BUSINESS

PLAN

GAB Refrigeration
Manufacturing,
Industrial & Commercial Registration. orodaretoyin11@gmail.com.
Private Company. +2349064442339
Expanding. Lagos, Nigeria
B to B
Indigenous.

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 DISCLAIMER

BC&A has prepared the plan from information provided by and approved by the
client (here after, the “Company”). This business plan is the property of the company
and is considered to be strictly confidential and is not intended for circulation or
publication. It contains information intended only for the person to whom it is
transmitted. With receipt of this plan, recipient acknowledges and agrees that:

1. In the event recipient does not wish to pursue this matter, this document will
be returned, at the address listed above as soon as possible.

2. The information contained herein is for the benefit of the addressee only. The
reader is not entitled to reproduce this document either directly or indirectly or
in whole or in part for any purpose other than internal consideration of the
proposal for which purpose, this document has been approved.

3. All of the information herein will be treated as confidential material with no

less care than that afforded to your own company confidential material.

This Business Plan contains forward-looking statements that involve risks and
uncertainties. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of certain factors, including
those set forth under "Risk Factors" and elsewhere in this Business Plan.

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 CONFIDENTIALITY AGREEMENT

The undersigned reader acknowledges that the information provided by GAB Refrigeration in
this business plan is confidential; therefore, reader agrees not to disclose it without the express
permission from GAB Refrigeration.
It is acknowledged by the reader that information to be furnished in this business plan is in
respect confidential in nature, other than information which is in the public domain through
other means and that any disclosure or use of same by reader may cause serious harm or damage
to GAB Refrigeration.
Upon request, this document is to be immediately returned to Retelo.ng.

Signature

Name

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 Table Of Content

Executive Summary
Our Mission, Our Core Value, Exit Strategy, Smart Vision, Strategy
Map, Performance Gs & Os, Financial Highlights
1 Company Summary
1.1. Company’s Overview
1.2. Company’s Ownership
1.3. Company's Location and Facilities

2 Management & Organization Structure

2.1. Management Philosophy
2.2. Management Team
2.3. Organization Structure
2.4. Personnel

3 Product Summary
3.1. USP
3.2. Product Description
3.3. Competitive Comparison
3.4. Licenses
3.5. Sourcing and Fulfillment
3.6. Future Products

4 Market Analysis
4.1. Market Overview
4.2. Market Description
4.3. Market Segments

5 Marketing & Sales Plan

5.1. Product
5.2. Pricing
5.3. Place
5.4. Promotion

6 Finance

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EXECUTIVE
SUMMARY
OUR MISSION OUR CORE VALUE

We are an indigenous African Integrity. At GAB Refrigeration, for

company aiming to We are to integrity there is no second. We maintain
innovatively design and develop integrity in everything we do, from ethics
products that last long under every to products and services.
atmospheric condition.

E XIT STRATEGY

We, an ambitious company, will be in the pursuit of brilliant opportunities

compounded by a desire for aggressive growth. In developing an exit strategy, we
note that we may seek more funding for expansion. The fund may be either debt from
financial institutions or equity from venture capitalists. This presents us with two exit
scenarios;

Scenario 1, if debt fund is raised.

The best line of action will be to pay all obligations owed. This means the company
must maintain high, cash balance or at best working capital.

Scenario 2, if equity fund is raised.

The best line of action will be to go public. Therefore, the company must be able to
meet SEC's standards. We also must be able to build strong goodwill among investing
communities.

SMART VISION

We envisions our products being the sole choice of every household and industry.

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 EXECUTIVE SUMMARY

STRATEGY MAP

Finance. Customers. Process. People.

Be a sole choice to
customers
by creating
products that Be a magnet to
Revenue Research &
last under every the best engineers
Growth Development.
atmospheric in the industry
condition.

PERFORMANCE GS & OS

Finance Customers Process People &

Growth

Objectives Revenue Customer High Quality of

growth acquisition & performance, engineers
retention. differentiated
products

Metrics % of sales. % of market % of R&D Remuneration.

share. expenditure to
other
% of repeat expenditure.
customers.

