1. Basic information

Name: Royal Die-Casting

Physical Address: Industrial State 2, Gujranwala

Postal Address: P.O.Box XYZ, Industrial State 2, Street 6, Gujranwala, Pakistan

Cell No: 0321-6451250, 0331-6434654

Ph No: 055-4298230, 055-4298231

2. Business Description

2.1 History

Royal Die-Casting is a new business. Royal Die-Casting will be a quality conscious company

dedicated to provide superior quality kitchenware to both local and international markets. Sonex

Die-Casting will be a reason of joy to Pakistani households, by providing the finest quality

cookware produced domestically. Over the years, the company will make a name for itself in the

international arena. We will export in major international markets including U.S.A, Europe and

the Middle East. Americans and Europeans preferred die-casting cookware because it gives

heavy look. At Sonex Die-Casting, our teams will be of dedicated individuals are working round

the clock to ensure continuous product improvement, as we want to ensure maximum customer

satisfaction to our clients. The top-class management, in conjunction with state-of-the-art

machinery and quality control standards, ensures world-class quality cookware. We aspire to

continue providing our customers with the best quality products in the future and promise to

fulfill their culinary needs with world-class products. Americans and Europeans preferred die-

casting cookware because it gives heavy look.

2.2 Goals

Sonex Die-Casting opportunity is being pursued because of following reasons.

Sonex introduces die-casting cookware lines, highlighting ‘Healthier Cooking with

Sonex’ strategy

Sonex Die-Casting aims to create new cooking experience for customers in all segments

Sonex Die-Casting will have high profit margins.

Raw Material Melting Pouring Drawing

Sand BlastingColouringToolingPackaging

Aluminum hard which used as raw material, are cheaper than regular aluminum.

2.3 Core activities

Sonex Die-casting will be a manufacturing firm. Core idea of business is manufacturing process.

Process Flow Diagram

2.4 Location

We want to establish Sonex Die-casting in the industrial state 2. There are many benefits

regarding this. There will be a proper load shedding schedule of gas, electricity. Industrial union

and no need of environmental permits. Sonex Die-casting will serve locally as well as

internationally. We will provide the product locally in every main city of Pakistan like Lahore,

Rawalpindi, Karachi, Peshawar, Quetta and Faisalabad. Internationally will distribute our

products to Manchester, New York, Dubai, Al-Riaz and Cape Town.

2.5 Products

Sonex Die-casting will manufacture five different kinds of products. Potential customers are

currently using non-stick, anodized and stainless steel cookware. Customers will shift to Sonex

Die-casting because of its ceramic coating, which is more durable and healthy according to

laboratory evidence.

Products Name Sizes

Dosa Plate 3

Casse Role 5

Cooking Vok 5

Sauce Pan 5

Fry Pan 5

2.6 Suppliers

Sonex Die-casting will procure raw material from different suppliers. All the selected suppliers

have many much experience in market. They have lot of demand in market. We will enter in to

agreement with suppliers that payment will provide after first test. We have selected these

suppliers because of required material availability, cheap rate and near to company. Products will

deliver within a day of demand.

Raw Material Supplier

Aluminum Qadri Impex, Malik Shahzad & Co.

Color Zafar & Co, Local market

Screw Bala Enterprizes

Handle Sonex Becolate

2.7 Ownership structure

Sonex Die-casting will have six share holders. Sonex international will provide 25% capital and

other shareholders will provide 12% each. All the share holders will run the company as different

directs such a finance, marketing, operations, procurement and HR. We will give 25% profit to

Sonex international and 15% to each director.

Shareholder Capital

Investment

Designation

Ghulam Dastgir Butt 30% CEO

Ali Raza Butt 15% Procurement Director

Abubakar Mehmood 15% Operation Director

Umer Aslam 15% Marketing Director

Usman Rathor 15% Finance Director

3. Legal consideration

3.1 Company registration

Sonex Die-casting will have to register form security and Exchange commission of Pakistan. In

order to register, we will apply for incorporation certificate which will cost 0.75% of authorized

capital. We will provide Article of Memorandum and Sonex Die-casting is registered.

3.2 Trading licensing & Tax Registration

Sonex Die-casting will have opened a band account in order to get National Tax Number from

Federal Board of Revenue. After with get sale tax registration from FBR.

At the end, Sonex Die-casting will register from chamber of Commerce of Gujranwala to get

import and export license.

4. Opportunity

4.1 Target Market Analysis

Sonex Die-casting target market is a mix between men and women of households that have an

income of 5,0000 Rs plus. The age range of the target group tends to be between ages 30 to 55.

