,Business Plan on Artificial Turf
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A Business Plan on Artificial Turf
Prepared for Md. Shahinur Sobhan Assistant Professor Department of Business Administration Dhaka City Collage Dhaka,
Prepared by “Freshers” BBA-Batch 14 Section-B
Date of Submission March 18, 2012
Group Name:Freshers Name
Md. Imtiaz Alam
Md. Mamunur Rahman
Letter of Transmittal March 18, 2012 Mr. Md. Shahinur Sobhan Assistant Professor Department of Business Administration Dhaka City College Dhanmondi, Dhaka. Subject: Submission of Report Sir, We are proud to inform you that we, the members of “Freshers” have prepared this report on “Artificial Turf”. We request you to receive the report. We apologize for our mistakes in the report. We will be happy to clarify queries regarding the report. Yours truly, Asikur Rahman On behalf of the group “Freshers” BBA, Batch-14, Section-B Department of Business Administration Dhaka City College Dhaka
Acknowledgement At the beginning of preparing the report, we didn’t know how to prepare a business plan. Group discussion was the key to finish the report. A number of people helped us when we were preparing it. With the guidance of our respected teacher Mr. Md. Shahinur Sobhan and Ms. Manna Akter Lina Department of Business Administration, we were able to prepare this report. Their valuable comments and proper guideline showed us the way of success.
Executive Summary Page 5
Executive Summary Project Name ofthe company
: A business organization will be established which will Provide the services of artificial turf. : Green Shadow
Type of business Type of organization Year of establishment
: Partnership Business : 2013
Financial condition: Profitable Means of financing
: 60% as equity capital & 40% as debt capital
Special service: 1. Rooftop turfing 2. Anti-Slip Carpet 3. Football field turfing 4. Welcome Mat
Technical Sides Machinery
:All are imported outside of the country
Earnings After Tax 2013
Financial Sides Comment Profitable Organization.
Contents Page 6
Chapter 1. Introduction
Chapter 2. Business Description Segment
Idea of Artificial Turf
Advisors & Auditors
Chapter 3. Manufacturing Segment
Sources of Raw Material
Manufacturing Cost Data
Chapter 4. Marketing Segment
Marketing Mix Analysis:
Corporate Social Responsibilities
Chapter 5. Financial Segment
Cost of Project
Means of Financing
Cost of Production:
Factory Overhead Cost
Chapter 6. Conclusion
Introduction Objective Our objective is to prepare a report about ‘Grass Carpeting’ which was suggested by our respected teacher Md.Shahinur Sobhan. Thus we can learn how to prepare a report.
Methodology We gathered our required information from internet which is a secondary source of data collection. Sources are Internet Web based articles Science Magazine
Limitations We faced problems to make this report. Like
Selecting a new idea was really tough Communication problem among group members Problem with limited internet connection Lack of required exact information
Business Description Segment Idea of ArtificialTurf Artificial turf is a surface manufactured from fibers made to look like natural grass. It is most often used in arenas for sports that were originally or are normally played on grass.The main reason is maintenance—artificial turf resists heavy use, such as in sports, and requires no irrigation or trimming. Domed, covered, and partially covered stadiums may require artificial turf becauseof the difficulty of getting enough sunlight to stay healthy.
Every unique business has its own historical background. So, Grass Carpeting also has a background. David Chaney – who served as Dean of the North Carolina State University College of Textiles – headed the team of Research Triangle Park researchers who created the first notable artificial turf. Artificial turf first came to prominence in 1966, when Astroturf was installed in the Astrodome in Houston, Texas. Anattempt to use natural grass in 1965, but this failed miserably. The use of Astroturf and similar surfaces became widespread in the U.S. and Canada in the early 1970s. Artificial turf first gained substantial attention in the 1960s, when it was used in the newly constructed Astrodome. The specific product used was called Astroturf.
Company’s Vision Our vision is to make a greener Bangladesh. We want to see our country totally as a green heaven within 20 years.
Company’s Mission We have some specific mission with our unique idea and product. They are as below Spreading all over our country To create a new business in Bangladesh Provide high quality product and service Earn customers faith and satisfaction Establishing a good opportunity to resistunemployment problem
Legal Form of business Green Shadow is owned by the partners. We started our partnership business according to the Partnership Act 1932. The firm is running under this act.
Management Segment Organization Structure Managing Director
Assistant Op. Manager
Research & HR Manager
Finance & Accounting Manager
Executive of Accounting
Executive of Finance
Management Team Age Designation
Experienc Qualification e
BBA (IBA) MBA(IBA)
BBA(NSU) MBA(NSU) CA (USA)
Head of HR
BBA(DCC) MBA(EWU) BBA(JNU) Marketing BBA(DCC) MBA(DCC) BBA(WUB)
Employment Agreements Salary Employees will be paid based on standard scale and their experience. Experience employees are preferable.
Overtime Overtime varies on works pressure. Per extra 2 hours is granted as a reward of 3.5% of standard salary.
