Strawberry Farming: A Fresh Effort to Sweeten Our Economy

Sweet Bangladesh Ltd. Teknapara, Salna, Gazipur Telephone: 8810002 Website:

The proposal envisage setting up a company named “Sweet Bangladesh Ltd” for commercial production of Strawberry and manufacturing plant with modern machineries at Salna, Gazipur. The strawberry products are being used as basic materials of the essential food products like jam, jelly, ice-cream, biscuits and milkshakes. The growth of the strawberry depends on the financial and policy help given by the government and the flawlessness of the saplings collected by us. The machinery for the project has been proposed to be imported from Canada. The project is expected to go into commercial operation within 18 (Eighteen) months from the date of expected the L/C for importing capital Machinery. At first phase to acquire infrastructure and development some capital expenditure has to be incurred and in second phase cultivation expenses has to be incurred time to time to start our project’s cultivation process.

Our total invested money is TK.22,90,150. We will invest 40% of capital by ourselves and rest of the 60% from the bank or from any financial institution as term loan. Each of us will contribute equal amount of money. For carry on the business this debt will cover the portion of the expenses which we cannot finance with our invested amount of money. It might include office equipment, office rent, other necessary items etc.


Summary of the Project


Name of Business: Sweet Bangladesh Limited. B. Location of the Project: The proposed project is to be located at Teknapara, Salna under Gazipur District. The proposed site is nearer to Dhaka. It is a place where a good number of lands are available for manufacturing purposes. The project site is enjoying facilities like electricity, water, skilled labor and good road and river communication.


Name and Address of Principals: Entrepreneurs
Sumon Shahriar Khan Muhammad Faisol Mahmudul Hassan

303/E, East Kazipara, Mirpur, Dhaka. House-901, East Shewrapara, Dhaka 20, Chamelibag, Shantinagar, Dhaka 13/10, Shahid Anwar Girls College Quarter, Dhaka Cantonment. 292/2, Dania, Jatrabari, Dhaka. C-2, Tower Bhaban, Fuller Road, Dhaka University Quarter.

01717386085 01716475147 01911188887

E-mail Saemon135 mehreenahmed007

K.M.Saemon Islam


Faijullah Rashid Shimul


Mehreen Ahmed


D. E. F.

Nature of Business : Manufacturing Business Project NPV: Tk.56,82,429 or, 50,07,900 or, 44,23,887. Statement of financing need:


There would be three sources of financing the project as below:

Source Equity Capital (40%) Term loan (60%) Total

Amount 9,16,060 13,74,090 22,90,150

Equity, 40 Debt, 60


Statement of Confidentiality of Report: This report is confidential and is the property of the co owners listed above. It is intended only for use by the persons to whom it is transmitted, and any reproduction or divulgence of any of its contents without the prior written consent of the company is prohibited.

Executive Summary


how much commercial rivalry we may face after the starting of this business. in a developing country like ours. we analyzed and presented every bit of financial approach that we are needed to be concerned with. As we approach the farming of strawberry. In that segment. we presented the details of the procedural methods of the cultivation of strawberry as 4 . we found out. we analyzed the probable opportunities in the overall economic sector of Bangladesh. we analyze our targets from the level of individual consumers to the institutional level. While getting ahead with our plan of strawberry cultivation.‘A Fresh Effort to Sweeten Our Economy’. here emerges a relatively newer idea in the economic sector of our country. Next we worked on our decisive concern that how much viable will be this plan as far as the commercial notion is concerned. In the initial segment of our plan. we established a proposal of strawberry farming that is very much innovative of an idea with the proven potentials. Keeping in mind this fact.with this baseline. there is a great possibility around this sector awaiting exploration. As we stated before. we focused on the plan entirely on business point of view. Just keeping in mind this concept. we were challenged with the fact that how much friendly will our climate and demographic aspects will be with the prospect of this project. Then we turn our focus on the potential competitors. the break-even as well as the profit margin. required cash flows. in that segment of financial feasibility we didn’t leave any stone unturned. We evaluate the sources of financing of this project. which means. it is pretty much crucial that we keep focusing on the newer business sectors just to enhance the credentials in every respect of the nature of evolution of business. While keeping an eye on our competitors. NPV. seemingly. with time the matured business segments decline in incongruent approaches as far as the product appeal is concerned and newer areas become needed to be exploited. So. Fundamentally. As we know. With the financial analysis supporting our claims of this plan to be a success. we presented all arguments and experiments in favor of this venture as well as the probable drawbacks.

