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Business Plan of Fermented Probiotic Healthy Beverage

Prokick
Shake of life!

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Business Plan
1.

Name of Enterprise
Biozen Corporation

2.

Name of Entrepreneurs
Adnan Mannan
Anupam Das Gupta
Sumon Bhattacharjee
Shanto Banik
Logo of the Company

3.

4.

Address (Office & factory)

15, Chandgaon
Bahaddarhat
Chittagong

5.

Phone / Mobile no.

+8801716903485, +88031650924

E-mail : biozenlimited@yahoo.com

8.

Website: www. Biozen.com

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Table of Contents
Sl
I
II
III
IV

Content
Executive Summary
Brief Description of the Business
Description of Product/ Service
Marketing Plan

4.1

Name of major competitors and their position

4.2

Comparison with Competitors

4.3

Marketing Area

4.4

Target Customer

4.5

Price

4.6

Sales Forecasting

4.7

Marketing Strategy

4.8

Marketing budget

4.9

Risk of business

4.10

Seasonal trend

Operations Plan

5.1

Stages in Production Process

5.2

Project Implementation Schedule

5.3

Production Capacity

5.4

List of Fixed Assets and their Depreciation

5.5

Repair and Maintenance Cost of Fixed Assets

5.6

Cost of Raw Materials

5.7

Manpower Engaged in Production

5.8

Factory Overhead Cost

5.9

Production Cost

5.10

Inventory management

VI

Organization and Management Plan

6.1

Organizational Structure

6.2

Associate organizations

6.3

Succession Plan

6.4

Business Start-up Activities and Cost

6.5

Office Equipment

6.6

Salary and Benefits of the Employees

6.7

Administrative Expenses

Pages

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Sl

Content

6.8

Monitoring and Evaluation (M&E)

6.9

Business Social Responsibility (BSR)

6.10

Research and Development (R&D)

6.11

Training & Development

VII

Financial Plan

7.1

Fixed Asset

7.2

Current Asset

7.3

Start-up Cost

7.4

Total Investment

7.5

Source of Fund

7.6

Schedule of Loan Payment

7.7

Income Statement

7.8

Break-Even Point

7.9

Projected Balance Sheet

7.10

Cash Flow Statement

7.11

Performance of the company

VIII

Other Courses of Action

8.1

Environmental Issues

8.2

Ethical Issues

8.3

Legal issues

8.4

Intellectual Propery rights

8.5

Working Area

8.6

Networking Linkage/Partnership

8.7

Safety & Security

8.8

Use of ICT

IX

Conclusion

Appendices
Annex-I: Financial Ratio Analysis

Pages

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I.

Executive Summary

In this business plan, we tried to introduce a start up company like biotechnology based company.
This business plan is all about a biotechnology based business plan named Biozen Corporation. The
aim of this company is to make a safe and healthy nation through probiotic product named Prokick.
The entrepreneurs have taken the business initiative based on their creativity, analysis of different
business area, possibility of business growth, introducing a new area in Bangladesh and to build a
healthy generation and to achieve MDGs. This probiotic product is a combination of 4 beneficial
bacteria. According to the scientific report, these bacteria have not any adverse effect. These bacteria
will play significant role in improving digestion, immunity, reduce cholesterol, blood pressure, and
strengthen the body and active against some other harmful bacteria.
Here, we the entrepreneurs tried to develop a roadmap for marketing management, production and
operation management, organization and management plan, human resource management, sales
forecasting, optimum utilization of raw materials and resources, risk assessment and risk mitigating
techniques, financial analysis, productivity improvement, monitoring and evaluation system, business
social responsibility, research and development, training and development, environmental issues, legal
and ethical issues, safety and security measures, intellectual property rights.
We measured the potential market and demand of this type of product through an intensive survey
(attached) and we got positive response from 90 respondents divided into two categories: customers
and distributors. We targeted the customer level above age 5. In our business plan, we showed that we
reached in BEP at 1 year 11 month and growing very fastly. The specialty of our product is to produce
sauce, jelly, ice-cream in future and its possible for a customer to add this product with Tang,
Horlicks and the like.
We want to establish the business from January 15 ,2013. ..workforce including skilled, semiskilled, unskilled are required for the business. We do believe that introducing this kind of product
will surely enhance a new dimension in our nations product basket and will add value to the
economy. Through introduction of this product people of developing countries like us will get the
flavor of developed countries.

II. Brief Description of the Business

1.

Name of the Business : Biozen Corporation

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2.

Nature of Business

: Manufacturing

3.

Sector/Industry

: Food and Beverage

4.
Objectives
: Use of biotechnology in food production and processing has
become a new phenomenon over the world in the last few decades. Biotechnology based food
products have drawn attention of health conscious people in the Western world. Recent research in
biotechnogy has proved usefulness and effectivity of biotechnogy based products in maintaining good
health system as well as solving various health problems like reducing cholesterol, controlling blood
sugar level etc. But such biotechnology based products are very rare in South Asian Countries
especially in Bangladesh. Keeping these factors in mind, Biozen has planned to set up biotechnology
basd food industry for the first time in Bangladesh. The main objectives of the proposed plan are :
- To market biotechnology based product like probiotic health drinks, probiotic beverages etc.
- To acquire large market share with quality health drinks in Bangladesh.
- Providing safe, healthy, and consumer oriented biotechnology based products that will help
to build a healthy generation and to achieve MDGs.
- To create employment opportunity for unemployed people.
- To enhance GDP/GNP and to implement the govt. policy by industrialization.
- To earn foreign currency through export.
5.

