Executive Summary

In our EPZ sector the production is continuously being challenged as lack power supply by Govt. The situation signs no improvement in near feature. So the productivity of our Export Processing Zone (EPZs) is reducing which is going to affect our economy as well as business. Govt. is seeking for companies who have the infrastructure to supply electricity. The initial steps they have taken are they reduced all the tax of any power plant for the first five year of its establishment. Then the rules and regulations of investment in power plant is investment friendly oriented. We are planning to invest in making a power plant named G Power which will generate electricity that will fulfill the increasing need of electric consumption of companies located in EPZ areas. We are initiating to give electricity to our desired business customers in an eco friendly way (partly) generating electricity from solar panels, coil, and bio gas and in the long run with other alternatives of electricity production in an eco friendly process. After research in our targeted market, we have found that there is a need in the market for more electricity because of high demand but inefficient electric supply from the government. And further government is taking steps to broaden the EPZ areas as well as to expand and open new locations for more EPZ. Further the need for electric consumption in EPZ areas will increase in the future period, because the cost of goods production is increasing in market like China, because of their currency evolution with US dollars and the high demand for increase by the new generation of Chinese workers. So keeping all these opportunities for us to grab a market share in the electric service providing market, we have taken the venture to go into this lucrative segment where we can make profit and as well as help the society in a profitable and eco friendly way. We also located our shirt comings which are, high cost and insufficiency in acquiring raw materials and machines, high initial investment and high cost of running the business, transportation cost and machineries plantation cost. So we can give our focus in overcoming our weakness to manage it to a manageable operating level by increasing our efficiency in our transportation process, effectively acquiring raw materials and decreasing our everyday variable cost. Lastly, we have a goal to fulfill the demand of our business customers with both way profitability for us as well as our targeted customers. We will make a complete research on the profitable margin our desired business customers will gain after taking our service as noting goes ahead of making profits in the business arena, and we will make sure that our business customers will have the surety that they will be advantageous by taking the service from us.

Introduction
The biggest problem that Bangladesh is facing at this time is consistent break down. And the government as ever is not ready to play any role to solve this problem. The economy of Bangladesh is suffering allot due to this problem. The unemployment ratio is climbing high and high. We are here to solve this problem. The bright future is to provide its customer with a new era technology system that is largely used all over the world. We will provide the customers with electricity which have no cost except the initial investment. It will use the natural sun light, coal and bio-gas as its charging instrument. It can be used almost everywhere in Bangladesh.

Mission Statement
To make a strong brand in providing green energy to our targeted customers. To make profit within shirt period of time. To utilize alternative sustainable energy to its maximum efficiency.

Vision Statement
To lead the green power for sustainable of the future planet.

Tag Line
Our Performance is your conformance.

INDUSTRY ANALYSIS

ABELLs Framework
Customer Needs: Our Target market is RMG sector which are situated in various Export Processing Zones (EPZ) in Bangladesh. Their main needs are y Higher and uninterrupted production: For any manufacturing company this is the most basic need. They want to produce as much as possible within their capability. Also they dont like any interruption in their production. But in our country Govt. is unable to give them sufficient power due to lack of power production. Also, Govt. one day off of power supply to every industry due to lacking of electricity. These hamper the EPZs production most. Production Capacity Enhancement: Recently China has launched open market system for its currency Yen. Thats why Yen is appreciating day by day. This means production cost in China is getting higher day by day. In this situation. Investors now look for new and cheaper market. And obviously Bangladesh is one of them as it has brand equity in regard of readymade garments product. Therefore, RMG industry of Bangladesh is expecting much more investment and order. For that they will have to enhance their capacity of production. Sustainability and Eco-friendly way of doing business by the factories in EPZ areas: Every business wants to be a sustainable one in order to get more profit by existing longer period. To be a sustainable business they will have to consider three prongs factors: social, economical and environmental. By doing sustainable development they can meet their present needs without compromising the ability of future generations to meet their own needs. Todays customers are too savvy. They not only search for product which fulfils their need but also the products which dont harm the environment. And in developed countries they value the eco-friendly products mostly due to their social norms. And most of our RMGs clients are from western countries. So factories in our country intend to be the one who is eco-friendly.

Who are being satisfied (Customer group) and how the needs can be fulfilled: y y Our customer group is the companies and industries located in EPZ areas, which have a need for more electric supply. Uninterrupted electricity supply: Continual electricity supply can meet the factorys production need as it is one of the main factors of production in RMG. Assurance of power supply on pick-hour: When any RMG factory is working for an important order they seek for assurance of electricity supply. But the Govt. is unable to

give such kind of assurance and that places the company managers with high risk whether they can meet their order in scheduled time and further we will give back-up power supply to all the companies and industries in the EPZ areas when they have sudden increase in demand in a certain period of year. y Utilization of alternative energy sources: Currently we are using non-renewable energy sources (like fossil fuels, gas, coal etc) to produce electricity. But the whole world has limited amount of non-renewable energy. So its always better that we can utilize the non-renewable energy sources like solar-energy and bio-gas etc.

How Our Company can fulfill the needs differently: y Ensuring the electricity supply: We will guarantee our customers uninterrupted electricity supplies whenever they needed. We will supply them electricity what amount they ask for and which process. Focusing on Alternative Energy Sources: We are going to produce electricity from alternative energy sources (like solar-panel, bio-gas etc). We know its not possible for us to supply all the electricity needed by our customers by the alternative energy sources as they produce a little power. Thats why our initial target is to produce 75% of our energy from regular sources (fossil fuels), 20 % from solar energy and rest of 5% from bio-gas. Eco-friendly Company: We will establish our energy plant as an eco-friendly company as we are using alternatives energy sources instead of burning fuels which is sustainable for the environment. By doing so we will get the ISO 14001 certificate from the International Standardize Corporation. Creating Strong Brand Image: By distributing electricity smoothly to our customers we are going to have positive associative networks in our target consumers minds. And by doing eco-friendly business and getting ISO 14001 we are transforming these associative networks to a strong brand image. This process requires certain amount of mass communication. Our customers will like to buy electricity from us because by doing so they can promote themselves eco-friendly too as they are buying renewable energies. Segmenting Customers: The Bangladesh Export Processing Zone Authority (BEPZA) has categorized three types of investors in the EPZs: Foreign direct investors, Joint-ventures and local investors. These Three types of customers have different needs. So we will differentiate the factories in different categories and offer them different packages to fulfill their different needs. Also all of them dont have the same level of capability to buy unique product/service. So our service to them will be customized rather than standardized.

