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By

Khadija jahangir
Urooj siddiqui
Falza irshad
Saira Lakhani

MBA 3-C

PROJECT DESCRIPTION
Fruit pulp processing company
Product name: Frooties
Company name: KUFS Ltd.
Annual capacity: 250,000 ones of fruit pulp
Total cost:86,755,000
Debt/equity ratio: 70:30

Location: Korangi industrial area


Implementation period: 1 ear
Start of operations: 08-jan-2016
Local sponsors:
Unique Engineering works (Private) Limited
Pakistan Air-conditioning Engineering Co.
(Private) Limited
And etc.

Foreign sponsors: china machinery co.

CONSTRUCTION SCHEDULE
Months
LAND

BUILDING
MACHINE
RY
INSTALLAT
ION
TRIALRUN

10

11

12

PROJECT COST

Project Financing Plan


Equity
26,026,000/=

4 partners
25% share each
(5,006,500)
PICIC 6,000,000

Total cost
86,755,000/=

IDBP 25,360,000

Loan
60,728,000/=

ORIX leasing
(vehicles) 1,450,000

HBL 27,391,000
UBL 527,000

Location Map

Factory Layout Plan

Details Of Land
1 acre land (4840 sq.ft)
Process area 1,500 sq. feet
Cold storage 800 sq. feet
Storage Godown 800 sq. feet
Factory office 250 sq. feet
Water plant, parking lot, toilets 350 sq. feet
Land for expansion 11440 sq. feet

Foreign Machinery
Filling and packaging machine
Total cost = 6,000,000
Units required = 2
PICIC Loan

Local Machinery

Fruit sorting conveyer


Fruit washing containers
Conveyer belts
Pulp extractor machine
Filtration station
Cooling rack
Sterilization center
Pulp storage tank
Materials carrier vehicles

Cold Storage
Machinery &Equipment
Electric Generator
Tools & Equipment
Equipment & Water
Treatment
Total cost = 25,630,000
IDBP loan

Manufacturing Flow Diagram

Sorting

Washing

Pulp
Extraction

Cooling And Sterilization

Filtration

Manufacturing Flow Diagram


Storage Tank

Packaging

Customer

Management Team
and Legal Structure
LEGAL
STRUCTURE:
The companys
legal structure is
Partnership
limited. KUFS is a
partnership of 4
individuals and
registered as
KUFS Ltd.

Falza Irshad
Production
Manager
Khadija Jahangir
Human
Resource Manager
Saira Lakhani
Finance
Manager
Urooj Siddiqui
Brand &
Sales Manager

Projected Profit and Loss Account


(All figures in Rupees)
Construction
Period

Year-1

Year-2

Year-3

Year-4

Year-5

Sales Revenue

45,092,339

633,666,021

765,021,964

896,164,105

971,431,370

1,003,214,349

Less: C O G S

32,156,828

449,098,131

566,377,595

603,208,012

636,690,209

657,449,171

Gross Profit

12,935,511

184,567,890

198,644,369

292,956,093

334,741,161

345,765,178

Admin & Selling


Exp

13,869,431

194,172,037

233,780,331

247,149,762

260,019,193

268,340,852

(933,921)

(9,604,147)

(35,135,962)

45,806,331

74,721,968

77,424,325

252,484

252,484

252,484

252,484

252,484

(9,856,631)

(35,388,446)

45,553,847

74,469,484

77,171,841

1,358,019

1,202,905

1,047,790

892,676

737,561

(11,214,650)

(36,591,351)

44,506,057

73,576,808

76,434,280

44,506,057

73,576,808

76,434,280

EBIT-Operating
Profit
Less :
Amortization

(933,921)
Less: Interest
Expense
EBT
Taxes
Net Profit

(11,214,650)

(36,591,351)

Assumptions to the projected


Income Statements
Selling Price per unit:
200gms :180/=
500gms : 375/=

Cost per unit


Direct Material
Direct Labor
Direct + Indirect Over Heads

Production Efficiency
C.Year
10%

Year-1

Year-2
70%

Year-3
80%

Year-4
90%

95%

Break Even Analysis


Net Profit and Break even
100,000,000

80,000,000

73,576,808

76,434,280

60,000,000
44,506,057
40,000,000
Net Profit
20,000,000

Year 1
(20,000,000)

(40,000,000)

(60,000,000)

Year 2

(11,214,650)

(36,591,351)

Year 3

Year 4

Year 5

Manpower Schedule
s.No

description

No required

Monthly salary in rupees

General manager

100,000

Accountant/ cashier

60,000

process supervisor

45,000

Clerk

15,000each

Driver

10,000 each

General service

20,000

Total

275,000

Production Incharge

100,000

Maintenance staff and mechanic

30,000 each

Skilled/ unskilled workers

10

12,000 each

Total

16

370,000

subtotal

24

645,000

A.

