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Business Plan of Fermented Probiotic Healthy Beverage

Prokick Shake of life!


Business Plan

1. Name of EnterpriseBiozen Corporation

2. Name of EntrepreneursAdnan MannanAnupam Das GuptaSumon BhattacharjeeShanto Banik

3. Logo of the Company

4. Address (Office & factory)15, Chandgaon BahaddarhatChittagong

5. Phone / Mobile no.+8801716903485, +88031650924

7

E-mail : [email protected]

8. Website: www. Biozen.com


Table of Contents

Sl Content PagesI Executive SummaryII Brief Description of the BusinessIII Description of Product/ ServiceIV Marketing Plan4.1 Name of major competitors and their position

4.2 Comparison with Competitors

4.3 Marketing Area

4.4 Target Customer

4.5 Price

4.6 Sales Forecasting

4.7 Marketing Strategy

4.8 Marketing budget

4.9 Risk of business

4.10 Seasonal trend

V Operations Plan

5.1 Stages in Production Process

5.2 Project Implementation Schedule

5.3 Production Capacity

5.4 List of Fixed Assets and their Depreciation

5.5 Repair and Maintenance Cost of Fixed Assets

5.6 Cost of Raw Materials

5.7 Manpower Engaged in Production

5.8 Factory Overhead Cost

5.9 Production Cost

5.10 Inventory management

VI Organization and Management Plan

6.1 Organizational Structure

6.2 Associate organizations

6.3 Succession Plan

6.4 Business Start-up Activities and Cost

6.5 Office Equipment

6.6 Salary and Benefits of the Employees


Sl Content Pages6.7 Administrative Expenses

6.8 Monitoring and Evaluation (M&E)

6.9 Business Social Responsibility (BSR)

6.10 Research and Development (R&D)

6.11 Training & Development

VII Financial Plan

7.1 Fixed Asset

7.2 Current Asset

7.3 Start-up Cost

7.4 Total Investment

7.5 Source of Fund

7.6 Schedule of Loan Payment

7.7 Income Statement

7.8 Break-Even Point

7.9 Projected Balance Sheet

7.10 Cash Flow Statement

7.11 Performance of the company

VIII Other Courses of Action

8.1 Environmental Issues

8.2 Ethical Issues

8.3 Legal issues

8.4 Intellectual Propery rights

8.5 Working Area

8.6 Networking Linkage/Partnership

8.7 Safety & Security

8.8 Use of ICT

IX Conclusion

X Appendices

Annex-I: Financial Ratio Analysis


I. Executive Summary

In this business plan, we tried to introduce a start up company like biotechnology based company.

This business plan is all about a biotechnology based business plan named Biozen Corporation. The

aim of this company is to make a safe and healthy nation through probiotic product named “Prokick”.

The entrepreneurs have taken the business initiative based on their creativity, analysis of different

business area, possibility of business growth, introducing a new area in Bangladesh and to build a

healthy generation and to achieve MDGs. This probiotic product is a combination of 4 beneficial

bacteria. According to the scientific report, these bacteria have not any adverse effect. These bacteria

will play significant role in improving digestion, immunity, reduce cholesterol, blood pressure, and

strengthen the body and active against some other harmful bacteria.

Here, we the entrepreneurs tried to develop a roadmap for marketing management, production and

operation management, organization and management plan, human resource management, sales

forecasting, optimum utilization of raw materials and resources, risk assessment and risk mitigating

techniques, financial analysis, productivity improvement, monitoring and evaluation system, business

social responsibility, research and development, training and development, environmental issues,

legal and ethical issues, safety and security measures, intellectual property rights.

We measured the potential market and demand of this type of product through an intensive survey

(attached) and we got positive response from 90 respondents divided into two categories: customers

and distributors. We targeted the customer level above age 5. In our business plan, we showed that we

reached in BEP at 1 year 11 month and growing very fastly. The specialty of our product is to produce

sauce, jelly, ice-cream in future and it’s possible for a customer to add this product with Tang,

Horlicks and the like.

We want to establish the business from January 15 ,2013. ……..workforce including skilled, semi-

skilled, unskilled are required for the business. We do believe that introducing this kind of product

will surely enhance a new dimension in our nation’s product basket and will add value to the

economy. Through introduction of this product people of developing countries like us will get the

flavor of developed countries.


II. Brief Description of the Business

1. Name of the Business : Biozen Corporation

2. Nature of Business : Manufacturing

3. Sector/Industry : Food and Beverage

4. Objectives : Use of biotechnology in food production and processing has become a new phenomenon over the world in the last few decades. Biotechnology based food products have drawn attention of health conscious people in the Western world. Recent research in biotechnogy has proved usefulness and effectivity of biotechnogy based products in maintaining good health system as well as solving various health problems like reducing cholesterol, controlling blood sugar level etc. But such biotechnology based products are very rare in South Asian Countries especially in Bangladesh. Keeping these factors in mind, Biozen has planned to set up biotechnology basd food industry for the first time in Bangladesh. The main objectives of the proposed plan are :

- To market biotechnology based product like probiotic health drinks, probiotic beverages etc.- To acquire large market share with quality health drinks in Bangladesh.- Providing safe, healthy, and consumer oriented biotechnology based products that will help to build a healthy generation and to achieve MDGs.- To create employment opportunity for unemployed people.

- To enhance GDP/GNP and to implement the govt. policy by industrialization.

- To earn foreign currency through export.

