Lucrative Business Plan For Garri Production Facility In Nigeria 63205l

Executive Summary Koko Quality Garri Processing Ventures is a business that has been ed under the Corporate Affairs Commission (CAC) and also legally licensed by the National Agency for Food Drug istration and Control (NAFDAC) here in Ogun State. We have also acquired the necessary licenses needed to run a plant without running afoul of the law here in Ogun State. Our aim of starting this business is to ensure that our clients both domestic and international get processed garri of the finest quality. We intend to process for sale white garri (Ijebu and normal) and yellow garri so as to be able to cater to our teeming customers. We know how vital it is to be located in a place that is convenient for both our customers and employees. Our garri processing plant is therefore located at No. 20 Awolowo Street, a conspicuous area and close to the road, which makes the location very strategic for our suppliers and distributors as well as our customers. This fact alone we know is enough to make us become the leading brand that we hope to become in the industry. Due to our desire to attain and retain the leadership position amongst our peers in the industry, we intend to pursue excellence both in the processing and delivery of our processed garri to customers. Due to this fact we intend to hire and train only the best employees who will be able to deliver our vision and communicate our brand to our existing and potential customers. We also know how valuable our customers are to us and so we intend to treat them right by offering them excellent customer service of a standard never seen before in this industry. Our clients will be able to reach us physically and even online as we will be available through all avenues to be able to attend to their inquiries, orders, suggestions and complaints. Our telephone number and email address are: 08038244910 and [email protected].

Koko Quality Garri Processing Venture is owned and managed by: 1. Name: MADUABUCHI CHIKA Function: Managing Director. Relevant Qualification: B.SC in Agro Economics from the University of Harvard and is presently running an MBA from the University of oxford. Address: Plot 10 Obioma Street, sunlight estate, Rivers state. 2. Name: JOB VICTOR Function: Manager. Relevant Qualification: B.SC in Business management from the University of Nigeria, Nsukka. Address: No. 6 Avilla Avenue, Badagry, Lagos. 3. Name: KALU UMUNNA IFEANYI Function: Marketing and sales executive Relevant Qualification: BA in Banking and finance UNEC. Address: No. 14 university road. And other technical staff carrying out non istrative functions. Our Garri production company seeks to create about fifty (50) job opportunities for the overpopulated workforce of Ogun state. Our introductory financial details can be summarized below: 1. Start- up capital (a) Investment (Equipment, machinery and others) = N3,320,000 (b) Working Capital = N1,088,300 Total = N4, 408,300 2. Source of Capital (a) Owners capital = N3,000,000 (b) Donations/grants = None

(c) Bank loan = N1,408,000 Total = N4, 408,300 3. Profitability (a) Year 1 = N4,250,380 (b) Year 2 = N10,960,890 (c) Year 3 = N19,550,860 4. Level of liquidity (a) Year 1 = N4,980,550 (b) Year 2 = N12,350,690 (c) Year 3 = N21,960,180

CHAPTER TWO 2.1 BACKGROUND OF THE COMPANY Cassava, the raw material used to make garri is a source of food to nearly three quarter of the world population. The crop is regarded as a staple diet in most developing countries in the world, and is ranked the third after rice and maize. Cassava is popular because it can grow even the poorest conditions (poor soil and inadequate rainfall). Nigeria is the largest producer of Cassava in Africa; producing over 41 million metric tons per annum, followed closely by the Democratic Republic of Congo. Most Cassava used in Nigeria are grown in the Southern parts of the country (South West, South- south, and South East) and in the Middle Belt and are mostly used to meet domestic demands within the country. Globally however, Thailand is the largest producer of this crop as they produce and export cassava products worth over $20 billion annually. This therefore makes Garri one of the major products from processed cassava the staple food for almost all Nigerians, as about 75% of Cassava is processed into Garri. According to statistics, about 130 million people – both in rural and urban areas – consume 12 million tons of garri annually. This is the reason why most entrepreneurs are going into the garri processing business especially as this product is recession proof. The recent economic downturn in the country has seen more and more people turning to Garri. According to reports, any entrepreneur going into this business will make immense profit, as the reports show that demand for this product is not only stable but increasing even though there are few close alternatives to Garri. Garri can be consumed in two ways – the cold process and the hot process, and while there is no substitute for the garri consumed via the cold process method, the

few substitutes available for garri taken during the hot process are expensive, which leaves consumers with no alternative than to stick to garri. Also, another factor in favor of the garri demand is the growth the population which has pushed the demand for garri and has also caused more garri processing businesses to crop up to be able to meet the growing demand. 2.2 VISION STATEMENT Our vision is to be the preferable garri for customers in Ijebu, Ogun and the whole of Nigeria as well. 2.3 MISSION STATEMENT Our mission is to ensure we process garri of the highest quality using the best machines and resources. We also intend to ensure that our processed garri does not only meet the needs of our household clients but become a profitable business for our partners and distributors. 2.4 THE COMPANY The company is a combination of five persons ed with the name KOKO Quality Garri Processing Ventures. Currently, the companys products have been ed with NAFDAC. It is a new business created to serve the south western of Nigeria by exploiting the need for the supply of quality Garri. 2.5 PRODUCTS/SERVICES OFFERED Koko Quality Garri Ventures is a business that has been licensed by the National Agency for Food Drug istration and Control to process garri that will be used in households as well as in commercial places. We have also ed with the Corporate Affairs Commission and have fulfilled all other necessary obligations that will enable us make profit and grow as a business.

