INDEX

SR. NO. TOPIC PAGE

NO.

1.0 EXECUTIVE SUMMARY 6

2.0 COMPANY SUMMARY 8

3.0 MARKET SCENARIO 10

4.0 MARKETING PLAN 11

5.0 PRODUCTS 13

6.0 MARKETING STRATEGY 22

7.0 OPERATIONAL STRATEGY 23

8.0 SWOT 24

9.0 FINANCIAL PLAN 26

10.0 COMPETITORS LIST 33
11.0 BIBLIOGRAPHY 34
..... Planting Solutions
AMLOKIA BOTANICALS

Executive Summary

The proposed Business Plan is of growing Medicinal plants and fulfilling various needs
of industry and others. Amlokia Botanicals is a farm dedicated to the production of
Medicinal Botanical perennials. It is working hard to become a leading producer of
Medicinal plants for the natural supplement industry as well as plant nurseries.

It has identified three key areas that will be instrumental in their areas; the first is the
implementation of strict financial controls. By having proper controls, production
capacity can be maximized. Second will be never ending pursuit of the industrys highest
concentration levels of medicinal ingredient in each plant. The third key is the
recognition and implementation of the philosophy that 100% customer satisfaction is
required to ensure a profitable business.

Profits are byproduct of satisfying customers not the other way round.

Amlokia Botanicals is a 10 acre farm that concentrates on growing botanical medicinal

plants. It has chosen six plant species that have significant market demand and well
suited for the growth in climatic conditions of Bangladesh. It will feature Asphodelaceae,
Apocynaceae, Lamiaceae, Solanaceae, Liliaceae family species initially; the species will
include Aloe Vera, Sarpagandha, Tulsi, Neem, Amloki and Asparagas (Sotomuli)
respectively.

Keys to Success

Amlokia Botanicals will adhere to three keys that will instrumental in its success

Strict Financial controls

The never ending pursuit of the highest concentration of botanicals in every plant.
 Ensuring that all customers needs are met and they are satisfied with the
purchased products.

Mission

It is Amlokia Botanicals mission to become the leading provider of medicinal botanical

perennials to the health and vitamin industry. This will accomplished by providing quality
plants at fair prices while exceeding customers expectations.

Objectives

Amlokia Botanicals has identified several objectives for the business;

Become a leading supplier of medicinal plants to health and vitamin industry.

Reach the point of sustainable profitability.

Enjoy work while making a good living.

Company Summary

Name: AMLOKIA BOTANICALS

Type: PRIVATE LIMITED COMPANY

PARTNER PROPRIETERSHIP

Logo:

Location:

Amlokia Botanicals is a farm based at Pubail in Gazipur district in the Division of Dhaka.

Area: 10 acre (4 hectares) of land.

Product: MEDICINAL PLANTS

Company History

The farm of Amlokia Botanicals has been in existence five years from now, initially used
to grow traditional grains but now used for profit producing business. It is started by Mr.
Kamaluddin. Amlokia is a Business Administration graduate with specialization in
Operations Management. He also possess a background of Botany and Plant Physiology.
Amlokia Botanicals is a dream project of Amlokia which began with his intense passion
and love for Plant Business. Amlokia Botanicals is a farm based at Pubail in Gazipur
district situated at 5 kms. from BARI. It grows variety of botanical medicinal plants.

Amlokia Botanicals has chosen Gazipur district because of the climatic conditions and
the soil that suits the best for growing botanical medicinal plants. The soil here is made
up of Basalt rocks which is entirely black. Also the water supply here is ample to provide
good irrigation facilities to the plants.

MANAGEMENT TEAM:
Amlokia is a privately held Medicinal Planting. Mr. Kmalauddin, the founder of
AMLOKIA, is the majority owner. Partner 1, Partner 2, Partner 3, Partner 4, Partner 5,
and Partner 6 are the co-founders as well as partners of the Firm. AMLOKIA, being
partnership firm in nature, requires a simple organizational structure.

Ethics:

Every business has some sort of impact, be it negative or positive, on its surrounding
environment. Reducing the impact depends on how the firm handles the situation.
Maintaining a proper sense of responsibility is key to the firms success. Ensuring that the
business does not harm the environment or the people involved in it is very important.
The company should always ensure that it products and services are up to grade.
We will ensure that it uses organic and hygienic products for cultivation. Proper care will
be taken to dispose of all non-biodegradable materials with proper methods. Our first and
foremost goal will be keep the environment as clean and healthy as possible.

