1 position in packaged chicken and company value is trying to make its place in that market (Mon O Salwa doesnt raw meat). For the meat(chicken, mutton and beef)there are only two major players in current market MeatOne (Formally Alshaheer) and PKMeats, both of these have no contigence market planning and due to their few shops in Karachi they still faills to fullfill the demand. Some stores like Makro, Naheed etc are also offering it at their stores. Hence there is still enough space for new ventures to avail the opportunity in similar industry.

4.2. Strengths.
Our customers have already developed taste for chicken and cow meat, so we dont have to invest much in developing a market for it. Moreover the distribution of animals from them is being supported at present by a well developed channel.

4.3. Weaknesses.
The rising health concerns amongst the consumers leave the meat from open butchers shop at a disadvantage plus high prices leave the old players in the maet market at disadvantage. Unlike them we will offer the premium quality products to every individual who is health conscious.

4.4. Market Shares.

K&Ns is the only player in packaged chicken so it has almost all the shares. For the unpackaged chicken and cow meat we dont have any proper stats as it is undocumented.

4.5. Collaborators.
As mentioned earlier we will try to build up collaboration with the renowned restaurants to make the taste of our product familiar to the people. Moreover we will form alliances with stores like Imtiaz to ensure that they push our products for sale through proper placement of our products.

4.6. Market Segmentation.

Our target market is the people that are health conscious and want a balanced diet to remain healthy. Moreover, this also includes the restaurant owners that want to introduce new varieties in their menu in order to keep providing their customers with something new.

4.6.1. What They Want??

They want healthier option and might pay in some cases slightly more for that.

4.6.2. How They Use Product??

They use the product for making the traditional dishes like Karahi, Biryani, and Roast etc.

4.6.3. How To Reach Them??

We will reach them through distribution of broaches (please see Appendix) and direct marketing. Moreover, we will try to get to them through the mobile advertising that we will be doing through our vehicles and inform them about the point of our contact with them that is our UAN number and the website.

4.6.4. Price Sensitivity??

We are here talking about a necessity that is food. Low price variations might not affect that much but if our prices vary a lot from that of the substitutes we might lose market. A prove of it is that when the price of chicken falls to the low due to swine flue disease the consumption of people did not follow with an increase in consumption. This shows that only price is not the sole determinant in that case.

5.0.

Marketing Strategy.

5.1. Product.
The product decisions should consider the product's advantages and how they will be leveraged. Product decisions should include:

5.1.1. Brand Name.

We chose CaMeat as our brand name. This is just an initial sample brand name; otherwise some better and more appealing name can be generated by applying branding laws. We just applied the law of contraction and kept the name short and simple.

5.1.2. Quality.
The quality of our product would be high, as high as possible for us. Our target market is the highend segment, and we believe in increasing our margins as the quality of our product creates its reputation. The other reason is that we are appealing to the health-conscious people and they would not accept a product of low or even medium quality in the long-run.

5.1.3. Scope Of Product Line.

In the beginning the product would be uniform, raw meat cut in different styles for easy cooking, and packaged in packets of different weights.

5.1.4. Warranty.
The warranty of our product would be our brand name and our direct sales team which shall remain in contact with the customers to ensure that quality is retained and would collect customer feedback to know how we can improve our product.

5.2. Packaging.
In branded meat products, packaging is one of the keys to purchase. We propose that the package should be transparent from atleast one side so that the customer can see the meat quality and ensure before the purchase. meat is peculiar in the sense that it does not go bad even up to five days in harsh conditions, and is reddish fresh for a week. So, customers would like the fresh look of the meat and purchase it on seeing it. The other side would have to be in the shape of a sturdy plastic/cardboard plate. Hence, we would place the meat in a cardboard/plastic plate which would have our logo printed on the side without the meat and the same side would have details about the peculiar and nice things about meat, and the whole parcel would be covered with a strong plastic sheet to ensure that the any juices of the meat remain within.

5.3. Distribution (Place).

Distribution Decision variables include:

5.3.1. Distribution Channels.

We would have to utilize established retail stores for the distribution of our product, but we will not place our product in the major retail giants like Makro and Metro initially because they have the potential to develop themselves into this sector as well. So, we would only start placing our products in

10

them once our brand is established in our market and even if they present meat through their own name we would have our advantage as a pioneer brand. Motivating The Channel - for example, distributor margins: Channel motivation shall be based on product margin, and volume-based bonuses for the channel members. The retail store with the greates sales volume of our product shall also be awarded with certificates and honors, and shall be included in the PR efforts of the company so that the channel member grows with our growth, a winwin situation. Criteria For Evaluating Distributors- The primary initial criteria would be sales volume, but as we grow we shall also evaluate on the basis of discount and financing required by the distributor. Qualititative standards shall be built into the evaluation alongwith the initial quantitative standards.

