Executive Summary

Koko Quality Garri Processing Ventures is a business that has been registered
under the Corporate Affairs Commission (CAC) and also legally licensed by the
National Agency for Food Drug Administration and Control (NAFDAC) here in
Ogun State. We have also acquired the necessary licenses needed to run a plant
without running afoul of the law here in Ogun State.

Our aim of starting this business is to ensure that our clients both domestic and
international get processed garri of the finest quality. We intend to process for
sale white garri (Ijebu and normal) and yellow garri so as to be able to cater to
our teeming customers.

We know how vital it is to be located in a place that is convenient for both our
customers and employees. Our garri processing plant is therefore located at No.
20 Awolowo Street, a conspicuous area and close to the road, which makes the
location very strategic for our suppliers and distributors as well as our
customers. This fact alone we know is enough to make us become the leading
brand that we hope to become in the industry.

Due to our desire to attain and retain the leadership position amongst our peers
in the industry, we intend to pursue excellence both in the processing and
delivery of our processed garri to customers. Due to this fact we intend to hire
and train only the best employees who will be able to deliver our vision and
communicate our brand to our existing and potential customers.

We also know how valuable our customers are to us and so we intend to treat
them right by offering them excellent customer service of a standard never seen
before in this industry. Our clients will be able to reach us physically and even
online as we will be available through all avenues to be able to attend to their
inquiries, orders, suggestions and complaints. Our telephone number and email
address are: 08038244910 and kkogarionline@gmail.com.
Koko Quality Garri Processing Venture is owned and managed by:

1. Name: MADUABUCHI CHIKA

Function: Managing Director.
Relevant Qualification: B.SC in Agro Economics from the University
of Harvard and is presently running an MBA from the University of
oxford.
Address: Plot 10 Obioma Street, sunlight estate, Rivers state.
2. Name: JOB VICTOR
Function: Admin Manager.
Relevant Qualification: B.SC in Business management from the
University of Nigeria, Nsukka.
Address: No. 6 Avilla Avenue, Badagry, Lagos.
3. Name: KALU UMUNNA IFEANYI
Function: Marketing and sales executive
Relevant Qualification: BA in Banking and finance UNEC.
Address: No. 14 university road.

And other technical staff carrying out non administrative functions.

Our Garri production company seeks to create about fifty (50) job opportunities
for the overpopulated workforce of Ogun state. Our introductory financial
details can be summarized below:

1. Start- up capital
(a) Investment (Equipment, machinery and others) = N3,320,000
(b) Working Capital = N1,088,300
Total = N4, 408,300
2. Source of Capital
(a) Owners capital = N3,000,000
(b) Donations/grants = None
 (c) Bank loan = N1,408,000
Total = N4, 408,300
3. Profitability
(a) Year 1 = N4,250,380
(b) Year 2 = N10,960,890
(c) Year 3 = N19,550,860
4. Level of liquidity
(a) Year 1 = N4,980,550
(b) Year 2 = N12,350,690
(c) Year 3 = N21,960,180
 CHAPTER TWO

2.1 BACKGROUND OF THE COMPANY

Cassava, the raw material used to make garri is a source of food to nearly three
quarter of the world population. The crop is regarded as a staple diet in most
developing countries in the world, and is ranked the third after rice and maize.
Cassava is popular because it can grow even the poorest conditions (poor soil
and inadequate rainfall).

Nigeria is the largest producer of Cassava in Africa; producing over 41 million

metric tons per annum, followed closely by the Democratic Republic of Congo.
Most Cassava used in Nigeria are grown in the Southern parts of the country
(South West, South- south, and South East) and in the Middle Belt and are
mostly used to meet domestic demands within the country. Globally however,
Thailand is the largest producer of this crop as they produce and export cassava
products worth over $20 billion annually.

This therefore makes Garri one of the major products from processed cassava
the staple food for almost all Nigerians, as about 75% of Cassava is processed
into Garri. According to statistics, about 130 million people both in rural and
urban areas consume 12 million tons of garri annually.

This is the reason why most entrepreneurs are going into the garri processing
business especially as this product is recession proof. The recent economic
downturn in the country has seen more and more people turning to Garri.

According to reports, any entrepreneur going into this business will make
immense profit, as the reports show that demand for this product is not only
stable but increasing even though there are few close alternatives to Garri. Garri
can be consumed in two ways the cold process and the hot process, and while
there is no substitute for the garri consumed via the cold process method, the
few substitutes available for garri taken during the hot process are expensive,
which leaves consumers with no alternative than to stick to garri.

Also, another factor in favor of the garri demand is the growth the population
which has pushed the demand for garri and has also caused more garri
processing businesses to crop up to be able to meet the growing demand.

2.2 VISION STATEMENT

Our vision is to be the preferable garri for customers in Ijebu, Ogun and the
whole of Nigeria as well.

2.3 MISSION STATEMENT

Our mission is to ensure we process garri of the highest quality using the best
machines and resources. We also intend to ensure that our processed garri does
not only meet the needs of our household clients but become a profitable
business for our partners and distributors.

2.4 THE COMPANY

The company is a combination of five persons registered with the name KOKO
Quality Garri Processing Ventures. Currently, the companys products have been
registered with NAFDAC. It is a new business created to serve the south
western of Nigeria by exploiting the need for the supply of quality Garri.

