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Yazman Off-Season Vegetable Farm
In the Name of Allah, The Most Beneficent, The Most Merciful. Read: In the Name of your Lord Who Created, Created Man from a Clot. Read: And your Lord is the most Bounteous, Who taught by the pen, The man that which he did not Know
The Islamian Business Executives
Yazman Off-Season Vegetable Farm
“ALLAH DOES NOT LOOK AT YOUR FORMS AND POSSESSIONS BUT HE LOOKS AT YOUR HEART AND DEEDS”
DEDICATED TO ALLAH
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Yazman Off-Season Vegetable Farm
The creator of creative mind.
Department Of Management Sciences has always tried to make its students be familiar with the different techniques in the field of
The Islamian Business Executives
Yazman Off-Season Vegetable Farm
business in order that they can understand & present the concepts of Projects in the light of present-day progress & development. The important of principal work almost exists in every professional field. Practical knowledge makes man a technical person who enables to do every work promptly regarding his profession. The very distributive feature of the degree of Business Administration is that it stresses more on the practical aspects of study. Our teachers have extremely realized this importance & he use all the tact’s to expose us to the real field circumstances. Entrepreneurship has become a common phenomenon now-a-days. We have also endeavored to consolidate in this assignment all the important features of the topic. Every effort has been made to incorporate all the available means of information to make this assignment exhaustive & comprehensive. We tried our best to accomplish our work.
The Islamian Business Executives
M. Hassan Raza. Bahawalpur road Yazman and the other is located in Chak No. Dhnowt 1. Salman Azhar o Lecturer Mr. 50/DB. Tariq Aziz. Tasawar Javed for enlightens our minds with the rich information about the topic. SPECIAL THANKS Ch. We pay abundant thanks to our encouraging teacher & instructor Mr. Business consists of two units.Khalid Aslam.Anayat Ullah.Adeel and M. creator of the creative minds. one in located in Chak No. M. Jahanzaib Khan Mr. 103/DB. Executive Summary The Yazmzan Off-Season Vegetables is a business which deals with the off-season vegetable farming. Naveed Ijaz. Islam o Arian Zarai Farm. near by Yazman. The sponsors of the project are professionally qualified and have valuable and extensive experience of business management in industrial fields namely Shahid Amin. The purpose of this business is to provide high quality off-season The Islamian Business Executives Page 5 .Business Plan Yazman Off-Season Vegetable Farm Special thanks to Almighty Allah. Dhnowt Mr.
capsicum and bitter grounds. Different types of vegetables are grown in tunnel farming like tomato.772. The Islamian Business Executives Page 6 . For further promotion free sampling may be used. 759287. Our business may be fail due to different reasons. FM. in which temperature and moisture is controlled for specific growth of vegetables. with the induction of an artificial technique like tunnel technology. Our business plan’s estimated life is five years. Mostly labor should use on daily wages because in sowing and picking season more labor is required. Vegetables can be cultivated in off-season. All partners made equal investment. tomatoes. net and plastic cover are used in tunnel technology as an infrastructure requirement. For delivery we use direct and indirect channels. Our major market is local while in local we focus in Bahawalpur and Rahim Yar Khan. Musharakah agreement is made among the partners. All partners have agriculture background. For promotion activities advertisement tool is used. The estimated cost of our project is Rs. The estimated profits for first three years are Rs. Hybrid seeds should be used which are also available locally. field preparation. cucumber. Our business plan consists on 6 acres and land should get on lease. All inputs are available locally. etc. so we manage our bunnies effectively.Business Plan Yazman Off-Season Vegetable Farm vegetables at reasonable prices. Local news papers. GI pipes. 1213384 and 1929812 respectively. walk in tunnel and high tunnel. pepper. but we focus only on cucumber. we must manage it effectively to avoid its failure.507. wire. Our total based is equity based. For operations we require 2 additional supervisors and 4 workers. We also develop a webpage for our business which will help us in distribution and promotion activities as well. billboards. etc. We conduct market research because it is necessary to identify customer and their needs and wants. plantation etc. Tunnel technology includes low tunnel. All terms of profit and loss distribution are clearly mentioned in the Musharakah agreement. Mostly off-season vegetables are grown in winter season. are used for advertisement. 3. so. egg plant. Off-season vegetables pass through in different steps like nursery.
In addition. Vegetables are used in raw form as salad or cooked food according to the taste. Introduction 2.1. which provide a balanced diet and keep human being healthy. high population growth rate has also given rise to high demand in basic nutritional vegetables. The Islamian Business Executives Page 7 .Business Plan Yazman Off-Season Vegetable Farm 2. With increased health consciousness in the general public and changing nutritional patterns. salts and proteins. carbohydrates. Importance of Vegetables Vegetables are major source of vitamins. vegetables are now becoming an essential part of common household’s daily food.