Some of the products and services we intend to indulge in as a business includes; 

White garri (Ijebu and normal)



Yellow garri



Consultancy Services



Training and Coaching

2.6 LEGAL FORM AND OWNERSHIP OF THE ENTERPRISE The main promoters of the Business enterprise are: 1. Maduabuchi Chika 2. Job Victor 3. Umunna Kalu Ifeanyi Knowing how our vision is to be the most preferable Garri for our customers, we have decided to ensure that we draft a business structure that will allow us not only achieve all our intended goals and objectives but also enable us build a solid business foundation as well. One of our top priorities is to ensure that we hire the best professional hands that have the required necessary experience, are dedicated and that will ensure that the business runs smoothly. We intend to ensure that our employees get the best training obtainable in this industry and also have welfare packages that will place our companies as one of the best places to work in. We also intend to provide excellent customer service by hiring those with the experience of handling customer orders and complaints efficiently. We know how important it is to get the right fit for this task as they will be communicating and representing the brand to our various customers.

Those we intend to employ to handle various tasks with assigned roles and responsibilities for the growth of Koko Quality Garri Ventures include; 

Managing Director



Manager



Marketing and Sales Executive



Purchasing Manager



ant/Cashier



Store Manager



Front Desk Officer



Security Guard



Cleaner



Van Driver Roles and Responsibilities Managing Director



Makes strategic decision on behalf of the company and ensure its implementation



Represents the company especially in areas of contracts and negotiation with high level clients



Controls overall resources and expenditures



Ensure that the business is financially secured Manager



See to the day-to-day running of the business



Handles the sourcing and recruitment of able hands to run the business



Communicates the vision and corporate culture of the business to employees



Sees to the welfare and promotion of employees

Marketing and Sales Executive 

Create a workable marketing strategy and plan for Koko Garri business



Develop a workable budget in collaboration with the Managing Director and ant



Responsible for using conventional and non-conventional means to attract clients



Carry out market research so as to have a better understanding of the target market Purchasing Manager



Sources for reliable vendors and suppliers for the business



Prepare purchase orders and requisitions on behalf of the company to suppliers and vendors



Maintain accurate report of goods ordered for and those received



Develop a workable budget for the purchasing department in collaboration with the Managing Director and ant ant/Cashier



Carry out a thorough analysis of the income and expenditure of the business



Works with the Managing Director to prepare a workable budget for the business



Resolve discrepancies that have occurred by reconciling bank statement with cash statement



Work with the purchasing manager and offer advices and suggestions where necessary Store Manager



In charge of store and inventory by keeping an accurate logbook detailing stock levels



Ensures that the store is conducive and well maintained



Ensures that the racks and shelves are stocked properly so that products do not fall off unnecessarily



Ensures that the store is well secured to prevent theft Front Desk Officer



Promptly answers phone calls of customers either for orders or inquiries



Responsible for scheduling necessary appointments



Ensures that guests sign in and out so as to their identity



Acts as a liaison between management staffs and clients Security Guard



Responsible for securing the premises and properties of Koko quality garri processing venture



Prevent any security related incident from occurring especially within official premises



Report any suspicious activity to the relevant department



Be alert at all times especially at entry and exit points within the premises Cleaner



Ensure that the premises is kept clean at all times



Ensure that the restrooms are clean for staff and customers



Replenish restroom with necessary facilities



Report broken or spoilt facilities to management Van Driver



Ensure that the products are transported and delivered to its proper destination



Keep detailed records by maintaining a log book recording distance travelled and fuel consumed



Ensure that van is in good shape to take the journey



Carry out regular maintenance and light repairs on the delivery van.

2.7 LOCATION OF THE BUSINESS The Business will be located in Ogun state as earlier discussed. 2.8 INDUSTRY TREND AND ANALYSIS KOKO Quality Garri processing ventures focuses in the production of garri. Its major competitor could be semovita or wheat but its advantage would be due to its lower cost and accessibility. 2.9 BUSINESS STRATEGY KOKO Quality Garri processing ventures main marketing focus will be an eye catching sign, warm service affordable home delivery and periodic printed ments. Efforts will be made to ensure that the products are price competitive and available into most major markets. 2.10 KEY SUCCESS FACTORS Some of the key success factors derived from the business are: 1. Hygienic production environment 2. Addition of Nutritional supplements example Vitamin A 3. Attractive packaging in various sizes to meet various demand levels. 4. Price competitive.

CHAPTER THREE THE MARKET 3.10 Nature, Location, Size, and attribute analysis Garri is one of Nigeria’s staple diets and is taken in every home. If you intend starting your own garri processing business, then you will need a land where you will not only install your facility, but it must also be near as possible to your source of raw materials – which for this instance is the cassava farm.

This will help decrease the costs that will be spent on transporting your necessary raw materials from a very far location. Also, you would need to ensure that your facility is hygienic as well as conducive enough for your employees as well as the clients that would want to visit for business purposes. A trend in the business is having several storage facilities in strategic locations all around Ogun State and Nigeria in general; this is so as to be close to customers, increase awareness about the brand and also increase patronage for the business, thereby boosting revenue. 