2.5 PRODUCTS/SERVICES OFFERED

Koko Quality Garri Ventures is a business that has been licensed by the
National Agency for Food Drug Administration and Control to process garri
that will be used in households as well as in commercial places. We have also
registered with the Corporate Affairs Commission and have fulfilled all other
necessary obligations that will enable us make profit and grow as a business.
 Some of the products and services we intend to indulge in as a business
includes;

White garri (Ijebu and normal)

Yellow garri
Consultancy Services
Training and Coaching

2.6 LEGAL FORM AND OWNERSHIP OF THE ENTERPRISE

The main promoters of the Business enterprise are:

1. Maduabuchi Chika

2. Job Victor

3. Umunna Kalu Ifeanyi

Knowing how our vision is to be the most preferable Garri for our customers,
we have decided to ensure that we draft a business structure that will allow us
not only achieve all our intended goals and objectives but also enable us build a
solid business foundation as well.

One of our top priorities is to ensure that we hire the best professional hands
that have the required necessary experience, are dedicated and that will ensure
that the business runs smoothly. We intend to ensure that our employees get the
best training obtainable in this industry and also have welfare packages that will
place our companies as one of the best places to work in.

We also intend to provide excellent customer service by hiring those with the
experience of handling customer orders and complaints efficiently. We know
how important it is to get the right fit for this task as they will be
communicating and representing the brand to our various customers.
 Those we intend to employ to handle various tasks with assigned roles and
responsibilities for the growth of Koko Quality Garri Ventures include;

Managing Director
Admin Manager
Marketing and Sales Executive
Purchasing Manager
Accountant/Cashier
Store Manager
Front Desk Officer
Security Guard
Cleaner
Van Driver
Roles and Responsibilities

Managing Director

Makes strategic decision on behalf of the company and ensure its

implementation
Represents the company especially in areas of contracts and negotiation with
high level clients
Controls overall resources and expenditures
Ensure that the business is financially secured
Admin Manager

See to the day-to-day running of the business

Handles the sourcing and recruitment of able hands to run the business
Communicates the vision and corporate culture of the business to employees
Sees to the welfare and promotion of employees
 Marketing and Sales Executive

Create a workable marketing strategy and plan for Koko Garri business
Develop a workable budget in collaboration with the Managing Director and
Accountant
Responsible for using conventional and non-conventional means to attract
clients
Carry out market research so as to have a better understanding of the target
market
Purchasing Manager

Sources for reliable vendors and suppliers for the business

Prepare purchase orders and requisitions on behalf of the company to
suppliers and vendors
Maintain accurate report of goods ordered for and those received
Develop a workable budget for the purchasing department in collaboration
with the Managing Director and Accountant
Accountant/Cashier

Carry out a thorough analysis of the income and expenditure of the business
Works with the Managing Director to prepare a workable budget for the
business
Resolve discrepancies that have occurred by reconciling bank statement with
cash statement
Work with the purchasing manager and offer advices and suggestions where
necessary
Store Manager

In charge of store and inventory by keeping an accurate logbook detailing

stock levels
 Ensures that the store is conducive and well maintained
Ensures that the racks and shelves are stocked properly so that products do not
fall off unnecessarily
Ensures that the store is well secured to prevent theft
Front Desk Officer

Promptly answers phone calls of customers either for orders or inquiries

Responsible for scheduling necessary appointments
Ensures that guests sign in and out so as to verify their identity
Acts as a liaison between management staffs and clients
Security Guard

Responsible for securing the premises and properties of Koko quality garri
processing venture
Prevent any security related incident from occurring especially within official
premises
Report any suspicious activity to the relevant department
Be alert at all times especially at entry and exit points within the premises
Cleaner

Ensure that the premises is kept clean at all times

Ensure that the restrooms are clean for staff and customers
Replenish restroom with necessary facilities
Report broken or spoilt facilities to management
Van Driver

Ensure that the products are transported and delivered to its proper destination
Keep detailed records by maintaining a log book recording distance travelled
and fuel consumed
 Ensure that van is in good shape to take the journey
Carry out regular maintenance and light repairs on the delivery van.
2.7 LOCATION OF THE BUSINESS
The Business will be located in Ogun state as earlier discussed.
2.8 INDUSTRY TREND AND ANALYSIS
KOKO Quality Garri processing ventures focuses in the production of garri. Its
major competitor could be semovita or wheat but its advantage would be due to
its lower cost and accessibility.
2.9 BUSINESS STRATEGY
KOKO Quality Garri processing ventures main marketing focus will be an eye
catching sign, warm service affordable home delivery and periodic printed
advertisements. Efforts will be made to ensure that the products are price
competitive and available into most major markets.
2.10 KEY SUCCESS FACTORS
Some of the key success factors derived from the business are:
1. Hygienic production environment
2. Addition of Nutritional supplements example Vitamin A
3. Attractive packaging in various sizes to meet various demand levels.
4. Price competitive.

CHAPTER THREE
THE MARKET
3.10 Nature, Location, Size, and attribute analysis
Garri is one of Nigerias staple diets and is taken in every home. If you intend
starting your own garri processing business, then you will need a land where
you will not only install your facility, but it must also be near as possible to
your source of raw materials which for this instance is the cassava farm.
 This will help decrease the costs that will be spent on transporting your
necessary raw materials from a very far location. Also, you would need to
ensure that your facility is hygienic as well as conducive enough for your
employees as well as the clients that would want to visit for business purposes.

A trend in the business is having several storage facilities in strategic locations

all around Ogun State and Nigeria in general; this is so as to be close to
customers, increase awareness about the brand and also increase patronage for
the business, thereby boosting revenue.