5.3.2. Locations.
For retailing and advertisement the locations would be posh localities, like Landhi Korangi Town, PECHS, Defence, Sadar, Tower and Clifton, initially. These are the areas where our target market resides.

5.3.3. Logistics.
Including transportation, warehousing, and order fulfillment : We shall keep the logistical functions in our own hand, as one of the partners has knowledge of the supply chain and can build it into one of the strengths of the company. Warehousing and transportation costs can be minimized as meat has the characteristic to survive harsh conditions without significant change in quality. However, as we plan to position on quality and premium image, we would soon shift to the high-tech practices in meat distribution.

5.4. Pricing. 5.4.1. List price.

To introduce our product into the market initially we have to follow a market penetration strategy and fight through low cost. So, our initial list price might be somewhere around Rs. 399/kg, much lower than the cost for beef, and slightly higher or equal to the price of chicken meat. This would help build consumer interest and generate trial which is critical for generating demand. As demand grows, we shall try to experiment with the price, and try to increase it towards the Rs. 499/kg , but we would

11

have to do this carefully and depend more on operational efficiency. If we find that the consumer for our product is not very price sensitive and values the product quality more than the prevalent substitutes, then we can move on towards the market price of beef and other substitute meats and then exceed that.

5.4.2. Discounts.
We shall give margin discounts to the retail partners, but we would not give price discounts to the consumer. This is because we do not want the consumer to consider us as a low quality company, and want a premium image associated with us instead of a company living on price discounts.

5.5. Promotion. 5.5.1. Advertising.

Including how much and which media: We will not utilize the mass channels for advertising our product, because of the high cost associated with them, until we reach a level of revenue where we can invest in such channels. However, we shall sponsor cookbooks of famous chefs, and place our advertisements in cooking magazines and related literature to appeal to the market as a whole.

5.5.2. Public Relations.

We shall try to convince prominent chefs and household advisor ladies, like Chef Rahat, Zubaidah Tariq, Kaukab Khwaja, etc. to tell the benefits of meat and mention Cameat casually during their appearances on mass media. This would help build the brand and establish credibility.

5.5.3. Promotional Programs.

Our main focus would be on direct sales and our direct sales agents would be the first point of contact for the customer with our company. They would educate the customer about meat, and why Cameat is the brand of choice for meat. Their need arises due to the fact that customers, especially women, like to interact and discuss before making a purchase, and as we plan to use university students as part time direct sales agents they would talk sensibly and in a civilized manner to the customers.

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6.0.

Production Plan.

The breakage of the production plan has been done on the survival timeline and production volume basis. The production would definitely depend on volumes and volumes can be practically gauged on the age till which the business survives. If the business does not gr ow, or volumes dont justify the business would not shift onto the next phase of the production plan.

6.1. Phase-1. Demand Satisfaction/Business Introduction.

In the first phase, the production would be packaging based. The meat would be purchased from open markets. Good quality meat would be selected, purchased, cleaned and then packaged into proper packaging material for sale. The requirements would be procurement employees, who should be trained enough to do the meat cleaning as well. The packaging would be done manually, through minimal automated processes. The printing of the packaging material will be outsourced to a smallmedium company. The quality of the packaging material would matter nearly as much as the quality of the meat. This phase might last from six months to an year ideally.

6.2. Phase-2. Volume Sales/Growth Phase.

The business eventually has to shift onto a phase where the demand requirements increase to a level where the business would have to purchase a and perform the slaughter. This requirement would set in to ensure quality standards and proper cleaving and slicing of the meat for proper presentation and packaging of the meat. The by-products of purchasing the can lead to a possible extension into leather industries, but for now we propose that the hide would be sold off to tanneries. One very important by-product would be the hump which is considered a delicacy in the middle-east and China, and other regions where meat is common.

6.3. Phase-3. Automation.

The proper slicing and cuts of the meat would assist in another process which is the automation of the packaging process, and if possible, of the cutting and slicing process. This would be done through high quality machinery and proper training would be given to employees to operate the cutting machinery and the packaging machinery would be as automated as possible, with minimum technical intervention requirement. Hence, our production would become faster and the quality of packaging and slicing would increase substantially enabling us to cater to greater volumes with little, if any, decline in quality.

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6.4. Phase-4. Setting Up Of The Cattle Ranch.

