Business Development Plan for Installation and Operations of Portable Stone Crusher

By Mani Ram Paudel EMBA ACE institute of management 24th January, 2012

1. Company Overview
1. Company Name:- Bheri-Rapti Aggregate Industries Private Limited (BR Aggregate Industries Pvt.Ltd. 2. Address:- Karkando, Surkhet Road Nepalgunj, Banke 3. Promoters:- Four Individuals 4. Equity Capital:- NRs. 40,000,000.00

1. Company Overview Contd..

5. Proposed Business: Production and Supply of High Quality Construction Aggregates by using Portable Stone Crusher. 6. Vision Statement: To become a leading construction aggregate producer and distributor in Mid-Western and Far-Western Nepal."

1. Company Overview Contd

7. Mission Statement: "To contribute to infrastructure development by producing high quality stone aggregate, generate employment opportunities to the Mid Western and Far Western Terai region of Nepal, minimize the adverse environmental impacts by using high standard technology during mining and crushing of stone and become a stakeholder of nation building."

1. Company Overview Contd

8. Objectives Produce high quality aggregate for construction works. Generate employment opportunities at local level. Minimize adverse environmental impacts by using high standard technology. Increase wealth on share holders' equity.

1. Company Overview Contd

9. Value Proposition We are committed to quality and cost at your site, we are BR aggregates"

2. Environment Assessment
Political Economic Socio-Cultural Legal Technology Health, Environment

3. Products
Concrete Aggregate (10mm 40mm) Stone Chips (5mm 10mm) Stone Dust (below 5mm)

4. Market
Overall Market Target Market Customers

5. Competition
Competitor Estimated Market Share

6. Company Strategy
Focused Market Infrastructure Projects Land Development and Town Planning Building Builders

7. Production and Operations

Pre Operating Activities Location Resources Process Repair and Maintenance Capacity Utilization Human Resource Policies Sales Forecast

8. Marketing Plan
Marketing Strategy Price: Prevailing Market Price, assumed 10 percent increase each year Product: Construction Aggregate Promotion: Relationship with key buyers Place: Banke and Bardia. Expansion to Dang, Surkhet and Kailali. Marketing Budget: Includes Guest Entertainment, Gifts and Donations

9. Financial Plan
Key financial assumptions Sales revenue (prevailing market price) Production capacity utilization Interest Rate Depreciation Income Tax Receivables and Payables

Projected Balance Sheet

Figures in ,000
1st Equity Capital Long Term Loan 40,000 40,000 2nd 40,000 16,220.77 3rd 40,000 -4th 40,000 -5th 40,000 --

Retained Earnings
Fixed Assets Current Assets Current Liabilities

10,579.23
57,710.42 41,662.51 8,793.70

35,787.53
57,276.78 57,313.78 22,582.25

60,951.57
48,364.46 106,947.02 54,359.91

80,857.27
40,738.11 159,739.82 79,620.66

105,340.06
34,199.22 208,931.15 97,790.31

Projected Income Statement

in NRs. 000
Year Revenue Direct Expenses 1st 196,353.22 157,586.00 2nd 267,545.96 199,278.00 3rd 350,056.38 257,989.87 4th 387,080.41 283,374.00 5th 432,587.44 314,638.50

Gross Profit
Other Income Profit After Tax

38,767.22
-10,579.23

68,267.96
-29,656.83

92,066.51
3,500.00 50,328.09

103,706.41
14,000.00 66,352.33

117,948.94
22,400.00 81,609.29

Financial Plan Cont.

Break Even Point BEP 27.94%
33.44%, Increasing the cost of inputs by 15% 43.82%, Decreasing the sales revenue by 15% Payback period: 2 years and 3 months NPV @ 12%: 165,473 thousands IRR: 72.40%

10. Organizations and Management

Organization

Managing Director

Operations Manager

Finance and Admin Manager

Engineering Manager

Marketing Manager

Shift Supervisors Operators

Accountant Office Assistant

Drivers

Driver
Peon

Maintenance Staff

Marketing Supervisor

10. Organizations and Management Contd..

Equity Position Deal Structure

11. Critical Risk and Contingencies

Internal External

12. Project Highlights

Total Project Cost Fixed Capital Investment Working Capital Investment Long Term Loan Short Term Loan Project Payback Period Internal Rate of Return Net Present Value @ 12% Loan Grace period Estimated Interest Rates Long Term Loans Short Term Loans Weighted Average Cost of Capital Break Even Point 80,606 73,710 6,896 36,855 3,448 2 years 3 month 72.40% 165,473 6 months 13% 11% 17.53% 27.94%

 Conclusion
Realistic Highly Feasible Profitable

THANKS !!!