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Team Members
Md. Nabid Alam (Team Leader)
E-mail: md.nabid.alam@gmail.com Contact No. 01673375729
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Table of Contents
Serial No. 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 -Particulars Executive Summary Business Idea Goals and Objectives Market Potential Competitor Analysis Marketing Plan Operation Implementation Plan Resource Requirement Ownership Form and Management Team Risk Assessment SWOT Analysis Exit Strategy (Contingency Plan) Financial Plan Social Cost-Benefit Analysis Appendix Page No. 1 2 3 3 4 5 6 7 7 8 8 8 9 9-10 10 i-xx
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1.0 EXECUTIV E SU M M AR Y
Are you sure that the last drop of milk your loving child drinks is safe? Do you know what compels you to feed your baby melamine and other contaminated milk? The huge demand-supply gap makes the milk price high and that creates the chance for low price contaminated milk to enter into Bangladesh market. Another recent agro-problem Bangladesh has faced is huge potato spoilage after having bumper production each year and potato farmers incur huge loss. Poto (countrys first non-dairy milk brand) identifies these top problems as opportunity and combines two solutions into one direction which is producing milk by adding value to the local quality potatoes to introduce non-dairy milk in Bangladesh market as a new offering. Potos product line comprises two basic category of milk which is original & flavoured in three tetra pack size of 250ml, 500ml and 1litre. A new generation of non-dairy beverages has dawned with Poto, a delicious-tasting, fat free, cholesterol free, that can be used just like milk. Potato based Poto is an excellent source of bio available calcium and least allergic of all non-dairy beverages available on today's world. The total demand of milk is 6,570,000 tonnes (per head 120 ml) and supply is 3,326,000 tonnes including the imported milk (The Independent, 25 December, 2008). Among the milk producers Milk Vita is the biggest by holding 20% of demand so it grabs almost 40% of total supply. Brac Dairy, Pran, Akij are holding sizeable portion of the market. Poto uses cost leadership and differentiation strategies to gain competitive edge over its competitors. It gets the first mover advantage over all potential non-dairy milk brands. Poto is not only an entrepreneurship venture but also an ecopreneurship endeavor. The production process is eco-friendly because there are no chemical or harmful particles used in the production and the disposal system is safe. The company also emphasizes safety and hygiene issue of the human resources. The firm has a marketing strategy of positioning its product on the basis of low price and quality. The objective of its marketing campaign is to make people aware about non-dairy milk concept and its benefits over ordinary milks. To reach the segmented portion of buyers in Dhaka Poto uses all the four means of marketing mix and marketing tools like TVC, FM radio ads, newspaper ads, campus campaign, assurance program and 24/7 help desk. The production of Poto is done in the own operational plant in Sirajganj because the availability of rawmaterials as well as the convenient transport and communication. The operation of Poto consists of three phases procurement and storage, production and packaging phase. The finished products are distributed by the help of local distributor. The project is associated with risks like demand risk, supply risk, economic risk, political risk etc. which is reflected in the discount rate (20%). The estimated project cost is BDT 8,493,500 in FY 2009-10 which is financed by 69% equity from partners and 31% debt from lenders. The ratio analysis shows net profit margin of 3%, 16.8%, 20.2%, 20.8% and 21.2% in FY 2009-10, 2010-11, 2011-12, 2012-13 and 2013-14 respectively. The projected financial statements also portray liquidity and solvency of the firm. The NPV of the project from 5-year financial projection is positive by BDT 13,979,595. The IRR of the project is 52%. The payback period is 2.10 years and discounted payback period is 2.54 years. The stress testing shows positive NPV in all the three cases base (BDT 13,979,595), best (BDT 20,053,800) and worst (BDT 4,275,886). The social cost-benefit analysis also reveals positive social NPV of BDT 23,024,450 at 25% discount rate and the social IRR of the project is 56%.
