Biscuit Factory Business Plan

Prepared by Linda Aines and Ali Salem

For THE AFGHANISTAN AGRICULTURAL DEVELOPMENT PROJECT Citizens Network for Foreign Affairs (CNFA), Inc. September 2004 CNFA 1111 19th St. NW, Suite 900 Washington, DC 20036 Tel. +1.202.296.3920 Fax. +1.202.296.3948 http://www.cnfa.org

1

Biscuit Factory Business Plan
Summary Highlights
• There are a large number of small bakeries providing a variety of fresh baked goods including biscuits that are produced and sold over the counter in many outlets in every Afghan city and village. Imported packaged biscuits, mostly from Iran, Pakistan and India, are found in every corner shop, grocery stores, vendors with carts and supermarkets. Bakery owners indicated that biscuits were a rapidly growing market and biscuit consumption was increasing rapidly (Quentin Johnson 2003.) School aid programs now use biscuits imported from India. An automatic biscuit factory located in Kabul, to produce wrapped soft or hard biscuit, would be a “First to Market.” The proposed capacity of the Biscuit Factory is 250 kg/hr. The estimated total cost of the equipment is approximately $250,000 The biscuit produced will be fortified. The added cost of fortification per packaged biscuit is $0.03 which is negligible. The biscuit factory will import its own enriched soft flour directly from Pakistan as well as food grade packaging but other ingredients will be purchased from the local market. Biscuits have a long shelf life and can be transported safely to remote locations. Investment in training personnel is as important an investment as machinery. It is recommended that at least a plant operator, and at least a mechanic and electrician be trained for one month at the Vendor’s facility. Manuals for operation, quality control, maintenance and sanitation should be written and made available at the start-up of the enterprises. A Quality Control manager should be trained to run a modest laboratory, sanitation program, GMP and HACCP. Most often, this person performs production planning and maintains proper supply of raw materials and finished products. An opportunity exists to help Afghanistan who has a population that has chronic malnutrition in some regions by introducing biscuits made with “super flour.” The super flour mix may be “soft” enough to mix with local flour and produce good biscuits with high protein. A market for the biscuits would be the FAO/World Food Program which currently distributes 30,000 MT of imported biscuits to schools as a school funding program.

• •

2

All are imported from a number of countries such as Pakistan. freshness. India. Kazakhstan or Tajikistan. Such a Biscuit Factory will serve as a model of modern agribusiness technology. food safety.• Biscuits produced are expected to be of a quality. grocery store. Income and cash flow projections on the Biscuit Factory show a profitable first year and payback of initial investment within two years. • • • • • Background Biscuits are an important luxury food for the Afghan people. especially the children. There are many small-scale biscuit bakeries throughout Afghanistan. Marketing will be very much a part of the ongoing sales effort at the Factory. The FAO/ World Food Program is currently buying and distributing 30. We expect that the biscuits can be produced in Kabul. These bakeries produce. sugar and vegetable oil or ghee. There is no accurate information. Vehicles (with strong signage) will make deliveries move the product within the region. It is one of their mechanisms for school funding and WFP would gladly purchase biscuits produced locally for this program. The ingredients to produce these biscuits are: imported 75% extraction soft flour (non-enriched) from Pakistan. Methods of reaching and educating women about fortified flour and biscuits will be researched and tested. among other products. taste and nutrition than the imported biscuits from Pakistan and other countries.000 MT of imported biscuits to schools in Afghanistan. hygiene and without proper packaging. with a factory that is up to date and operating efficiently. at a competitive price. Turkey. Radio advertisements will feature the company and special qualities or benefits of the new Biscuits. Focus groups conducted in Kabul showed women’s propensity to buy fortified biscuits for their family is at a high level of interest (94%) and they may be willing to pay a premium price (81%) for good quality fortified biscuit packages. Biscuit packaging will be designed to be distinctive and clearly show that the flour is fortified. the success of the factory and its product will serve as a model for further expansion of industrialized bakeries or biscuit factories in Afghanistan. vendors on carts around school and supermarket. There is a growing market for these biscuits and providing a substitute for the imported biscuits is a worthy investment project. Even if we were able to get capacities. There are also packaged biscuits. The biscuits are produced with inadequate Good Manufacturing Practices (GMP). in Afghanistan. The bakeries produce the biscuit by hand and bake them on steel trays in hearth oven (not tandor ovens). there is no way to estimate 3 . All packaged biscuits currently sold in Afghanistan are imported from several countries. These biscuits are sold in every corner shop. two types of biscuits ---one is a short bread type and the other is a crisp type biscuits. Iran and England. on the number of these small bakeries and their capacities.

