Executive summary
Our garri processing factory shall be a medium scale
garri processing factor factory which will be geared towards providing a
modern, easy and effective way of processing garri from the peeling stage to
the fry stage for cassava farmers. Our factory shall buy unpeeled cassava from
farmers and we shall process them and sell processed garri to garri merchants
thereby making the process of garri processing less laborious for the farmer
and thereby encourage mass production of cassava in out target location.
garri processing factor factory which will be geared towards providing a
modern, easy and effective way of processing garri from the peeling stage to
the fry stage for cassava farmers. Our factory shall buy unpeeled cassava from
farmers and we shall process them and sell processed garri to garri merchants
thereby making the process of garri processing less laborious for the farmer
and thereby encourage mass production of cassava in out target location.
The factory will have an installed capacity to
produce 3 metric tonnes (MT) (1 metric tonnes is equal to 1000 kilograms) of garri
per day but production will commence at 2MT per day amounting to 576MT per
annum working at 288 days. The plant will package 3 types of Garri commonly
sold in Ughelli metropolis market which are the Red oil Garri, Sour and the
white Garri. Packaging shall be in branded size bags. Pricing and weight of the
products would compete favourably with the ones sold in the market.
produce 3 metric tonnes (MT) (1 metric tonnes is equal to 1000 kilograms) of garri
per day but production will commence at 2MT per day amounting to 576MT per
annum working at 288 days. The plant will package 3 types of Garri commonly
sold in Ughelli metropolis market which are the Red oil Garri, Sour and the
white Garri. Packaging shall be in branded size bags. Pricing and weight of the
products would compete favourably with the ones sold in the market.
The core raw material for the plant is cassava
which is available in sufficient quantity and at all year round in Ughelli
metropolis.
which is available in sufficient quantity and at all year round in Ughelli
metropolis.
Registration of the business
Our garri processing
factory shall be named Sunshine High
Quality Garri Processing Factory and it shall be registered with Corporate Affairs Commission (CAC) as a limited liability with the
above-stated name.
factory shall be named Sunshine High
Quality Garri Processing Factory and it shall be registered with Corporate Affairs Commission (CAC) as a limited liability with the
above-stated name.
Business description
Sunshine High Quality Garri
Processing Factory shall be located in Oviri – Olomu. The location of Sunshine High Quality Garri Processing
Factory is chosen because of its closeness to the source of raw material
which shall be unpeeled cassava from the farm. The location is best suited for
this business because the major occupation of the people in the area is cassava
farming and most of them find the processing of cassava into garri very
stressful, thereby discouraging mass production. But with our presence, that
will be a ready market for their farm produce.
Processing Factory shall be located in Oviri – Olomu. The location of Sunshine High Quality Garri Processing
Factory is chosen because of its closeness to the source of raw material
which shall be unpeeled cassava from the farm. The location is best suited for
this business because the major occupation of the people in the area is cassava
farming and most of them find the processing of cassava into garri very
stressful, thereby discouraging mass production. But with our presence, that
will be a ready market for their farm produce.
Required funds
The business shall require the sum of 10,000,000 as
startup capital which shall be funded by a loan from Royal Farmers Multipurpose Co-operative Society which shall be
granted at a 10% flat interest rate.
startup capital which shall be funded by a loan from Royal Farmers Multipurpose Co-operative Society which shall be
granted at a 10% flat interest rate.
Objectives
The major objective of Sunshine High Quality Garri Processing
Factory is to buy unprocessed cassava directly from cassava farmers and
carry out the processing of the cassava into garri to be sold to garri
merchants in Ughelli metropolis and in extension to the entire Delta State and
beyond.
Factory is to buy unprocessed cassava directly from cassava farmers and
carry out the processing of the cassava into garri to be sold to garri
merchants in Ughelli metropolis and in extension to the entire Delta State and
beyond.
