@ekeh_ifeanyi_magnus
Ekeh ifeanyi magnus
139 w
EXECUTIVE SUMMARY Agriculture though the oldest profession even before man was created he remains under exploited. It is the gold mine that many have refused to tap into. So going into palm fruit processing is a major aspect of agriculture that has great return on investment (ROI) yet less investment both by individuals and government. It is important to note that every part of the palm fruit is valuable. That is why we have chosen to venture into it by harnessing all benefits from palm oil to palm kernel oil and even the palm kernel cake. Palm fruit is a rich source of vitamin A, which is required by every members of the house hold. Our intention is to build the brand that will take over a large market share by serving the various segment of the economy that uses the numerous products that comes from palm fruit. The huge population of Nigeria is a great advantage to the success of our business, for instance there is no house hold in Nigeria that does not use one product or the other that is manufactured with palm oil product as a bye product. With this, we intend to create employment, economic stability, raw materials and even foreign earns to the economy. We will explore the favorable governmental policies and also do better than our competitors. We will make use of the strength and opportunities available to overcome our weaknesses and threat. Becoming the number one choice in the industry is our target although we are still at the ideal stage. INTRODUCTION Overview The ideal of this business was born after considering the numerous needs that palm oil product serve and the huge income/revenue that accrue to it. Although we are still on ideal stage, we have done feasibility studies to ascertain the viability or otherwise. VISION STATEMENT We desire to become among the top five in the industry in the next 3years and the most preferred in the industry in the next 5years. MISSION STATEMENT Providing healthy and quality product to every door step and at an affordable price. OBJECTIVES Our aim is not just to start a business as others but our realizable targets are our driving force. To provide healthy product without compromising qualities that will be recognized as the best in the market. To take our business to a level that it will have presence in every region of the country. To capture in the first instance a huge segment of the economy, thereby increasing our market share. To increase turnover to a level that profitability will be granted at all times. To become the preferred brand in the market. VALUE PROPOSITION Some of the key values we intend to deliver to our customers include but not limited to the following. Always available in the market to eliminate scarcity and hurdling. Affordable price to all customers. Healthy product with all the vitamins intact Enhance efficiency in production especially to our customers who will use our product as raw materials. THE PRODUCT The palm tree is one tree that has unlimited usefulness and the palm fruit has so much economic benefits even more than crude oil. Therefore our business is to utilize all that is in the palm fruit. After the feasibility study, we are well determined to go into the business. The processing of palm fruit from start to finish which entails extracting the palm oil from the palm fruits, crushing the palm nut to get the palm kernel oil (PKO) and palm kernel cake (PKC) as well. All these and more are loaded in every palm fruit you pick from the ground. Our products are: Palm oil: this is the reddish liquid that comes from the palm fruit and rich in vitamin A, every house hold uses it for cooking, also in the form of cream or soap. So these product will serve a vast segment of the economy both individuals and organizations. Palm kernel oil (PKO) this oil come from crushing the kernel. It is a rich antioxidant agent that contains vitamin E. this explains why it is highly demanded by cosmetics industries. Even in its crude nature mothers use it as baby cream. It is even more expensive than palm oil; it is widely used in baking product. Palm kernel cake (PKC): this product is a high fiber but medium grade protein for livestock feed, it is obtain when you crush the kernel and extracted the PKO. It is use in producing animal feed supplement, like pig and poultry. INDUSTRY AND MARKET ANALYSIS The business of palm product processing falls in the ever green sector of agriculture which is largely untapped to due to poor perception of agriculture in our society. There are some key peculiarities that make this industry viable. Widely used by both individuals and industries In short supply due to few players which give room to growth Exportable product Available raw materials (Palm fruits) In recent times, the government has place ban on importation of product that could be manufactured locally. This policy is a big boost for this industry to grow. We have identified the market to serve and we are starting with Nigerian market which is large enough. We have also identify some of the major competitors already in the industry