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Off season vegetable farm house &Vegetable Juices
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MUHAMMAD MUBEEN BAHOO RANA MUHAMMAD SHEHZAD IQBAL
Off season vegetable farm house & Juices
Address Juice Shop: Shop # 05, Adjacent to National Saving Centre, G-9 Markaz Islamabad Address Farm House: Moza Bango, Rawalpindi Road, Near New Islamabad Air Port, Fateh Jang, Islamabad ZIP Code: 44000 Mobile1: +92-xxxxxxxx Mobile2: +92-xxxxxxxx Telephone: +92-51-xxxxxxx Fax: +92-51-xxxxxxx E-Mail: email@example.com
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I. II. III. IV. V. VI. VII.
Table of Contents
Table of Contents.......................................................................................4 Executive Summary....................................................................................5 General Company Description......................................................................6 Products and Services...............................................................................13 Marketing Plan.........................................................................................19 Operational Plan.......................................................................................34 Management and Organization...................................................................51
VIII. Personal Financial Statement.....................................................................52 IX. X. XI. XII. Startup Expenses and Capitalization............................................................53 Financial Plan..........................................................................................56 Appendices..............................................................................................58 Refining the Plan......................................................................................61
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Refining the PlanExecutive Summary
The GREEN PLATE is a business which deals with the off-season vegetable farming and juice of fresh vegetables. The farm house is located near fateh jang and juice shop is in G-9, Islamabad. The purpose of the business is to provide fresh juice to peoples achieving a suitable margin and having fame in business. The vegetable juicing is a new venture and farming will be done to support the juice shop. The land in fateh jang is the owner property and agricultural loan has been taken to run the juice shop. Customers of the business are hotels, restaurants, domestic users, patients, young peoples and everyone who could afford the product. For promotion of the business aggressive marketing will be done. In support of this doctor’s recommendations have been incorporated. Off-season vegetable will be sold in the market at comparatively low price than the competitor. By this the monopoly of the competitor will be no more and people of Islamabad and Rawalpindi will have fresh vegetables rather than a stored vegetable. Although it is a small new venture in terms of vegetable juice but in 7th month of the business it will maintain its suitable margin. Vegetable farming is already existing business so it will carry a suitable profit when the first crop will be picked up. The loan will be at 17% from ZTBL for 1 year. The payment schedule will be in terms of 2 installments.
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General Company Description
The business I have chosen for my small and medium entrepreneur project is vegetable green house and the producing juice of vegetables. The purpose of the business is to grow off-season vegetables and producing their juice as well. Farming will be done on cultivable land of Fateh jang, Islamabad, and juices of different off-season vegetables will be sold in market of G-9 Islamabad as a fresh juice. The purpose of farming is not just to have a produce for vegetable juice, but to produce off-season vegetables for the consumers as well. It will cater the demand of restaurants and home usage of vegetables. Mission Statement “To provide quality off-season vegetable and its juice to the consumers at affordable price” Company Goals and Objectives To achieve maximum revenue by providing quality product to the consumers so that business could grow. The juice will be titled as from seed of vegetable to your juice mug, it’s all pure. So off-season vegetable juice by doctor’s prescription will be good for all type of peoples. The objective is refined in this sense more, building a healthy nation.
The cultivation of off-season vegetable and their juice production is very important factor of the business. It is because of the importance of vegetable for life in the prospect of health. There is no growth in this sector so being an agrarian economy this sector should be promoted. So, I found this business to be the best to contribute in country’s economy as well as having suitable outcome from this entrepreneurial activity. Importance of Vegetables Vegetables are rich source of vitamins, carbohydrates, salts and proteins. With increased health awareness in the general public and changing dietary patterns, vegetables are now becoming an integral part of average household’s daily meals. In addition, high population growth rate has also given rise to high demand in basic dietary vegetables. Increased health awareness, high population growth rate, changing dietary patterns of increasingly affluent middle class and availability of packaged vegetables, has therefore generated a year round high demand for
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vegetables in the country in general and in major city centers in particular. However, our farmers have yet not been able to en-cash this opportunity and still follow traditional sowing and picking patterns. This results in highly volatile vegetable supply market wherein the market is flooded with seasonal vegetables irrespective of demand presence on one hand and very high priced vegetables in off-season on the other. Lack of developed vegetable processing and storage facility robs our farmers from their due share of profit margins. In natural season local vegetables flood the markets substantially bringing down the prices. In the absence of storage infrastructure and vegetable processing industry in the country, off-season vegetables farming is the only viable option that can add value to the farmer produce and juicing is new venture adding more value to the business. Reason to Choose General Agriculture sector is the backbone of Pakistan’s economy. The sector employs 44 % of the work force and contributes 25% towards National GDP. Nature has blessed our country with fertile land and suitable climate for growing variety of vegetables. The geographical location of the country is ideally suited for a large variety of agricultural crops, which are used directly for food as well as a raw material for processing industry. Vegetables grown in Pakistan are unique in taste, aroma and are almost organic as very low quantity of chemicals is used in their cultivation. Moreover, most of the vegetables grown are not genetically modified and original species are still cultivated in the country. Juices of Vegetables are not so much famous, but they cater the need of Vitamins which is directly eatable by human in the form of vegetables, being juices of vegetables Doctor’s prefer to have such kind of nutritional brew rages. On other hand our own family background is agricultural.
The proposed project is designed as a small size off-season vegetable farming unit and juice producing unit. Off-season vegetables, such as, tomatoes, cucumber, hot pepper and squashes could be cultivated using High tunnel technology on 6 Acres, and there flavored juices as a fresh juice will be available. The juice producing outlet will be in G-9 markaz, near Rahat Bakery Islamabad. The target customer’s for off-season vegetable are hotels and restaurants and general people. Products will follow proper distribution channels to reach to their actual consumers.
