Specialized in Organic Halal Meat Products

Tarika BrooksChukwunanu DieiEmeka IchokuStephanie SchwoobAtish GangurdeChiedza Munochiweyi

COMPANY DESCRIPTIONHIND AGRO INDUSTRIES LIMITED (HAIL)

Provides meat slaughtering and processing services since 1994.

Located outside of Jakarta, Indonesia.

Exports internationally to Europe, Middle East, Africa, and Asia.

The company has an annual turnover in excess of $200,000,000

Hind Agro Industries Limited is the only company in the country to have the unique facilities of slaughtering the animals which have been bred and reared on strict guidelines set by the O.I.E. Paris.

Has the most modern abattoir-cum-meat processing plant.

Company also has intensive feed lot to raise calves on organic farming with natural feeds.

The source and traceability of the animals are documented from the farm to the finished product.

The company provides assistance to the farmers by supplying feed and veterinary services from the experts belonging to it. Qualified Veterinary Doctors conduct ante-mortem and post-mortem examinations on the animals procured from disease-free zones recognized by the U.P. Government’s Veterinary Department.

The Halal plant has production capacity of 400,000 metric tones (MT) of meat.

All the Plant machinery and equipments

used are sourced from Australia, New Zealand, Europe.

For its quality production, Hind Group has

received 10 consecutive APEDA awards and 3 National Productivity awards for export of excellent quality meat, from the Ministry of Commerce.

PRODUCT DESCRIPTION

PRODUCT DESCRIPTION An ``Islamic brand ``: it’s a brand that is based on the ethics and values of Islam

ZabihaThe name of God (Allah) is to be pronounced as a reminder that we do not have the right to take the animal’s life except by the permission of God to meet our need for food.

A sharp blade and skill in slaughtering is required to minimize pain and unnecessary suffering for the animal. This is accomplished by a quick cut to sever the veins and arteries of the neck of the animal, without cutting the nervous system or spinal cord. The massive bleeding makes the animal unconscious in seconds. Leaving the spinal cord intact allowing for convulsions that result from the contraction of the muscles in response to the lack of oxygen in the brain cells. This will allow for the maximum drainage of blood, carrying away in part the waste and micro-organisms, thereby improving the meat's taste, shelf-life and healthiness.

In order to ensure a high quality product, the dates and times of the slaughter are on record.

Once the meat is cut up and processed, it is packed into containers. The packaging of Halal products cannot contain any Najs*, toxic or harmful components that could contaminate the meat

HAIL has written approval to use Halal labels and logos. In order for the product to be transported, it must have the name/symbol, name of product, ingredients, weight, and date of production and special codes for tracing the product back to the source

Halal meat is stored above other meat to protect it from cross contamination

HUMAN RESOURCES MANAGEMENT

ORGANIZATIONAL

STRUCTURE

MANAGEMENT

PRODUCTION

SALES

ADMINISTRATION

MANAGEMENTPresident/MD

Vice President/Finance Director

Director of Operation

Director of Sales & Marketing

ADMINISTRATION

Administrative Assistant (4)

Operation Planner (2)

Accounting Clerk (2)

Shipping Supervisor

PRODUCTIONForeman

Line Supervisor

Consumer Supervisor

Shipping Supervisor

SALES

Sales Manager

Domestic Sales Representative (2)

International Sales Representative (2)

PROJECT TEAM The department team consists of the Director of Sales and

Marketing, Sales Manager, Consumer’s Supervisor, and Shipping Supervisor.

The Director of sales and marketing, Fiona Stevenson promotes the sale and production of Halal meat products in both countries. The sales staff will develop the personal relations with the potential importer.

Production individuals will prepare the product for the foreign market and meet country sanitary and phytosanitary measures and manage the shipping. Another task of the production team is to manage new packing operations for all Indonesian exports.

The Foreign Sales Representatives work jointly with the production staff and the Indonesian staff. The Foreign Sales Representatives will also be responsible for any travelling between the countries. The Sales Representatives will work jointly with the Director of Sales and Marketing to negotiate the contractual sales agreement and terms of foreign payments.

