Business plan

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Business Plan of Nepal Compost Udhyog

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Business plan

  1. 1. Business Plan on Nepal Compost Udhyog – step toward clean city Presented by Himalaya Ban
  2. 2. Background  Kathmandu the capital with an area of 51sq km and its population more than a million(2012 census).  According to Johns Hopkins report, 524 tons/ day of waste produced only in Kathmandu district.  Today key priority of KMC Office has become the Solid Waste Management.
  3. 3. Facts about solid waste in Kathmandu  524 ton per day waste collected  Organic waste 85%(KMC)  KMC spend $2.71 per capita per annum for waste management  1.01% of per capita GNP  Sisdol only is not a solution
  4. 4. “Where there is a wish there is a Will”.  Turning Trash into Cash How???  converting
  5. 5. Fertilizer Demand  According to MoAC report, fertilizer demand is approximately 857 ton/year.  Where organic contributes approximately 265 tons/year.
  6. 6. Introduction  Nepal Compost Udhyog is an organization, established by 4 young entrepreneur, located in Chovar with its premises of 10 ropani land.  Organization will : - collect waste from 200 households (with increment in no. households in future) - produce compost
  7. 7. Contd… - will carry on sample organic farming - timely initiate social activities like society cleaning program, awareness program etc
  8. 8. Missions  “Development of compost in Nepal and promoting youth toward Environment Awareness with motto of clean city”
  9. 9. Objectives  To make compost and promote people toward Organic farming.  To promote youth toward environment awareness.  To promote employment opportunities and women empowerment in Nepal.
  10. 10. Organization Structure  Centralized at first.  Top-Bottom Management policy  Decentralized (future)  Decentralization with matrix structure
  11. 11. Organizational hierarchy General Manager General Manager SupervisorSupervisor WorkersWorkers WorkersWorkers WorkersWorkers ShareholdersShareholders
  12. 12. Operation and Management plan  Operation plan: focused on conducting day to day tasks like collecting wastages, classifying it and composting.  Management Plan: focused in about expansion of business, allocation of capital, capital budgeting, etc.
  13. 13. Design and Development Plan  Product development
  14. 14. Market and Pricing  Current Market Scenario Total fertilizer demanded (both organic and non-organic) = 857 ton/year Organic fertilizer demand = around 265 ton/year Retail price of other producer = Rs 25-30per kg  Our organization Production about 20-100 ton Retail selling price = Rs 20-25per kg
  15. 15. Organization Coverage plan  Focused on farmers, nurseries, parks and household . Stage Market Coverage Time(years) I Inside Valley 0-5 II Places near Valley 5-10 III Outside Valley 10-above
  16. 16. Marketing Strategies  Create awareness of our product  Produce qualitative product  Pricing at lower rate for market penetration  Market segmentation and target marketing  Promotion and Advertisement
  17. 17. Competitive strategies  Cost leadership  Innovation  Differentiation  Alliance  Aggressive growth
  18. 18. SWOT Analysis Strength:  Cost effective  Quality products  Expandable organization  Less operating cost  Eco-friendly
  19. 19. Contd.. Weakness:  New to the industry  Entrepreneur with less experience
  20. 20. Contd… Opportunity:  High demand  Local employment  Less capital needed to penetrate industry  Huge growth opportunity  Less rivalry  Government support to agriculture sector
  21. 21. Contd.. Threats:  Previously established Competitors  Unstable political situation
  22. 22. Risk Management  Form new strategies  Diversifying our business investment  Organic farming, recycling  Aggressive promotion of our product
  23. 23. Financial Feasibility Short term sources  Revenues from sale of compost  Revenues from the sale of scraps  Revenues from the household as collection charges  Revenues from the sales of recycled and reprocessed goods Long term sources  Investment from Shareholders  Retained Earnings  Loans from Banks  Funds from Government and INGO’s
  24. 24. Projected 1st year Income Statement of Nepal Compost Udhyog Particulars Amount Amount Amount Revenues: Compost Sales (Rs 25*80000kg) 2,000,000 Scrap Sales 180,000 Collection Revenue (Rs150*200*12) 360,000 a) Total Revenues 2,540,000 Expenses: Salaries and Wages 780,000 Rent & Land 480,000 Electricity ,water & miscellaneous 88,000 Stationary 25,000 Advertising (audio, video, paper) 220,000 a) Total Expenses 1,593,000 Income from Operations (a-b) 947,000 Tax @ 25% 236,750 Net Income 710,250
  25. 25. Projected 1st year Balance Sheet of Nepal Compost Udhyog
  26. 26. Projected financial highlights
  27. 27. Project Fund
  28. 28. Future Investment Organic Fertilizer Plant Capacity: 200tons/day Price: Rs 46,56,000
  29. 29. Paper recycler Machine Cost: Rs 14,75,000
  30. 30. Allocated Capital Structure for Future Investment.
  31. 31. Thank You!

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