This document presents a project proposal for a juice extraction and packaging company called Best Beverages (Pvt.) Ltd. The company will produce the juice drink "SummerThrill,Beat The Heat" under the brand name Ramango. Key details include: - The plant will be located in Karachi and have a capacity of extracting 2,112 tons of juice and packaging 8.448 million crates annually. - Total project cost is Rs. 95 million to be financed with 60% debt and 40% equity. Debt will come from three banks and equity from four partners. - Construction is scheduled to take 19 months to be completed by April 2017. - The management team, factory layout, machinery

1. Presented To:
Instructor: Sir Akbar Saeed
Course: Entrepreneurial Finance (MBA – Weekend Program)
Presented By:
• Najma Abdul Sattar
• Umair Usman
• Aymen Afif
• Maliha Sami
Presentation On:
Best Beverages (Pvt.) Ltd. SummerThrill,Beat The Heat

2. PROJECT DESCRIPTION
– Juice Extraction & Packaging
– COMPANY NAME : Best Beverages
– Capacity
• JUICE EXTRACTION : 2112 TONS PER ANNUM
• PACKAGING : 8,448,000 CRATES PER YEAR
• TOTAL COST : 95 MILLION
– DEBT-EQUITY : 60/40

3. PROJECT DESCRIPTION
• LOCATION: Eastern Industrial Zone, EZ/1-P-4
Port Qasim Rd, Karachi 74200, Pakistan
• IMPLEMENTATION PERIOD: 19 MONTHS
• START OF OPERATIONS : 01-April-2017
• LOCAL SPONSORS: Partners, Allied Bank &
Industrial Development Bank
• FOREIGN SPONSORS: Industrial and
Commercial bank of China ( ICBC )

4. CONSTRUCTION SCHEDULE

6. Project Financing Plan
Rs. (mn)
Total Cost: 95
Loan-1(ICBI): 17.1
Loan-2(ABL): 22.8
Loan-3(Industrial Development Bank): 17.1
TOTAL DEBT 57
Equity-1(Partner): 9.5
Equity-2(Partner): 9.5
Equity-3(Partner): 9.5
Equity-4(Partner): 9.5
TOTAL EQUITY 38

7. Location Map
• Eastern Industrial Zone, EZ/1-P-4 Port Qasim
Rd, Karachi 74200, Pakistan.

8. Factory Layout Plan

9. DETAILS OF BUILDINGS
– Total area of land : 20,000 sq. ft.
– Total covered area : 6 kanals
– Main factory buildings : 2,000 sq. ft.
– Raw Material Shed : 1,200 sq. ft.
– Finished Goods Shed : 800 sq. ft.
– Boundary Wall : 150 meters

10. LIST OF FOREIGN & LOCAL MACHINERY
Description Qty
Total Cost
(Rs) mn. Supplier
Washer fruit 1 459 Koldware Industries Pvt. Ltd.
Finisher - extractors pulp & oil 1 1,020 Jiangsu Kuwai Machinery Co,Ltd.
Sorter mango 1 102 Jiaozuo Zhoufeng Machinery Co., Ltd.
Extractor 1 102 Jaffer Brothers Pvt. Ltd.
Pasteurization 1 4,781 Shanghai Changlong Industrial Equipment Co., Ltd.
Cooler 1 122 Dongguan Golden Refrigeration Equipment Co., Ltd.
Packaging machine 1 408 Zahid Packages
Total cost 6,995

11. Manufacturing Flow Diagram

12. Manufacturing Pictorial Process

13. Management Team and Legal Structure
• Management team comprise on;
– Mr. Kasim Feroze Khan, Manager Finance
– Mr. Syed Azfar Naqvi, Manager Marketing
– Mr. Talha Saeed, Production Manager
– Ms. Romana P. Khokhar, Manager HR
• Best Beverages is a private limited company.