changing food patterns and availability of packaged vegetables.7% towards National GDP. Products will follow proper distribution channels to reach to their actual consumers. high population growth rate. In natural season local vegetables flood the markets significantly bringing down the prices. In the absence of storage Infrastructure and vegetable processing industry in the country. which are in high demand in the nationals and international market. such as. The geological location of the country is ideally suited for a large variety The Islamian Business Executives Page 8 . 2. Project Brief The importance of vegetables cannot be denied due to their nutritional value. cucumber. Bitter Gourds and Capsicum/ Sweet pepper could be cultivated using walk-in tunnel technology on 6 Acres. The target customer’s for off-season vegetable are hotels and restaurants and general people. This results in highly unstable vegetable supply market wherein the market is saturated with seasonal vegetables irrespective of demand existence on one hand and very high priced vegetables in off-season on the other. The facility of growing off-season vegetables also allows for growing non-conventional varieties and vegetables. Increased health awareness. There is a huge demand for fresh vegetables in the local as well as international markets. Off-season vegetables. Why we Select tunnel Farming Agriculture sector is the backbone of Pakistan’s economy. Lack of developed vegetable processing and storage facility robs our farmers from their due profit margins. The sector employs 44 % of the work force and contributes 24.3. Allah has blessed our country with fertile land and suitable environment for growing variety of vegetables. off-season vegetables farming is the only feasible option that can add value to the farmer produce. our farmers have yet not been able to exploit this opportunity and still follow conventional sowing and picking patterns. has therefore generated a year round high demand for vegetables in the country in general and in major city centers in particular. The proposed project is designed as a small size off-season vegetable farming unit.2. However. tomatoes.Business Plan Yazman Off-Season Vegetable Farm 2.
1.Business Plan Yazman Off-Season Vegetable Farm of agricultural crops.2. Musharakah agreements contains following terms The Islamian Business Executives Page 9 . General Company Description 3. This needs to be signed by all the partners and subsequent copies held by each partner. which are used directly for food as well as a raw material for processing industry. obligations of all partners are documented in the shape of a “Musharakah agreement”.3. expanding our business to other cities of the country. Objectives Our mission is to become the high quality supplier of off season vegetables by earning a reasonable profit. The mutual rights and duties. All the partners belong to countryside and have agriculture experience. Vegetables grown in Pakistan are distinctive in taste. fragrance and are almost natural as very low quantity of chemicals is used in their cultivation. 3. Musharakah Business We are starting business on small scale . On other hand our own family background is agricultural. 3.We will start our business in the form of Partnership under the Islamic mode of finance named as”MUSHARAKAH” Musharakah Agreement: The basic document which must be prepared to start partnership is the Musharakah agreement. Vision Statement Our vision statement is as follows: “To provide quality off-season vegetable to the consumers at affordable price” 3. We aim to make long term relations with our customers by proving best quality vegetables grown by using unconventional methods. The Musharakah Agreement is very much important because Allah Subhana-o-Tallah ordered Muslims to write down dealings in order to overcome disputes. We are also looking ahead to build cold storages to support our business.
Initially we are going to start our business in Yazman. Production Sites: We will start production initially at two sites in Yazman .584629 M. one is located in chak no 103 D. 50 D.B and other is Chak No.584629 Tariq Aziz Rs.584629 M.Khalid Aslam Rs.Anayat Ullah Rs.B 4. Our business is about farming and its selling which we produce. but in future we will expand it to other areas of southern Punjab.20/DNB Tehsil Yazman Bahawalpur Hassan Raza MBA (Finance) Page 10 The Islamian Business Executives . Tariq Aziz MBA (Finance) Chak No. 2. 7.B Tehsil Yazman Bahawalpur. Shahid Amin MBA (Finance) Chak No. Adeel MBA (Finance) Ward No. 02 Mohalla Ismail Abad Yazman Bahawalpur. We are contributing to our business by ourselves. Detail is as in the table Shahid Amin Rs. Location of head office : our head office will be located in Ward No. 5. But if partner will be unable to further invest we will make an agreement with Meezan Bank under Musharakah.Adeel Rs. If further capital will be need then all partners will further invest.584629 6.584629 Hassan Raza Rs.584629 M. 02 Mohalla Ismail Abad Yazman 3. The name of Musharakah Agreement business will be Yazman Off-season Vegetable Farm. The Amount of capital contributed by each partner equally.Business Plan Yazman Off-Season Vegetable Farm 1.103/D. The names and addresses of each partner. M.
13. 8. 149/A Model town B Bahawalpur.Business Plan Yazman Off-Season Vegetable Farm Chak No.Khalid . M. 92/1-L Tahsil Khanpur Distt. In the case of insolvency the valuation and treatment of goodwill will be according to the Musharakah Rules.Adeel and Tariq Aziz will invest capital in start .Anayatullah Khan MBA (Finance) Islami Colony Bahawalpur. Profit Sharing ratio will be Shahid Amin: M.Other two will provide capital as and when needed. 12. Although all the partners are working Partner but Shahid Amin and Hassan Raza due to the difference of work will get more profit.Adeel : Tariq Aziz : Hassan Raza : M. 14. Anayat : M. Provisions regarding the accounting system and the fiscal year to be used according to the Musharakah Rules The Islamian Business Executives Page 11 . All the loss will be shared by all partners according to their capital investment. Rahim Yar Khan M. No one will invest capital other than liquid assets. All capital will be in liquid form.Khalid 20 : 15 : 15 : 20 : 15 : 15 10. 15.Khalid Aslam MBA (Marketing) House No. Mixing of capital is not required .Shahid Amin. 11.M. 9. M. The duration of Musharakah is not fixed because fixation of tenure for Musharakah is prohibited in Shari’ah.
