BUSINESS PLAN FOR_1

BUSINESS PLAN FOR

C O O LER PLANETSOLAR ENERGY (PVT.) LIMITED

LETTER OF TRANSMITTAL

August 04, 2010

To

Respectable teacher

Jesmin Sultana

Department of Business Administration,

The University of Asia Pacific

Respected Madam,

It is our great pleasure to submit a business plan”Cooler Planet Solar Energy (Pvt)

Ltd”. The business plan is the theoretical knowledge employed in a realistic business

model. We hope the plan will supplement our course requirement and our

understanding of the course objective.

We have tried our best under your prodigious supervision to represent the business

plan in a comprehensive manner. Despite our endeavor there is possibility that the

business plan contains inadvertent error; we expect your lenient view towards any

such mistakes. We shall be glad if you kindly accept our effort.

Thanking you,

Group Members

Cooler Planet Solar System2

INDEX

Topic Page no

Introduction 6 - 10

Description of the Firm 10 - 19

Products & Services 19 - 23

Market Analysis 24 - 28

Marketing Strategy for our product 29 - 39

SWOT analysis 40 - 41

Organogram 42

Salary Structure 43 - 45

Work Policy 46 – 47

Product life cycle 47 - 48

Aspiration & Vision 49

Critical Risk Analysis of Cooler Planet 50 - 52

Financial Analysis 53 - 86

Concluding Remarks 87


ACKNOWLEDGEMENT

This dissertation is a mix of practical & theoretical analysis on preparation of

Business plan named “Cooler Planet Solar Energy (Pvt) Ltd”. We are very much

grateful to our respectable teacher Mrs. Jesmin Sultana for her outstanding

suggestions, wide guidance creative and thought provoking instruction for the study

without which it would not come to light. We are also grateful to the officials of

Rahimafrooz Renewable energy who helped us with their positive attitude to provide

necessary information for preparing the business plan. Primary Data has been

collected from Rahimafrooz Renewable Energy while secondary data has been

obtained from newspapers, websites and magazines. We once again show our

heartfelt gratitude to our teacher Mrs. Jesmin Sultana for her wholehearted support

towards preparing the business plan.


EXECUTIVE SUMMARY

Solar energy has been used in Bangladesh for centuries in a variety of economic

activities such as drying of washed clothes, food grains, fish, vegetable, raw jute etc

and evaporation of saline water for salt production. There are various activities in

rural Bangladesh which totally depend on the use of solar energy if these could be

performed more quickly and efficiently by using simple devices, it would increase

productivity without making and demand on commercial energy sources. In

Bangladesh research and development work to harness solar energy in the form of

heat has been going on for many years at Dhaka University, Bangladesh Agriculture

University, BUET, Solar Park of Dhaka College and BCSIR Laboratories. In an aim

to uphold sustainable power, “COOLER PLANET SOLAR ENERGY (PVT.) LTD” is

being established to serve the rural people of the country. The main motive of the

company is to make a load shedding free country. The dissertation here lays a

comprehensive business plan of the company. A detailed strategy formulation and

business forecasting has been appended in this report comprising marketing plan,

sales strategy, Management formation, Company’s aim and vision.


Introduction

Business plans are decision-making tools. There is no fixed content for a business

plan. Rather the content and format of the business plan is determined by the goals

and audience. A business plan represents all aspects of business planning process;

declaring vision and strategy alongside sub-plans to cover marketing, finance,

operations, human resources as well as a legal plan, when required. A business plan

is a bind summary of those disciplinary plans.

For example, a business plan for a non-profit might discuss the fit between the

business plan and the organization’s mission. Banks are quite concerned about

defaults, so a business plan for a bank loan will build a convincing case for the

organization’s ability to repay the loan. Venture capitalists are primarily concerned

about initial investment, feasibility, and exit valuation. A business plan for a project

requiring equity financing will need to explain why current resources, upcoming

growth opportunities, and sustainable competitive advantage will lead to a high exit

valuation.

Preparing a business plan draws on a wide range of knowledge from many different

business disciplines: finance, human resource management, intellectual property

management, supply chain management, operations management, and marketing,

among others. It can be helpful to view the business plan as a collection of sub-

plans, one for each of the main business disciplines.

"A good business plan can help to make a good business credible, understandable,

and attractive to someone who is unfamiliar with the business. Writing a good

business plan can’t guarantee success, but it can go a long way toward reducing the

odds of failure."

Renewable Energy Sector

Renewable energy is energy which comes from natural resources such as sunlight,

wind, rain, tides, and geothermal heat, which are renewable (naturally replenished).

In 2008, about 19% of global final energy consumption came from renewable. Solar

power is the generation of electricity from sunlight. This can be direct as with


http://en.wikipedia.org/wiki/Sunlight

http://en.wikipedia.org/wiki/Electricity

http://en.wikipedia.org/wiki/Renewable_resource

http://en.wikipedia.org/wiki/Geothermal_energy

http://en.wikipedia.org/wiki/Tidal_energy

http://en.wikipedia.org/wiki/Rain

http://en.wikipedia.org/wiki/Wind

http://en.wikipedia.org/wiki/Sunlight

http://en.wikipedia.org/wiki/Natural_resource

http://en.wikipedia.org/wiki/Energy

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Operations_management

http://en.wikipedia.org/wiki/Supply_chain_management

http://en.wikipedia.org/wiki/Intellectual_property_management

http://en.wikipedia.org/wiki/Intellectual_property_management

http://en.wikipedia.org/wiki/Human_resource_management

http://en.wikipedia.org/wiki/Finance

http://en.wikipedia.org/wiki/Sustainable_competitive_advantage

http://en.wikipedia.org/wiki/Equity_financing

http://en.wikipedia.org/wiki/Venture_capitalists

http://en.wikipedia.org/wiki/Bank_loan

http://en.wikipedia.org/wiki/Bank

photovoltaic’s (PV), or indirect as with concentrating solar power (CSP), where the

sun's energy is focused to boil water which is then used to provide power. Solar

power had the potential to provide over 1,000 times total world energy consumption

in 2008,[citation needed] though it provided 0.02% of the total that year. If it

continues to double in use every two to three years, or less, it would become the

dominant energy source this century. The largest solar power plants, like the 354

MW SEGS, are concentrating solar thermal plants, but recently multi-megawatt

photovoltaic plants have been built. Completed in 2008, the 46 MW Moura

photovoltaic power station in Portugal and the 40 MW Waldpolenz Solar Park in

Germany appear to be characteristic of the trend toward larger photovoltaic power

stations. Larger ones are proposed, such as the 100 MW Fort Peck Solar Farm the

550 MW Topaz Solar Farm, and the 600 MW Rancho Cielo Solar Farm.

Worldwide photovoltaic installations increased by 7.3 GW in 2009, up from 6,080

MW installed during the previous year. In 1985, annual solar installation demand was

only 21 MW. Cumulative solar energy production accounts for less than 0.01% of

total Global Primary Energy demand. Solar Energy demand has grown at about 30%

per annum over the past 15 years (hydrocarbon energy demand typically grows

between 0-2% per annum). The US market grew to 485 megawatts in 2009. Japan's

market is now the fourth largest market. Spain has been the largest market in 2008.

The "Feed-in Law" has led to Germany to become the largest market for installations

in the world in 2009. Solar buzz research confirms that the Asia Pacific, European

and United States all are projected to have strong growth over the next five years. In

megawatt terms, cell production in China and Taiwan reached 3,304 MW in 2008,

with Europe at 1,729 MW ahead of Japanese production at 1,172 MW in 2008. Solar

Energy (photovoltaic) prices have declined on average 4% per annum over the past

15 years. Progressive increase in conversion efficiencies and manufacturing

economies of scale are the underlying drivers. The Solarbuzz global price survey on

this site shows that prices have consistently declined for over the last two years. A

residential solar energy system typically costs about $8-10 per Watt. Where

government incentive programs exist, together with lower prices secured through

volume purchases, installed costs as low as $3-4 watt - or some 10-12 cents per

kilowatt hour can be achieved. Without incentive programs, solar energy costs (in an

average sunny climate) range between 22-40 cents/kWh for very large PV systems.


http://www.solarbuzz.com/Solarprices.htm

http://www.solarbuzz.com/USGridConnect.htm

http://www.solarbuzz.com/EU09.htm

http://www.solarbuzz.com/AP09.htm

http://www.solarbuzz.com/Marketbuzz2010-intro.htm

http://www.solarbuzz.com/USGridConnect.htm

http://www.solarbuzz.com/Marketbuzz2010-intro.htm

http://en.wikipedia.org/wiki/Topaz_Solar_Farm

http://en.wikipedia.org/w/index.php?title=Talk:Fort_Peck_Solar_Farm&action=edit&redlink=1

http://en.wikipedia.org/wiki/List_of_photovoltaic_power_stations

http://en.wikipedia.org/wiki/List_of_photovoltaic_power_stations

http://en.wikipedia.org/wiki/Waldpolenz_Solar_Park

http://en.wikipedia.org/wiki/Moura_photovoltaic_power_station

http://en.wikipedia.org/wiki/Moura_photovoltaic_power_station

http://en.wikipedia.org/wiki/SEGS

http://en.wikipedia.org/wiki/Wikipedia:Citation_needed

http://en.wikipedia.org/wiki/Concentrating_solar_power

The earth receives more energy from the sun in just one hour than the world uses in

a whole year. Two billion people in the world have no access to electricity. For most

of them, solar photovoltaic’s would be their cheapest electricity source, but they

cannot afford it. Crystalline Silicon cell technology forms about 90% of solar cell

demand. The balance comes from thin film technologies. Approximately 45% of the

cost of a silicon cell solar module is driven by the cost of the silicon wafer, a further

35% is driven by the materials required to assemble the solar module.

