A Joint venture project between a Local and

8/7/2019 A Joint venture project between a Local and

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A Joint venture project

between a Local and a Foreign

Company for processingpineapples into jelly for

exports.


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Introduction

In the present time there are many new business are launched inBangladesh which offer a lot of products to market and respond thedemand for exports. Making Jelly from pineapples is a product thatis popular in a group of many people that can make a profit to many

people. This reason we are going to establish a Pine apple Jellyindustry in order to gain a lot of profit. In our business mention onlocal product which make of local fruit (pineapple) and it can make aprofit to an investor and then it can attract many importers who aregoing to buy it. In doing business that have the competitors whoproduce Pine apple Jelly to compete with and we hope we willachieve the goal by our mutual endeavor.

L AND F COMPANY


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Mission of the Project:

We have selected the word DEVELOPED asour mission where-

D=Development day by day. E=Enthusiasm

V=Victory

E= Maintain proper business Ethic

L=Lean in case of cost control O= Find new Opportunity

P=People is our main source.


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Project objectives:

To make more benefits to investors

To make the product export oriented.

To achieve customer satisfaction and create

brand loyalty.

Be well known and accepted by the importers.

To co-operate with all stakeholders.

To increase total sales every year and top the

goal in each year.


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Terms and conditions of the Joint Venture:

Equity ratio should be L Company: F CompanyAg = 3:1

F Company will provide all necessaryequipments.

If F Company fails to market the product withstipulated time, it will buy the remaining product

with their own cost. The Jelly product will use the brand name of L

Company.


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Factory Premises and Location

We have selected area in Gazipur ,Dhaka for our PineappleJelly plant .Which is far away from residential area and little farfrom town. The area is located in Industrial sector. The anotherfacility is that our plant location is one behind the main road.

Which give us benefit in transportation and easy logisticmanagement. Even for distribution purpose the location issuitable. There are no problem for water, electricity, and otherrelated facility. The sewerage system is also good there whichis the most important things for our disposal material. Thelabor cost is also low in that place , in terms of money itsprofitable. The area will be 400sqm which will be a lease by the

Bangladesh government.


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Building and civil work

About 200 sq. m industrial & other shed/buildingincluding aseptic rooms and raw materialrefrigerated room.

Power requirement

Total connected load of about 30 kW will be required.Due to present short supply of power a DG set backup of 30 KVA is also envisaged.

Water requirement About 6/7 KL of water will be required every working

day.


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Proposed capacity

The unit will operate on two shift basis per

day for 250 days per annum. The unit willhave the flexibility to process nearly 500

Kgs .

Employment

20 persons of different category :


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Managerial (Senior)

Technical supervisor

Non-Technical Supervisor. Clerical staff

Skilled worker

Semiskilled worker Unskilled worker


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Prime ingredient

Pineapple (anarash) scientific name-Ananussativus,originated from Brazil.

Other ingredients:

Pineapple Juice-49%

Sugar-38%

Pectin-1%

Citric Acid- as required

Potassium Sorbet-as required

Natural flavor-as required.

Water-12% and Permitted food color-as required.


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Output: Pineapple Jelly

Nutrition Fact:

Energy 40 kilo Calorie

Carbohydrate 9 gram Protein 0.02 kg

Calcium 1%

Iron 1%

Temperature needed:

107 to 109Celcious


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Equipment list

Jars, omnia lids, and labels

Omnia capper

Cooking facilities, gas ring, electric ring, etc Stainless steel saucepan

Thermometer in protective jacket

Stainless steel cutting knife and spoon

Wooden spoon for stirring Refractometer

Steam generator (optional)

Cutting board

Scales

Measuring cylinder

Funnel Liquidizer

Muslin cloth


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Marketing mix (4ps)

Product - customer need:

We will serve the high quality product made from our local Pineapple to ourcustomers by concerning the cultures, tradition or lifestyle. Customers can find andbuy our product at different mega city, small city shops dedicated to serve the

customers. As it is for both domestic and export, the pineapple jelly will be astandardized product.

