Beruflich Dokumente
Kultur Dokumente
28 Feb 2009
Reported To:
The Netherlands
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Business Plan: 2009
Foreword (Personal):
This business plan demonstrates the complexity and costs of managing Seeds
Enterprises in these times to meet diverse public expectations. Innovation and
creativity are essential to craft strategic management options for the future. Our
congressionally appropriated budget must be influenced with a variety of community
resources, grants and other funding sources.
ABS Enterprises could not begin to fulfill its mission today without the help of the
thousands of volunteers who generously dedicate their time and energy to the
betterment of the Enterprises. Their help with everything from maintaining trails,
staffing visitor centers, collecting resource data and leading nature hikes is absolutely
essential and greatly appreciated.
Through this business plan, I hope to encourage even greater interest in collaborative
efforts to sustain the remarkable values this ABS Enterprises offers to the people of
Gujranwala and the nation. Because our goals can only be reached through a vehicle
of a plan, in which we must fervently believe, upon which we must vigorously act.
There is no other route to success.
S. Azam
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Business Plan: 2009
PRELIMINARIES
Contact us
Shahzad Azam
Gujranwala, Pakistan
Tel:+31641631796
Mob: +31641631796
Email:bforbajwa@hotmail.com or
Shahzadbajwa07@yahoo.com
Professional Advisers
Email: Dick1@wittenborg.eu
Email: peter.van_oosten@wiu3.wittenborg.eu
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Business Plan: 2009
Table of Contents
Executive Summary ..................................................................................... 6
1 Introduction ............................................................................................... 6
1.1 Project Brief ............................................................................................................................ 6
1.2 The Main Components .......................................................................................................... 7
1.3 Types of Seed processing Plants ............................................................................................ 7
1.3.1 Mobile .............................................................................................................................. 7
1.3.2 Fixed ............................................................................................................................... 7
1.4 Opportunity Rationale .......................................................................................................... 7
1.5 Proposed Capacity ................................................................................................................. 8
1.6 Total Project cast .................................................................................................................... 8
2 Mission ....................................................................................................... 9
3 Current Industry Structure ..................................................................... 10
4Vission ........................................................................................................ 11
5 Organization ............................................................................................. 11
6Management Plan ...................................................................................... 12
7 Operational Plan ....................................................................................... 12
8 Raw Materials........................................................................................... 13
8.1 Raw Material ............................................................................................................................ 13
8.2Process Flow ............................................................................................................................... 13
8.3 Seed Processing .......................................................................................................................... 14
8.3.1 Drying ............................................................................................................................................... 14
8.3.2 Cleaning ............................................................................................................................................ 15
8.3.3 Grading .............................................................................................................................................. 15
8.3.4 Packing............................................................................................................................................... 15
8.3.5 Final Products ..................................................................................... 15
9 Competitors Analysis ................................................................................ 17
10SWOT Analysis .........................................................................................18
11 Marketing.................................................................................................19
12 Human Resource Requirements..............................................................19
13 Machinery And Equipment Details ........................................................ 20
14 Land & Building ...................................................................................... 20
15 Project Economics ................................................................................... 21
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Business Plan: 2009
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Business Plan: 2009
The purpose and scope of this information business plan is to introduce the subject matter and
provide a general idea and information on the said area. All the material included in this
document is based on data/information gathered from various sources and is based on certain
assumptions. Although, due care and diligence has been taken to compile this document, the
contained information may vary due to any change in any of the concerned factors, and the
actual results may differ substantially from the presented information. The prospective user of
this memorandum is encouraged to carry out his/her own due diligence and gather any
information he/she considers necessary for making an informed decision.
ABS Seed Enterprise & Processing Ltd is a pilot seed enterprise that will be established with the
technical assistance of UOA (Faisalabad) as part of its Seed Industry Commercialization
Programme. Ten leading farmers with long years of seed production experience as contract
growers will pool their resources together including land and money to establish the enterprise.
ABS Seed Enterprise will differentiate itself from other suppliers through lower pricing and
unique promotional techniques. By specializing in just a few of the most popular varieties, ABS
Seed Enterprise will gain access to the largest segment of a growing seed market for wheat and
rice.
