Upload
arslan-tariq
View
223
Download
0
Embed Size (px)
Citation preview
8/12/2019 Entrepreneurship Organico(Slides)
1/25
You
AHMAD SHIRAZ
FAHAD WAHEED
ARSLAN BABAR
MIAN ARSLAN TARIQ
USAMA FARRUKH
8/12/2019 Entrepreneurship Organico(Slides)
2/25
Market Need
Increasing trend in consumption of safe and organic food in Pakistan
Cheap organic fertilizer to grow organic crops
Organic farmers are purchasing imported fertilizer on higher prices
8/12/2019 Entrepreneurship Organico(Slides)
3/25
You
To be the pioneer in making of cheap and highquality organic fertilizer
Market NeedMarket Need
VISION
8/12/2019 Entrepreneurship Organico(Slides)
4/25
You
Our mission is to provide the organic fertilizer to different
companies in Pakistan using cheap and innovative technology.
We will provide cheap fertilizer which will be environmentfriendly by sustaining high profits and caring for our
employees & suppliers
Market NeedMarket Need
MISSION
8/12/2019 Entrepreneurship Organico(Slides)
5/25
Target Customers & Market Size
8/12/2019 Entrepreneurship Organico(Slides)
6/25
Our Solution
Barrel composting technique
Inexpensive fertilizer by recyclingagricultural waste
Easy availability
8/12/2019 Entrepreneurship Organico(Slides)
7/25
Target Market
Individual Growers ( Farmers)
FORMAL GROWERS (E.G. Mitchells Fruit
Farms)
Gardeners
8/12/2019 Entrepreneurship Organico(Slides)
8/25
Business Model, Go-to-Market
Strategy
8/12/2019 Entrepreneurship Organico(Slides)
9/25
Opportunity/Market size
Total fruit and vegetable farming in Pakistan 1 million acres
Organic farming in Pakistan @ 10% rate100,000 acres
Organic fertilizer consumption / quarter @ 150 kg per acre 15000000kg
Demand growth @ 3 % per year
YEAR KG/ Quarter
2012 15,45,00,00 kg
2013 15,91,35,00 kg
2014 16,39,09,05 kg
2015 16,88,26,32 kg
Source: UNFDP (United Nations Food Development Program)
8/12/2019 Entrepreneurship Organico(Slides)
10/25
Process for barrel composting
8/12/2019 Entrepreneurship Organico(Slides)
11/25
Agricultural waste to be Recycled
Vegetable wastes
Alfalfa hay
Cow manure
Apple pomace
Leaves
Corn stalks
Oat straw
Wheat straw
Paper
Sawdust
Grass clippings
Coffee grounds
Bark
Fruit wastes
Poultry manure (fresh)
Horse manure
Newspaper
Pine needles
Rotted manure
8/12/2019 Entrepreneurship Organico(Slides)
12/25
Temperature At a temperature of 35-50 c organic matter will
decompose about twice as fast as at 130 degrees F.
Moisture For optimum performance, moisture content within the
composting environment should be maintained at 45 percent
Particle Size The ideal particle size is around 2 to 3 inches.
TurningDuring the composting process oxygen is used up quickly by
the microbes as they metabolize the organic matter. As the oxygen
becomes depleted the composting process slows and temperatures
decline. Aerating the compost by turning of barrel should ensure anadequate supply of oxygen to the microbes.
Composting Period In Pakistani conditions composting period
would be 18-21 days.
Conditions for Barrel composting
8/12/2019 Entrepreneurship Organico(Slides)
13/25
Major competitors
Importers (price offered 50 RS/ kg)
Industrial recyclers (42 RS /kg)
Informal producers ( Not selling to market)
8/12/2019 Entrepreneurship Organico(Slides)
14/25
Competitive profile matrix
Key Success Factors weight score Weighted score score Weighted score score Weighted score
Operating cost 0.05 3 0.15 2 0.1 1 0.5
Easy availability 0.05 3 0.15 3 0.15 2 0.1
quality 0.05 4 0.2 4 0.2 3 0.1
Startup cost 0.30 4 1.2 4 1.2 1 0.3
Process complexity 0.05 3 0.15 4 0.2 3 0.15
price 0.50 4 2 1 0.5 2 1
TOTAL 3.85 2.35 2.15
Our Business Importers Urban Recyclers
8/12/2019 Entrepreneurship Organico(Slides)
15/25
SWOT AnalysisSTRENGTHS First Mover Advantage
Low Operating Cost
Easy Availability
Low Price
Low Capital Investment
WEAKNESSES
Low Community Awareness
Low Acceptability
Weak Infrastructure To Support
Agricultural Recycling
OPPORTUNITIES
Vast Market
High Prices Of Imported Fertilizers
Growth Of Organic Farming In
Pakistan
Local food channels are
encouraging people to consumeorganic food
THREATS
Government Regulations
