Joltori Private Limited1, Paribag, Shahbag

Dhaka - 1000

Co-owners:

1. John Jonathan GomesPhone no. 01715-006995e-mail address: jonathan_gomes@hotmail.com

2. Md. Shahidul IslamPhone no. 01715-384203

3. Md. Anisur RahmanPhone no. 0167-4610005

4. Kudrat Ullah Mustafa ZakiPhone no. 01817-524982

5. Tania IdrisPhone no. 01911-148170

Nature of BusinessThis business will provide water transportation services between various locations

in and around Dhaka city using the rivers surrounding the city and the lakes in Dhanmondi area and in Gulshan-Banani area. Employed service engineers will manage service and maintenance. The project shall be managed through leasing system.

FinancingInitial financing requested is a BDT 10,000,000 to be paid off over five years.

This debt will cover manufacturing the lake-trucks, acquiring route permit, employing service engineers, building waterfront dock / port, conducting feasibility test, and advertising cost.

Statement of confidentiality of reportThis report is confidential and is the property of the co-owners listed above. It is

intended only for use by the persons to whom it is transmitted. Any reproduction or divulgence of any of its contents without the prior written consent of the company is prohibited.

1

Industry Analysis

A. Future outlook and trends

Given the economic trend of Bangladesh, and particularly the income level of the

majority of the population living in Dhaka, the expenses of both local and private

transportation is increasing day by day along with the rise in the price of most other

commodities. The ever-increasing transportation cost is a challenge to the middle and

lower level income earners and their dependents. In this situation, a transport with

comparatively less fare is certain to attract commuters.

While the roads are getting more and more congested with traffic, and movement is

getting slower due to over crowded roads, utilizing the available water routes within

the city would be the right use of resources and technology.

B. Analysis of competitorsThe market this venture is aiming to enter is currently unexploited. Therefore, no

information exists on total industry sales over the previous years. There are currently

no competitors in the market, except for some trawlers carrying passengers from

Gabtali to Sadarghat in a primitive manner. In the city where people are often stressed

under being stuck in traffic jam, an alternative mode of transportation is definitely a

selling idea.

C. Industry and market forecastsAs this is a totally new mode of transportation within the city, effective promotion and

marketing can make the city dwellers accept and avail the service. The only change

that takes place in the market of transportation services is that the consumer need is

ever growing.

Among other things, the most appealing product values that are certain to create a huge

demand for this service are:

The transportation will not be affected by the now unavoidable traffic congestion of the city roads,

It is a sure of saving time while commuting, It offers a comfortable journey, as there will be no jerk or bumps, and it will be

a seating service, Comparatively less expensive than most other modes of transport, Short distance water transportation service, Environment friendly water vehicle that will be appealing in this time of green

campaign, The ride is nearly 100% safe, as there are chances of road accident.

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Description of the venture

Joltori Private Limited, located in Dhaka city, is a company providing water transport

services. It is based on the belief that city dwellers are facing difficulties in reaching their

offices, business center and other destinations in just time. They are killing their time on

buses, cars, and other vehicles as they stuck in heavy traffic jam in the city. It is difficult

for people to maintain schedules. But time is money. So they do not want to loose their

valuable time on the road. Thus the necessity for alternative transport is acute.

In this twenty first century, people need fast, safe and hassle free rides. The main

objective of the venture is to provide better rides for Dhaka city dwellers that are free

from the terrible traffic jam.

The lake and other waterways like rivers and canals will be used for lake truck.

Dhanmondi lake, Gulshan lake, Burigonga, Turag, Sitolokha, Balunodi, etc. will be the

routes.

It will bypass the traffic jam area and save time as well as money. The lake truck ticket

can be purchased earlier at designated places. It will not require the passengers to stand in

a long queue.

The lake truck will carry 100 passengers in the river Burigonga, Turag, Sitolokha and

Balunodi. Another medium size lake truck will carry 50 passengers in the lakes within

the city. There will also be speedboats for emergency needs at a higher fare.

Production Plan

There will be no manufacturing plant under the company's ownership. Lake truck and its

accessories will be manufactured in the local shipyard on subcontract basis. The contract

will be placed through tender schedule process, upon successful review of bidders.