22. We check out the strengths.1. 20. 4. death and admission of a new partner but will be according Musharakah rules. 17. Document will be signed and kept by all the partners to prevent any future misunderstanding and ill will. 19. If any partner wants to leave Musharakah. weaknesses. Everything will be decided with mutual consent of all partners in all these cases of retirement. Roles should be strictly followed by all the partners so there will be no dispute if the dispute goes long an arbitrator (Preferably an Alam-e-Din) can be appointed with the mutual consent of all disputing parties. The keeping of proper books of accounts and periodical preparation of accounts will be done according to the accounting Laws. other partners have power to expel him from the firm but with mutual consent. opportunities and threats.Business Plan Yazman Off-Season Vegetable Farm 16. 4. 21. He will have a right to sell his share to other partners. SWOT Analysis SWOT analysis is very important tool to evaluate the feasibility of project. 18. Strengths Low cost Our own agricultural background High quality vegetable due to high quality seeds Totally equity based Fertile land canal irrigated land Page 12 The Islamian Business Executives . In the case of breach of duty by one partner. At the time of liquidation all assets will be sold and amount will be distributed among the partners equally.
Off-season cultivation of high value vegetables will fetch better price and provide continuous supply to the processing industries. Higher prices can be obtained by producing the right crops. Opportunities Expanding nationwide Hybrid seeds that provide higher yield can lead to lower unit cost. 4. Weaknesses Low market share in the beginning Lack of proper skills for off-season vegetable cultivation 4. They may also depend on negotiating skills and targeting high price buyers.3. Threats Extremely bad weather conditions Pests/insects attack Floods / Rainstorms Change in government regulations High Competition Low output prices due to more supply Higher increase in input prices Absence of proper crop insurance. Lack of irrigation water The Islamian Business Executives Page 13 .2.4. at the right times and of better quality.Business Plan Yazman Off-Season Vegetable Farm Well-educated management 4.
36 (2. 5. Percentage Change in Prices The main commodities in food and beverages which showed an increase/decrease in their prices during May 2010 over April. tomato. almost all types and varieties of known vegetables are grown in Pakistan.Business Plan Yazman Off-Season Vegetable Farm 5.64) 3.1. pickles & vinegar Vegetables 22.78 (1. which are in high demand in the national and international market.50) 0. Industry Structure The facility of growing off-season vegetables also allows for growing nonconventional varieties and vegetables. As the landholding power of farmers is decreasing. in which temperature and moisture is controlled for specific growth of vegetables.95 (20.92 (4. May.34) Meat Chicken farm Honey Gram whole Milk powder Wheat Dry fruits wheat flour Commodities Increase/Decrease % 2.53) 6.77) Government of Pakistan Statistics division.34 (2. 2010 are as under: Commodities Increase/Decrease % Potatoes Onions Milk powder Tomatoes Milk fresh Cooking oil Jam. they need to increase the productivity of their available land. 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.82 (2. off-season vegetable farming is a way through which they can attain higher profit margins from the crop. Vegetables can be cultivated in off-season.66) 2. with the induction of an artificial technique like tunnel technology.62 (4.07) 3. 2010) The Islamian Business Executives Page 14 .34 (7. Federal bureau of statistics (Monthly Review on Price Indices.32) 3.
These vegetables are supplied to different markets by using means of transportation. Vegetables which can be sown in Tunnel Farming Growing under plastic is more competitive in today’s vegetable market.Business Plan Yazman Off-Season Vegetable Farm 5. Following crops are high value Vegetables. nearer to markets to deal with heavy shipping cost and to reduce post-harvest suffers.3. Natural Method The off-season vegetables are grown in the areas where the environmental conditions are suitable for both normal as well as for off-seasons vegetables. Methods of off-season Vegetables There are number of methods to cultivate vegetables in off-seasons. The Islamian Business Executives Page 15 . These disadvantages lead to the acceptance of non-natural techniques of farming in off-season. · Tomato · Pepper · Cucumber · Bitter Gourds · Squashes · Eggplant · Water melon · Brinjal 5. it gives superior yields and early spring production.3.1. Some are explained as under: 5. Winter vegetables are sown in summer on hilly/semi hilly areas where climatic conditions are positive for a particular vegetable. Like wise summer vegetables are grown in winter season in the valleys. The transportation of crop over long distance markets causes post-harvest losses.2.
Green houses can be built of pure glass or of fiberglass substance.3. squashes. airing and irrigation etc.3. The main shortcoming in the usage of this technique is intense capital cost.1. The vegetables under this technique are grown typically in the winter period. as the plant does not receive required sunshine and desired moisture. Artificial Methods Vegetables can be grown in off-season through non-natural methods.Business Plan Yazman Off-Season Vegetable Farm 5.3. The yield in this type of tunnel is however low compared to high tunnels.3. and the plastic also plays a hurdle against the cool air in winter.3. 5. Plastic tunnels are transparent which provides required sunlight to the plants. moisture. Here the temperature.3. Building of Green Houses Through building green houses.1. the sunlight amount is controlled. is controlled. Low Tunnel It is cheaper than high tunnel but creates complexity for soil preparation.2. The nursery of these vegetables is planted in October/November and a wall of Sarkanda is affixed in the direction of North South. 5.3.2. and bottle gourd. cucumber. chili.2. Types of plastic tunnels are as under. Plastic Tunnel Farming by this technique is gaining fame because of small cost and trouble-free practice. Growing Beneath the Sarkanda This is a previous technique and is typically adopted close to the huge cities. The tunnels are appropriate for cucumber sown flat bed. 5. carbon dioxide. The Islamian Business Executives Page 16 . This method of farming is not favorable because the growth of the plant tends to be slow. spraying and picking. melons. watermelons. The major vegetables grown under this method are tomato. the details of these methods are given below: 5. bitter gourds.3. and snake gourds etc. which protect plant from cold winds and haze.3.