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2.1 Product offerings Poto original Original non-dairy milk-white. Poto flavored Poto choco milk (Chocolate flavored milk), Poto milk berry (Strawberry flavored milk) and Poto Vanilla (Vanilla flavored milk). Poto markets its products in 3 tetra pack sizes: 250ml, 500ml and 1 Litre. (see Appendix A3) 2.2 Features and unique selling proposition Potato milk is worlds new non-dairy milk innovation. Potato milk is commercially and technically viable non-dairy milk option for Bangladesh which is best taste comparing to soy-milk and rice-milk. (see Appendix A4) Cholesterol and lactose free milk which is helpful for lactose intolerant people and also free from dairy allergy No artificial sweetener, color and flavor and no animal ingredients, preservative used in Poto. Poto is vegan friendly and Non-GMO (Genetically Modified Organism) product. (see Appendix A2) 2.3 Business model: Potos business model is entirely production or manufacturing-based. Potos production process transforms and adds value to the quality potatoes and produces non-dairy milk of various flavors. Poto will: Produce milk in its own operational plant using eco-friendly production process. Sell milk in 3 tetra pack size in the local market. How Poto makes money is shown in the following business model:
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3.0 GOALS AND O BJECTIVES 3.1 Vision: Potos vision is to make a safe milk consumption platform to create a healthy nation. 3.2 Mission statement: Poto wants to offer non-dairy milk to reduce the demand-supply gap and assists potato producers who have incurred huge loss due to potato deterioration, while it uses the most efficient, state-of-the-art technology in operation. Poto aims at establishing eco-friendly work environment and providing better employee incentives as it continues to expand its business.
3.3 Short-term goals: To offer quality products at a competitively lower price to capture market share. To create a demand for non-dairy milk as a best taste option. To persuade the target customers regarding the benefits of non-dairy milk that will bring familiarity among customers. 3.4 Long-term goals: To expand its operation beyond Dhaka in the year 2015 and further goes for export. To set up new industrial unit in the west region of Bangladesh by the year 2018. To ensure sustainable development of the nation by creating newer utility of quality potatoes. 3.5 Objectives: To attain 20% growth rate by the year 2014. To attain net profit margin of 25% in year 2017. To achieve BDT 20,000,000 free cash flow by the year 2015 to setup another operational plant by the year 2018. To utilize 1200 tonnes of potatoes by the year 2018. To repay loans by the year 2020 and lever up the firm with 25% debt by the year 2025.
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with different flavors is cheap and better quality than available flavored milk 4.2 Growth prospect: The milk market growth rate is 20% according to industry analysis (source: The Daily Star; Published On: 8/4/2008). "We are happy that private companies are coming up with big plans in this sector. There is still a huge scope for growth for every player as together we are only catering to one-fifth of the market," according to Ms Ferdousi Ali, chairman of Milk Vita. Milk industry is going to be a thrust sector (The Independent, 25 December, 2008). The government is encouraging agro-processed business. According to FAO all over the world value added potato products consumption is increasing. The year 2008 was World Potato Year. The government observed this year by launching a huge potato campaign. The people have become more interested to consume value added potato products. So, it is obvious that there is an ample growth prospect of the business.