Abells Framework for Defining the Business

Porters 5 forces
For industry analysis, we used The Porter's 5 Forces tool, which is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helped us to understand both the strength of our current competitive position, and the strength of a position we are looking to move into. With a clear understanding of where power lies, we can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. This makes it an important part our planning toolkit. Conventionally, the tool is used to identify whether new products, services or businesses have the potential to be profitable. However it can be very illuminating when used to understand the balance of power in other situations too. Five Forces Analysis assumes that there are five important forces that determine competitive power in a situation. These are:

 Threat of New Entry These are the threat of new entrant is in our segment of the market: 1. Initial investment is very high Making a Power Plant is a new venture of high magnitude and a huge investment. It takes high time to acquire money of huge investment and long time for making investment plan. Further, we will invest high in research and development focusing our target in doing complete green business, with the alternative energy like solar system, energy from bio gas, wind energy etc. to be sustainable in the long run . So the investment is huge, which can be a discouraging sign for investors. 2. High break-even point The initial investments as well as the daily operating investments will be high at the beginning of the business, so to come to a break-even point will take a long period of time. In one way it is a long term investment. So it is discouraging to many who want to initiate the business. 3. Psychology of our business man (Risk-Averse) - As an individual person we are risk avoiders, we think twice to start a new venture. So it is a huge step to come up with a mind to make a venture of huge investment. 4. We are new in making a power plant with a concept of supplying power in a partially eco friendly way If we see in a positive way we are getting a competitive advantage, but if we turn around we can see there is no one for us to follow. We will make mistakes which we could have avoid if we had a pre determined guide lines. We will have to make decisions with all the risks, which is a serious threat. 5. Tax rebate The government has a tax rebate of 10 years for the construction of a power plant, which is a high incentive for our competitor s to come to the market. If we see from the eyes of investment and break-even point, the threat of new entry is pretty high, but Tax rebate from the government reduces the risk of new entry little in going for a new venture.  Bargaining power of Buyer y The country generates about $5 billion worth of products each year by exporting garment. Two non-market elements have performed a vital function in confirming the garment industry's continual success as well as increasing the buying powers of buyers; these elements are (a) quotas under Multi- Fibre Arrangement1 (MFA) in the North American market and (b) special market entry to European markets. The whole procedure is strongly related with the trend of relocation of production. The transfer of production to Third World has helped the expansion of the garments sectors.

Now to brief, the buyers can be categorized into 3.

1. Foreign Direct Investors- who make full investment to establish a garments factory in Bangladesh. They will surely want power supply in continuous process throughout the day, so we will charge a price of one strategy to these kinds of consumers. 2. Joint-ventures- a way in which a foreign company ventures with a local company to run a business. They will surely need Power Supply when there is inefficiency, so we will make a different pricing chart for them. 3. Locals- the elite persons in our country, who start their own garments. Though there demand will be low, we will charge them by our standard of pricing. Some % of Tax rebate of garments factories located in EPZ- So the garments owners have a higher buying power purchasing of purchasing electricity from our power plant to increase their production as well as the efficiency. The bargaining power of buyers is low, as they have a need for more electric powers in their factories, to meet the demand of the timely summation of goods to foreign buyers within the time limit of the contract and further more foreign investors are coming into the lucrative market of Bangladesh for its cheap labor force, so the demand for more electric power is increased.

 Bargaining power of Supplier y Coal mines - Bangladesh has about 65Tcf equivalent sweet coal [minimum sulfur and almost no ash] in 5 discovered coal mines in the greater Dinajpoor and Rangpoor region. Bangladesh can generate about 20000MW power for 30 years using domestic coal if mined properly. So we will buy coals from these areas. Here is a sample of how we will implement the whole process in one of our area, Barapukuria Coal mine.

We will load the coal on the trucks/vehicle by using mechanized pay loading facility provided at the delivery point by Barapukuria Coal Mining Company Limited. Using of the company's loading facility will cost Taka15.00 (fifteen only) per tonne. We can load coal on the trucks/vehicle by using different facilities provided by other than Barapukuria Coal Mining Company Limited, which may cost approximately Taka 27.00(twenty seven only) per tonne. We will work Saturday to Thursday, and our total cost will be determined by the transportation of the destination we are sending. y Solar panels- we can import solar panels from many countries, like Japan, United States. Germany, the Scandinavian countries, Italy and china and also we will take high measures to produce it locally with our high research and development department.

Energy from bio-gas- we will invest high in buying machineries which can regenerate energy from bio-gas. We will also give incentives to local village people to give the necessary raw products to make the energy.

The suppliers of coil has a high bargaining power because of the no formal law from the government about the pricing of coil, so our suppliers can charge any price from us. For solar panels and energy from bio-gas the supplier bargaining power is low, as for solar panels we will buy from foreign supplier, who have a fixed pricing and raw materials from bio gas we will get from the villages.

 Degree of Rivalry In the market we are in, we dont have any direct competitors but we do have few strong indirect competitors. Rahimafrooze- Rahimafrooze operates in power and energy. It sells batteries, emergency power products, diesel as well as gas generators, lighting products, electrical accessories, solar systems, energy solutions using compressed natural gas, and power rectifiers. Summit Power- Summit Power Limited (SPL) is the first independent power company in the private sector. It generates electricity and sells; the company is also enlisted in the stock market. The competitive rivalry of ours is to a moderate level, because there are several competitors of us, but none of them are producing exactly what we are planning to produce. In addition to that, their target market is different from us.  Threat of Substitution These are some product substitute that may hinder our project implementation of making our power plant 1. 2. 3. 4. Industrial Battery Diesel and Gas Generators IPS Private sector Power Company

The threat is moderate, as we dont have any direct.

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Star Plot of Industry Structure

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PESTLE Analysis
Political:
y Stability: Bangladeshs political instability is one of the major barriers of the business. However recently after the National Election-2009 political situations seems more or less stable as there is less strike and unrest amongst the people. Key Personals: Key personals for doing business in Bangladesh have always been political leaders. They have enormous influence on the system that they can manipulate anything and everything. Even if we are ethical organization we will have to keep good relationship with them so that they wont be against our policy.

Economical
Growth of Economy: Bangladeshs economy is very strong. Even though, most of the western country are facing recession; Bangladeshs GDP is constantly increasing which economists called as Bangladesh Paradox. At present Bangladesh rank is 48. Statistics GDP $228.4 billion (2008 est. PPP). GDP growth 5.6% (2009 est.) GDP per capita $1500 (2008 est. PPP) GDP by sector Agriculture (19%), industry (28.7%), services (53.7%) (2007 est.) Inflation (CPI) 5.4% (2008 est.) Population below poverty line 36% (2009 est.) Labor force 70.86 million (2008 est.) Labor force by occupation Agriculture (45%), industry (30%), services (25%) (2008 est.) Unemployment 2.4% (2008) Main industries textiles, jute, shipbuilding, telecommunications, tea, ceramics, pharmaceuticals, food processing, cement, fertilizer, paper newsprint, chemicals, construction materials, transport.

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Shifting of occupation: Slowly but steadily Bangladeshs economy is moving towards industry from the agriculture. And most of the contribution goes to the garments industry of our country.

Technological
Infrastructure: Although the technological infrastructure of our country is not satisfactory we have enough scope to build the infrastructure as the Govt. is giving incentives for doing so. Techno-friendliness: Usually Bangladeshi people are not techno-friendly. But recently due to high demand of job many people are getting used to the technology. Also with this huge population its easy to find out many specialists in this sector. Education: Education regarding technology is increasing day by day. Graduates from the technical sectors are enhancing year after year. These reflect that our country has enough number of technical expertises. Talented engineers graduated from BUET, IUT, MIST, DU, KUET can employed in our company and these talents can give us superior service quality.

