AQUAMAX FLAVORED WATERS

AQUAMAX FLAVORED WATERS

AQUA MAX

AQUAMAX FLAVORED WATERS

AQUAMAX FLAVORED WATERS

A project of AQUA MAX flavored water

Prepared by Entrepreneours (HITEC UNIVERSITY)
Jamil Hassan Khattak Samar Aziz. Abrar Hussain. Faheem Hussain. Dated: 2nd Dec, 2011.
4

AQUAMAX FLAVORED WATERS

ACKNOWLEDGEMENT

First of all we all group members would like to thank ALLAH ALMIGHTY who has helped us at every stage in completing this project.

Secondly, we would like to thank our teacher who has helped us learn a lot about Entrepreneurship and his teaching has had a huge impact on our way of observing things. We had tried to put in all of our efforts and knowledge in completing this project that we had gained during our semester and by the teaching of our instructor.

AQUAMAX FLAVORED WATERS

Executive Summary
Flavored waters are produced and consumed for their refreshing character and nutritional qualities being rich in vitamins and minerals and having regulatory functions to the body . Moreover the global trend of preferring flavored waters also marks possibilities of growth in this sector. Furthermore, the growing exports volume and withdrawal of CED (customs and excise duty) on flavored waters (produced locally) could further supplement significant growth in the flavored waters industry and purses us to start this business. The company aims to provide a sophisticated quality to consumers that will surely attract them and retain them by serving with the best. Our key product is the flavored waters made from the fresh and pure water of Pakistan. The initial investment of the project and the total cost of the project is estimated at around is about 150 Million. The working capital requirement is around Rs. 2, 0601,176 million and the rest will be the fixed capital that is around Rs. 112,808,000. Production facility is located at Industrial Sector HATTAR. That is 45 km away from the Capital of Pakistan. Flavored waters aim to cater to the needs of the customers with a sheer dedication to quality and a mission of maintaining excellence in all our endeavors. Our mission is to provide best water with style and quality. To achieve our long term goals we have established a strong marketing strategy. It is also important to tell that flavored waters product has a meaningful point of difference i.e. sophisticated and healthy attractive packaging, less use of preservatives and clearly mentioning of purity of the water.

AQUAMAX FLAVORED WATERS

TABLE OF CONTENTS Serial No

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 The business profile: Target market and customers: Growth trends in the business: THE VISION AND THE PEOPLE Why we want to do this business? Work Experience Related to My Intended Business Skills and knowledge required for the business Personal background Education credentials Communications Organization LICENSES PREMISES Marketing and sales MARKETING MIX SWOT ANALYSIS Total investment of the project Financial Requirement (Capital assets) Accounting and balance Sheet Projected income Statement E-Commerce Web Site 08 08 09 11 12 12 12 13 14 14 16 16 17 17 18 23 24 25 31 32 33 35

Description

Page No

AQUAMAX FLAVORED WATERS

1) The business profile:

In order to do something different our group has decided to introduce such a product in the market which is not in existence at the moment in Pakistan and that is flavored water at the present moment no organization is manufacturing it in our part of the world. AQUA MAX is actually an English word that means Sweet Water. AQUA MAX will engage in the manufacture of drink mixes and flavor systems. Its applications will be beverage industries. Its customers will include convenience store chains. It will have a network of broad line and dual distribution channels own stores plus specialty distributers who will sell to the convenience stores and the departmental stores in every city of Pakistan.

2) Target market and customers:

A group of customers that the business has decided to aim its marketing efforts and ultimately will be the people of Pakistan. The major portion of the market for which our company is working is the children and Youth of Pakistan because the percentage of children and youth in Pakistan is round about 70% of the total population. Here after comes the aged people of Pakistan, the company is offering the sugar free and diet flavored waters for this sector of the demographics. Its being forecasted by the team members of AQUA MAX that customers will want and need for the AQUA MAX flavored water drinks because now days if u see the soft drinks have a wide completion in Pakistan and is almost the saturated industry of Pakistan. AQUA MAX will bring a new trend and new taste of water among the people of Pakistan. Therefore now The AQUA MAX has an opportunity to launce the flavored water solutions in Pakistan. It will be the pioneer of the flavored water in Pakistan therefore it will have the status of a monopoly in the flavored industry. Though soft drinks are going on its peak and is the most profitable industry of Pakistan but it also has the draw backs, that the beverages companies are using caffeine, high sugar and other items in their products in a very high amount that are causing the health problems in the aged sector of Pakistan.

