STRATEGIC
ANALYSIS
OF
Unilever Pakistan Ltd.
Showing posts with label Business Idea. Show all posts
Showing posts with label Business Idea. Show all posts
Friday, March 11, 2022
Business Idea For Pakistan 2022
Business Idea 2022
Where should I invest my money to get a handsome return?
Table of Contents
Business Idea
Due
to the intensification of wants of the people in the city Rahim Yar
Khan, We are going to open a super mart named as “M’s
Mart”.
There is a big opportunity for us due to less competition in the
city. Two small marts (have just daily use items) are fulfilling the
customer’s need but they have failed to fulfill the desire of
customers in this city.
Mission Statement
“A
great opportunity for the customer to not only avail number of
facilities at one place but also the entertaining environment is
being provided to build strong and profitable relationship with the
customer is being provided for them”
Vision Statement
“A
great opportunity for the customer”
Key success Factors
Rahim
Yar khan is a city where the concept of super market does not exists.
We people will be the first one to establish the super market where
people can purchase household things, enjoy the food, and entertain
their self with shopping, movies and these all are under one roof. So
there is no competition for us. We will be having monopoly in the
mean time which is one of the success factors for us.
The
mart is located few minutes from the center of the city so people can
easily come up without any problem and that could increase our store
traffic thus leading to more sales.
IO (Industrial Organization) Model
With
the reference of this model we have to study the external environment
to know how about the market.
Reference of Rahim Yar Khan
Rahim
Yar Khan
is a city in South Punjab, Pakistan. Rahim Yar Khan is the capital
city of Rahim Yar Khan District as well as the tehsil of the same
name. The city itself is administratively subdivided into 9 Union
councils. Rahim Yar Khan City is one of the few cities in the world
that are still at their pioneering places since the formation like
London and Damascus. It has been renamed customarily amid last 5000
years, first available (on record) name was AROR or ALOR, and then it
became City of Pattan, Phul Wada, Noshehra and now Rahim Yar Khan.
External Environmental factors:
- The culture of Rahim Yar Khan is diversified due to the link to the Sindh Province, mixing Punjabi and Sireki cultures.
- The common attire for the male is a long loose shirt hanging up to the knees, made of coarse cloth, a chadder and pagri.
- Shalwar and a Dupatta is the dress of choice.
- The women of this area are very fond of wearing ornaments, both golden and silver.
Analysis
As we are planning to
open a “Super Mart” so the cultural changes must effect upon the
business. We should have to follow the cultural changes needed by the
time. Cultural changes included weather changes (like summer, winter,
spring), now a days the red color is the color of year so the people
want to see them in red, and like Basant festival, Eid festival,
Islamic occasions, Wedding occasions and many of other changes may
affect our business and these are considered as a basic requirement
to achieve our vision that by also fulfill the requirement of our
customers and make the customer happy.
Location
- Rahim Yar Khan is bounded on the north by Muzaffargarh District, on the east by Bahawalpur District, on the south by Jaisalmer (India) and Ghotki District of Sindh province and on the west by Rajanpur District.
Population Size, Growth and Distribution
- According to the 1998 census, the city population was 233,537 with an annual growth rate of 3.50%. As of in 2009, it is around 340,810.
- The area of Rahim Yar Khan City is about 22 Square Kilometer.
- The average annual growth rate was 3.2 percent during this period.
- The total area of the district is 11,880 square kilometers which gives population density of 264 persons per square kilometer as against 155 persons observed in 1981 indicating a fast growth rate of the district.
Weather
- The climate of the district is hot and dry in the summer and cold and dry in the winter.
- The summer season is comparatively longer.
- It starts in April and continues until October.
- The winter season goes from November to March.
- However, the month of March and November are pleasant.
- Dust storms are frequent during the summer season.
- The average rain fall is about 100 millimeters.
Analysis
To achieve the vision
and mission of our business we have to segments a market into
different allocations (like; on the basis of gender requirement we
must look after the convenience of male and female particularly, we
also make a separate segment of children like play land area). We
have to segment our market on entertainment basis (like; super store
on ground floor, Shopping area on first floor, Food court, conference
halls and play land area on second floor and cinema on third floor).
- Rahim Yar Khan is one of the modern district headquarter cities in Punjab. Although the city seems a far off place to those living in Lahore, Karachi or Islamabad, but the city has very good civic facilities.