In order to collect this information. There is no locally produced soft flour in Afghanistan. These include 2 office manager/staff. it is recommended that the proposed factory import their own soft flour directly from Pakistan. Our research shows that there seems to be a market for packaged biscuits. 1 salesperson: 6 machine operators.000. Such a Biscuit Factory will serve as a model of modern agribusiness technology. 2. one would have to travel to Dubai where the major importers are. there is no soft wheat grown in Afghanistan and there is no roller mill capable of milling soft wheat to 75% extraction flour at 0. Additional space is needed for warehouse of ingredients and finished products. (See Appendix 1 for diagram and specifications. Facility Requirements: The whole manufacturing area is about 270 square meters (45 meter long by 6 meter wide). and 13 laborers.000 FOB. 2 maintenance. To the best of our knowledge.the biscuit volume in the small bakeries. All other ingredients can be purchased in the local marketplace. In the tender specification. purchasing biscuit making equipment. Packaging materials will also need to be imported directly from Iran or Pakistan. the profitability of the factory and its products will serve as a model for further development of similar factories in Afghanistan. It costs $170. The Business We have investigated the building of a Biscuit Bakery or Biscuit Factory as an investment opportunity. The investment required for startup of the Biscuit Factory is $500. the Factory will increase operations to two shifts then on to 3 shifts or 24 hour operation.48% ash content. Direct importation will achieve cost cutting of the main ingredient.) The cost of the equipment is $113. Therefore. Neither is there accurate statistics on the volume of imported biscuits into the country. The Factory will have 26 employees initially operating an 8 hour shift. The Biscuit Factory we propose will be completely automatic except for the mixing where all ingredients have to be measured and placed in the mixing bowl. A majority of the funds will be used for building the new factory. 2 guards. A full view of the whole factory is also attached. A middleman that we sought to interview in Afghanistan (Habbib Kolazar) could not be found. and the total equipment investment is estimated to be $226. Another manufacturer from China offers an automatic line that is more versatile and can produce a larger variety of biscuits. During succeeding years or as demand expands.000 with installation but excluding land and building. the factory should specify enrichment of the flour. Soft flour is the main ingredient in biscuit manufacturing.000 FOB. all of which are now being imported into Afghanistan. The full list of machinery needed and cost of each machinery FOB is attached in the appendix. and for startup expenses until the factory gets fully into operation: 4 .

scledensi.com http://www.000 Additional vehicles purchased in Yr 2 and 3 TOTAL $500.000 -Generator: need 150 KVA generator $25.000 The factory equipment can be purchased from one of several turn-key factory suppliers in China. Kabul has a population of 3.cn Fax: 0086-756-8508316 Email: zxf@hfmachine.Land is $20. APV Baker (USA) Web: http://www. Ltd Tel:0086-756-850783 http://www.com 3.000 and Building $154. Italy and the United States.apvbaker. huawei-machinery.com/biscuit/ (See Appendix 1 through 4 for machinery schematics and specifications. Huawei Machinery Factory http://www. Scledensi ( Italy) http://www.itSemi automatic 4..it/ Web: http://www.000 -Vehicle for pick up and delivery (1): $10.000 . The list of manufacturers that would provide needed equipment is listed here below and their equipment can be viewed on their websites: LIST OF BISCUIT FACTORY MACHINERY 1.com Tel: 0757-26325600 Fax:0757=26325609 Email: hauwei@huawei-machinery. Distribution of biscuits to markets outside Kabul can be easily done through a distributor or by factory-arranged transportation. Zhuai Hongfu Food Mechanical Manufacturing Co.hfmachine.. 5 .000 . It is recommended to start production on 8 hour shifts then expand as demand increases and the brand is better established.) Location: The recommended location of Kabul is closest to sources of raw materials needed.en Contact: xifeng Zhang 2. Volume and capacity: The Factory will have a capacity is 250 kg/hour. Kabul is the largest market for biscuits.scledensi.apvbaker.3 million and is considered the largest market center in the country.com.Operating Capital 65.com.Factory Equipment (includes installation) $226.

