A STUDY ON FESIBILITY REPORT TO ESTABLISHED DAIRY INDUSTRY IN

BANGLADESHSubmitted To:-

SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT & COMPUTER APPLICATIONS

Submitted By:-

Group No.:-4

Gujarat Technological University

Group No :- 04Group Name Enrollment no.

Neha Chaudhary 137690592019

Hardik Sorathiya 137690592116

Pratik Vaghasiya 137690592121

Krunal Dahnani 137690592024

Chetak Patel 137690592073

Bonni Shah 137690592105

Introduction The economy of Bangladesh is based primarily on agriculture, and livestock is an

essential component of the rural economy and the livelihood of the subsistencefarmers.

The demand for milk and milk products is increasing because of the rapid increasein population, the spread of education and growing nutrition awareness. Nationalmilk production can only meet 13% (approx.) of the current milk consumption.

Bangladesh has a suitable environment for cattle. Therefore, the need fordeveloping the dairy industry, especially, in the rural areas, has been recognized.

National milk production can only meet 13% of the current milk consumption. Thedemand for milk is growing at a faster rate than supply because of the rapidincrease in population, creating a widening imbalance between demand andsupply.

Fresh milk processing and marketing in Bangladesh began in 1952, with theestablishment of Eastern Milk Products Limited, a private company, which soldproducts under the trade name of Milk Vita.

In 1965, the company’s ownership was transferred to the Eastern Milk Producers'Cooperative Union Ltd., the first milk cooperative in what was then East Pakistan.

After independence, the cooperative was renamed the Bangladesh Milk ProducersCooperative Union Limited (BMPCUL), and is best known today by its popularbrand name, Milk Vita. Milk Vita is Bangladesh’s largest dairy.

• VVVVVVVV

Project Reasoning

• The dairy industry sector is booming right now with low operatingexpenses and a very pleasing net profit.

• The dairy industry sector offers an opportunity to earn an excellentincome.

• It is one step ahead then the other dairy industry. It is a luxury way to takecare of milk production and its healthy growth.

• People are more conscious about the quality of product and health.

• “A report which projects the practical viability of a venture with respect todifferent dimensions is called feasibility report.”

Project at GlanceName of the industry Dairy Industry

Location 4, 5, 6 Faizan Plaza,

Opp. Irshad Bazaar,

Motijheel,

Mohd.Ali Road,

Dhaka,Bangladesh

Nature of Industry DAIRY

Date of Incorporation March 2015

Cost of Project Rs.11093000

Means of Finance Rs.11093000

Payback Period 4 Years

Average Rate of Return 18.49%

Internal Rate of Return 9.41%

About Sweet DairyType Cooperative

Industry Dairy/FMCG

Founded 2015

Headquarter Dhaka, Bangladesh

Revenue 1 corer (2014–15)

Number of employees25 employees of Marketing Arm.

However, real pool consist of 0.5 million milk producermembers

Slogan We Think of you

RIGHTS & DUTIES OF THE PARTNERSRIGHTS OF THE PARTNERS DUTIES OF THE PARTNERS

Each & every partner has a right to take

part in day to day activities of firm.

Each and every partner is liable to deal

honestly in the business of the firm.

Each & every partner has a right to

inspect books of account of the firm.

Each and every partner is liable to work

hard & with dedication to achieve the

common goal of the firm.

Each and every partner has a right to

express his opinion.

Each and every partner is liable to make

sure that assets of the firm will be

protected & will be used in productive

manner.

Each and every partner has a right to

have share in the profit of the firm.

Each and every partner is liable to

indemnify the firm in case of any loss

HISTORY

• Sweet is an Bangladesh dairy cooperative, based atDhaka, Bangladesh. The co-operative was initiallyreferred to as Strengthen wealth and MilkFederation Employees effective tool hence Sweet.

• Formed in 2015, it is a brand managed by acooperative body, which jointly owned by 0.5million milk producers in Dhaka.