14. Presenting by
Aymen Afif

15. Summary of Income Statement
Rs . (mn)
Sales 8,025,600
Less: COGS 7,022,400
Gross Profit 1,003,200
Less: S & A Expenses 241,776
Operating Profit (EBIT) 761,424
Less: Amortization
761,424
Less: Interest Expenses 250,000
Earnings Before Taxes 511,424
Less: Taxes 25% 127,856
Net Profit 383,568
Dividends
Retained Earnings 383,568
EPS 0.21
ROA 0.81%
ROE 2.06%

16. Projected Profit and Loss Account
Constr. Period Year-1 Year-2 Year-3 Year-4
Sales 8,025,600 96,729,600 117,427,200 134,323,200 151,219,200
Less: COGS 7,022,400 84,638,400 102,748,800 117,532,800 132,316,800
Gross Profit 1,003,200 12,091,200 14,678,400 16,790,400 18,902,400
Less: S & A Expenses 241,776 2,902,896 3,523,824 4,030,704 4,537,584
Operating Profit (EBIT) 761,424 9,188,304 11,154,576 12,759,696 14,364,816
Less: Amortization 0 200,000 400,000 400,000
761,424 9,188,304 10,954,576 12,359,696 13,964,816
Less: Interest Expenses 250,000 833,625 713,688 593,750 473,813
Earnings Before Taxes 511,424 8,354,679 10,240,889 11,765,946 13,491,004
Less: Taxes 25% 127,856 2,088,670 2,560,222 2,941,487 3,372,751
Net Profit 383,568 6,266,009 7,680,666 8,824,460 10,118,253
Dividends
Retained Earnings 383,568 6,266,009 7,680,666 8,824,460 10,118,253
EPS 0.21 3.36 4.12 4.73 5.43
ROA 0.81% 11.04% 11.81% 11.99% 12.14%
ROE 2.06% 25.16% 29.18% 32.13% 35.19%

17. Assumptions to the projected Income
Statements
• Selling Price-one Tetra Pack Rs. 20.00/-
• Cost per unit
– Direct Material = Rs. 8
– Direct Labor = Rs. 4.5
– Direct + Indirect Over Heads = Rs. 5
Annual Output-Number of Crates 1,408,000 One crate consists of 6 Tetra Packs
(All figures in No. of Crates)
Constr.
Period Year-1 Year-2 Year-3 Year-4
Capacity Utilization 5% 60% 70% 80% 90%

18. Break Even Analysis
• Total production = 8,448,000 packs/year
• Unit price = Rs. 20/-
• Break even = 422,400 units

19. Presenting by
Najma Abdul Sattar

20. Manpower Schedule - Production
Description
No. of
Employees
Salary per Employee
Per Month (Rs)
Food Technologist 1 55,000
Processing Plant Operator 5 50,000
Skilled Machine Mechanic 1 30,000
Supervisor 1 35,000
Helper 2 20,000
Semi Skilled Laborers 5 20,000
Total 15 210,000

21. Manpower Schedule – Admin & Selling
Description
No. of
Employees
Salary per Employee
Per Month (Rs)
Chief Executive 1 120,000
Procurement Officer 1 60,000
Accounts Officer 1 45,000
Admin Officer 1 35,000
Security Guard 3 20,000
Driver 2 25,000
Total 9 305,000

22. Industry Analysis
• International Market Analysis:
• The juices market was led by fruit drink (0 to 29%
juice, representing 72.2% of total value)
• Nectar (30% to 99% juice)
• 100% Fruit Juice (from concentrate) with a 23.5%
& 3.8% market share
• Vegetable Juice accounts for the remaining 0.5%
share.
• The rising consumption of Packaged Products
reflects the demand for the organized juice
market.

23. Industry Analysis
• Local Market Analysis:
– Nestle & Shezan have loyal customers over the
years because they are very old and customers are
aware with their merits & demerits
• Beverages Market In Pakistan:
– Bottled Water
– Carbonated Drinks
– Sport/Energy Drinks
– Juices

24. Competitor Analysis
• Competitor’s Current Market Share in Soft
Drinks
– SHEZAN
– (35% market share in Pakistan)
– NESTLE
– (45% market share in Pakistan)
– MAAZA (by Coca-cola)
– SLICE (by PepsiCo)

25. Presenting by
Maliha Sami

26. Target Market
• Primary Market:
1. Kids – Fond of Fruit Juice (fond of Mango)
2. Teens – More Experimental
3. Youth – Experimental & More Buying Power
4. Working People
5. House Wives
• Secondary Market:
1. Travel Industry
2. Airlines, Railways and Local Transport Systems
3. Movie Theatre and Malls.
4. School & Colleges.
5. Hotels & Restaurants etc.