Electricity sector in Bangladesh

Bangladesh's energy infrastructure is quite small, insufficient and poorly managed.

The per capita energy consumption in Bangladesh is one of the lowest (136 KWH) in

the world. Noncommercial energy sources, such as wood, animal wastes, and crop

residues, are estimated to account for over half of the country's energy consumption.

Bangladesh has small reserves of oil and coal, but very large natural gas resources.

Commercial energy consumption is mostly natural gas (around 66%), followed by oil,

hydropower and coal.

Electricity is the major source of power for country's most of the economic activities.

Bangladesh's installed electric generation capacity was 4.7 GW in 2009; only three-

fourth of which is considered to be ‘available’. Only 40% of the population has

access to electricity with a per capita availability of 136 kWh per annum. Problems in

the Bangladesh's electric power sector include corruption in administration, high

system losses, and delays in completion of new plants, low plant efficiencies, erratic

power supply, electricity theft, blackouts, and shortages of funds for power plant

maintenance. Overall, the country's generation plants have been unable to meet

system demand over the past decade.

In generating and distributing electricity, the failure to adequately manage the load

leads to extensive load shedding which results in severe disruption in the industrial

production and other economic activities. A recent survey reveals that power

outages result in a loss of industrial output worth $1 billion a year which reduces the

GDP growth by about half a percentage point in Bangladesh. A major hurdle in


efficiently delivering power is caused by the inefficient distribution system. It is

estimated that the total transmission and distribution losses in Bangladesh amount to

one-third of the total generation, the value of which is equal to US $247 million per

year.

Renewable Energy Sector in Bangladesh

Bangladesh has 15 MW solar energy capacities through rural households and 1.9

MW wind power in Kutubdia and Feni. Bangladesh has planned to produce 5% of

total power generation by 2015 & 10% by 2020 from renewable energy sources like

air, waste & solar energy. That means Bangladesh will be produce 500 MW

electricity from solar energy sector in next 10 years.

“Bringing modern energy services to the 1.6 billion people who lack access to

electricity and the 2.4 billion who rely on traditional biomass for cooking and heating

is a major challenge. As of 2008 the richest 20% of the world’s population consume

58% of total energy, whereas the poorest 20% consume less than 4%. The majority

of those underserved are the poor in Sub-Saharan Africa and South Asia.” (The

Word Bank 2008, p. 4).

Electrification levels in South Asia vary between 15% and 62% of the population; for

South East Asia levels vary from 5% to 100 %, levels in the different countries in the

sub-region vary widely, from maximum of 100% in Singapore to the minimum of 5%

in Myanmar. Electrification level in Bangladesh was 41% in 2008.

Since the electricity supply is mainly limited to the urban areas. Bangladesh has

made very little progress in its rural electrification efforts. Back in 2005-06, only

25.5% of total population in Bangladesh had access to electricity. That proportion

had moved up to only 41.2% of total population having access to electricity (80.4% in

urban areas and 18.7% in rural areas) for the year 2008.

Providing electricity to the remaining 58.8% population is not so easy task. The need

of alternative and renewable energy sources of Bangladesh cannot be

overemphasized. According to “Bangladesh Energy Resources and Renewable


http://en.wikipedia.org/wiki/Feni

Energy Prospects” the fuel import bill is over 70% of total export earnings of

Bangladesh of the total energy supply.

“Out of about 25 million households of the country, only around 4.2 million had been

brought under the network of conventional electricity till to-date. Since the rural

network is characterized by a comparatively lower consumer density, it often

becomes difficult and uneconomic to extend lines to certain remote locations within

the command area of a member owned Palli Bidyut Samity (PBS) under Rural

Electrification Board. Moreover some remote areas are not likely to be covered by

the grid network due to inaccessibility and low consumer density. Renewable Energy

Technologies are considered as viable technical options for such remote areas,

especially for ensuring equitable development of all areas and different cross-

sections of socio-economic groups”.

Description of the Firm

Cooler Planet Solar energy is one of the leading and largest integrated alternative

energy supply companies in Bangladesh. Our goal and vision is to bring affordable

energy solutions to the consumers.

At a time when the world is clamoring for affordable ‘Green' energy, and made

significant stride in it's development by harnessing energy from Solar, Wind, Tidal

etc., cooler planet will contribute by helping to bring these innovations to the public at

large.

COOLER PLANET SOLAR ENERGY developed a highly integrated structure that

will help to fill up the tremendous shortage of energy in Bangladesh. In this regard,

we will, with our high level of technical skills, provide solutions that can be as small

and simple as a small solar table lamp to the mega projects of providing megawatts

of energy.

COOLER PLANET SOLAR ENERGY (PVT.) LTD is a private limited company. The

main motive of the company is to make a load shedding free country. And our brand

message is solar energy- brings sun in your life. We are different from other because


we provide you full credit facility with zero deposit and we have different packages as

your need. We don’t say you to cut your greed line, use solar panel beside your

greed line. And save the valuable resources of our country as much as you can, at

the same time save your own money also. We setup our industry at chandina,

comilla, which covering a area of 5 bigha . And our projected cost is 14 crore 71 lakh

tk, with a annual production capacity of 24,000 units annually.

Partnership agreement:

1. Name and address of the firm:

Cooler planet solar energy (pvt) Ltd.

43,Kazi Nazrul Islam Avenue,

Kawran Bazar, Dhaka

2. Name and address of the partners:

Shibly Qureshi Tamim

285/3, West Dhanmondi,

Dhaka-1209

Mashud Alam Rocky

27/A/7 Dhakeshawri Road,

Lalbag, Dhaka-1200.


Ahmed Ali Shojib

133, Bongshal Road,

Dhaka-1100

Iffat Ara Sharmin

70/1 Dhanmondi,

Dhaka-1209

Umma Kulsum Lima

53, Najimuddin Road,

Dhaka-1108

Mohmmed Ali

9, Bhagalpur Lane,

Hazaribag, Dhaka-1205

Md. Mejbah Uddin Sujon

59/1/B Matikata Bazar, Cant.,

Dhaka-1206


3. Types of business:

Cooler planet is private limited organization. Our main motive is to make a

digital Bangladesh, with a motive to ensure electricity for all and be energy

efficient country.

4. Amount of investment:

Each partner contributes 2cr. 2lakh. We are 7 partners that’s why our total

investment is 14cr. 71lakh.

5. Sha re of profit losses:

As all partners contribute equal amount of money, profit & losses will be shared

equally and get 10% of net profit.

6. How much each partner draws out:

Each partner can draw 2lakh at a time. If a partner wants to with withdrawals.

This interest will be accumulated to our bank deposit.

7. A limit on the action each partner can take without consent of other:

If one partner takes any action without consent of other, it may break the

partnership. So, to take any action each partner has to get the consent of other

partners. A partner can’t do anything without the consent of other.

8. A method for resolving disputes:

If a partner faces disputes to other partners. All the partners of the business

discuss about the matter. By discussing, we resolve. The disputes among

ourselves.


9. A process for dissolving partnership:

By agreement: Our firm may be dissolved any time with the consent of all the

partners of the firm. Partnership is created by the contract; it can also be

terminated by contract.

Compulsory dissolution: Our firm is dissolved by the happening of any event

which makes the business of the firm unlawful.

On the happening of certain contingencies: Our firm is dissolved by the death of

partner.

By notice: Our firm may be dissolved by any partner giving notice in writing to

all other partners of our intention to dissolve the firm.

Publish advertisement n newspaper, leaflet and billboard.

Dissolution by the Court: At the suit of partner, the court may dissolve a firm if

one of the partners becomes unsound mind or permanent incapacity due to

illness.

10.A process for expelling partners: If any partner takes bribe from a person or an

organization, he will be expelled from the partnership or if a partner gives any

secret information to the competitors or other, he will be expelled.

11.Duties and responsibilities of partner & managing Director:

Their duties & responsibilities are as follows

Duties & Responsibilities of the Managing Director:

i. Setting the culture of the company

ii. Developing strategy and direction for the company in line with Board of Directors

perspective.

iii. Leading the executive/senior management of the company (including firing and

hiring) as the Chief Executive Officer.

iv. Managing Financial and Physical resources.

v. Overall planning & controlling functions of the company.


vi. Guiding the company towards the vision of the company.

vii. Taking decisions towards achieving goals of the company as set by the Board of

Directors.

viii. Setting objectives of each of the departments and delegating responsibilities

towards achieving organizational goals.

ix. Reporting the Board of directors regarding the company’s performance time to

time and assuming changes of strategies and course of action in line with

Board’s view.