Opportunity for Using local flour in Biscuit Manufacturing: An opportunity exists to use local flour at 75% extraction. The success of any of these trials will have a significant impact on the business and use locally produced flour. Until brand recognition in the market is established. A typical formula for biscuit is as follows: Soft flour 55. The formulation of the various products will be worked out with the vendor. Therefore total production is about 9. as well as the taste of the biscuits.1% Sodium Bicarbonate 0. After allowing for 5% rejects. The International Assistance Mission (IAM) has a project producing complementary flour called super flour. the plant is expected to produce 1155 packaged biscuits/per hour each weighing 200g each. Production per hour is 231kg of biscuit.230 packaged biscuits per day. It is suggested to run several trials to mix the super flour with 75% extraction local hard flour at 5% and 10% level.25% Salt 1.8% Monocalcium Phosphate 1. Kansas. the biscuit quality. chickpeas and maize that has been ground and mixed together in equal proportion.65% Sugar 2. A third recommendation is to try to add small percentage of sodium meta bisulfite to weaken the gluten of 75% extraction local flour. if economically feasible.00% NFDM 3. These trials can be easily done in the laboratory of American Institute of Baking at Manhattan. Chickpeas contribute protein that will not impact gluten content if mixed with flour. Another set of trials.Sources and costs of inputs: Formulation of biscuit varies for different products. is to add 5% or 10% wheat starch to 75% extraction local flour and test them for biscuit baking quality. The capacity is about 12 MT per month. it is projected to run the plant for 8 hours daily.2% * Shortening non emulsified all vegetable hydrogenated fat This formula is used to calculate the cost of goods sold for the proposed factory. Rice and maize are high starch grains. If such tests are successful then samples of the mixed flour should be sent to the vendor of the machinery for testing the machine ability issues. Other ingredients may be needed for sandwiched biscuits or flavored ones. 6 . Not to mention the improved nutritional quality of the flour would be very beneficial to the health of the consumer.0 Water 29. The mix may be soft enough to increase the spread factor and produce good biscuits with high protein. This flour is a simple mixture of roasted rice.00% Shortening* 7. The testing should include the machine ability of the dough.

it is recommended that at least one operator. GDP increased 20% in 2003. and understanding the whole market chain. 3. fumigation schedules. even street kiosks carry them—again indicating their popularity. quality assurance and sanitation manuals should be prepared before startup. 7 .) Likewise. adding different flavors and reducing breakage or rejects which will add to the bottom line of the enterprise. due to lack of time. These people should be present during installation. maintenance. and school aid programs that now use biscuits imported from India. It is hoped that the owner has sufficient knowledge on baking. sanitation and production planning unless the company hires personnel to cover these areas. we find that there are sources of investment capital in Afghanistan and in Kabul. Markets for Outputs There is a large market for biscuits in Afghanistan for household consumption. All supermarkets. However. There are investors looking for new opportunities according to interviews with local NGOs. Preparation of manual is an integral part of training and continuous performance. The biscuit bakery owners indicated that biscuits were a rapidly growing market and biscuit consumption was increasing rapidly (Quentin Johnson 2003. Training: Investment in training key personnel of the Biscuit Factory is as important an investment in the machinery. and then expand. modification of recipe. the operators of the factory are the people who will keep the mill running and maintained 24 hours a day. Proper training and experience will result in improving quality. Operation. After all. A HACCP (Hazard Analysis Critical Control Points) program as well as GMP (Goods Manufacturing Practices) should be implemented. finding a prospective investor was left to the future managers of CNFA in Kabul. the supermarket shelves dedicated a lot of space to the various imported biscuits. The start-up duration should be long enough to achieve maximum production for at least one week which is considered additional training on site. marketing experience in branded foods. Therefore. small markets. These three personnel should have counterpart trainees at start-up and later on until they have become comfortable to perform their job. one mechanic and one electrician be trained in the vendor facility or pilot biscuit factory. The quality assurance manager should be trained in good manufacturing practices. There are many investors who are seeing opportunities and starting various enterprises. The primary market will initially be in Kabul.Proposed owner: In all interviews we conducted. indicating that they are a popular item.

