Professional Documents
Culture Documents
2020
1.0 Executive Summary............................................................................... 1
Chart: Highlights...........................................................................................................................1
1.1 Objectives 1
1.2 Mission...........................................................................................................................................2
2.0 Company Summary......................................................................................................................2
2.1 Start-up Summary....................................................................................................................2
Table: Start-up..............................................................................................................................2
3.0 Products............................................................................................................................................2
4.0 Market Analysis Summary.........................................................................................................3
5.0 Strategy and Implementation Summary.............................................................................3
5.1 Marketing Strategy...................................................................................................................4
5.2 Sales Strategy............................................................................................................................4
5.2.1 Sales Forecast....................................................................................................................4
Table: Sales Forecast..............................................................................................................4
6.0 Management Summary...............................................................................................................4
6.1 Personnel Plan............................................................................................................................4
Table: Personnel............................................................................................................................4
7.0 Financial Plan..................................................................................................................................5
7.1 Start-up Funding.......................................................................................................................5
Table: Start-up Funding.............................................................................................................5
7.2 Projected Profit and Loss.......................................................................................................6
Table: Profit and Loss..................................................................................................................6
7.3 Projected Cash Flow.................................................................................................................6
Table: Cash Flow...........................................................................................................................6
7.4 Projected Balance Sheet........................................................................................................7
Table: Balance Sheet...................................................................................................................7
Table: Sales Forecast..........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Profit and Loss..........................................................................................................................3
Table: Cash Flow...................................................................................................................................4
Table: Balance Sheet...........................................................................................................................5
Page 1
GRACE LAND OIL – Palm Platation/Refinery
Chart: Highlights
Highlights
N140,000,000
N120,000,000
N100,000,000
Sales
N80,000,000 Gross Margin
N40,000,000
N20,000,000
N0
Year 1 Year 2 Year 3
1.1 Objectives
1.2 Mission
The company's mission is to become Nigeria's trusted name for supply of edible oils.
The Founder/CEO of Grace Land Oil Palm has extensive experience in the industry, and has
maintained an excellent reputation in this same industry. He will employ competent hands
capable of handling the sales/management and finance/administration areas, respectively.
The following table and chart show the start-up costs for Grace Land Oil Palm. The factory is to
be equipped with top notch equipment & heavy-duty machineries with the capacity to produce
25,000 tons of quality vegetable oils per year.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal/registration N16,200,000
Marketing/promotion N3,600,000
Insurance N35,000,000
Construction N4,000,000,000
Consultancy services N3,600,000
Purchase/installation of CCTV N15,000,000
Website development N650,000
Total Start-up Expenses N4,074,050,000
Start-up Assets
Cash Required N50,000,000
Other Current Assets N155,000,000
Long-term Assets N170,000,000
Total Assets N375,000,000
3.0 Products
RBD Palm Oil - This is a refined palm oil, which contain solid and liquid fractions. This oil is
mainly used for deep-frying of noodles. It is use in commercial food industry as a medium of
frying in bakery and confectionaries products.
RBD Palm Olein - This is purely refined and fractionated palm olein used for cooking. This oil
is used as cooking oil in homes and also for industrial purpose. It does not solidify at room
temperature and the flavor is pleasant.
Page 2
GRACE LAND OIL – Palm Platation/Refinery
Palm Kernel Oil - This is extraction oil from palm kernel seed, which is called crude palm
kernel oil. This oil is used as edible oil, bio fuel, and soap products. It is semi solid at room
temperature.
Soybean Oil - This is oil extracted from soybeans and it is used as edible oil. It also has
industrial uses as resin in chemical products. Soybean oil is clean, has natural taste, and has an
imperceptible odor. These attributes support and enhance the natural flavors of prepared
foods.
Given Nigeria’s large population, which enjoys eating fried foods such as fried meat, fried bean
cake (akara) and fried yam/potato, demand for edible oils is significant. However, consumption
has been dominated historically by unpackaged oils, which are cheaper than packaged and
branded products.