AQUAMAX FLAVORED WATERS

3) Growth trends in the business:

The market of our product has the growing trend. As there is no flavored water industry in Pakistan therefore we have the opportunity to grow rapidly in the market.

3.1) Pricing power:

The uniqueness quality or circumstances concerning our product that will enable us to maintain the profitable pricing has the following steps.

3.11).Focus on the customer:

The most valuable component of a small business is a customer. We in our company realize that everything in the business even the business itself depends on creating a satisfied customer. in doing so, we tend to be connected to our customers on an emotional level and look forward to establish deeper relationship with our customers by taking exceptional care of our customer needs and by fulfilling their expectations in the quality of our product.

3.12). Devotion to quality:

At AQUA MAX we understand that in that business quality goods and services are a prerequisite for success and even survival. We establish our company with a distinct and extra ordinary level of quality to our customers. At AQUA MAX quality is much more than just a slogan posted on the company bulletin boards, rather we treat quality as a strategic objective an important part of companys strategy and culture. We will provide quality not just in the product or services itself but in every aspect of the business and its relationship with the customer. After surveying we came to know that people have a strong desire of a product that is new in nature for the regular customer. The feature of our enterprise is only based on the high quality & new flavors.

3.13). Reliability:
We never compromise on taste, freshness and quality of flavored waters. We always provide excellent quality which results in increasing trust of our customer on our brand. We tend to acknowledge edge our customer that we care about their health and give extra attention to that. Unlike other companies which use artificial sweetness and artificial flavor in their flavored waters. We use fresh and pure water to enhance the nutritional value of our product and gives to an extra care to customer health. Product completely satisfies the

AQUAMAX FLAVORED WATERS

demands of targeted customers, which ultimately leads towards the strong customer loyalty for this brand.

3.14). Durability:
AQUA MAX is preserved in a way that it remains fresh even after 1 week of expired date mentioned on the container.

3.15). Ease of use:

AQUA MAX is packed in easy to carry and easy to open container. Its packed in different size of bottles that are open in an easy way that are gives addictive convenience to its customer.

3.16). Low price:

Considering the splendid quality of AQUA MAX we provide it in a price quite reasonable and easily affordable with excellent quality. So its not a burden on buyers product. People always preferred low price but with better quality so our product fulfill the customer want by providing that.

3.17). Attention to convenience:

We regard that convenience to customers is the driving force which can give real boom to our company. Customers when asked always reply that all they provide want from a business they deal with convenience. We take extra care to make possible that our product is available to our customers easily on all their nearest retailer shops through wholesalers. Our product is not more than an arms distance to our customer.

3.18).Concentration on innovation:
Markets change too quickly these days and companies who stand still and fail to come up with innovation fail to succeed. We expect to lounge our product in tastes which make a difference in existing market other than the traditional waters like nestle, aquafina, kinley etc. In packaging we are showing very attractive logos and slogans to attract the customers.

10

AQUAMAX FLAVORED WATERS

3.19). Dedication to services and customer satisfaction:

We recognize that unsuccessful business, superior customer services is only an intermediate step towards the goal of customer satisfaction; we even seek to go beyond customer satisfaction and strive for customer pleasure and never changing confidence in our product.

3.1.1).Listen to customers:
To keep up with needs and demands of our customer we conduct survey and provide a comment card with our product to be filled by the customer. By customers feedback we can gather information about what our customers really value and what improvements they demand from us.