LEGAL
 Tax Rebate: Company investing and producing power will get the tax rebate fully up to 5 years according to the law of Bangladesh. This actually has done to encourage the investors to invest in power plant.

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 Rule and Regulation: On one hand, rules and regulations of Bangladesh are not that much of investment friendly in some sectors (like telecom operator). On the other hand, rules and regulations are investment oriented in other sectors like agriculture and power plant.

Environmental
Global-warming: Global-warming issue gives us the potentiality to focus on eco friendly business. Because we are the one who will be affected most by the globalwarming so if we can show to the world that we ourselves affect less Ozone-layer destruction we will get the media attention of the world. Copenhagen Conference 2009: In the Copenhagen Conference for global warming we have successfully created an image of Bangladesh regarding the result of globalwarming. So now we can get the sympathy from the developed world by this. And our business will show them that although we are getting affected by global warming but its not we rather its who are responsible for this.

Diagram of PESTLE Analysis

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SWOT Analysis
Strength
 Capital The capital which is needed for initial investment and running the business is high at the beginning of our venture in the business, and it a strong strength of us that we have enough capital to run the business without any shortage of money.  Work force We will be focusing on recruiting highly knowledgeable and experienced work force to work in our Power Plant. They will be highly qualified in their respective segments they will be working on.  Strong Research and Development We will be focusing on investing on high on R & D department. They will be focusing on innovating and improving new ways to create electricity in an eco friendly way, for sustainability in the longer run.  Low environment hazardous gas emission As the trend of world is changing to create sustainable eco friendly energy, we are creating energy from solar, bio gas, and coil( which will be highly refined to emit least carbon), we will have a strong brand image in the eye of our consumers and the government who is prompting highly for sustainable energy.

Weakness
High cost and insufficiency in acquiring raw materials and machineries the cost of acquiring solar panels and coal is high and the raw materials for making bio gas in insufficient. High initial investment and high cost of running the business- Which indicates the business is of ling term investment and to come to break even we to wait for approximately 4 to 5 years. Transportation Cost and machineries plantation cost The cost will be high because of big machineries to be transported and planting machineries in right places will be a costly task. Long time To complete the whole project of building a Power Plant is a long time acquiring project, which need meticulous engineering and time frame to complete. Limitations of land space Building a Power Plant need huge land space at once, which will be a tough job to acquire in our country. (M Golam Robbani, 1999)

Opportunities
y Tax Rebate Government has taken initiation of tax rebate of first 10 years to venturing into making Power Plant. This is a high initiation for us to run the business for 10 years

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y y

y y

without taxation, and build a strong platform to run the business years ahead when the tax will be imposed. Cheap Labor - We have the advantage to get cheap labors for doing menial jobs as Bangladesh has high labor force. Latitude Advantage Our country is positioned in such a way in the globe that we get high degree of sunlight at day time which increases our capacity to store high solar energy at day time and increase our energy capacity. Government is pro Indian This will help us to import coal from India in easy route without much hassle from government of both countries. High future increase in demand for electricity We can estimate that there will be high demand for electricity in near future, as the labor cost in Chinese market is increasing because of the Chinese currency evaluation with U.S.A dollars and the garments of our country will have more export contracts from buyers, so to fulfill the demand they will need more electricity. Electricity Shortage Our government is inefficient in providing enough electricity to fulfill the whole demand in the market for the electricity in the EPZ areas, so there is always shortage and we can be the alternative source to fulfill the demand for the electricity.

Threat
 Political Situation of our country The situation is mostly instable. We face the problems of Hartals which stoppage the whole market segments of ours, and then we can also be threatened by abrupt changes of rules and regulations of our country which can go against our benefits.  Entry of Competitors The initial investment of entry is very high, this will discourage many investors. But many will be motivated to enter because of government tax rebate or because of less competition.  Tax of import of Coal We can be threatening if the government imposes higher tax in the import of Coal in the future.  Dhaka Electricity Supply Company limited (DESCO) plans DESCO has plans to import electricity from India, which will increase the electric capacity of our country, and this may hamper our business if DESCO supply the electricity in lower costs than ours.  Weather The change in weather system will be a strong factor in acquiring energy. If the weather is gloomy we get less solar energy, which can reduce our energy storing capacity. (Mustafa K. Mujeri, 2008)

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Table of SWOT Analysis

Strengths
    Capital Work force Strong Research and Development Low environment hazardous gas emission

Opportunities
Tax Rebate Cheap Labor Latitude Advantage Government is pro Indian High future increase in demand for electricity Electricity Shortage

S O W T
Weaknesses Threats
High cost and insufficiency in acquiring raw materials and machineries High initial investment and high cost of running the business Transportation Cost and machineries plantation cost Long time Limitations of land space Political Situation of our country Entry of Competitors Tax of import of Coal Dhaka Electricity Supply Company limited (DESCO) plans Weather

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PRODUCTION PLAN

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will be responsible for all of the manufacturing operation solely. That means there will not be any subcontracts in case of production. Space: We will need 50 acres of area for our whole plant.

Production Process: Coal Power-Station: We are going to establish a power station based on coal. As raw materials we will import coal from Raniganj coal mine, West Bengal, India. It will supply us 70% of electricity that we want to produce. The stream of this power station will be supplied to the drying factories of DEPZ and the brick burners of the neighbor localities. This will reduce the carbon emission Solar Panel: We are going to rent unused agricultural land of farmers to set our solar plates temporarily. These sheds are moveable as wheel will be adjusted with these. The electricity produced by these sheds will be transferred to our main power grid. Bio-gas chamber: We are going to set lateens at the house of villagers totally free under our CSR program and make contract with them so that we can get the collected organic wastages from these lateens. We will use those wastages to our bio-gas chamber to produce gas. Therefore there will be a gaschamber in our main production plant. This gas will be used to rotate the turbine in our central production plant. And by doing so we can reduce our demand of coal as raw-materials and hence reduce the cost associated with it. Main Power Grid: In power grid area of our plant we will combine all the electricity that we are going to produce from our three different stations. Then we will need to set up the volt of our main grid. We can offer different volt to our customers as different industries need different volts of electricity. Then we will supply this electricity to the DEPZ by 3.5 diameter metal wire.

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Machinery and Equipment: Coal-power Station: The buildings and equipment those are needed for our coal-fired thermal power station are: 1. Cooling Tower 2. Cooling Water Pump 3. Transmission Line 4. Unit Transformer 5. Electric Generator 6. Low Pressure Turbine 7. Boiler Feed Pump 8. Condenser 9. Intermediate Pressure Turbine 10. Steam Governor Valve 11. High-Pressure Turbine 12. Deaerator 13. Feed Heater 14. Coal Conveyor 15. Coal Hopper 16. Pulverized fuel mill 17. Boiler drum 18. Ash hopper 19. Superheater 20. Forced draught fan 21. Re-heater 22. Air intake 23. Economizer 24. Air Pre-heater 25. Precipitator 26. Induced draught fan 27. Chimney Stack Solar Power Station: For the initial stage of , we need most of the solar equipments and machineries. These will be our long term investment as solar equipments have average life time of 30 years. We will have to buy solar power machines and shads to produce electricity.

