Moringa Products Prouction Unit

MORINGA
PRODUCTS
PROUCTION
UNIT
MORINGA PRODUCT PRODUCTION UNIT 2016
1 EXECUTIVE SUMMARY
Moringa Product Production Unit (MPPU) is a commercial manufacturing unit for
producing moringa products such as moringa edible oil, moringa powder and moringa press
cake. The project plant should be located at industrial state and where there is less
transportation cost for procuring raw materials. Considering this factors such as availability
of industrial land and proximity to India for its supply of raw materials, the production unit
will be suitable to be located in Phuntsholing Dzongkhag. The product will be distributed all
over Bhutan.
For the production of the moringa products, required moringa seeds and leaves will be
procure from Tamil Nadu, Coimbatore base in India. In Tamil Nadu, moringa trees grow
naturally given the country´s suitable land and excellent climatic conditions. In places like
Sarpang, Samdrupjongkhar (sub-tropical foothills) etc., moringa trees are found grown but
not in large proportion. So the business enterprise plans to import.
The proposed business will procure quality machines for producing moringa seed oil and
moringa leaf powder. Required machines will be imported from China as well as India. As for
the raw materials, it will be imported from suppliers of India, Tamilnadu.
Moringa is one of the most versatile plants, out of which a number of products can be made
for a variety of purposes, such as tea powder, vegetable oil, cosmetics, nutritional
supplements and medicine. Globally, the demand for moringa products, such as moringa Leaf
Powder and moringa oil, has been growing. Moreover, international organizations and
institutions are exploring the
FINANCIAL SUMMARY AS OF YEAR 1 best ways on how to use
moringa as a nutritional
4,809,600 supplement and in food
4,496,016
fortification. However, in
Bhutan the use of moringa
has not been explored.
1,291,825 1,172,550 MPPU needs to avail BTN
322,956 460,238
1,291,825 as an 80% loan
and inject 20% equity of BTN
80% Debt 20% Equity Fixed Operational Total Sales Net Profit
Capital cost 332,956 to realize its
establishment of the
production center. The initial investment of the proposed business is BTN 1,614,781 which
comprises of the startup cost of BTN 1,262,550 and working capital of BTN 352,231.
The total land requirement, including provision for open space is 30 decimals, of which 20
decimals will be covered by production unit (semi-permanent building). The products will
be distributed to wholesalers, middleman, retailers or to the end consumers in Bhutan.
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The project plant will employ 6 people and this would provide employment opportunities
and contribute towards the livelihood improvement of the people in the community and also
train them in their specific fields.
Moringa plant have a high nutritional value and contain amino acids, which are rarely found
in other plants. While data differ substantially, moringa leaves were found to contain a high
concentration of vitamin A (approximately ten times the amount found in carrots), vitamin
B, vitamin C (at least eight times the amount present in oranges), minerals (in particular
iron), and the sulphur-containing amino acids methionine and cystine. The leaves are also
an outstanding source of calcium (at least four times the amount obtained from milk),
protein, and potassium (at least three times that gained from bananas). The composition of
the amino acids in the leaf protein is well-balanced; and carbohydrate, fat and phosphorous
contents are low.
Moringa leaves can be consumed fresh, cooked or dried. Moringa powder is nutritious, is
easy to make, easy to store and easy to use. The seeds can be used for the production of oils
and their casing can be used for the production of meal. The consumption of moringa
products in the country is bound to increase with an increase income of the population and
development of taste and nutritious to the products.
In the initial year, the business aims on producing 2,880 liters of Moringa seed oil, 576
numbers of 500g leaf powder and 4,320kg of press cake which will be worth BTN 4,809,600.
The press cake is produced after the seeds are pressed in the cold press oil extraction
machines for producing moringa oil. The press cake is used as the fodder for animals which
is very nutritious.
The plant has projected to 7,041,735

6,401,578
achieve total sales of BTN 5,819,616
5,290,560
7,041,735 against the 4,809,600
6,032,716
operational cost of BTN 5,047,794 5,500,665
4,257,863 4,634,709
6,032,716 by the end of the fifth
financial year. The business 806,218 971,891 1,156,305 1,310,745
657,483 564,353 680,324 809,414 917,521
460,238
would increase its yearly sales
(on an average) by 9.09% Year 1 Year 2 Year 3 Year 4 Year 5
projected for five years.
Net Profit Net Income
Besides its healthy financial Expenditure Cost Total Sales
standing due to its strategic
investment and management plan, MPPU achieves its break-even point at unit 29,076 by 3
years and 8 months and enjoys healthy liquidity with the payback period of 3 years and 7
months, net present value (NPV) of BTN 278,567 and an internal rate of return (IRR) of 16%.
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CONTENTS
1 EXECUTIVE SUMMARY ................................................................................................................................................ 1
2 VISION ................................................................................................................................................................................ 5
3 MISSION ............................................................................................................................................................................. 5
4 THE BUSINESS PROFILE ............................................................................................................................................. 5
5 BUSINESS BACKGROUND ........................................................................................................................................... 6
6 ABOUT MORINGA PLANT ........................................................................................................................................... 7
6.1 Health Benefits of Moringa ............................................................................................................................... 7
6.2 Other Benefits of Moringa ................................................................................................................................. 8
7 KEYS TO SUCCESS.......................................................................................................................................................... 9
7.1 AVAILABILITY OF THE REQUIRED PEOPLE ............................................................................................. 9
7.2 LOCATION OF THE BUSINESS ......................................................................................................................... 9
7.3 AVAILABILITY OF LAND.................................................................................................................................... 9
7.4 STRENGTH............................................................................................................................................................... 9
7.5 WEAKNESS .............................................................................................................................................................. 9
7.6 OPPORTUNITY ....................................................................................................................................................... 9
7.7 THREAT .................................................................................................................................................................... 9
8 SWOT ANALYSIS ............................................................................................................................................................ 9
9 MEANS OF FINANCING .............................................................................................................................................. 10
TABLE: TOTAL INVESTMENT REQUIREMENT SUMMARY ............................................................................. 10
10 MARKETING PLAN ................................................................................................................................................... 10
10.1 PRODUCT DESCRIPTION .............................................................................................................................. 10
10.2 MARKET SEGMENTATION .......................................................................................................................... 11
10.2.1 Competitor Analysis ................................................................................................................................. 11
10.2.2 Competitive Advantages ......................................................................................................................... 12
10.2.3 Market Size and Potential....................................................................................................................... 12
11 DEMAND AND SUPPLY ANALYSIS ..................................................................................................................... 12
12 ENTERPRISE MARKETING STRATEGY ............................................................................................................ 12
12.1 MARKETING MIX STRATEGY ..................................................................................................................... 13
12.1.1 Products......................................................................................................................................................... 13
12.1.2 Price................................................................................................................................................................. 13
12.1.3 Place ................................................................................................................................................................ 13
12.1.4 Promotion ..................................................................................................................................................... 13
12.1.5 People ............................................................................................................................................................. 13
12.1.6 Process ........................................................................................................................................................... 13
12.1.7 Physical Evidence ...................................................................................................................................... 13
10 MANAGEMENT PLAN .............................................................................................................................................. 14
ROLES AND RESPONSIBILITIES ................................................................................................................................. 14
11 MACHINERIES AND RAW MATERIALS ............................................................................................................ 15
11.1 MACHINES .......................................................................................................................................................... 15
11.2 RAW MATERIALS ............................................................................................................................................ 15
12 PRODUCTION PROCESS ......................................................................................................................................... 16
12.1 MORINGA OIL EXTRACTION PROCESS .................................................................................................. 16
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12.2 MORINGA LEAF POWDER MAKING PROCESS..................................................................................... 17
13 SAFETY MEASURES IN THE WORKPLACE ..................................................................................................... 18
13.1 SAFETY MEASURES FOR LABOR .............................................................................................................. 18
13.2 PERSONAL SAFETY ........................................................................................................................................ 18
13.3 NOISE.................................................................................................................................................................... 18
13.4 PERSONAL PROTECTIVE EQUIPMENT .................................................................................................. 18
13.5 FIRST AID............................................................................................................................................................ 18
14 FORECAST .................................................................................................................................................................... 19
14.1 PRODUCTION CAPACITY.............................................................................................................................. 19
14.2 SALES FORECAST ............................................................................................................................................ 19
15 FINANCIAL PLAN ...................................................................................................................................................... 20
15.1 TOTAL PROJECT COST .................................................................................................................................. 20
15.2 FIXED ASSETS COST ....................................................................................................................................... 21
15.3 NET VALUE OF ASSETS ................................................................................................................................. 22
15.4 INVENTORY COST PROJECTION ............................................................................................................... 22
15.5 MANPOWER COST .......................................................................................................................................... 23
15.6 LOAN PAYMENT FOR FIVE YEARS ........................................................................................................... 23
15.7 TOTAL OPERATIONAL EXPENDITURE PROJECTION ...................................................................... 24
16 FINANCIAL ANALYSIS ............................................................................................................................................. 25
16.1 PROJECTED INCOME STATEMENT .......................................................................................................... 25
16.2 PROJECTED CASH FLOW STATEMENT .................................................................................................. 26
16.3 PROJECTED BALANCE SHEET STATEMENT ........................................................................................ 27
16.4 VALUE ADDITION & UNIT COST OF PRODUCTION .......................................................................... 27
16.5 RETURN ON INVESTMENT AND EQUITY .............................................................................................. 27
16.6 COST DATA ANALYSIS................................................................................................................................... 28
16.7 COST BENEFIT ANALYSIS ............................................................................................................................ 28
16.8 NET PRESENT VALUE (NPV) and INTERNAL RATE OF RETURN (IRR) ................................... 28
16.9 PAY BACK PERIOD .......................................................................................................................................... 28
16.10 BREAK EVEN ANALYSIS ............................................................................................................................... 29
17 CONCLUSION .............................................................................................................................................................. 30
18 ANNEXURES ................................................................................................................................................................ 31
18.1 Breakdown Cost for Construction of Plant House and Labour Cost........................................... 31
19 PROJECT TIMELINE ................................................................................................................................................. 32
20 FINANCIAL INSTITUTION (FINANCIAL PLANS AND ANALYSIS) ......................................................... 33
21 LODEN (FINANCIAL PLANS AND ANALYSIS) ............................................................................................... 44
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2 VISION
“To be leading producer of Moringa products in the country”
3 MISSION
 To provide consumers with high quality Moringa products at a reasonable price

 To create employment opportunities especially to the Bhutanese
 To create self-sufficiency and sustainable business enterprise
 To produce moringa products in commercial scale
 To contribute towards the livelihood of the people of the community through
employment.
4 THE BUSINESS PROFILE

