BUSINESS PLAN

DE-UNINY Global Enterprises

(A Bottle Water Production Company)

April, 2021
0
 TABLE OF CONTENT

Content Page number

Executive Summary 2
Introduction 4
Product and Services 7

Industry and Market Analysis 8

Competition 11

SWOT Analysis 12
Operations Plan 13

Marketing Plan 20
Management Plan 22

Financial Plan 25

Key Assumption 25
Cost Estimation and Projection 25

Financing 28
Revenue Projections 29

Profitability Projections 30

Breakeven Analysis 32
Projected Income Statement 34

Projected Statement of Financial Position 35

Projected Cash Flow Statement 36

Ratio Analysis 37

Milestones 38
Appendix I: Loan Amortisation Schedule 40

1
EXECUTIVE SUMMARY

DE-UNINY Global Enterprises was established amongst other thing to carry on

with the production of table water. Ground water and pipe borne (tap) water
are the major sources of drinking water. These sources are said to be unsafe

sources of drinking water because findings indicated that ground water

sources contain trace elements, dissolved solids and pathogens in excessive
quantities that may be dangerous to the health of the people. These available

sources of water or water types are polluted or contaminated hence, are not fit

for drinking purpose.

DE-UNINY Table Water meets the need and demand for safe and heathy

drinking water, provide a very ready and nearby world class table water

production company and ensure optimum customer satisfaction with flexible

services at competitive prices. We will contribute our quota to the

diversification of the economy, our products and services will cater for the

health needs of our local population, and promote the healthy living of our

growing population.

We have identified our market segment and classified them into trading business,
hospitality business and household within our area of operation. Through these
market segment we intend to target 5% of the population Kaduna metropolis

estimated at about 117,951 persons.

We will compete directly with local bottled water companies in our market such

as Lois Table Water, Prim Water, Sona Table Water and compete indirectly with
major industry brands such as Faro, Aquafina, Nestle Pure Life, Swan Water,

Cway and Eva

2
We will maintain a highly experienced management team that will ensure full

realization of our goals and objectives. The team will be led by the Managing
Director and to be assisted by the Production Manager, Finance and Admin
Manager, Legal Secretary, and a Marketing and Distribution Manager.

To realise our goals, we are seeking N9,000,000 loan facility from Bank of

Industry (BOI) added to the promoter’s equity contribution of N3,857,143 this

will enable us acquire resources for our bottled water production line and address our

working capital requirements.

With these resources, we anticipate a revenue of about N227 million within

three years and we expect this to grow at the rate of about 15% annually for a

5 years period. In addition, we will attain an operational profit of about N93

million within three years. As a result, we are sure to attain breakeven in the

third quarter of the first year of operation.

Cashflow Highlight
50000

40000

30000
THOUSAND

20000

10000

0
Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

-10000

-20000

3
1.0 INTRODUCTION

1.1 Business Overview

DE-UNINY Global Enterprises is located in Gbagyi Villa Opposite Kaduna

Polytechnic Sabo, Kaduna. We produce quality, safe and healthy table water for
the middle, high and low-income earners under the trade mark of DE-UNINY

Table Water. Our business operates within the manufacturing industry.

DE-UNINY Global Enterprises is registered with the corporate Affairs

Commission and the company principal owner is Grace Aiso Daniel with sole
ownership of all shares in the company.

Our company is a new business and will produce quality bottle water of different
sizes such as 50Cl and 75Cl PET bottle water, 50Cl Sachet water of premium

quality and dispensable water, utilizing the latest machinery and innovative

operations processes.

1.2 Vision
Our vision is to build a standard bottle water production company whose

products will be preferred not only in Kaduna, but also throughout Nigeria.

1.3 Mission

Our mission is to establish a standard and world class bottle water production
company will favourably compete with leaders in the industry.

1.4 Objectives
▪ To attain a sales revenue of N50 million within the next 3 years.

4
▪ To maintain a profit margin of 25 - 30% through effective cost management

for a period of 5 years.

▪ To attain a market share of 5% by the end of our fourth year of operations.
▪ To drive awareness and build sales through mentions in both local and digital

media.
▪ To attract client and customers to buy from us by making them aware of
additional market opportunities from our retail sales.

1.5 Our Critical Success Factor

We will attain our objectives when we succeed in the following:

▪ Maintaining a healthy and adequate working capital to address our material

need and other obligations.

▪ Maintaining a low operating cost

▪ Having efficient, effective and flexible distribution networks

▪ Hygienic and neat processing facility.

▪ Provision of different variety of water

▪ Outstanding customer care

1.6 The Value Proposition

To give our customer the very best products through the use of state-of-the-
art technology, impeccable technological processes and hygienically purified

water. To give excellent customer service at all times so that we may earn their
trust and loyalty that encourages repeated sales. To provide an excellent,

flexible and workable distribution network for water wholesaling and retailing.

5
1.7 Contribution to Local and National Economy

Economic Justification
The proposed project possesses wide range of economic benefits that promote
the economic goals and objectives of the Federal Government. Among other

things, it will enhance the bottled water industry rate of contribution to GDP.

Profit Generation
The project is found to be financially viable and will earn a projected profit of

about 102 million Naira within the first five (5) years. Such result will induce the
project promoter to reinvest the profit, which will increase the investment

capital.