Solar Power Machines Required Producer Sharp BP Solar SunWize Model (Quantity) Sharp224(10) SX3220M(15) SW180 (25) Watt 224 220 180 Volt 29.28 36.6 29.0 Weight 7.66 4.92 7.6 Price $715 $520 $632 Cost $7150 $7800 $15800

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Bio-gas chamber: Here in our bio-gas chamber we are producing bio-gas which will help to rotate the turbine and thus produce electricity. For that we need to establish Apart from that in future when we will be able to assemble more organic dusts from the villages we will buy a gas turbine which itself will produce electricity from the methane gas (CH4) of the gas chamber.

For the gas generator we need: y Compressor y Re-generator y Combustion chamber y Gas Turbine y Alternator y Starting motor Main Grid: Equipments: DC/AC converter Volt Converter Transmitter

Raw Materials: Coal, Oil, Organic Dust, Metal Wires, Metals, Wheels for solar sheds, Water, Air etc. Suppliers: Coal Supplier: Himadri Chemicals and Industries Ltd. Address: 8Th Floor, 23A Netaji Subhas Road, Kolkata - 700001. West Bengal, India Solar Generator Supplier: 1. BP Solar - UK Chertsey Road Sunbury on Thames Middlesex TW16 7XA United Kingdom 2. Sharp Electronics (UK) Ltd 4 Furzeground Way Stockley Park Stockley Park Uxbridge UB11 1EZ Cost of Manufacturing: Future Capital Equipment: In future we are expecting to invest more on Research & Development (R&D), so that we can produce more electricity from alternative energy sources. We will invest on windmill to produce electricity from the air. Therefore to establish windmill we need fund also lad in hill-track arena.

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Physical Plant Layout

VILLAGE -1

VILLAGE -2

VILLAGE -3

VILLAGE -4

SOLAR

POWER GRID

BIOGAS
COAL

DEPZ
HIGH WAY

S U B W A Y

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Location Map

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MARKETING PLAN

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Target Market Factories in DEPZ which require electricity (as they have demand for foreign orders but couldnt produce at their level best due to lack of electricity) to produce and who are the key player of the industry.

Consumer Insight Our target market is the big industries in RMG sector. So we have targeted towards business people. The psychology of these business people is more rational than the regular customer. They will seek for the benefits they will get from our services. After getting our proposal they will take some time for their cost-benefit analysis. They will analyze whether our service is worth to them or not, will their cost be paid off? This is the single most questions that will play into their mind. So we have to show them the benefits they will get by using our service in a business point of view and that are maximizing profit. Sales Forecast for next Three Years Sales Forecast Sales 2011 Q1 Big Companies(Bulk Buyer) 1285600 Small Companies 3214000 Total Sales Direct Cost of Sales Recreational Competitive Subtotal Direct Cost of Sales

2011 Q2

2011 Q3

2011 Q4

2011

2012

2013

77136000 462816000 2776896000 1190369180 3437919380 127099230.8

19284000 115704000 694224000 297592295 859479845 1681946494 96420000 16070000 578520000 3471120000 1487961475 4297399225 16946564170 2011 Q2 2011 Q3 2011 Q4 2011 2012 2013 8312636440 3562558470

2011 Q1 722748205

43364895 260189370 1561136220 1871917968 2105725620 11509830 669058380 802250557 902453838

3097459205 18584955 10324975

61949850 371699100 2230194600 2674168525 3008179458 11875194919

Product Offering Our company G_Power is going to provide electricity to different factories of DEPZ at customized rate. Basically it is in other sense utility service to our customer. Our very first service will be providing 100 Megawatt electricity at the voltage of 10 Ohm to our clients. We will differentiate our service on the basis of time. Our Govt. organization DESA, DESCO cant produce electricity to our customers seven days a week. Thats why every factory has to be close

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for one day in a week although they are capable of running them. So some of our customer will be those, who want to utilize this one day every week. So they will have to buy electricity from us at a higher price. This will give them competitive advantages. In addition to that we will have another type of customer who will in need of high electricity when they will get high amount order and need higher production. They will come to us as they dont want to lose their important orders from their buyers.

Positioning We will promote our company G-Power to our consumers mind as Our Performance is Your Conformance. By that we mean that our customers consistent success in their business field is depended on our performance. We will promote our company as a reliable and continues electricity supplier.

Strategies To get sustainable growth of our company need both short-term sales and long-term brand equity. We will get those by adopting push and pull strategy simultaneously.  Push Strategy: It is effective for short-term selling. In our case we can give incentives like discounts for bulk buyers, special rate for regular customers, customer card on the basis of previous transactions, sale off during winter as the lacking of electricity seems to be lower then. These activities will make our service attractive to our customer for shortterm and we will generate initial profit from this.  Pull Strategy: It is effective for long-term brand building. Our regular PR activities print and TV advertising will be based on the importance on green Bangladesh and Green business. This will create positive associative networks towards peoples mind regarding our brand G_Power. With time, these positive associative networks will become brand equity.

Marketing Mix G_Powers marketing mix is comprised of the following approaches to pricing, distribution, advertising, promotion, and customer service. y Pricing: Pricing will be different for our different packages. The companies who will order for our electricity before four months hand will get 5 % discounts. On the other hand the companies who will order for our service before only one month ahead of time will have to pay 7.5% premium for their urgent service. y Distribution: Initially we will start our business from DEPZ. Latterly, we will go the rest of seven EPZs of Bangladesh. y Promotion: We will create an Integrated Marketing Communication (IMC) campaign for next three years which we will discuss later.

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y Customer Service: As our produce is a utility service so the customer service quality is vital. So we will strive to achieve benchmarked levels of customer care. IMC Campaign Our IMC campaign will be consisting of all sorts of communication mix to utilize the diversity of all medium of communication.  Advertisement: As our target market is the business people we will launch print ads to those newspaper and magazines those they read occasionally. For example, The Daily Star, Prothom Alo, Kaler Kontho- we will give ads on the 10 inch colorful ad first page and last page of these newspapers. We will also give blackwhite ads in the business page of those newspapers. In addition to that we will also provide our print ads to create awareness.  Direct marketing: As our business is the B2B business we will directly communicate with our customers through email, telephone etc. We will recruit some marketer who will have good persuasive communication skills. We will send them to our potential customers office. They will carry on seminars their and expose the concealed needs of our customers.  Public Relation: Public Relation plays the most vital communication roles in any B2B business. For our public relation we will recruit very high efficient liaison officer with high salary. They will create and maintain good relationship with the corporate. We will not depending solely on those liaison officers but also our CEO and Marketing head will have direct, one-to-one communication with the corporate. There will be different group in the public relation department whose responsibility is to maintain relationship with the media as in todays world we all know the power of media. Our public relation department will be filled by very high efficient employees whose persuasive ability has to be excellent. To the mass people our branding strategy will be we are in a green business, so we are against global-warming and our business is making the world green again.  Sponsorship: We will be sponsoring different events relating to our business. For example we will be title sponsor of Dhaka International Environmental Fair 2011, 2012, Dhaka Tree Fair, Energy Consumption Seminars etc. By sponsoring these events we will get media attention without any extra cost.

