Business Plan Abshar Water

Business Plan Report
SUBMITTED TO:
Respectable Mr. Akhtar Abbass
SUBMITTED BY:
Iftikhar Virk 28S-635
Syed Tariq Hussain Shah 29S-632
E-MAIL : Iftikhar.search@gmail.com
CELL # : 0322-4469323
BUSINESS PLAN- ABSHAR WATER FEB-2011
O Allah!
Open . . .
Our Eyes to see what is dutiful,

Our minds to know what is true,
Our heart to know what is good.
My Effort
Towards practical life,
Is dedicated to
My loving PARENTS,
My entire Family members,
My TEACHERS,
And
All Friends of mine
2
ACKNOWLEDGEMENT
We acknowledge the efforts of all to those (including our
parents, teacher and class fellows) whose contributions made this
project possible.
We pay gratitude to our venerated teacher
“MR. AKHTAR ABBASS” from the citadel of our hearts, who has
been gracious enough and helpful to us as well as all the students.
His well-directed guidance and didactic efforts have always been
a source of inspiration for us. It was his valuable guidance and
instruction in our present academic pursuit otherwise our sole
efforts might not have been of considerable value.
We are, and shall remain extremely beholden to him for his

assistance and dedication in the time to come.
3
Contents Page
Executive Summary
Objective 5
Mission Statement 6
Vision Statement 6
Goal 6
Strategy 6
Planning 7
SWOT Analysis 7
Project profile 8
Industrial Analysis 9
Physical resources 13
Project Costs 14
Annual Income report 15
Monthly expense Report 16
Organizational chart 18
Conclusion 19
4
EXECUTIVE SUMMARY
The project is about “Preparation of Mineral Water” or
manufacturing of healthy and fruitful water for public.
This project aims at:
• As to how we can start new venture, its objectives,

vision, mission, financial resources, SWOT analysis
etc.
• Importantly what would be the project cost and

what would be the preliminary expenses to start new
venture?
• What strategies and planning need to be adopted to

make the business more profitable?
• How much expenses would be required?
• What type of tangible assets is required to start

this venture?
• What will be the organizational structure of our

business
5
The entire above mentioned questions appertaining to our

project have been discussed in the subsequent pages.
6
BUSINESS LEGAL STATUS

During our study we got to know that manufacturing of
mineral water can be started as a sole proprietorship or a
partnership and even it can be registered under company
law with Securities and Exchange Commission of Pakistan
(SECP).
The objective of this project primarily is to put into practice

what we have learnt from the classroom lectures. The project
forms the basis of an important investment decision. In order to
serve this objective, this study covers various aspects of project
concept development, start-up, marketing, finance and business
management. The study briefly discusses government policies and
international scenario, which have some bearing on the project.
The business we choose is Manufacturing Of Mineral Water. We

are a Pakistan-based manufacturer that produces quality drinking
water with the brand name “ABSHAR”.
What is Mineral Water?

•
Is not subjected to any chemical treatment.
7
Is obtained directly from natural or drilled sources from

underground water.
• Is collected under conditions which guarantee the original
natural bacteriological purity.
• Is bottled at the point of emergence of the source with
particular hygienic precautions.
8
“To be the benchmark for prestige, natural spring water in

the region helping to
promote mineral water
as the highest-
quality, and purest, in
Pakistan”.
“To provide the highest

quality and most natural
water in the region in a
way that is cost-
effective and convenient”.
To become a best manufacturer among the top tenth at least

in 5 years by the help of providing best mineral water to the
end user.
9
Goal
STRATEGY
1. The qualitative and quantitative point of view.

2. Get the best mineral water manufacturer of the city.
3. Provide best and timely supply to our end user.
4. Maximum coverage in an ethical way.
5. Win to win situation for both(for our and our customer)
6. Provide best facilities to
employees for their future
PLANNING
1. Office should be in the center of the city (Gulberg).
10
2. Hire vehicles for distribution.

3. Provide quality products to compete our
competitors.
SWOT Analysis:
• Internal analysis
• External analysis
Internal analysis:
Strengths:
 100% balanced mineral water.
 A highly ethical environment.
 Sophisticated and trained staff.
Weakness:
 Distribution
 Market Price-Takers
 Customer Feedback
 Goodwill
 Strict competition in market.
External analysis:
Opportunities:
• offering discounted rates
11
• Targeting under developed areas to increase volume.