With a huge potential consumer market to capture, manufacturers have intensified their
marketing activities to try and win over locals, with this expected to continue over the forecast
period. 2018 saw average unit price in edible oils fall (following a strong increase in 2016) as
manufacturers sought to drive demand, but also due to them being forced to resort to local
ingredients as depreciation of the local currency made imports more expensive.
Other edible oils remained the dominant category in 2018 and is also expected to be the best
performer over the forecast period as consumers are more familiar with such products. Other
edible oils generally comprise groundnut oil or vegetable oil made from palm olein (the liquid
component of palm oil).
PZ Wilmar’s Devon King’s brand continued to lead the category in 2018. This position can be
largely attributed to strong distribution. Dufil Prima Foods, a strong packaged food producer
which dominates noodles, performed particularly well over 2016-2018, largely due to making
more widely available its affordable “pillow pack” (flexible sachet) variant. This has enabled it to
capture consumers who are used to cheap unpackaged oil.
The manufacturers of the leading and fastest growing brands, such as Power Oil, Mamador and
Devon King’s, are focusing on health-based marketing campaigns to gain share. Brands are
often marketed as “zero cholesterol”, “zero trans-fat” and “vitamin enriched”, for example
containing added vitamins A and E.
The sales and marketing strategy are to move as quickly as possible into the designated market
segments that represent excellent growth potential. It has been shown that these market areas
are presently not being actively pursued by the competition.
The marketing thrust will consist of direct contact to the responsible person within the target
organizations. Ours is a business-to-business marketing strategy. We sell our products to other
companies or organizations that use them as raw material inputs for their products or
operations.
Page 3
GRACE LAND OIL – Palm Platation/Refinery
We will utilize both online and offline marketing strategies. The online strategies will revolve
around our website and how we promote it to create awareness of our services. Social media
adverts of Facebook will be used to target customers that fit the profile of our target customers.
Offline strategies will involve the use of brochures, radio, paid adverts in relevant publications
and Tv.
We have 5 key sales strategies that will help us dominate the sales process. They are as
follows:
• Develop a Consistent Sales Message
• Target the Right Buyer
• Implement Clear, Repeatable Processes.
• Ensure our Reps are Communicating Digitally and Leveraging Technology.
• Equip our Front-Line Managers to Coach.
As the following table shows, the company plans to deliver sales of approximately N100M in
the second year, N150M in the third-year plan implementation. The first year will be used for
construction and set up.
Sales Forecast
Year 1 Year 2 Year 3
Sales
Revenues N0 N100,000,000 N150,000,000
Total Sales N0 N100,000,000 N150,000,000
The initial management team depends on the founders and advisory board. We will take on
consulting help, financial, sales, and marketing to help with the business management and
business development aspects of the business.
As the Personnel Plan shows, the company expects to make gradual investments in personnel
over the next three years.
Table: Personnel
Page 4
GRACE LAND OIL – Palm Platation/Refinery
Personnel Plan
Year 1 Year 2 Year 3
Staffing N0 N5,000,000 N6,500,000
Our financial plan is based on conservative estimates and assumptions. We will need to plan on
initial investment to make the financials work.
The project will be funded by a grant of N3.5 billion from the TELPECON Grant Programme.
Start-up Funding
Start-up Expenses to Fund N4,074,050,000
Start-up Assets to Fund N375,000,000
Total Funding Required N4,449,050,000
Assets
Non-cash Assets from Start-up N325,000,000
Cash Requirements from Start-up N50,000,000
Additional Cash Raised N0
Cash Balance on Starting Date N50,000,000
Total Assets N375,000,000
Liabilities
Current Borrowing N0
Long-term Liabilities N0
Accounts Payable (Outstanding Bills) N0
Other Current Liabilities (interest-free) N0
Total Liabilities N0
Capital
Planned Investment
Owner N0
Telpecon N2,000,000,000
Additional Investment Requirement N2,449,050,000
Total Planned Investment N4,449,050,000
Page 5
GRACE LAND OIL – Palm Platation/Refinery
As the Profit and Loss table shows, the company expects to continue its steady growth in
profitability over the next three years of operations.