Analysis
For the implementation
of new technology we are planning to control the “Super Mart”
activities with the proper computerized system (like; lifts, stairs
elevators, ERP system for our Supply chain and accounts process) in
order to get rid of panic situation and also make to satisfy the
customer and good will of the “Mart”, we also include conference
halls to have corporate meetings, seminars etc involve with creating
new knowledge and new output, for the convenience of the customer we
have to plan a ATM machine that is complete the need of customer on
the spot.
For globally putting an
image of our “Super Mart” we are planning to search out the sum
of internationally recognize brands (like; KFC, Bareeze, Saeed Ghani,
Levi’s, Hang ten etc)
- Wheat is the staple food grains of this area.
- Vegetables are consumed mostly in winter when turnibs, radish and mustard are plentiful.
- Sag (pot herb) and dal are commonly used in super. Bread smeared with Ghee or butter is given to the working male members of the family and the women folk rarely enjoy this buttered bread.
- A favorite dish of rich is Saji, a goat or lamb roasted in the oven or on fire.
Analysis
To gain the attraction
of customers we have to plan to put some of the outlets of such
companies which are not available in that city. The outlets included
KFC, Saeed Ghani, 3D Cinema, Levi’s and some of the popular outlet
included in our “Super Mart” which are not only fulfill the
requirement of the customer but also the basis of our profitability
of our business.
- “Cafe Lamis” “The Food Track” and “Hot Chicks” are best Hotels and fast food restaurants of this city.
- Some more famous restaurants are “Bhatti Snacks”, “Pizza and Pizza”.
- There are so many small cafes in this city.
- There are some small marts also named as Rohi Mart and Q’rras.
- There is a local cinema in the city, and some boutiques (like; Bareeze, Junaid Jamshaid)
Analysis
As there is no super
mart in the city so there is no such competitor survive in the market
but for the need and requirement of the customer which make them a
satisfactory environment of shopping and entertainment we are
planning to open a “Super Mart” on the standardized strategies
followed by the market. There are some small competitors have founded
in the study of the external environment and we must focus on them
and the great advantage for us is that all of the customer’s
requirements are fall in a single place by which they can easily
fulfill their needs and wants.
Identify the resources
As
we have mention above the strength of our business are the
international brands which are the part of our super mart and have a
great attraction for the customers.
Strategic Implementation
Structure
of our business is being in process and the control system is being
specified as above.
Superior Return
The
return we are planning is to be achieve with the passage of time
(like; the cinema, conference halls, rental shops for outlets etc).
Competitors analysis
Rohi
mart and Q’rras are our competitors in the grocery products, and
there are some other small marts which have included the food sector
and garments sector and the competitors in food sector are named as
Café Lamis, Hot Chicks, Pizza and Pizza, and garments sector
included Bareeze, J&J, Mushroom’s and some other local
boutiques.
The
competitor’s analysis is shown in below mention tables, and the
analyses have covered the part of introduction of competitor,
infrastructure of competitor, and bench mark & competitive
advantages.
|
Rohi
Mart
|
|
|
Features
|
Benefits
|
|
Introduction
|
Rohi
Mart is located in city Raheem Yar Khan beside the Cholistan
Rangers Head office. It has the grocery items for sale and also
has a bakery which is attached with mart but that is sub business
of Cholistan Rangers. Rohi Mart is the subsidiary of Cholistan
Rangers.
|
|
Infrastructure
|
In
the infrastructure, this mart has cover the area of 2000 square
feet (680 yards) and the whole area covered with the grocery
products.
|
|
Bench
Mark & Competitive Advantage
|
The
town in which this mart is located that area have just one single
market to purchase the things but the people of that area are
still go outside in the main market to purchase the other things.
Due to individual seller in that particular area this mart has a
competitive advantage and they due to the subsidiary of the
Cholistan Rangers they have the bench mark over there.
|
|
Q’rras
|
|
|
Features
|
Benefits
|
|
Introduction
|
Q’rras
is the Mart which is located near town hall (district council
office) this business is owned by Mr. Shaikh Tariq Ali privately.
|
|
Infrastructure
|
In
the Infrastructure this mart has covered the area near about 2100
square feet (700 yards). The area of 300 square feet (100 yards)
is cover with the warehouse and the other area which is around
1900 square feet (600 yards) is cover with the grocery products.
