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1.

Basic information
Name: Royal Die-Casting
Physical Address: Industrial State 2, Gujranwala
Postal Address: P.O.Box XYZ, Industrial State 2, Street 6, Gujranwala, Pakistan
Cell No: 0321-6451250, 0331-6434654
Ph No: 055-4298230, 055-4298231

2. Business Description
2.1 History
Royal Die-Casting is a new business. Royal Die-Casting will be a quality conscious company
dedicated to provide superior quality kitchenware to both local and international markets. Sonex
Die-Casting will be a reason of joy to Pakistani households, by providing the finest quality
cookware produced domestically. Over the years, the company will make a name for itself in the
international arena. We will export in major international markets including U.S.A, Europe and
the Middle East. Americans and Europeans preferred die-casting cookware because it gives
heavy look. At Sonex Die-Casting, our teams will be of dedicated individuals are working round
the clock to ensure continuous product improvement, as we want to ensure maximum customer
satisfaction to our clients. The top-class management, in conjunction with state-of-the-art
machinery and quality control standards, ensures world-class quality cookware. We aspire to
continue providing our customers with the best quality products in the future and promise to
fulfill their culinary needs with world-class products. Americans and Europeans preferred diecasting cookware because it gives heavy look.
2.2 Goals
Sonex Die-Casting opportunity is being pursued because of following reasons.

Sonex introduces die-casting cookware lines, highlighting Healthier Cooking with


Sonex strategy

Sonex Die-Casting aims to create new cooking experience for customers in all segments

Sonex Die-Casting will have high profit margins.

Aluminum hard which used as raw material, are cheaper than regular aluminum.

2.3 Core activities


Sonex Die-casting will be a manufacturing firm. Core idea of business is manufacturing process.
Process Flow Diagram

Raw
Material

Melting

Pouring

Drawing

Packaging

Tooling

Colouring

Sand
Blasting

2.4 Location
We want to establish Sonex Die-casting in the industrial state 2. There are many benefits
regarding this. There will be a proper load shedding schedule of gas, electricity. Industrial union
and no need of environmental permits. Sonex Die-casting will serve locally as well as
internationally. We will provide the product locally in every main city of Pakistan like Lahore,
Rawalpindi, Karachi, Peshawar, Quetta and Faisalabad. Internationally will distribute our
products to Manchester, New York, Dubai, Al-Riaz and Cape Town.
2.5 Products
Sonex Die-casting will manufacture five different kinds of products. Potential customers are
currently using non-stick, anodized and stainless steel cookware. Customers will shift to Sonex
Die-casting because of its ceramic coating, which is more durable and healthy according to
laboratory evidence.
Products Name

Sizes

Dosa Plate

Casse Role

Cooking Vok

Sauce Pan

Fry Pan

2.6 Suppliers
Sonex Die-casting will procure raw material from different suppliers. All the selected suppliers
have many much experience in market. They have lot of demand in market. We will enter in to
agreement with suppliers that payment will provide after first test. We have selected these
suppliers because of required material availability, cheap rate and near to company. Products will
deliver within a day of demand.
Raw Material

Supplier

Aluminum

Qadri Impex, Malik Shahzad & Co.

Color

Zafar & Co, Local market

Screw

Bala Enterprizes

Handle

Sonex Becolate

2.7 Ownership structure


Sonex Die-casting will have six share holders. Sonex international will provide 25% capital and
other shareholders will provide 12% each. All the share holders will run the company as different
directs such a finance, marketing, operations, procurement and HR. We will give 25% profit to
Sonex international and 15% to each director.
Shareholder

Capital

Designation

Investment
Ghulam Dastgir Butt

30%

CEO

Ali Raza Butt

15%

Procurement Director

Abubakar Mehmood

15%

Operation Director

Umer Aslam

15%

Marketing Director

Usman Rathor

15%

Finance Director

3. Legal consideration
3.1 Company registration
Sonex Die-casting will have to register form security and Exchange commission of Pakistan. In
order to register, we will apply for incorporation certificate which will cost 0.75% of authorized
capital. We will provide Article of Memorandum and Sonex Die-casting is registered.
3.2 Trading licensing & Tax Registration
Sonex Die-casting will have opened a band account in order to get National Tax Number from
Federal Board of Revenue. After with get sale tax registration from FBR.
At the end, Sonex Die-casting will register from chamber of Commerce of Gujranwala to get
import and export license.

