Sesame seeds business plan


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Sesame seeds business plan

  2. 2. EXECUTIVE SUMMARYThe project idea is to establish an ultra modern sesame seed cleaning factoryin Lagos State. The facility will clean 30 tons per day of sesame seed.Raw sesame seed will be supplied to the factory from various sesame seedproducing states of Nigeria.The biggest problem with Nigerian sesame seed is that due to inadequatecleaning facilities in the country, over 40% of our annual production ofsesame seed is cleaned manually and exported. This situation had reallydevalued the price of Nigerian sesame seed by over 20% of the Internationalprice.However, our facility will be able to clean sesame seed to purity of 99% andas such put us at an advantage and enable us get better price and improvethe quality position of Nigerian sesame seed.Through this project, we shall be able to provide about 200 jobs both directlyand indirectly.The project shall move from a modest annual turnover of N112, 500,000.00 inthe first year to N1, 000,000,000.00 in five years.It will also earn foreign exchange for the nation and provide market forsesame seed farmers in Nigeria. 2
  3. 3. Table of Contents pageExecutive Summary 1About the Company: 3 Proposed name 3 Company location 3 Core business 3 Ownership 3 Vision 3 Mission 3 Objective 3Values 4Strategies 4Goals 4Revenue Source 5Strength 5Weakness 5Opportunity 5Threat 6History of sesame seed 6Uses 6Consuming countries 6Season for sesame seed 7Producing states 7Nigeria annual production 7Financial Analysis/outlay 8 3
  4. 4. ABOUT THE COMPANYPROPOSED NAMES- (1) ANGA & DULAH NIG. LTD. (2) SESAMO INTERNATIONAL LTD. (3) SECOM INTERNATIONAL LTD (4) SESECOM LIMITED (5) Any other name that will be acceptable.COMPANY LOCATION – LAGOS with warehouse capacity to handle 30,000(50Kg) bags of exportable sesame seeds.COMPANY BUSINESS 1. Engaged in buying raw sesame seed. 2. Processing sesame seed to 99% purity, bagged in 50Kg polypropylene sacks. 3. Export to Turkey, Japan, India, Israel, Egypt, France, China, and United States of America. 4. Agro commodity trading.CORE BUSINESSSESAME SEED TradingSESAME SEED processing into oil and other value added forms.OWNERSHIP – To be decided by financier and other stakeholders.VISIONTo become the foremost sesame seed processor and exporter in Nigeria.MISSIONTo buy and process sesame seed into various high quality and value addedproducts that will be traded globally to satisfy customer needs.OBECTIVES To capture 2% of Nigeria’s sesame seed business in our first year of operation (1,500 tons). To control 15% of sesame seed business in Nigeria by our fifth year of operation. Achieve regular profits and good returns on investment. Ensure that our work force is well motivated and remunerated. 4
  5. 5. VALUES Professionalism Customer friendly IntegritySTRATEGIES Rent a warehouse with capacity to contain 1,000 tons of sesame seed to ensure our products are well kept. Acquire 30 tons per day sesame seed cleaning plant to start with. Engage in aggressive International marketing to ensure that we sign contracts to supply our sesame seeds to major buyers and end users overseas even before we commence production. Deploy aggressive product sourcing mechanism to ensure that we get regular and consistent supply of sesame seeds. Company’s internally generated revenue will fund future growth. Encourage and effectively utilize suppliers’ credit to grow our business. Acquire additional cleaning machine by the 2nd year. By the 3rd year, we expand our operation to include producing sesame oil, haul sesame seed and other value added products to serve our high end customers. GOALS Incorporate Company comes June 2006 To achieve sales of one billion (N1, 000,000,000.00) naira representing 15% of the sesame business in five (5) years (2006- 2011). Start by capturing 2% of the sesame business in Nigeria worth about N112, 500,500.00 in 2006/2007. Rent warehouse space in Lagos (close to port) with capacity for handling 1,000 tons of sesame sees by June 2006. Acquire 30 tons per day sesame seed cleaning machine that will be installed in the warehouse by July 2006. Arrange and sign contract (export & local) for 1,500 tons of sesame seed under very flexible terms that allows for price review and delivery July 2006. Arrange 20 main up country suppliers of sesame seed July 2006. Hire additional cleaning facility to help our operations September 2006. Hire a 50 man labour gang to be on standby for loading and off loading July 2006. Test run and commence sesame cleaning in our Lagos facility August 2006. 5