3.1.2). Define superior services:

We provide superior quality at affordable or reasonable price. We listen to the customers and fulfill their need and wants that they want to change or improve in our product.

4) THE VISION AND THE PEOPLE:

Vision:
Vision we want to see our business working round the clock to serve the customers. And one day we want to make ourselves available in global market and compete against the brands like Musafi and sobe flavored water.

Mission:
To create and sell healthful, naturally oriented waters that nurture people's bodies and uplift their spirits. Our products must be: * Superior in quality. * Of good value. * Beautifully artistic. * Philosophically inspiring.

11

AQUAMAX FLAVORED WATERS

Objectives:
To provide excellent quality products. To do extraordinary publicity of our brand name and make people aware of it. To give customers more and more benefits. All above points for the sake of good profit. Providing nutritious and hygienically processed flavored waters to our customers. o Enhancing our reputation for quality in all our operations. o Promoting mutual trust with customers. o Providing a safe and healthy environment to our community. o o o o o

5) Why we want to do this business?

Because we want to have good profit from our business and this is a business which is not very common in Pakistan. That is why there is still very much room available in this business. So by uniqueness and with our different touch well achieve our goals by the grace of God.

6) Work Experience Related to My Intended Business:

Our team havent done any such kind of business practice therefore we dont have any kind of previous experience this is our first entrepreneurial project and we are doing it with full devotion and are hopeful that will generate a high profit than the experienced people.

7) Skills and knowledge required for the business:

Following are the list of the skills and knowledge that our team require in acquiring the aim of our heart. Entrepreneurial skills. Leadership skills. Financial skills. Marketing skills. Management skills. Project management skills. Knowledge of accounting and auditing. Benchmarking skills. Total quality management skills. Operating computer software skills. Knowledge of E-commerce. International business management skills.

12

AQUAMAX FLAVORED WATERS

8) Personal background:
Every person in the world has lot of strengths and weaknesses therefore we team members also have. Following are the some brief personality judging list of our team members.

Jamil Hassan Khattak. Strengths

Likes to work in teams. Leadership skills. Relations. Risk taker. A man of commitment. A man of principles. Teacher and team support.

Weaknesses
Emotional. Irregular in saying prayers. Feels irritation in accepting the failure.

Samar Aziz.
Strengths Weaknesses

Proactive. Good problem Anticipator. Hard working. Punctual. Can work under stress. Focus on the projects. Practical in nature. Abrar Hussain.
Strengths

Over concentrating on The problems. Shy. Introvert. Too emotional sometimes.

Weaknesses

Proactive. Optimistic. Convincing power. Communication skills. Networking power skills.

Little bit shy. Straight forward. Kind to everyone.

13

AQUAMAX FLAVORED WATERS

9) Education credentials:
Names
Matric F.Sc Bachelor in business Administration (BBA)

Jamil Hassan Khattak

69% with Federal board. Pre Engg, 59% with Federal board. 3.2 cgpa, with Finance specialization

Samar Aziz
80% with Mardan Board. Pre medical With Mardan Board. 3.38 cgpa, with finance specialization.

Abrar Hussain
72% with Federal board. Pre Engg, 53% with Federal board. 3.0 cgpa, with Finance specialization

10)

Communications:

Communication is a major competency for Managers. Good interpersonal and communication skills drive effective management and leadership.

10.1) what is Communication?

Communication is the process of conveying information and meaning Effective communication involves the ability to transmit and receive information with a high probability that the intended message is passed from sender to receiver. Communication is the sharing of information between individual or groups to reach a common understanding in order to accomplish organizational goals and objectives.

10.11) Means of Communication:

Following are the means of the communication that will be used in our entrepreneurial firm. Computers. Telephones. Extensions. Intercom. Pagers. Facsimile. Photo copier machine. Internet. Multimedia.

14

AQUAMAX FLAVORED WATERS

10.12) Description and the Cash flow for the communication Equipment:
Description
Telephone: Its one of the major tool of the communication in the firm as with telephones we can lively do voice chat with our customers suppliers, distributors, lenders, investors.