Expenses
Payroll N0 N5,000,000 N6,500,000
Marketing/Promotion N0 N2,400,000 N3,000,000
Depreciation N0 N0 N0
Operating expenses N0 N10,000,000 N15,000,000
Payroll Taxes N0 N0 N0
The cash flow projection shows that provisions for ongoing expenses are adequate to meet the
needs of the company as the business generates sufficient cash flow to support operations.
Page 6
GRACE LAND OIL – Palm Platation/Refinery
The balance sheet shows healthy growth of net worth, and strong financial position. The
monthly estimates are included in the appendix.
Current Assets
Cash N50,000,000 N72,327,945 N100,422,055
Other Current Assets N155,000,000 N155,000,000 N155,000,000
Total Current Assets N205,000,000 N227,327,945 N255,422,055
Long-term Assets
Long-term Assets N170,000,000 N170,000,000 N170,000,000
Accumulated Depreciation N0 N0 N0
Total Long-term Assets N170,000,000 N170,000,000 N170,000,000
Total Assets N375,000,000 N397,327,945 N425,422,055
Current Liabilities
Accounts Payable N0 N6,507,945 N9,752,055
Current Borrowing N0 N0 N0
Other Current Liabilities N0 N0 N0
Subtotal Current Liabilities N0 N6,507,945 N9,752,055
Long-term Liabilities N0 N0 N0
Total Liabilities N0 N6,507,945 N9,752,055
Page 7
GRACE LAND OIL – Palm Platation/Refinery
Page 8
GRACE LAND OIL
2020
Table: Sales Forecast
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Revenues N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Total Sales N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cost of sales N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Page 1
GRACE LAND OIL
2020
Table: Personnel
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Staffing N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Total Payroll N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Page 2
GRACE LAND OIL
2020
Table: Profit and Loss
Gross Margin N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Gross Margin % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Expenses
Payroll N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Marketing/Promotion N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Depreciation N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Operating expenses N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Payroll Taxes 15% N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Net Profit N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Net Profit/Sales 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Page 3
GRACE LAND OIL
2020
Table: Cash Flow
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Page 4
GRACE LAND OIL
2020
Dividends N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Subtotal Cash Spent N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Current Assets
Cash N50,000,000 N50,000,000 N50,000,000 N50,000,000 N50,000,000 N50,000,000 N50,000,000 N50,000,000 N50,000,000 N50,000,000 N50,000,000 N50,000,000 N50,000,000
Other Current Assets N155,000,000 N155,000,000 N155,000,000 N155,000,000 N155,000,000 N155,000,000 N155,000,000 N155,000,000 N155,000,000 N155,000,000 N155,000,000 N155,000,000 N155,000,000
Total Current Assets N205,000,000 N205,000,000 N205,000,000 N205,000,000 N205,000,000 N205,000,000 N205,000,000 N205,000,000 N205,000,000 N205,000,000 N205,000,000 N205,000,000 N205,000,000
Long-term Assets
Long-term Assets N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000
Accumulated Depreciation N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Total Long-term Assets N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000 N170,000,000
Total Assets N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Current Borrowing N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Long-term Liabilities N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Page 5
GRACE LAND OIL
2020
Total Liabilities N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Paid-in Capital N4,449,050,000 N4,449,050,000 N4,449,050,000 N4,449,050,000 N4,449,050,000 N4,449,050,000 N4,449,050,000 N4,449,050,000 N4,449,050,000 N4,449,050,000 N4,449,050,000 N4,449,050,000 N4,449,050,000
Retained Earnings (N4,074,050,000) (N4,074,050,000) (N4,074,050,000) (N4,074,050,000) (N4,074,050,000) (N4,074,050,000) (N4,074,050,000) (N4,074,050,000) (N4,074,050,000) (N4,074,050,000) (N4,074,050,000) (N4,074,050,000) (N4,074,050,000)
Earnings N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0 N0
Total Capital N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000
Total Liabilities and Capital N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000
Net Worth N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000 N375,000,000
Page 6