5.0COMPETITOR ANALYSIS
Poto offers non-dairy milk in Bangladesh market in first phase. The domestic market of non-dairy milk is less competitive but the firm faces huge competition from the existing dairy milk brands which are offering the substitute product. Milk Vita is the largest liquid milk processor of Bangladesh. The daily demand of milk is 37.5 million and the company can meet only 20% of it. So it grabs about 40% of total supply. But the milk collection has fallen some 35% to 55.23 million litres in FY 2007-08. (source: The Financial Express, Publish date: January 26, 2009) Brac Dairy is the second largest liquid milk plant in Bangladesh. The market share of Brac Dairy had increased to 35% from 20% by year 2006 to 2007. (www.ssireview.org/ articles/entry/in_the_black_with_brac/) Pran-RFL is the third largest liquid milk producer in Bangladesh has a daily processing capacity of 1 lakh litres of milk although it only processes 40,000 litres daily due to milk shortage (source: The Daily Star ; Published On: April 4, 2008). Milk price of these competitors lie between BDT 14 to 20 for 250 ml, BDT 26 to 28 for 500 ml and BDT 50 for 1 litre. (see Appendix A6) Brac Dairy, Pran-RFL, Akij Foods and Beverage Ltd. use tetra pack for packaging a portion of supplied milk. Pran-RFL and Akij use tetra pack for normal milk and Brac Dairy uses tetra pack for flavored milk. 5.1 Competitive forces analysis: Porters five forces analysis has been conducted to evaluate competitive edge of Poto from its existing and potential competitors (see Appendix A12). The analysis shows: Bargaining power of suppliers (potatoes and other ingredients) is low. Bargaining power of buyers is high because the consumers get several options. Threat of new entrants domestically is high as the market is quite lucrative and milk demand supply gap is huge. Threat of substitute although very high. The intra-industry rivalry is domestically low because the demand is quite high than the supply. 5.2 Assessment: Among the competitors Milk Vita is the biggest by holding 20% of demand so it grabs almost 40% of total supply. Brac Dairy, Pran, Akij are holding sizeable portion of the market. Poto has competitive edge in price and taste. It gets the first mover advantage over all potential non-dairy milk brands. Besides, competitive analysis reveals the market is lucrative in all terms of forces that indicate - 4-
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opportunity, profitability and sustainability. The competition among competitors is fair because all operate to make Bangladesh milk industry a self sufficient one which is still a gigantic task.
6.0MARKETING PLAN
6.1 Marketing goals and objectives: To meet the growing needs of the target market and to evaluate the competitive environment and continue to establish a differential advantage. To establish an effective and profitable marketing mix of product, place, price and promotion. To establish a customer base of 5% of the defined target market within 2015 To exceed break-even selling point of 381 tonnes at FY 2009-10 6.2 Marketing strategies: Making people aware about non-dairy milk, its nutritious value, taste and benefits. Focusing price, taste and unique selling propositions while developing marketing campaign Building brand proposition to different consumers according to their perception (e.g.; smartness for youth, taste and nutrient for children and family consumers). Creating customer loyalty and making customer delight by proper quality assurance campaign 6.3 Target customer: Geographic location: Dhaka city for first 5 years (see Appendix A5) Demographic: 1. Social classmiddle class and high end consumer 2. Age 10-24 and 25-55 are two prospective buyer segments for flavored milk and original milk respectively Prospective buyers: Around 2,500,000 (35% of total Dhaka city population fall under Potos target customer segments) 6.4 Market positioning: Poto positions itself in the market on the basis of low price and tasty-nutrient non-dairy milk benefits. The product positioning map shows the unique positioning of Poto relative to its competitors.
Poto
6.5 Marketing mix: Potos combination of product, price, promotion and distribution and other marketing activities needed to meet the marketing objectives is: Product Poto offers two basic types of product line: original and flavored. The pack sizes of Poto Original are 500 ml and 1litre. Poto Flavored offers 3 flavors (chocolate, strawberry and vanilla) with pack size 250 ml and 1litre. Poto uses state-of-the-art tetra pack technology for packing its offers. The shelf life of Poto is 4 months for original and 6 months for flavored. Price The following price list shows the wholesale and retail price of product lines: Poto Original Poto Flavored 500 ml 1 litre 250 ml 1 litre Wholesale price (BDT) 18 36 10 40 Listed price (BDT) 20 40 12 48
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Distribution Channels Poto uses a simple distribution channel with zone-wise distributors. The Dhaka city has divided into 9 different zones covering 19 areas (see Appendix A5). Finished Poto products come directly to a Dhaka city warehouse from the plant. Sales team uses firms covered van to distribute the product to the dealers. It uses different specific day for specific zone. Then the secondary distribution channel leads by the dealers distribute the product by using their own resources. Poto also make strategic alliance with super stores and educational institutes canteens to sell Poto. Integrated marketing communication Potos marketing communication mix or promotion mix includes all the typical elements like advertising, sales promotion, public relations, personal selling and direct marketing to activate pull strategy (see Appendix A7). Some of the tools are TVC, FM radio ads, Newspaper ads Buzz Marketing (opinion leaders: Doctors) Poto goes to school campaign Potos quality assurance campaign SMS contest Point of purchase ads 6.6 Marketing budget: The five year allocation of marketing budget at affordable method shown below: Advertising Sales promotion PR and personal selling Direct marketing Total 2009-10 2,983,200 150,000 1,146,800 20,000 4,300,000 2010-11 5,146,400 200,000 933,600 20,000 6,300,000 2011-12 5,146,400 200,000 1,233,600 20,000 6,600,000 2012-13 5,146,400 200,000 1,333,600 20,000 6,700,000 2013-14 5,146,400 200,000 1,533,600 20,000 6,900,000
6.7 Customer service and control: 24/7 call center always and retailer survey quarterly conducted by the marketing team to know the first hand information of the consumers. The total marketing plan is flexible and open for any required contingencies.