72 0. Focus Group surveys conducted with 16 women during our stay in Kabul showed that consumers would buy Afghanistan-made biscuit if the quality and taste is good.04 2. and prices: Competitive products made in Pakistan. good packaging. the market will be strictly domestic with an eye for import substitution but in the long term.60 Marketing Strategies: The marketing focus of the factory should be on quality. Strong signage on delivery vehicles will show locally made biscuits and health. Biscuit packaging will be designed to be distinctive and clearly show that the biscuits are fortified or. if the test case is successful.” Methods of reaching and educating women about fortified biscuits will be researched and tested. Markets are also 8 .) Marketing will be very much a part of the ongoing sales effort at the Factory. The retail price of various packages is shown on the following table. It will be important to produce in such a way that the Afghan-made biscuits are priced competitively. Anticipated domestic and export potential: In the near term. show the benefits of “super flour. Retail Price of Biscuit adjusted to 200g Package Origin Price (USD) Turkish Pakistan (Biscuit) Pakistan (Cracker) Pakistan (Sandwich) England England England 0.90 1. nutrition benefits and move the product within the region. are everywhere in Kabul and throughout Afghanistan.55 0. fortified biscuit packages (See Appendix 5. sources. Radio advertisements will feature the company and special qualities and benefits of the new biscuits. A best strategy would be to have truck and drivers that would deliver on a consistent basis to the larger retailers and distributors.56 0.Competitive products. emphasis may switch to adding export markets. good taste and nutrition. Although there are ample would-be distributors who would want to handle the products in their own way.80 0. They indicated interest in increased nutritional quality (94%) and willingness to pay a premium price (81%) for good quality. freshness. . and other developing countries as well as UK.

100 14. There currently is no competition other than imports for the Afghan market.450 $105.010 235.121 19.010 235.274 131. Iran. It can also take advantage of humanitarian programs such as the WFP purchases for School Feeding Program.450 $210.926 6.515 14.670 157.926 6.515 14.274 131. An opportunity exists to help Afghanistan who has a population that has chronic malnutrition in some regions by introducing biscuits made with “super flour. The Biscuit Factory’s products can be positioned as a strong brand and be potentially a significant player in the Afghanistan market. Business Plan Investment and Cash Flow Projections (First Year) for Biscuit Factory Quarter 1 Quarter 2 Quarter 3 Quarter 4 Investment $500.100 14.750 9.increasing in Pakistan.100 14.121 19. Brand loyalty can be achieved faster with the added nutrition and due to the biscuits being made in Afghanistan.274 131. it will be well received in Afghanistan and substitute some of the import.789) 13.121 19.515 14.119 395.000 Income Cost of Goods sold Labor Cost Other Expenses Gross Income Loan Repayment Depreciation Cash Flow $131. If the product can be priced competitively and be of comparable quality.926 6.698 (46.010 235.865 9 . and India. 4.284 4.011 11.450 $314.300 $ 627 395.” The biscuits made with fortified flour or made with “super flour” give these products an added advantage and differentiate the product from other products being sold in Afghanistan.373 395.