5. Employment :

Skilled Semi-skilled Unskilled

Permanent 6 - 13

Temporary 5 - 3

Total 11 16


6. Brief Introduction of the Entrepreneur(s) :

Which are the skills and qualifications of the entrepreneur(s)?

Sl Name & Address Educational Qualification

Experience in Other Business

Business Experience

Ownership (%)

1 Adnan Mannan M. Sc. (Biotechnology and Molucular Biology)

Diagonistic Business

Bouti Business

5 years

3 years

50

2 Anupam Das Gupta

M.B.A. (Finance and Banking)

SME Helpline Bangladesh Limited

3 years 20

3 Sumon Bhattacharjee

M.B.A. (Accounting and Information Systems)

Consultancy Business 3 years 15

4 Shanto Banik M BA

(Marketing)

Gold & jewellery 3 years 15

7. Type of Ownership- Partnership

8. Total Investment

Initial Investment Fixed Asset Current Asset Total

9. Loan & Equity :

Loan Equity TotalBDT. 10000000 (33.33%) BDT. 66.67 (50.00%) BDT. 30000000

(100.00%)

10. Potential Market:

Local International


Food and Beverage industry of all over Bangladesh.

South Asian and Middle East Countries

III. Description of Product/ Service

This is the first probiotic health and beverage drinks of Bangladesh. This health drinks has dynamic features. It will contain probiotic bacteria like ….These bacteria, if injected into human body in sufficient quantity … can improve digestive system, control high cholesterol level, prevent food poisoning, enhancing immune function and effective against harmful bacteria. These mentioned attributes of probiotic bacteria has been proved by a good number of reliable research. (Ref. of research). Major ingredient of our health drink will be imported burley in which probiotic bacteria will be injected. There is no established branded probiotic health drink in Bangladesh. But, probiotic health drinks are allowed in Bangladeshi market. Presently supplied probiotic beverages are imported from international market (e.g., Destiny group imports such beverages from Malyasia). It is worth mentioning that, marketing this type of product is a very successful and profitable business in the European market.That means, Bangladesh and even the South Asian Countries is a virgin/untapped market for probiotic health and beverage drinks. If successfully launched and public awareness can be created, our probiotic health and beverage products can easily penetrate into the local and

international market in future.

IV. Marketing Plan

Clear concept on market is necessary to make marketing plan. Market research is important in this regard. Marketing plan should be specific, informative and with reference.

1. Major Competitors and their position in the market

Identify your major competitors.Rank them in order of their position in the market.

Sl Competitors Position

1 Tang 1st

2 Horlicks 2nd

3 Rose fiber Probiotics 3rd

2. Comparison of product/service with competitors

Strength Weakness Opportunity ThreatYour business First probiotic

drink business in Bangladesh

Lack of public awareness

Huge undiscovered and untapped market for biotechnology based product

Entrance of international and local established brands with similar product

Tang Large market share, rebust

Not considered as

Entrance into the beverage market with

Entrance of international and local


brand image a health drink, Non-probiotic drink

diversified product brands with biotechnology based product

Horlicks Large market share, good product quality.

Non-probiotic drink

Inclusion of biotechnology based product in the product line

Entrance of international and local brands with biotechnology based product

Rose Fibre Probiotic (Imported from Malyasia by Destiny Group)

One of the very few probiotic health drink product available in Bangladesh.

No market awareness, Poor product features, high price, very very poor market share.

Huge undiscovered and untapped market for probiotic health and beverage drinks

Entrance of international and local established brands with similar product

3. Marketing Area:

What is the existing market/ market scenario of the product/ service?

-Health drinks and beverages hold a huge market in Bangladesh and South Asian Countires. This market can easily be converted into a market for probiotic health and beverage products by adding probiotic features to health drinks and beverages. Not only that, in the long run, probiotic bacteria can be injected to any other product like juice, sauce, jelly etc. to produce probiotic juice, probiotic sauce, probiotic jelly etc. So, though the existing market of probiotic foods and beverages seems very meager, in future total market of various food and beverage products can be converted into a profitable market for probiotic food and drinks.

In which areas will you market your products?

- In the short run (First 3-5 years)- All the divisions of Bangladesh- In the long run- The South Asian Countries.

Does your product have international market? Where?

-Probiotic food and beverage products are popular in Europe and USA. In future, the others areas like Asia, Middleeast and Africa can become a popular market for such products.

4. Target Customer:

Who will be the target customer segment of this product/ service in the market? The customers will be of above five (5) years in age.

What are the characteristics of the target group? (Quality or price concious? In which situation are they eager to buy? What factors do they consider when they buy?)

The target group will be quality conscious. They will be aware about this kind of product and will demand for that.

They are eager to buy that product when they will tired or bored. They will consider the below


factors..

1. Quality2. Price

3. Availability4. Product Information

5. Consistent performance6. Familarity7. Reference

8. Price value relationship etc.

5. Price:

Sl Product Category Unit Price (BDT)1 500 gm plastic bottle jar 250

2 250 gm refill pack 115 3 15 gm refill pack 8

6. Sales Forecasting:

How many units of products will be sold in the market?1. 500 gm plastic bottle jar -

How much (in BDT) do you expect to sell? (3 years)

Year Projected SalesDescription of Product Quantity Unit Price Total Taka

1 500 gm plastic bottle jar 30000 250 7500000250 gm refill pack 50000 115 575000015 gm refill pack 500000 8 4000000

2 500 gm plastic bottle jar 45000 280 12600000250 gm refill pack 57500 130 747500015 gm refill pack 575000 9 5175000

4253 500 gm plastic bottle jar 55000 290 15950000

250 gm refill pack 70000 135 945000015 gm refill pack 590000 10 5900000Total Sales 73800000

7. Marketing Strategy:

To achieve the sales target we will apply multidimensional marketing strategy such as product availability through retail stores, massive promotional tools, competitive pricing system, continuous development of product quality, establishing brand image etc.

