BUSINESS START-UP PLANBUSINESS START-UP PLAN

MASS AGRO COMPANY LTD.MASS AGRO COMPANY LTD. INTRODUCINGINTRODUCING BANANA WINE.BANANA WINE.

GROUP - 5DATE:29/07/09

MEMBERS: a. “AJ” Kencho (Bhutan) b. “Mara” Dona (Solomon) c. Soraj (Nepal) d. Su “Sunia” (Fiji)

Line of businessLine of business Beverage ProductBeverage Product Expected Expected date of start-date of start-upup

11stst of January, 2010 of January, 2010.. LocationLocationofofbusinessbusiness

Katmandu, NapelKatmandu, Napel..

Objectives and opportunitiesObjectives and opportunities-To provide cheap wine, which is accessible for mass.-To provide cheap wine, which is accessible for mass.-To take advantage of a product which is cheap and easily available.-To take advantage of a product which is cheap and easily available.-To formulate a wine, with low percentage alcohol and healthy too. -To formulate a wine, with low percentage alcohol and healthy too. -Raw materials are easy to get through out the seasons.-Raw materials are easy to get through out the seasons.-Reduce the import of wines.-Reduce the import of wines.-Generate revenue. -Generate revenue. -Create job employment and increase per Capita income.-Create job employment and increase per Capita income.-Increasing Value Added business.-Increasing Value Added business.-To increase the Foreign Exchange.-To increase the Foreign Exchange.

Business experienceBusiness experience We have no experience to run business as such. We have no experience to run business as such.

Relevant Relevant experience, education,experience, education,certificatescertificatesand personal backgroundand personal background

We have a general Managing and marketing knowledge, but no business experience as yet. We have a We have a general Managing and marketing knowledge, but no business experience as yet. We have a degree certificate on Management, Economic and Mass communication. degree certificate on Management, Economic and Mass communication. Our interest is to run successful Beverage business, which in turn can benefit both our company and Our interest is to run successful Beverage business, which in turn can benefit both our company and the Country.the Country.

1.Business Proposal

Detailed products Detailed products and/or and/or servicesservices

Wo La laWo La la…..! Sparkling banana wine (Brand name)…..! Sparkling banana wine (Brand name)

Banana Wine with 5% alcohol.Banana Wine with 5% alcohol.

Quantity in liters. (i.e. 2 lit., 1 lit., 500 ml)Quantity in liters. (i.e. 2 lit., 1 lit., 500 ml)

Packaging & labeling : Designed bottle with Graphic design on it. Packaging & labeling : Designed bottle with Graphic design on it. Wo La la…..! Wo La la…..! 44 u..u..

StrengthStrength Healthy drink.Healthy drink.LLow alcohol % contains.ow alcohol % contains.Natural banana taste.Natural banana taste.It’s a Cool Summer drink. It’s a Cool Summer drink. No artificial flavor added.No artificial flavor added.No artificial preservativesNo artificial preservatives..High nutrition valueHigh nutrition value

2. Customers and Suppliers

CustomersCustomers (including channels and distribution) (including channels and distribution)SuppliersSuppliers

18 years and above. Target -Medium class community.18 years and above. Target -Medium class community.

Restaurants, departmental stores, bars, hotels, clubs, Retailers, wholesalers, Restaurants, departmental stores, bars, hotels, clubs, Retailers, wholesalers, agents and so on..agents and so on..

Promote by Newspapers, billboards, gimmick strategies, posters, banners & Promote by Newspapers, billboards, gimmick strategies, posters, banners & pamphlets. pamphlets.

Directly from Local farmers and Local markets.Directly from Local farmers and Local markets.

Assets purchase / leasing

Operational

funds

Required fundsRequired fundsAmountAmount

(US$)(US$)Fund raisingFund raising

AmountAmount(US$)(US$)

1.Land1.Land2.Building2.Building3.Automobiles3.Automobiles( 2 pick-up trucks)( 2 pick-up trucks)4. Plant and machinery4. Plant and machinery..a. stainless steal tank(3 no.)a. stainless steal tank(3 no.)b. wooden vat (100 no.s)b. wooden vat (100 no.s)c. Fruit press & Crasser c. Fruit press & Crasser d. Grinder (2 no.)d. Grinder (2 no.) e. Pump & pipelines e. Pump & pipelines f. Lab equipmentsf. Lab equipmentsh. Security equipmentsh. Security equipmentsi. Othersi. Others5. 5. Computer, Fax and other office Computer, Fax and other office equipmentsequipments

600060009000900015,00015,0005,4005,400100010002000200020002000100010002500250050050060060010001000

Own capitalsOwn capitals4 partners have contributed 10,000 each.4 partners have contributed 10,000 each.