PROPOSED NAME OF THE BUSINESS Moringa Product Production Unit
PROPOSED BUSINESS TYPE Production and Manufacturing
PROPOSED ACTIVITY Production of Moringa Products
PROPOSED STARTUP COST BTN 1,262,550
PROPOSED WORKING CAPITAL BTN 332,956
TOTAL INVESTMENT REQUIRED BTN 1,614,781
MEANS OF FINANCING 80 % Debt and 20% Equity
80% DEBT BTN 1,291,825
20% EQUITY BTN 332,956
PROPOSED LOCATION OF THE
Industrial Estate based in Phuntsholing Dzongkhag
BUSINESS
1. Moringa Oil
PROPOSED PRODUCTS 2. Moringa leaf powder
3. Moringa press cake
Total 30 decimals - Lease (20 decimals for the semi-
LAND REQUIRMENT
permanent building and 10 decimals for free space)
POWER REQUIREMENT BTN 15,000 Monthly
Black Spider Co. Ltd and Taizhou Quanta Machinery
Equipment Co. Ltd. in China- Machinery
SUPPLIER DETAILS Blenzor, Shri Krishna export and RK imports &
exports in India. Suppliers and enterprises in
Bhutan- Raw materials
1 Manager
1 Accountant
2 Machine Operators
PROPOSED STAFF REQUIREMENT
1 Marketing and Sales person
1 Assistant (Manual Worker)
Others on Requirement Basis
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5 BUSINESS BACKGROUND
Moringa Product Production Unit will be strategically located with its production unit in
Industrial Estate under Phuntsholing Dzongkhag. The proposed business plant will produce
2,880 liters of Moringa seed oil, 576 numbers of 500g leaf powder and 4,320kg of press cake
in the first year alone to market and distribute to wholesalers, middleman, retailers or end
consumers in the country.
The project plant will procure required machinery from Blenzo based in India and Black
Spider Co. Ltd and Taizhou Quanta Machinery Equipment Co. Ltd based in China, namely:
1. SF universal stainless steel grinder (SF 180) (China)

2. Automatic screw oil press machine (ZZ-60) (China)
3. 2 Head Liquid Filler with Single Head Capper (Semi-auto) (India)
In Bhutan, moringa products consumption has not been explored. People of Bhutan
consumed all imported vegetable oils such as sunflower oil, soya bean oil, olive oil etc.
The production of moringa oil is a complex process and results in high production costs. This
renders the product uncompetitive compared to other edible vegetable oils, such as palm
and sunflower. Therefore, moringa oil is currently only used and traded as exotic vegetable
oil in the cosmetics industry. This knowledge could be built upon for starting a small scale
production of moringa oil in Bhutan.
80% production capacity and only 25 workings day for each month with 6 hours each day
has also been considered in the production process. The proposed business has projected its
selling price minimum in order to avoid over estimation of sales.
In the first year, the proposed business plans to construct a semi-permanent building on 15
decimal of land (total 30 decimals – lease). The lease land will cost Nu. 5 per sq. ft. per year
which means 30 decimals (13,068 sq. ft.) will cost Nu. 65,340 per year. Most of the products
will be sold through middleman, wholesalers, retailer or end consumers. MPPU will market
through both order and direct sales along with the delivery services. The production unit
will produce on a regular basis. This will help the business carry forward its subsequent
financial periods without any problem.
The enterprise will discourage Bhutanese importing edible oil from other countries. We also
see marketing our products in other countries as we gradually gain market shares and win
the hearts of Bhutanese markets.
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6 ABOUT MORINGA PLANT

Moringa name is derived from murungai/muringa, the Tamil/Malayalam word for
drumstick (scientific name, Moringa oleifera). “Moringa” or “Malunggay” is an Indian tree that
also grows in Asia, Africa, South America, the Caribbean and Oceania.
Moringa also known as the Miracle Tree is a multipurpose plant, as the leaves, pods, fruits,
flowers, roots and bark of the tree can be utilized. It is also referred to as ’Drumstick Tree’ by
the Britishers.
Trees can be easily grown from seed or from cuttings. Temperature ranges are 25-35 degrees
Celsius (0-95 degrees Fahrenheit), but the tree will tolerate up to 48 degrees in the shade
and it can survive a light frost. Moringa can grow in dry, sandy or poor soils.
If rainfall is continuous throughout the year, Moringa trees will have a nearly continuous
yield. It can reach up to 3 meters in its first year and can reach up to height of 10–12 m (32–
40 ft).
6.1 Health Benefits of Moringa

There are many benefits of the moringa tree, but the health benefits are the most important.
Research has proved that various parts of the moringa tree can be used to cure a minimum
of 300 diseases. Some of the health benefits are:
 Moringa is rich in Vitamin A. It contains ten times more Vitamin A or beta-carotene

than carrots. Hence, it is a weapon against blindness.
 It is also a rich source of Vitamin C ten times more than oranges.
 Normally milk is said to be a rich source of calcium but the amount of calcium present
in moringa leaves is way higher than in milk. The moringa leaves are said to contain
at least four times the protein present in milk.
 Bananas are a rich source of potassium. But moringa leaves contain three times more
potassium than bananas. Along with potassium, zinc is also found in large quantities
in moringa.
 If moringa leaves were to be eaten by one and all, the world will be free of anemia as
it contains three times more iron than spinach.
 With all the junk food eaten these days, many people face problems of high
cholesterol. Moringa helps in balancing the cholesterol levels in the body.
 Essential Amino acids are also found in moringa.
 Moringa is also said to balance sugar levels, hence it is helpful in the fight against
diabetes.
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 The body's natural defense mechanism increases with the consumption of moringa
in the daily diet pattern. Since it is an immunity-stimulant, it is prescribed for AIDS
afflicted patients.
 Moringa leaves can be consumed to stimulate metabolism. It is also said to have
digestive powers.
 It is a nutrition booster and is known to promote a feeling of well-being in people.
 If you are looking for non-sugar based energy, then moringa leaves is the answer.
Thus, it will also help in the weight loss process.
 The cell structure of the body is stimulated by the moringa leaves. It is especially
useful for lactating mothers. The consumption of moringa has shown dramatic
increase in the quantity of breast milk.
 It is also famous for its anti-bacterial properties.
 The paste of the moringa leaves is said to beautify the skin and is hence applied by
women regularly.
 It protects the liver and kidneys.
 It can also be used as a water purifier.
6.2 Other Benefits of Moringa

Along with the health benefits of moringa, there are other benefits to it as well. They
are:
 It can be used as a source of biofuel.

 Cooking oil can also be produced from moringa tree. The health benefits of moringa
oil, can be compared to sunflower oil and olive oil.
 It is used in the manufacture of cosmetics and personal care products. Perfumes and
aromatherapy oils are also manufactured from moringa seeds. The flowers of the
moringa plant can be used in making herbal tea, for they add a refreshing aroma to
the tea.
 Moringa contains more than 90 nutrients and 46 types of antioxidants. With all the
health benefits of moringa, it can easily be termed as the most nutritious plant on the
face of the earth.
 There are no side-effects of moringa tree leaves which have been proved till date. At
the same time, it can be consumed by small children and adults alike. Therefore, many
people have started using it in porridge, pastas, breads, etc., to reap the everlasting
health benefits of the extraordinary 'Moringa'.
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7 KEYS TO SUCCESS
7.1 AVAILABILITY OF THE REQUIRED PEOPLE
MPPU will employ qualified 6 people as there is always an in increase in number of people
searching for jobs. Doing so would provide employment opportunities and contribute
towards the livelihood improvement of the people in the community and also train them in
their specific fields
7.2 LOCATION OF THE BUSINESS

The location of the proposed business with its production unit established in Phuntsholing
Industrial Estate has numerous competitive advantages. The first one is that, the production
unit will be located at the Industrial Estate which means it will be far from human
settlements. And the most important is that, Phuntsholing being near to India has an
advantage in importing its raw materials at an affordable price.
7.3 AVAILABILITY OF LAND

The project needs to be leased 30 decimal of land in the industrial estate under Phuntsholing
Dzongkhag. The semi-permanent building will have a plinth area of 15 decimals. The cost for
the lease land is Nu. 3 per sq ft, which means 30 decimals (13,068 sq ft) will cost Nu. 65,340.
8 SWOT ANALYSIS
7.4 STRENGTH 7.5 WEAKNESS
 Location of the proposed business  Inadequate fund to start up the
 Market not yet explored, and the market business
is guaranteed  Poor production technology and
 Monopoly market capacity to improve the products
 Improvement on the market demand because of lack of finance
through positive advertisements and  Inadequate knowledge and skills
direct contact to potential market  Untrained or semi-skilled labor
 The price of our products which the
lowest sector can afford to purchase.
7.6 OPPORTUNITY 7.7 THREAT

 Increasing the production capacity to  Enter of homogeneous manufacturing
meet the production target unit
 The opportunity to satisfy the curiosity  Import of same products from India at
of the consumers because of its cheaper rates
reputation to be a very nutritious plant  Shifts in consumers tastes away from
 The opportunity of increasing the company’s products
popularity trend in Moringa products  Lack of government commitment and
and the increasing demand both locally support to promote Moringa
and internationally
9
9 MEANS OF FINANCING
The total projected cost of the business consists of startup cost and working capital.
TABLE: TOTAL INVESTMENT REQUIREMENT SUMMARY

PARTICULAR AMOUNT
TOTAL PROJECT COST 1,262,550
WORKING CAPITAL 352,231
TOTAL INVESTMENT 1,614,781
20% EQUITY 332,956
80% LOAN 1,291,825
PARTICULARS MONTHLY COST

Advertising 3,000
Delivery expenses 3,000
Insurance 2,500
Inventory purchases 213,995
Miscellaneous 1,000
Payroll 64,000
Professional fees 2,000
Rent or lease 5,445
Taxes and licenses 2,500
Utilities & telephone 3,000
Others 28,000
TOTAL 352,231
Note: The production unit will produce on a regular basis. So for the total investment calculation, only one
month’s working capital is taken into consideration.
10 MARKETING PLAN
10.1 PRODUCT DESCRIPTION
Moringa Leaf Powder can be added to any food or beverage and it will increase the vitamin,
mineral and protein content. For healthy individuals, a few spoonful of Moringa Leaf Powder
can be added to any meal to make it more nutritious. Since the nutrient content of Moringa
Leaf Powder decreases if exposed to heat, add the powder after the food or drink has been
prepared, just before serving.
Moringa Leaf Powder has the greatest impact on those who are more vulnerable:
malnourished children, pregnant or lactating women, children at weaning age, HIV/AIDS
patients, and the elderly. Malnourished children ages 1-3 years should consume three
10
rounded tablespoons (25g) of Moringa Leaf Powder each day. Pregnant or lactating women
should consume six rounded tablespoons (50g) of Moringa Leaf Powder each day.
Moringa Oil or Ben oil is obtained by pressing the seeds of the Moringa oilefera tree. The
Moringa seeds oil (called ben oil, from the high concentration of behenic acid contained in
the oil) can be used in cooking, cosmetics, and lubrication...
Traditionally it is used for cooking and in other food preparations. Moringa oil has
tremendous cosmetic value and is used in body and hair care as a moisturizer and skin
conditioner. It can be used for perfume base as a fuel and for oiling machinery. Moringa oil
can also be used to produce soap. Moringa oil is light and spreads easily on the skin. It is best
for massage and aromatherapy applications.
The product left after the production/extraction of moringa oil from the seeds known as
press cake is used as protein supplement. It is rich in quality and 100% free from any
contaminations. It contains 60% of protein content and all the essential amino acids.
Moringa Product Production Unit will produce the following products:

Sl. No Particular (Moringa Products)
1 Moringa Oil
2 Moringa Leaf Powder
3 Moringa Press Cake
10.2 MARKET SEGMENTATION

The moringa oil, moringa leaf powder and moringa press cake are the first products to be
launched. The products will be distributed all over Bhutan through wholesalers, middleman,
retailers or to end consumers at affordable costs. The market for moringa products are not
yet explored in Bhutan. Allowing 80% production capacity, the products wil be sold at the
affordable price that even lower and middle income family can afford to purchase it.
10.2.1 Competitor Analysis

Currently, the plant will enjoy the monopoly market of this unique product in Bhutan.
Although competitors could penetrate into the market in future with their food supplements
and multi-vitamin products. These competitors could somehow complement our Moringa
food supplement in other forms, but not its extremely low prices.
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10.2.2 Competitive Advantages

The number one of selling advantage of our Moringa products is its uniqueness. Number two
selling point is it is already proven of its well-known multi-nutrients that no other fruits or
vegetables can ever have. Its rare powers of medicinal properties and enormous vitamins
will not be compared to any nutritious fruit or vegetable that one needs to combine all their
nutrients, to equal wonders and energy giving properties. It is like growing vitamins at your
doorstep.
10.2.3 Market Size and Potential

Judging on the present status of our products being the sole producer of Moringa products
in the country, within a year’s time, our target market of region wide consumers will expand
and grow, that the planned sole factory for production will not be able to accommodate the
markets demand.
11 DEMAND AND SUPPLY ANALYSIS

With the change in the living standards of the people in the country, people are becoming
more health conscious and they want healthy food and people are willing to pay a large
amount of money for the nutritious products in order to keep them healthy.
There is a huge market demand for healthy food in Bhutan but the demand in the country is
currently met by the supplies that are imported from India, resulting in significant outflow
of rupees. People of Bhutan consumed and depends on all imported vegetable oils such as
sunflower oil, soya bean oil, etc.
In Bhutan, moringa products consumption has not been explored. The proposed business
will explore the moringa products in the country and the health benefits of the moringa
products. In places like Sarpang, Samdrupjongkhar (sub-tropical foothills) etc., moringa
trees are found grown but not in large proportion.
12 ENTERPRISE MARKETING STRATEGY

In the case of the proposed business, there are no competitors within the country though the
competition would be mainly from importing similar products from other countries.
Therefore, the proposed business plans to do innovative, aggressive and strategic marketing
through use of broadcast and print media. The enterprise will also create its online presence
through the social networks and website.
At the same time, it is imperative that selling and distribution of the products is a vital
element of marketing strategy. Sometime goods take lengthy route to reach end customer.
Therefore, MPPU plans to have links with all wholesalers and distributors in the country to
sell its products.
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12.1 MARKETING MIX STRATEGY

The strategy will help Moringa Product Production Unit in getting the right products and
services to the customer at right price, at right place and at right time. In line with this, the
7ps’ of the proposed business are as follows:
12.1.1 Products
The products dealt for the sales are moringa oil, moringa leaf powder and moringa press
cake.
12.1.2 Price
The price of the products is dependent much on cost of production particularly the cost of
raw materials and other overhead costs. However, the utmost care will be considered to
make the price competitive or at least affordable by strategizing “penetrative price method”.
The price offered will be inclusive of nominal profit. Knowing such enticing prices, credit
sales will not be entertained under any circumstances but in the future the credit schemes
will be offered.
12.1.3 Place
The products will be distributed throughout Bhutan through wholesalers, middleman,
retailer where people can pick and pay or to end consumers.
12.1.4 Promotion
The promotion ability of business will be major concern especially during business
inception. Therefore, a decent marketing plan of frequently advertising in Kuensel and other
media will be done. Huge promotion will be also done through social media.
12.1.5 People
The employees of this business will be trained professionally to handle customers’
complaints and suggestions. Indeed, any customer complaint will be taken as positive
criticism.
12.1.6 Process
The process of delivering goods and services will always be with right attitude. In this
connection issues like waiting time, product information, product display and attitude will
be considered to achieve sales target.
12.1.7 Physical Evidence

An efficient service can’t be felt unless it is delivered and acknowledged by the end customer.
Therefore, it’s imperative that the proposed business will have one sale outlet in
Phuntsholing town to cater to local customers.
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10 MANAGEMENT PLAN
PARTICULARS NO OF REQUIRED PEOPLE
Manager 1
Accountant 1
Machine Operator 2
Marketing and Sales person 1
Assistant (Manual Helper/Worker) 1
Part-time labor and others Requirement Basis
TOTAL 6
The business enterprise needs to recruit 6 people in the various capacities for specific roles.
The enterprise will (which is inevitable and the most important) further train and orient the
recruits in their areas of work for the smooth operations.
ROLES AND RESPONSIBILITIES
Manager: Responsibilities to manage the business, enter into agreement, sign contract,
strike deal, supervise and manage overall business operations.
Accountant: He/she will keep the daily records of the business.
Machine Operator: They will operate the machines.
Marketing and Sales person: He/she will be responsible for the marketing plan, campaigns
and developing new innovative ways to market the products and selling of products within
agreed timescales.
Assistant (Manual Helper/Worker): They will help the machine operators and package &
labelling the finished goods.
Part-time Labor and Others: Loading, unloading, transporting, maintenance, etc.
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11 MACHINERIES AND RAW MATERIALS

11.1 MACHINES
The machines will be purchased from Blenzo based in India and Black Spider Co. Ltd and
Taizhou Quanta Machinery Equipment Co. Ltd based in China.
Sl. No Machinery Price in USD Price in Nu.

1 SF universal stainless steel grinder (SF 180) 1,050 70,350
2 Automatic screw oil press machine (ZZ-60) 2,750 184,250
2 Head Liquid Filler with Single Head Capper
3 (Semi-auto) 178,500
TOTAL 433,100
Note:
 Selling rate of a dollar has been considered at Nu. 67(Latest exchange rate).
 The details and price quotation of the machineries has been attached.
11.2 RAW MATERIALS

The raw materials will be purchased from suppliers from India (Shri Krishna export and RK
imports & exports) as well as Bhutan and other related suppliers as per the requirements.
PARTICULARS UNIT COST

COUNTRY
Moringa Seeds (kg) 275 India
Moringa Dried Leaf (kg) 120 India
PET Bottle (1 ltr) 3.50 India/Bhutan
Bottle cap (pcs) 0.50 India
Cardboard Carton (Pcs) 6.00 India/Bhutan
Polythene Bag (Pcs) 0.50 India/Bhutan
Miscellaneous (as per requirements)
Note: The price of the raw materials differs from suppliers to suppliers. MPPU will procure the raw
material as per the requirement base on quantity.
15
12 PRODUCTION PROCESS
12.1 MORINGA OIL EXTRACTION PROCESS
The following are the steps to take in extracting moringa oil using the oil press machine.
Shell the Moringa Seeds

Shelling the moringa seeds in order to remove the seed coats
Pour the shelled seeds on the receiving funnel

The shelled seeds are poured into the receiving funnel of cold press machine
Allow the oil to settle for a few days thereby allowing for sedimentation
Sedimentation is done before bottling to remove water molecules that will make oil become rancid!
Decantation
Decant the oil into some clean container, leaving the sediments behind
Bottling/Packaging
Finally, bottling/packaging is done by filling and capping machine
Process- Cold press process is one of the easiest ways to extract moringa oil from the tree
seeds. Shelling machine may be electrically operated or manually operated for removing the
seeds coats. It is best practice to extract oil from freshly shelled seeds. In case you leave the
seeds for a lengthy duration after shelling before oil extraction, you will get dark colored oil
only.
Allow the machine to run for a few minutes and then pour the shelled seeds on the input
funnel. Within few minutes oil and seed cake comes out through different outlet. Pure virgin,
cold pressed ben oil is a golden yellow color. Allow the oil to settle for 2-3 days where it will
go for sedimentation. When you do not allow for sedimentation before bottling, the oil will
contain water. This may affect stability of this oil and its properties. Normally 1 kg of quality
moringa oleifera seeds yields 400ml of oil. In case the seeds are roasted brown, you will get
more volume of the oil.
Decant the oil into a clean container, without disturbing the sediments in the bottom. Use a
separating funnel or fine sieve filter to remove moisture and other impurities. The oil
extracted from quality organic seeds should be free from metallic impurities and microbes.
The oil extracted through cold press process is free from parabens, synthetic coloring agents,
additives etc. As the seeds are procured from organic farms, they oil will be free from
germicides, pesticides and insecticides.
16
12.2 MORINGA LEAF POWDER MAKING PROCESS

For the processing of moringa leaf powder, the moringa dried leaf will be purchased directly.
The following are the steps to take in processing moringa leaf powder using the universal
stainless steel grinder machine.
Milling the Moringa Dry Leaves
Mill dry leaves using a univeral stainless steel grinder machine
Sieving the Moringa Powder

Sieve the Moringa leaf powder to produce desired particle/screen size
Drying the Moringa leaf powder

Moringa leaf powder strongly attracts moisture and the product can reabsorb humidity during or
after milling
Packaging and Storage moringa Powder
Labelling
Process: Sieve the Moringa leaf powder if needed. The fineness of the product will depend
on the size of the screen used in milling. If too coarse, sift using a sifter with the desired
screen size. Recommended moringa powder particle sizes are coarse (1.0 mm – 1.5 mm), fine
(0.5 mm – 1.0 mm) and very fine (0.2 mm – 0.5 mm).
Moringa leaf powder strongly attracts moisture and the product can reabsorb humidity
during or after milling. for this reason, moringa leaf powder should be dried at 50ºc for 30
minutes to reduce moisture content considerably below 7.5%. Moringa leaf powder can
easily be contaminated by moulds as it strongly attracts moisture. In addition, finely milled
powder makes it easier for bacteria to penetrate the particles. The temperature and humidity
must be controlled in the packaging room, to avoid re- humidification of the product.
After drying, the moringa powder is left to cool and packed into clean, single-use polythene
bags and sealed. This is enclosed in a second polythene bag and heat-sealed. This is to
maintain freshness and dryness prior to further use. The bags should be stored in a cool,
dry place.
Moringa leaf products should be packaged in clean, dry and opaque containers made of
materials that do not affect the quality of the product. Each package must be properly sealed
to prevent content leakage as well as moisture absorption.
17
Each package of moringa leaf product must be legibly marked with the information such as
name of product, net content, name and address of producer, country of origin, lot / batch
identification number or code, instructions for use, production date, nutritional information
(optional).
13 SAFETY MEASURES IN THE WORKPLACE

13.1 SAFETY MEASURES FOR LABOR
 Before operating a machine, ensure that the dangerous part of the machine has been
installed with a guard.
 Keep vigilant all the time and watch out for working machines and equipment.
 Before using any electrical installation or tool, check the condition of its electric
cables.
 Avoid dragging electric cables on the ground or allowing the cables to come into
contact with water.
 Use electrical tools installed with an earth leakage circuit breaker.
13.2 PERSONAL SAFETY