Target 5% growth rate. 5% growth rate 2 % growth rate Growth in % of

(market share) in R&D. remuneration.

5% growth rate
(repeat
customers)

Initiative Referral. Referral & Increase R&D Training and

Maintaining budget, period- development of
contact with by-period. engineers.
customers. Increase
remuneration
budget.

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 EXECUTIVE SUMMARY

KEYS TO SUCCESS

Consistency Accountability Expertise Innovation

We know that to be For us, We understand that to Innovation is taking

successful we must accountability is be successful in this on new, brilliant
remain consistent in another key to business, we must be opportunities to
everything we do. success. To be experts at what we capture value for the
To be consistent accountable means do. Expertise means company. To grow as
means to stay to maintain competence to us. a brand we must
focused on detailed records of engage in innovative
achievement rather events, legal or and entrepreneurial
than drifting on economic nature. activities.
activity.

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COMPANY
SUMMARY
COMPANY OVERVIEW

GAB Refrigeration is an industrial and commercial refrigeration company. We

engage in the manufacturing and maintenance of world class refrigeration systems.
The company deals on refrigerator racks, refrigerated display cabinets, blast freezers,
chest freezers, commercial cold rooms, industrial cold rooms and industrial and
commercial RCS. We are an indigenous African company aiming to showcase our
ability to the world.

Business Model Canvas. Business to Business

KP KA VP CR CS

Fabricators & Assembling of Food Technical Industrial &

dealers on refrigerator preservation assistance and commercial
refrigerator parts. machines. support. organization.
parts
KR (Refrigerators) CH.

Expertise, Social media,

refrigerator website, prints
parts. & Tv

C₦ R₦

Assembling cost, sales cost & Sales of Refrigerators & fees from
administrative. maintenance services

GAB Refrigeration
Value Proposition & Customer Segment

Through our mix of products, we Generally, their need is to prevent wastage

provide Industrial and commercial and spoilage of their food products.
organizations with food preservation
machines. Our customers include,
Customer Relationship & Channel.
without limitation, supermarkets,
grocery stores, restaurants, hotels, food
We will offer technical assistance and
distributors and caterers, food processing
support to our customers. This will form
industries, food wholesaler and storage
part of our after sales service.
facilities.

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 C OMPANY ’S SUMMARY

It will create an opportunity for us to Key Activities & Key Resource

build relationship with our customers.
IT has grown tremendously. Today's
world is empowered with a large variety
of media tools. These tools have
transformed the way the world
communicates. The business community
is not left behind. GAB intends
leveraging on modern IT in
communicating and staying connected
to the customer.
GAB's major operation is the assembling
of imported refrigerator parts. Carrying
out such demands expertise and access to
fabricated parts.
Key Partners
In carrying out our business activities, we
will seek to create and establish
relationship with fabricators and dealers
on refrigerator parts.

Cost Structure & Revenue Stream

The cost of operating our business model include the cost of assembling fabricated
parts, sales cost and administrative cost. We will make money through the sales of our
products and the offering of maintenance services.

COMPANY ’S O WNERSHIP

Name Title Type Investment Ownership (%)

Orodare Toyin CEO Equity 100

Total 100

COMPANY ’S L OCATION AND FACILITIES

GAB Refrigeration will be located in Lagos State, Nigeria. Lagos is the number one
commercial city in Nigeria, home to over 8,395 MSMEs. The state is also endowed
with an international airport, Murtala Muhammad airport. The state is also endowed
with two of Nigerian's major seaports, the Lagos Port Complex and the Tin Can
Island port. Being located in Lagos gives us easy access to means of importation of
fabricated refrigerator parts for assembling.

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MANAGEMENT &
ORGANIZATION
STRUCTURE
MANAGEMENT PHILOSOPHY

The management philosophy is centred around quality products delivery. The

management is consumer-centric as they are kings in the business. In order to achieve
this, there is an increased emphasis on quality of products offered to the consumers.
This is to ensure that the customers derive the maximum satisfaction and value from
the use of our products.