Employment

:
Skilled

Semi-skilled

Unskilled

Permanent

13

Temporary

Total

11

6.

16

Brief Introduction of the Entrepreneur(s) :

Which are the skills and qualifications of the entrepreneur(s)?

Sl

Name & Address

Educational
Qualification

Experience in
Other Business

Business
Experience

Ownership
(%)

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1

Adnan Mannan

M.
Sc. Diagonistic Business
(Biotechnology
and Molucular Bouti Business
Biology)

5 years

50

3 years

Anupam
Gupta

Das M.B.A. (Finance SME

Helpline 3 years
and Banking)
Bangladesh Limited

Sumon
Bhattacharjee

M.B.A.
Consultancy Business
(Accounting and
Information
Systems)

3 years

15

Shanto Banik

M BA

3 years

15

Gold & jewellery

20

(Marketing)

7.

Type of Ownership- Partnership

8.

Total Investment

Initial Investment

9.

Fixed Asset

Total

Loan & Equity :

Loan
BDT. 10000000 (33.33%)

10.

Current Asset

Equity
BDT. 66.67 (50.00%)

Total
BDT.
30000000
(100.00%)

Potential Market:
Local
Food and Beverage industry of all over
Bangladesh.

International
South Asian and Middle East Countries

III. Description of Product/ Service

This is the first probiotic health and beverage drinks of Bangladesh. This health drinks has dynamic
features. It will contain probiotic bacteria like .These bacteria, if injected into human body in
sufficient quantity can improve digestive system, control high cholesterol level, prevent food
poisoning, enhancing immune function and effective against harmful bacteria. These mentioned
attributes of probiotic bacteria has been proved by a good number of reliable research. (Ref. of
research). Major ingredient of our health drink will be imported burley in which probiotic bacteria
will be injected. There is no established branded probiotic health drink in Bangladesh. But, probiotic

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health drinks are allowed in Bangladeshi market. Presently supplied probiotic beverages are imported
from international market (e.g., Destiny group imports such beverages from Malyasia). It is worth
mentioning that, marketing this type of product is a very successful and profitable business in the
European market.That means, Bangladesh and even the South Asian Countries is a virgin/untapped
market for probiotic health and beverage drinks. If successfully launched and public awareness can be
created, our probiotic health and beverage products can easily penetrate into the local and
international market in future.

IV. Marketing Plan

Clear concept on market is necessary to make marketing plan. Market research is important in this
regard. Marketing plan should be specific, informative and with reference.
1.

Major Competitors and their position in the market

Identify your major competitors.
Rank them in order of their position in the market.

Sl

2.

Competitors

Position

Tang

1st

Horlicks

2nd

Rose fiber Probiotics

3rd

Comparison of product/service with competitors

Strength
First probiotic
drink business in
Bangladesh

Weakness
Lack of
public
awareness

Tang

Large market
share, rebust
brand image

Horlicks

Large market
share, good
product quality.

Not
considered as
a health
drink, Nonprobiotic
drink
Nonprobiotic
drink

Rose Fibre
Probiotic
(Imported from
Malyasia by
Destiny Group)

One of the very

few probiotic
health drink
product available
in Bangladesh.

Your business

No market
awareness,
Poor product
features, high
price, very
very poor
market share.

Opportunity
Huge undiscovered
and untapped market
for biotechnology
based product
Entrance into the
beverage market with
diversified product

Threat
Entrance of
international and local
established brands with
similar product
Entrance of
international and local
brands with
biotechnology based
product

Inclusion of
biotechnology based
product in the product
line

Entrance of
international and local
brands with
biotechnology based
product
Entrance of
international and local
established brands with
similar product

Huge undiscovered
and untapped market
for probiotic health
and beverage drinks

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3.

Marketing Area:
What is the existing market/ market scenario of the product/ service?
-Health drinks and beverages hold a huge market in Bangladesh and South Asian Countires. This
market can easily be converted into a market for probiotic health and beverage products by adding
probiotic features to health drinks and beverages. Not only that, in the long run, probiotic bacteria
can be injected to any other product like juice, sauce, jelly etc. to produce probiotic juice,
probiotic sauce, probiotic jelly etc. So, though the existing market of probiotic foods and
beverages seems very meager, in future total market of various food and beverage products can be
converted into a profitable market for probiotic food and drinks.
In which areas will you market your products?
- In the short run (First 3-5 years)- All the divisions of Bangladesh
- In the long run- The South Asian Countries.
Does your product have international market? Where?
-Probiotic food and beverage products are popular in Europe and USA. In future, the others areas
like Asia, Middleeast and Africa can become a popular market for such products.

4.

Target Customer:
Who will be the target customer segment of this product/ service in the market?
The customers will be of above five (5) years in age.
What are the characteristics of the target group? (Quality or price concious?
In which situation are they eager to buy? What factors do they consider when they buy?)
The target group will be quality conscious. They will be aware about this kind of product and will
demand for that.
They are eager to buy that product when they will tired or bored. They will consider the below
factors..
1. Quality
2. Price
3. Availability
4. Product Information
5. Consistent performance
6. Familarity
7. Reference
8. Price value relationship etc.