Market

Amlokia Botanicals has three distinct customers: Supplement Companies, Processors of

Botanicals for supplement companies and Nurseries the resell plants. The first two
customers purchase the plants for use in their products which they ultimately sell to their
end consumers.

An enumeration of the WHO from the late 1970s listed 21 000 medicinal species (Penso
1980). However, in China alone 4 941 of 26 092 native species are used as drugs in
Chinese traditional medicine (Duke and Ayensu 1985), an astonishing 18.9 percent. If this
proportion is calculated for other well-known medicinal floras and then applied to the
global total of 422 000 flowering plant species (Bramwell 2002; Govaert 2001), it can be
estimated that the number of plant species used for medicinal purposes is more than 50
000.

The largest global markets for MAPs are China, France, Germany, Italy, Japan, Spain, the
UK and the US. Japan has the highest per capita consumption of botanical medicines in
the world (Laird 1999).

The International Council for Medicinal and Aromatic Plants expects world growth
during 2001 and 2002 to be approximately 8-10 per cent a year (Srivastava 2000).

In 1999, the world market for herbal remedies was US$19.4 billion, with Europe in the
lead (US$6.7 billion), followed by Asia (US$5.1 billion), North America (US$4.0
billion), Japan (US$2.2 billion) and the rest of the world (US$1.4 billion) (Laird and
Pierce 2002).

India is a major exporter of raw MAPs and processed plant-based drugs. Exports of crude
drugs from India in 1994-95 were valued at US$53,219 million and of essential oils
US$13,250 million (Lambert et al. 1997:31).

Overall sales of botanical medicine products in China in 1995 were estimated at US$5
billion (Laird 1999). The botanical medicine market in Japan in 1996 was estimated at
US$2.4 billion.
The export market for medicinal plants appears to be growing faster than the Indian
domestic market, especially with encouraging magnitudes resulting from contract
farming of species in demand in foreign markets. Exports of Ayurvedic medicines have
reached a value of 100 million dollars a year (about 10% the value of the entire
Ayurvedic industry in Bangladesh). About 60% of this is crude herbs (to be manufactured
into products outside India), about 30% is finished product shipped abroad for direct sales
to consumers, and the remaining 10% is partially prepared products to be finished in the
foreign countries.

In contrast to the hype attached to individual species in demand from export markets, the
domestic market also has a huge untapped potential for more than five hundred species of
medicinal plants. The domestic market comprises of the formal industrial or
pharmaceutical demand, and the informal sector of traditional healers.

Status of medicinal plants in Bangladesh

According to a December 2003 study by the World Bank's South Asia Enterprise
Development Facility and Intercooperation, a Swiss development organization,
Bangladesh's medicinal plant market is worth US$14 million each year at wholesale
some 17,000 tonnes of final product.

The report predicted demand for imported raw materials would increase by US$4.9
million within five years. But at present, medicinal plants are not commercially farmed in
Bangladesh, and are only used when gathered from the wild.

About 500 medicinal plants have been reported to occur in Bangladesh.

Almost 80% of rural populations are dependent on medicinal plants for their
primary health care.

The local people conserve traditional knowledge through their experience and
practices, which is handed down orally without any documentation.

The over exploitation of wild medicinal plants has become a threat to its
extinction.

In Bangladesh there are no systematic cultivation process of conservation

strategies about medicinal plants.
 There is no government policy or rules and regulations about the medicinal plants
cultivation conservation and marketing.

There are almost 422 herbal medicinal companies using medicinal plants as raw
materials mostly by importing from abroad

Marketing plan

The marketing plan would help us to design a right path to start and proceed to achieve
our short term purpose and long term goals; it will help us with basic guidelines i.e. For
whom we are designing our product or service (market segmentation), and identifying
those segments that are more potential and profitable to the business and what that
product or service should mean to those in the marketplace (Market Positioning).

Market Segmentation:

Initially we would target local supplement companies and nurseries within a boundary.
A network would be setup by the company using the existing records and databases of the
heath and supplement companies.

Based on the geographies, initially we will focus on health supplement companies and
plant nurseries. From the variables like location, ownership, type of the industry i.e.
distributor, supplier or manufacturer we can have segments of customers. Based on which
we can focus on each group of customers separately.