On the other hand, the management seeks to achieve employee growth and
improvement. A great team forms part of the core competencies of any organization.
Therefore, the management is actively concerned with developing processes and
structures that would better enhance employee job performance and personal
development. Others that have helped in the development of this business venture will
be offered an opportunity to grow together with the company at the appropriate time.

MANAGEMENT TEAM

Name Title Profile

CEO/MD Should be well experienced in management. A

leader, with a touch of entrepreneurship spirit.

Business Should be charismatic and skilled in sales. Should

Development be able to secure and close deals with big
Officer clientele.

Operations Should be able to supervise the general operations

manager of the company.

Finance and Should be a member of ICAN, ANAN or any

Accounting other professional body.
officer

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 M ANAGEMENT & ORGANIZATION STRUCTURE

ORGANIZATION STRUCTURE

PERSONNEL PLAN

Title Job Description Salary No.

CEO/MD The CEO is to oversee the entire 150,000 1

organization.

Business Find and develop relationship high profile 100,000 1

Dev. customers. Help the company get major
Officer. deals.

Operations Management the operations facility and staff. 1

Manager

Finance & Manage the organization's accounting. 80,000 1

Accounting
officer

Assembly They are meant to work on the products. 30,000 10

staff They carry out the assembling operations.

Sales & Facilitate sales transaction 30,000 5

Distribution
staff.

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PRODUCTS
SUMMARY
USP

Our products are relatively affordable, high quality and performing.

PRODUCT DESCRIPTION

Product Description

Refrigerator Racks Refrigerator racks aid in storing of items while keeping them
refrigerated.

Product Description

Refrigerated Refrigerated display cabinets are designed to keep products

display cabinets cool while displaying them to customers.

Product Description

Blast Freezers Blast freezers are extremely cold, they rapidly bring down the
temperature of (usually) foodstuff or fresh produce, freezing
them very quickly. They help in storing frozen products for
long periods of time.

Product Description

Chest Freezers Chest freezers are very useful and energy efficient appliance.
It saves money in the long-run. Chest freezers have ample
space to take advantage of storing and freezing bulks of meat
together with the daily consumable items and make-ahead
meals.

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 PRODUCTS SUMMARY

Product Description

Industrial & Cold room is an efficient and reliable storage solution. A cold
Commercial Cold room is a warehouse in which a specific temperature is
Room artificially generated. It is generally designed for storing
products in an environment below the outside temperature.
Products that need refrigeration include fruits, vegetables,
seafood, meat, flowers.

Product Description

Industrial and Refrigeration System Controls are defined as equipment that

Commercial RSC control and optimise the temperatures and pressures in a
refrigeration System, and automatically adjusts the
refrigeration system's operation to minimise its energy
consumption, while maintaining within predefined
temperature limits.

COMPETITIVE COMPARISON

Our objective at GAB is to break through the barriers that impedes the purchase of
Nigerian made products and to positon ourselves as a trustworthy. We have laid out
processes to ensure that our products are quality and can compete with foreign
counterparts.

L ICENSES

SON is the sole statutory body that is vested with the responsibility of standardising
and regulating the quality of all products in Nigeria. SON was created by the ACT No
56 of 1971. SON is a full member of ISO. To operate as a manufacturer in Nigeria,
the business must comply with SON's requirements and be duly issued a certificate.

SOURCING AND FULFILLMENT

Our products' parts are fabricated outside the country, Nigeria. We import the best
parts well suited for our customers needs and we assemble them at our assembling
plant in Lagos, Nigeria. Below is a table showing some relevant product parts.

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 PRODUCTS SUMMARY

FUTURE PRODUCTS

As a purposeful organization, we think about our future. Thinking about our future,
we understand that it is plagued with many uncertainties. However, in our near future
we anticipate that we may venture into household refrigeration and air conditioning.
The future remains to be known.