4. Opportunity
4.1 Target Market Analysis
Sonex Die-casting target market is a mix between men and women of households that have an
income of 5,0000 Rs plus. The age range of the target group tends to be between ages 30 to 55.
Majority of the group received their products as either a gift from someone or purchased the
product as a gift for someone else. The group tends to care more about what the product can do
rather than how it looks. The group also has a large likely hood of watching cooking shows and
then purchasing cookware with familiar names of cooking celebrities or brands used by those
seen on shows. From a distribution standpoint, the target market is more likely to purchase
cookware at a large mass merchandise outlet or department store where they are able to see
cookware displayed alongside other competing products. The target preferring to purchase the
highest quality with the most features is most likely going to compare competing brands, so they
prefer stores that display products for easy comparisons. From a price standpoint, the target
market, like many want to have the biggest bang for their dollar. Price of products indicates

that the target market considers price a major factor when making a decision to purchase or not.
With the target market purchasing majority of products through mass merchandising outlets and
department stores, some of the target market will not make a purchase till a
discounted/promotional price is offered.
4.2 Competition
Sonex cookware industry has many competitors in the local and international market such as
kitchen king, Casio, Majistic, Tefal, Americancraft, Meyer and Prestige. China is the main
competitor in local market. Kitchking, Casio and Majistic are main competitor of Sonex in
Pakistan. Tefal is the number one non-stick industry in the world but their market share is very
low 2% in Pakistan local market because of their very high prices. Americancraft, Meyer and
Prestige are manufacturing of America, Japanies and chiness respectively. They have used all the
possible method of marketing such as print and electronic media. Strengths of international
players are mass production, heavy investment, appearance and performance. There weakness is
heavy price.

4.3 Competitive Advantage


Competitive advantage of Sonex Die-casting is process elimination and low cost of aluminum
raw material. Process elimination will eliminate 5 to 7 processes as compared normal cookware
manufactured. Low cost of aluminum which is used raw material will also competitive edge for
Sonex Die-casting. In this way, Sonex Die-casting will create monopoly in Pakistan market
because it needs heavy investment and industry is not aware of die-casting of cookware.

5. Marketing
5.1 Cost & Pricing
Sonex Die-casting will produce five different cookware products, each of which has 3 to 5 sizes.
In order to make our calculation easier, we will select regular size as standard, so calculated costs
and prices are
Product

Cost

Price

Dosa plate

500

550

Casse Role

1200

1320

Sauce Pan

500

550

Fry Pan

300

330

Cooking Vok

900

990

5.2 Sales Projections


Sonex Die-casting will make sample and distribute to distributers and wholesalers. Within month
of sample distribution, company will arrange meeting with dealers. In this way, company can get
the exact idea of sales. According to an estimate, company cans sale 50000 to 70000 pieces
within month. Sonex Die-casting will have export potential of 50% to 70%. There is lot of
demand for Die-casted cookware products in international market.
5.3 Marketing Plan
Sonex Die-casting will market die-casting products through billboards and displays. Company
will contact with dealers to rent a billboard in their respective cities. Company will buy displays
at every shop through deals. So the shopkeeper will display Sonex Die-casting cookware at front.
All of this will cost approximately Rs. 500000. There is no need of aggressive advertising like
electronic media and etc. because our product is not such type.

5.4 Organizational Hierarchy


CHIEF
EXECUTIVE
OFFICER

DIRECTOR
FINANCE

ACCOUNT
MANAGER

IMPORT &
EXPORT
MANAGER

COMPUTER
ASSISTANT

COMPUTER
ASSISTANT

DIRECTOR
PROCUREMENT

DIRECTOR
PRODUCTION

DIRECTOR
HUMAN
RESOURCE

DIRECTOR
MARKETING

MANAGER
PROCUREMENT

NON-STICK
SUPERVISOR

MANAGER HR

MARKETING
MANAGER

COMPUTER
ASSISTANCE

STORE KEEPER

COMPUTER
ASSISTANT

COMPUTER
ASSISTANT

QUALITY
CONTROLLER

LABOR

5.5 Personal Expertise


Name

Technical expertise

Ghulam Dastgir Butt

22 years old, BBA, Marketing Assistant in GBC

Ali Raza Butt

22 years old, BBA, Marketing Assistant in GBC

Abubakar Mehmood

24 years old, BBA, Accounts Assistant in GGL

Umer Aslam

22 years, BBA, Sales Assistant in Mobilink

Usman Rathor

22 years, BBA, Operational Assistant in Pepsi

6. Die-Casting Technology
Die casting is a manufacturing process in which molten metal is injected, under considerable
pressure, into a hardened steel die or also called die casting mold. Dies are often water-cooled.
The die is then opened, and the die casting parts are ejected (many times thousands of die casting

parts each day, sometimes only a few hundred die casting parts). Once the die casting tooling is
paid for, die casting parts are a very inexpensive aluminum part manufacturing process.
Compare High pressure die casting to Other Manufacturing Processes.
Why Use Die Casting in aluminum:

6.1 Forgings
Compared with forgings, die casting can be more complex in shape and have shapes not
forgeable, can have thinner sections, be held to closer dimensions, and have coring not feasible
in forging.
6.2 Extrusions
Compared to extrusions, die casting can be produced faster and more net shape. Features and
depressions on the sides, tops and bottoms can be created in one operation. There is less waste
using die casting than extrusion. Holes can be cast in place to save additional machining cost.
6.3 Stampings
Compared with stampings, one die casting can often replace several parts. Die casting frequently
require fewer assembly operations, can be held within closer dimensional limits, can have almost
any desired variation in section thickness, involve less waste in scrap, and are producible in more
complex shapes. Die castings can be made in many shapes not producible in stamped form.
6.4 Sand castings
Compared with sand castings, die castings require much less machining, can be made with
thinner walls, can have all or nearly all holes cored to size, can be held within much closer
dimensional limits, and are produced more rapidly in dies which make thousands of die castings
without replacement. Die castings do not require new cores for each casting, are easily provided

with inserts die cast in place, have smoother surfaces and involve much less labor cost per
casting.
6.5 Permanent mold castings
Compared with permanent mold castings, die castings can be made to closer dimensional limits
and with thinner sections and holes can be cored to near net shape. Die castings are produced at
higher rates with less manual labor, have smoother surfaces, and usually cost less per die casting.
6.6 Advantages of Die Casting

Die casting is an efficient, economical process offering a broader range of shapes and
components than any other manufacturing technique. Parts have long service life and
may be designed to complement the visual appeal of the surrounding part. Designers can
gain a number of advantages and benefits by specifying die cast parts.

High-speed production - Die casting provides complex shapes within closer tolerances
than many other mass production processes. Little or no machining is required and
thousands of identical castings can be produced before additional tooling is required.

Dimensional accuracy and stability - Die casting produces parts that are durable and
dimensionally stable, while maintaining close tolerances. They are also heat resistant.

Strength and weight - Die cast parts are stronger than plastic injection moldings having
the same dimensions. Thin wall castings are stronger and lighter than those possible with
other casting methods. Plus, because die castings do not consist of separate parts welded
or fastened together, the strength is that of the alloy rather than the joining process.

Multiple finishing techniques - Die cast parts can be produced with smooth or textured
surfaces and they are easily plated or finished with a minimum of surface preparation.

Simplified Assembly - Die castings provide integral fastening elements, such as bosses
and studs. Holes can be cored and made to tap drill sizes, or external threads can be cast.

6.7 Companies using Die-casting Technology


Ningbo Kitchen Utensils Co., Ltd., Hangzhou Kitchenware Co., Ltd., Yongkang Unique
Hardware Products Factory, Hangzhou Metals Minerals Machinery and Chemicals Imp. & Exp.
Co., Ltd. Sun Woo INC.,

7. Finance
7.1 Expenses
Sonex Die-Casting will have three different types of expenses.

Capital infrastructure

Raw Material

Salaries & wages

Capital Infrastructure

Furnace= 100,000 x 3= 300,000

Die-casting Machine= 10,000,000 x 3= 30,000,000

Sand Blasting= 1,800,000

Curing Tunnel= 3,500,000

Tooling Machine= 400,000

Building = 1,000,000

Furniture= 200,000

Raw material cost

Aluminum= 4,000,000 x 2= 8,000,000

Aluminum Sand= 50,000

Color= 2,000,000

Tooling Accessories= 150,000

Salaries & Wages


Salaries & Wages= 800,000
Utilities and Overheads
Factory over heads= 300,000
Land Rent= 50,000
Total expenses are 52 million which include

Description

Total Investment

Start Up cost

51 M

Capital Infrastructure

37.20 M

Working Capital

13.8 M

Salaries

0.8 M

Utilities & Overheads

0.2 M

Total Capital Investment

52 M

7.2 Profit & Revenue


Sonex Die-casting will have a profit margin of 10% at every product. For simplicity, average
profit per piece is Rs. 68. Sonex Die-casting will produce approximately 1500 pieces per day.
Production per Machine= 500
Number of Machines= 3
Production= 1500 per day
Number of working days= 25 days
Total production= 37500 per month in pieces
Total production= 25,500,000 Rs per month
Total Revenue= 28, 050, 000 Rs per month
Total profit= 2,550,000 Rs per month
We will sale product at two month credit. So company will not get anything in first two months.
Company will get positive cash flows after two months so 13.8 million is working capital of
Sonex Die-casting.