5.

Price:
Sl
1
2
3

Product Category
500 gm plastic bottle jar
250 gm refill pack
15 gm refill pack

Unit Price (BDT)

250
115
8

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6.

Sales Forecasting:
How many units of products will be sold in the market?
1. 500 gm plastic bottle jar How much (in BDT) do you expect to sell? (3 years)
Year
1
2

7.

Projected Sales
Quantity
Unit Price
30000
250
50000
115
500000
8
45000
280
57500
130
575000
9

Description of Product
500 gm plastic bottle jar
250 gm refill pack
15 gm refill pack
500 gm plastic bottle jar
250 gm refill pack
15 gm refill pack
500 gm plastic bottle jar
250 gm refill pack
15 gm refill pack
Total Sales

55000
70000
590000

Total Taka
7500000
5750000
4000000
12600000
7475000
5175000
425
15950000
9450000
5900000
73800000

290
135
10

Marketing Strategy:

To achieve the sales target we will apply multidimensional marketing strategy such as product
availability through retail stores, massive promotional tools, competitive pricing system, continuous
development of product quality, establishing brand image etc.
The target customers are the age of above 5 years.
We will identify and approach potential market through intensive survey among the customers and
distributors (Questionnaire attached) and analysis of the survey report.
(a) Promotional Strategy:
Promotional strategies to sell the product are:
Promotional Tools
Newspaper
Advertisement
TVC
Face Book
Word of Mouth
Use of opinion leaders
Direct Marketing
FM Radio
Class Room References
Bill Board
Sign Board
Co-operative Advertising
Sponsoring Events
Magazine Publish

5 Days in each month

In 2nd Year
In 2nd Year
In 2nd Year
In 2nd Year

10

11

12

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The most important feature is the creative advertisement, involvement of different consumers
through different events.
(b) Price Strategy:
The pricing method we decided to apply is cost based pricing. With the per unit
production cost a minimum amount of margin will add and sold to market.
(c) Market Expansion Strategy:
We will expand the market through:
Introducing new flavours
Introducing new product like sauce, jelly, ice-cream
Expanding the business internationally
Addition of new ingredients
Increase sales of products in existing markets
Moving into New Geography

(d) Distribution Strategy:

We will use Indirect and intensive method of distribution.
Manufacturer ------Wholesaler ------- Retailers ------- Consumers.
What strategy will you take to choose the location of business?
The manufacturing unit will be in Chittagong. There will be a store situated in Dhaka from
where products will be distributed in different division of the country and this will help to
reduce cost.

8.

Marketing Budget (Yearly):

Item
(a) Promotion
Newspaper Advertisement

Television Advertisement
Bill Board
Banner

Budget
Prothom Alo Last page, 6 column
-Consecutively first 3 days (Bdt. 13500*3*3)
-1st year, one day in every two months (Bdt
13500*3*5)
Local Daily: Dainik Azadi, Dainik Purbokon
1st year, two days in each month (4000*2*12)
Advertisement in Channel - I
(6000*2*5*12)
GEC in Chittagong & shahbag moor in Dhaka
In different occasion (Eid, pooja, pahela baishak,
16th december, 26 march) (3000*200)

121500
445500
96000
720000
1200000
600000

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(b) Distribution of product
Colorful tea stall & bus
Sponsoring different
events
(c) Sales Commission
(d) Others (Specify)
Total
9.

Truck cost + Pick up van cost + Push cart (31000

*12)
From 2nd year
From 2nd year

372000
149760
3704760

Risk of business:
What are the expected risks in your business?
Temparature to maintain the bacteria.
Fire
Payment of loan as per schedule
What steps can be taken to manage/overcome/mitigate these risks?
Maintenance of temperature in optimum level
Insurance policy maintenance
Confirmation of sales and collection of arrear payment
Put tick () mark
Weather

Flood

Fire

Earthquake

Others (please specify):

V. Operations Plan
1.

Stages in Production Process:

Describe the production process.

What are the steps in the production process? Explain with Flow Chart.
What Quality Control and Standards should be maintained?
Production process is dependent on fermentation technology. The production process will depend on
collection of bacterial strain from waste material.
Collection of waste
Isolation of Bacterial strain
Mixture of bacterial strain and nutrients in fermenter
Agitation of mixture and formulation of barley in stirrer
Bottling
Sealing and packaging
Regular research is needed for quality improvement. For safetyissue, laboratory should be aseptic and
sterilized. For quality control hygiene should maintained strictly during mixing in the stirrer. Bacterial
strain should be handled carefully.
2.
Project Implementation Schedule:

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Work/Activities
1

Year 1
7 8

10

11

12

Market survey
Business plan preparation
Registration and license for business
Application for loan
Decoration of office and factory
Initiative for import of machineries
Installation of machineries
Recruitment of scientists and employees
Training of employees
Import of raw materials
Building market awareness
Test production run
Getting license from BSTI
Commencement of production

3.

Production Capacity:
What is the yearly production capacity? (Quantity in units & Value in BDT)

Product
Prokick
Health
Drink

Units

Time

Quantity

500 gm plastic
bottle jar
250 gm refill pack

1 year

15 gm refill pack

1 year

300000(1000 bottles per day for

300 days per year)
360000(1200 bottles per day for
300 days per year)
1200000(4000 packs per day for
300 days per year)

1 year

Unit
Price*
250

Taka
75000000

115

41400000

9600000

Total
4.

