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Feasibility Study On Palm Oil Distributi PDF
Feasibility Study On Palm Oil Distributi PDF
Feasibility Study On Palm Oil Distributi PDF
ON
PALM OIL DISTRIBUTION BUSINESS
IN
CROSS RIVER STATE
By
ANABA, SYLVESTER ANANI
Feasibility Study on Palm Oil Distribution in Cross River State
Introduction
This feasibility study on palm oil distribution in Cross River State is my
original research and it is based on the survey and thorough research
made by Anaba, Sylvester Anani. The business will be a sole
entrepreneurship business, wholly owned by Anaba, Sylvester Anani.
From the research carried out, it was discovered that the demand for
palm oil in Cross River State is not fully satisfied; though there are
existing palm oil distributing outlets in the state, but oil is supplied on a
small scale by petty traders.
Premium upon the supply gap, and the high demand for palm oil in
Cross River State, I decided to bridge the gap by venturing into this
business so as to meet the high demand of palm oil in Cross River State.
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Feasibility Study on Palm Oil Distribution in Cross River State
Business Description
Palm oil is an economic product. It is in high demand for domestic and
industrial use. It can be used for soap making, creams, lubricants,
medicine, and cooking etc.
This venture is a new firm to be started from the scratch. The firm will
be located in a rented building at Urua-wat market, Calabar. Urua-wat
market is the hub of business activities in Calabar, hence, the best
location for this business.
The necessary equipment that will be used for this business include, oil
drums, funnels, gallons, scoopers, bowls, and basins etc.
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Feasibility Study on Palm Oil Distribution in Cross River State
Due to high interest rate in the commercial banks, the business will
source for finance from micro finance banks, friends and relations.
Market Analysis
Palm oil are sold in drums, gallons of different sizes, kegs, bottles and
cups. The under listed are the current market prices of palm oil:
=N=
Drum of palm oil …………………………………….. 20, 000.00
25 liters of palm oil ………………………………….. 5, 000.00
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Feasibility Study on Palm Oil Distribution in Cross River State
Marketing Plans
Cross River State is our target. The business will kick off in Calabar, and
we will establish our satellite shops at Ugep, Ikom, Ogoja, Obubra and
Ediba.
Since, the business will make use of palm oil retailers, we will directly
lure these retailers with 10% discount, in order to entice them to buy
from us. Marketing letters will be sent to industrial users, and aggressive
follow-ups will be employed.
Operation Plans
The business will require full time labour. The services of purchasing
officers, drivers, warehouse officers, store officers, sales representatives,
security personnel, and accountant will be needed.
Ten trucks will be reserved for the transportation of the product from
point of production to the warehouse. Twenty vehicles will be used for
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Feasibility Study on Palm Oil Distribution in Cross River State
marketing and distribution purposes and two vehicles would be used for
administrative commitments.
Our drums, gallons and bottles will be encrypt with the company’s
name. This is to quickly give us an identification name that would make
us a household name in Cross River State. Our drivers would be given
unique uniforms that would differentiate them from other drivers. Our
vehicles would be painted green and red. The sales representatives will
be seasoned marketers with unequalled marketing skills. This people
will be given a befitting uniform that would portray the company’s
image.
Work resumes every 8’0 clock in the morning and closes 6’0 clock in
the evening. We will open from Mondays to Saturdays every week. Our
workers will be allowed to enjoy public holidays like Christmas, and
Easter breaks. Annual leaves would be granted after one year.
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Feasibility Study on Palm Oil Distribution in Cross River State
Staff appraisal system will be installed. This will help us identify staff
that should be promoted, and amount to be added to their salaries.
Confirmation of appointment will be given to qualified workers
immediately after probation period of 6 months. Staff handbooks, rules
and regulations, identity cards and staff number will be issued after
confirmation of appointment.
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Feasibility Study on Palm Oil Distribution in Cross River State
Staff training and development will be given utmost attention. Each staff
is entitled to at least one training each year. This training will be based
on business needs and field of expertise.
Financial Plans
The initial outlay for starting this business is =N= 15, 000, 000. 00 for
acquiring 250 drums of palm oil product, rent a spacious office space,
warehouse, gallons, trucks, official vehicles, office equipment and
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Feasibility Study on Palm Oil Distribution in Cross River State
1 2 3 4 5
Sales 30, 000 45, 000 67,500 101, 250 151, 875
Cost of sales (14, 000) (19, 600) (27, 440) (38, 416) (53, 782)
Gross Profit 16, 000 25, 400 40, 060 62, 834 98, 093
Operating Exp. (4, 500) (5, 400) (6, 480) (7, 776) (9, 331)
PBT 11, 500 20, 000 33, 580 55, 058 88, 762
Tax (3, 450) (6, 000) (10, 074) (16, 517) (26, 629)
PAT 8, 050 14, 000 23, 506 38, 541 62, 133
Analysis:
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Feasibility Study on Palm Oil Distribution in Cross River State
N/B:
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Feasibility Study on Palm Oil Distribution in Cross River State
Assumption:
Interest rate was assumed at 10%
Conclusion
From the survey and projections carried out, we can see that the project
is a viable one and is worthwhile, hence it should be undertaken. The
project has the ability to payback within one year six months, and has
and NPV of =N=87, 452.56.
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Feasibility Study on Palm Oil Distribution in Cross River State
Reference:
Okorie Ifeoma (2012): Business Plan on the establishment of Poultry
Farm/Feasibility Study.
www.investopedia.com. Definition of Business Plan.
www.Wikipedia.org/feasibilitystudy
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