Amlokia botanicals has identified three main customer groups: Supplement companies,
Botanical processors and other nurseries. The customer segments are distinct enough to
be able to target each one differently. It will be able to serve the industry by leveraging
their competitive edge of healthy and potent plants.

Health Supplement Companies, these customers group manufactures botanical

supplement for their own label products. The companies purchase these plants and extract
the active ingredients and transform them into sellable products for their own brand.
There are many companies that operate in this market and Vitamin Industry needs active
ingredients of medicinal plants to market and sell their products. As a raw material they
are mostly depend upon Medicinal plants. Thus we serve as a supplier of medicinal plants
to them.
 Small plant nurseries procure plants to sell them directly. They usually sell saplings of the
plants. Due to intense awareness related to health people nowadays prefer keeping
medicinal plants rather than ornamental plants. Because of these reasons Plant nurseries
also procure medicinal plant saplings which will be provided by us.

From second year we will have separate group of professionals who would focus only on
Processor companies. These customers purchase the plants, extract the botanicals and
either sell the concentrated botanicals to the end producers or they produce the
supplement and sell the end product to other companies for their private label products.
These group of customers will provide us maximum sale hence, would focus on them
separately.

Targeting:

We recognized that some segments are not only different, but better than others for the
product. As we are a startup company, we right now do not intend to serve all the
segments of the market we would initially focused/target on Health and Supplement
Companies and Plant Nurseries.

From second year we will have separate group of professionals who would focus only on
Processor companies i.e. companies which imports medicinal plants process on them,
extract active ingredients and sell them for the label of their own products or sell these
active ingredients directly to the supplement companies. These group of customers will
provide us maximum sale hence, would focus on them separately.
.
Market positioning:

Positioning involves analyzing each market segment and developing a distinct value
proposition for each segment. While there are many possible marketing positions, most
would fit into one of the following category

Value Proposition

a) Positioning on benefits
Strongly related to positioning on product features. We positioned on the benefits that the
Customer gets by taking our products like the reasons,
Our product will go a long way in providing medicinal plants which are important and
which has value in the market at a cheaper rate.

Provides reliable back-up and accuracy.

Enables quality and disease free plants.

b) Product class association this positioning is related to high class segment. Here the
products will be positioned as a quality symbol along with customer satisfaction.

MARKETING STRATEGY:
Amlokia will position itself as an upscale Botanical medicine Plants.
Amlokia will use advertising as its main source of promotion. Ads placed in Newspapers
Weekly, pamphlets distribution will help build customer awareness.

Products

Amlokia Botanicals is a 10 acre farm that concentrates on growing botanical medicinal

plants. It has chosen six plant species that have significant market demand and well
suited for the growth in climatic conditions of Bangladesh. It will feature Asphodelaceae,
Apocynaceae, Lamiaceae, Solanaceae, Liliaceae family species initially; the species will
include Aloe Vera, Sarpagandha, Tulsi, Neem, Amloki and Asparagas (Sotomuli)
respectively.

Aloe Vera (Ghritakumari )

Common name: Aloe vera, Medicinal aloe, Burn plant

Bangla: Ghritakumari
Hindi: Gheekumari
Botanical name: Aloe vera Family: Asphodelaceae (Aloe family)

Synonyms: Aloe barbadensis, Aloe indica, Aloe vulgaris

Aloe, a popular houseplant, has a long history as a multipurpose folk remedy. Commonly
known as Aloe Vera, the plant can be snapped off and placed on cuts and burns for
immediate relief. Aloe vera is a clump forming succulent whose fleshy gray-green leaves
are arranged in a vase shaped rosette atop a very short stem. The leaves are up to 18 in
long and 2 in wide at the base, slightly grooved on top, and terminating in a sharp point.
The leaves have small grayish teeth on the margins. The main rosette gets up to about 2 ft
high, and the plant continually produces little offset rosettes. In winter and spring,
medicinal aloe bears small tubular yellow flowers on branched stalks up to 3 ft tall. The
real Aloe Vera has yellow flowers, but many of the clones available have orange flowers.
Although Aloe Vera is a member of the Lily family, it is very-cactus like in its
characteristics.

