Entrepreneurship Organico(Slides)

8/12/2019 Entrepreneurship Organico(Slides)

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You

AHMAD SHIRAZ

FAHAD WAHEED

ARSLAN BABAR

MIAN ARSLAN TARIQ

USAMA FARRUKH


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Market Need

Increasing trend in consumption of safe and organic food in Pakistan

Cheap organic fertilizer to grow organic crops

Organic farmers are purchasing imported fertilizer on higher prices


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You

To be the pioneer in making of cheap and highquality organic fertilizer

Market NeedMarket Need

VISION


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You

Our mission is to provide the organic fertilizer to different

companies in Pakistan using cheap and innovative technology.

We will provide cheap fertilizer which will be environmentfriendly by sustaining high profits and caring for our

employees & suppliers

Market NeedMarket Need

MISSION


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Target Customers & Market Size


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Our Solution

Barrel composting technique

Inexpensive fertilizer by recyclingagricultural waste

Easy availability


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Target Market

Individual Growers ( Farmers)

FORMAL GROWERS (E.G. Mitchells Fruit

Farms)

Gardeners


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Business Model, Go-to-Market

Strategy


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Opportunity/Market size

Total fruit and vegetable farming in Pakistan 1 million acres

Organic farming in Pakistan @ 10% rate100,000 acres

Organic fertilizer consumption / quarter @ 150 kg per acre 15000000kg

Demand growth @ 3 % per year

YEAR KG/ Quarter

2012 15,45,00,00 kg

2013 15,91,35,00 kg

2014 16,39,09,05 kg

2015 16,88,26,32 kg

Source: UNFDP (United Nations Food Development Program)


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Process for barrel composting


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Agricultural waste to be Recycled

Vegetable wastes

Alfalfa hay

Cow manure

Apple pomace

Leaves

Corn stalks

Oat straw

Wheat straw

Paper

Sawdust

Grass clippings

Coffee grounds

Bark

Fruit wastes

Poultry manure (fresh)

Horse manure

Newspaper

Pine needles

Rotted manure


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Temperature At a temperature of 35-50 c organic matter will

decompose about twice as fast as at 130 degrees F.

Moisture For optimum performance, moisture content within the

composting environment should be maintained at 45 percent

Particle Size The ideal particle size is around 2 to 3 inches.

TurningDuring the composting process oxygen is used up quickly by

the microbes as they metabolize the organic matter. As the oxygen

becomes depleted the composting process slows and temperatures

decline. Aerating the compost by turning of barrel should ensure anadequate supply of oxygen to the microbes.

Composting Period In Pakistani conditions composting period

would be 18-21 days.

Conditions for Barrel composting


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Major competitors

Importers (price offered 50 RS/ kg)

Industrial recyclers (42 RS /kg)

Informal producers ( Not selling to market)


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Competitive profile matrix

Key Success Factors weight score Weighted score score Weighted score score Weighted score

Operating cost 0.05 3 0.15 2 0.1 1 0.5

Easy availability 0.05 3 0.15 3 0.15 2 0.1

quality 0.05 4 0.2 4 0.2 3 0.1

Startup cost 0.30 4 1.2 4 1.2 1 0.3

Process complexity 0.05 3 0.15 4 0.2 3 0.15

price 0.50 4 2 1 0.5 2 1

TOTAL 3.85 2.35 2.15

Our Business Importers Urban Recyclers


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SWOT AnalysisSTRENGTHS First Mover Advantage