Location
Sunshine High Quality Garri
Processing Factory shall be located in Oviri – Olomu. The location of Sunshine High Quality Garri Processing
Factory is chosen because of its closeness to the source of raw material
which shall be unpeeled cassava from the farm. The location is best suited for
this business because the major occupation of the people in the area is cassava
farming and most of them find the processing of cassava into garri very
stressful, thereby discouraging mass production.
Processing Factory shall be located in Oviri – Olomu. The location of Sunshine High Quality Garri Processing
Factory is chosen because of its closeness to the source of raw material
which shall be unpeeled cassava from the farm. The location is best suited for
this business because the major occupation of the people in the area is cassava
farming and most of them find the processing of cassava into garri very
stressful, thereby discouraging mass production.
But with our presence, that
will be a ready market for their farm produce. The location has good link road
to Ughelli Main Market and Warri which are the biggest market for garri in the
area.
will be a ready market for their farm produce. The location has good link road
to Ughelli Main Market and Warri which are the biggest market for garri in the
area.
Mission/vision
statement
statement
Sunshine High Quality Garri
Processing Factory: The mission of Sunshine High Quality Garri Processing
Factory is to bring modernity into
the way garri is processed in Ughelli metropolis and Delta State in general.
Processing Factory: The mission of Sunshine High Quality Garri Processing
Factory is to bring modernity into
the way garri is processed in Ughelli metropolis and Delta State in general.
Vision statement: Sunshine High Quality Garri
Processing Factory mission statement is to make garri available to everyone at
an affordable price.
Processing Factory mission statement is to make garri available to everyone at
an affordable price.
Core values
Our core value is creativity, professionalism and quality service.
Competitive analysis
Our business will be faced with a very minimal
competition since those who were supposed to be our major competitors are the
cassava farmers. But in this case, they are going to be our customers and they
will be very happy to sell unprocessed cassava to us thereby making us
partners.
competition since those who were supposed to be our major competitors are the
cassava farmers. But in this case, they are going to be our customers and they
will be very happy to sell unprocessed cassava to us thereby making us
partners.
The other competitors are other garri processing factories, but the
closest to our location is in Eddyson Garri Processing Factory. Eddyson Gari
Processing Factory is located very far away from us, so we shall not really
feel their competition. And the garri merchant in Ughelli metropolis and Warri
will prefer to do business with due to our closeness to them.
closest to our location is in Eddyson Garri Processing Factory. Eddyson Gari
Processing Factory is located very far away from us, so we shall not really
feel their competition. And the garri merchant in Ughelli metropolis and Warri
will prefer to do business with due to our closeness to them.
Management team plan
The day to day operations of Sunshine High Quality Garri Processing Factory shall be carried out by the
partners of the company, who are; Eruemulor Daniel,
Waya Ereremena, Erukunuakpor Evelyn,
Nzeogu Lydia, Irorobuebu Afokeoghene,
Ndisika Faith, Origho Blessing, Aliagwu Loveth, and Jesse Ovwigho.
partners of the company, who are; Eruemulor Daniel,
Waya Ereremena, Erukunuakpor Evelyn,
Nzeogu Lydia, Irorobuebu Afokeoghene,
Ndisika Faith, Origho Blessing, Aliagwu Loveth, and Jesse Ovwigho.
Managing director of the company shall be Eruemulor
Daniel, who is a very experienced in the business of Garri processing, having
worked for four (4) years in the capacity of an assistant managing director at
the prestigious Uloma Garri Processing Factory in Ogume, Ukwuani Local
Government Area of Delta State.
Daniel, who is a very experienced in the business of Garri processing, having
worked for four (4) years in the capacity of an assistant managing director at
the prestigious Uloma Garri Processing Factory in Ogume, Ukwuani Local
Government Area of Delta State.
The assistant managing director shall be Waya Ereremena
which very experienced in personnel management having worked as a human
resource manager with Dream Alive Advertising Company in Ughelli, in Ughelli
North Local Government Area.
which very experienced in personnel management having worked as a human
resource manager with Dream Alive Advertising Company in Ughelli, in Ughelli
North Local Government Area.
