Natural fibre & organic fruits business

Natural Fiber & Organic Fruits Producer

1.1 Introduction :

Let's walk on the way to progress Page 1

Natural Fiber & Organic Fruits ProducerAs a student of BBA of Dhaka City College we are going to prepare a report on

"Natural Fiber & Organic Fruits Business". The main purpose of our report is to run a

business by using Banana plant, Pineapple leaf and Coconut husk as raw material.

From business, people can get better fiber and we can earn profit by offering

qualityful product. Our total investment in this business is Tk. 4,00,00,000 which will

be arranged from our partners and bank loan from Bangladesh Krishi Bank Limited.

The percentage of our owner's equity and bank loan is 50% and 50%. There is only

one person who is running this business in our country. Our business is like the

existing one but it will earn more profit because in our business we will collect the

raw materials from our own field. Our main uniqueness is we are making a good fiber.

Banana, Pineapple and Coconut grows well in Bangladesh and are potential sources

of fine quality natural fibers which are widely produced in neighboring countries to

produce various valuable items like cloths, handicrafts and home textiles. Banana

leaves are large, flexible, and waterproof. They are often used as ecologically friendly

disposable food containers or as "Plates" in South Asia and several South

Asian countries. The Banana plant has long been a source of fiber for high

quality textiles. In Japan, banana cultivation for clothing and household use was

started at least the 13th century. In a 100 gram serving, raw pineapple is an excellent

source of manganese (44% Daily Value (DV)) and vitamin C (58% DV), but

otherwise contains no essential nutrients in significant content (table). In Asia,

Coconut shells are also used as bowls and in the manufacture of various handicrafts,

including buttons carved from dried shell. The coconut has spread across much of the

tropics, probably aided in many cases by seafaring people. Coconut fruit in the wild


Natural Fiber & Organic Fruits Producerare light, buoyant and highly water resistant, and evolved to disperse significant

distances via marine currents.



1.2 Objectives:Without having any objective no one can bring the ultimate sucess. Our basic aim is

to learn from the journey of preparing this report. There are two types of objectives of

preparing this report.

Primary objective: To fulfill the requirement of Ice Breaking Program.

Secondary objectives: To produce and provide customer a good type of fiber and fresh fruits.

To learn how the fiber business are running and making profit day by day.

To acquaint ourselves with entrepreneurship development.

To make a new revolution with natural fiber.

To ensure health consciousness among people in Bangladesh.

1.3 Methodology: We have collected information both from primary & secondary sources. Particulars

are given below:

Primary Source:Though, there is only one businessman in our country who is dealing with this

business, we have gathered information by a face to face communication with him.

Secondary Source:We have collected information from-

Books and Articles

Different Journals

Websites



1.4 Limitations:This is an empirical study and we have faced some problems. However, we have tried

to give our maximum effort so that this report can have an acceptable conclusion and

can be benefited. The focusing limitations of the report are:

We don't have much information.

Lack of experience and wide knowledge.

Some issues were new for us.

Due to shortage of time we couldn't prepare a rich report.

The existing businessman does not want to disclose business related

information.

So, it will be great pleasure for us if our lacking will be overlooked.



2.1 General Description of Business:Our aim is to provide people a good quality of fiber so that people can get chance to

wear a comfortable cloths, which will be a standard price. We also supply three types

of fruits such that are Banana, Pineapple and Coconut. In our business, it is very

important to us to provide that types of fruits items which are fresh and favorers. We

are producing fiber very carefully and in natural manner from the stems for fruits, as

if the customers would be satisfied. The current situation of this type of business is

upgrading. The profit margin of it is almost 100% sometimes 200%. We will gain

profit by making sure that we are supplying a good type of fiber. General people want

to good products in a cheap rate and we are trying our level best to do so.

2.2 Background of the Business:Bangladesh is a densely populated country. There are around 16 corers of people

lived. In our country, there lived different types of professional people. So, the

demand for natural fibers is increasing day by day. But unfortunately in the context of

Bangladesh this business has not captured good position in comparison to other

business. This traditional Japanese cloth-making process requires many steps, all

performed by hand. In a Nepalese system the trunk is harvested instead, and small

pieces are subjected to a softening process, mechanical fiber extraction, bleaching and

drying. After that, the fibers are sent to the Kathmandu Valley for use in rugs with a

silk-like texture. These products have a high demand in the EU, USA, UK market due

to current market trends. Domestically within Bangladesh, natural fibers produced

from Banana, Pineapple and Coconut have great potential use; not only for handicraft

production, but also for the fabric and textile industries. Despite availability of raw

materials these natural fibers still remain unexploited in Bangladesh with the

exception of some experimentation done by few NGO’s like Taranga, MCC and

BRAC.