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Off- Season Vegetable The land can be utilized for green farming during the idle period to maintain the fertility of soil. Apart from green farming, the land can also be utilized for growing seasonal vegetables like potato, carrot, onion, garlic and cabbage and specially mushrooms etc., in the idle period, but this may affect the fertility of the land, resulting in reduction of yield of Green farming is done to maintain the fertility of the land with the cultivation of any legume crop. When the crop is matured it is then incorporated in soil with the help of a Rotavator. Therefore it is recommended that only off-season vegetables should be grown on the proposed land, with a well chalked out sowing pattern and in future plans cultivation of mushrooms will also take place. The estimated yield potential of the farm varies according to the selected type of vegetable. There is a huge demand for fresh vegetables in the local as well as international markets, which includes Europe, Middle East, and Far Eastern markets but due to their perishable nature it is difficult to export this commodity. Vegetable Juice Vegetable juice is a drink made primarily of blended vegetables. Vegetable juice is often mixed with fruits such as tomatoes or grapes to improve flavor. It is often touted as a low-sugar alternative to fruit juice, although most commercial brands of vegetable juices contain large amounts of sodium. In foreign Countries, Vegetable juices are produced and consumed for their refreshing character and nutritional qualities being rich in vitamins and minerals and having regulatory functions to the body systems; such as augmenting of alkaline reserve of the blood and proper functioning of blood vessels, including capillary, permeability and fragility as a result of contained falconoid. Juices also increase body retention of calcium, magnesium, nitrogen and are also good sources of quick energy. These qualities need to be maximized in technologies used to process Vegetable and fruit juices. Many popular vegetable juices, particularly ones with high tomato content, are high in sodium, and therefore consumption of them for health must be carefully considered. Some vegetables such as beets also contain large amounts of sugar, so care must be taken when adding these to juices.
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Although the actual nutritional benefits of vegetable juice are contested, a recent UC Davis study found that drinking vegetable juice daily significantly increased drinkers' chances of meeting the daily recommended number of vegetable servings. Having an easy source of vegetables encouraged drinkers to incorporate more vegetables into their diets. Industry The facility of growing off-season vegetables also allows for growing non-conventional varieties and vegetables, which are in high demand in the international market. The importance of vegetables cannot be denied due to their nutritional value as these provide proteins, carbohydrates & salts that are essential ingredients for the growth of human body. Vegetables are used in raw form as salad or cooked food according to the taste, which provide a balanced diet and keep human being healthy. A large number of world population now prefer vegetables in their daily diet due to the awareness that vegetables provide better source of energy and nourishment to the body, so their juice is best alternative to use it directly. Mostly the vegetables grown in the world are local to their land and countries however other varieties and types have also been introduced from across different continents/countries, which are now grown and consumed in the local diet. Almost all types and varieties of known vegetables are grown in Pakistan. Vegetables can be cultivated in off-season, with the induction of an artificial technique like tunnel technology, in which temperature and moisture is controlled for specific growth of vegetables. The production of vegetables all around the year enables the growers to fully utilize their resources and supplement income from vegetable growing as compared to other normal agricultural crops. As the landholding powers of farmers is decreasing, they need to increase the productivity of their available land, off-season vegetable farming is a measure through which they can attain higher profit margins from the crop and vegetable juice is a new venture.
Competency The fact is that this is not my DREAM PROJECT but in terms of earning handsome amount of money green house is from one of those good options who have low risk for the investors. Regarding to green house field the Competitors are not in large amount and not even in large
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scale. At present, the tunnel technology is being used at the following places/farms along with other small farms: ➢ Mian Shadi Agri-Farm, Mamonkangan, district Faisalabad ➢ Haji Sons, Chiniot, Jhang ➢ Ayub Agricultural Research Center, Faisalabad ➢ National Agriculture Research Center (NARC) Chak Shehzad, Islamabad ➢ University of the Punjab, Lahore ➢ Sitara Farm, at Sitara Chemicals, Shah Kot, district Faisalabad
As we talk about the Vegetable juice, there is no competitor of this product. In future planning which is cultivation of mushrooms is also unique in Pakistan. A big unit for vegetable juice in the form of tetra pack will be installed for the production at a very large level. All we know that the population is increasing rapidly which is pushing the trend of expansion of cities due to which the no of restaurants will increase with the passage of time and the awareness of taste and selection of food and advices of doctor to use vegetables rather than meat will increase the demand for such vegetables. In this business my aim is to produce vegetables on large scale so that I will be able to compete with the competitors by keeping the price low. The vegetables will be highly hygienic and will be provided to the customers in a safe good packing. The location of my green house will be near to the city for the convenience of the transport and to provide fresh supplies to the customers and local markets. Key success factors The commercial viability of the project depends upon the regular and consistent supply of good quality hybrid seeds and fertilizers. The other important aspect is the need for strong linkages with the local market and progressive vegetable exporter. The vegetable juice which we are providing in G-9 opposite to Rahat Bakers is a best place for juice selling in the market. On other hand we are providing a quality juice with recommendation of doctors so that all the recipes will have certain nutritional benefits according to age and health of the peoples. The specialty of menu of juice is that all the juice recipes will be designed according to the advice of doctor.
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Strengths and Opportunities High quality vegetable due to high quality seeds Low cost Expanding nationwide Our own agricultural background Demand of vegetable juice will have a potential Doctor’s recommendations for vegetable juice No competitor for vegetable juice
Weakness and Threats Low market share in the beginning Extremely bad weather conditions Pesticides attack Floods / Rainstorms Change in government regulations Indirect Competitors may start vegetable juicing
Legal form of ownership Ownership is going to be in the form of partnership. Both the partners have agricultural background so our skills and abilities will combine to carry a long-term business and have a suitable profit. All the profits and losses will be beard equally. The business is not at a very large level so the risk will be minimum.
