Jatiya Kabi Kazi Nazrul Islam University

Trishal, Mymensingh
A report on
Business plan

Submitted to

Chandon Kumar Pal

Assistant professor

Department of Finance and Banking

Jatiya Kabi Kazi Nazrul Islam University

Submitted by:

Name : Riaj Uddin

ID : 17132601

Session : 2016-17

Department of Finance and Banking

Jatiya Kabi Kazi Nazrul Islam University

Submission date: 11 January, 2020

i
 Letter of transmittal

11 January, 2020

Chandon Kumar Pal

Assistant professor

Department of Finance and Banking

Jatiya Kabi Kazi Nazrul Islam University
Trishal, Mymensingh
Subject: Application for accepting the Report.
Sir,
I would like to submit my report on “A business plan”. I have successfully complete report on
the topic you specified.

Therefore, it is great request to you to accept my report.

Sincerely Yours
Riaj Uddin
ID: 17132601
Session 2016-17
Department of Finance and Banking
Jatiya Kabi Kazi Nazrul Islam University.

ii
 Executive Summary

“Drink up” is a partnership firm and the business type is fruit juice producing.Our firm
established 1 Jan,2020. There are six partner in drink up firm. Each of the six member contributes
equal capital which is TK 60,00,000 and total amount of capital is 3 crore. The location of the
firm establishment is Mawna, Sreepur, Gazipur. Firm will produce Pineapple juice primarily
introducing a new flavor, after a successful start with creating brand image will go for further
production of Sugar-cane juice; mango juice or orange juice. Our Most target customers are the
local people with low and middle income. Total cost of the project TK 4,00,00,000 which will
financed by both debt and equity.
In our report we calculate: Cost of production 39,30,000 , operating cost 20,70,000, NPV 30,99,
793 and IRR 10.12% . Our BEP unit 60,912 litre and Tk.42,63,840.
We also calculate projected income statement, projected balance sheet, and projected cash flow
in our report.

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Table of Contents
Chapter 01: Introduction of the business.....................................................................................................2
1.1 General Description of the Business....................................................................................................2
1.2 Background of fruit juice Industry.......................................................................................................2
1.3 Company Background.........................................................................................................................2
1.3.1 Our vision .......................................................................................................................................2
1.3.2 Our mission is to strive to:............................................................................................................2
1.3.3 Objective......................................................................................................................................2
1.4 Goal and opportunity of the business.................................................................................................2
1.5 Uniqueness to the product..................................................................................................................2
1.6 Milestone............................................................................................................................................2
Chapter two: Management aspects..............................................................................................................2
2.1 Promoters...........................................................................................................................................2
2.2 Shareholding of the owner..................................................................................................................2
2.3 Legal forms business...........................................................................................................................2
2.4 Management Structure:......................................................................................................................2
2.5 Management Team :...........................................................................................................................2
2.6 Consultant & Advisor:.........................................................................................................................2
2.7 Banks...................................................................................................................................................2
2.8 Auditors...............................................................................................................................................2
Chapter Three: Technical aspects.................................................................................................................2
3.1 Layout of the organization and structure of building..........................................................................2
3.2 Production technology........................................................................................................................2
3.3 Utilities................................................................................................................................................2
3.4 Equipment...........................................................................................................................................2
3.5 Communication technology................................................................................................................2
3.6 Location of production and distribution..............................................................................................2
3.7 Product................................................................................................................................................2
3.8 Production process with flow chart.....................................................................................................2
3.9 Raw material.......................................................................................................................................2

