DHAATPresented By:Taimur AsgherShariq MehmoodFaizan AhmedYaseen SirajAmeer HamzaMassab Abdullah

DHAAT

DHAATIt's the real thing!

DHAAT

Why prefer Dhaat?

• Natural Resources are depleting day by day, Dhaat can be the substitute of iron

• Cost effective- Cheaper than iron.

• Environment friendly production

DHAAT

Procedure of making Dhaat

Waste and scrap metal is collected

Waste is crushed in crushing machines

Worn-out tires are gathered

These are then melted in furnaces

Both are then mixed in furnaces or mixing machines

The output which we get is Dhaat

MARKETING PLAN

• Newspaper advertisements– Ads in daily Jang and Nawa-e-waqt newspapers

• Sales Representatives– To visit the clients

Target Audience

• Construction Companies• Houses• Buildings

• Pakistan Railways– Areas in Baluchistan and NWFP where lines are in poor condition

• Steel mills

Setting up the Plant

• It will be located in Barkhan city Baluchistan.• 3 acres of plant and 1 acre of warehouse

• Reasons for locating in Baluchistan:– Cheaper land and labor are available– Leading to development of the area– Large quantities of waste are available

Company’s mission

• Employment Opportunities

• Empowerment of the local industry

• Development of the area

• Environment friendly production• Large exhaust fans• Safety equipment for the workers

Company’s Operations• Outsourcing Waste companies to bring waste to the factory.

• Outsourcing tire manufacturers to bring worn-out tires.

• Required Fixed Assets:– 3 acres of land on rent for plant, 1 acre for the warehouse.– 1 large furnace (assumed to be locally manufactured)– 2 crushing machines

• Hiring delivery companies to deliver Dhaat to the end customer.

Financial Highlights

INCOME STATEMENT AND BALANCE SHEET EXTRACTSFINANCIAL YEAR ENDING December 2011 TO December 2015

2011 2012 2013 2014 2015 (PKR millions)

Net Sales 14,286 16,603 22,084 24,778 30,580Cost of Goods Sold 12,761 13,262 18,340 16,435 19,232Gross Profit 1,525 3,341 3,745 8,343 11,348Sell, Gen & Admin Exp. 823 921 806 1,034 1,162Earning before int,tax,dep 702 2,420 2,939 7,310 10,186Depreciation 698 736 663 644 650 EBIT 4 1,684 2,275 6,666 9,537+Other Income 665 1,129 834 1,172 1,792 -interest / Other Expense 489 2,355 1,871 744 946Pre-Tax Profit 179 457 1,239 7,094 10,382 Taxes 77 (95) 215 2,242 3,886Net Income 102 552 1,024 4,852 6,495 AssetsCurrent Assets 13,951 13,663 8,194 16,107 22,862 Long Term Assets 16,201 16,834 15,476 14,829 14,446Total Assets 30,151 30,496 23,669 30,935 37,308LiabilitiesCurrent Liabilities 4,257 3,533 3,593 5,141 5,757 Long Term Loan 17,350 18,521 10,468 9,218 8,593 Other Long Term Liabilities 0 0 40 2,157 2,044Net Worth 8,544 8,442 9,568 14,420 20,915Total Liabilities 30,151 30,496 23,669 30,935 37,308

KEY RATIOS & PROFITABILITY ANALYSIS

KEY RATIOS 2011 TO 2015

2011 2012 2013 2014 2015Sales Growth (%) - 16.2% 54.6% 12.2% 23.4%

EBITD Margin (%) 4.9% 14.6% 13.3% 29.5% 33.3%(earnings before interest, tax, depreciation)

Operating Profit Margin (%) 0.0% 10.1% 10.3% 26.9% 31.2%

Net Profit Margin (%) 0.7% 3.3% 4.6% 19.6% 21.2%

Organizational Hierarchy

CEO

Regional Director

(Punjab)

Regional Director

(Balochistan)

Regional Director

(Sindh)

Regional Director

(KPK)

Regional Director

(Baluchistan)

Production Manager

Sales and Marketing Manager

Sales Representative

1

Sales Representative

2

Sales Representative

3

HR Manager Finance Manager

Regional Director (Punjab, Sindh

and KPK)

Sales and Marketing Manager

Sales Representative 1

Sales Representative 2

Sales Representative 3

HR Manager Finance Manager

SWOT ANALYSIS

SWOT ANALYSISStrenghts• Innovative product• Pioneer in the market• Cheaper in cost• Equally good as compared to its

substitutes.

Weaknesses• Huge risk of failure.

Opportunities• Huge potential for growth.

Threats• Huge probability of new competitors

entering the market, following the success of Dhaat

QUESTIONS?