|
|
Bench
Mark & Competitive Advantage
|
The
area in which this mart is located there are just two or three
small shops for retail sale, but due to the verity of the
products they have competitive advantage over there, and had a
bench mark in the area. But they have covered their huge space of
the mart with grocery products and have a bit verity of ports.
|
|
Other
Small Competitors (Foods)
|
|
|
Features
|
Benefits
|
|
Café
Lamis
|
|
|
Introduction
|
Café
Lamis is the restaurant which is located beside the Q’rras
opposite to town hall.
|
|
Infrastructure
|
This
restaurant has covered the area aprox 3000 square feet (1000
yards) and had five floors. This had covered the range of food
items, and also known as the place to stay for the guests.
|
|
Bench
Mark & Competitive Advantage
|
Café
Lamis is the only a big restaurant in the city with the coverage
of food products so it had a commutative advantage over there and
also had a bench mark in the city. But they due to very high
prices of their products they lost their opportunity to cater the
middle class families, and now it is just known for the
residential place for the guests.
|
|
Hot
Chicks
|
|
|
Introduction
|
Hot
Chicks is the fast food restaurant and located at main Shahi
road.
|
|
Infrastructure
|
They
have cover a space of normal shop which is aprox 600 square feet
(200 yards), and have one ground floor (cover with the counter
and kitchen) and first floor (cover with the dining hall)
|
|
Bench
Mark & Competitive Advantage
|
Hot
Chicks have covered the verity of products in fast foods, and in
that area there is only one fast food restaurant so that’s way
they have competitive advantage and cover the 50% share of the
market.
|
|
Pizza
and Pizza
|
|
|
Introduction
|
Pizza
and Pizza is located near to the route to Bahawalpur which is
named as Khanpur bus stop.
|
|
Infrastructure
|
They
have covered a huge space for their kitchen, and dining hall. The
space covers with two floors (ground and first).
|
|
Bench
Mark & Competitive Advantage
|
Pizza
and Pizza is a franchise of an international brand so they have
the 40% share of this market related to pizza. The taste is very
nice so they have a bench mark on the mind of people of Raheem
Yar Khan, and haven’t any close competitor so they have the
advantage to lead the market.
|
|
Other
Small Competitors (Garments)
|
|
|
Features
|
Benefits
|
|
Bareeze
|
|
|
Introduction
|
Bareeze
is the branded cloth in the Pakistan and had an outlet in Raheem
Yar Khan which is located in main Sadiq bazaar.
|
|
Infrastructure
|
They
have covered a huge space to capture their market in this city
with their sub brand "Leisure Club".
|
|
Bench
Mark
|
Due
the huge verity in garments and with their brand name they have
cover the market in this city and they also have a bench mark in
the mind of this city.
|
|
Junaid
Jamshaid (J&J)
|
|
|
Introduction
|
Junaid
Jamshaid (J&J) is a branded cloth for man’s (Kurta Shalwar)
in Pakistan.
|
|
Infrastructure
|
In
Raheem Yar Khan J&J is known as Man's ware (Kurta Shalwar) and
covered the space in main Sadiq bazaar.
|
|
Bench
Mark & Competitive Advantage
|
Due
to the new and a wide range of Kurta Shalwar J&J had a bench
mark in the mind of the people of this city and due to their high
growth in this area of specialty in Kurta Shalwar they have
competitive advantage in this city.
|
|
Mushroom’s
|
|
|
Introduction
|
Mushroom’s
is a branded cloth for children in Pakistan.
|
|
Infrastructure
|
Mushroom’s
are having covered the space in Sadiq bazaar opposite Bareeze, and
have popularity in baby and baba garments.
|
|
Bench
Mark & Competitive Advantage
|
They
have covered a huge space to capture their market in this city in
the range of baby baba garments and have a bench mark in this
city.
|
SWOT Analysis:
Strength
- Many more accessories are being available at one place.
- We have more focused on quality of the product instead of price.
- The branded outlets are the main source for the attraction of customers.
- The entertaining environment is also one of the main strength of M’s Mart.
- Good and healthy environment is being provided for the customers and the consumers both.
- One of the main strength of the M’s Mart is that there is none of other mart is being situated in the city.
- One of the major strength of the M’s Mart is define by its location i.e. it is situated in the center of the city so the people can easily avail this great opportunity.
Weakness
- As the mart is located in the center of the city, so there is some difficulties faced in the parking system; but the underground parking area is provided to overcome this problem as much as can.