B.

Administration

Production

Industry Analysis
Consumption of Fruits and vegetables is
progressively increasing in Pakistan
The total fruits produced in Pakistan are currently
almost sold as whole fruit or juices without further
processing or preparing into other forms.
A very insignificant amount of it is used for
preparing frozen and canned, extracts and
preserves

Food inflation

It is interesting to note
that in terms of volume,
Pakistan is globally ranked
6th for the production of
Kinoo, 6th for the
production of mangoes and
36th for the production of
apples.
Pakistan produces a wide
variety of fruits and
vegetables, with total
annual production
estimated at 13.2 million
metric tons. Production
estimates for various fruits
are given in the following
table

Fruit

Production in
metric
tons(2005)

Citrus fruits

1,670,000

Mango

1,673,900

Apple

360,000

Guava

570,000

Total fruit
production

5,751,800

VIABLE ECONOMIC SIZE


Fruit pulp processing plant can be designed with a
wide range of optimal processing capacity and product
mix. However, it is suggested that the viable economic
processing unit should have 5,000 kg 10,000 kg of
fruit processing capacity per hour. It is assumed to run
the plant at 70% of the full capacity in first year

Competitor Analysis
Being the first in industry has a clear and a dominant
advantage of not having a direct competitor. However,
indirect competitors are a major concern.
Currently in Pakistan, there are 24 fruit juice/pulp
processing units and a number of small units in the
informal sector are working. The present installed
capacity is estimated around 400,000 metric tons per
annum with a demand for juices growing at a combined
annual growth rate of 27%. The fruit juice industry
reported sales of 8.526 billion Rupees in year 2005
Shezan, Ahmed and Mitchells are top local frui juice
processing firms in market

Target Market
Demographic:

Age: All age groups


Gender: Male/Female
Family Size: 1, 2 above
Family life cycle: married /
unmarried
Income: 15,000 above
Occupation: White collar,
blue collar, Service workers
Education: school, colleges,
universities
Religion: All
Nationality: Pakistani

Psychographic:
Social Class: Middle class and
upper class
Life style: fulfilled, Believers,
Experience makers and Strugglers
and are in need of time saving
products & beverages

Behavioral:
Occasion: College festivals,
workshops, seminars
Benefits: instant milk tea, quality,
taste, flavor
Readiness stage: Awake and
interested
Attitude towards brand: positive,
enthusiastic

Marketing Plan
Product FROOTIES is a product which is full of nutrients
and health. Its pure pulp which is made up of fruits.
FROOTIES offers to its customers:
Freshness
Quality
Convenience
VARIANTS
Mango
Orange
Peach
.

Slogan

Price The pulp is packed into different sizes like


200grm of pouch for Rs/= 180 and 500grm of
pouch for Rs/= 375

Promotion FRUTIES using the following ways through which


company can promote our product:
internet
broachers
billboards
free sample
through BTL activities

Place We aim to locate our product on shelves of 3 major retail


stores in Karachi:
Naheed supermarket
Imtiaz superstore
Metro cash and carry

SWOT

Strengths:

Innovative product
Market leader
Quality control staff
High grade operational technology
Highly effective marketing team

Weaknesses:

Market mind set is not develop about the


product
Company have to create the need of a
product
Company and product both are new for
the market
The organization is at the initial level of
operation and the organizational culture
is yet to develop
Huge marketing & advertising cost

Opportunity:
Healthy organic and natural drinks
Limited options in locally produced
real fruit market
High export potential.
Reduction in excise and import
duties on food processing
machinery.

Threat:
Unavailability of adequate industry
statistics.
Single product company
High processing and packaging costs
Threat from other fruit juice
exporting countries (India and china
who are already in foreign market).

Mission/Vision
Mission
To provide varying new combinations of Fruit pulp,
delivering great tasting, nutritious, and fresh products
to sustain healthy standards of mankind.
Vision
Our vision is to be the market leader, making available
ready to use packaged fruit pulp available to the
nearest superstore, dedicated to preserve freshness
and meet the growing hunger for healthy fruits.