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BUSINESS PLAN FOR THE PRODUCTION OF PURE WATER SACHETS AND

POLYTHENE SHOPPING BAGS IN GUINEA CONAKRY

Technical Report · May 2019

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Table of Contents
1.0 Executive Summary ...................................................................... 5
1.1 Business Vision, Mission and Goals .................................................. 6
Business Vision .................................................................................. 6
Our Mission ....................................................................................... 6
Our Product ....................................................................................... 6
2.0 The Business ................................................................................ 8
2.1 Registration details ..................................................................... 8
2.2 Organogram .............................................................................. 9
2.3 Projected Personnel Required ....................................................... 9
3.0 THE MARKET .............................................................................. 10
3.1 Market Research ...................................................................... 10
3.3 The External Business Environment (PESTLE Analysis) .................. 11
4.0 THE CUSTOMERS ........................................................................ 13
4.1 Customer Demographics ........................................................... 13
4.2 Key Customers......................................................................... 14
4.3 Customer Management ............................................................. 14
4.4 Internal Environment Analysis (SWOT) ....................................... 15
4.5 Competitors ............................................................................. 17
4.6 Advertising and Sales ............................................................... 18
4.7 Sales and Distribution Channels ................................................. 19
4.8 Marketing Strategies ................................................................. 20
5.0 ACTION PLAN ............................................................................. 22
5.1 Production Plan ........................................................................ 22
5.2 Daily Operating Plan ................................................................. 22
5.3 Technology/Software ................................................................ 23
6.0 Financial Analysis ........................................................................ 24
6.1 Startup Cost ............................................................................ 24
6.2 Monthly Operating Cost (Month 1) .............................................. 24
6.3 Operating Cost (Annual Breakdown, Year 1) ................................ 24
 6.4 Revenue Projection ................................................................... 25
6.5 Cash Flow Projection ................................................................. 25
6.6 Three Years Cash Flow Projection ............................................... 26
6.7 Profit and Loss Projection (Year 1) .............................................. 26
6.8 Financial Indicators................................................................... 26
7.0 FINANCIAL PLAN ......................................................................... 28
8.0 Exit Strategy .............................................................................. 29
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1.0 Executive Summary
Oxy Polythene Group (OPG) is a packaging solution company that
delivers convenient, effective and cost effective packaging solutions to meet
the growing demand for quality packaging to meet the needs of individuals
and businesses in Guinea and other parts of West Africa. With a market
potentials estimated at over 100,000 metric tons per annum within the
Guinea market, OPG is strategically positioned to create value and generate
sustainable profit over the long run.

To explore the huge market potentials in the Guinea market, OPG

plans to produce at least 54.871 tons of polythene packaging materials for
pure water manufacturers per annum. This will be scaled up intermittently to
include the production of shopping bags and other packaging materials for
small, medium and large scale businesses in the state. Therefore, the sum of
GNF 828,436,299 is earmarked for investment in the startup and operational
requirement of the business. This is estimated to generate annual revenue of
GNF4.4 billion per annum with a 321% Return on Investment (ROI) out of
which 50% of the Gross Profit is distributed as dividends for shareholders.

As part of the financing plan, the Oxy Polythene Group seeks to

mobilize funds for the startup by offering 10 shares for sale at a market
value of GNF 74,559,266.91 per share. This will guarantee a projected
dividend of GNF 177,519,090.12 per share in the first year with an
estimated dividend growth rate of 218% and a Dividend Yield Ratio of 2.38.
The share will be valid for 5 years with an estimated dividend payment of
GNF 887,595,450.59 per share.

Oxy Polythene Group is driven by a team of experts whose experience

in business management and passion for transforming the packaging value
chain drives the business. The management team is led by Sani Emmanuel
Numa who is the Managing Director/Chief Executive of the group with a
team of business development experts, technical consultants and operation
moguls. Together, the team shall deliver on the aim of the business while
fulfilling the obligation of shareholders/investors.

1.1 Business Vision, Mission and Goals

Business Vision
Our vision is to be the largest provider of polythene and associated
packaging solutions in Guinea.

Our Mission
Our mission is to utilize at all times, high technologies, quality packaging
materials and highly skilled employees to produce quality packaging
solutions that meet the needs of different customer segments.

Our Product
The major products of Oxy Polythenes Group which will stand out as a major
brand in the market include the following;

Oxy Sachet Water Solution: the sachet water solution of Oxy meets the
need of sachet water producers in Guinea and other strategic markets in the
West African sub-region. The packaging will be structured to support an
average of 50cl of treated water and customized through our highly efficient
printing machine to including the brand details of the pure water company.
Oxy sachet water packaging material will align with the ISO standard of
packaging and the regulatory standard of the Guinea government.
Oxy Shopping Bag: Oxy packaging bag makes it convenient for customers
to pack their purchase from the open market, stores or supermarket.
Available in custom and generic options, we support businesses in operating
responsibly and making a positive impression in the minds of the customers.