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MARKET
ANALYSIS
MARKET OVERVIEW

The last 25 years has seen a significant rise in the demand for refrigerators within the
country, bit for commercial and domestic purposes. There are several reasons for this,
Rapid Urban Migration, a general culture evolution, significant increase in power
supply (most notably in 2020), etc. This rapid growth of demand had also led to a
rapid growth of manufacturers both domestic and foreign to the extent that there is an
ever increasing level of competition.

Competitiveness

This competition revolves around the struggle for market share essentially by major
players like Samsung refrigerators, Haier Thermocool refrigerators and LG
refrigerators etc. They like to compete on technological features such as durability
and cooling time. This has leaf to the replacement of the use of compressors with
magnetic refrigeration. They also adapt different aesthetic designs and architecture to
attract customers. They try to make sure their products are affordable by willing
customers, to achieve this they model and remodel their products reviewing the range
of sizes and power consumption of their products. Some have started investing
heavily on solar technology and other alternative sources of power foreseeing that as
the future of energy generation. Despite this heavy investment, none of them have
been successful enough to “change in the game” and snatch the Lion’s share of the
market from the others. So in the meantime, they seem to be focused on customer
experience and affordable.

Although, the market seems to be dominated by foreign brands there are also several
smaller but fast growing indigenous manufacturers. The bulk of these domestic
manufacturers deal in commercial refrigerators and many of them also extend their
manufacturing into the making of Industrial Air conditioners and cold rooms. Good
examples of such is Akpo Oyegwa Refrigerators and De Koolar Nigeria Limited.

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 M ARKET ANALYSIS

One major factor influencing the demand for refrigerators is power supply given that
most Refrigerators are electronic that is to say that they are only useful when there is
energy to power them. It also follows from this that the cost of running a fuel
generator is significantly higher than regular power supply. Even users of Solar panels
in the country may not have sufficient energy to power their refrigerators. All of this
is not limited to household use of refrigerators. Businesses that involve cooling items
worry a lot about power supply and many would not venture into such businesses if
there is no power supply incentive. In accordance with this point it is clear that when
there is low power supply to the masses fewer people would be willing to acquire
refrigerators refrigerators and those acquiring may go for cheaper products. Vice
versa, with the record breaking, all time high supply of power achieved this year in
Nigeria, one would expect a rise in the demand for both commercial and domestic
refrigerators.

Customers on their part appear to value refrigerators with slower rates of defrosting,
refrigerators that are durable, consume least amount of energy and take the least
amount of time to freeze foods. All of this depends on the lifestyle and specific needs
of the individuals, their businesses or their households. The future of the refrigerator
industry in Nigeria rests with the gradual movement towards the adoption of solar
power and alternative sources of energy.

MARKET DESCRIPTION

GAB deals on a broad variety of products and services, including, refrigerator racks,
refrigerated display cabinets, blast freezers, chest freezers, commercial cold rooms,
industrial cold rooms and industrial and commercial RCS.1 This positions the
Company in multiple markets.2

Description

Refrigerated, Refrigerated display cabinets serve the need of a variety of

Display Cabinet. users, including, without limitation, supermarkets, grocery
stores and restaurants. Generally, the customer’s need is to
showcase products while keeping them at cool temperature.

2The markets are defined according to the customer's need. Therefore, although GAB is in the
business of assembling refrigerator parts, it products appeal to different customer groups.

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 M ARKET ANALYSIS

Description

Blast freezers Blast freezers serve a variety of users, including, without

limitation, food distributors and caterers. Generally, the
customer’s need is to preserve their produce.

Description

Chest freezers Chest freezers serve a variety of users, including, without

limitation, stores, fast-food restaurants and homes. Generally,
the Customer's need is to preserve a large variety of items.

Description

Commercial cold Commercial cold room serve a variety of users, including,

room without limitation, food importer, hotel and suites, food
manufacturers, and food dealers. Generally, the Customer's
need is to preserve a large quantity of (food) items for long
periods of time.