List of Fixed Assets and their Depreciation: (Please see annexure-1)

Identify your fixed assets and their corresponding cost of depreciation.
Fixed Assets
Land (No need to
mention depreciation)
Building
Machiery & Equipment
(1) Bioreactor
(2) Pecking, sealing,
and filling

Quantity

Price (BDT)

Durability of
Assets (in
years)

Depreciation
per year
(In Taka)

4 kathas

12000000

01

4000000

20

200000

01
01

4000000
2500000

10
20

400000
125000

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machine
(3) Agitator
01
500000
10
50000
(4) Refridgerator
01
300000
20
15000
(5) Generator
01
300000
10
30000
(6) Computer
10
250000
5
50000
(7) Air Conditioner
4
208000
10
20800
Furniture & Fixture
468000
10
46800
Transport
6
1200000
10
120000
(Delivery Van)
Others (Specify)
Total
Rate of depreciation: Building@ 5% each year, Machineries & Equipment @ 10% each year,
Furniture & Fixture and Transport @ 20% each year may be considered.

5.

Repair and Maintenance Cost of Fixed Assets:

Repair and Maintenance Cost*

Fixed Asset

Building
10000
Machinery and equipment
80000
Furniture and Fixture
10000
Total
* For the 1st year only. From the 2nd year onwards, repair and maintenance cost is
assumed to increase by 5% per year (as shown in the income statement).
6.

Cost of Raw Materials (yearly):

What is the requirement of raw materials?
What will be the cost of raw materials?
What is the source of raw materials? Are the raw materials available round the year?
Who is/are the supplier(s) of raw materials?
Description of Raw
Materials
Media for bacteria

Unit
Media per
ton
M. ton
Formula
per MT

Quantity
10 ton
production
93.78
12

Unit
Price
(BDT)
24000 per
ton
24690
100000

Cost (Taka)
240000

Burley
2315428
Milk powder/ lemon
1200000
formulation
Total
3755428
Burley will be imported from India. Media for bacteria and milk powder formula will be
procured from local market. Raw materials will be available round the year.
7.

Workforce Engaged in Production:

How many direct or indirect workers will be engaged in production?

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What level/category of skill is required?
Are the workers trained? If not, how they will be trained?
How much wages will they be paid?
Are the workers available round the year? If not, what is the impact of this on production?

All the workers are available round the year. Trained scientist will be hired from local/domestic firms
as well as fresh graduates from local educational institutions will be recruited. The workers will be
trained by the recruited scientists.
8.

Factory Overhead Cost:

Sl
1
2
3
4
5

9.

Description
Utilities (gas, electricity, water)
Depreciation of fixed assets
Repair and maintenance cost
Rent (land, building, machine
etc. if any)
Others (Specify)
Total

Ref

Cost (yearly)
120000
1057600
100000

V. Operation Plan- (4)

V. Operation Plan- (5)

Production Cost:
What will be the production cost of the product/service?
Sl
1
2
3

10.

Description
Cost of Raw Materials
Wages
Factory Overhead Cost
Total

Ref.
V. Operation Plan- (6)
V. Operation Plan- (7)
V. Operation Plan- (8)

Cost (yearly)
3755428
3702240
1277600
8711868

Inventory Management:

The company has a plan to maintain 5% inventory level. Since, the production cycle can be completed
within 1 week, there will be no work in progress at the end of the year. Raw materials like burley will
be improted once in a year. It is assumed that, inventory of burley and finished goods will be 5% of
the total purchase and production. The company has sufficient storage capacity for storing the
inventory.

VI. Organization and Management Plan

1.

Organizational Structure:

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What is the Organizational Structure of the business?
Who will be in the management team? What are their experiences and qualifications?
Sl
1

Name

Experience

Qualification

2
3
4

2.

Associate/Partner Organizations

Partner organizations
1. Chittagong city corporation
2. Department of Genetic Engineering and
Biotechnology, University of Chittagong
3. Department of Biochemistry and Molucular
Biology, University of Science,
3.

Description
Supplier of waste.

Succession Plan
- Since the business is a partnership business, in absence of any one or two of the
partner(s), the remaining partners will run the business. Death or retirement of any partner
and any change in ownership will be dealt as per partnership deed.

4.
Sl
1
2
3
4
5
6
7
8
5.

Business Start-up Activities and Cost:

Business Start-up Activities
Business Plan preparation
Registration and license for business
Application for loan
Contract/Agreement
Purchase of land/ Rent (only time)
Connection of utilities (gas, electricity, water)
Recruitment
Others
Total

Time
15 days
30 days
1 day
10 days
2 months
1 month
1 month
3 months

Cost
Tk. 10,000
Tk. 2,500
0
Tk. 20,000
Tk. 1,20,000
Tk. 20,000
Tk. 3,27,500
Tk. 5,00,000

Office Equipment:

SL.

Items

Qn
.

Table (5 feet by 7 feet)

15000

10 Years

90000

Table (3 feet by 4 feet)

Table (Officers and
Directors)
Chair (Normal)

5,000

10 Years

10000

8
40

5,000
500

10 Years
10 Years

40000
20000

3
4

Price per unit

Duration

Total
(Tk.)