Our Target Market

The target market for Garri is very huge as almost every home and everyone
takes this product. However, more people are likely to take one colour of Garri
than the other depending on their location. We intend to carry out a thorough
market survey that will allow us determine the quantity that would be needed to
be processed for each colour of Garri.

Even though almost everyone takes Garri in one form or the other, we are still
required to market our product so as to become a preferable brand to our
customers, either existing or potential. Our target market includes; households,
schools, restaurants, hotels, caterers, students, single males and females.

Our Competitive Advantage

Every business that is established with the intention of making profit and
intends to compete favourably with others in the industry knows that it needs to
draft competitive advantage strategies that will enable it to have an upper hand
over other businesses in the same industry. Having a competitive advantage
means knowing what aspects of our business are our strengths and would give
us the needed advantage we would need.

One of our major competitive advantages is in our hiring or the best

professionals in the industry who understands the garri processing business and
has keyed into our vision of becoming the best in the agro processing industry.
Our professionals will work in the best environment and have enviable welfare
packages.

Also, we intend to constantly train our professionals so that their skills can be
enhanced which will invariably lead to higher productivity that will be
beneficial to the company in the long run. Our excellent customer service is one
of our primary strength that will ensure we have competitive advantage over our
competitors. It is a well-known fact that most Nigerian businesses do not invest
in their customer service.

However, we at Koko quality garri processing ventures know that a good

customer service will increase the retention rate for our company by over 80%.
Our customer service executives are the best in the field and have a vast
knowledge of garri and so will be able to inform customers, attend to requests,
orders and complaints promptly and efficiently.

We intend to participate in community programs and school events as a way of

getting close to our customers. We know that once customers identify with our
efforts at integrating into the community through social participations, then
patronage towards our business will increase.

Lastly, we intend to effectively deploy the use of the internet by using our
websites and social media platforms to give customers tips and engage our
customers in discourse that will further better our industry and even our
customers as well.

3.2 SALES AND MARKET SHARE ANALYSIS

While Garri might be a staple diet taken by almost everyone, we are however
aware of the fact that everyone cannot buy from one source, this does not mean
that there arent Garri processing businesses that have a large share of the
 market than others. These businesses have certain factors going for them, chief
of which is location. We therefore after having carried out various feasibility
studies, have seen that our location is favourably suited to increase our sales.

Another factor in our favour is the fact that most Garri processing businesses in
Ogun State and around process only white Garri (Ijebu and normal) which
limits them to just certain segments of the market. However, our additional
product (yellow Garri) is guaranteed to not only enlarge our revenue base but
also ensure we make enough profit to run our business without external
injection of funds in the first three months.

Our sales forecast was carried out critically by a reputable business consultant
that was hired for this purpose. The sales forecast is based on information
gathered from other already established business and start-ups both in the garri
processing industry in Ijebu, Ogun State.

Based on location, the sales projection for Koko Quality Garri Processing
Ventures is stated below:

First Fiscal Year-: N5,500,000

Second Fiscal Year-: N9,000,000
Third Fiscal Year-: N16, 000,000
N.B: The above sales projection is totally in line with what is obtainable in the
industry. The projections are also based on the fact that all factors that were
considered during the analysis remain constant such as the economy, lack of
strong substitutes, and the arrival of no major competitors. Also, it is worthy to
note that at any given point in time, the above projections might be higher or
lower.

3.3 KEY COMPETITORS AND COMPETITIVE ADVANTAGE

(a) INDIRECT COMPETITION

Business Type Competition Type Strengths Weaknesses

Semovita Indirect Everywhere and Not Structured

competition Cheap

Fufu Indirect Everywhere and Not Structured

competition Cheap

Wheat Indirect Everywhere and Not Structured

competition Cheap

(b)DIRECT COMPETITION

Competitor Strengths Weaknesses Other Attributes

Delight Garri Multiple Goods No core market Good quality

ventures

Goldbit Garri Multiple Goods No core market Average quality

Farms

Common Market Multiple Goods No core market Good quality

(c)COMPETITIVE POSITIONS AND SPECIFIC ADVANTAGE

Rank Competitor Strengths Weaknesses Your edge

over
competitor

1 Delight Garri Multiple No core market We offer a

ventures Goods and higher
already nutritional
established value
2 Goldbit Garri Multiple No core Market Our product is
Farms Goods and price
already competitive
established

3 Common Multiple No core market Our product

Market Goods and has better
already quality.
established

3.3 SWOT ANALYSIS

(A)STRENGTHS
Our location in Ijebu, Ogun State is one of our greatest strengths as it
means we are close to mega cities like Lagos State which is a thriving
market, as well as other important states. While most garri processing
businesses focus on producing only Ijebu garri or plain white garri, we
are going a step further to ensure we produce yellow garri as well, this
action alone has attracted more customers to our business and give us
leverage over our competitors in the same industry.

Also, in addition to our products, we offer training and consultancy

services for small scale start-ups. Our other strengths lie in the fact that
we have employed the best hands in the industry, who not only
understand the garri business perfectly but also understand our vision and
working towards it as well.

