BIMCO MILK

Business Plan /Feasibility

Prepared by:
Strong Goals Generation Consult

CONTENTS
1. EXECUTIVE SUMMARY
2. ABOUT THE COMPANY
3. PROJECT INFORMATION
4. TARGET MARKET
5. PROJECT OPPORTUNITY
6. VIABILITY ANALYSIS OF THE POLYTHEN
7. SWORT ANALYSIS
8. SALES STRATEGY
9. MANAGEMENT PROFILES
10.

ORGANISATIONAL CHART

11.

FINANCIAL PROJECTION

12.

CONCLUSION

Executive Summary
1.1

Business opportunity

Fresh milk and frozen yoghurt is one of the leading businesses in food
& beverages sector in Nigeria. It has nutritional value and

benefits

beyond those of milk. People who are moderately lactose intolerant

can enjoy yoghurt without ill effects. Yoghurt is nutritionally rich in
protein, calcium, vitamin B6 and vitamin B12. Yoghurt promotes good
healthy

gum.

Researches

shows

that

yoghurt

strengthens

and

stabilizes the immune system and that, women who take four (4) cups
of yoghurt per week have less vagina and bladder infections. It
nourishes the body and helps indigestive system when served as a
dessert after meal.
1.2

Project

The project is now seeking for expansion into our existing company
because of the high demand of our qualitative products.
The project is taking advantage of the expanding market for fresh milk
and frozen yoghurt. Bimco Milk has been established for the production
and sales of food and beverages: such as fresh milk, frozen yoghurt,
ice cream, juices, bread, snacks tomatoes/pepper pastes and provide
home and office delivery of same to the target market. After months of
extensive industry and market research, the company has developed a
solid business plan and new innovations to expand the market for its
products.

The existing business is located at No.4, Atiku Abubakar Road,

G/Albasa in Kano Municipal local government area of kano state. The
company has a large production space that consumes all the
machineries we are looking forward to acqure.
*

The Finance: The total cost of expansion or purchase of

machinaries is N10,000,000.00 (Ten million naira only)

* Financing option: The financing option is put at the rate of 30%
equity contribution and loan financing at 70%.
*

Pay Back Period: The pay back period of this project is 5.0

years.
*

The Management: The project shall be wholly owned and

manage by the owners as they are experieced in the business of fresh

milk and frozen yoghurt production and industrial experts.
*
fresh

Repayment Schedule: The repayment shall be from the sales of

milk,

frozen

yoghurt,

tomatoes/pepper pastes in

ice

cream,

juices,

bread,

snacks

bottles of different sizes, when the new

machinaries are fully operational. The Director also shows the

commitment

to

route

the

proceeds

of

payments

from

other

activities/businesses into this loan account to facilite a quick recovery

of the facility.
* Justification: Fresh milk and frozen yoghurt product is adjudged as
one of the most popular and profitable businesses in our society,
Yoghurt is nutritionally rich in protein, calcium, vitamin B6 and vitamin
B12. Yoghurt promotes good healthy gum. Research shows that
yoghurt strengthens and stabilizes the immune system. Research also

shows that women who take four (4) cups of yoghurt per week have
less vagina and bladder infections.
The market for fresh milk and frozen yogurt has been growing rapidly
since the 1990s, increasing nearly by 400% in the last decade
according to National Agency for Food and Drug Administration and
Control (NAFDAC), as a result of declining consumer confidence in the
safety, price and quality of imported fresh milk and frozen yoghurt.
This trend is also evident in the wider areas, where Bimco Milk is
operating.

About The Company

2.1

Bimco Milk

The company is registered in Nigeria as a business name and the

main office is situated at No.4, Atiku Abubakar Road, G/Albasa in
Kano Municipal local government area of kano state. The main
objectives of the company is to carry out the business of
production and sales of food and beverages: such as fresh milk,
frozen yoghurt, ice cream, juices, bread, snacks tomatoes/pepper
pastes.
The company is fully equipped with qualified staff, financial and
materials resources needed to execute project(s) that may be
awarded from time to time.
Our company is committed to quality product and prompt
services delivery and that has given us the competitive edge
among our peers and we will not deviate from these.