Duties & Responsibilities of the Head of Customer Service:

i. Responsible for the customer-service strategy of the company.

ii. Sets the agenda for how the company interacts with customers

iii. Guides the philosophy that the company employs to serve its customers.

iv. Incorporates the customers' needs with ongoing process-improvement projects

and shows how the improvements provide direct benefits to customers.

v. Developing system by which customers can provide feedback to the company.

vi. Responsible for managing the company's customer service centers throughout

a region and implements reward/recognition programs for the employees that

provide excellent customer service.

vii. Establishes measures to show how well or how poorly the company is

performing against the goals.

viii. Recruiting right people for the Customer service department.

Duties & Responsibilities of the Head of Marketing:

i. Design, implement, and facilitate annual marketing plan for the firm.

ii. Support and facilitate development and implementation of section

business/marketing plans.

iii. Translating business unit objectives and strategies to develop brand

portfolio objectives, strategies and plans to facilitate business unit growth.


iv. Developing marketing strategy, based on knowledge of establishment policy,

nature of market, copyright and royalty requirements, and cost and markup

factors.

v. Plan and administer the company’s Marketing Operations budget;

vi. Negotiates with media agents to secure agreements for translation of materials

into other media.

vii. Edits materials according to specific market or customer requirements.

viii. Develop promotional materials including marketing collateral and print copies

ix. Oversee business development activities

x. Offer coaching for prospective client meetings, presentations, etc.

xi. Work with regional offices on designing and implementing prospecting and

client contact systems.

xii. Oversee corporate communications activities

.

Duties & Responsibilities of the Head of Sales:

i. Responsible for achieving zonal as well as total sales target of the company.

ii. Developing strategy, tactics, sales plans and profit targets.

iii. Delivering sales by developing relationships with retail partners.

iv. Identifying and reporting on business opportunities in target markets

v. Acting as an ambassador and role model for the business

vi. Taking responsibility for profit and loss

vii. Increasing market share in existing markets and maximize new business

development opportunities.

viii. Achieving targets for revenue, profitability and sales growth.

ix. Provide direction towards achieving revenue target of the company.

Duties & Responsibilities of the Head of Production:

i. Coordinating people, resources, equipment and supplies to ensure that the

production process meets an organization's manufacturing goals.

ii. Overseeing the production process, drawing up production schedule.

iii. Ensure planned KPI’s of efficiency and performance are met or exceeded.


iv. Ensuring that the production is cost effective

v. Ensure implementation and evolution of safety procedure.

vi. Monitoring the production processes and adjusting schedules as needed.

vii. Monitoring product standards and implementing quality-control programs.

viii. Implement and drive continuous improvement activities through implementation

of change management process and best practices.

ix. Liaising among different departments, e.g. Suppliers, managers.

x. Optimize resource utilization by implementation of an effective production

organization.

xi. Working with managers to implement the company's policies and goals.

xii. Ensuring that health and safety guidelines are followed.

xiii. Ensure coaching and development of resources to meet business’s objectives.

xiv. Reviewing the performance of subordinates.

xv. Coordinate, set up and implement standard operating procedure (SOP) for all

production operations.

Duties & Responsibilities of the Head of Finance:

i. Ensure that an appropriate financial policy framework is in place to guide

company’s financial decision-making and development particularly in relation to

reserves, expense and granting ratios and income streams.

ii. Ensure the appropriateness of the key assumptions included in company’s

strategic plans and annual budget proposals. Provide advice to senior

management colleagues on these matters

iii. Work closely with the Leadership Team as part of a mutually supportive senior

management team, advising them on the likely financial consequences of all

proposed courses of action.

iv. Maintain contact and liaise with bankers, pension advisors and auditors to

ensure the long term financial security and stability of the company.

v. Provide a high level of professionalism reflected in a sound budgetary policy

resulting in maximum granting to the field.

vi. Maintain records to meet external legal and tax requirements.


vii. Ensure financial and other reporting systems are maintained to the standards

required by the company.. external auditors and regulatory bodies

viii. Prepare annual budget and forecasts aligned to strategic plans and in

accordance with guidelines provided by the MD and Board of Directors.

ix. Provide full accounting services to other Directors and managers including

departmental financial analysis and exploring any potential problems with them

in order to make appropriate budgetary decisions.

x. Produce rolling cash flow forecasts, monitor cash position daily and ensure

creditors’ terms are met.

xi. Evaluate the tax liability impact of contemplated courses of action, minimize the

tax burden and deal with tax authorities.

xii. Undertake such other financial analysis and reporting as requested by the MD

& CEO.

xiii. Manage and maintain the payroll system.

Duties & Responsibilities of the Head of HR:

i. Developing and implementing Human Resources strategies for identifying,

developing, engaging, deploying and retaining talented employees.

ii. Succession planning and performance management

iii. Managing Pay and reward.

iv. Managing organizational development and change.

v. Developing and communicating management advice and guidance to

ensure successful implementation of these strategies

vi. Maintaining and where appropriate drafting new HR policies and procedures

that support the business also ensuring that the company complies with

statutory requirements.

vii. Establishing and maintaining recruitment centre of excellence. Managing all

aspects of the recruitment process from manpower planning to

interviewing and induction; monitoring diversity and act on results.

viii. Leading on all relevant employee consultation including Union engagement in

conjunction with other executives and managers.


ix. Supporting Managers and Directors in setting learning and development

budgets; monitoring expenditure with timely interventions on budgets where

appropriate.

x. Providing regular reports to the Board and Management Team on performance

and measures for performance improvement.

xi. Ensuring effective management and administration of all employee records and

payroll data including budgets to Data Protection standards.

xii. Ensuring compliance with the Association’s policies and procedures on health

and safety, equality and diversity.

xiii. Leading the HR Team in delivering a high performance customer focused

service to achieve the Organization’s objectives.

xiv. Motivating, managing performance and developing each team member to reach

their full potential.

Regulations which affect our Business:

As mentioned previously each category of business will have differing regulation.

The regulations which will affect our venture in our district are:

Business registration

Licensing requirements

Sales tax

Income tax

Labor legislation

Checklist of legal requirements

Goods public relation

The protection of customers is also ensured mainly by legislation from the central

and ministries of consumer and commerce affairs. The laws cover employees and

consumers headline of credit.


Current Financial Position:

100% equity finance. And the figure is 14 crore, 71 lakh taka. All partners contribute

equally.

Product & services:

We offer different range & different types of product. Our SOLAR PRODUCTS FOR

RURAL LIFE DEVELOPMENT are showed below.

COOLER PLANET SOLAR HOME PACKAGES

SL NO: 1

System Description:

Model: SHLS –1

1x25 Wp PV Module.

1x12V, 47AH @ 100HR Positive Deep cycle Solar Battery

1x10A, 12V Charge Controller

2x7W FTL Lamps

Mounting Structure

Accessories.

Operating Load:

2x7W CFL Lamps & 1xMobile phone charger/Cassette player

Operating hours: 3 Hrs/Day

Price: Tk. 14,000.00 (Taka)


SL NO: 2

System Description:

Model: SHLS –2

1x30 Wp PV Module.

1x12V, 71AH @ 100HR Positive Deep cycle Solar Battery


2x7W FTL Lamps

Mounting Structure

Accessories

Operating Load:

2x7W FTL Lamps and 1x DC 12" B&W TV


Price: Tk. 18,000 (Taka)

SL NO: 3

System Description:

Model: SHLS –3

1x40 Wp PV Module.

1x12V,100AH@100HR Positive Deep cycle Solar Battery,


3x7W FTL Lamps

Mounting Structure

Accessories.

Operating Load:

3x7W, FTL Lamps/2x7W FTL Lamps &1x14”/17” B&W TV/1x7W FTL Lamps, 1x15W DC Fan



SL NO: 4


System Description:

Model: SHLS –4

1x50 Wp PV Module.

1x12V, 100AH@100HR Positive Tubular

Plate Solar Battery

1x10A,12V Charge Controller

4x7W FTL Lamps

Mounting Structure

Accessories.

Operating Load:

4x7W Lamps & 1x14”/17” B&W TV or 2x7W FTL Lamps & 1x15W,DC Fan



SL NO: 5

System Description:

Model: SHLS –5

1x75 Wp PV Module.

1x12V,130AH @10HR Positive Tubular Plate Solar Battery


5x7W FTL Lamp

Mounting Structure

Accessories.

Operating Load:

5x7W Light (FTL) & 1x15 W, DC Fan




SL NO: 6

System Description: Model: SHLS –6

1x75 Wp PV Module.

1x12V,130AH@10HR Positive Tubular Plate Solar Battery

1x10A,12V Charge Controller

6x7W FTL Lamps

Mounting Structure

Accessories.

Operating Load:

6x7W, FTL Light Or 4x7W FTL Lamp & 1x14”/17” B&W TV



We also sell:

SOLAR GARDEN LIGHT:

During the day, this light re-charges its internal battery, so that after nightfall that

energy can be put to use to light up your garden, porch, or pathway. Light sensing

technology will automatically turn these lights on when it gets dark and then off when

it gets light out again. Under strong sunlight, it needs to charge for 6-8 hours so that

it can operate for another 6-8 hours at night time. It has amorphous panel on top of

the light with 2 pcs. Ni-Cad high capacity rechargeable battery storage.

SOLAR FAN_DQ-928

This is solar powered fan. Including 1 piece of 5 watt poly-crystalline solar panel, 1

piece of lantern, and alarm clock attached with built-in 6V/4.5Ah rechargeable

battery and LED light source. The solar panel transforms sun light into DC electricity,


and recharges the battery. The battery can also be charged using the normal AC

power. This makes it a very convenient product both at home or for a small retailer.