The marketing manager shall be Erukunuakpor Evelyn.
Her wealth of experience in relationship management is certainly an asset to our
factory to our company.
Her wealth of experience in relationship management is certainly an asset to our
factory to our company.
The other partners, Nzeogu Lydia, Irorobuebu Afokeoghene, Ndisika Faith, Origho
Blessing, Aliagwu Loveth, and
Jesse Ovwigho shall be handling
different departments of the factory based on their expertise and interest.
Blessing, Aliagwu Loveth, and
Jesse Ovwigho shall be handling
different departments of the factory based on their expertise and interest.
Target market
Our target market shall be garri merchants from
Ughelli, Warri and other parts of Delta State.
Ughelli, Warri and other parts of Delta State.
Financial plan
Capital Investment
|
Capital Investment Item
|
Qty
|
Unit price (
|
Total (
|
|
Land & building
|
200 x 100
|
2,000,000
|
2,000,000
|
|
Vehicles
|
2
|
1,000,000
|
2,000,000
|
|
Power supply
|
1
|
500,000
|
500,000
|
|
Borehole
|
1
|
100,000
|
100,000
|
|
Cassava peeling machine
|
2
|
60,000
|
120,000
|
|
Stainless Steel Hammer Mill with electric Motor.
For grating Cassava tuber |
2
|
40,000
|
80,000
|
|
Fermentation Rack/Mechanical Press with hydraulic
Jack for de-watering Fermented Cassava Mash. |
4
|
10,000
|
40,000
|
|
Garri Frying Unit with gear motor, exhaust pipe,
covered with Fiber glass, can be fired with firewood |
4
|
20,000
|
80,000
|
|
Medium Size Hammer Mill for milling dried Garri
into fine particles. |
5
|
3,000
|
15,000
|
|
Stainless Steel Storage Silo for finished product
|
5
|
10,000
|
50,000
|
|
Others
|
–
|
50,000
|
50,000
|
|
Total
|
|
|
5,035,000
|
Operating Costs
(a) Raw, Supplies and Costs in N
|
Cost of items
|
Qty/day
|
Unit cost
|
Pdn cost/day
|
Pdn cost/wk
|
Pdn cost/mth
|
Pdn cost/yr
|
|
|
Direct costs
|
|
|
|
|
|
|
|
|
Cassava
|
2 MT
|
20,000
|
40,000
|
240,000
|
960,000
|
11,520,000
|
|
|
Oil
|
4 litres
|
200
|
800
|
4,800
|
19,200
|
230,400
|
|
|
Water (Cost of Power)
|
50 litres
|
10
|
500
|
3,000
|
12,000
|
144,000
|
|
|
Firewood
|
–
|
500
|
500
|
3,000
|
12,000
|
144,000
|
|
|
Fuel (transportation)
|
10 litres
|
100
|
1,000
|
6,000
|
24,000
|
288,000
|
|
|
Packaging materials
|
20 sacks
|
200
|
4000
|
24,000
|
96,000
|
1,152,000
|
|
|
Other materials
|
|
|
1,000
|
6,000
|
24,000
|
288,000
|
|
|
Sub-total
|
47,800
|
286,800
|
1,147,200
|
13,766,400
|
|||
General cost (Overheads)
|
Cost items
|
Pdn cost/day
|
Pdn cost/wk
|
Pdn cost/mth
|
Pdn cost/yr
|
|
Salaries
|
12,800
|
76,800
|
307,200
|
3,686,400
|
|
Utilities
|
1,000
|
6,000
|
24,000
|
288,000
|
|
Sales & distribution
|
3,000
|
18,000
|
72,000
|
864,000
|
|
Administrative Expenses
|
2,000
|
12,000
|
48,000
|
576,000
|
|
Cleaning and toiletries
|
2,000
|
12,000
|
48,000
|
576,000
|
|
Miscellaneous
|
5,000
|
30,000
|
120,000
|
1.440,000
|
|
Depreciation
|
1,500
|
9,000
|
36,000
|
432,000
|
|
Sub-total
|
27,300
|
163,800
|
655,200
|
7,862,400
|
Total Operating Cost for a year = 13,766,400 +
7,862,400
7,862,400
=
N 21,628,800
Ø Production costs assumed 288 days per year with daily capacity of
producing 57,600 bags of garri
producing 57,600 bags of garri
Ø Depreciation on fixed assets assumes 4-years life of assets written off
at 25% year for all assets.
at 25% year for all assets.
