Team Members

Faaiz Irfan Raahim Khan Sania Ahmed Zahra Urooj

Roots College International

The Business in which we deal

BASIC IDEA
Supplying fresh milk in transparent glass bottles along with freshly baked bread. Door step service Ensuring quality & hygiene

The Business Continued

Name of the company HI Milk n Slice Company logo Now Health is Safe and Rich

HI stands for
Hygiene Health High standard High quality

Integrity in dealing

The Business Continued

Vision: To be known as pioneer of healthy enriched dairy products in the town and to increase customer satisfaction. Mission:
We strive to use our God given talents to provide wholesome products, honest service and value to our customers. This means: Our standard is to produce the highest quality milk. We strive to serve our customers beyond their expectations. We intend to provide a safe and pleasant workplace, and reward our team members for achieving the highest quality and service to customers.

Objectives
Achieve an increase of 30% in sales in first 6 months. Maintain a healthy average gross profit margin. Develop a business model that is favorable to expansion.

Offer our customers a superior product, at affordable price, and provide quality customer service

Keys to Success
Unique product combination Quality controls: consistency, cleanliness.

Service: professional, on-time.

Marketing: positive image, word-of-mouth advertising. Customer focus: convenience

Description Of The Business

The company aims to provide high quality, fresh & healthy milk and bread to all customers. 4 business partners 10-12 employees 3 delivery vans & 2 motor bikes Service provided to some areas of Islamabad

Description Of The Business

Procurement of milk and bread will be outsourced. Contract with the local glass manufacturing company

Empty glass bottles will be recollected

Payment from customers will be on monthly basis and in advance

Profit Plan
The business will build profitable relationships and create customer delight, by observing the following; Good quality Health and safety Reasonable price scale Delivery Speed Moral values

Our Principal Of Cost Reduction

Marketing Plan
The business targets a wide market as pure milk and bread are the primary needs of every house Product Fresh milk in glass bottles along with fresh bread supplied at the customers doorstep.

Milk will not be pasteurized or chemically treated.

Packaging
For milk packaging, glass bottles will be used with the companys logo on it.

Glass is a heat insulator and will help in preventing the milk from being spoiled in summers.

Price
Competitive price Milk will be provided at a price of Rs.78/ 1 x litre bottle, Rs. 155/ 2 litre bottle,Rs.385/5 litre and Rs.40/ half a litre. Bread will be sold for Rs.56.

Promotion
Effective advertisement through word of mouth. Other sources will also be used; Newspapers Pamphlets Media Internet Promotional slogan: Lets start getting healthy..

Place (distribution)
Three air-conditioned vans and two motor bikes will be used for delivery purpose. Vans will have proper containers for milk bottles. Milk and bread will be delivered in the morning between 6:45:00-8:30 A.M This service will be available, on request basis, in the evening as well .

Procurement Plan

Contract with local farm (s) for milk procurement

Contract with a local bread manufacturer

Quality Control Plan

Strict check on quality control by quality con inspector employed for the purpose Separate department for quality management Quality management principles will be kept in mind 5 S will be followed Kaizen will be followed

Financial Plan

Initial investment available: Rs. 2,000,000 Initial Estimated Costs (Including capital expenditure): Rs.1,852,000 Required Profit per quarter: Rs. 120,000

20% of the profit will be kept as contingency reserves.

Financial Plan contd

Cost of milk per litre: Rs.60
Estimated milk requirement: 300 litres/ day Daily purchasing cost of milk: 300x60= Rs.18000 Quarterly purchasing cost of milk: 18000x90= Rs. 16,20,000

Cost of bread per loaf: Rs.50

Estimated bread requirement: 50/day Daily cost on bread: 50x50= Rs.2,500 Quarterly cost on milk: 2500x90= Rs. 225,000

Cost of Milk& Bread Calculated

Milk
Purchase price per liter Fuel (Calculated per liter) Other(Octroi,etc)
Bread Purchase price per loaf Fuel (Calculated per liter) Other(Octroi,etc)

52 5 3 60
45 2 3 56

Financial Plan contd

Sale price of milk per litre: Rs.78 Estimated milk requirement: 300 litres/ day Daily sales (milk): 300x78= Rs.23400 Quarterly sales (milk): 23400x90= Rs. 2106000 Sale price of bread per loaf: Rs.56 Estimated bread requirement: 50/day Daily sales (bread): 50x56= Rs.2800 quarterly sales (milk): 2,800x90= Rs. 252000

Comparison Customer Vs Milk

Initial Cost
Total requirement Delivery Vans Motor bikes Equipment (Deep freezers)*som e others equiptments Bottles Computer 1 1000 Price (Rs) Total Cost (Rs)

1
4

350,000/ each
45,000/ each 85,000

100,000(installments)
180,000 85,000

8/each 8000

8,000 8000

Office Furnishing
Big Drums(150 liters) 3

25,000
5000/each

25,000
15000 Rs. 421,000

Salary Expense
Number of people Quality Manager Labor force Driver (full time) Driver (part time) Delivery boy (full time) 2 1 2 8,000 4,000 5,000 16,000 4,000 10,000 1 Salary per head (Rs) 12,000 Aggregate Salary (Rs) 12,000 Total (Rs) 12,000