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Products and Services
Vegetables Which Can Be Sown Growing under plastic is more competitive in today’s vegetable market, it gives superior yields and early spring production. Following crops are high value Vegetables and has shown significant increase in earliness. • • • • • • • • • Melons Tomato Pepper Cucumber Bitter Gourds Squashes Eggplant Water melon Brinjal
Main types of Vegetable drinks: • Tomato Juice
Sugar cane juice
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Total Production Capacity on the basis of low tunnel technology Vegetables Tomatoes Cucumber Capsicum/ Sweet pepper Area (Acres) 2 2
Production Total Production Quantity in (Kg.s)/ Quantity Acre 55,000 165,000 60,000 26,000 180,000 78,000
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Carbohydrate s Gram
16 6.2 8.2 2.2 3.9 8.0 3.5 9.7 60.4 2.6 2.0
Potato Turnip Carrot
71.6 30.0 39.6
1.7 0.9 1.1 1.1 1.0 3.0 0.9 0.9 1.0 1.9 0.8
0.1 0.2 0.3 0.1 0.2 0.2 0.3 0.2 0.0 0.2 0.1
14.1 24.7 5.3 31.1 38.1 11.9 20.5 8.4 5.1 48.2 12.6
Cauli Flower 13.9 Cabbage Peas Tomato Onion Spinach Brinjal Lettuce
19.8 45.4 20.0 45.8 23.8 20.3 12.6
Nutritional ingredients in a weight of 100 Gram
(Source: www.Smeda.org )
Advantages Benefits from year-round production include year-round income, retention of old customers, gain in new customers, and higher prices at times of the year when other local growers (who have only unprotected field crops) do not have produce. Other potential benefits of season extension technologies are higher yields and better quality. In summers for off season vegetables cultivation high quality indeterminate seed is easily available in markets. This indeterminate seed grows upwards with provided support similar to Pumpkin instead of spreading on ground Therefore Tunnel farming has increased the production of plants in even smaller areas, which is turned out to be profitable. Small farmers with small cultivating area can get benefits from plastic tunnel farming and can increase their income. In plastic tunnel farming, problems due to less supply of water are alleviating by using drip system irrigation. In addition, with year-round production you can provide extended or year-round employment for skilled employees whom you might otherwise lose to other jobs at the end of the outdoor growing season. Disadvantages
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include no break in the yearly work schedule, increased management demands, higher production costs, and plastic disposal problems. Despite all these factors there is no any competitor of vegetable juice who is producing it under a brand name. all the juice recipes are medically tested for the health. So this section has an extra advantage due to its uniqueness. Disadvantages There is no particular disadvantage in this activity accept natural threat e.g. windstorms or rainstorm etc, if indirect competitor start to make vegetable juice, or any government regulation etc.
Plantation & Growth Essentials There are 15 essential requirements for healthy growth of a plant. The requirement and their respective sources are provided in the following table: SOURCE Air & Water Land REQUIREMENT Carbon, Hydrogen, Oxygen, Nitrogen, Phosphorus and Potash Calcium, Magnesium, Sulpher Iron, Copper, Zinc, Boran, Molybidenium, Maganese and Chlorine
Expected Production and Sale price Expected production and sale price of some vegetable is given in Table below: -
Expected Production and Land Utilization Vegetable Land Utilization (Acres)
Production Quantity (Kgs)/ Acre
Production Quantity (Kgs)
Sale Price Rs7./ (Kg )
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Cucumber Capsicum /Sweet pepper
The prices of vegetables in normal season are around one-third of the prices of vegetables grown in off-seasons.
Proposed Capacity of Vegetable Juice
Tomato Cucumber Carrot Vegetable Punch Sugar cane
18.18% 9.09% 27.27% 27.27% 18.18%
Fresh Juice Fresh Juice Fresh Juice Fresh Juice Fresh Juice
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Market research - Why?
Market research is a very important aspect of any new starting business. Our business is a new venture in aspect of vegetable juice making. There is no competitor in vegetable juice making so we need to have a market research that either people will like to have vegetable juice or not. Although the fruit juicing industry is an indirect competitor yet the need is to locate the potential in the market for vegetable juicing.
Market research - How?
To carry an ideal research for the off-season vegetable we are reviewing the competitor’s strategies and the offered services. The research will be secondary research so we will be consulting yellow pages from Pakistan. The reports of production of the vegetables by the government authorities and annual statistical data compiled in the production of vegetable context will be analyzed. As for primary market research concern the survey will be made for off-season vegetable by questionnaire filling from general public, which includes young generation, students, business personals, households etc. the need of assessment from ladies carry a very important role because of vegetable use in cooking. We are conducting a survey from different hotels and restaurants of Rawalpindi and Islamabad as well. Vegetable juice needs primary market research to be conducted. It is a new idea so there is no direct competitor of it. Questionnaire for the survey was developed by keeping in mind the need of customers and the trend of brewing industry and we will have a feed back on this. Different ideas of peoples of different classes are taken about the vegetable juices. Doctors have been consulted to promote the vegetable juice. The peoples of different regions were in focus to have ideas about the vegetable juice. There is a need to create the changing trend about the vegetable juices. An aggressive marketing for vegetable juice will be done which will be telling the product with its features and benefits attached with it for the healthy life.
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Facts about our industry: • Total size of our market :
In consideration for market size there is no exact figure which you can predict but as the other businesses have idea of the market, our market size comprises of Islamabad and Rawalpindi. But after some time it will increase to other major cities of Pakistan. • Percent share of the market we will have:
The percent of market capture incase of off-season vegetable will be more than 75% of Islamabad and Rawalpindi. In case of vegetable juice the market capture will be 80% for those who consume it. This comparison is in competition with competitors. But annual market capture regarding as whole market trend will be a contribution of more than 2%. • Current demand in target market :
Although there is a great demand for off-season vegetable, but the available vegetable is not under any particular label so it would be under the label of Green Plat, yet there will be a great need to promote the brand. The vegetable juice will also require a great attention for its availability everywhere so aggressive marketing will cover this assignment • Growth potential and opportunity for our business
Off-season vegetable and juice are the essential component for the human body. The changing trends in the taste of people have led them to have a change of taste in different products and breweries which they use. Medically the natural food always gives healthy prospects. The trend of vegetable juicing and drinking juice of carrot in June or July will have a very different taste. • Barriers to entry which we will face in entering this market with our new company are: ○ ○ ○ High capital costs High production costs High marketing costs
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○ ○ ○ ○ •
Consumer acceptance and brand recognition Unique technology and patents Unions Tariff barriers and quotas
How to overcome the barriers?
