AYZ industries plans to introduce a bottled water business producing 33cl and 75cl sparkling water for the Ibeju/Lekki market in Lagos. They will produce 1 million bottles in the first year and capture 0.08% market share. They require a startup capital of N15 million to purchase equipment and supplies. Their financial projections estimate annual sales of N42 million with over N10 million in post-tax profits in the first year.

1. By
Angela Itambo
08033280453
www.angelaitambo.com.ng

2. ITEMS PAGE
 EXECUTIVE SUMMARY 3
 COMPANY OVERVIEW 4
 BUSINESS OPPORTUNITIES 5
 MARKETING STRATEGY 6-8
 HUMAN RESOURCES STRATEGY 9
 FINANCIAL ANALYSIS 10
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3. AYZ industries plans to introduce sparkling table water with sizes ranges
from 33cl and 75cl to the Ibeju/ Lekki market of Lagos State. Our strategy
is to capture the middle to middle upper class income bracket of the
market.
We wish to capture 0.08% of the market to make loyal and repeat buy
customers and increase market share organically. Our decision to invest in
this form of business is based on the inadequate portable water supply in
the once swampy part of Lagos, which is fast becoming a property haven
for up starts in the Nations commercial hub of Nigeria.
Our target market compromises of the following:
Corporate market made up of hotels, restaurants , schools springing up in
the axis
Households who have boreholes, but due to the topography cannot have
access to clean water to boil and drink even to brush their teeth every day.
Our mission as a newbie is to produce and sell at least 1million bottles of
our product , given that man can stay 40days without food, but can only
survive 72hours without water. Despite the already brands in the market,
we are confident we can curve our own market share. This we sure would
do as we stick by our mission as a business which is to produce products
of the highest quality consistently. To achieve this we need in addition to
competent manpower and regulatory permits and a good site for our
factory, we need startup capital of N15million, we will bring N1,250,000
and source for the rest. However from projections we anticipate a turnover
of over N40million and a profit after tax of over N10million. The plan shows
how we will achieve this ;given the challenging business terrain of the
Nigerian business environment.
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4. AYZ industries wishes to introduce a brand of drinkable bottle water in the range of 33
cl and 75cl which will be distributed to the Lekki metropolis of Lagos state . The
company will be registered as a Limited Liability company with the Corporate Affairs
Commission in Nigeria, this will be in line with the regulatory procedures of the Country.
Our goals as a business is to reduce the demand gap of drinkable water in the growing
Lekki population of Lagos state , although surrounded by the Atlantic ocean,it has a
poor underground water which makes drinkable water scarce, and given the
environmental hazards of polythene sachet water known as pure water which is now
consumed we offer a better alternative which is our 33cl of bottle water as well as 75cls
for families and events.
Our objectives :
 Provide alternative to sachet water which has been labeled as hazardous to the
environment and a major contributor to flooding
 Be the number one brand in the Ibeju Lekki axis within 12 months of introduction of
our brand
 We also wish to produce at least 1 million bottles of water and generate at least
N42million naira which is equivalent of over 160 , 000 pounds
Our mission
 Quality: We will ensure that the quality of our products is made from the highest
production process and it is sustained.
 Innovation: We will continuously innovate our production process to bring the best
products to our customers, this will be needful especially as we expand in the future
to areas where the underground water may not be to appropriate for consumption
as well as imbibe recycling of our bottles
 Integrity: We wish to build trust amongst our customers , this we believe will ensure
there is a brand loyalty and to achieve this we will ensure our processes are
standardised and employees are schooled on the need to adhere to them
keys to success:
 Set up our industry in Surulere axis of Lagos, the terrain has clean underground
water which is the major raw material we need to have a good quality water.
 We also will install water purification process which will enable us purify unclean and
unsuitable water to make it good enough to drink
 We will employ a conducive working environment to ensure there is team work to
ensure that there increased productivity.