1 INTRODUCTION
1.1 Project Brief
Seed processing unit is a project in agriculture sector in which Approved/Certified seeds of
wheat and rice will be produced through the multiplication1 of Basic Seed (Breeder seed), which
will be acquired from seed research institutes & Seed Corporations. This business can be started
in the rural and pre-urban areas. Under the proposed project, the approved seed will be
processed and marketed in the local market. The processing of the seed involves cleaning,
grading, treating, packing, and storing operations. Currently, there is a shortage of the approved
seed, due to which its price has spiraled up. Hence, it has become difficult for a farmer to
purchase seed at a higher price. The proposed project will facilitate in fulfilling this gap and will
provide wheat and rice seed suitable for sowing. Moreover, this project in the long-run can be
considered as a lucrative investment because the potential for quality seed is quite high in the
agriculture market. Processing is a value addition activity which improves the physical purity
and health of seed stock by removing various contaminants including undersized and shriveled
grains, inert matter and seeds of other crops.
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Business Plan: 2009
1.3.1 Mobile
It consists of one or two combined machines. Generally, it is an air screen cleaner above or
combined with an indented cylinder. A separate treater may accompany the processing machine.
1 Multiplication is the growth of certified seeds through supplying basic seed to the selected
registered growers, from whom the output of their crops of wheat and rice will be purchased.
1.3.2 Fixed.
It has two types of layout which are used for processing of large quantity of seed:
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Business Plan: 2009
Percentage. The Government of Pakistan has also declared this sector as an industry, to meet the
rising demand in the agriculture sector, especially in wheat and rice, as these two crops are
considered to be the staple crops. Wheat fulfils the basic need of food of majority of the
populace, whereas the rice is capable of generating great profits as it has a huge export potential.
In this context, Small & Medium Enterprise Development Authority (SMEDA) has
commissioned to undertake a Pre-Feasibility study for finding the underlying potential in the
seed processing industry.
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Business Plan: 2009
The proposed Seed Processing Unit needs a capital investment of about Rs.12.840 million which
includes machinery and equipment. In addition to this, a sum of Rs.0.901 million is required as
working capital, which will be used for purchasing raw seeds as well as for meeting the initial
expenses of the first year.
2 Mission
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Business Plan: 2009
ABS Seed Enterprise will be created for the primary purpose of providing high quality seed of
the best wheat, rice, sunflower, cornflower, and many more varieties to farmers in the Eastern
and Central regions of Punjab, Pakistan, which are considered the bread basket of the country.
The enterprise has a potential to gain reputation for offering quality seeds that provides great
value to farmers in irrigated land. It will take advantage of the growing demand for quality seed
of new wheat and rice varieties with outstanding flour and cooking qualities respectively.
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Business Plan: 2009
4 Vision:
Other existing suppliers in Punjab province produce seed of either traditional varieties, or old
improved varieties that no longer perform well. ABS enterprise will therefore be in a good
position to capture a significant portion of the local market for wheat and raise seed, since it will
introduce new and better performing varieties. This tightly focused approach will also make it
easier for ABS Seed Enterprise to establish and attain the position of a seed industry leader. This
enterprise is projected to return a profit margin of 46% in its very first year of operations, due in
a large part to the size of the market, a competitive price for seed, and the relatively low
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Business Plan: 2009
investment required beginning operations. The first year (2009) sales revenue is projected to
exceed $47, 000. The profit that is generated will be used for reinvestment in the enterprise.
5 Organization
ABS Seed Enterprise will rely on the proven knowledge, skills and experience of its Leader
(Owner) Mr.Azam, who brings over decades related to the forming in the lands because he is a
landlord and have enough experience to the handling enterprises and knowledge of seeds.
Assisting Mr.Bilal will be Mr. Mohammad Zohaib, who has considerable technical experience in
seed production and can meet the high quality standards that ABS Enterprise has set for its
seed.