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Operational Plan

The company will take route permit from BIWTA and Dhaka City Corporation. The

Company will appoint a CEO who will report to the Board for all operational duties and

responsibilities. Under the CEO there will be some general managers for Customer

Services division, Purchase and Maintenance division, Finance division, and Marketing

division.

Customer service division includes some departments - Engineering service team, Ticket

department, Customer Care Center (call center), Vigilance Team for quality service

inspection. The Head of customer service will be the operational chief for the day-to-day

operation of the lake truck.

No passenger will be carried beyond the seat capacity of the lake truck. Life jackets must

be available for every passenger in the lake truck. All safety measures will be taken for

safe journey. A reasonable ticket fare will be charged comparing to other transports

system, so that it will be an economy choice for the customers to use the lake truck.

The companies operation will be conducted by some of the most efficient and dedicated

employees to ensure the proper customer service.

First of all, the project will be implemented on a trial basis using one route from Ashulia

to Sadarghat launch terminal, which will have a few stoppages in-between at some

landing stations.

If the first pilot project succeeds, the project will be expanded through introducing Lake

Truck on different routes.

Employees will ensure the uninterruptible transportation system that will save the time by

keeping people from standing on the queue for a long time.

There will be half -month, and one-month traveling packages for regular travelers.

There will be a trouble shooting team to solve the technical problem of the vehicle and

diagnosis all of the water trucks periodically to keep them all in good condition in order

to ensure their longevity.

Once the project become fully operational in and around Dhaka, the service will be

introduced outside Dhaka, preferably in Foy's Lake, Cox’s Bazar, Enani Beach, etc. to

attract tourists for a thrill ride. It will be breaking new grounds, as there is no quality

transportation system available in those tourism zones.

4

Marketing plan

A. Pricing

Considering the three important elements of pricing costs, margins or markups, and

competition the fare of ride for every passenger will be BDT 4 per kilometers.

B. Distribution

Joltori Private Limited will distribute its service to the passengers through the following

distribution channels:

Ticket counter

Customers can buy tickets from the ticket counters at lake truck stations.

Internet

A website will be developed which will provide information about schedules of the lake

trucks, and other necessary information customers want to know. Moreover, customers

will be able to book or confirm their tickets through the website.

C. Promotion

Promotion is the way to communicate, inform and persuade customers to demand a

particular service. Promotional plan for Joltori Private Limited includes the following:

Internet

A lake truck fan page will be opened on Facebook to attract and inform the potential

passengers.

Billboards

20 billboards will be placed in major locations, usually crowding areas.

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Banner

500 banners will be used at various street corners and road turns through several phases.

Radio

40 promos, 4 per day through using Radio Foorti.

D. Controls

The effectiveness of the marketing plan will be evaluated based on the following criteria:

Ticket sold in taka

The actual sales of tickets will be compared to desired sales in evaluating the

effectiveness of the promotional activities.

Feedback from the passengers

Customers' comments about the promotional plan will be analyzed.

Necessary actions

Based on the customer comment and other findings measures will be taken to modify and

upgrade the existing marketing plan.

6

Organizational plan

A. Form of ownership

In order to achieve organizational goal effectively and efficiently ownership will be in the

form of partnership. Reasons behind selecting partnership include:

Collaboration: As compared to a sole proprietorship, which is essentially the same

business form but with only one owner, a partnership offers the advantage of allowing the

owners to draw on the resources and expertise of the co-partners. Running a business on

one's own, while simpler, can also be a constant struggle. But with partners to share the

responsibilities and lighten the workload, members of a partnership often find that they

have more time for the other activities in their lives.

Tax advantages: The profits of a partnership pass through to its owners, who report their

share on their individual tax returns. Therefore, the profits are only taxed once (at the

personal level of its owners) rather than twice, as is the case with corporations, which are

taxed at the corporate level and then again at the personal level when dividends are

distributed to the shareholders.