Low Operating Cost

Easy Availability

Low Price

Low Capital Investment

WEAKNESSES

Low Community Awareness

Low Acceptability

Weak Infrastructure To Support

Agricultural Recycling

OPPORTUNITIES

Vast Market

High Prices Of Imported Fertilizers

Growth Of Organic Farming In

Pakistan

Local food channels are

encouraging people to consumeorganic food

THREATS

Government Regulations

Uncertain Farmers Attitude


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Financials

ORGANICO

Income Statement

Years 2011 to 2013

RS

2011 2012 2013

NET REVENUES PKR 113,475,000.00 PKR 124,822,500.00 PKR 137,304,750.00

COST OF REVENUE PKR 102,807,250.00 PKR 113,087,975.00 PKR 124,396,772.00

% of Revenues PKR 0.91 91% 91%

GROSS PROFIT PKR 10,667,750.00 PKR 11,734,525.00 PKR 12,907,978.00

% of Revenues PKR 0.09 9% 9%

OPERATING EXPENSES

OFFICE RENT PKR 600,000.00 PKR 600,000.00 PKR 600,000.00

SHOP RENT PKR 240,000.00 PKR 336,000.00 PKR 432,000.00

WARE HOUS AND WORK SHOP RENT PKR 500,000.00 PKR 500,000.00 PKR 500,000.00

TRANSPORT CARRIAGE PKR 500,000.00 PKR 600,000.00 PKR 700,000.00

ADVERTISMENT MARKETING PKR 150,000.00 PKR 100,000.00 PKR 500,000.00

MISCELLENOUS PKR 600,000.00 PKR 600,000.00 PKR 650,000.00

SALARIES AND ADMINISTRATION PKR 2,500,000.00 PKR 2,800,000.00 PKR 3,100,000.00

TOTAL OPERATING EXPENCES PKR (5,090,000.00) PKR (5,536,000.00) PKR (6,482,000.00)

EARNINGS BEFORE INTEREST & TAXES PKR 5,577,750.00 PKR 6,198,525.00 PKR 6,425,978.00

INTEREST INCOME / (EXPENSE) PKR (200,400.00) PKR (200,400.00) PKR (200,400.00)

NET EARNINGS BEFORE TAXES PKR 5,377,350.00 PKR 5,998,125.00 PKR 6,225,578.00

TAXES PKR (2,150,940.00) PKR (2,399,250.00) PKR (2,490,231.20)

NET EARNINGS PKR 3,226,410.00 PKR 3,598,875.00 PKR 3,735,346.80


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Cost of Goods Sold

Direct Inventory

Cost:

STARTER PKR 13,500,000.00 3000/UNIT

ACCELATOR PKR 6,750,000.00 4500/UNITMOISTURE METERS PKR 3,750,000.00 2500/UNIT

TUMBLER RAW MATERIAL PKR 2,250,000.00 1500/UNIT

PACKING MATERIAL PKR 848,250.00 15/PER BAG

ORGANIC FERTILIZER PKR 73,125,000.00 25/ PER KG

Other Raw

Material PKR 324,000.00

Direct Labour PKR 1,260,000.00 7000//MONTH

Over Head Cost PKR 1,000,000.00GRAND TOTAL PKR 102,807,250.00
mailto:73125000@25/KGmailto:73125000@25/KGmailto:73125000@25/KG


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Operating Expenses

OFFICE RENT PKR 600,000.00

SHOP RENT PKR 240,000.00

WARE HOUS AND

WORK SHOP RENT PKR 500,000.00

TRANSPORT

CARRIAGE PKR 500,000.00

ADVERTISMENT

&MARKETING PKR 150,000.00

MISCELLENOUS PKR 600,000.00

SALARIES AND

ADMINISTRATION PKR 2,500,000.00

INTEREST EXPENSE PKR 200,400.00

GRAND TOTAL PKR 5,290,400.00


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Operating Revenues

FROM RESIDUES

4500 STARTERS PKR 14,400,000.00 3200/UNIT

1500 ACCELATOR PKR 7,200,000.00 4700/UNIT

1500 MOISTURE METER PKR 4,050,000.00 2700/UNIT

1500 TUMBLERS PKR 3,000,000.00 2000/UNIT

FROM ORGANIC GROWERS

2827500 KG or 56550 Bags ORGANIC FERTLIZER PKR 84,825,000.00 30/KG

GRAND TOTAL PKR 113,475,000.00


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Initial capital Investment

Advance Payment Building ( workshop &ware house) PKR 1,000,000.00

Building Renovation PKR 600,000.00

Packing Machine PKR 20,000.00

Tools & Equipments PKR 500,000.00

Furniture PKR 100,000.00

Initial Reservers PKR 2,815,866.00

Advance Payment Retail Shops PKR 1,000,000.00

Advance Payment Business Office PKR 500,000.00

Marketing Training & Awarness Budget PKR 500,000.00

Grand Total PKR 7,035,866.00


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FINANCIAL PLANNING FIGURES

PAY BACK PERIOD

2.06

years

NPV 3524765

IRR 22.76%

Initial capital Investment


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Marketing objectives

Main objectives of our marketing would be

1. support in establishing brand and awareness2.Enhance channel relationship.

Total investment = RS 500,000


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Marketing strategy

0

20,000

40,000

60,000

80,000

100,000

120,000

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Investment

Investment


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Conclusion(Economic benefits)

Waste recycling culture will be promoted in oursociety

Trade deficit will decrease

Food inflation will be reduced Promotion of safe and hygienic food in our

society

Financial support to low income farmers andresiduals of village in Pakistan

Per capita income in villages will increase


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Entrepreneurship Organico(Slides)

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