Medicinal uses: Aloe Vera contains over 20 minerals, all of which are essential to the
human body. The human body requires 22 amino acids for good health -- eight of which
are called "essential" because the body cannot fabricate them. Aloe Vera contains all of
these eight essential amino acids, and 11 of the 14 "secondary" amino acids. Aloe Vera
has Vitamins A, B1, B2, B6, B12, C and E. In India, Aloe vera is believed to help in
sustaining youth, due to its positive effects on the skin. Hence it is called ghee kunvar or
ghee kumaari.
Cultivation method: Usually it is propagated through vegetative organs (rhizome).
Sarpagandha

Common name: Snakeroot, Insanity herb

Bnagla: Sarpagandha
Hindi: Sarpagandha
Botanical name: Rauvolfia serpentina Family: Apocynaceae (oleander family)
Synonyms: Rauwolfia serpentina

Sarpagandha is a famous tranquilizer and antipsychotic herb of Bangladesh for the

treatment of paranoia and schizophrenia, as well as a substance that controls
hypertension. Sarpagandha is an erect, evergreen shrub, merely 15 to 45 cm high. Its
leaves are large, in whorls of three - dark green above and pale green below. The flowers
are white, pinkish or red, occurring in whorls. Its fruit are tiny, oval, fleshy which turn a
shiny purple-black when ripe. It is the roots of the plant that are mainly used for
medicinal purposes.

Medicinal uses: Although this plant was well known in Bangladesh, westerners paid no
attention to it until an Indian physician wrote an article on rauvolfia in 1943. Because of
the drug's noted sedative effects, it was used to treat over a million Indians period in the
1940s for high blood pressure. After a U.S. physician named Wilkins demonstrated the
positive effects of reserpine (1952), the plant made front page news. This drug rapidly
replaced electric shock and lobotomy as treatments for certain types of mental illness.
Moreover, knowledge about the chemistry of this natural plant stimulated the synthesis of
other similar alkaloids that are now used as major tranquilizers.
Cultivation method: It is becoming a threatened species. Seeds of this plant are used for
propagation. Now a day, in foreign countries propagated it through root, cutting and in
vitro systems. Mature and dried seeds are possible to store up to six months. Before
sowing seeds are pretreated by soaking water for 24 hours. Germination commences
within 3-4 weeks. Five to six months old seedlings are better for transplantation.
Tulsi

Common name: Holy basil,

Bangla:Tulshi
Hindi: Tulsi
Botanical name: Ocimum sanctum Family: Lamiaceae (Mint family)

Tulsi (Ocimum sanctum) is a widely grown, sacred plant of Bangladesh. Hindus grow
Tulsi as a religious plant in their homes, temples and their farms. They use Tulsi leaves in
routine worship. Tulsi, grown as a pot plant, is found in almost every traditional Hindu
house. The natural habitat of Tulsi varies from sea level to an altitude of 2000 m. It is
found growing naturally in moist soil nearly all over the globe. Tulsi is a branched,
fragrant and erect herb having hair all over. It attains a height of about 75 to 90 cm when
mature. Its leaves are nearly round and up to 5 cm long with the margin being entire or
toothed. These are aromatic because of the presence of a kind of scented oil in them. A
variety with green leaves is called Shri Tulsi and one with reddish leaves is called
Krishna Tulsi. Tulsi flowers are small having purple to reddish color, present in small
compact clusters on cylindrical spikes. The fruits are small and the seeds yellow to
reddish in color.

Medicinal uses: Leaf juice is very useful for coughs, bronchitis and diarrhea especially
for babies. It also used to cure asthma, stomachic problems, liver, skin diseases, eczema,
rheumatism, anthelmintic, dyspepsia and aphrodisiac.
Cultivation method: Mainly seeds are used for propagation. Mature seeds are collected
and after drying it stored in airtight container. Before sowing, seeds are pretreated by
soaking in water for 5-6 hours. Usually germination commences within 5-6 days. In this
case 6-8 weeks old seedlings are suitable for transplantation.
NEEM

Common name : Neem

Botanical name: Azadirachta indica Family: Meliaceae

Neem is a fast-growing tree that can reach a height of 15-20 m (about 50-65 feet), rarely
to 35-40 m (115-131 feet). It is evergreen, but in severe drought it may shed most or
nearly all of its leaves. The branches are wide spread. The fairly dense crown is roundish
or oval and may reach the diameter of 15-20 m in old, free-standing specimens and grows
well all over the country.

Medicinal uses: Leaves, bark of stem and roots are used as medicine. For teeth it is very
effective, especially for brush. Decoction of leaves is used for skin diseases and ham
(virus disease). Powdered of bark is used as febrifuge. The oil also used for various skin
disease, malaria and anthelmintic. As medicinal plant it is used hugely all over the world.