Price cost:

: Like all other businesses, we have fixed two objectives for the pricing of ourcompanys product. These objectives are:

To increase the larger market share.

To maximize the profit.

We will set reasonable price for our customers by set it be concerned as pricing

strategy, suggested retail price, volume discounts and wholesale pricing, cash andearly payment discounts, seasonal pricing, bundling, price flexibility.


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Place:

All of our products available and sell in different shopslocated in the mega cities, small cities, central of villageand nearby highway that the customer can easy to get

there . Promotion: Like other companies, promotional activities will play a vital role in

this business also to inform the potential customers aware of the product.

This total process of giving advertisements and evaluating its effectiveness willbe dependent on the creative mix. It is consisting of five Ms these are:

Mission

Money Message

Media

Measurement.


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After Environmental scanning we found somestrength and weaknesses.

SWOT Analysis

Strength:

Existing demand of the Jelly product all over thecountry regardless of age, sex, religion, culture.

Superior Technology.

Manpower.

Resource available.

Weaknesses:

Lack of skilled technicians

Some raw materials have to be export.


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Expensive project, risk involvement.

Opportunity:

New product in the market.

Main resource is available. New market.

Globalization in future.

Threat:

Many other jelly companies are available. Possibility to copy the product.

Substitute of the product.


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Logistic Management We manage the transportation, warehousing, inventory, customer/order enter and administration that the

movement of the organizations finished products to its customers, the main activities associated with physical withdistribution include inventory control, warehousing, and storage such as one track carries about 1000-1500 kgs.We have another vehicle to carry on finish goods to a shop. We have to check pre & post transport.

Facility Management

Our company encourages in management everything the lowest effect to

natural environment such as:-Building: A company will check an orderliness of a building everyyear if there is the defect, we will repair at that.

- Natural Environments:

1.Manage of dry garbage2.Manage of waste3.Manage of danger garbage

- Security System: 1.There is checking equipment tool every year2.Safety; there is a guard looks after the period night3.There is circuit camera closed-Information System Management: about receipt and expense


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Country Risk Analysis:

We use Checklist Approach applied weighted average:

From the analysis we find, out of 100 weighted average, we have got 85 in

political risk factor analysis and have got 88.5 in financial factor risk

analysis. Hence accrued result is favorable for business.

Total project cost: 36 lakh taka

Equity : 12 lakh taka

Term loan :24 lakh taka.

We have projected profitability statement where-

Projected Income from first year will be 62.58 lakh.

Profit after tax would be 8.02 lakh. Projected fund flow statement

Payment of interest on export loan and depreciation amount are added to

the profit after tax and capital expenditures are deducted to arrive at the net

cash in flow of the year.

To calculate discounted cash flow , we consider interest rate 6.00 per cent(

as LIROR 6%) plus 1 percent risk factor=7%


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Adjusted cash flow

To calculate Internal Rate of Return, actual cash inflow is tabulated for 10years in the Appendix. Payment of interest on term loan and depreciationamount is added to the profit after tax and capital expenditures arededucted to arrive at the net cash inflow of the year.

Payback period

The entire capital investment excluding margin for working capital will bepaid back within 2 years and 11 months of operation. The pay back amountis computed from the adjusted cash flow and depicted in the appendix.

Internal rate of return

IRR is calculated by Yield Method and works out to be 43.30%, as given inAppendix. On an average 43.30% net of tax will be earned on the investedamount (less of margin for working capital) in each year for 10 years, afterallowing for the repayment of the sum originally invested.


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Time schedule:

Plant set up

Start Production

Test marketing

Product Marketing

Export

January1, 2011 to

September 2011.

October , 2011.

October, 2011

November, 2011.

January , 2012


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Conclusion:

L and F Company hopes the joint ventureproject will be very successful in terms of

maximizing profits as well as solving theunemployment problem of the local companyto some extent. Through the joint venturenew technology will come in to the countrythat will ultimately benefit the nation. L and FCompany expects strong supports form thegovernments of both the countries as well asfrom its stakeholders.

A Joint venture project between a Local and

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