555 54. 26 jobs are created.704 29. During the first year. Some financing from local banks. The Factory will employ approximately 26 well trained professional and staff.700 863.440 110. a total of 60 jobs will have been created. 3 years – Biscuit Factory Year 1 Investment Income Cost of Goods Sold Labor Cost Other Expenses Gross Income Loan Repayment Depreciation Cash Flow $ 500.796 $2.796 $ 1. We recommend a radio and print marketing campaign that will educate the public about the benefits of fortified biscuits.740.650 $ 314.257.160.062 23.978. from RAMP’s credit programs and CNFA grants may be available.587 73. Additions to the personnel and sales staff are reflected in year 2 and 3 as production increases.860 186. the opportunity for import substitution and the benefits to the region make this investment worthwhile.320 118.138.067 A detailed first year cash flow projection and list of assumptions is included in Appendix 6 and 6a.516 189.316.120 3.040 52. 10 .080 1.000 1.248. The Kabul Biscuit Factory requires a substantial investment but the potential profits.000 3. The plant is starting with only one 8 hour shift and can expand as demand for the product expands. the creation of jobs.115.865 Year 2 20. Other vehicles for distribution were added during Year 2 and Year 3.467 79. the quick payback.277 1. By Year 3.585 $952.735 79.100 Year 3 20.000 4.704 29.518 $ 346. The Cash Flow projections reflect movement to two 8-hour shifts in Year 2 and into a 24 hour operation in Year 3.Investment and Cash Flow Projections.

APPENDIX 1 -.Zhuai Hongfu Food Mechanical Manufacturing 11 .

50HZ alternating current supply 1.00 Function: This machine is suitable to mix all types of biscuit dough and to blend other raw materials. 3 phases.APPENDIX 1a . hard and soft biscuits. Dimensions(L×W×H): 1340×1000×1550mm mm e. 250kg/h Baking time: soda cracker 4 min Hard biscuits 4 min Soft biscuit 5~6 min Please According to your fact Dimensions of machine 45560mm×5050×1700 Net Weight: 20 Tons Gross Weight: 22 Tons Power: 190Kw Manpower:20 skilled worker Electricity supply: 380Volts. Speed of the main oar: 28rpm c. a.5Kw d. Net weight: 1500Kg 12 .Zhuai Hongfu Food Mechanical Manufacturing A HF400 HARD AND SOFT BISCUIT LINE PRODUCT Specification: Product type: soda cracker. Capacity: approx. Power: 7. not less than 400kgs/h b. Continuously and equable dough mixing can be achieved. Capacity: 75~150 Kg per time. Horizontal dough mixer Type: HM150 Price: USD5.000.

It may be mounted on several parts of the line. a. Weight: 2500kg HF400 sheet forming and cutting machine Type:GC400 Price:USD21.8M/min b. For getting high quality of sheets. Salt sprinkler Type:DXL400 Price:USD1.000. Adjusting the gap between adjustable plate and hopper or varying the speed of top roller can control the amount of powder sprinkled. a. rest conveyor and panner. The forcing roll pulls dough from the hopper and presses it against the moulding roll to fill a series of biscuit impressions engraved on the roll periphery. Weight: 1000kg Oven drive and oven tension Type:DWG400 Price:USD7. Dimensions(L×W×H) : 1950×1150×1500mm e. Dimensions(L×W×H): 7750×1030×1400mm d. Capacity: 200kg for hard biscuit b.000.800. a. d. It gives constant tension for the band and allows for any expansion or contraction of it.00 Function: this unit includes oven drive drum and oven tension and tracking drum. Power: 4. Dimensions(l×w×h): 590×980×350mm Power: 0.5kw c. fat spreading and laminating. connecting parts. The sheets get multiplayer and high surface quality and little change. Speed of rolling: 1. Laminator Type:DS400 Price:USD19. Including gauge roll1 (with hopper).5-3.5kw e. Rotary moulder Type:GY400 Price:USD6. Capacity: 0~0. Power: 3Kw f. Speed of gauge rolls: 4~8Meters/min c.000. The principal function of oven drive is provided the drive to oven band. a. gauge roll /2/3. it is completed with the HF400 type biscuit-shaping machine for pretreating the dough. a. e.00 Function: coat the top of the goods with granular materials such as salt or sugar or sesame. Weight: 6000kg 3. First rolling the sheet.2kg/min b.00 Function: This machine reduce the dough several times to a required thickness and print the biscuit design on the continuously fed sheet and cut out the individual dough pieces. Capacity: 250kg/h for soft biscuit b. Weight: 2000kg 6. For hard biscuit. Dimensions(l×w×h): 3300×680×880mm b. It is necessary for the production of high quality hard biscuit (soda crackers and fermentation biscuit).000. Excess dough is removed by a scraper on the moulding roll’s surface and is returned to the hopper by adhesion to the forcing roll.00 Function: the rotary moulder produces biscuit shapes of soft dough products. The tension drum provides a turning point for the oven band at the feed end. Layers: 3-8 d.00 Function: The laminator has functions of sheeting. Thick of the sheets: 4-8MM c. then feeding it out perpendicularly. 13 . 4.2kw d.2. c. Dimensions(l×w×h): 800×980×350mm c. Power: 1. rotary cutter. Power: 2. In the course the sheet is equably laminated in many layers.18kw Speed: changeable Weight: 150kg 5.

