BUBBLE SOAP BUSINESS PLAN DASHBOARD (2020-2029)

STRATEGIC PILLARS PROMOTERS PARTNERS PRODUCTS

Vision: To establish a 500kg per hour medium-scale
soap manufacturing business in order to capture a
significant slice of the SME soap market in Uganda,
revered for its quality and affordability.
Mission: To provide safe but exquisite laundry soap
the Ugandan mass market that can be used for
washing, cleaning and bathing.
Budget line US$
1 Land & Buildings 380,000
2 PME 495,000
The project is being promoted by the founders and Jinan Zhonghui
Innovative, penetrative packaging of LBS
owners of Red Concepts that is one of the leading Machinery
SME suppliers of HFO and Diesel to an array of top- Manufacture Co., Ltd.
tier industrial clients. Red Concepts is worth circ. (PME)
US$500,000. The promoters’ interest in diversifying
into soap originates from the disruption that oil Pearl Engineering
production in Uganda will raise. The project will be Company Limited
implemented by Bubble Soap Limited (“BSL”) a (CONSTRUCTION)
100% owned Red Concepts’ subsidiary.
The project promoters are impeccable young women Toyota Uganda Limited
(MOTOR VEHICLES)
entrepreneurs who have been in successful
business for the past nine (9) years as follows:

3 Other fixed assets 140,000 Anna Turumanya Kalumuna (BA Mass Comm., Desbro Trading Kenya
PGDipl. Management): Experience – IMG, Eskom, Limited
4 Cap. Pre-Op expenses 34,500 EAU, GSI. Chairperson – Red Concepts. (39 years (CHEMICALS)
old).
5 Year 1 DSC 35,719
IOI Group Malaysia
Elizabeth Asaba Naiga (BBA., Dipl. Nursing (PALM OIL / KERNEL
6 WCF 245,000 midwifery): Experience – Liberty Health, IAA
Healthcare, IHK. Executive Director – Red
1,330,219
Concepts. (39 years old). NWSC
(WATER)
Equity (34.00%) 450,219
Yasmin Kayitesi (BBA (Finance)): Experience –
Debt (66.00%) 880,000 One2Net, IAA. Finance Director – Red Concepts.
Umeme Limited
(39 years old).
(ELECTRICITY)

MARKETS SALES MANAGEMENT FINANCIALS

Uganda Soap market shares 2019 • At full capacity production of 2,400MTpa (2.4 • The BSL board of directors comprising the • By Year 10 (2029) HAL will be registering:
million 1 KG bars), BSL should be grossing project’s three (3) promoters, a financial Ø A Gross margin of 36%;
Mukwano, US$2.41 million pa. consultant and an experienced soap Ø A Net margin of 11%;
Others, 40% • BSL’s sales will be pushed through the following manufacturer, will determine the company’s Ø An EBITDA margin of 20%;
20% channels: strategy and oversee its implementation by Ø A cash balance of over US$1.91 million;
Ø Distributors; management. Ø Soap Inventories of over US$126,400; and
Ø Supermarkets; • The key management members, making up the Ø An Enterprise Value of US$2.46 million.
TASCO, Ø Wholesalers; and EXCO, will include:
10% Ø Retail outlets. Ø General Manager; • Project NPV = +US$3.28 million, IRR = 36.17%,
• In terms of target geographical percolation, BSL Ø Chief Accountant; ROE of 11%, Pay Back Period of 4.5 years and
will aim for the following sales mix: Ø Factory Engineer; Breakeven in 1 year.
BIDCO, Ø Chief Chemist;
BSL planned sales area mix
30% Ø Marketing Manager; BSL projected financial performance
Ø Head of Security; and 3, 000
Kampala,
• The Ugandan soap market is estimated to have a Rural 35% Ø Administrations Manager. 2, 500
value today of UGX1 trillion (circ US$272 U/C, 45% • The company expects to employ circ. thirty-three 2, 000
million) in terms of local production. Urban (33) employees, costing on average, in 2021,

US$ 000
UGX1.28 million pm (cost of employment). 1, 500
• Since 2012 Uganda’s local soap production has U/C,
grown at an average annual rate of 32.00% pa. 20% • The company will be running two (2) production 1, 000
• Demand for soap in Uganda is growing at an shifts per day, of 8 hours each, from inception. 500
average annual rate of 6.50% pa., being driven by BSL Manpower -
• BSL’s advertising strategy will include radio, TV,
high population growth rates and a growing 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
print media and promotions. Price differentiation (500)
economy. BOD, 5
will be in effect. EXCO, 7 Net prof it Gross prof it Revenues
• Decreasing imports and increasing exports of Factory,
• Upcountry packaging and uniting will be aimed at 18 • Revenue planned to grow at an annual average
soap in Uganda. Support, 8
swift access and penetration. rate of 31% pa.
• BUBU GOU / UN deals will be sought.
0 5 10 15 20

1. EQUITY DEAL: US$300,000 for 25% of the shareholdings of BSL. Expected ROI – 266%.
INVTITATION 2. DEBT DEAL: US$635,000 for 7 years (including 1 year grace period), @ 7.50% interest payable quarterly, secured by mortgage charge on land & buildings, debenture over all
TO TREAT 3.
company assets and existing shareholder personal guarantees. Expected ROI – 28%.
ALL OF THE ABOVE