We will add some other product after five year in our list. They are solar mobile

charger, solar hijack light, solar security system, solar ac, solar mosquito killer, solar

torch, solar fm radio, etc.

SOLAR FAN_DQ-1298A

This is solar powered fan. This makes it a very convenient product both at home or

for a small retailer. This system can be charged both by solar and AC power.

Operating hours is 4 if it is fully charged.

Market Analysis:

We want to achieve 40% market share.


Market Area:

We will start our operation all over the Bangladesh. For this purpose we will divide

the whole Bangladesh into six division.

CUSTOMER ANLYSIS:

COOLER PLANET Solar energy (pvt.) ltd .is set to assemble solar panels to grab the

domestic market for solar home systems that are on an upward curve on the back of

the government policy support to help off-grid people get electricity.


Transforming the lives of people and lighting up different corners of the country,

COOLER PLANET Solar energy (pvt.) ltd. will provide Solar Energy solutions for

households, agriculture, healthcare, education, telecommunication, rural streets and

marketplaces, as well as government and private institutions.

Since 2003 the use of solar home systems has been increasing fast in the off-grid

areas of rural Bangladesh backed by over a dozen of NGOs that enjoy refinance

facility from state-run Infrastructure Development Company Ltd (IDCOL), which

promotes renewable energy development.

Now the number of solar home systems (SHSs) stands at around 325,000, up over

40 percent from 230,000 a year ago.

The SHS market is increased because of the government of Bangladesh aim to

provide green energy solutions to majority of the country’s around 15 crore people

who have a little or no access to electricity through national grid.

The company, which will be a market share of about 40 percent in SHS, said the

plant will assemble panels having a total yearly capacity of 5 megawatts.

COMPETITORS ANALYSIS:

Every business has to face challenges from its competitor. There are 3 major

competitor in Bangladesh for our product. They are

1. Rahimafrooz Renewable Energy Ltd. (RRE)

2. Solarpac Limited.

3. Greencon Energy Conversion Ltd.


Rahimafrooz Renewable Energy Ltd. (RRE)

Rahimafrooz Renewable Energy Ltd is set to assemble solar panels to grab the

domestic market for solar home systems that are on an upward curve on the back of

the government policy support to help off-grid people get electricity.

They have taken initiatives to establish a solar panel assembling plant with an investment of

Tk. 34 crore by June 2010, as the market for solar systems is widening fast. A concern of Tk.

1,500-crore-Rahimafrooz Group, the company has been engaged in distributing solar systems

for the last few years. They have a huge popularity in the market, and they have a large no. of

experienced work force for the sector. They are our main competitor in this sector. Their

product is also similar to us. But they charge a little higher rate than to us. And they did not

have full credit facility. There contract address is:

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Address:1A Gulshan Avenue, Dhaka 1212. Bangladesh

Website: www.rahimafrooz.com

E-mail: raco rahimafrooz.com


mailto:[email protected]

http://ad.enf.cn/ad/clicks.php?lang=en&cid=2794&cata=installer&sort=profile&url=http%3A%2F%2Fwww.rahimafrooz.com

mailto:[email protected]

Solarpac Limited

Solarpac is another major competitor of our product, they have a huge variety of

product. They did not involve in production. They direct import the product from

different places. So, their price range is also very high. Their distribution channel is

not so strong. SOLARPAC is one of the business houses specialized in importing

various kinds of solar based consumer products like solar fan, solar rechargeable

light, solar mobile charger, solar garden light, emergency solar system, solar panel,

and other solar products. To sell products of quality, to keep good credit standing, to

provide high grade service are the important objectives. By keeping these objectives

in mind, SOLARPAC has started its operation by importing solar based consumer

products and distributes to the wholesale and retail trade. We also sell the products

directly to end-consumers since we are relatively in a new business. SOLARPAC has

done extensive research on both the consumer demands for energy, and supplier side of solutions

for those needs. Among others, They will provide the following Products and Services:

Consultancy in Energy Sector Solar Power systems 10 watts ~ Megawatts

Solar Lanterns Solar Home Systems: 5 watts to Kilowatts

Solar Table and Ceiling Fans Solar Mobile Chargers

Solar Generators Inverters & Charge Controllers

Solar Irrigation (pump) Systems Solar Water Heater

Solar Street Light Solar Traffic Light

Their contract address is:


SOLARPAC

277, Shahid Janani Jahanara Imam Sarani (Elephant Road), Dhaka 1205.

Bangladesh

Office : +88 02 9676234 Fax : +88 02 8612150 Mobile: +880 1715662546 and +880

1819247456, Mobile : (US) 0121-562-5440559

Greencon Energy Conversion Ltd.

The name of another competitor in the sector is Greencon Energy Conversion Ltd.

They have a few nuber of product. There product are Data acquisition and Industrial

Automation System, Power supply system, Inverter, Battery, Battery Charger, Solar

charge controller, IPS, Digital Taxi Fare Meter (BRTA approved) etc. the company

started their business on 4th july,2010. They charge almost double price than to us.

They engaged with all types of renewable energy product. So they could not

concentrate on the market of solar product. There address is

House : 21/E, Road-1, Nikunja-2,

Dhaka-1229

Phone : +880 2 8923477, +880 1746 257157,

+880 1918 626 826, +880 1552453423

Marketing Strategy for our product:


MARKETING STRATEGY

The business will provide quality and superior service at a fair price to the customers

on time. Promotional measures therefore will be quality recreational activities

availability at the right place and time.

The most important marketing strategies will be:

a) Product strategy:

In response to the customers’ needs the business shall strive to lead with

innovations both in product design and services which are unequalled in this specific

market and industry.

b) Pricing strategy

The business will have a mark-up policy of 20%-30% which will be affordable by the

target market. The market place dictates our pricing and the approval of loans for

customers is a proof that our pricing structure is acceptable in the market. It means a

fair price lead by demand and supply.

c) Promotion strategy

The business will be engaged in direct marketing. The products will be market by

means of word of mouth and house visits. The owner plans to mount a

demonstration model on his four wheel drive vehicle for promotion purposes.

d) Distribution strategy

Products (panels) will be distributed by technicians to the site.


Category of the Product:

Product type: Renewable Energy Product

Name … Cooler Planet Solar Energy (Pvt.) Ltd.

Logo …

Slogan …


Market Information:

Target Group : Rural people with good monthly Income, those

who have electricity connection are also our

potential customer.

Buyer Consideration : Price, Service, Quality

Industry Information:

Competitors : Greencon, Solarpac,Rahim afrooz and other

Goal : We want to achieve 40% market share.

Strategy : Competitive price, packaging, credit facility

after sales service

Segmentation & Target Customer


Major segments are basically are those people who is totally detached from

electricity and those areas where the demands is higher then the others areas. The

strategy of segmentation allows us to avoid head on competition in the market place

by differentiating. Market segmentation is the first step in a marketing strategy. After

segmenting the market into homogenous cluster, we must select one or more

segment to target. To accomplish this, we must decide on a specific marketing mix.

Our target markets are as follow:

1) Geographic Segmentation: We have selected rural area. All of we know that

this type of people are huge number. If we able to reach this target group,

then we will be able to make more profit.

2) Demographic Segmentation: We have selected 25-50 years of age people.

This group is those person who earn at a sufficient level

3) Psychographic Segmentation: We have selected economy minded people.

Bangladesh is developing country and maximum numbers of people are

middle class. So market size is big.

Location:

Location analysis is an important decision for any business. We have to consider

cost for analyzing location. For finding location, we have considered a suitable

location where customers are available for our business. The following things are

given preference.

We setup our industry at Chandina (near Meghna River), Comilla.

Cost Effectiveness:


The cost of land and production should be low. We enjoy low cost labor facility here.

The cost of land in chandina is comparatively low.

Transportation:

The communication system is another issue. Product can easily transported from the

industry to customer place.

Pricing:

For the new company at the introductory stage is especially challenging. We

introduce a new company no one dose not aware our company, so face the

challenges of setting price for the time.

For our company’s product we set the market penetration price mean we set a low

initial price in order to penetrate the market quickly and deeply to attract a large

number of buyers and win a number of share in market. We set low initial price for

three reasons.

Price is very sensitive issue to our customer. Slightly changed price can create a

large impact on our business. For setting price we have considered the following

issue

We have conducted a survey and have found the price which is the most

desirable to our customer .Then we have selected that price.

We have collected the information of our competitor’s price and our price is

lower than the competitor’s.

Our selected price covers our cost.

Price of our Product:

1. Solar Home System……………………… (14,000- 50,000) tk.

2. Garden Light…………………………………..15,000 tk.

3. Fan_DQ-928……………………………………3,000tk.

4. Fan_DQ-1298………………………………..4,000tk.

Note:


Systems with other load requirements can be provided on request.

Above-mentioned solar modules are of Single Crystalline high quality BP

modules,

an ISO 9001 certified product.

Batteries are Solar Deep Cycle Tubular plate batteries manufactured by

cooler planet Batteries Limited, Bangladesh, an ISO 9002 certified company.

These batteries are having 8 to 10 years service life. Mentioned batteries

have already been field tested in Bangladesh for solar applications for 5 years

without incurring any design or workmanship defects.