High capital cost will be the main problem because greater owner equity has very risk. However partnership is made to overcome this problem. Market capture and consumer acceptance are also important factors to be covered, so promotional activities and great effort for the trend change will make it acceptable, however the risk of competitor after the business success will always be attached. This will be tackled when there will be a great threat from that competitor by adopting competitive advantage leading to innovation strategies. Following factors could affect our company ○ ○ ○ Change in technology Change in government regulations Change in the economy
Products Features and Benefits
As off-season Vegetable Product Tomatoes Features It would be available for the whole year, as fresh. Naturally growing It would be available for the whole year, as fresh. Naturally growing Benefits It is used in all the dishes made by the restaurants and home dishes. It is health giving vegetable It used in salads, restaurants need it whole year and for home use fresh cucumber will be available
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It would be available for the whole year, as fresh. Naturally growing
Need of every dish. Without it there is no taste in all types of dishes
As vegetable Juice Tomato Juice Almost pure. A good source of Phosphorus, Sulfur, Vitamin C. Best in taste, it is best for bringing a person from hanging position after drinking. It will have a great demand in hotels. Best for Bladder Problems, Gall Bladder Problems, Gout, Kidneys, Liver, Skin Problems, Weight Loss. All age group favorite. Best alternative for Acne, Arthritis, Eczema, Fluid Retention, Hair Loss, High Blood Pressure, Kidneys, Psoriasis, Weight Loss. Cool effect in summers.
Combination with fruit taste. A good source of Manganese, Potassium, Silicon, Sulfur, Vitamin A, Chlorophyll Source of Calcium , Phosphorus, Potassium, Sodium, Vitamin A, Vitamin B, Vitamin C, Vitamin E, Vitamin K. Combination of all vegetable juices with a good taste
Best for Brain, Cancer, Liver Problems, Ulcers, Weight Loss, Skin Problems, Hay Fever, Bladder Problems, eyes. Good in taste. Youngster’s favorite. Everybody will like its taste; it could be used as a wide range deficiency of nutrition fulfilling. Best for Children. Old age people like it.
For off-season vegetable we are directly targeting hotels and restaurants, very small portion of peoples for domestic purposes will be using it. There are number of hotels and restaurants in Islamabad and Rawalpindi. The customer of the juice will be everyone who born and have taste in his buds. There are 4000 blocks in G-9 and more than 15,000 peoples live in this sector. G-9 sector is almost in between of the Islamabad so all classes of peoples could easily access it.
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Age Peoples of all age group (5 and above)
Gender Male and Female both
Location Restaurants of all types, House use
Income Level People of all income level could afford any product
Social class and occupation Education All peoples, who have basic education
. At present, the tunnel technology is being used at the following places/farms along with other small farms: ➢ Mian Shadi Agri-Farm, Mamonkangan, district Faisalabad ➢ Haji Sons, Chiniot, Jhang ➢ Ayub Agricultural Research Center, Faisalabad ➢ National Agriculture Research Center (NARC) Chak Shehzad, Islamabad ➢ University of the Punjab, Lahore ➢ Sitara Farm, at Sitara Chemicals, Shah Kot, district Faisalabad
As we talk about the Vegetable juice, there is no competitor of this product. In future planning which is cultivation of mushrooms is also unique in Pakistan. In off-Season vegetable the competitor in Islamabad has no big scale production unit but the thing is it is already existing and doing business in monopoly. By the start of this business at a
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low price it will give competitive advantage (porter’s five force model, 1980. Competitive advantage) the innovation of new product which is vegetable juice, will have greater market capture hence giving support to off-season vegetable. On other hand if off-season vegetable becomes more successful in capturing the market then it would support the vegetable juice by giving a brand name to it. Analysis of competitors (For Off-season Forming)
Me (Green Plate) price distribution promotion Strengths/ weakness Quality Variety of vegetables Plant location Advertising Low Medium High Medium /Mediu m High Low Haji sons High Low Low Low/ Mediu m Low Low Ayub agricultur e Medium Medium Low Medium/ Medium Medium Low NARC University of Punjab Medium High Medium Medium/ Low Good Low Sindhu farm High Low Low Low/ Low Low Low Sitara farm Mian shadi agri farm Medium Medium Low Medium/ Medium Medium Low Importa nce to custom ers 5 3 4 3
High Low Medium High/ low Medium Medium
High Medium Low Medium/ Medium Medium Low
Competitive advantages The advantage over the competitors is of low price product which is off-season vegetable and freshness of the vegetable will be maintained through proper and timely delivery through distribution channels. All the products will be readily available throughout the year. The vegetable juice is the big advantage over all market available juice producers. It is also the reason of no threat from them that they are not direct competitors of our product which is vegetable juice. Our competitor National Agriculture Research Center (NARC) Chak Shehzad is not enough competent to sustain his position with his existing conditions. His business is not at so large level, it can be competed. After our product launching the monopoly
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will be broken. We will capture all city super markets for our product selling. Our competitor is not advertising its products heavily and not taking any botheration due to its monopoly. We will provide fresh vegetable juice for all classes of peoples. Our menus will be designed by the doctor’s advice, which have uniqueness. In our culture nobody knows that when to eat onion. It is kept in all types of hotels even in night timings. Which is medically proven that onion after noon digests slowly. In same way radish will not be eaten after noon but people don’t know about this fact. We will promote our brand according to doctor’s prescription. Another advantage is that we are producing juice of off-season vegetable which we grow our self. If any competitor arises for juice he might not be able to provide off-season quality vegetable juice in our comparison. So in this case we GREEN PLATE are good enough. Competitive disadvantages Disadvantage which we will face is that they are already doing business from a period of time in off-season vegetable. On the behalf of juice the shezan, nestle, etc. are not direct product competitors but they have a capture of fruit juice industry, which has a trend.