Tax Revenue

With an increase in profit, both tax revenue and the tax base of the Federal

Government will improve. Accordingly, the government will collect about 6.3
million Naira from corporate tax payment alone (i.e. excluding Personal Income

Tax, VAT, and other levies) within the first year and this will grow on a steady

rate. Such result creates additional fund for the State and Federal Government

that will be used in expanding social and other basic services.

Employment and Income Generation

The proposed project is expected to create 19 direct jobs and about 150 indirect

jobs in the entire distributive chain and consequently create an income of about

5.1 million Naira in our first year. This is projected to grow at the rate of 15%
per annum.

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2.0 OUR PRODUCTS AND SERVICES

DE-UNINY Global Enterprises sells bottled, dispenser and sachet water. Our
water is hygienic and of high quality. We produce, process and packaged to

meet the NAFDAC and International standard.

The name of our bottled water is called DE-UNINY Table Water. The company
is in the short term mainly oriented to manufacture 50cl and 75cl premium

bottle water and 50Cl sachet water. We will in the long-term venture into the

production of 20ltrs water dispenser bottle.

We are in the Table water production business to make profits and also to give

our customers value for their money.

From our overall projections, we are offering the following products:

▪ 50cl Sachet water

▪ 50cl and 75cl Bottled water

▪ 20ltrs Dispensable water (in the long term)

▪ Training and Consulting Services (in the long term)

In addition to our product offerings, we will provide premium quality, prompt

delivery and a robust customer service & relationship.

7
3.0 INDUSTRY AND MARKET ANALYSIS

3.1 Industry Analysis

Government can’t provide all the citizens with clean water, and this has

occasioned the development of table water industry. Action Aid in November

2018 posit it that ‘’one out of three Nigerians does not have clean water close

to home’’. In a speech declaring a state of emergency in water…and launching

the action plan, President Muhammadu Buhari ‘noted with dismay’ declining

services, including a fall in the percentage of the population with piped water
services (from 32% in 1990, to 7% in 2015).

Over the years the table water industry has provided an alternative to the

Nigerian populace in satisfying their demand for clean and healthy source of

drinking water. In 2016, officially there were about 8 million bottles of packed

water consumed daily in Nigeria which represents 7.5% of the Nigerian

Population. Euromonitor an International market research company reported

that the Nigerian water industry grossed a whopping N938 billion in 2016. By

2018, the then DG of NAFDAC Dr. Paul Orhii estimated the daily consumption

of table water (i.e. both bottle and sachet water) to about N8 billion. However,

expert projects a continuous growth in the table water industry due to climatic
factors, rapid growth in Nigerians population and the 2016 Federal Government

ban on the importation of table water.

The Nigerian market for bottled water is fragmented, there is no dominant

leader. The space is filled with numerous players, all jostling for the pieces of a
fast-growing potential customer base. Notable among them is Coca Cola the

makers of Eva Water, Pepsi Cola maker of Aquafina, Cway Water, Nestle, Ragolis,

8
Swan and Faro Water. In addition, Kaduna state has notable table water such as

Lois Table Water, Sona Table Water, Prime Table Water.

3.2 Market Trends

The bottled water production industry in Nigeria is characterised with

competitions in different stages of the industry. That is competition amongst
bigger corporations such as Pepsi Co, The Coca Cola Company and Nestle et al

and also competition amongst smaller and medium scale bottled water

production companies.

Most bottled water company are leveraging on creativity in terms of packaging

and marketing to continue to stay afloat in the industry. One creativity approach

that is common is ensuring that their bottled water conforms to the appropriate

PH – level.

Bottled water production companies especially medium scale and small-scale

bottled water companies are now customizing their bottled water to conform

with specific occasions to meet the demand of their clients.

3.3 Market Segment

From the results of our market research, we have identified and classified our

market segments into the following:

▪ Trading Business: they include wholesalers, retail outlets, and super markets

in Kaduna metropolis.
▪ Hospitality Business: they include hotels, restaurants, canteens and bars,
event planners, caterers in Kaduna metropolis.
▪ Households within our area of operation.
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3.4 Target Market

We are primarily targeting 21.5% (i.e. 507,191) of the population of Kaduna

metropolis with an estimated population of 2,359,028 as at 2019, based on the

2006 population census annual growth rate of 3.18%. These estimated target

cuts across our market segment in Kaduna metropolis.

3.5 Market Sizing Analysis

Factors Population Estimated Daily Total Estimated
Consumer Spend Daily Value
N N
Kaduna Metropolis
Addressable (Based on 2016 2,359,028 100 235,902,800
Market population growth
rate of 3.18%)

Target Market in
Kaduna Metropolis
Target 507,191 100 50,719,100
is estimated at
Market
21.5% of the
population.

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4.0 COMPETITION

Our clients and customers are expected to patronise our products based on
traditional factors such as Price, Quality and Availability.

We will compete directly with table water companies in our market and they
include:
▪ Lois Table Water

▪ Prim Water

▪ Sona Table Water

And we expect to compete indirectly with other major brands outside or area

of operation amongst which include:

▪ Faro

▪ Aquafina

▪ Nestle Pure Life

▪ Swan Water
▪ Eva

Our competitors are established with larger market share but our competitive

edge is our well entrenched distribution network, competitive pricing and

enhanced product quality control system.