Azam
C O E/ D i r ec t o r
Bilal Zohaib
G ene ral Manag er O perat ion Man age r
Finance
Marketing/ Technical Assistances
Department Sales /Mechanics
Department
6 Management Plan
ABS Enterprise plans to keep wage and salary expenses low, at least initially. To achieve this
objective, all management positions will be occupied by the group enterprise members who
fortunately possess the relevant qualifications and experience. The remaining staff will be daily
waged workers, and casual labourers who will be hired during the busy periods.
Mr. Azam's long experience and good personal skills will be vital in leading ABS in the right
direction. Another member of the group enterprise, Mr. Mazhar, a retired certified accountant
with valid financial management experience will handle the enterprise's finances. This position
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Business Plan: 2009
will be vital to continued financial viability of the business. With a small number of employees,
ABS will encourage dynamic teamwork and open access with no bureaucratic barrier. The
business will use its profit to provide
attractive working conditions and appropriate motivate that will keep its dedicated staff in the
enterprise.
7 Operational plan
Based on a survey of farmers in Central Punjab in Pakistan, it has been determined that the
current total annual requirement for wheat seed is about 125,000 tones and 10,000 tones for
rice seed. Most farmers use older varieties and use their own farm-saved seed. This own seed is
of poor quality and the varieties are mixed. There is therefore a persistent high demand for
quality seed of new varieties, for which the farmers are prepared to pay higher prices. ABS plans
to enter the market and sell a total of 10,500 seers and 14,300 seers (1 seer = 7 kg seed) of
certified seed respectively of new wheat and rice varieties in the first two seasons of operation
and increasing this gradually to a combined total of about 50,000 seers by the fifth year. For
this, the owners will contribute some land each and the enterprise will also sign contract with
growers and produce most of the seed on their own lands. The enterprise will need initial capital
to construct a store with sufficient office space, and buy furniture, a seed cleaning plant, a
transport van, three motor cycles, ten bicycles, two computers and one printer, and five mobile
telephones. In addition, the business will require sufficient working capital to buy necessary
inputs (foundation seed, fertilizer, herbicides, packaging material and seed treatment chemical),
to purchase raw seed from contract growers, to undertake post-harvest operations and to meet
other day-to-day expenses. The owners will contribute 20% of the funds required, and the
enterprise will need to raise a long-term bank loan for the rest of the amount required at 15%
service charge. In the first year, ABS enterprise will select key farmers who are already
knowledgeable in seed production to grow foundation seed of new irrigated wheat varieties on
contract. One of the enterprise members is an experienced agronomist who will closely
supervise the field operations and Coordinate raw seed purchases at harvest time.
The owner of ABS has long-term relationships with the area’s best farmers and is confident that
each will provide quality service. An intensive training programme will be organized for all
selected growers prior to their involvement in the programme. A dynamic campaign will also be
mounted to promote the quality of ABS seed in the farming communities so as to capture a good
proportion of the seed market and maintain a core of loyal clients.
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Business Plan: 2009
Basic Seed: The Basic Seed which is the basic raw material for the production of approved seed,
can be obtained from the seed corporations.
Approved Seed: The Basic seed will be cultivated under the controlled environment at various
seed farms, which will result in multiplying it and producing approved seed through processing.
The approved seed is the final product of the project, which will then be distributed and sold
through marketing for growing crops with higher yields.
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Business Plan: 2009
8.3.1 Drying
At the time of harvest, the seed normally contains very high moisture content i.e. above 16% on
average. In order to avoid any negative effects of high moisture, the seed has to be dried and the
moisture content has to be reduced to 8-12%. If the seed is stored at high moisture content, it
loses germination quickly and is infested with pest and diseases.
8.3.2 Cleaning
In order to make the seed suitable for cultivation, impurities like weeds, immature seeds, inert
matters, infected seeds, other crop seeds have to be removed.
8.3.3 Grading
After cleaning, the seed requires grading. The grading is of the following types:
a) Length grading
The clean seed is further graded in this process from the point of view of its length and the
immature/infected seeds or any foreign matter that may not have been removed in the cleaning
process are removed in the length grading process.
b) Gravity Separating
Gravity separating is followed after length grading and is helpful in removing light and
immature seeds having low germination.
c) Treating
This process is followed after gravity separating. In the process, a suitable fungicide and color is
used to protect the seed from fungus and various soil related diseases. The color also gives a
suitable appearance to the seed and proving that a check has been performed, confirming that
all seeds have been uniformly treated.