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 3.10 Research and development...............................................................................................................2
Chapter Four: Marketing Aspects.................................................................................................................2
4.1 Current market situation of juice product...........................................................................................2
4.2 SWOT analysis.....................................................................................................................................2
4.3 Competitor analysis.............................................................................................................................2
4.4product mix/ product line....................................................................................................................2
4.5 Distribution channel............................................................................................................................2
4.6 Cost policy...........................................................................................................................................2
4.7 Pricing policy.......................................................................................................................................2
4.8 Store location......................................................................................................................................2
4.9 Promotion strategy.............................................................................................................................2
4.10 Target market & market segmentation.............................................................................................2
Chapter Five: Financial aspects.....................................................................................................................2
5.1 Cost of Project.....................................................................................................................................2
5.2 Mode of Finance..................................................................................................................................2
5.3 Cost of production...............................................................................................................................2
5.4 Operating cost.....................................................................................................................................2
5.5 Working capital requirement..............................................................................................................2
5.6 Projected cash flow.............................................................................................................................2
5.7 Projected income statement...............................................................................................................2
5.8 Projected Balance Sheet......................................................................................................................2
5.9 Capital Budgeting................................................................................................................................2
Chapter Six: Socio-Economic aspects............................................................................................................2
6.1 Social responsibilities...........................................................................................................................2
6.2 Business Ethics....................................................................................................................................2
6.3 Contribution to National Economy......................................................................................................2
Chapter Seven: Environmental aspects.........................................................................................................2
7.1 Responsibilities towards environment.................................................................................................2
7.2Evrironment impact of project and managing the task........................................................................2
7.3 Save the environment action...............................................................................................................2
Conclusion.....................................................................................................................................................2
Bibliography..................................................................................................................................................2

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List of table

Table 1.0 cost of project…………………………………………………..……18

Table 1.1 mode of finance……………………………………………..……….18

Table 1.2cost of production……………………………………………………18

Table 1.3 operating cost………………………………………………………..19

Table 1.4 working capital requirement…………………………………….….20

Table 1.5 Pro forma cash flow…………………………………………………21

Table 1.6 Projected income statement……………………………………..….22

Table 1.7 Projected Balance Sheet ……………………………………………23

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List of graphs

Graph 2.1Management structure ………………………………………………11

Graph 3.1Organization layout ………………………………………….12

Graph 3.2 Production process with flow chart …………………………14

Graph 4.1 competitor analysis…………………………………………. 16

Graph 4.2 distribution channel………………………………………….16

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 Chapter 01: Introduction of the business

1.1 General Description of the Business

“Drink up fruit juice” is a juice producing and supply organization. Like Pran, Shezan, Froto, our
firm will produce juice and supply to the local market and will gradually expand production and
supply to the country.

1.2 Background of fruit juice Industry

Juices are made by extracting or squeezing out the natural liquid from fruits and vegetables. Juice
is most commonly consumed as a beverage or otherwise used to add flavor to food or other
beverages. With the invention of pasteurization, it has become possible to preserve food without
fermentation (the method used to make wine), and as such, juice has since emerged as a popular
beverage choice with many natural juice brands entering the market. Research from the UN Food
and Agricultural Organization suggests that the total world production of citrus fruit juices in
2012 was 12,840,318 tons, with the largest consumers of fruit juice per capita being New Zealand
and Colombia.
The earliest evidence of juice production are groups of grape pits that date back to 8000 BCE,
however it is impossible to know whether these grapes were used to produce juice or wine. The
first regularly produced juice was lemonade, which emerged in 16th century Italy as an import
after its conception in the Middle East. Soon to follow was orange juice, which originated in the
17th century. With the link between citrus fruits and the prevention of scurvy made by James
Lind, citrus-based juice became mandatory on all Ocean-bound British ships in accordance with
the Merchant Shipping Act of 1867.
The first pasteurization method for juice was invented in 1869 by the dentist Thomas B. Welch,
allowing for the juice to be stored, without it being fermented into alcohol. Welch’s method
involved filtering squeezed grape juice into bottles, sealing them with cork and wax, before
placing them in boiling water to kill off the yeast responsible for fermentation. He since became a
still drink manufacturer, selling this new natural juice brand product as “Dr. Welch’s
Unfermented Wine”. Nowadays, juice plays a far more important role in the market due to its
great taste and health benefits, and as a result, there is much Campion in the juice industry.
However, with the help of Gat Foods and their innovative beverage bases and ingredients, still
juice manufacturers can make their natural juice brands stand out from other juice suppliers with a
superior product that better tastes and natural. 

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1.3 Company Background

1.3.1 Our vision is to be the preferred trademark and supplier of quality fruit juice and related

products in Bangladesh.
1.3.2 Our mission is to strive to:

 ensure the utilization of high-quality and cost-effective raw materials

 provide high-quality products through advanced technology, processes and systems
 establish our trademark through innovative marketing
 create customer satisfaction through delivering services and products that exceed customer expectations
 provide equal opportunities in an environment in achieving the vision of the company

1.3.3 Objective
 Profitability.
 Entering into new market.
 To provide high quality product with available price to customer.
 Create job opportunity locally.