- In the city there is a main problem of that is the shortage of supply on electricity.
Opportunity
- A great opportunity for the customer to avail the facilities
- A great opportunity for the investor that there isn’t any competitor in the city
- As investor purchases the land by their own, so we can easily manage the rent of land
Threat
- At the initial stage, to start a business the small competitors may have to create some difficulties to run the business in actual direction, because the linkage of customers can break with the passage of time.
- The risk factor is very high.
Marketing Objectives
- We are providing a great opportunity for the customers to buy all the accessories under single roof and we want to attract new customers.
- We want to increasing the sales volume rather than making profit in the short-term.
- There isn’t such type of gigantic competitor in this business in the city. So eventually raising prices in future will not be a problem for our company since people will not switch to some other place to buy the products.
- Using this strategy our cost will be controlled and it will lead to greater efficiency.
- It also creates high stock turnover throughout the distribution process.
- Our main focus is to provide the standardized and high quality of the product rather than the prices.
- We are focusing to provide a good, entertaining, and healthy environment to both customer and consumer.
- For the marketing campaigns we are going to use the social media and print media.
- We also want to make some profitable schemes for the customers from those schemes our customers can take benefit.
Survey Questionnaire
Demographic
Q.1:
What is your age?
- 20-25
- 26-30
- 31-35
- 36-above
Q.2:
What is you gender?
- Male
- Female
Q.3:
What is your marital status?
- Married
- Unmarried
Q.4:
What is your income?
- 10000-20000
- 20000-30000
- 30000-40000
- 40000-above
Q.5:
Where do you live in the city?
- Posh Area
- Center of the city
Q.6:
Are you lusty for shopping?
- Yes
- No
- Maybe
Promotion
Q.7: In
your view which is the best way it communicates with the customers?
- Cable
- Billboards
- Pamphlets
- Social Media
Q.8:
Offering Discount is a good way for the promotions of mart?
- Strongly Agree
- Agree
- Natural
- Disagree
- Strongly disagree
Q.9:
In your point of view Promotion of Mart with different styles is a
good way?
- Animation
- Funny or Humor
- Attractive
- Knowledge
Positioning
Q.10:
In Your Point of Views Entertainment facilities are suitable for a
Shopping Mart?
- Strongly Agree
- Agree
- Natural
- Disagree
- Strongly disagree
Q.11:
When you go for shopping, which type of food you prefer?
- Fast Food
- Desi Food
- Drinks
- Juices
Q.12:
What criteria admire you while shopping in a Mall?
- Price
- Quality
- Service
- Things available under one roof
Price
Q.12.1:
Are You Satisfied with the prices of branded products?
- Yes
- No
Q.12.1.1:
Are You Satisfied with the prices of unbranded or local products?
- Yes
- No
Q.12.1.2:
Do you prefer whole sale shopping?
- Yes
- No
Quality
Q.12.2:
Are You Satisfied with the quality of branded products?
- Yes
- No
Q.12.2.1:
In your point of view is the quality meter for the stability of Mart?
- Yes
- No
Service
Q.12.3:
Do you like to feel that care taker is placed in the play land area?
- Yes
- No
- Maybe
Q.12.3.1:
Would you recommend about the female sales persons?
- Yes
- No
Q.12.3.2:
In your point of views which type of service should provide by food
department?
- Self Service
- Serve on dining
Q.12.3.3:
Finding goods is easy way, Satisfied you?
- Strongly Agree
- Agree
- Natural
- Disagree
- Strongly disagree
Under
One Roof
Q.12.4:
Do agree with the concept of under one roof, that all the Goods are
available under one roof?
- Yes
- No
Q.12.4.1:
Do you agree that play area and food court fulfill your and your
children need under one roof where shopping is also available?
- Yes
- No
Survey Analysis
Demographic
Graphical
Representation: About
40% of the population is in between 26-30 years. Which is mainly
based on female having 56% of the total population. The marital
status is found that 76% are married and the income is in between
30-40 thousand rupees and mostly customers are usually live in the
center of the city and in the views of 44% people of this city they
are lusty for shopping.
Analysis:
Above data shows that the main customers of our mart is mainly based
on female as the female are feeling good for the shopping and the
level of income is being moderate for a shopping mart so with the
focus on that customer we are looking to satisfied the customer's
need and wants and feel good to them.