Description

Industrial cold Industrial cold room serve a variety of users, including,

room without limitation, science laboratory, medical laboratory, and
chemical and industrial manufacturers. The Customer's need is
to preserve a large quantity of industrial items for long periods
of time.

Description

Industrial and The major users of Industrial and commercial RSC are
commercial RSC warehouses. The Customer's need is an effective refrigeration
system control to ensure good refrigeration.

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 M ARKET ANALYSIS

MARKET SIZE AND GROWTH

Lagos, Nigeria's most populous city, is also the city with the most MSMEs.
According to a joint report by SMEDAN and NBS (2017), Lagos is home to over
3,337,551 MSMEs.

Micro Enterprises by State, exported from NATIONAL SURVEY OF MICRO SMALL &
MEDIUM ENTERPRISES. (MSMEs) 2017.

Small and Medium Enterprises by State, exported from NATIONAL SURVEY OF MICRO
SMALL & MEDIUM ENTERPRISES. (MSMEs) 2017.

In determining the market size, we used the Accommodation and Food industry as
proxy. The total size of the Nigerian Accommodation and Food industry is 2,356,988,
which is 5.67% of the total MSMEs in Nigeria. Therefore, the estimated size of the
market is appropriately 2,356,988.

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 M ARKET ANALYSIS

However, the market is much larger than the estimate because the uses of our
products are not limited to the Accommodation and Food industry. Commercial and
industrial refrigeration also perform important function in aspects of the Wholesale
and Retail industry, Transportation and Storage industry, and other related Industries.

Market Growth

The growth in the aforementioned sectors has been positive. The Federal Government
of Nigeria have put in place many schemes to facilitate the startup and development
of business in the country.

MARKET CHANNEL

Generally, GAB operates a business to business model (here after, B to B). In the B to
B, refrigerator market there are a series of distribution channels and value adding
chain. These distribution channels and value adding chain could be considered as
important pathways to the final users. Further more, some of these channels exist
within the business organizations and others outside it.

Channels within the organization may include;

❖ Purchasing or procurement officers

❖ Managers and heads of operation department.

Channels outside the organization may include;

❖ Contractors
❖ Consultants
❖ Independent influencers3
❖ Retailers
❖ Distributors

3People who the final users deliberate turn to for advice on what products to use. The could include
former user, website and authorities on refrigeration.

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 M ARKET ANALYSIS

MARKET SEGMENTATION

A number of techniques and bases can be used in segmenting the B to B, refrigerator

market. However, based on exiting information and finding a relationship between the
size of our products and customers, the segmentation is done on the bases of the
customers size.

Micro businesses Small businesses Medium businesses

These are organizations These are organizations These are

having less than 10
employees and a net worth,
less than N 10 million.
having 10 to 49 organizations having
employees and a net 50 and above
worth, N 10 million but employees and a net
less than N 100 million worth, N 100 million
but less than N 1
billion.

COMPETITORS

Airtec systems Ltd.

Expert dealers in heating, cooling and refrigeration. They design, install and
maintain air conditioning and refrigerating systems for Industrial and
commercial customers.

Satek Nigerian Ltd.

Satek provides consulting services, supplies installation and maintenance of

HVAC systems which include cold rooms, impressions, panels and units,
erecting cooling van bodies and refrigeration equipment, air cooled chiller,
ammoning chillers, air cooling towers, installing dehumidifiers, providing air
conditioning solutions and more.

Akpo Oyegwa Refrigeration Company.

Akpo Oyegwa Refrigeration Company is a fully qualified licensed air

conditioning and refrigeration contractor in Nigeria which has been in operation
for over 20 years. They install, maintain and repair all types of air conditioning
and refrigeration equipment across different sectors.

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 M ARKET ANALYSIS

De Koolar Nigeria Ltd.

De Koolar is a HVAC company that leads in the supply of refrigeration and air
conditioning services among other domestic and industrial heat and cooling
equipment. They design, install, maintain and repair both domestic and industrial
systems.