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Chair (Revolving)

6
7
8
9

Sofa Set
File cabinet
Almirah
Fittings & others

20

3000

10 Years

60000

3
10
4

16000
4000
15000

10
10
10
10

48000
40000
60000
100000
4,68,000

Years
Years
Years
Years

Total

6.

Salary of the Employees:

Year 1
Type
s.l

Basic

No.

House rent

Medical

others

Monthly
Salary

Monthy
Total

Yearly
bonus

Yearly
total
(TK.)

Designation

Microbiologis

Permananent

11000

5500

700

1000

18200

36400

44000

480800

Biotechnologist

Permananent

11000

5500

700

1000

18200

18200

22000

240400

Chemist

Permananent

11000

5500

700

1000

18200

36400

44000

480800

Permananent

7252

3626

700

1000

12578

12578

14504

165440

Nutrition Officer
Finance officer cum
Accountants

Permananent

11000

5500

700

1000

18200

18200

22000

240400

Marketing Officer

Permananent

9500

4750

700

1000

15950

15950

19000

210400

Marketing Officer

Contructual

8000

Consolidated

8000

72000

864000

Lab Technicial

Contructual

7000

Consolidated

7000

7000

84000

R&D

Contructual

15000

Consolidated

15000

30000

360000

10

Consultant

Contructual

25000

Consolidated

25000

25000

300000

11

Security Guard

Contructual

8000

Consolidated

8000

16000

192000

12

Driver

Contructual

7000

Consolidated

7000

7000

Total Payments in Year 1

7.

Administrative Expenses:

General & Administratives Expenses

Salary & allown
Repair and others
Office Expenses
Other Admin. Expenses
Marketing cost
Total G & A Expenses

8.

3,702,240
100,000
120,000
500,000
4,441,368
8,863,608

Monitoring and Evaluation (M&E)

How will you monitor the progress of implementation of the plan?
What are your objectively verifiable indicators of success?

9.

Business Social Responsibility (BSR)

What activities you will undertake to fulfill your responsibility towards the community?

84000
3702240

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10.

Research and Development (R&D)

Are there areas or issues related to your proposed business that need to be studied further?
What are your prospects in terms of the present and future development of the business?

11.

Training & Development

How will you build the capacity/skills of your management and employees?

VII. Finanancial Plan

1.

Fixed Assets:
Item

Ref.

Land
Building
Machineries & Equipment
Furniture & Fixture
Vehicle (Van, Truck if any)
Others (Specify)
Total
2.

Current Asset:
Description
Raw materials expenditure
Wages
Factory Overhead
expenditure
Marketing expenditure
Administrative expenditure

Present (Tk)

Proposed (Tk)

V. Operation Plan-(4)
V. Operation Plan -(4)
V. Operation Plan -(4)
V. Operation Plan -(4)
V. Operation Plan -(4)
V. Operation Plan -(4)

Duration

Ref.

Present (Tk)

Proposed (Tk)

V. Operation Plan -(6)

V. Operation Plan -(7)
V. Operation Plan -(8)
IV. Marketing Plan-(8)
VI. Organization and
Management Plan - (7)

Others (Specify)
Total
What is the cost of Fixed Asset and Current Asset?
How much capital is needed?
3.

Start-up Cost

VI. Organization and Management Plan - (4)

Taka

4.

Total Investment

VII. Financial Plan- (1+2+3)

Taka

5.

Sources of Fund:
How much capital you need for your business?
How will you source this?
If you are availing any loan from any bank/financial institution, please describe in detail.

Description

Loan
Present
Proposed
Bank/ Others Bank/FI Others

Equity
Present Proposed

Total
Present Proposed

[Type the document title]

FI
Land
Building
Machineries
Furniture and
fixtures
Transportation
Business Start
up cost
Others (specify)
Total fixed asset
Net current
assets
Total
Investment

[Type the document title]

6.

Schedule of Loan Repayment:

Amount
Maturity
Moratorium (principal only)
Repayment Period
Interest Rate
IDCP
Installment

5.25 yrs
0.25 yrs
5.00 yrs
16.00% p.a.

10,000,000
63 months
03 months
60 months
1.33% per month
400,000
252,908

[Type the document title]

Month

0
2013 ,1
2
3
4
5
6
7
8
9
10
11
12
2014, 1
2
3
4
5
6
7
8
9
10
11
12
2015, 1
2
3
4
5
6
7
8
9
10
11
12
2016, 1
2
3
4
5
6
7
8
9
10
11
12
2017, 1
2
3
4
5
6
7
8
9
10
11
12(adjuste
d)

Installmen
t
Number

Opening
Balance

0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59

10,400,000
10,400,000
10,285,759
10,169,994
10,052,686
9,933,814
9,813,357
9,691,293
9,567,603
9,442,263
9,315,252
9,186,547
9,056,126
8,923,967
8,790,045
8,654,337
8,516,821
8,377,470
8,236,262
8,093,171
7,948,172
7,801,239
7,652,348
7,501,471
7,348,583
7,193,656
7,036,663
6,877,577
6,716,370
6,553,014
6,387,479
6,219,738
6,049,760
5,877,515
5,702,974
5,526,106
5,346,879
5,165,263
4,981,225
4,794,733
4,605,755
4,414,257
4,220,206
4,023,567
3,824,307
3,622,390
3,417,780
3,210,443
3,000,340
2,787,437
2,571,695
2,353,076
2,131,542
1,907,055
1,679,574
1,449,061
1,215,474
978,772
738,914
495,858