Ø Direct costs include materials, supplies and other costs that directly
go into production of bread
go into production of bread
Ø Total monthly days assumed are 24-days.
Production Costs
|
BRAND
|
Qty/day
|
Unit selling price
|
Income per day
|
Income per wk
|
Income per mth
|
Income per yr
|
|
Red oil garri
|
110
|
3,000
|
330000
|
1,980,000
|
7,920,000
|
95,040,000
|
|
Sour garri
|
30
|
1,500
|
45000
|
270,000
|
1,080,000
|
12,960,000
|
|
White garri
|
60
|
2,000
|
120000
|
720,000
|
2,880,000
|
34,560,000
|
|
Total
|
200
|
6,500
|
495,000
|
2,970,000
|
11,880,000
|
142,560,000
|
Profitability Analysis Table
|
Profitability item
|
Per day
|
Per week
|
Per month
|
Per year
|
|
Revenue
|
495,000
|
2,970,000
|
11,880,000
|
142,560,000
|
|
Less: Production Cost
|
47,800
|
286,800
|
1,147,200
|
13,766,400
|
|
Less: Overheads
|
27,300
|
163,800
|
655,200
|
7,862,400
|
|
Profit
|
419,900
|
2,519,400
|
10,077,600
|
120,931,200
|
Source of Fund
Farmers Multipurpose Co-operative Society
at 10% flat interest rate.
Loan Repayment
Farmers Multipurpose Co-operative Society and repayment of loan.
Share of Profit
45% of profit shared to shareholders
Company Reserve
55% of the profit realized will be used in the
operations of the factory and expansion.
operations of the factory and expansion.
Conclusion
Garri is one of the most consumed foods in Nigeria
and the production is left entirely to the peasant farmers who handle all the
processes of garri production thereby making it cumbersome for the farmers.
With a garri processing factory like our own, the farmers will be relieved of
the process of production of garri from cassava thereby giving them more time
for their farming process. The garri processing factory is a very lucrative
business for any entrepreneur to go into. The presence of large number of
peasant farmers in Nigeria in cassava farming makes the raw material for the
garri processing factory readily available and being one of the most consumed
food in the country, provides a wide range for target market for the
entrepreneur.
and the production is left entirely to the peasant farmers who handle all the
processes of garri production thereby making it cumbersome for the farmers.
With a garri processing factory like our own, the farmers will be relieved of
the process of production of garri from cassava thereby giving them more time
for their farming process. The garri processing factory is a very lucrative
business for any entrepreneur to go into. The presence of large number of
peasant farmers in Nigeria in cassava farming makes the raw material for the
garri processing factory readily available and being one of the most consumed
food in the country, provides a wide range for target market for the
entrepreneur.
References
Covello, J. A., & Hazelgren, B. J. (2004). The
complete book of business plans. Naperville, IL: Sourcebooks.
complete book of business plans. Naperville, IL: Sourcebooks.
Lawrence, M. (2010). Field guide to strategy.
Boston: Harvard Business School Press.
Boston: Harvard Business School Press.
Gumpert. E. (2009). How to Really Create
a Successful Business Plan. Boston: Inc. Publishing.
a Successful Business Plan. Boston: Inc. Publishing.
Harmer, W.
& Peck, T. (2004). Business Plans Handbook: a Compilation of Actual
Business Plans Developed by Small Businesses Throughout North America.
Gale Research, Inc.
& Peck, T. (2004). Business Plans Handbook: a Compilation of Actual
Business Plans Developed by Small Businesses Throughout North America.
Gale Research, Inc.