Welcome To Our Presentation

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Group name- TrustGroup Members

Presentation Topic: Business plan on “Bio Gas Plant”

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Executive Summary

• Biogas typically refers to a gas produced by the biological breakdown of organic matter in the absence of oxygen. Organic waste such as dead plant and animal material, animal feces, and kitchen waste can be converted into a gaseous fuel called biogas. The name of our biogas plant is “Trust Biogas Plant”. It is complete a home service. We are providing service of cooking fuel to our target customers, who use liquid petroleum gas for their cooking, which is very costly for them. This gas does not even run a full month. This biogas plant is reliable, safe, easy to maintain, less technical difficulties We think it will be a good choice for the customers.

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Vision

*We carry out reliably our tasks and service.

*We aim at maximum quality down to the

smallest detail.

*Safety.

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Mission*To create jobs

* Environmental sustainability.

*To reach the service to suffer areas.

Objectives*To identify the acceptability of human excreta based

biogas plant among people.

*To measure local environmental and the health hazards conditions among inhabitants before and after implementing the project.

* To determine the financial viability of the biogas plants.

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• Key to success

• Financial mechanism based on credit, which makes biogas plants affordable to the customers .

• *Plants designed and constructed after one to one consultation with clients .

• *Community based approach to share the cost and benefit of biogas plants.

• *Linkage of biogas technology to emerging poultry, livestock and agriculture business

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Trust at a glance• Name of the business: Trust Biogas

Venture

• Date of establishment: 11/06/2012

• No of owner: 05

• No of employee:100

• Address: Mirpur, Plot 10/A.

• Capital: First we need TK4500000 to start up business

• Facilities: Providing cooking fuel 7

Company ownership

• This company will start as a small partnership business. There are Five partners associated in this business they are Soniya akter, Syeda Chowdhury Diana,Humaira Hashmotullah, Jannatul Ferdause Liza & Nafisa Islam

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Start up plan

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Start-up (Requirements) Amount (Tk.)

Start-up Expenses

Legal 150,000

Land Lease (3 Years) 10,00,000

Administration cost 2,00,000

Website Development 1,50,000

Identity/Logos/Stationary 150,000

Other 100,000

Total Start-up Expenses 17,50,000

Start-up Assets

Loan 500000

Cash Required 8,00,000

Start-up Inventory 3,50,000

Other Current Assets 0

Long-term Assets 300,000

Office Equipment 800,000

Total Start up Assets 2750000

Total requirement 45,00,000

Production Plan• Physical Plant All of my productions are done by the machine. Worker only give raw

material into the machine.• Machine & equipment Trust Biogas Plant tries to use the latest technology to produced

product & survive them.

• Technology: *Special Type of digging machine. *Gas holder is made in a special way. *Some materials are ordered from abroad. *Non leakage pipe. *CC camera and computer is also used to monitoring

activities

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Service

• Only few urban people (about 3%) are enjoying household natural gas by pipe line.Rest of the people of Bangladesh relies on biomass fuel and Liquid Petroleum Gas (LPG) for cooking. In the start up we will provide services of Cooking fuel. Family size biogas system is mainly applied to home. The family size biogas system is composed of a 6 or 10 m3 biogas plant , the pipe system, the gas purify system and the appliances or electricity generator.

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• Market segmentation Market segmentation consists of group of people

who share a similar set of needs and wants. This system is for the Mirpur areas who suffers from gas . We are analyzing Large Family and small family.

Target market segment strategy• Our target customers are the people of

Mirpur areas. They are badly suffer from gas. Gas comes these types of area generally at mid at night. For that reason their day to day activities badly hampered.

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Market needs

From the survey we got that they immediately need such a service which will reduce their pain and sorrows . Among these areas about 80% people are ready to take the service and 20% are felling hesitation due to the cost but they want to.

0%

10%20%

30%

40%

50%60%

70%

80%

1st Qtr 2nd Qtr

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Competition and buying pattern

Local govt engineering development, Grameen shakti, Kamrul  Biogass

Hosain Biogas, Sangram etc renowned biogas holder has established many biogas plant in rural areas. But some urban ares also faces horrible consequences like those. As urban people are rich or they have opportunities to improve themselves that does not mean that have nothing to do. We are here to support them and share their pain.. They have communicated with so many institutions but every body were engaged in their rural project and somebody were not fulfilling their expectations. Although biogas plant holders are many but we are one for many areas.