60

249,562

Installment
Amount
monthly
0
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908
252,908

Closing

Interest
0
138,667
137,143
135,600
134,036
132,451
130,845
129,217
127,568
125,897
124,203
122,487
120,748
118,986
117,201
115,391
113,558
111,700
109,817
107,909
105,976
104,017
102,031
100,020
97,981
95,915
93,822
91,701
89,552
87,374
85,166
82,930
80,663
78,367
76,040
73,681
71,292
68,870
66,416
63,930
61,410
58,857
56,269
53,648
50,991
48,299
45,570
42,806
40,005
37,166
34,289
31,374
28,421
25,427
22,394
19,321
16,206
13,050
9,852
6,611

Principal
0
114,241
115,765
117,308
118,872
120,457
122,063
123,691
125,340
127,011
128,705
130,421
132,160
133,922
135,707
137,517
139,350
141,208
143,091
144,999
146,932
148,891
150,877
152,888
154,927
156,993
159,086
161,207
163,356
165,534
167,742
169,978
172,245
174,541
176,868
179,227
181,616
184,038
186,492
188,978
191,498
194,051
196,639
199,260
201,917
204,609
207,338
210,102
212,903
215,742
218,619
221,534
224,487
227,481
230,514
233,587
236,702
239,858
243,056
246,297

Balance
10,400,000
10,285,759
10,169,994
10,052,686
9,933,814
9,813,357
9,691,293
9,567,603
9,442,263
9,315,252
9,186,547
9,056,126
8,923,967
8,790,045
8,654,337
8,516,821
8,377,470
8,236,262
8,093,171
7,948,172
7,801,239
7,652,348
7,501,471
7,348,583
7,193,656
7,036,663
6,877,577
6,716,370
6,553,014
6,387,479
6,219,738
6,049,760
5,877,515
5,702,974
5,526,106
5,346,879
5,165,263
4,981,225
4,794,733
4,605,755
4,414,257
4,220,206
4,023,567
3,824,307
3,622,390
3,417,780
3,210,443
3,000,340
2,787,437
2,571,695
2,353,076
2,131,542
1,907,055
1,679,574
1,449,061
1,215,474
978,772
738,914
495,858
249,562

3,346

249,562

[Type the document title]

Summary of Loan Scheduling

Opening Balance
Installment
Interest
Principal
Payment
Closing Balance

7.

Year 01
10,400,000
3,034,896
1,558,863

Year 02
8,923,967
3,034,896
1,304,585

Year 03
7,193,656
3,034,896
1,006,503

Year 04
5,165,263
3,034,896
657,070

Year 05
2,787,437
3,034,896
247,459

1,476,033
8,923,967

1,730,311
7,193,656

2,028,393
5,165,263

2,377,826
2,787,437

2,787,437
0

Income Statement:

Projected Income Statement

Year 01

Year 02

Year 03

Revenue
Sales revenue*
Less Vat
Total revenue/Sales

50,133,600
4,557,600
45,576,000

Operating Cost
Media for Bacteria**
Formulation cost
cost of Barlery
Depreciation
wastage cost
Labor cost
cost of packaging
Total Operating Cost

240,000
1,200,000
2,315,428
1,010,800
6,000
44,000
1,836,000
6,652,228

120,000
1,200,000
4,927,729
1,010,800
1,000
48,400
3,801,600
11,109,529

120,000
1,320,000
8,240,857
1,010,800
1,000
53,240
6,359,760
17,105,657

38,923,772

82,922,471

133,374,343

3,702,240
100,000
120,000
500,000
4,441,368
46,800
8,910,408

4,015,040
105,000
126,000
300,000
7,876,256
46,800
12,469,096

4,303,840
110,250
132,300
315,000
8,684,040
46,800
13,592,230

30,013,364
1,558,863
28,454,501

70,453,375
1,304,585
69,148,790

119,782,113
1,006,503
118,775,610

7,113,625

17,287,197

29,693,903

21,340,876

51,861,592

89,081,708

0
21,340,876
21,340,876
0

21,340,876
51,861,592
73,202,468
0

73,202,468
89,081,708
162,284,176
0

21,340,876

73,202,468

162,284,176

Gross Profit
General & Administratives Expenses
Salary & allown
Repair and others
Office Expenses
Other Admin. Expenses
Marketing cost
Depreciation of Office equipment
Total G & A Expenses
EBIT
Interest Expenses
Net Profit before Tax
Corporate Tax

25%

Net Profit After Tax/ Before

Appropiation
Opening Balance of Retained Earning
Net Addition During the Year
Sub Total
Dividend Declared
Retained Earning

0%

94,032,000
9,403,200
94,032,000

165,528,000
15,048,000
150,480,000

[Type the document title]

* Sales revenue of the First year based on only Dhaka and Chittagong Divisio & Second year sales
based on whole country through dealership of all divisional cities.
** Cost of Meadia for becteria will be reduced by 50% since we will reproduce the becteria that
produced of the previous year.

8.

Break-Even Point
What is the Break-Even Point? Represent in a graph (if possible)
What are the total sales and number of units sold needed to break even?
Description

Fixed Cost

Variable Cost

Variable Cost

Fixed Cost

Total Fixed Cost

Total Variable Cost
9.