1.4 Goal and opportunity of the business

Attract the local market and then produce widely for creating the country demand.

1.5 Uniqueness to the product

Explore a new fruit flavor juice which is not available in local market.

1.6 Milestone

To achieve our goal,

 Want to build a brand image. (goodwill)

 Increase capital and launch another/alternative product (sugar-cane juice)
 Then Capture the country demand with best product to achieve the goal.

2
 Chapter two: Management aspects

2.1 Promoters

There are five members who start the business

Name of promoters Qualification

1.Riaj Uddin Business graduate
2.Md. Moniruzzan Post graduate (Business)
3.Md. Musharof Hossain SSC
4.Yasin Arafat SSC
5.Md. Al-Amin Business graduate

2.2 Shareholding of the owner

Each of the five members paid the equal amount of capital. Each paid 50 lakh Tk. They also have
the same right & ownership to the Business and profit.

3
2.3 Legal forms business

PARTNERSHIP AGREEMENT

This partnership Agreement is made on this the 1st October, 2019. It will be effective from 1 st
January, 2020.

Between

Name Father’s name Address

1.Riaj Uddin Md.Abdul Aziz Village: Barmi,

Upazila: Sreepur,

Dist: Gazipur
2.Md. Moniruzzan Md.Abdul Aziz Village: Barmi,

Upazila: Sreepur,

Dist: Gazipur
3.Md. Musharof Hossain Md.Ismail Hossain Village: Barmi,

Upazila: Sreepur,

Dist: Gazipur
4.Yasin Arafat Md.Majid Mia Village: Barmi,

Upazila: Sreepur,

Dist: Gazipur
5.Md. Al-Amin Abdul Karim Village: : Duljury,

Upazila: Hossainpur,

Dist: Kishoregonj

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This agreement will follow:
1. Name of Business

The parties hereby form a partnership firm under the name of “Drink Up fruit juice”.

2. Type of Business
This is a services type of firm.
3. Place of Business

The registered office of firm will be at Mawna, Sreepur, Gazipur.

4. Term

The Partnership business will continue until the resignation of the agreement. Any need of extra
partner or remove someone for the ultimate virtue can possible through the partnership law and
majority voting/ decision with faith. No partner can withdraw any part of their capital amount
without the mutual agreement with existing partners of the firm.

 5. Capital
Name Amount
1.Riaj Uddin 60,00,000 Tk.
2.Md. Moniruzzan 60,00,000 Tk.
3.Md. Musharof Hossain 60,00,000 Tk.
4.Yasin Arafat 60,00,000 Tk.
5.Md. Al-Amin 60,00,000 Tk.
6. Debt 2,00,00,000 Tk.
Total capital = 5,00,00,000 ( 5 core.)Tk.

If partners decide to increase more capital to the firm, each of the partners may contribute to the
capital again.

6. Profit and Loss

5
The net profit of the partnership shall be divided equally between the partners and the net losses
will be bear equally by them. All liabilities of the firm will mitigate, and managed by all parties.

7. Salaries and Withdrawals

Partners will not receive any salary for services to the firm. Each partner may withdraw a
mutually agreed upon amount from the account.

8. Interest

No interest will be paid on the initial contribution to the capital.

9. Partnership duties and restrictions

The partners will have equal rights and responsibilities in the management of the partnership firm,
and each partner will devote an adequate amount of time to the conduct of the business. Without
consent of the other partner, neither partner shall, on behalf of the partnership, borrow, or lend
money; or make, deliver, or accept any commercial paper; or execute any mortgage, security
agreement, bond, or lease; or purchase or contract to purchase; or sell or contract to sell any
property for or of the partnership other than the type of property bought and sold in the regular
course of its business.

10. Banking

All funds of the firm will be deposited in a bank account in the name of the firm .All withdrawals
from this account are to be made upon checks signed by all partners.

11. Books
Firm’s books will be maintained at the principal office of the partnership. The books shall be kept
on a fiscal year basis, and will be closed and balanced at the end of each fiscal year. Audit of
books and all accounts will be made as of the closing date.
12. Transfer of Shares

6
In the event of death or physical disability of any member, the share or legal right of deceased or
disable partners will be transferred to their legal representatives or legal heirs under the provisions
of common laws in Bangladesh.

