Hi Milk n Slice Final Slidess Latest

8/3/2019 Hi Milk n Slice Final Slidess Latest

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Roots College International

Team MembersFaaiz Irfan

Raahim Khan

Sania Ahmed

Zahra Urooj


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The Business in which we deal

BASIC IDEA

Supplying fresh milk in transparent glassbottles along with freshly baked bread.

Door step service

Ensuring quality & hygiene


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The Business Continued

Name of the company

HI Milk n Slice

Company logo

Now Health is Safe and Rich

HI stands for

Hygiene

Health

High standard

High quality

Integrity in dealing


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The Business Continued

Vision:

To be known as pioneer of healthy enriched dairyproducts in the town and to increase customersatisfaction.

Mission:We strive to use our God given talents to provide wholesome products,

honest service and value to our customers.This means: Our standard is to produce the highest quality milk.

We strive to serve our customers beyond their expectations. We intend to provide a safe and pleasant workplace, and reward our team

members for achieving the highest quality and service to customers.


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Objectives

Achieve an increase of 30% in sales in first 6months.

Maintain a healthy average gross profit margin.

Develop a business model that is favorable toexpansion.

Offer our customers a superior product, at affordableprice, and provide quality customer service


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Keys to Success

Unique product combination

Quality controls: consistency, cleanliness.

Service: professional, on-time.

Marketing: positive image, word-of-mouth

advertising.

Customer focus: convenience


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Description Of The Business

The company aims to provide high quality, fresh &healthy milk and bread to all customers.

4 business partners

10-12 employees

3 delivery vans & 2 motor bikes

Service provided to some areas of Islamabad


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Description Of The Business

Procurement of milk and bread will be outsourced.

Contract with the local glass manufacturing company

Empty glass bottles will be recollected

Payment from customers will be on monthly basis and inadvance


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Profit Plan

The business will build profitable relationships andcreate customer delight, by observing the following;

Good quality Health and safety

Reasonable price scale

Delivery

Speed

Moral values


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Our Principal Of Cost Reduction


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Marketing Plan

The business targets a wide market aspure milk and bread are the primaryneeds of every house

Product

Fresh milk in glass bottles alongwith fresh bread supplied at thecustomers doorstep.

Milk will not be pasteurized orchemically treated.


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Packaging

For milk packaging, glass bottles will be used withthe companys logo on it.

Glass is a heat insulator and will help in preventingthe milk from being spoiled in summers.


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Price

Competitive price

Milk will be provided at a price of Rs.78/ 1 x litre

bottle, Rs. 155/ 2 litre bottle,Rs.385/5 litre andRs.40/ half a litre.

Bread will be sold for Rs.56.


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Promotion

Effective advertisement through word of mouth.

Other sources will also be used;

Newspapers

Pamphlets Media

Internet

Promotional slogan: Lets start getting healthy..


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Place (distribution)

Three air-conditioned vans and two motor bikes will be

used for delivery purpose.

Vans will have proper containers for milk bottles.

Milk and bread will be delivered in the morning between6:45:00-8:30 A.M

This service will be available, on request basis, in theevening as well .


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Procurement Plan

Contract with local farm (s) for milk procurement

Contract with a local bread manufacturer


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Quality Control Plan

Strict check on quality control by quality coninspector employed for the purpose

Separate department for quality management Quality management principles will be kept in

mind

5 S will be followed Kaizen will be followed


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Financial Plan

Initial investment available: Rs. 2,000,000 Initial Estimated Costs (Including capital

expenditure): Rs.1,852,000

Required Profit per quarter: Rs. 120,000

20% of the profit will be kept as contingencyreserves.


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Cost of milk per litre: Rs.60 Estimated milk requirement: 300 litres/ day

Daily purchasing cost of milk: 300x60= Rs.18000

Quarterly purchasing cost of milk: 18000x90= Rs.16,20,000

Cost of bread per loaf: Rs.50 Estimated bread requirement: 50/day

Daily cost on bread: 50x50= Rs.2,500

Quarterly cost on milk: 2500x90= Rs. 225,000

Financial Plan contd


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Cost of Milk& Bread Calculated

Milk Purchase price per liter 52

Fuel (Calculated per liter) 5

Other(Octroi,etc) 3 60

Bread

Purchase price per loaf 45

Fuel (Calculated per liter) 2

Other(Octroi,etc) 3

56


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Financial Plan contd

Sale price of milk per litre: Rs.78

Estimated milk requirement: 300 litres/ day

Daily sales (milk): 300x78= Rs.23400

Quarterly sales (milk): 23400x90= Rs. 2106000

Sale price of bread per loaf: Rs.56

Estimated bread requirement: 50/day

Daily sales (bread): 50x56= Rs.2800

quarterly sales (milk): 2,800x90= Rs. 252000


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Comparison Customer Vs Milk


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Initial Cost

Total

requirement Price (Rs) Total Cost (Rs)

