GOHIDA

INDUSTRIAL PLC

Business Plan
2022/23 G.C

Contents
1. Executive Summary.............................................................................................................................3
2. Background Information......................................................................................................................3
3. Business Licence And Legal Registeration..........................................................................................4
4. Business Vision, Mission, Value And Objectives................................................................................5
5. Strategy................................................................................................................................................6
6. Products...............................................................................................................................................7
7. Industry Analysis.................................................................................................................................7
8. Market Analysis...................................................................................................................................8
9. Supply.................................................................................................................................................8
10. Demand...........................................................................................................................................9
11. Competition Analysis....................................................................................................................10
12. Management Profile.......................................................................................................................11
13. Human Resource............................................................................................................................12
14. Financial Synopsis...............................................................................................................................13
14.1. Sales Plan.....................................................................................................................................13
14.2. Purchase Plan................................................................................................................................13
14.3 Selling And Distribution Costs Plan..............................................................................................14
14.4. General And Administration Costs Plan.......................................................................................15
14.1.1 Projected Profit/ Loss Statement For 2022/23............................................................................16
14.1.2 Projected Financial Position For 2022/23...............................................................................17
14.1.3 Projected Statement Of Cash Flow For 2022/23.....................................................................19
15. Sources Of Finance........................................................................................................................20
16. Company Performance.......................................................................................................................20
1.Executive Summary
The need for business plan in our business dealing is becoming very imperative in today’s
dynamic and complex marketplace. As everyone knows, business plan is one of the integral steps
in fulfilling one’s business targets. Accordingly, this plan is developed with the intent of
ensuring effective preparation for the implementation and positioning of our programs and allied
activities that best achieve our long term and short-term goals. It will assist our management
team in setting the long-term directions and policies of our company and in making decisions on
short term priorities and resource allocations. It will also assist to develop and implement
programs by providing guidance for multiyear program plans and budgets.

In the same way, this business plan is developed to portray the business potentials of our export
company as well as provide relevant and pertinent information to any concerned stakeholders.
Initially, it tries to describe the prime cornerstones of our company and then it exhaustively
examines the crucial considerations which must be addressed for the success of our company as
a whole. It mainly explores fundamental issues such as background of our company since its
formation, industry analysis, product plans, competition analysis, market description,
management team overview, completed and integrated financial planning and other related issues
under them.

This business plan is, therefore, developed with the intention of guiding our ever-rising export
operations Gohida Industrial PLC is established as private business sector that prepares and
exports quality Coffee grown in Ethiopia to international market.

2. BACKGROUND INFORMATION
Our company Gohida Industrial PLC is a private company engaged in export of coffee. Gohida
Industrial PLC was established in 2012 EC by two shareholders Ato Adane Gossaye and Ato
Shewangizaw Gossaye as per the commercial law of Ethiopia with a paid-up capital of birr
3,000,000.00 and registered by the concerned government organ to undertake international and
domestic business in Ethiopia Ato Shewangizaw Gossaye is the General manager of the
company who is matured, and experienced business man.
 Driven by the business result and rich experienced in the past, we have committed ourselves in
the local coffee supplier and now export of coffee to the international market. We will do our
level best to do an efficient and quality business by employing experienced and committed work
force and visionary management group.

Our company is located in Addis Ababa Nifas Silk-lafto sub city, House NO new/Office No.
309.Our office is a well-equipped one with required modern office furniture and equipment’s.

3. BUSINESS LICENCE AND LEGAL REGISTERATION

 Lines of business: Export of Coffee and tea

 Business License No: LD/AA/14/669/1430979/2012, Addis Ababa City Administration
Trade Bureau.
 Principal registration No: NL/AA/2/0016801/2013 from Addis Ababa City
Administration Trade Bureau.
 Tin No: 0065101627
 Business address: Addis Ababa Nifas Silk-lafto sub city, House NO new/Office No. 309.
 Contact address: telephone No /+251-911-00-90-50/ +251-917-55-21-31

Our company will do its business with various commercial stake holders –local trading
organization, private entities and foreign buyers. It will gain immense experience in the
export business, using the rich past experience of its shareholders in the domestic trade
and service industry, and in export of agricultural items to the international market.

We strive to meet our trade obligation by timely delivering the export commodities in the
required quality and quantity as per the contractual terms and condition .as a result, we
continuously receive adequate purchase order from the several customers mainly from
our own long-time clients. There always exists huge market demand, unless we encounter
constraints in local commodity supply and working capital. In reality, our experience and
the actual market history show as that there is always as excess demand in the foreign
market for exportable agricultural product of Ethiopia.
4. BUSINESS VISION, MISSION, VALUE AND OBJECTIVES

Vision: We are dedicated to become well recognized and competitive company in export
business through providing outstanding customer service via committed and professional team.