Start up cost
 We need the sum of N15million to kick start this project and this will be generated
from the owner funds and outside investors
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5. Our business will be located in Surulere, area of Lagos state ,our decision to locate
the factory is based on the good topography of the area which makes it easy to access
good quality underground.Although our production will be based in Surulere, our sales
point is the Ibeju-Lekki area of Lagos , our business will produce drinkable bottle water
which will replace the sachet water and provide an affordable alternative as well as the
75cl for events and family gatherings. Our decision to distribute there is based on the
following demographics:
 Almost all affluent Nigerians and those in the middle income bracket, want to own
properties in this highbrow corridor.
 The once dreaded swampy neighbourhood has become the toast of property
investors
 Lekki is also one of the fastest developing urban areas with an annual economic
growth of 16.8% in Lagos, Nigeria and Africa as a whole.
 Ibeju Lekki L.G.A had an estimated population of 99,540 people this is according to
the Lagos state government and this growing at an alarming rate of
Potentials customers are as follows:
 Households who will buy our brand of water which will be ideal for them to consume
at once
 Events such as celebratory occasions such as weddings, birthdays
 Hotels and restaurants
 The aforementioned cuts across the strata of the society which can be found in the
area, from low income which are the natives to low income , average income to
middle to upper income earners
Our target customers
 We wish to target the 0.08%f the target market which cuts across the middle class to
upper class echelon of the market , however we will are not excluding any one that
needs portable drinking water.
Our competitors
 According to industry watchers there at least 31,820 water processing factories in
Nigeria, on an average of 850 per state, including the Federal Capital Territory. This
translates to about 795,500 employees.
Top of them:-
 EVA a brand that is from the stable of the Nigerian bottling company, the produce 1
litre and 50 cl of water
 Pure life a brand from Nestle
however they donot produce 33cl bottle water and the 75cl and due to the
insatiable desire for drinking water, our value proposition is to fill this gap by
producing these sizes with the highest production standards of bottled water
production consistently.
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6. Sales projection
Sparkling will produce two sizes of table water, 33cl water for households, events
and 75cls for large .
Within the first 12 months, we hope to achieve the following;
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Production
capacity
Capacity Per
day
Liters 2,000 Litres 1,000
In Centiliters 200,000 In Centilitre 100,000
Bottled Water
Container 75 Cl Size
75 33
Output Qty in
Bottles
2,667
33Cl Size
1,333.5
Wholesale
Price per 75Cl
Bottle =N= 35 =N= 17.5
Revenue per
Day =N= 93,333 =N= 46,666
Revenue per
Month 25 days =N= 2,333,333 25 days =N= 1,166,666
Revenue per
Year
12 months
=N= 28,000,000
12 months
=N= 14,000,000

7. 33cls N6 75cls N12
12months 4,400,500 12months 8,801,100
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8. Our target market are:
 Drinks and water specialists; that serve events from wedding to
birthdays, it is estimated by the Lagos state government that Lagosians
spend an average of 3billion naira on events, this especially with our
target market fall within the middle to middle upper income echelon
of the society.
 Hospitality venues from Restaurant, to recreational centers and
hotels( Lekki axis according a report by The total of almost 9,600
rooms represents the mainstream hotel industry in the city, a growing
number are sighted within that axis, we intend supply as well as
contract manufacture for our clients
 Households made up of a greater number of up ward mobile
individuals ;we wish to target at least 0.1% to meet our target in sales
Sales strategy
 Our sales strategy is to use direct selling tactics to meet the end users
directly
 We wish to consistently visit our customers to meet their needs so that
there will be no gap in supply.