Our company has a very small unit of production, so in the beginning year it will just try to build the image of its products in the minds of consumers, but after some period of time it will start expanding. The main target customers are hotels and households for off-season vegetable and for juice there is no defined category but young generation and patients are the main customers. We are focusing on patients by the help of doctors. The future plan of growing mushrooms and export of its product will carry a name in the world. The target peoples are everybody who could afford our product. The specific classes are middle and upper class.
Our strategy to capture the market is mainly to focus on the promotion of the brand. This needs heavy budget, and we will have aggressive marketing to get the attention of the customers towards our product.
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Promotion Our main focus in terms of marketing will be to promote the product. For this we have consulted many doctors and advertising agencies. Following are two voluntarily working doctors who have promised to provide their services free of cost for life time. They will promote our juice for patients and we will launch an advertisement by the reference of these doctors so that our brand will definitely make an image in the mind of our customers. Doctor Ehsan-ul-Haq Address: ehsan clinic, sadder bazaar, Rawalpindi Ph# Clinic: +92-51-5580540 Ph# Cell: +92-333-5122103 E-mail: firstname.lastname@example.org
Doctor Shafqat Hussain Arshad Address: PIMS, Islamabad Ph# Cell: 03335144460
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On other hand we have consulted following advertising agencies to promote our brand by banners, cable T.V ads, pamphlets. Land Hill Advertising Agency G-10 Markaz Islamabad UAN: 111-111-160 Cell#: +92-333-5888848
Zahoor Fine Arts and Printing Press Main Girls College Road, Block 16, Sargodha Cell#: +92-321-6039585
Promotional Budget Before Startup 100 banners 3’x7’ inches (By Zahoor Fine Arts. Sargodha) 10,000 pamphlets are as a gift from Zahoor Fine Arts, on startup. At a cost of 50 each 100x50 = 5000 R.S The cost is so minimum that’s why we are ordering it in Sargodha. Cable Ad at World Call Cable Network Islamabad 30,000 Advance. 20,000 per month
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Total Cost of Cable add before startup = 50,000 Net Total Cost before Startup = 55,000 rupees After Startup 200 banners x 50 each =10,000 R.S Cable add 20,000 x 5 month = 100,000 Net Total Cost after startup = 110,000 R.S Total Advertising Cost = 165,000 Available Budget will be 300,000 Rupees. After all this we want that our customers will be attracted in this sense that although they are new comers with new idea but they are enough strong and really have a good quality with a very affordable price. They are hygienic and provide juices with the advice of doctors. Our Logo
Off season vegetable farm house &Vegetable Juices
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Pricing Our pricing methodology is 30% profit margin on sale of each off-season vegetable and juices as well. The prices could be fluctuating according to market trend but there will be no compromise on quality. Peoples are now more conscious towards the quality of the product so we shall never compromise on quality. The difference of price from our competitor is 35%. Our pricing strategy competes them highly. This estimate is for on-season peak days. The advantage to our strategy is that we are breaking their monopoly by setting a suitable margin. Customers don’t always prefer a low price but they do prefer quality. For this we have categorized our products in three qualities of vegetable. A Category B Category C Category Finest Quality Good Quality Middle Quality A grade Vegetable B grade Vegetable C Grade Vegetable
In case of each category the price will decrease by 5% and 7% for B and C category. Proposed Location Location for off-season vegetable farming at Fateh jang road is nearest to Rawalpindi and Islamabad. By the adoption of this place the purpose of delivery is accomplished in better way. The fertility of land will generate a quality vegetable and in our future plans the export will be easy. The location is very famous for land forming. Motorway M-2 passes 3 Km south of the land. The land is exactly situated 4 Km to the south of New Air Port runway. The access of retailer distributors is also very easy. The site for vegetable juice is in G-9 Markaz Islamabad is adjacent to National Saving Centre which is very near to Rahat Bakery Islamabad. The location for juicing is in between of the Islamabad. It will cater the need of all the customers of juice. The location is ideal for such business. It has enhanced our strength. There is a huge space for parking and most of the peoples will be served in their cars. This place is exact for our company.
