,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

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Group Name:Freshers Name

Roll

Asikur Rahman

66

Md. Imtiaz Alam

62

Habiba Anam

58

SkMd.Hadin

64

Md. Mamunur Rahman

61

Sayla Jaman

65

Sumaya Rubaiyat

63

Farzana Rahman

59

Md.Mohaimenul Islam

60

Md.Asif Shariar

67

Group Members

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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

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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

2014

2015

2016

2017

3825641.25

9123819.75

14486761.50

23727860.25

31572956.2

Financial Sides Comment Profitable Organization.

Contents Page 6

Particulars

Page No.

Chapter 1. Introduction

(1-1)

Objective

1

Methodology

1

Limitations

1

Chapter 2. Business Description Segment

(2-3)

Idea of Artificial Turf

2

Product History

2

Company’s Vision

3

Company’s Mission

3

Management Segment:

(4-6)

Organization Structure

4

Management Team

5

Employment Agreements

5

Ownership

6

Advisors & Auditors

6

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Chapter 3. Manufacturing Segment

(7-12)

Location Analysis

7

Production Machinery

8-9

Installation Equipment

10

Sources of Raw Material

11

Manufacturing Process

11

Labor Supply

12

Manufacturing Cost Data

12

Chapter 4. Marketing Segment

(13-18)

Problem Identification

13

Situation Analysis:

(13-14)

Market Summary

13

SOWT Analysis

14

Marketing Strategy:

(14-15)

Market Segmentation

14

Target Market

15

Marketing Mix Analysis:

(15-17)

Product

15

Price

16

Place

16

Promotion

16-17

Corporate Social Responsibilities

18

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Chapter 5. Financial Segment

(19-26)

Cost of Project

19

Means of Financing

20-21

Cost of Production:

(22-24)

Material Cost

22

Utilities Cost

23

Labor Cost

23

Factory Overhead Cost

24

Working Capital

24

Income Statement

25

Profitability Projection

26

Chapter 6. Conclusion

(27-28)

Conclusion

27

Reference:

(28-28)

Reference

28

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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

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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.

Product History

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.

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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.

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Management Segment Organization Structure Managing Director

Operations Manager

Assistant Op. Manager

Departmental Head

Research & HR Manager

Chief Engineer

Asst. Engineer

Supervisor

Finance & Accounting Manager

Executive of Accounting

Executive of Finance

Worker

Marketing Manager

Installation Manager

Worker

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Management Team Age Designation

Name

General Salary

Experienc Qualification e

Asikur Rahman

39

Managing Director

65000

5 Years

CA (UK)

Imtiaz Alam

39

General Manager

60000

5 Years

BBA (IBA) MBA(IBA)

Md.SK Hadin

33

Assistant Manager

55000

3 Years

Habiba Anam

35

Financial Manager

45000

7 Years

BBA(NSU) MBA(NSU) CA (USA)

Sayla Jaman

32

Head of HR

40000

3 Years

Sumaiya Rubaiyat

30

Marketing Manager

35000

2 Years

Mamunur Rahman

25

Operations Manager

32000

2 Years

Asif Shahriar

33

Installation Manager

30000

1 Year

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.

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As

Name

Percentage

Md.Imtiaz Alam

15%

Asikur Rahman

15%

Habiba Anam

15%

Sayla Jaman Sk.Md.Hadin

15% 15%

Md.Mamunur Rahman

15%

Farzana Rahman of of the owners

Ownership a partnership business, it is running with the different amount equity

10%

Advisors & Auditor Legal Advisor: Md. Abdul Sattar Advocate, Dhaka Judge Court Mob- 01745865041 Auditor: Md. Tahmidul Ahmed Sr. Auditor Mawla Mahammad & Co. Mob- 01819220110

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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.

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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

Model: CJG-250300LD

* 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

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Installation Equipment: * Artificial Lawn Comber (Combs the lawn)

* Turf Layer(Layers Turf to be placed correctly)

*Sand Infill Machine(Fills sand in soil)

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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

Manufacturing Process

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

l u n

d l d

i

c e

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

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Particulars

Cost

Material Cost Utility Cost

1000000 0 285144

Labor Cost

3456000

Factory Overhead Cost

736560 Total

1447770 4

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Marketing Segment

Problem Identification Our product will help people to Relief from monotonous life  Make them feel that they are close to nature  Enhance beauty

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 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.