Oxy Advanced Packaging: in the long term, Oxy shall invest in broad
spectrum of packaging, including PET Packaging Solution, Nylon Packaging
and the other options of recyclable and eco-friendly packaging that meets
the needs of businesses within our operational niche.
INFORMATION:

For Business Plans, Feasibility Studies, Business Concept Notes,

Project Conceptualisation, Marketing Plans and other market
research contents

Contact:

Sani Emmanuel Numa

Oliveserah Business and Academic Concepts

Call/Whatsapp: +234-706-818-0074 or Email:

srcnigeria@yahoo.com

2.0 The Business

2.1 Registration details
Business name: Oxy Polythene Group

Trading name(s): Oxy Polythene

Date registered: 2019

Location(s) registered: Guinea

Business structure: Sole Proprietorship

Company number: In progress

Tax Certificate: In progress

Domain Name: www.oxygroup.com

2.2 Organogram

The organogram shall be modified to suit the operational needs of the

business as the operation and scope expands with time (See 2.3 below).

2.3 Projected Personnel Required

Job Title No. Expected Skills necessary Date

Rqd staff required
turnover

Production 1 10 months 1 - 2 year January,

Officers experience in 2020
previous role

Plant Assistant 5 1-5 manual operation January,

months support skills 2020

Marketing and 2 1 year Experience in January,

Sales Officer FMCG 2020
 Auxiliary Staff 5 1 years Experience in January,
(Driver, FMCG sector 2020
Security,
Cleaner, Handy
Man)

3.0 THE MARKET

3.1 Market Research
There is a growing demand for packaging materials in Guinea, driven by the
expansion of the Fast Moving Consumer Goods (FMCG) sector with activities
ranging from production and manufacturing to sales, distribution and
consumption.

From market research conducted for the purpose of establishing the

business, it was observed that over 100 million Sachets of water is
consumed in Guinea per year, estimated at over 100,000 metric tons of
packaging per annum. This is estimated to grow at an average of 5% per
annum, considering the increasing demand for sachet water as alternative to
the poor public sector water supply in Guinea.

On the other hand, there is increasing demand for packaging solutions by

small, medium and large scale manufacturers which constitutes about 80%
of the Guinea Conakry economy. These production and manufacturing
businesses demand both customized and generic packaging solutions to pack
their processed commodities for easy penetration in the market. This further
drives the demand for shopping bags which remains the main form of
packing commodities (branded and unbranded) for the customer after a
purchase.
This huge market which has no barriers to entry provides a good opportunity
for meeting the needs of defined segments within 10.5 million potential
consumer bases in the country.

3.2 Market Target

Within the first year of operation, Oxy Polythene Group plans to establish its
foothold in the fast moving consumer goods sector by providing quality,
effective and cheaper packaging solutions for the growing number of pure
water manufacturers in the country. Starting with Conakry which is one of
the commercial hub of the country, the plan is to expand to other key
locations within the country.

In addition to the foregoing, Oxy shall expand operations to the production

of generic shopping bags to meet the demands of businesses and customers
within for years of operation. This will draw on the lessons, experience and
strategies of the first three years of operation. Subsequently, we shall
expand to the production of customized packaging solutions for business and
corporate clients in the country before scaling the business model in other
strategic markets in West Africa.

3.3 The External Business Environment (PESTLE Analysis)

Political Assessment

The state is relatively peaceful as government has little interference in the

operations of businesses beyond the lines of established regulatory
procedures for doing business. Also, the government drive towards
promoting local enterprise serves as an external motivator for the business.

Environmental Assessment

The overall geology within the region of operation supports easy access to
raw materials and easy transportation of finished goods to the customer. In
addition to this, the climatic conditions will not adversely affect the quality of
the end product.

Social Assessment

Most consumers and businesses in Guinea are becoming more aware of the
dangers of poor packaging including contamination from poor printing and
waste as a result of poor sealing of packaging materials. They are also open
to considering new options that offer them high value at lesser cost.

Technological Assessment

There are limited technological options for packaging available in the Guinea
market at the moment; the implication therefore is that most of
the/majority of the equipment will be imported from other countries to
commence production.

Legal Assessment

It is mandatory for businesses to get registered for corporate integrity, tax

purposes and effective regulation and this are conventions peculiar to the
nature of business we wish to operate.

Economic Assessment

The Guinea economy is evolving, thanks to the ingenuity of the 10.5 million
people who are the major areas of strength for the business. With relatively
stable inflation rate and improving macroeconomic indicators, there are
prospects for profitable business operation in the country.
INFORMATION:

For Business Plans, Feasibility Studies, Business Concept Notes,

Project Conceptualisation, Marketing Plans and other market
research contents

Contact:

Sani Emmanuel Numa

Oliveserah Business and Academic Concepts

Call/Whatsapp: +234-706-818-0074 or Email:

srcnigeria@yahoo.com

4.0 THE CUSTOMERS

4.1 Customer Demographics

Profile Characteristics

Age Our customers basically include people of all

age as there is no age restriction to the
purchase of packaging materials. However, the
key target group includes those from ages 20
– 55 years who are involved in the
production/procurement of packaging solutions
for their business.

