15/4/2021

MINI BUSINESS PLAN

ROLLINGSTONE INVESTMENT LIMITED

RC 1224896
Prepared by: Munir Garba

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 Rollingstoneinvestmentltd@gmail.com
 +234 805 525 9689

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Content

1. Business Description 2. Industry Overview

1. Personal Information 1. Sector Analysis
2. Business Details 2. Sub-sector Analysis
3. SWOT Analysis
4. Leadership Structure

3. Marketing and Sales 4. Financial Analysis

1. Competition 1. Key Assumptions
2. Advertising and Sales 2. Products and Services
3. Target Market 3. Financial Projections
4. Current Financing

5. Funding Requirement 6. Viability Summary

1. Proposed Loan 1. Profitability Ratios
2. Use of Funds 2. Viability Ratios
3. Weighted Average Gross Margin
4. Enterprise Value
5. Fund Repayment Ability

7. SMEDAN Data 8. Conclusion

1. Financial Management 1. References
2. Other Supporting Information 2. Photographs
3. NAFDAC Registration Number For
Packaged Products

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Business Description

Personal Information
Name: Other Name:
Munir Garba Bello Kankarofi

Gender: Email:
Male Rollingstoneinvestmentltd@gmail.com

Contact: Government issued ID:

0805 525 9689 International Passport

Identification number: Address:

A06076521 No.10 Kankarofi Quarters Municipal kano

State/Region/Province: LGA:
Kano Tarauni

Bank Verification Number:

22222113977

Educational qualification:

Institution name: Qualification: Course:

BUK KANO MBA Business Administration

Date awarded: Certificates proof:

4/30/2017 Yes

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Business Details
Name: Business age:
Rollingstone Investment Limited 3 Years

Factory/farm address
No.10 Darmanawa quarters kano

Business description:
Rollingstone investment limited an enterprise in kano involve in rice processing package and sell in affordable
price

USP: Our Products/Services

1. Will not be better than the competitor's product but will meet a current market need
2. Will be of superior quality
3. Will be priced lower than the market price

SWOT Analysis
Strengths Weaknesses

Experience management team Lack of capital

Innovation Cost of input materials

Employment Competitors

Opportunities Threats

Population Government policy

Highest demand Low patronage

To be self reliance Foreign Product

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Leadership Structure
Details of owners of the business

# Name Shareholding in %

1 Munir Garba Bello Kankarofi 100

100.00%
100.00%

Munir Gar ba Bello K ankar ofi

Details of managers of the business

# Name Area of Responsibility

1 Munir Garba Bello Kankarofi Manager

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Industry Overview

Sub-Sector Analysis - Rice Milling

Five forces

Bargaining Bargaining
Power of Power of
Customers Suppliers
LOW
5 MEDIUM

FORCES
Industry Threat of
Rivalry Substitution
MEDIUM MEDIUM
Threat of New
Entrant
MEDIUM

General
Milling is a crucial step in the post-production of rice. It includes activities / operations such as parboiling,

cleaning, dehusking and polishing amongst others, that are geared towards producing better quality and

higher yield of white rice for consumption. Rice is one of the leading food crops in the world and the most

consumed staple food in Nigeria. Nigeria is among the top 15 producers of rice globally and the largest

producer in Africa, with an annual production of 7.6 million tons. There are many varieties of rice grown in

Nigeria such as paddy rice, brown rice and 'ofada rice'. Paddy rice, also known as rough rice, is the most

popular variety milled in Nigeria. About 90% of Nigeria’s rice is produced by small scale farmers, while the

remaining 10% is produced by corporate / commercial farmers. Rice is mainly cultivated in the Northern

region of Nigeria such as Niger, Kogi, and Kebbi states

Trends
Nigeria imports about 2.2 million metric tons of rice annually. Imports largely comprises of parboiled rice (also

known as converted rice and easy cook rice). The Federal Government is encouraging local businesses in the

industry by implementing trade policies that promote increased domestic production and self-sufficiency in

rice production. The industry is dominated by a few large scale processing companies such as Dangote Rice

Mill, Quarra Rice Mill, Olam Nigeria, and Onyx Rice Mill, who grow their produce for processing

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Demand
The demand for rice is high in Nigeria with an annual consumption volume estimated at 7.2 million tons. Rice

is the most important crop that is used as a primary food source. Its high demand is sustained by the

increasing national population, increasing income levels and rapid urbanization. The by-products of rice is

also demanded by the manufacturing and food industries and serves as a raw material for animal feeds

Regulatory considerations
Operations in rice milling must conform to the regulations of the National Export Promotion Council (NEPC),