5. Details of walk-in tunnels are as under.Business Plan Yazman Off-Season Vegetable Farm 5. zinc galvanized Diameter 20 mm Thickness Thickness 1.2.2. Sides 2. High Tunnel High tunnel facilitates trouble-free entrance for soil preparation.3. Table 1 Specifications of walk-in Tunnel Pipe material Mild steel.5 ft 12 ft 190 ft 14 per acre Tunnel Specification Width Lengths No. The tunnel is appropriate for growing tomatoes.3.06 mm thick and 20 ft wide Center 6 ft. The tunnel is appropriate for growing tomatoes. cucumbers and sweet peppers Selected tunnel method We have selected walk-in tunnel. The crop yield is maximum in this kind of tunnel.3.3. round in shape Diameter 12 mm Length 2 ft Plastic Height 0. Walk-in Tunnel Walk-in tunnels are lower than the high tunnels but they are gaining attractiveness as they provide high yield compared to low tunnels. cucumbers.3. picking and spraying due to its width and height.2.6 mm Length 20 ft Material Specification Iron Rod Mild steel. of tunnels The Islamian Business Executives Page 17 . sweet pepper and hot pepper.
is available in local market from different suppliers. Major suppliers of hybrid seeds are. Fertilizers are very important for any crop. net. So there is no problem of availability of such materials. Seeds (Hybrid and Non-hybrid) both are used for off-season vegetable farming. • • • • Mian Islam Arian Dhanowt Tehsil Kehror Paka Distt. Syngenta Pakistan Ltd Haji sons. 6. Land Required Total Land utilization per Vegetable Vegetables Tomato Cucumber Capsicum Bitter Gourds(on sides of tunnels) Acers 2 2 2 In all 06 Acers 6.2.e. pipes. Plastic Sheet. Material Availability Tunnel material i. We will get seeds from Mian Islam Arain.Business Plan Yazman Off-Season Vegetable Farm 6. Fertilizers of all kinds are available locally. Lodhran Mian Shadi Agricultural Material Company. Iron Wire. Operating Plan Operating plan of our project is as under.1. Pesticides of different natures are The Islamian Business Executives Page 18 .
Business Plan Yazman Off-Season Vegetable Farm also available locally. 6. Water is available from canal or in case of shortage we can get water with the help of tube well.3. Production Flow Process Production Flow of off-season vegetables: The Islamian Business Executives Page 19 .
3. 5. Moisture conditioning: After the transplantation or seed sowing then level of moisture maintained in the soil.Business Plan Yazman Off-Season Vegetable Farm The production flow of off-season vegetables is a little different for different vegetables. Plant protection: The Islamian Business Executives Page 20 . which involve following steps: 1. Sometimes the wastage of animals is also used to maintain or to increase fertility. So land is properly prepared for cultivation of off-season vegetables. These nursery or sapling is used for further production. For proper preparation of land the fertility of land increased. 6. Nursery: It is very first step in tunnel forming. If land is not properly prepare then the vegetables failure chances are more or increase. For the cultivation of vegetables fertilizers are also used to maintain the land fertility. Fatherly we gave water after a specific interval for moisture stability. Nursery transplantation: When land is properly prepared and fertilized then next step is the transplantation of nursery in the land or seeds are directly sowed in the prepared land. So after the land preparation fertilizers are used for fertility. 2. 4. Usually we use plastic sheet to maintain temperature and moisture. in this step seeds are sowing in a separate plot. Soil fertilizing: Now-a-days fertilizers play a major role in agriculture sector. But the main procedure remains same. Field bed preparation : Land preparation is very important step in tunnel farming. Nursery must be transplanted in a proper sequence and proper equal distance.
truck. 11. Shipment/dispatch: Shipment or dispatch of vegetables is the final step in production flow. 8. Our required market is local so we use tractor. At this stage vegetables shifted to the required market through different means of transportation. delivery van. Post harvesting aspects: The main objective of every entrepreneur is to earn maximum profit. 10. Grading: After the harvesting the next step is the grading of vegetables. after harvesting and grading vegetables are properly packed and stored in order to get the maximum price. etc. Vegetables are grading or classifying into different varieties according to the quality like high.Business Plan Yazman Off-Season Vegetable Farm With the passage of time plant protection is different at different levels. The Islamian Business Executives Page 21 . Different types of fertilizers are used for the smooth growth of plantation. Vegetables are harvested/picked at various times as per the nature or the requirement of plantation. for the shipment of our vegetables. Harvesting: Harvesting of vegetables is very important step in off-season vegetables. 9. 7. So. medium and low quality vegetables. Top dress fertilizing: For the growth of every vegetable or any other crop fertilizers are necessary. We use pesticides or different chemicals from the protection of pests or other diseases that effect plants negatively.