Our Target Market The target market for Garri is very huge as almost every home and everyone takes this product. However, more people are likely to take one colour of Garri than the other depending on their location. We intend to carry out a thorough market survey that will allow us determine the quantity that would be needed to be processed for each colour of Garri. Even though almost everyone takes Garri in one form or the other, we are still required to market our product so as to become a preferable brand to our customers, either existing or potential. Our target market includes; households, schools, restaurants, hotels, caterers, students, single males and females.



Our Competitive Advantage Every business that is established with the intention of making profit and intends to compete favourably with others in the industry knows that it needs to draft competitive advantage strategies that will enable it to have an upper hand over other businesses in the same industry. Having a competitive advantage means knowing what aspects of our business are our strengths and would give us the needed advantage we would need. One of our major competitive advantages is in our hiring or the best professionals in the industry who understands the garri processing business and

has keyed into our vision of becoming the best in the agro processing industry. Our professionals will work in the best environment and have enviable welfare packages. Also, we intend to constantly train our professionals so that their skills can be enhanced which will invariably lead to higher productivity that will be beneficial to the company in the long run. Our excellent customer service is one of our primary strength that will ensure we have competitive advantage over our competitors. It is a well-known fact that most Nigerian businesses do not invest in their customer service. However, we at Koko quality garri processing ventures know that a good customer service will increase the retention rate for our company by over 80%. Our customer service executives are the best in the field and have a vast knowledge of garri and so will be able to inform customers, attend to requests, orders and complaints promptly and efficiently. We intend to participate in community programs and school events as a way of getting close to our customers. We know that once customers identify with our efforts at integrating into the community through social participations, then patronage towards our business will increase. Lastly, we intend to effectively deploy the use of the internet by using our websites and social media platforms to give customers tips and engage our customers in discourse that will further better our industry and even our customers as well. 3.2 SALES AND MARKET SHARE ANALYSIS While Garri might be a staple diet taken by almost everyone, we are however aware of the fact that everyone cannot buy from one source, this does not mean that there aren’t Garri processing businesses that have a large share of the

market than others. These businesses have certain factors going for them, chief of which is location. We therefore after having carried out various feasibility studies, have seen that our location is favourably suited to increase our sales. Another factor in our favour is the fact that most Garri processing businesses in Ogun State and around process only white Garri (Ijebu and normal) which limits them to just certain segments of the market. However, our additional product (yellow Garri) is guaranteed to not only enlarge our revenue base but also ensure we make enough profit to run our business without external injection of funds in the first three months. Our sales forecast was carried out critically by a reputable business consultant that was hired for this purpose. The sales forecast is based on information gathered from other already established business and start-ups both in the garri processing industry in Ijebu, Ogun State. Based on location, the sales projection for Koko Quality Garri Processing Ventures is stated below: 

First Fiscal Year-: N5,500,000



Second Fiscal Year-: N9,000,000



Third Fiscal Year-: N16, 000,000 N.B: The above sales projection is totally in line with what is obtainable in the industry. The projections are also based on the fact that all factors that were considered during the analysis remain constant – such as the economy, lack of strong substitutes, and the arrival of no major competitors. Also, it is worthy to note that at any given point in time, the above projections might be higher or lower.

3.3 KEY COMPETITORS AND COMPETITIVE ADVANTAGE

(a) INDIRECT COMPETITION Business Type

Competition Type Strengths

Weaknesses

Semovita

Indirect

Everywhere and

Not Structured

competition

Cheap

Indirect

Everywhere and

competition

Cheap

Indirect

Everywhere and

competition

Cheap

Fufu

Wheat

Not Structured

Not Structured

(b)DIRECT COMPETITION Competitor

Strengths

Weaknesses

Other Attributes

Delight Garri

Multiple Goods

No core market

Good quality

Multiple Goods

No core market

Average quality

Multiple Goods

No core market

Good quality

ventures Goldbit Garri Farms Common Market

(c)COMPETITIVE POSITIONS AND SPECIFIC ADVANTAGE Rank

Competitor

Strengths

Weaknesses

Your edge over competitor

1

Delight Garri

Multiple

No core market We offer a

ventures

Goods and

higher

already

nutritional

established

value

2

Goldbit Garri

Multiple

No core Market Our product is

Farms

Goods and

price

already

competitive

established 3

Common

Multiple

No core market Our product

Market

Goods and

has better

already

quality.

established

3.3 SWOT ANALYSIS (A)STRENGTHS 

Our location in Ijebu, Ogun State is one of our greatest strengths as it means we are close to mega cities like Lagos State which is a thriving market, as well as other important states. While most garri processing businesses focus on producing only Ijebu garri or plain white garri, we are going a step further to ensure we produce yellow garri as well, this action alone has attracted more customers to our business and give us leverage over our competitors in the same industry.



Also, in addition to our products, we offer training and consultancy services for small scale start-ups. Our other strengths lie in the fact that we have employed the best hands in the industry, who not only understand the garri business perfectly but also understand our vision and working towards it as well.