Promotion
Graphical
Representation:
36% of the
customers are satisfying to promoting the mart by cable and 32% of
them are interested from social media promotion. For the promotion of
the mart the discount factor is agreed by the customers and 40% of
the populations are usually wanted to watch an attractive style of
promotion.
Analysis:
From the above
data we Analyize that we usually focus on cable and social media
promotions for developing the interest to the customers and for the
opening of mart we offer a discount promotion and we also put an
attractive adds for which we giving a suitable knowledge for the
customer as our the business objective mainly focus on customer that
customer are the king of the business.
Positioning
Price
Quality
Service
Under
One Roof
Graphical
Representation:
36% customers are interested in the high quality and want to buy the
things under one roof. The service and the price are the second
criteria while shopping in the mall.
Analysis:
From the customer point of view most of the customers are usually
interested in branded products due to their price and quality so we
are decided for the availability of branded products in our mart and
we also interested to provide a sufficient service for the
convenience of the customers and also this would help for the
stability of mart and a profitable business we earn by focusing to
the customer's needs and wants. Most of the customers also give the
indication that they feel much better to buy the products, or want to
do shopping under one roof as compare to different markets. So, this
would be a positive indicator for our business to give great
opportunity to our customers to entertain different facilities which
are provided.
Pricing Strategy
“Penetration
pricing strategy will be used in pricing the products in our super
market. In penetration pricing strategy the company sets relatively
low entry price of the products and with the passage of time it
eventually raises the prices”.
Reasons behind using this strategy are below mentioned:
- “We want to attract new customers”
- “We have a marketing objective of increasing sales volume rather than making profit in the short-term”.
- “There is no competitor in this business in Rahim Yar Khan. So eventually raising prices in future will not be a problem for our company since people will not switch to some other place to buy the products”.
- “Using this strategy our cost will be controlled and it will lead to greater efficiency”.
- “It also creates high sto0ck turnover throughout the distribution process”.
Product Mix – Packaging
The
products our super market will be selling to the customer will range
from local to international brands.
Fresh
Food
- “Dairy products”
- “Baked goods”
Dry
Food
- “Basic commodities (pulses, spices, sugar, wheat, rice, oil and ghee)”
- “Confectionary items”
- “Drink and beverages”
- “Canned and packaged goods”
Non
Food Products
- “Office and Stationary”
- “House hold and kitchen warehouse”
- “Hygienic products (soaps, body, face and mouth washes, shampoos, deodorants, floor cleaning products and janitorial cleaning supplies)”
- “Toys and luggage”
- “Clothes”
- “Cosmetics”
- “Accessories for ladies(handbags, pouches and purses and various jewelry items)”
"Our
suppliers for FMCG products will be UNILEVER, P&G, NESTLE, ENGRO
FOOD, SHAN, NATIONAL, PEPSI, COCACOLA, K&N’S and other local
manufacturers products”.
Supply Chain
For
the process of supply chain we have a supply chain manager in this
mart and he should be knows about all the aspects of supply chain;
that how to make the relationship with our suppliers, (is it any type
of collaborative or alliance relationship in between the mart and
their suppliers). This procedure should tackle with the ERP system,
and we use the Oracle base system in this mart.
Procurement of Inventory
For
the procedure of procurement and controlling of inventory we are
using ERP system which is based on Oracle, and according to our plan
and our management there were a main server where the sold stock
automatically mention and it would be linked with the cash counters,
through this process we can easily know that which inventory is on
its lead time and our inventory controller can easily make the order
for those products/ items. After the order process our supply chain
manager should make the possible effort for purchase the inventory on
the behalf of our relations with our suppliers.
Unique Selling Proposition
Our
super market unique selling proposition will be that it will be
providing quality products and superior customer service for the
shoppers under one roof since there is no other super market in Rahim
Yar Khan that is providing variety of products at same place. There
are only small grocery stores and shops that are not fulfilling then
needs of the people.
Business Operations
Service process:
Since
we are establishing a super mart and will be providing services
(selling of household items, food, entertainment) so there won’t be
any production process.
Figure 1.1 shows service
process model.
(Figure
1.1)
A
more detailed service process is below.
Suppliers
will be the distributors of various FMCG, beverages, spices and food
manufacturing companies.
We will be in direct contact with the distributors of these companies
for supplying the products to our warehouse which covers the
underground portion of our super mart.