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OPERATIONAL PLAN

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Production Process The three prongs of our electricity sources will work simultaneously and produce enough electricity to supply to our customers. The solar energy will be effective only on day time whilst the other two-bio-gas source and coal is available all the time. The solar energy is most powerful when the sun rays is on 70-90 degree it the solar panel. Our panels will be re-adjustable with the time. We need an employee there who will re-adjust the degree of the solar panel in every two hours. In this way we can get efficiency. In addition to that we will produce most of our electricity from our coal plant. It will operate during 9-5 everyday. In this plant our production will vary with the orders we will get from our customers. In the coal plant the coal will be burn and the steam of the coal will be responsible to rotate the magnified turbine of the plant. This rotation of electrified turbine will produce electricity. In our bio-gas plant we will produce methane gas from our human dust which we will collect from the sanitary toilets we have set up to the villagers. We will sell 40% this methane gas to our customer as they have also problem with the gas supply from TITAS Gas Co. the rest of the gas will use as steam air for the coal plant along with hot coal air.

Raw Materials Required Coal: We need coal at most for our production as 70% of our electricity is producing from this coal. We will have contract to two large and fifteen small coal suppliers to get continuous supply of coal to our factory. Organic Dust: we will need organic dust for our bio-gas plant. We will collect these organic dusts from the sanitary toilets that we already have established in nearby villages. Chemicals: We need 12 different chemicals for our coal plant. These chemicals will used to burn up the coals. In addition to that we need twenty different chemicals including nitric acid, sulphoric acid, potassium nitrate and potassium permanganate. Most of these chemicals wil be used for mutate the organic chemicals.

Labor We will need 300 direct labors in our coal plant. They will be categorized in three classes. One classs responsibility is to transfer the coal from the storage to the main plant, where another group will be assigned to mix chemicals to the coal-burner. At the meantime the last group will be assign to remove the wastage of these coals efficiently. In our bio-gas plant we only 75 labors, from which 35 of them will collect organic wastages from nearby villages. Rest of them will be assigned to maintenance of the gas-chamber. We will need

29

the least labor for our solar panels. Their only job is to maintain the panels from stealing and any damage by rainy weather and re-adjust the panels according to sunrays timely.

Transportation of Raw Material We will subcontract with Wings Transportation Ltd. for our raw materials transportation to our factory. Basically they will bring the coal from our main coal supplier Himadri Chemicals and Industries Ltd. to our site.

Inventory We will build storage for our stock of coal. Our minimum balance which we must have in our storage for a particular month is 20% of the raw materials required to produce electricity for that particular month.

30

ORGANIZATIONAL PLAN

31

will be established as a partnership. This company consists of four partners who act as Board of Director. Among them one of the Board of Directors holds 28% ownership of the company and rest of the portion (72%) divided among others as because one of the BOGS must have checking-sign authority or control over the company. Top Management Team and Their Background: Top management team of Green Power consists of Board of Directors, Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Corporate Officer (CCO), Chief Financial Officer (CFO) and General Manager of different departments. Chief Executive Officer (CEO) will be recruited either among from the Board of Directors or outside of the company. If CEO will be outsider, he/she will have a MBA from any reputed university in abroad (Preferable North American degree holder). He will also have 10-plus years in successful experiences, at least 4 years as CEO in the power plant sector. Chief Operating Officer (COO) will have a MBA from any recognized university or bachelor degree in Electrical/Mechanical/Civil from any reputed institution (Preferable North American degree holder) and will also have 7 to 10 years successful experiences regarding power plant sector. Chief Corporate Officer (CCO) who a MBA degree major in Marketing from any reputed university in Bangladesh or abroad. He will also have 5 to 8 years successful experiences regarding corporate sector. Chief Financial Officer (CFO) will have Chartered Accountant or MBA in Finance & Accounting with good records in any reputed university in abroad and about 10 years of experience in banking or financial institutions having strong management assurance dept of which at least 5 year worked as Head of Internal Audit. General Manager in Production, Maintenance and Technical Services departments have a graduation degree regarding in science background and General Manager in Admin and General Services, HR, Commercial and Procurement departments have a BBA degree in any reputed university. Seven general managers will be required in the required departments. Other Management Team and Their Background: Other management team consists of middle level and lower level management. Most of the middle level management like- Deputy Manager and Assistant Manager. They will have a graduate degree from reputed university. Of them, Production, Maintenance and Technical Services departments employees will have science background and rest of the employees have a BBA degree. Lower level management is such as supervisor, foremen and floor in charge. They will have graduation degree and experiences regarding power industries.

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Duties and Responsibilities of the Top Management Team Managing Directors: Board of Directors has the right to recruit CEO, COO, CFO and CCO. They are the ultimate authority to take any kinds of decisions regarding the organization. They also have VATO power against CEOs decision. Chief Executive Officer (CEO): CEO will have to perform some activities, like Directs and executes all activities of the organization either directly or through delegated authority;  Provides leadership in the areas: the creation of strategic, tactical, and financial plans; developing goals and measuring performance to the approved goals; organizational development; liaison to the public, government, affiliated organizations, and the development of the association's staff;  Ensures that an annual plan and budget are prepared for and presented to the managing directors;  Hires, rewards, disciplines, terminates, and sets the remuneration of, all organizations employees under him/her, except for him/herself, in accordance with policy and/or approved budgets;  Acts as the spokesperson for the organization. Chief Operating Officer (COO): Chief Operating Officer will have some duties and responsibilities such asProvide inspirational people leadership for the Management & Employees; Integrate people through vision, mission, values and organizational structure; Manage day to day operations through effective action oriented approach; Ability to build Managers, domain competencies and unleash innovation; Ability to build a trust based relationship with the CEO; Ability to collaborate with a Founder CEO if CEO is Founder.

Chief Corporate Officer (CCO): Main duties and responsibilities of Chief Corporate Officer will deal with corporate affairs such as maintaining liaison with Government and public affairs. By Human resources department, he will recruit employees, provide training to employees for greater productivity and so on. By Commercial department, he will deal sales and marketing sides and by Procurement departments, he deals with foreign purchasing, local purchasing, import logistics and warehouse.

