Feasibility report

Executive Summary:This business feasibility study report is all about an entrepreneur business. This business includes two main products BROWN SUGAR and NATURAL BROWN SUGAR.. This business is going to start its operations from Bahawalpur, and with the passage of time and business growth it will expand its operation in other major cities of Pakistan. Business is offering 2 types of products at initial level BROWN SUGAR and NATURAL BROWN SUGAR. Objective of this business is to provide healthiest natural sweet to people. Our brand objective is to add natural sweet taste in lives without being dangerous for health. Its main focus is the heart and diabetes patients who want healthy sugar food that doesnt increase insulin level in blood. Both above products are designed for those who want delicious taste with healthy food. It is designed on the ingredients which provide good taste and vitamins in their food. Every 10th person in Pakistan is heart patient and many people are diabetes patient. The product NATURAL BROWN SUGAR. is offered by considering all the health factors. NATURAL BROWN SUGAR. is for every person who is health conscious. Manufacturing plant of BROWN SUGAR and NATURAL BROWN SUGAR. proposed to set up near Chani Goth Bahawalpur. The proposed project site enjoys the benefits of easy availability of raw material, quick access to the markets of Pakistan as it is located near the Bahawalpur, source of power and electricity & transportation. The project will be equipped with most locally manufactured plant and machinery.

Introduction:This business includes two main products BROWN SUGAR and NATURAL BROWN SUGAR.. This business is going to start its operations from Bahawalpur, and with the passage of time and business growth it will expand its operation in other major cities of Pakistan. Organization is offering 2 types of products at initial level BROWN SUGAR and NATURAL BROWN SUGAR. Objective of this business is to provide healthiest natural sweet to people. White sugar which we consume has no brand we dont know from where it belongs. We believe in branding our products as natural sweet which take care of your health more than yourself. White sugar is not provided in any type of packing so we make available our brand in glorious packing so that our brand presentation looks more sophisticated and juicy. Our brand objective is to add natural sweet in lives by reducing its side effects which are

dangerous for health. Its main focus is the heart and diabetes patients who want healthy sugar food that doesnt increase insulin level in blood.

Feasibility report

Project idea:
This is the fact that average healthy age of people in Pakistan is decreasing (also age worldwide), why this is happening? This is because we are not so conscious about health, and most of product in our routine life contains such chemicals which are very harmful for us. So this idea came to mind that we should prepare such a product which not only satisfies the taste but fulfill minerals and vitamin requirement of our people.

What the product actually is and how it is prepared:Technology:Technology used to make NATURAL BROWN SUGAR. is very simple, just a low cost plant is needed to convert sugarcane juice to final product. We can use filters to add purification and quality to conversion process. We can associate many plants in order to raise production. Natural brown sugar or raw sugar is a brown sugar produced from the first crystallization of the sugar cane. Based upon weight, unrefined brown sugar from sugar cane, when fully refined, yields about 70% white sugar. There is more molasses in natural brown sugar, giving it a higher mineral content. Some natural brown sugars have particular names and characteristics, and are sold as Turbinado, Muscovado, or Demerara sugar. Turbinado and Demerara sugars are made by crystallizing raw sugar cane juice, then spinning it in a centrifuge to remove water and some impurities. Muscovado (also moscovado) is an unrefined, dark brown sugar that is produced without centrifuging and has much smaller crystals than turbinado sugar. The sugar cane extract is heated to thicken it and then panevaporated in the sun and pounded to yield an unprocessed, damp sugar that retains all of the natural minerals.

Why is it healthier?
Natural Brown Sugar is processed the natural waycompletely free from any harmful chemicals such as phosphoric acid, formic acid, sulfur dioxide, preservatives, or any flocculants, surfactants, bleaching agents or viscosity modifiers. Natural Brown Sugar has 11 calories/ 4 grams (1tsp). It is also nutritionally rich & retains all natural mineral & vitamin content present inherent in sugarcane juice.

Nutrients

Natural Brown Sugar (Per 100g)

Total Mineral salts Phosphorus (P) Calcium (Ca) Magnesium (Mg)

740 mg max 3.9 mg max 85 mg max 23 mg max

Feasibility report Potassium (K) Iron (Fe) 100 mg max 1.3 mg max

Why our product is necessary for customers:Imbalance in minerals is one prime cause of disease. Reason for this is over- consumption of refined products like refined sugars, refined oils, & refined salt. It is therefore vital to consume less processed, more natural & nutritious products such as the healthy & wholesome Natural Brown Sugar.

Market environment:There is an intense competition in the market but there are opportunities in the market for this product. Competitors are strong in the market and they have a large market coverage and share. But potential is always present in the FMCG sector. Our site is centrally located in Pakistan from where we can easily get access to the markets of the country. We have some competitors but its success and profitability is very much related to its low cost and high quality. As our product is substituting white sugar, so it may face a great challenge in market but we have a strong point of differentiation which help us not only to penetrate but capture whole market. We will start our Business from Bahawalpur region and then we will go to national level. Plants location is in Bahawalpur that is an agricultural area, so raw material will be easily available and due to its location near Karachi road makes distribution easy. Some ingredients that we have to import they also will be easily accessed because the road from Bahawalpur to Karachi is good and transportation costs are comparatively less in Bahawalpur as to other major cities of Pakistan. Due to less costs we will provide best quality to our customers as compared to less prices then other competitive national brands.