2.3 Business History:

2.3.1 Vision:We delightfully want that our business will be one of the well-known business of our

country within 2025.

2.3.2 Mission:Our mission is a short time process. We have fiber producing business.

To create professional, effective results of products amongst to the customers.

To achieve the highest quality result that will meet client’s expectations.

To help our clients in attaining standers of quality fiber in their physical

comfortness.

To satisfy the buyer / purchaser/ patron/ shopper.

2.4 Goal of The Venture and Milestone:The main goal of our business is to achieve average profit with providing 100%

satisfaction to our customer and maintaining the level of excellent services. But there

has another more goal in our business. These are:

To produce a good type of fiber.

To sell the fruits at a very low price, after taking the raw materials like

Banana plant, Pineapple leaf and Coconut husk.

To produce that type of cloths which will protect Ultra-Violet rays.

2.5 Management of the Business:



2.5.1 Management Team:In this organization all the work will be done by doing the team work. All level of

managers, workers are involved into the team work. For example, Marketing Director

gets a new idea about marketing and he will submit it to General Manager. Then

General Manger will submit it to Chairman. After that if Chairman likes this idea and

takes any decisions then he will consult with the General Manager. And the General

Manager will consult with the Financial Managers for getting information about

financial conditions. All this decisions has taken by the board meeting. Without board

meeting no decisions will be taken in this organization. Chairman is the Team Leader.

But in every operation the total work will be divided into some other teams. These

teams are made by the section managers. In doing the operations all the members will

obey the rules and regulations of the organization.

Management Team:Designation Name Qualification

Chairman Prottoy Ghosh Dastider M.B.A, C.A

Financial Director Udoy Rahman Apurbo M.B.A

Accounting Director Jasica Gomes ACCA, ICMA

Marketing Director Anamika Banik M.B.A, PHD

Human Resource

director

Rafiq Ahmed Tanjil M.B.A (H&R)

Management Director Tahsin Ahmed M.B.A

Member Farzana Akter Munni M.B.A

Member Shaidul Islam Babu BBA



2.5.2 Organizational Structure:

Organizational structure



2.5.3 Legal Structure of the Business:Our business will be a partnership business. According to Partnership Business Act of

1932, we are going to start this business. There are eight partners in our business.

Among us seven members will contribute 12% capital and one member will

contribute 16% capital of total amount. The total capital of the project is Tk.

4,00,00,000. We will retain 30% of our profit and 70% profit will divide among the

partners equally.

Our business partner's percentage of share and qualification are given below:

Sl Name Percentage of share Qualfication

1. Prottoy Ghosh Dastider 16% M.B.A, C.A, PHD

2. Udoy Rahman Apurbo 12% M.B.A, ACC

3 Jasica Gomes 12% M.B.A, ICMA

4 Anamika Banik 12% M.B.A, CA

5 Rafiq Ahmed Tanjil 12% M.B.A (H&R)

6 Tahsin Ahmed 12% M.B.A, CA

7 Farzana Akter Munni 12% M.B.A, ICMA

8 Shaidul Islam Babu 12% M.B.A, ACCA



2.5.4 Consultant and Advisors:We will consult with some consultant and advisors. They will provide us a lot of

advice for running this organization. If we face any problem than they will help us.

The list of consultants and advisors, is:

Consultant Firm Address:

For Agricultural Service:

SAARC Agriculture Centre

Address :

Khamar Bari Rd, Dhaka 1215, Bangladesh

For industrial & investment:

Saudi-Bangladesh Industrial and

Agricultural Investment Company Limited

(SABINCO)

Address :

79,Nikunja-2

Dhaka-1229, Bangladesh

[email protected]

+8802-8900846--50 or

+8804478000581--85

+8802-8900215

Bangladesh Agricultural University

(Agricultural Research Center)

Address :

BAU Main Road, Mymensingh 2202,

Bangladesh

+880-91-67402

For Business Purpose:

Ahmed Mashuque & Co.

