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Business plan for ceramic company
 

Business plan for ceramic company

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Business plan for starting a new ceramic goods manufacturing company.

Business plan for starting a new ceramic goods manufacturing company.

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    Business plan for ceramic company Business plan for ceramic company Presentation Transcript

    • Welcome Sandstone Ceramics Entrepreneurs: Yakin Reza Mahbub Muctadir. Sahedul Hoque Ahmed Aman Yousoof.
    • Overview of selected industry 1st Manufacturer: Tajma ceramics in 1958. Monno Ceramic Industries, Shinepukur Ceramic Industries, Bengal Fine Ceramic Industries, Standard Ceramic Industries and Peoples Ceramic Industries.
    • Overview( Cont.)  Estimated growth of 80% in next 2 years.  Exported goods: 2006-07 Tk 219 crore 2007-08 Tk 270 crore 2008-09 Tk 235 crore 2009-10 Tk 273 crore 2010-11 Tk280 crore  More than Tk 3,000 crore has so far been invested in the sector from home and abroad.  Around 20 percent annual growth rate.
    • Overview (Cont.)  RAK Ceramics (Bangladesh) Ltd, a UAE-based company (2003), now grabs one-fourth of the domestic market share producing 6.0 million SQM of tiles every year.  According to the industry people, sales of the locally produced tiles did not go down even in the past two years, the worst time for the country's construction industry.
    • Future outlook and trends  Floor tile( Homogeneous)  Wall tile  Roof tile  Commodes.  Basins.
    • Competitors  RAK ceramics.(polished tile)  Akij ceramics( New rising company).  ATI ceramics.  Fu wang ceramics.
    • Description of venture  Product line:  Tiles  Sanitary ware.  Size of business:  Initial investment around 3.5 billion BDT.  Production goal:  Tile: 816000 units(yearly)  Sanitary ware: 82000 units.
    • Abell’s Framework  What is Customer’s need?  good quality.  durable ceramic wares.  cheap price that fulfils their specific needs.  New and innovative designs.  How that can be fulfilled?  producing enough units.  decreasing the operating costs.
    • Abell’s framework( Cont.)  How my organization can fulfill the need?  Going for huge production.  Getting out from the traditional approach: Shapes and designs.  Selling in lowest possible cost.
    • Political, legal and environmental factors  Vulnerable one with the first two years of a democratic government deemed stable.  The political unrest is creating Hortals, dhoromoghots etc. Stability of Govt. Anti trust regulations: Still not any. Tax laws: Raw materials: 7.5-15%. Special incentives: LDC.
    • Political, legal and environmental factors(Cont.) Foreign trade regulations: Laws on hiring and promotion.  Environmental protection laws:  Poor drainage system.  Embargo on cutting hills.
    • Economic factors GDP US$ 105.56 billion GDP Growth 6.70% Inflation 11.2% Exchange rate 1 US$=Tk 83.75 (average) 15-18% Interest rate
    • Social factors  Lifestyle changes.  Career expectation.  Consumer activism.  Rate of family formation.  Growth rate of population:1.566%  Regional shift of people.  Life expectancy and death rates
    • Technological factors  Excellent designs and patterns.  Unique ambience patterns.  Bone china.  Investment on R&D sector: 5% of NET Income.  Monocuttura technology.
    • Product innovations  Specially printed tiles.  Circle shaped and huge sized tiles.  Material used for innovative production:  New red high efficiency mud.  Imported raw materials like soda feldspar, potash feldspar, clays from India, Indonesia, Malaysia, and Thailand. Fritz & glazes from Spain & other European countries.  Testing: A laboratory of highest standards.
    • Strengths Creativity over another potential market. Less competitors. Spread of housing Business.
    • Weakness Political unrest of the country. Power Shortage. Lack of pressure in Gas.
    • Opportunity Rising Industry: Yearly growth of 6.0% in Bangladesh and a whole growth of 800% In the whole world. Less competitors( Most of the ceramic industries produce tableware) Market leaders are mainly focusing on
    • Threats  Powerful competitors are already penetrating the market.  New rising companies: Akij Ceramics.  Production process is long.
    • Tiles
    • Raw material suppliers Habib Enterprise. 2. Mila Chemicals. 3. Tandem Chemicals. 4. Topflight CO. 1.
    • Machinery  Ball mill B390 D
    •  Pan mixer P15 HD 5000 litre
    •  Tiles machine P15 HD
    •  Economic Air dryer
    •  Ball mill (Glazer)
    •  Glazed tile presser
    •  Firing Machine.
    • Sanitary ware.
    • Machinery and equipment  Powder mixer PM 125D
    •  Sanitary dicer (KT 398J)
    •  Spray glaze maker(SH 343 S)
    • New technologies used in production  SKSZ series high speed rotating Dryer
    •  Water jet cutting( Used by RAK ceramics)
    •  High efficiency red mud( By product can be used as 53% cement)
    • Pricing Homogenous tiles( Only glazed): 48 Tk per square feet. Roof tiles ( Only Glazed): 48 Tk per square feet. Wall tiles ( Only Glazed): 48 Tk per square feet. Basins: 2500TK per Piece.
    • Distribution  Distribution through distributors.  There will be two type of distribution.  Type 01  Type 02
    • Promotion  Promotional activities for our final customers:  TVC  Newspaper, magazine.  Billboard.  Promotional activities regarding our dealers:  Trade incentives  Trade shows and exhibits
    • Form of ownership:  It is now a limited company.  Each one of us will invest 26.25 crore and the distribution of profit will be equal.  Any 1 of our parents as the chairman.  Planning of the company bringing in DSE.(49%).
    • Roles and responsibilities of partners  Yakin reza: Vice president(Finance).  Mahbub Muctadir: Vice president(HR).  Mohammad Sahedul Hoque: Vice president ( Marketing and sales).  Ahmed Aman Yousoof: Vice president ( Production).
    • Assessment of risk  Weaknesses of Business: 1. 2. 3. 4. 5. Lack of domestic suppliers. New Company. New entrepreneurs. Misallocations of funds. Low priced tiles in some other companies.
    • Contingency plans  Loan from IFIC bank in 2019 for 2nd plant.  Every partner has their nominee to perform in case of their absence.  In case of sudden decrease in demand: Tiles only.  Storage of raw materials: 2 years.
    • Forecasted Net Income.
    • Forecasted Break-Even Point.
    • Sources and applications of funds 1. Agrani bank loan. (130 Crore). Based on factory equipment. 2. IFIC Bank. 3. Our own funds.
    •  A big investment in this field of production, is on the way. This ceramic industry emits less waste and the by products are highly usable.  This industry needs enough manufacturers to get a perfect competition.  Traditional designs are about to extinct.  To, setup an industry of average capacity, it may take 100 crore. But the return is much higher.  There are not too many competitors and also, this is not a monopoly. So maybe, this will be the right time to setup a factory.
    • ?