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Executive Summary:

Volka Food International is the retail producer in Multan city. For the past six years, the company
has sold its products (bakery and confectionary) in all over Pakistan. The company has built a
loyal consumer base with customers that have increased sales by 15% each year for the past five
years. This year, the company is going to start the manufacturing of PASTA.
The establishment of a plant for the production of pasta and macaroni with a capacity of 3,000
tons per annum. Pasta and macaroni are food products made by extruding and drying unleavened
dough of wheat flour.
The company is planning to expand its operation to include distribution to the major
supermarket chains within the entire city. To meet the increased product demand, company will
have to double production. Owner funding and internally generated cash flow will enable only a
portion of the expansion plan. Sales projections for the next three years are based on current
sales success with the target customer base within city.
The company is located in 85650 square feet facility that operates as a storefront and a
production facility. With the expansion, 3/4 of the area will be dedicated to production. The
company will also have to upgrade its packaging equipment to meet the new demand.
The company will embark on a new marketing program in supermarkets and grocery stores that
will be carrying its products. Eye catching in-store displays have been created to attract new
customers. The displays will also hold discount coupons to promote sales to new customers.

OUR MISSION
Our Mission is to provide the high quality products while analyzing strong procedures and strict
standards. At VFI, we focus on providing the consistent quality to our customers and we have
achieved high level success in maintaining the persistent quality and procedures. Consistent
quality cannot be maintained without strong Quality Checks and modern Research and
Development at all levels.
At VFI, our world class laboratory experts in examining regular hygiene check for every lot and
SKU. Our team of experts consists of highly trained professionals, technical staff and latest
equipment like Moisture Analyzers, Ash Determination equipment, Spectrophotometer and
purity confirmation equipment for ingredients used in our products.

Our Vision
Our vision is to create a wide and innovative range of the most endearing brands and to be the
market leader in confectionery and bakery production category.

PURPOSE AND PRINCIPLE


Our Principle of Quality Assurance is the OPPORTUNITY IS A RESPONSIBILITY, we at
VFI not only maintaining the top Quality but focusing on improving our procedures by following
strict standards. We believe in the principle of continuous improvement hence our purpose is to
create every product flawless. Our focus is to provide delicious and hygienic products to every
customer. We have managed to produce high standards in maintaining quality and creating
values. This consistency could not be achieved and maintained without strict Quality assessment
and innovative R & D at all levels.

Our philosophy and principles of good quality product is:

100% fulfillment with Standards and Specifications.

100% Customer Satisfaction as per their requirements.

100 % Hygienic Food, Safe to Eat.

100% Environmental Friendly processes

KEYS TO SUCCESS:
To succeed in business today, you need to be flexible and have good planning and organizational
skills. Many people start a business thinking that they'll turn on their computers or open their
doors and start making money, only to find that making money in a business is much more
difficult than they thought. You can avoid this in your business ventures by taking your time and
planning out all the necessary steps you need to reach to achieve success.
1. Get Organized

To be successful in business you need to be organized. Organization will help you complete tasks
and stay on top of things to be done. A good way to do this is to create a to-do list each day. As
you complete each item, check it off your list. This will ensure that you're not forgetting anything
and you're completing all the tasks that are essential to the survival of your business.
2. Keep Detailed Records
All successful businesses keep detailed records. By keeping detailed records, you'll know where
the business stands financially and what potential challenges you could be facing. Just knowing
this gives you time to create strategies to overcome those challenges.
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3. Analyze Your Competition


Competition breeds the best results. To be successful, you can't be afraid to study and learn from
your competitors. After all, they may be doing something right that you can implement in your
business to make more money.
4. Understand the Risks and Rewards
The key to being successful is taking calculated risks to help your business grow. A good
question to ask is "What's the downside?" If you can answer this question, then you know what
the worst-case scenario is. This knowledge will allow you to take the kinds of calculated risks
that can generate tremendous rewards.
5. Be Creative
Always be looking for ways to improve your business and to make it stand out from the
competition. Recognize that you don't know everything and be open to new ideas and new
approaches to your business.
6. Stay Focused
The old saying that "Rome was not built in a day" applies here. Just because you open a business
doesn't mean that you're going to immediately start making money. It takes time to let people
know who you are, so stay focused on achieving your short-term goals.
7. Prepare to Make Sacrifices
The lead-up to starting a business is hard work, but after you open your doors, your work has just
begun. In many cases, you have to put in more time than you would if you were working for
someone else. In turn, you have to make sacrifices, such as spending less time with family and
friends in order to be successful.
8. Provide Great Service
There are many successful businesses that forget that providing great customer service is
important. If you provide better service for your customers, they'll be more inclined to come to
you the next time they need something instead of going to your competition.
9. Be Consistent
Consistency is key component to making money in business. You have to consistently keep
doing the things necessary to be successful day in and day out. This will create long-term
positive habits that will help you make money over the long term.