13. Non-Compete agreement and confidentiality

Partner of the firm can’t engage in any kind of business similar to this firm. If any partner is
found to be engaged in similar business it shall be considered a breach of this agreement. All
partners are also expected to abstain from disclosing the firm’s internal information to outside the
partnership.

14. Management of Business
The management of the business shall be conducted at the mutual agreement of each partners in
all circumstances. In case of dispute in this matter, the partners will resolve it amicably, either
mutually or in the presence of a mutual 3rd party mediator.
15. Signature

The partners, with the favor of the firm in mind, will mutually decide on the signatory authority of
all legal papers such as Customs Documents, Letter of Credit Documents, and other similar
documents. Only bank transactions are required to have signatures of all partners.

16. Admission of new partner

A new partner may be admitted to the Firm, but only after written approval from all existing
partners. Any new partner is expected to contribute capital to the Firm as agreed by all the
partners.

17. Dispute resolution

All disputes between partners are expected to be resolved amicably, either mutually or in the
presence of a mutual 3rd party mediator.

18. Arbitration

7
If any dispute arises between the partners, which cannot be resolved mutually or by a 3rd Party
mediator, the matter will be referred to Arbitration. An arbitrator will be appointed by each of the
partners under the provisions of THE ARBITRATION ACT, 2001 or any statutory modification
required by the laws of Bangladesh.

19. Governing Law

All questions with respect to the construction or interpretation of this Agreement and the rights,
duties, obligations and liabilities of the parties shall be determined in accordance with the
applicable provisions of the laws of Bangladesh.

20. Dissolution of the Firm

In the event of the Firm’s dissolution, all liabilities are to be paid off and all remaining assets are
to be divided amongst partners as per the Profit and Loss sharing ratio.

IN WITNESS where of the said parties have there to sign on the day, month, years above written.

Witnessed by:   Signed by

Name of promoters Signature
Name of witness Signature
1.Riaj Uddin
1. Md. Deluar Mia
2.Md. Moniruzzan
3.Md. Musharof Hossain
2. Md. Mainul Islam
4.Yasin Arafat
3. Md. Imran Hossain 5.Md. Al-Amin

Trade Licence

Mawna Municipal

8
 Sreepur, Gazipur

This Trade License is issued in favor of the under mentioned Person/Firm for realizing of
imposed tax on Profession, trade and commerce and calling as per Article No. 6 of Mawna
municipal Ideal Tax, 2002 by the power of Section 69 of Mawna municipal Ordinance, 1983
(Ord. XL of 1983). Whose term shall remain valid as mentioned in page 4 & 5. 

1 Name of Owner Riaj Uddin, Md.Moniruzzan, Md.Musharof

. Hossain, Yasin Arafat, Md.Al-Amin
2 Father’s MD.Abdul Aziz, MdAbdul Aziz, MD.Ismail
. Hossain, Md Majid Mia, Abdul Karim;
respectively.
3 Address of the Owner :
.
4 Present ResidingAddress Permanent/Registered Address
.
Village: Barmi, Upazila: Sreepur, Village: Barmi, Upazila: Sreepur,
Dist: Gazipur ( 1St four owner) Dist: Gazipur ( 1St four owner)

Village:Duljury, Post: Hossainpur, Village:Duljury, Post: Hossainpur,

Dist.: Kishoregonj (Md.Al-Amin)
Dist.: Kishoregonj (Md.Al-Amin)

5.         Name of the Business Firm “Drink Up fruit juice”.

6.          Paid Capital: Taka-5, 00,00,000

Address of the Business Firm: Mawna, Sreepur Gazipur.     

Phone & E-Mail (if any):019******42, DrinkUpfruitjuice@gmail.com

8.         Style of Business: Fruit juice manufacturing.

9.         Serial No. of Ideal Tax Schedule, 2002: 38 (Ka) 

9
10.       Trade License /Renewal Fee (Annual): Taka (In figure) 1000/-

            (In word) One thousand taka only.

11.       Signboard Tax (Annual): Taka (In figure) 300/-

            (In word) Three hundred taka only.