The final phase of the production process that we envision would involve the last backward integration of the production process. We would set up our own ranch on a wasteland with sustainable halophyte plants for fodder. This would enable us to capitalize on the margins and produce such resilience in the business model that new entrants would have to face tough competition against our venture. There might be further production improvements after that, but this is the ultimate goal in a five to ten year plan for our business.

7.0.

Operational Plan.

The operational requirements of the plan are also split into several phases, as below:

7.1. Phase-1. Demand Satisfaction/Business Introduction.

In this phase the most important aspects of operations would be:

7.1.1. Procurement.
The meat procurement aspect would be the most important operations function as the quality of the purchased meat would have a direct impact on the quality of the final product and the consumers impression of the product. Hence, this would be a critical aspect, and highly trained, dedicated and honest employees would be required to perform this duty.

7.1.2. Meat Slicing.

The purchased meat might not be sliced or cleaved in an ideal way for cooking. So, the next most important aspect would be of the proper slicing of the meat. As meat is tough, the slicing would be kept in mind ensuring that the meat becomes easier to cook relative to the large tough chunks that might be purchased.

7.1.3. Packaging.
The printing and design of the packaging material must be outsourced in this phase, but the packaging process itself would be done in-house with minimal mechanical usage. The packaging would have to be immaculate to give a high-quality premium meat look.

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7.1.4. Transportation.
We wish to keep our distribution in our own hands as we see distribution as a strategic process. Since meat is a perishable item, we would require refrigerated trucks to transport it. In the initial phase, a regular Suzuki van which is packed with ice can do the job, but it would not be the ideal carriage for the transportation of the product. We also envision our transportation as a marketing tool for painting and pasting ads on its outer walls, and for that the carriage should be in immaculate condition and give a medium if not high-end look.

7.2. Phase-2. Volume Sales/Growth Phase.

With the introduction phase complete, the volumes would increase and greater need for human resources might set in especially for the new process requirement for slaughtering. The other thing to focus on would be the purchase of the animal, where the earlier meat purchase pattern would not hold anymore, so instead of the regular employees new people would have to be employed with possible expertise in veterinary services who can examine the animal to ensure the quality of its meat. The earlier meat procurement people can now focus on the process of slicing the meat.

7.3. Phase-3. Automation.

For the automation phase mechanical and technical requirements would increase and for that some employees with engineering and maintenance background would have to be hired. Alongside, machines of high quality would be purchased for slicing and employees would be trained on them. Packaging would shift from manual to automated systems. The printing and designing would still be outsourced, but the inhouse process of packaging the meat would become quicker.

7.4. Phase-4. Setting Up Of The Cattle Ranch.

The operations setting would change significantly after the setting up of the ranch. The role of the veterinary staff would change from part-time for animal procurement to full-time for the care of the animals, animal husbandry, and etcetera. Some staff would be required for fodder production in the form of halophyte plants. The rest of the processes would remain the same.

15

8.0.

Financial Plan.

Financial statements are presented in the following pages. The assumptions and explanations of all financial information is provided in the appendix. The business is expected to break even in the second year. We are seeking to finance the project with owners contribution of Rs. 4 million in total with all the four owners contributing Rs.1 million each. When we go in the expansion stages we plan to obtain external financing most probably in the 5th year.

Table 1. Pro Forma Income Statement.

16

Table 2. Pro Forma Balance Sheet.

17

9.0.

Break-Even And Ratio Analysis.

Table 3. Break-Even And Ratio Analysis.

18

References.
1. Gallup. (2009, March 30). MEAT CONSUMPTION. Retrieved December 4, 2012, from Gallup.com.pk: http://www.gallup.com.pk/Polls/30-3-09.pdf 2. Wenjun Zhang, C. B. (2007). A longer-term forecast on global supply and demand of food products. International journal of food, agriculture and environment , pg 105-110. 3. Hart, A. (2009, December 2). Water Demand-Supply Gap Rising At Alarming Rate, Report Shows. Retrieved December 4, 2012, from Circle of Blue WaterNews: http://www.circleofblue.org/waternews/2009/world/news-water-demand-supply-gap-risingat-alarming-rate-report-shows/ 4. Hussain, I. (n.d.). Water Logging, Salinity Eat into Farmers' Yields. Retrieved December 4, 2012, from Asia Water Wire: http://www.asiawaterwire.net/node/64 5. Khan, D. a. (1999, March 01-07). MAJOR AGRICULTURAL PROBLEMS. Retrieved December 4, 2012,from Pakistan Economist: http://www.pakistaneconomist.com/database2/cover/c9911.asp 6. Hussain, I. (n.d.). Water Logging, Salinity Eat into Farmers' Yields. Retrieved February 23, 2010, from Asia Water Wire: http://www.asiawaterwire.net/node/64 7. Azeem, M. (2010, March 28). Front Page : Cattle being smuggled to Afghanistan and Iran. Retrieved May 9, 2010, from Dawn.com: http://www.dawn.com/wps/wcm/connect/dawncontent-library/dawn/the-newspaper/front-page/cattle-being-smuggled-to-afghanistan-andiran-830 8. Ahmad, M. (2010, February 20). Per capita meat consumption declines by 1.7pc. Retrieved May 9, 2010, from TheNews.com.pk: http://www.thenews.com.pk/daily_detail.asp?id=225088 9. Gallup. (2009, March 30). MEAT CONSUMPTION. Retrieved December 4, 2012, from Gallup.com.pk: http://www.gallup.com.pk/Polls/30-3-09.pdf 10. Animal Production and Health Division, F. A. (November, 2003). Global Production and Consumption of Animal Source Foods. Rome: FAO.