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5.0 SWOT ANALYSIS

The SWOT analysis captures the key strengths and weaknesses within the
company, and describes the opportunities and threats facing DE-UNINY Global

Enterprises:

Strength
▪ Our strength lies in the experience and qualifications of our team, we have a

team that can produce a global standard table water that can compete

favourably with other brands produced by leaders in the industry.

▪ Very ready product distribution assets.

▪ Our latest technological capabilities to drive our business process.

Weakness

▪ It might take some time for our product to break into the market and gain

wider acceptance from top profile clients in the industry.

Opportunities
▪ The huge and growing population of our nation present a ready market for

our products. We are at advantage in leveraging on this opportunity our

demography offers for growth and profitability.

▪ Government policies focused at improving growth in the manufacturing

industry will support our growth objectives.

Threats
▪ No barriers for the market, so it’s easy to enter water industry.
▪ Existing companies may lunch price war.
▪ High cost of energy
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6.0 OPERATIONS PLAN

6.1 Registration, Licences and Permit

LEGAL REQUIREMENT STATUS FREQUENCY

OF PAYMENT
Corporate Affairs Registration 100% Completed One off

Tax Identification Number 100% Completed One off

NAFDAC W.I.P. One off

Insurance Policy W.I.P. Annual

Product Trade Mark W.I.P. One Off

6.2 Location

Our corporate office and production plant are located at Plot 111--140 Gbagyi

Villa Opposite Kaduna Polytechnic, Sabo Kaduna. DE-UNINY Table Water will be

produced and distributed from this location to its target market.

6.3 Bottled Water Production Asset

In keeping up with industry trend, DE-UNINY Table Water will deploy the

following latest technology, machinery and equipment in the production of its

table water:

SN Equipment Qty Description

1. Mono Block Machine 1 For washing, filling, capping and

labelling the bottles
2. Shrink Wrapper and 1 For wrapping the bottles in dozens with
Batch Coding Machine
nylon
3. Industrial UV Sterilizers 2 Sterilization of water before filling in
bottles and after

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 4. Filtration tanks 3 For filtration and removal of odour
measuring
4ft by 20inches
containing ion, sand
and resin filters
5. Ozone generator 1 Further deodorizing of water

6. Reverse Osmosis 1 For removing ions, unwanted molecules

Machine
7. Carbon and candle
filters
8. Labels, Preforms, PET,
Nylon Wraps
9. Surface Stainless 1HP
Water Pumps
10. Refurbished 12KVA
Heavy Duty Generator
11. Storage Tanks
and larger particles from drinking
water.
4 A For removing impurities by lowering
contamination of water using a fine
physical barrier, a chemical process, or
a biological process.
Used at various stages for packaging
2
1 For the supply of electricity to mitigate
shortage from the National grid
For water storage for further processing

12. Distribution Truck 1 For product delivery to our customers

6.4 Proposed capacity and technology

DE-UNINY Table Water plant will have the following installed capacity:

Products Machine Capacity Comment

Bottled Water (50cl & 75cl) 400 Bottles per hour Commence after funding

Dispensable Water 1800 Bottles per day Commence in the Long

term.

14
The plant will run on a single shift of 8 hours a day, and for 300 days a year.

However, Capacity utilisation has been projected at 50% of installed capacity in

the first year.

6.5 Bottled Water Production Process

DE-UNINY Table Water production process aims to guarantee the highest safety
standards for drinking water and ensure a taste that is in accordance with

consumer preference.

Source water is stored in the feed water tank, passes through the sand filter for

preliminary water filtration. Water then passes through the dosing pump-I

where chlorine is added to kill the germs in the water. After the chlorination,

water passes through carbon filter. It helps in the maintenance of proper odour

and taste of the water. It also removes chlorine from water. Water is then passes
from dosing pump-II, where Sodium Meta Bisulphate is added. It helps in

dechlorination of water. Water is filtered next and passes through dosing pump-

III, where anti scallant is added. It prevents scaling of membrane from calcium,
magnesium and biological growth. Water then passes through reverse osmosis

module. This stage of the process makes water clear from all the contaminations
and minute particles. Water then passes through dosing pump-IV, where

minerals are added for taste development. After this stage, water undergoes
Ultra Violet treatment to avoid any contamination from bacteria and other

microorganisms. Water then passes through automatic washing, filling and

capping plant. Here water is filled into bottles. After filling bottles are taken into
the warehouse or shipped to the retailers. The diagram below captures the

process flow:
15
 Borehole
Water
Source

6.6 Distribution Channel Flow

The movement of our product from our factory/warehouse to the final

consumer follows the distribution channel in the diagram below, right up to the
final customer, and the movement of payment in the opposite direction, right

up to the original producer or supplier.

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 Manufacturer

Distributors

Retailer End
customers

For all individual, commercial, industrial, government, and retail customers,

delivery will be done by our delivery vans. Over time, as the company’s customer

base and delivery requirements expand, additional trucks will be acquired.

DE-UNINY Table Water will be produced and delivered primarily in three

formats; 50Cl and 75Cl PET bottle water. Whereas the DE-UNINY Table Water

brand name will be known for its quality and high value, a reliable delivery

regimen will ensure that it remains highly available.