12.       Issued Callan: Book Number: 0265975 

           All dues has been received from the license Holder through various Receipt

           No: 2545762 Dated: 01.10.2019

            (The licensee has been recorded on Page No. 5785 of D.C.R. Book No.3).

SD/- Illegible SD/- Illegible

1/10/19/ 1/10/19
Md. ***** Md. ****
 License & Signboard Supervisor Tax Officer
Mawna, Sreepur Gazipur Mawna, Sreepur Gazipur

10
2.4 Management Structure:

Top Management

Production Marketing
manager manager

Employees Employees

Graph 2.1management structure

2.5 Management Team :

1. Riaj Uddin
2. Md. Musharof Hossain

2.6 Consultant & Advisor:

1. Pran foods Ltd.

2. Sajeeb group Ltd.

2.7 Banks

Name of Bank: Sonali Bank, & Mutual Trust bank

Name of Account: Courrent accounts
Name of Branch: Mawna, Gazipur
Name of Operator: Md. Yasin Arafat and Md.Moniruzzan

2.8 Auditors

Rahman Rahman Huq & co., KPMG.

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 Chapter Three: Technical aspects

3.1 Layout of the organization and structure of building

Graph 3.1Organization layout

3.2 Production technology

Automated machineries

1. Washer
2. Fruit crusher
3. Pulping machine
4. Packing machine
5. Generator
6. Others equipment

3.3 Utilities

1. Electricity from near Supply zone (rent).

2. Gas (rent).
3. Water by own with submersible pump.

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3.4 Equipment

1. Washer
2. Fruit crusher
3. Pulping machine
4. Packing machine
5. Generator
6. Others equipment
7. Buildings and plants

3.5 Communication technology

1. On line order
E-mail order: DrinkUpfruitjuice@gmail.com

Phone: 019******42

Facebook page: Drink up fruit juice.

3.6 Location of production and distribution

Our fruit juice will produce in Mawna only, And our distribution target area is Gazipur district. It
will be increased with demand and production ratio increase.

3.7 Product

Our primary Product will be Pineapple juice. After a few years we will launch a new product
Sugar-cane juice.

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3.8 Production process with flow chart

Fresh pineapple Washing,sorting Brush washer

Evaporator pineapple Pulp Extractor

UHT sterilizer Filling & bottling packing &Final product

Graph 3.2 Production process with flow chart

3.9 Raw material

We will collect our pineapple direct from Tangail, Madhuour farmers for cost efficiency. And
other materials (bottle) will be supplied byWintime trading Ltd, in Bangladesh

3.10 Research and development

Our research tear will engaged with new technology, Packing brand, quality and new product. A
few years later we wants to launch a new flavor with Sugar-cane juice.

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 Chapter Four: Marketing Aspects

4.1 Current market situation of juice product

The global fruit juice market reached a volume of 45.4 Billion Liters in 2018, registering a CAGR
of around 2% during 2011-2018. The market is further projected to reach a volume of 50.6 Billion
Litres by 2024. Fruit juice refers to a non-fermented beverage which is obtained by mechanically
squeezing or macerating fruits. Different types of fruit juice offer varied health benefits, for
instance, avocado juice boosts natural energy in the body; watermelon juice keeps the body
hydrated and improves metabolism; papaya juice caters healthy digestion; lemon juice fights viral
infections; and pineapple juice reduces cholesterol levels. This, coupled with the refreshing taste
and longer shelf-life of fruit juice, makes it one of the most widely consumed beverages across
the globe.

4.2 SWOT analysis

Weakness
Strength
 No experience
 Easy availability of pineapple.  Lack of huge Capital
 Local demand  Promotional expenses
 Easy transport near highway

Opportunity Threats

 Huge customer  Many competitors

 New flavor  Pricing of product
 Customer taste changing  Difficult to promote in rural area
 Low cost of production


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4.3 Competitor analysis

Graph 4.1 competitor analysis

4.4product mix/ product line

 Pineapple juice only but near future we are willing to launch sugar-cane juice.