National Agency for Food and Drug Administration and Control (NAFDAC), Standard Organization of Nigeria

(SON), Corporate Affairs Commission (CAC) and Grain Sellers Association

Risks
A major risk in the rice milling business pertains to product quality. Pest infestation due to insects, rodents,

and birds affect the quality of rice during pre and post harvesting. Poor technical performance of milling

machinery, or operator ineptitude also result in low quality yields. To ensure greater yields, best pest control

measures and efficient maintenance of machinery should be adopted

* So u rces: USDA G rain R ep o rt 2 0 1 9 ; Pu n ch 2 0 1 7

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Marketing And Sales

Competition
Key competitors:

Factors Competitor 1

Products Rice 50kg

Name of Competing Product Rice 50kg

Name of Competitor Organization Azman Rice

Price of the individual’s/ company’s product/ service( ₦ ) 21000

Price of Competitor product ( ₦ ) 22000

Region of Competitor Operations Kano

LGA of Competitor Operations Kano Municipal

Difference from your product Price

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Advertising And Sales
Our Advertisment:
1. Radio
2. Print Media
3. Billboards

Sales Strategy:
1. Direct online sales with delivery
2. Direct sales through your own outlets
3. Indirect sales through distributors, agents, or other shops

Target Market
Target Customers: Businesses, Individuals

All All


Gender Age Category

26,007,044 100%
Customer population by location Customer proportion by age group

Target Location
States: Kano LGA: State-Wide

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Financial Analysis

Key Assumptions
No of holidays / year Operating workdays / week Operating weeks / year

7 7 51

Operating days / year

350

Assets:

Land & Building Machinery & Equipment

Purchase price ( ₦ ): 3,000,000 Purchase price ( ₦ ): 1,500,000
Year of accuistion: 2018 Year of accuistion: 2018
Lifespan (years): 30 Lifespan (years): 28

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Products And Services
Product list:

Product Production Selling Wholesale price of Retail price of

# name quantity quantity product ( ₦ ) product ( ₦ )

1 Rice 50kg 3,000 Units 2,997 Units 20,000 21,000

2 Rice 25kg 2,000 Units 2,000 Units 10,500 11,000

Frequency of increase in Product/Service price: Selling Price Growth Rate:

Annually Inflation rate

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Financial Projections
Projected profit ( ₦ ):
300M

250M 245M
245M

209M
209M

200M

172M
172M

147M
147M
) ( t n uo mA

150M
₦

120M
1 20M
103M
103M
100M
84M
84M

50M

-1 3 M
-13M
-1 8 M
-18M
-2 5 M
-25M
-3 6 M
-36M
-50M
Year 1 Year 2 Year 3 Year 4

Net R evenue Cost of r evenue Gr oss pr ofit

Projected operating expenses ( ₦ ):

6M

5M
5M
5M
5M
4M
4M
5M 4M
4M

4M
₦) ( - s es n epx E

3M 3M
3M 3M
3M

2M

60k 61k 62k 63k

1000k

1M 1M 1M 1M

0
Year 1 Year 2 Year 3 Year 4

S alar ies Gener al and Administr ation Utility costs R ent Other s

* It is a ssume d tha t.
1. COS growth ra te is e qua l to the re ve nue growth ra te .
2. Pric e a nd qua ntity growth ra te s a re e ffe c te d on a n a nnua l ba sis (whe re a pplic a ble ).

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Financial indicators ( ₦ ):

# Statement Year 1 Year 2 Year 3 Year 4

EBITDA (Gross Profit - Operating

1 67,776,450 98,489,105 142,258,466 204,621,219
Expenses)

2 DEPRECIATION -1,518,571 -1,518,571 -518,571 -518,571

3 EBIT 66,257,879 96,970,534 141,739,895 204,102,648

4 INTEREST INCOME / (EXPENSE) -500,000 -441,997 -198,240

5 NET EARNINGS BEFORE TAXES 65,757,879 96,528,537 141,541,655 204,102,648

6 TAXES -13,151,576 -28,958,561 -42,462,497 -61,230,794

7 NET EARNINGS 52,606,303 67,569,976 99,079,158 142,871,854

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Balance Sheet ( ₦ ):
400M

370M
370M 370M
370M

350M

300M

250M
226M
226M 226M
226M
₦) ( t n uo mA

200M
370M 367M

150M
129M
129M 129M
129M

226M 224M
100M

64M
64M 64M
64M
129M 125M
50M

64M 57M

6M 4M 2M 3M
0
Year 1 Year 2 Year 3 Year 4

Assets E quity Liabilities

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 Cashflows Statement:

Operations ( ₦ ): Financing Activities ( ₦ ):