Future Outlook and Trends 5 . we genuinely believe that this is the venture that is up there with the very best for the next decade. Providing the pros n cons of this project that we felt is still pretty much new with all the potentials in the business viewpoint.well as the workforce needed for it. Industry Analysis A. which we deemed as the key to success. And essentially after that the marketing policy of this plan.

Strawberry. deputy director of Rajshahi Directorate of Agriculture Extension (DAE). b) Culture: Before starting the project we carefully consider the cultural components. c) Legal Concerns: Legal perspective of our project is in a primal stage. a money-spinning nutritious and delicious foreign fruit adapted in Bangladesh. Our project ‘strawberry farming’ as a agro-based model for business has a environment-friendly set-up & nutrition prospect. Our project ‘strawberry farming’ seems to have a positive force to those economic variables.a) Overall Economy: A project’s future growth and development has some impacts on the country’s overall . nutrition and our concern for environment is wellassured. Once registered.1) trends in the GNP 2) Unemployment rate 3) Disposable income. may get government registration soon for cultivation across the country after experiments yielded encouraging results in Rajshahi and Natore. Now living in a global economy demographic shift is an important factor to consider while measuring some project’s possibility and same as the case for ours. the sweet and attractive fruit will open a new horizon for farmers. Surely cultivating strawberry in a poor economy like ours tends to increase GNP& disposable income and reduce unemployment rate. Strawberry variety has been sent to National Seed 6 . Braja Hari Das. With great export potential. health. nutrition 3) concern for environment.1) demographic shift 2) Shift in attitude 3) trend in safety. through this project our nation’s safety. strawberry cultivation will be expanded with government patronization according to Mr. Strawberry is not a product of great demand for Europe or America only and that’s where our project’s expansion is considerably possible. health.

Board and the process for registration is underway as said by Dr Shafikul Islam. Italy 7 . Chittagong. b) International market :Germany. Sylhet. biscuit. Netherland. UK. If this project is successful and acquired expected growth then it can expand its market to other parts of the world. jelly. cake or milk shake. senior scientific officer of Rajshahi regional Fruit Research Centre (FRC). France. Belgium. This wide variety of strawberry usages will make our project attractive to local consumer and businesspersons who run megashops for high-class and upper middle-class people. chocolate. Market Segmentation Besides being taken as a fruit. It will be like small manufacturing company’s competition for capturing a smaller market. Rajshahi. pickle. In Abroad there are so many competitors and we have little chance to compete with them because of their huge capital and friendly environment for strawberry production at least in the very short run. Canada. it is used in preparing ice-cream. B. Analysis of Competitors Strawberry plantation as a concept of business is new in our country and that’s why meager competition will be found after commercializing our product at home. USA. If it is registered then some of those issues need to check are: 1) trademark 2) licensing 3) product safety & liability 4) insurance 5) contracts 6) restrictions on media advertising. a) Posh market: Dhaka. Market segmentation of our project concentrated into the two main facets: one will be the aristocratic market of Dhaka and other major cities of Bangladesh and the other facet will be the countries who are the highest importer of strawberry from various corners of the world. C. jam.

D. have been showing interest to cultivate strawberry and searching for its saplings during the current plantation season that will continue till middle of this month. the experts called for an effective motivational campaign for commercial farming of the soft red-juicy fruit. Industry Forecasts Strawberry farming has started gaining popularity everywhere in northern region for the last couple of years as the fruit has tremendous economic prospect for the grassroots farmers. Experts said the growers' level extension of strawberry cultivation as well as its higher value could bring a new dimension to the country's agriculture. Referring to the bright prospects of strawberry cultivation in Bangladesh except the coastal districts. Many farmers. 8 . including the amateur ones.

