-
8/6/2019 Business Plan Abshar Water
1/21
Business Plan Report
SUBMITTED TO:
Respectable Mr. Akhtar AbbassSUBMITTED BY:
Iftikhar Virk 28S-635
Syed Tariq Hussain Shah 29S-632
E-MAIL : [email protected] # : 0322-4469323
mailto:[email protected]:[email protected]
-
8/6/2019 Business Plan Abshar Water
2/21
Final Report 2011
O Allah!
Open . . .
Our Eyes to see what is dutiful,
Our minds to know what is true,
Our heart to know what is good.
My Effort
To words practical life,
Is dedicated to
My loving PARENTS,
All my Family member,
My TEACHERS,
And
All my Friends.
2
-
8/6/2019 Business Plan Abshar Water
3/21
Final Report 2011
Acknowledgement
Appreciation goes to those who have contributed in making of
this Project.
These acknowledgements have a great importance for us. We know
better
than any one that our parents, our teachers and class fellows
made this report
possible.
Our instructorMr. Akhtar Abbassbeing gracious bynature has
always
been good and helpful to every student. His able-guidance and
didactic
efforts always stand us in good stead.
We acknowledge the debt of gratitude from the citadel of our
heart, because
without his valuable guidance and instruction our present
academic pursuit
might not have been of much value.
We are, and shall remain extremely beholden to him for all the
time to come
3
-
8/6/2019 Business Plan Abshar Water
4/21
Final Report 2011
Contents Page
Executive Summary
Objective 5
Mission Statement 6
Vision Statement 6
Goal 6
Strategy 6
Planning 7
SWOT Analysis 7
Project profile 8
Industrial Analysis 9
Physical resources 13
Project Costs 14
Annual Income report 15
Monthly expense Report 16
Organizational chart 18
Conclusion 19
4
-
8/6/2019 Business Plan Abshar Water
5/21
Final Report 2011
Executive Summary
The project is about preparation of mineral water or
manufacturing
of healthy and fruitful water for public. This project tells us
that
how we can start new venture the project objectives the
venture
mission, vision, financial resources, SWOT analysis etc all
will
come in under consideration. Most importantly what would be
project cost and what would be the preliminary expenses to
start
new venture. What strategies and plannings would be adopted
to
make the business more profitable all will be discussed, how
much
expenses occurred all the specific financial statements will
bepresents. The organizational structure will be show, and what
type
of tangible assets is required to start this venture.
Business Legal Status
During our study we got to know that manufacturing of
mineral water can be started as a sole proprietorship or a
partnership and even it can be registered under company law
with
Securities and Exchange Commission of Pakistan (SECP).
5
-
8/6/2019 Business Plan Abshar Water
6/21
Final Report 2011
The objective of this project is primarily to putinto practice
what we have
learnt from the classroom lectures. The project forms the basis
of an
important investment decision. In order to serve this objective,
this study
covers various aspects of project concept development, start-up,
marketing,
finance and business management. The study briefly discusses
government
policies and international scenario, which have some bearing on
the project.The business we choose is a manufacturing of mineral
water. We are a
Pakistan-based manufacturer that produces quality drinking water
by the
brand name ABSHAR.
What is Mineral Water?
Is not subjected to any chemical treatment.
Is obtained directly from natural or drilled sources from
undergroundwater.
Is collected under conditions which guarantee the original
natural
bacteriological purity.
Is bottled at the point of emergence of the source with
particular hygienic
precautions.
6
-
8/6/2019 Business Plan Abshar Water
7/21
Final Report 2011
To be the benchmark for prestige, natural spring water in
the
region helping to promote mineral water as the
highest-quality,
and purest, in Pakistan.
To provide the highest quality and most natural water in the
region in a way that is cost-effective and convenient.
7
-
8/6/2019 Business Plan Abshar Water
8/21
Final Report 2011
To become a best
manufacturer among the top
tenth at least in 5 years by thehelp of providing best
mineral
water to the end user.
Goal
STRATEGY
1. The qualitative and quantitative
point of view.
2. Get the best mineral water
manufacturer of the city.
3. Provide best and timely supply to
our end user.4. Maximum coverage in an ethical
way.
5. Win to win situation for both(for
our and our customer)
6. Provide best facilities to
employees for their future
PLANNING
1. Office should be on center of the city(gulberg).
8
-
8/6/2019 Business Plan Abshar Water
9/21
Final Report 2011
2. Hire vehicles for distribution.
3. Provide quality products to compete our
competitors.
SWOT Analysis: Internal analysis
External analysis
Internal analysis:
Strengths:
100% balanced mineral water.
A highly ethical environment.
Sophisticated and trained staff.
Weakness:
Distribution
Market Price-Takers
Customer Feedback
Goodwill
Strict competition in market.