Address :

20,Comrade Moni Singha Road Dhaka

(Old: 62/1 Purana Paltan), Level # 4

Motijheel C/A, Dhaka-1000

+880-2-9572206

Rahman's Chambers Address :

Hall Room No.2, Supreme Court Bar

Association Building, Ramna,

Dhaka-1000

+8801755574256 (Head of Chambers)


https://www.google.com/search?espv=2&biw=1093&bih=527&q=bangladesh+agricultural+university+address&stick=H4sIAAAAAAAAAOPgE-LUz9U3MEkpK7HQks1OttLPyU9OLMnMz4MzrBJTUopSi4sB8HxiTSwAAAA&sa=X&ved=0ahUKEwjI4anaqbzLAhWN1I4KHanaD-0Q6BMIhgEwEA




mailto:[email protected]





3.1 Location Analysis:Location is a very vital part for any kind of business organization. It should be chosen

very carefully to fulfill the target of the business. Our main customers are foreigners,

knit related industrialist, local marketers etc. Considering all advantages &

disadvantages we have selected Madhupur, Tangail for our cultivable lands. Labor,

raw materials and transportation systems are also available there. This place is famous

for Pineapple, Banana and Coconut. So many wholesale market situated there and we

can sell our product with high

profit. Tangail is near from our

capital city. So we can sell our

product directly to the Super

Shop. So for all kind of things

we decide Madhupur is best for

our business location and

hopeful that we can reduce our

cost.



3.2 Porduction Related Facilities:

Utilities and Equipment:

We have all heard saying that a bad workman always blames his tools. However,

without the proper equipment

you will not be able to do

your trade appropriately. We

have some special product

related facilities. We give it to

our customers. For examples:

Free from any kinds of

preservative, comfortable

cloth, creating job, inspiring men or women for cultivating crops, time to time

delivery encourage to be self-employed. We have also used modern equipment

facilities and hundred percent organic and chemical free tree plant for natural fruits

and raw materials for cloth.



3.3 Transportation Factors:Madhupur, Tangail is a rural area

but here we will have all kind of

transportation facilities like

highway road, railway etc. Within

a short time, we can reach to the

capital city. So we can supply our

products directly to our customers.



3.4 Source of Raw Materials:Our main raw materials are beech. We can collect our beech from agricultural

institute. For fertilizer, we used natural sources like compost, dung, manure, organic

fertilizer etc. We also Import our fiber converting machine form Japan. It will convert

our selected tree to fiber.



3.5 Labor Supply:There are many unemployed people in & around the area where we are going to set up

our factory. Since our production does not need professionally trained labor, these

local jobless people who tend to move towards city for job are suitable for it. That’s

why we have selected the local market for collecting our required number of labor.

These labor will be trained before they are given the charge.



Marketing Segment

4.1 Current Scenario in Bangladesh:Natural fiber is one of the priority sectors selected by the MoI (Ministry of Industry)

as having the potential for rapid expansion within Bangladesh with the goal of

creating employment import substitution and expanding exports. Natural fibers

produced from Banana, Pineapple and Coconut are now getting attention from both

government and private sectors. Bangladesh produces huge quantity of agricultural

waste every year and it has become new sources of valuable resources for the country.

In Bangladesh, Banana, Pineapple and Coconut are major agricultural crops which

produce great revenue, also produce huge leftover waste after crops are harvested.

Through proper management and new product development much of this waste

material can be used to extract healthy and eco-friendly fibers.

4.2 Situation Analysis:Situation Analysis relies on three parts. They are given below:

4.2.1 Market Summery:Bangladesh is one of the major natural fiber producing country and among them jute

clothing's have a great demand in the export market. Natural fibers extracted from

Banana, Pineapple and Coconut husks have great promise of producing additional

income. It reduces imports and increases exports via business activities. Our motive is

to produce good, healthy and eco-friendly fibers, supply them locally and export good

fibers. We will be able to sell those fruits. We have to become the best amongst all the

competitors through our best product.



4.2.2 Our company's SWOT Analysis:SWOT stands for strengths, weaknesses, opportunities and threats. In marketing

segment "SWOT Analysis" is one of the important tasks. Before marketing a product

a business firm has to analyze those things because business success not only depends

on manufacturing but also promoting. If you are unable to promote your product

properly your business mission & vision is not come true. In a word a business firm/a

company and any kind of small or large business can't escape the "SWOT Analysis" if

it wants to success.

