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BS INFO

BUSINESS PLAN

A BUSINESS PLAN
2012 - 2017
Prepared by and in collaboration with the members and management of
BS INFO
May 2012
Contact Person:
Tel:
Cell:

Prepared By: HAYFIELDS Capital

Buster TSELAESELE
+267 5480233
+267 72252380

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BS INFO
BUSINESS PLAN
SECTION BUSINESS PLAN NARRATIVE
1

Executive Summary

2. Company Summary
o

Company Summary

Key to Success

3. Product & Service Summary

Product Description

Production Processes and Procedures

Facilities

Raw Materials and Supplies

Environmental, Safety and Health Monitoring

Projected Applicable Raw Materials

Installed Plant Capacity

Market Analysis

5.

Market Trends and Needs

Market Strategy and Approach

Key Personnel & Management Summary


o

Management and Staffing Summary

Personnel Plan and Forecast

6.

Financial Summary
o

Financial Summary

Financial Plan

In Appendix - Profit and Loss Projections

In Appendix - Cash Flow Projections

In Appendix - Balance Sheet Projections

In Appendix - Projected Business Ratios

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BS INFO
BUSINESS PLAN

BUSINESS & COMPANY NAME

BS INFO-TECH (PTY) LTD

REGISTRATION NUMBER

CO.2002/379

NATURE OF BUSINESS

MANUFACTURE OF CONCRETE PRODUCTS

TYPE OF BUSINESS OWNERSHIP

PRIVATE COMPANY

NUMBER OF DIRECTORS

ONE

DIRECTORS

BASTER TSELAESELE

PRIMARY CONTACT PERSON

BASTER TSELAESELE

CONTACT DETAILS

CELL:

+267 72252380

TEL:

+267 5480233

EMAIL:

bsinfotech.baster@gmail.com

P. O. BOX

403455

POSTAL ADDRESS

GABORONE
BOTSWANA
COMPANY SECRETARIES

CALCULATE CONSULTANT
P. O. BOX 11408
KANYE

BANKERS

STANDARD CHARTERED BANK

REQUIRED FUNDING

BWP2,200 Million

PURPOSE OF FUNDING

To finance the acquisition of Plant & Equipment

PROPOSED REPAYMENT PERIOD

60 Months

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BS INFO
BUSINESS PLAN
This Business Plan is the sole property of BS Info-Tech (Pty) Ltd, (the "Company"). The
information contained herein is confidential, has not been released publicly and is disclosed
solely for the purpose of assisting financiers in evaluating the Company. This Business Plan
is intended for persons to whom it is transmitted and does not constitute an offer to any other
person or to the general public to acquire any interest in the Company.
Receipt of this Business Plan shall constitute the agreement of the recipient that the
Business Plan, together with any additional information, verbal or otherwise, that may be
provided, (i) shall be treated and maintained as confidential, (ii) shall not be reproduced or
used for any purpose other than to evaluate the proposed investment, (iii) shall not be
submitted to or discussed with persons other than the authorized representatives, agents
and advisors of those to whom it is transmitted by the Company (and only then on the
confidential basis described in this paragraph) without prior written consent of the Company,
and (iv) shall be returned to the Company promptly at any time upon request. Any
distribution of this material, in whole or in part, or the divulgence of any of its contents,
without the prior written consent of the Company may result in a violation of the Companys
rights and is expressly prohibited.
All of the statements made herein with respect to the projected operating results of the
Company are based on information projected to the best of management's knowledge, or
sources believed by management to be reliable. No representations are made as to the
accuracy or attainment of such statements, estimates or implications as to these future
operations.
This Business Plan does not constitute an offer to sell nor a solicitation of an offer to buy in
any jurisdiction in which such offer to sell or solicitation of an offer to buy would be unlawful.
The Company will not offer, and this Business Plan does not constitute an offer of securities,
to any person in any jurisdiction in which such an offer would not be in compliance with the
securities or laws of such jurisdiction.
Funders are not to construe the contents of this Business Plan or any other documents
delivered herewith as legal, business, accounting or tax advice. Each prospective Financier
should consult their own attorney, business or tax advisor and Accountant as to legal,
business, tax and related matters concerning this plan. The Financiers must conduct and
rely on their own evaluation of the Company, including the merits and risks involved in the
Company's business plan, in making a decision.
COMPANY:
BS Info-Tech (Pty) Ltd

.
(By Order of the Directors)