17
6.7 Quality Control

DE-UNINY Table Water operations will be dedicated to maintaining the highest

standards of product excellence. This will be achieved through a rigorous quality
control program. The goal will be to meet the requirements and needs of all

customers, as well as to ensure that all of our product is consistent, reliable, and
above all safe.

For DE-UNINY Table Water, quality control and quality engineering are involved

to develop systems to ensure products meet or exceed customer requirements.

It includes a precise awareness of the quality of the feed stock and resource

chemicals, machinery, input products such as containers, caps, labels and other

components; services related to production; and management, production

itself, delivery and inspection processes. A cross-functional approach will be

employed at each stage of the processing of water from raw stock to finished
products delivered to customer locations.

The company’s quality control team will monitor and audit every stage of

production and delivery. A small laboratory to the side of the plant will regularly

take and analyse samples, and the quality control team will be tasked with the

responsibility to identify any deficiencies or inadequacies.

6.8 Staff Structure

Our staff structure is based on full time engagement. The numbers of staff below

are based on the assumption that the assumption that production will be carried
out daily.

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SN DESCRIPTION NUNMBER

1. General Manager 1

2. Production Manager 1

3. Finance & Admin Manager 1

4. Production Workers 8

5. Machine Operator 2

6. Distribution Truck Drivers 2

7. Security 2

8 Cleaners 2

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7.0 MARKETING PLAN

We are committed to communicating our "Quality" position to the market, by

maximizing sales through aggressive marketing, penetrate the bottle water
industry and increase our targeted market.

7.1 Marketing Strategy

To achieve our objectives, we will engage the following strategies:

▪ Place adverts on both print (newspapers and magazines) and electronic

media platforms.
▪ Leverage on the internet and social media platforms like; Instagram,

Facebook, twitter, YouTube, Google + etc to promote our brand.

▪ Distribute our fliers and handbills to our target market.

▪ Contact corporate organizations, media outlets, major distributors by

approaching them and informing them of DE-UNINY Table Water.

▪ We will advertise on Keke NAPEP base on agreement with the Keke Rider,

word of mouth, caterers and event planners.

7.2 Promotional Strategy

To enhance our marketing and advertising activities, DE-UNINY Table Water will

engage in the following promotional activities:

▪ Special offers: we will offer special quantity discount to secure new

customers and keep driving existing customers back to us. Including the use

of ‘‘five the price of four’’ can also be used to raise profile and secure short

term increases in sales.

▪ Product giveaways and samples: Product giveaways and allowing potential
customers to sample our product.
20
▪ Marketing Materials such as print brochures, catalogues and business cards

will be produced and distributed to business and our target market.

▪ Branded Promotional Gifts: we will be giving away functional branded gifts
to our customers as an incentive for their patronage.

▪ After-Sale Customer Surveys: this will serve the dual purpose of promoting
our company as one that cares about what our customer thinks and one that
is always striving to provide the best service and product.

7.3 Pricing strategy

DE-UNINY Table Water will maintain pricing on its products that will always tend
to be at, or below the prices charged by other companies in Kaduna

marketplace. Other elements of the company’s pricing strategy will include:

▪ Industry obtainable,
▪ Local competition; which is likely to dictate what people will be prepared to

pay for our table water.

▪ Imaginatively pricing; will be used as a marketing tool to try and iron out
peaks and troughs in demand or and to reach particular target market.

▪ Offer pricing discounts for those customers willing to commit to taking

delivery of large volumes on a continuing, long-term basis. This will translate

into a major cost savings for large volume customers, and will induce them
to stay loyal.

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8.0 MANAGEMENT PLAN

8.1 Management Structure

With our vision of building a global standard bottled water production

company, we have in our team highly qualified personnel with experience in the
bottled water industry that will help us realise this objective by driving the

following underlisted functions:

▪ Chief Executive Officer

▪ Legal Secretary
▪ Finance and Admin Manager

▪ Business Development Manger

▪ Production Manager

8.2 Management Profile/Responsibilities

The Chief Executive Officer/General Manager

She will head the management team and will be responsible for giving
directions for the business, He will create, communicate and implement the

organization’s vision, mission and overall objectives. He has over 5 years’

experience working in related industry as a senior manager prior to starting DE-
UNINY Table Water.

Legal Secretary

He/she will be responsible for drawing up contracts and other legal documents

for the company. She will also produce information and coordinate case
preparation. In addition, she will enhance the organization reputation by

22
accepting ownership for accomplishing new and different requests. He has over

20 years’ experience in the bottle water industry.

Production Manager

He/she will be saddled with the responsibility of plant production goals,

including putting in place and implementing systems and procedures to ensure

operations of the plant meets production plans, product quality, and cost
standards. In addition, she will ensure complete compliance to prescribed

Safety, and quality including NAFDAC and SON requirement. She will report
directly to the General Manager and serve as a key member of the leadership

team.

Finance and Admin Manager

He will be responsible for the smooth running of HR and administrative tasks of

the organization. He will also be responsible for preparing financial reports,

budgets, and financial statements for the organization including administering

payrolls and handling all financial transactions for the company. He also ensures

compliance with all tax regulatory authority.