(B) WEAKNESSES Our perceived weakness stems from the fact that we are operating in just one location which will seriously limit our vision of supplying to our target markets

all over Nigeria. However, we are determined not to see this as a business, as we intend to expand as soon as we have begun making profit and are stable enough. (C) OPPORTUNITIES Due to the fact that we are amongst the first garri processing businesses to offer more than white garri, this has cemented our role in front and has led to many start-ups requiring trainings from us, which will help boost our revenue base, especially as most of them are not close competitors. This has also led us to consider the benefits franchising might bring to us in the near future, should we continue getting requests such as these. (D) THREATS Our threats are not really that significant, as there are really no government policies or economic downturn to worry about, but like every business, we take all threats seriously, and intend to act proactively to reduce or eliminate the threat. The threat facing our business will be from having a strong competitor operating same products from around the same location. 3.4 DEMAND AND SUPPLY ANALYSIS DETAIL

SIZE(NUMBER)

Potential demand to be served

15,000 kg

Less 30% existing competitors

4,500 kg

Available market(in the absence of expansion of existing 10,500 kg competitors and entrance of new ones) Less 10% due to possible expansion of existing

1,050 kg

competitors and entrant of new ones Available market

9,450 kg

Less 5% due to error in estimation

472.5 kg

Available demand/ qualified market/ demand supply gap 8,977.5 kg Initial installed capacity cat most 60% of available

4,000kg

demand (served market)

CHAPTER 4 4.11 MARKET SEGMENTATION (A) The general public that desires a healthy nutritious garri product. (B) The individuals who desire a better quality of our Garri products. (C) University students around the area who largely depend on Garri products for survival. (D)Fast foods, Restaurants and Hotels. 4.12 TARGET MARKET (A) Koko Quality Garri Processing Ventures will sell her products to new and repeat customers from its storefront at Awolowo Street close to the Okorodu market in Ogun state. (B) Koko Quality Garri Processing Ventures will be truly unique in the market place. (C) Middlemen/wholesalers and retailers dealing on Garri products. (D)Hotels and Restaurants. 4.13 DESCRIPTION OF THE EDGE OF PRODUCT OR PRODUCT RANGE OF SERVICE Product/service

1

2

Denomination/product

Koko Quality Garri

Koko Quality Garri

line

Processing Ventures

Processing Ventures

Yellow Garri

White Garri

Specification(i.e. size,

100 kg nourished

50 kg nourished white

colour and quality)

Yellow colour

colour.

Packaging

To be contained in

To be contained in

neatly packaged Sacks.

neatly packaged Sacks.

Transfer and expert

Consultancy services

After sales service

advice. 4.13 Marketing Strategy and Sales Strategy Marketing is a very important aspect of any business, for without marketing a business can fail. Marketing has a double advantage as it not only generates revenue for the company but also ensures that awareness is created for the company directly or indirectly. It is therefore important that marketing strategies be drafted before a business becomes operational. During the course of running the business, these strategies would need to be constantly monitored and reviewed, with the less effective strategies being dropped or modified by the Managing Director in collaboration with the marketing and sales team for the growth of the business. At Koko Quality Garri Ventures, we intend to ensure that we adopt several marketing strategies towards ensuring that our existing customers are aware of our drive towards success. Also, our sales strategies will be done in such a way as to ensure we penetrate the market, therefore creating a wider reach. To achieve this, we intend to ensure that we develop just the right strategies that will not only keep our loyal customers glued to us but also attract new customers as well. Some of the marketing sales strategies that we intend to use are:



Place adverts in local newspapers as well as in local radio stations about our garri



Visit markets and introduce Koko quality garri to garri traders (wholesalers and retailers)



Throw a unique opening launch party that will attract interest



Use our official website to vigorously promote our garri processing business



Empower our marketing and sales team to positively push and better communicate our brand to customers



Create unique and engaging handbills and distribute them in strategic locations



Engage in one on one marketing



Encourage our loyal customers to refer us to others



Mae use of our social media platforms to promote our products and services.

4.14 MARKETING PLAN PRICE PRODUCT/SERVICE

How much are customers willing to pay?

Koko Quality Garri

Koko Quality Garri

Processing Ventures

Processing Ventures

YELLOW GARRI

WHITE GARRI

Mean price= N10,000

Mean price = N10,000

Competitors price

Mean price = N9,850

Mean price= N7,500

My price

N8,000/50 kg bag

N7,500/50 kg bag

Reasons for setting my price

To be price

To be price

competitive, but

competitive, but

remain profitable, to

remain profitable, to

sell cheap at high

sell cheap at high

volumes, thereby

volumes, thereby

drawing customers.

drawing customers.

NO

NO

Margin for discount

4.15 MARKET POSITIONING STRATEGY KOKO quality garri production enterprise also actively encourages customer satisfaction our product line reacts to the needs and desires of our dear customers, thereby encouraging repeat and word of mouth sales. Our product has a price competitive strategy and the market is located at one of the strategic points in Ogun state. 4.16 MARKETING MIX IMPLEMENTATION Our Business enterprise proposes to make use of the following mix implementation targets: (A)Expert advice (B) Competitive pricing (C) Personal selling (D)Periodic printed ments (E) Mechanized selling.