Gender There is no gender disparity in the purchase

and use of our products; people of all gender
can utilize the product.

Social Status The product shall be available in options for

conventional customers. Premium packaging
solutions shall be available for topnotch
business with need for personalized packaging
 solutions.

Education The products will be useful to both skilled

(educated) and unskilled (uneducated)
customers.

Attitude The product will be preferred by customers

who want a cheaper, convenient, quality and
safer packaging solutions.

4.2 Key Customers

The key customer segment of Oxy Polythene Group includes;

● Manufacturers/Producers (Sachet Water): We shall target pure

water companies around Conakry and other parts of Guinea to deliver
cutting edge packaging solutions to enable them package water for
their customers. This will also include printing companies who will
demand unprinted sachets (Oxy Blank)
● Distributors & Wholesalers (Shopping Bag): this segment
accounts for purchasing huge quantity of the product and selling at
various market points within the state. Special wholesale price shall be
applicable to this segment of customers to enable them make a margin
on the product.
● Retail Segment: the retail segments who are not connected with
distributors or wholesalers also account for huge demand of the
product by ordering directly to sell to their customers.

4.3 Customer Management

To maintain effective customer relationship, the following benchmarks will be
sustained;
 ● Client relationship management database will be created to track
customer purchase and determine the nature of relationship to have
with clients.
● Setup and monitor systems to garner feedback from the customers
which will form the basis for customer service and effective
relationship management.
● Regularly train all direct and indirect staff on the ethics of quality
customer service and experience to enhance the professionalism of the
staff.
● Ensure standard in all operational protocols and operations to maintain
the standard of the product, thereby stimulating customer confidence.

4.4 Internal Environment Analysis (SWOT)

Based on our perceived competition and an overview of the packaging
material production and marketing industry, Oxy Polythene Group (OPG) will
be able to maintain a competitive edge by capitalizing on its Strength,
Weakness Opportunities and Threat highlights.

4.4.1 Strength Assessment

● OPG will produce high quality sachet water packaging materials, and
polythene shopping bags that will be more efficient for packaging and
product packing.
● The ease of market entry and feasibility of startup operation will
enable it minimize operational cost, enhance efficiency and respond
effectively to market demand better than competitors with complex
operational procedures.
● The manager already has a detailed knowledge of the marketing
environment and the industry trend. This will aid the organization in
change management and implementation of cost effective marketing
strategies.
 ● Due to OPG’s optimal efficiency drive, the shopping bags produced will
be competitive, compared to other poor brand in the market.
● The concentration of economic activities within the geographical
location of the business makes it cost effective to purchase raw
materials and coordinate operational activities effectively.

4.4.2 Weakness Assessment

● The problem of poor electricity supply in Guinea implies that the

factory operations will be mostly dependent on diesel generating set.
This will significantly affect the cost of business operation.
● In the short run, the company may not have the goodwill or market
structures compared to competition. However, with aggressive
marketing strategies, OPG will improve her market presence and
increase its market share significantly over a period.
● The production capacity of the company may remain low throughout
the first year of operation due to poor operational efficiency.
● The inability of the company to set up its distribution network across
different parts of the country during startup phase may affect its
marketing influence.

4.4.3 Opportunities

● There are potential in increasing the market share of the company

through properly advertising and marketing activities.
● With improving economic conditions, there are huge potentials for the
Fast Moving Consumer Goods (FMCG) sector to expand. This will lead
 to the growth and expansion of trading which will have a multiplier
effect on the profit potential of the company.
● The strategic location of the company enables it to navigate and
extend its marketing activities to other parts of Guinea and countries
of West Africa
4.4.4 Threats

● There are possibilities for the ban of polythene shopping bags, due to
the environmental hazard and growing concerns for global warming.
Prior to such risk, the company would have recouped its investment
and made sufficient profit to diversify into other aspect of packaging
business.
● Due to inefficiencies in operation, the business may record losses
beyond the breakeven point. This includes damaged products or poorly
printed products; the risk can be mitigated by reusing damaged
products in subsequent production due to the strength of our extruder.

4.5 Competitors

Competit Establish Size Market Value to Strength Weakness

or ed date share (%) custome
rs

Topaz 1995 - About 70% Varieties Advanced Poor

Multi- technologi customer
Industries es Service and
High Cost

Other Between 3-20 about 30% Retail Coverage Limited

small 2010- staff of local production
companie 2019 markets
s
4.6 Advertising and Sales
4.6.1 Sales & marketing objectives

The sales and marketing objective of Oxy Polythene Group includes;

● Create awareness of product.

● Generate leads from marketing segments.
● Increase sales for the products.
● Ensure customer satisfaction through tailored product.