23
8.3 Organisational Chart

CEO/General
Manager

Legal Secretary

Finance & Admin Sales/Marketing

Production Manager Distribution Manager
Manager Manager

Quality Control Administration Sales Sales

Production Account Marketing Marketing

Workers/Machine
Operators
Budget Drivers Promotion
Maintenance
Human
Resource Demographic
Cleaners Mapping

Payroll
Security

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9.0 FINANCIAL PLAN

9.1 Key Assumptions

DE-UNINY Table Water financial forecast were made following the underlisted

assumption:

S/N Description Rate

(%)
1. Inflation rate 17

2. Loan Term Bank interest rate 9

3. Company tax rate 20

4. Annual Revenue Growth Rate 20

5 Monthly Seasonal Revenue Variation 100 - 130

9.2 Cost Estimations & Projections

The cost estimate below provides an overview of the projected cost required for

production equipment, materials and working capital requirements.

Start-up Cost Analysis

10000000
9000000
8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
Production Equipment Direct Cost Operating Expenses

25
Building, Equipment, Machinery and Materials

S/N Particulars Total Value Source of

N Funding
1. 2 each of Candle Filters (5, 150,000 Loan
1, and 0.5 microns) and 2 carbon
filters.
2. Reverse Osmosis Machine 1,350,000 Promoter
3. Ozone Generator 350,000 Loan
4. Industrial UV Sterilizer 120,000 Loan
5. (Washing, filling, capping 3,500,000 Loan
and labelling machine)
6. Shrink Wrapper and Batch 500,000 Promoter
Coding Machine
7. 2 Surface Stainless 1HP 38,000 Promoter
Water Pumps
8. Refurbished 12KVA Heavy 1,000,000 Loan
Duty Generator
9. Building and Civil Works 500,000 Promoter
10. Distribution Truck 1,800,000 Loan
11. Furniture and Fittings 323,000 Promoter
12. Installations 200,000 Promoter

Total 9,831,000

Working Capital

S/N Description Duration Amount Source of

(N) Funding

Direct Cost
1. Nylon Rolls, Shrink Wrapper, 2 months 512,143 Loan
Pet Bottle and Chemicals
Total (a) 512,143

Operating Expenses
26
 2. Advertising 3 months 150,000 Loan
3. Salaries & Wages 3 months 1,250,000 Loan
4. Rent 1 year 600,000 Promoter
5. Utilities 3 months 300,000 Promoter
6. Repairs and Maintenance 3 months 96,000 Loan
7. Transport 3 months 46,000 Promoter
8. Admin expenses 3 months 90,000 Loan

Total (b) 2,532,000

Grand Total (a+b) 3,297,893

Total Cost of the Project

S/N Particulars Sub Total Total

(N) (N)
1 Fixed Capital

Building, Equipment, Machinery and

Materials 9,831,000 9,831,000
2 Working Capital
Direct cost 512,143
Operating Expenses 2,532,000 3,044,143

3 Total cost of the Project 12,875,143

27
9.3 Financing

The project will be financed by debt capital and owner’s equity contribution. The
debt finance will be sourced from the Bank of Industry while the promoter will
contribute to the project from her equity contribution and personal savings. Our

capital structure is further analysed in the table below:

S/N Particulars Amount %

(N)
1 Debt finance 9,000,000 70

2 Promoters contribution 3,857,143 30

Total Investment 12,875,143 100

The debt capital will be repaid within 5 years, commencing after the Loan
Moratorium period of two (2) years elapse, while the interest element payment

will be made for the period of Ten (5) years. Payment of loan amount and

interest element will be made from our monthly operational profit as described

in the loan repayment schedule below:

Loan Repayment Schedule

Year Outstanding Total Loan Interest No. of Balance
Loan Repayment Instalment
Amount
(N) (N) (N) (N)
1. 9,000,000.00 - 810,000.00 12 9,000,000.00

2. 9,000,000.00 - 810,000.00 12 9,000,000.00

3. 9,000,000.00 3,000,000.00 686,250.00 12 6,000,000.00

4. 6,000,000.00 3,000,000.00 416,250.00 12 3,000,000.00

5. 3,000,000.00 3,000,000.00 146,250.00 12 -

(See Appendix I: Loan Amortisation Schedule for details)

28
9.4 Revenue Projections

We will generate revenue directly and through our distributors and retailers
from the following sources:
▪ Sales of 50cl and 75cl bottled water

▪ Sales of Dispensable water (in the long term)

Our pricing of these product will be competitive enough to generate enormous

sales to cover our cost of production, operating expenses, meet our obligations

to our creditors and also make a decent profit.

The proportional analysis of our revenue source is shown in the chart below:

REVENUE MODEL CHART

Dispensable bottled
water 50cl Bottled water
30% 30%

75cl Bottled water

40%

29
Our Dispensable bottled water is part of our long-term revenue growth strategy,

we expect to kick start this production line in the first quarter of our sixth year
of operation.

9.5 Profitability Projections

Description Estimated Values

50cl Bottled Water Revenue Analysis
Estimated Annual Production Capacity
Capacity of machine 400 bottles per hour
Hourly output (400 bottle/12) 33 packs
Daily production target 250 packets
Weekly production target (250packets X 7days) 1750 packets
Total annual production target (1750 packet X 52 91,000 packets
weeks)

Estimated Annual Revenue

Average price per pack N550
Annual revenue (91,000packets X N550) N 50,050,000

Note:
The above estimated production capacity and
revenue is based on normal situation but is subject
to seasonality and weather effect. Therefore, we
expect a 20% to 30% increase in production capacity
and revenue during seasonal period and climatic
factors.
75cl Bottled Water Revenue Analysis
Estimated Annual Production Capacity
Capacity of machine 400 bottles per hour
Daily production target 30 packets
Weekly production target (30packets X 7days) 210 packets
Total annual production target (210 packet X 52 10,920 packets
weeks)

Estimated Annual Revenue

30
Average price per pack N700
Annual revenue (10,920 packets X N700) N7,644,000

Note:
The above estimated production capacity and
revenue is based on normal situation but is subject
to seasonality and weather effect. Therefore, we
expect a 20% to 30% increase in production capacity
and revenue during seasonal period and climatic
factors.