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Distribution Channels The effectiveness of distribution coverage and practice is of paramount importance in achieving the desired off-season vegetable sales. Understanding of the distribution channels is crucial in order for the manufacturer to plan and implement an effective distribution strategy. Our study shows that the distribution of our products is to be done through multiple channels involving producers, importers, wholesalers, retailers and users. While it is the common practice for the individual customers to buy the products from the retail outlets; institutional/ organizational buyers such as tourist hotels and agencies would normally place orders directly with the producers/importers and wholesalers. Juice will be served directly to the consumers. A typical distribution setup of off-season vegetable business involves the following hierarchy
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Sales Forecast of Juice We have estimated our sales by increase of 2.5% in juice and vegetable items. The sales of juice is below MONTHS 1st month 2nd month 3rd month 4th month 5th month 6th month 7th month 8th month 9th month 10th month 11th month 12th month BEST CASE 150000 157500 165375 173643 182325 191442 201014 211065 221618 232699 244333 256549 WORST CASE 50,000 52500 55125 57881 60775 63814 67005 70355 73873 77567 81445 85517
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Expected Production and Sale price Expected production and sale price of some vegetable is given in Table below: Expected Production and Land Utilization of off-season vegetable Vegetable Land Utilization (Acres) 2.5 2.5 2.5 Production Quantity (Kgs)/ Acre 25,000 35,000 12,000 Production Quantity (Kgs) 62,500 87,500 30,000 Sale Price Rs. / (Kg ) 30 16 25
Tomatoes Cucumber Capsicum
Sales analysis of off-season vegetable In the business of farming the prices remain constant due to a long duration picking period of the vegetable but they do vitiate due to market changes. We assume 5% increase of sales by each year. YEAR 1 2 3 4 5 6 7 Sale 31,98125 33,58031 3525933 3702229 3887341 4081708 4285793
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8 9 10 TOTAL
4500083 4725087 4961342 39916973
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For off-season vegetable farming
Production Production of off-season vegetable and vegetable juice will be in Fateh jang, near new Islamabad air port, on a fertile land on 6 acres. Juice producing plant will be placed on half acre. Total area will be of 7 acre. The land will cost schedule is following; 1 kanal rate is 8 kanals/ I Acre rate will be 7.5 acre rate is 300,000 R.s 300,000*8 = 24, 00,000 R.s
24, 00,000*7.5 = 1, 80, 00,000 Rupees
The benefit to us we own this land. The agricultural loan will be easily available. Fertilizers on Production Using fertilizers containing Nitrogen, Phosphorus and Potash the yield of the crop can be maximized. Appropriate quality and quantity of fertilizer plays a great role in the production and quality of vegetables. Sowing & Picking period of off-season vegetables Following are sowing and picking periods of selected off-season vegetables in their respective normal growing seasons: Sowing and Picking period for the selected off-season vegetables Vegetables Tomato Cucumber Capsicum Sowing Period October (Nursery) November (transplantation) End of October to end of December (direct seeding) Mid of September to 1st week of October Picking Period February-May Mid January to May End of January to September
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End of October to 1st week of November (Transplantation) Off-season cultivation methods There are number of ways and methods to cultivate vegetables in off-seasons. Some of the methods are explained as under: Natural method by selection of appropriate area The off-season vegetables are grown in the areas where the climatic conditions are moderate for both normal as well as for off-seasons. Winter vegetables are grown in summer on hilly/semi hilly areas where climatic conditions are favorable for a particular vegetable. Likewise summer vegetables are grown in winter season in the valleys and across the sea areas. The production cost of vegetables under above conditions is very high due to transportation of crop to the markets. Moreover, the transportation of crop over long distance markets causes post-harvest losses. These drawbacks lead to the adoption of artificial methods of cultivation in off-season, nearer to markets to tackle heavy transportation cost and to reduce post-harvest losses. Artificial Methods Vegetables can be grown in off-season through artificial methods, the details of these methods are given below: Growing Beneath the Sarkanda3 This is an old method and is usually adopted near the big cities. The main vegetables grown under this method are tomato, chili, cucumber, and bottle gourd. The nursery of these vegetables is planted in October/November and a wall of Sarkanda is affixed in the direction of North South, which protect plant from cold winds and mist. This method of cultivation is not beneficial because the growth of the plant tends to be slow, as the plant does not receive required sunshine and desired humidity. Building of Green Houses Through building green houses, the sunshine intensity is controlled. The vegetables under this method are grown mostly in the winter season. Here the temperature, humidity, carbon dioxide, ventilation of air and irrigation etc. is controlled. Green houses can be built of plain glass or of fiberglass material. The main drawback in the usage of this method is heavy capital cost. Plastic Tunnel
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Cultivation by this method is gaining popularity because of low cost and easy usage. Plastic tunnels are transparent which provides required sunshine to the plants, and the plastic also plays a barrier against the cool air in winter. Structures Various types of structures are available to lengthen the growing season for the crop and improve overall crop health and quality. The following are just a few of the structures available, such as high tunnels, low tunnels, walk-in tunnels, and greenhouses. Structures that are used for winter production must be able to withstand heavy rainfall, snow, and wind. Structures that are used for summer production must have good ventilation. Many structures may not be suitable for year-round production. In the construction of tunnel the major materials involved are mild steel bars and plastic sheets. Plastic sheets are used for roof covering of the tunnel shaped construction, which is built with steel bars. Bamboo lengths can also be used in some proportion with the mild steel bars. Plastic sheet is to be spread in such a manner that it enables the stoppage of cold air from outside. The tunnel construction offers maximum crop yield, better maintenance of the fertility of land, controlled temperature and humidity, protection from wild animals and insects and better water conservation. There are three types of tunnels, known as high, low and walk-in tunnels. Low Tunnel It is cheaper than high tunnel but creates difficulty for soil preparation, spraying and picking. The tunnels are suitable for cucumber sown flat bed, melons, watermelons, bitter gourds, squashes, and snake gourds etc. The crop yield in this type of tunnel is however low compared to high tunnels.
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Curtsey: Mian Shadi Agriculture Farms Mamoonkangan, Faisalabad
Dimensions of High Tunnel Material Specification Pipe material Mild steel, painted with red oxide paint Diameter 6 mm Length 10 ft 0.05 mm thick and 10 ft wide 2.5 ft, half moon shaped 5 ft 190 ft 30 per acre
Steel Tunnel Specification Plastic Height Width Length No. of tunnels
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Support Structure Each tunnel will be 190 feet long, 2.5 feet high and 5 feet wide. The tunnel is built by 6-mm diameter steel bar of 10 feet length, in half moon shape. The steel bars are put at regular intervals of approximately 10 feet. Each tunnel structure will then be covered by 0.05-mm thick and 10 feet wide plastic sheet. Approximately 30 tunnels can be constructed on an acre of land.
Curtsey: Mian Shadi Agriculture Farms Mamoonkangan, Faisalabad
Seed and its Importance For tunnel cultivation, F1 hybrid seed bred for tunnel use is used, because they have the ability to resist multiple diseases. These hybrid seeds cost more than the ordinary seeds. The productivity and quality of the crop is ensured from quality of these seeds. Hybrid seeds have above 90% germination capacity as compared to that of ordinary one. The ordinary seed is produced from the crop itself whereas hybrid seed is produced through a special process. For every crop, new hybrid seed needs to be purchased is sown. The crop yield achieved from hybrid seeds is 3 to 4 times more than to the ordinary seeds and is also less prone to diseases.