Projected Balance Sheet

Projected Balance Sheet

Year 01

Year 02

Year 03

Current Assets:
Cash & Bank
Accounts Receivable
Advance, Deposits & Prepayments
Other receivable
Inventory

19,843,665
3,745,973
500,000
1,872,986
0

65,304,766
7,728,658
400,000
3,864,329
0

Total Current Asset

25,962,624

77,297,753

146,602,495
12,368,219
300,000
6,184,110
0
165,454,82
4

Fixed Assets:
Fixed Assets at Cost
Less Accumulated Depreciation
Total Written Down Value of Fixed
Asset

25,726,000
1,057,600

25,726,000
2,115,200

25,726,000
3,172,800

24,668,400

23,610,800

22,553,200

Total Assets

50,631,024

100,908,55
3

188,008,02
4

Current Liabilities:
Trade Creditors
Accounts Payable
Sub Total

0
366,181
366,181

0
512,429
512,429

0
558,585
558,585

[Type the document title]

Long Term Loan
Long Term Loan
Sub Total

8,923,967
8,923,967

7,193,656
7,193,656

5,165,263
5,165,263

Total Liabilities

9,290,148

7,706,084

5,723,848

Equity:
Paid Up Capital
Retained Earnings

20,000,000
21,340,876

20,000,000
73,202,468

Sub Total

41,340,876

93,202,468

20,000,000
162,284,176
182,284,17
6

Total Liability Plus Equity

50,631,024

100,908,55
3

188,008,02
4

10.

Cash Flow Statement

current

Cash Flow from Operating

Activities
Net Profit after Tax
Add:Depreciation
(Increase)/Decrease in other
recivable
(Increase)/Decrease in Accounts
Receivable
(Increase)/Decrease in Other
Current Assets
Increase/(Decrease) in Trade
Creditors
Increase/(Decrease) in Accounts
Payable
Increase/Decrease in Inventory
Cash from Operating Activities
Cash Flow from Investing
Activities
Fixed Assets Addition
Investment
Cash from Investing Activities
Cash Flow from Financing
Activities
Share Capital
Loan
Dividend Payment
Repayment of Term Loan
Cash Flow from Financing
Activities
Net Cash Flow
Beginning Cash Balance
Ending Cash Balance

0
0

Year 01

Year 02

Year 03

Year 04

Year 05

21,340,876
1,057,600

51,861,592
1,057,600

89,081,708
1,057,600

99,075,120
1,057,600

110,095,915
1,057,600

(1,872,986)

(1,991,342)

(2,319,781)

(618,411)

(680,252)

(3,745,973)

(3,982,685)

(4,639,562)

(1,236,822)

(1,360,504)

(500,000)

100,000

100,000

46,156
0

45,677
0

366,181
0
16,645,69
8

146,247
0
47,191,41
2

83,326,121

98,323,164

49,745
0
109,162,50
4

(25,726,000)
(25,726,00
0)

20,000,000
10,400,000

30,400,000

0
(1,476,033)
(1,476,03
3)

0
(1,730,311)
(1,730,31
1)

0
(2,028,393)
(2,028,393
)

0
(2,377,826)
(2,377,826
)

4,674,000

15,169,66
5

45,461,10
2

81,297,728

4,674,000
19,843,66
5

19,843,665
65,304,76
6

65,304,766
146,602,49
5

95,945,338
146,602,49
5
242,547,83
3

0
4,674,000

11. Performance of the Company (For existing enterprise only)

0
(2,787,437)
(2,787,437
)
106,375,06
7
242,547,833
348,922,90
0

[Type the document title]

What was the performance of the company during last 3 years?
Period

Total Revenue
(Tk.)

Total
Expenses
(Tk)

Gross Profit
(Tk.)

Other
Expenses
(Tk)

Net Profit
(Tk.)

VIII. Other Courses of Action

1.

Environmental Issues:
How does your plan address environmental issues such as: waste management, sustainable
development of raw materials, ecological balance, etc?
How will you use green technology/ energy efficient equipment in your business?
Do you require any clearance from Department of Environment? Which category does your
business fall in terms of location and influence on environment?
Is there a need for environment friendly waste management plant? Do you plan to use it?

2.

Ethical Issues:
What actions will you take to maintain ethical standards of your business in terms of
monopoly, fairness in market, loss, profit, etc.

3.

Legal Issues:

Biozens will comply with the following policies, rules and regulations
- Existing industrial policy of the Government
- Bangladesh Labour Code 2006
4.
Intellectual Property Issue:
Formula of probiotic health drink production will be patented for next three years. Biozen will start its
business by collecting license from the Chittagong City Corporation. Biozens product will be
certified by BSTI, BCSIR and Genetic Engineering & Biotechnology Dept., University of Dhaka.
Biozens first probiotic health drink product named Prokick will be trademarked.
5.
Working Environment:
Biozen is an equal opportunity employer. The employees will be recruited on the basis of caliber and
experience. The company will formulate a service rule to guide workers recruitment, compensation,
and promotion. Since the company is operating in food and beverage industry, product quality is a
very vital issue. Biozen will formulate effective motivational plan based on decent compensation and
sales commission, performance bonus and incentives, regular employee training. The employed
scientist, if required, will be given foreign training. In the long run, Biozen has a plan to run a child
care centre and medical centre for regular health checkup of the employees. If required, the employees
will be given training and counseling to maintain peace and harmony in the working environment.
6.