4.5. Vegetable Other Infrastructure Requirement Per Acre Total Requirement Sr. Description Requirement 1 G-I Pipe Length 20 feet 2 Wire-14 Gauge 3 Building and other Civil Work 280 220 1680 1320 6. 1 2 3 4 5 6 7 8 9 Plant and Machinery for Off-season DESCRIPTION Tractor Rotavator Ridger Soil-leveler Spray Machine Tube Well Computer Peter-Engine Vehicle No.6. Utilities Required • • • Electricity Diesel (for tube well operations) Water Page 22 The Islamian Business Executives . 6.NO. of Units 1 1 1 1 2 2 1 2 1 Note: details of cost are given in financial portion. S. No.Business Plan Yazman Off-Season Vegetable Farm 6.
Expected Production and Land Utilization Vegetables Land Utilized 2 Production Quantity Per Acre.Business Plan Yazman Off-Season Vegetable Farm • • • Telephone Fax Computer and internet facility 6. 40kg 1500 Total Production Quantity. Sowing and Picking period of Off-Season Vegetables Sowing period October (Nursery) November (transplantation) Picking period February-May Vegetables Tomato Cucumber End of October to end of December Mid January to May Capsicum Mid of September to 1st week of October End of October to 1st week of November (Transplantation) End of January to September Bitter Gourds January to 1st week of End of March to august February 6.8. 40kg 2800 Sale Price Per 40kg 480 Page 23 Cucumber The Islamian Business Executives .7.
7. Manager Accounts The Islamian Business Executives Page 24 .Business Plan Yazman Off-Season Vegetable Farm Tomatoes Capsicum Bitter Gourds (Extra Vegetable with others) 2 2 6 600 400 80 1200 800 480 600 600 800 7.1. Human Resource Management Plan Our HRM plan is as under. Organizational Structure 7.2. Management General Manager Hassan Raza will act as a general manger and will be responsible for management of business.
nursery transplantation and picking we will hire worker on contract. 7. Manger Marketing M. Manager Personnel Tariq Aziz will be personnel manager and will be responsible for hiring and training of workers.Khalid Aslam will be our marketing manager. So we will hire four permanent workers at Rs. Rs. 7. He will be responsible for all marketing activities of the business. At the time of tunnel construction.Business Plan Yazman Off-Season Vegetable Farm M.9000/month/supervisor salary will be given. same case is the time of transplantation and picking. Demand of labor varies with time. Manger production Shahid Amin will be production manager. So due to this varying demand it is not possible /feasible to hire permanent labor.7000/month/worker. The Islamian Business Executives Page 25 . He will also responsible to forecast and mange workforce according to demand. At the time of construction of tunnel we have large number of labor. He will be responsible for smooth production of vegetables. Marketing Plan Marketing plan is very important part of business plan.Adeel will act as accounts manager and will be responsible for maintaining books of accounts of our business.4. Staff Requirement Two supervisors will be appointed to check and control the production.3. 8. Before making marketing plan market research is conducted. Labor Requirement Labor requirement are not consistent in our product due to the nature of project.
Target 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.1. mutton. Customers We are directly targeting hotels and restaurants.1. 8. Age o Peoples of all age group Gender The Islamian Business Executives Page 26 . our market size comprises of Bahawalpur and Rahim Yar Khan.1. competitors. There are number of hotels and restaurants in Bahawalpur. Percent share of the market The percent of market capture incase of off-season vegetable will be more than 10% of Bahawalpur and Rahim Yar Khan because there are already competitors in our region in off-season vegetable farming. But after some time it will increase to other cities of the southern Punjab.1. We try to find target market.Business Plan Yazman Off-Season Vegetable Farm 8.3. Current demand in target market There is a great demand for off-season vegetable and existing vegetables farm are hardly fulfill demand of target population. 8. The demand of vegetables is increasing due to increase in population and increase in the prices of chicken. and households.1.1. 8. Market Research Market research is a very important aspect of any new business. market growth and market share (expected) with the help of market research. The entire households are our target market and we will also supply vegetables to the hotels and restaurants of our target area. beaf and other food items. 8.4.2.
Competitors research Our main Competitors are: • • • • Drashak Agriculture farm. Education o All peoples either they are literate or illiterate 8.1.Dhanwot Tehsil Kehror paka Lodrahan Jahanzaib khan Some other small growers 8. Price The pricing section of the marketing plan involves determining how you will price your product or service. The Islamian Business Executives Page 27 . House use Income Level o People of all income levels because our vegetables will be available at reasonable price. Main Islam Arian Agriculture farm. the price you charge has to be competitive but still let you to create sensible revenue.1.5.Business Plan Yazman Off-Season Vegetable Farm o Male and Female both Location o Restaurants of all types. Marketing Mix Marketing mix contains following factors (known as 4p’s) 8.2. Jalal Pur Road Lodrahan.2.
