4. Project
The project is about we want to make investment in international market
So for this we want to see which sector makes our investment profitable
Further we calculate NPV of three companies in international market and
then decided whether to invest or not
We selected bakery products companies in Saudi Arabia
Currency in Saudi Riyal
Cash flows are founded from projection sales minus projection cost of
sales
Exchange rate is taken from internet
Currency is different so we multiply cash flows with exchange rates.
6. Introduction to Al Marai
Al Marai Company is the world’s largest vertically integrated dairy company and the
region’s largest food and beverage manufacturing and distribution company
Al Marai Company continues to provide nutritious and healthy products to
consumers of all ages, with growth stemming from our bedrock principle, “Quality
you can trust.
Founded in 1977, more than 38 years of sustainable growth,
7. Mission Statement
To provide quality and nutritious food and beverages that enrich our consumers
lives every day.
Vision Statement
To be the consumers’ preferred choice by leading in chosen markets with superior food and
beverage products.
20. Introduction to Americana Group
Americana Group’s main lines of business are operating food & beverage outlets,
as well as manufacturing food products. With a network of over 1,630 outlets, it is
not only the largest operator of restaurant chains in the MENA region, but also one
of the most successful franchise operators in the whole world.
In the food manufacturing and processing sector, Americana Group is recognized
as the Middle East’s leading purveyor of quality food products. With a portfolio
spanning 9 high quality brands – such as California Garden, Farm Frites, Koki and
Americana Meat – its food products find their way into millions of MENA
households every day.
21. To maintain a position in the food industry as the first choice of consumers for
high quality products, value and experience.
Core Values
People
Quality
Brand
Consumers
Performance
Responsibility
22. Sales Of Americana
Year Sales
2009 922274
2010 1054632
2011 1134413
2012 1335685
2013 1429418
2014 1552824
25. Sales For Next Years of Americana
2015 1552824+1552824(.110595) 1724559
2016 1724559+1724559(.110595) 1915287
2017 1915287+1915287(.110595) 2127108
2018 2127108+2127108(.110595) 2362355
2019 2362355+2362355(.110595) 2623620
2020 2623620+2623620(.110595) 2913780
26. Calculation Of NPV
YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6
Initial
investment
8000000 - - - - - -
Cash flows - 266491 220749 275438 294560 301256 312154
Exchange rate - 27.92 27.92 27.92 27.92 27.92 27.92
Translated
amount
- 7440428 6163312 7690228 8224115 8411067 8715339
Required rate - 12.56% 12.56% 12.56% 12.56% 12.56% 12.56%
Discount
factor
- 1.1256 1.2669 1.42610 1.6052 1.8068 2.0337
PV - 6610188 486487 5392489 5123420 4655228 428459
28. Introduction to Sadafco
Saudia Dairy and Foodstuff Company (SADAFCO) has since become a leading, world-
class food manufacturer, seller and distributor in the Middle East.
Operations across the Middle East
Market leader in Saudi Arabia in Milk, Tomato Paste and Ice Cream, marketing its
core products
SADAFCO was merged with two other dairy companies and ownership was
transferred to Saudi and GCC interests
29. Mission Statement
To develop, produce and market a range of nutritious food propositions for consumers of all age
groups and create maximum shareholder value through team work
Vision Statement
To be the Brand of Choice
42. Conclusion
Name Of Company Net Present Value (NPV)
Al Marai 433296005
SADAFCO 162086383
Americana 30131660
43. Conclusion
Calculation of NPV is positive so we
can invest in Saudi Arabia and
introduce A new bakery product
business .NPV tells that if we invest
then we can earn profit in future