CHAPTER # 2

COMPANY SUMMARY

Company Summary:
Volka Food international has built a reputation on offering the most delicious, nutritious
products. The business will operate as a sole proprietorship.

Company Ownership
Ch. Zulfiqar Ali Anjum is the owner of the company. He says that:
The foundations of our business are based on ethical and moral principles that have helped us
tremendously in molding our dreams into reality, and in earning respect of the industry.
Our aim is to meet our strategic targets that will help us become a leader in the bakery and
confectionery market, and ensure that every consumer is fully satisfied with our products.
We are proud to have multitalented, skilled professionals on our team. Highly talented in all
areas, this expert manpower has been the guiding force behind our safe and high standards of
production. We believe in our employees and honor the devotion and sincerity they show
towards the company. We know that with the support of our team we will expand into new
ventures that will lead to progress and prosperity of not only the organization, but of the country
as well.
Saim Choudhry
MD at Volka Food International
Muhammad Saleem Rajab
Executive Director at Volka Food International

Introduction To Volka
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Welcome To Volka
Indulge yourself into the sweet world of Volka delights and satisfy your sweet tooth
as we offer an extensive range of treats, made just for you. A world where you can
enjoy a rainbow of colorful candies, decadent chocolates, sweet n soft biscuits,
wobbly jellies and yummy gums, Volka Food International brings you the highest
quality products for which the brand is known.
A modern and state-of-the-art production company, Volka Food International is
dedicated to our promise of delivering the finest quality, most hygienic and safe-toeat confectionery and bakery products to you while following international quality
standards.
So navigate through our site and dig your teeth into the finest buffet of sweet
treats.
Corporate Overview
At VFI we always aim high. Our objective is to become a diversified food company
specializing in every type of confectionery and bakery products. We are totally
committed to our consumers and work round-the-clock to fulfill their demands. From
production to marketing, our dedicated and hardworking team at VFI is fully focused
towards producing a high quality product that is offered at a competitive price. We
foster innovation across the board to help the company achieve customer,
employee and shareholder satisfaction and to turn our vision of becoming a leader
in the market into reality.
We aspire to see ourselves as a professional company with integrity that aims to
produce the finest of products while following best manufacturing practices. We aim
to take our company to new heights and transform it into a dynamic and
progressive structure, which will be at par with International companies.

COMPANY HISTORY:
2007
The foundation was laid and the construction started in September 2007.
2010
September 2010: installation of a mega plant of gummies and other machinery of
confectionary items.
June 2010, commissioning of plant took place.
Products trials and packaging development happened between July and
September 2010.
Huge investments were made in putting up yet another factory along with the
import of a gummy plant WDS from Germany, wrapping
machines from Japan,
other equipment from Italy, China and professional expertise from abroad and
within the country.
2011
Volka started its export to many Asian, Gulf and European countries in September
seeing a huge turnover of $1.8 M/year.
2012
The brand became a huge hit. Giggly products were present all over Pakistan.
Jelly, our flagship category took its lion's share with 40% of market share in
Pakistan's confectionary market.
The brand now has 20-30% market share in overall confectionary market (as
per sales figure).
Way back in 2010 the company started off with a strength of 200 Sales work
force which has increased to more than 350, along with a sole distribution network.
2013
VFI started its operations in the country with an initial strength of 600 employees.
Currently we have 1500 to 2000 work force.
The company at present has an outstanding category portfolio, i.e. jellies, bubble
gum, chew toffee, candies, lollypop, chocolates etc.

Company Structure

COMPANY LOCATION:
3km Bahawalpur bypass road, Multan, Punjab, Pakistan, N-5

Volk Food International

Head Office: 3-Km Bahawalpur Bypass,


Bahawalpur Road, Multan- Pakistan

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Landline: +92-61-6527661-2

Fax: +92-61-6527663

Email: info@volkafood.com or export@volkafood.com

Facilities:
Our products have been in business for several years, which includes Jellies, Bubble Gums and
Toffees.
And now we are going to introduce pasta.
Our products are easily available at each retailor shop. For the convenience of our customers we
have our shelfs in superstores in which our products are available.