External analysis:
Opportunities:
9
-
8/6/2019 Business Plan Abshar Water
10/21
Final Report 2011
offering discounted rates
Targeting under developed areas to increase volume.
Clean water moving towards the need of todays pollutant
environment.
Have great demand.
Threats:
Threat of new entrants.
Discounted rates offer by competitors.
Government Legislations on environmental Issues
PROJECT PROFILE
Opportunity RationaleLahore is a very populous city. Pakistans
population has soared up to
149.50 Million (according to government sources), and at least
one-third of
it is living below the poverty level. Majority of people have no
access to
clean water to drink or proper sanitation facilities. These
posses seriousthreats to health of masses. Moreover the variable
and harsh climate of
Pakistan causes major viral diseases through out the year. This
creates a
great demand for clean water in Lahore. Due to these factors, a
big
investment opportunity exists in this sector. Therefore we
decided to start
with something which has increasing demand of clean water.
Products offered
The product range we would like to offer600 ml bottles (24
bottles per carton)
1.5 liter bottles (12 bottles per carton)
6 liter bottles with carrying handle (4 bottles per carton)
20 liter bottle with stand
10
-
8/6/2019 Business Plan Abshar Water
11/21
Final Report 2011
Project InvestmentThe total cost of the project is Rs. 10
millions (one crore).
Project LocationThe location will be Lahore gulberg area.
Key Success Factors
Some of the Key Success factors that will determine the success
of this project include:
Availability of regular supplies.
A well trained technical staff.
Availability of complete product range.
Reasonable and competitive prices.(may be discounted rates)
INDUSTRY ANALYSIS
Sector CharacteristicsThe review of Pakistani Mineral water
market shows that there are around 150
companies, which are registered with the Ministry of Health. Out
of some 100
manufacturing units operating in the country include 10
multinational.
Multinational mineral water companies have played a vital role
to provide the base forthe growth of the mineral water industry
since the emergence of Pakistan. They have
been enjoying the bulk of the business and are still enjoying
after so many years, thoughtheir collective market share has
dropped significantly.
Sub sector InformationThe mineral water industry has experienced
major growth in recent years. As per
an estimate this industry is growing at 18 % annually. The
Pakistans harsh climate
provides more favorable business opportunities in this
business.
Target customersThe Mineral Water industry is growing in
Pakistan day by day.Restaurants
Educational Institutions
Hospitals
Financial Institutions
Home Delivery (specific areas only)
11
-
8/6/2019 Business Plan Abshar Water
12/21
Final Report 2011
MAJOR COMPETITORS Nestle
Aquafina
Sufi
Aqua Safe
Gourmet
What is the competition in the
selected field?
Competition in quality of product.
Competition in supply.
Competition in price.
Product 100 % Pure Mineral Water
Health Nutrient by Excellence
Made on up-to-date technology
To Maintain optimal levels of Hydration during exercise
Price Relatively lower prices than competitors
Prices according to segments (Income)
12
-
8/6/2019 Business Plan Abshar Water
13/21
Final Report 2011
Price schemes and patterns:
according to competitor price changes
Placement Product Distribution through distributors
Efficient mode for the promotion of the product
They are trying to promote their product through
Paper
Billboards
Paper Advertising:
We will advertise in the newspapers on Sundays. The
newspapers
used are
Nation
News
Dawn
Jang
13
Factory Agents Retailers
Whole sellers Retailers
-
8/6/2019 Business Plan Abshar Water
14/21
Final Report 2011
Why client will buy products from you and not from your
competitors?
The client will buy product from us not from our competitors
because weprovide following facilities;
1. We work in ethical way.
2. Timely supply and daily booking.
3. Give one week credit facility on cheque to our valuable
customer.
4. Provide cheque facility on full payment.
5. Return leakage.
PHYSICAL RESOURCESLAND& BUILDING REQUIREMENT
Land RequirementApproximately 3000 sq/ft. will be required for
installing and erecting a water
plant. It is recommended that the land should be fully
possessed. And the
EquipmentDetails of Office Equipment
14
Rs.
Cost of land 1,000,000
Cost of building 1,500,000.
-
8/6/2019 Business Plan Abshar Water
15/21
Final Report 2011
VehiclesBought 5 vehicles (pick up Suzuki) and following is the
detail expense of per vehicle;
Utilities requirement Electricity
Telephone
PROJECT COSTSThe breakdown of total project cost is in the table
below:
Project Costs Rs.
Land & building 25, 00,000
Cost of vehicles 15, 00,000Raw material (empty bottles)
300,000
Plant & machinery 1,500,000Office Equipment 5,
00,000Preliminary Expenses 50,000
Total Cost 6,350,000
FINANCIAL RESOURCESProject Costs Rs.