• Sweet spurred in Bangladesh White Revolution,which made contribution in milk and milk products.

PEST Analysis

Political Environment

Political environment includes government regulation and legal issues under which the firm will operate.

o Political stability and political partieso Government administrationo Tax policyo Licensing policy

Economic Environment

Economic factors affect the purchasing power of potential customers and the firm’s cost of capital. We have considers the following economical factors;

o Demand and supply of the serviceo Nature and intensity of the competitiono Inflation or deflation in the economy

Social Environment

Social factors include demographic and cultural aspects which affect the customer’s needs and the size of the potential market. We have also taken into consideration factors like:

o Population growtho Age distributiono Change in incomeo Expectations of the societyo Customs and traditionso Labor mobility and Technical knowledge.

Technological Environment

Technological factors can reduce minimum efficient production level andinfluence outsourcing decision.

o Technological innovations are introduced for higher productivity, lower cost andmore revenue.

o Technology refers to sum total of knowledge providing way to do things.

o Our organization gives constant consideration to the manner in which innovationsmay affect our service and also our internal operational efficiency.

o The firm that moves with latest technology can excel the growth that is why ourfirm Sweet has decided to install the latest machineries.

Importance of Feasibility Report

• List in detail all the things you need to make theindustry work.

• Identify logistical and other industry-relatedproblems and solutions.

• Develop marketing strategies to convince a bank orinvestor that your industry is worth considering asan investment.

• Serve as a solid foundation for developing yourindustry plan.

Legal Feasibility

• Description of Industry Structure.

• Description of organizational Structure.

• Internal and external principles and practices of the

industry.

• Water Supply• Electricity Supply• Communication• Selection of Location

Technical Feasibility

Human Resource Feasibility• It deals with the recruitment and selection of the proper kind of personnel

in the various departments and also coming up with the ways of training, developing and retaining them by provision of various incentives and perks relevant to their needs and requirement.

• Description of Industry• Current Market Analysis• Competition• Anticipated Future Market Potential• Potential Buyers and Sources of Revenue• Sales Projections

Marketing Feasibility

Finance Feasibility

• A Finance Feasibility report includes how much start-up capital is needed, sources of capital, returns on investment and other financial consideration. It looks at how much cash is needed, where it will come from and how it will be spent.

PLANT LAYOUT

Competition LevelBrand competition

o It is a Known fact that there is an existence of competition in any brand. In a Dairy Product, there are many brands such as Chees, milk, ice cream etc which are already established brands and have a good share of markets.

Industry competition

o There is also an existence of competition between industries. Dairy Product industries faces the same competition from same product. Similarly dairy company suffer from various local milk product.

Generic competition

o This is the competition among those goods and services which can be bought instead of a particular service. Generic competition for Dairy Product services is different as there is different price level for different services.

“The ‘Package’ concept of service product suggests that what you offer to the market is a bundle of different services tangible and intangible ,but there is a main or core service and around it are built the auxiliary or facilitator services”

o Free Delivery Of Milk Producto Other Valuable Serviceo Customer Feed Back

Service Package

Promotion

“Promotion mix is a specific blend of Advertising, Sales Promotion, Public Relations, Personal Selling and Direct Marketing tools that the company uses to pursue its advertising and marketing Objectives”

o Participation in an existing local event; oro Partnership with another community entity/organization; oro Sponsorship of a community event; oro Self-hosting a dairy farm event

Advertising

“Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.”

- American Marketing Association

Sweet Dairy mainly do advertise of their products with following sources:

o News Papero TV advertisingo Radio advertisingo Hordingo Leafletso Online ( Social media)o Wall Painting o E-mails and Brochures

Marketing Research

• The main steps in marketing research are:• Step1. Identifying and defining your problem• Step2. Developing your approach and

research design• Step3. Collecting the data• Step4. Performing data analysis• Step5. Reporting and presentation

Findings

• The sample of 12 respondents may not represent the total population of Bangladesh.

• Our research found that only 16% respondents are using the Milk Product.