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CHAPTER # 3

PRODUCTS AND SERVICES

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Products and Services:

Our products have been in business for several years, which includes Jellies, Bubble Gums and
Toffees.
Confectionary:
Giggly:
Jellies
Bubble gums
Cake
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Bunties
Candies
Chocolates
Toffees
Bakery:
Cookania:
Cookies
Biscuits
And now we are going to start new product which is becoming most favorite dish of youngsters
and children and elder people also like it.
Pasta is a staple food of traditional Italian cuisine, with the first reference dating to 1154
in Sicily. It is also commonly used to refer to the variety of pasta dishes. Typically, pasta is
a noodle made from an unleavened dough of a durum wheat flour mixed with water or eggs and
formed into sheets or various shapes, then cooked by boiling or baking. It can also be made with
flour from other cereals or grains.
Place of origin

Italy

Main ingredients

Durum wheat flour (most durable form of wheat)

Pasta made from durum wheat


Pasta products consist of Macaroni, Spaghettis, Noodles and Lasagne.
Competitive Comparison:
As it is becoming most popular dish, many companies are going to offer pasta. And the
competition become higher and higher.

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As we say that it is a staple food and it is regularly consumed in a society and from which people
obtain most or a significant portion of their calories.
We are offering special pasta for old people and for ill people so they can digest food easily. As it
contains low calories so it is lite to eat and it will digest easily.

Competitive Edge:
This is our competitive edge that there are no production plant of pasta in nearby cites. Big issue
of gas. Mostly the production fails due to shortage of gas. But at that place where our production
plant is situated we have the facility of gas.

Technology:
We are using latest technology. All machinery is imported from Japan. The process involved in
making pasta is:

The production of pasta/macaroni mainly involves mixing, kneading, extrusion, drying and
packing. In preparing pasta dough, the semolina/ flour and water and in some cases egg emulsion
and other ingredients are measured in a pre-determined ratio and put into a mixer where they are
mixed into a consistency of wet sand i.e. a conglomeration of millions of tiny moist granules.
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The mixing is normally accomplished for 12-15 minutes and the mixture is usually made to have
about 30% moisture. The quantity of water depends on the drying temperature employed in the
manufacturing process.
For the best results, the pasta temperature should be held between 45oC and 50oC. After mixing
and kneading, the most critical step in pasta manufacturing is the drying process. Drying is the
elimination of a liquid; normally water, from a substance or a solid body, which aims at obtaining
a hard product that, will retain its shape and is capable of being stored for an indefinite time
without spoiling. To do this, the moisture content of pasta/macaroni should be lowered from
30% to 12%. But this apparently simple operation could lead to a moldy and sourly product if
carried out too slowly, and could cause the product to crack if carried out too rapidly.

STEAMING AND DRYING

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Different shapes of pasta. For this purpose different dies are used.

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Future Products and Services:


In future we are planning to introduce nutritious snacks for children.

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CHAPTER # 4

INDUSTRY ANALYSIS

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Industry analysis:
Market segmentation:
Market segmentation consist of
Age
Lifestyle
Eating habits of urban families
Target market:

Kids
Youth
Working women
Health conscious people
People like to eat foreign stuff

Positioning:
Easy to cook & good to eat
Ready in 2 minutes ( instant noodles )

Company takes every customer as target and potential who is feeling a little bit hunger
and want something good to eat and ready in short time.
All age groups are being targeted but the most potential is the age group between 11-25
that covers around 55% of the total age segments.
AGE: the target market is basically based on age. The audience of company is youth and
youngsters. It has wide range of targeting. It ranges from the age of 11-25 and reaches to
40.
Company targeting is not based on gender but the results shows that both gender like this
product and use it.
GENDER: Company segments Pakistani market with a percentage ratio of 58% females
and 42% males.
Life style; busy life style (face shortage of time) and mobile generation.
Occupation; students and family oriented people.
Socio Economic Status; middle class & upper class.
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Nature; fun loving & entertainment loving.

Market Needs
Company is providing its customers with a wide selection of high-quality pasta
that are unique and pleasing in presentation, offer a wide selection of health
conscious choices. Company seeks to fulfill the following benefits that are
important to their customers.
Selection.
A wide choice of pasta.
Accessibility.
The company provides its product at all leading stores and retailors shop and
company buy full shelf in super stores for display of their products.
Customer service.
The company will be impressed with the level of attention that they receive.
Competitive pricing.
All products will be competitively priced relative to comparable high-end pasta
companies.
Market Trends
The market trend for demand of pasta is headed toward a more sophisticated
customer. The trend for pasta today relative to yesterday is more sophisticated in a
number of different ways.