Mission: Our mission is to continually expand our successful line of products by providing the
best quality and reliable products that excel our customers’ expectations; keep our margins as
high as possible with continual growth in our market share and work competitively and
profitably in all businesses that we deal by adopting and utilizing modern technology and well-
trained personnel in socially responsible manner.

Values: We want to achieve the vision and mission of our company by providing an outstanding
customer service and care, offering quality products and services at reasonable price and
maintain professional standards.

Objectives: The main objective of our company is to achieve our sales, gross margins and net
profit forecasts for the coming three years, as outlines in this business plan. Specifically, we will
strive to achieve the following objectives:

 To export 166 MT Washed Coffee in the year 2022/23

 To export 96 MT Unwashed Coffee in the year 2022/23

The key elements for the business success include

 Firm and long-lasting relationship with diverse customer and supplier in different
countries, both in domestic and international level.
 Forming a valid and enforcing contractual agreement
 Effective utilization of state-of-the-art machinery, and information and
communication technology for quality and speedy operation.
 Visionary and committed management.
 Skilled, experienced and motivated work force and
  Lastly, modern strategic management, marketing and operational management
system.

The key business competence of our company are quality product, timely delivery, skilled and
experienced work force and visionary management. All this help our company to become
successful in or export business.

5. Strategy
Our overall strategy aimed at developing quality partnership with customers, suppliers, brokers
and other service agents with whom we continually operate. Exporting the highest quality
products that are preferable in the international market to meet the needs and demand of our
customers is a primary concern of us with affordable prices. We work jointly with our partners to
exceed expectation of every client of our company, be a customer or supplier by offering
outstanding quality products and best service to them.

For this end, we will continually increase our flexibility and improve our efficiency to readily
expedite our domestic and international transaction. We will all strive to increase our
productivity, sales and profitability through teamwork, commitment and dedication. By and large
we dig out the way our clients receive the most effective and valuable satisfaction and hence
continue their reputation with us.

Our entrepreneurial services will continue to grow in the local as well as international markets.
We intend to further expand our export market on our main agricultural products such as coffee,
sesame seeds, red bean, white bean, green mung and chick peas so that our exerted effort will
contribute for realization of our national aim pertaining to foreign currency generation.

Our main strategy is to effectively communicate the unique and desired attributes of our Coffee
products to larger segments of the USA, Asian, European and Middle East. It is therefore
important that we effectively communicate the unique aspects which make it ideally suited for a
niche market.

The unique aspects of our products include superior product selection and preparation, quality
assurance, and efficient distribution. These are things we have done since we started doing
 business. The tactics we will sue to communicate these strengths include personal selling,
targeted print advertising, and improved communication capabilities via information system
improvements and World Wide Web sites.

6. Products
We are fully dedicated for preparation and export of Coffee. Our company will specialize in
processing and exporting some kinds of washed and unwashed coffees such as Jimma, Limmu
and others.

We stand by our product till it reaches our esteemed customers. Our untiring effort to provide
best quality products at most reasonable prices and on-time delivery will put us ahead of our
competitors and will bring us to be the most trusted supplier of coffee. We will build confidence
in our buyers, by providing them quality products at competitive price and best quality.

7. Industry Analysis
Ethiopian economy is dominated by agriculture that accounts for about 50 percent of total Gross
Domestic Product (GDP), 90 percent of export and almost 80 percent of total employment. Of
course, agriculture is supplemented by manufacturing, mining, trade, tourism, construction and
service that have a combined share of about 50 percent of GDP and coffee is more than 10% of
the GDP.

Endowed with varied agro ecological zones and diversified natural resources, Ethiopia has been
known as the home land and domestication of several crop plants. Coffee have been cultivated
and consumed in large quantities in Ethiopia for many years. Although the availability of coffee
has never been in surplus in the subsistence farming community, recently it is observed that the
production and supply of them is increasing due to the ever-rising demand both in local and
international markets.

The economic liberalization process being undertaken in the country and the strong commitment
of government to create a supportive environment for the development of the private sector have
positively affected export growth of Coffee in the few recent periods.
 Ethiopia has an attractive portfolio of high value specialty coffee for export market. It is among
the top six producing countries for coffee. Coffee is the leading item in the export market, other
agricultural products mainly oilseeds and pulses are being emerged and exported at an increasing
rate since the past few years. Most surprisingly, Ethiopian Ministry of Agriculture and Rural
Development revealed that oilseed and pulse export accounts the second largest share of export
market in Ethiopia.