Description of the Strawberry Venture A. It is also grown in some parts of India. It was sited as a value-added good that could bring investors a lot of profit without having huge capital. The government experimental cultivation of strawberry started in 2006. attractive in taste and colour than in many other countries. large number of labors etc. later when we searched the internet we found more information on the commercial cultivation of strawberry in Bangladesh. Out of the three. he evolved some new varieties suitable for cultivation in Bangladesh climate. Twelve years ago. We came to know from the day-long workshop jointly held by Bangladesh Strawberry Association (BSA) and Botany Department of Rajshahi University that farming strawberry could be an attractive business with a possibility of earning hefty gains. In 2003. Horticulturist Quamruzzaman is also cultivating the fruit on commercial 9 . Originating in America. strawberry is usually grown in cold regions like Europe and Australia. RU-3 and Modern-3 varieties were found very impressive in size. three years after Dr Manjur Hossain. Preamble to the Venture “Workshop on strawberry farming held at RU” was the news on paper that made a path to reach the end of our search for a lucrative business idea. Dr Manjur brought saplings of eight varieties of strawberry plants while returning from Japan after his PhD. taste and flavour. Local fruit importers and some foreigners who visited Manjur’s field recently said the strawberry was bigger in size. In five years. three varieties yielded encouraging results and were found suitable in local climate. a teacher of Rajshahi University Botany department evolved several verities suitable for Bangladesh climate after years of research. He began research for the first time in country at RU Botany department’s Plant Breeding and Gene Engineering Laboratory in 1996.

now imported from Thailand and Australia at Tk 900-1200 per kg. Each plant bears around 250 to 300 grams of fruits and some 6000 plants can be grown on one bigha of land. Enthusiastic people are cultivating the fruit in 24 districts and they formed Bangladesh Strawberry Association to train growers. according to Manjur and Quamruzzaman. The country has an annual demand for around 50 tonnes of strawberry. The fruit is best for those who want to get higher and faster returns from limited land. B. Figure: Two initiator of strawberry farming -Dr Manjur and Quamruzzaman After exploring through the internet over this opportunity of a fresh entrepreneurial effort. But both of them found the best results this year (2008) in hilly areas at Matiranga Army Zone where 26 Cavalry Division produced quality strawberries from 200 saplings.“Commercial Cultivation of Strawberry” we felt very motivated to take the venture and for that purpose established a private limited company named “Sweet Bangladesh Ltd”. Saplings can be collected from nurseries of Dr Manjur and Quamruzzaman in Natore. The plant starts flowering within one month of plantation and fruits can be collected till March.basis at his Modern Horticulture Center at Harishpur in Natore for last three years. Strawberry cultivation is as easy as growing potatoes or brinjals. Strawberry flavor is also imported. Venture Product 1 . Saplings can be sown in rows in November and December.

but with the advent of day-neutral cultivars. it grows profitably well in the sub-tropical regions also. they are lovely indeed.Sweet Bangladesh Ltd. Karhu and Hakala1 observed that micro propagated strawberry plants were comparatively better in different characters (crown size. number of runners. The sweet red berries are irresistible to almost everyone. Strawberry is a perennial. Scientific findings have revealed that use of plasticulture techniques in strawberry cultivation could revolutionize its commercial cultivation for higher profitability in the many regions of Bangladesh. people from all walks of life truly enjoy the venerable strawberry. flowering time and yield of berries) than conventionally propagated runner plants. These plants can be a wonderful addition to any gardening. stoloniferous herb belongs to the family Rosaceae. In addition. Very quick to produce their fruits. Plasticulture techniques can play very important role in the manipulation of microclimate favorable for its cultivation. Strawberry plants are lush and have attractive blooms. Indeed. which has a wide range of biological activity. One of the best loved fruits in many parts of the world is strawberry. In addition to being a delicious fruit. It contains relatively high quantities of ellagic acid. 1 . It is produced in 71 countries worldwide on 506000 acres. when the plants are laden with berries. before launching its commercial cultivation wants to introduce its product to all walks of people. Strawberry is a major fruit of temperate region. strawberry plants are an excellent crop. This section provides information about the prospect & the very nature of strawberry production. Strawberries are now getting popularity in Bangladesh. the strawberry also is a fruit that can be easy to cultivate and grown. They are different from most fruits in that their seeds are produced on the outside of the fruit .this combined with their bright red color has the unfortunate side-effect of making them very attractive to birds. genus Fragaria and most widely consumed fruits throughout the world.