7.0 OPERATION
7.1 Production: The production of Poto is done in the own operational plant (see Appendix A8) in Sirajganj because the availability of raw-materials as well as the convenient transport and communication. The operation of Poto would consist of three phases procurement and storage, production and packaging phase. Procurement and storage The pre-production is run by the procurement and storage unit. The procurement unit is responsible for purchasing 200 tonnes of potatoes and other ingredients in FY 200910, 500 tonnes of potatoes and other ingredients in FY 2010-11 and adds 50 tonnes each succeeding years. The storage unit stores the raw-materials in own 500-ton capacity cold storage. Production phase The production phase transforms the potatoes into milk which is the finished product. The production unit produces 500 tonnes milk in FY 2009-10. Packaging In this phase produced milk is packed in tetra packs of 250 ml, 500 ml and 1 litre. 7.2 Placement of order: The distributors and dealers can place orders by using order form or through internet. The customers can place orders only through the website. 7.3 Delivery: Milk is delivered in 1 dozen retail pack or 50 pcs wholesale pack. The local dealers are responsible for home delivery with extra commission. 7.4 Billing: Milk distributors are required to make payment within 45 days. Accounts payable would be paid within next year.
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7.5 Quality control: Internal quality control is closely monitored by the production manager and supervisors and low quality outputs are disposed. The weight of each pack is automatically checked.
8.2 Resource ramp-up: With a view to implement the project, resource ramp-up is very vital. The financial resources (equity and debt) and human resources are the key elements. Financial resources are vital for uplifting capital investments and working capital. Human resources are significant throughout the entire business process. 8.3 Product roll-out plan:
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11 .0 RISK ASSESSMEN T
11.1 General risks: The project is associated with following general risks: Demand risk the price of substitute and other options production cost lowering may shiver the demand of potato milk. Supply risk the main raw material of potato milk is abundant in Bangladesh but the other ingredients supply may impede the production. Regulatory risk the standard testing of the product and business approval is highly regulated by our government but the sector is going to be the thrust sector so regulatory risks are going to be lessened. 11.2 Risk from PEST analysis: The project is associated with following risks analyzed from PEST analysis: Political risks the political variables hamper are strikes, terrorism, instability etc. Economic risks the project is affected by economic parameters such as inflation rate, consumer price index, recession etc. Socio-psychological risks non-dairy milk is a new product in peoples lifestyle so it may has setback regarding peoples acceptance. Technological risks technological changes, invention of new alternative milk may cause problem
Weakness
1. High dependency on dealers 2. High dependency on other ingredients 3. Interruption of any sub-system may cause disruption of total production process
Opportunity
1. Market growth rate 20% 2. Going to be the thrust sector 3. Governments and customers encouragement
Threat
1. Level of acceptance by people is not reasonably certain 2. Threat from popular substitute 3. Potential competition from other non-dairy milk option
S ee App endi x A13 & A14
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14.6 Break Even Analysis Total costs (BDT) Selling price/litre (BDT) Break even selling unit (in litre) 14.7 Stress Testing Base case Best case Worst case 0 (8,493,500) (8,493,500) (8,493,500) 1 377,073 377,073 377,073 2 4,870,426 3,381,597 1,529,412 3 6,002,675 5,612,017 2,435,555 4 5 5,773,388 5,449,532 7,671,861 11,504,752 3,542,028 4,885,318 NPV 13,979,595 20,053,800 4,275,886 2009-10 2010-11 2011-12 2012-13 14,445,854 30,110,978 34,012,295 37,572,170 38 38 38 38 380,154 792,394 895,060 988,741 2013-14 41,399,701 38 1,089,466
Notes: Base case values represent the values of 5 year projection. Best cases sales growth is 25% and cost growth is 5%. Worst cases sales growth is 15% and cost growth is 10%.