4.16 CHANNELS OF DISTRIBUTION We plan to reach our customers through the following means:

(A)Individuals (B) Retailers (C) Wholesalers We chose this system of distribution in order to harness a greater outreaching market. 4.17 START-UP PROMOTION These are the planned actions to inform customers about the opening of thr new business that is posters, fliers, ments, radio and Tele broadcasts, opening ceremony, church announcements, etc. however, KOKO Quality Garri Production Enterprise would utilize the following promotional activities: (A)The company will sample her products liberally. (B) Road show in all major markets in Ogun state. (C) Sales promotion through Raffle draws. (D)ment which would utilize the following media: TV, Radio and flyers (Printed media). (E) Using social media platforms such as Facebook to promote our products and services as well as engage our audience (F) Sponsoring school and community relevant activities (G)Create a unique logo and slogan that can be easily ed by existing and even potential clients (H)Using our van in road shows to tell people in targeted areas about our products and services (I) Ensure that all our staff wear customized tee shirts that will allow customers know of our business.

4.18 ALLIANCES KOKO Quality Garri Production Enterprise seeks to association like: the Hospitality Industries Union and the National Association of Garri

producing Companies (NAGPC). It is believed that ing such associations/Inions would help in creating a platform that would aid sales like gaining more clients, customers, shareholders , business associates, suppliers, work force, technical market knowledge skills and business guidance.

4.19 MARKETING CALENDAR AND BUDGET Date

Marketing Plan

Evaluation

Personnel

Estimated

Activity

Index

Involved

Costs (N)

Start: Sept. 2017

Road shows in

Presence of

outscored

180,000

End: Sept. 2017

major markets

flyers in major

Outscored

80,000

40,000

markets Start: Sept. 2017

ment in

2 times Radio

End: Oct. 2017

Radio and Tv

and Tv Announcements.

Start: Nov. 2017

Sales promotion

Everyday entries outscored

End: Jan. 2016

throw rattle.

for 1 month entries

Start: Jan. 2016

Sampling of

Once a week for Outscored

End: Feb. 2016

product liberally

one month

PART IV: TECHNICAL ANALYSIS 5.00 Production plan: 5.11 The project:

20,000

The product being produced as mentioned earlier is Garri. It is a medium scale business and is quite intensive and labour intensive as well. It is highly nutritious starchy product that is derived from the processing of Cassava tubers with addition of other vital supplements such as Vitamin A. The processed Garri product is made available to customers by means of a delivery van, each weighing at least 50 kg/bag and sold at an average price of N10,000. 5.12 PRODUCTION PROCESS The following basic steps are to be followed in the production chain: • Cassava are washed and pealed • Pealed cassava are then chopped or grated • Grated cassava are then allowed to ferment for period depending on the type of Garri being produced .Oil is added at this stage for the production of Yellow Garri. • The fermented cassava are pressed to dry form • The dry form are fried to Garri • The fried Garri goes through sieving and dry grinding to obtain a fine level of coarseness. • The product is packed and ready to be delivered. 5.13 THE PRODUCTION FLOW CHART

5.14 THE PRODUCTION SCHEDULE

1 2 3 4 5 6 7 8 9 10 11 12 Yr 1 1 2 3 4 5

Projected production schedule Targeted output Raw Raw input1 input2 Jan. 20,000 16,000 3,200 Feb. 20,000 16,000 3,200 Mar. 20,000 16,000 3,200 Apr. 20,000 16,000 3,200 May. 20,000 16,000 3,200 Jun. 20,000 16,000 3,200 Jul. 20,000 16,000 3,200 Aug. 20,000 16,000 3,200 Sept. 20,000 16,000 3,200 Oct. 20,000 16,000 3,200 Nov. 20,000 16,000 3,200 Dec. 20,000 16,000 3,200

Raw input3 600 600 600 600 600 600 600 600 600 600 600 600

Raw ----- --input4 200 200 200 200 200 200 200 200 200 200 200 200

Jan. Feb. Mar. Apr. May

1,040 1,040 1,040 1,040 1,040

380 380 380 380 380

38,000 38,000 38,000 38,000 38,000

30,500 30,500 30,500 30,500 30,500

6,080 6,080 6,080 6,080 6,080

Raw input n

6 7 8 9 10 11 12 Yr 2 1 2 3 4 5 6 7 8 9 10 11 12 Yr 3

Jun. Jul. Aug. Sept. Oct. Nov. Dec.

38,000 38,000 38,000 38,000 38,000 38,000 38,000

30,500 30,500 30,500 30,500 30,500 30,500 30,500

6,080 6,080 6,080 6,080 6,080 6,080 6,080

1,040 1,040 1,040 1,040 1,040 1,040 1,040

380 380 380 380 380 380 380

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.

40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000

3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200

6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400 6,400

1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200

400 400 400 400 400 400 400 400 400 400 400 400

5.15 MACHINERY, EQUIPMENT AND OTHER REQUIREMENTS. S/N Investment (equipment and others)

Qty

Life span

Other comments

Cassava peeling machine

1

20 yrs

Stainless Steel Hammer Mill with

1

30 yrs

4

45 yrs

Garri Frying Unit with gear motor,

2

10 yrs

granulator)

1

15 yrs

electric Motor Fermentation Rack/Mechanical Press with hydraulic Jack

5.16 TECHNOLOGY: The heart of this modern Garri processing plant is the Roasting or frying pot which is made from stainless steel and insulated with fibre glass. This absorbs heat from the fire. It's high-powered by 2HP gear motor that rotates the paddles that unceasingly flip the frying garri mash. The value of the plant is N5 million (Five Million Naira). It is rugged, resilient and fabricated from stainless steel tosatisfy each SON and NAFDAC requirements. It reduces labour and stress that are the bane of native garri production. The garri has a moisture content of 10 percent, sand of less than 1 percent and hydrocyanic acid of less than 10 percent. The shelf life is over six months, and garri is hygienic and free of microbial contamination and infestations.

