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BS INFOBUSINESS PLAN

A BUSINESS PLAN2012 - 2017Prepared by and in collaboration with the members and management of BS INFO

May 2012

Contact Person: Buster TSELAESELETel: +267 5480233Cell:+267 72252380

SECTION BUSINESS PLAN NARRATIVE 1 Executive Summary

2. Company Summary Company Summary Key to Success

3. Product & Service Summary Product Description Production Processes and Procedures Facilities Raw Materials and Supplies Environmental, Safety and Health Monitoring Projected Applicable Raw Materials Installed Plant Capacity

4 Market Analysis Market Trends and Needs Market Strategy and Approach

5. Key Personnel & Management Summary Management and Staffing Summary Personnel Plan and Forecast

6. Financial Summary Financial Summary Financial Plan In Appendix - Profit and Loss Projections In Appendix - Cash Flow Projections In Appendix - Balance Sheet Projections In Appendix - Projected Business Ratios

BUSINESS & COMPANY NAMEBS INFO-TECH (PTY) LTD

REGISTRATION NUMBER CO.2002/379

NATURE OF BUSINESSMANUFACTURE OF CONCRETE PRODUCTS

TYPE OF BUSINESS OWNERSHIPPRIVATE COMPANY

NUMBER OF DIRECTORSONE

DIRECTORSBASTER TSELAESELEPRIMARY CONTACT PERSONBASTER TSELAESELE

CONTACT DETAILSCELL: +267 72252380TEL:+267 5480233EMAIL:bsinfotech.baster@gmail.com

POSTAL ADDRESS P. O. BOX 403455GABORONEBOTSWANA

COMPANY SECRETARIESCALCULATE CONSULTANTP. O. BOX 11408 KANYE

BANKERSSTANDARD CHARTERED BANK

REQUIRED FUNDING BWP2,200 Million

PURPOSE OF FUNDINGTo finance the acquisition of Plant & Equipment

PROPOSED REPAYMENT PERIOD60 Months

This Business Plan is the sole property of BS Info-Tech (Pty) Ltd, (the "Company"). The information contained herein is confidential, has not been released publicly and is disclosed solely for the purpose of assisting financiers in evaluating the Company. This Business Plan is intended for persons to whom it is transmitted and does not constitute an offer to any other person or to the general public to acquire any interest in the Company.

Receipt of this Business Plan shall constitute the agreement of the recipient that the Business Plan, together with any additional information, verbal or otherwise, that may be provided, (i) shall be treated and maintained as confidential, (ii) shall not be reproduced or used for any purpose other than to evaluate the proposed investment, (iii) shall not be submitted to or discussed with persons other than the authorized representatives, agents and advisors of those to whom it is transmitted by the Company (and only then on the confidential basis described in this paragraph) without prior written consent of the Company, and (iv) shall be returned to the Company promptly at any time upon request. Any distribution of this material, in whole or in part, or the divulgence of any of its contents, without the prior written consent of the Company may result in a violation of the Companys rights and is expressly prohibited.

All of the statements made herein with respect to the projected operating results of the Company are based on information projected to the best of management's knowledge, or sources believed by management to be reliable. No representations are made as to the accuracy or attainment of such statements, estimates or implications as to these future operations.

This Business Plan does not constitute an offer to sell nor a solicitation of an offer to buy in any jurisdiction in which such offer to sell or solicitation of an offer to buy would be unlawful. The Company will not offer, and this Business Plan does not constitute an offer of securities, to any person in any jurisdiction in which such an offer would not be in compliance with the securities or laws of such jurisdiction.

Funders are not to construe the contents of this Business Plan or any other documents delivered herewith as legal, business, accounting or tax advice. Each prospective Financier should consult their own attorney, business or tax advisor and Accountant as to legal, business, tax and related matters concerning this plan. The Financiers must conduct and rely on their own evaluation of the Company, including the merits and risks involved in the Company's business plan, in making a decision.