40,00040,000

Loans from family, relatives and friends.Loans from family, relatives and friends.

(Payable within five years, No interest(Payable within five years, No interest))

10,00010,000

Public grantsPublic grants..

1. Raw material (2 months)1. Raw material (2 months)

2. Building for storage rental2. Building for storage rental

3.3. Salaries. Salaries. 4.4. UtilitiesUtilities

5.5. Marketing expensesMarketing expenses

6. Packaging and Labeling 6. Packaging and Labeling expensesexpenses

7.Research and Development7.Research and Development

65006500

200200

44004400

500500

10001000

10001000

400400

Loans from commercial banks, for five years.Loans from commercial banks, for five years. (@5%per annum)(@5%per annum)

10,00010,000

Total (A)Total (A)6000060000

Total (B)Total (B)6000060000

3.Required Funds and Fund Raising

Operational

expenses

Start-upStart-up(US$)(US$)

1 year later1 year later(US$)(US$)

Details of Revenue, Costs of Products and Details of Revenue, Costs of Products and Operational expensesOperational expenses

Revenues (1)Revenues (1) 94509450 14,00014,000 Revenue:2700 lits. per months x Revenue:2700 lits. per months x $3.5/lit=9450$3.5/lit=9450

Cost of Production per month=3250 Cost of Production per month=3250 Other operational exp. per month=4100Other operational exp. per month=4100

Costs of products (2Costs of products (2)) 3,2503,250 5,0005,000 Sales per month=1 liter =1700 bottles &Sales per month=1 liter =1700 bottles &

500ml= 2000 bottles500ml= 2000 bottles..

SalariesSalaries 22002200 2,5002,500

RentsRents 100100 100100

Interests /Interests /installmentsinstallments

190190 190190

OthersOthers 1,3001,300 1,5001,500

Sub-total (3)Sub-total (3) 3,7903,790 4;2904;290

IncomeIncomebefore taxbefore tax

(1) – (2) – (3)(1) – (2) – (3)

2,4102,410 4,7104,710

4. Income Forecast (monthly average)

Year 2010Year 2010 JanJan FebFeb MarMar AprApr MayMay JunJun JulJul AugAug SepSep OctOct NovNov DecDec

   ActualActual ActualActual ActualActual ActualActual ActualActual ActualActual ActualActual ProjectProject ProjectProject ProjectProject ProjectProject ProjectProject

Carry-forward Carry-forward from last from last month (A)month (A) 70007000 9410 9410 9430 9430 9325 9325 9235 9235 9250 9250 9260 9260 9265 9265 9225 9225 9180 9180 9135 9135 9090 9090

CashCash 94509450 4040 2525 2525 5555 3030 3030 3030 2525 2525 2525 2525

ReceivablesReceivables 00 720720 650650 600600 650650 700700 700700 650650 650650 650650 650650 650650

Revenue (B)Revenue (B) 94509450 760760 675675 625625 705705 730730 730730 680680 675675 675675 675675 675675

Cost of Cost of productsproducts 3,2503,250 450450 500500 450450 420420 450450 430430 450450 450450 450450 450450 450450

SalariesSalaries 2,2002,200 160160 150150 145145 150150 150150 160160 150150 150150 150150 150150 150150

RentsRents 100100 5050 5050 5050 5050 5050 5050 5050 5050 5050 5050 5050

InstallmentsInstallments 190190 1010 1010 1010 1010 1010 1010 1010 1010 1010 1010 1010

OthersOthers 13001300 7070 7070 6060 6060 6060 7575 6060 6060 6060 6060 6060

Expenses (C)Expenses (C) 70407040 740740 780780 715715 690690 720720 725725 720720 720720 720720 720720 720720

Carry-forward Carry-forward to next to next month month (A+B-C)(A+B-C) 9410 9410 9430 9430 9325 9325 9235 9235 9250 9250 9260 9260 9265 9265 9225 9225 9180 9180 9135 9135 9090 9090 9045 9045

Cash Flow Forecast

(US$K)

THANK YOU….THANK YOU….