 Wear protective equipment (PPE) such as head caps, nose masks, disposable gloves,
etc. all the time.
 Do not drink or take drugs while working.
 Pay attention to personal hygiene.
 Do not play in the workplace.
 Report to supervisor immediately if anybody notice any unsafe condition
13.3 NOISE
 Wear ear protectors in areas with high noise levels.
 Properly wear ear protectors according to the manufacturer's instructions.
 Do not reuse disposable ear plugs.
 Clean ear protectors regularly.
13.4 PERSONAL PROTECTIVE EQUIPMENT

 For own safety and interest, personal protective equipment will be provided
 Will be provided gloves while handling or contacting with machines though the
machine is safe
 Wear eye and ear protectors whenever necessary.
 Wear safety shoes to prevent foot injury.
13.5 FIRST AID

 If you sustain an injury or feel not well while at work, even if it is minor, go to the first
aid room right away for medical treatment and notify your supervisor.
 Put the case on record
18
14 FORECAST
14.1 PRODUCTION CAPACITY
Particular Monthly Year 1 Year 2 Year 3 Year 4 Year 5
Moringa Oil (ltr) 240 2,880 3,168 3,485 3,833 4,217
Moringa leaf Powder (500g) 48 576 634 697 767 843
Press Cake (kg) 360 4,320 4,752 5,227 5,750 6,325
Total 648 7,776 8,554 9,409 10,350 11,385
Note and Assumptions:

 Production capacity has been increased by 10% from second year onwards.
 6 hours’ production in a day has been taken into consideration though the working hour is 8 hours
per day and 25 days working days in a month.
 80% capacity production has been assumed from the total raw materials. On an average 1kg of
moringa seeds can produced around 400ml of cold press oil (30%-45%) per hour.
 The production is kept at very minimum level in order to avoid over production.
14.2 SALES FORECAST

SALES FORECAST
Unit price (Min) Month 1 Year 1 Year 2 Year 3 Year 4 Year 5
Moringa Oil (ltr) 1,200 288,000 3,456,000 3,801,600 4,181,760 4,599,936 5,059,930
Moringa leaf Powder (500g) 250 12,000 144,000 158,400 174,240 191,664 210,830
Press Cake (kg) 280 100,800 1,209,600 1,330,560 1,463,616 1,609,978 1,770,975
TOTAL SALES 400,800 4,809,600 5,290,560 5,819,616 6,401,578 7,041,735
Month 1 Year 1 Year 2 Year 3 Year 4 Year 5

Rec 10% 40,080 480,960 529,056 581,962 640,158 704,174
sales 90% 360,720 4,328,640 4,761,504 5,237,654 5,761,420 6,337,562
Note and Assumptions:

 Selling Price has been kept at minimal to avoid over estimation of sales though the price very high.
19
15 FINANCIAL PLAN
15.1 TOTAL PROJECT COST
COMPONENTS OF PROJECT COST
Amt in Nu.
Forex. Domestic
Total Remark
PARTICULARS Componen Componen
Cost s
t t
Land - - LEASE
Site Development and Civil Works
Construction of Plant House 703,200
Total Cost 703,200 703,200
Plant & Machinery
SF universal stainless steel grinder (SF 180) 70,350
Screw oil press machine (6YL-68) 67,000
2 Head Liquid Filler with Single Head Capper (Semi-
178,500
auto)
Sintex Tank (25l) 25,000
Electrical Fittings 50,000
Accessories tools 10,000
Installation Cost 30,000
Transportation 60,000
Total 490,850 490,850
Miscellaneous Fixed Assets
Desktops Computer 35,000
Table 9,000
Revolving Chair 8,500
Wooden Chair 6,000
Telephone 2,000
Office Stationeries 5,000
Miscellaneous 3,000
Total 68,500 68,500
Preliminary Expenses
Total Preliminary Expenses -
Interest During Construction -
TOTAL 1,262,550
Note: The cost breakdown for the construction of semi-permanent building and the labor cost are attached
in the annexure.
20
15.2 FIXED ASSETS COST

CAPITAL FIXED ASSETS WITH DEPRECIATION
Unit Unit Total Yearly Monthly
PARTICULARS
s Cost Amount Dep Dep
Construction of Plant House 1 703,200 703,200 21,096 1,758
Total 703,200 703,200 21,096 1,758
Plant and Machinery:
SF universal stainless steel grinder (SF 180) 1 70,350 70,350 10,553 879
Screw oil press machine (6YL-68) 1 67,000 67,000 10,050 838
1 178,500 26,775 2,231
(Semi-auto) 178,500
Sintex Tank (25l) 1 25,000 25,000 3,750 313
Electrical Fittings 50,000 7,500 625
Accessories tools 10,000 1,500 125
Total 400,850 60,128 5,011
Desktops Computer 1 35,000 35,000 5,250 438
Table 2 4,500 9,000 1,350 113
Revolving Chair 1 8,500 8,500 1,275 106
Wooden Chair 2 3,000 6,000 900 75
Telephone 1 2,000 2,000 300 25
Office Stationeries 1 5,000 5,000 750 63
Miscellaneous 1 3,000 3,000 450 38
Total 68,500 10,275 856
TOTAL NET FIXED ASSETS 1,172,550 91,499 7,625
21
15.3 NET VALUE OF ASSETS

NET FIXED ASSET VALUES
PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5
Construction of Plant House 682,104 661,008 639,912 618,816 597,720
Total 682,104 661,008 639,912 618,816 597,720
Plant and Machinery: - - - - -
SF universal stainless steel grinder (SF 180) 59,798 49,245 38,693 28,140 17,588
Screw oil press machine (6YL-68) 56,950 46,900 36,850 26,800 16,750
2 Head Liquid Filler with Single Head Capper (Semi-auto) 151,725 124,950 98,175 71,400 44,625
Sintex Tank (25l) 21,250 17,500 13,750 10,000 6,250
Electrical Fittings 42,500 35,000 27,500 20,000 12,500
Accessories tools 8,500 7,000 5,500 4,000 2,500
Total 340,723 280,595 220,468 160,340 100,213
Desktops Computer 29,750 24,500 19,250 14,000 8,750
Table 7,650 6,300 4,950 3,600 2,250
Revolving Chair 7,225 5,950 4,675 3,400 2,125
Wooden Chair 5,100 4,200 3,300 2,400 1,500
Telephone 1,700 1,400 1,100 800 500
Office Stationeries 4,250 3,500 2,750 2,000 1,250
Miscellaneous 2,550 2,100 1,650 1,200 750
Total 58,225 47,950 37,675 27,400 17,125
TOTAL NET FIXED ASSETS 1,081,052 989,553 898,055 806,556 715,058
Note: The depreciation has been done according to the Income Tax Act of The Kingdom of Bhutan. The
permanent structure is depreciated at 3% per annum and other assets at 15% per annum.
15.4 INVENTORY COST PROJECTION

UNIT MONTHLY
COST REQUIRED UNITS
Moringa Seeds (kg) 275 750 206,250
Moringa Dried Leaf (kg) 120 30 3,600
PET Bottle (1 ltr) 3.50 250 875
Bottle cap (pcs) 0.50 250 125
Cardboard Carton (Pcs) 6.00 20 120
Polythene Bag (Pcs) 0.50 50 25
Miscellaneous (as per requirements) 3,000
TOTAL 213,995
22
PARTICULARS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Moringa Seeds (kg) 2,475,000 2,722,500 2,994,750 3,294,225 3,623,648
Moringa Dried Leaf (kg) 43,200 47,520 52,272 57,499 63,249
PET Bottle (1 ltr) 10,500 11,550 12,705 13,976 15,373
Bottle cap (pcs) 1,500 1,650 1,815 1,997 2,196
Cardboard Carton (Pcs) 1,440 1,584 1,742 1,917 2,108
Polythene Bag (Pcs) 300 330 363 399 439
Miscellaneous (as per requirements) 36,000 39,600 43,560 47,916 52,708
TOTAL 2,567,940 2,824,734 3,107,207 3,417,928 3,759,721
Note:
 Inventory has been increased by 10% from second year onwards.
 The required raw materials will be purchased from suppliers based in India as well as
Bhutan.
 The price of the raw materials differs from suppliers to suppliers.
15.5 MANPOWER COST

PARTICULARS NO OF REQUIRED PEOPLE MONTHLY YEAR 1
Manager 1 20,000 240,000
Accountant 1 12,000 144,000
Marketing and Sales person 1 12,000 144,000
Machine Operator 2 14,000 168,000
Assistant (Manual Worker) 1 6,000 72,000
Part-time labor and others 3,000 36,000
TOTAL 6 67,000 804,000
Particulars Monthly Year 1 Year 2 Year 3 Year 4 Year 5

Direct Labor 20,000 240,000 252,000 264,600 277,830 305,613
Salary & Allowances 44,000 600,000 630,000 661,500 694,575 764,033
Wages 3,000 36,000 37,800 39,690 41,675 45,842
Payroll (direct labor,
64,000 840,000 882,000 926,100 972,405 1,069,646
salary and allowances)
Note:
 Inflation rate of 5% in the second, third and fourth year and 10% in the fifth year has been
considered in the manpower cost annually.
 Part-time labour and others will be given wages as per the work assigned.
15.6 LOAN PAYMENT FOR FIVE YEARS

MONTHLY YEAR1 YEAR2 YEAR3 YEAR4 YEAR5
INTEREST 3945 47,338 37,636 27,538 17,028 6,091
PRINCIPLE 19846 238,153 247,855 257,953 268,463 279,400
END VALUE 87806 1,053,672 805,817 547,863 279,400 (0)
23
15.7 TOTAL OPERATIONAL EXPENDITURE PROJECTION

PARTICULARS MONTHLY COST YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Advertising 3,000 36,000 36,000 36,000 36,000 36,000
Bank Charges - - - - - -
Credit card fees - - - - - -
Delivery expenses 3,000 36,000 39,600 43,560 47,916 52,708
Health insurance
Insurance 2,500 30,000 30,000 30,000 30,000 30,000
Interest 3,945 47,338 37,636 27,538 17,028 6,091
Inventory purchases 213,995 2,567,940 2,824,734 3,107,207 3,417,928 3,759,721
Miscellaneous 1,000 12,000 13,200 14,520 15,972 17,569
Office expenses - - - - - -
Payroll 64,000 840,000 882,000 926,100 972,405 1,069,646
Payroll taxes
Professional fees 2,000 24,000 26,400 29,040 31,944 35,138
Rent or lease 5,445 65,340 71,874 79,061 86,968 95,664
Subscriptions & dues
Supplies
Taxes and licenses 2,500 227,245 274,865 327,867 386,822 437,146
Utilities & telephone 3,000 36,000 39,600 43,560 47,916 52,708
Others 28,000 336,000 358,800 383,340 409,767 440,325
Loan Principle 19,846 238,153 247,855 257,953 268,463 279,400
Total Expenses 352,231 4,496,016 4,882,564 5,305,747 5,769,128 6,312,116
Others: MONTHLY COST YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Amortization
Bad debts
Commissions 2,000 24,000 26,400 29,040 31,944 35,138
Maintenance 1,500 18,000 19,800 21,780 23,958 26,354
Postage
Property taxes
Repairs 1,500 18,000 19,800 21,780 23,958 26,354
Travel - - - - - -
Vehicle expense - - - - - -
Freight-in 5,000 60,000 66,000 72,600 79,860 87,846
Indirect Expenses (electricity) 15,000 180,000 189,000 198,450 208,373 218,791
Wages 3,000 36,000 37,800 39,690 41,675 45,842
Total 28,000 336,000 358,800 383,340 409,767 440,325
Note:
 Electricity has been assumed to be increasing by 5% every year, advertisement at constant and
remaining expenses at 10% every year.
24
16 FINANCIAL ANALYSIS
16.1 PROJECTED INCOME STATEMENT
INCOME STATETMENT PROJECTION FOR 5 YEARS