Understanding of the distribution channels is crucial in order for the manufacturer to plan and implement an effective distribution strategy. Product We have developed our product to fulfill the demand and desire of people of Bahawalpur. but for every product or service there's a limit to how much the customer is willing to pay. Our product line consists of four vegetables namely. In our business market forces are price setter but we will try to charge price lower than our competitors in order to capture market. We can easily supply vegetables to market. By the adoption of this place the purpose of delivery is accomplished in better way. Your pricing plan needs to take this consumer threshold into consideration. 8. Our study shows that the distribution of our The Islamian Business Executives Page 28 . Place Location for off-season vegetable farming at Bahwalpur road Yazman is in the centre of our target region.2.2. Tomato Cucumber Capsicum Bitter Gourds 8.Business Plan Yazman Off-Season Vegetable Farm The keyword here is "reasonable". The fertility of land will generate a quality vegetable.3. The location is very famous for land forming. Product Line We have developed our product to fulfill the demand and desire of people of Bahawalpur. you can charge any price you want to. The effectiveness of distribution coverage and practice is of paramount importance in achieving the desired off-season vegetable sales. retailers and direct customer.2.
2. 8. While it is the common practice for the individual customers to buy the products from the retail outlets. 8. newspapers. Advertising Advertising can be done by using different medias like the Internet .radio. telephone . magazines. retailers and users. wholesalers. Page 29 The Islamian Business Executives .2. This is done through advertising. For this purpose first of all we need a channel through which we can deliver our message to our target population.4. billboards.4. Commercial buyers such as tourist hotels and other restaurant would normally place orders directly with the producers and wholesalers. Promotion Advertising and Promotion part of the marketing plan describes how you're going to deliver your distinctive Selling offer to your potential clientele.Business Plan Yazman Off-Season Vegetable Farm products is to be done through multiple channels involving.books/directories.1. television .
2.4. retailers or other businesses. Daily Sutluj and Daily Bahawalpur Billboard o We will use billboard on our production site on Bahawalpur road Yazman.2. Local news papers o Sada-e-yazman. We have planned to use following methods for advertisement. cooperative advertising with wholesalers. direct mail. we are gong to do business in a local territory so we will use media that is effective at local level.Business Plan Yazman Off-Season Vegetable Farm bench/bus/subway ads. offering free samples point of purchase displays product demonstrations Page 30 The Islamian Business Executives . Local FM radio o We will advertise our farm by using local FM radio Saraiki Awaz 105 Jewey Pakistan 98 Broachers/hand bills Stickers o Small stickers on vegetables contains name of our farm Labels on packaging of vegetables 8. As for as our business is concerned. Sales Promotion We will also use promotional activities to boost up our sale and to capture market share.
3. www.772 600.Business Plan Yazman Off-Season Vegetable Farm 8.272 30. This will play a major role in the in distribution and advertising as well.yazmanagrifarm.507.000 55.com 9. Sr.2. Financial Plan The total cost of our project is as under.907.000 3.772 Our financial plan is as follows.179.500 25. Description 1 2 3 4 5 6 Cost of Civil Work Estimated Cost of Plant and Machinery Furniture and Fixture Initial Charges for new Electricity Connection Web-site Charges Pre-Operating Expenses Estimated Fixed Cost Add: Net Initial Working Capital Total Estimated Cost Of Project Total Cost Rs. Business Webpage We have planned to make a website of our business.000 3.000 2. 1.000 1.4.615. No. The Islamian Business Executives Page 31 .
Adeel Rs.Khalid Aslam M.584629 10.584629 Rs. 2907772 600000 3507772 2907772 600000 3507772 - Long term Debt Equity Participation Total Capital Required Financing details are as under. Our business also fails if no proper inputs are used The Islamian Business Executives Page 32 . Shahid Amin Tariq Aziz Rs.584629 0 3507772 3507772 - 0 3507772 3507772 Hassan Raza M. Reasons for Failure Our business of tunnel farming will be fail due to following reasons: Natural disaster Shortage of inputs No proper overcome on pests No innovation with that is the requirement of customers Lack of knowledge about agriculture and tunnel farming Delay in decisions or no proper planning and decision making Poor financial and marketing system May be our business fail due to high competition that we could not meet.584629 Rs.Anayat Ullah Rs.584629 Rs.584629 M.Business Plan Yazman Off-Season Vegetable Farm Financial plan Description Total Fixed Cost of the Project Initial permanent working capital Total cost of the project LCY FCY Total Cost Rs.
Business Plan Yazman Off-Season Vegetable Farm How we get overcome on these reasons of failure? We overcome above reasons by using following techniques: We use inventory system to overcome the shortage of inputs Use good quality pesticides Use new technology and bring innovation We use cost leadership and differentiation strategies to gain the competitive edge Attend different agriculture workshops for getting update knowledge about agriculture and tunnel farming Audit must be conducted to make financial system effective The Islamian Business Executives Page 33 .
Page 34 .772 Financial plan Description The Islamian Business Executives LCY FCY Total Cost Rs.000 3. Annexure Yazman Off-Season Vegetable Farm Estimated Cost of the Project Sr.000 55.615.507.000 3. Description 1 2 3 4 5 6 Cost of Civil Work Estimated Cost of Plant and Machinery Furniture and Fixture Initial Charges for new Electricity Connection Web-site Charges Pre-Operating Expenses Estimated Fixed Cost Add: Net Initial Working Capital Total Estimated Cost Of Project Total Cost Rs.907.000 2.272 30.179. No.000 1. 1.Business Plan Yazman Off-Season Vegetable Farm 11.500 25.772 600.