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APPENDICES
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The plant location is in northern district of Sirajganj and The Department of Agricultural Extension (DAE), Rajshahi has set a target of producing 58,99,250 metric tons of potato from 3,37,100 hectares of land in 16 districts of Rajshahi division during the current harvesting season of FY 2008-09. The cold storage capacity of Rajshahi division is shown in the following table: (Capacity and potato storage in metric tonnes) 2007 2008 District Number Capacity Potato storage Number Capacity Potato storage Rajshahi 23 190500 14135 23 210500 192156 Bogra 24 168790 127800 25 182360 172446 Pabna 3 9000 3200 5 9700 6420 Dinajpur 6 40500 20277 6 44800 44800 Rangpur 22 140690 117139 23 183460 176348 Source: 5.23 Cold storage location and capacity, p-211, Statistical Pocket Book 2008.
A2. NU TR ITION F ACTS OF PO TO Poto contains no artificial preservatives or sweeteners and is formulated with ingredients that have been originally sourced in nature. The following table shows the list of ingredients, their purpose and source:
Ingredients
Filtered water Maltodextrin Soy Protein Isolate Fructose Potato Starch Natural Flavors Natural Color Calcium Carbonate Carrageenan Sea Salts Tricalcium Phosphate Potassium Citrate Citric Acid
Purpose
A carrier of all ingredients used in Poto beverages From potatoes, to provide energy in the form of carbohydrates Source of vegetable protein isolate A sweetener, provides immediate fuel for the body Provides energy in the form of complex carbohydrates Flavor Opacity Fortification Provides suspension aids to all ingredients, and adds thickness Flavoring only A nutritional supplement / Form of calcium source to fortify the beverage Provides stability Acts as acidulant to provide stability and flavoring to the finished product
Source
Fresh water filtered for purity NON GMO (Genetically Modified Organism) potatoes Non GMO soy beans Corn Non GMO Potatoes Vegetable based Inert, mineral (processed and purified) for food products From special limestones prepared in a simple process using heat and water From seaweeds Evaporated solar salt in the form of brine Food grade, natural material derived from phosphate Processed from citric acid in the form of potassium salt instead of sodium Fermentation by-product of glucose as the carbohydrate source
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Poto**
Yes Yes Yes Yes Yes Yes 100 0 0 0 0 35 21 3 3 130
2% Milk
No No No No No Yes 125 45 20 3 5 30 13 12 8 120
Soy-milk
Rice-milk
Yes Yes Yes No Yes Yes Yes No Yes No Yes Yes 125 125 36 27 0 0 1 0 4 2 27 30 9 25 6 12 6 1 130 90 ** Poto Original
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Potos target market is Dhaka City Corporation area for the first 5 years. The firm uses a simple distribution channel with zone-wise dealers. The Dhaka city has divided into 9 different zones covering 19 areas. The following table shows the 9 zones and areas under each zone:
Name Zone-1 Zone-2 Zone-3 Zone-4 Zone-5 Zone-6 Zone-7 Zone-8 Zone-9 Covering Areas Mirpur, Pallabi Cantonment, Kafrul Mohammadpur, Dhanmondi Ramna, Tejgaon Hazaribag, Lalbag, Kamrangirchor Kotowali, Shutrapur Shyampur, Demra Motijheel, Sabujbag Khilgaon, Badda
Flavored Milk
Size 200 ml 250 ml 1 litre Price Wholesale Retail Wholesale Retail Wholesale Retail Milk Vita 12.85 14.00 ----Aarong 11.00 12.00 16.00 20.00 --Pran 11.00 12.00 ----Poto --10.00 12.00 40.00 48.00
POTO
Order
Demand
Customers
Marketing activities
Potos marketing communication mix or promotion mix includes all the typical elements like advertising, sales promotion, public relation, personal selling and direct marketing. Heres the detail:
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Electronic and print media ads Theme 1: Smartness Type Media Specification Target customer: Youth Television commercials Private TV channels Musical and sports shows