The sales team will be recruited and shall report to the MD/CEO upon the
commencement of operations. The primary working tools for the sales officer
shall be the product flier and in-depth knowledge of the features/uniqueness
of the product. The sales goals and target conforms to the sales forecast in
the cash flow projections. This will form the basis for the team and individual
market target.

4.6.2 Advertising & promotional strategy

Planned promotion Expected business Durati Target date

/advertising type improvement on

Social media Create awareness on the Quarterl Q4, 2019

Campaign brand and the available y
products

Email Email Create awareness and Quarterl Q1, 2020

Marketing generate leads for y
marketing; achieve customer
engagement and feedback

4.6.3 Unique selling position

The unique selling position of our brand is;

 “Oxy, the packaging you can trust”

Our promise is to deliver quality packaging solutions that meet the customer
definition of trust.

4.7 Sales and Distribution Channels

Channel Products/ser Percenta Advantages Disadvantage

type vices ge of s
sales
(%)

Wholesale All 25% Reduced cost Hoarding of

of marketing product and
price hiking.
Ensure
effective
monitoring to
determine
those to
blacklist.

Direct Sale All 70% Low cost of Reduction in

distribution market
and penetration of
marketing the product.
Combine direct
sales with
wholesale
intermittently.
Internet All 5% Low cost and Difficulty in
Sale high returns fulfilling
orders. Allow
for the client
to pay for third
party logistic
service
provider to
deliver the
product.

4.8 Marketing Strategies

● Business to Business (B2B) Strategy: our B2B strategy will focus
on distribution and sales of packaging materials to pure water
producers and other production/manufacturing companies within and
outside Guinea. We shall first establish a network with potential clients
and secure order to supply packaging materials of defined specification
at given intervals and agreed price. As a new entrant in the industry,
we may not have exclusive access to the market in the short run,
hence, we would capitalize on the already established market channel
and players to increase our market share.
● Business to Customer (B2C) Strategies: our B2C strategies will
focus on building a value chain with retailers across the length and
breadth of the state. We realize that linking retailers will lead to
increase in sales volume within our market niche. There are quite a
number of retailers selling/retailing polythene shopping bags and other
packaging solutions to direct buyers. Our B2C strategy will focus on
corporate customers with the need for customized polythene shopping
bags.
 ● Business to Business to Customers (B2B2C): in our aggressive
marketing strategy mix, we shall linkup with businesses that require
our customized shopping bags and produce on demand. We
understand that the need for customized shopping bags differs and we
take the unique need of the business or organization into
consideration. We shall equally coordinate our customers by proactive
strategies that will attract and retain direct and indirect.

INFORMATION:

For Business Plans, Feasibility Studies, Business Concept Notes,

Project Conceptualisation, Marketing Plans and other market
research contents

Contact:

Sani Emmanuel Numa

Oliveserah Business and Academic Concepts

Call/Whatsapp: +234-706-818-0074 or Email:

srcnigeria@yahoo.com
5.0 ACTION PLAN
5.1 Production Plan
ACTIVITY DESCRIPTION
Purchase of LDP Prior to the production period, the manager
polymer will place order for LDP polymer from dealers
in Conakry
Extrusion/blowing of The LDP will be blown at the factory with
LDP proper specification and quality settings
Production The packaging material will be processed by
printing and cutting/sealing, depending on the
nature of packaging material.
Selection and The produced sachet water packaging
packaging material & shopping bags will be carefully
selected and packed into bag/bundle.
Storage The packaged bundles are kept in the store
pending supply and delivery/marketing.
Delivery/supply/marke The product is then supplied to designated
ting sales and delivery points across and outside
the state

5.2 Daily Operating Plan

Timeline Activity
7:00am - 7:30am Resumption
7:30am - 8:00am Cleaning, work tools arrangements and briefing
8:00am - 2:00pm Extrusion, Printing and Packaging activities
2:00pm - 3:00pm Break
3:00pm - 5:00pm Continuation of production and rounding up
5.3 Technology/Software
In tandem with the expansion and growth plan of the business, the following
technological solutions will be explored;

1. Website Solution: a website will be developed for the purpose of

marketing, advertising and sales of products through the online
platform.
2. Microsoft Excel: the excel solution (Spreadsheet) will be used for
recording all financial transactions as well as inventory management.
Other accounting package such as the Peachtree will be considered in
the long term of the business.
3. Point-Of-Sales (POS) Machine: this will be installed in conjunction
with a reputable financial institution in the warehouse for effective
sales administration.