COMPANY:BS Info-Tech (Pty) Ltd

.(By Order of the Directors)

PART 1

EXECUTIVE SUMMARY

Reflecting on Botswanas economic growth over the past couple of years, we see tremedous achievements from a socio-economic development perspective. The achievement could not have been possible if it was not for the contribution from the various sectors of the economy, such as mining, agriculture, manufacturing and of course, construction. The construction industry's (CI) contribution to socio-economic development may be viewed from many areas, among them, creating employment, wealth and demand for manufactured goods, infrastructure and producing factors of production(e.g. office space, factory shells, roads, etc.) for other sectors. Botswana construction industry is growing at a significant rate. Scarcity of the raw material, high lead time, and increase in labor cost are few challenges faced by present construction industry. At the same time there is a change in style and perception of constructions in Botswana and more and more people are looking for alternative and cost effective construction technique and material.

The company will be specialized in the manufacturing of Bricks. We will focus on providing high quality bricks to Botswana construction industry and expect to promote the bricks concept and thereby taking the industry to the next step of innovation. The project is environmentally friendly and could be treat as a carbon free product in any Country.

PART 2

COMPANY SUMMARY

Company SummaryFull Name of Company: BS Info-Tech (Pty) Ltd

Nature of Business: Manufacture and distribution of concrete products

Services and Products: Stock Bricks, Pavers, Blocks, Concrete Slabs and other Concrete products

Potential Customer Base / Market: Property Developers, Construction Contractors, Home builders, Quanity surveyors and Engineers in both the Public and Private sector, the Public

Potential Turnover: Net Revenue8,886,24011,347,77612,218,97615,273,72015,273,720

No of Employees:General & AdministrationYear 1

General Manager65,000

Operational Personnel

Plant Manager65,000

Heavy Duty Driver58,500

Plant Operator58,500

Plant Operator58,500

Location:Mafikhana Ward, Kanye

Bankers:Standard Chartered Bank

Management: The Director will also be the General Manager, he will hire a Plant Manager and a foreman for this operation

Funding: Funding will be supplied by CEDA, the project requires 2,2 million pula and this is in addition to the contribution and security to be provided by the Directors. The Directors have already proposed security to cover part of this loan

Keys to Success

In order to ensure success, the project will have to strive to achieve the following goals:

Maximum production of bricks as per the capacity of the machine, refer to Production plan Effective marketing of the bricks, and also availability of markets, particularly through the procurement systems of the construction industry. Good and proper management of financial and human resources.

Company Locations and Facilities

The location were considered in relation to: Supply of raw materials Market for products Location of the labour force Security of the area Availability of services, i.e. roads, water, sewerage, electricity, etc.

The site is big enough for aggregate stockpiles, cement storage, production (slab or stationary machine) block stacking, staff facilities, an office and on-site access.

PART 3

SERVICES & PRODUCTION PROCESS INFORMATION

Product Description

The current project is to focus on two primary products: Bricks Blocks Other Concrete Products

Production Processes and Procedures

Phases of Manufacturing

The manufacturing process has six general phases: procuring, mining and storage of raw materials, preparing raw materials, forming the brick, drying, firing and cooling and de-hacking and storing finished products

Batching this is to ensure that the aggregate is well drained. This process must be supported by storing the different aggregate types separately and by ensuring that the material is protected from rain so as it remains dry before being mixed with the cement, thus avoiding to exceed the optimal moisture content (OMC).

Mixing - Following the batching, the aggregates together with the binder, as well as pigment if, required, are discharged into a mixer and thoroughly mixed before any additional water is added. Once properly mixed, water will be added to the mixture to bring it to OMC. Uniformity will be ensured because differences in water content from batch to batch will result in differences in quality.

Filling of moulds During mixing, variations in density will result if the gauged quantities are not consistent or the mixture is not uniformly distributed within the mould. Over and above these variations are due to variations in moisture content. This undesirable situation is prevented by the filling the moulds.

Compaction This is another step to enhance the quality and durability of the blocks. Good compaction can be effectively achieved for blocks that are less than 80mm.