The target customers are the age of above 5 years.We will identify and approach potential market through intensive survey among the customers and distributors (Questionnaire attached) and analysis of the survey report.

(a) Promotional Strategy:


Promotional strategies to sell the product are:

Promotional Tools 1 2 3 4 5 6 7 8 9 10 11 12Newspaper Advertisement

TVC 5 Days in each month

Face Book

Word of Mouth

Use of opinion leaders

Direct Marketing

FM Radio

Class Room References

Bill Board

Sign Board In 2nd YearCo-operative Advertising In 2nd YearSponsoring Events In 2nd YearMagazine Publish In 2nd Year

The most important feature is the creative advertisement, involvement of different consumers through different events.

(b) Price Strategy:

The pricing method we decided to apply is cost based pricing. With the per unit production cost a minimum amount of margin will add and sold to market.

(c) Market Expansion Strategy:

We will expand the market through: Introducing new flavours Introducing new product like sauce, jelly, ice-creamExpanding the business internationallyAddition of new ingredientsIncrease sales of products in existing marketsMoving into New Geography

(d) Distribution Strategy:

We will use Indirect and intensive method of distribution.Manufacturer ------Wholesaler ------- Retailers ------- Consumers.

What strategy will you take to choose the location of business?The manufacturing unit will be in Chittagong. There will be a store situated in Dhaka from where products will be distributed in different division of the country and this will help to

reduce cost.


8. Marketing Budget (Yearly):

Item Budget(a) PromotionNewspaper Advertisement Prothom Alo Last page, 6 column

-Consecutively first 3 days (Bdt. 13500*3*3)-1st year, one day in every two months (Bdt 13500*3*5)Local Daily: Dainik Azadi, Dainik Purbokon1st year, two days in each month (4000*2*12)

121500445500

96000Television Advertisement Advertisement in Channel - I

(6000*2*5*12) 720000Bill Board GEC in Chittagong & shahbag moor in Dhaka 1200000Banner In different occasion (Eid, pooja, pahela baishak,

16th december, 26 march) (3000*200)600000

(b) Distribution of product Truck cost + Pick up van cost + Push cart (31000 *12)

372000

Colorful tea stall & bus From 2nd year -Sponsoring different events

From 2nd year -

(c) Sales Commission 149760(d) Others (Specify)

Total 3704760

9. Risk of business:

What are the expected risks in your business?Temparature to maintain the bacteria.FirePayment of loan as per scheduleWhat steps can be taken to manage/overcome/mitigate these risks?Maintenance of temperature in optimum levelInsurance policy maintenanceConfirmation of sales and collection of arrear payment

Put tick () mark

Weather Flood

Fire Earthquake

Others (please specify):


V. Operations Plan

1. Stages in Production Process:

Describe the production process. What are the steps in the production process? Explain with Flow Chart.

What Quality Control and Standards should be maintained?Production process is dependent on fermentation technology. The production process will depend on collection of bacterial strain from waste material.Collection of wasteIsolation of Bacterial strainMixture of bacterial strain and nutrients in fermenterAgitation of mixture and formulation of barley in stirrerBottlingSealing and packaging

Regular research is needed for quality improvement. For safetyissue, laboratory should be aseptic and sterilized. For quality control hygiene should maintained strictly during mixing in the stirrer. Bacterial strain should be handled carefully.2. Project Implementation Schedule:

Work/Activities Year 11 2 3 4 5 6 7 8 9 10 11 12

Market surveyBusiness plan preparationRegistration and license for businessApplication for loanDecoration of office and factoryInitiative for import of machineriesInstallation of machineriesRecruitment of scientists and employeesTraining of employeesImport of raw materialsBuilding market awarenessTest production runGetting license from BSTICommencement of production

3. Production Capacity:

What is the yearly production capacity? (Quantity in units & Value in BDT)

Product Units Time Quantity Unit Price*

Taka

Prokick Health

500 gm plastic bottle jar

1 year 300000(1000 bottles per day for 300 days per year)

250 75000000


Drink 250 gm refill pack 1 year 360000(1200 bottles per day for 300 days per year)

115 41400000

15 gm refill pack 1 year 1200000(4000 packs per day for 300 days per year)

8 9600000

Total

4. List of Fixed Assets and their Depreciation: (Please see annexure-1)

Identify your fixed assets and their corresponding cost of depreciation.

Fixed Assets Quantity Price (BDT) Durability of Assets (in

years)

Depreciation per year (In Taka)

Land (No need to mention depreciation)

4 kathas 12000000 - -

Building 01 4000000 20 200000Machiery & Equipment

(1) Bioreactor 01 4000000 10 400000(2) Pecking, sealing,

and filling machine

01 2500000 20 125000

(3) Agitator 01 500000 10 50000(4) Refridgerator 01 300000 20 15000(5) Generator 01 300000 10 30000(6) Computer 10 250000 5 50000(7) Air Conditioner 4 208000 10 20800

Furniture & Fixture - 468000 10 46800Transport (Delivery Van)

6 1200000 10 120000

Others (Specify)Total

Rate of depreciation: Building@ 5% each year, Machineries & Equipment @ 10% each year, Furniture & Fixture and Transport @ 20% each year may be considered.