Service Blueprint:
Zee Mart Carts
for putting Shelves, fridges consumer
Sales person on counters Bill/Cash
Exterior
grocery and and racks
items and for promotional
counters
Parking
household items
grocery activities
Advertising and Sales Promotion
Advertising
The
methods we will be using for advertising our super market and
products being sold in it will comprise of
- Brochures or flyers: brochures will be containing a great deal of information related to the products features, benefits and prices and they are also not costly to make.
- Newspaper: Almost everyone reads major newspaper which is circulated in Rahim Yar Khan. To provide awareness and information for our newly establish super market newspaper is the best medium to convey our message. It is an expensive way of advertising but it reaches masses and is very effective. We will be allocating budget for advertising and through that budget plan we will be spending money.
Sales Promotion
Special
offers: It can increase sales and include coupons, discounts, sales
on products and distribution of a product based on balloting.
Management Structure / Organogram:
M’s
Mart involves substantial investment in the initial phase of its
establishment, therefore professional and technically sound
management at all levels is required to ensure ongoing profitability.
The proposed management structure is described below and depicted in
the form of an organogram.
Day
to day management will be under a Chief Executive Officer / Owner who
will perform and monitor all functions of the Mart. Operation
Manager, Supply Chain Manager, Floor Manager, Social Media Executive,
HR & Admin Manager, and Finance & Accounts Manager will all
be senior level executive positions which need to be filled by
professionally competent individuals. All these management position
will play crucial roles in the project’s success.
Financial Projections
|
M’s
Mart
|
|
|
Annexure I
|
|
Financial
Plan
|
|||
|
|
|
|
Total
|
|
EQUITY |
|
|
|
|
Owner's Equity |
|
|
10,292,000
|
|
Others
|
|
|
-
|
|
Total Equity |
|
|
10,292,000
|
|
DEBT |
|
|
|
|
Long-term Debt |
|
|
9,438,000
|
|
Short Term Debt |
|
|
6,000,000
|
|
Total Debts |
|
|
15,438,000
|
|
|
|
|
|
|
TOTAL CAPITALIZATION |
|
|
25,730,000
|
|
DEBT/EQUITY RATIO |
|
60%
|
40%
|
|
Sponsor's Stake (%) |
|
|
60%
|
Cost of Project
|
M’s
Mart
|
|
Annexure II
|
|
Cost
of Project
|
||
|
|
|
Total
|
|
Land & Development |
|
12,400,000
|
|
Building & Civil work |
|
2,307,480
|
|
Machinery
|
|
800,000
|
|
Office Equipment |
|
100,000
|
|
Furniture & Fixtures |
|
1,000,000
|
|
Vehicles |
|
850,000
|
|
Erection & Installation-Local |
|
100,000
|
|
Preliminary Expenses |
|
493,140
|
|
Interest During Construction |
|
1,157,850
|
|
Contingencies |
|
670,847
|
|
Total Fixed Cost |
|
19,879,317
|
|
Initial Working Capital
|
|
5,853,632
|
|
TOTAL PROJECT COST
|
|
25,732,949
|
|
Total |
|
25,730,000
|
Key Assumptions for sale
|
M’s
Mart
|
|
|
Annexure III
|
|||||
|
Key
Assumptions
|
||||||||
|
Customer
Category
|
Customer
Volume daily (Avg.)
|
Merchandise
Value (Avg.)
|
Daily
Sale (Avg.)
|
Monthly
sale (Avg.)
|
Annual
Sale (Avg.)