(B) WEAKNESSES
Our perceived weakness stems from the fact that we are operating in just one
location which will seriously limit our vision of supplying to our target markets
all over Nigeria. However, we are determined not to see this as a business, as
we intend to expand as soon as we have begun making profit and are stable
enough.
(C) OPPORTUNITIES
Due to the fact that we are amongst the first garri processing businesses to offer
more than white garri, this has cemented our role in front and has led to many
start-ups requiring trainings from us, which will help boost our revenue base,
especially as most of them are not close competitors. This has also led us to
consider the benefits franchising might bring to us in the near future, should we
continue getting requests such as these.
(D) THREATS
Our threats are not really that significant, as there are really no government
policies or economic downturn to worry about, but like every business, we take
all threats seriously, and intend to act proactively to reduce or eliminate the
threat. The threat facing our business will be from having a strong competitor
operating same products from around the same location.
3.4 DEMAND AND SUPPLY ANALYSIS

DETAIL SIZE(NUMBER)

Potential demand to be served 15,000 kg

Less 30% existing competitors 4,500 kg

Available market(in the absence of expansion of existing 10,500 kg

competitors and entrance of new ones)

Less 10% due to possible expansion of existing 1,050 kg

competitors and entrant of new ones

Available market 9,450 kg

Less 5% due to error in estimation 472.5 kg

Available demand/ qualified market/ demand supply gap 8,977.5 kg

Initial installed capacity cat most 60% of available 4,000kg

demand (served market)

CHAPTER 4
4.11 MARKET SEGMENTATION
(A) The general public that desires a healthy nutritious garri product.
(B) The individuals who desire a better quality of our Garri products.
(C) University students around the area who largely depend on Garri
products for survival.
(D)Fast foods, Restaurants and Hotels.
4.12 TARGET MARKET
(A) Koko Quality Garri Processing Ventures will sell her products to new
and repeat customers from its storefront at Awolowo Street close to the
Okorodu market in Ogun state.
(B) Koko Quality Garri Processing Ventures will be truly unique in the
market place.
(C) Middlemen/wholesalers and retailers dealing on Garri products.
(D)Hotels and Restaurants.
4.13 DESCRIPTION OF THE EDGE OF PRODUCT OR PRODUCT
RANGE OF SERVICE

Product/service 1 2

Denomination/product Koko Quality Garri Koko Quality Garri

line Processing Ventures Processing Ventures
Yellow Garri White Garri
 Specification(i.e. size, 100 kg nourished 50 kg nourished white
colour and quality) Yellow colour colour.

Packaging To be contained in To be contained in

neatly packaged Sacks. neatly packaged Sacks.

After sales service Transfer and expert Consultancy services

advice.

4.13 Marketing Strategy and Sales Strategy

Marketing is a very important aspect of any business, for without marketing a
business can fail. Marketing has a double advantage as it not only generates
revenue for the company but also ensures that awareness is created for the
company directly or indirectly. It is therefore important that marketing
strategies be drafted before a business becomes operational.

During the course of running the business, these strategies would need to be
constantly monitored and reviewed, with the less effective strategies being
dropped or modified by the Managing Director in collaboration with the
marketing and sales team for the growth of the business.

At Koko Quality Garri Ventures, we intend to ensure that we adopt several

marketing strategies towards ensuring that our existing customers are aware of
our drive towards success. Also, our sales strategies will be done in such a way
as to ensure we penetrate the market, therefore creating a wider reach.

To achieve this, we intend to ensure that we develop just the right strategies that
will not only keep our loyal customers glued to us but also attract new
customers as well. Some of the marketing sales strategies that we intend to use
are:
 Place adverts in local newspapers as well as in local radio stations about our
garri
Visit markets and introduce Koko quality garri to garri traders (wholesalers
and retailers)
Throw a unique opening launch party that will attract interest
Use our official website to vigorously promote our garri processing business
Empower our marketing and sales team to positively push and better
communicate our brand to customers
Create unique and engaging handbills and distribute them in strategic
locations
Engage in one on one marketing
Encourage our loyal customers to refer us to others
Mae use of our social media platforms to promote our products and services.

4.14 MARKETING PLAN PRICE

PRODUCT/SERVICE Koko Quality Garri Koko Quality Garri

Processing Ventures Processing Ventures
YELLOW GARRI WHITE GARRI

How much are customers Mean price= N10,000 Mean price = N10,000
willing to pay?
 Competitors price Mean price = N9,850 Mean price= N7,500

My price N8,000/50 kg bag N7,500/50 kg bag

Reasons for setting my price To be price To be price

competitive, but competitive, but
remain profitable, to remain profitable, to
sell cheap at high sell cheap at high
volumes, thereby volumes, thereby
drawing customers. drawing customers.

Margin for discount NO NO

4.15 MARKET POSITIONING STRATEGY

KOKO quality garri production enterprise also actively encourages customer
satisfaction our product line reacts to the needs and desires of our dear
customers, thereby encouraging repeat and word of mouth sales. Our product
has a price competitive strategy and the market is located at one of the
strategic points in Ogun state.
4.16 MARKETING MIX IMPLEMENTATION
Our Business enterprise proposes to make use of the following mix
implementation targets:
(A)Expert advice
(B) Competitive pricing
(C) Personal selling
(D)Periodic printed advertisements
(E) Mechanized selling.