• Clean water moving towards the need of today’s pollutant
environment.
• Have great demand.
Threats:
• Threat of new entrants.
• Discounted rates offer by competitors.
• Government Legislations on environmental Issues
PROJECT PROFILE
Opportunity Rationale
Lahore is a very populous city. Pakistan’s population has soared up to
149.50 Million (according to government sources), and at least one-third of
it is living below the poverty level. Majority of people have no access to
clean water to drink or proper sanitation facilities. These posses’ serious
threats to health of masses. Moreover the variable and harsh climate of
Pakistan causes major viral diseases through out the year. This creates a
great demand for clean water in Lahore. Due to these factors, a big
investment opportunity exists in this sector. Therefore we decided to start
with something which has increasing demand of clean water.
Products offered
 The product range we would like to offer
600 ml bottles (24 bottles per carton)
 1.5 liter bottles (12 bottles per carton)
 6 liter bottles with carrying handle (4 bottles per carton)
 20 liter bottle with stand
Project Investment
The total cost of the project is Rs. 10 millions (one crore).
12
Project Location
The location will be Lahore gulberg area.
Key Success Factors

Some of the Key Success factors that will determine the success of this project include:
 Availability of regular supplies.
 A well trained technical staff.
 Availability of complete product range.
 Reasonable and competitive prices.(may be discounted rates)
INDUSTRY ANALYSIS
Sector Characteristics
The review of Pakistani Mineral water market shows that there are around 150
companies, which are registered with the Ministry of Health. Out of some 100
manufacturing units operating in the country include 10 multinational.
Multinational mineral water companies have played a vital role to provide the base for
the growth of the mineral water industry since the emergence of Pakistan. They have
been enjoying the bulk of the business and are still enjoying after so many years, though
their collective market share has dropped significantly.
Sub sector Information

The mineral water industry has experienced major growth in recent years. As per
an estimate this industry is growing at 18 % annually. The Pakistan’s harsh climate
provides more favorable business opportunities in this business.
Target customers
The Mineral Water industry is growing in Pakistan day by day.
Restaurants
Educational Institutions
Hospitals
Financial Institutions
Home Delivery (specific areas only)
MAJOR COMPETITORS
 Nestle
 Aquafina
13
 Sufi
 Aqua Safe
 Gourmet
What is the competition in the

selected field?
 Competition in quality of product.

 Competition in supply.
 Competition in price.
Product
 100 % Pure Mineral Water
 Health Nutrient by Excellence
 Made on up-to-date technology
 To Maintain optimal levels of Hydration during exercise
Price
 Relatively lower prices than competitors
 Prices according to segments (Income)
 Price schemes and patterns:
 according to competitor price changes
Placement
14
 Product Distribution through distributors

 Efficient mode for the promotion of the product
Factory Agents Retailers
Whole sellers Retailers
They are trying to promote their product through

 Paper
 Billboards
Paper Advertising:
We will advertise in the newspapers on Sundays. The newspapers
used are
 Nation
 News
 Dawn
 Jang
Why client will buy products from you and not from your competitors?
The client will buy product from us not from our competitors because we
provide following facilities;
15
1. We work in ethical way.

2. Timely supply and daily booking.
3. Give one week credit facility on cheque to our valuable customer.
4. Provide cheque facility on full payment.
5. Return leakage.
PHYSICAL RESOURCES
LAND & BUILDING REQUIREMENT
Land Requirement
Approximately 3000 sq/ft. will be required for installing and erecting a water
plant. It is recommended that the land should be fully possessed. And the
Rs.
Cost of land 1,000,000
Cost of building 1,500,000.
Equipment
Details of Office Equipment
Rs.
Furniture and fixture 2,00,000
Miscellaneous tools & equipments 3,00,000
16
Vehicles
Bought 5 vehicles (pick up Suzuki) and following is the detail expense of per vehicle;
Monthly Annually
Rs.
Cost per vehicle (300,000*5) --- Rs.1500000
Running & maintenance Rs. 80000 960,000
Utilities requirement
• Electricity
• Telephone
PROJECT COSTS
The breakdown of total project cost is in the table below:
Project Costs Rs.
Land & building 25, 00,000
Cost of vehicles 15, 00,000
Raw material (empty bottles) 300,000
Plant & machinery 1,500,000
Office Equipment 5, 00,000
Preliminary Expenses 50,000
Total Cost 6,350,000
FINANCIAL RESOURCES
Project Costs Rs.
Plant & machinery 1,500,000
Land & building 2,500,000
Vehicles 1,500,000
Furniture & Fixture 200,000
Miscellaneous equipments 300,000
Raw material (empty bottles) 300,000
Marketing expenses 500,000
17
Advertisement expenses 500,000

Debts ------
73, 00,000
Preliminary Expenses 50,000
Total Project Cost 7,350,000

Cash at bank 26,50,000
Total 10,000,000
HUMAN RESOURCE
Human resource requirement for the proposed project is as under:
Positions Number Salary/month Annual salary
Rs. Rs
Administrative staff:
General Manager 1 40,000 40,000
Other Managers 4 20,000 9,60,000
Assistants & others 10 8,000 9,60,000
Technical staff 10 8,000 9,60,000
Other subordinates 4 5,000 240,000
Grand Total: 3,160,000
ABSHAR ENTERPRISES
Work sheet for estimated Annual income,
Expenses & profit (loss)
Units sold (liters)
8,00,000 9,00,000 10,00,000