2: 182 A four Bigha plantation of the crop is a viable proposition. Building Pump House Labor Shed Sub Total 4.08. 2002.150 D.C.37.0000 120. Project costs of the model are exhibited in a summary of the project cost in the table below: Estimated Project Cost (four Bigha model strawberry plantations) Serial No.000 22.900 16.000 80.000 18. Micropropagated strawberries on the field. ISHS Acta Horticulture.900 11. Furniture & Fixtures Grand Total Proposed Expenditure 77.000 12.00.000 1. We think we are 1 . Project Cost & Size 1.00. Component 1. We all are students of the business faculty of Dhaka University. Background of Entrepreneurs There are altogether six entrepreneurs to take the venture of strawberry cultivation.00. Karhu.500 72.750 2.000 14.000 7. Cost of goods sold (i) Cost of planting material (ii) Fertilizers & pesticides (iii) Mulching (iv) Cost of Labor Sub Total 2.000 29.500 58. Hakala.500 43. Land & Site Development (i) Land (ii) Leveling & Dressing (iii) Fencing & Gates Sub Total 3. and K.250 1.000 8. S.90. Plant & Machinery (i) Submersible Pump (ii) Fertigation system (iii) Farm Equipment Machinery Sub Total 5.

knowledgeable at the field of business. aggressive in decision-making. able to work together and brave enough to wait and work hard until we reach the peak. Production Plan 1 .energetic. vibrant to all the opportunities around us. Without having much support from our families it will not be possible to take the venture and we think our families will be helpful towards us.

Soil fumigation with a mixture of methyl bromide and chloropicrin helps to increase root system. Weed control is a challenge for both conventional and organic strawberry growers. Hand weeding is still needed in addition to the mechanical weed control provided by these implements. It is not a tough job. Buddingh finger weeder.The initiative was taken as cultivation of the fruit on a small piece of land with a little investment can help us earn handsome profit in any areas where people mainly depend on agriculture but lack cultivable land. and very popular. Strawberry cultivation does not need much land and takes time not more than two and a half months. and the plasticulture system. Sandy loam to loamy soil with pH 5. reduce fertilizer requirement and control the weeds. A biologically active soil resulting from green manures and cover crops will have large reserves of nutrients to feed the crop. Agro-Climatic Requirements Strawberry grows well under temperate climate. and the Reigi weeder. which is lightly mulched with straw in the planting year to reduce weeds. remove weeds and stubbles. B. including the matted row system. Tools for weed control include the Lely springtine. Land Preparation The soil is ploughed during summer with a soil turning plough which is followed by repeated ploughing to make soil friable. Each cultivar has a different day length and temperature requirement. Some cultivars can be grown in subtropical climate. Manufacturing Practices Different strawberry production systems can be adapted to organic Strawberry production. as a farmer only needs to process the soil a little. A. Nutrient reserves are built over the years 1 .5 is ideal for cultivation. C.7-6. The Reigi is now available in 2 and 3 row models. Daylight period of 12 hours or less and moderate temperature are important for flower-bud formation.