Curing the quality of concrete blocks is improved by water curing. This process is also intended to protect aesthetic of the blocks by preventing the migration of calcium hydroxide to the surface of the blocks.

Facilities

A concrete slab on which we will make and cure your blocks and bricks is planned. Our slab size would be dependent on the daily production of our machine and should be around 400m2 for a weekly production of around 75 thousand bricks or 15 thousand blocks. This will be a gradual slope on our slab to allow for sufficient run off of water. A concrete slab gives us the following advantages:-

Less block or brick breakages Less contamination of aggregate A better surface to cure on Easier to move blocks/bricks

Raw Materials & Supplies

Aggregate

Sand and stone will be used for most block productions. All aggregates will be clean and not contain organic matter such as roots or humus. If the aggregates contain clay it should be in a very small fraction.

The following aggregates will be considered:

Fine sand with particles mainly smaller than 1 mm: pit, fine river or dune sand Coarse sand with the biggest particles approximately 5 mm in size: crusher, pit or coarse river sand Stone with a maximum size of 13 mm for bricks or solid blocks or 10 mm for hollow blocks

There are numerous factors to be taken into to account when making quality blocks and bricks. For example the type of aggregate and cement use as well as how the bricks and blocks are cured will have an influence on block and brick quality.

Aggregate is the stone, sand and ash you want to vibrate and compact down and bind together with the cement. A good aggregate is an aggregate that is free from chemicals, clay and organic material. A good aggregate will bond well with the cement paste and not react with it. As a rule of thumb the denser the finished brick or block is the stronger the brick or block will be. You must choose your aggregates according to your needs.

To achieve a dense block with an aggregate that can be vibrated and compacted down easily you need to have an aggregate with evenly graded particles ranging from fine dust up to larger stone of around 9mm. Blending different aggregates often produces the best results. The stockpile of aggregate should be protected from rain by storing it under a roof or covering it with plastic. Do not let the aggregate get contaminated with ground soil or any organic matter such as leaves from a tree. Position your aggregate close to your mixing plant.

Cement

Cement is our most costly material and by doing trials with different aggregates we will be able to minimize on cement content and so decrease our costs. Cement should comply with SABS EN 197-1. Strength class should be 42,5N or higher because the concrete must develop strength as rapidly as possible. We are aware that it is illegal to sell cement that does not bear the SABS mark.

As Cement should always be stored in dry place, off the floor and should be use within three months of the date of manufacture. Cement is supplied in 50kg bags or in bulk. Bags of cement will be stored under cover off the floor and away from any damp conditions.

Water

Only clean clear potable water should be used in the manufacture of the blocks and bricks. Any organic material in water will prevent the cement from setting. Chemicals and impurities could also affect the strength of the end product.

Environment, Safety & Healthy Monitoring

The environment, safety and health-monitoring programme in the factory are as follows:1. Regular monitoring of plant emissions2. Regular monitoring of waste water and treated water3. Quality of water Air and Noise measurement in the Environment4. Monitoring of safety and health

Projected Applicable Raw Materials

BricksBlocks

633600Monthly Mass of Aggregate344960Monthly Mass of Aggregate

506.88Number of m3275.968Number of m3

2534.450.688 Bags of Cement1379.8427.5968 Bags of Cement

4525.7143Litres of Water2464Litres of Water

Cost / Bag / m3 / ltrCost / Bag / m3 / ltr

3517740.8Number of m39658.88Number of m3

7035481.650.688 Bags of Cement19317.7627.5968 Bags of Cement

42027.52Litres of Water1103.872Litres of Water

Cost per BrickCost per Block

0.05Aggregate0.14Aggregate

0.10Cement0.27Cement

0.01Water0.02Water

1,645.60Annual Machine Hours822.80Annual Machine Hours

176.00Monthly Machine Hours88.00Monthly Machine Hours

237.00Cost per Machine Hour237.00Cost per Machine Hour

41,712.00Machine Cost per Month20,856.00Machine Cost per Month

390007.2Annual Machine Costs195003.6Annual Machine Costs

0.12Machine Cost per Unit0.06Machine Cost per Unit

Installed Plant Capacity

PLANT NAME: QTJ4-26A Hollow block machine

QTJ4-26 A the machine is a semi-automatic block forming machine. With this machine, the directional, vertical vibrating device is adopted. So, it is quick in block forming and simple in operating, and the products made by it are perfect in density and excellent in strength.