Delivery Vans1 350,000/

each100,000(installments)

Motor bikes4 45,000/

each180,000

Equipment (Deep

freezers)*som

e others

equiptments

85,000 85,000

Bottles 1000 8/each 8,000

Computer 1 8000 8000

OfficeFurnishing

25,000 25,000

Big Drums(150liters)

3 5000/each 15000

Rs. 421,000


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Salary Expense

Number of

people

Salary per

head (Rs)

Aggregate

Salary (Rs)

Total (Rs)

Quality Manager 1 12,000 12,000 12,000

Labor force

Driver (full time) 2 8,000 16,000

Driver (part time) 1 4,000 4,000

Delivery boy (fulltime) 2 5,000 10,000

Delivery boy (part

time)

2 2,500 5,000

Labor 2 3,500 7,000

42,000Office Staff

Computer operator 1 9000 9000

Assistant 1 8000 8000 17,000

Sub total 71000


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Market

Target MarketMarket Analysis

Competitors

Competitive Advantage


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SWOT Analysis


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Strengths

Dairy industry is the major source of food i.e. milk,meat, butter, cream, cheese, ghee. There is an extensive scope of milk production as

Pakistan is the 5th largest milk producing country in theworld.

The business is aimed to provide High Quality, pure,fresh and hygienic milk to its customers

Delivering fresh bread with milk is a new concept Free delivery at the doorstep of the customers. Business will use the valuable concept of Total Quality

Management


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Weaknesses

Maintenance and sustainability of quality of thetwo products (milk & bread) is a challenging anddemanding task.

The business is a new entrant in the market inPakistan .

Business lacks the brand power.


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Opportunities

Government of Pakistan and institutions like,SMEDA are taking immense interest in developingthe dairy sector. The same is true for private dairyfarms/ industry

Dairy products needs are much higher than thesupply.

Supplying fresh milk in glass bottles is a new andunique idea in Pakistan. It has not been used byany company in the country.


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Threats

Monopoly of multinational firms.

General public is usually resistant to change andhesitate to adapt quickly to new products.

Competition in the market.

Bargaining power of suppliers

Risk of rejection of the idea by the masses.


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Management Structure

Partners will enact the overall plan

Communication

Employee Policies


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Income Statement

HI Milk n SliceIncome statementFor the year ending December 31,2008

Sales (Included sales tax Rs.1509120) 9432000Cost of goods sold (7380000)Gross profit 2052000

Operating expenses :Salary expense(as per statement) (852000)Rent expense (160000)Utility bills expense (120000)Office supplies expense (60000)Fuel expense (120000)Maintenance expense (40000)Advertising expense (22000)Depriciation (32100)Installement(Delivery Van) (96000)

(1700100)

------------

Net income 351900

*It is assumed that installment paid for delivery van is equal to its depreciation, so installment

paid is considered as revenue expense.


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Appropriation A/c

HI Milk n SliceProfit/Loss Appropriation A/c

For the year ending December 31,2008

Net Profit 351900351900

Less: Share of Profit:Raahim (30%) 105570Sania(20%) 70380Faaiz(20%) 70380Zahra(30%) 105570

(351900)X


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Current A/cFor the year ending on December 31,2008

DrRaahim Sania Faaiz Zahra

CrRaahim Sania Faaiz Zahra

Drawings

Bal c/d

80000

25570

60000

10380

60000

10380

80000

25570

Share of

profits

105570 70380 70380 105570

105570 70380 70380 105570 105570 70380 70380 105570

Bal b/d 25570 10380 10380 25570


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Cash BookFor the year ending on 31st December,2008

Investment(Capital) 2000000 Purchase of Assets 321000

Sales 9432000 Cost of Sales 7380000

General Sales Tax(Received) 1509120 Miscellaneous Expense 1668000

Drawings 280000

Balance 3292120

12941120 12941120

HI Milk n SliceCash Book

HI Milk n Slice


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Balance SheetFor the year ending on December 31,2008

.Fixed Assets: Cost Dep(@5%/annum) Book Value

Motor Bike 180000 18000 162000

Equipment 85000 8500 76500

Bottles 8000 800 7200

Computer 8000 800 7200

Office Furniture 25000 2500 22500

Big Drums 15000 1500 13500

288900

Current Assets:

Cash 3292120

Less: Current Liabilities

General Sales Tax Reserve (1509120) 1783000

Capital Employed 2071900

Financed By:

Capital: Raahim 600000

Add: Current A/c 25570 625570

Capital: Sania 400000


Capital: Faaiz 400000


Capital: Zahra 600000




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Income Statement

HI Milk n SliceIncome statement


Sales: 10375200Cost of goods sold (8118000)Gross profit 2257200

Operating expenses :

Salary expense(as per statement) (90000)Rent expense (180000)Utility bills expense (135000)Office supplies expense (75000)Fuel expense (132000)Maintenance expense (75000)Advertising expense (100000)Depreciation (32100)Installement(Delivery Van) (96000)

(1725100)

------------

Net income 532100

*With the start of the new year, the sale price has increased by 15%; whereas, cost

prices are increased by 10%


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Appropriation A/c



Net Profit 532100532100

Less: Share of Profit Raahim 159630Sania 106420Faaiz 106420Zahra 159630 (532100)

X


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Current A/cFor the year ending on December 31, 2009

Dr Raahim Sania Faaiz Zahra Cr Raahim Sania Faaiz Zahra

Drawings

Balance

c/d

40000

105200

35000

56800

37000

56800

45000

105200

Bal b/d

Share of

profits

25570

159630

10380

106420

10380

106420

25570

159630

185200 116800 116800 185200 185200 116800 116800 185200

Balance

b/d

105200 56800 56800 105200


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Cash Balance 3292120 Cost of Sales 8118000

Sales 10375200 Miscellaneous Expense 1693000

General Sales Tax(Rec) 1660032 Drawings 280000

General Sales Tax(Paid) 1509120

Balance 3727232

15327352 15327352


HI Milk n SliceBalance Sheet


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Motor Bike 180000 36000 144000

Equipment 85000 17000 68000

Bottles 8000 1600 6400

Computer 8000 1600 6400


Big Drums 15000 3000 12000

256800

Current Assets:

Cash 3727232Less: Current Liabilities



Financed By:











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Income Statement

HI Milk n SliceIncome statement


Sales: 11412720Cost of goods sold (8918000)Gross profit 2494720

Operating expenses :

Salary expense (as per statement) (940000)Rent expense (200000)Utility bills expense (150000)Office supplies expense (85000)Fuel expense (180000)Maintenance expense (100000)Advertising expense (50000)Depriciation (32900)Installement(Delivery Van) (96000)

(1833900)

------------

Net income 660820

*With the start of the new year, the sale price has increased by 15%; whereas, cost

prices are increased by 10%


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Appropriation A/c



Net Profit 660820660820

Less: Share of Profit Raahim 198246Sania 132164Faaiz 132164Zahra 198246 (660820)

X

/


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Current A/cFor the year ending on December 31, 2010

Dr Raahim Sania Faaiz Zahra Cr Raahim Sania Faaiz Zahra

Drawings

Balance

c/d

200000

103446

100000

88964

100000

88964

200000

103446

Bal b/d

Share of

profits

105200

198246

56800

132164

56800

132164

105200

198246

303446 188964 188964 303446 303446 188964 188964 303446

Balance

b/d

103446 88964 88964 103446


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Cash Bal b/d 3727232 Purchase of New Bottles 8000

Sales 11412720 Cost of Sales 8918000

General Sales Tax(Rec) 1826035 Miscellaneous Expense 1801000

Drawings 600000

General Sales Tax(Paid) 1660032

Balance 3978955

16965987 16965987


HI Milk n SliceBalance Sheet


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Motor Bike 180000 54000 126000

Equipment 85000 25500 59500

Bottles 16000 3200 12800

Computer 8000 2400 5600


Big Drums 15000 4500 10500

231900

Current Assets:

Cash 3978955

Less: Current Liabilities



Financed By:











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Social Benefits

Environmental Friendly

No waste ( In terms of used Milk Cartons)

More Close to Nature No added Preservatives

Direct from Farm Approach

Guaranteeing convenience by providing the products

at doorstep


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Economic Benefits

Employment opportunities.

By ensuring /Business will provide hygienic milk andbread so it will help in lessening diseases that willindirectly help in improving economic conditions.

Competition will increase with the introduction of thebusiness. This will have a positive impact on themarket.


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Future Plans

Acquisition of a farm

Diversification

Other Dairy products

Cottage Cheese Butter

Skimmed/ Unskimmed milk etc

Different types of bread

Cookies, Plain cakes

Net present value analysis


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Net present value analysis

Year Cash flows Present value

interest factors @20 %

0 (20,00,000) 1 (20,00,000)

1 3292120 .83 2732460

2 3727232 .69 2571790

3 3978955 .57 2268004

Net present Value(7572254-20,00,000) 5572254

The Net present Value is Rs 5572254 is Positive ,so the it is feasibleto start the business.


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Thank You!!!

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