Majority of the group received their products as either a gift from someone or purchased the

product as a gift for someone else. The group tends to care more about what the product can do

rather than how it looks. The group also has a large likely hood of watching cooking shows and

then purchasing cookware with familiar names of cooking celebrities or brands used by those

seen on shows. From a distribution standpoint, the target market is more likely to purchase

cookware at a large mass merchandise outlet or department store where they are able to see

cookware displayed alongside other competing products. The target preferring to purchase the

highest quality with the most features is most likely going to compare competing brands, so they

prefer stores that display products for easy comparisons. From a price standpoint, the target

market, like many want to have the biggest “bang” for their dollar. Price of products indicates

that the target market considers price a major factor when making a decision to purchase or not.

With the target market purchasing majority of products through mass merchandising outlets and

department stores, some of the target market will not make a purchase till a

discounted/promotional price is offered.

4.2 Competition

Sonex cookware industry has many competitors in the local and international market such as

kitchen king, Casio, Majistic, Tefal, Americancraft, Meyer and Prestige. China is the main

competitor in local market. Kitchking, Casio and Majistic are main competitor of Sonex in

Pakistan. Tefal is the number one non-stick industry in the world but their market share is very

low 2% in Pakistan local market because of their very high prices. Americancraft, Meyer and

Prestige are manufacturing of America, Japanies and chiness respectively. They have used all the

possible method of marketing such as print and electronic media. Strengths of international

players are mass production, heavy investment, appearance and performance. There weakness is

heavy price.

4.3 Competitive Advantage

Competitive advantage of Sonex Die-casting is process elimination and low cost of aluminum

raw material. Process elimination will eliminate 5 to 7 processes as compared normal cookware

manufactured. Low cost of aluminum which is used raw material will also competitive edge for

Sonex Die-casting. In this way, Sonex Die-casting will create monopoly in Pakistan market

because it needs heavy investment and industry is not aware of die-casting of cookware.

5. Marketing

5.1 Cost & Pricing

Sonex Die-casting will produce five different cookware products, each of which has 3 to 5 sizes.

In order to make our calculation easier, we will select regular size as standard, so calculated costs

and prices are

Product Cost Price

Dosa plate 500 550

Casse Role 1200 1320

Sauce Pan 500 550

Fry Pan 300 330

Cooking Vok 900 990

5.2 Sales Projections

Sonex Die-casting will make sample and distribute to distributers and wholesalers. Within month

of sample distribution, company will arrange meeting with dealers. In this way, company can get

the exact idea of sales. According to an estimate, company cans sale 50000 to 70000 pieces

within month. Sonex Die-casting will have export potential of 50% to 70%. There is lot of

demand for Die-casted cookware products in international market.

5.3 Marketing Plan

Sonex Die-casting will market die-casting products through billboards and displays. Company

will contact with dealers to rent a billboard in their respective cities. Company will buy displays

at every shop through deals. So the shopkeeper will display Sonex Die-casting cookware at front.

All of this will cost approximately Rs. 500000. There is no need of aggressive advertising like

electronic media and etc. because our product is not such type.

5.4 Organizational Hierarchy

5.5 Personal Expertise

Name Technical expertise

Ghulam Dastgir Butt 22 years old, BBA, Marketing Assistant in GBC

Ali Raza Butt 22 years old, BBA, Marketing Assistant in GBC

Abubakar Mehmood 24 years old, BBA, Accounts Assistant in GGL

Umer Aslam 22 years, BBA, Sales Assistant in Mobilink

Usman Rathor 22 years, BBA, Operational Assistant in Pepsi

6. Die-Casting Technology

Die casting is a manufacturing process in which molten metal is injected, under considerable

pressure, into a hardened steel die or also called die casting mold. Dies are often water-cooled.

The die is then opened, and the die casting parts are ejected (many times thousands of die casting

CHIEF EXECUTIVE

OFFICER

DIRECTOR FINANCE

ACCOUNT MANAGER

COMPUTER ASSISTANT

IMPORT & EXPORT

MANAGER

COMPUTER ASSISTANT

DIRECTOR PROCUREMENT

MANAGER PROCUREMENT

COMPUTER ASSISTANCE

DIRECTOR PRODUCTION

NON-STICK SUPERVISOR

STORE KEEPER

QUALITY CONTROLLER

LABOR

DIRECTOR HUMAN

RESOURCE

MANAGER HR

COMPUTER ASSISTANT

DIRECTOR MARKETING

MARKETING MANAGER

COMPUTER ASSISTANT

parts each day, sometimes only a few hundred die casting parts). Once the die casting tooling is

paid for, die casting parts are a very inexpensive aluminum part manufacturing process.