FACTORS CONSIDERED

Target market/customers: Muslim population, others

Intensity of rivalry among competitors; domestic and international suppliers

Ease of entry and sustainability in the market: Barriers Cost of doing business

COUNTRY ATTRACTIVENESSNigeriaPopulation: 170, 123, 740Muslims: 50% (85, 061, 870)

Growth: 2.55% Nation (2012)50% Muslims (2030)

RISKS Political stability

Corruption Terrorism threat/kidnapping

Legal/Regulatory risks NAFDAC, Customs and others

Competitive Rivalry Risk Cameroon

Financial risk Exchange rate fluctuation

ENTRY STRATEGY

DISTRIBUTORSHIP SPAR (Artee Group)

Biggest retail chain in Africa

No direct investment into Nigeria by HAIL

Minimization of risks to HAIL

Good brand name

COMPETITIVE ADVANTAGE No major competition in Nigeria (First

Mover)

Experience in product processing

World class standards certification in Halal meat production

Brand dependability and reputation

Product pricing and economies of scale

COMPETITIVE ADVANTAGE CONT’D Low cost of product sourcing and

processing

High consumer base

Easy market penetration

FINANCIALS (START UP & RUNNING COSTS)

CAPITAL COSTS ($000)    

Land 5,000Equipment 3,000Working Capital 60,510Miscellaneous 1,000TOTAL 69,510

     

ANNUAL OPERATIONS COST ($000)

Production & Processing 50,000Project Management & Labour 5,110Outsourced Services 5,400TOTAL 60,510

     

FINANCIALS CONT’D(COST ASSUMPTIONS)

COST INPUTS        

LABOUR UNIT (NO) COST ($) TOTAL COST ($)

PRODUCTIONWorkers 30 50,000 1,500,000

Foreman 1 100,000 100,000

Plant Supervisors 3 90,000 270,000

Total 34 1,870,000

MANAGEMENT

Managing Director 1 500,000 500,000

Finance Director 1 400,000 400,000

Operations Director 1 400,000 400,000

Sales & Marketing Director 1 400,000 400,000

SALES

Sales Manager 1 300,000 300,000

Domestic Sales Representative 2 120,000 240,000

International Sales Representative 2 135,000 270,000

FINANCIALS CONT’D(COST ASSUMPTIONS)

ADMINISTRATION

Administrative Assistant 4 65,000 260,000

Operation Planners 2 80,000 160,000

Accounting Clerk 2 80,000 160,000

Shipping Supervisor 1 150,000 150,000

Total 18 3,240,000

TOTAL LABOUR 52 5,110,000

         

OUTSOURCED SERVICES

Logistics 3,000,000

Accounting 1,000,000

IT 1,400,000

Total 5,400,000

GRAND TOTAL 10,510,000

FINANCIALS CONT’D(MARKETING ASSUMPTIONS)

MARKETING COSTS                      

Year1 2 3 4 5 6 7 8 9 10

SALES

Units(metric tons)120,00

0120,00

0150,00

0150,00

0200,00

0200,00

0275,00

0275,00

0320,00

0320,00

0

PRICINGMarket Price ($/unit) 910 910 925 925 925 925 935 935 935 940

Realised Price ($/unit) 892 892 907 907 907 907 916 916 916 921

                       

Total Sales ($000)

107,016

107,016

135,975

135,975

181,300

181,300

251,983

251,983

293,216

294,784

                       

FINANCIALS ($000)                      

Year1 2 3 4 5 6 7 8 9 10

SALES 107,016

107,016

135,975

135,975

181,300

181,300

251,983

251,983

293,216

294,784

COST OF GOODS SOLD 88,075 88,075 103,720 103,720 127,770 127,770 162,270 162,270 185,270 185,270Labour 1,870 1,870 1,870 1,870 1,870 1,870 1,870 1,870 1,870 1,870Outsourced Services 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400Materials 48,000 48,000 60,000 60,000 80,000 80,000 110,000 110,000 128,000 128,000Production 32,805 32,805 36,450 36,450 40,500 40,500 45,000 45,000 50,000 50,000

GROSS MARGIN 18,941 18,941 32,255 32,255 53,530 53,530 89,713 89,713 107,946 109,514(%) 18% 18% 24% 24% 30% 30% 36% 36% 37% 37%

SG&A COSTS 3,240 3,240 3,240 3,240 3,240 3,240 3,240 3,240 3,240 3,240

INCOME BEFORE TAXES 15,701 15,701 29,015 29,015 50,290 50,290 86,473 86,473 104,706 106,274Income Taxes (35%) 5,495 5,495 10,155 10,155 17,602 17,602 30,265 30,265 36,647 37,196

NET INCOME -69,510 10,206 10,206 18,860 18,860 32,689 32,689 56,207 56,207 68,059 69,078(%) 10% 10% 14% 14% 18% 18% 22% 22% 23% 23%

Cumulative Income -69,510 10,206 20,411 39,271 58,131 90,819 123,508 179,715 235,922 303,981 373,059

Capital Costs 69,510Payback Period (Yrs) 4.69Average Net Income 37,306Average Return on Investment 54%IRR 31%NPV 113,239