productivityhollow block 390x190x190 mm 4pcs/mouldmulti-holes block 240x115x90 mm 12pcs/mouldstandard brick 240x115x53 mm 26pcs/mould

Power11.75 kw

overall size3000x1600x2500mm

Cycle20-26s

Carrier size850x550x25mm

Vibration Force22KN

Vibration frequency4000-4800times/minute

Business Facilities

RefAsset and Facilities DetailsAmount

1Land & Building156,362.43

Moulding Machine Shed

Drying Shed

Boundary Wall

Dry Brick Storage Shed

Water Storage Tanks

Plant Storage & Parking Space

Offices & Workers Common Room

2Plant & Machinery2,315,000.00

Brick Moulding Machine

Loading & Delivery Truck

Tipper Truck

Fork Lift

JCB Excavator

Mobile Van

Office Equipment & Furniture

Generator and Tools

4Working Capital & Pre-Operational Expenses214,561.12

Raw Materials: Clay, Cement, Sand, Water

Power & Fuel

Operational & Administrative Expenses:

Legal & Professional Charges

Advance Rent for Land

Initial Wages

5Labour Costs50,916.67

Labour Cost for the First 2 Month

Production Process

PART 4

MARKET DESCRIPTION & ANALYSIS

Market Trends and Needs

We expect high effective demand for our bricks and we forecast the following developments:

BHC Housing Project about to build 110 house in Kanye and they are just waiting for water supply from Water Utilities Government Housing Project as the government has also plenty of house to build for destitute in the area

Strategy and Approach to Market

The degree of sustainability of a production process can be measured by these criteria: Total energy content - i.e. the energy that is required to produce, package, distribute, use and dispose of a specific product; Consumption of the environment land for building or mining, forest depilation; Emissions greenhouse gases, dust, other chemical and natural substances; Raw materials non renewable resources depilation; Waste generation packing, production, use; Recyclability generation of secondary waste cycles: Capital least cost; Durability -longer periods of usage mean lesser consumption of resources.

PART 5

KEY MANAGEMENT & PERSONNEL SUMMARY

Management and Staffing SummaryThe General Manager Shall be responsible for the day to day running of the Plant. Report back to the Financiers. Implement decisions. Decide on the use, organisation and management of resources such as finances, personnel and facilities. Manage, control, lead, and direct staff. Responsible for budget, purchasing, production, marketing and staff relations.Plant Manager Shall be responsible for Production. Will be in charge of Managing the Heavy Duty Drivers and the Plant Operator Will be responsible for Scheduling production, Managing Resource Planning and Procurement, Managing the resources of the Plant, the Raw Materials and also the Waste Management. Will hold a minimum of a Diploma in Production Management or EquivalentPlant Operator Shall be responsible for Operating the main Plant used in producing the Blocks and Bricks There shall be 1 Plant operator per Equipment, trained and relieved if necessary by the Plant Manager Will hold an Apprenticeship certificate as a MachinistHeavy Duty Drivers Shall be responsible for Driving Crane trucks that will be at the heart of the Distribution of the Concrete Products. Will hold a Heavy Duty Licence and be certified to operate related plant such as a Fork LiftLabourers Shall be given adhoc work within the plant and with the Distribution Their daily wage rates are included in the Production costs per Brick/Block

Notes

Personnel

Years 1 to 5

BWP

Year 1Year 2Year 3Terms

Net Revenues8,886,24011,347,77612,218,976Notes on Terms of Remuneration

General & Administration

General Manager65,00065,00065,000