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Revenue 4,809,600 5,290,560 5,819,616 6,401,578 7,041,735
Cost of Goods Sold 3,047,940 3,331,734 3,642,857 3,983,991 4,371,971
Gross Profit 1,761,660 1,958,826 2,176,759 2,417,587 2,669,764
Expenses 1,104,177 1,152,608 1,204,868 1,261,282 1,359,020

Net Operating Income 657,483 806,218 971,891 1,156,305 1,310,745
Net Income (Loss) 657,483 806,218 971,891 1,156,305 1,310,745
Less:
30% BIT 197,245 241,865 291,567 346,892 393,223
Net Profit (Loss) 460,238 564,353 680,324 809,414 917,521
Additional Information
Depreciation expenses 91,499 91,499 91,499 91,499 91,499
% of Net Income (Loss) - 22.62 20.55 18.97 13.36
% of Average Net Income (Loss) 15.10
% of Net Profit (Loss) - 22.62 20.55 18.97 13.36

% of Average Net Profit 15.10
Monthly Taxes Payable (30% BIT) 16,437 20,155 24,297 28,908 32,769
25
16.2 PROJECTED CASH FLOW STATEMENT

Projected Cash Flow Statement
Year 1 Year 2 Year 3 Year 4 Year 5

Beginning Cash Balance 322,956 665,815 1,073,811 1,587,679 2,220,129
Accts. Rec. Collections 480,960 529,056 581,962 640,158 704,174
Loan Proceeds 1,291,825
Sales & Receipts 4,328,640 4,761,504 5,237,654 5,761,420 6,337,562
Other:
Total Cash Inflows 6,101,425 5,290,560 5,819,616 6,401,578 7,041,735
Available Cash Balance 6,424,381 5,956,375 6,893,427 7,989,257 9,261,864
Advertising 36,000 36,000 36,000 36,000 36,000
Bank Service Charges - - - - -
Credit Card Fees
Delivery 36,000 39,600 43,560 47,916 52,708
Health Insurance
Insurance 30,000 30,000 30,000 30,000 30,000
Interest 47,338 37,636 27,538 17,028 6,091
Inventory Purchases 2,567,940 2,824,734 3,107,207 3,417,928 3,759,721
Miscellaneous 12,000 13,200 14,520 15,972 17,569
Office - - - - -
Payroll 840,000 882,000 926,100 972,405 1,069,646
Payroll Taxes
Professional Fees 24,000 26,400 29,040 31,944 35,138
Rent or Lease 65,340 71,874 79,061 86,968 95,664
Subscriptions & Dues
Supplies
Taxes & Licenses 227,245 274,865 327,867 386,822 437,146
Utilities & Telephone 36,000 39,600 43,560 47,916 52,708
Other: 336,000 358,800 383,340 409,767 440,325
Subtotal 4,257,863 4,634,709 5,047,794 5,500,665 6,032,716
Capital Purchases 1,262,550

Loan Principal 238,153 247,855 257,953 268,463 279,400
Other Cash Out Flows:
Owner's Draw
Other:
Subtotal 1,500,703 247,855 257,953 268,463 279,400
Total Cash Outflows 5,758,566 4,882,564 5,305,747 5,769,128 6,312,116
Ending Cash Balance 665,815 1,073,811 1,587,679 2,220,129 2,949,748
26
16.3 PROJECTED BALANCE SHEET STATEMENT

Projected Balance Sheet For 5 Years
Assets
Cash 665,815 1,073,811 1,587,679 2,220,129 2,949,748
Accounts Receivable 480,960 529,056 581,962 640,158 704,174
Inventory - - - - -
Prepaid expenses 90,000
Other Current Assets
Total Current Assets 1,236,775 1,602,867 2,169,641 2,860,287 3,653,922
Net Fixed Assets 1,081,052 989,553 898,055 806,556 715,058
Other Assets
Total Assets 2,317,827 2,592,420 3,067,696 3,666,843 4,368,979
Liabilities & Capital
Accounts Payable 283,715 657,429 1,224,985 1,908,181 2,735,275
Taxes Payable 197,245 241,865 291,567 346,892 393,223
Payroll Taxes Payable
Accrued Wages Payable
Unearned Revenue
Short-Term Notes Payable
Short-Term Bank Loan Payable
Total Current Liabilities 480,960 899,294 1,516,552 2,255,073 3,128,498
Long-Term Notes Payable 1,053,672 805,817 547,863 279,400 (0)
Total Long-Term Liabilities 1,053,672 805,817 547,863 279,400 (0)
Total Liabilities 1,534,632 1,705,111 2,064,416 2,534,473 3,128,498
Owner's Equity 322,956 322,956 322,956 322,956 322,956
Net Profit 460,238 564,353 680,324 809,414 917,521
Total Capital 783,194 887,309 1,003,280 1,132,370 1,240,477
Total Liabilities & Capital 2,317,826 2,592,420 3,067,696 3,666,843 4,368,976
16.4 VALUE ADDITION & UNIT COST OF PRODUCTION

Monthly Year 1 Year 2 Year 3 Year 4 Year 5
Cost of production 352,231 4,496,016 4,882,564 5,305,747 5,769,128 6,312,116
Raw materials cost 213,995 2,567,940 2,824,734 3,107,207 3,417,928 3,759,721
Total units 648 7,776 8,554 9,409 10,350 11,385
Value addition 39 43 42 41 41 40
Unit Cost of Production 544 578 571 564 557 554
16.5 RETURN ON INVESTMENT AND EQUITY

RETURN ON INVESTMENT AND EQUITY
YEAR - 1 2 3 4 5
TOTAL SALES - 4,809,600 5,290,560 5,819,616 6,401,578 7,041,735
INVESTMENT 1,614,781 1,614,781 1,614,781 1,614,781 1,614,781 1,614,781
ROI % -100% 198% 228% 260% 296% 336%
EQUITY 718,400 718,400 718,400 718,400 718,400 718,400
ROE % -100% 569% 636% 710% 791% 880%
27
16.6 COST DATA ANALYSIS

Cost Data Entry Table
Sl no Cost Element 2016 2016 2017 2018 2019 2020
1 Machinery and plant cost 1,262,550
2 Startup cost (civil works and others) 352,231
3 Total expenditures 4,496,016 4,882,564 5,305,747 5,769,128 6,312,116
Total cost by year 1,614,781 4,496,016 4,882,564 5,305,747 5,769,128 6,312,116
Grand total cost 28,380,353
16.7 COST BENEFIT ANALYSIS

Cost Benefit Analysis
Sl no Benefit Sources 2015 2016 2017 2018 2019 2020
1 Moringa Oil (ltr) 3,456,000 3,801,600 4,181,760 4,599,936 5,059,930
3 Moringa leaf Powder (500g) 144,000 158,400 174,240 191,664 210,830
4 Press Cake (kg) 1,209,600 1,330,560 1,463,616 1,609,978 1,770,975
Total Benefit per year 0 4,809,600 5,290,560 5,819,616 6,401,578 7,041,735
Grand total benefit 29,363,089

Result calculation table
2015 2016 2017 2018 2019 2020
Sl no Undiscounted flows
1 Cost (1614781) (4496016) (4882564) (5305747) (5769128) (6312116)
2 Benefit 0 4809600 5290560 5819616 6401578 7041735
3 Net Cash Flows (1614781) 313584 407996 513869 632449 729619
16.8 NET PRESENT VALUE (NPV) and INTERNAL RATE OF RETURN (IRR)
Net Present Value (NPV) 278,567
Internal Rate of Return (IRR) 16%
16.9 PAY BACK PERIOD

Number of Years
0 1 2 3 4 5
Net Cash flow (1,614,781) 313,584 407,996 513,869 632,449 729,619
Accumulated cash flow (1,614,781) (1,301,197) (893,201) (379,333) 253,117 982,736
Payback period 3 Years and 7 months
28
16.10 BREAK EVEN ANALYSIS

Time Unit start Unit increment Unit price Unit cost variable Total fixed costs
month - 6,000 619 578 1,172,550
BREAK EVEN X BREAK EVEN Y LABEL

29,076 17,984,044 break even unit =29076
Contribution
Units Sales Variable cost Fixed cost Total cost Net income
margin
- - - 1,172,550 1,172,550 (1,172,550)
6,000 3,711,111 3,469,148 241,963 1,172,550 4,641,698 2,296,598
12,000 7,422,222 6,938,296 483,926 1,172,550 8,110,846 5,765,746
18,000 11,133,333 10,407,444 725,889 1,172,550 11,579,994 9,234,894
24,000 14,844,444 13,876,593 967,852 1,172,550 15,049,143 12,704,043
30,000 18,555,556 17,345,741 1,209,815 1,172,550 18,518,291 16,173,191
36,000 22,266,667 20,814,889 1,451,778 1,172,550 21,987,439 19,642,339
42,000 25,977,778 24,284,037 1,693,741 1,172,550 25,456,587 23,111,487
48,000 29,688,889 27,753,185 1,935,704 1,172,550 28,925,735 26,580,635
54,000 33,400,000 31,222,333 2,177,667 1,172,550 32,394,883 30,049,783
60,000 37,111,111 34,691,481 2,419,630 1,172,550 35,864,031 33,518,931
66,000 40,822,222 38,160,630 2,661,593 1,172,550 39,333,180 36,988,080
BREAK EVEN ANALYSIS