Delivery boy (part time)

Labor Office Staff

2
2

2,500
3,500

5,000
7,000 42,000

Computer operator 1 Assistant Sub total 1

9000 8000

9000 8000 17,000 71000

Market
Target Market Market Analysis Competitors Competitive Advantage

SWOT Analysis

Strengths

Dairy industry is the major source of food i.e. milk, meat, butter, cream, cheese, ghee. There is an extensive scope of milk production as Pakistan is the 5th largest milk producing country in the world. The business is aimed to provide High Quality, pure, fresh and hygienic milk to its customers Delivering fresh bread with milk is a new concept Free delivery at the doorstep of the customers. Business will use the valuable concept of Total Quality Management

Weaknesses

Maintenance and sustainability of quality of the two products (milk & bread) is a challenging and demanding task.

The business is a new entrant in the market in

Pakistan .

Business lacks the brand power.

Opportunities

Government of Pakistan and institutions like,

SMEDA are taking immense interest in developing the dairy sector. The same is true for private dairy farms/ industry

Dairy products needs are much higher than the

supply.

Supplying fresh milk in glass bottles is a new and

unique idea in Pakistan. It has not been used by any company in the country.

Threats
Monopoly of multinational firms.

General public is usually resistant to change and

hesitate to adapt quickly to new products.

Competition in the market. Bargaining power of suppliers Risk of rejection of the idea by the masses.

Management Structure

Partners will enact the overall plan Communication Employee Policies

Income Statement
HI Milk n Slice Income statement For the year ending December 31,2008
Sales (Included sales tax Rs.1509120) Cost of goods sold Gross profit Operating expenses : Salary expense(as per statement) Rent expense Utility bills expense Office supplies expense Fuel expense Maintenance expense Advertising expense Depriciation Installement(Delivery Van) (1700100) -----------Net income 351900 9432000 (7380000) 2052000 (852000) (160000) (120000) (60000) (120000) (40000) (22000) (32100) (96000)

*It is assumed that installment paid for delivery van is equal to its depreciation, so installment paid is considered as revenue expense.

Appropriation A/c
HI Milk n Slice Profit/Loss Appropriation A/c For the year ending December 31,2008
Net Profit Less: Share of Profit: Raahim (30%) Sania(20%) Faaiz(20%) Zahra(30%) (351900) X 105570 70380 70380 105570 351900 351900

Current A/c
For the year ending on December 31,2008
Dr
Raahim Sania Faaiz Zahra

Cr

Raahim

Sania

Faaiz

Zahra

Drawings

80000

60000

60000

80000

Share of profits

105570

70380

70380

105570

Bal c/d

25570

10380

10380

25570

105570

70380

70380

105570

105570

70380 10380

70380 10380

105570 25570

Bal b/d

25570

Cash Book
For the year ending on 31st December,2008
HI Milk n Slice Cash Book
Investment(Capital) 2000000 Purchase of Assets 321000

Sales

9432000

Cost of Sales

7380000

General Sales Tax(Received) 1509120

Miscellaneous Expense 1668000 Drawings 280000

Balance

3292120

12941120

12941120

HI Milk n Slice Balance Sheet For the year ending on December 31,2008
Fixed Assets: Motor Bike Equipment Bottles Computer Office Furniture Big Drums 180000 85000 8000 8000 25000 15000

Cost

Dep(@5%/annum) 18000 8500 800 800 2500 1500

Book Value 162000 76500 7200 7200 22500 13500 288900

Current Assets: Cash Less: Current Liabilities General Sales Tax Reserve Capital Employed (1509120) 1783000 2071900 3292120

Financed By:
Capital: Raahim Add: Current A/c Capital: Sania Add: Current A/c Capital: Faaiz Add: Current A/c Capital: Zahra Add: Current A/c Capital Employed 600000 25570 400000 10380 400000 10380 600000 25570 625570 2071900 410380 410380 625570

Income Statement
HI Milk n Slice Income statement For the year ending December 31,2009
Sales: Cost of goods sold Gross profit Operating expenses : Salary expense(as per statement) Rent expense Utility bills expense Office supplies expense Fuel expense Maintenance expense Advertising expense Depreciation Installement(Delivery Van) (1725100) -----------Net income 532100 10375200 (8118000) 2257200 (90000) (180000) (135000) (75000) (132000) (75000) (100000) (32100) (96000)

*With the start of the new year, the sale price has increased by 15%; whereas, cost prices are increased by 10%

Appropriation A/c
HI Milk n Slice Profit/Loss Appropriation A/c For the year ending December 31,2009
Net Profit Less: Share of Profit Raahim Sania Faaiz Zahra 159630 106420 106420 159630 532100 532100