5.17 QUALITY ASSURANCE AND STANDARDIZATION. KOKO Garri Production Enterprise aims to ensure quality by: 1. Regular sanitation to maintain and hygienic and health working environment. 2. Mechanized production process to avoid much with human hand. 3. Good packaging to preserve the product from with germs. 4. Addition of nutritional supplements like Vitamin A to enhance its nutritional value. CHAPTER SIX 6.10MANAGERIAL AND ORGANISATION STRUCTURE. 

MADUABUCHI CHIKA: Managing Director



JOB VICTOR CHUKWUEBUKA: Manager



UMUNNA KALU IFEANYI: Marketing and Sales Executive



Purchasing Manager



ant/Cashier



Store Manager



Front Desk Officer



Security Guard



Cleaner



Van Driver.

6.12 MANAGEMENT TEAM The key of the company and their relevant positions are: 1. Name: MADUABUCHI CHIKA Function: Managing Director. Relevant Qualification: B.SC in Agro Economics from the University of Harvard and is presently running an MBA from the University of oxford. Address: Plot 10 Obioma Street, sunlight estate, Rivers state. 2. Name: JOB VICTOR Function: Manager. Relevant Qualification: B.SC in Business management from the University of Nigeria, Nsukka. Address: No. 6 Avilla Avenue, Badagry, Lagos. 3. Name: KALU UMUNNA IFEANYI Function: Marketing and sales executive Relevant Qualification: BA in Banking and finance UNEC. Address: No. 14 university road.

6.13 ORGANIZATIONAL CHARACTERISTICS

S/N POSITION

NO OF STAFF SALARY

TOTAL

PER STAFF ANNUAL PER

SALARY

MONTH 1

Managing Director

1

100,000.00

1200,000.00

2

Manager

1

80,000.00

960,000.00

3

Marketing and Sales

1

80,000.00

960,000.00

Executive 4

Purchasing Manager

1

80,000.00

960,000.00

5

ant/Cashier

1

50,000.00

600,000.00

6

Store Manager

1

30,000.00

360,000.00

7

Front Desk Officer

1

20,000.00

240,000.00

8

Security Guard

1

15,000.00

000,000.00

9

Cleaner

2

10,000.00

120,000.00

10

Van Driver

2

10,000.00

120,000.00

TOTAL

1,701,600

6.15 EXTERNAL (OUT SCORING) The capacity of the managing crew and the managing crew and the organization as a body might not be adequate to handle all manner of tasks associated with the organization. In this instance, the organization may need to outscore certain roles or task.

6.16 RGANIZATIONS VALUES AND NORMS

KOKO Quality Garri Production Enterprise core values are as follows: (A)To carry out business on the best ethical standards. (B) To show highest level of integrity and honesty (C) To maintain quality at all times (D)To maximise satisfaction of the customers.

CHAPTER SEVEN 7.10 LEGAL, REGULATORY, SOCIAL AND ENVIROMENTAL ISSUES KOKO Quality Garri Processing Ventures is a business that has been ed under the Corporate Affairs Commission (CAC) and also legally licensed by the National Agency for Food Drug istration and Control (NAFDAC) here in Ogun State. We have also acquired the necessary licenses needed to run a plant without running afoul of the law here in Ogun State. KOKO Quality Garri Processing Ventures is a business that has been licensed by the National Agency for Food Drug istration and Control to process Garri that will be used in households as well as in commercial places. We have also ed with the research and development centre (RMRDC) and have fulfilled all other necessary obligations that will enable us make profit and grow as a business. 7.11ENVIROMENTAL ISSUES Some of the products and services we intend to indulge in as a business includes; 

White garri



Yellow garri



Consultancy Services



Training and Coaching

The by product from our product include are of no consequential effect on the environment and all waste product would be properly managed within the company.

CHAPTER EIGHT 8.0 FINANCIALS 8.11 What are the Equipment, Machinery and others needed to Produce the Products/Services This Plant makes uses of a fully mechanized processing method that brings efficiency and reduces waste and labour requirement. The start-up capital excluding Land and infrastructure is between 4million Naira and 7 Million Naira. However to achieve reduction on setup cost the scale can be reduced or some of the process like peeling can be manually done, but this would require more labour hands. The project will generate profit beginning from the first year of operation. Relevant ratios such as the percentage of net profit to total sales return on equity and return on total investment shows a promising returns.