Food quality.
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The preference for high-quality ingredients is increasing as customers are learning


to appreciate the qualitative differences.
It is in our genes to love & protect our children. It is for this reason parents are
extremely conscious of what the children eat & whether the ingredients are healthy
or harmful. So, at Volka Food International, we insist on only the very best for our
products and processes. Our modern, world-class laboratory is staffed with highly
skilled and experienced technical professionals and modernized equipment for
ingredients testing. We are determined to maintain the quality through our strong
procedures and standards.
Our Quality Enhancement Department identifies, analyzes and monitors all
production processes for all food safety standards.
The underlying philosophy of our operations is:
100% compliance with Standards and Specifications
100% customer satisfaction
100% hygienic food that is Safe to Eat, and
100% environmental friendly processes
Our company has ISO 22000 Certificate and authorized by Punjab Food
Authority.

Food Safety Certificate.


ISO 22000 is a global standard to ensure safe food supply chain.
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Presentation/appearance.
The presentation of our product is attractive and the packing of our product is more
colorful which attracts people and make product prominent while placing with
other products.

Selection.
People are demanding a larger selection of foods; they are no longer accepting a
limited menu.
The reason for this trend is that within the last couple of years pasta offerings have
increased, providing customers with new choices. With more choices, pasta has
become more sophisticated.
Market Growth
In 1999, the global pasta market reached $8 billion dollars. Pasta sales are
estimated to grow by at least 10% for the next few years. This growth can be
attributed to several different factors. The first factor is an appreciation for health
conscious food. While not all pasta is "good for you," particularly the cream based
sauces, pasta can be very tasty yet health conscious at the same time. Pasta is seen
as a healthy food because of its high percentage of carbohydrates relative to fat.
Another variable that is contributing to market growth is an increase in the number
of hours our demographic is working. Over the last five years the number of hours
spent at work of our archetype customer has significantly increased. As the number
of work hours increases, there is a high correlation of people that prefer to cook the
food that cook in minimum time. This is intuitively explained by the fact that with

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a limited number of hours available each day, people have less time to prepare their
meals and they prefer instant cooking food.

Industry participants:
Rasul Flour Mills (Pvt) Ltd
(Karachi)
Pasta
Asian food industries Ltd
(Lahore)
Spanish pasta
M.Suleman Ji & Co. Pvt Ltd
(Karachi)
Crispo plain pasta
Nida Trading
( Karachi)
Quick Spaghetti Pasta
Shah Enterprise
(Dera Ghazi Khan)
Rice & pastas
Distribution patterns:
We distribute our products through distributor then to wholesaler then to
retailor then to ultimate users/consumers.
Competition and Buying Patterns:
The Pakistani food industry is blessed with ideal climates, good
infrastructure and availability of trade channels.
Pasta remained restricted to upper-income consumers who were increasingly
influenced by Western food habits as pasta is not a part of Pakistani
traditional cuisine. However, the exposure of online media which creates the
awareness of Western foods, even among middle-income consumers, helped
raise the acceptance levels among consumers, as it is quick and easy to
prepare with less cooking time. Hence, pasta is gaining acceptance among a
wider base of consumers. Due to this many companies introduce different
shapes of pasta.
Buying patterns of consumer consist of basically 3 important factors.
Price.
Reputation.
Accuracy/ease.
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Consumer prefers the product with low price. And whose reputation is
good in market and the product which is easily available and good to
use.
Main competitors:
Bake parlor
Kolson

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CHAPTER # 5

MARKETING STRATEGY

Marketing strategy:

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Our marketing strategy involves a number of things including providing unique


products, having a large market presence, promoting culture, reasonable pricing and
reliability. These are some of the most powerful factors that have kept the company in
business.

The marketing strategy of VFI has remained formidable even in the face of great
challenges and that is why it has become a model for other businesses to aspire to.
Below are just some of the details involved in this company's marketing strategy.
Products:
Our company has consistently produced a number of products that have always
conformed to the highest standard of quality. These products are highly nutritious and
reliable which is part of what endears people to this company.
Pricing:
Our company has maintained relative stability when it comes to pricing its products.
Despite the changing dynamics in the society, the company has proved to be reliable
when it comes to provision of products at affordable rates.
Promotion:
The company has always had vigorous promotional activities since its inception. These
promotions increase awareness in the society and encourage consumers to buy
products.

PRICING STRATEGY
The current pricing strategy of VFI is competition based. It is fair enough, because a
higher price may take away its urgent market share and a lower price would make the
customers think that it is a cheap product.
Positioning statements:
Good food is the primary source of good health throughout life. We strive to bring
consumer food that are safe of high quality and provide optimal nutrition to meet
physiological needs. In addition to Nutrition, Health and Wellness, our products bring
consumers the vital ingredients of taste and pleasure.
We map out consumer needs against what we and our competitors do best:

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WHAT CONSUMERS WANT:


Consumer always wants something new. In food items consumer wants variety, different
taste. The product which is healthy to eat and cheap.
WHAT YOUR BRAND DOES BEST:
Our brand of Pasta is giving variety in minimum price. We give different facilities to our
customers like we provide recipe how to cook instantly. We give offers to our customers
if they buy 5 packs of noodles then 1 is free.
WHAT YOUR COMPETITOR DOES BEST:
Our competitors are also providing variety of products.