The Project Information

3.1 BUSINESS BACKGROUND INFORMATION
Fresh Milk and Frozen Yoghurt Production
Fresh milk or frozen yoghurt has nutritional value benefits beyond
those of milk. People who are moderately lactose intolerant can enjoy
yoghurt without ill effects. Yoghurt is nutritional rich in protein calcium
vitamin B6 vitamin B12. Yoghurt promotes good healthy gum. Research
shows that yoghurt strengthens and stabilizes the immune system.
Research also shows that women who take four cups of yoghurt per
week have less vagina and bladder infections. It nourishes the body
and helps indigestive system when served as a dessert after meal.
Yoghurt is produce by controlled fermentation of milk by two species of
bacteria (Lactobacillus sp. And streptococcus sp.) The sugar in milk
(called lactose) is fermented to acid (lactic acid) and therefore causes
the characteristic curd to form. The refreshing qualities of yoghurt are
rather not new to Nigerians, and its popularity as a nutritious food,
especially among the weight conscious, has increased greatly in the
recent past. Apart from the fact that yoghurt is a fast selling product,
the returns on investment is above 50%.
Nigeria is a very densely populated developing country with low
income base. Hence, the imported commercial milk are too expensive
for low income families. Thus, in this proposal, a locally diary milk is
prepared to ensure the availability of low cost fresh and frozen
milk/yoghurt

formula

which

is

microbiologically

safe

to

reduce

malnutrition and act as a sole complement for the available imported

commercial fresh milk in Nigeria.

Machineries at Bimco Milk Production factory

Target Markets
Target Audience: Our main target audiences are discovered after our
structured survey in the demand analysis on the products/services. As
such below depicts the lists of our target customers:
Households
Supermarkets
Hotels and Restaurants
Wholesaler and Retailers

Target territories: We focus our business to cover the following

territories due to potential enormous market discovered based on our
product/services portfolio design.
Katsina metropolitan and LGs;
Other neighboring States and
Some neighboring countries.
Company: The Companys existence in Nigeria will enhance
growth and contribute immensely in employment provision,
revenue

generation,

acquisition.

economic

enhancement

and

skills

Project Opportunity
Based upon an evaluation of the market consumers needs and
current competitive offering studies reveal that there is an
unfulfilled gap and so much demand in the supply of qualityand
hygenic and fresh and frozen yoghurt.
One of the major factors that stand the project out from others is
that there is a ready-made distribution channels and a steady
supply of the product in the market, as ours is an expansion
policy.

Viability Analysis of the Small Scale Fresh Milk and frozen

Yoghurt Company
The profit level in the business of purified and hygenic fresh milk
and frozen yoghurt is encouraging. The more the experience of
managing the business the more the capacity to maximize profit
making. What has been a bone of contention to most fresh milk
and frozen yoghurt producers is management related. This
proposal is typically an owner(s) managed arrangement.

Swot Analysis
The

SWOT

analysis

addresses

foreseeable

strengths

and

weaknesses of Bimco Milk Limited and the opportunity and

threats that exist in our external environment. This analysis is to
serve as a guide to areas we can leverage on and point out areas
we need to make improvement upon in our company and within
our industry and market.
4.2.1.1 Strength
The foreseeable strength of Bimco Milk will include among others;
Highly experienced personnel.
Employment of an Expert as Technical assistance.
Broad base of experience in different types of companies from
Financial

to

manufacturing,

and

in

different

types

of

management positions.
4.2.1.2 Weaknesses
Large capital requirement needed to buy the machineries for
the fulfilment of the demand and put other necessary tools in
place.

Start-up working capital for the day to day running of the

company including cost of hiring and maintaining experienced
staff.

4.2.1.3 Opportunities
Availability of a large market in target location.
Market availability in Kano state, entire nation and some
neighbouring countries.
4.2.1.4 Threats
Existing competitors have been operating for years within the
target market and have a base of loyal customers. This is
alleviated by the fact that the (large scale and medium scale
fresh milk and frozen yoghur producers) are not able to meet
up with the current demand and as such may not be able to do
so in the nearest future.

Marketing & Sales Strategies

We embark on strong marketing and sales strategies which increases
our customer preference and loyalty as well as high turnover and
business momentum. The following strategies are adopted by us in
order to boost our market scope:
Customer satisfaction:We shall identify basic needs of our
customers and try to come up with utmost solution to their needs.
Excellent Output: Provision of good and healthy outputs that
captures attention of the buyer(s) is considered another factor that
can influence the purchases at our shops.
Customized packaging:We shall produce and make available a
customized packaging that contain our name, logo, address,
services offered, and telephone numbers.
Promotional mediums:We shall embark on excellent promotional
means which will increase our customer base and critical mass.
Monthly calls: We intend to introduce monthly calls and messages
to our customers.

The activity will act as rejoinder for the

customers and showing them concern.