400M 6M

360M
360M 5M
5M
5M
350M

4M

300M

3M

5M
250M
2M
) ( - t n uo mA

) ( t n uo mA
₦

₦
200M 1000k

360M
0 0
0
150M 141M
141M

-1000k
-3M
98M
98M -3M
100M

68M
68M -2M
141M
52M
52M -3 M
-3M
50M 98M -3 M
-3M
-3M
68M
52M

0 -4M
Year 1 Year 2 Year 3 Total 4 Year 1 Year 2 Year 3 Total 4

Oper ations Financing Activities

Investing Activities ( ₦ ): Net Cash Change ( ₦ ):

0 400M
0 0 0

-500k 355M
355M
350M

-1000k

300M
-2M

-2M 250M
) ( t n uo mA

) ( t n uo mA
₦

-3M -5M -5M

200M

-3M
355M

150M 141M
141M
-4M

-4M 95M
95M
100M

-5M 65M
65M
141M
52M
52M
50M 95M
-5M 65M
-5 M
-5M -5 M
-5M 52M

-6M 0
Year 1 Year 2 Year 3 Total 4 Year 1 Year 2 Year 3 Total 4

I nvesting Activities Net Cash Change

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Funding Requirement

Proposed Loan
Loan required: Loan duration:

(₦ )5,000,000 2 Years
Purpose:

Expand an existing business

Loan start year:

2021

Loan Repayment
Repayment mode:

Semi-annual instalment payments

Loan moratorium:

Yes, for one year

Use of Funds
Funds Allocation

# Use % Allocation

1 Purchase machinery / equipment 80

2 Fund working capital / operations 20

New Machinery/Equipment

No. of
# Name Use of equipment units Lifespan Unit cost Total

Rice milling
1 milling purpose 2 10 700,000 1,400,000
machine

2 Parboiler use to parboiled the rice 1 8 1,000,000 1,000,000

Rice clean up stone, sand, metal blocks and

3 1 6 200,000 200,000
destone other impurities from raw paddy rice

Dryer &
4 use in the process 1 6 400,000 400,000
blower

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 No. of
# Name Use of equipment units Lifespan Unit cost Total

Working
5 to finance operation 1 2 2,000,000 2,000,000
capital

Fairly Used Machinery/Equipment

# Name Use of equipment No. of units Unit cost Total

1 0 0 0

Working Capital

# Item Description/Purpose Unit cost Quantity Total Cost

1 WORKING CAPITAL OPERATION 2,000,000 1 2,000,000

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Viability Summary

Profitability Ratios

Year 1 Year 2 Year 3 Year 4

Gross Profit % 85.52% 85.52% 85.52% 85.52%

EBITDA (Gross Profit - Operating Expenses) 67,776,450 98,489,105 142,258,466 204,621,219

Viability Ratios

Values Decision

Internal Rate of Return (IRR) 100% Positive

Net Present Value (NPV) 1,217,849,671.28 Positive

Weighted Average Gross Margin : 85.52 %

Enterprise Value : (₦) 1,216,954,692.76

Fund Repayment Ability

Year 0 Year 1 Year 2 Year 3

Debt Service Coverage (DSCR) 135.55 34.92 50.44

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SMEDAN Specific Information

Financial Management

Average net profit of the enterprise in the last 2 years ₦ 5,200,000

Total sale of the enterprise over the last 2 years ₦ 16,400,000

Net margin of the enterprise in 2019 (%) 16

Product(s) first entry into the market 2018

Other Supporting Information

SMEDAN Unique Number SMEDAN 45218365

Tax Indentification Number (TIN) TIN 17990719

CAC Registration Number RC 1224896

Average volume of stock produced in the last two years 5,200,000

Percentage Sales in the last two years (%) 31

Current level of local material being used by the Enterprise(%) 100

Current level of foreign material being used by the Enterprise(%) 0

Installed capacity of the enterprise (Tons) 6

Capacity utilisation of the enterprise (%) 79

Total number of employees 26

Total number of current employees 13

Current number of female employees 3

Current number of male employees 10

Current number of employees with special needs

Total number of new employees 13

Gender of the chief promoter Male

Is the Enterprise owned by a Woman or Youth Yes

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Conclusion

References

No Full Name Contact Address

1 Fatima Garba Bello 07089457645 Kano

2 Murtala Tijjani Ahmad 08035699318 Kano

Photographs

Photograph of business owner

Photograph of business
operations
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ROLLINGSTONE INVESTMENT LIMITED

No.10 Kankarofi Quarters Municipal kano

 Rollingstoneinvestmentltd@gmail.com
 +234 805 525 9689

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