Charge controllers are made locally with high quality electronics and designed

to control the charge level of battery efficiently. These charge controllers have

been tested in Bangladesh for Solar applications for more than 5 years. These

charge controllers have been successfully certified from BUET.

The systems consist of high quality fluorescent lights made locally and design

has been proved to work with utmost efficiency. These fluorescent lights have

been successfully certified from BUET.

Cables are of high quality flexible twin core an ISO 9000 certified product.

Systems include galvanized mounting structure for solar panel specially made

to withstand against wind speed of 200 km/h.

Other installation accessories are as per requirement.

Cooler Planet Solar Modules:


Capacity range and Quality

Exhaustive range – 1 watt to 80 watts

Manufactured to international specifications

Features:

High performance

Maximum reliability and minimum maintenance

Resistant to water, abrasion and hail impact

Light weight anodized aluminium frame with silicon edge sealant around the laminate

Components:

Series connected Monocrystalline Silicon Solar Cells

Toughened High Transmission Glass

Ethyl Vinyl Acetate (EVA) Encapsultant

Anodized Aluminium Frame

Silicone Frame Seal

Polyester/Tedlar trilaminate back surface

Junction Box:

Hinged weather-proof lid

Captive screws

Three cable gland entry points

One cable gland (Standard)

Applications:

Solar lanterns, Domestic lighting, Street lighting

Domestic power, Water pumping, Medical refrigeration

Rural electrification, Telecommunications, Telemetry

Navigational aids, Offshore platforms, Railway Signaling

Cathodic protection, Obstruction lighting

Grid connect power plants


Terms and Condition

1. Price:

The above prices are net. This price includes VAT.

Transportation charges during the installation would be born by the customer.

2. Delivery from:

From our Regional office.

3. Validity:

The price offered is valid for 60 Days.

4. Mode of Payment:

50 % payment along with the work order and 50% after installation of the systems.

This will vary for the customer who will buy on credit.

5. Installation:

Installation done by the technician of Cooler planet Solar Energy (pvt.) ltd.

6. Warranty, servicing & packaging:

The system is guaranteed for one year against any manufacturing defects except

tube light. The warranties of the components are given below:


Name of the components Warranty Expected Life

Solar Module 20 years 25-30 Years

Battery 5 years 8-10 Years

Charge Controller 2 years 4-5 years

DC Fluorescent Lamp circuit 2 years 4-5 years

Panel Structure 2 years 8 years

If there is any operating problem during warranty period, our technician goes to the

place for solving problem. If the product is unstable we will replace it with new ones.

Generally we packaging the product according to the customer needs.

Place Strategy:

Although our main goal is to electrified the rural area of Bangladesh. And our target

customer is scattered all over the Bangladesh. So we are starting a wide range of

business, setup a divisional branch in every division, to control and supply that

division requirement, with direct supervision of our managing director. We planned to

setup our industry at Savar. And our main head office will setup in Kawran Bazar.

Promotional Strategy

This is the most important part of marketing a product. The customer knows a

product by Promotion. So if Promotions have a lacking the product will not get the

market. There is various ways of doing Promotion. As my product is new and

novelty, I will go for certain communication, and those are as follows:

Publicity/ Public Relation

Print media (news paper)

Radio


Billboard & poster

Event management

Spoke person

Our target is to promote our product by achieving each step. First of all we are trying

to get the awareness in the customer mind. Then we provide the usefulness and the

advantage of this product. We associated this product with the people through

different event and sponsorship. I think it will make different my product with others.

Sales Promotion Activities

Sales promotion objectives vary widely. Sellers may use consumer promotions to

increases short-term sale or to help build long term market share. Sales promotions

will use together with advertising or personal selling. Consumer promotions must

usually be advertised a can add excitement and pulling power to ads sales force

promotions support the company’s personal selling process. In the below mention

the ingredient of sales promotion for coming year.

o Samples

A small amount of a product will offer to consumers for trial when launch the product

rather they used advertising specialty tool.

o Price pack


Conviction

Preference

Liking

Purchase

Knowledge

Awareness

Reduce the price that will mark by the producer directly on the label or package.

o Different Price in Different Seasons

Cooler planet will change its product prices according to the season. Summer will

supposed to be a good season for our product in Bangladesh. So in winter we will

reduce its prices to maintain our sales and profit.

o Functional discount and Allowance

We will give allowance only those field workers who participate in advertising and

other sales support program.

Stage in Product Life Cycle

The Market of Solar energy system is not well established in Bangladesh, But we

have chance to create a huge market. The demand of electricity will increase day by

day, and other available resources are decreasing at a good rate. So we have a

great opportunity to increase our market, in future. And we expected that we will run

at least 70 years. Although we are in introduction stage in life cycle, we hope we will

continue for growth stage, within the end of this year.

SWOT Analysis


Strength

Well established customer base (potential for business to expand).

The team has sufficient experience and skills to operate business.

Owner is knowledgeable in business management

Good customer relations.

Systems are modular, proven technology with low operation and

maintenance.

Strong Distribution Network.

Huge Capital budget for financial support and full equity finance.

Weakness

Major customer segment is unware about the product.

Financial capability of major customer group is very low.

Information gaps exist. Updated information on technology and credit facilities

(Revolving Fund) is not readily available to all potential clients.

Regular needs assessments are not done.

Delays in process application process streamline cash flow.

Systems have high capital & transaction cost

Photovoltaic modules produce direct current (DC) electricity only: an inverter

must be added to the system to run alternating current (AC) devices.

Opportunity


Increasing demand for the services.

Few numbers of Competitors.

Market is expandable, demand of the product increasing day by day.

Qualified consultants (e.g. Cradle Investments & Technology ltd) are available

and have expressed interest in monitoring and evaluation of business.

Credit facilities (Revolving Fund) in conjunction with UNDP & Min. of

Mines & Energy (Rural people to obtain Solar Home Systems).

Sunlight is available in predictable & sufficient quantities.

The sound political, commercial & social setting of our country has and

instilled a confidence in suppliers, investors, lenders and insurers.

Other Solar Technicians in the area of operation share their clients with our

Business. This happens only when such a client is more in our reach distance

wise.

Threat

Someone who is financially strong may enter the industry.

Off-Peak Seasons (Rain) reduce cash flow.

Batteries can contain hazardous material and a means for careful recycling or

disposal should be included in the long-term plan & funding scenario.

Products are almost same.


ORGANOGRAM : Total No. of Employee = 88 persons.


SALARY STRUCTURE

Customer Service Department

No. Position Name Monthly salary No. of

Employee

Total

1. Manager 10,000/- 2 20,000/-

2. Peon 3,000/- 1 3,000/-

Total 3 23,000/-

Marketing Department


Employee

Total

1. Marketing

Manager

10,000/- 6 60,000/-

2. Zonal Manager 6,000/- 12 72,000/-

3. Peon 3,000/- 1 3,000/-

Total 19 1,35,000/-

Sales Department


Employee

Total

1. Sales Manager 10,000/- 3 30,000/-

2. Sales Executive 5,000/- 6 30,000/-

3. Peon 3,000/- 1 3,000/-

Total 10 63,000/-


Finance Department


Employee

Total

1. Finance

Manager

10,000/- 1 10,000/-

2. Senior

Accountant

6,000/- 1 6,000/-

3. Accountant 5,000/- 2 10,000/-

4. Cashier 4,000/- 2 8,000/-

5. Peon 3,000/- 1 3,000/-

Total 7 37,000/-

HR Department


Employee

Total

1. Computer

Operator

4,000/- 1 4,000/-

2. Peon 3,000/- 1 3,000/-

Total 2 7,000/-

Production Department

No. Position Name Monthly

salary

No. of

Employee

Total

1. Electric Engineer 15,000/- 2 30,000/-

2. Production Manager 10,000/- 2 20,000/-

3. Asst. Manager 7,000/- 2 14,000/-

4. Technician 5,000/- 4 20,000/-

5. Mechanical

Engineer(diploma)

5,000/- 4 20,000/-


6. Supervisor 4,500/- 4 18,000/-

7. Security Guard 3,000/- 6 18,000/-

8. Store in charge 3,000/- 2 6,000/-

9. Driver 3,000/- 4 12,000/-

10. Driver’s Assistant 2,000/- 4 8,000/-

11. Labor 3,000/- 12 36,000/-

12. Peon 3,000/- 1 3,000/-

Total 45 2,05,000/-

Yearly Cost for Salary, Bonus & pension Fund

Particulars Name of the Dept.

Yearly Producti

on

Finan

ce

Sales HR Marketi

ng

Custom

er

Service

Total

Salary

(monthly

Salary*12)

24,60,00

0

4,44,0

00

7,56,00

0

84,000 16,20,0

00

2,76,00

0

56,40,0

00

Bonus

(monthly

salary*2*50

%)

2,05,000 37,000 63,000 7,000 1,35,00

0

23,000 4,70,00

0

Pension

Fund

(monthly

salary*12*5

0%)

12,30,00

0

2,22,0

00

3,78,00

0

42,000 8,10,00

0

1,38,00

0

28,20,0

00

Total Cost 38,95,00

0

7,03,0

00

11,97,0

00

1,33,0

00

25,65,0

00

4,37,00

0

89,30,0

00


WORK POLICY

(1) Work Schedule:

Work hour: 9:00 A.M. - 5:00 P.M.

Launch Break: 1:30 P.M. – 2:00 P.M.