Facilities Extra facility includes monthly health check-up, Bike for marketing sided workers and yearly prize giving ceremony for winners.
Sayla Jaman Sk.Md.Hadin
Farzana Rahman of of the owners
Ownership a partnership business, it is running with the different amount equity
Advisors & Auditor Legal Advisor: Md. Abdul Sattar Advocate, Dhaka Judge Court Mob- 01745865041 Auditor: Md. Tahmidul Ahmed Sr. Auditor Mawla Mahammad & Co. Mob- 01819220110
Manufacturing Segment Location Analysis We choose Ashulia for our factory and administration office. We have rented a suitat Gulshan-1(Road-8, Plot-2, Dhaka 1212) to provide a quick service to our respected customer,both commercial and residential.
Reasons behind locations Now-a-days, finding a big empty land is really tough in our country, that’s why we had to move to Ashulia a get a quit bigger place for our factory and administration building. It’s near the main road as shown on the map. As our main customers are from high and middle class level, we choose Gulshan as our regional office. Because we have to response to our valued customer quickly.
Production Machinery For factory use: * CO2 Carpet cutting Machine by laser FOB Price: US $7000 / Set (560000 Tk.)
Features 1. Fast and continuous cutting 2. 2500mm*3000mm working area 3. Auto feeding system
* Automatic high frequency plastic welding machine with pulling tray Page 20
FOB Price: US $ 4000 / Set (320000 Tk.)
Features 1. Easy operating 2. Low electricity consumption 3. Manual cutting enable
* Plastic carpet making machine FOB Price: US $ 10000 / Set (800000 Tk.)
Features 1. Low cost production facility 2. VGA monitor display
Model: EBT P163
Installation Equipment: * Artificial Lawn Comber (Combs the lawn)
* Turf Layer(Layers Turf to be placed correctly)
*Sand Infill Machine(Fills sand in soil)
Sources of raw materials We import our necessary raw material from China and are imported from these fabulous companies 1. Qindao Zhongxinda Rubber Plastic Co. Ltd Province: Shendong, China. 2. Strawman Artificial Grass Co. Ltd Province: Jiangsu, China 3. Hangzhou Green Valley Rubber Products Co. Ltd
IC n a e p W M d to FmSAa u idrodk p p l l o ea tnit du tu e i r tc l wec s infc M o tsao i rngn l a d magp u ai n r hhc ruep t en t i pt e t Labor Supply
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Labors will be appointed by daily basis. Factory labor, who will work on production, packaging sector and supply sector, will be paid daily. They will work in two shifts, from 7.30 AM to 12.30 pm and 1.00 pm to 5.30 PM. Overtime work will be paid an extra amount of 5% of their daily income.
Manufacturing Cost Data
Material Cost Utility Cost
1000000 0 285144
Factory Overhead Cost
Problem Identification Our product will help people to Relief from monotonous life Make them feel that they are close to nature Enhance beauty
Resist heavy use Make fields more usable
Situation Analysis Market Summary As our business derived from a unique idea ‘Green Shadow’ is all alone in the grass carpeting market. Especially in production segment, because we make turf here. So, we need to start from the beginning. It’s quit tough but challenging for us. But we are expecting a positive mark from our customers.
SWOT Analysis The term SWOT stands for- Strengths, Weaknesses, Opportunities, Threats.
S W O T
Marketing Strategy Market Segmentation At the very beginning of our business, we have focused on Dhaka City. Based on our primary goal “To make a greener Bangladesh” we have to first introduce our product at Dhaka City. At its high classed places. They are1. Gulshan 2. Banani 3. Uttara 4. Dhanmondi 5. Bashundhara After achieving our goal, we will move on to our next steps by establishing our new shops at Chittagong and Sylhet.
According to income we targeted high level customer. Our main target are given below House Sports field Hotel Racing track Empty fields(Unused) Commercial building
Marketing Mix Analysis 1. Product
Uniqueness: We are the 1st organization in Bangladesh who provides artificial turf. We can attract attention from all kinds of people by presenting our unique product using various method of advertising.
Features: We use high quality turf Our raw material is imported from China We have trained team of worker We take order by facebook and our official website Benefits: When a customer uses our product, we can assure that all kinds of turf are high quality and can get quick response from us at any question. That’s why they can count on us.
Football Turf- 18$ Sq./ft Welcome Mat- 2.5$ Sq./ft Lawn Turf- 12 $ Sq./ft Anti Slip Carpet- 2.5$ Sq./ft
3. Place We have contracted with some stores and hotels at various place of Dhaka city.
The Westin Dhaka (Lawn and garden) Siemens House (Rooftop) Kurmitola Golf Club (Partial) Bangabandhu National Stadium(Partial) Our main showroom
4. Promotion *Advertising: We will take the advantages of modern technology to advertise our product. Examples are given below 1. SMS Subscribing We have contracted with 3 mobile phone operators to send an informational SMS to subscribers weekly.
