specialized in organic halal meat products
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Specialized in Organic Halal Meat Products
Tarika BrooksChukwunanu DieiEmeka IchokuStephanie SchwoobAtish GangurdeChiedza Munochiweyi
COMPANY DESCRIPTIONHIND AGRO INDUSTRIES LIMITED (HAIL)
Provides meat slaughtering and processing services since 1994.
Located outside of Jakarta, Indonesia.
Exports internationally to Europe, Middle East, Africa, and Asia.
The company has an annual turnover in excess of $200,000,000
Hind Agro Industries Limited is the only company in the country to have the unique facilities of slaughtering the animals which have been bred and reared on strict guidelines set by the O.I.E. Paris.
Has the most modern abattoir-cum-meat processing plant.
Company also has intensive feed lot to raise calves on organic farming with natural feeds.
The source and traceability of the animals are documented from the farm to the finished product.
The company provides assistance to the farmers by supplying feed and veterinary services from the experts belonging to it. Qualified Veterinary Doctors conduct ante-mortem and post-mortem examinations on the animals procured from disease-free zones recognized by the U.P. Government’s Veterinary Department.
The Halal plant has production capacity of 400,000 metric tones (MT) of meat.
All the Plant machinery and equipments
used are sourced from Australia, New Zealand, Europe.
For its quality production, Hind Group has
received 10 consecutive APEDA awards and 3 National Productivity awards for export of excellent quality meat, from the Ministry of Commerce.
PRODUCT DESCRIPTION
PRODUCT DESCRIPTION An ``Islamic brand ``: it’s a brand that is based on the ethics and values of Islam
ZabihaThe name of God (Allah) is to be pronounced as a reminder that we do not have the right to take the animal’s life except by the permission of God to meet our need for food.
A sharp blade and skill in slaughtering is required to minimize pain and unnecessary suffering for the animal. This is accomplished by a quick cut to sever the veins and arteries of the neck of the animal, without cutting the nervous system or spinal cord. The massive bleeding makes the animal unconscious in seconds. Leaving the spinal cord intact allowing for convulsions that result from the contraction of the muscles in response to the lack of oxygen in the brain cells. This will allow for the maximum drainage of blood, carrying away in part the waste and micro-organisms, thereby improving the meat's taste, shelf-life and healthiness.
In order to ensure a high quality product, the dates and times of the slaughter are on record.
Once the meat is cut up and processed, it is packed into containers. The packaging of Halal products cannot contain any Najs*, toxic or harmful components that could contaminate the meat
HAIL has written approval to use Halal labels and logos. In order for the product to be transported, it must have the name/symbol, name of product, ingredients, weight, and date of production and special codes for tracing the product back to the source
Halal meat is stored above other meat to protect it from cross contamination
HUMAN RESOURCES MANAGEMENT
ORGANIZATIONAL
STRUCTURE
MANAGEMENT
PRODUCTION
SALES
ADMINISTRATION
MANAGEMENTPresident/MD
Vice President/Finance Director
Director of Operation
Director of Sales & Marketing
ADMINISTRATION
Administrative Assistant (4)
Operation Planner (2)
Accounting Clerk (2)
Shipping Supervisor
PRODUCTIONForeman
Line Supervisor
Consumer Supervisor
Shipping Supervisor
SALES
Sales Manager
Domestic Sales Representative (2)
International Sales Representative (2)
PROJECT TEAM The department team consists of the Director of Sales and
Marketing, Sales Manager, Consumer’s Supervisor, and Shipping Supervisor.
The Director of sales and marketing, Fiona Stevenson promotes the sale and production of Halal meat products in both countries. The sales staff will develop the personal relations with the potential importer.
Production individuals will prepare the product for the foreign market and meet country sanitary and phytosanitary measures and manage the shipping. Another task of the production team is to manage new packing operations for all Indonesian exports.
The Foreign Sales Representatives work jointly with the production staff and the Indonesian staff. The Foreign Sales Representatives will also be responsible for any travelling between the countries. The Sales Representatives will work jointly with the Director of Sales and Marketing to negotiate the contractual sales agreement and terms of foreign payments.