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Chief Financial Officer (CFO): The Chief Financial Officer is required to furnish necessary and classified information to the board of directors along with his analysis and suggestions as the Chief Financial Officer attends the board meetings, any issue with financial implications is being discussed, the person likely to be most in command of these implication is on the spot and immediately available for questions. In order to strengthen and formalize corporate decision-making process, significant issues are required to be placed for the information, consideration and decision of the boards of directors by the CFO. These are:  Annual business planes, cash flow projection, forecasts and long term planes;  Budgets include capital, manpower and overhead budgets along with variance analyses;  Quarterly operating results of the company as a whole and in terms of its operating divisions or business segments;  Details of joint ventures or collaboration agreements or agreements with distributors, agents, etc;  Default in payment of principal and/or interest, including penalties on late payments and other dues, to a creditor, bank or financial institution, or default in payment of public deposit;  Failure to recover material amounts of loans, advances, and deposits made by the company, including trade debts and inter-corporate finances;  Significant public or product liability claims likely to be made against the company, including any adverse judgment or order made on the conduct of the company. Accordingly, responsibilities towards shareholders, The Chief Financial Officer is required to provide all the necessary data to be presented in the Directors Report. For this purpose Chief Financial Officer must ensure the following. y The financial statement, prepared by the management of company, present fairly its states of affairs, the results of its operation, cash flows and changes in equities; y Proper books of accounts of the company have been maintained; y Appropriate accounting policies have been consistently applied in preparation in financial statements and accounting estimates are based on reasonable and prudent judgment; y International accounting standards, as applicable in Bangladesh, have been followed in preparation of financial statements and any departure there from has been adequately disclosed; y The system of internal control is sound in design and has been effectively implemented and monitored; y There are no significant doubts upon the companies ability to continue as going concern; Moreover, Chief Financial Officer now has extensive responsibilities for internal and external reporting. All the information required for decision-making by the Board of Directors and Chief Executive is processed and furnished by the Chief Financial Officer. Apart from this, external

34

reporting requirement is fulfilled by Chief Financial Officer, the accounts and financial statements are signed by the Chief Financial Officer before they are sent to concerned authorities General Managers: Each of General Managers will hold individual department and their Duties and responsibilities is formulating policies, managing daily operations, and planning the use of materials and human resources, but are too diverse and general in nature to be classified in any one functional area of management or administration, such as personnel, purchasing, or administrative services. Duties and Responsibilities of Other Management Team: Middle level management deals with task of implementing the policies and plans formulated by the top level. It comprises of departmental heads and other executive officers who will lead the group of workers to the planned targets and provide them with necessary resources in order to get the job done. This group is responsible for the execution and interpretation of policies throughout the organization and for the successful operations assigned to the division or departments. In this level the managers have to plan the operations, issue instructions laid by the top management, collect the resources required and control the work of the men. Managers are responsible for leading all the function within each department; they provide the guidance and structure for a purposeful enterprise. Functions to be performed in the middle level management arey Follow the rules and policies formulated by the top management; y Motivating personnel for higher productivity; y Collecting detailed analysis report of the department and the personnels; y Mutual understanding with other departments in the enterprise; y Recommendations to top management. The lower level in the organization foreman, supervisor executives will be assisted by number of workers carry out the process to be done as per schedule. Their authority and responsibility in the organization will be very much less compared to other workers. They will have to follow the rules and guidelines made out by the higher authorities of the organization. The importance of the functions in this level cannot be overlooked. The quality and quantity of the work done will depend upon the performances of the workers in this level how hard they work to attain their goals. The supervisors in this level will have to maintain standards of the quality of the manufactured product assign duties to the workers as per plan and schedules given by the top and middle level management. They will also responsible for maintaining respect, discipline among themselves and increase the spirit of work among the workers.

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Salaries and Facilities: Chief Executive Officer (CEO): Basic Salary of Tk. 2,00,000 monthly Two festival bonuses Profit Share of 3%-5% Twenty days on-paid leave(yearly) Travel Program once in a year with family members at Malaysia Medical Allowances Dhaka Golf Club Membership Golds Gym Member Ship Card Entertainment Allowance of Tk. 150000 per year Full-time Automobile ( Toyota Allion 2009) Full- free accommodation at Ghulshan/Banani Health Care allowances for family members ( 20% of basic salary) Half of education expense of children Chief Operating Officer (COO), Chief Corporate Officer (CCO), Chief Financial Officer (CFO):  Basic Salary of Tk. 1, 20,000 monthly  Two festival bonuses  Fifteen days on-paid leave(yearly)  Travel Program once in a year with family members at Malaysia  Medical Allowances  Entertainment Allowance of Tk. 100000 per year  Full-time Automobile ( Toyota Allion 2009)  Rental Allowances ( 60% of the basic salary) General Managers:  Basic Salary 50,000 monthly  Transportation Allowances (25% of the basic salary)  Two weeks on-paid vacation  Medical Allowance  Rental Allowances (40% of the Basic Salary)  Fieldtrips  Travel allowances with family for 3 days and 3 night s at Coxs bazaar Middle level Managers: y Basic Salary 20,000 monthly y Transportation Allowances (25% of the basic salary) y Two weeks on-paid vacation y Medical Allowance y Accommodation Allowances (40 % of the basic salary)

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Junior Manager: Basic Salary 10,000 monthly Transportation Allowances ( Tk. 3600 per months)

ORGANIZATION STRUCTURE

37

FINANCIAL PLAN

38

Underlying Assumptions  Solar Energy Farm, Inc. will have an annual revenue growth rate of 3%-5% per year.  The Owner will solicit Tk 3,000,000,000 of equity funds to develop the business.  The Company will invest 25% of its after-tax profits back into the Companys operating infrastructure. Sensitivity Analysis The Companys revenues are moderately sensitive to changes in the general economy. Produced electricity is comparatively priced with their petroleum/coal based counterparts, and in the event that prices decline, the company may see a reduction in its revenues. Only in the event of a steep drop in the price of petrol based energy products does management anticipate that the company will have issues regarding top line income. PRO FORMA Sources and Applications of Funds

Sources of Funds Personal funds of founders Net income (Loss) from operations ADD: Depreciation Total funds Provided Application of Funds Purchase of equipments Inventory Total funds expended Net increase in working capital

3,000,000,000 (1,845,880,000) 58,200,000 1,212,320,000

500,000,000 101,200,000 601,200,000 611,120,000 1,212,320,000

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Projected Startup Costs

Initial Lease Payments & Deposits Working Capital Personal Properties Opening Supplies Company Vehicles & Lease Deposits Marketing Budget Miscellaneous unforeseen Costs Total Startup Costs

50,000 400,000,000 750,000 101,200,000 80,000,000 1,000,000 250,000,000 833,000,000

Projected Startup Cost

0% Initial Lease Payments & Deposits Working Capital 30% Personal Properties 48% Opening Supplies 0% 10% 12% 0% Company Vehicles & Lease Deposits Marketing Budget

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PRO FORMA BALANCE SHEET

PRO FORMA BALANCE SHEET

Part-1
Year-1 Year-2 Year-3 Year-4 Year-5

ASSETS Current Assets: Cash in Bank Inventory Accounts Receivable Total Current Assets Fixed Assets: Land Buildings Less Depreciation Net Land & Buildings Equipment Less Depreciation Net Equipment Total Fixed Assets TOTAL ASSETS
315,000,000 101,200,000 2,455,000,000 2,871,200,000 826,969,000 609,331,290 1,100,737,660 2,537,037,950 1,304,561,963 665,942,280 880,590,128 2,851,094,371 1,948,603,909 809,006,176 704,472,102 3,462,082,187 2,835,893,813 973,366,840 634,024,892 4,443,285,545

800,000,000 215,000,000 550,000 1,014,450,000 500,000,000 19,770,000 480,230,000 1,494,680,000 4,365,880,000

800,000,000 215,000,000 550,000 1,014,450,000 500,000,000 19,770,000 480,230,000 1,494,680,000 4,031,717,950