OT A NALYSIS

Opportunities Threats

- The Federal Government's stimulus and - Raise exchange rates (Naira to US

funding initiatives.
- The Federal Government’s campaign for
the use of made in Nigeria goods.
- A rapidly growing market.
Dollar).
- Poor power supply.
- Foreign competition.
- Existing known brands.
- Raise in price of petrol (leading to cost-
push inflation.)
- Recession. (Nigeria is currently in a
recession due to Covid-19 pandemic).

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MARKETING &
SALES PLAN.

4Ps
PRODUCT

Our products will be well designed and tailored to the needs and preference of our
broad customer segments which have been earlier identified. To ensure we offer our
customers the best products, we will maintain high standards in everything we do. We
hope to get a large market share through consistency, accountability, expertise and
innovation. Our productlines include;

❖ Refrigerated, Display cabinet.

❖ Blast freezers
❖ Chest freezer
❖ Commercial cold rooms
❖ Industrial cold rooms
❖ Industrial and commercial RSC.

PRICING

Pricing will be of different categories to accommodate discounts for large quantities

as well as make room for smaller orders. We will not charge over the customer’s
expected prices, nor substantially underprice our services. The pricing strategy
adopted is based on a combination of the cost-plus pricing and competition based
pricing. The Cost Plus pricing strategy will see us add a predefined percentage to the
actual cost as profit margin to come to the final pricing decisions for our service. Our
financial projection allows for low cost plus price strategy to be fixed in percentage as
a market penetration strategy. And it entails further fixing prices for the products that
ensures that equipment costs are covered and a fair profit margin is realized from
sales spread with time. However, in selecting this price points, consideration is given
to the prices offered by competitors in the industry.

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 M ARKETING & SALES PLAN

PLACE

We will sell our products through multiple platforms, using both traditional and
modern media. We will partner with electronics retailers and other relevant channels
along our value chain to ensure our products get to our customers. We strongly
believe in the statement, “production is not completely until the product gets to the
final consumer”

PROMOTION

We want our brand to be visible and well communicated, which means we will pay
keen attention to promotion activities. All our publicity materials will be done by
some of the best hands in the industry. Below are the platforms we intend to leverage
on to promote our products:

Advertising.

Due to the business being an SME, we may not be able to afford Above The Line
advertising, but we will surely engage in Below The Line and Through The Line
Advertising. The Above The Line (ATL) advertising (mass media, large format
printing, electronic broadcasts) is for building brand awareness and goodwill as a
water products manufacturing brand. The Below the Line (BTL) is more specific to
direct potential customers. For example, an industry launch, ads on function specific
magazines, newsletters, social media and a Google Adwords campaign targeting a
certain group or a direct telemarketing campaign targeting specific businesses is to
be employed to build an awareness.

Public Relations.

Subsequent to a successful launch, we will introduce series of promotional materials

to be shared, brand promises will be declared. The launch of the retail outlet and its
promotion are built on awareness, feedback, developing positive relationships with
customers, vendors in clusters, alliances and complementary organizations as
alliances. The art of our good public relations is not only to obtain favourable
publicity within the community, but to raise and keep the awareness within the
vicinity. It also involves being able to handle attention, support and feedback.

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 M ARKETING & SALES PLAN

Sales Promotion

This will be to obtain an increase in sales, in the short term. This includes pitches
and conversion of prospects to be clients. And then to build loyalty.

Internet Marketing

Promoting and selling our brands online using various forms of online marketing
techniques, viral concepts, cyber advertisements, videos or social media.

SALES

Our sales and marketing unit is responsible for lead generation and management and
is required to meet projection milestones. The sales targets or projections are several
on an annual basis. The sales unit is headed by the Operations Mgr. who is
responsible for coordinating all sales activities and delivering on customer service and
logistics. We understand that the end product of marketing is sales and growth of any
business depends largely on the sales they execute per financial year. We will
continue to give our marketing team all the supports they would need to continue to
deliver and meet all set targets and corporate goals.

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FINANCE
See attached excel document

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