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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.

Target Market

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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.

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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.

2. Price    

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.

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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.

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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’

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Cost of Project Our all the costs of project are given bellow.

Particulars

Amounts

Land & Site Development

40000000

Building & civil works

15000000

Plant & machinery

1700000

Pre-operative cost

2500000

Vehicle

6000000

Furniture

1100000

Miscellaneous fixed asset

1500000

Office equipment

500000

Production cost

14477704 Total

82777704

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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

Percentage

Amount

Asikur Rahman

6%

49666623

Md.Imtiaz Alam

6%

49666623

Habiba Anam

6%

49666623

Sh.Md.Hadin

6%

49666623

Md.Mamunur Rahman

6%

49666623

Sayla Jaman

6%

49666623

Sumaiya Rubaiyat

6%

49666623

Farzana Rahman

6%

49666623

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Md.Mohaimenul Islam

6%

49666623

Md.Asif Shahriar

6%

49666623

Debt finance We will also take loan from bank for our financing. We will take 33111082 taka from DBBL bank against of 13% interest.

Year

Loan Installment

Loan at the beginning

Payment

Loan at the end of the year

Interest @ Principal 13% Repayment 1

9413962

33111082

4304441

5109521

28001561

2

9413962

28001561

3640203

5773759

22227802

3

9413962

22227802

2889614

6524348

15703454

4

9413962

15703454

2041449

737213

8330941

5

9413962

8330941

1083021

8330941

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-

Cost of Production Total Cost of production The total cost of production-

Particulars

Cost

Material Cost

10000000

Utility Cost

285144

Labor Cost

3456000

Factory Overhead Cost

736560 Total

14477704

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

8000000

Installation Material Name Artificial grass non-woven-felt Artificial grass joint tape Total

Cost 1200000 800000 2000000

Total cost of material Particular

Amount

Raw Material Installation Material Total

8000000 2000000 10000000 Page 36

Utilities Cost We will use electricity, gas, water, telephone, internet etc. The costs are-

Particulars

Cost

Water Gas Electricity Internet Tnt

3744 5400 120000 96000 60000 285144

Total

Labor Cost All the labor costs are given below-

Particulars

Cost

Production Worker Labor Tech Team Engineer Installation Workers

2400000

Total

744000 312000 3456000

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Factory Overhead Cost In our project, there will be some factory overhead costs, which are given below-

Particulars

Cost

Maintenance Insurance Tax Others

66000 99600 516960 54000 763560

Total

Working Capital Our working capital is given below

Particulars

Cost

Material cost Utilities cost Labor cost Factory Overhead cost Total

833333 23762 288000 61380 1206475

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Income Statement Amount Particulars

Taka

Taka

Sales Revenue Less: Cost of Production

3270000 0 1447770 4

Gross Profit-

18222296

Less: Opening Expenses Administration Expenses Selling Expenses Pre-operative Expenses

EBIT(Earnings before Interest & Tax) Less: Interest 13%

566700 0 650000 8817000 250000 0

9405296 4304441

EBT(Earnings before tax) Less: Tax @ 25%

5100855 1275213.75 EAT(Earnings after tax)

3825641.25 ========

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Profitability Projection (5 years) Capacity Utilization

40%

50%

2013

2014

Sales Revenue Less: Cost of Production

32700000 14477704

Gross Profit

Particulars

60%

70%

90%

2015

2016

2017

40875000 16112704

49050000 17747704

57225000 19382704

73575000 21017704

18222296

24762296

31302296

37842296

52557296

5667000 2500000 650000

5657000 2500000 800000

5647000 2500000 950000

5637000 2500000 1100000

5627000 2500000 1250000

9405296 4304441

15805296 3640203

22205296 2889614

33678596 2041449

43180296 1083021

Less: Operating ExpensesAdmin Expenses Pre-operative Expenses Selling Expenses EBIT Less: Interest @13%

5100855 12165093 1275213.75 3041273.25

19315682 4828920.5

31637147 7909286.75

42097275 10524318

EBT Less: Tax 25%

3825641.25 9123819.75

14486761.5

23727860.25

31572956

EAT

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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.

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Reference We used these sources to find our required information.

Websites:      



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 )

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