INFORMATION:

For Business Plans, Feasibility Studies, Business Concept Notes,

Project Conceptualisation, Marketing Plans and other market
research contents

Contact:

Sani Emmanuel Numa

Oliveserah Business and Academic Concepts

Call/Whatsapp: +234-706-818-0074 or Email:

srcnigeria@yahoo.com
6.0 Financial Analysis
6.1 Startup Cost
S/N Description of Cost Unit Rqd Unit Cost Total Cost (GNF)
1 Factory Rent (Site/Building) 1 3,500,000 3,500,000
Admin, Branding and Business
200,000
2 Development 1 200,000
3 Blowing Machine (Extruder) 1 81,819,000 81,819,000

4 2-Color Flexo Printing Machine 1 63,637,000 63,637,000

5 15KVA Diesel Generator 1 636,370,000 636,370,000

6 Delivery Motorbike 1 27,273,000 27,273,000

Machinery Procurement and Installation 500,000
7 Cost 1 500,000
8 Contingency 1 1,000,000 1,000,000

TOTAL FIXED COST 814,299,000

TOTAL OPERATING COST (1 MTH) 14,137,299.00
TOTAL EXPANSION COST 828,436,299

6.2 Monthly Operating Cost (Month 1)

Items Description Unit Rqd Unit Cost Total cost (GNF)
LDP/HDP Polymer Material 25kg per bag (for Sachets) 154 9,091 1,400,014.00
LDP Polymer Material
25kg per bag (for packaging) 10 9,091 90,910.00
Printing Ink Liters per unit 25 25,455 636,375.00
Carriage Cost (To Store) From wholesalers 1 30,000 30,000.00
Fuel/Energy Expenses Diesel/Fuel 200 9,500 1,900,000.00
Marketing Expenses Marketing, Sales & Distrib. 1 100,000 100,000.00
GM Salary fixed salary 1 5,000,000 5,000,000.00
Production Officer fixed salary 1 2,500,000 2,500,000.00
Factory Assistants fixed salary 3 800,000 2,400,000.00
Fees and Charges trade union etc. 1 10,000 10,000.00
Depriciation straightline depriciation 1 20,000 20,000.00
Contingency miscellaneous expenses 1 50,000 50,000.00
TOTAL COST 14,137,299.00

6.3 Operating Cost (Annual Breakdown, Year 1)

Oxy Branded 5,309,264.36 5,415,449.65 5,523,758.64 5,634,233.82 5,746,918.49 5,976,795.23 6,215,867.04 6,464,501.72 6,723,081.79 6,386,927.70 6,067,581.32 5,764,202.25
Oxy Blank 7963896.55 8123174.48 8285637.97 8451350.73 8620377.74 8965192.85 9323800.56 9696752.59 10084622.69 9580391.55 9101371.98 8646303.38
Oxy Bundle 864138.08 881420.8416 899049.2584 917030.2436 935370.8485 972785.6824 1011697.11 1052164.994 1094251.594 1039539.014 987562.0635 938183.9603
14,137,298.99 14,420,044.97 14,708,445.87 15,002,614.79 15,302,667.08 15,914,773.76 16,551,364.71 17,213,419.30 17,901,956.08 17,006,858.27 16,156,515.36 15,348,689.59

6.4 Revenue Projection

PRODUCT Sep, 19 Oct, 19 Nov, 19 Dec, 19 Jan, 20 Feb, 20 Mar, 20 Apr, 20 May, 20 Jun, 20 Jul, 20 Aug, 20

Printed Pure Water

Sachet Kg (Oxy Branded) 1,536 1,567 1,598 1,630 1,663 1,729 1,798 1,870 1,945 1,848 1,755 1,668
Price 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500 28,500
Revenue 43,776,000 44,651,520 45,544,550 46,455,441 47,384,550 49,279,932 51,251,130 53,301,175 55,433,222 52,661,561 50,028,483 47,527,058
Unprinted Pure Water
Sachet Kg (Oxy Blank) 2,304 2,350 2,397 2,445 2,494 2,594 2,697 2,805 2,918 2,772 2,633 2,501
Price 23,500 23,500 23,500 23,500 23,500 23,500 23,500 23,500 23,500 23,500 23,500 23,500
Revenue 54,144,000 55,226,880 56,331,418 57,458,046 58,607,207 60,951,495 63,389,555 65,925,137 68,562,143 65,134,036 61,877,334 58,783,467
Packing Bags (Bundle) 250 255 260 265 271 281 293 304 317 301 286 271
Price 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Revenue 6,250,000 6,375,000 6,502,500 6,632,550 6,765,201 7,035,809 7,317,241 7,609,931 7,914,328 7,518,612 7,142,681 6,785,547
TOTAL REVENUE 104,170,000.00 106,253,400.00 108,378,468.00 110,546,037.36 112,756,958.11 117,267,236.43 121,957,925.89 126,836,242.92 131,909,692.64 125,314,208.01 119,048,497.61 113,096,072.73