Business Plan Yazman Off-Season Vegetable Farm Total Fixed Cost of the Project Initial permanent working capital Total cost of the project 2907772 600000 3507772 - 2907772 600000 3507772 Long term Debt Equity Participation Total Capital Required 0 3507772 3507772 - 0 3507772 3507772 Six partners should be contributing and all partners contribute on equal basis.584629 Hassan Raza M.584629 Rs.Anayat Ullah Rs. each partner contributes following amount: Shahid Amin Tariq Aziz Rs.Adeel Rs.584629 Rs.584629 Yazman Off-Season Vegetable Farm Estimated Cost of Plant & Machinery The Islamian Business Executives Page 35 . So.584629 Rs.Khalid Aslam M.584629 M.
000 16.272 Yazman Off-Season Vegetable Farm Cost of Civil Work Sr. 500000 85000 23000 18000 8300 150000 15000 43000 500000 Total Cost Rs.000 500. No.NO.000 18.615. 500.000 23.000 86.600 300. 1 2 3 4 5 6 7 8 9 10 11 DESCRIPTION Tractor Rotavator Ridger Soil-leveler Spray Machine Tube Well Computer Peter-Engine Vehicle Other Tools Contingencies 2% TOTAL No.Business Plan Yazman Off-Season Vegetable Farm S. Per Acre Description Total Per Unit Cost RS Total Cost Rs Requirement Requirement 1 G-I Pipe Length 20 feet 2 Wire-14 Guage The Islamian Business Executives 280 220 1680 1320 400 100 672000 132000 Page 36 .000 15.672 1. of Units 1 1 1 1 2 2 1 2 1 Per Unit Cost Rs.000 40.000 85.000 31.
40kg 2800 1200 800 Sale Price Per 40kg 480 600 600 Total Sales 1440000 720000 480000 Vegetables Cucumber Tomatoes Capsicum The Islamian Business Executives Page 37 .Business Plan Yazman Off-Season Vegetable Farm 3 Building and other Civil Work Total Cost Of Civil Work 375000 1179000 Yazman Off-Season Vegetable Farm Estimated Sales Land Utilized 2 2 2 Production Quantity Per Acre. 40kg 1500 600 400 Total Production Quantity.
5 Total Cost of Seeds The Islamian Business Executives 38000 28000 28 3 3.4 1950 3000 133000 67200 54600 9000 263800 Page 38 .Business Plan Yazman Off-Season Vegetable Farm Bitter Gourds (Extra Vegetable with others) 6 Total Sales 80 480 800 384000 3024000 Cost of Raw Material Cost Per Unit Rs.5 2. Per Acre Requirement Total Requirement Seeds Cucumber (Seeds) Tomatoes(Plants) Capsicum (Packets) Bitter Gourds (Packets) 19000 14000 14 0. Total Cost RS.
Tube-well. 75000 12600 83520 6000 235800 The Islamian Business Executives Page 39 .Business Plan Yazman Off-Season Vegetable Farm Fertilizers DAP Potash Urea 4 4 2 Total Cost of Fertilizers Pesticides Rs. 1.000.5% 2 Rotavator.Exp. Peter Engine and 3 Computer @ 20% 4 Furniture & Fixture (@ 20%) 5 Cost of Civil Work@ 20% Total Cost Rs.00 0 126. No Description 1 Tractor and vehicle@ 7.20000 per acre Total Cost of Raw Material 24 24 12 2600 2350 910 62400 56400 10920 129720 120000 513520 Depreciation Schedule of Fixed Asset Sr.00 0 417600 30000 1179000 Dep.Rs . Ridger and soil-leveler @ 10% Spray Machine.
Fuel) Gross Profit Less: Operating Cost Admin Payroll Electricity Depreciation Amortization of Pre-operating Expenses The Islamian Business Executives 2012 3477600 2013 3999240 3024000 513520 399600 397860 119880 1593140 539196 419580 417753 125874 1975197 566155.920 Years Rs.7 132167. Fertilizers and Pesticides) Direct Labor Plastic Cover and Netting Other Overheads (Repair and Maintenance.Business Plan Yazman Off-Season Vegetable Farm Total 412920 Depreciation will be constant over the life of assets.7 2421717 216000 9600 412920 8333 226800 10560 412920 8333 238140 11616 412920 8334 Page 40 .920 2013 412.8 440559 438640. 2012 412.Expense 412.920 Yazman Off-Season Vegetable Farm Estimated Income Statement 2011 Sales Less: Cost of Sales Raw Material (Seeds. Year Wise Depreciation 2011 1 Dep.
Transportation and other cost also increase 10%p.p.) Operating Profit Lease of land Income from Income outlets Net Profit 35000 50000 861287 (102000) 759287 38500 52500 1225584 (112200) 100000 1213384 42350 55125 1653232 (123420) 400000 1929812 Key Assumptions: Overheads assumed 30% of Direct Labor Direct Labor calculated on daily basis and some permanent basis Sales increase 15% p. Initially lease Rs.a.17000 per acre Electricity increase 10% p.a. Raw Material increase 5%p.Business Plan Yazman Off-Season Vegetable Farm Transportation Cost Other Cost (Advertisement etc.a.a The Islamian Business Executives Page 41 .a. Direct labor and admin payroll increase 5% annually Pre-operating Expenses amortized in equal three years Lease of land increase 10% .