Cultivation method: June July is better time for harvest of seeds. After squeezed out of
seeds from ripe fruits, stored it at a shady place for 3-4 days. Then seeds are washed in
fresh water 2-3 times and dried it in sunlight for storing. It is to be mentioned that these
seeds are not possible to store beds. One- two years old seedlings are better to transplant
in the field.

Amloki:
Common names of this tree include amalaka in Sanskrit, amla in Hindi, amlaki ()
in Bengali language.

Botanical name: Phyllanthus emblica Family: Euphorbiaceae

Amloki is a moderate sized deciduous tree. Grows well all over the country. Height of
this tree is around 20-30 feet with much branched. Leaves feathery, leaflets pinnately
arranged small, narrow, linear and light green.

Medicinal uses: Fruits are edible and it is one of the richest sources of vitaminC. Bark
of stem and riits is used assess medicine. Fruit juice is used as fever and coughs. The
dried fruits are also used for writing inks and hair dyes.
Cultivation method: Squeezed out of deeds from ripe fruits, pretreated in cold water for
7 days and after dried it stored in airtight containers. March- April is best time for
sowing. Before sowing pretreated of seeds in slight hot water and then put it in nursery
beds. Usually germination commences within 2-3 weeks. One & half-two years old
seedlings are better to transplant in field. The plants can be raised also from cutting.

Sotomuli

Common name: Satawari, Wild Asparagus

Hindi: satawari, bojhidan, shatavir
Bengali: Satamuli, Satamul
Urdu: Satawar, Shaqaqul misri
Botanical name: Asparagus racemosus Family: Liliaceae (Lily family)

Synonyms: Asparagus volubilis

Satawari is a woody climber growing to 1-2 m in height, with leaves like pine needles,
small and uniform and the flowers white, in small spikes. It contains adventitious root
system with tuberous roots. Stems are climbing, branched, up to 2 m; branches usually
distinctly striate-ridged. Leaves are just modified stems, called cladodes. Branches
contain spines on them. Inflorescences developed after cladodes, axillaries, each a many-
flowered raceme or panicle 1-4 cm. Pedicel 1.5-3 mm, slender, articulate at middle.
Flowers are white with a pink tinge, 2-3 mm, bell-shaped with 6 petals. Stamens equal,
ca. 0.7 mm; anthers yellow, minute. Within India, it is found growing wild in tropical and
sub-tropical parts of Bangladesh.
Medicinal uses: In Ayurvedic medicine, the root of Satavari is used in the form of juice,
paste, decoction and powder to treat intrinsic haemorrhage, diarrhoea, piles, hoarseness
 of voice, cough, arthritis, poisoning, diseases of female genital tract, erysipelas, fever, as
aphrodisiac and as rejuvinative.
Cultivation method: Seed is the best way for its propagation. It grows well in sandy-
loam soils. Before sowing, seeds are pretreated by soaking on cold water for 24 hours.
Germination commences within 10-15 days and its percentage is around 70-80. Two to
three months old seedlings are better to transplantation to the field.

Price:

The objective of pricing for the first year is survival and then to eventually increases the
market share. Pricing depends on the customer psychology and what they perceive the price
should be. A penetrating pricing strategy is adopted by introducing our product at a low price
compared to our competitors initially to increase the customer base. After analyzing the
competitors offerings for the entire package the service would be offered according to
market demand compared to products offered by the competitors so as to obtain a
differentiation in pricing and move close to customers expectations.

We also adopt discount pricing strategy for bulk deals and for frequent customers to
encourage them to buy more. The pricing details are shown in the financial plan of the
company.

Place:

Right places are to be chosen to increase the visibility of the product as it increases the
awareness in potential customers

Location strategy: Initially targeting Dhaka region, later going to different states
initializing in their key cities and areas.

Accessible office location in commercial area.

Promotion and Marketing:

Personally approach supplement companies and local nurseries to give presentations,

samples and hand-outs.

Web-site: Low cost and easy networking.

Provide Brochures of companies and hand out containing importance of various
medicinal plants

The product would be promoted to Health & Supplement Companies, Processors and
Nurseries.

Initially personal meetings and later stages presentations by representatives will be

carried out.
MANAGEMENT(ORGANIZATIONAL STRUCTURE ):
AMLOKIA is a partnership firm of total six partners. One is active partner
and five are dormant partners.Kamaluddin is active partner who is running the
business. He is from Business Administration background and one assistant is appointed
to assist customers as well as handling other business activities .