(532100) X

Current A/c
For the year ending on December 31, 2009
Dr Raahim Sania Faaiz Zahra Cr Raahim Sania Faaiz Zahra

Drawings

40000

35000

37000

45000

Bal b/d Share of profits

25570 159630

10380 106420

10380 106420

25570 159630

Balance c/d

105200

56800

56800

105200

185200

116800

116800

185200

185200

116800

116800

185200

Balance b/d

105200

56800

56800

105200

Cash Book
For the year ending on 31st December,2009
HI Milk n Slice Cash Book
Cash Balance 3292120 Cost of Sales 8118000

Sales
General Sales Tax(Rec)

10375200
1660032

Miscellaneous Expense 1693000

Drawings General Sales Tax(Paid) 280000 1509120

Balance

3727232

15327352

15327352

HI Milk n Slice Balance Sheet For the year ending on December 31,2009
Fixed Assets: Motor Bike Equipment Bottles Computer Office Furniture Big Drums 180000 85000 8000 8000 25000 15000

Cost

Dep(@5%/annum) 36000 17000 1600 1600 5000 3000

Book Value 144000 68000 6400 6400 20000 12000 256800

Current Assets: Cash Less: Current Liabilities General Sales Tax Reserve Capital Employed Financed By: Capital: Raahim Add: Current A/c Capital: Sania Add: Current A/c Capital: Faaiz Add: Current A/c Capital: Zahra Add: Current A/c Capital Employed 600000 105200 400000 56800 400000 56800 600000 105200 705200 2324000 456800 456800 705200 (1660032) 2067200 2324000 3727232

Income Statement
HI Milk n Slice Income statement For the year ending December 31,2010
Sales: Cost of goods sold Gross profit Operating expenses : Salary expense (as per statement) Rent expense Utility bills expense Office supplies expense Fuel expense Maintenance expense Advertising expense Depriciation Installement(Delivery Van) (1833900) -----------Net income 660820 11412720 (8918000) 2494720 (940000) (200000) (150000) (85000) (180000) (100000) (50000) (32900) (96000)

*With the start of the new year, the sale price has increased by 15%; whereas, cost prices are increased by 10%

Appropriation A/c
HI Milk n Slice Profit/Loss Appropriation A/c For the year ending December 31,2010
Net Profit Less: Share of Profit Raahim Sania Faaiz Zahra 198246 132164 132164 198246 660820 660820

(660820) X

Current A/c
For the year ending on December 31, 2010
Dr Raahim Sania Faaiz Zahra Cr Raahim Sania Faaiz Zahra

Drawings

200000

100000

100000

200000

Bal b/d Share of profits

105200 198246

56800 132164

56800 132164

105200 198246

Balance c/d

103446

88964

88964

103446

303446

188964

188964

303446 Balance b/d

303446 103446

188964 88964

188964 88964

303446 103446

Cash Book
For the year ending on 31st December,2010
HI Milk n Slice Cash Book
Cash Bal b/d 3727232 Purchase of New Bottles 8000

Sales
General Sales Tax(Rec)

11412720
1826035

Cost of Sales
Miscellaneous Expense Drawings General Sales Tax(Paid) Balance

8918000
1801000 600000 1660032 3978955

16965987

16965987

HI Milk n Slice Balance Sheet For the year ending on December 31,2010
Fixed Assets: Motor Bike Equipment Bottles Computer Office Furniture Big Drums 180000 85000 16000 8000 25000 15000

Cost

Dep(@5%/annum) 54000 25500 3200 2400 7500 4500

Book Value 126000 59500 12800 5600 17500 10500 231900

Current Assets: Cash Less: Current Liabilities General Sales Tax Reserve Capital Employed Financed By: Capital: Raahim Add: Current A/c Capital: Sania Add: Current A/c Capital: Faaiz Add: Current A/c Capital: Zahra Add: Current A/c Capital Employed 600000 103446 400000 88964 400000 88964 600000 103446 703446 2384820 488964 488964 703446 (1826035) 2152920 2384820 3978955

Social Benefits
Environmental Friendly No waste ( In terms of used Milk Cartons) More Close to Nature No added Preservatives Direct from Farm Approach Guaranteeing convenience by providing the products at doorstep

Economic Benefits
Employment opportunities.

By ensuring / Business will provide hygienic milk and bread so it will help in lessening diseases that will indirectly help in improving economic conditions.
Competition will increase with the introduction of the business. This will have a positive impact on the market.

Future Plans
Acquisition of a farm Diversification Other Dairy products Cottage Cheese Butter Skimmed/ Unskimmed milk etc Different types of bread Cookies, Plain cakes

Net present value analysis Year Cash flows

Present value interest factors @ 20 %

0 1
2 3

(20,00,000) 1 3292120
3727232 3978955

(20,00,000) 2732460
2571790 2268004

.83
.69 .57

Net present Value(7572254-20,00,000) 5572254

The Net present Value is Rs 5572254 is Positive ,so the it is feasible to start the business.

Thank You!!!