Defoliation suppresses the plant growth. x 60 cm. made into bundles and planted in the field. Runners are uprooted from nursery. tissue culture is widely used. Row covers and black plastic mulch (non photodegradable) are allowed in organic production. ii) Planting Season The ideal time of planting runners or crowns in hilly areas is September-October. For large scale propagation of virus free plants. These can be kept in cold storage before transplanting. The soil should be frequently irrigated to reduce water stress in the leaf. A spacing of 30 cm. don’t mow anything while strawberries are in bloom. If planted very late. with a population of 5500 plants per Bigha has been considered which was commonly observed in areas covered during a field study.and then maintained for the most part with composts. Certain organically acceptable slug and mouse baits are available. For example. However. If the planting is done too early. iii) Spacing Planting distance varies according to variety & type of land. crop rotation doesn’t help with tarnished plant bug control. Natural sources of plant nutrients can be used to supplement nutrient needs. crop rotation is the only way to control strawberry rootworm. D. iv) Nutrition 1 . x 30 cm. Damage from this pest can be reduced by managing vegetation on land around the field. is usually followed.Insect pests can sometimes be controlled by crop rotation. In the model scheme. a spacing of 30 cm. Production Technology & Procedure i) Physical Plants Strawberry is commercially propagated by runner plants. plants lack vigour and result in low yield and quality of fruits. delays fruiting and reduces yield & quality. runners develop in March and crops are light.

30% water and energy are saved. may be applied according to soil type and variety planted. Inter-cultural practices are continued till the straw mulch is applied. applying herbicides or plastic sheet. Irrigation is applied in furrows between the rows. Depending on the weather conditions. They should be kept in a shady place to avoid damage due to excessive heat in the open field. 75-100 kg. vi) Training Four different types of training systems viz. Morphactin (@ 50 ppm) improves the fruit size.1-0. Usually matted row system is more popular than the other training systems. P2O5.A fertilizer dose of 25-50 tonnes farmyard manure. ix) Harvesting and Yield Strawberries are generally harvested when half to three fourths of skin develops color. In case of trickle irrigation. matted row. picking is usually done on every second or third day usually in the morning hours. 40-80 kg. Excessive irrigation results in growth of leaves and stolons at the expense of fruits & flowers and also increases the incidence of Botrytis rot. Trickle and sprinkler irrigation systems are becoming popular nowadays. v) Irrigation Strawberry being a shallow-rooted plant requires more frequent but less amount of water in each irrigation. K2O/ha. 40-120 kg. Strawberries are harvested in small trays or baskets. hill and plastic mulch are used to train the strawberry plants. vii) Intercultural Operations The field is kept weed free during the first season by harrowing & ploughing. Machinery and Equipment 1 . spaced row. E. N. viii) Growth Regulators Application of GA3 (50 ppm) sprayed four days after flowering and maleic hydrazide (0.3%) sprayed after flowering increases the yield by 31-41%.

Drip Irrigation This is average cost of one acre drip system for the crop inclusive of the cost of fertigation equipment. 1 . plant population and plot geometry. At first the farmers have to buy the mother plants from the university at Tk 20 per sapling and later they will be able to produce the saplings themselves. The teachers already trained 129 persons from 24 districts on strawberry cultivation and sent saplings to the districts for experimental farming. Names of Suppliers of Raw Materials Saplings can be collected from nurseries of Dr Manjur and Quamruzzaman in Natore. Building Infrastructure A one acre orchard would require minimally a labour shed and a store-cum .pump house and a labour shed.Irrigation Infra-Structure For effective working with drip irrigation system. The actual cost will vary depending on location. F. Implements & Equipment For investment on improved manually/power operated essential implements and equipment. Marketing Plan Pricing A. This is post cost of tube-well for four Bigha. it is necessary to install a tube-well with diesel/electric pumpset and submersible motor.