5. Repair and Maintenance Cost of Fixed Assets:

Fixed Asset Repair and Maintenance Cost*

Building 10000Machinery and equipment 80000Furniture and Fixture 10000

Total


* For the 1st year only. From the 2nd year onwards, repair and maintenance cost is assumed to increase by 5% per year (as shown in the income statement).

6. Cost of Raw Materials (yearly):

What is the requirement of raw materials? What will be the cost of raw materials?

What is the source of raw materials? Are the raw materials available round the year? Who is/are the supplier(s) of raw materials?

Description of Raw Materials

Unit Quantity Unit Price (BDT)

Cost (Taka)

Media for bacteria Media per ton

10 ton production

24000 per ton

240000

Burley M. ton 93.78 24690 2315428Milk powder/ lemon formulation

Formula per MT

12 100000 1200000

Total 3755428Burley will be imported from India. Media for bacteria and milk powder formula will be procured from local market. Raw materials will be available round the year.

7. Workforce Engaged in Production:

How many direct or indirect workers will be engaged in production? What level/category of skill is required?

Are the workers trained? If not, how they will be trained? How much wages will they be paid?

Are the workers available round the year? If not, what is the impact of this on production? Monthy Yearly

s.l Designation Type Basic/personNo. Basic House rent Medical others Total bonus

1 Microbiologis Permananent 11000 2 22000 11000 1400 2000 36400 44000 480800

2 Biotechnologist Permananent 11000 1 11000 5500 700 1000 18200 22000 240400

3 Chemist Permananent 11000 2 22000 11000 1400 2000 36400 44000 480800

4 Nutrition Officer Permananent 7252 1 7252 3626 700 1000 12578 14504 165440

5 Finance officer cum AccountantsPermananent 11000 1 11000 5500 700 1000 18200 22000 240400

6 Marketing OfficerPermananent 9500 1 9500 4750 700 1000 15950 19000 210400

7 Marketing OfficerContructual 8000 9 72000 864000

8 Lab Technicial Contructual 7000 1 7000 84000

9 R&D Contructual 15000 2 30000 360000

10 Consultant Contructual 25000 1 25000 300000

11 Security Guard Contructual 8000 2 16000 192000

12 Driver Contructual 7000 1 7000 84000

3702240

Consolidated

Consolidated

Consolidated

Consolidated

Yearly total

Consolidated

Consolidated

All the workers are available round the year. Trained scientist will be hired from local/domestic firms as well as fresh graduates from local educational institutions will be recruited. The workers will be trained by the recruited scientists.

8. Factory Overhead Cost:

Sl Description Ref Cost (yearly)1 Utilities (gas, electricity, water) 1200002 Depreciation of fixed assets V. Operation Plan- (4) 1057600


3 Repair and maintenance cost V. Operation Plan- (5) 1000004 Rent (land, building, machine

etc. if any)-

5 Others (Specify)Total

9. Production Cost:What will be the production cost of the product/service?

Sl Description Ref. Cost (yearly)1 Cost of Raw Materials V. Operation Plan- (6) 37554282 Wages V. Operation Plan- (7) 37022403 Factory Overhead Cost V. Operation Plan- (8) 1277600

Total 8711868

10. Inventory Management:

The company has a plan to maintain 5% inventory level. Since, the production cycle can be completed within 1 week, there will be no work in progress at the end of the year. Raw materials like burley will be improted once in a year. It is assumed that, inventory of burley and finished goods will be 5% of the total purchase and production. The company has sufficient storage capacity for storing the inventory.

VI. Organization and Management Plan

1. Organizational Structure:

What is the Organizational Structure of the business?Who will be in the management team? What are their experiences and qualifications?

Sl Name Experience Qualification1

2

3

4

2. Associate/Partner Organizations

Partner organizations Description1. Chittagong city corporation Supplier of waste.2. Department of Genetic Engineering and Biotechnology, University of Chittagong 3. Department of Biochemistry and Molucular Biology, University of Science,


3. Succession Plan

- Since the business is a partnership business, in absence of any one or two of the partner(s), the remaining partners will run the business. Death or retirement of any partner and any change in ownership will be dealt as per partnership deed.

4. Business Start-up Activities and Cost:Sl Business Start-up Activities Time Cost 1 Business Plan preparation 15 days Tk. 10,0002 Registration and license for business 30 days Tk. 2,5003 Application for loan 1 day 04 Contract/Agreement 10 days Tk. 20,0005 Purchase of land/ Rent (only time) - -6 Connection of utilities (gas, electricity, water) 2 months Tk. 1,20,0007 Recruitment 1 month Tk. 20,0008 Others 1 month Tk. 3,27,500

Total 3 months Tk. 5,00,000

5. Office Equipment:

SL. Items

Qn. Price per unit Duration

Total (Tk.)

1 Table (5 feet by 7 feet) 6 15000 10 Years 90000

2 Table (3 feet by 4 feet) 2

5,000 10 Years 10000

3 Table (Officers and Directors)

8

5,000 10 Years 40000

4 Chair (Normal) 40 500 10 Years 20000

5 Chair (Revolving) 20 3000 10 Years 60000

6 Sofa Set 3 16000 10 Years 48000

7 File cabinet 10 4000 10 Years 400008 Almirah 4 15000 10 Years 600009 Fittings & others 10 Years 100000

Total 4,68,000

6. Salary of the Employees:

Year 1

Type

Basic

No.