800,000,000 215,000,000 550,000 1,014,450,000 580,000,000 19,770,000 560,230,000 1,574,680,000 4,425,774,371

800,000,000 215,000,000 550,000 1,014,450,000 580,000,000 19,770,000 560,230,000 1,574,680,000 5,036,762,187

800,000,000 215,000,000 550,000 1,014,450,000 580,000,000 19,770,000 560,230,000 1,574,680,000 6,017,965,545

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Part-2
Year-1 Year-2 Year-3 Year-4 Year-5

LIABILITIES Current Liabilities: Accounts Payable Interest Payable Total Current Liabilities Long-Term Liabilities: Long-Term Loans Mortgage Total Long-Term Liabilities TOTAL LIABILITIES

520,000,000 0 520,000,000

976,489,200 0 976,489,200

1,432,978,400 1,719,574,080 2,063,488,896 0 0 0 1,432,978,400 1,719,574,080 2,063,488,896

1,400,000,000 1,400,000,000 1,400,000,000 1,400,000,000 1,400,000,000 600,000,000 500,000,000 100,000,000 80,000,000 60,000,000 2,000,000,000 1,900,000,000 1,500,000,000 1,480,000,000 1,460,000,000 2,520,000,000 2,876,489,200 2,932,978,400 3,199,574,080 3,523,488,896

Year-1

Year-2

Year-3

Year-4

Year-5

EQUITY Capital At the Beginning of the Year Investment Net Income/ Loss Drawings Capital at the End of the Year TOTAL EQUITY LIABILITIES AND EQUITY

3,091,760,000 1,845,880,000 1,155,228,750 1,492,795,971 1,837,188,107 600,000,000 0 0 0 0 1,845,880,000 -690,651,250 337,567,221 344,392,137 657,288,541 0 0 0 0 0 1,845,880,000 1,155,228,750 1,492,795,971 1,837,188,107 2,494,476,649 1,845,880,000 1,155,228,750 1,492,795,971 1,837,188,107 2,494,476,649

4,365,880,000 4,031,717,950 4,425,774,371 5,036,762,187 6,017,965,545

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Pro Forma Balance Sheet

8,000,000,000 6,000,000,000 4,000,000,000 2,000,000,000 0 1 TOTAL ASSETS 2 3 4 TOTAL EQUITY 5

TOTAL LIABILITIES

Pro Forma Income Statement

PRO FORMA INCOME STATEMENT OF YEAR-1 Year-1 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total

Sales Cost Of Goods Sold Gross Income Operating Expenses: Salaries and Wages Rent Expenses Storage Advertising & Mkt Expense Utilities Expenses Depreciation Expenses Miscellaneous Expenses Travel and Vehicle Costs Professional Fees and Licensure Total Operating Expenses EBIT Interest (14%) EBT Taxes Net Profit

16,070,000 11,249,000 4,821,000

96,420,000 67,494,000 28,926,000

578,520,000 404,964,000 173,556,000

867,780,000 607,446,000 260,334,000

1,558,790,000 1,091,153,000 467,637,000

2,000,000 1,500,000 300,000 2,500,000 6,500,000 14,550,000 250,000,000 1,200,000 1,500,000 280,050,000 -275,229,000 -38,532,060 -236,696,940 0 -110,528,000

2,000,000 1,500,000 350,000 2,000,000 6,500,000 14,550,000 250,000,000 1,200,000 2,250,000 280,350,000 -251,424,000 -35,199,360 -216,224,640 0 -313,799,600

2,000,000 1,500,000 350,000 2,000,000 6,500,000 14,550,000 250,000,000 1,200,000 3,375,000 281,475,000 -107,919,000 -15,108,660 -92,810,340 0 -147,670,400

2,000,000 1,500,000 350,000 1,500,000 6,500,000 14,550,000 250,000,000 1,200,000 5,062,500 282,662,500 -22,328,500 -3,125,990 -19,202,510 0 -276,882,000

8,000,000 6,000,000 1,350,000 8,000,000 26,000,000 58,200,000 1,000,000,000 4,800,000 12,187,500 1,124,537,500 -656,900,500 -91,966,070 -564,934,430 0 1,845,880,000

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PRO FORMA INCOME STATEMENT OF YEAR-2 Year-2 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total

Sales Cost Of Goods Sold Gross Income Operating Expenses: Salaries and Wages Rent Expenses Storage Advertising & Mkt Expense Utilities Expenses Depreciation Expenses Miscellaneous Expenses Travel and Vehicle Costs Professional Fees and Licensure Total Operating Expenses EBIT Interest (14%) EBT Taxes Net Profit

17,194,900 12,036,430 5,158,470

103,169,400 72,218,580 30,950,820

619,016,400 433,311,480 185,704,920

928,524,600 649,967,220 278,557,380

1,591,288,361 1,167,533,710 423,754,651

6,000,000 1,500,000 3,900,000 1,000,000 6,500,000 14,550,000 250,000,000 12,000,000 7,593,750 303,043,750 -297,885,280 -41,703,939 -256,181,341 0 -256,181,341

6,000,000 1,500,000 350,000 1,000,000 6,500,000 14,550,000 250,000,000 1,000,000 18,281,250 299,181,250 -268,230,430 -37,552,260 -230,678,170 0 -230,678,170

18,000,000 1,500,000 350,000 1,000,000 6,500,000 14,550,000 250,000,000 1,000,000 11,390,625 304,290,625 -118,585,705 -16,601,999 -101,983,706 0 -101,983,706

18,000,000 1,500,000 350,000 1,000,000 6,500,000 14,550,000 250,000,000 1,000,000 27,421,875 320,321,875 -41,764,495 -5,847,029 -35,917,466 0 -35,917,466

48,000,000 6,000,000 4,950,000 4,000,000 26,000,000 58,200,000 1,000,000,000 15,000,000 64,687,500 1,226,837,500 -803,082,849 -112,431,599 -690,651,250 0 -690,651,250

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PRO FORMA INCOME STATEMENT OF YEAR-3 Year-3 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total

Sales Cost Of Goods Sold Gross Income Operating Expenses: Salaries and Wages Rent Expenses Storage Advertising & Mkt Expense Utilities Expenses Depreciation Expenses Miscellaneous Expenses Travel and Vehicle Costs Professional Fees and Licensure Total Operating Expenses EBIT Interest (14%) EBT Taxes Net Profit

993,521,322 695,464,925 298,056,397

1,702,678,546 1,191,874,982 510,803,564

1,821,866,045 1,275,306,231 546,559,813

1,949,396,668 1,364,577,667 584,819,000

6,467,462,580 4,527,223,806 1,940,238,774

36,000,000 500,000 300,000 1,000,000 6,500,000 14,550,000 250,000,000 1,500,000 32,906,250 343,256,250 -45,199,853 -6,327,979 -38,871,874 0 -38,871,874

36,000,000 500,000 350,000 1,000,000 6,500,000 14,550,000 250,000,000 1,500,000 77,625,000 388,025,000 122,778,564 17,188,999 105,589,565 0 105,589,565