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Our target market is mostly the children and youth, Healthy proactive preventers
who want to do as much for overall health as they can.
Our pasta is tasty and low calories.
The benefit of our product is that it gives you the best tasting yet guilt free
pleasure so you can stay in control of your health.
Reason to believe on our product is that our all products are tested and full of
nutritious and our products have low calories. Our products are best for the
people who are conscious about their health.

PROMOTION STRATEGY
For the promotion of our products we give adds on television, we use print media,
electronic media and bill boards.
TV ads are used to promote as a brand that. When it comes to advertising,
company prefers TV, as it is the best media. Apart from this, in Pakistan, TV is a
strong medium, it has highest reach. Thus a large part of advertising budget is
focused on TV.
The print ads are the extracts of TV commercials, placed in various kinds of
magazines ranging from health to fashion.
The billboards are also the extracts of TV commercialsplaced at the busy roads
for most part of the day

DISTRIBUTION PATTERNS
General stores, wholesale markets, departmental and super stores, i.e.increased
efforts to penetrate the market.

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COMPANY

SUPER
STORE

DISTRIBUTOR

WHOLESALE
RS

RETAILORS

END USERS
CHILDREN/ADULTS

Marketing programs:

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A marketing strategy can serve as the foundation of a marketing plan. A marketing


plan contains a set of specific actions required to successfully implement a
marketing strategy. For example: "Use a low cost product to attract consumers.
Once our organization, via our low cost product, has established a relationship with
consumers, our organization will sell additional, higher-margin products and
services that enhance the consumer's interaction with the low-cost product or
service.
The marketing program plan includes specific actions for each part of the marketing strategy.
A plan typically identifies strategies for conducting market research, identifying the target
market, analyzing the competition, promoting the product and setting the pricing strategy.
MARKETING MIX STRATEGIES:
PRODUCT
Our product strategy is to provide convenience and variety to customer by offering different
sizes and style.
Spaghetti Box
Fancy Spaghetti
Real Egg Noodles
Lasagna
Long Macaroni Box
Macaroni Box
Fancy Macaroni ( Big Elbow)
Fancy Macaroni (Longer)
Fancy Macaroni (Ring)
Fancy Macaroni (Screw)
Fancy Macaroni (Werm)
Fancy Macaroni (Shell)

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PRICE
We adopted the Going Rate Pricing Strategy to compete with the competitors.

The company also keeps revising prices according to economic conditions.

PLACE
To cover the market forcefully and efficiently the company has its own transport system.

The company has engaged the services of around four hundred (400) well-established
distributors from all over country.

PROMOTION

The company has developed its own marketing team Advertising --both to sell and
to created awareness of its products in the market.
We use different promotional modes that are:
Magazines

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Newspapers
Billboards
TV Advertisements
Cooking shows
Stalls in Exhibitions
Sales forecast:

Sales programs:
VFI has been working a big deal on promotional activities they think that brand
equity is more important. Although they sometimes do below the line
activities such as they set up stalls in different places. VFI also do promotional
campaign for the promotion of products and for increase the sales.
To build market share
Through promotions activities the aim is to create a market presence relative to
other brands of biscuits. Through promotion company wants to be able to
supplement other marketing efforts in order to increase market share.
To build brand image and positioning
Advertising will be used to enhance the image of the brand and also to create a
specific image in the mind of the consumer i.e. positioning. Similarly sales
promotion should be carried out in a way so as to further the quality perception of
the product.

STRATEGIC ALLIANCES
We have strategic alliance with local restaurants like

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We have strategic alliance with Almaida Pizza Restaurant that we offer them our
Pasta and if they use our pasta and sell the specific quantity of our pasta then we
give them discount.
Like this we also have strategic alliance with other restaurants as well.
MILESTONES:
When you insert milestones into your marketing plan, you can track your progress toward your
goals. Milestones are part of the plan implementation, and you set them to indicate when a particular
task is complete. Identify the task, the start date and the scheduled completion date. The milestone
is the event or characteristic that signifies that the task in question is finished. Depending on whether
you reach the milestone by the completion date, you can tell whether your plan is on schedule.

Three basic milestones to success:

Establishing a Business Model.


Developing a Marketing Strategy.
Maintaining Customer Loyalty.