Sales Fixed cost Total cost break even unit =29076
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000
Units
29
17 CONCLUSION
Moringa Product Production Unit is a commercial production unit to be established at
Industrial Estate under Phuntsholing Dzongkhag which requires a financial investment
worth of BTN 1,614,781 with debt equity ratio of 4:1.
With this business, it’s expected to curb an outflow of INR and cashing in on the foreign
currency in the initial years in its own small ways. But the effect will be more in the future
with its expansion and diversification of the products which will also create more
employment opportunities and contributes to the national economy.
In the short to medium term, there is a potential to increase the production volume and
quality of moringa oil and moringa leaf powder in Bhutan. This would have the double
benefit of improving the nutrition situation of the population.
Though the proposed business has projected the production for five years, it plans on
producing more than the actual production. The production shown in the projection is kept
at very minimal level. The machines have high production capacity.
As a forward-looking company and as a socially responsible firm, we would bring about

benefits to the local community and our customers. We will create employment to around 6
qualified Bhutanese people and contribute to the nation’s economy in the form of taxes.
The enterprise will give satisfaction salary and allowances with commission to the
employees as they are bedrock of our business and our success depends on the level of
satisfaction they derive working in the business house.
The fact that it is the first commercial moringa products industry in Bhutan, the enterprise
is entering in a “blue ocean market” where there is no competition (at all!) at present.
Moreover, Bhutanese people are so concern about their health and moringa products are the
best solution or medicine for it. This ensures the success of the business.
The business house will accord top priority to our customers and deliver high quality and
timely services, and products. Through an expansive marketing strategy MPPU will create a
unique brand for itself.
The enterprise would earn profit of 15.10% on an average. It is assured and guaranteed that
the enterprise would make more profit once it starts production and marketing than as it is
aforementioned.
The proposed business is feasible due to its strategic investment and operational plans-
whereby 73% of the total investment is invested in fixed asset and its working capital
constitutes only 7.32% of the total sales in the first financial year
30
18 ANNEXURES
18.1 Breakdown Cost for Construction of Plant House and Labour Cost
Construction Cost for Plant House (Semi-Permanent)
Particulars Units Requirement Unit Cost Amount
CGI Sheet 10ft(in no) 80 915 73,200
Timber (in cft) 350 500 175,000
Sand (in truck) 5 15,000 75,000
Stone (in truck) 5 15,000 75,000
Cement (in bags) 200 300 60,000
Gravel (in truck) 3 15000 45,000
Miscellaneous cost (Paints, electrical,
50,000
etc.)
Labor cost 150,000
TOTAL AMOUNT 703,200
Labour Cost for the Construction for Plant house

Required No. of labour No. of Working Days Wage Per Day Total Wage
10 30 500 150,000
31
19 PROJECT TIMELINE
PROJECT TIME LINE
Activities 2016-2017
Mar Apr May Jun Aug Sept Oct Nov Dec Jan Feb Mar
Feasibility study and
development of the
project proposal
Approval from financial
institution
If the project is going to

be funded:
Start construction of
plant house
Purchase of plant and

machinery and other
required materials and
installations
Recruitment of the
required staff and
training if necessary
Start of the production
and its sale
Note: Production will be on a regular basis.
32
20 FINANCIAL INSTITUTION (FINANCIAL PLANS AND ANALYSIS)

PRODUCTION CAPACITY
Particular Monthly Year 1 Year 2 Year 3 Year 4 Year 5
Moringa Oil (ltr) 240 2,880 3,168 3,485 3,833 4,217
Moringa leaf Powder (500g) 48 576 634 697 767 843
Press Cake (kg) 360 4,320 4,752 5,227 5,750 6,325
Total 648 7,776 8,554 9,409 10,350 11,385
SALES FORECAST
SALES FORECAST
Unit price (Min) Month 1 Year 1 Year 2 Year 3 Year 4 Year 5
Moringa Oil (ltr) 1,200 288,000 3,456,000 3,801,600 4,181,760 4,599,936 5,059,930
Moringa leaf Powder (500g) 250 12,000 144,000 158,400 174,240 191,664 210,830
Press Cake (kg) 280 100,800 1,209,600 1,330,560 1,463,616 1,609,978 1,770,975
TOTAL SALES 400,800 4,809,600 5,290,560 5,819,616 6,401,578 7,041,735
Month 1 Year 1 Year 2 Year 3 Year 4 Year 5

Rec 10% 40,080 480,960 529,056 581,962 640,158 704,174
sales 90% 360,720 4,328,640 4,761,504 5,237,654 5,761,420 6,337,562
33
TOTAL PROJECT COST

Amt in Nu.
Forex. Domestic
Total Remark
Cost s
t t
Land - - LEASE
Total Cost 703,200 703,200
Plant & Machinery
178,500
auto)
Total 490,850 490,850
Table 9,000
Wooden Chair 6,000
Telephone 2,000
Miscellaneous 3,000
Total 68,500 68,500
TOTAL 1,262,550
34
FIXED ASSETS COST

PARTICULARS
Total 703,200 703,200 21,096 1,758
1 178,500 26,775 2,231
(Semi-auto) 178,500
Sintex Tank (25l) 1 25,000 25,000 3,750 313
Total 400,850 60,128 5,011
Table 2 4,500 9,000 1,350 113
Revolving Chair 1 8,500 8,500 1,275 106
Wooden Chair 2 3,000 6,000 900 75
Telephone 1 2,000 2,000 300 25
Miscellaneous 1 3,000 3,000 450 38
Total 68,500 10,275 856
35
NET VALUE OF ASSETS

NET FIXED ASSET VALUES
PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5
Construction of Plant House 682,104 661,008 639,912 618,816 597,720
Total 682,104 661,008 639,912 618,816 597,720
Plant and Machinery: - - - - -
SF universal stainless steel grinder (SF 180) 59,798 49,245 38,693 28,140 17,588
Screw oil press machine (6YL-68) 56,950 46,900 36,850 26,800 16,750
2 Head Liquid Filler with Single Head Capper (Semi-auto) 151,725 124,950 98,175 71,400 44,625
Sintex Tank (25l) 21,250 17,500 13,750 10,000 6,250
Electrical Fittings 42,500 35,000 27,500 20,000 12,500
Accessories tools 8,500 7,000 5,500 4,000 2,500
Total 340,723 280,595 220,468 160,340 100,213
Desktops Computer 29,750 24,500 19,250 14,000 8,750
Table 7,650 6,300 4,950 3,600 2,250
Revolving Chair 7,225 5,950 4,675 3,400 2,125
Wooden Chair 5,100 4,200 3,300 2,400 1,500
Telephone 1,700 1,400 1,100 800 500
Office Stationeries 4,250 3,500 2,750 2,000 1,250
Miscellaneous 2,550 2,100 1,650 1,200 750
Total 58,225 47,950 37,675 27,400 17,125
TOTAL NET FIXED ASSETS 1,081,052 989,553 898,055 806,556 715,058
INVENTORY COST PROJECTION

UNIT MONTHLY
COST REQUIRED UNITS
PET Bottle (1 ltr) 3.50 250 875
TOTAL 213,995
36
PARTICULARS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Moringa Seeds (kg) 2,475,000 2,722,500 2,994,750 3,294,225 3,623,648
Moringa Dried Leaf (kg) 43,200 47,520 52,272 57,499 63,249
PET Bottle (1 ltr) 10,500 11,550 12,705 13,976 15,373
Bottle cap (pcs) 1,500 1,650 1,815 1,997 2,196
Cardboard Carton (Pcs) 1,440 1,584 1,742 1,917 2,108
Polythene Bag (Pcs) 300 330 363 399 439
Miscellaneous (as per requirements) 36,000 39,600 43,560 47,916 52,708
TOTAL 2,567,940 2,824,734 3,107,207 3,417,928 3,759,721
MANPOWER COST
Manager 1 20,000 240,000
Accountant 1 12,000 144,000
TOTAL 6 67,000 804,000
Particulars Monthly Year 1 Year 2 Year 3 Year 4 Year 5

Direct Labor 20,000 240,000 252,000 264,600 277,830 305,613
Salary & Allowances 44,000 600,000 630,000 661,500 694,575 764,033
Wages 3,000 36,000 37,800 39,690 41,675 45,842
Payroll (direct labor,
64,000 840,000 882,000 926,100 972,405 1,069,646
salary and allowances)
LOAN PAYMENT FOR FIVE YEARS

MONTHLY YEAR1 YEAR2 YEAR3 YEAR4 YEAR5
INTEREST 11427 137,121 113,396 86,396 55,670 20,702
PRINCIPLE 14323 171,880 195,605 222,604 253,331 288,299
END VALUE 79987 959,838 764,234 541,630 288,299 (0)
37
TOTAL OPERATIONAL EXPENDITURE PROJECTION

PARTICULARS MONTHLY COST YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Advertising 3,000 36,000 36,000 36,000 36,000 36,000
Bank Charges - - - - - -
Credit card fees - - - - - -
Delivery expenses 3,000 36,000 39,600 43,560 47,916 52,708
Health insurance
Insurance 2,500 30,000 30,000 30,000 30,000 30,000
Interest 11,427 137,121 113,396 86,396 55,670 20,702
Inventory purchases 213,995 2,567,940 2,824,734 3,107,207 3,417,928 3,759,721
Miscellaneous 1,000 12,000 13,200 14,520 15,972 17,569
Office expenses - - - - - -
Payroll 64,000 840,000 882,000 926,100 972,405 1,069,646
Payroll taxes
Professional fees 2,000 24,000 26,400 29,040 31,944 35,138
Rent or lease 5,445 65,340 71,874 79,061 86,968 95,664
Supplies
Taxes and licenses 2,500 200,310 252,137 310,210 375,229 432,763
Utilities & telephone 3,000 36,000 39,600 43,560 47,916 52,708
Others 28,000 336,000 358,800 383,340 409,767 440,325
Loan Principle 14,323 171,880 195,605 222,604 253,331 288,299
TOTAL 354,190 4,492,591 4,883,346 5,311,599 5,781,045 6,331,242
Others: MONTHLY COST YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Amortization
Bad debts
Commissions 2,000 24,000 26,400 29,040 31,944 35,138
Maintenance 1,500 18,000 19,800 21,780 23,958 26,354
Postage
Property taxes
Repairs 1,500 18,000 19,800 21,780 23,958 26,354
Travel - - - - - -
Vehicle expense - - - - - -
Freight-in 5,000 60,000 66,000 72,600 79,860 87,846
Indirect Expenses (electricity) 15,000 180,000 189,000 198,450 208,373 218,791
Wages 3,000 36,000 37,800 39,690 41,675 45,842
Total 28,000 336,000 358,800 383,340 409,767 440,325
38
INCOME STATEMENT PROJECTION
INCOME STATETMENT PROJECTION FOR 5 YEARS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Revenue 4,809,600 5,290,560 5,819,616 6,401,578 7,041,735
Cost of Goods Sold 3,047,940 3,331,734 3,642,857 3,983,991 4,371,971
Gross Profit 1,761,660 1,958,826 2,176,759 2,417,587 2,669,764
Expenses 1,193,960 1,228,369 1,263,726 1,299,923 1,373,631

Net Operating Income 567,700 730,457 913,032 1,117,664 1,296,133
Net Income (Loss) 567,700 730,457 913,032 1,117,664 1,296,133
Less:
30% BIT 170,310 219,137 273,910 335,299 388,840
Net Profit (Loss) 397,390 511,320 639,123 782,364 907,293
Depreciation expenses 91,499 91,499 91,499 91,499 91,499
% of Net Income (Loss) - 28.67 24.99 22.41 15.97
% of Net Profit (Loss) - 28.67 24.99 22.41 15.97

Monthly Taxes Payable (30% BIT) 14,193 18,261 22,826 27,942 32,403
39
CASH FLOW STATEMENT PROJECTION