House rent

Medical

others

Monthly Salary

MonthyTotal

Yearlybonus

Yearly total (TK.)s.l Designation

1 Microbiologis Permananent 11000 2 5500 700 1000 18200 36400 44000 480800

2 Biotechnologist Permananent 11000 1 5500 700 1000 18200 18200 22000 240400


3 Chemist Permananent 11000 2 5500 700 1000 18200 36400 44000 480800

4 Nutrition Officer Permananent 7252 1 3626 700 1000 12578 12578 14504 165440

5Finance officer cum Accountants Permananent 11000 1 5500 700 1000 18200 18200 22000 240400

6 Marketing Officer Permananent 9500 1 4750 700 1000 15950 15950 19000 210400

7 Marketing Officer Contructual 8000 9 Consolidated 8000 72000 0 864000

8 Lab Technicial Contructual 7000 1 Consolidated 7000 7000 0 84000

9 R&D Contructual 15000 2 Consolidated 15000 30000 0 360000

10 Consultant Contructual 25000 1 Consolidated 25000 25000 0 300000

11 Security Guard Contructual 8000 2 Consolidated 8000 16000 0 192000

12 Driver Contructual 7000 1 Consolidated 7000 7000 0 84000

Total Payments in Year 1 3702240

7. Administrative Expenses:

General & Administratives ExpensesSalary & allown 3,702,240 Repair and others 100,000 Office Expenses 120,000 Other Admin. Expenses 500,000 Marketing cost 4,441,368 Total G & A Expenses 8,863,608

8. Monitoring and Evaluation (M&E)

How will you monitor the progress of implementation of the plan?What are your objectively verifiable indicators of success?

9. Business Social Responsibility (BSR)

What activities you will undertake to fulfill your responsibility towards the community?

10. Research and Development (R&D)

Are there areas or issues related to your proposed business that need to be studied further? What are your prospects in terms of the present and future development of the business?

11. Training & Development

How will you build the capacity/skills of your management and employees?

VII. Finanancial Plan1. Fixed Assets:

Item Ref. Present (Tk) Proposed (Tk)Land V. Operation Plan-(4)


Building V. Operation Plan -(4)

Machineries & Equipment V. Operation Plan -(4)

Furniture & Fixture V. Operation Plan -(4)

Vehicle (Van, Truck if any) V. Operation Plan -(4)

Others (Specify) V. Operation Plan -(4)

Total

2. Current Asset:Description Duration Ref. Present (Tk) Proposed (Tk)

Raw materials expenditure V. Operation Plan -(6)

Wages V. Operation Plan -(7)

Factory Overhead expenditure

V. Operation Plan -(8)

Marketing expenditure IV. Marketing Plan-(8)

Administrative expenditure VI. Organization and Management Plan - (7)

Others (Specify)Total

What is the cost of Fixed Asset and Current Asset?How much capital is needed?

3. Start-up Cost VI. Organization and Management Plan - (4) = Taka

4. Total Investment VII. Financial Plan- (1+2+3) = Taka

5. Sources of Fund:

How much capital you need for your business? How will you source this?

If you are availing any loan from any bank/financial institution, please describe in detail.

Description Loan Equity TotalPresent Proposed Present Proposed Present Proposed

Bank/ FI

Others Bank/FI Others

Land Building MachineriesFurniture and fixturesTransportationBusiness Start up costOthers (specify)Total fixed assetNet current assets

Total Investment


6. Schedule of Loan Repayment:

Amount 10,000,000 Maturity 5.25 yrs 63 monthsMoratorium (principal only) 0.25 yrs 03 monthsRepayment Period 5.00 yrs 60 monthsInterest Rate 16.00% p.a. 1.33% per monthIDCP 400,000 Installment 252,908

Month

Installment

NumberOpeningBalance

Installment Closing

Amount monthly Interest Principal Balance

0 0 10,400,000 0 0 0 10,400,000 2013 ,1 1 10,400,000 252,908 138,667 114,241 10,285,759

2 2 10,285,759 252,908 137,143 115,765 10,169,994 3 3 10,169,994 252,908 135,600 117,308 10,052,686 4 4 10,052,686 252,908 134,036 118,872 9,933,814 5 5 9,933,814 252,908 132,451 120,457 9,813,357 6 6 9,813,357 252,908 130,845 122,063 9,691,293 7 7 9,691,293 252,908 129,217 123,691 9,567,603 8 8 9,567,603 252,908 127,568 125,340 9,442,263 9 9 9,442,263 252,908 125,897 127,011 9,315,252

10 10 9,315,252 252,908 124,203 128,705 9,186,547 11 11 9,186,547 252,908 122,487 130,421 9,056,126 12 12 9,056,126 252,908 120,748 132,160 8,923,967

2014, 1 13 8,923,967 252,908 118,986 133,922 8,790,045 2 14 8,790,045 252,908 117,201 135,707 8,654,337 3 15 8,654,337 252,908 115,391 137,517 8,516,821 4 16 8,516,821 252,908 113,558 139,350 8,377,470 5 17 8,377,470 252,908 111,700 141,208 8,236,262 6 18 8,236,262 252,908 109,817 143,091 8,093,171 7 19 8,093,171 252,908 107,909 144,999 7,948,172 8 20 7,948,172 252,908 105,976 146,932 7,801,239 9 21 7,801,239 252,908 104,017 148,891 7,652,348

