AN INTERNATIONAL BUSINESS PLAN

I. Executive summary
A. Key elements of the plan
Business,Market,Marketing,Legal,Personnel,Operations,Finance

B. Description of business and target markets

We at Paper Planes India Pvt Ltd., are into the global trading of all
types of Paper Products.We value our clients and venture not
only to foresee their demand, but also provide the best services
along with products. We trade across the globe with
representation and associates in India, China, Kenya, Uganda,
Ethiopia, Tanzania, Rwanda, D.R Congo, Nigeria, Sudan,
Indonesia and are exploring many more geographies.

C. Brief description of management team

Mr Amit Gagoi ,managing director. He has worked in the export
department at JK Paper for over 7yrs.
Mr Sudhanshu Singh, operations manager. He has worked in the
logistics team at DHL India for 3yrs.

D. Summary of financial projections

II. Business history

A. History of company
Paper Planes India Pvt Ltd., was incorporated in the year 2016 in
Mumbai.
B. Products-services offered and their unique advantages
We offer different kinds of printing paper such as:
Copier Paper
Virgin Kraft Paper
Test Liner
Flute Liner
Bank Paper
Newsprint Paper
Offset Paper
Colored Offset Paper
LWC Paper
White Coated/Non-Coated Paper
Duplex Board
Grey-Board Paperboard
GC-1 Board
Manila Board
Woodfree Paper
White Top Kraft Paper
We also perform services for personalized customization of paper.
C. Domestic-market experience
The domestic paper market is dominated by large players owing to their size,
brand value and financial strength. We have fulfilled one order so far for Korex
India. 20 metric tonnes. However we are presently only focusing on the foreign
market as Indian market isnt feasible.
D. Foreign-market experience
We have received 30 quotations so far and have converted them into 3 orders. We
have shipped our first order to an educational institute in Sudan.
E. Production facilities
We are merchant exporters and we have no manufacturing operations of our own.
We have an office in Andheri East, Mumbai where we carry out our
administrative operations.
F. Personnel-international experience and expertise
We have appointed Mr Amit Gagoi as managing director of Paper Planes India
Pvt Ltd. He has worked in the export department at JK Paper for
over 7yrs. We have also appoited Mr Sudhanshu Singh as

operations manager. He has worked in the logistics team at DHL

India for 3yrs. The rest of the staff has no international
experience and are trained on the job.
G. Industry structure, competition
No real licensed manufacturing companies in the target countries. Hence major
competition from other exporters from Asia.
III. Market Research
A. Target countries
1. Primary: Uganda
2. Secondary: Kenya
3. Tertiary: South Sudan
B. Market conditions in target countries
1. Existing demand
Uganda
Demand: 90000 metric tonnes
Net Consumption: 88000 metric tonnes
Per Capita Consumption: 2.2 kg/year/person
Kenya
Demand: 203000 metric tonnes
Net Consumption: 175000 metric tonnes
Per Capita Consumption: 4 kg/year/person
Sudan
Demand: 81000 metric tonnes
Net Consumption: 83000 metric tonnes
Per Capita Consumption: 2.1 kg/year/person
Demand for stationery products has registered a two-fold increase
among importers in East African countries because of the increase in the number of
educational institutions as well as commercial organisations. With greater emphasis on
education and vocational training, demand for stationery and related products has also
witnessed a substantial rise. In the absence of a truly self-reliant manufacturing sector,
most African countries have to depend on overseas imports to fulfill demands within their
own countries. The trend is to import low-priced goods from nearby countries and
distribute them locally and regionally on a high profit margin.
2. Competition
In the absence of a truly self-reliant manufacturing sector, most African countries
have to depend on overseas imports to fulfill demands within their own countries. Major
competition for us is from merchant exporters in other countries like Indonesia, China,
India. Large manufacturers from India(ITC,JK Paper),Indonesia etc provide for 80% of
the supply. Most African buyers, on the other hand, do not require the merchandise in
such large quantities and are more comfortable with sourcing smaller quantities of
different paper products. That will be our target market.