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CHAPTER # 6

PRODUCTION/OPERATION PLAN

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Production:
Pasta is one of the simplest and purest foods around, as it is made of just two ingredients,
semolina and water, without the addition of any hidden artificial preservatives or colorings.
Process Description:
Pasta products are produced by mixing milled wheat, water, eggs (for egg
noodles or egg spaghetti), and sometimes optional ingredients. These
ingredients are typically added to a continuous, high capacity auger
extruder, which can be equipped with a variety of dies that determine the
shape of the pasta. The pasta is then dried and packaged for market.

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Selection of Raw Material

The first decisive step in making good pasta is the selection of the appropriate raw material. All
quality pasta is made from Durum wheat semolina. Durum wheat is considered to be the most
noble of all hard wheat and the richest in nutritional value. Durum wheat is what gives pasta its
rich taste, pleasant aroma and bright, amber-yellow color. It is also what helps it remain firm and
keep its shape and its nutrients while cooking.
Pasta products contain milled wheat, water, and occasionally eggs and/or optional ingredients.
Pasta manufacturers typically use milled durum wheat (semolina, durum granulars, and durum
flour) in pasta production, although farina and flour from common wheat are occasionally used.
Most pasta manufacturers prefer semolina, which consists of fine particles of uniform size and
produces the highest quality pasta product. The water used in pasta production should be pure,
free from off flavors, and suitable for drinking. Also, since pasta is produced below
pasteurization temperatures, water should be used of low bacterial count. Eggs (fresh eggs,
frozen eggs, dry eggs, egg yolks, or dried egg solids) are added to pasta to make egg noodles or
egg spaghetti and to improve the nutritional quality and richness of the pasta. Small amounts of
optional ingredients, such as salt, celery, garlic, and bay leafs, may also be added to pasta to
enhance flavor. Disodium phosphate may be used to shorten cooking time. Other ingredients,
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such as gum gluten, and egg whites, may also be added. All optional ingredients must be clearly
labeled on the package.

Production of Pasta
The semolina first enters the kneading machines, where it is mixed with water until it forms
dough. For special kinds of pasta such as lasagne and tricolore, additional ingredients such as
dried eggs, tomato or spinach are added at this stage.

The dough is kneaded in vacuum until it reaches the right consistency, and it is then pushed or
extruded through the various dies or moulds, which give pasta its desired shape.
The pasta is then passed through pasteurizers for sterilization at 80 90 degrees Celsius, where
any germs such as salmonella are destroyed. It then proceeds through the automatic dryers that
circulate hot, moist air, where the pasta dries slowly for several hours, depending on the shape
and thickness of the pasta.

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The dried pasta then enters the automatic packing machines, where it is weighted
and packed in bags or boxes. The whole process, from the mixing of the raw materials
to the packing of the final product, is completely automated and it takes from 6 to 24
hours to complete, depending on the shape of the product.
The shelf life of pasta is much longer than the two years marked on the packet,
provided that it is kept under proper conditions, which is a dry and cool place.

As in all modern pasta plants, the whole production procedure followed at the Mitsides Pasta
plant is completely automated, using electronic monitoring devices, without the need of any
manual intervention at any stage of production.

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Logistics and distribution


Our products are very competitive. In order to be competitive, being able to purchase well and
manufacture better is surely essential. But... it is also necessary to have the knowledge and
ability to distribute efficiently.
Capacity of Physical Facilities:
Plant will have a production capacity of 3,000 tons of pasta/macaroni per annum. This capacity is
proposed on the basis of three shifts of 8 hours each per day and 300 working days per annum.
Ownership Status:
As Volka Food International is a sole proprietorship and is owned by
CHAUDHARY ZULFIQAR ALI ANJUM. As it is more flexible with the owner.
Size and Location:
This is a large scale business and is located at:
Volk Food International
Head Office: 3-Km Bahawalpur Bypass,
Bahawalpur Road, Multan- Pakistan
Landline: +92-61-6527661-2
Fax: +92-61-6527663

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Email: info@volkafood.com or export@volkafood.com

Capital Equipment requirements:

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Pasta manufacturing machines;


Dough mixer
Dough sheeters
Dryers
Molders
Extruders and pasta dies
Packing machines

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CHAPTER # 7

SUPPLIER INFORMATION

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CHAPTER # 10

FINANCIAL PLAN
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A financial plan is a comprehensive evaluation of an investor's current and future financial state
by using currently known variables to predict future cash flows, asset values and
withdrawal plans.
Financial planning is the task of determining how a business will afford to achieve its strategic
goals and objectives. Usually, a company creates a Financial Plan immediately after
the vision and objectives have been set. The Financial Plan describes each of the activities,
resources, equipment and materials that are needed to achieve these objectives, as well as the
timeframes involved.
The Financial Planning activity involves the following tasks;