6.5 Cash Flow Projection

CASH FLOW (YEAR 1) Sep, 19 Oct, 19 Nov, 19 Dec, 19 Jan, 20 Feb, 20 Mar, 20 Apr, 20 May, 20 Jun, 20 Jul, 20 Aug, 20
INCOME
Oxy Branded 104,170,000.00 106,253,400.00 108,378,468.00 110,546,037.36 112,756,958.11 117,267,236.43 121,957,925.89 126,836,242.92 131,909,692.64 125,314,208.01 119,048,497.61 113,096,072.73
Oxy Blank 54,144,000 55,226,880 56,331,418 57,458,046 58,607,207 60,951,495 63,389,555 65,925,137 68,562,143 65,134,036 61,877,334 58,783,467
Oxy Bundle 6,250,000 6,375,000 6,502,500 6,632,550 6,765,201 7,035,809 7,317,241 7,609,931 7,914,328 7,518,612 7,142,681 6,785,547
TRADING CASH RECIEPTS 164,564,000.00 167,855,280.00 171,212,385.60 174,636,633.31 178,129,365.98 185,254,540.62 192,664,722.24 200,371,311.13 208,386,163.58 197,966,855.40 188,068,512.63 178,665,087.00
Investment Funding 745,592,669 0 0 0 0 0 0 0 0 0 0 0
Personal Funding 82,843,630 0 0 0 0 0 0 0 0 0 0 0
TOTAL CASH RECIEPTS 993,000,299.00 167,855,280.00 171,212,385.60 174,636,633.31 178,129,365.98 185,254,540.62 192,664,722.24 200,371,311.13 208,386,163.58 197,966,855.40 188,068,512.63 178,665,087.00

DIRECT COST
Stock and raw material (including delivery charge) 2,157,298.99 2,200,444.97 2,244,453.87 2,289,342.95 2,335,129.81 2,428,535.00 2,525,676.40 2,626,703.46 2,731,771.60 2,595,183.02 2,465,423.87 2,342,152.67
Manufacturing and energy cost 1,900,000.00 1,938,000.00 1,976,760.00 2,016,295.20 2,056,621.10 2,138,885.95 2,224,441.38 2,313,419.04 2,405,955.80 2,285,658.01 2,171,375.11 2,062,806.35
Sales and marketing cost including advertising 100,000.00 102,000.00 104,040.00 106,120.80 108,243.22 112,572.95 117,075.86 121,758.90 126,629.25 120,297.79 114,282.90 108,568.76
Staff Wages 9,899,999.99 10,097,999.99 10,299,959.99 10,505,959.19 10,716,078.37 11,144,721.51 11,590,510.37 12,054,130.78 12,536,296.01 11,909,481.21 11,314,007.15 10,748,306.80
Payroll Expenses (inc taxes for staff i.e. govt tax - - - - - - - - - - - -

INDIRECT COST/PAYMENTS-NET OF TAXES

Depriciation, Repairs and Maintenance 19,999.99 20,399.99 20,807.99 21,224.15 21,648.64 22,514.58 23,415.17 24,351.77 25,325.84 24,059.55 22,856.57 21,713.75
Fees/Licenses/Permits 10,000.00 10,200.00 10,404.00 10,612.08 10,824.33 11,257.30 11,707.59 12,175.89 12,662.93 12,029.78 11,428.29 10,856.88
Other Cost 49,999.99 50,999.99 52,019.99 53,060.39 54,121.60 56,286.46 58,537.92 60,879.44 63,314.62 60,148.89 57,141.44 54,284.37

CAPITAL COST-NET OF TAXES

Machinery 781,826,000 0 0 0 0 0 0 0 0 0 0 0
Office Equipment, Development and Branding 1,700,000 0 0 0 0 0 0 0 0 0 0 0
Other capital expenditure including land and building 3,500,000 0 0 0 0 0 0 0 0 0 0 0
Vehicle purchase 27,273,000 0 0 0 0 0 0 0 0 0 0 0

TOTAL CASH PAID OUT 828,436,298.97 14,420,044.95 14,708,445.85 15,002,614.77 15,302,667.07 15,914,773.75 16,551,364.70 17,213,419.29 17,901,956.06 17,006,858.25 16,156,515.34 15,348,689.57
CASH ON HAND (beginning of month) 0 98,738,400.02 151,304,181.04 184,684,872.47 206,591,334.61 221,650,820.11 234,594,352.19 246,424,625.84 257,749,510.61 268,940,230.88 269,940,136.81 265,111,280.46
Gross Revenue 164,564,000.03 252,173,635.06 307,808,120.78 344,318,891.01 369,418,033.52 390,990,586.98 410,707,709.73 429,582,517.68 448,233,718.13 449,900,228.02 441,852,134.10 428,427,677.88