FACTORS CONSIDERED
Target market/customers: Muslim population, others
Intensity of rivalry among competitors; domestic and international suppliers
Ease of entry and sustainability in the market: Barriers Cost of doing business
COUNTRY ATTRACTIVENESSNigeriaPopulation: 170, 123, 740Muslims: 50% (85, 061, 870)
Growth: 2.55% Nation (2012)50% Muslims (2030)
RISKS Political stability
Corruption Terrorism threat/kidnapping
Legal/Regulatory risks NAFDAC, Customs and others
Competitive Rivalry Risk Cameroon
Financial risk Exchange rate fluctuation
ENTRY STRATEGY
DISTRIBUTORSHIP SPAR (Artee Group)
Biggest retail chain in Africa
No direct investment into Nigeria by HAIL
Minimization of risks to HAIL
Good brand name
COMPETITIVE ADVANTAGE No major competition in Nigeria (First
Mover)
Experience in product processing
World class standards certification in Halal meat production
Brand dependability and reputation
Product pricing and economies of scale
COMPETITIVE ADVANTAGE CONT’D Low cost of product sourcing and
processing
High consumer base
Easy market penetration
FINANCIALS (START UP & RUNNING COSTS)
CAPITAL COSTS ($000)
Land 5,000Equipment 3,000Working Capital 60,510Miscellaneous 1,000TOTAL 69,510
ANNUAL OPERATIONS COST ($000)
Production & Processing 50,000Project Management & Labour 5,110Outsourced Services 5,400TOTAL 60,510
FINANCIALS CONT’D(COST ASSUMPTIONS)
COST INPUTS
LABOUR UNIT (NO) COST ($) TOTAL COST ($)
PRODUCTIONWorkers 30 50,000 1,500,000
Foreman 1 100,000 100,000
Plant Supervisors 3 90,000 270,000
Total 34 1,870,000
MANAGEMENT
Managing Director 1 500,000 500,000
Finance Director 1 400,000 400,000
Operations Director 1 400,000 400,000
Sales & Marketing Director 1 400,000 400,000
SALES
Sales Manager 1 300,000 300,000
Domestic Sales Representative 2 120,000 240,000
International Sales Representative 2 135,000 270,000
FINANCIALS CONT’D(COST ASSUMPTIONS)
ADMINISTRATION
Administrative Assistant 4 65,000 260,000
Operation Planners 2 80,000 160,000
Accounting Clerk 2 80,000 160,000
Shipping Supervisor 1 150,000 150,000
Total 18 3,240,000
TOTAL LABOUR 52 5,110,000
OUTSOURCED SERVICES
Logistics 3,000,000
Accounting 1,000,000
IT 1,400,000
Total 5,400,000
GRAND TOTAL 10,510,000
FINANCIALS CONT’D(MARKETING ASSUMPTIONS)
MARKETING COSTS
Year1 2 3 4 5 6 7 8 9 10
SALES
Units(metric tons)120,00
0120,00
0150,00
0150,00
0200,00
0200,00
0275,00
0275,00
0320,00
0320,00
0
PRICINGMarket Price ($/unit) 910 910 925 925 925 925 935 935 935 940
Realised Price ($/unit) 892 892 907 907 907 907 916 916 916 921
Total Sales ($000)
107,016
107,016
135,975
135,975
181,300
181,300
251,983
251,983
293,216
294,784
FINANCIALS ($000)
Year1 2 3 4 5 6 7 8 9 10
SALES 107,016
107,016
135,975
135,975
181,300
181,300
251,983
251,983
293,216
294,784
COST OF GOODS SOLD 88,075 88,075 103,720 103,720 127,770 127,770 162,270 162,270 185,270 185,270Labour 1,870 1,870 1,870 1,870 1,870 1,870 1,870 1,870 1,870 1,870Outsourced Services 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400 5,400Materials 48,000 48,000 60,000 60,000 80,000 80,000 110,000 110,000 128,000 128,000Production 32,805 32,805 36,450 36,450 40,500 40,500 45,000 45,000 50,000 50,000
GROSS MARGIN 18,941 18,941 32,255 32,255 53,530 53,530 89,713 89,713 107,946 109,514(%) 18% 18% 24% 24% 30% 30% 36% 36% 37% 37%
SG&A COSTS 3,240 3,240 3,240 3,240 3,240 3,240 3,240 3,240 3,240 3,240
INCOME BEFORE TAXES 15,701 15,701 29,015 29,015 50,290 50,290 86,473 86,473 104,706 106,274Income Taxes (35%) 5,495 5,495 10,155 10,155 17,602 17,602 30,265 30,265 36,647 37,196
NET INCOME -69,510 10,206 10,206 18,860 18,860 32,689 32,689 56,207 56,207 68,059 69,078(%) 10% 10% 14% 14% 18% 18% 22% 22% 23% 23%
Cumulative Income -69,510 10,206 20,411 39,271 58,131 90,819 123,508 179,715 235,922 303,981 373,059
Capital Costs 69,510Payback Period (Yrs) 4.69Average Net Income 37,306Average Return on Investment 54%IRR 31%NPV 113,239
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