4.5 Distribution channel

Drink Up fruit juice (Firm)

Retailer/Super store

Consumer

Graph 4.2 distribution channel

4.6 Cost policy

For the cost efficiency firm will collect the material (pineapple) directly from the producer
without intermediary. Firm will also minimize the cost supplying without wholesaler distribution

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4.7 Pricing policy

As the firm has an objective to stay in the market as long as possible with this business, it has
adopted the preferable price policy for low and middle class people.
Considering consumer satisfaction, markets demand etc. the company follows the prices of juice
pack is "Cost-pricing" strategy. The pricing strategy is very specific and straight according to
present market situation. Pricing decision is made through the discussion among the Managing
Directors. It’s the consuming price for the customer.

Size Buy/Sell

Bottle of 125ml BDT 12

Bottle of 250 ml BDT 22
Bottle of 500ml BDT 40

4.8 Store location

The maximum stock will be 15% units in the firm’s store. Store house will set inside the firm.

4.9 Promotion strategy

Promotion will be made through

 Online page
 Local dish (TV) channel
 Customer visit
 Personal selling

4.10 Target market & market segmentation

Target market:
 School going children, middle and old age people.
 Middle and lower income people.
Market Segmentation

Market will be segmented on the basis of following way:

 Age ( all age people including school going child)

 Income (all class of people specially middle and low income people.)
 Location ( Local area people )

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 Chapter Five: Financial aspects

5.1 Cost of Project

Sl. Particulars Taka

01 Machineries 2,00,00,000 (cr.)

02 Land with lease 60,00,000 (lakh)
03 Building 1,40,00,000 (cr.)
Total 4,00,00,000 (cr.)
Table 1.0 cost of project

5.2 Mode of Finance

Particulars Taka

Equity (60,00,000⤫5) 3,00,00,000 (cr.)

Debt 2,00,00,000 (cr.)

Total 5,00,00,000 (cr.)

Table 1.1 mode of finance

5.3 Cost of production

Raw material cost per litre & per month: (Per month 1,00,000 units/litre will produce)

Particulars (Per litre cost ⤫ monthly units ) TK

Raw materials (including 25×1,00,000 units 25,00,000

bottle)
Labor cost 4×1,00,000 units 4,00,000
Overhead cost & utility 8⤫1,00,000 units 8,00,000
Packing cost 2.30⤫1,00,000 units 2,30,000
Total (39.30⤫1,00,000) 39,30,000
Table 1.2cost of production

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  Per unit production cost juice = (39,30,000/1,00,000)
= Tk.39.30
 Annual production of juice = (1,00,000×12)

= 12,00,000 units/litre

5.4 Operating cost

Operating cost for production of pineapple juice per month:

Particulars TK
Salary 14,00,000
Utilities 1,00,000
Depreciation (30,00,000/12) 2,50,000
Interest expense (24,00,000/12) 2,00,000
Rent for lease (240,000/12) 20,000
Selling & Administrative cost 1,00,000
Total operating cost 20,70,000
Table 1.3 operating cost

Note:

1. Depreciation on machine & building and land lease 7.5% per year.

2. Interest rate is 12% per annum.

3. Rent for land lease Tk. 2,40,000 per annum.

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5.5 Working capital requirement

Drink up fruit juice

Working capital requirement (monthly)

Particulars Calculation TK
( Raw material × RCP) (1,00,000 ×39.30 ×20) 2,18,334
Raw material=
360 360
(cost of goods sold × WIPCP) (1,00,000 ×39.30 ×5) 54,584
Working process =
360 360
(cost of goods sold × A / RCP) (1,00,000 ×70 ×30) 5,83,334
Account Receivable =
360 360
Cash 20,00,000
Total Assets ‘A’ 28,56,252
Account Payable = (1,00,000 ×39.30 ×35) 3,82,084
( Raw meterial consumed × A/ PCP) 360
360
( Factory overhead ×lag time) (1,00,000 ×8 ×10) 22,223
Factory overhead =
360 360
Selling & administrative overhead = (1,00,000 ×10) 2,778
( Sellin∧administrative overhead ×lag time) 360
360
Total liabilities ‘B’ 4,07,085

Working Capital Requirement (A-B) 24,49,168

Table 1.4 working capital requirement

Note:

1. Raw material period 20 days.

2. Working process period 5 days.
3. Account Receivable held in 30 days.
4. Account Payable lag time 35 days.

20
 5. Factory overhead and Selling & administrative lag time both 10 days.