Dividend Value (Volume Paid out to Investors) 65,825,600.01 100,869,454.02 123,123,248.31 137,727,556.40 147,767,213.41 156,396,234.79 164,283,083.89 171,833,007.07 179,293,487.25 179,960,091.21 176,740,853.64 171,371,071.15
Closing balance (Retained Earning) 98,738,400.02 151,304,181.04 184,684,872.47 206,591,334.61 221,650,820.11 234,594,352.19 246,424,625.84 257,749,510.61 268,940,230.88 269,940,136.81 265,111,280.46 257,056,606.73
6.6 Three Years Cash Flow Projection
YEAR 1 YEAR 2 YEAR 3
INCOME 0% 5% 7%
Oxy Branded 1,397,534,739.70 1,467,411,476.68 1,570,130,280.05
Oxy Blank 726,390,716.58 762,710,252.41 816,099,970.08
Oxy Bundle 83,849,401.20 88,041,871.26 94,204,802.25
TRADING CASH RECIEPTS 2,207,774,857.48 2,318,163,600.36 2,480,435,052.38
Investment Funding 745,592,669.10 782,872,302.56 837,673,363.73
Personal Funding 82,843,629.90 86,985,811.40 93,074,818.19
TOTAL CASH RECIEPTS 3,036,211,156.48 3,188,021,714.31 3,411,183,234.31
- -
DIRECT COST - - -
Stock and raw material (including delivery charge) 28,942,116.63 30,389,222.46 32,516,468.03
Manufacturing and energy cost 25,490,217.93 26,764,728.83 28,638,259.85
Sales and marketing cost including advertising 1,341,590.43 1,408,669.95 1,507,276.85
Staff Wages 132,817,451.37 139,458,323.94 149,220,406.61
Payroll Expenses (inc taxes for staff i.e. govt tax - - -
- - -
INDIRECT COST/PAYMENTS-NET OF TAXES - - -
Depriciation, Repairs and Maintenance 268,318.01 281,733.91 301,455.28
Fees/Licenses/Permits 134,159.10 140,867.05 150,727.75
Other Cost 670,795.12 704,334.87 753,638.32
-
CAPITAL COST-NET OF TAXES -
Machinery 781,826,000.00 - -
Office Equipment, Development and Branding 1,700,000.00 - -
Other capital expenditure including land and building 3,500,000.00 - -
Vehicle purchase 27,273,000.00 - -
-
TOTAL CASH PAID OUT 1,003,963,648.58 199,147,881.01 213,088,232.68
Cash at Hand (Year) 2,405,729,745.03 2,662,786,351.76 2,825,830,092.53
Gross Revenue 4,437,977,252.93 5,651,660,185.06 6,023,925,094.15
-
Dividend Value (Volume Paid out to Investors) 1,775,190,901.17 2,825,830,092.53 3,011,962,547.08
CLOSING BALANCE (RETAINED EARNING) 2,662,786,351.76 2,825,830,092.53 3,011,962,547.08

6.7 Profit and Loss Projection (Year 1)

P/L PROJECTION (YEAR 1) Sep, 19 Oct, 19 Nov, 19 Dec, 19 Jan, 20 Feb, 20 Mar, 20 Apr, 20 May, 20 Jun, 20 Jul, 20 Aug, 20
BASE FINANCIALS
SALES/TURNOVER-NET OF TAXES 993,000,299.00 167,855,280.00 171,212,385.60 174,636,633.31 178,129,365.98 185,254,540.62 192,664,722.24 200,371,311.13 208,386,163.58 197,966,855.40 188,068,512.63 178,665,087.00

Gross Revenue 993,000,299.00 167,855,280.00 171,212,385.60 174,636,633.31 178,129,365.98 185,254,540.62 192,664,722.24 200,371,311.13 208,386,163.58 197,966,855.40 188,068,512.63 178,665,087.00

Direct/Variable Cost-Net of Tax

Stock and raw material (including delivery charge) 2157298.995 2200444.974 2244453.874 2289342.951 2335129.81 2428535.003 2525676.403 2626703.459 2731771.598 2595183.018 2465423.867 2342152.673
Manufacturing and energy cost 1899999.997 1937999.997 1976759.997 2016295.197 2056621.101 2138885.945 2224441.383 2313419.038 2405955.8 2285658.01 2171375.11 2062806.354
Sales and marketing cost including advertising 100000.0006 102000.0006 104040.0006 106120.8006 108243.2167 112572.9453 117075.8631 121758.8977 126629.2536 120297.7909 114282.9014 108568.7563
Staff Wages 9899999.99 10097999.99 10299959.99 10505959.19 10716078.37 11144721.51 11590510.37 12054130.78 12536296.01 11909481.21 11314007.15 10748306.8
Payroll Expenses (inc taxes for staff i.e. govt tax 0 0 0 0 0 0 0 0 0 0 0 0
Direct/Variable Cost 14,057,299 14,338,445 14,625,214 14,917,718 15,216,073 15,824,715 16,457,704 17,116,012 17,800,653 16,910,620 16,065,089 15,261,835