Networking Linkage/ Partnership:

[Type the document title]

Biozen will go for long run relationship with stakeholders. Biozens policy is to maintain win-win
situation with the suppliers of raw materials, marketing intermediaries (wholesalers, retailers),
employees, and consumers. The suppliers of raw materials (burley, milk powder) will be asked to
supply quality raw material and the company will ensure timely payment to them. Biozen will retain
favourable credit policy for the marketing intermediaries. The sales persons will be given proper
training for maintaining encouraging liaison with the wholesalers and retailers. Biozen is an equal
opportunity employer and it will maintain healthy and safe working environment. For the consumer,
Biozen will serve quality product at competitive price. Biozens product will be certified by BSTI,
BCSIR.
7.

Safety and Security Issues:

To ensure safety and security of the employees and the organization, Biozen will take the following
measures- Establish a production plant based on design of bioteck industry expert.
- Ensure internal factory environment as per requirements of Bangladesh Labour Code 2006.
- Employees will be given training on use of fire extinguisher, use of emergency exit etc.
8.

Use of ICT

Biozen will use the following ICT facilities to manage business

- Computers connected by a local area network (LAN).
- Accounting software like Tally will be used.

IX. Conclusion
We tried to introduce biotechnology based business in Bangladesh. This is a
different and new area of business.
Our target is to provide healthy beverage. This health drinks provides six
beneficial features against diseases. There is not any existing major and
established brand in the local market with same features. We want to be the
market leader in probiotic business within one year .We also wants to create on
those beneficiary products. This product is not only a beverage or health drinks it
can serve various pharmaceutical effects or purposes.
New products will launch after second. Same technology can be used to produce
sauce, jelly, ice-cream. I t can also lead to scientific business. Bacteria produced
in our lab can be sold to other laboratories and companies. We will also promote
industrial academic linkage for developing our R & D sector.
Marketing policies will include TVC, paper advertisement, FM radio, word of
mouth.
This business will involve scientists and laborer .it will create new employment
opportunity for biotechnologist and microbiologist. A new door for business arena
of Bangladesh is going to be initiated.

[Type the document title]

X. Appendices
Please attach the following documents as per availability:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.

Breif biography with copy of national ID of all entrepreneurs

Company brochure (if any)
Market research report
Sector study report
Detail list of machineries
Copy of Balance Sheet, Income Statement and Cash Flow statement of previous year (for
existing enterprise)
Trade license, Certificate of Incorporation, Memorandum of Articles, Article of Association,
Partnership deed (for existing enterprise)
TIN certificate, VAT registration (for existing enterprise)
Factory/Office Layout plan
Clearance from Department of Environment, Fire License, Boiler registration certificate etc
(if applicable)
Bank Statement (for existing enterprise)
Loan sanction letters (if any loans availed)
Other supporting documents of information and data used in business plan

[Type the document title]

Annex-I: Financial Ratio Analysis

Production Cost
Total Production Cost (V. Operation Plan- (9)
Unit Cost of Product =
Total No. of Units produced (IV. Marketing Plan (6)
Ratios related to Income Statement
Ratio
Return on Investment or ROI %
=

Gross Profit ratio/ Margin

Ref.
Net Profit

X 100
Total Investment (VII. Financial Plan- 4)

Gross Profit

Net Sales

Earnings before interest and taxes (EBIT)

Net Sales

Operating Profit Ratio

Net Profit Ratio/ Margin

=

Interest Coverage Ratio

=

Result

Earnings after taxes (EAT)

Net Sales

Earnings before interest & taxes

Interest

Break-Even Point
Description
Break-Even Point
=
=

Ref.
FC

(S-v)
Total Fixed Cost in first year (FC)

Total Variable Cost in first year (VC)

Unit Price of Product (S) -

Result

[Type the document title]

Total production in first year (P)

Balance Sheet related Ratios

Ratio
Acid-Test/ Quick Ratio
=

Ref.
Quick assets

Current Liabilities

Current Ratio

Current Assets

Current Liabilities

Net Working Capital

Total Current Assets

=

Total Current Liabilities

Total Debt (long term debt + current

liabilities)

Equity

Total Liabilities

Net worth

Net Profit after tax

Total asset

Debt Equity Ratio

Leverage Ratio or Debt/

Worth Ratio
Return on asset (RoA)

Result

[Type the document title]

Internal Rate of Return (IRR)

Determination of Internal Rate of Return using Discount Cash Flow (DCF) method:
1. Determine the Fake Pay Back Period of the proposed investment (project cost)
Pay Back Period = Project Cost / Annual Cash Inflow
2. Find out 2 discount rates closer to Fake Pay Back Period from Table- A4 (One bigger and one
smaller than that)
3. Find out Present Value (PV) of 2 discount rates
PV = Cash Inflow X Discount rate
4.

Find out 2 Net Present Value (NPV)

NPV = PV - Project Cost

5. Determine Internal Rate of Return by interpolation

Internal Rate of Return (IRR) = A + [C/C-D] (B-A)
where, A = Lower discount rate
B= Higher discount rate
C= NPV at lower discount rate
D= NPV at higher discount rate
Alternative Method:
Internal Rate of Return could be determined by using IRR formula of Microsoft Excel.

[Type the document title]