5.6 Projected cash flow

Drink up fruit juice

Pro forma
Particulars 2020 2021 2022
cash flow
Equity 3,00,00,000 3,00,00,000 3,00,00,000
analysis (for 3
years)
debt 2,00,00,000 2,00,00,000 2,00,00,000

Total cash inflow 5,00,00,000 5,00,00,000 5,00,00,000

Assets purchase 4,00,00,000 4,00,00,000 4,00,00,000
Operating expanses 20,70,000 23,80,500 27,37,575
Total cash outflow 4,20,70,000 4,23,80,500 4,27,37,575
Cash balance 79,30,000 76,19,500 72,62,425

Table 1.5 Pro forma cash flow

Note:

Operating cost increase at 15% each next year.

21
5.7 Projected income statement

Drink up fruit juice

Projected income statement (3 years)

Particulars 2020 Increase% 2021 Increase% 2022

Revenue(12,00,000×70) 8,40,00,000 × 1.15 9,66,00,000 × 1.15 11,10,90,000

Less :cost of goods sold 4,71,60,000 × 1.15 5,42,34,000 × 1.15 6,23,69,100

(39,30,000⤫12)
Gross profit 3,68,40,000 4,23,66,000 4,87,20,900

less: operating cost 2,48,40,000 × 1.15 2,85,66,000 × 1.15 3,28,50,900

Net profit 1,20,00,000 1,38,00,000 1,58,70,000

Add: depreciation 30,00,000 30,00,000 30,00,000

Cash flow 1,50,00,000 1,68,00,000 1,88,70,000

Table 1.6 Projected income statement

Note:

Cost and Revenue will increase at 15% each year.

Yearly unit 100000*12 =12,00,000

22
5.8 Projected Balance Sheet

Drink up fruit juice

Projected Balance Sheet

Particulars 2020 Increase 2021 Increase 2022

15% 15%
Cash 79,30,000 76,19,500 72,62,425
Accounts receivable 70,00,008 × 1.15 80,50,009 ×1.15 92,57,510
Total current asset 1,49,30,008 1,56,69,509 1,65,19,935
Land 60,00,000 60,00,000 60,00,000
Machineries 2,00,00,000 2,00,00,000 2,00,00,000
Building 1,40,00,000 1,40,00,000 1,40,00,000
Investment 1,16,55,000 1,34,03,250 1,54,13,738
Total fixed assets 4,00,00,000 4,00,00,000 4,00,00,000
Total assets 6,65,85,008 6,90,72,759 7,19,33,673
Accounts payable 45,85,008 × 1.15 52,72,759 × 1.15 60,63,673
/ Total current liabilities
Debt /long term liabilities 2,00,00,000 2,00,00,000 2,00,00,000
Paid up capital 3,00,00,000 3,00,00,000 3,00,00,000
Retained earnings 1,20,00,000 1,38,00,000 1,58,70,000
Equity 4,20,00,000 4,38,00,000 4,58,70,000
Total equity and liabilities 6,65,85,008 6,90,72,759 7,19,33,673

Table 1.7 Projected Balance Sheet

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5.9 Capital Budgeting

In capital budgeting we calculate our company’s NPV& IRR.

NPV Calculation In 8% Interest

We know,

n
CF t
NPV = ∑ -CF t
i=1 (1+i)t

[ ]
−n
1−(1+i)
Or = CF t -CF 0
i

[ ]
−8
1−(1+.08)
= 75,00,000 - 4, 00, 00,000
.08

= 4, 30, 99,793 - 4, 00, 00,000

= 30,99, 793

NPV Calculation In 12% Interest

NPV = CF t [ 1−(1+i)−n CF
i
- 0 ]
= 75,00,000
.12 [
1−(1+.12)−8
-4, 00, 00,000 ]
= 3,72,57,298 – 4,00,00,000

= - 27,42,701

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 NPV at lower interest rate
IRR = lower interest rate + (higher rate-
( NPV at lower interest rate−NPV at higher interest rate)
lower rate)

30,99,793
=.08 +
¿¿
(.12-.08)
= .08+ .02122

= 10.12%
Note:

1. Project maturity 8 years

2. Interest rate is 8%

3. Annual cash flow TK 75,00,000

5.10 Break Even Analysis

Monthly Break Even Analysis

We know,

¿ cost
BEP =
( per unit selling price−per unit variable cost)

18,70,000
=
(70−39.30)

= 60,912 units

BEP = BEP units × Selling price

=60,912 ×70

= 42,63,840 TK.
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Note:

1. Fixed cost include: salary, depreciation, interest and rent for lease cost .

2. Selling and administration cost consider as variable cost & selling price per litre TK.70.

Chapter Six: Socio-Economic aspects

6.1 Social responsibilities

Our Company aims to become a recognized Fruit juice firm, strongly committed to producing
high quality food products that are nutritious, and safe.

