Table of Contents

Executive summary...............................................................................................................................2
Industry description..............................................................................................................................3
Business description.............................................................................................................................3
SWOT analysis of “Hygiene Recovery”.................................................................................................4
Operation segment...............................................................................................................................5
Management segment..........................................................................................................................5
Name and designation of employees...................................................................................................6
Marketing mix of our business.............................................................................................................6
Website.................................................................................................................................................7
Sales strategy........................................................................................................................................7
Set-up cost............................................................................................................................................8
Estimated profit....................................................................................................................................9
Cash flow statement...........................................................................................................................10
Break-Even Analysis............................................................................................................................10
Conclusion...........................................................................................................................................11
References..........................................................................................................................................12

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Executive summary
When we hear the name of any restaurant the first thing that comes to our mind is,
“Are we getting the hygienic food?’’ Food hygiene are the conditions and measures
necessary to ensure the safety of food from production to consumption. Food can become
contaminated at any point during slaughtering or harvesting, processing, storage,
distribution, transportation and preparation. Lack of adequate food hygiene can lead to
foodborne diseases and death of the consumer.

“Cooking oil” is one of the core elements of food processing. But nowadays most of
the restaurants are using same oil over and over. And that is very unhygienic for all of us.
Everybody is busy with launching new restaurants, but how many people are thinking about
customer’s health. Though cooking oil is not the only reason behind unhygienic foods, but
we cannot deny its impact on foods. So, to reduce this problem we took an initiative for
recycling these oil as our business project.

There is always that small amount or sometimes large

amount oil, some of us tend to put it in the drain, just wasting
it, but what some of us don’t know is that when we throw
our oil in the drain it connects to the cannel which connects
to the sea. So in a way we are somewhat causing water
pollution. This is one of the reason for choosing this project.
We want to be of help in every single way that we can. To be
aware of the little thing that we are doing are causing in terrible
things.

“Hygiene Recovery” is an oil purifying business that collects the used cooking oil
from various restaurants for purifying the oil. We will collect these used oil from restaurants
and purifies overnight. In our business we will purifies oil by removing impurities with the
help of an oil purifying machine.

Our business is a partnership business, consist of three friends. Each partners are
contributing two lakhs and the total amount of fund is six lakhs. The ratio of share is 1:1:1.

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We have three workers for operation and distribution sector. This is the opportunity for
those who are seeking part time jobs at night as our working hours is starts from 11pm.

Industry description
The Cooking Oil Recycling industry has grown
over the past five years. While historically viewed as a
waste product, used cooking oil has become a valuable
commodity over the past decade. Companies of the
Cooking Oil Recycling industry are spread across the
world. But for Bangladesh it’s a new concept.

Nobody has taken the step of oil filtration in

Sylhet. So it’s a new project for all of us. We took this
initiative for well-being of the people. Basically we can say there are no competitors so far.

Business description
 Name of our business: Hygiene Recovery
 Location of our business: Subidbazar, Sylhet
 Nature of our business: We are collecting used
cooking oil and purify them by filtration process with
the help of machine. So we can say that it is a part of
recycling.

 Mission statement: When restaurants are frying their

customers’ favorite foods, pieces break off and get
Figure 1 Our Business Logo
lost in the cooking oil. These particles need to be
removed or the quality of your food could suffer. We
will be able to prove that we can purify cooking oil. We will reuse and recycle used
cooking oil.
 Vision statement: Our aim is to extend our business all over the Sylhet division in
next couple of years.
 Service of our business: Providing purified cooking oil to restaurants ensuring the
health of customer.