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Practical Tips for off-season vegetable farming Any person who is planning to adopt this technology should have some practical knowledge about farming. Land that is being utilized for off-season vegetable farming should be tested which will help in determining the quality of land for agriculture purposes. Farmer should ensure that the plant they are planning to grow must have the ability to selfpollinate under the plastic sheet. Selection of the seed is most important factor because this determines the productivity of the crop. Vegetables, which are in demand, should be cultivated; this will help in earning higher profit margins. Timing of cultivation of vegetables has to be done accurately. The farmer should have knowledge about the benefit that the early crop will offer and should gather data about the prices of these early crops. LAND UTILIZATION Total Land utilization per Vegetable Vegetables Tomato ( Determinate) Cucumber (Parth.) Capsicum (Acres) 2.5 2.5 2.5
A Soil Preparation and Sowing Laser leveling or with any precise method soil should be properly leveled Deep ploughing and harrowing.
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Apply well decomposed FYM 10 ton per acre or green manuring is recommended at least 60 days before sowing. Apply basal dose chemical fertilizer one month before sowing followed by irrigation. Prepare soil, complete beds & mulching one week before sowing. Make holes 2 days before seeding. Irrigation field after seeding in such a way that moisture should reach the seed place. Next day light irrigation should be repeated to assure the proper moistures at seed place. Material Availability Tunnel material i.e. mild steel bar, Plastic Sheet, Iron Wire, Bamboo, is available locally from different suppliers. Mian Shadi Agricultural Material Company, Syngenta Pakistan Ltd and haji sons are the major suppliers of hybrid seeds. Fertilizers of all kinds are available locally. Pesticides of different natures are also available locally. Water is available from canal or can be used from peter engine.
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Process Flow Chart
Production Flow of off-season vegetables The production flow varies slightly for different vegetables. The following production flow is based on the production of tomatoes: i. Sowing of seeds in a separate plot of land for nursery. ii. Preparation of seed beds in the field for cultivation of vegetables. iii. Using fertilizer in the soil to maintain its fertility. iv. Transplantation of nursery in the soil or sowing of seeds directly in the soil. v. Maintaining level of moisture in the soil. vi. Protection from the pests, diseases and other wild growths by using pesticides/sprays of chemicals, and trimming. vii. Using fertilizer of different varieties for the smooth growth of plantation. viii. Picking/harvesting at various times as per nature/requirement of the plantation. ix. Grading of crop on the basis of quality and other standards. x. Application of post harvesting technology for picking/plucking, packing and storing the vegetables in order to fetch the maximum price. xi. Transportation to the sale points in local or export markets. PLANT & MACHINERY FOR OFF-SEASON FARMING Following plant and machinery is required for an off-season vegetable farm of 6 Acres: Tools, Equipment and Vehicles
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Description Rotavator Ridger Soil Leveler/ Scraper Spray Machines Peter Engine Total cost of tools & equipment cost Tractor & Cultivator Total cost of vehicle Total cost of tools, equipment & vehicle
Number 1 1 1 1 1
Cost per Unit (in Rs) 30,000 12,000 12,000 50,000 20,000
Total Cost (in Rs) 30,000 12,000 12,000 50,000 20,000 124,000
350,000 350,000 474,000
HUMAN RESOURCE REQUIREMENT Number of Staff Required Description Farm Manager Labor Guard Number 1 8 1 Monthly Salary per person (Rs.) 6,000 46,00 5500 Annual Salary (Rs) 72,000 441,600 66,000
Apart from the above mentioned staff requirement part time workers for four month will be required during the picking season. Following table shows the part time staff requirement: Description Labor Number 120 Monthly Salary per person (Rs.) 4600 Annual Salary (Rs) 552,000
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INFRASTRUCTURE REQUIREMENT Total Land and Building Covered Area Description Agriculture Land (Acre) Area 7.5
Construction Cost for low tunnel per Acer Description Mild Steel, Red Oxide painted (Kg/ Acer) Plastic String (Kg/ Acre) Paint, Labor (Acer) Total Cost in Rs. per Acer Plastic Cost Kg/ Acer) Plastic Mulch Plastic Cost Kg/ Acer) Total Cost Per Acer 135 40 140 150 No. of Units 600 Price per Unit 40 Total Cost in Rs. 24,000
18,900 6000 24,900
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For vegetable juice
Vegetable juice production will be by traditional method. It is because of freshness to be maintained. The juice will be produced in juicing machine used in home for juicing. The juice will be flavored and recipes will be different by the combination of different other items. Following additional items could be used in juicing; • • • • • • • Potatoes Grapes Black pepper Sugar Orange Lemon And many more used in juice recipes
HUMAN RESOURCE REQUIREMENT Number of Staff Required Description Chef Helpers Waiters Total Number 1 2 5 Monthly Salary per person (Rs.) 15000 14000 6000 Annual Salary (Rs) 180,000 168,000 360,000 708,000
Tools, Equipment and Vehicles Description Crockery Juicing Machine Computer Cost per Unit (in Rs) 20,000 30,000 20,000
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Tables and Chairs Counter Interior decoration Advertisement Utilities expenses Total cost
30,000 15,000 200,000 300,000 25,000 640,000
Assumptions Average Seed Requireme nt in unit/ Acre 15000 15000 15000
Crop Assumption s Tomato Capsicum Cucumber Sale Price Growth Rate
Cost per Seed in Rs. 1.9 1.5 1.6
Av. Seed Price/ Acre 22500 22,500. 24,000.
Crop Yield per Acre in Kgs 25,000. 12,000. 35,000.