(000)
Rs. Rs. Rs. Rs. Rs. Rs.
Income 11200 12600 14000

Sales income (Rs. 14/ liter)
Cost of goods sold:
Production cost (Rs.4.5/ liter) 3600 4050 4500
Carriage 50 60 70
18
Depreciation 150 150 150

Total production expenses 3800 4260 4720
Gross profit 7400 8340 9280
Other operating expenses:
Salaries 3160 3160 3160
Telephone 300 360 380
Insurance 40 45 50
Office expenses 50 55 60
Sales promotion 400 450 500
Travel 50 60 70
Taxes and licenses 80 90 100
Miscellaneous
Total operating expenses 4080 4220 4320
Net profit 3320 4120 4960
ABSHAR ENTERPRISES
Estimated Monthly Expenses & Starting Costs
July 1st, 2008
Estimated Monthly Expenses

(1) (2)
Based on sales How much
Cash
of Rs.8,00,000 needed to start
Item per year business
Rs. Rs.
Salary of managers 60000 120000
All other salaries and wages 21000 63000
Rent - -
19
Travel 4000 12000

Advertising 40000 40000
Delivery expenses 30000 90000
Supplies 80000 240000
Recurring inventory
and purchases - -
Telephone 10000 30000
Other utilities 25000 50000
Insurance 4000 8000
Taxes 5000 10000
Interest - -
Running and Maintenance 80000 160000
Legal and other professional
fees - -
Miscellaneous 10000 30000
Starting Cost Have to pay only Once
Rs.
Fixture and equipment:
Telephone, Rs.5000;
Computer,Rs.60000 65000
Decorating and remodeling 30000
Installation of fixtures and equipment 15000
Starting inventory 100000
Legal and other professional fees -
License and permits 10000
Advertising and promotion for opening (Part of Advertising above)
Accounts receivable -
Cash 500000
Other 50000
Total estimated cash you need to start with 1,623,000
20
Organizational Chart
21
CEO
General Manager
Marketing Production Store

HR Manager
Manager Manager Manager
Assistant Assistant Assistant

Supervisor
Manager Manager Manager
Technical
Subordinate Subordinate
Engineer
Juniors
Plant & Other technical

Machinery staff
Operator
Juniors
A Last Word
22
Finally, it can be concluded that ABSHAR ENTERPRISES will be a profitable project,

because in this era of education people knows importance of clean water which avoids
hundreds of diseases. The sale of mineral water has registered on average 200 percent
annual growth in the past five years in Pakistan, where
the middle class is also in a rush to join the corporate
style of living which still provides 60 percent revenue
to water selling companies and encourages them to
maximize commercialization of drinking water. The
business is growing in big cities like Lahore, Karachi,
Islamabad, and Peshawar.
23

Business Plan Abshar Water

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Business Plan Abshar Water

Hochgeladen von

Copyright:

Verfügbare Formate

Business Plan Report

Our Eyes to see what is dutiful,

We acknowledge the efforts of all to those (including our

parents, teacher and class fellows) whose contributions made this

We pay gratitude to our venerated teacher

been gracious enough and helpful to us as well as all the students.

His well-directed guidance and didactic efforts have always been

a source of inspiration for us. It was his valuable guidance and

instruction in our present academic pursuit otherwise our sole

efforts might not have been of considerable value.

We are, and shall remain extremely beholden to him for his

Annual Income report 15

Monthly expense Report 16

• As to how we can start new venture, its objectives,

• Importantly what would be the project cost and

• What strategies and planning need to be adopted to

• How much expenses would be required?

• What type of tangible assets is required to start

• What will be the organizational structure of our

The entire above mentioned questions appertaining to our

BUSINESS LEGAL STATUS

The objective of this project primarily is to put into practice

The business we choose is Manufacturing Of Mineral Water. We

What is Mineral Water?

Is obtained directly from natural or drilled sources from

“To be the benchmark for prestige, natural spring water in

“To provide the highest

To become a best manufacturer among the top tenth at least

1. The qualitative and quantitative point of view.

2. Hire vehicles for distribution.

• Targeting under developed areas to increase volume.

Key Success Factors

Sub sector Information

What is the competition in the

 Competition in quality of product.

 Product Distribution through distributors

Factory Agents Retailers

Whole sellers Retailers

They are trying to promote their product through

1. We work in ethical way.

Running & maintenance Rs. 80000 960,000

Advertisement expenses 500,000

Total Project Cost 7,350,000

Grand Total: 3,160,000

Units sold (liters)

8,00,000 9,00,000 10,00,000

Income 11200 12600 14000

Depreciation 150 150 150

Estimated Monthly Expenses

Travel 4000 12000

Starting Cost Have to pay only Once

Total estimated cash you need to start with 1,623,000

Marketing Production Store

Assistant Assistant Assistant

Plant & Other technical

Finally, it can be concluded that ABSHAR ENTERPRISES will be a profitable project,

Das könnte Ihnen auch gefallen