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  Target customer: As we providing the oil to restaurants. So they are our targeted
customers.
 Number of expected shares: Nowadays the number of restaurants are increasing in
Sylhet city and having no competitors, we can easily capture 60% of target customer.
 Source of raw materials: As the raw materials of our business is used cooking oil, so
our source of raw materials is restaurants as restaurants can provide huge amount of
used cooking oil.
 Source of funding: Funding is the vital element for starting a business. As the
business is in small scale so we are not expecting to get any loan from the bank.
That’s why we have decided to contribute from each of the partner’s family. The
total amount of our capital is Tk.6, 00,000.
 All of the members are contributing equal amount of capital. The name of the
partners are;
1. Mahfuza Akther (approx. 33.33%)
2. Tanvir Ahmed (approx. 33.33%)
3. Nadia Ahmed (approx. 33.33%)

SWOT analysis of “Hygiene Recovery”

Strength
1. We are using advance technology to refine oil.
2. We don’t need highly educated workers.
3. We don’t need too much space for our business.
4. Easy and safe handling.
 Weakness
1. It is a new project for the citizens.
2. Consumption of electricity is relatively high.
 Opportunity
1. Our process is environmentally friendly.
2. We do not have any competitors.

3. There are a lot of restaurants in Sylhet city.

4. Ability to accommodate environmental requirements

Threats

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 1. New entry in this segment.

Operation segment
 Raw materials: Raw materials are the basic resources from which a product is made.
Our business are recycling used cooking oil, so it is our raw materials.
 Production process: To get our desired product we have used “VITO 50 oil filtration
system”. It can purify 50 liters per minute. First of all, we have to remove the “VITO
filter box then we insert the micro filter and insert the “VITO” in hot oil which we
collected from the restaurants. After that we need to press the self-timer and it is

Figure 2: vito filter Figure 3: Micro Particles Figure 4: Before and After
automatically off after 5 minutes. Then the clean micro filtered oil flows from the
front of the “VITO”. It reduces harmful carbon in cooking oil and also the cost. It is
easy to handle and we can wash it with dish washer.
 Storing system: We use big containers for storing.

Management segment
 Organization structure: Our organization consists of three owners. One of the owner
is supervisor and other two owner is handling marketing and financial department.
As our business is not so big so we don’t need too many workers. So, we have three
workers who are assigned for operation and distribution.
We have assigned those workers who are seeking part time jobs at night. We have
trained them how to operate this machine as the machine is very easy to operate.

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Name and designation of employees
Name Designation Salary
Mahfuza Akther Marketing Manager -
Tanvir Ahmed Saimon Supervisor -
Nadia Ahmed Financial Manager -
Worker-1 Operation and Distribution 6000
Worker-2 Operation and Distribution 6000
Worker-3 Driver 8000

Marketing mix of our business

When information about who are the main customers, where they are located and
how they buy their oil is added to information about the quality and price that consumers
expect, the result is known as the marketing mix. This is often describe as the ‘4 Ps’-
Product, Place, Price and Promotion.

Product Place
 Better quality  Fast and friendly service
 Better appearance  Ease of supply
 Well package  Cleaner environment
 Available in required amount

Promotion Price
 Advertising  Lower price
 Personal contacts  Discounts for higher quantities
 Signboards
 Posters and leaflets
 Free samples
 Articles in Local newspapers.

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Website
Our website will be the virtual business card and portfolio for the company, as well as its
online "home." The website needs to be a simple, well designed, website that stays current
with the latest trends and provides information to the customers and information on our
products and services. Our website will be an important means by which we can educate
potential customers about feasibility and the potential uses of our services.

Figure 5: Our Website’s Screenshot

Sales strategy
Hygiene Recovery’s sales strategy is relatively straightforward. Get the word out about our
products and services to potential customers, educate them as to the value added by our
products and services, and the product/service will sell itself.

Our present management team will become the main sales force when operations begin.
Hygiene Recovery sales force will increase as business demand permits. In the first six to
twelve months of operations, our sales team will focus its efforts on small and busy
restaurants. The team will promote the products based on their environmental strengths
and extended duration. Hygiene Recovery will use other channels of selling after the first
year.