(2) Salary & Wages:

i) Salary will be paid according to the salary structure for permanent

employee.

ii) For part time employee, payment rate will be Tk. 80.

(3) Bonus & Incentives:

Yearly 2 bonuses will be paid during the time of Eid festivals. And the amount

will be 50% of the actual salary.

(4) Overtime Payment:

If any employee need to work after the schedule time, he/she will get the over

time payment. And the extra amount received for overtime is double than his

normal work hour salary. If an employee’s daily salary is 100 tk., s/he will get

Tk.25/hour, as overtime payment.

(5) Payment Schedule:

Full time employee: salary will be paid on, 7th day of the month.

Part time Employee: Payment will be given after competitions of work.

(6) Promotion & Termination:

Both promotion and termination will be decided by the consent of board of

director.


(7) Compensation Plan:

The amount of compensation will be decided on the meeting of board of

director, after assessing the actual loss.

(8) Pension Plan:

Company will pay 50% of the actual salary every month, to the pension fund

for each permanent employee. Pension will be given to those employees, who

work more than 10 years in the organization and to those employees of the

organization, who are disabled to work, due to some unwanted reason. The

amount will be paid after 2 months, from the last day of work.

(9) Holidays & Vacation:

Every employee of the organization will get 20 days/ year, for vacation. And

every Friday will be given as weekly holiday. The company will also remain

close on national holidays.

Stage in Product Life Cycle

The Market of Solar energy system is not well established in Bangladesh, But we

have chance to create a huge market. The demand of electricity will increase day by

day, and other available resources are decreasing at a good rate. So we have a

great opportunity to increase our market, in future. And we expected that we will run

at least 70 years. Although we are in introduction stage in life cycle, we hope we will

continue for growth stage, within the end of this year.


To become the most reputed brand name

in the solar energy industry of the country

committed to adding value to all

stakeholders and community.


Critical Risk Analysis of Cooler Planet

Marketability Risk

Although energy crisis has become a front burner issue in the context of Bangladesh

economy and rural development; the target customer of the product are mostly

unaware of solar energy. Therefore, despite huge energy demand in the country, at

initial stage, marketing the product and tapping the market rightly is critical to the

success of this business.

Mitigates:

The company is undertaking huge marketing and promotional activities to tap the

rural market of the country. To build awareness, the company has employed

counselors who will travel door to door in the rural area of the country to inform

people of the benefits of solar power. Nevertheless, TV promotions, radio

advertisings, flyers are being deployed to drive people towards solar power. Besides

marketability study has been conducted by a group of college students in different

regions of the country which reveals that the rural people have been longing for such

a product to bring light in their life.

Operational Risk

Solar equipments will be installed by the technicians of the company. Although they

will be well trained by specialists, mostly the technicians do not have previous

experience of installing solar equipments. In case of improper installation there is

chances the target customer will not get the benefits properly from the solar units

and the units may become damaged easily. Since the company is providing full

fledged guarantee of the product; damaging of large number of products may lead to

huge financial loss of the business.

Mitigates:

Initially the technicians will be supervised by Diploma Engineers. Again, the

components of the solar system will be warranted by the foreign suppliers and will be

replaced if damaged as per purchase agreement with the supplier.


Management Risk

While running a business, robust Management is indispensable for coordination of

work and for running the business smoothly. Any Management conflict may lead to

downfall of a successful business plan.

Mitigates:

The entrepreneurs of the business are seven business graduates (BBA) passed from

the country’s reputed university having sound family background and financial

support. All of them are well capable of maintaining liaison with different authorities

and organizations. Chances of conflict of interest are expected to be remote

considering their relationships for last 04 years in the University. Besides, the

company will be run by experienced professionals as such Management risk is

assumed to be minimal.

Exchange rate Risk

All the equipments of the solar unit will be imported from abroad to ensure quality of

the product. Since import will incur foreign exchange against Bangladeshi taka,

devaluation of taka will lead to increased manufacturing cost and therefore, the

business will run the risk of exchange rate risk.

Mitigates:

Company’s earnings have been forecasted considering the exchange rate

fluctuation. Besides rise in input price can be transferred in the output price as such

exchange rate risk is expected much be in control.

Technological obsolescence risk

Although the concept of implementing solar power is new in Bangladesh; various

research are going on to up bring sustainable energy at cheaper price. In case a new

innovative source of power is unveiled at a cheaper cost, the solar power business

may prove to be unsuccessful and may not reach break even.


Mitigates: Since last five years, Government has been encouraging entrepreneurs to

focus in the renewable energy sector. Banks are also offering concessionary pricing

while financing the sector. Although there are three other competitors in the market,

the market is still in its beginning stage and is expected to grow in coming days.

Since cooler planet solar unit will only be assembled in Bangladesh rather

manufacturing, any technological advancement can easily be absorbed in the

Bangladesh market as long as demand for power prevails in Bangladesh.


Sales Forecasting

Sl. No.

Name of the product

Price/ unit(tk.)

Monthly forecasted sales Total Sales (units)

Total EarningsJan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.

1. Solar Home system

14,000 120 230 320 330 350 400 550 450 420 250 225 350 3995 5,59,30,000

2. Garden light 15,000 5 5 5 5 10 5 5 5 15 5 5 3 73 10,95,0003. FAN_DQ-1298 4,000 65 60 60 50 70 80 90 70 45 50 35 55 730 29,20,000

Total 5,99,45,000

Year 2011

Sales Forecasting

Year 2012

Sl. No.

Name of the product

Price/ unit(tk.

)


Total EarningsJan. Feb. Mar

.Apr. May June July Aug

.Sep. Oct. Nov. Dec

.1. Solar home

System14,000 150 150 280 250 360 320 450 400 350 300 250 370 3630 5,08,20,000

2. Garden light 15,000 30 30 30 50 100 50 50 50 130 50 50 30 650 97,50,0003. FAN_DQ-928 3,000 30 30 37 80 40 70 60 45 55 50 30 40 567 17,01,0004. FAN_DQ-1298 4,000 40 40 42 40 65 70 80 65 40 45 30 50 607 24,28,000

Total 6,46,99,000

Sales Forecasting


Year 2013

Sl. No.

Name of the product

Price/ unit(tk

.)



1. Solar System 14,000 330 200 250 200 300 450 600 500 450 300 350 400 4330 6,06,20,0002. Garden light 15,000 50 30 40 50 80 100 150 100 200 100 180 150 1230 1,84,50,0003. FAN_DQ-928 3,000 60 50 55 75 50 80 70 60 65 60 48 55 728 21,84,0004. FAN_DQ-1298 4,000 55 40 50 45 50 85 90 70 55 55 45 65 705 28,20,000

Total

8,40,74,000

Sales Forecasting

Year 2014

Sl. No.

Name of the product

Price/ unit(tk.)




Total 12,01,43,000


Sales Forecasting

Year 2015

Sl. No.

Name of the product

Price/ unit(tk.)




Total 7,67,20,000

COOLER PLANET SOLAR ENERGY (PVT.) LIMITEDIncome Statement

For the Year ended, 2011


Particulars Amount(tk.) Amount (tk.)

Net Sales 5,99,45,000

(-) Cost of good sold 2,00,00,000

Gross Margin 3,99,45,000

Less: Expenses

Selling expenses 55,00,000

Administrative Expenses 1,10,00,000

Total Expenses 1,65,00,000

Earnings before income Taxes 2,34,45,000

(-)Tax (15%) 35,16,750

Net Income 1,99,28,250

Dividends(70% of net income) 1,39,49,775

Retained Earnings (30% of net income) 59,78,475





Net Sales 6,46,99,000



Less: Expenses





(-)Tax (15%) 57,90,000



Retained Earnings (30% of net income) 98,43,000





Net Sales 8,40,74,000



Less: Expenses





(-)Tax (15%) 87,86,100



Retained Earnings (30% of net income) 1,49,36,370

COOLER PLANET SOLAR ENERGY (PVT.) LIMITED


Income StatementFor the Year ended, 2014


Net Sales 12,01,43,000



Less: Expenses





(-)Tax (15%) 1,35,96,450






Income StatementFor the Year ended, 2015


Net Sales 7,67,20,000



Less: Expenses





(-)Tax (15%) 72,33,000





Balance Sheet



Particulars Amount AmountLIABILITIES & SHARE HOLDERS’S EQUITY

Current LiabilitiesAccounts Payable 1,05,000

Taxes Payable 35,16,750

Total Current Liabilities 36,21,750

Long Term LiabilitiesBank Loan 0 0

Share Holder’s EquityCommon Stock 14,71,00,000

Retained Earning 59,78,475Total Liabilities & Share holder’s Equity 15,67,00,225ASSETSCurrent Assets

Cash 4,53,42,000

Account Receivable 2,07,08,225Inventory 12,00,000

Prepaid Expenses 4,30,00,000

Total Current Assets 11,02,50,225


Fixed Assets

Land 70,00,000

Buildings 90,00,000

Less: Accumulated Depreciation (5%) 4,50,000

Building(net) 85,50,000

Pick up Van 1,00,00,000

Equipment 1,20,00,000


Equipment (net) 1,14,00,000

Furniture 1,00,00,000


Furniture (net) 95,00,000

Total Fixed Assets 4,64,50,000

Total Assets 15,67,00,225

COOLER PLANET SOLAR ENERGY (PVT.) LIMITEDBalance Sheet









Retained Earning 98,43,000Total Liabilities & Share holder’s Equity 15,88,43,000ASSETSCurrent Assets