10 22 7,652,348 252,908 102,031 150,877 7,501,471 11 23 7,501,471 252,908 100,020 152,888 7,348,583 12 24 7,348,583 252,908 97,981 154,927 7,193,656

2015, 1 25 7,193,656 252,908 95,915 156,993 7,036,663 2 26 7,036,663 252,908 93,822 159,086 6,877,577 3 27 6,877,577 252,908 91,701 161,207 6,716,370 4 28 6,716,370 252,908 89,552 163,356 6,553,014 5 29 6,553,014 252,908 87,374 165,534 6,387,479 6 30 6,387,479 252,908 85,166 167,742 6,219,738


7 31 6,219,738 252,908 82,930 169,978 6,049,760 8 32 6,049,760 252,908 80,663 172,245 5,877,515 9 33 5,877,515 252,908 78,367 174,541 5,702,974

10 34 5,702,974 252,908 76,040 176,868 5,526,106 11 35 5,526,106 252,908 73,681 179,227 5,346,879 12 36 5,346,879 252,908 71,292 181,616 5,165,263

2016, 1 37 5,165,263 252,908 68,870 184,038 4,981,225 2 38 4,981,225 252,908 66,416 186,492 4,794,733 3 39 4,794,733 252,908 63,930 188,978 4,605,755 4 40 4,605,755 252,908 61,410 191,498 4,414,257 5 41 4,414,257 252,908 58,857 194,051 4,220,206 6 42 4,220,206 252,908 56,269 196,639 4,023,567 7 43 4,023,567 252,908 53,648 199,260 3,824,307 8 44 3,824,307 252,908 50,991 201,917 3,622,390 9 45 3,622,390 252,908 48,299 204,609 3,417,780

10 46 3,417,780 252,908 45,570 207,338 3,210,443 11 47 3,210,443 252,908 42,806 210,102 3,000,340 12 48 3,000,340 252,908 40,005 212,903 2,787,437

2017, 1 49 2,787,437 252,908 37,166 215,742 2,571,695 2 50 2,571,695 252,908 34,289 218,619 2,353,076 3 51 2,353,076 252,908 31,374 221,534 2,131,542 4 52 2,131,542 252,908 28,421 224,487 1,907,055 5 53 1,907,055 252,908 25,427 227,481 1,679,574 6 54 1,679,574 252,908 22,394 230,514 1,449,061 7 55 1,449,061 252,908 19,321 233,587 1,215,474 8 56 1,215,474 252,908 16,206 236,702 978,772 9 57 978,772 252,908 13,050 239,858 738,914

10 58 738,914 252,908 9,852 243,056 495,858 11 59 495,858 252,908 6,611 246,297 249,562

12(adjusted) 60 249,562 252,908 3,346 249,562 0

Summary of Loan Scheduling

Year 01 Year 02 Year 03 Year 04 Year 05Opening Balance 10,400,000 8,923,967 7,193,656 5,165,263 2,787,437 Installment 3,034,896 3,034,896 3,034,896 3,034,896 3,034,896 Interest 1,558,863 1,304,585 1,006,503 657,070 247,459 Principal Payment 1,476,033 1,730,311 2,028,393 2,377,826 2,787,437 Closing Balance 8,923,967 7,193,656 5,165,263 2,787,437 0

7. Income Statement:

Projected Income Statement Year 01 Year 02 Year 03 RevenueSales revenue* 50,133,600 94,032,000 165,528,000Less Vat 4,557,600 9,403,200 15,048,000 Total revenue/Sales 45,576,000 94,032,000 150,480,000 Operating CostMedia for Bacteria** 240,000 120,000 120,000 Formulation cost 1,200,000 1,200,000 1,320,000 cost of Barlery 2,315,428 4,927,729 8,240,857 Depreciation 1,010,800 1,010,800 1,010,800


wastage cost 6,000 1,000 1,000 Labor cost 44,000 48,400 53,240 cost of packaging 1,836,000 3,801,600 6,359,760 Total Operating Cost 6,652,228 11,109,529 17,105,657 Gross Profit 38,923,772 82,922,471 133,374,343 General & Administratives ExpensesSalary & allown 3,702,240 4,015,040 4,303,840 Repair and others 100,000 105,000 110,250 Office Expenses 120,000 126,000 132,300 Other Admin. Expenses 500,000 300,000 315,000 Marketing cost 4,441,368 7,876,256 8,684,040 Depreciation of Office equipment 46,800 46,800 46,800 Total G & A Expenses 8,910,408 12,469,096 13,592,230 EBIT 30,013,364 70,453,375 119,782,113 Interest Expenses 1,558,863 1,304,585 1,006,503 Net Profit before Tax 28,454,501 69,148,790 118,775,610 Corporate Tax 25% 7,113,625 17,287,197 29,693,903 Net Profit After Tax/ Before Appropiation 21,340,876 51,861,592 89,081,708 Opening Balance of Retained Earning 0 21,340,876 73,202,468 Net Addition During the Year 21,340,876 51,861,592 89,081,708 Sub Total 21,340,876 73,202,468 162,284,176 Dividend Declared 0% 0 0 0 Retained Earning 21,340,876 73,202,468 162,284,176

* Sales revenue of the First year based on only Dhaka and Chittagong Divisio & Second year sales based on whole country through dealership of all divisional cities.** Cost of Meadia for becteria will be reduced by 50% since we will reproduce the becteria that produced of the previous year.