54,000,000 500,000 350,000 1,000,000 6,500,000 14,550,000 250,000,000 1,500,000 39,487,500 367,887,500 178,672,313 25,014,124 153,658,189 0 153,658,189

81,000,000 500,000 350,000 1,000,000 6,500,000 14,550,000 250,000,000 1,500,000 93,150,000 448,550,000 136,269,000 19,077,660 117,191,340 0 117,191,340

207,000,000 2,000,000 1,350,000 4,000,000 26,000,000 58,200,000 1,000,000,000 6,000,000 243,168,750 1,547,718,750 392,520,024 54,952,803 337,567,221 0 337,567,221

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PRO FORMA INCOME STATEMENT OF YEAR-4 & YEAR-5

Year-4

Year-5

Sales Cost Of Goods Sold Gross Income Operating Expenses: Salaries and Wages Rent Expenses Storage Advertising & Mkt Expense Utilities Expenses Depreciation Expenses Miscellaneous Expenses Travel and Vehicle Costs Professional Fees and Licensure Total Operating Expenses EBIT Interest (14%) EBT Taxes Net Profit

7,001,028,243 4,900,719,770 2,100,308,473

12,601,850,838 8,821,295,587 3,780,555,251

310,500,000 2,000,000 1,350,000 1,000,000 26,000,000 58,200,000 1,000,000,000 9,000,000 291,802,500 1,699,852,500 400,455,973 56,063,836 344,392,137 0 344,392,137

473,512,500 2,000,000 1,350,000 1,000,000 26,000,000 58,200,000 2,000,000,000 16,500,000 437,703,750 3,016,266,250 764,289,001 107,000,460 657,288,541 0 657,288,541

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Pro Forma Cash Flow

Pro Forma Cash Flow

Year-1 Cash Inflows: Cash From Operations Cash From Receivables Operating Cash Inflow Other Cash Inflows: Equity Investment Increased Borrowing Sales of Business Assets A/P increases Total Other Cash Inflows Total Cash Inflows Cash Outflows: Repayment of Loan A/P Decreases A/R Increases Asset Purchases Dividends Total Cash Outflows Net Cash Flow Cash Balance 250,000,000 0 250,000,000 Year-2 300,000,000 2,455,000,000 2,755,000,000 Year-3 360,000,000 1,100,737,660 1,460,737,660 Year-4 432,000,000 880,590,128 1,312,590,128 Year-5 518,400,000 704,472,102 1,222,872,102

600,000,000 240,000,000 0 120,000,000 960,000,000 1,210,000,000

0 0 0 856,489,200 856,489,200 3,611,489,200

0 0 0 576,489,200 576,489,200 2,037,226,860

0 0 0 1,143,084,880 1,143,084,880 2,455,675,008

0 0 0 920,404,016 920,404,016 2,143,276,118

0 520,000,000 2,455,000,000 1,595,880,000 0 4,570,880,000 (3,360,880,000) (3,360,880,000)

0 456,489,200 (1,354,262,340) 1,651,880,000 0 754,106,860 2,857,382,340 (503,497,660)

166,742,240 976,489,200 (220,147,532) 280,000,000 0 1,203,083,908 834,142,952 330,645,292

176,746,774 743,084,880 (176,118,026) 336,000,000 0 1,079,713,629 1,375,961,379 1,706,606,671

187,351,581 1,320,404,016 (70,447,210) 403,200,000 0 1,840,508,387 302,767,732 2,009,374,403

Pro Forma Cash Flow

8,000,000,000 6,000,000,000 4,000,000,000 2,000,000,000 0 1 2 3 4 5

Total Cash Inflows Cash Balance

Total Cash Outflows

47

Break-Even analysis We assume the average selling price is Tk 4 per unit. Fixed costs in year-1 is Tk 1,124,537,500 and since, Cost of Goods Sold is 70% of sales revenue, we can assume a variable cost per unit of Tk 2.8. Using these calculations we can determine the break-even point in units as follows:

Total Fixed Costs B/E= Selling/unit Variable Cost/unit 1,124,537,500 = 4 2.8

937114583.3 units

48

STRATEGY IMPLEMENTATION

49

Our implementation strategy for our business plan will differ with the life stage of our business. Forming the Company: We will present our business plan to investors with intention to make them interested to invest in our projects. From the interested investors we will chose the best four on the basis of their credit history, social reputation, and influential power on corporate. Each of them will have to invest Tk. 45 crore initially which will make Tk. 140 crore for the company. With this amount of money company will buy land, build building and buy machineries. And these items will be used as collateral to the bank and we will borrow another Tk.140 crore from the bank from which we can offset our other expenses. Recruiting Heads: In the next step we will recruit our key employees from different companies who are in the same industry (like Summit Power, Energrpac, Rahim-Afrooze etc.) with higher incentives. These employees will be key player for establishing our company. Introduction Stage: The first two years of our business will be in introduction stage. In those days we will create awareness among our target market regarding the brand name G_Power. They will have to know the existence of our company first. We will invest huge amount of money in our PR activities in this stage. Also we will control other administrative costs in this stage. Our net income will be negative all over in this stage. Growth Stage: Our initial growth stage will be from the beginning of the 3rd year to the end of the 7th year. In those years the demand of our service will be raised significantly due to our marketing activities during the introduction stage. So we will need more people to produce and deliver this service. So we will hire more employees and train them in this stage. In addition to that at the beginning of this stage we will be able to recover our break-even. So we can charge lower in this stage than the previous one. This will also create new demand for our services to the medium and small factories. Going Public: We know that Govt. is not taking any tax from any power provider until first 5 years of its establishment. So during the first five years we are getting this benefit. At the end of the 5th year we will launch our IPO and go to public to get more investment for our growth. This will increase our growth stage of the business. And keep us away from getting into maturity stage. Investment on R&D: We will not withdraw our profit from the business until the 5th year. Our net profit will be re-invested in our own business. Much of them will

50

be invested in Research and Development department for innovation of new technology and any cost controlling method. We will give our emphasis on producing electricity from wind mill, different plants, float of rivers etc. Going Global: After doing business for ten years in Bangladesh we will enter in the maturity stage. That is our high time to go into the global business. By going global we actually mean that we are going to expanding our business in our neighbor countries like Sri-lank, Pakistan, Afghanistan etc. as operating in these countries will be much cheaper. Furthermore it will give us competitive advantage as we will enter into the industry which is in the growth stage

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CONTINGENCY PLAN
If our business fails for some unavoidable reasons we just cant get out of this huge investment over a night. What we will do is that we will transfer our business from B2B to B2C. To do this we will begin to produce mobile chargers and laptop charger with our solar energy, solar IPS which will reserve the electricity from the solar energy, Solar battery which will replace in tractors in villages and this battery will also available for auto rickshaw. By doing so we will we offset some losses from our original business plan. We will gradually reduce investment and pay the interest regularly so that we cant get bankruptcy.

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BIBLIOGRAPHY
 WORLD TRADE ORGANIZATION AND THE READYMADE GARMENT INDUSTRY OF BANGLADESH: A CRITICAL ANALYSIS M Golam Robbani, 1999  The financial express- Mustafa K. Mujeri, April 16, 2008.

APPENDIX

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