business plan
DESCRIPTION
Business Plan of Nepal Compost UdhyogTRANSCRIPT
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Business Planon
Nepal Compost Udhyog – step toward clean city
Presented by
Himalaya Ban
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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.
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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
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“Where there is a wish there is a Will”. Turning Trash into Cash
How???
converting
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Fertilizer Demand
According to MoAC report, fertilizer demand is approximately 857 ton/year.
Where organic contributes approximately 265 tons/year.
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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
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Contd…
- will carry on sample organic farming
- timely initiate social activities like society cleaning program, awareness program etc
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Missions
“Development of compost in Nepal and promoting youth toward Environment Awareness with motto of clean city”
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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.
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Organization Structure
Centralized at first. Top-Bottom Management policy Decentralized (future) Decentralization with matrix structure
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Organizational hierarchy
General ManagerGeneral Manager
Supervisor Supervisor
Workers Workers Workers Workers Workers Workers
Shareholders Shareholders
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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.
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Design and Development Plan Product development
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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
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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
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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
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Competitive strategies
Cost leadership Innovation Differentiation Alliance Aggressive growth
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SWOT Analysis
Strength: Cost effective Quality products Expandable organization Less operating cost Eco-friendly
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Contd..
Weakness: New to the industry Entrepreneur with less experience
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Contd…
Opportunity: High demand Local employment Less capital needed to penetrate industry Huge growth opportunity Less rivalry Government support to agriculture sector
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Contd..
Threats: Previously established Competitors Unstable political situation
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Risk Management
Form new strategies Diversifying our business investment Organic farming, recycling Aggressive promotion of our product
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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
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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
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Projected 1st year Balance Sheet of Nepal Compost Udhyog
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Projected financial highlights
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Project Fund
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Future InvestmentOrganic Fertilizer Plant
Capacity: 200tons/day Price: Rs 46,56,000
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Paper recycler Machine
Cost: Rs 14,75,000
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Allocated Capital Structure for Future Investment.
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Thank You!