3. Strengths and weaknesses of the economy-barriers to entry, etc.

Strength: Good Margin on revenue
Weakness: Political uncertainty, payment issues.
No major barriers to entry in the target countries in this particular industry.
IV. Marketing decisions
A. Distribution strategies
Direct exporting
B. Pricing strategy
Cost based pricing.
All costs upto on board the ship. Plus insurance premium, agents
commission,freight,profit. Profit margin will range from 5%-20%
C. Promotion strategy
Exhibitions and trade fairs have played an important role in promoting our
company. Advertisement in trade magazines and mailers are also sent. However we dont
intend to spend much for promotion activities in the first year.
D. Product strategy
High variety,high quality products at reasonable prices.
V. Legal decisions
A. Agent agreement
The agent agreement will include the following details:
The product price
Selling rights
Payment terms
Ownership
B. Patent, trademark, copyright protection
No patents,trademark,copyright protection. Company logo on packaging only.
C. Export/import regulations
No special license/certificate required for exporting paper products to the target
countries.
D. ISO 9000
Not in the first 5 years.
E. Dispute resolution
Strategy to resolve payment disputes would be via reconciliation and mediation.
However in the initial years all orders would be insured via ECGC policy.
VI. Manufacturing and operations
A. Location of production facilities for exports
No production facilities. An office in Andheri East, Mumbai to carry out
administrative operations.
B. Capacity of existing facilities

700sqft rented office.

C. Plans for expansion
No plans for expansion in the first 5yrs.
D. Product modification necessary to adapt to local environment
Personalization of products if requested by consumer. No real differentiation in
product except standard quality.
VII. Personnel strategies
A. Personnel needed to manage exports
Managing Director, Operations Manager, Account Executive, Billing Executive,
Office boy, Sales Representative(Onsite)
B. Experience and expertise of existing personnel
Mr Amit Gagoi ,managing director. He has worked in the export
department at JK Paper for over 7yrs.
Mr Sudhanshu Singh operations manager. He has worked in the
logistics team at DHL India for 3yrs.
Ms Smita Kelkar,account executive has worked for two years in the accounts
team before.
Mr Ravi Seth, billing team, is a fresher.
Mr Uday Kumar, ward boy.
Mr Solomon Mikel, a Kenyan sales agent who has a work experience of 18yrs in
the East African region.
C. Training needs of existing personnel
On the job training by senior executives, no special training required
D. Hiring needs in the short term and long term
No hiring needs for the next 5yrs. Will hire employees if the situation demands
after that.

VIII. Financial decisions

A. Pro forma financial statements and projected cash flows assuming export activity
Pro Forma Income Statement(all figures in lakhs)
Revenue

2016

2017

2018

Gross Sales

400

460

530

Less Allowance/Returns

2.5

Net Sales

398

457.5

527

Goods Purchased

340

390.5

450

Gross Profit

58

67

77

Custom Agent Handler

Commission(approx)

4.5

5.5

Advertising

Total Selling Expenses

11

11.5

12.5

Office salaries

30

33

36

Insurance

Rent

Travel Expenses

Office Supplies

0.5

0.5

0.5

Postage

0.5

0.5

0.5

Cost Of Sales

Operating Expenses
Selling Expenses

Admin Expenses

Interest

Furniture & Equipment

Total Admin Expenses

40

43

47

Total Operating Expenses

51

54.5

59.5

Profit Before tax

12.5

17.5

Government Incentives

Net Income Before Tax

14

20.5

26.5

Net Income After Tax

9.8

14.4

18.5

Pro Forma Balance Sheet(all figures in lakhs)

2016

2017

2018

Cash

50

55

60

Other Current Assets

Assets
Current Assets

Creditors

40

46

53

Long Term Assets

10

10

10

Less Accumulated Depreciation

Total Assets

100

110

121

Creditors

34

39

45

Overdraft

11

12

13

Paid-In Capital

45

45

45

Retained Earnings

10

14

18

Total Liabilities

100

110

121

Long Term Assets

Liabilities
Current Liabilities

Long term liabilities

B. Key assumptions
Product or Service Need
Management Expertise
Adequate Capitalization
Profitability
D. Current sources of funding-private and bank funding
Total Private Equity: 45 lakh rupees
Bank Funding:nil (Initially)
E. Financial needs and future sources of funding

1.General Reserves
2.Pre Shipment/ Post Shipment Finance(As and when needed)
F.Tax consequences of export activity
Exemption from Excise,Vat and other indirect taxes
Expected Incentives from the government 1%-2%
F. Potential risk and sources of protection
Risk: Payment
Protection: All orders will be taken either through advance payment or letter of
credit from a globally recognized bank. Also every order will be insured through
ECGC.
IX. Implementation schedule
Application & receipt of Setting up of
all licenses, certificates office/utilities/furniture
30 days
7 days

Hiring of staff
28 days

Hiring Agent
overseas
21 days

All activities will take place simultaneously. Commencement of business operations will
take place from the 31st day.