8. Break-Even Point

What is the Break-Even Point? Represent in a graph (if possible)What are the total sales and number of units sold needed to break even?

Description Fixed Cost Variable Cost

Variable Cost

Fixed Cost


Total Fixed Cost

Total Variable Cost

9. Projected Balance Sheet

Projected Balance Sheet

Year 01 Year 02 Year 03Current Assets:Cash & Bank 19,843,665 65,304,766 146,602,495 Accounts Receivable 3,745,973 7,728,658 12,368,219 Advance, Deposits & Prepayments 500,000 400,000 300,000 Other receivable 1,872,986 3,864,329 6,184,110 Inventory 0 0 0

Total Current Asset 25,962,624 77,297,753 165,454,82

4

Fixed Assets:Fixed Assets at Cost 25,726,000 25,726,000 25,726,000 Less Accumulated Depreciation 1,057,600 2,115,200 3,172,800 Total Written Down Value of Fixed Asset 24,668,400 23,610,800 22,553,200

Total Assets 50,631,024 100,908,55

3 188,008,02

4

Current Liabilities:Trade Creditors 0 0 0 Accounts Payable 366,181 512,429 558,585 Sub Total 366,181 512,429 558,585

Long Term LoanLong Term Loan 8,923,967 7,193,656 5,165,263 Sub Total 8,923,967 7,193,656 5,165,263

Total Liabilities 9,290,148 7,706,084 5,723,848

Equity:Paid Up Capital 20,000,000 20,000,000 20,000,000 Retained Earnings 21,340,876 73,202,468 162,284,176

Sub Total 41,340,876 93,202,468 182,284,17

6

Total Liability Plus Equity 50,631,024 100,908,55

3 188,008,02

4

10. Cash Flow Statement

current Year 01 Year 02 Year 03 Year 04 Year 05Cash Flow from Operating Activities

Net Profit after Tax 0 21,340,876 51,861,592 89,081,708 99,075,120 110,095,91

5 Add:Depreciation 0 1,057,600 1,057,600 1,057,600 1,057,600 1,057,600 (Increase)/Decrease in other recivable (1,872,986) (1,991,342) (2,319,781) (618,411) (680,252)


(Increase)/Decrease in Accounts Receivable (3,745,973) (3,982,685) (4,639,562) (1,236,822) (1,360,504)(Increase)/Decrease in Other Current Assets (500,000) 100,000 100,000 0 0 Increase/(Decrease) in Trade Creditors 0 0 0 0 0 Increase/(Decrease) in Accounts Payable 366,181 146,247 46,156 45,677 49,745 Increase/Decrease in Inventory 0 0 0 0 0

Cash from Operating Activities 0 16,645,69

8 47,191,41

2 83,326,121 98,323,164 109,162,50

4 Cash Flow from Investing Activities Fixed Assets Addition (25,726,000) Investment

Cash from Investing Activities(25,726,00

0) 0 0 0 0 0 Cash Flow from Financing Activities Share Capital 20,000,000 Loan 10,400,000 Dividend Payment 0 0 0 0 0 Repayment of Term Loan (1,476,033) (1,730,311) (2,028,393) (2,377,826) (2,787,437)Cash Flow from Financing Activities 30,400,000

(1,476,033)

(1,730,311)

(2,028,393)

(2,377,826)

(2,787,437)

Net Cash Flow 4,674,000 15,169,66

5 45,461,10

2 81,297,728 95,945,338 106,375,06

7

Beginning Cash Balance 0 4,674,000 19,843,665 65,304,766 146,602,49

5 242,547,83

3

Ending Cash Balance 4,674,000 19,843,66

5 65,304,76

6 146,602,49

5 242,547,83

3 348,922,90

0

11. Performance of the Company (For existing enterprise only)

What was the performance of the company during last 3 years?

Period Total Revenue (Tk.)

Total Expenses

(Tk)

Gross Profit (Tk.)

Other Expenses

(Tk)

Net Profit (Tk.)

VIII. Other Courses of Action

1. Environmental Issues:

How does your plan address environmental issues such as: waste management, sustainable development of raw materials, ecological balance, etc?

How will you use green technology/ energy efficient equipment in your business?


Do you require any clearance from Department of Environment? Which category does your business fall in terms of location and influence on environment?

Is there a need for environment friendly waste management plant? Do you plan to use it?

2. Ethical Issues:

What actions will you take to maintain ethical standards of your business in terms of monopoly, fairness in market, loss, profit, etc.

3. Legal Issues:

Biozen’s will comply with the following policies, rules and regulations- Existing industrial policy of the Government- Bangladesh Labour Code 2006-

4. Intellectual Property Issue:Formula of probiotic health drink production will be patented for next three years. Biozen will start its business by collecting license from the Chittagong City Corporation. Biozen’s product will be certified by BSTI, BCSIR and Genetic Engineering & Biotechnology Dept., University of Dhaka. Biozen’s first probiotic health drink product named “Prokick” will be trademarked.5. Working Environment:

Biozen is an equal opportunity employer. The employees will be recruited on the basis of caliber and experience. The company will formulate a service rule to guide workers recruitment, compensation, and promotion. Since the company is operating in food and beverage industry, product quality is a very vital issue. Biozen will formulate effective motivational plan based on decent compensation and sales commission, performance bonus and incentives, regular employee training. The employed scientist, if required, will be given foreign training. In the long run, Biozen has a plan to run a child care centre and medical centre for regular health checkup of the employees. If required, the employees will be given training and counseling to maintain peace and harmony in the working environment.