Marketing plan
 We will ensure we compile with the regulatory and local councils laws
within regards doing our business
 This is needed and with the distributive vehicle and our active sales
officers we will constantly distribute our products
 Our van will be properly branded, which is meant to gain exposure for
our brand
 We will also use social networks such as Face book to engage with our
on-line community . We will sponsor our page on the platform
regularly, in addition we will use twitter to create brand name
remembrance. This we intend to do within the 12 months of operation,
we will review our strategy quarterly to ascertain the impact
 We will collaborate outdoor caterers to supply the water while they do
focus on their strengths , same with event coordinators
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9. HIRING STRATEGIES
 Our business will rely on referrals from those in the industry especially with regards
the hiring of a competent technical supervisor especially from members of the table
water trade body. In addition we will place ads in on-line job sites, common and
effective in Lagos is Jobberman for other positions.
Recruiting and selection
 We wish to outsource this function when we launch , however insist that a member
of the trade association be present to use the peculiarities of the industry to guide
the process.
 We will also use the expertise of this organisation in assisting in recruiting and
training, we know that the human resource is key to success to the business, that is
why we spend a little more to do.
 In future we wish to include a vacancy button on our web page, which will give
others the opportunities to place their CVs subject to when the need arises.
 We will bring an officer from the association of table water producers(the umbrella
body to come with a team to train our staff )
Motivational strategies
 To ensure we reduce staff turnover we wish to do the following:
 Create a conducive working atmosphere , which will promote hard work, dignity of
labour and respect.
 We will annually give our workers part of the profits which can be beneficiary to
them aside their salaries
 We will provide health insurance, given that this a factory, accidents may happen
Manpower needs
aside the owner manager , that will oversee the entire the business and earn the
sum of N80,000 as salary we need the following staff
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Description Unit/Day Rate Cost /Day Days
Cost Per
Month
=N= =N= =N= =N=
Superviso
r
1
1,667 1,667
30
50,000
Productio
n Staff -
Operators
5
1,500 7,500
30
225,000
Drivers 2
1,333 2,667
30
80,000
Assistant
Drivers
2
667 1,333
30
40,000

10. Capital expenditure Profit and loss account
AYZ industries needs the sum of N15million
Naira to set up this factory in the Surulere
Suburb of Lagos this will be used for the
following:
LAND AND BUILDING
BOREHOLE
OVERHEAD TANKS (WITH BASE CONSTRUCTION)
( DELIVERY / DISTRIBUTION VAN )
PRODUCTION EQUIPMENT
MANUAL BOTTLE FILLING MACHINE
AUTOMATED BOTTLE RINSER OZONE
AUTOMATED BOTTLE CODING MACHINE BOTTLE
CAPPING MACHINE SHRINK WRAPPING MACHINE
OFFICE EQUIPMENT
FILE CABINETS FURNITURES AND FITTINGS OFFICE
FURNITURE & FITTINGS GENERATOR 15 KVA
WORKING CAPITAL
Assumption:
Sales Receipt from bottled water in a month is put at 90% of
sales to Corporate Customers the 10% balance is collected
in subsequent month.
The direct cost of the output is estimated at average 30% of
selling price
The budgeted Unit of job / income / cost per month are
based on the industry standards
Expected loan is to pay 10% per annum, the promoter will
bring N1,250,000 of saved savings to the business
INCOME
SALES INCOME:
DIRECT COST
42,000,000
13,201,600
Less (closing stock)
GROSS PROFIT
EXPENDITURE
SALARIES
TRAVEL EXPENSES
PRINTING EXPENSES
INSURANCE
RATES/PERMITS
NAFDAC/TESTS
INTERNET/TELEPHONE
PROMOTION
ELECTRICITY
PROFESSIONAL
SERVICE
DEPRECIATION
BANK CHARGES
INTEREST ON LOAN
TOTAL
NET PROFIT
TAX @ 30%
NET PROFIT AFTER
TAX
28,798,400
150,000
28,648,400
5,700,000
187,200
1,790,000
50,000
1 889,568
125,000
318,000
100,000
90,000
250,000
676,500
60,000
137,500
12,807,368
15,841,032
(4,752,309)
11,088,723
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