Total Cost Analysis

▪ Our direct cost is projected at 45 % of our revenue and we expect to
maintain this rate for all our product line.

▪ We will maintain an operating of 20% on revenue to have a decent profit.

DE-UNINY Table Water estimated revenue for a 5 years period can be seen in

the chart below:

Revenue Projection Chart

120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

-
Year 1 Year 2 Year 3 Year 4 Year 5

31
The business estimated total cost for the 5 years period is analyses in the chart

below:

Total Cost Projection Chart

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

-
Year 1 Year 2 Year 3 Year 4 Year 5

Direct Cost Operating Cost

9.6 Breakeven Analysis

DE-UNINY Table Water project to reach breakeven in the third quarter of its first

year of operation. This will occur when the project pays back the total

investment of N15,725,893 inclusive of the interest element of N2,868,750 on

the loan amount of N9,000,000. To determine the payback period, we adopted

the Payback method of Investment Appraisal to ascertain our breakeven point
considering our yearly cash inflows and cumulative end of year cash position as

shown in the table below:

32
Year Cashflows Cumulative Cash
Position at the end of
the year
(N’000) (N’000)
0 (15,725,893) (15,725,893)
1 23,358,577 7,632,684

2 24,257,833 31,890,517
3 26,816,843 58,707,360
4 30,403,226 89,110,586

5 37,955,312 127,065,897

The project payback period is thus:

(15,725,893/23,358,577) = 8.07 months

The PBP is approximately 8 months

33
Projected Income Statement

unit Year 1 Year 2 Year 3 Year 4 Year 5

'000 '000 '000 '000 '000

Revenue

50CL Bottle Water ₦ 53,515 58,867 70,640 77,704 93,245

75CL Bottle Water ₦ 8,173 8,991 10,789 11,867 14,241

Dispensable Water ₦ - - - - -

Total Revenue ₦ 61,688 67,857 81,428 89,571 107,486

Direct Costs ₦ 32,473 35,721 42,865 47,151 56,582

Gross Profit ₦ 29,215 32,136 38,564 42,420 50,904

Salaries and Wages ₦ 5,100 5,610 6,171 6,788 7,467

Marketing & Publicity ₦ 200 204 208 212 216

Office Expenses ₦ 80 84 87 92 96

Training ₦ 150 165 198 218 261

Lighting & Heating ₦ 60 66 73 80 88

Maintenance ₦ 380 399 439 505 606

Insurance ₦ 100 110 110 132 132

Audit Fees ₦ 150 150 225 225 225

Subscription, Licenses & Permit ₦ 100 100 110 110 121

Depreciation ₦ 1,029 1,029 1,029 1,029 1,029

Operating Profit ₦ 21,866 24,219 29,914 33,029 40,662

Interest Expense ₦ 810 810 686 416 146

Profit Before Tax ₦ 21,056 23,409 29,227 32,613 40,516

Taxation ₦ 6,317 7,023 8,768 9,784 12,155

Profit After Tax/Net Income ₦ 14,739 16,386 20,459 22,829 28,361

34
Projected Statement of Financial Position

unit Year 1 Year 2 Year 3 Year 4 Year 5

'000 '000 '000 '000 '000

Assets

Current Assets

Cash & cash equivalents ₦ 23,359 47,616 74,433 104,836 142,792

Accounts Receivable ₦ 1,026 1,129 1,355 1,490 1,788

Inventory ₦ 1,246 1,370 1,644 1,809 2,170

Total ₦ 25,630 50,115 77,432 108,135 146,750

Non-Current Assets

Property, Plant and Equipment ₦ 8,802 7,773 6,744 5,715 4,686

Total Assets ₦ 34,432 57,888 84,176 113,850 151,436

Liabilities and Equity

Liabilities

Accounts Payable ₦ 519 566 626 687 757

Tax Payable ₦

Total ₦ 519 566 626 687 757

Non-Current Liabilities

Long Term Loan ₦ 9,000 9,000 6,000 3,000 -

Shareholder's Equity

Investment Capital ₦ 3,857 3,857 3,857 3,857 3,857

Retained Earning ₦ 21,056 44,465 73,692 106,305 146,821

Total ₦ 24,913 48,322 77,549 110,163 150,679

Total Liabilities & Equity ₦ 34,432 57,888 84,176 113,850 151,436

35
Projected Cash flow Statement

unit Year 1 Year 2 Year 3 Year 4 Year 5

'000 '000 '000 '000 '000

Operating Activities

Net Earnings ₦ 14,739 16,386 20,459 22,829 28,361

Plus: Taxation ₦ 6,317 7,023 8,768 9,784 12,155

Plus: Interest Expense ₦ 810 810 686 416 146

Plus: Depreciation ₦ 1,029 1,029 1,029 1,029 1,029

Minus: Changes in Working Capital ₦ (1,752) (181) (440) (239) (590)