Sale Price of Crop per Kg 30. 25. 13. 5.%
Economy related Assumptions Electricity Growth Rate Water price growth rate Wage Growth Rate Cash Flow Assumptions Accounts Payable cycle (in days) Equipment & Spare Part Inventory (in months)
10.% 10.% 5.% 15 1
Expenses Assumptions Crop Wastage Raw Material price growth rate
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Administrative Overhead (%of Total Revenue) Water cost per Irrigation per Acre (Rs.) Irrigation (No. of Months) No. of times land irrigated (per month) Fixed Electricity per Month Transport Cost per Kg (in Rs) Packing Cost per Kg (Rs) Maintenance Cost of Tunnel Structure Machine Maintenance (machine/month) Machine Maintenance Growth Rate Pesticide Requirement per Acre per Year (Rs) Fertilizer Cost per Acre per Year (Rs.)
1.% 200 5 2 3500 2.5 1.5 2500 2500 5.% 15000 15000
Farmyard Manure Cost Farmyard Manure Tomatoes Capsicum Cucumber Financial Assumptions Project Life (years) farm House
Per Acre Cost 2889 2315 2500 10
Interest Rate Loan (on farm Land) Debt Tenure (Years) Payments in a Year
17% 1 2 installments
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The location for our both business units is: Address Juice Shop: Shop # 05, Adjacent to National Saving Centre, G-9 Markaz Islamabad Address Farm House: Moza Bango, Rawalpindi Road, Near New Islamabad Air Port, Fateh Jang, Islamabad
Land near New Air Port, Islamabad for farming
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Map View of G-9 Shop
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The place which we have caters our all requirements regarding our budget. The customer focus will be there. Fateh jang is the place where trade has very broader prospects regarding future. Air port will value our land and distribution of our products will be very easy. We have 7.5 acres in Fateh Jang near new air port for forming and we have a shop of 13x16 feet shop for juicing. Initially we are starting our business from this place later on we will expand it further. In G-9 we have enough space for parking. As there is currently no building in front of our selected shop. We will run our juice shop from 7 A.M to 11 P.M. The vegetables for juice will be fresh of our own farm and rest will be bought from market if they will be required. In farm house we will be selling our vegetables on daily basis in terms of net cash system. Utilities Required Electricity Diesel (for tube well operations) Water Telephone/Fax
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Trademarks, copyrights, or patents We will register the company as partnership after the starting of business on the name of GREEN PLATE. It will include both the Farm House and Juicing shop.
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Management and Organization
Our juice shop will be operated by MR.RANA MUHAMMAD SHEHZAD and the employee who will be serving as chef. He will manage the juicing section and MR. RANA SHEHZAD will look after him. The Farm House will be managed by MR. MUHAMMAD MUBEEN BAHOO he will care for the vegetable farming. Both partners will keep checks on both units frequently. The hierarchy of peoples will be
Professional and Advisory Support
• • Insurance agent Banker
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Personal Financial Statement
Following is the spreadsheet of startup expenses and capital where contingencies are 20 percent of the total investment before adding contingencies.
Sources of Capital
Owners' Investment (name & % ownership) Muhammad Mubeen Bahoo 50% owner Rana Muhammad Shehzad 50% owner
Bank Loans ZTBL (loan has been taken on 25% of total expenses)
(Loan is agricultural loan at 17% to be paid in two installments according to crops)
5,25,0 Total Bank Loans
Reserve for Contingencies Debt/equity ratio Debt Equity 25% 75%
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Startup Expenses and Capitalization
Buildings / Real Estate Construction cost of low tunnel Remodeling Other Total Buildings and R / E Rs. 51400 Rs. 198750 Rs. 250150
Capital Equipment List Rotavator Ridger Soil Leveler/ Scraper Spray Machines Peter Engine
30,000 12,000 12,000 50,000 20,000
Tractor & Cultivator
Total cost of tools, equipment & vehicle
Crockery Juicing Machine Computer Tables and Chairs Counter
20,000 30,000 20,000 30,000 15,000
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Interior decoration Advertisement Utilities expenses Total cost Furniture & fixture Pre-operational expenses
200,000 300,000 25,000 640,000 50,000 97300
11,14, Total Capital Equipment
Location Rental (2 months advance security Total Location Expenses
Other Expenses interest (we have divided 2 installments in 12 months) Salaries of farm house Reserve for Contingencies 7 5118
Grand Total of startup expenses
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Security and Collateral for Loan Proposal Collateral for Loans Agricultural land Owned by MR. Muhammad Mubeen Bahoo Moza Bango, Rawalpindi Road, Near New Islamabad Air Port, Fateh Jang, Islamabad Owners Description Residence: Muhammad Mubeen Bahoo, House # 2, Street # 40, Sector G 10/4 Residence: Rana Muhammad Shahzad, H# 425, Street #2, G-9/2, Islamabad. Value 1,80,00, 000
Muhammad Mubeen Bahoo
Rana Muhammad Shahzad
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III. Financial Plan
12-Month Profit and Loss Projection
File is attached (Namely Financial Plan GREEN PLATE in excel format)
Four-Year Profit Projection (Optional)
File is attached (Namely Financial Plan GREEN PLATE in excel format)
Projected Cash Flow
File is attached (Namely Financial Plan GREEN PLATE in excel format)
Opening Day Balance Sheet
File is attached (Namely Financial Plan GREEN PLATE in excel format)
Our Breakeven point comes in between 6th and 7th month. In this month the Total revenue becomes equal to Total Cost Month 1 2 3 4 5 6 7 8 9 10 Total Revenue 150000 157500 165375 173643 182325 191442 201014 211065 221618 232699 Total Cost 196000 196000 196000 196000 196000 200,000 200,000 200,000 200,000 200,000
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http://www.soymilkquick.com/vegetablejuicerecipes.php www.smeda.org Counsultency: Aini Rose International Pvt. Ltd. www.ainirose.com.pk First floor block 20 A G-8 Markaz, Islamabad.
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Refining the Plan
All the aspects regarding business have been thoroughly. Yet here we shall discuss briefly It is a manufacturing business vertically integrated. We will be the producers and other channels will be followed for vegetable distribution but our second unit which is vegetable juice, we will provide our self.