Bonus to marketing officers: We will come up with strategy that
will offer marketing bonus for those who contributed their efforts
towards achieving marketing plans.
Advertisement: This includes marketing activity via audio visual
jingles, magazines, and newsletters.

Management Profile
Bimco Milk management team is very experienced. It works together
through regular and open lines of communication. The team consists of
three men who head up the operations and service ends of the
business.
1. Chairman/CEO: Bello Ibrahim Mohammed
The chairman is a Nigerian and an Agricultural Engineer by profession
from Kano state. He holds a Higher National Diploma in agricultural
engineering, specialising in (soil & Water Options), obtained from
Kaduna Polytechnic, in the year,1992. He served with Madara Limited,
VOM Plateau state during his NYSC, in 1993. He worked with Kano
state Ministry of Agriculture and Natural Resources and the Ministry of
Rural & Community development as assistant technical officer and
chief technical officer respectively.He has a wide experience of the
beverage industry. His wealth of experience will make the difference in
the competition arena.
2. Director: Usman Y. Magashi
The director marketing is a Nigerian of Kano state origin. He holds a
Higher National Diploma in Marketing from Kano state polytechnic, in
the year, 2004. An Associate Member, National institute of Marketing of
Nigeria (NIMN). He works Kano state Investment and Properties Limited
as senior manager admin./personnel. He has been with the company
for quite some time. He is a trained marketer who specializes in
working with customers. He has extensive knowledge of the industry,

which helps him to realize the customers' needs while still retaining a
firm grip of the reality of the business. He won't promise a customer
the moon and fail to deliver. He will offer the customer assistance in
choosing an option that best suits their needs.
3.

Director: Mustapha Ibrahim Mohammed

Mr. Mustapha holds a Higher National Diploma in Health Production

Technology in Animal health from National Veterinary Institute of VOM,
plateau state, in the year, 1994. He works as chief livestock
superintendent and deputy HOD, respectively with Dawakin Kudu Local
Government Area of Kano state. His professional expertise is highly an
advantage to the operation of the company.

Organisational Chart
Our organizational structure is characterized with committed and
diligent

directors,

acumen

management,

and

hardworking

employees. We designed the appropriate organizational structure

in the chart below which signifies our commitment towards

ensuring a well systematized structure that can take the

organization to the highest level.

Financial Projections
5.1

Sales forecast

Bimco Milk is to become a major player in the beverage production

industry and sales in Nigeria. Bimco Milk hopes to see that the industry
in Nigeria especially table and bottled water is transformed. As such,
we believe that our sales forecast can be met.

5.2

Basic Assumptions

The following assumptions are used in arriving at the set of projected

financial statements.

i.

Assets are depreciated annually using the straight line

method at the following rates;
Furniture & Fittings
20%
Motor vehicles
20%
Plants & Machineries
20%
Land & Building
5%

ii.

Cash sales are expected to be 70% of each months sales

whereas the remaining 30% is expected to be collected a
month after.

iii.

Taxes are assumed to be paid in arrears. Company Income

Tax is provided at the rate of 30%. This is to allow for
possible allowances and reliefs that may be due to the
company.

iv.

Total expansion investment capital of the company is

expected to be N10, 000,000.

v.

Term loan facility of N10,000,000 is anticipated in the

projection.

vi.

The estimated interest rate is 10% per annum with 6

months moratorium.

vii.

The tenor of the facility is put at 5 years.

Conclusion
This financial projection is prepared by Strong Goals Generation
Consult with technical input from the management of Bimco Milk.
The foregoing sections have typically demonstrated the core
concepts and competencies of the company as par its proposed
new expansion production project.
The market has been assessed as fair for expansion and there is
expectation for higher demands, more especially if the company
strategically positions itself against its competitors as contained
from this feasibility.
The projected margin is quite encouraging with a higher
possibility of good profit, even at the first year of operation. Even
though, estimates must have contained in them some level of
error elements, the company would supposedly witness good
business especially if it exhibits good management practice.
The

financials

and

technical

data

therefore

leads

to

the

conclusion that the project is viable within the context of the

desired internal rate of return (IRR) and profitability of the
investment and going by the fact that the projected cash-flow is
quite favourable for the debt capital providers.

It is prepared this _________________day of _____________________2015

______________________

______________________

Umar Sulaiman Esq. CCNA, CFA, CNA

Mustapha Abdullahi
For Strong Goals Generation Consult. Senior consultant
51 Unity Road, Kano Nigeria.
+2348065031001
+2348034655925