Dimension (l×w×h): 6000×820×680mm B. Power of web drive: 0. Width of web: 460mm C. Weight: 600kg 12.000. Packing conveyor Type:ZBT400: Priec:USD2. It’s made up of oven chamber. Cooling conveyor carry the hot biscuits for an appropriate length of time and their configuration is designed to suit the available space A. Dimension: 28000×950×1200mm b. Dimension (l×w×h): 3000×920×1400mm B. The nozzles atomize the oil and equably spray them on biscuit surfaces.500.200. fully automatic temperature control system.00 Function: biscuits leave the oven in a hot plastic state and need to be cooled to achieve stability and facilitate handing. Power of pump: 1. A. Capacity: 250kg/h e.5kw F.00 Function: provide a table for handling biscuit. a. 10. g. heating system. A. Dimensions(l×w×h): 1200×920×780 mm b. f.d. taste and smell is ameliorated. Weight: 4000kg Peeling machine Type:BL400 Price:USD1. Formed steel section side plates are connected by stretchers. Weight: 450kg 8.37kw E.000. Drums: Ф600mm With wire band which strong enough to withstand the oven temperature Stepless speed suitable for different requirement and production capacity Cast iron housing Stepless change speed by frequency transformer Tunnel type biscuit backing oven Type:GL400 Price:32. Power of web drive: 0. Width of web: 460mm C. a. Hearth plate is painted with ovenproof antirust paint f. 9. Dimension (l×w×h): 8000×820×680mm B. The excessive oil is filtered when the sprayed biscuit sent by its wire band.00 Function: the tunnel type electric biscuit baking oven is an important part of the line.55kw E. The quantity of oil is adjustable. Weight: 400kg Oil sprayer Type:PY400 Price:USD5. intensity of sealing >15N/mm 14 . Width of web: 460mm C. in this case the residue is removed. It is suitable to every biscuit baking techniques.00 Function: this unit sprays oil on surface of the biscuit out of the oven. e. Cooling conveyor Type:LS400 Price:USD2. Power: 0.00 Function: this unit strips the biscuit by a stripper knife from the oven band and transfers them to the oil sprayer.75kw E. h. Packaging machine Type:PM320 Price:USD10. 3 temperature zones c. 7.00 Function: Applicable for packing various solid regular objects such as biscuit or loaded by box/tray etc. A. Installed power: 150kw d.500. The quality of color.000. Weight: 1000kg 11.

meals and local travel for them. Ms. W=30~160. Installation: We will send four persons for erection and installation supervision. Capacity:25~180 packs/min Total power:4. E. D. Other fee is not needed.000. local hotel. F.00 (This price will be valid within 60 days) Shipment: with 8 weeks of receiving the L/C Payment: by irrevocable Letter of credit at sight Guarantee: sealer undertakes to supply a replacement or to repair any part in which a defect in materials or workmanship appears within 12 months of dispatch provided that the part is of seller’s own manufacture and buyer proves that the defect has developed under proper and normal conditions or use and maintenance. C. Yours sincerely. 2004 15 . H=5~50mm TOTAL: FOB Jiuzhou port 113. Customer provides round-trip ticket. And customer need provide some persons to helping our persons for installation. size of bag: L=90~280. Film width: 90~420mm frequency converter to step-less speed regulation.B. accommodation. Xifeng Zhang Aug 18.5Kw Max.