The United States, Asia, European, Middle East States and neighboring African countries
comprise the major markets for Ethiopia’s coffee exports. Saudi Arabia, United States, Germany,
Japan, Belgium and other countries constitute the major market for Ethiopia’s coffee exports.

8. Market Analysis
Ethiopia which is the Africa’s biggest coffee producer is also the world’s fifth largest exporter of
coffee and relied on its premium grade coffee for hard currency inflows. Coffee products are
largest source of Ethiopia’s foreign currency contributing significantly for the achievement of the
country’s high economic growth over the last decades.

However, currently coffee’s historical place in the Ethiopian economy is being replaced by oil
seeds, particularly sesame seeds. According to the information obtained from Ministry of
Agricultural and Rural Development, oil seed exports overtook coffee as Ethiopia’s biggest
foreign exchange earner in the year 2020/21. It received 927 million American dollars from sale
of coffee in the year ended on June 7, 2021 and the country is now planning to earn 1.2 billion
US dollars during the current 2021/2.

9. Supply
The supply of coffee in the international market is basically depends upon the level of production
at various countries in the world. The total global production of coffee sums up to around 10.4
million tons annually, Brazil being the highest coffee producer. The production of the coffee is
somewhat concentrated in the South America, Asia and African continents.
 The production as well as consumption of coffee has been in the uptrend since the last decade
and both the figures are rising steadily. World trade figures in coffee are greater than 10 million
tons annually. As already mentioned, that the production of this condiment is concentrated in a
few countries, it has resulted in for the concentrated exports also. Only the major producing
countries dominate coffee exports and the major exporters and their expected production level is
listed below.

Country Production (in MT)

Brazil 2,680,515.00
Colombia 754,376.00
Indonesia 668,677
Honduras 475,042
Ethiopia 471,247
Others 5,350,143
Total 10,400,000.00

10. Demand
With regard to demand, though it is very difficult to accurately put it in figure, it is possible to
predict the possible demand of coffee on the basis of historical performance. From past
experience, the demand of coffee in the international market is continually rising. Accordingly,
we expect the same trend in the coming years too.

A large number of countries import coffee to fulfill their domestic consumption demand. United
States, Germany, France, Italy, Canada, Netherlands, Japan, Spain, United Kingdom and
Switzerland are the top ten coffee importer countries respectively.

In fact, the ever-rising number of independent coffee importers of diverse countries is an

indicator of the improved demand for such commodities. Within the larger coffee market, our
target market encompasses importers who have strong alliance and strategic partnership with
Ethiopia particularly from North America, Europe and Asian countries.
11. Competition Analysis
Competition among exporting companies and countries, as well as among coffee and their
products, is foreseen to intensify because of abundant supplies and limited growth in
consumption worldwide. Particularly, United States and Germany exporters are the principal
competition drivers in the international market. Technological improvements in processing
should further intensify the magnitude of competition in a variety of ways and consequently
reinforce the influence of price in the choice of coffee by purchasers. In the coffee market, prices
fluctuate every day and expectations are not always correct. Not only international competition
but also domestic competition is tough. There are more than one hundred exporters of coffee in
Ethiopia. To mention a few, the following are the major ones:

 Horra Trading
 Kerchanshe Trading PLC
 Aleta Land Coffee
 Addis Exporter
 Mullege Coffee Exporters
 Cabey PLC

In order to bit such stiff competition, delivery on time is one of the prime concerns of us to all
customers. Hence, whatever the order size is we can deliver promptly and on time and assure the
customer’s satisfaction by:

 Meeting their delivery terms;

 Fulfilling their business needs;
 Securing their future purchases; and
 Establishing confidence in the source of supply.

Moreover, our export products are properly labeled once they have been accurately chosen and
prepared with the highest quality standards. We have dominantly involved in the production of
first-class coffee with the best quality and purity in order to fulfill the requirements of our clients
and consumers, by means of a continuous effort of improvement.
 We strived to offer purely coffee that has worldwide acceptance and high demand. Our coffee is
priced up competitively and reasonably with similar products. Our customers are willing to pay
more for our products because they are familiar with us and trust in the quality of our coffee.
This is the result of our strategic alliance and close relationship with them in the marketplace.
Top quality products and guaranteed continuity of supply give our company its enviable position
as one of the industry’s competitive suppliers.