Simple operating structure: A partnership, as opposed to a corporation, is fairly simple

to establish and run. No forms need to be filed or formal agreements drafted (although a

partnership agreement is useful in the event of future disagreements). The most that is

ever required is perhaps filing a partnership certificate with a state office in order to

register the business's name and securing a business license. As a result, the annual filing

fees for corporations, which can sometimes be very expensive, are avoided when forming

a partnership.

Flexibility: Because owners of a partnership are usually its managers, especially in the

case of a small business, the company is fairly easy to manage, and decisions can be

made quickly without a lot of bureaucracy. This is not the case with corporations, which

must have shareholders, directors, and officers, all of whom have some degree of

responsibility for making major decisions.

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Acquisition of capital: Partnerships generally have an easier time acquiring capital than

corporations because partners, who apply for loans as individuals, can usually get loans

on better terms. This is because partners guarantee loans with their personal assets as well

as those of the business. Banks also perceive partners to be less of a risk than

corporations, which are only required to pledge the business's assets. In addition, by

forming a limited partnership, the business can attract investors (who will not be actively

involved in its management and who will enjoy limited liability) without having to form a

corporation and sell stock.

B. Identification of partners

Each partner will invest equal amount of money

Five partners will share the profit and loss equally

Partners must to continue with the business for at least two years

Partners are allowed to quit after two years

Partners may withdraw sixty percent of total profit and rest must be reinvested in

business for expansion

Partners are allowed to transfer ownership outside existing partners.

C. Authority of principal

Every partner will have equal authority in making decision. In case of conflicting

situation majority will be counted to resolve the issue.

D. Management team background

In order to run the business smoothly all partners will also take part in the Management

team as it is presented in the following organizational plan:

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Management Structure

Chief Executive Officer: John Jonathan Gomes, MBA in Management from DU, is responsible to oversight all Chief Officers’ execution of strategies taken.

Chief Financial Officer: Kudratullah Mustafa Zaki, MBA in Management from DU, is responsible to implement the financial strategies and will report to the Chief Executive Officer.

Chief Customer Service Officer: Md. Shahidul Islam, MBA in Management from DU, is responsible to implement the financial strategies and will report to the Chief Executive Officer.

Chief Marketing Officer: Anis, MBA in Management from DU, is responsible to implement the marketing strategies and will report to the Chief Executive Officer.

Chief Purchase and Maintenance Officer: Tania Idris, MBA in Management from DU, is responsible to implement maintenance strategy and will report to the Chief Executive Officer.

E. Roles and responsibilities of members of organization

The roles of the members are to:

• Establish the mission, goals and policies of the organization, what should be

accomplished.

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Chief Executive Officer

Chief Financial Officer

Chief Customer Services Officer

Chief Marketing Officer

Chief Purchase & Maintenance

Officer

• Develop a long-range plan for the organization; defining the strategy and a time

frame for achieving the goals.

• Ensure the long term financial stability and strength of the organization, develop and

maintain sources of income to provide for the continuing operation of the

organization.

• Ensure the long term organizational stability and strength of the organization, bring

into the organization individuals with the necessary abilities to lead and manage the

organization in the future.

• Maintain the integrity, independence and ideals of the organization; do not allow

individuals or organizations to compromise these principles.

• Hire and develop employees to manage the operations of the organization.

• Exercise management oversight of the employees and the operations; approve annual

budgets, review operating and financial results, audit for compliance with internal

policies and external requirements, review performance against goals.

The responsibilities of the member are to:

• Be committed to the mission, goals and policies of the organization.

• Perform the functions and work of the board to the best of one’s ability.

• Contribute financially to the organization to the best of one’s ability and seek

financial support from others outside of the organization.

• Recommend others who could serve on the board or be of particular value to the

organization in other capacities.

• Avoid any conflicts of interest and situations that would compromise the principles of

the organization or lead to the perception of compromise.

• Be knowledgeable about the organization, the services it provides and the renal

community in which it operates.

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Assessment of Risk

Lake truck is the totally new concept. For that reason, extra emphasis has to be given to

measure assessment of risk. There have some hazards for this business. Some potential

hazards could be:

A. Weakness of Business

Lack of financial support to run the business smoothly.

Lack of cash to support a heavy promotional effort.