|
|||
|
Category A |
35
|
1,000
|
35,000
|
1,050,000
|
12,600,000
|
|||
|
Category B |
55
|
750
|
41,250
|
1,237,500
|
14,850,000
|
|||
|
Category C |
75
|
500
|
37,500
|
1,125,000
|
13,500,000
|
|||
|
Category D |
95
|
250
|
23,750
|
712,500
|
8,550,000
|
|||
|
|
|
|
137,500
|
4,125,000
|
49,500,000
|
|||
|
M’s
Mart
|
Annexure IV
|
|
Key
Assumptions
|
|
|
Particulars
|
Annual Growth
|
|
Sale |
15%
|
|
Cost of
Goods Sold |
61%
|
|
Utility Exp. |
10%
|
|
Office
Vehicle Exp. |
2%
|
|
Office
Stationary Exp. |
1%
|
|
Professional
fees |
0.1%
|
|
Misc Exp. |
5%
|
|
Property Tax |
10%
|
Projected Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Projected
Income Statement
|
|
||||||||||||||||
|
|
M’s
Mart
|
|
||||||||||||||||
|
|
For
the year ended 31st Dec, 20XX
|
|
||||||||||||||||
|
|
|
|
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
|
||||||||
|
|
Revenue |
49,500,000
|
56,925,000
|
65,463,750
|
75,283,313
|
86,575,809
|
99,562,181
|
|
||||||||||
|
|
Cost of
goods sold |
30,000,000
|
34,500,000
|
39,675,000
|
45,626,250
|
52,470,188
|
60,340,716
|
|
||||||||||
|
|
Gross Profit |
19,500,000
|
22,425,000
|
25,788,750
|
29,657,063
|
34,105,622
|
39,221,465
|
|
||||||||||
|
|
General
Admin and Selling exp: |
|
|
|
|
|
|
|
||||||||||
|
|
Salaries
exp. |
2,592,000
|
2,592,000
|
2,592,000
|
2,592,000
|
2,592,000
|
2,592,000
|
|
||||||||||
|
|
Utility Exp. |
5,750,013
|
5,806,414
|
5,868,455
|
5,936,700
|
6,011,769
|
6,094,346
|
|
||||||||||
|
|
Office
Vehicle running exp. |
120,000
|
122,400
|
124,848
|
127,345
|
129,892
|
132,490
|
|
||||||||||
|
|
Office exp.
(Stationary, etc) |
180,000
|
181,800
|
183,618
|
185,454
|
187,309
|
189,182
|
|
||||||||||
|
|
Insurance
exp. |
26,537
|
26,537
|
26,537
|
26,537
|
26,537
|
26,537
|
|
||||||||||
|
|
Depreciation
exp. |
816,944
|
816,944
|
816,944
|
816,944
|
816,944
|
195,374
|
|
||||||||||
|
|
Misc. exp. |
100,000
|
105,000
|
110,250
|
115,763
|
121,551
|
127,628
|
|
||||||||||
|
|
Property tax
exp. |
3,000
|
3,300
|
3,630
|
3,993
|
4,392
|
4,832
|
|
||||||||||
|
|
Total General Admin &
Selling exp: |
9,588,494
|
9,654,395
|
9,726,282
|
9,804,736
|
9,890,394
|
9,362,388
|
|
||||||||||
|
|
Operating Income (EBIT) |
9,911,506
|
12,770,605
|
16,062,468
|
19,852,326
|
24,215,228
|
29,859,077
|
|
||||||||||
|
|
Interest
exp. |
2,435,700
|
1,415,700
|
1,179,750
|
943,800
|
707,850
|
471,900
|
|
||||||||||
|
|
Earnings before tax |
7,475,806
|
11,354,905
|
14,882,718
|
18,908,526
|
23,507,378
|
29,387,177
|
|
||||||||||
|
|
Tax
|
2,616,532
|
3,974,217
|
5,208,951
|
6,617,984
|
8,227,582
|
10,285,512
|
|
||||||||||
|
|
Net Income |
4,859,274
|
7,380,688
|
9,673,766
|
12,290,542
|
15,279,795
|
19,101,665
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Projected NPV and Payback Period
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Present Value |
|
|
|
|
|
|
|
|
|
|
Discount
Rate |
17.5%
|
|
|
|
|
|
|
|
|
|
Years |
0
|
1
|
2
|
3
|
4
|
5
|
6
|
|
|
|
Cash Flows |
(25,730,000)
|
2,840,888
|
4,296,020
|
12,359,855
|
22,912,385
|
36,306,875
|
52,732,277
|
|
|
|
NPV |
35,687,238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payback
Period |
|
|
|
|
|
|
|
|
|
|
Years |
0
|
1
|
2
|
3
|
4
|
5
|
6
|
|
|
|
Cash Flows |
(25,730,000)
|
2,840,888
|
4,296,020
|
12,359,855
|
22,912,385
|
36,306,875
|
52,732,277
|
|
|
|
|
(25,730,000)
|
(22,889,112) |
(18,593,093) |
(6,233,238) |
|
|
|
|
|
|
Payback
Period |
3.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: All the above
financial projections are not the real figures these all are basis on
the assumptions.
Business Idea,Business in Pakistan,Investment Opportunity.
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