12. MANAGEMENT PROFILE

The enterprise is managed by Ato Shewangizaw Gossaye, who had been engaged in different
types of business activities in the past. As a general manager of the company, he is responsible
for strategic issues and the overall affairs of the business. he is interested to deal with the
company’s overall performance, operation as well as major financial decisions.

As the general manager of the company, Ato Shewangizaw Gossaye is directly in the charge for
its operations, profits, projects, Expansion and at related matters.

He is responsible for the overall management of the company. All departmental heads are
indirect touch with his. His exposure and hands on experience in export operation has given
teething edge in operation the export business. Moreover, we will build staffs and management
members that are distinguished by their efficient and functional expertise with their hands-on
experience, thereby ensuring that our clients, suppliers and customers, receive the most effective
and valuable satisfaction at every level.

The company is fully accountable to its stakeholders’ interest – customers, owner, business
partners, employees and the society as a whole. We have proven business development skills as
well as experience in managing diversified types of business for the last years.

To accomplish our business objectives, we have the required number of staff members for
administrative as well as operational positions.

The General Manager, Ato Shewangizaw Gossaye is responsible for leading our entire company
in right strategic direction to position it as preferred export company. He provides executive
guidance to all activities and operations of the company. He has a successful track record of
 business for the last fifty years. He emphasizes on major partnerships and international growth.
Creating new business avenues for our company and appropriate technological investments are
foremost on his agenda.

The company will be organized into four main functional departments: Export Department,
Operations Department, Logistics and Technical Department, and Finance and Administration
Department. Here under will be the organizational structure of our company:

General
Manager

Executive
Secretary

Duty General
Mager

Purchase and Finance and

Operations Export
Logistics Administration
Department Department
Department Department

13. HUMAN RESOURCE

The business will have the following main management team members

Job title Quantity Salary per month Salary per year

General manager 1 10,000.00 120,000.00
Executive Secretary 1 5,000.00 60,000.00
Deputy General Manager 1 9,000.00 108,000.00
Operational manager 1 5,000.00 60,000.00
Export Manager 1 6,000.00 72,000.00
Purchaser 1 6,000.00 72,000.00
Finance and admin manager 1 7,000.00 84,000.00
Total 7 48,000.00 576,000.00
14. Financial Synopsis
14.1. Sales Plan

We have noticed the rise in demand for oil seeds and pulses during the past successive years as
the need for those products in our target market is getting escalated as well as imported material
have shown a fabulous turnover with greater customers’ feedback on our products.

We plan to extraordinarily expand our export potential in the coming years as indicated below:

Washed Coffee:

Units
Expected Expected
to be Total Expected Total Expected
Year Price per Exchange
Sold Sales (USD) Sales (Birr)
MT (USD) Rate
(MT)
2022/23 116 5,731.00 664,796.00 49.53 32,927,345.88

Unwashed Coffee:

Units
Expected Expected
to be Total Expected Total Expected
Year Price per Exchange
Sold Sales (USD) Sales (Birr)
MT (USD) Rate
(MT)
2022/23 96 4,078.51 391,536.96 49.53 19,392,825.63

14.2. Purchase Plan

To meet the above stipulated sales levels during the periods under review, the company has a
plan to purchase sesame seeds as described below.
Washed Coffee:

Units to be Expected Price

Total Expected Purchase
Year Purchased per Quintal
(Birr)
(Quintals) (Birr)
2022/23 1,392.00 19,500.00 27,144,000.00

Unwashed Coffee:

Units to be Expected Price

Total Expected Purchase
Year Purchased per Quintal
(Birr)
(Quintals) (Birr)
2022/23 1,056.00 15,250.00 16,104,000.00

14.3 Selling and Distribution Costs Plan

Basic assumption in forecasting our selling and distribution costs is the following:

Expected Costs per MT (Birr)

Items
2022/23
Transport 700.00
Transit 400.00
Cleaning 120.00
Packing 150.00
Loading and unloading 100.00
Quality and Standards 50.00
Commission 55.00
Total 1575
14.4. General and Administration Costs Plan
Expected Costs per Year (Birr)
Items
2022/23
Salary and Benefits 576,000.00
Rent 96,000.00
Office Supplies 10,000.00
Utilities 12,000.00
Fuel and Lubricants 22,500.00
Repairs and Maintenance 3,500.00
Insurance 20,000.00
Marketing & Communication 60,200.00
Bank Charges 50,000.00
Miscellaneous 15,0000.00
Total 865,200.00
14.1.1 Projected Profit/ loss statement for 2021/22