• As our concept of Milk Producing is new, there are around 61% respondents who were unaware about the service.

• The Many People Is Not So Much Important Of Dairy Product..

• Most of the respondents To Not Given Clear Answer.

Suggestion

• To create awareness about the Milk Product via using advertising as an important tool.

• To show differentiation between Milk Product Dairy Product.

• To promote these Product To Give Free Sample. So that customers come to know from the beginning about Our PRODUCT.

•

Policies for EmployeesRecruitment & selectionWe will be giving recruitment advertisement for receptionist, Account manager and others in the leading newspaper of the area such as Daily Bhorer Kagoj, Jugantor etc.

MotivationThe employees will be provided with following monetary and non-monetary benefits like bonus, and holidays in festivals. Besides we will also follow suggestion box scheme. Moreover Special leaves will be given to employees. Three days leaves will be given in addition of Official Leaves.

Team workIt is the team spirit on the part of the employees which is behind the success of any business entity. The culture of our organization will be such that will help in imbibing this spirit in our employees to provide qualitative service to customers.

Employee behaviorTraining and motivating are to be given so that employee can make the difference among the other company employees and feel satisfaction.

Bonus:We give One Month Salary as a Diwali Bonus to our employees.

SWOT Analysis

‘SWOT’ analysis is required to check the firm’s Strength, Weakness, Opportunity and Threats which are there in the external environment. It will give the overall idea about competitors and current situation of the firm.

Strength and Weakness are the internal characteristics that can be improved by the firm, while Opportunities and Threats are the external factors which will predict the current condition of the firm to make decision.

Strengths

o It require very little timeo Well trained employees.o Price is kept that it should be in the range of everyone’s purchases.o Good quality services.

Weaknesses

o Single outlet at one place.o Investment made in research and development is very low.o It is not a well know dairyo It is little bit costlier than other producing dairy product.o The need to have a fairly constant volume of business to support the necessary

service staff.

Opportunities

o Big potential market as only few firm provides this service. o Participation within a steadily growing industry. o The ability to decrease the fixed costs as a percentage of an individual sale as

volume increases.o There is a scope of expansion of new branches

Threats

o Future/ potential competition from a franchised firm. o A slump in the economy, reducing discretionary spending. o The perception that there is not a difference in quality between a other dairy

product and our dairy product

Future Expansiono To take care of every need and to provide the best Product to our customers, we are

going to upgrade our existing plant with the latest technology by importing latestmachinery from Japan and Germany.

o Considering the overwhelming response from our customers and to take care of theneed of the customer of different areas of the city, we are going to open 2 branches inthe city by the end of October, 2015.

o We are also looking for widening our Franchise base across the state by opening 5new branches in the different parts of the state.

o In the next fiscal year, we are planning to start our mobile van services that can carterthe need of the customers of the remote areas.

o We are also planning to start some entertainment services like internet café, coffeecafé for our valuable customers to spend their time with our product.

Conclusion

• It is feasible with profits surging every year. All thefactors considered for evaluation yielded highlypositive results.

• As far as the financial aspects are considered, theprofitability shows a continuous upward trend.

• As far as the survey was considered, we found thatthe no. of respondents of our survey. We would haveto address this concern by targeting our marketingefforts at them in a much more convincing way.

Assumptions Underlying• There are 300 working days in the year.• Purchase of raw material will increase @ 10% every

year.• Closing stock will be 25% of purchase price.• Salary will increase @5% every year.• Workers will be given holiday on Tuesday.• Preliminary expenses are to be written off in 5 year.• Loan is taken from SBI @12% p.a.• The period of loan is 10 year.

Brochure

DAILY MEANS DELICIOUS

OUR PRODUCTS : SWEET

MILK,BREAD,CHEESE,ICECREAM,PANEER,DAHI,GHEE,

MILK POWDER,CHOCOLATES,FRESH CREAM,MITHAI

RANG,BUTTER,PIZZA,SHRIKHAND.

Thank You