S/N Investment (equipment and others)

Qty

UNIT

TOTAL

COST (N)

COST (N)

Cassava peeling machine

1

180,000.00

180,000.00

Stainless Steel Hammer Mill with

1

200,000.00

200,000.00

4

100,000.00

400,000.00

Garri Frying Unit with gear motor,

2

120,000.00

240,000.00

granulator)

1

200,000.00

200,000.00

electric Motor Fermentation Rack/Mechanical Press with hydraulic Jack

Total Investment

1,220,000.00

8.12 SALES PLAN Year 1

Year 2

Year 3

KOKO Quality

KOKO Quality

KOKO Quality

Garri Production

Garri Production

Garri Production

Enterprise

Enterprise

Enterprise

20,000 kg

29,000 kg

32,000 kg

Price per unit (N)

25

29

32

Sales (N)

15,600,000

22,620,000

24,900,000

Product/service

Product/Service Quantity (Volume)

8.13 COST PLAN Year 1

Year 2

Year 3

KOKO Quality

KOKO Quality

KOKO Quality

Garri Production

Garri Production

Garri Production

Enterprise

Enterprise

Enterprise

11,250 kg

15,000 kg

19,000 kg

Price per unit (N)

220

225

230

Sales (N)

24,75,000

3,375,000

4,370,000

Product/service

Product/Service Quantity (Volume)

8.14(A) LOCAL RAW MATERIALS AND OTHER INPUTS Items

Unit Cost(N)

Quantity Required/Annum Current(Existing) Proposed(After Expansion)

A Cassava

100/kg

16,000

40,000

B Water

50/kg

600

1,200

C Oil

10/kg

3,200

6,400

Tubers

B. SOURCES OF RAW MATERIALS Items

Source

Cassava

Ikorodu Agro products enterprise, Lagos

Tubers Water

Our Shield Water Resources, Ogun state

Oil

MEGA supermarkets, Ogun state

For now, some contracted arrangement has been made towards the procurement of the raw material. 8.15GENERAL COST OF ISTRATION  Fees for incorporation and other legal requirements – N100,000 

Obtaining of licenses and permits as well as ing software – N150,000



Insurance coverage (general liability, property insurance and workers’ compensation) – N50,000



Facility rent for a year and renovation – N350,000



Operational cost for at least three months (employees’ salary, bills payments) – N250,000



Cost of purchasing and installing Garri processing equipment – N2,400,000



Cost for start-up inventory (Cassava) – N800,000



Cost of storage facilities (racks, ventilation) – N100,000



Cost of hiring business consultant – N50,000



Cost of fairly used distribution van – N820,000



Other start-up expenses (furniture, phone, computer, printers, stationeries) – N200,000



Marketing budget (for promoting launch activities and the business generally for at least a year) – N150,000



Cost of launching a website – N30,000



Miscellaneous – N50,000

8.16 PRELIMINARY AND PRE-OPERATING EXPENSES (FOR NEW PROJECTS ONLY) Item

Amount (N)

A Company incorporation

100,000

B Increase in Authorised Share

Nil

Capital C Travelling Expenses

20,000

D Preparation of Business plan/F.S 15,000 E Others (please specify)

Nil

Total

135,000

8.17 WORKING CAPITAL PROJECTION (TO COVER THE GESTATION PERIOD) 1. The conversion rate of tubers to processed Garri is 4 Tonnes of cassava tubers to 1 tonne of Garri. 2. That 1 tonne of cassava tuber delivered to the plants is N 5,000 per tonne. 3. The opposite prices of production aren't more than 50 % of the value of cassava tuber .i.e. 50% of N 20, 0000 which is N 10,000.

4. The selling price of one 50kg bag of Garri is about N5, 000 - 2 Tonnes per day of 8 hrs. - Cassava tubers (8 tons x N5, 000) 40,000 - Other costs of production (50%) 20,000 - Net profit per day 20,000 - Profit per year working six days - Per week or 313 days in a year (313 x N20, 000) N 6,260, 000 8.18START UP CAPITAL NEEDED (a) Investment (Equipment, machinery and others) = N3,320,000 (b) Working Capital = N,888,300 (c) pre operational expenses = N200,000 Total = N4, 408,300 8.19FINANCIAL PLAN (a) Owners capital = N3,000,000 (b) Donations/grants = None (c) Bank loan = N1,408,000 Total = N4, 408,300 8.20 LOAN REPAYMENT AND INTEREST PAYMENT SCHEDULE Year

Loan/Loan

Interest

Bal B/d

Annual

Loan

instalment

Repayment D

A

B

C

A

B = r(A)

C(A value in D = C - B eqn 1)

Loan Bal c/f

E E=A-D

0

1,500,000

N/A

N/A

N/A

1,500,000

1

1,500,000

225,000

656,965.44

431,965.44 1,068,034.56

2

1,086,034.56 160,205,18

656,965.44

496,760.26 571,274.3

3 4 5 Total 4,068,000

160,245,518 1,313,930.88 928,725.68 3,139,000

8.21 SCHEDULE OF DEPRECIATION S/N

1

Item of

Initial

Scrap

Life

Depreciation

Depreciation

value

Value

Span

Cassava peeling

1,000,000

800,000

20 yrs

50,000

40,000

35,000

30 yrs

4,000

1,500,000

1,200,000 45 yrs

machine 2

Stainless Steel Hammer Mill with electric Motor

3

Fermentation Rack/Mechanical Press with hydraulic Jack

65,000

4

Garri Frying

500,000

5,000

10 yrs

500

200,000

2,000

15 yrs

390

Unit with gear motor, 5

granulator)