Assess the business environment

Confirm the business vision and objectives


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Identify the types of resources needed to achieve these objectives

Quantify the amount of resource (labor, equipment, materials)

Calculate the total cost of each type of resource

Summarize the costs to create a budget

Identify any risks and issues with the budget set

Performing Financial Planning is critical to the success of any organization. It provides the
Business Plan with rigor, by confirming that the objectives set are achievable from a financial
point of view. It also helps the CEO to set financial targets for the organization, and reward staff
for meeting objectives within the budget set.
The role of financial planning includes three categories:
1. Strategic role of financial management
2. Objectives of financial management
3. The planning cycle

KEY FINANCIAL INDICATORS:


5 important financial key performance indicators that tells you is your business meet the goals.
1. Gross Profit Margin
Your gross profit margin tells you whether you are pricing your goods or services appropriately.
Here is the equation to calculate this:
Gross profit margin = (revenue cost of goods sold)/revenue
Your gross profit margin should be large enough to cover your fixed (operating) expenses and
leave you with a profit in the end of the (see #2 and #3, below).
2. Net Profit
This is where the rubber hits the road. Your net profit is your bottom line the amount of cash
left over after youve paid all the bills. You can figure out your net profit using simple
subtraction:

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Net profit = total revenue total expenses


For example, if your sales last year totaled $100,000 and your business expenses for rent,
inventory, salaries, etc. added up to $80,000, your net profit is $20,000. If you are a sole
proprietor, your salary or draw will come out of your net profit, so its vital that this amount be
enough to cover your personal needs plus enough extra to build reserves that can keep your
business operational during slow periods.
3. Net Profit Margin
Net profit margin tells you what percentage of your revenue was profit. The equation is simple:
Net profit margin = net profit/total revenue
In the example above, your net profit margin is 20 percent. This metric helps you project future
profits and set goals and benchmarks for profitability.
4. Aging Accounts Receivable
If your business involves sending bills to customers, an accounts receivable aging report (most
likely a standard report in your accounting software) can be eye-opening. If customer A
consistently pays her bills within 15 days, while customers B, C, and D drag their payments out
to 90 or even 120 days, you may have found a root cause of your business cash flow problems.
It could be time to start charging interest on overdue accounts or let go of slow-paying clients.
5. Current Ratio
This accounting term describes the ability of a business to pay its bills. It can be calculated like
this:
Current ratio = current assets/current liabilities
The resulting number should ideally fall between 1.5 and 3. A current ratio of less than 1 means
you dont have enough cash coming in to pay your bills. Tracking this indicator may give you
advance warning of cash flow problems, especially if your current ratio dips into the danger zone
between 1.5 and 1.
BREAK-EVEN ANALYSIS:
A break-even analysis is a calculation of the point at which revenues equal expenses. In
securities trading, the break-even point is the point at which gains equal losses.
Break-even analysis is a technique for analyzing how revenue, expenses and profit vary with
changes in sales volume.

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Monthly Revenue Break-even

$24,989

Assumptions:
Average Percent Variable Cost

10%

Estimated Monthly Fixed Cost

$22,490

Projected Profit and Loss


The following table and charts are the projected profit and loss for three years.

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PRO FORMA PROFIT AND LOSS

FY 2003

FY 2004

FY 2005

50

Sales

$313,000

$346,000

$419,000

Direct Cost of Sales

$31,300

$35,300

$40,300

Other Production Expenses

$0

$0

$0

TOTAL COST OF SALES

$31,300

$35,300

$40,300

Gross Margin

$281,700

$310,700

$378,700

Gross Margin %

90.00%

89.80%

90.38%

Payroll

$199,200

$215,136

$247,406

Sales and Marketing and Other Expenses

$6,000

$8,000

$10,000

Depreciation

$9,600

$9,600

$9,600

Leased Equipment

$0

$0

$0

Utilities

$3,600

$12,000

$12,000

Insurance

$9,600

$9,600

$9,600

Rent

$12,000

$12,000

$12,000

Payroll Taxes

$29,880

$32,270

$37,111

Expenses

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Other

$0

$0

$0

Total Operating Expenses

$269,880

$298,606

$337,717

Profit Before Interest and Taxes

$11,820

$12,094

$40,983

EBITDA

$21,420

$21,694

$50,583

Interest Expense

$4,760

$3,405

$1,715

Taxes Incurred

$2,118

$2,607

$11,780

Net Profit

$4,942

$6,082

$27,488

Net Profit/Sales

1.58%

1.76%

6.56%

7.3 Projected Cash Flow


The following table and chart are the projected cash flow for three years

PRO FORMA CASH FLOW

FY 2003

FY 2004

FY 2005

Cash Received

Cash from Operations

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Cash Sales

$78,250

$86,500

$104,750

Cash from Receivables

$203,750

$254,756

$303,755

SUBTOTAL CASH FROM OPERATIONS

$282,000

$341,256

$408,505

Sales Tax, VAT, HST/GST Received

$0

$0

$0

New Current Borrowing

$0

$0

$0

New Other Liabilities (interest-free)