Newspaper Advertisement FM radio channels National Dailies Musical program and Sports, lifestyle and youth talk show entertainment page
Radio commercials
Theme 2: Taste and nutrition Target customer: Children and parents Type Television commercials Radio commercials Media Specification Private TV channels News break and cartoons FM radio channels News break
Theme 3: Awareness and benefits Target customer: Mid age people Type Television commercials Radio commercials Media Specification Private TV channels News break FM radio channels News break
Sales promotion: SMS contest Price discount at special occasion Special day offers (e.g.; buy a pair take a thank you gift) Public relation: Buzz marketingby using opinion leaders (doctors) Write articles about awareness of non-dairy milk and its benefits Write features in lifestyle pages of newspapers Sending press release about products Arrange seminars under Non-dairy milk awareness campaign. Attending science and other fairs of educational institutes. Sponsoring school annual sports. Personal selling: Poto goes to schoolspecial school campaign designed for students Temporary selling booth at super stores, hospitals and campus Poto assurance campaign a tour to production plant to know about the eco-friendly production process Direct marketing: E-mail marketing, web marketing
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Newspaper Ads
In children and fun page
In health page
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OFFICE BUILDING
COLD STORAGE
INGREDIENT STORAGE
GENERATOR
POND
FIELD
PRODUCTION PLANT
TESTING LAB
CANTEEN
RESIDENCE AREA
PACKAGING UNIT
SECURITY POST
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Manager
Manager
Sales Manager
Marketing Manager
Finance Manager
Supervisor
Supervisor
Assistant
Assistant
Assistant
Staff
Staff
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4 3 3 30 4 3 3 33 4 3 4 36 4 3 4 39 5 3 4 42
All the staffs are permanent and recruit by giving monthly wages The production unit needs extra staffs each years due to process more raw-materials The staffs are giving all privileges stated in Bangladesh Labor Code 2006.
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Comment: Bargaining power of suppliers (potatoes and other ingredients) is low. Bargaining power of customers: Bargaining power of customers is very high as they have several options to choose. Relatively low price may attract the customers and lessen the risk of switching from Potos product. Comment: Bargaining power of customers is high because the consumers get several options. The following illustration shows the summary result of Porters five forces analysis of Poto:
Intra-industry rivalry Threat of new entrant Threat of substitute products Bargaining power of suppliers Bargaining power of customers
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5. Return on assets and return on equity show increasing in assets and equity is proportionally higher than increasing in net profit.
Opportunity: Positive external factors that Poto uses to accomplish its goals and objectives are 1. Consumer more drink and beverage product by the youth can be signified as current youth trend and Potos opportunity. 2. The milk sector is going to be a thrust sector of Bangladesh. 3. Market growth rate is 20%. 4. Raw material production is increasing yearly. 5. Government encourages agro-processed industries. 6. The value added potato products demand is increasing all over the world. Threat: Negative external factors that inhibit the accomplishment of Potos goals and objectives are 1. The level of acceptance by people is not reasonably certain. 2. Threat from popular substitute that is dairy milk. 3. Potential competition from others non-dairy milk such as soy-milk, rice milk, corn milk, almond milk etc. 4. Economic recession may lessen the purchase power of potential customers.