Cash flow
No of Telephones: 04. Cost of telephones: Rs. 3,000 per phone. Installment fee: Rs. 1,000 each. Security fee: Rs 10,000 each. Total cash out flow for telephones = Rs 56,000/ No of Computer: 03 Cost of computers: Rs 60,000 each. Total Computers cost = 180,000/-

Computer: Its one of the major tool of the communication in the firm as with laptops we can store, retrieve, manipulate our business information and deliver our product to our customers, suppliers, distributers, lenders investors. Pagers: These are the simple personnel Casio pager Current Price = Rs. 4000/telecommunication device for delivering the shorts messages we can receive a message consisting of few digits typically a phone number that user is than requested to call. Its a type of one way numeric pager. Photo copier machine: Xerox (Digital Cost of the photocopier machine= photocopier printing machine) Model Rs. 127,000/(MDK- A3) Facsimile: A Fax short of (facsimile) is a DELL D630, C2D2.0/2.2, 800FSB with document send over telephone line. Its various configurations at unbeatable price. one of the cheapest sources of Price = Rs. 27500/communication that the organizations can send and receive a printed document in seconds. Projector (Multimedia): Its one of the PHILIPS Multimedia projector in focus with visual sources of delivering the remote and bag is = Rs. 16,000/information to the audience. Its more user friendly than a simple data delivering source. Internet: Its the well of Knowledge and Ptcl Broad band internet Fee = Rs. 2000/the most utmost necessity of the firm. Speed = 4 Mbps. Internet allows to browse, sending and receiving E-mails and collecting data about the every sector of the world. Total Budget for the communication equipment in our firm = Rs. 412,500/-

15

AQUAMAX FLAVORED WATERS

11)

Organization:

It is a social unit of people systemically structured and managed to meet a need or to pursue collective goal on a continuing basis. All organization has a management structure that determines relations between functions and positions and subdivides and delegate goals, responsibilities and authority to carry out defined task. Organizations are open system in that they effect and are affected by the environment beyond their boundaries.

11.1) Business organization:

There are three types of organizations in the business world. Sole Proprietorship. Partnerships. Corporations.

We team members are having the partnership business organization. Its best for our firm because we all have the equal participation in preparing a project report and all three members have the specific work assigned a firm will be so difficult to run if any one of us terminate from the project.

12)

LICENSES:

Doing business as:

AQUA MAX flavored waters.

Zoning:
I choose my site HATTAR ROADWAY 40 km away from the capital (ISLAMABAD) of Pakistan. HATTAR is the cheapest industrial area as compared to the surrounding areas of HATTAR.

Licenses: Registration From National Tax Centre. Registration from the Rawalpindi Chamber Of Commerce. Registration from the SECP.

16

AQUAMAX FLAVORED WATERS

13)

PREMISES:

13.1) LOCATION CRETERIA: Space Requirement:

The space requires for all the Firm and system plant and related facilities will be 3 acre.

Site analysis:
I choose my site HATTAR ROADWAY 40 km away from the capital (ISLAMABAD) of Pakistan. HATTAR is the cheapest industrial area as compared to the surrounding areas of HATTAR. Here we can easily approach to the cheap labor, land, suppliers, distributors and can grip my target areas easily. So it is beneficial for us to launch our project at that site.

14)

Marketing and sales:

Building customer relationship based on customer value and satisfaction is at the very heart of modern marketing. The fold goal of AQUA MAX marketing is to attract customers by delivering satisfaction. We want AQUA MAX (Flavored water) product to be within reach for every single Pakistani. Yet nutritional value and quality remain the most essential ingredients in all our brands. Over the years, food products have evolved from mere commodities to a statement of lifestyle as consumers get more health and quality conscious, consumer empowerment surges. We continue to play our part in facilitating this revolution by launching value-added product (flavored water) with different flavors like Strawberry, Raspberry, Orange, Blackcurrant, Peach, lemon and Pineapple. For instance, you can purchase AQUA MAX Flavored waters in several different sizes depending on your needs. A personal-sized 200 ml for on-the-go consumption. A liter pack for your fridge. Our brand is equipped with the Nutritional Compass that ensures all the nutritional information about the product is accessible thanks to our user-friendly nutritional labeling and guidelines. We're proud to be the only flavored Water Company in Pakistan to venture. We have developed an intensive distribution strategy that brings our products to your door, through effective communication, door-to-door sampling, and exciting consumer promotions. We focus especially on Pakistan's smaller towns, where activities such as town storming, distribution drives and intensive distributor training ensure that products are easily accessible and visible. Our widespread global network presents opportunities to learn from innovative techniques used in faraway countries. Pakistans favorite water is now available.

17

AQUAMAX FLAVORED WATERS

15)

MARKETING MIX:

Now moving towards the marketing mix of our product we will be discussing the product, Price, Placement and Promotion.

15.1) Product:
AQUA MAX flavored water.

15.11) Product Description:

Our product is purely natural flavored. The usage of our product helps in reducing calories. Our product can be use as fat free liquid fluid. Free of carbonates.

15.12) Diabetics:
We will certify our product from a Certified Research Institution of Ministry of health. This product may be useful in your diet on the advice of a physician.

15.13) Ingredients of our product are:

Fresh soft water. Cane sugar. Natural flavor. Citric acid. Sucralose.

15.14) Product development:

After one phase of the lifecycle of our product we will introduced our packaging in 19 Liter bottle.

18

AQUAMAX FLAVORED WATERS

15.15) Product Lifecycle:

Our product lifecycle is now in the phase of introduction where we launch our product in the prevailing market of Pakistan.

15.16) Packaging:
The packaging of our product will be in the following sizes. A personal-sized 200 ml for on-the-go consumption. A liter pack for your fridge.

15.2) Price:
As far as price of our product is concern we think is a part of our financial plan, at this time we are thinking about possibilities about two options one of them is Value base pricing where we conduct customer survey and asked them what will be the suitable price for our product. And the other one is the cost base pricing where we calculate our both variable and fixed cost after that adding reasonable margin we will introduce the price.

15.3) Placement:
The Plant is proposed to be Located at industrial area near Hattar road. The location is selected because it is feasible for the production at large scale. My product is being served in the market through distribution channels that have link with super and departmental stores. Our marketing in charge will be responsible for the distribution strategy. We will hire vans for the delivering of our flavored waters to the departmental stores. The marketing in charge will remain in contact with the manager of the departmental stores so that the manager informs them when the product run short so that it can be deliver on time.

19

AQUAMAX FLAVORED WATERS

15.4) Distribution Channel:

We will market through wholesalers while is one of the widely used and most important channel of distribution. This channel of distribution enables us to sell the goods in lot of to a few selected wholesalers who sell it to retailers, who in turn sell it to the consumers. The wholesalers acting as a middleman take title to the goods. Assume risks, appoint dependable retailers, provide goods on cash as well as a credit and thus spreads sale on a wider market for our product.

15.5) Promotion:
In order to compete with indirect competitors and introduce our aggressive product promotion would be required at the launch stage. The promotional mix would include: 15.51) Advertising Advertisements in Newspapers and sales promotions will be the tools of promotions. The company will be launched soon and the focus in the initial months of launching will be to create awareness of our product and to tell customers that what the company is. Ads will be given in Jang and The News. Moreover personal selling of cards by the sales people both in corporate and to general public would be the vital part of our product promotions. Company will also provide special customer incentives at different events like Eid, Ramadan, New Year etc. Web ads will be hosted free by the product that is providing dedicated line facility. Following are the ways through which we will do our promotions. Billboards. Television. Radio. Newspapers. Broachers. Internet.

20

AQUAMAX FLAVORED WATERS

Free Samples.

Are the mediums which have been powerfully used for the promotion of AQUA MAX flavored waters. Billboards Keeping in mind out target market we have placed billboards near educational institutions. We have also arranged for vehicles for mobile billboards.