4.16 CHANNELS OF DISTRIBUTION

We plan to reach our customers through the following means:
 (A)Individuals
(B) Retailers
(C) Wholesalers
We chose this system of distribution in order to harness a greater outreaching
market.
4.17 START-UP PROMOTION
These are the planned actions to inform customers about the opening of thr new
business that is posters, fliers, advertisements, radio and Tele broadcasts,
opening ceremony, church announcements, etc. however, KOKO Quality Garri
Production Enterprise would utilize the following promotional activities:
(A)The company will sample her products liberally.
(B) Road show in all major markets in Ogun state.
(C) Sales promotion through Raffle draws.
(D)Advertisement which would utilize the following media: TV, Radio and
flyers (Printed media).
(E) Using social media platforms such as Facebook to promote our products
and services as well as engage our audience
(F) Sponsoring school and community relevant activities
(G)Create a unique logo and slogan that can be easily remembered by
existing and even potential clients
(H)Using our van in road shows to tell people in targeted areas about our
products and services
(I) Ensure that all our staff wear customized tee shirts that will allow
customers know of our business.

4.18 ALLIANCES
KOKO Quality Garri Production Enterprise seeks to join association like: the
Hospitality Industries Union and the National Association of Garri
 producing Companies (NAGPC). It is believed that joining such
associations/Inions would help in creating a platform that would aid sales
like gaining more clients, customers, shareholders , business associates,
suppliers, work force, technical market knowledge skills and business
guidance.

4.19 MARKETING CALENDAR AND BUDGET

Date Marketing Plan Evaluation Personnel Estimated

Activity Index Involved Costs (N)

Start: Sept. 2017 Road shows in Presence of outscored 180,000

End: Sept. 2017 major markets flyers in major
markets

Start: Sept. 2017 Advertisement in 2 times Radio Outscored 80,000

End: Oct. 2017 Radio and Tv and Tv
Announcements.

Start: Nov. 2017 Sales promotion Everyday entries outscored 40,000

End: Jan. 2016 throw rattle. for 1 month
entries

Start: Jan. 2016 Sampling of Once a week for Outscored 20,000

End: Feb. 2016 product liberally one month

PART IV: TECHNICAL ANALYSIS

5.00 Production plan:
5.11 The project:
The product being produced as mentioned earlier is Garri. It is a medium scale
business and is quite intensive and labour intensive as well. It is highly
nutritious starchy product that is derived from the processing of Cassava tubers
with addition of other vital supplements such as Vitamin A. The processed
Garri product is made available to customers by means of a delivery van, each
weighing at least 50 kg/bag and sold at an average price of N10,000.
5.12 PRODUCTION PROCESS
The following basic steps are to be followed in the production chain:
Cassava are washed and pealed
Pealed cassava are then chopped or grated
Grated cassava are then allowed to ferment for period depending on the
type of Garri being produced .Oil is added at this stage for the production of
Yellow Garri.
The fermented cassava are pressed to dry form
The dry form are fried to Garri
The fried Garri goes through sieving and dry grinding to obtain
a fine level of coarseness.
The product is packed and ready to be delivered.
5.13 THE PRODUCTION FLOW CHART
5.14 THE PRODUCTION SCHEDULE

Projected production schedule

Targeted output Raw Raw Raw Raw ----- --- Raw
input1 input2 input3 input4 input n
1 Jan. 20,000 16,000 3,200 600 200
2 Feb. 20,000 16,000 3,200 600 200
3 Mar. 20,000 16,000 3,200 600 200
4 Apr. 20,000 16,000 3,200 600 200
5 May. 20,000 16,000 3,200 600 200
6 Jun. 20,000 16,000 3,200 600 200
7 Jul. 20,000 16,000 3,200 600 200
8 Aug. 20,000 16,000 3,200 600 200
9 Sept. 20,000 16,000 3,200 600 200
10 Oct. 20,000 16,000 3,200 600 200
11 Nov. 20,000 16,000 3,200 600 200
12 Dec. 20,000 16,000 3,200 600 200
Yr 1
1 Jan. 38,000 30,500 6,080 1,040 380
2 Feb. 38,000 30,500 6,080 1,040 380
3 Mar. 38,000 30,500 6,080 1,040 380
4 Apr. 38,000 30,500 6,080 1,040 380
5 May 38,000 30,500 6,080 1,040 380
 6 Jun. 38,000 30,500 6,080 1,040 380
7 Jul. 38,000 30,500 6,080 1,040 380
8 Aug. 38,000 30,500 6,080 1,040 380
9 Sept. 38,000 30,500 6,080 1,040 380
10 Oct. 38,000 30,500 6,080 1,040 380
11 Nov. 38,000 30,500 6,080 1,040 380
12 Dec. 38,000 30,500 6,080 1,040 380
Yr 2
1 Jan. 40,000 3,200 6,400 1,200 400
2 Feb. 40,000 3,200 6,400 1,200 400
3 Mar. 40,000 3,200 6,400 1,200 400
4 Apr. 40,000 3,200 6,400 1,200 400
5 May 40,000 3,200 6,400 1,200 400
6 Jun. 40,000 3,200 6,400 1,200 400
7 Jul. 40,000 3,200 6,400 1,200 400
8 Aug. 40,000 3,200 6,400 1,200 400
9 Sept. 40,000 3,200 6,400 1,200 400
10 Oct. 40,000 3,200 6,400 1,200 400
11 Nov. 40,000 3,200 6,400 1,200 400
12 Dec. 40,000 3,200 6,400 1,200 400
Yr 3

5.15 MACHINERY, EQUIPMENT AND OTHER REQUIREMENTS.

S/N Investment (equipment and others) Qty Life span Other

comments

Cassava peeling machine 1 20 yrs

Stainless Steel Hammer Mill with 1 30 yrs

electric Motor

Fermentation Rack/Mechanical 4 45 yrs

Press with hydraulic Jack

Garri Frying Unit with gear motor, 2 10 yrs

granulator) 1 15 yrs
5.16 TECHNOLOGY:
The heart of this modern Garri processing plant is the Roasting or frying pot
which is made from stainless steel and insulated with fibre glass. This absorbs
heat from the fire.
It's high-powered by 2HP gear motor that rotates the paddles that unceasingly flip
the frying garri mash. The value of the plant is N5 million (Five Million Naira).
It is rugged, resilient and fabricated from stainless steel tosatisfy each SON and
NAFDAC requirements. It reduces labour and stress that are the bane of native
garri production. The garri has a moisture content of 10 percent, sand of less than
1 percent and hydrocyanic acid of less than 10 percent. The shelf life is over six
months, and garri is hygienic and free of microbial contamination and
infestations.