Cash 7,70,03,000

Account Receivable 2,50,00,000Inventory 14,00,000

Prepaid Expenses 1,04,86,500Total Current Assets 11,38,89,500

Fixed Assets


Land 70,00,000

Buildings 85,50,000



Pick up Van 1,00,00,000




Furniture 95,00,000









Current LiabilitiesAccounts Payable 80,000





Retained Earning 1,49,36,370Total Liabilities & Share holder’s Equity 17,09,02,470ASSETSCurrent Assets

Cash 10,39,88,000

Account Receivable 1,18,08,645

Inventory 13,00,000

Prepaid Expenses 1,03,00,000



Fixed Assets

Land 70,00,000

Buildings 81,23,500



Pick up Van 1,00,00,000




Furniture 90,00,000










Taxes Payable 1,35,96,450

Total Current Liabilities 1,93,63,569




Cash 14,73,72,000

Account Receivable 70,000

Inventory 30,000


Fixed Assets


Land 70,00,000

Buildings 77,17,325



Pick up Van 1,00,00,000



Equipment (net) 97,74,075

Furniture 85,00,000















Cash 12,69,21,000

Account Receivable 70,000

Inventory 10,000



Fixed Assets

Land 70,00,000

Buildings 73,31,459



Pick up Van 1,00,00,000

Equipment 97,74,075


Equipment (net) 92,85,371

Furniture 80,00,000






Cash Flow Statement

Particulars Cash Transaction Amount (in’000)Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.

Cash InflowsCash Sales 20,15 35,35 47,95 48,95 53,30 59,95 81,35 66,55 62,85 37,75 33,65 51,65


Earnings from Interest 0 1,000 10,00 15,000 20,000 12,000 15,000 20,000 11,000 13,000 23,000 14,000Total Cash In 20,15 35,36 48,05 49,10 53,50 60,07 81,50 66,75 62,96 37,88 33,88 51,79

Cash DisbursementRent 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70 1,70

Salaries & wages 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00 5,00Legal & Audit Fees 10,00 0 0 0 0 0 0 0 0 0 0 0

Utilities (heat, light, water) 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00 1,00Insurance 10,00 0 0 0 0 0 0 0 0 0 0 0

Other Cash Expenses 2,00 2,50 1,80 1,60 1,40 1,90 1,30 1,50 1,70 2,10 1,50 1,80Payments On purchase of Fixed

assets1,00,00 0 0 0 0 0 0 0 0 0 0 0

Income Tax 0 0 0 0 0 0 0 0 0 0 0 35,17Cash Dividend 0 0 0 0 0 0 0 0 0 0 0 1,39,50Total Cash out 1,29,70 10,20 9,50 9,30 9,10 9,60 9,00 9,20 9,40 9,80 9,20 1,84,17

Reconciliation of Cash FlowOpening Cash Balance 2,60,60 1,51,

051,76,21 2,14,76 2,54,56 2,98,96 3,49,43 4,21,93 4,79,48 5,33,04 5,61,12 5,85,80

Add: Cash In 20,15 35,36 48,05 49,10 53,50 60,07 81,50 66,75 62,96 37,88 33,88 51,79Deduct: Cash Out 1,29,70 10,20 9,50 9,30 9,10 9,60 9,00 9,20 9,40 9,80 9,20 1,84,17

Closing Cash Balances 1,51,05 1,76,21

2,14,76 2,54,56 2,98,96 3,49,43 4,21,93 4,79,48 5,33,04 5,61,12 5,85,80 4,53,42

For the Year, 2011

COOLER PLANET SOLAR ENERGY (PVT.) LIMITEDCash Flow Statement


Cash InflowsCash Sales 28,00 28,00 46,4

946,50 69,20 57,20 75,50 67,45 71,75 52,80 44,60 59,50

Earnings from Interest 10 11 35 23 12 11 13 12 15 21 12 22


Total Cash In 28,10 28,11 46,84

46,73 69,32 57,31 75,63 67,57 71,90 53,01 44,72 59,72




Income Tax 0 0 0 0 0 0 0 0 0 0 0 57,90Cash Dividend 0 0 0 0 0 0 0 0 0 0 0 2,29,67

Other cash Expenses 1,60 1,70 1,30 1,20 2,10 2,15 2,50 1,20 1,40 1,60 1,90 2,00Total Cash out 29,30 9,40 9,00 8,90 9,80 9,85 10,20 8,90 9,10 9,30 9,60 2,97,27

Reconciliation of Cash FlowOpening Cash Balance 4,53,4

24,52,

224,90,06

5,27,89 5,87,41 6,94,39 7,41,85 8,07,28 8,65,95 9,28,75 9,72,46 1,00,758

Add: Cash In 28,10 28,11 46,84

46,73 69,32 57,31 75,63 67,57 71,90 53,01 44,72 59,72

Deduct: Cash Out 29,30 9,40 9,00 8,90 9,80 9,85 10,20 8,90 9,10 9,30 9,60 2,97,27Closing Cash Balances 4,52,2

24,90,06

5,27,89

5,87,41 6,94,39 7,41,85 8,07,28 8,65,95 9,28,75 9,72,46 1,00,758

7,70,03

For the Year, 2012

COOLER PLANET SOLAR ENERGY (PVT.) LIMITEDCash Flow Statement For the Year, 2013


Cash InflowsCash Sales 57,70 35,60 44,65 39,55 57,50 83,80 1,12,20 89,60 97,15 61,00 79,64 82,75

Earnings from Interest 12 13 19 15 14 17 16 14 19 21 21 16Total Cash In 57,82 35,73 44,84 39,70 57,64 83,97 1,12,36 89,74 97,34 61,21 79,85 82,91





Income Tax 0 0 0 0 0 0 0 0 0 0 0 87,86Cash Dividend 0 0 0 0 0 0 0 0 0 0 0 3,48,52


Reconciliation of Cash FlowOpening Cash Balance 7,70,03 7,98,81 8,25,41 8,59,97 8,89,43 9,36,72 1,01,08,

61,12,3

1,81,19,2

9,11,28,0

5,71,33,22

,11,40,29,1

Add: Cash In 57,82 35,73 44,84 39,70 57,64 83,97 1,12,36 89,74 97,34 61,21 79,85 82,91Deduct: Cash Out 29,04 9,13 10,28 10,24 10,35 9,83 10,04 10,01 9,68 9,57 9,15 4,45,94

Closing Cash Balances 7,98,81 8,25,41 8,59,97 8,89,43 9,36,72 1,01,08,6

1,12,31,8

1,19,29,1

1,28,05,7

1,33,22,1

1,40,29,1

10,39,88




Cash InflowsCash Sales 97,06 80,40 89,66 79,87 1,05,55 1,37,98 1,68,35 1,36,60 1,18,37 79,95 76,07 72,53

Earnings from Interest 12 10 13 12 12 11 10 11 12 13 11 14Total Cash In 97,18 80,50 89,79 79,99 1,05,67 1,38,09 1,68,45 1,36,71 1,18,49 80,08 76,18 72,67




Cash Dividend 0 0 0 0 0 0 0 0 0 0 0 5,39,33Income Tax 0 0 0 0 0 0 0 0 0 0 0 1,39,97


Reconciliation of Cash FlowOpening Cash Balance 1,03,

98,81,10,81,0

1,17,91,7

1,25,98,3

1,33,07,0

1,42,71,5

1,55,62,2

1,71,55,5

1,84,33,3

1,95,23,6

2,02,30,9

2,08,98,9

Add: Cash In 97,18 80,50 89,79 79,99 1,05,67 1,38,09 1,68,45 1,36,71 1,18,49 80,08 76,18 72,67Deduct: Cash Out 28,96 9,43 9,13 9,12 9,22 9,02 9,12 8,93 9,46 9,35 8,93 6,88,84

Closing Cash Balances 1,10,81,0

1,17,91,7

1,25,98,3

1,33,07,0

1,42,71,5

1,55,62,2

1,71,55,5

1,84,33,3

1,95,23,6

2,02,30,9

2,08,98,9

14,73,72



Cash InflowsCash Sales 63,37 39,15 48,98 42,65 61,60 90,62 1,04,30 97,25 69,92 50,00 48,98 63,65


Earnings from Interest 1o 11 12 13 12 11 12 13 11 10 14 15Total Cash In 63,47 39,26 49,10 42,78 61,72 90,73 1,04,42 97,38 70,03 50,10 49,12 63,80




Cash Dividend 0 0 0 0 0 0 0 0 0 0 0 2,86,91Income Tax 0 0 0 0 0 0 0 0 0 0 0 72,33


Reconciliation of Cash FlowOpening Cash Balance 14,73

,7215,08

.4915,38,

9015,79,0

816,13,0

516,65,9

217,47,8

218,43,3

319,31,7

819,92,7

420,33,6

720,73,6

7Add: Cash In 63,47 39,26 49,10 42,78 61,72 90,73 1,04,42 97,38 70,03 50,10 49,12 63,80

Deduct: Cash Out 28,70 8,85 8,92 8,81 8,85 8,83 8,91 8,93 9,07 9,17 9,12 3,68,26Closing Cash Balances 15,08

,4915,38

,9015,79,

0816,13,0

516,65,9

217,47,8

218,43,3

319,31,7

819,92,7

420,33,6

720,73,6

717,69,2

1

Ratio Analysis:COOLER PLANET SOLAR ENERGY (PVT.) LIMITED

For the Year , 2011

Sl. No. Name of the Ratio Explanation Amount Ratio


1. Current Ratio Total Current Assets

Total Current Liabilities

110250225

362175030.44

2. Acid-test Ratio Current assets-Inventory-Prepaid Exp.

Current Liabilities

110250225-1200000-43000000

362175018.24

3. Debt-to-equity Ratio Total Debt

Total Equity

3621750

1530784750.023

4. Inventory Ratio Cost of Goods Sold

Avg. Inventory

20000000

120000016.67

5. Average Collection Period Account Receivable X 365

Annual sales

20708225

59945000126.09

6. Return on Total Assets Operating Income

Total Assets

19928250

1567002250.13

7. Return on Equity Net Income

Share Holders Equity

19928250

1567002250.13

EXPLANATION:

1. Current ratio: In 2011 our total current assets is 110250225 and our total current liabilities is 3621750. The current ratio is 30.44.