Shortage of consultants at operating level rather than partner level.

Unable to deal with multi-disciplinary assignments because of size or lack of ability.

Reliability of data, plan predictability?

Because the lack of expertise to meet Timescales & deadlines of different phase of activities of the business may occur.

There is no previous business reputation because it is the first business.

Lack of competitive strength. If other competitors start rapidly this business then it will be challenging to sustain the venture.

Regulatory issues are the common disadvantage of transportation business. The most frequent complaint regarding regulations about the transportation system itself concerned the length, area, and route etc restrictions.

B. New Technologies

The length of the transportation route is very limited so technologies meet thedemand. Technologies implemented are - non-motorized boats to highly automated pushers, operating on waterways ranging from small tributaries to lake. Technology is changing very rapidly. However, more modern technology is difficult to implement in near future. If competitors come forward new effective technology to attract the customers, the project will have to adapt and upgrade as per the market trend in the future.

C. Contingency Plan

To identify the alternative strategies to meet business goals and objectives, the venture is flexible to move from lake to river, and from a limited market to a broader market.

11

Financial Plan

Pro-Forma Income (statement)

Projected net profit calculated from projected revenue minus projected costs and expenses.

Pro-Forma Income Statement

Joltori Private Limited        

For 2011 through 2014          

(all numbers in BDT 000)        REVENUE 2011 2012 2013 2014

Gross sales BDT500 BDT650 BDT720 BDT850

  Less sales returns and allowances 200 230 280 320

Net Sales BDT300 BDT420 BDT440 BDT530            COST OF SALES        

Beginning inventory BDT350 BDT360 BDT420 BDT435

  Plus goods purchased / manufactured 120 165 185 190

Total Goods Available BDT470 BDT525 BDT605 BDT625

  Less ending inventory 360 420 435 440

Total Cost of Goods Sold BDT110 BDT105 BDT170 BDT185            

Gross Profit (Loss) BDT190 BDT315 BDT270 BDT345            OPERATING EXPENSES        

Selling        

  Salaries and wages BDT35 BDT41 BDT46 BDT52

  Commissions 12 14 16 18

  Advertising 10 12 14 20

  Depreciation 14 15 16 16

  Other 5 6 6 7

Total Selling Expenses BDT76 BDT88 BDT98 BDT113            

General/Administrative        

  Salaries and wages BDT12 BDT14 BDT16 BDT18

  Employee benefits 4 5 5 6

  Payroll taxes 2 3 3 4

  Insurance 6 6 7 7

  Rent 8 8 9 9

  Utilities 2 2 2 3

  Depreciation & amortization 3 4 4 5

  Office supplies 1 1 1 1

  Travel & entertainment 3 3 3 4

  Postage 1 1 1 2

  Equipment maintenance & rental 0 0 1 1

  Interest 0 1 1 2

  Furniture & equipment 3 4 4 5

Total General/Administrative Expenses BDT45 BDT52 BDT57 BDT67

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Total Operating Expenses BDT121 BDT140 BDT155 BDT180

           

Net Income Before Taxes BDT69 BDT175 BDT115 BDT165

  Taxes on income 22 32 26 28

Net Income After Taxes BDT47 BDT143 BDT89 BDT137

           

Extraordinary gain or loss BDT0 BDT0 BDT43 BDT0

Income tax on extraordinary gain 0 0 12 0

           

NET INCOME (LOSS) BDT47 BDT143 BDT120 BDT137

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Appendix

Survey Result:

A questionnaire was prepared to get the feedback from general people and the questionnaire was as follows.

The survey was conducted among 86 people regarding the above questionnaire. The

responses are accumulated below:

People want these types of transport system = 78%

Not agreed to introduce Lake Truck as the mode of transportation = 14%

Didn’t provide any feedback = 8%

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Questionnaire:

1. Do you think that the Lake Truck will be helpful to the general people of Bangladesh?

2. Will it help to reduce the traffic Jam in Dhaka?

3. Which route you prefer to use mostly by Lake Truck?

4. How much fare you would pay to travel from from Ashulia to Sadarghat in Lake Truck?

5. Please remark about this transportation system.