Net Operating Cashflow ₦ 21,142 25,068 30,503 33,819 41,102

Investing Activities

Purchase of CAPEX ₦ (9,831) - - - -

Net Investing Cashflow ₦ (9,831) - - - -

Financing Activities

Equity injection ₦ 3,857 - - - -

Loan taken ₦ 9,000 - - - -

Loan repayment ₦ - - (3,000) (3,000) (3,000)

Loan interest ₦ (810) (810) (686) (416) (146)

Net Financing Cashflow ₦ 12,047 (810) (3,686) (3,416) (3,146)

Cash Generated During the Year ₦ 23,359 24,258 26,817 30,403 37,955

Cash at Beginning of Year ₦ 23,359 47,616 74,433 104,836

Cash at the End of Year ₦ 23,359 47,616 74,433 104,836 142,792

36
Ratio Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Financial Performance Ratio

Return on Capital Employed 64% 42% 36% 29% 27%

Return on Asset 64% 42% 36% 29% 27%

Profit/Sales Ratio 35% 36% 37% 37% 38%

Asset Turnover Ratio 1.8 times 1.2 times 1.0 times 0.8 times 0.7 times

Working Capital Efficiency Ratio

Average Receivables Days 6 days 6 days 6 days 6 days 6 days

Average Time For Holding Inventory 14 days 14 days 14 days 14 days 14 days

Average Time to Pay Suppliers 6 days 6 days 5 days 5 days 5 days

Liquidity Ratio

Current Asset 49 times 89 times 124 times 157 times 194 times

Quick Ratio 47 times 86 times 121 times 155 times 191 times

Debt Ratio

Debt to Equity Ratio 36% 19% 8% 3% 0%

Gearing Ratio 27% 16% 7% 3% 0%

Interest Cover 27 times 30 times 44 times 79 times 278 times

Working Capital Cycle (In days) (In days) (In days) (In days) (In days)

Average Inventory Holding Period 14 14 14 14 14

Average Trade Receivable Collection Period 6 6 6 6 6

20 20 20 20 20

Average Time to Pay Suppliers (6) (6) (5) (5) (5)

Cash Operating Cycle 14 14 15 15 15

37
 APPENDIX I

Loan Amortization Table

Loan Principle Amount 9,000,000.00

Annual Interest Rate 9.00%
Loan Period (in months) 60.00
Repayment Type End

Month Repayment Opening Loan Repayment Interest Charged Capital Repaid Closing Balance % Capital Interest
Number Balance Outstanding Rate
=N= =N= =N= =N= =N=
1 1 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
2 2 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
3 3 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
4 4 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
5 5 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
6 6 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
7 7 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
8 8 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
9 9 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
10 10 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
11 11 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
12 12 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
13 13 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
14 14 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
15 15 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
16 16 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
17 17 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
18 18 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
19 19 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
20 20 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
21 21 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
22 22 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
23 23 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
24 24 9,000,000.00 67,500.00 67,500.00 - 9,000,000.00 100.0% 9.00%
25 25 9,000,000.00 317,500.00 67,500.00 250,000.00 8,750,000.00 97.2% 9.00%
26 26 8,750,000.00 315,625.00 65,625.00 250,000.00 8,500,000.00 94.4% 9.00%
27 27 8,500,000.00 313,750.00 63,750.00 250,000.00 8,250,000.00 91.7% 9.00%
28 28 8,250,000.00 311,875.00 61,875.00 250,000.00 8,000,000.00 88.9% 9.00%
29 29 8,000,000.00 310,000.00 60,000.00 250,000.00 7,750,000.00 86.1% 9.00%
30 30 7,750,000.00 308,125.00 58,125.00 250,000.00 7,500,000.00 83.3% 9.00%
31 31 7,500,000.00 306,250.00 56,250.00 250,000.00 7,250,000.00 80.6% 9.00%
32 32 7,250,000.00 304,375.00 54,375.00 250,000.00 7,000,000.00 77.8% 9.00%
33 33 7,000,000.00 302,500.00 52,500.00 250,000.00 6,750,000.00 75.0% 9.00%
34 34 6,750,000.00 300,625.00 50,625.00 250,000.00 6,500,000.00 72.2% 9.00%
35 35 6,500,000.00 298,750.00 48,750.00 250,000.00 6,250,000.00 69.4% 9.00%
36 36 6,250,000.00 296,875.00 46,875.00 250,000.00 6,000,000.00 66.7% 9.00%
37 37 6,000,000.00 295,000.00 45,000.00 250,000.00 5,750,000.00 63.9% 9.00%
38 38 5,750,000.00 293,125.00 43,125.00 250,000.00 5,500,000.00 61.1% 9.00%
39 39 5,500,000.00 291,250.00 41,250.00 250,000.00 5,250,000.00 58.3% 9.00%
40 40 5,250,000.00 289,375.00 39,375.00 250,000.00 5,000,000.00 55.6% 9.00%
41 41 5,000,000.00 287,500.00 37,500.00 250,000.00 4,750,000.00 52.8% 9.00%
42 42 4,750,000.00 285,625.00 35,625.00 250,000.00 4,500,000.00 50.0% 9.00%
43 43 4,500,000.00 283,750.00 33,750.00 250,000.00 4,250,000.00 47.2% 9.00%
44 44 4,250,000.00 281,875.00 31,875.00 250,000.00 4,000,000.00 44.4% 9.00%
45 45 4,000,000.00 280,000.00 30,000.00 250,000.00 3,750,000.00 41.7% 9.00%
46 46 3,750,000.00 278,125.00 28,125.00 250,000.00 3,500,000.00 38.9% 9.00%
47 47 3,500,000.00 276,250.00 26,250.00 250,000.00 3,250,000.00 36.1% 9.00%
48 48 3,250,000.00 274,375.00 24,375.00 250,000.00 3,000,000.00 33.3% 9.00%
49 49 3,000,000.00 272,500.00 22,500.00 250,000.00 2,750,000.00 30.6% 9.00%
50 50 2,750,000.00 270,625.00 20,625.00 250,000.00 2,500,000.00 27.8% 9.00%
51 51 2,500,000.00 268,750.00 18,750.00 250,000.00 2,250,000.00 25.0% 9.00%
52 52 2,250,000.00 266,875.00 16,875.00 250,000.00 2,000,000.00 22.2% 9.00%
53 53 2,000,000.00 265,000.00 15,000.00 250,000.00 1,750,000.00 19.4% 9.00%
54 54 1,750,000.00 263,125.00 13,125.00 250,000.00 1,500,000.00 16.7% 9.00%
55 55 1,500,000.00 261,250.00 11,250.00 250,000.00 1,250,000.00 13.9% 9.00%
56 56 1,250,000.00 259,375.00 9,375.00 250,000.00 1,000,000.00 11.1% 9.00%
57 57 1,000,000.00 257,500.00 7,500.00 250,000.00 750,000.00 8.3% 9.00%
58 58 750,000.00 255,625.00 5,625.00 250,000.00 500,000.00 5.6% 9.00%
59 59 500,000.00 253,750.00 3,750.00 250,000.00 250,000.00 2.8% 9.00%
60 60 250,000.00 251,875.00 1,875.00 250,000.00 - 0.0% 9.00%
11,868,750.00 2,868,750.00 9,000,000.00