B. It is expected that the established marketing network should be more strengthened due to availability of our product at the appropriate time or seasons. Our company Sweet Bangladesh Ltd will use both the way of distribution in line with their accessibility. where different agro based trainings are provided. For measuring this sensitive factor we use current market information and analysis of the researchers.Appropriate pricing is necessary to measure our project’s profit in the short run and the growth of our company in the long run.30 kg so income from each plant will be (0. Again.000) or 4.30*550) or 165 tk which is 33. For this reason. In our project per plant (unit) cost is (108. we have set the required sales volume that will help us to achieve the goal. D. Sales at Discount: We also have planned to sale our products at discount to the whole sellers as a plan of the whole promotion planning. profitability and cost effectively. Distribution Majority of the growers sell their produce either through trade agents at village level or commission agents at the market. C. We will monitor timely and properly the actual sales 1 . Control One of the major goals of our business is to capture the major share of strawberry industry in Bangladesh. we will provide free samples to the people in the near localities. As each plant produce 300 grams or 0. Promotion Free Sample: We have decided to give free samples to the training centers. Our first year sales price is 550 tk per kg reasonably assumed from the range given 200 tk to 900 tk.900/22.33 times higher than the cost of unit good sold (4.95 tk.95 tk). Posturing: We will try to promote our product by posturing near training centers and selling centers.

Fruits of lower grades are packed in baskets. Transportation: Road transport by trucks/lorries is the most convenient mode of transport due to easy approach from our site to the posh market of Dhaka. Strawberry flavor is also imported. We will also monitor the performance of our manpower resource. With growing demand for strawberry around the world make our product forecast predictable and the forecast is strawberry has a bright prospect in local market and in the foreign market too. Fruits of good quality are packed in perforated cardboard cartons with paper cuttings as cushioning material. size and color. Rajshahi and other major cities. Post Harvest Management Grading: Fruits are graded on the basis of their weight. Product Forecasts The country has an annual demand for around 50 tonnes of strawberry. For distant marketing.and forecasted sales. Sylhet. strawberries should be pre-cooled at 40C within 2 hours of harvesting and kept at the same temperature. Organizational Plan A. Chittagong. Each plant bears around 250 to 300 grams of fruits and some 5500 plants can be grown on one Bigha of land. . Packing: Packing is done according to the grades for long distance markets. Storage: Fruits can be stored in cold storage at 320C up to 10 days. After pre-cooling. they are shipped in refrigerated vans. F. now imported from Thailand and Australia at Tk 900-1200 per kg. Form of Ownership: 1 . E.

Jatrabari. The detailed organogram is shown below: Organogram of Sweet Bangladesh Limited 2 . Dhaka Cantonment. B. Bangladesh under Companies Act 18 of 1994. 13/10. Organogram: The organization set-up of the project will be in usual and staff method. C.Being a green-field Venture it is proposed initially to be set up a Private Limited Company and registered with the Registrar of Joint stock Companies. marketing. Post M. staffs at different levels will assist the managing Director.M.D Director (Finance) Director (Administration) D. East Kazipara. Shahid Anwar Girls College Quarter. the company may be restructured into a public Limited Company with issue of Public Shares in the Market.Saemon Islam Address 303/E. 292/2. The Board will formulate Company’s policies and will provide guideline for its day to day business operation. operation and smooth running. Dhaka. Management of the Company: The overall management of the company will be vested with Board of Director. After an initial period of successful operation. Highly qualified and experience General Manager will be recruited to support the Managing director in all operational level of activities. Dania. Besides. The company will provide both administrative and technical support to the project for its implementation. The managing Director is to look after the business affairs and other logistic support to the company. Board of Directors: Name Sumon Shahriar Faijullah Rashid Shimul K. Mirpur.

we will appoint some active Directors with a degree of professional education and managerial skill and experience 2 .Chairman Managing Director Director Finance & administration Manager administration Manager Production Manager Finance Manger Marketing Supervisor Accounts officer Marketing Officer Marketing Officer Marketing Officer Marketing Officer E. it will act as a private Limited Company. For a smooth and professional operation of the company. The managing Director will manage the routine operations of the company. So here the overall management of the company will be vested with the Board of Directors. Basic Management Structure: Initially. And the major Company vision Programme and policy discussion will be taken through approval of the board. The Managing Directors will be assisted by other directors.

typist. sweeper etc Total - Grand total personnel 90 Assessment of risk A. Manager Purchase officer Sales & purchase officer Cashier Peon. cutworms and hairy caterpillars attack the crop. 2 . Areas where strawberries are to be planted should be free from white grubs and cutworms. Administrative staff: General manger Asst. Plant Risks & Protection Insect White grubs. Technical staff: Production manger Asst production manager Supervisor Fore man Qtc officer Skilled worker Unskilled worker Total salaried Functional Managers. guard. Number of Staffs: A. To establish transparency and accountability we maintain external and internal auditing system. of persons 02 02 02 02 02 15 50 75 01 02 02 04 02 04 15 B. F.

