Business Planon

Nepal Compost Udhyog – step toward clean city

Presented by

Himalaya Ban

Background

Kathmandu the capital with an area of 51sq km and its population more than a million (2012 census).

According to Johns Hopkins report, 524 tons/ day of waste produced only in Kathmandu district.

Today key priority of KMC Office has become the Solid Waste Management.

Facts about solid waste in Kathmandu

524 ton per day waste collected Organic waste 85%(KMC) KMC spend $2.71 per capita per annum

for waste management 1.01% of per capita GNP Sisdol only is not a solution

“Where there is a wish there is a Will”. Turning Trash into Cash

How???

converting

Fertilizer Demand

According to MoAC report, fertilizer demand is approximately 857 ton/year.

Where organic contributes approximately 265 tons/year.

Introduction

Nepal Compost Udhyog is an organization, established by 4 young entrepreneur, located in Chovar with its premises of 10 ropani land.

Organization will :

- collect waste from 200 households (with increment in no. households in future)

- produce compost

Contd…

- will carry on sample organic farming

- timely initiate social activities like society cleaning program, awareness program etc

Missions

“Development of compost in Nepal and promoting youth toward Environment Awareness with motto of clean city”

Objectives

To make compost and promote people toward Organic farming.

To promote youth toward environment awareness.

To promote employment opportunities and women empowerment in Nepal.

Organization Structure

Centralized at first. Top-Bottom Management policy Decentralized (future) Decentralization with matrix structure

Organizational hierarchy

General ManagerGeneral Manager

Supervisor Supervisor

Workers Workers Workers Workers Workers Workers

Shareholders Shareholders

Operation and Management plan Operation plan: focused on conducting

day to day tasks like collecting wastages, classifying it and composting.

Management Plan: focused in about expansion of business, allocation of capital, capital budgeting, etc.

Design and Development Plan Product development

Market and Pricing Current Market Scenario

Total fertilizer demanded (both organic and non-organic) = 857 ton/year

Organic fertilizer demand = around 265 ton/year

Retail price of other producer

= Rs 25-30per kg Our organization

Production about 20-100 ton

Retail selling price = Rs 20-25per kg

Organization Coverage plan

Focused on farmers, nurseries, parks and household .

Stage Market Coverage Time(years)

I Inside Valley 0-5

II Places near Valley 5-10

III Outside Valley 10-above

Marketing Strategies

Create awareness of our product Produce qualitative product Pricing at lower rate for market

penetration Market segmentation and target marketing Promotion and Advertisement

Competitive strategies

Cost leadership Innovation Differentiation Alliance Aggressive growth

SWOT Analysis

Strength: Cost effective Quality products Expandable organization Less operating cost Eco-friendly

Contd..

Weakness: New to the industry Entrepreneur with less experience

Contd…

Opportunity: High demand Local employment Less capital needed to penetrate industry Huge growth opportunity Less rivalry Government support to agriculture sector

Contd..

Threats: Previously established Competitors Unstable political situation

Risk Management

Form new strategies Diversifying our business investment Organic farming, recycling Aggressive promotion of our product

Financial Feasibility

Short term sources Revenues from sale of compost Revenues from the sale of scraps Revenues from the household as collection charges Revenues from the sales of recycled and reprocessed goods

Long term sources Investment from Shareholders Retained Earnings Loans from Banks Funds from Government and INGO’s

Projected 1st year Income Statement of Nepal Compost Udhyog Particulars Amount Amount Amount

Revenues:

Compost Sales (Rs 25*80000kg) 2,000,000

Scrap Sales 180,000

Collection Revenue (Rs150*200*12) 360,000

a) Total Revenues 2,540,000

Expenses:

Salaries and Wages 780,000

Rent & Land 480,000

Electricity ,water & miscellaneous 88,000

Stationary 25,000

Advertising (audio, video, paper) 220,000

a) Total Expenses 1,593,000

Income from Operations (a-b) 947,000

Tax @ 25% 236,750

Net Income 710,250

Projected 1st year Balance Sheet of Nepal Compost Udhyog

Projected financial highlights

Project Fund

Future InvestmentOrganic Fertilizer Plant

Capacity: 200tons/day Price: Rs 46,56,000

Paper recycler Machine

Cost: Rs 14,75,000

Allocated Capital Structure for Future Investment.

Thank You!