Goals

Products
 Honey
 Wax Candle
 Nuc
 Pollens
Comparison with paraffin
 Less carbon emission.
 5 times more life
 Aromatic
 Low melt
 Nil carcinogenic.
Production Plan

Production Strategy ’
 To maintain 1000 hive level in full production.
 To produce pollen by putting in pollen traps in spring.
 To produce nut’s by splitting hives in spring.
 To make to wax into candles and bars.
Production Facilities
 Currently we will be setting up equipment and facilities to
operate and maintain 1000 hives including extracting, storing
and packing honey.
 We will b setting up 2 machineries 100 moulds for candle
growth.
 Facility easily upgraded to better control climate for over
wintering
 nuc colonies for nuc production.
 CAPITAL
PURCHASE
    REQIREMENT      

           

  2009 2010 2011 2012 2013

POLLEN TRAPS 1000 1000 1000 1000 1000

POLLEN CLEANER/DRYER     1000    

NUC BOXES 2000 3000 3000 3000 3000

FRAMES 3000   2000   2000

COMB BOXES 1000        

WAX MOULDS 100     100  

FAN FOR HOT ROOMS 200        

MACHINE 2     2  

TOTAL CAPITALPURCHASES 7302 4000 7000 4102 6000

 PRODUCTION
    VOLUME      

           

  2009 2010 2011 2012 2013

NO. OF HIVES 1000 1200 1400 2000 2500

HONEY/HIVE/KG 144 144 144 144 144

TOTAL KG 144000 172800 201600 288000 360000

TURNOVER OF HIVE/PM 1.5 1.5 1.5 1.5 1.5

WAX/PER HIVE/PER MONTH 8 8 8 8 8

TOTAL WAX/IN KG 96000 115200 134400 192000 240000

NUCS   300 500 800 1000

POLLENS/KG 200 200 200 200 200

 Management & Labour Plan

 Labor requirement
 Office automation -2
 R&D -4
 Transportation -3
 Hive maintenance - it depends on the need &
demand
 Work shop labor - 10
 Designers -2
 Marketers -5
Total -26
Marketing Plan

Marketing Strategy ’
 To expand product lines and advertise and
promote these to build new markets.
 To expand amount of honey sold to
wholesalers.
 To add value to products, to bring in new
designs and customize our product for candle
segment
 To work with wholesalers to promote product
and build customer loyalty for our products.
Market Trends
 Per capita honey use is static.
 Opportunity to produce nut’s to fill markets in areas

that are infested by viroa mites.

 Demand for pollination services are increasing.

 Demand for bee wax candles is very high as the

awareness is increasing
 Demand for customized candles is becoming a huge

market and will be entering the market with the

combination of both cost leadership and
differentiation strategy
Market Opportunities
 CONTRIBUTION
    MARGIN ANALYSIS      
POLLEN PRODUCTION 2009 2010 2011 2012 2013
PROJECTED PRICE 20 20 20 20 20
PRODUCTION/KG/YR 200 200 200 200 200
SALES/IN RS. 4000 4000 4000 4000 4000
LESS: DIRECT COST          
LABELLING /PACKAGING 300 300 300 300 300
CONTRIBUTION MARGIN 3700 3700 3700 3700 3700
           
PRODUCTION OF NUCS          
PROJECTED PRICE 60 60 60 60 60
PRODUCTION/UNITS   300 500 800 1000
SALES 0 18000 30000 48000 60000
LESS:DIRECT COST          
QUEENS 0 900 1500 1600 3000
FEEDING   3600 6000 9600 12000
PACKAGING/FRIEGHT   600 1000 1600 2000
CONTRIBUTION MARGIN 0 12900 21500 35200 43000
           
PRODUCTION OF HONEY          
PROJECTED PRICE 40 40 40 40 40
PRODUCTION/KG 144000 172800 201600 288000 360000
SALES 5760000 6912000 8064000 11520000 14400000
LESS: DIRECT COST          
PACKAGING/FRIEGHT 14400 17280 20160 28800 36000
PROCUREMENT COST 1800000 2160000 2520000 3600000 4500000
CONTRIBUTION MARGIN 3945600 4734720 5523840 7891200 9864000
            