2. Acid-test Ratio: In 2011 acid-test ratio is 18.24.


3. Debt-to-equity Ratio: In 2011 our total debt is 3621750 and total equity 153078475. The debt-to-equity ratio is

0.023.

4. Inventory Ratio: In 2011 our cost of goods sold is 20000000 and inventory is 1200000. The inventory ratio is 16.67.

5. Average Collection Period: in 2011 our average Collection Period is 126.09 days.

6. Return on Total Assets: In 2011 our operating income is 19928250 and total assets are 156700225. Return on

Total Assets are 0.13.

7. Return on equity: In 2011 our net income is 19928250 and share holders equity is 156700225. Return on equity is

0.13.

COOLER PLANET SOLAR ENERGY (PVT.) LIMITEDFor the Year , 2012

Sl. No. Name of the Ratio Explanation Amount Ratio1. Current Ratio Total Current Assets 123789500

20.98


Total Current Liabilities 59000002. Acid-test Ratio Current assets-Inventory-Prepaid Exp.

Current Liabilities

123789500-6400000-10513500

5900000 18.11


Total Equity

5900000

156943000 0.034


Avg. Inventory

1,10,00,000

6400000 1.72


Annual sales

3,87,00,000

6,46,99,000


Total Assets

3,28,10,000 16,87,43,000

0.19



3,28,10,000

16,87,43,000

0.19

EXPLANATION:

1. Current ratio: In 2012 our total current assets is 123789500 and our total current liabilities is 5900000.

The current ratio is 20.98. In 2011 the current ratio was 30.44.So the current ratio is decreases in2012.


2. Acid-test Ratio: In 2011 acid-test ratio was 18.24. In 2012 acid-test ratio is 18.11.

3. Debt-to-equity Ratio: In 2012 our total debt is 5900000 and total equity 156943000. The debt-to-equity ratio is

0.034. : In 2011 debt-to-equity ratio is 0.023.So

4. Inventory Ratio: In 2012 our cost of goods sold is 1,10,00,000 and inventory is 6400000 . The inventory

ratio is 1.72. The inventory ratio was 16.67 in 2011.So the inventory ratio is decreases in 2012.

5. Average Collection Period: in 2012 our average Collection Period is days.

6. Return on Total Assets: In 2012 our operating income is 3,28,10,000 and total assets are16,87,43,000. Return

on Total Assets are 0.19.In 2011 Return on Total Assets are 0.13.So return on assets in 2012 is increases.

7. Return on equity: In 2012 our net income is3,28,10,000 and share holders equity is16,87,43,000. Return on

equity is 019.


Sl. No. Name of the Ratio Explanation Amount Ratio1. Current Ratio Total Current Assets


12,73,96,645

88,66,10014.37


Current Liabilities

12,73,96,645-13,00,000-1,03,00,000 13.06


88,66,100

3. Debt-to-equity Ratio

Total Debt

Total Equity

88,66,100

1620363700.054


Avg. Inventory

1,10,00,000

13,00,0000.53


Annual sales

2,06,35,645

8,40,74,00089.59


Total Assets

4,97,87,900

17,09,02,4700.29



4,97,87,900

1530784750.33

For the Year , 2013

EXPLANATION:

1. Current ratio: In 2012 our total current assets was 123789500 and our total current liabilities was 5900000.

The current ratio is 20.98. : In 2013 our total current assets is 12,73,96,645 and total

Current liabilities is 88, 66,100. . The current ratio is 14.37.So the current ratio is decreases.


2. Acid-test Ratio: In 2012 acid-test ratio was 18.11. In 2012 acid-test ratio is 13.06.

3. Debt-to-equity Ratio: In 2012 our total debt was 5900000 and total equity was156943000. The debt-to-equity

ratio was 0.034. In 2013 debt-to-equity ratio is 0.054.So In 2013 debt-to-equity ratio is increases.

4. Inventory Ratio: In 2012 our cost of goods sold was 1,10,00,000 and inventory was 6400000 . The

inventory ratio was 1.72. The inventory ratio is0.53 in 2013.So the inventory ratio is decreases in 2013.

5. Average Collection Period: in 2012 our average Collection Period was days and in 2013 our average

Collection Period is 89.59 days.

6. Return on Total Assets: In 2012 our operating income is 3,28,10,000 and total assets are16,87,43,000. Return

on Total Assets is 0.19.In 2013 Return on Total Assets are 0.29.So return on assets in 2013 is increases.

7. Return on equity: In 2012 our net income was3, 28, 10,000 and share holders’ equity was 16,87,43,000.

Return on equity was 0.19. In 2013 Return on equity are 0.33.




14,74,72,000

1,93,63,5697.61



Current Liabilities

14,74,72,000- 30,000

1,93,63,5697.61


Total Equity

1,93,63,569

1702139650.11


Avg. Inventory

1,60,00,000

30,000533.33


Annual sales

88,52,000

12,01,43,00026.90


Total Assets

7,70,46,550

18,95,77,5340.41



7,70,46,550

18,95,77,5340.41

EXPLANATION:

1. Current ratio: In 2013 our total current assets was12,73,96,645 and our total current liabilities was 88, 66,100.

The current ratio is 20.98. : In 2014 our total current assets is 147472000 and total

Current liabilities is 19163569 . The current ratio is 7.61.So the current ratio is decreases.


2. Acid-test Ratio: In 2013 acid-test ratio was13.06.. In 2014 acid-test ratio is 7.61


ratio was0.054. In 2014 debt-to-equity ratio is 0.11.So In 2014 debt-to-equity ratio is decreases.

4. Inventory Ratio: The inventory ratio was o.53 in 2013. The inventory ratio is533.33 in 2014.So the inventory

ratio is increases in 2014.

5. Average Collection Period: in 2013 our average Collection Period was 89.59 days and in 2014 our average

Collection Period is 26.90days.

6. Return on Total Assets : Return on Total Assets are0.29.In 2013 Return on Total Assets are0.41.So return on

assets in 2013 is increases.

7. Return on equity: Return on equity was 0.33 in 2013. In 2014 Return on equity are 0.41.




17,70,01,000

83,55,15721.18



Current Liabilities

17,70,01,000-10,000

83,55,15721.18


Total Equity

83,55,157

1539961000.054


Avg. Inventory

1,20,00,000

10,0001200


Annual sales

70,000

7,67,20,0000.333


Total Assets

4,09,87,000

16,77,51,2570.244



4,09,87,000

16,77,51,2570.244


EXPLANATION:

1. Current ratio: In 2014 our total current assets was12,73,96,645 and our total current liabilities was 88, 66,100.

The current ratio is 21.18. : In 2015 our total current assets is 147472000 and total

Current liabilities are 19163569 . The current ratio is 7.61.So the current ratio is decreases.

2. Acid-test Ratio: In 2014 acid-test ratio was13.06.. In 2015 acid-test ratio is 21.18


ratio was0.054. In 2014 debt-to-equity ratio is 0.11.So In 2014 debt-to-equity ratio is decreases.

4. Inventory Ratio: The inventory ratio was 1200 in 2015. The inventory ratio is533.33 in 2014.So the inventory

ratio is increases in 2014.

5. Average Collection Period: in 2015 our average Collection Period was 0.333 days and in 2014 our average

Collection Period is 26days.

6. Return on Total Assets : Return on Total Assets are0.244 In 2015 Return on Total Assets are0.41.So return on

assets in 2014 is increases.

7. Return on equity: Return on equity was 0.244 in 2015. In 2014 Return on equity are 0.41.


Concluding remarks

As Bangladesh is graduating from least developed to a developing country,

incessant power at all levels is vital to the growth of the economy. While

exploration for sustainable energy is continuing, Cooler Planet Solar Energy

Ltd’s solar system business is a timely and demanding arena where the

company is expected to become successful based on the following

considerations:

Huge untapped market of the product.

Wide target area covering all the six divisions of the country.

Well educated entrepreneurs supported by experienced

professionals.

Robust financial strength of the company.

Well defined business strategy formulation for marketing, selling

and distribution of the product.

Government’s encouragement as one of the thrust sectors of the

country.

_____


BUSINESS PLAN FOR_1

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