AMLOKIA

PARTNER PARTNER PARTNER PARTNER PARTNER PARTNER

1 2 3 4 5 6

Operations:

The Operational activity mainly will include following stages;

Bowing & Planting:

Here the seeds of various plants will be sowed and some of plants will be planted.
Proper care, nourishing activities and regulation of growth is carried. Proper, gradual and
required amount of water, manure and pesticides are supplied to get desired quality of
plant.

Growth & Care:

Proper and desired growth of plants is possible only if proper care and good nourishment
facilities are available. Timely manure, pesticidal and insecticidal activities will be
provided to plants. Ample water supply is necessity hence; special care will be taken to
provide it. Special facilities like green shed will be provided to plants to save them from
more exposure to sun, if not can hamper their growth and other normal metabolism.
Cutting and Storage:

After the growth the cutting will be done in hygienic conditions. Proper care will be taken
not to affect the normal metabolism of the plants. After cutting process, the plants will not
be kept in inventory for more time but will immediately distribute to the customers
ASAP.

Distribution:

The distribution facilities will be taken care by the Customer itself. It will be mentioned
in the Purchase order that Amlokia Botanicals will be responsible only up to the factory
(i.e. farm) gate, later its the responsibility lies with the customer regarding the type of
distribution, place at which to be distributed and the mode of transportation.

SWOT:

Strengths:
Only Medicinal Plants Supplier in Dhaka area.
Direct benefit to nurseries, since they are getting saplings at much cheaper
rate.
Individual dealing with each customer i.e. managing separate account.

Quality Assured as each medicinal plant is treated individually.

Immense exposure to e-advertising benefiting all through the interface.
Complete Data Base Management.
Cash less benefit.

Weakness:

Acceptance among public

Detailing in record keeping
Less investment:
As we are starting with less investment, it will take time to expand
business and to reach the huge number of target customers.
 Time needed to set up 24*7 customer care centre to help the customers
:

Opportunities:

Less competition
Untapped potential
Lack of use and awareness about existing products.
Low competition.
Existing Suppliers focuses more on selling no matter to whom.
Rising disposable income.

Threats:

Since its a farm business, depends on Environment and Climate. Any

abnormal change can affect drastically.
Maintenance of compliance by the data handlers.
Sharing of data may give rise, unethical use of data for different purpose
for wealth gain purpose.
The new entrance on the same line.
The existing record keeping/ data base management firm.
Other investors with big pockets are entering into the market.

CONTINGENCY PLANNING:
This plan is just that, a plan dont always work out and we have to be ready
with the likelihood that Amlokia wont make good on the projections outlined in this
plan. We also have to prepare ourselves for overwhelming success. The following are
some possible scenarios:

Revenues exceed projections:

 A serious increase in revenues over projection will give us an opportunity to
increase our market budget above the allocated. We will be able to provide more
equipment and possibly add an additional location.

Revenues miss projections:

We have to be prepared for this possibility. If we miss our projections, we
simply have to redouble our marketing efforts. The danger in this scenario is that the first
reaction missed projections is to decrease spending. We cant do that! We have to get our
message out to the target customer and we cant do that if we stop spending on the
marketing.

Financial Planning:

START UP EXPENSES:

Buildings/Real Estate
Construction 205000
Fencing 20000

Total Buildings/Real Estate 225000

Capital Equipment List

Furniture 30000
Computers 50000
Printer 8000
Software Development 200000
Generator 80000
Telephone 1000
Total Capital Equipment 369000

Administration 1000

Advertising and Promotional Expenses

Advertising 10000
Web page maintenance 100000
Printing (letterheads, brochures, visiting cards) 20000
Travel/Entertainment 2000
Other/additional categories 5000

Total Advertising/Promotional Expenses 137000

Working capital 200000

Reserve for Contingencies 200000

Summary Statement

Sources of Capital
Owners' and other investments 1000000
Bank loans 500000
Other loans
Total Source of Funds 1500000

Startup Expenses
Buildings/real estate 225000
Admin 1000
Capital equipment 369000
Advertising/promotional expenses 137000
Contingency fund 200000
Working capital 200000
Total Startup Expenses 1132000

BREAK EVEN ANALYSIS:

Break-Even Analysis

Year 1 2 3
Net Profit 3.67 6.82 12.67
Total Investment 12 lacks
From projected Profits, the investment will recover in 3 years.
Earnings in 3 years Tk. 12.67 lack
Earnings per month = 12.67/12
= 01.05 lacks