Projected Cash Flow Statement
Beginning Cash Balance 485,022 671,199 1,078,413 1,586,430 2,206,962
Accts. Rec. Collections 480,960 529,056 581,962 640,158 704,174
Loan Proceeds 1,131,718
Sales & Receipts 4,328,640 4,761,504 5,237,654 5,761,420 6,337,562
Other:
Total Cash Inflows 5,941,318 5,290,560 5,819,616 6,401,578 7,041,735
Available Cash Balance 6,426,340 5,961,759 6,898,029 7,988,008 9,248,697
Advertising 36,000 36,000 36,000 36,000 36,000
Bank Service Charges - - - - -
Credit Card Fees
Delivery 36,000 39,600 43,560 47,916 52,708
Health Insurance
Insurance 30,000 30,000 30,000 30,000 30,000
Interest 137,121 113,396 86,396 55,670 20,702
Inventory Purchases 2,567,940 2,824,734 3,107,207 3,417,928 3,759,721
Miscellaneous 12,000 13,200 14,520 15,972 17,569
Office - - - - -
Payroll 840,000 882,000 926,100 972,405 1,069,646
Payroll Taxes
Professional Fees 24,000 26,400 29,040 31,944 35,138
Rent or Lease 65,340 71,874 79,061 86,968 95,664
Supplies
Taxes & Licenses 200,310 252,137 310,210 375,229 432,763
Utilities & Telephone 36,000 39,600 43,560 47,916 52,708
Other: 336,000 358,800 383,340 409,767 440,325
Subtotal 4,320,711 4,687,741 5,088,995 5,527,715 6,042,944

Loan Principal 171,880 195,605 222,604 253,331 288,299
Owner's Draw
Other:
Subtotal 1,434,430 195,605 222,604 253,331 288,299
Total Cash Outflows 5,755,141 4,883,346 5,311,599 5,781,045 6,331,242
Ending Cash Balance 671,199 1,078,413 1,586,430 2,206,962 2,917,455
40
BALANCE SHEET PROJECTION

Projected Balance Sheet For 5 Years
Assets
Cash 671,199 1,078,413 1,586,430 2,206,962 2,917,455
Accounts Receivable 480,960 529,056 581,962 640,158 704,174
Inventory - - - - -
Total Current Assets 1,242,159 1,607,469 2,168,392 2,847,120 3,621,629
Net Fixed Assets 1,081,052 989,553 898,055 806,556 715,058
Other Assets
Total Assets 2,323,211 2,597,022 3,066,446 3,653,676 4,336,686
Accounts Payable 310,650 617,309 1,126,762 1,762,692 2,555,531
Taxes Payable 170,310 219,137 273,910 335,299 388,840
Unearned Revenue
Total Current Liabilities 480,960 836,446 1,400,672 2,097,991 2,944,371
Long-Term Notes Payable 959,838 764,234 541,630 288,299 (0)
Total Long-Term Liabilities 959,838 764,234 541,630 288,299 (0)
Total Liabilities 1,440,799 1,600,680 1,942,301 2,386,290 2,944,371
Owner's Equity 485,022 485,022 485,022 485,022 485,022
Net Profit 397,390 511,320 639,123 782,364 907,293
Total Capital 882,412 996,342 1,124,145 1,267,386 1,392,315
Total Liabilities & Capital 2,323,211 2,597,022 3,066,446 3,653,676 4,336,686
VALUE ADDITION AND UNIT COST OF PRODUCTION

VALUE ADDITION
Raw materials cost 213,995 2,567,940 2,824,734 3,107,207 3,417,928 3,759,721
Value addition 40 43 42 42 41 41
UNIT COST OF PRODUCTION

Total units 648 7,776 8,554 9,409 10,350 11,385
Unit cost of production 547 578 571 565 559 556
41

YEAR 1 2 3 4 5 6
TOTAL SALES - 4,809,600 5,290,560 5,819,616 6,401,578 7,041,735
INVESTMENT 1,616,740 1,616,740 1,616,740 1,616,740 1,616,740 1,616,740
ROI % -100% 197% 227% 260% 296% 336%
EQUITY 718,400 718,400 718,400 718,400 718,400 718,400
ROE % -100% 569% 636% 710% 791% 880%
COST DATA AND BENEFIT ANALYSIS

Sl no Cost Element 2016 2016 2017 2018 2019 2020
3 Total expenditures 4,492,591 4,883,346 5,311,599 5,781,045 6,331,242
Total cost by year 1,616,740 4,492,591 4,883,346 5,311,599 5,781,045 6,331,242
Sl no Benefit Sources 2015 2016 2017 2018 2019 2020
1 Moringa Oil (ltr) 3,456,000 3,801,600 4,181,760 4,599,936 5,059,930
3 Moringa leaf Powder (500g) 144,000 158,400 174,240 191,664 210,830
4 Press Cake (kg) 1,209,600 1,330,560 1,463,616 1,609,978 1,770,975
Total Benefit per year 0 4,809,600 5,290,560 5,819,616 6,401,578 7,041,735

2015 2016 2017 2018 2019 2020
1 Cost (1616740) (4492591) (4883346) (5311599) (5781045) (6331242)
2 Benefit 0 4809600 5290560 5819616 6401578 7041735
3 Net Cash Flows (1616740) 317009 407214 508017 620532 710493
NET PRESENT VALUE AND INTERNAL RATE OF RETURN

PAY BACK PERIOD

Number of Years
0 1 2 3 4 5
Net Cash flow (1,616,740) 317,009 407,214 508,017 620,532 710,493
Accumulated cash flow (1,616,740) (1,299,731) (892,517) (384,500) 236,032 946,525
42
BREAK EVEN ANALYSIS
month - 6,000 619 578 1,172,550

28,762 17,789,830 break even unit =28762
Contribution
margin
- - - 1,172,550 1,172,550 (1,172,550)
6,000 3,711,111 3,466,505 244,606 1,172,550 4,639,055 2,293,955
12,000 7,422,222 6,933,011 489,212 1,172,550 8,105,561 5,760,461
18,000 11,133,333 10,399,516 733,818 1,172,550 11,572,066 9,226,966
24,000 14,844,444 13,866,021 978,423 1,172,550 15,038,571 12,693,471
30,000 18,555,556 17,332,526 1,223,029 1,172,550 18,505,076 16,159,976
36,000 22,266,667 20,799,032 1,467,635 1,172,550 21,971,582 19,626,482
42,000 25,977,778 24,265,537 1,712,241 1,172,550 25,438,087 23,092,987
48,000 29,688,889 27,732,042 1,956,847 1,172,550 28,904,592 26,559,492
54,000 33,400,000 31,198,547 2,201,453 1,172,550 32,371,097 30,025,997
60,000 37,111,111 34,665,053 2,446,058 1,172,550 35,837,603 33,492,503
66,000 40,822,222 38,131,558 2,690,664 1,172,550 39,304,108 36,959,008
BREAK EVEN ANALYSIS

45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000
Units
MPPU achieves its break-even point at unit 28762 by 3 years and 7 months and enjoys
healthy liquidity with the payback period of 3 years and 7 months, net present value (NPV)
of BTN 254,663 and an internal rate of return (IRR) of 15%.
43
21 LODEN (FINANCIAL PLANS AND ANALYSIS)

PRODUCTION CAPACITY
Particular Monthly Year 1 Year 2 Year 3
Moringa Oil (ltr) 240 2,880 3,168 3,485
Moringa leaf Powder (500g) 48 576 634 697
Press Cake (kg) 360 4,320 4,752 5,227
Total 648 7,776 8,554 9,409
SALES FORECAST
Unit price (Min) Month 1 Year 1 Year 2 Year 3

Moringa Oil (ltr) 1,200 288,000 3,456,000 3,801,600 4,181,760
Moringa leaf Powder (500g) 250 12,000 144,000 158,400 174,240
Press Cake (kg) 280 100,800 1,209,600 1,330,560 1,463,616
TOTAL SALES 400,800 4,809,600 5,290,560 5,819,616
Month 1 Year 1 Year 2 Year 3

Rec 10% 40,080 480,960 529,056 581,962
sales 90% 360,720 4,328,640 4,761,504 5,237,654
44
TOTAL PROJECT COST

Amt in Nu.
Forex. Domestic
Total Remark
Cost s
t t
Land - - LEASE
Total Cost 703,200 703,200
Plant & Machinery
178,500
auto)
Total 490,850 490,850
Table 9,000
Wooden Chair 6,000
Telephone 2,000
Miscellaneous 3,000
Total 68,500 68,500
TOTAL 1,262,550
45
FIXED ASSETS COST

PARTICULARS
Total 703,200 703,200 21,096 1,758
1 178,500 26,775 2,231
(Semi-auto) 178,500
Sintex Tank (25l) 1 25,000 25,000 3,750 313
Total 400,850 60,128 5,011
Table 2 4,500 9,000 1,350 113
Revolving Chair 1 8,500 8,500 1,275 106
Wooden Chair 2 3,000 6,000 900 75
Telephone 1 2,000 2,000 300 25
Miscellaneous 1 3,000 3,000 450 38
Total 68,500 10,275 856
46
NET VALUE OF ASSETS

PARTICULARS Year 1 Year 2 Year 3
Construction of Plant House 682,104 661,008 639,912
Total 682,104 661,008 639,912
Plant and Machinery: - - -
SF universal stainless steel grinder (SF 180) 59,798 49,245 38,693
Screw oil press machine (6YL-68) 56,950 46,900 36,850
2 Head Liquid Filler with Single Head Capper (Semi-auto) 151,725 124,950 98,175
Sintex Tank (25l) 21,250 17,500 13,750
Electrical Fittings 42,500 35,000 27,500
Accessories tools 8,500 7,000 5,500
Total 340,723 280,595 220,468
Desktops Computer 29,750 24,500 19,250
Table 7,650 6,300 4,950
Revolving Chair 7,225 5,950 4,675
Wooden Chair 5,100 4,200 3,300
Telephone 1,700 1,400 1,100
Office Stationeries 4,250 3,500 2,750
Miscellaneous 2,550 2,100 1,650
Total 58,225 47,950 37,675
INVENTORY COST PROJECTION

UNIT MONTHLY
COST REQUIRED UNITS
PET Bottle (1 ltr) 3.50 250 875
TOTAL 213,995
PARTICULARS YEAR 1 YEAR 2 YEAR 3

Moringa Seeds (kg) 2,475,000 2,722,500 2,994,750
Moringa Dried Leaf (kg) 43,200 47,520 52,272
PET Bottle (1 ltr) 10,500 11,550 12,705
Bottle cap (pcs) 1,500 1,650 1,815
Cardboard Carton (Pcs) 1,440 1,584 1,742
Polythene Bag (Pcs) 300 330 363
Miscellaneous (as per requirements) 36,000 39,600 43,560
TOTAL 2,567,940 2,824,734 3,107,207
47
MANPOWER COST
Manager 1 20,000 240,000
Accountant 1 12,000 144,000
TOTAL 6 67,000 804,000
Particulars Monthly Year 1 Year 2 Year 3

Direct Labor 20,000 240,000 252,000 264,600
Salary & Allowances 44,000 600,000 630,000 661,500
Wages 3,000 36,000 37,800 39,690
Payroll (direct labor, salary and
64,000 840,000 882,000 926,100
allowances)
TOTAL OPERATIONAL EXPENDITURE PROJECTION