5.17 QUALITY ASSURANCE AND STANDARDIZATION.

KOKO Garri Production Enterprise aims to ensure quality by:
1. Regular sanitation to maintain and hygienic and health working environment.
2. Mechanized production process to avoid much contact with human hand.
3. Good packaging to preserve the product from contact with germs.
4. Addition of nutritional supplements like Vitamin A to enhance its nutritional
value.
CHAPTER SIX
6.10MANAGERIAL AND ORGANISATION STRUCTURE.
MADUABUCHI CHIKA: Managing Director
JOB VICTOR CHUKWUEBUKA: Admin Manager
UMUNNA KALU IFEANYI: Marketing and Sales Executive
Purchasing Manager
Accountant/Cashier
 Store Manager
Front Desk Officer
Security Guard
Cleaner
Van Driver.
6.12 MANAGEMENT TEAM
The key members of the company and their relevant positions are:
1. Name: MADUABUCHI CHIKA
Function: Managing Director.
Relevant Qualification: B.SC in Agro Economics from the University
of Harvard and is presently running an MBA from the University of
oxford.
Address: Plot 10 Obioma Street, sunlight estate, Rivers state.
2. Name: JOB VICTOR
Function: Admin Manager.
Relevant Qualification: B.SC in Business management from the
University of Nigeria, Nsukka.
Address: No. 6 Avilla Avenue, Badagry, Lagos.
3. Name: KALU UMUNNA IFEANYI
Function: Marketing and sales executive
Relevant Qualification: BA in Banking and finance UNEC.
Address: No. 14 university road.

6.13 ORGANIZATIONAL CHARACTERISTICS

 S/N POSITION NO OF STAFF SALARY TOTAL
PER STAFF ANNUAL
PER SALARY
MONTH

1 Managing Director 1 100,000.00 1200,000.00

2 Admin Manager 1 80,000.00 960,000.00

3 Marketing and Sales 1 80,000.00 960,000.00

Executive

4 Purchasing Manager 1 80,000.00 960,000.00

5 Accountant/Cashier 1 50,000.00 600,000.00

6 Store Manager 1 30,000.00 360,000.00

7 Front Desk Officer 1 20,000.00 240,000.00

8 Security Guard 1 15,000.00 000,000.00

9 Cleaner 2 10,000.00 120,000.00

10 Van Driver 2 10,000.00 120,000.00

TOTAL 1,701,600

6.15 EXTERNAL SUPPORT (OUT SCORING)

The capacity of the managing crew and the managing crew and the organization
as a body might not be adequate to handle all manner of tasks associated with
the organization. In this instance, the organization may need to outscore certain
roles or task.

6.16 RGANIZATIONS VALUES AND NORMS

 KOKO Quality Garri Production Enterprise core values are as follows:
(A)To carry out business on the best ethical standards.
(B) To show highest level of integrity and honesty
(C) To maintain quality at all times
(D)To maximise satisfaction of the customers.

CHAPTER SEVEN
7.10 LEGAL, REGULATORY, SOCIAL AND ENVIROMENTAL ISSUES
KOKO Quality Garri Processing Ventures is a business that has been registered
under the Corporate Affairs Commission (CAC) and also legally licensed by the
National Agency for Food Drug Administration and Control (NAFDAC) here in
Ogun State. We have also acquired the necessary licenses needed to run a plant
without running afoul of the law here in Ogun State.
KOKO Quality Garri Processing Ventures is a business that has been licensed by
the National Agency for Food Drug Administration and Control to process Garri
that will be used in households as well as in commercial places. We have also
registered with the research and development centre (RMRDC) and have fulfilled
all other necessary obligations that will enable us make profit and grow as a
business.
7.11ENVIROMENTAL ISSUES
Some of the products and services we intend to indulge in as a business
includes;

White garri
Yellow garri
Consultancy Services
Training and Coaching
 The by product from our product include are of no consequential effect on the
environment and all waste product would be properly managed within the
company.

CHAPTER EIGHT

8.0 FINANCIALS

8.11 What are the Equipment, Machinery and others needed to Produce the
Products/Services

This Plant makes uses of a fully mechanized processing method that brings
efficiency and reduces waste and labour requirement. The start-up capital
excluding Land and infrastructure is between 4million Naira and 7 Million
Naira. However to achieve reduction on setup cost the scale can be reduced or
some of the process like peeling can be manually done, but this would require
more labour hands.