Compare High pressure die casting to Other Manufacturing Processes.

Why Use Die Casting in aluminum:

6.1 Forgings

Compared with forgings, die casting can be more complex in shape and have shapes not

forgeable, can have thinner sections, be held to closer dimensions, and have coring not feasible

in forging.

6.2 Extrusions

Compared to extrusions, die casting can be produced faster and more net shape. Features and

depressions on the sides, tops and bottoms can be created in one operation. There is less waste

using die casting than extrusion. Holes can be cast in place to save additional machining cost.

6.3 Stampings

Compared with stampings, one die casting can often replace several parts. Die casting frequently

require fewer assembly operations, can be held within closer dimensional limits, can have almost

any desired variation in section thickness, involve less waste in scrap, and are producible in more

complex shapes. Die castings can be made in many shapes not producible in stamped form.

6.4 Sand castings

Compared with sand castings, die castings require much less machining, can be made with

thinner walls, can have all or nearly all holes cored to size, can be held within much closer

dimensional limits, and are produced more rapidly in dies which make thousands of die castings

without replacement. Die castings do not require new cores for each casting, are easily provided

with inserts die cast in place, have smoother surfaces and involve much less labor cost per

casting.

6.5 Permanent mold castings

Compared with permanent mold castings, die castings can be made to closer dimensional limits

and with thinner sections and holes can be cored to near net shape. Die castings are produced at

higher rates with less manual labor, have smoother surfaces, and usually cost less per die casting.

6.6 Advantages of Die Casting

Die casting is an efficient, economical process offering a broader range of shapes and

components than any other manufacturing technique. Parts have long service life and

may be designed to complement the visual appeal of the surrounding part. Designers can

gain a number of advantages and benefits by specifying die cast parts.

High-speed production - Die casting provides complex shapes within closer tolerances

than many other mass production processes. Little or no machining is required and

thousands of identical castings can be produced before additional tooling is required.

Dimensional accuracy and stability - Die casting produces parts that are durable and

dimensionally stable, while maintaining close tolerances. They are also heat resistant.

Strength and weight - Die cast parts are stronger than plastic injection moldings having

the same dimensions. Thin wall castings are stronger and lighter than those possible with

other casting methods. Plus, because die castings do not consist of separate parts welded

or fastened together, the strength is that of the alloy rather than the joining process.

Multiple finishing techniques - Die cast parts can be produced with smooth or textured

surfaces and they are easily plated or finished with a minimum of surface preparation.

Simplified Assembly - Die castings provide integral fastening elements, such as bosses

and studs. Holes can be cored and made to tap drill sizes, or external threads can be cast.

6.7 Companies using Die-casting Technology

Ningbo Kitchen Utensils Co., Ltd., Hangzhou Kitchenware Co., Ltd., Yongkang Unique

Hardware Products Factory, Hangzhou Metals Minerals Machinery and Chemicals Imp. & Exp.

Co., Ltd. Sun Woo INC., 

7. Finance

7.1 Expenses

Sonex Die-Casting will have three different types of expenses.

Capital infrastructure

Raw Material

Salaries & wages

Capital Infrastructure

Furnace= 100,000 x 3= 300,000

Die-casting Machine= 10,000,000 x 3= 30,000,000

Sand Blasting= 1,800,000

Curing Tunnel= 3,500,000

Tooling Machine= 400,000

Building = 1,000,000

Furniture= 200,000

Raw material cost

Aluminum= 4,000,000 x 2= 8,000,000

Aluminum Sand= 50,000

Color= 2,000,000

Tooling Accessories= 150,000

Salaries & Wages

Salaries & Wages= 800,000

Utilities and Overheads

Factory over heads= 300,000

Land Rent= 50,000

Total expenses are 52 million which include

Description Total Investment

Start Up cost 51 M

Capital Infrastructure 37.20 M

Working Capital 13.8 M

Salaries 0.8 M

Utilities & Overheads 0.2 M

Total Capital Investment 52 M

7.2 Profit & Revenue

Sonex Die-casting will have a profit margin of 10% at every product. For simplicity, average

profit per piece is Rs. 68. Sonex Die-casting will produce approximately 1500 pieces per day.

Production per Machine= 500

Number of Machines= 3

Production= 1500 per day

Number of working days= 25 days

Total production= 37500 per month in pieces

Total production= 25,500,000 Rs per month

Total Revenue= 28, 050, 000 Rs per month

Total profit= 2,550,000 Rs per month

We will sale product at two month credit. So company will not get anything in first two months.

Company will get positive cash flows after two months so 13.8 million is working capital of

Sonex Die-casting.