27. Marketing Plan
• Product Elements:
– Brand Name: Ramango
• (Drive from word RAW Mango. Locally known as ‘KERI’)
– Logo: Mango – King of fruits
• We want to show the rawness from our logo as well, so we
have used EDO SZ font which is Stroke Font.
– Color Scheme: Yellow & Green
• When we think of mango or raw mango, first color that
clicks in our mind is either ‘yellow’ or ‘green’.
– Slogan: “Summer Thrill, Beat The Heat”
– Ingredients: Raw Mango, Sugar, Salt & Honey

28. Marketing Plan
• Product Features:
– Ramango is a 100 % Pure Raw Mango Fruit Juice
which will be produced & marketed by Best
Beverages.
– Provide Proteins, Minerals & Vitamins.
– Beneficial for kidneys, sharpen the memory.
– Unique & Excellent in Taste.
– Gives instant Energy & Freshness.

29. Marketing Plan
• Product Life Cycle:
– Our product lies in the Introduction Phase of PLC.
• Low Sales
• High Cost Per Customer
• Minor Profit Margin
• Few Competitors
– Objectives: To create awareness of product
• Offer a basic product
• Price At Cost-plus
• Selective Distribution
• Induce Trial Via Heavy Sales Promotion

30. Marketing Plan
• Pricing Strategy:
– As a new comer, our pricing strategy is to
introduce our product in the market at low price
so as to create huge demand among existing /
competitor’s offerings.
– Once we come up in the demand, we will
gradually increase our price and will provide more
efficient and unique juices variety to capture
larger market share.

31. Marketing Plan
• PLACE:
– At the initial phase, we would be outsourcing the
raw material (mangoes) & packaging of juices
under BB brand.
– Raw Mango would be purchased from Gharo, Sind
area. Packaging would be sub-led to local
producer.
– Distribution Channel:
• Mode of Transport: Road Transport

32. Marketing Plan
• Promotion:
• Our objective is to create brand awareness as we are
in introduction phase.
• Use of :Print Media, Radio Adds, Hoardings in Public
Spots, Sample Distribution, Organizing Events, TV
Commercials etc.
• Tie-Up with upcoming KID’s Summer Camps at
various hotels.
• Special Ramadan Offers.
• Occasional Gift Packs (such as EID Greetings etc.)

33. Promotion
Web Marketing
• Creating a Fan page on Facebook
• This will enable the brand to keep it’s TA engaged and
updated with introduction of new flavor and events
• Creating an active account on for regular tweets on
product and event updates which will ensure
interaction with TA.
• Followers will be encouraged to tweet their
suggestions.

34. SWOT
SWOT ANALYSIS
INTERNAL
STRENGTH WEAKNESS
Adequate availability of Raw
Material
Seasonal Availability of Raw Mango
Price, a competitive advantage Brand Acknowledgement
Natural Product Late Entry into the market
EXTERNAL
OPPORTUNITY THREATS
Participation with a growing
industry
Cut Throat Competition
Competitive Advantage over
Carbonated soft drink.
Unstable Government policies
Possible deal with Pakistani
Sports associations
Rising Global Warming

35. Mission/Vision
Company’s Mission Statement:
• “To be a leading producer of organic/ pure fruit juices by
dedication to nature, corporate & product hygiene, dynamic
leadership & command to our partners & stakeholders.”
Vision Statement:
• “To be Pakistan’s premier fruit Juice Company offering
nutritious & superior quality tasty drinks to its consumers.
• By April 2017, we aim to achieve 30% of market share and
would be the best in terms of consumer value, customer
service, and employee talent with consistent and
predictable growth.”

36. Q&A
• ? ??