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Strategy and implementation strategy

Our strategy is not like others as to capture the

market or expand market share. We want to prove ourselves a good service holder and want to win the heart of our respected customers.

Sales strategy• Advertisement in newspaper& billboard.• Providing leaflet, online announcement.• Taking help of family, friends or relatives.• Taking advisers support.• Face book.

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• Service pricing

We are providing services of gas under one digester. We have divided our customer between two categories according our pricing:

For the Large family TK 600000

For the small family: Tk 200000-250000

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• Financial Plan The Daily financial picture is quite

promising. Since Trust Biogas plant is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and Trust Biogas plant recognizes that a higher level of talent is required. The financial investment in its employees will be one of the greatest differentiators between it. For the purpose of this pro-forma plan, the facilities and equipment are financed. These items are capital expenditures and will be available for financing. There will be a minimum of inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur.

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Cost of production statement

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Particular 2012 (taka) 2013(taka) 2014(taka)

Direct materials:

Purchase of goods 6,50,000 5,00,000 6,00,000

Delivered cost of purchase 1,30,000 1,00, 000 1,20,000

Tax & duty@ 1,00,000 1,00,000 1,00,000

Cost of goods sold 8,80,000 7,00,000 8,20,000

Add: administrative expense:

Staff salaries 7,10,000 6,00,000 7,00,000

Legal expanse 1,50,000 1,00,000 1,50,000

Office expenses 1,30,000 1,00,000 1,20,000

Total of office &

administrative

9,90,000 8,00,000 9,70,000

Marketing & selling overhead:

Marketing selling 220000 200,000 210000

Advertising 800000 500,000 600000

sales promotion 50000 20,000 35000

Total selling & marketing 1070,000 720,000 845000

Total cost 2940000 2 ,220,000 2635000

40 % profit 1176000 888000 1054000

Total sales 4116000 3108000 3689000

Projected Income Statement

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Pro Forma Income statement 2012 2013 2014

Sales 41,16,000 31,08,000 36,89,000

Cost of Goods Sold 8,80,000 7,00,000 8,20,000

Gross Margin 32,36,000 24,08,000 28,69,000

Operating Expenses

Advertising/Promotion 8,00,000 5,00,000 6,00,000

Website 1,25,000 1,25,000 1,25,000

General and Administrative Payroll 80,000 80,000 80,000

Depreciation 30,000 30,000 30,000

Utilities 30,000 30,000 30,000

Insurance 1,00,000 1,00,000 1,00,000

Interest 50,000 50,000 50,000

Total Operating Expenses 12,15,000 9,15,000 10,15,000

Net Profit 20,21,000 14,93,000 18,54,000

Projected Balance Sheet

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 Pro Forma Balance Sheet 2012 2013 2014

Assets

Cash 15,60,000 22,28,000 18,65,000

Inventory 3,00,000 3,00,000 3,00,000

Long-term Assets 3,00,000 3,00,000 3,00,000

Office equipment 8,00,000 8,00,000 8,00,000

Depreciation (30,000) (30,000) (30,000)

Total Assets 29,30,000 35,98,000 32,35,000

Liabilities and Capital

Accounts Payable 9,04,000 21,00,000 13,76,000

Interest 5,000 5,000 5,000

Profit 20,21,000 14,93,000 18,54,000

Total Liabilities 29,30,000 35,98,000 32,35,000

Break Even Analysis

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SWOT Analysis• Strength:*Newly introduced biogas plant.*Cheap labor.*New technology.*100% successflul plant.• Weakness:*Relatively high price..*Small size of management*Lack of experienced.• Opportunities:*Entering into a market.* Scope of loan.*Help of government agencies.• Threat:*Other renowned biogasholder.*Seasonal threat.*Low price competitors. 23

Major Findings

• Relatively high cost

• Steel is purchase from abroad

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Recommendation

• As it is relatively high than needs to minimize

• Biogas related high price components should be find out easily from Bangladesh.

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Conclusion

• As the students of business school it is compulsory to work in the practical field. To work in the practical field I have to acquire the proper knowledge about actual market scenario. Through this “Business Plan” I have learned a lot of things that are very much essential to build up my carrier. If I can implement this “Business plan” in current market then I hope I can be able to gain my desirable target. This “Business Plan” will help me to start a small business successfully. Last of all I would like to say that this “Business Plan” is very much essential & effective for me.

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