8.3.4 Packing
To avoid any moisture contents the processed seed is stored in bags which are stored properly.
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Business Plan: 2009
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Business Plan: 2009
Corn Seeds.
This is sunflower seed and mostly used in eastern and western part of Punjab.
9 Competitors Analysis
There are many Seeds dealer in that city because of the city is totally agricultural. But they are
providing the some traditional seeds verities, and we shall introduce new and good verities of
seeds specially Wheat and Rice.
10 SWOT ANALYSIS
Strengths
Our professionals have good skill. We believe in their skill. And they were trained and had
chosen carefully. All of them have good license. Our operation manager had been trained for a
long time with all skill about seeds, dealing with formers, and marketing. The place where we
hired is a busy and formers market area. The quantity of customers will be large. The products
we use are high quality. All the seeds will be available with good varieties.
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Business Plan: 2009
Weakness
The expenditure we invested for equipment, products, landing and training for staff is so high.
We need long time to refund the investment. It is a risk for my plan. The competitors also are a
big risk. There is a wide variety of seeds enterprises over the city. If we want to have reputation
in the city, we need to compete with all of them.
Opportunity
We will advertise our brand name for everyone. We have some discount price for the customer
on grand opening. Then we will have some promotion and small gifts for frequent customers.
And then we will prepare the VIP card for them and have special price for them such as discount
10%. Create a website for the Enterprises to advertise. In the website, we will introduce about
our Enterprises. The ability to develop long-term commercial contracts which should lower
costs associated with production. The maintenance and breeding of these varieties by the
farmer communities and determination of scientific supports for legislative adaptations
and implementation for their seed marketing.
Threats
a) Various government regulations such as price regulations and red-tapism in the process of
seed certification can result in delaying the intended project plan.
b) Inadequate supply of agriculture inputs such as fertilizer, irrigation water, pesticides, etc.
can result in hampering the intended project benefits.
c) Improper identification of varieties, which are not suitable for the Pakistani climatic and
agriculture conditions, or varieties prone to diseases, or requiring high inputs (having low
returns on investment) can be a major threat to the project.
d) Since this project is dependent on the contract growers, therefore, if the entrepreneur is not
able to maintain a controlled environment through constant monitoring mechanism, it may
result in the altered seed variety, hence resulting in disturbing the production chain.
e) Weak or improper marketing strategies can result in failure of the project.
11 MARKETING
The marketing of approved seed will follow the existing distribution network of the seed dealers,
along with the dealers of the agriculture inputs. Furthermore, the farming community has to be
sensitized about the usage of the approved seed, which will not only result in enhanced
productivity of crop but also lead to increased revenues for the industry. The sensitization can be
achieved through a tailored campaign for achieving the desired objective- to increase the sales of
the seed. The success of the industry is dependent on the timely availability of the quality seeds
at the appropriate places at competitive prices and in proper packaging. Moreover, due to a
massive demand of the quality seeds in the reconstruction and development of the agriculture
sector of Pakistan, this project also has the export potential, if able to meet the international
standards required for seed production.
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Business Plan: 2009
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Office equipment
Land Requirement
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Business Plan: 2009
Infrastructure Requirements
The project will have the following infrastructure components:
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Project Cost
The cost of the project will be as follows
Project Return
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Financing Plan
16 FINANCIAL ANALYSES
16.1 Projected Income Statement
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Business Plan: 2009
17 KEY ASSUMPTIONS
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Conclusions:
ABS Enterprise will Attempt to attain leadership in the supply of improved wheat and
rice seed in Punjab. The pursuit of high quality will be the driving force in the business.
To achieve this, the enterprise will use the dedication, experience and skill of its
members in key technical and management positions. Extensive promotional activity
will help to ensure that ABS's customers perceive that they are receiving the best
quality seed, on time, and at a reasonable price. The future of the improved wheat and
rice seed industry in Punjab looks bright, and ABS is poised and positioned to take
advantage of this commercial opportunity.
Contingency Planning:
Difficulties and risks:
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Business Plan: 2009
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