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Appendix.
First Year Financial Plan.
Employees (Permanent) 5 1 Delivery Guy 2 Packaging Officer 1 Sales Officer 1 Purchasing Officer 50 kg per day Selling Price Rs.399 Cost per kg= Rs.300 Packaging Cost per kg=Rs.25 Salary per person= Rs.7000 (Fixed rate) Fuel , Utilities, and office Supplies

Sales

Rs. 4.56mn

COGS

Rs. 3.19mn

Salaries Selling and Administration Expenses Advertising Depreciation Other Operating Expenses Non Operating Expense Cash Accounts Receivable

Rs. 0.42mn Rs. 0.48mn

Rs. 0.03mn

Advertising will be done through brochures, Mobile advertising Straight line depreciation; Useful life= 10 years

Rs. 0.072mn Rs. 0.8mn

Contractual employees wages ( 2* Rs.3000) Cost of installation of Cold Storage facility 40% of sales 60% of sales

Inventory

45 kg per day average inventory

Building

Rs.025mn

One of the owners, Zaid Bin Shahid owns the building

Delivery Van

Rs. 0.294mn

Ijarah Financing for 5 years @ 5% rental

Cold Storage Facility

Rs. 0.8mn

Installation cost

20

Second Year Financial Plan.

Employees (Permanent) 10 1 Delivery Guy 2 Packaging Officer 3 Sales Officer 4 Purchasing Officer 5% growth Revenues coming in from selling hides, humps and other by-products

Sales Other Revenues

Rs. 4.79mn Rs. 0.1mn

Salaries

Rs. 0.84mn

Salary per person= Rs.7000 (Fixed rate) Fuel , Utilities, and office Supplies

Selling Administration Expenses Advertising

and

Rs. 0.48mn (same as year1) Rs. 0.03mn (same as year 1) Rs.0.028mn

Advertising will be done through brochures, Mobile advertising

Depreciation

Straight line depreciation; Useful life= 10 years

Other Expenses Cash

Operating

Rs. 0.072mn (same as year 1)

Contractual employees wages ( 2* Rs.3000)

40% of sales

Accounts Receivable Inventory

60% of sales 5% growth from year 1

Building

Rs.025mn (same as year 1) Rs. 0.294mn

One of the owners, Zaid Bin Shahid owns the building

Delivery Van

Ijarah Financing for 5 years @ 5% rental

Cold Storage Facility

Rs. 0.8mn (Same as year 1)

Installation cost

21

Third Year Financial Plan.

Employees (Permanent) 10 1 Delivery Guy 2 Packaging Officer 3 Sales Officer 4 Purchasing Officer 5% growth from previous year

Sales

Rs. 5.03mn

Other Revenues

Rs. 0.11mn

5% growth from previous year. Revenues coming in from selling hides, humps and other by-products Salary per person= Rs.7000 (Fixed rate) Fuel , Utilities, and office Supplies

Salaries

Rs. 0.84mn

Selling Administration Expenses Advertising

and

Rs. 0.48mn (same as year1 and 2) Rs. 0.03mn (same as year 1 and 2) Rs.0.028mn

Advertising will be done through brochures, Mobile advertising

Depreciation

Straight line depreciation; Useful life= 10 years

Other Expenses Cash

Operating

Rs. 0.072mn (same as year 1)

Contractual employees wages ( 2* Rs.3000)

40% of sales 60% of sales

Accounts Receivable

Inventory

5% growth from year 1

Building

Rs.025mn (same as year 1) Rs. 0.294mn

One of the owners, Zaid Bin Shahid owns the building

Delivery Van

Ijarah Financing for 5 years @ 5% rental

Cold Storage Facility

Rs. 0.8mn (Same as year 1)

Installation cost

22