like Okomu oil Ltd and Siat Nig Ltd. Both have palm plantations and mills. Considering the huge population of Nigeria and the vast use of palm produce, the market size estimated to be in the range of $5billon to $15billion per annum and we intend to get about 40% of this market in the next 3years. THE DIFFERENT CUSTOMER GROUPS WE IDENTIFIED INCLUDES: Cosmetic industry Baking industry Food processing industry House hold Potential growth in this industry is inestimable. Daily consumption palm products are on the increase. COMPETITION Our major competitors in this industry are Okomu oil limited Sait Nig Limited. Both are producing palm oil product in large scale and their product are easily notice in the market. One of the competitive advantages is that they have been in the market over timethem ready and cheap input. Their primary focus is serving or supplying raw materials to other industries like cosmetics, baking etc. As new entrant, producing our product and making them available even sachet to customers will enhance our profitability. The hurdle to overcome as new entrant is medium. Some of which are pricing to penetrate the market and acceptability by our prospective customers who already have choice but our superior packaging will make us stand out and ensure preference and customer loyalty. SWOT ANALYSIS STRENGTH Good management, experience and qualified staff Good funding and credit Quality and healthy product Superior and brilliant packaging Technical support from partners WEAKNESS Untested product Low level of acceptability OPPORTUNITIES Conducive environment Proximity to market Favorable economic policies Modern processing equipment THREAT Inadequate supply of palm fruits Unstable government policies Smugglers We will ensure we maximize our strength and opportunities as a competitive advantage. OPERATIONAL PLANS Going by the current economic policies on agricultural production in Nigeria, there is no license or permit required to operate a palm product processing business in Nigeria. Some of the material resources required for the operation includes Raw materials: the major raw material needed in this business is the palm fruit. This material is sourced from the south-south and south-east state of Nigeria. There are so many ways of getting this material namely direct purchase from farmers, suppliers agents or by out sourcing. We chose direct purchase because it is easier and gives us direct access to farmers. Physical asset: here we have the facilities (land, structures and offices), equipment for production and processing of our palm product. Also the vehicles for in bound and out bound deliveries. All we acquire through direct purchases. We understand that the customers are the key reason we are in business therefore we treat them accordingly by supplying to them. But customers that come to the factory are given some level of discount. MARKETING PLAN The advent or availability of the internet and social media platform are ready tools for reaching our target market. As a new entrant, we will use radio and television for 6months in the first instance. We will also explore the ideal of opening an outlet where our customers/wholesalers can easily reach us. Printing of hand bills or banners will be used also. Our product will be packaged in plastic containers and sachet with our labels and logo on them which will be quantified and sold in liters. To attract more customers and increase market share we would do promo and give discount for large purchase, customer loyalty will be maintain through quality and integrity. MANAGEMENT All staffs are people of proven track record in their respective discipline or in similar /related fields with a minimum of 3years working experience. FINANCIAL PLAN Cost estimations and projections: Cost of facilities and operations Land acquisition: N12m Facility – building/structure : N9.7m Generator/power plant :N.8m Vehicles: N4.3m Expeller 1.5m Toaster: N.6m Storage tank :N.3m Installation :N.25m FINANCING It is important to state here palm oil processing business requires huge capital to start. This business requires about N40million($100,000) to start up.This will enable us to acquire the remaining equipment that is not on ground yet and as well as the initial stock for production. We are looking for partnership or grants, because we want to provide the products at a highly reduced price to the customers. REVENUE FLOW FOR YEAR 1 ₦ Palm oil N 298,080,000 PKO N 46,800,000 PKC N 3,427,200 Total revenue N 348,307,200 DIRECT COST Cost price 172,800,000 Transportation. 5,760,000 Overhead cost 66,240,000 Operation profit N 103,507,200 Indirect cost 2,471,500 Total profit N101,035,700 REVENUE PROJECTIONS PRODUCTION VOLUME AND VALUE FOR 3YEARS 1 Palm oil Volume for yr1 - 331,200 ltrs
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Dear Magnus, We love your work! Is your product still in the idea stage or do you have a market sample already? /Afrigod
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137 w
It's still in idea stage
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138 w