Diseases Main diseases reported are leaf spot and grey mould.000 4.000 2 . Though rabi-3 proved itself as a successful type of strawberry.60. It is probably caused by certain climatic conditions and extremes in nutrition. Application of carbendazim / thiophanate methyl has been found to be effective in most cases. Disorders Albinism (lack of fruit colour during ripening) is a physiological disorder in strawberry. Financial Plan A.  Practically there may lack the true taste of strawberry because it is invented in the laboratory.05%) or Malathion (0. B. Fruits remain irregularly pink or even totally white and sometimes swollen.290.05%) on appearance of caterpillars has been found to be effective in most cases.000 Year 2 Year 3 39.30. They have acid taste and become less firm. Evaluation Weakness of Business  Strawberry cultivation is still in such a primary stage that anything could happen to this industry. Pro Forma Income Statement Taka Items Sales revenue Year 1 36. Albino fruits are often damaged during harvesting and are susceptible to Botrytis infection and decay during storage.Application of endosulfan (0.  Environmental change harm substantially.

406 29.41% 82.011 41.548 9.Less: Cost of Goods sold Cost of planting material Fertilizers & Pesticides Mulching Cost of Labor Total cost of goods sold Gross profit Operating expenses Selling expenses Advertising Salaries.520 7.22% 81.000 8.604 B.400 18.222 6.193 47.751 6.50.148 20.04.812 7.200 79.652 80.079 11.28.989 1.911 32.50. Cash Flow Projections Particulars Receipt Sales Disbursements Land & site development Amount (Year-1) 35.089 38.000 2 .000 12.860 1.965 65.100 77.340 14.241 1.500 1.900 11.11.307 77.993 14.78. wages Supplies Rent Utilities Insurance Term loan interest Depreciation Miscellaneous Total operating expenses Net profit Ratio (Percentage): Gross profit to sales% Net profit to sales % 97% 80% 97.000 1.653 14.022 35.333 28.770 8.48.367 66.21.100 29.118 81.49% 97.989 11.659 1.120 1.989 78.165 65.85.665 35.81.110 12.260 20.000 146.193 46.466 1.221 12.040 28.930 28.08.084 622.193 47.023 28.

06.00.19.Plant & machinery Building Furniture & fixtures Cost of goods sold Selling expenses Salaries & wages Advertising Office supplies Rent Utilities Insurance Term loan interest Total disbursements Cash flow 137.296 14.00.230 7. Pro Forma Balance Sheet: Taka Properties & assets particulars Land & Site Development Land Leveling & Dressing Fencing & Gates Building Year 1 Year 2 Year 3 16.77.115 28.00.460 28.000 0 80.500 2.000 .000 2 80.00.000 1.000 80.750 43.722 1.20.566 64.000 1.870 78.000 16.262 19.000 1.20.000 1.596 C.00 16.37.804 7.