Strengths:

Raw materials are available.

Low storage cost.

There is an increasing demand for natural fibers all around the world.

Cheap labor cost.

Nutritious product with lower price.

Easy & simple distribution system.

Weaknesses:

Raw materials are not produced all around the country.

No brand image is available.

Technological problem.

Lack of work experience.

Opportunities:

Low cost technology and machinery are available in our neighboring country

India.

Have a huge local market.

Have not much competitor.

Threats:

Increasing raw material & labor cost.

Not demandable like Silk & Maslin.

Lack of skilled labor.


Natural Fiber & Organic Fruits Producer There is a chance of not accepted by the customer.



4.3 Marketing Strategy:

4.3.1 STP Analysis:

Market Segmentation:Mainly, we will segment our market on the basis of income level of the customer.

Then it can be sub-divided:-

Middle class segment:

This segment deals with the middle class buyers and it will be rest of the city.

Lower class segment:

This segment is for limited earnig people. We deal with their demand for

natural fiber.

Under these two broad segment of customers we expect to render the following

services:

Meet up the local demand of our business place which includes both

transportation and agricultural purposes.

Expect to offer the regulated price set up provide customers with competitive

price for their products and their switching cost can't be high.



Target market:Any company's first aim is to making profit. To achieve this aim company can

manufacture, serve and involve with a lot of task. Basically the profit depends on how

the company serves and whom they serve. To identify the actual buyers and consumer

the company has to follow an appropriate strategy.

Market positioning: Deliver high quality fibers at lower cost.

Develop quality control standards, methods and procedures to improve,

standardize quality.

Produce healthy and fine fibers for market promotion and buyer attraction.



4.3.2 Marketing Mix Analysis:"MARKET MIX" analysis segment is consists of "4P". These 'P's are Product, Price,

Place & Promotion. They are helpful to analysis Company's current position and show

how to go ahead.

Product:

If we produce high qualityful products, then we will be able to compete and remain

strong in global market. So we can say that, product is the life of a market and market

is the life of a business.

Uniqueness:

Uniqueness means a quality of business that is different from others. The things we

are providing is given below-

We are providing fruits and fiber at a time.

High quality fibers at lower cost.

Fine and eco friendly fiber.

Benefits:

There are some benefits of our product. There are-

Healthy and eco friendly natural fiber.

Healthy fruits.


Natural Fiber & Organic Fruits Producer Free from soil pollution.

Banana fiber has strong moisture absorption quality.

Price:

Price is that the consumer or buyer has to pay for taking service. On the basis of price,

product quality is varies and it has a great impact on total selling quantity. Mentioning

our target market we choose a reasonable price for our product. Our different types of

fiber are given below:

Different types of fiber name Price (per K.G)

Banana TK... 200

Pineapple TK... 250

Coconut TK... 100



Place:

For every business there should be a suitable place. The business success is more

dependent on its perfect place. So it is very important for a business to choose a

suitable place. In our business, we had to choose a standard place where the fruits are

grown well. That’s why we had chosen Madhupur. Madhupur is a place where, three

selected fruits will be fructified in good way. As it is called the industry cultivable

area, we think our business will get a good response from the people and we don’t

think so that we have chosen a wrong place for our business. There will be a big room

for keeping our products. So, we believe that there will be no problem for the buyers

to get good products.

Promotion:

Promotion is last but not least in market mix. As much as you promote as much as

consumer you get. It brings your product to the consumer. Each and every product

needs a promotion system which is full of information about it. So, by the help of

these system people can know about the product and its effectiveness. Our major

promotion aspects are:

Advertisement

Internet

Billboard

Banner

Leaflet

Handbill

4.4 Corporate Social Responsibility:Earning profit is the main aim of any business. But beside that we also have some

responsibility towards our society. Keeping this in mind-

We are producing a good type of fiber.

The cloths made from our fiber will protect harmful ultraviolet (UV) rays.

After taking the raw material we sell our fruits in a very low cost.

We can provide fresh fruit for the customers.

We can give more employment to the people of this country.


Natural Fiber & Organic Fruits Producer Our products are safe to process and use.

We will intend to reserve a fund to help the victims of natural calamities.