also including sandwich biscuit…etc.000 40000×1900×1750 10.com EQUIPMENT AND PRICE LIST OF “HUAWEI” BISCUIT PRODUCTION LINE PRODUCT Specification: Product type: hard biscuit and soft biscuit.000 8.000 4. 3 phases.5T 1.000 4.huaji-machinery.8T 1.7T 1.000 1250×1500×1120 450×1200×400 2.000 SPEC (MM) 1590x1220x1735 950X1500X1500 15400x1500x1300 WEIGHT (G. 250kg/h Baking time: Hard biscuits 4 min Soft biscuits 5 min Dimension: Please According to your plant size to design Electricity supply: 380Volts.500 34.000 15m TOTAL AMOUNT: 170.0T 1T 1.000USD (with electric oven) 16 .com Email: huaji@huaji-machinery. ADD: KUNZHOU INDUSTRIAL ZONE.6T 1.8T 7 8 9 10 11 12 13 Out stove machine Oil sprayer Cooling and Sending conveyer Auto biscuit Sorting machine Packing console Sandwich Machine Packaging Machine 1piece 1piece 1piece 1piece 1piece 1piece 2piece 2.000 18.APPENDIX 2 SHUNDE BEIJIAO TOWN HUAWEI MACHINERY FACTORY OF FOSHAN CITY.500 1050×1200×880 4000×920×1620 15000×900×850 3300×1200×1220 8000×900×850 4100x1050x1400 4020x715x1560 0. BEIJIAO TOWN.000 10.000 6.1T Produce soft biscuit 30m.6T 2.000 3. including the driven of the oven and movitity of the oven 6 Electric Oven 1set 50.W) REMARK 1 2 3 2 pieces 1piece 5. Capacity: approx.8T 8m HW-B HW-320 Including oil flitter 9. 50HZ alternating current supply CODE DESCRIPTION OF GOODS Horizontal Dough Mixer Three-roll cut machine Sheet forming and cutting machine Two-roll cut machine Rotary Cutter QUANTITY PRICE FOB (USD) 14. CHINA Tel:86-0757-26325608(0-9) Fax:86-0757-26325609 Website: www.5T 10T 1 set 3pieces 1piece 1piece 1piece 1piece 1 piece 1piece Produce hard biscuit Including Transition machine Separating location Gathering remnant-material by recycle device Horizontal rotary molder In-stove and salt/sugar Spreader 4 5 7.6T 1. GUANGDONG. SHUNDE CITY.

) 3.The proper scheme can be offered according to your requirement (plant size.The above machines equip with flexible speed controller 5.The above offer doesn’t include fixing and debugging charge (5% 8 ) 4. The above equipments of complete biscuit production line need 3-4 GP40’ 佛山市顺德区北滘镇华威机器厂 SHUNDE BEIJIAO TOWN HUAWEI MACHINERY FACTORY OF FOSHAN CITY 17 .APPENDIX 2 (continued) REMARK: 1. 2.Term of payment: FOB Shunde port. capacity etc.

APPENDIX 2a Huawei Machinery .CHINA 18 .

APPENDIX 2b Huawei Machinery 19 .

APPENDIX 3 (SCLEDENSI –ITALY) 20 .