74.864 0 3.97.524 1.674 8.000 30.74.060 9.30.860 D.07.000 21.16.887 Total 1.08.424 65.000 7.986 39.090 4.81.000 14.636 5.965 1.200 79.000 7.424 5.07.065 68.000 2.40.000 27.060 8.500 13.424 3.87.260 13.000 9.25 21.860 81.000 30.979 26.250 52.Pump House Labour Shed Plant & Machinery Submersible Pump Fertigation system Farm Equipment Machinery Furniture & Fixture Total Fixed Assets Cash balance Bank balance Accounts receivables Total current Assets Total wages Supplies Rent Fixed 1.875 55.45.100 6.66.924 0 Taka Capital & liabilities Equity / Share capital Retained Earnings Long term loan Accounts payable Other current liabilities Total Year 1 Year 2 9.81.500 11.057 21.00.060 9.117 Year 3 8.31 35.000 37.636 --------. Break-Even Analysis Analysis of total cost Raw Materials (COGS) Selling expenses Advertising Salaries.69.500 37.000 ----------.200 6.00.000 7.060 6.24.900 1.130 14.86.204 Variable 1.867 8.636 5.66.160 8.49.250 29.07.500 19.090 13.310 35.090 ----------.200 79.340 2 .

000 = 92.30.000 Insurance Term loan interest Depreciation Miscellaneous Total We know.000-4.979 / 0.26.150 Applications of funds Applications Land & Site Development Building Amount 18.500 2 .808 BEQ = BEP/Price per unit = 2.520 7.090 28.00.712 27.30.060 13.72.865 = Tk.000-2.040 28.222 7.193 18.488 2.808)/36.021)/36.021 14.808 7.808/550 =496 unit Margin of Safety 5.260 29. Sources and Applications of Funds Sources of funds Source Equity Capital (40%) Term loan (60%) Total Amount 9.000 = 86.000 = (Total sales-Break even sales)/Total sales = (36.5% BEP (Sales) = Fixed cost / CM ratio = 2.30. CM ratio = (Sales – Variable Cost)/ sales = (36.979 8.734 4.72. 2.260 29.193 E.35.

285 35 .49 .90 . NPV of the Project: For calculating NPV.Tax = 35.150 + 29 .285 OCF in year-3 = EBIT + Depreciation.0 = .429 1.26 .26.774 + + = 44 .10 1.Tax = 31.0 = 29.49 .193 .20 3 2 . required rate of return is 15% then NPV = −22 .153 32 .23.150 + 29 .15 1.581 + 28.153 32 .000 108.774 + + = 56 . required rate of return is 20% then NPV = −22 .82 .285 35 .21.900 1.00.90 .26 .Plant & Machinery Furniture & Fixture Cost of goods sold Total 137.774 When.20 2 1.153 OCF in year-2 = EBIT + Depreciation.Tax = 28.774 + + = 50 . required rate of return is 10% then NPV = −22 .960 + 28.150 F.03.193 .150 + 29 .153 32 .0 = 35.49 .49.03.887 1.20 1.26 .900 22. we have to find OCF (operating cash flow): OCF in year-1 = EBIT + Depreciation.90.10 3 When.285 35 .98.15 2 1.03.092 + 28.07 .10 2 1.90 .15 3 When.750 2.

 10% or 15% or 20% Assuming that discount rate for calculating NPV is Cash flow is increased at the rate of 5% for 2nd and the company.  3rd year. A plan like strawberry farming can always succeed in our country where the cost of direct workforce is relatively cheaper. The companies invest more in the familiar business segments rather than most new ones. comes the innovating approach to exploit the potential areas. So. Presenting this incredibly feasible of a business idea we can say. the environment is as friendly and good communication as we can practically expect it to be. this sector of business can really grow in near future spontaneously.  operation.Concluding Remarks In a developing country like Bangladesh. Assumption:  Depreciation is charged 3% on building. If government help a little bit and support. with the necessity. Assume that there is tax exemption on the 1st three years of References: 2 . the competition of the establishment in an already recognized & conventional business sector is very hard. 5% on No tax is charged on the 1st three year’s income of plant & machinery and 10% on furniture & fixture. our economy is awaiting to become sweetened in a real eco-friendly way.

3 . Botany Department. Rajshahi University. 5) Quamruzzaman.P. Horticulturist. Natore. Horticulture Center.D. Rajshahi University.Hisrich M. 4) Professor Dr Manjur Hossain.Peters 2) BSA (Bangladesh Strawberry Association).1) Entrepreneurship 5th edition R. Harishpur. 3) Botany Department.

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