40
 APPENDIX I

Loan Amortization Summary

Year Opening Balance Capital Repaid Interest Charge Closing Balance Total Debt Service
=N= =N= =N= =N= =N=
1 9,000,000.00 - 810,000.00 9,000,000.00 810,000.00
2 9,000,000.00 - 810,000.00 9,000,000.00 810,000.00
3 9,000,000.00 3,000,000.00 686,250.00 6,000,000.00 3,686,250.00
4 6,000,000.00 3,000,000.00 416,250.00 3,000,000.00 3,416,250.00
5 3,000,000.00 3,000,000.00 146,250.00 - 3,146,250.00
Total 9,000,000.00 2,868,750.00 11,868,750.00

41
10.0 Milestones

Quarters Action Points

Quarter 1 (Year 1) ▪ Secure funding.

▪ Purchase of Distribution Van
▪ Purchase and installation of semi-
automatic washing, filling, capping and
labelling machine.
▪ Conduct Interview and employ
additional staffs.
▪ Register with NAFDAC.
▪ Outsource Marketing for a period of
6months and also adapt commission
sales. Purchase consumables install
equipment.
▪ Send monthly gratitude message to
customers and conduct review of their
feedbacks.
▪ Commence production.
Quarter 2 (Year 1) ▪ Reinforce intensive marketing
strategies.
▪ Send monthly gratitude message to
customers and conduct review of their
feedbacks.
Quarter 3 (Year 1) ▪ Disengage marketers.
▪ Send monthly gratitude message to
customers and conduct review of their
feedbacks.
Quarter 4 (Year 1) ▪ Commence yearly review of books.
Commence yearly loan repayment to
family and friends if any.
▪ Send end of year message to
customers and conduct review of their
feedbacks.
▪ Review and reinforce marketing
strategy.
Quarter 5 (Year 2) ▪ Buy additional delivery vehicle. Expand
market to Zaria, Kaduna. Send monthly

38
 gratitude message to customers and
conduct review of
▪ feedbacks.
Quarter 6 (Year 2) ▪ Send monthly gratitude message to
customers and conduct review of their
feedbacks.
Quarter 7 (Year 2) ▪ Acquire PET Blower.
▪ Send monthly gratitude message to
customers and conduct review of their
feedbacks.
Quarter 8 (Year 2) ▪ Commence yearly review of books.
Commence yearly loan repayment to
family and friends if any.
▪ Review and reinforce intensive
marketing strategies.
Quarter 9 (Year 3) ▪ Send end of year/New Year message to
customers and conduct review of their
feedbacks.
Quarter 10 (Year 3) ▪ Commence construction of permanent
site. Send monthly gratitude message
to customers and conduct review of
their feedbacks.
Quarter 11 (Year 3) ▪ Creation of sales dedicated
outlets/depot in Zaria and Kafanchan.
▪ Send monthly gratitude message to
▪ customers and conduct review of their
feedbacks.
Quarter 12 (Year 3) ▪ Research, development and creation of
a recycling brand/outfit.
▪ Send monthly gratitude message to
customers and conduct review of their
feedbacks.

39