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Set-up cost

Particulars Taka Taka

Start-up capital:
Investment from partners 6,00,000

Setting up the business:

Business registration 5,000

Domain name registration 3,000

Website 8,000

License 3,000

Setting up the premises:

Advance rent 30,000

Plant and equipment:

Equipment 20,000

Machine + Import 2,00,000

Vehicles 2,00,000

Telecommunication 5,000

Computer and software 20,000

Starting operation:
Advertising and promotion 50,000

Other expenses 50,000

Total set-up cost: (5,94,000)

Surplus funds 6,000

Borrowings required 0

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9
Estimated profit
Estimated profit for the month October, 2017
Particulars Amount Amount Amount Amount
(Taka) (Taka) (taka) (taka)
Sales * 1,575,000 2,030,000 2,275,000 2,520,00
0
Less: cost of goods sold 4,65,000 6,67,500 7,75,000 8,50,000
Gross profit 1,110,000 1,362,500 1,500,000 1,670,00
0
Expenses:
Electricity bill 2,300 3000 3800 4200
Rent 60,000 70,000 70,000 70,000
Transportation (Van) 25,000 28,000 30,000 33,000
Workers salary 7,56,000 7,70,000 7,70,000 7,80,000
Repair and maintenance of 40,000 79,000 82,000 87,500
machine
Salary of employee 1,80,000 1,90,000 1,90,000 200,000
Miscellaneous expense 5,000 15,000 18,000 19,000
Water bill 7200 7,500 8,500 9,000
Advertisement 1,00,000 1,80,000 200,000 1,60,000
Telecommunications 6000 8000 8,200 9,000
Insurance premium 12000 12000 12,000 12000
Total Expense 1,193,500 1,362,500 1,392,500 1,374,70
0
Net profit/loss (83500) 000 107,500 2,95,300

*Calculation of sales:

Per day we have targeted 25 restaurants and each restaurants is providing 5 liters of oil. So
in a day we are getting 125 liter. So each month we are getting (125 liter×30 days) 3750 liter.
As per liter cost is TK. 30,
therefor our monthly sales is
(3750 liter× TK. 30) TK.1, 12,500.

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Cash flow statement
Cash flow statement for month of November, 2017
Particulars Amount Amount Amount Amount
(TK.) (TK.) (Tk.) (TK.)
Incoming

Cash sales 1,490,000 1,880,000 2,350,000 2,625,000

Collection from account receivable 2,25,000 3,85,000 1,75,000 1,45,000

Other cash receipts 75,000 35,000 40,000 75,000
Total 1,790,000 2,300,000 2,565,000 2,845,000

Outgoing
Fixed cost 2,92,000 437,500 322,500 328,200
Administration 72000 1,27,000 1,43,200 163,000
Operations 220,000 310,500 1,79,300 165,200
Variable cost 1,95,700 2,27,500 230,000 306,500
Administration 70,700 85,500 75,000 41,200
Marketing 10,000 12,000 15,000 25,000
Operations 115,000 1,30,000 1,40,000 240,300
Total 4,87,700 665,000 552,500 634,700

Results

Change during month 1,302,300 1,635,000 2,012,500 2,210,300

Closing cash position 1,302,300 1,635,000 2,012,500 2,210,300

Break-Even Analysis
Average selling price per unit TK. 30

Average cost of each unit TK. 11

Gross profit margin 63%

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Conclusion
Oil in our everyday lives is very helpful. It helps us cook our food. So we conclude that we
could and can purify used cooking oil and that is not impossible to do and very easy. It can
be reused in cooking again and again as long as you know how. If you reuse the used oil
without any purification it can be harmful. This is the time when hygiene recovery is the
solution of that problem. We believe that this partnership business can be idol for many
new entrepreneurs as it is very profitable if you can handle it well. We can proudly say that
our aim is not only making profit but also to protect food lovers from many foodborne
diseases. Our aim is to extend our business all over the Sylhet division in next couple of
years.

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References
http://www.vitooil.com
https://www.consolidatedfoodservice.com/guide/commercial-fryer-oil-filtration-buying-
guide
https://dir.indiamart.com/impcat/oil-filter-machine.html
https://www.alibaba.com/showroom/used-cooking-oil-filter-machine.html
https://prezi.com/tib1gf9yxxsq/purifying-used-cooking-oil/

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