Indirect cost-Net of Taxes

Depriciation, Repairs and Maintenance 19,999.99 20,399.99 20,807.99 21,224.15 21,648.64 22,514.58 23,415.17 24,351.77 25,325.84 24,059.55 22,856.57 21,713.75
Fees/Licenses/Permits 10,000.00 10,200.00 10,404.00 10,612.08 10,824.33 11,257.30 11,707.59 12,175.89 12,662.93 12,029.78 11,428.29 10,856.88
Other Cost 49,999.99 50,999.99 52,019.99 53,060.39 54,121.60 56,286.46 58,537.92 60,879.44 63,314.62 60,148.89 57,141.44 54,284.37
Indirect Cost 79,999.99 81,599.99 83,231.99 84,896.63 86,594.56 90,058.35 93,660.68 97,407.11 101,303.39 96,238.22 91,426.31 86,855.00

Other cost/Fixed Cost 814,299,000 0 0 0 0 0 0 0 0 0 0 0

Profit before Interest, Corp Tax & Depriciation 164,564,000 153,435,235 156,503,940 159,634,019 162,826,699 169,339,767 176,113,358 183,157,892 190,484,208 180,959,997 171,911,997 163,316,397

Dividend Payment 65,825,600 100,869,454 123,123,248 137,727,556 147,767,213 156,396,235 164,283,084 171,833,007 179,293,487 179,960,091 176,740,854 171,371,071

Retained profit pre-company tax 98,738,400 52,565,781 33,380,691 21,906,462 15,059,486 12,943,532 11,830,274 11,324,885 11,190,720 999,906 (4,828,856) (8,054,674)

6.8 Financial Indicators

Break Even Point
 Contribution BEP Unit
Product Sales Price Unit Cost Margin Fixed Cost (Kg)
Oxy Branded 28,500 3,456.55 25,043.45 5,309,264.37 212.00
Oxy Blank 23,500 3,456.55 20,043.45 7,963,896.55 397.33
Oxy Bundle 25,000 3,456.55 21,543.45 864,138.08 40.11
ROI

Investment 828,436,299
Annual Returns 2,662,786,351.76
ROI 321%
Payback Period

Annual Returns 2,662,786,352

Investment 828,436,299.00
Payback (Months,
Weeks) 3.21

Dividends on Investment (Year 1)

Projected
Share
Investment Capital Share Value Dividend per
Percentage
Share Value
Share A 74,559,266.91 10% 177,519,090.12
Share B 74,559,266.91 10% 177,519,090.12
Share C 74,559,266.91 10% 177,519,090.12
Share D 74,559,266.91 10% 177,519,090.12
Share E 74,559,266.91 10% 177,519,090.12
Share F 74,559,266.91 10% 177,519,090.12
Share G 74,559,266.91 10% 177,519,090.12
Share H 74,559,266.91 10% 177,519,090.12
Share I 74,559,266.91 10% 177,519,090.12
Share J 74,559,266.91 10% 177,519,090.12

Dividend Yield Ratio

Dividend Yield Ratio
Total Dividend per
Share 177,519,090.12
Market Value per Share 74,559,266.91
Ratio 2.38

Dividend Growth Rate

Dividend Growth Rate (Year 2)

Year 1 Dividend/Share 177,519,090.12
Year 2 Dividend/Share 565,166,018.51
Growth Rate 218%

Total Value of Dividend per Share (Year 1- Year 5)

Dividend Period 5 years

Average Projected
Dividend 887,595,450.59
Percentage Increase 1090%

7.0 FINANCIAL PLAN

From the total startup cost of GNF 828,436,299.00, the owner will provide
GNF 82,843,629.90 which is 10% while the other value of GNF
745,592,669.10 (90%) will be funded through the sale of investment shares.

A total of 10 shares will be sold, valued at GNF 74,559,266.91 per share.

The shares will be valued at accumulated on a monthly basis and paid on an
annual basis. The value of the total shares to be paid shall be determined on
the basis of 50% of profit on an annual basis.
The dividend payment shall be paid for a period of 5 years, starting with the
current financial year of investment. At the expiration of the 5 years, the
investors would have accrued dividends of GNF 887,595,450.59 for their
one time investment of GNF 74,559,266.91.

INFORMATION:

For Business Plans, Feasibility Studies, Business Concept Notes,

Project Conceptualisation, Marketing Plans and other market
research contents

Contact:

Sani Emmanuel Numa

Oliveserah Business and Academic Concepts

Call/Whatsapp: +234-706-818-0074 or Email:

srcnigeria@yahoo.com

8.0 Exit Strategy

The company will continue to operate and does not intend to go out of
business. Therefore, prudent financial and operational management, backed
by research will work to ensure the seamless operation of the factory while
monthly statement of account shall be provided for investors on a monthly
basis to ensure accountability and keep them informed on the performance
of their investment.
In the event that the business fails to operate profitably, the management
shall take steps to liquidate the assets and priorities will be given to
 servicing the finance provided by the investors who shall also be kept
abreast with the plans of the business.

INFORMATION:

For Business Plans, Feasibility Studies, Business Concept Notes,

Project Conceptualisation, Marketing Plans and other market
research contents

Contact:

Sani Emmanuel Numa

Oliveserah Business and Academic Concepts

Call/Whatsapp: +234-706-818-0074 or Email:

srcnigeria@yahoo.com

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