Television:
Television advertisement is also arranged to hit customers minds to and to give them awareness about our product. For this that is primarily for youngsters have been chosen.

Radio Advertisement on Fm 101, Fm 103 and FM 89 is also a part of the promotional activities.

21

AQUAMAX FLAVORED WATERS

Newspapers Advertisement has also been given in English and Urdu newspaper. For English Dawn and for Urdu Jang paper has been selected.

Free Samples Free samples will be given to students by going to their schools, colleges and universities. It will be a good way of promotion.

15.6) Sales Promotions

AQUA MAX will be promoting in the market by placing the product in each and every Shop, by distributing the brochures in the markets, by advertising on the Cable Network. So when the person who is also watching cable Network he will get awareness of the AQUA MAX and will buy this flavored water.

22

AQUAMAX FLAVORED WATERS

16)

SWOT ANALYSIS:

16.1) Strength:
Our companys strengths are as follows, Purity Guaranteed. Vacuum packing to maintain freshness and ensuring quality. Introducing flavored waters first time in local brand. Strong infrastructure facilities including storage & transportation facilities. Convenient packing with cap. Quality improvement. AQUA MAX flavored waters are best for family because they provide all the healthy ingredients. We can compete with our competitors easily on the basis of innovation. We can provide a better quality with reasonable price.

16.2) Weakness:
High processing and packaging costs Single Product Company High cost of backward integration (availability of raw material) Limited Distribution.

16.3) Opportunities:
Healthy organic and natural drinks oriented local and global culture. We would always need to bring some new innovations to stay in the market. High Export potential. With good pre-harvest planning, which is around 50% of the total production, could be turned into potential business opportunity. Reduction in excise and import duties on food processing machinery. Company fulfills the customers wants and needs we can easily catch the market share.

23

AQUAMAX FLAVORED WATERS

There is a market demand. Due to its innovative nature there is a high growth rate.

16.4) Threats:
Price sensitivity and low consciousness towards quality amongst consumers. Wide availability of sub-standard substitutes. Heavy advertising from existing giant players. High cost to meet international quality standards In direct Competitors threat because they are more experienced Competitor prices are less than ours. It is very hard to find good quality stuff and material. It is very hard to keep pace in the market at once.

17)

Total investment of the project:

90 Million 6 Million 54 Million

Long term loan from banks @ 14% Investment by owners Investment by the investors

Total Investment
17.1) Estimated Financials of the project:
IRR Pay Back Required Rate of Return on Equity Cost of Debt

150 Million

21%. 4.9 Years 20% 14%

24

AQUAMAX FLAVORED WATERS

17.2) Financing of the project:

We team members have thought about three sources of financing that are as follows. Bank loans. Investors. Personnel equity.

18)

Financial Requirement (Capital assets):

A) Plant and Machinery Requirement: S. No. Machine

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Boiler Air Compressor Plate Heat Exchanger Sugar Hopper Syrup storage Tank (316 Grade Stainless steel) Mixing Tank with scale Storage Tank CIP Tank storage and shifting Tanks Balance Tank Turbine Fork Lifter Shrinking Wrapping/ Tray Making Machine Conveyor Misc Fitting /Piping, Motors, Pumps, Valves

No Of Units
2 2 2 1 2 1 2 3 1 1 2 2 2

Total Cost
10,00,000 14,00,000 40,00,000 400,000 12,00,000 600,000 12,00,000 800,000 150,000 75,000 11,00,000 10,00,000 350,000 10,00,000 28,00,000

A)

Total

15,275,000

25

AQUAMAX FLAVORED WATERS

B) Packaging Machinery Requirement:

S. No.
1 2 3

Machine
DMARK PLASTIC MOULDING MACHINE (DMK-R16) Freight Security Equipment and applications

No Of Units
1 1

Total Cost
61,407,000 60,000 500,000

B)

Total C) Cold Store Machinery and Others Equipment:

61,967,000

S. No.
1 2 3 4

Machine
Electric Generator Cold Storage Machinery Tools & Equipment Laboratory Equipment

No Of Units
1 -

Total Cost
24,00,000 52,00,000 600,000 12,00,000

C)

Total

94,00,000

D) Land and Building Requirement: S. No.