Total Depreciation

119,890

8.23 Estimate of Profit and Loss for the first 3 years Particulars

Year1

Year2

Year3

Sales

15,600,000

22,620,000

24,960,000

15,600,000

22,620,000

24,960,000

2,475,000

33,750

4,370,000

Salaries

800,000

999,800

1,690,920

Rent

150,000

200,000

220,000

Telephone

25,000

30,000

30,000

Electricity

70,000

70,000

70,000

Advertising

180,000

180,000

180,000

Others Net Sales

Less Expenses: Cost of raw materials

Entertainment Insurance

50,000

51,000

51,000

Office supplies

50,000

50,000

50,000

Motor Vehicle

60,000

62,000

64,000

Total Expenses

3,860,000

5,017,860

6,725,920

Profit before

10,136,400

34,862,300

44,892,400

Less interest

311,200

150,389

80,562

Profit After

9,627,250

30,360,900

36,692,900

Less Tax

3,650,000

9,802,680

13,989,600

Profit After Tax

6,860,840

15,282,395

24,392,560

Less Depreciation 195,000

195,000

195,000

Net Profit

6,860,840

15,282,393

24,392,560

Appropriation

Year1

Year2

Year3

Legal

maintenance

Tax/int

interest

Dividend

Retained Earnings 8.24 Cashflow Projection Year 1 Total (N)

Year 2 Total (N)

Year 3 Total(N)

Cash in Bank Loan

1,408,000

Sales income

21,600,000

48,680,600

50,600,000

23,008,000

48,680,600

50,600,000

439,680

449,600

53,000

Marketing

140,000

141,000

141,000

Cost of Goods

7,800,600

16,000,890

18,000,000

Internet Expenses 211,200

150,000

80,435

Loan Repayment

400,000

508,000

Initial Investment 4,408,300

8,000,000

8,000,000

Salaries

8,000,000

8,000,000

Other Income (state) Total Cash in

Cash out . Outgoings

400,000

4,560,000

Dividends

1,686,640

10,086,085

10,290,300

Total Cash Out

19,646,420

35,226,575

37,122,735

Net Cash Flow

3361580

13,454,025

13,422,265

Opening cash Bal Nil

7,242,550

10,678,936

Closing cash Bal

30,696,575

24,126,201

Other Payments

3,361,580

8.25 BLANCE SHEET Balance Sheet Start Date Assets

Year End

Year 2

Year 3

Year 0

i.e., Year 1

3,320,000

3,320,000

3,320,000

3,320,000

NIL

124,000

248,000

372,000

3,320,000

3,196,000

3,072,000

2,948,000

Fixed Assets: Land, Machinery and others Less cum. Dep. Total Fixed Assets (A)

Current Assets: Cash (use as

843,300

2,960,950

6,000,990

12,989,000

Debtors

NIL

NIL

1,000,980

3,890,650

Stock

242,800

298,960

428,650

428,690

Total Current

1,088,300

3,259,810

7,430,620

17,308,340

4,408,300

6,455,810

10,502,620

20,256,340

NIL

298,960

502,960

800,690

NIL

359,896,000

29,690

320,650

balancing item)

Assets (B) Total Assets (C)

Liabilities Current Liabilities: Creditors Accrued expenses Overdraft Short term loan

Total current

NIL

1,087,506

1,628,610

2,071,990

NIL

1,087,516

1,628,610

2,071,990

3,000,300

3,000,300

3,000,300

3,000,300

NIL

4,250,690

14,187,300

19,289,650

Liabilities (D) Capital Employed (A-D) Long Term Liabilities: Long Term Loan Others (specify) Total Long term liabilities (E) Long + short Term Liab. (F) Shareholders’ Equity(C-F) Capital (Shares) Retained Profits

Total

3,000,300

7,250,990

17,187,600

22,289,950

3,000,300

8,538,508

18,816,210

24,311,990

shareholders’ funds (G) TOTAL LIABILITIES (F + G)

CHAPTER 10 10.10 RISK CONTINGENT ANALYSIS S/N

Risks

Mitigants

1

Unexpected sudden

Improvising by better

increase in price of raw

packaging and

material

increasing sales and price

2

Inadequate start up

Aggressive promotion

demand

and advertising campaigns

3

4

Unexpected adverse

Appropriate Insurance

events

Policy will be taken

High unexpected

Use of trade secret to

entrance of many

keep product

competition due to the

formulation secret from potential competitors. Also continuous

fact that the business is

aggressive marketing

profitable.

will be advisable

10.12 CONTINGENCY PLAN AND EXIT STRATEGY The project promoters do not foresee a situation where it will fail. However, if the scenario tend to fail, the business can easily be sold since the equipment can easily be used for other things. Alternatively, the business can easily open other lines of business and diversity. CHAPTER 11 11.10 OTHER CONSIDERATIONS AND CONCLUSION 11.11ECONOMIC JUSTIFICATION This project can deliver increased benefits like job creation, contribution to GDP gross capital formation, gross domestic product particularly it will. 11.12 COMMERCIAL VIABILITY The Project is very profitable as it will generate more than N24 million in profit in the next three years. The liquidity position are above. Equally shareholders net worth will form N1, 500,000. 11.13 CONCLUSIONAND RECOMMENDATIONS In view of the technical feasibility and commercial viability of the project, it is highly recommended for implementation and funding.