WELCOME

We are

SHARPSHOOTER

Friends & Company

Presentation of Jute Composite Manufacturing Project.

Presented by:
Manuar Hossain Md. Tahidul Islam Mithun Kumar Devnath Mohammed Hossain Md. Amir Foysal Md. Zahid Morshed
On behalf of

Friends & Company

Friends & Company

Friends & Company At a Glance

Established

on 2006 Private Limited Company Six Shareholders Produces Traditional Jute Goods.
Jute Bags Carpets Sacks etc.

Friends & Company

Why this Project

Technical Point of View.

Marketing Point of View.

Financial Point of View

Socio-Economic Point of View.

Friends & Company

Why this Project

Socio-Economic Point of View

Exporting Raw Jute to India

Friends & Company

New Project
Project Name: Jute Composite Manufacturing Project Mission Statement: Utilizing local raw materials to make a sense of global. Goal and Objective: Demotivating the export of raw jute Earning More Foreign Currencies. Sustainable Economic Development. Location: Mishrideara, Jessore, Bangladesh. Project Land: 10 Acres Cost of Project: Fixed Cost: 200m, Working Capital: 38.5m
Friends & Company

New Project

Production Target:
Quantity 1000 6000 10000 1000 10000

(Taka in million)
Amount of Taka 000000 20 30 5 10 4

Unit Door liners (Front & Rear)

Parcel shelves

Seat belts
Sunroof sliders

Noise Vibration & Harshness (NVH) material Dash boards `Total

500

10.5 79.5
Friends & Company

New Project

Means of Finance
Existing investment Proposed investment

(taka in million)
Total investment

Fixed investment

Sponsor Equity 200

Term Loan Total 000 200

150
150 300

350
150 500

Debt Equity Ratio: 50: 50

Financial Projection
FY I 80% 79.5 15 4.6 FYII 90% 80 17 6.5
Friends & Company

Financial Projections Expected capacity utilization Sale/Revenue earning Gross profit Net profit (before tax reserve)

FYIII 95% 85 18 7.4

New Project

Internal Rate of Return: 25% Breakeven Sales: BDT 78.21million Capacity Utilization: 33%

Employment Generation: 110

Friends & Company

Technical Aspect
Products
Front door liners Rear door liners Boot liners Parcel shelves Seat belts Sunroof sliders Noise Vibration & Harshness (NVH) material Dash boards

Friends & Company

Technical Aspect

Components on a generic vehicle, made from natural fiber composite materials.

Friends & Company

Technical Aspect

Automotive manufacturers using different bio-fibers.

Model and application A2,A3,A4,A4 Avant,A6,A8,Roadstar,Coupe: Seat back, side and back door panel, boot lining, hat rack, spare tire lining 3,5 and 7 series and others: Door panels, headliner panel, boot lining, Seat back Mondeo CD 162, Focus: Door panels, B-piller, boot liner Door panels, seat back C70, V70 Space star: Door panels Colt: Instrumental panels Rover 2000 and others: Insulation, rear storage shelf/panel Friends & Company

Automotive manufacturer Audi

BMW

Ford
SEAT Volvo Mitsubishi Rover

Technical Aspect

Automotive door in-liner, instrumental panel made from jute fiber reinforced composites

Friends & Company

Technical Aspect

Newest Mercedes S class automotive components made from different bio fiber reinforced composites.

Friends & Company

Marketing Plan

Market Segmentation: Automotive Manufacturers Who Produce Luxurious Car. Market Niche: Car Producers using bio-fibers In Their Car Components.

Pricing Policy: We Are Price Taker Not Price Maker

Marketing Strategy: One To One Marketing Strategy, No Middle Man or Agent. Advertising Plan: Web based Advertising Plan

Friends & Company

Marketing Plan
Demand Analysis
Total consumption of bio-fibers within Western Europe, 2005 2010 are.
Demand(Tons)
120000

100000

80000

60000

40000

20000

0 Year 1996 1999 2000 2005 2010

Friends & Company

Marketing Plan
Estimated market share

Considerable Research and Analysis work has been done by R&D wing of Friends and company in the area of natural fiber composites we decided to capture minimum 1% (around 1200 tons) of total market shares of jute composites.

Friends & Company

Marketing Plan Competitive situation

Price competitiveness

Comparative price of raw jute in the world market

Friends & Company

Marketing Plan
Competitive Situation

Factor Technical Characteristics

Non price competitiveness

Jute and Hard Fibers (+) breathability (jute bags) (+) reusability and biodegradability (+) natural look (-) presence of dust and fine fibers (-) unsuitable for automatic filling systems (-) occasional problems Polypropylene (+) high tensile strength and impact resistance (+) light weight (+) rot-proof, not shrinkable and water-resistant (-) danger of flammability and smoke toxicity (+) consistent quality

Quality Reliability of Supplies

Marketing

(-) instability of supplies (+) regular supplies, due to the production possible at dependence on weather short notice conditions and a longdistance transport (-) absence of an (+) aggressive marketing organized marketing strategies Friends & Company system

Marketing Plan
Company Logo (Proposed)

Friends & Company

Operational Plan
Business Process Model

Friends & Company

Operational Plan

Friends & Company

Management & Organization

Organizational Hierarchy

Friends & Company

Management & Organization

Personnel Requirement
Sl. No. Particulars Number

1 2

Project Manager Production Manager

1 1

3 4 5 6 7 8
9 Total

Sales Manager Technical person Supervisor Quality controller Labor Driver

Guard

1 2 5 3 90 2
5 110
Friends & Company

Management & Organization

Board of Directors

Chairman of B.O.D. Manuar Hossain Vice Chairmen of B.O.D. Mithun Kumar Devnath Md. Amir Foysal Md. Tahidul Islam Mohammed Hossain

Managing Director

Md. Zahid Morshed

Advisors

Mr. Abu Md. Atiqur Rahman. Prof. Dr. Selina Aktar.

Friends & Company

Financial Aspect
Earning Forecast
Particulars Sales Revenue Cost of Production Gross Profit Operating Expense 1st Year 79.5 69.5 15 10.4 2nd Year 80 69 17 10.5 3rd Year 85 72 18 10.6

Profit before tax Income tax Net Profit Cumulative Profit

4.6

6.5 Tax Holiday

7.4

4.6 4.6

6.5 11.1

7.4 18.5
Friends & Company

Financial Aspect
Startup Expense
Sources of Capital Owners' and other investments Bank loans Total Source of Funds BDT150,000,000.00 BDT150,000,000.00 BDT300,000,000.00

Startup Expenses

Buildings
Capital equipment Location/administration expenses Opening inventory Advertising/promotional expenses Contingency fund Working capital Total Startup Expenses

BDT 55,000,000.00
BDT151,350,000.00 BDT 831,500.00

BDT 30,000,000.00 BDT 2,750,000.00

BDT 2,000,000.00
BDT 50,000,000.00

BDT291,931,500.00
Friends & Company

Financial Aspect

Cash Position:
Cash Position at the end of 12 month: BDT 335.5million

Breakeven Analysis
Breakeven Sales Level: BDT 78.2million

Friends & Company

Conclusion And Recommendation

Friends & Company

Friends & Company