Remainder investment from Year 2 = 12 6.82

= 5.82 lacks

Months in year 3 to recover remainder investment = 5.82/1.05

= 4.9 months

Hence, Break Even point will reach at 2 months & 5 months

BALANCE SHEET:

(in Tk. Lakhs) Opening Projected

Liabilities
Capital investment 7 7
Loan 5 4
Accounts Payable 0 0.3

Total 12 11.3

Assets
Land 2.25 2.475
Machinery 3.69 3.321
Furniture 3 2.70
Accounts receivable 0 2
Cash & Bank balance 3.06 0.804

Total 12 11.3
PROJECTED INCOME STATEMENT:
Figures in Tk. Lakhs 1 2 3
Income
Sales 15.00 22.00 35.00

Total 15.00 22.00 35.00

Cost of Production 2.50 3.00 6.00

Gross Income 12.50 19.00 29.00

Fixed costs
Insurance 0.50 0.50 0.50
Advertising and 1.37 1.75 2.50
Promotion
Stationary 0.10 0.12 0.25
Employee salaries 3.52 4.95 5.45
principal amount 1.00 1.00 1.00
repayment

Total 6.49 8.32 9.70

Variable Costs
Office Overheads 0.10 0.25 0.50
Miscellaneous 0.05 0.15 0.25

Total 0.15 0.40 0.75

Total Costs 6.64 8.72 10.45

Cash Flow from 5.86 10.28 18.56

Operations

Less Depreciation (@ 10% of capital) 0.37 0.33 0.30

EBIT 5.49 9.95 18.26

Interest @ 5% 0.25 0.20 0.15

EBT 5.24 9.75 18.11

Tax Payment 1.57 2.92 5.43

Net Profit 3.67 6.82 12.67

PROFIT & LOSS ACCOUNT:

(Figures is Tk. Lakhs) 1 2 3

Sales 15.00 22.00 35.00

Cost of production 2.50 3.00 6.00

Gross Profit 12.50 19.00 29.00

Expenses 6.64 8.72 10.45

Depreciation 0.37 0.33 0.30

Sub Total Expenses 7.01 9.05 10.75

EBIT 5.49 9.95 18.26

Interest 0.25 0.20 0.15

EBT 5.24 9.75 18.11

Tax 1.57 2.92 5.43

Net Profit 3.67 6.82 12.67

CASH FLOW STATEMENT:

Figures in Tk. Lakhs)

1 2 3
Income
Sales 10.00 18.00 27.00
Accounts receivables (20%) 0.00 2.00 4.00
Total 10.00 20.00 31.00

Cost of production 2.50 3.00 6.00

Cash received 7.50 17.00 25.00

Expenditures
Fixed Cost 6.49 8.32 9.70
Variable cost 0.15 0.40 0.75
Accounts Payable(10% on cost of 0.3 0.25 0.6
products)

Cash Spent 6.94 8.972 11.045

Cash Flow 0.56 8.028 13.955

Competition:

Competitors List:

1. BRAC

Bangladesh Rural Advancement Committee (BRAC) is one of the largest Non

Government Organisations in Bangladesh. They have different programs such as
tree planting, botanical farms, gardening vendors, etc. However all these programs
are on a small scale basis and are mainly done for environmental or development
purposes. They are not done with profit or return of investment in mind. As the
single largest NGO is not competitor in this field it can be assumed that there are no
other notable competitors in the country.

2. Neighbor country India

India is one of the biggest exporters of medicinal plant products in Asia. It exports
large quantities of its products to numerous countries worldwide. Competing with
India will require us to have competitive prices and a different sort of edge that
India cannot provide. This will require extensive research.

3. Small Nurseries

Small nurseries have a large collection of medicinal plants. However the scale of
space and equipment required for large scale production is not available to them.
Their expertise is limited by the limitations in funds.

4. Rural people who are cultivate in their home ground.

Rural population grows products that are demanded for the mass market. They
expect annual return on their investments. Medicinal plants require specific time,
care and money which are very expensive commodities for the rural population. The
time for return on investment is also very long for their tastes.

Bibliography:

http://www.mapbd.com
flowersofindia.net
herbsnspicesinfo.com
medicinalplants.in
 krishiworld.com
bplans.com
Medicinal plants & Ethnobotany