Uncertain Farmers Attitude
8/12/2019 Entrepreneurship Organico(Slides)
16/25
Financials
ORGANICO
Income Statement
Years 2011 to 2013
RS
2011 2012 2013
NET REVENUES PKR 113,475,000.00 PKR 124,822,500.00 PKR 137,304,750.00
COST OF REVENUE PKR 102,807,250.00 PKR 113,087,975.00 PKR 124,396,772.00
% of Revenues PKR 0.91 91% 91%
GROSS PROFIT PKR 10,667,750.00 PKR 11,734,525.00 PKR 12,907,978.00
% of Revenues PKR 0.09 9% 9%
OPERATING EXPENSES
OFFICE RENT PKR 600,000.00 PKR 600,000.00 PKR 600,000.00
SHOP RENT PKR 240,000.00 PKR 336,000.00 PKR 432,000.00
WARE HOUS AND WORK SHOP RENT PKR 500,000.00 PKR 500,000.00 PKR 500,000.00
TRANSPORT CARRIAGE PKR 500,000.00 PKR 600,000.00 PKR 700,000.00
ADVERTISMENT MARKETING PKR 150,000.00 PKR 100,000.00 PKR 500,000.00
MISCELLENOUS PKR 600,000.00 PKR 600,000.00 PKR 650,000.00
SALARIES AND ADMINISTRATION PKR 2,500,000.00 PKR 2,800,000.00 PKR 3,100,000.00
TOTAL OPERATING EXPENCES PKR (5,090,000.00) PKR (5,536,000.00) PKR (6,482,000.00)
EARNINGS BEFORE INTEREST & TAXES PKR 5,577,750.00 PKR 6,198,525.00 PKR 6,425,978.00
INTEREST INCOME / (EXPENSE) PKR (200,400.00) PKR (200,400.00) PKR (200,400.00)
NET EARNINGS BEFORE TAXES PKR 5,377,350.00 PKR 5,998,125.00 PKR 6,225,578.00
TAXES PKR (2,150,940.00) PKR (2,399,250.00) PKR (2,490,231.20)
NET EARNINGS PKR 3,226,410.00 PKR 3,598,875.00 PKR 3,735,346.80
8/12/2019 Entrepreneurship Organico(Slides)
17/25
Cost of Goods Sold
Direct Inventory
Cost:
STARTER PKR 13,500,000.00 3000/UNIT
ACCELATOR PKR 6,750,000.00 4500/UNITMOISTURE METERS PKR 3,750,000.00 2500/UNIT
TUMBLER RAW MATERIAL PKR 2,250,000.00 1500/UNIT
PACKING MATERIAL PKR 848,250.00 15/PER BAG
ORGANIC FERTILIZER PKR 73,125,000.00 25/ PER KG
Other Raw
Material PKR 324,000.00
Direct Labour PKR 1,260,000.00 7000//MONTH
Over Head Cost PKR 1,000,000.00GRAND TOTAL PKR 102,807,250.00
mailto:73125000@25/KGmailto:73125000@25/KGmailto:73125000@25/KG8/12/2019 Entrepreneurship Organico(Slides)
18/25
Operating Expenses
OFFICE RENT PKR 600,000.00
SHOP RENT PKR 240,000.00
WARE HOUS AND
WORK SHOP RENT PKR 500,000.00
TRANSPORT
CARRIAGE PKR 500,000.00
ADVERTISMENT
&MARKETING PKR 150,000.00
MISCELLENOUS PKR 600,000.00
SALARIES AND
ADMINISTRATION PKR 2,500,000.00
INTEREST EXPENSE PKR 200,400.00
GRAND TOTAL PKR 5,290,400.00
8/12/2019 Entrepreneurship Organico(Slides)
19/25
Operating Revenues
FROM RESIDUES
4500 STARTERS PKR 14,400,000.00 3200/UNIT
1500 ACCELATOR PKR 7,200,000.00 4700/UNIT
1500 MOISTURE METER PKR 4,050,000.00 2700/UNIT
1500 TUMBLERS PKR 3,000,000.00 2000/UNIT
FROM ORGANIC GROWERS
2827500 KG or 56550 Bags ORGANIC FERTLIZER PKR 84,825,000.00 30/KG
GRAND TOTAL PKR 113,475,000.00
8/12/2019 Entrepreneurship Organico(Slides)
20/25
Initial capital Investment
Advance Payment Building ( workshop &ware house) PKR 1,000,000.00
Building Renovation PKR 600,000.00
Packing Machine PKR 20,000.00
Tools & Equipments PKR 500,000.00
Furniture PKR 100,000.00
Initial Reservers PKR 2,815,866.00
Advance Payment Retail Shops PKR 1,000,000.00
Advance Payment Business Office PKR 500,000.00
Marketing Training & Awarness Budget PKR 500,000.00
Grand Total PKR 7,035,866.00
8/12/2019 Entrepreneurship Organico(Slides)
21/25
FINANCIAL PLANNING FIGURES
PAY BACK PERIOD
2.06
years
NPV 3524765
IRR 22.76%
Initial capital Investment
8/12/2019 Entrepreneurship Organico(Slides)
22/25
Marketing objectives
Main objectives of our marketing would be
1. support in establishing brand and awareness2.Enhance channel relationship.
Total investment = RS 500,000
8/12/2019 Entrepreneurship Organico(Slides)
23/25
Marketing strategy
0
20,000
40,000
60,000
80,000
100,000
120,000
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Investment
Investment
8/12/2019 Entrepreneurship Organico(Slides)
24/25
Conclusion(Economic benefits)
Waste recycling culture will be promoted in oursociety
Trade deficit will decrease
Food inflation will be reduced Promotion of safe and hygienic food in our
society
Financial support to low income farmers andresiduals of village in Pakistan
Per capita income in villages will increase
8/12/2019 Entrepreneurship Organico(Slides)
25/25