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BS INFO
BUSINESS PLAN

PART 1

EXECUTIVE
SUMMARY

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BS INFO
BUSINESS PLAN
Reflecting on Botswanas economic growth over the past couple of years, we see
tremedous achievements from a socio-economic development perspective. The
achievement could not have been possible if it was not for the contribution from
the various sectors of the economy, such as mining, agriculture, manufacturing
and of course, construction. The construction industry's (CI) contribution to
socio-economic development may be viewed from many areas, among them,
creating

employment,

wealth

and

demand

for

manufactured

goods,

infrastructure and producing factors of production(e.g. office space, factory


shells, roads, etc.) for other sectors. Botswana construction industry is growing
at a significant rate.

Scarcity of the raw material, high lead time, and increase

in labor cost are few challenges faced by present construction industry. At the
same time there is a change in

style and perception of constructions in

Botswana and more and more people are looking for alternative and cost
effective construction technique and material.
The company will be specialized in the manufacturing of Bricks. We will focus on
providing high quality bricks to Botswana construction industry and expect to
promote the bricks concept and thereby taking the industry to the next step of
innovation. The project is environmentally friendly and could be treat as a carbon
free product in any Country.

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BS INFO
BUSINESS PLAN

PART 2

COMPANY
SUMMARY

Company Summary
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BS INFO
BUSINESS PLAN
Full Name of Company: BS Info-Tech (Pty) Ltd
Nature of Business: Manufacture and distribution of concrete products
Services and Products: Stock Bricks, Pavers, Blocks, Concrete Slabs and
other Concrete products
Potential Customer Base / Market: Property Developers, Construction
Contractors, Home builders, Quanity surveyors and Engineers in both the
Public and Private sector, the Public
Potential Turnover:

Net
Revenue

8,886,24
0

11,347,7 12,218,9
76
76

15,273,7
20

15,273,7
20

No of Employees:
General &
Administration
General Manager
Operational
Personnel
Plant Manager
Heavy Duty Driver
Plant Operator
Plant Operator

Year 1
65,000

65,000
58,500
58,500
58,500

Location:
Mafikhana Ward, Kanye
Bankers:
Standard Chartered Bank
Management: The Director will also be the General Manager, he will hire a
Plant Manager and a foreman for this operation

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BS INFO
BUSINESS PLAN
Funding: Funding will be supplied by CEDA, the project requires 2,2
million pula and this is in addition to the contribution and security to be
provided by the Directors. The Directors have already proposed security to
cover part of this loan
Keys to Success
In order to ensure success, the project will have to strive to achieve the
following goals:
Maximum production of bricks as per the capacity of the machine, refer to
Production plan
Effective marketing of the bricks, and also availability of markets,
particularly through the procurement systems of the construction industry.
Good and proper management of financial and human resources.
Company Locations and Facilities
The location were considered in relation to:
Supply of raw materials
Market for products
Location of the labour force
Security of the area
Availability of services, i.e. roads, water, sewerage, electricity, etc.
The site is big enough for aggregate stockpiles, cement storage, production (slab
or stationary machine) block stacking, staff facilities, an office and on-site
access.

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BS INFO
BUSINESS PLAN

PART 3

SERVICES &
PRODUCTION
PROCESS
INFORMATION
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BS INFO
BUSINESS PLAN
Product Description
The current project is to focus on two primary products:
Bricks
Blocks
Other Concrete Products

Production Processes and Procedures


Phases of Manufacturing
The manufacturing process has six general phases:
procuring, mining and storage of raw materials,
preparing raw materials,
forming the brick,
drying,
firing and cooling and
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BS INFO
BUSINESS PLAN

de-hacking and storing finished products

Batching this is to ensure that the aggregate is well drained. This process must be
supported by storing the different aggregate types separately and by ensuring that the
material is protected from rain so as it remains dry before being mixed with the cement, thus
avoiding to exceed the optimal moisture content (OMC).
Mixing - Following the batching, the aggregates together with the binder, as well as pigment
if, required, are discharged into a mixer and thoroughly mixed before any additional water is
added. Once properly mixed, water will be added to the mixture to bring it to OMC.
Uniformity will be ensured because differences in water content from batch to batch will
result in differences in quality.
Filling of moulds During mixing, variations in density will result if the gauged quantities
are not consistent or the mixture is not uniformly distributed within the mould. Over and
above these variations are due to variations in moisture content. This undesirable situation is
prevented by the filling the moulds.
Compaction This is another step to enhance the quality and durability of the blocks. Good
compaction can be effectively achieved for blocks that are less than 80mm.
Curing the quality of concrete blocks is improved by water curing. This process is also
intended to protect aesthetic of the blocks by preventing the migration of calcium hydroxide
to the surface of the blocks.
Facilities
A concrete slab on which we will make and cure your blocks and bricks is planned. Our slab
size would be dependent on the daily production of our machine and should be around
400m2 for a weekly production of around 75 thousand bricks or 15 thousand blocks. This will
be a gradual slope on our slab to allow for sufficient run off of water. A concrete slab gives us
the following advantages:

Less block or brick breakages

Less contamination of aggregate

A better surface to cure on

Easier to move blocks/bricks

Raw Materials & Supplies


Aggregate

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BS INFO
BUSINESS PLAN
Sand and stone will be used for most block productions. All aggregates will be clean and not
contain organic matter such as roots or humus. If the aggregates contain clay it should be in
a very small fraction.
The following aggregates will be considered:

Fine sand with particles mainly smaller than 1 mm: pit, fine river or dune sand

Coarse sand with the biggest particles approximately 5 mm in size: crusher, pit or
coarse river sand

Stone with a maximum size of 13 mm for bricks or solid blocks or 10 mm for hollow
blocks

There are numerous factors to be taken into to account when making quality blocks and
bricks. For example the type of aggregate and cement use as well as how the bricks and
blocks are cured will have an influence on block and brick quality.
Aggregate is the stone, sand and ash you want to vibrate and compact down and bind
together with the cement. A good aggregate is an aggregate that is free from chemicals, clay
and organic material. A good aggregate will bond well with the cement paste and not react
with it. As a rule of thumb the denser the finished brick or block is the stronger the brick or
block will be. You must choose your aggregates according to your needs.
To achieve a dense block with an aggregate that can be vibrated and compacted down
easily you need to have an aggregate with evenly graded particles ranging from fine dust up
to larger stone of around 9mm. Blending different aggregates often produces the best
results. The stockpile of aggregate should be protected from rain by storing it under a roof or
covering it with plastic. Do not let the aggregate get contaminated with ground soil or any
organic matter such as leaves from a tree. Position your aggregate close to your mixing
plant.
Cement
Cement is our most costly material and by doing trials with different aggregates we will be
able to minimize on cement content and so decrease our costs. Cement should comply with
SABS EN 197-1. Strength class should be 42,5N or higher because the concrete must
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BS INFO
BUSINESS PLAN
develop strength as rapidly as possible. We are aware that it is illegal to sell cement that
does not bear the SABS mark.
As Cement should always be stored in dry place, off the floor and should be use within three
months of the date of manufacture. Cement is supplied in 50kg bags or in bulk. Bags of
cement will be stored under cover off the floor and away from any damp conditions.
Water
Only clean clear potable water should be used in the manufacture of the blocks and bricks.
Any organic material in water will prevent the cement from setting. Chemicals and impurities
could also affect the strength of the end product.
Environment, Safety & Healthy Monitoring
The environment, safety and health-monitoring programme in the factory are as follows:
1. Regular monitoring of plant emissions
2. Regular monitoring of waste water and treated water
3. Quality of water Air and Noise measurement in the Environment
4. Monitoring of safety and health
Projected Applicable Raw Materials
Bricks

633600
506.88
2534.4
4525.7143

35
70
4

Blocks
Monthly Mass of
Aggregate

344960

Monthly Mass of Aggregate

Number of m3
50.688 Bags of Cement
Litres of Water

275.968
1379.84
2464

Number of m3
27.5968 Bags of Cement
Litres of Water

Cost / Bag / m3 / ltr


17740.8 Number of m3
35481.6 50.688 Bags of Cement
2027.52 Litres of Water

0.05
0.10
0.01
1,645.60
176.00

Prepared By: HAYFIELDS Capital

Cost per Brick


Aggregate
Cement
Water
Annual Machine Hours
Monthly Machine Hours

Cost / Bag / m3 / ltr


9658.88 Number of m3
19317.76 27.5968 Bags of Cement
1103.872 Litres of Water

0.14
0.27
0.02
822.80
88.00

Cost per Block


Aggregate
Cement
Water
Annual Machine Hours
Monthly Machine Hours

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BS INFO
BUSINESS PLAN
237.00
41,712.00
390007.2
0.12