           

PRODUCTION OF CANDLES          

PROJECTED PRICE 27 27 27 27 27

NO. OF CANDLES 640000 768000 896000 1280000 1600000

SALES/RS. 17280000 20736000 24192000 34560000 43200000

LESS: DIRECT COST          

LABOUR 1728000 2073600 2419200 3456000 4320000

DIRECT EXPENSES 864000 1036800 1209600 1728000 2160000

CONTRIBUTION MARGIN 14688000 17625600 20563200 29376000 36720000

TOTAL INCOME/A+B+C+D 18637300 22376920 26112240 37306100 46630700

 PROJECTED INCOME STATEMENT

2009 2010 2011 2012 2013

TOTAL INCOME 18637300 22376920 26112240 37306100 46630700

LESS: EXPENSES          

FEED: SUGAR 9867 13115 15485 20654 24545

: PROTIEN 1550 2687 3523 4589 5433

QUEEN PURCHASES 5508 6518 7248 8894 9072

HIVE TREATMENT 2558 2608 2660 2714 2768

MACHINE REPAIR 2000 2000 2000 2000 2000

HIVE REPAIR 2500 2600 2700 2800 2900

LEASE RENT OF LAND 5484240 6032664 6635930.4 7299523.44 8029475.78

MARKETING&PROMOTIONS 2865479 1865679 1562736 1573683 1534776

DEPRICIATION 227678.9 227678.9 227678.9 227678.9 227678.9

OVERHEAD 453780 478900 528700 564500 578000

TELEPHONE EXPENSES 124564 138800 145500 156600 167700

SALARIES 1538470 1692317 1861548.7 2047703.57 2252473.93

INTEREST 560000 560000 560000 560000 560000

PROFIT BEFORE TAX 7359105.1 11351353.1 14556530 24834760.1 33233877.4

TAX@33.33% 1136488.04 2199791.03 3002196.42 5634323.21 7773615.02

PROFIT AFTER TAX 6222617.06 9151562.07 11554333.6 19200436.9 25460262.4

CASH FLOW AFTER TAX 6450295.96 9379240.97 11782012.5 19428115.8 25687941.3

           
 INITIAL CAPITAL EXPENDITURE

2009
MACHINES 120000      

POLLEN TRAPS 5000      

POLLEN CLEANER/DRYER        

NUC BOXES 120000      

BUILDING, WAREHOUSES&OFFICES 2156789      

FRAMES&COMB BOXES 5000000      

WAX MOULDS 200000      

FAN FOR HOT ROOMS 300000      

OFFICE AUTOMATION 356770      

WATER RESORVOIR 154660      

MISC. 500000      

VEHICLE 2165780      

TOTAL 11078999      

         

         

         
 CAPITAL CONTRIBUTION

   

PARTNER'S CONTRIBUTION 4500000

LOAN FROM NABARD@8% 7000000

TOTAL CAPITAL 11500000

  NET PRESENT VALUE (LIFE OF THE PROJECT 5 YEARS)

           

  2009 2010 2011 2012 2013

CASH FLOW AFTER TAX 6450295.96 9379240.97 11782012.5 19428115.8 25687941.3

DISCOUNT RATE OF 15%          

NET PRESENT VALUE 5608953.01 7092053.66 7746864.46 11108088.3 12771446.8

TOTAL INLAY 44327406.2        

TOTAL OUT LAY 11078999        

  33248407.2        

CAPITAL RECOVER IN SECOND YEAR        

   BALANCE SHEET (PROJECTED)

LIABILITIES   AMOUNT   ASSET   AMOUNT

    Rs.       Rs.

CREDITORS   500000   CASH   100000

O/S PAYMENT   2000000   BANK   200000

LOANS PAYABLE   7000000   STOCK   3456000

OWNERS CAPITAL   4500000   DEBTORS   150000

        MACHINES   108000

        WAX MOULD   200000

        VEHICLE   2165780

        BUILDINGS   2156789
        FAN   300000
        RESORVIOR   154660

        FRAMES&COMB BOXES   5000000

        MISC.   8771

             
    14000000       14000000
Thank you

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