  6. 6. Commence production of sesame oil, hulled sesame seed, and other value added products by the 3rd year (2008). Raise 13 million (N13, 000,000.00) naira as start up capital May /June 2006. Arrange refinance facility of fifty million (N50, 000,000.00) naira revolving ready for draw down by August 2006.PROJECT REVENUE SOURCESWith this project, we shall generate revenue from the following sources: 1. SESAME SEED EXPORT/Trading 2. SESAME SEED cleaning/processing 3. Warehousing 4. Export of other Agro commodities.STRENGTH The writer of this business proposal (Mr ANGA) has 14 years of experience in commodity trading and export and he is ready to work for the actualization of this vision. That within this period, Mr. ANGA has had adequate contracts (suppliers & International buyers) that will fast tract the growth and success of this enterprise. With initial capital of thirteen million (13,000,000.00) naira and back up fifty million (N50, 000,000.00) naira refinancing capital, we shall be able to achieve our objectives. Our sesame seed cleaning machine will give us same advantage and credibility with which to do business and achieve our 2% market share.WEAKNESS Lack of funding Infrastructure not in place.OPPORTUNITIESGlobal consumption of sesame seed is put at about 3,000,000 tons which isyet to be met.Current demand for Nigerian sesame seed is very high considering theincrease of fast food outlets and consumer preference for sesame seedderivatives. 6
  7. 7. The season in Nigeria commences in August at what time price is usually low. Meanwhile, current export price is $800 per ton C&F which is relatively very high. THREATS Olam currently the biggest buyer of sesame seed in Nigeria intends to increase its market dominance. New buyers may emerge to take advantage of the lucrative nature of the Nigerian sesame business. Other Nigerian exporters may decide to increase their volume of transaction.HISTORYOF SESAME SEEDSSesame seed is one of the oldest seeds known to mankind. Sesame seed mayhave originated from Asia or Africa and is now grown in most of the tropicaland temperate regions of the world.As far back as 5,000 years ago, the Chinese were using sesame seed oil forfuel and for making ink. Also, paintings in ancient Egyptian tombs dating back to 4,000 years showBakers sprinkling sesame seeds into dough.The Roman Empire is not left out in the use of this ancient seed as sesamewas used as spreading for bread amongst other things.USESSesame seed has very high oil content of about 50-53%. It is used in makingedible vegetable oil (sesame oil).Sesame seed is also used in many food preparations worldwide.Due to its unique nutty flavor, crunchy sensation and small size, it hasbecome a very important ingredient in making hamburgers as toppings onhamburgers buns.Sesame seed also go well with chicken and other meats; it can also besprinkled over biscuits, bread rolls, and pizza.GLOBAL PRODUCTIONWorld production of sesame seed is estimated at 2,500,000 tones of whichabout 50% is consumed in the producing countries.However, this trend of consumption is not same in Nigeria in that almost allof Nigeria’s 75,000 annual productions are exported.CONSUMING COUNTRIESJapan, Turkey, United States, India, Israel, Kuwait, Syria, Saudi Arabia,China, Egypt, Morocco, Poland, Italy, France and Iran. 7
  8. 8. SEASONIn Nigeria from August the season for sesame seed begins.PRODUCING STATESBenue, Taraba, Kaduna, Nasarawa, Plateau, Kano, Jigawa, Zamfara,Katsina, Borno and Adamawa states etc.NIGERIA PRODUCTIONNigeria produces about 75,000 tones of sesame seeds annually worth overseven billion (N7, 000,000,000.00) naira. 8