Cost per Machine Hour


Machine Cost per Month
Annual Machine Costs
Machine Cost per Unit

237.00
20,856.00
195003.6
0.06

Cost per Machine Hour


Machine Cost per Month
Annual Machine Costs
Machine Cost per Unit

Installed Plant Capacity


PLANT NAME: QTJ4-26A Hollow block machine
QTJ4-26 A the machine is a semi-automatic block forming machine. With this machine, the
directional, vertical vibrating device is adopted. So, it is quick in block forming and simple in
operating, and the products made by it are perfect in density and excellent in strength.
hollow block 390x190x190 mm 4pcs/mould
productivity

multi-holes block 240x115x90 mm 12pcs/mould

Power
overall size
Cycle
Carrier size
Vibration Force
Vibration frequency

standard brick 240x115x53 mm 26pcs/mould


11.75 kw
3000x1600x2500mm
20-26s
850x550x25mm
22KN
4000-4800times/minute

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BS INFO
BUSINESS PLAN
Business Facilities

Ref

Asset and Facilities


Details

Amount

Land & Building

156,362.43

Moulding Machine Shed


Drying Shed
Boundary Wall
Dry Brick Storage Shed
Water Storage Tanks
Plant Storage & Parking Space
Offices & Workers Common Room

Plant & Machinery

2,315,000.00

Brick Moulding Machine


Loading & Delivery Truck
Tipper Truck
Fork Lift
JCB Excavator
Mobile Van
Office Equipment & Furniture
Generator and Tools

Working Capital & Pre-Operational


Expenses

214,561.12

Raw Materials: Clay, Cement, Sand, Water


Power & Fuel
Operational & Administrative Expenses:
Legal & Professional Charges
Advance Rent for Land
Initial Wages

Labour Costs

50,916.67

Labour Cost for the First 2 Month

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BS INFO
BUSINESS PLAN
Production Process

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BS INFO
BUSINESS PLAN

PART 4

MARKET
DESCRIPTION &
ANALYSIS

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BS INFO
BUSINESS PLAN
Market Trends and Needs
We expect high effective demand for our bricks and we forecast the following developments:

BHC Housing Project about to build 110 house in Kanye and they are just waiting for
water supply from Water Utilities
Government Housing Project as the government has also plenty of house to build for
destitute in the area

Strategy and Approach to Market


The degree of sustainability of a production process can be measured by these criteria:

Total energy content - i.e. the energy that is required to produce, package, distribute,

use and dispose of a specific product;


Consumption of the environment land for building or mining, forest depilation;
Emissions greenhouse gases, dust, other chemical and natural substances;
Raw materials non renewable resources depilation;
Waste generation packing, production, use;
Recyclability generation of secondary waste cycles:
Capital least cost;
Durability -longer periods of usage mean lesser consumption of resources.

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BS INFO
BUSINESS PLAN

PART 5

KEY MANAGEMENT &


PERSONNEL
SUMMARY

Management and Staffing Summary


The General Manager
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BUSINESS PLAN

Shall be responsible for the day to day running of the Plant.


Report back to the Financiers.
Implement decisions.
Decide on the use, organisation and management of resources such as finances,

personnel and facilities.


Manage, control, lead, and direct staff.
Responsible for budget, purchasing, production, marketing and staff relations.

Plant Manager

Shall be responsible for Production.


Will be in charge of Managing the Heavy Duty Drivers and the Plant Operator
Will be responsible for Scheduling production, Managing Resource Planning and
Procurement, Managing the resources of the Plant, the Raw Materials and also the

Waste Management.
Will hold a minimum of a Diploma in Production Management or Equivalent

Plant Operator

Shall be responsible for Operating the main Plant used in producing the Blocks and

Bricks
There shall be 1 Plant operator per Equipment, trained and relieved if necessary by

the Plant Manager


Will hold an Apprenticeship certificate as a Machinist

Heavy Duty Drivers

Shall be responsible for Driving Crane trucks that will be at the heart of the

Distribution of the Concrete Products.