FINANCIAL SEGMENTS:

5.1 Cost of Project:Capital Requirements Amount (Taka) Amount (Taka)

Land 1,50,00,000

Tree (3 types) 30,00,000

Machines 50,00,000

Total Fixed Asset 2,30,00,000

Cost of Man Power 1,50,00,000

Others 20,00,000

Total Working Capital 4,00,00,000

5.2 Means of Financing:We will contribute TK. 2,00,00,000 covering the cost of working capital. Loan will be

required for the rest of the project cost. So our source of capital is divided into two

parts.

Our total investment of this project is Tk. 40,0,00,000

It is structured by 50% (Tk. 2,00,00,000) of owner's equity and 50% (Tk.

2,00,00,000) of loan money.


Natural Fiber & Organic Fruits Producer5.3 Loan Repayment Schedule:

Year Principal Amount

Outstanding

Installmen

t

Interest

10%

Principal

Repayment

Remaining

Amount

201

6

2,00,00,000 52,75,949 20,00,000 32,75,949 1,67,24,051

201

7

1,67,24,051 52,75,949 16,72,405 36,03,544 1,31,20,507

201

8

1,31,20,507 52,75,949 13,12,051 39,63,894 91,56,613

201

9

91,56,613 52,75,949 9,15,661 43,60,288 47,96,325

202

0

47,96,325 52,75,949 4,79,632 4,79,67,325 0

Calculation of Installment:

PV = A [1/R-{1/R(1+R)^N}]

Or, 2,00,00,000 = A[1/0.1- {1/0.1(1+0.1)^5}]

Or, A = 2,00,00,000/[1/0.1-{1/0.1(1+0.1)^5}]

= 52,75,949

Here,

PV = Present value (2,00,00,000)

A = Installment (52,75,949)

R = Rate of interest (0.1%)

N = Number of year (5)



5.4 Income Statement One year:Particulars Amount (Tk.) Amount (Tk.)

Sales Revenue 12,00,00,000

Cost of Production 50,00,000

Administrative Expense 1,00,000

Depreciation 9,00,000

(60,00,000)

Earnings before Tax 11,40,00,000

(-) Tax Rate (15%) 1,71,00,000

Profit After Tax 9,69,00,000

Assumptions:

1. Sales revenue: First year we will sale Tk. 12,00,00,000 and then it will be increased by Tk. 15,00,00,000.

2. Administrative expenses: Our administrative expenses will be Tk. 1,00,000 per year and it will remain same every year.

3. Depreciation: Our depreciation will be Tk. 9,00,000 per year and it will remain same every

year

In 1st year it will be taka 20,00,000

In 2nd year it will be taka 16,72,405

In 3rd year it will be taka 13,12,051

In 4th year it will be taka 9,15,661

In 5th year it will be taka 4,79,632

4. Taxation: We will give 15% tax to the government.



5.5 Projected Income Statement:


Particular Year-1 Year-2 Year-3 Year-4 Year-5

Sales revenue

(-)

Cost of

production

12,00,00,000

50,00,000

12,50,00,000

60,00,000

13,00,00,000

70,00,000

14,00,00,000

80,00,000

15,00,00,000

90,00,000

Gross profit

(-)

Administrative

expense

11,50,00,000

1,00,000

11,90,00,000

1,00,000

12,30,00,000

1,00,000

13,20,00,000

1,00,000

14,10,00,000

1,00,000

(-)

Depreciation 9,00,000 9,00,000 9,00,000 9,00,000 9,00,000

Earnings

before tax

(-) tax(15%)

11,40,00,000

1,71,00,000

11,80,00,000

1,77,00,000

12,20,00,000

1,83,00,000

13,10,00,000

1,96,50,000

14,00,00,000

2,10,00,000

Profit after tax 9,69,00,000 10,03,00,000 10,37,00,000 11,13,50,000 11,90,00,000



6.1 Conclusion:We are very hopeful about our business plan. From our viewpoint we are confident

that our Products will make high demand in market. We have set our plan to come

true an aspiration, a dream and hope for flying the colorful flags of victory in "natural

fiber & organic fruits business". Our project is not only a profitable project but also

got socio economic view also. It is a great contribution towards the action of

removing unemployment. We know in this plan there are some lacking but we tried

our best to do it well. Our plan is new one for our country. So, we hope to be in the

top position of this sector which will help to increase our business profit as well as it

will contribute to our national economy.


Date post:	15-Jan-2017
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Natural fibre & organic fruits business

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