It is the Company’s policy to conduct green business that does not pose environmental impacts on
communities and sustainably manages production resources to ensure food security. The
Company focuses on personnel development, applying CSR standards, good governance, and risk
management to guarantee a strong business that enjoys sustainable growth and is able to compete
at the national level.

The Company includes CSR as one of its strategies for sustainable growth. It is determined to
conduct maximizing benefits and positive impacts on all stakeholders. This mean human rights,
labor rights, fair business practices, producing high-quality and safe products for consumers,
creating and spreading innovation, community and social development, environmental
management, providing a safe and pleasant work environment for its personnel, and abiding by
laws and regulations regarding safety, health, and environment. Furthermore, the Company
fosters the conscience of local and overseas personnel to value CSR by adhering to three
philosophies that focus on the interests of the country, the people, and the Company.

6.2 Business Ethics

 Company will ensure labor rights, fair business practices, producing high-quality and safe
products for consumers,
 Company will provide best quality with faith
 Our company will follow the standard of food given by BSTI
 Company will abstain from all unethical task
 All the law will be maintain by our company very strictly

6.3 Contribution to National Economy

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Our company will contribute to the national economy through proper utilization of local
resources, creating employee opportunity for local people, developing the living standard of
consumer through quality product and reachable price. It will also contribute through agriculture
and rural development because of using local material and employee opportunity.

Chapter Seven: Environmental aspects

7.1 Responsibilities towards environment

Company will manage production without any wastage and harmful chemical throw in local land
or water. Company always aware of environment pollution and will avoid pollution carefully. we
are focused on driving energy efficiency, Water efficiency etc.

7.2Evrironment impact of project and managing the task

Water management: Water is a key element for our industry, representing some 90% of a soft
drink. Water efficiency, conservation and protection are a focus. Manufacturing operations aim to
optimize water use and treat wastewater appropriately.

Packaging: Packaging is also a key resource for the sector and we have taken a number of steps
to introduce sustainable packaging policies as well as effective systems for reduction, recovery,
recycling and reuse and is committed to the use of 100% recycled plastic.

Energy use: Across all of our industry energy is an important issue and we are focused on driving
energy efficiency, conservation and reduction wherever possible. Our industry is part of a wider
supply chain and we work closely with stakeholders and their partners to contribute jointly to a
better environment.

Waste reduction: We will work to manage resources and reduce waste throughout our
production processes and distribution activities. Ours is a primarily local industry, sourced locally
and production is situated relatively close to the markets and consumers it serves, resulting in low

27
food miles. Innovation and investment in the area of environmental sustainability will continue to
be a key priority for the industry in the years ahead.

7.3 Save the environment action

We want to make fertilizer from wastage which will save environment. Our firm will plant at least
200 tree plans around its side for better environment.

Conclusion

To further improve the production, “Drink up” fruit juices can be extracted from fresh fruits to
compare its vitamin C content with the commercial fruit juice. If “Drink up” fruit juices are used,
they must be filter to remove any residue that may affect the result of the experiment. From this
experiment, we found that iodine solution can be used to determine the concentration of Vitamin C
in fruit juices. we are going to introduce a new flavor juice ,after creating a brand image we will go
for others production like Sugar-cane, mango or orange juice if any problem arise or market
demand arise for the other flavor using the same technology. So, no need to change the technology
or machineries. We can use the same machineries and technology.

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 Bibliography

Website:

www.triowin.com

www.wikepedia.com

www.slideshare.com

www.pranfoodltd.com

www.linkin.com

www.sajeebgroupbd.com

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Appendix

Fruit Crusher
DRINK UP

Sample of bottle

Pulping machine
Washing and carrier

30
Bottling and Packing machine
Extractor

31