The project will generate profit beginning from the first year of operation.
Relevant ratios such as the percentage of net profit to total sales return on equity
and return on total investment shows a promising returns.
S/N Investment (equipment and others) Qty UNIT TOTAL
COST (N) COST (N)

Cassava peeling machine 1 180,000.00 180,000.00

Stainless Steel Hammer Mill with 1 200,000.00 200,000.00

electric Motor

Fermentation Rack/Mechanical 4 100,000.00 400,000.00

Press with hydraulic Jack

Garri Frying Unit with gear motor, 2 120,000.00 240,000.00

granulator) 1 200,000.00 200,000.00

Total Investment 1,220,000.00

8.12 SALES PLAN

Year 1 Year 2 Year 3

Product/service KOKO Quality KOKO Quality KOKO Quality

Garri Production Garri Production Garri Production
Enterprise Enterprise Enterprise

Product/Service 20,000 kg 29,000 kg 32,000 kg

Quantity
(Volume)

Price per unit (N) 25 29 32

Sales (N) 15,600,000 22,620,000 24,900,000

8.13 COST PLAN

Year 1 Year 2 Year 3

Product/service KOKO Quality KOKO Quality KOKO Quality

Garri Production Garri Production Garri Production
Enterprise Enterprise Enterprise

Product/Service 11,250 kg 15,000 kg 19,000 kg

Quantity
(Volume)

Price per unit (N) 220 225 230

Sales (N) 24,75,000 3,375,000 4,370,000

8.14(A) LOCAL RAW MATERIALS AND OTHER INPUTS

Items Unit Cost(N) Quantity Required/Annum

Current(Existing) Proposed(After
Expansion)

A Cassava 100/kg 16,000 40,000

Tubers

B Water 50/kg 600 1,200

C Oil 10/kg 3,200 6,400

B. SOURCES OF RAW MATERIALS

Items Source

Cassava Ikorodu Agro products enterprise, Lagos

Tubers

Water Our Shield Water Resources, Ogun state

Oil MEGA supermarkets, Ogun state

For now, some contracted arrangement has been made towards the procurement
of the raw material.

8.15GENERAL COST OF ADMINISTRATION

Fees for incorporation and other legal requirements N100,000

Obtaining of licenses and permits as well as accounting software
N150,000
Insurance coverage (general liability, property insurance and workers
compensation) N50,000
Facility rent for a year and renovation N350,000
Operational cost for at least three months (employees salary, bills
payments) N250,000
Cost of purchasing and installing Garri processing equipment
N2,400,000
Cost for start-up inventory (Cassava) N800,000
Cost of storage facilities (racks, ventilation) N100,000
Cost of hiring business consultant N50,000
 Cost of fairly used distribution van N820,000
Other start-up expenses (furniture, phone, computer, printers,
stationeries) N200,000
Marketing budget (for promoting launch activities and the business
generally for at least a year) N150,000
Cost of launching a website N30,000
Miscellaneous N50,000

8.16 PRELIMINARY AND PRE-OPERATING EXPENSES (FOR NEW

PROJECTS ONLY)
Item Amount (N)
A Company incorporation 100,000
B Increase in Authorised Share Nil
Capital
C Travelling Expenses 20,000
D Preparation of Business plan/F.S 15,000
E Others (please specify) Nil
Total 135,000

8.17 WORKING CAPITAL PROJECTION (TO COVER THE

GESTATION PERIOD)

1. The conversion rate of tubers to processed Garri is 4 Tonnes of cassava

tubers to 1 tonne of Garri.
2. That 1 tonne of cassava tuber delivered to the plants is
N 5,000 per tonne.
3. The opposite prices of production aren't more than 50 % of the value of
cassava tuber .i.e. 50% of N 20, 0000 which is N 10,000.
4. The selling price of one 50kg bag of Garri is about N5, 000

- 2 Tonnes per day of 8 hrs.

- Cassava tubers (8 tons x N5, 000) 40,000
- Other costs of production (50%) 20,000
- Net profit per day 20,000
- Profit per year working six days
- Per week or 313 days in a year
(313 x N20, 000) N 6,260, 000

8.18START UP CAPITAL NEEDED

(a) Investment (Equipment, machinery and others) = N3,320,000

(b) Working Capital = N,888,300
(c) pre operational expenses = N200,000
Total = N4, 408,300

8.19FINANCIAL PLAN

(a) Owners capital = N3,000,000

(b) Donations/grants = None
(c) Bank loan = N1,408,000
Total = N4, 408,300

8.20 LOAN REPAYMENT AND INTEREST PAYMENT SCHEDULE

Year Loan/Loan Interest Annual Loan Loan Bal c/f

instalment Repayment
Bal B/d

A B C D E

A B = r(A) C(A value in D = C - B E=A-D

eqn 1)
0 1,500,000 N/A N/A N/A 1,500,000

1 1,500,000 225,000 656,965.44 431,965.44 1,068,034.56

2 1,086,034.56 160,205,18 656,965.44 496,760.26 571,274.3

Total 4,068,000 160,245,518 1,313,930.88 928,725.68 3,139,000

8.21 SCHEDULE OF DEPRECIATION

S/N Item of Initial Scrap Life Depreciation

Depreciation value Value Span

1 Cassava peeling 1,000,000 800,000 20 yrs 50,000

machine

2 Stainless Steel 40,000 35,000 30 yrs 4,000

Hammer Mill
with electric
Motor

3 Fermentation 1,500,000 1,200,000 45 yrs 65,000

Rack/Mechanical
Press with
hydraulic Jack
4 Garri Frying 500,000 5,000 10 yrs 500
Unit with gear
motor,