Will hold a Heavy Duty Licence and be certified to operate related plant such as a
Fork Lift

Labourers

Shall be given adhoc work within the plant and with the Distribution
Their daily wage rates are included in the Production costs per Brick/Block

Notes
Personnel
Years 1 to 5
BWP
Year 1
Prepared By: HAYFIELDS Capital

Year 2

Year 3

Terms
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BS INFO
BUSINESS PLAN
Net Revenues

8,886,240

11,347,776

12,218,976

Notes on Terms of Remuneration

65,000

65,000

65,000

<-- 5K per month for 12 months plus a


13th Cheque, terms hold for 3 years

65,000

65,000

65,000

65,000

65,000

65,000

Plant Manager

65,000

65,000

65,000

Heavy Duty Driver


Heavy Duty Plant
Operator
Heavy Duty Plant
Operator

58,500

58,500

58,500

58,500

58,500

58,500

58,500

58,500

58,500

240,500

240,500

240,500

General &
Administration
General Manager
(other)
Total Salary
Total benefit costs
Total G & A Compensation
Operational Personnel

Total Salary Costs

Prepared By: HAYFIELDS Capital

PART 6

<-- 4K per month for 12 months plus a


13th Cheque, terms hold for 3 years
<-- 4.5K per month for 12 months plus
a 13th Cheque, terms hold for 3 years
<-- 4.5K per month for 12 months plus
a 13th Cheque, terms hold for 3 years
<-- 4.5K per month for 12 months plus
a 13th Cheque, terms hold for 3 years

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BS INFO
BUSINESS PLAN

FINANCIAL
SUMMARY

Financial Summary
The financial statements presented in the Appendix reflect only our forecasted sales after
financing and getting supply contracts as described. Revenues generated from surrounding
community services are not included in these forecasts, nor are potential revenues
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BS INFO
BUSINESS PLAN
generated from projects in locations other than Kanye. In addition, the financial statements
assume that the company makes no capital expenditures after the first operational year. Due
to the nature of the pre-financing plans, the bulk of customer payments will be collected after
production is completed, thus we project stock to be 10%-15% of production. This will have a
positive effect on net income and cash flow.
.
Financial Plan
When developing the budget, a number of factors had to be considered and amongst them
were the following:

Land for room or shade for the storage of raw materials like Cement & Sand
Procurement of production Materials including Sand, Stone, Cement and Water
Brick making Machinery, Trucks and other required equipment
Water facilities, water will come from Stand pipes, taps.
Stipend and Wages for Labourers
Salary for the Manager and others
Trucks for the delivery of products
Security at the project site
Repairs and maintenance

Sources and Uses of Funds


The principal source of funds will be CEDA. Funding details are included in the Appendix and
are split between equity from the proponents of this plan and debt:
Equity => BWP500,000
Debt =>

BWP2,200,000

Total =>

BWP 2,700,000

Ref

Asset and Facilities


Details

Amount

Total Project Capital

2,345,000.00

Equity: Promoter's Contribution


Cash

Prepared By: HAYFIELDS Capital

30,000.00

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BUSINESS PLAN
Plant: Brick Moulding Equipment
Mobile Van
Office Furniture & Equipment
Total
Debt: Term Loan
Loading Truck
Tipper Truck
Fork Lift
JCB Excavator
Total

250,000.00
100,000.00
15,000.00
395,000.00
600,000.00
650,000.00
250,000.00
450,000.00
1,950,000.00

Working Capital Requirements


Operational Capital Requirements
Total

52,263.01
162,298.11
214,561.12

Phases of Financing
Promoter's Contribution - Amount
Status - Completed

515,000.00

Debt: Term Loan - Amount


Status - Pending
Timing - Immediately upon Approval for Plant & Equipment
Timing - Monthly upon Approval for Working & Operational
Capital
Status - Pending

Total Funding Required

Prepared By: HAYFIELDS Capital

2,164,561.12

2,200,000.00

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BS INFO
BUSINESS PLAN

PART 7

APPENDIX &
ATTACHMENTS

Application Package and Appendices

Appendix I : Pack 1 CEDA Application forms


Appendix II : Pack 2 Company Registration Documents
Appendix III: Pack 3 Directors and Shareholder Information

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BS INFO
BUSINESS PLAN

Appendix IV: Pack 4 Bank Statements


Appendix V : Pack 5 Business Plan
Appendix VI: Pack 6 Financial Forecast and Plan
Appendix VII: Pack 7 Production and Plant information
Appendix VIII: Pack 8 Staff Curriculum Vitae
Appendix IX : Pack 9 Company Profiles or Details of Competition
Appendix X : Pack 10 Lease Documents and Trading Licences
Appendix XI: Pack 11 Quotations for Plant to be bought, Buildings to be rented,

Trucks to be bought
Appendix XII: Pack 12 Financial Statements for the last 2 years for BS Info-Tech

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