PARTICULARS MONTHLY COST YEAR 1 YEAR 2 YEAR 3
Advertising 3,000 36,000 36,000 36,000
Bank Charges - - - -
Credit card fees - - - -
Delivery expenses 3,000 36,000 39,600 43,560
Health insurance
Insurance 2,500 30,000 30,000 30,000
Interest - - - -
Inventory purchases 213,995 2,567,940 2,824,734 3,107,207
Miscellaneous 1,000 12,000 13,200 14,520
Office expenses - - - -
Payroll 64,000 840,000 882,000 926,100
Payroll taxes
Professional fees 2,000 24,000 26,400 29,040
Rent or lease 5,445 65,340 71,874 79,061
Supplies
Taxes and licenses 2,500 241,446 286,156 336,129
Utilities & telephone 3,000 36,000 39,600 43,560
Others 28,000 336,000 358,800 383,340
Loan Principle - - - -
TOTAL 328,440 4,224,726 4,608,364 5,028,517
48
Others: MONTHLY COST YEAR 1 YEAR 2 YEAR 3
Amortization
Bad debts
Commissions 2,000 24,000 26,400 29,040
Maintenance 1,500 18,000 19,800 21,780
Postage
Property taxes
Repairs 1,500 18,000 19,800 21,780
Travel - - - -
Vehicle expense - - - -
Freight-in 5,000 60,000 66,000 72,600
Indirect Expenses (electricity) 15,000 180,000 189,000 198,450
Wages 3,000 36,000 37,800 39,690
Total 28,000 336,000 358,800 383,340
INCOME STATEMENT PROJECTION

YEAR 1 YEAR 2 YEAR 3
Revenue 4,809,600 5,290,560 5,819,616
Cost of Goods Sold 3,047,940 3,331,734 3,642,857
Gross Profit 1,761,660 1,958,826 2,176,759
Expenses 1,056,839 1,114,973 1,177,330

Net Operating Income 704,822 843,854 999,429
Net Income (Loss) 704,822 843,854 999,429

Less:
30% BIT 211,446 253,156 299,829
Net Profit (Loss) 493,375 590,697 699,600
Depreciation expenses 91,499 91,499 91,499
% of Net Income (Loss) - 19.73 18.44
% of Net Profit (Loss) - 19.73 18.44

Monthly Taxes Payable (30% BIT) 17,621 21,096 24,986
49
CASH FLOW STATEMENT PROJECTION

Year 1 Year 2 Year 3
Beginning Cash Balance - (677,676) 4,520
Accts. Rec. Collections 480,960 529,056 581,962
Loan Proceeds -
Sales & Receipts 4,328,640 4,761,504 5,237,654
Other:
Total Cash Inflows 4,809,600 5,290,560 5,819,616
Available Cash Balance 4,809,600 4,612,884 5,824,136
Advertising 36,000 36,000 36,000
Bank Service Charges - - -
Credit Card Fees
Delivery 36,000 39,600 43,560
Health Insurance
Insurance 30,000 30,000 30,000
Interest - - -
Inventory Purchases 2,567,940 2,824,734 3,107,207
Miscellaneous 12,000 13,200 14,520
Office - - -
Payroll 840,000 882,000 926,100
Payroll Taxes
Professional Fees 24,000 26,400 29,040
Rent or Lease 65,340 71,874 79,061
Supplies
Taxes & Licenses 241,446 286,156 336,129
Utilities & Telephone 36,000 39,600 43,560
Other: 336,000 358,800 383,340
Subtotal 4,224,726 4,608,364 5,028,517

Loan Principal - - -
Owner's Draw
Other:
Subtotal 1,262,550 - -
Total Cash Outflows 5,487,276 4,608,364 5,028,517
Ending Cash Balance (677,676) 4,520 795,618
50
BALANCE SHEET PROJECTION

Year 1 Year 2 Year 3
Assets
Cash (677,676) 4,520 795,618
Accounts Receivable 480,960 529,056 581,962
Inventory - - -
Total Current Assets (106,716) 533,576 1,377,580
Net Fixed Assets 1,081,052 989,553 898,055
Other Assets
Total Assets 974,335 1,523,129 2,275,634
Accounts Payable 269,514 679,275 1,276,205
Taxes Payable 211,446 253,156 299,829
Unearned Revenue
Total Current Liabilities 480,960 932,431 1,576,034
Long-Term Notes Payable - - -
Total Long-Term Liabilities - - -
Total Liabilities 480,960 932,431 1,576,034
Owner's Equity - - -
Net Profit 493,375 590,697 699,600
Total Capital 493,375 590,697 699,600
Total Liabilities & Capital 974,336 1,523,129 2,275,634
VALUE ADDITION AND UNIT COST OF PRODUCTION

VALUE ADDITION
Monthly Year 1 Year 2 Year 3
Cost of production 328,440 4,224,726 4,608,364 5,028,517
Raw materials cost 213,995 2,567,940 2,824,734 3,107,207
Value addition 35 39 39 38
UNIT COST OF PRODUCTION

Monthly Year 1 Year 2 Year 3
Total units 648 7,776 8,554 9,409
Cost of production 328,440 4,224,726 4,608,364 5,028,517
Unit cost of production 507 543 539 534
51

YEAR - 1 2 3
TOTAL SALES - 4,809,600 5,290,560 5,819,616
INVESTMENT 1,590,990 1,590,990 1,590,990 1,590,990
ROI % -100% 202% 233% 266%
EQUITY 718,400 718,400 718,400 718,400
ROE % -100% 569% 636% 710%
COST DATA AND BENEFIT ANALYSIS

Sl no Cost Element 2016 2016 2017 2018
3 Total expenditures 4,224,726 4,608,364 5,028,517
Total cost by year 1,590,990 4,224,726 4,608,364 5,028,517

Sl no Benefit Sources 2015 2016 2017 2018
1 Moringa Oil (ltr) 3,456,000 3,801,600 4,181,760
3 Moringa leaf Powder (500g) 144,000 158,400 174,240
4 Press Cake (kg) 1,209,600 1,330,560 1,463,616
Total Benefit per year 0 4,809,600 5,290,560 5,819,616

2015 2016 2017 2018
1 Cost (1590990) (4224726) (4608364) (5028517)
2 Benefit 0 4809600 5290560 5819616
3 Net Cash Flows (1590990) 584874 682196 791099
NET PRESENT VALUE AND INTERNAL RATE OF RETURN

PAY BACK PERIOD

Number of Years
0 1 2 3
Net Cash flow (1,590,990) 584,874 682,196 791,099
Accumulated cash flow (1,590,990) (1,006,116) (323,921) 467,178
52
BREAK EVEN ANALYSIS
month - 6,000 619 578 1,172,550

15,589 9,642,085 break even unit =15589
Contribution
margin
- - - 1,172,550 1,172,550 (1,172,550)
6,000 3,711,111 3,259,820 451,291 1,172,550 4,432,370 2,087,270
12,000 7,422,222 6,519,640 902,583 1,172,550 7,692,190 5,347,090
18,000 11,133,333 9,779,459 1,353,874 1,172,550 10,952,009 8,606,909
24,000 14,844,444 13,039,279 1,805,165 1,172,550 14,211,829 11,866,729
30,000 18,555,556 16,299,099 2,256,457 1,172,550 17,471,649 15,126,549
36,000 22,266,667 19,558,919 2,707,748 1,172,550 20,731,469 18,386,369
42,000 25,977,778 22,818,739 3,159,039 1,172,550 23,991,289 21,646,189
48,000 29,688,889 26,078,558 3,610,331 1,172,550 27,251,108 24,906,008
54,000 33,400,000 29,338,378 4,061,622 1,172,550 30,510,928 28,165,828
60,000 37,111,111 32,598,198 4,512,913 1,172,550 33,770,748 31,425,648
66,000 40,822,222 35,858,018 4,964,205 1,172,550 37,030,568 34,685,468
BREAK EVEN ANALYSIS

45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000
Units
MPPU achieves its break-even point at unit 15589 by 2 years and enjoys healthy liquidity
with the payback period of 2 years and 5 months, net present value (NPV) of BTN 98,876 and
an internal rate of return (IRR) of 13%.
53

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Moringa Products Prouction Unit

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MORINGA

The plant has projected to 7,041,735

 To provide consumers with high quality Moringa products at a reasonable price

4 THE BUSINESS PROFILE

1. SF universal stainless steel grinder (SF 180) (China)

6 ABOUT MORINGA PLANT

6.1 Health Benefits of Moringa

 Moringa is rich in Vitamin A. It contains ten times more Vitamin A or beta-carotene

6.2 Other Benefits of Moringa

 It can be used as a source of biofuel.

7.2 LOCATION OF THE BUSINESS

7.3 AVAILABILITY OF LAND

7.6 OPPORTUNITY 7.7 THREAT

TABLE: TOTAL INVESTMENT REQUIREMENT SUMMARY

PARTICULARS MONTHLY COST

Moringa Product Production Unit will produce the following products:

10.2 MARKET SEGMENTATION

10.2.1 Competitor Analysis

10.2.2 Competitive Advantages

10.2.3 Market Size and Potential

11 DEMAND AND SUPPLY ANALYSIS

12 ENTERPRISE MARKETING STRATEGY

12.1 MARKETING MIX STRATEGY

12.1.7 Physical Evidence

ROLES AND RESPONSIBILITIES

Accountant: He/she will keep the daily records of the business.

Machine Operator: They will operate the machines.

Part-time Labor and Others: Loading, unloading, transporting, maintenance, etc.

11 MACHINERIES AND RAW MATERIALS

Sl. No Machinery Price in USD Price in Nu.

11.2 RAW MATERIALS

PARTICULARS UNIT COST

Shell the Moringa Seeds

Pour the shelled seeds on the receiving funnel

12.2 MORINGA LEAF POWDER MAKING PROCESS

Sieving the Moringa Powder

Drying the Moringa leaf powder

Packaging and Storage moringa Powder

13 SAFETY MEASURES IN THE WORKPLACE

13.2 PERSONAL SAFETY

13.4 PERSONAL PROTECTIVE EQUIPMENT

13.5 FIRST AID

Note and Assumptions:

14.2 SALES FORECAST

Month 1 Year 1 Year 2 Year 3 Year 4 Year 5

Note and Assumptions:

15.2 FIXED ASSETS COST

15.3 NET VALUE OF ASSETS

15.4 INVENTORY COST PROJECTION

PARTICULARS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

15.5 MANPOWER COST

Particulars Monthly Year 1 Year 2 Year 3 Year 4 Year 5

15.6 LOAN PAYMENT FOR FIVE YEARS

15.7 TOTAL OPERATIONAL EXPENDITURE PROJECTION

Others: MONTHLY COST YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

INCOME STATETMENT PROJECTION FOR 5 YEARS

Expenses 1,104,177 1,152,608 1,204,868 1,261,282 1,359,020

Net Income (Loss) 657,483 806,218 971,891 1,156,305 1,310,745

% of Net Profit (Loss) - 22.62 20.55 18.97 13.36

16.2 PROJECTED CASH FLOW STATEMENT

Year 1 Year 2 Year 3 Year 4 Year 5

Capital Purchases 1,262,550

16.3 PROJECTED BALANCE SHEET STATEMENT