5 granulator) 200,000 2,000 15 yrs 390

Total Depreciation 119,890

8.23 Estimate of Profit and Loss Account for the first 3 years

Particulars Year1 Year2 Year3

Sales 15,600,000 22,620,000 24,960,000

Others

Net Sales 15,600,000 22,620,000 24,960,000

Less Expenses:

Cost of raw 2,475,000 33,750 4,370,000

materials

Salaries 800,000 999,800 1,690,920

Rent 150,000 200,000 220,000

Telephone 25,000 30,000 30,000

Electricity 70,000 70,000 70,000

Advertising 180,000 180,000 180,000

Entertainment

Insurance 50,000 51,000 51,000

Legal

Office supplies 50,000 50,000 50,000

Motor Vehicle 60,000 62,000 64,000

maintenance

Total Expenses 3,860,000 5,017,860 6,725,920

Profit before 10,136,400 34,862,300 44,892,400

Tax/int

Less interest 311,200 150,389 80,562

Profit After 9,627,250 30,360,900 36,692,900

interest

Less Tax 3,650,000 9,802,680 13,989,600

Profit After Tax 6,860,840 15,282,395 24,392,560

Less Depreciation 195,000 195,000 195,000

Net Profit 6,860,840 15,282,393 24,392,560

Appropriation Year1 Year2 Year3

Dividend
Retained
Earnings

8.24 Cashflow Projection

Year 1 Total (N) Year 2 Total (N) Year 3 Total(N)

Cash in

Bank Loan 1,408,000

Sales income 21,600,000 48,680,600 50,600,000

Other Income
(state)

Total Cash in 23,008,000 48,680,600 50,600,000

Cash out

Admin. 439,680 449,600 53,000

Outgoings

Marketing 140,000 141,000 141,000

Cost of Goods 7,800,600 16,000,890 18,000,000

Internet Expenses 211,200 150,000 80,435

Loan Repayment 400,000 400,000 508,000

Initial Investment 4,408,300 8,000,000 8,000,000

Salaries 4,560,000 8,000,000 8,000,000

Dividends 1,686,640 10,086,085 10,290,300

Other Payments

Total Cash Out 19,646,420 35,226,575 37,122,735

Net Cash Flow 3361580 13,454,025 13,422,265

Opening cash Bal Nil 7,242,550 10,678,936

Closing cash Bal 3,361,580 30,696,575 24,126,201

8.25 BLANCE SHEET

Balance Sheet Start Date Year End Year 2 Year 3

Assets
Year 0 i.e., Year 1

Fixed Assets:

Land, 3,320,000 3,320,000 3,320,000 3,320,000

Machinery
and others

Less cum. NIL 124,000 248,000 372,000

Dep.

Total Fixed 3,320,000 3,196,000 3,072,000 2,948,000

Assets (A)
Current
Assets:

Cash (use as 843,300 2,960,950 6,000,990 12,989,000

balancing
item)

Debtors NIL NIL 1,000,980 3,890,650

Stock 242,800 298,960 428,650 428,690

Total Current 1,088,300 3,259,810 7,430,620 17,308,340

Assets (B)

Total Assets 4,408,300 6,455,810 10,502,620 20,256,340

(C)

Liabilities

Current
Liabilities:

Creditors NIL 298,960 502,960 800,690

Accrued
expenses

Overdraft

Short term NIL 359,896,000 29,690 320,650

loan
Total current NIL 1,087,506 1,628,610 2,071,990
Liabilities (D)

Capital
Employed
(A-D)

Long Term
Liabilities:

Long Term
Loan

Others
(specify)

Total Long
term
liabilities (E)

Long + short NIL 1,087,516 1,628,610 2,071,990

Term Liab.
(F)

Shareholders
Equity(C-F)

Capital 3,000,300 3,000,300 3,000,300 3,000,300

(Shares)

Retained NIL 4,250,690 14,187,300 19,289,650

Profits
Total 3,000,300 7,250,990 17,187,600 22,289,950
shareholders
funds (G)

TOTAL 3,000,300 8,538,508 18,816,210 24,311,990

LIABILITIES
(F + G)

CHAPTER 10

10.10 RISK CONTINGENT ANALYSIS

S/N Risks Mitigants

1 Unexpected sudden Improvising by better

increase in price of raw packaging and
material increasing sales and
price

2 Inadequate start up Aggressive promotion

demand and advertising
campaigns

3 Unexpected adverse Appropriate Insurance

events Policy will be taken

4 High unexpected Use of trade secret to

entrance of many keep product
competition due to the formulation secret from
potential competitors.
Also continuous
 fact that the business is aggressive marketing
profitable. will be advisable

10.12 CONTINGENCY PLAN AND EXIT STRATEGY

The project promoters do not foresee a situation where it will fail. However, if
the scenario tend to fail, the business can easily be sold since the equipment can
easily be used for other things. Alternatively, the business can easily open other
lines of business and diversity.

CHAPTER 11

11.10 OTHER CONSIDERATIONS AND CONCLUSION

11.11ECONOMIC JUSTIFICATION

This project can deliver increased benefits like job creation, contribution to
GDP gross capital formation, gross domestic product particularly it will.

11.12 COMMERCIAL VIABILITY

The Project is very profitable as it will generate more than N24 million in profit
in the next three years. The liquidity position are above. Equally shareholders
net worth will form N1, 500,000.

11.13 CONCLUSIONAND RECOMMENDATIONS

In view of the technical feasibility and commercial viability of the project, it is

highly recommended for implementation and funding.