Opportunity
Threat
S2, S3, T1, T2 To use low price strategy for protecting from substitute and acceptability threats S1, S2, S4, T3 To get an edge over potential non-dairy competitors, utilize first mover, low cost and viability strength
W4, T1, T2 To spend marketing budget efficiently to aware customer and compete with substitutes W5,T4 To provide low price milk for greater range of customers because with low price still the firm produce sizable net profit
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A1 7. FINANCIA L ASSUMPTIO NS
The firms initial investment is BDT 8,493,500 which is financed by 69% equity and 31% debt. The cost of capital or discount rate is assumed to be 20%. Interest for loans is 15% per annum repayable annually.
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50,000 125,000 137,500 200,000 550,000 675,000 36 36 36 7,200,000 19,800,000 24,300,000 0 250,000 50,000 625,000 125,000 687,500
50,000 125,000 137,500 200,000 550,000 675,000 40 40 40 8,000,000 22,000,000 27,000,000 15,200,000 41,800,000 51,300,000
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2,000,000 5,000,000 756,000 1,782,000 960,000 2,700,000 56,000 157,500 8,232,000 20,739,500 5,500,000 6,000,000 2,073,600 2,386,800 3,300,000 3,960,000 192,500 231,000 24,166,100 27,527,800 6,500,000 2,721,600 4,680,000 273,000 31,034,600
Packaging cost Wages Utility Others direct expenses Cost of goods sold
BALANCE SHEET
Cash Accounts receivable Inventory Other current assets Total current assets Long term assets Accumulated depreciation Total long term assets Total assets Accounts payable Other current liabilities Total current liabilities Long term liabilities Total liabilities Paid-up capital Retained earnings Total equity Total liability and equity 2009-10 2,082,550 1,520,000 3,800,000 68,229 7,470,779 6,231,400 275,445 5,955,955 13,426,734 2,881,200 1,728,720 4,609,920 2,493,551 7,103,471 5,870,775 452,488 6,323,263 13,426,734 2010-11 4,668,825 4,180,000 9,500,000 3,266,461 21,615,287 6,231,400 550,890 5,680,510 27,295,797 7,258,825 4,355,295 11,614,120 2,345,000 13,959,120 5,870,775 7,465,901 13,336,676 27,295,797 2011-12 9,664,310 5,130,000 10,450,000 8,767,107 34,011,418 6,231,400 826,335 5,405,065 39,416,483 8,458,135 5,074,881 13,533,016 2,174,167 15,707,183 5,870,775 17,838,524 23,709,299 39,416,483 2012-13 15,636,370 5,752,500 11,400,000 15,155,785 47,944,655 6,231,400 1,101,780 5,129,620 53,074,275 9,634,730 5,780,838 15,415,568 1,977,710 17,393,278 5,870,775 29,810,222 35,680,997 53,074,275 2013-14 22,549,411 6,400,000 12,350,000 22,218,749 63,518,160 6,231,400 1,377,225 4,854,175 68,372,335 10,862,110 6,517,266 17,379,376 1,751,783 19,131,159 5,870,775 43,370,401 49,241,176 68,372,335
13,680,000 37,620,000 46,170,000 51,772,500 57,600,000 (8,232,000) (20,739,500) (24,166,100) (27,527,800) (31,034,600) (825,000) (1,782,000) (1,914,000) (2,032,800) (2,178,000) (4,300,000) (6,300,000) (6,600,000) (6,700,000) (6,900,000) (210,000) (420,000) (480,000) (480,000) (480,000) (210,000) (220,000) (225,000) (230,000) (235,000) (393,409) (374,033) (351,750) (326,125) (296,656) (301,659) (4,675,609) (6,915,082) (7,981,132) (9,040,119) (792,067) 3,108,858 5,518,068 6,494,643 7,435,624 (6,281,400) (513,500) (6,794,900) 2,622,725 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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5,870,775 (522,583) 7,970,917 383,950 1,698,600 2,082,550 0 (522,583) (522,583) 2,586,275 2,082,550 4,668,825 0 (522,583) (522,583) 4,995,485 4,668,825 9,664,310 0 (522,583) (522,583) 5,972,060 9,664,310 15,636,370 0 (522,583) (522,583) 6,913,041 15,636,370 22,549,411