1 2

Machine
5 Acre Land at HATTAR Estate Construction

Area (Sq. Ft.)

43500

Total Cost
45,00,000 1,76,45000

D)

Total

22,145,000

26

AQUAMAX FLAVORED WATERS

E) Furniture and Equipment Requirement:

S. No.
1 2 3 4 5 6 7 8

Machine
AC Electrical Fittings Furniture Computers Printer Fax Scanner Photocopier

No Of Units
5@50,000 1@200,000 1@350,000 10@28000 2@18000 2@10000 1@10000 1@75000

Total Cost
250,000 200,000 350,000 280,000 36,000 20,000 10,000 75,000

E)

Total

12,21,000

F) Vehicles Requirement:
S. No. Machine No. Of Units Total Cost

28,00,000 1 Delivery Vehicles (Hyundai Shehzor) 4@700,000

F)

Total

2,800,000

27

AQUAMAX FLAVORED WATERS

Total Capital Asset Plant and Machinery A) B) C) D) E) F) Packaging Machinery Requirement Cold Store Machinery and Others Equipment Land and Building Requirement Furniture and Equipment Requirement Vehicles Requirement Total 1,52,75000 6,19,67000 94,00,000 2,21,45000 12,21,000 28,00,000 112,808,000

18.1) Financial Requirements (Working Capital): S. No. 1 2 3 4 5 Cost First Three Months Salaries (w-1) First Three Months Utilities charges (w-2) Misc. Expenses Inventory( Raw Material 2 Months) Permanent Portion Of Working Capital In the form of Cash Total Amount 2,07,3000 810,000 10,00,000 6,218,176 10,500,000 20,601,176

28

AQUAMAX FLAVORED WATERS

Working 1:
S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Designation G.M/CEO/Owner Production Manager Marketing Manger Controller Finance/AC HR Admin Officer Assistant Production Manager Procurement Officer Assistant Marketing Manager Payable Officer Security Guard Receivable Officer No Of Persons 1 1 1 1 1 1 1 1 1 9 1 Monthly Salary 100,000 50,000 50,000 50,000 50,000 30,000 30,000 30,000 30,000 10,000 each 30,000 30,000 2@8,000= 16,000 15,000 5@10,000= 50,000 8@5000= 40,000 20,000 40,000 2@20,000= 40,000 Total Cost (Month * 3) 300,000 150,000 150,000 150,000 150,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 48,000 45,000 150,000 120,000 60,000 120,000 120,000 2,073,000

Recruitment/Compensation 1 Benefit Officer 2 Electrician Chemist Supervisor Machine Operator/Labor Packing Officer Sales and Distribution In charge Sales and Distribution Officer Total 1 5 8 1 1 2

29

AQUAMAX FLAVORED WATERS

Working 2

S. No.

Utility

Total Monthly Cost 150,000

Electricity 25,000

Gas or Furnace oil Lubricants ETC

Diesel for Generator

20,000

Water

50,000

Telephone

25,000

Total

270,000

30

AQUAMAX FLAVORED WATERS

19)

Accounting and Cash flows:

Projected Balance Sheet

Assets
Current Assets: Cash and Bank Balance.. Rs. 28,883,000 Raw Material Inventory . Rs. 6,218,176 Non Current Assets: Plant and Machinery ...Rs. 15,275,000 Packaging Machinery .....Rs. 61,967,000 Cold Store Machinery and Others ..Rs. 9,400,000 Land and Building ..Rs. 2,21,45,000 Furniture and Equipment ....Rs. 1,221,000 Vehicles ..Rs. 2,800,000 Intangible Assets: Preliminary Expenses .........................................................................Rs. 2,000,000 Total Assets....Rs. 149,909,176 Equity & Liabilities

Owners Equity ..Rs. 54,163,670 Long Term Liability ...Rs. 81,245,506

Total Equity and Liabilities Rs.