APPENDIX 4 (APV BAKER—USA) 21 .

and said as they left that they hoped it would happen..) 22 . And unconditionally. “the biscuits should taste good..APPENDIX 5 Focus Groups Questionnaire Results .... yes (13) No.Biscuit Factory . as many woman seemed to indicate a willingness to pay more for the nutrition for their children and that they would stretch as much as possible if they knew it was fortified. therefore would they be willing to pay double price? Yes) Would you pay a little more for the Afghan made biscuits if fortified with Vitamins. zinc etc. ( 3) If 90 afs more? If 40 afs more? If 20 afs more? If 10 afs more? (It was difficult to gage what the price tolerance was on this. mineral as Iron. would you buy Afghan? Yes (16) No 0 (several commented: “If they are good!”) Would you perceive these to be fresher? Better quality? Yes (13) No (3) (not always) Would you pay a little more for the Afghan made biscuits? Yes (15) No (1) If 90 afs more? If 40 afs more? If 20 afs more? If 10 afs more? (10) (Yes if quality is better) note: there was some questions about the value of the biscuits which they felt cost only 10 afs.. (The women exhibited a great deal of interest in having fortified flours and snacks. About Biscuits: Do you buy packaged biscuits for your home now? Or make them? Buy(9) Make (0) Do you know where the biscuits are made? Yes (16) No 0 If biscuits were made in Afghanistan..

APPENDIX 6 (Detailed Cash flow projection-12 months) 23 .

24 .

25 .

RAMP and others. vehicles. 6 machine operators ($300 ea.Cost of goods sold (raw materials): The equipment capacity is 250 kg per hour.Electricity: 102 kilowatt /hour/at . Information is lacking in Afghanistan therefore information was gathered using the following sources: . . .000 . 1150/mos Vehicle. This is similar to the imported price. They actively pursue agribusiness projects that are viable and can show impact A repayment schedule of $$6642 has been used based on a $200.. First few months were assumed to be at half (50%) capacity but supplies are purchased during previous month.) Paid full staff during Month 1—this is a training period for all employees. First two months of operation was estimated at half the usual amount.Transportation is assumed to be at $8/MT/100 km Packaging: is included in Cost of Goods sold. 10. . -Vehicle for pick up and delivery (1) : $10. Altai.80/pkg.). Loan: There is availability of loan from Banks at 7-13% interest but little information exists as to where and loans available from RAMP who will loan $50-200. Building. Revenues are a function of: Actual computation of dough 250 kg/hr which produces 231 kg of biscuits.Factory Equipment (includes installation) $226. Model: Description and Assumptions Inflation or NPV is not represented in this model. 26 . The mill operates one shift 8 hours days per month during first year . . 13 laborers (100 ea.Interviews with main suppliers.11/kw (USD) is $3366/month Machinery Parts and repairs are on warrantee during first year. Multiplied by 8 hours X 25 days less 5% rejects equals 48390 kg of biscuit.000 loans at 9-12%. Staff increased to adjust for 2nd and 3rd shift increases in Year 2 and 3.000 -Generator: need 150 KVA generator $25000. Each of two year thereafter. 2 office (300 ea. $2000/yr. Limitations It was difficult to obtain data from factory management. UNICEF. First few months were assumed to be at half (50%) capacity. $167/mos total 2150/mos . we adjusted for additional shift .Interviews with stakeholders. since these factories are not all proficient with computing and accounting tools. Labor/Human resources: 2 guards ($100 ea). such as World Food Program.. 5 years.000 and Building $154.Interviews managers of flour mills and cake factories. and 3. Added 5% to expenses in Years 2.assumed 5% inflation Expenses are function of: . 13800/yr. and highlight the limitations of the analysis. two shifts—16 hours per day in Year 2 and on to 3 shifts in Year 3. Equipment +installation.000 loan at 12% on a 3 year repayment schedule. We made assumptions about operating costs. 1. Mercy Corp.. Industry data from other countries.Land is $20.Depreciation of Capital Purchases as follows: Building 20 years.60 to the wholesalers. The facility will operate 8 hours a day and add a shift in years 2 and 3.Appendix 6a Assumptions and Limitations to the Cash Flow Analysis The purpose of this memo is to explain the assumptions used to develop the business plan models. Assume that retailer will sell it for $.450 packages and sold at $ . Maintenance assumed to be 1% of Revenues Capital Purchases include Land.000/yr or 833/mos Equipment and Generator 10 years.) 2 maintenance ($200 ea).000 Additional vehicles purchased in Yr 2 and 3 . . These are packed into 200g packages which makes 219. 2.

Sign up to vote on this title
UsefulNot useful