Cash received from paid-up capital Cash paid for loan repayment Net cash provided by financing activities Net increase in cash Cash balance at the beginning of year Cash balance at the end of the year
INITIAL INVESTMENTS
Amounts in BDT Startup Expenses: License & approval Patent & trademarks Product development cost Infrastructure development Others Total startup expenses Startup Assets: Land & registration 52,000 25,000 64,000 327,500 45,000 513,500 722,500
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600,000 4,302,600 606,300 1,698,600 50,000 7,980,000 8,493,500
Building Machinery & equipment Vehicle Cash requirement Other short-term assets Total startup assets Total Requirement
REQIUREMENT DISTRIBUTION
Means of finance Equity Debt Amount in BDT 5,870,775 2,622,725 % of Total 69% 31%
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4 5
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0 0 11,971,698 13,620,179 11,971,698 13,620,179
RATIO ANALYSIS
Current ratio Quick ratio Net working capital (Tk.) Total asset turnover ratio Debt-equity ratio Debt-total asset ratio Interest burden Gross margin Net profit margin Return on asset Return on equity 2009-10 1.62 0.80 2,860,859 1.13 0.39 0.19 0.34 45.8% 3.0% 3.4% 7.2% 2010-11 1.86 1.04 10,001,167 1.53 0.18 0.09 0.03 50.4% 16.8% 25.7% 52.6% 2011-12 2.51 1.74 20,478,402 1.30 0.09 0.06 0.02 52.9% 20.2% 26.3% 43.7% 2012-13 2013-14 3.11 3.65 2.37 2.94 32,529,087 46,138,784 1.08 0.06 0.04 0.02 52.1% 20.8% 22.6% 33.6% 0.94 0.04 0.03 0.01 51.5% 21.2% 19.8% 27.5%
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TESTING SCENARIO
Base case Best case Worst case 0 (8,493,500) (8,493,500) (8,493,500) 1 377,073 377,073 377,073 2 4,870,426 3,381,597 1,529,412 3 6,002,675 5,612,017 2,435,555 4 5,773,388 7,671,861 3,542,028 5 5,449,532 11,504,752 4,885,318 NPV 13,979,595 20,053,800 4,275,886
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EPIMETHEUS
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EPIMETHEUS
A2 0. SURV EY QU ESTIONNAIR E
Name: .. Occupation: Date: 1. How frequently usually do you buy milk? Daily twice a week weekly others (please specify). 2. What size of milk pack do you buy? 250 ml 500 ml 1 litre 3. Currently which brands milk you prefer? Aarong Starship Milk Vita Ammo milk Others (please specify)
4. Do you satisfy with this current milk? yes No If yes, whats the reason behind your satisfaction Taste packing availability others (please specify). If no, whats the cause of dissatisfaction Taste supply problem smell nutrient facts packing price 5. Do you familiar with the idea Non-dairy Milk (e.g.; soymilk, rice milk)? yes No 6. If a milk; In variety of flavors (choco, Is made from quality potatoes strawberry, vanilla) Gives high energy and kilocalories And served in smart pack In lower price You would definitely buy probably buy Not sure probably not buy 7. Is there any member in your family with heart diseases, diabetes or allergy? yes No If yes, will you buy non-dairy milk for them which is free from those diseases side effects definitely buy probably buy Not sure (please specify). 8. As a brand name how you rank Poto: smart taste, drink best? Excellent very good good fair average 9. Drinks and beverage (e.g.; soft drinks, flavored milk and juice) are inextricably blended with youth life style. Are you strongly agree agree neither agree or disagree disagree strongly disagree
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Potos Offerings