Revenues
Sales $ 68,939,170.39
Cost Of Sales 60,440,984.49
Gross Profit 8,498,185.90

Expenses
General Expense 865,200.00
Office Rent Expense 28,400.00
Weight Cert, Mezzo, Sport...Etc. 905.74
Cert. Of Origin 206.00
Registration And License Fee 1,013.00
Interest Expense 1,373,058.44
Postal And DHL Service Charge 1,000.00
Depreciation Expense 2,357.10
Bank Service Charge 35.00
Loading/Unloading Expense 198.00
Parking Expense 640.00
Printing, Stationeries & Copy 1,052.18
Miscellaneous Expense 782.61
Penalty Expense 2,121.71
Tax Expense 1,866,364.84
Total Expenses 4,143,334.62
Net Income $4,354,851.28

14.1.2 Projected Financial Position For 2022/23

Assets
Current Assets
Cash At Bank $ 805,563.60
A/R Shewangezaw Gosaye 1,009,983.74
A/R Adane Gosaye 1,617,612.41
Vat Receivable 354,719.91
Vat Not Refunded 14,071.73
Unwashed Coffee 9,928,124.48
Washed Coffee 11,524,856.00
Total Current Assets
25,254,931.87
Property And Equipment
Office Furniture and Fixture 13,111.00
Construction In Progress 858,856.66
Tanker 1,293,913.04
Acc Dep Office Furniture and Fixture (3,682.57)

Total Property and Equipment

2,162,198.13
Other Assets
Advance Payment Akakas Logisti 33,000.00
Total Other Assets
33,000.00

Total Assets
$27,450,130.00
Liabilities And Capital
Current Liabilities
Withholding Payables $ 317,297.36
Profit Tax Payable 1,866,364.84
Interest Payables 1,176,682.08
Commission Payable- Mds 162,878.04
Preshipment Loan A/C ......... 5,253,991.20
Long Term Loan 11,500,000.00
Total Current Liabilities
20,277,213.52
Long-Term Liabilities
Total Long-Term Liabilities
0.00
Total Liabilities
20,277,213.52
Capital
Beginnin Equity (Paid Up Capit 3,000,000.00
Retained Earnings (Change In E (181,934.80)
Net Income 4,354,851.28
Total Capital
7,172,916.48

Total Liabilities & Capital

$27,450,130.00
14.1.3 Projected Statement of Cash Flow For 2022/23

Cash Flows from Operating Activities

$
Net Income 4,354,851.28
4,354,851.28
Adjustments To Reconcile Net
Income To Net Cash Provided
By Operating Activities
Office Furniture and Fixture 2,357.10
Trade Debtors (Foreign Customer) 2,019,967.47
A/R Shewangizaw Gossaye (1,009,983.74)
A/R Adane Gossaye (1,617,612.41)
Vat Receivable (354,719.91)
Vat Not Refunded (14,071.73)
Unwashed Coffee (9,928,124.48)
Washed Coffee (10,850,231.58)
Sundry Creditors (289,249.77)
Withholding Payables 317,297.36
Profit Tax Payable 1,863,463.39
Interest Payables 1,176,682.08
Commission Payable- Mds 162,878.04
Preshipment Loan A/C ......... 5,253,991.20
Long Term Loan 11,500,000.00
Total Adjustments (1,767,356.98)
Net Cash Provided by Operations 2,587,494.30
Cash Flows from Investing Activities
Used For
Advance Payment Akakas Logistics (33,000.00)
Construction In Progress (858,856.66)
Tanker (1,293,913.04)
Net Cash Used in Investing (2,185,769.70)
 Cash Flows from Financing Activities
Proceeds From
Used For
Net Cash Used in Financing 0.00
$
Net Increase <Decrease> In Cash 401,724.60
Summary
$
Cash Balance at End of Period 805,563.60
Cash Balance at Beg of Period (20,365,583.08)
($
Net Increase <Decrease> In Cash 19,560,019.48)

15. Sources of Finance

To accomplish all those targets, we believe that maintaining sound financial position is evident.
However, in order to reach at our sales volume, the company requires additional working capital
fund from lending banks.

To this end, the General Manager, Ato Shewangizaw Gossaye is a man of his words, who keep
his promises to all stakeholders, has long been established a strong working relationship with
different commercial banks in Ethiopia.

Therefore, we expect Birr 11.5 million credit facility from Bank of Abyssinia, which will highly
support us to thrive our business objectives.

16. Company Performance

The company Gohida Industrial PLC is a young company in Export business and earn a foreign
currency of more than $393,000.00 United State Dollars in this pandemic and conflict time.