$0

$0

$0

New Long-term Liabilities

$50,000

$0

$0

Sales of Other Current Assets

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

New Investment Received

$0

$0

$0

SUBTOTAL CASH RECEIVED

$332,000

$341,256

$408,505

Expenditures

FY 2003

FY 2004

FY 2005

$199,200

$215,136

$247,406

Additional Cash Received

Expenditures from Operations

Cash Spending

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Bill Payments

$94,829

$115,954

$133,454

SUBTOTAL SPENT ON OPERATIONS

$294,029

$331,090

$380,860

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

Principal Repayment of Current Borrowing

$1,200

$1,200

$600

Other Liabilities Principal Repayment

$0

$0

$0

Long-term Liabilities Principal Repayment

$18,000

$18,300

$13,700

Purchase Other Current Assets

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

Dividends

$0

$0

$0

SUBTOTAL CASH SPENT

$313,229

$350,590

$395,160

Net Cash Flow

$18,771

($9,335)

$13,345

Cash Balance

$88,771

$79,437

$92,781

Additional Cash Spent

7.4 Projected Balance Sheet


The following table shows the projected balance sheet for three years.
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PRO FORMA BALANCE SHEET

FY 2003

FY 2004

FY 2005

Cash

$88,771

$79,437

$92,781

Accounts Receivable

$45,000

$49,744

$60,240

Inventory

$3,410

$3,846

$4,391

Other Current Assets

$5,000

$5,000

$5,000

TOTAL CURRENT ASSETS

$142,181

$138,027

$162,412

Long-term Assets

$36,736

$36,736

$36,736

Accumulated Depreciation

$14,848

$24,448

$34,048

TOTAL LONG-TERM ASSETS

$21,888

$12,288

$2,688

TOTAL ASSETS

$164,069

$150,315

$165,100

Assets

Current Assets

Long-term Assets

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Liabilities and Capital

FY 2003

FY 2004

FY 2005

Accounts Payable

$9,839

$9,503

$11,100

Current Borrowing

$1,800

$600

$0

Other Current Liabilities

$0

$0

$0

SUBTOTAL CURRENT LIABILITIES

$11,639

$10,103

$11,100

Long-term Liabilities

$42,000

$23,700

$10,000

TOTAL LIABILITIES

$53,639

$33,803

$21,100

Paid-in Capital

$0

$0

$0

Retained Earnings

$105,488

$110,430

$116,512

Earnings

$4,942

$6,082

$27,488

TOTAL CAPITAL

$110,430

$116,512

$144,000

TOTAL LIABILITIES AND CAPITAL

$164,069

$150,315

$165,100

Net Worth

$110,430

$116,512

$144,000

Current Liabilities

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Appendix
SALES FORECAST

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

$9,000

$9,000

$10,000

$9,000

$10,000

$10,000

$10,000

$11,000

$12,000

$12,000

$13,000

$13,000

$14,000

$14,000

$14,000

$15,000

$15,000

$15,000

$15,000

$16,000

$16,000

$16,000

$17,000

$18,000

Sales

Supermarkets

0
%

Grocery Stores

0
%

TOTAL SALES

$23,000 $23,000 $24,000 $24,000 $25,000 $25,000 $25,000 $27,000 $28,000 $28,000

$30,00 $31,000
0

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Direct Cost of

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

$900

$900

$1,000

$900

$1,000

$1,000

$1,000

$1,100

$1,200

$1,200

$1,300

$1,300

Grocery Stores

$1,400

$1,400

$1,400

$1,500

$1,500

$1,500

$1,500

$1,600

$1,600

$1,600

$1,700

$1,800

Subtotal Direct

$2,300

$2,300

$2,400

$2,400

$2,500

$2,500

$2,500

$2,700

$2,800

$2,800

$3,000

$3,100

Sales

Supermarkets

Cost of Sales

CHAPTER # 11

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FINANCING REQUIREMENTS

FINANCING REQUIREMENTS:

Projected sum of money required to execute a plan, project, or program.

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