2. Opening groups and pages at facebook By opening official fan page at facebook.com we can show our product’s picture on their wall and sending messages. 3. Youtube Channel With the help of video streaming website youtube.com we will upload latest videos on our channel we will be able to take people’s attraction. 4. Billboards Billboard is a common way of advertising. We hired 13 billboards for advertising our product. *Sales Promotion 1. By sending a sample and a picture of our product to all kinds of people 2. By sending a video disc to a specific class people 3.Reducing the installation cost 15% for first 50 orders 4. Sending a leaflet in newspaper by introducing our product to people 5. First 50 welcome mats will be sold at 2.5% discount * Internet Based Promotion 1. Customers who will order a certain number of oder by our official web site within 1st 7 days of promotion, will get a chance to pay a trip to visit Kualalampur with 500 $ cash. 2. Facebook users will get a link to free download of cover photos of our product. 3.Youtube videos will include the interview of 1st 50 customers with their comment about the product and will be shown at TV later.
Corporate Social Responsibility According to our slogan our 1st importance is make our society more naturally beautiful, to make people feel that they are closer to nature than ever before. So we have to take care about the quality of the product and also we are trying to use less harmful materials which can affect our environment. If we make our business profitable, we are planning to donate some charitable organization. We will try our level best to do these We’ll try to reduce the unemployment problem of a good number of people Our product won’t have any harmful effect on environment If we can achieve our desired mark of profit, we will donate to acid survivor fund Contributing on road development We will distribute a number of tree plants on rainy season Raising awareness for preventing ‘AIDS’ Raising awareness about ‘Breast Cancer’
Cost of Project Our all the costs of project are given bellow.
Land & Site Development
Building & civil works
Plant & machinery
Miscellaneous fixed asset
Means of financing Capital structure As our business type is partnership, it’s financing will be made in two ways
Equity finance We will be all together ten partners in our business. Each of our partners will invest equally. Each will bring 49666623 Tk as capital.
Name of Partners
Debt finance We will also take loan from bank for our financing. We will take 33111082 taka from DBBL bank against of 13% interest.
Loan at the beginning
Loan at the end of the year
Interest @ Principal 13% Repayment 1
Cost of Production Total Cost of production The total cost of production-
Factory Overhead Cost
Material Cost We will use two types of material. The all costs of the materials is given below-
Raw Material Name Green EPDM Rubber Granolas Rubber Artificial Grass Glue Water PE Artificial Grass Mat Artificial Grass Adhesive Total
Cost 1800000 1200000 1500000 2000000 1500000
Installation Material Name Artificial grass non-woven-felt Artificial grass joint tape Total
Cost 1200000 800000 2000000
Total cost of material Particular
Raw Material Installation Material Total
8000000 2000000 10000000 Page 36
Utilities Cost We will use electricity, gas, water, telephone, internet etc. The costs are-
Water Gas Electricity Internet Tnt
3744 5400 120000 96000 60000 285144
Labor Cost All the labor costs are given below-
Production Worker Labor Tech Team Engineer Installation Workers
744000 312000 3456000
Factory Overhead Cost In our project, there will be some factory overhead costs, which are given below-
Maintenance Insurance Tax Others
66000 99600 516960 54000 763560
Working Capital Our working capital is given below
Material cost Utilities cost Labor cost Factory Overhead cost Total
833333 23762 288000 61380 1206475
Income Statement Amount Particulars
Sales Revenue Less: Cost of Production
3270000 0 1447770 4
Less: Opening Expenses Administration Expenses Selling Expenses Pre-operative Expenses
EBIT(Earnings before Interest & Tax) Less: Interest 13%
566700 0 650000 8817000 250000 0
EBT(Earnings before tax) Less: Tax @ 25%
5100855 1275213.75 EAT(Earnings after tax)
Profitability Projection (5 years) Capacity Utilization
Sales Revenue Less: Cost of Production
5667000 2500000 650000
5657000 2500000 800000
5647000 2500000 950000
5637000 2500000 1100000
5627000 2500000 1250000
Less: Operating ExpensesAdmin Expenses Pre-operative Expenses Selling Expenses EBIT Less: Interest @13%
5100855 12165093 1275213.75 3041273.25
EBT Less: Tax 25%
Conclusion We are going to start our organization with the motto “Greener world, better tomorrow”. We will try our level best to deliver the best quality product and service to all kinds of people-customers, employee, bank and partners. As Bangladesh is a developing country, our focus is on all kinds of people. Because if we focus on a specific class of people, we won’t be able to reach our goal and in the long run, we will fail. Based on our economic condition we will try our level best to reach to all kinds of people and deliver our product. Business is not just ‘Business’. That means we have a lot responsibility to our society and country. We will try to contribute on social welfare works. Like- Planting more trees, raise awareness of breast cancer. That is how we are going to start our business.
Reference We used these sources to find our required information.
en.wikipedia.org alibaba.com actglobalsports.com facebook.com youtube.com made-in-china.com dhakacity.olx.com.bd
Book: Principles of Marketing by Philip Kotler (12th Edition, Page-399 )