274.274.507.225.680 1.584 412.152 Total Sources of Funds APPLICATION OF FUNDS: Investment in Fixed Assets Financial Charges during Construction 2.20 7 1.000 26.20 22.066.000 - 102.082 The Islamian Business Executives Page 42 .200 123. 2011 Rs.772 - - - - Lease on Land Pre-Production Expenses Financial Charges : PAYMENT OF: Taxes Dividends Short term Investment outlets Increase in Current Assets (Other than 25. 861.507.066.920 1.920 2.50 4 2.152 Operating Profits Add: Depreciation Total Funds from Operation Other Sources: Paid-Up Capital 3.420 500.920 1.882. 1.653.Business Plan Yazman Off-Season Vegetable Farm Yazman Off-Season Vegetable Farm Cash Flow Statement End of Construction Year 2010 SOURCES OF FUNDS: Rs.500.20 7 Operating Years 2012 Rs.50 4 2013 Rs 1.28 7 412.772 1.772 3.00 0 112.232 412.638.638.000 151.
907.621.059 500.772 0 253.772 825.402.255 600.000 416.000 1.000 1.012 6.621.333 1.63 1 2.671 3.852 16.666 2.882.507.007 2.772 3.649.334 5.920 2.650 Cash at the Beginning of the Year 1.540 2.021.041.056.267.631 173.000 2.502 Total Application of Funds Cash Surplus/(Deficit) 600.238.772 25.882.621.380.872.667 4.932 8.281 Yazman Off-Season Vegetable Farm Balance Sheet End of Construction 2010 2011 2012 2013 Operating Years ASSETS: CURRENT ASSETS: Cash and Bank Balance Accounts Receivable Other Current Asset Total Current Assets FIXED ASSETS: Investment Fixed Assets at Cost Accumulated Depreciation on Fixed Assets Fixed Assets Net Intangible Assets Total Assets LIABILITIES AND EQUITY: CURRENT LIABILITIES: Total Current Liabilities LONG TERM DEBTS: EQUITY: Paid-Up-capital Retained Earnings 3.880 16.962 25.815.483 2.882.177 3.644.000 2.281 199.200 8.772 3.780.00 0 600.882.772 2.266.003.00 7 634.624 1.20 0 1.624.00 7 600.507.469.041.287 3.760 1.507.840 2.624.772 1.507.772 2.88 0 1.000 600.631 Cash at the end of the year 3.910.007 151.000.000 3.243 The Islamian Business Executives Page 43 .000 3.772 1.507.772 412.624.443 2.Business Plan Yazman Off-Season Vegetable Farm Cash) 2.882.772 759.
380. 513520 399600 119880 397860 412920 9600 8333 102000 216000 85000 2264713 Break-Even Point: Fixed cost / (Sales – Variable Cost) × 100 = Rs.Business Plan Yazman Off-Season Vegetable Farm Total Equity Total Liabilities and Equity 3.507.443 5.255 6.910.910.059 4.3024000) × 100 = 56.267.255 Calculation of Break-Even Point for 1st operating Year: Items Raw Material Direct Labor Overheads Plastic Cover and Netting Depreciation Electricity Amortization of Pre-operating expenses Lease of Land Admin Payroll Transpirations and others Total Variable Cost Fixed Cost Rs.059 5. 981053 / (3024000 .37% Assumptions: Overhead cost assumed 50% fixed and 50% variable The Islamian Business Executives Page 44 .267.443 6. 513520 399600 59940 0 0 9600 0 0 216000 85000 3024000 Rs.507.380. 0 0 59940 397860 412920 0 8333 102000 0 0 981053 Total Cost Rs.772 4.772 3.
824 2.907.920 412.920 412.066.232 Depreciation Rs.066.152 2.066.274.93 114.59 569.772 151.225.040.243) Operating Profit Rs.747) The Islamian Business Executives Page 45 .232 1.772) 733.991.538 554.50 690.Business Plan Yazman Off-Season Vegetable Farm Electricity cost assumed variable Transpiration cost is variable Calculation of Internal Rate of Return (IRR) Years 0 1 2 3 4 5 Capital Outlay Rs.920 412.584 1.772) 710.638.907.152 Net Cash Inflow/(Outflow) Rs. 861.457. (2.653.653. 412.601.152 5.907. (2.920.391.218 331.007 1.262 517.907.772) 1.152 2.680 26.257.00 377.243 (146.615.395 Total IRR NPV-53% Rs.070 2.047 55. (2.066.047.287 1.082 (3.097% NPV-58% Rs.200 22.92 650.920 412. 1.920 Net Cash Return Rs.207 1.504 2.653.764 647.123.232 1. 2.
com. The Islamian Business Executives Page 46 . . Bibliography http://www. .com.nation. 2007.smeda.scribd.Business Plan Yazman Off-Season Vegetable Farm 12. 2010). .php?id=55 [Online].October 2007.thenews.org/info. Monthly Review on Price Indices.pk/pakistan-news-newspaper-daily-englishonline/Regional/Islamabad/10-Feb-2009/Tunnel-farming-can-boost-farmers-income [Online]. 2009. www.Febraury 10. http://www. (May. Federal Bureau of Statistics.October 19. Government of Pakistan Statistics Division. . http://www.com/doc/22398932/Feasibility-Report-of-Tunnel-Farming-inPakistan [Online].pk [Online].2007.
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