149,909,176

31

AQUAMAX FLAVORED WATERS

20)

Projected income Statement:

Projected Income Statement

Sales Rs. 33,69,60,000 Less: Cost of goods Sold: Raw Material ....Rs. 20,14,73,044 Labor . .. Rs. 1,39,72000 Utilities . ...Rs. 1,32,40000 Total Cost of goods Sold .Rs. 22,86,85,044 Gross Profit .Rs. 1,08,27,4956 Less: General Admin and Selling Expenses Salaries .. ..Rs. 82,92000 Amortization of preliminary Expenses ...Rs. 400,000 Depreciation Expense ..Rs. 1,02,84600 Maintenance Expense...Rs. 12,61200 Selling and DistributionRs. 1,62,82,244 Miscellaneous Expense.....Rs. 10,00,000 Total of General Admin and Selling Expenses.Rs. 3,75,20,044 Operating Income ..Rs. 7,07,54,912 Less: Financial charges @14% per annum...Rs. 11374370 Earnings after interest ......Rs. 59380542 Cooperate Tax Rate (39%).. .Rs. 23158411 Earning After interest and Tax.. ..Rs. 36222131

Net Profit. .Rs. 36222131

32

AQUAMAX FLAVORED WATERS

21)

E-Commerce:

21.1) E-Commerce Defined:

E-Commerce, which is short for electronic commerce, is the process used to distribute, buy, sell or market goods and services, and the transfer of funds online, through electronic communications or networks. Electronic commerce is commonly referred to as online commerce, Web commerce, E-Business, E-Retail, E-Commerce.

21.2) what are the Benefits of E-Commerce & E-Business?

The processes involved with conducting business on the Internet and opening an E-Commerce shop to sell from have several benefits to both merchants and the customers who buy from them. The biggest benefits of conducting business Online include a cheaper upfront cost to the merchant, it's easier to set up and open the store and it's faster to get an online business up, running and making sales. Following are the advantages. Helps Create New Relationship Opportunities. Open for Business 24x7. Increases Brand or Product Awareness. Helps Establish Customer Loyalty. Potential to Increase Overall Business Sales. Potential to Increase Company Profits. Potential to Decrease Some Costs. Expands Geographical or Customer Reach. Allows for Smaller Market or Niche Targeting. Allows for Easier Delivery of Information.

21.3) what is E-Commerce Marketing? E-Commerce Marketing Defined:

E-Commerce marketing can be defined in many different ways and can include both Online and Offline campaign strategies. Most often, it's considered to be the marketing of goods and services over the Internet or any other electronic network (like a mobile phone). E-Commerce marketing is commonly referred to as E-commerce optimization, online marketing, search engine marketing, search engine optimization, merchant marketing and many more variations of those terms.

33

AQUAMAX FLAVORED WATERS

21.4) what are the Benefits of E-Commerce Marketing?

Following are the benefits of the E-commerce. Tax Breaks for Conducting Business Online. Cheaper than Print Advertising. Interactive Ads or Marketing Campaigns. Flexible Ad or Marketing Campaigns. Builds Lasting Customer Relationships. Helps Build Brand Credibility. Gather Feedback from Customers. Conduct Cheap Market Research. Lower Startup Costs Increase Efficiency. Lower Startup Costs Increase Profitability. Increases Growth or Opportunity Potential. Global Market Reach. Potential to Market Any Product. Flexible Schedule or More Personal Time. Ability for Multiple Revenue Streams. Helps Promote Brick-and-Mortar Businesses. Allows for Faster, Easier, Efficient Discovery. Potential to Improve Accessibility. Potential to Improve Usability. Easier to Maintain Over Time.

34

AQUAMAX FLAVORED WATERS

www.aquamax.com

35

AQUAMAX FLAVORED WATERS

36