15
Rs.Furniture and fixture 2,00,000
Miscellaneous tools & equipments 3,00,000
Monthly Annually
Rs.Cost per vehicle (300,000*5) --- Rs.1500000
Running & maintenance Rs. 80000 960,000
-
8/6/2019 Business Plan Abshar Water
16/21
Final Report 2011
Plant & machinery 1,500,000
Land & building 2,500,000Vehicles 1,500,000
Furniture & Fixture 200,000Miscellaneous equipments
300,000Raw material (empty bottles) 300,000
Marketing expenses 500,000
Advertisement expenses 500,000Debts ------
73, 00,000
Preliminary Expenses 50,000
Total Project Cost 7,350,000
Cash at bank 26,50,000
Total 10,000,000
HUMAN RESOURCEHuman resource requirement for the proposed
project is as under:
Positions Number Salary/month Annual salary
Rs. Rs
Administrative staff:
General Manager 1 40,000 40,000
Other Managers 4 20,000 9,60,000Assistants & others 10 8,000
9,60,000
Technical staff 10 8,000 9,60,000Other subordinates 4 5,000
240,000
Grand Total: 3,160,000
ABSHAR ENTERPRISES
Work sheet for estimated Annual income,
Expenses & profit (loss)
Units sold (liters)
8,00,000 9,00,000 10,00,000
16
-
8/6/2019 Business Plan Abshar Water
17/21
Final Report 2011
(000)Rs. Rs. Rs. Rs. Rs. Rs.
Income 11200 12600 14000Sales income (Rs. 14/ liter)Cost of
goods sold:
Production cost (Rs.4.5/ liter) 3600 4050 4500
Carriage 50 60 70
Depreciation 150 150 150
Total production expenses 3800 4260 4720
Gross profit 7400 8340 9280Other operating expenses:
Salaries 3160 3160 3160
Telephone 300 360 380Insurance 40 45 50
Office expenses 50 55 60
Sales promotion 400 450 500
Travel 50 60 70
Taxes and licenses 80 90 100
Miscellaneous
Total operating expenses 4080 4220 4320
Net profit 3320 4120 4960
ABSHAR ENTERPRISES
Estimated Monthly Expenses & Starting Costs
July 1st, 2008
Estimated Monthly Expenses
(1) (2)
Based on sales How much
17
-
8/6/2019 Business Plan Abshar Water
18/21
Final Report 2011
Cash
of Rs.8,00,000 needed to start
Item per year business
Rs. Rs.
Salary of managers 60000 120000
All other salaries and wages 21000 63000
Rent - -
Travel 4000 12000Advertising 40000 40000
Delivery expenses 30000 90000
Supplies 80000 240000
Recurring inventoryand purchases - -
Telephone 10000 30000
Other utilities 25000 50000
Insurance 4000 8000
Taxes 5000 10000
Interest - -
Running and Maintenance 80000 160000
Legal and other professional
fees - -
Miscellaneous 10000 30000
Starting Cost Have to pay only Once
Rs.
Fixture and equipment:
Telephone, Rs.5000;
Computer,Rs.60000 65000
Decorating and remodeling 30000
18
-
8/6/2019 Business Plan Abshar Water
19/21
Final Report 2011
Installation of fixtures and equipment 15000
Starting inventory 100000
Legal and other professional fees -
License and permits 10000
Advertising and promotion for opening (Part of Advertising
above)
Accounts receivable -Cash 500000
Other 50000
Total estimated cash you need to start with 1,623,000
Organizational Chart
19
-
8/6/2019 Business Plan Abshar Water
20/21
Final Report 2011
A Last Word
20
General ManagerGeneral Manager
Marketing
Manager
Marketing
Manager HR ManagerHR Manager Production
Manager
Production
ManagerStore
Manager
Store
Manager
CEO CEO
Assistant
Manager
AssistantManager
Assistant
Manager
AssistantManager Supervisor
Supervisor Assistant
Manager
AssistantManager
SubordinateSubordinateTechnicalEngineerTechnicalEngineerSubordinate
Subordinate
Plant &
Machinery
Operator
Plant &
MachineryOperator
Other technical
staff
Other technicalstaff
JuniorsJuniors
JuniorsJuniors
-
8/6/2019 Business Plan Abshar Water
21/21
Final Report 2011
Finally, it can be concluded that ABSHAR ENTERPRISES will be a
profitable project,because in this era of education people knows
importance of clean water which avoids
hundreds of diseases.
The sale of mineral water hasregistered on average 200 percent
annual growth in thepast five years in Pakistan, where the middle
class is
also in a rush to join the corporate style of living which
still provides 60 percent revenue to water sellingcompanies and
encourages them to maximize
commercialization of drinking water. The business is
growing in big cities like Lahore, Karachi, Islamabad,
and Peshawar.
21