6. Networking Linkage/ Partnership:

Biozen will go for long run relationship with stakeholders. Biozen’s policy is to maintain win-win situation with the suppliers of raw materials, marketing intermediaries (wholesalers, retailers), employees, and consumers. The suppliers of raw materials (burley, milk powder) will be asked to supply quality raw material and the company will ensure timely payment to them. Biozen will retain favourable credit policy for the marketing intermediaries. The sales persons will be given proper training for maintaining encouraging liaison with the wholesalers and retailers. Biozen is an equal opportunity employer and it will maintain healthy and safe working environment. For the consumer, Biozen will serve quality product at competitive price. Biozen’s product will be certified by BSTI, BCSIR.

7. Safety and Security Issues:

To ensure safety and security of the employees and the organization, Biozen will take the following measures-

- Establish a production plant based on design of bioteck industry expert.


- Ensure internal factory environment as per requirements of Bangladesh Labour Code 2006.- Employees will be given training on use of fire extinguisher, use of emergency exit etc.

8. Use of ICT

Biozen will use the following ICT facilities to manage business- Computers connected by a local area network (LAN).- Accounting software like ‘Tally’ will be used.

IX. Conclusion

We tried to introduce biotechnology based business in Bangladesh. This is a different and new area of business.

Our target is to provide healthy beverage. This health drinks provides six beneficial features against diseases. There is not any existing major and established brand in the local market with same features. We want to be the market leader in probiotic business within one year .We also wants to create on those beneficiary products. This product is not only a beverage or health drinks it can serve various pharmaceutical effects or purposes.

New products will launch after second. Same technology can be used to produce sauce, jelly, ice-cream. I t can also lead to scientific business. Bacteria produced in our lab can be sold to other laboratories and companies. We will also promote industrial academic linkage for developing our R & D sector. Marketing policies will include TVC, paper advertisement, FM radio, word of mouth.

This business will involve scientists and laborer .it will create new employment opportunity for biotechnologist and microbiologist. A new door for business arena of Bangladesh is going to be initiated.


X. Appendices

Please attach the following documents as per availability:

1. Breif biography with copy of national ID of all entrepreneurs2. Company brochure (if any)3. Market research report4. Sector study report 5. Detail list of machineries 6. Copy of Balance Sheet, Income Statement and Cash Flow statement of previous year (for

existing enterprise)7. Trade license, Certificate of Incorporation, Memorandum of Articles, Article of Association,

Partnership deed (for existing enterprise)8. TIN certificate, VAT registration (for existing enterprise)9. Factory/Office Layout plan10. Clearance from Department of Environment, Fire License, Boiler registration certificate etc

(if applicable)11. Bank Statement (for existing enterprise)12. Loan sanction letters (if any loans availed) 13. Other supporting documents of information and data used in business plan


Annex-I: Financial Ratio Analysis

Production Cost

Total Production Cost (V. Operation Plan- (9)

Unit Cost of Product = Total No. of Units produced (IV. Marketing Plan (6)

Ratios related to Income Statement

Ratio Ref. ResultReturn on Investment or ROI %

=

Net ProfitÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ

X 100Total Investment (VII. Financial Plan- 4)

Gross Profit ratio/ Margin=

Gross ProfitÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ

Net Sales

Operating Profit Ratio

=

Earnings before interest and taxes (EBIT)ÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ

Net Sales

Net Profit Ratio/ Margin

=

Earnings after taxes (EAT)ÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ

Net Sales

Interest Coverage Ratio

=

Earnings before interest & taxesÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ

Interest

Break-Even Point

Description Ref. ResultBreak-Even Point

=

FCÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ

(S-v)

= Total Fixed Cost in first year (FC)ÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ

Total Variable Cost in first year (VC)


Unit Price of Product (S) - ÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ Total production in first year (P)

Balance Sheet related Ratios

Ratio Ref. ResultAcid-Test/ Quick Ratio

=

Quick assetsÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ

Current Liabilities

Current Ratio Current AssetsÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ

Current Liabilities

Net Working Capital

=

Total Current Assets –

Total Current Liabilities

Debt Equity Ratio

=

Total Debt (long term debt + current liabilities)

ÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑEquity

Leverage Ratio or Debt/Worth Ratio =

Total LiabilitiesÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ

Net worth

Return on asset (RoA)=

Net Profit after taxÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑÑ

Total asset


Internal Rate of Return (IRR)

Determination of Internal Rate of Return using Discount Cash Flow (DCF) method:

1. Determine the Fake Pay Back Period of the proposed investment (project cost)

Pay Back Period = Project Cost / Annual Cash Inflow

2. Find out 2 discount rates closer to Fake Pay Back Period from Table- A4 (One bigger and one smaller than that)

3. Find out Present Value (PV) of 2 discount rates

PV = Cash Inflow X Discount rate

4. Find out 2 Net Present Value (NPV)

NPV = PV - Project Cost

5. Determine Internal Rate of Return by interpolation

Internal Rate of Return (IRR) = A + [C/C-D] (B-A)

where, A = Lower discount rate

B= Higher discount rate

C= NPV at lower discount rate

D= NPV at higher discount rate

Alternative Method:

Internal Rate of Return could be determined by using IRR formula of Microsoft Excel.

sme final- latest

Documents

management plan

risk of business

business initiative

succession plan

production cost

marketing management

possibility of business

marketing area