Overall Comparison:Below mentioned is overall comparison of NATURAL BROWN SUGAR. With our competitor product White sugar. Match these huge differences.

TRAITS

BROWN/ (DEMERARA) SUGAR

ORDINARY WHITE SUGAR

Physical Appearance Yellowish-brown sugar in the rich No flavor, taste, or color from natural aroma of tropical sugarcane. Production Process sources.

Produced by a precise co-crystallization Ordinary sugar manufacture process process to retain natural flavor & color employs several chemicals. components.

Chemical Additives At no stage in the production process, Processing involves a potpourri of

Feasibility report are any chemical additives added. It is chemicals; all finally showing their free from any harmful chemicals like impact on our health in the long run. phosphoric acid, formic acid, sulfur Sulfur carryover puts health at stake. dioxide, preservatives/bleaching agents. This results in a health-friendly and chemical-free sugar. Nutrition Content Apart from a pure and natural Does not contain natural minerals.

sweetness, it contains 187 mg calcium, 56 mg phosphorous, 4.8mg iron, 757 mg potassium, and 97 mg sodium per cup of sugar-all from natural sources.

Plant capacity:The 100% capacity of single plant is .5 Tons per day, and we can join a number of plants to increase production. We will start production from 50% capacity and will be increased 100% every year.

Material and input:The basic raw material required for producing sugar cane which will be purchased from Chani goth region because this region is rich with sugarcane crop. Other inputs like Caustic Soda are available in Pakistan.

Byproducts:The bagasse produced after extracting the juice from sugar cane is used as fuel to generate steam in factories. Increasingly large amounts of bagasse are being made into paper, insulating board, and hardboard, as well as furfural, a chemical intermediate for the synthesis of furan and tetrahydrofuran. The beet tops and extracted slices as well the molasses are used as feed for cattle. It has been shown that more feed for cattle and other such animals can be produced per acre-year from beets than from any other crop widely grown in the United States. The beet strips are also treated chemically to facilitate the extraction of commercial pectin. The end product derived from sugar refining is blackstrap molasses. It is used in cattle feed as well as in the production of industrial alcohol, yeast, organic chemicals, and rum.

Competition:It is a contest between individuals, groups, animals, etc. for territory, a niche, or a location of resources. It arises whenever two and only two strive for a goal, which cannot be shared. As we are going to do business in the sugar, industry there is no direct competitors of brown sugar industry. However, there is some indirect competitors of brown sugar industry. First, we are going to do business in Bahawalpur. However, we have many competitors that are serving in this industry of sugar.

Feasibility report

Competitor 1: Ashraf sugar mills:

Strengths:
Providing good quality No direct competitors in this region Located in industrial area Weaknesses: As demand of sugar is very high, so price increases day by day. Not gives importance to packaging and marketing.

Competitor 2: Adam sugar mills: Strengths:

Not much competition Demand is increasing

Weaknesses:
Old machinery and equipment Not much, focus on advertisement Unhealthy environment

Industry:As we are going to do business in sugar industry introducing brown sugar as a substitute product. We are choosing this because its demand is increasing day by day and supply is not according to demand. Sugar is harmful for the diabetic patients and for those who are diet conscious people because white sugar contains so much calories and expensive as well. It is a daily used product so there are very much chances that its demand is increasing day by day.

Critical risk factors:Risk is defined as uncertainty that you will not get the expected returns. In our business of brown sugar, there are many risks because this is a new and innovative idea. Some of the risks are: As we are introducing this product as a substitute of sugar so there is a risk that people may not accept it.

Feasibility report Our segmentation and marketing strategy not good. Our location is not good. Financial risk is also there. Our quality may not according to the standards that we set. Acceptance rate might be low. Inflation increasing day by day there is much possibility that we cannot maintain the prices. Risk of investment. Risk of substitute and competitors. Our location may not good.

Management team:Our project team is fully skilled regarding the duties they have to perform. Major positions of our firm are occupied by the partners of business as our qualification concerned. General Manager Production manager Finance manger Marketing manager Supervisor Labor Guard

Installation cost:This entrepreneurship business has a remarkable low production cost estimated each plant cost would be 150,000 and we are going to install 2 plants for purpose of test market so its cost would be _______. Land is very cheap in Chani Goth also labor, so it doesnt require a huge cost.

Rs.

(000)
Total fixed cost of project 1500

+ Initial permanent working capital

500 _ ____

Total cost of Project

2000

Feasibility report

Financial analysis/means of financing:Forty percent of estimated cost of the proposed project will be obtained through loan and remaining 60% will be contributed by the owner. Rs. Debt (000) 800

Equity 1200 Total 2000

Debt equity Ratio

40%: 60%

Financial Assistance:Rs. 800,000

Will be obtained from United bank limited Bahawalpur.

Human Resource Planning:We need HR-planning in future, when our brand will start working at international level.

Training and Development:Training and development have direct link. Companies enhance their performance by giving training to their employees. We will hire skilled labor.

Marketing Strategy:We are using differentiate strategy, because we are differentiating our product in such a way that we are offering a product which is very health friendly. The customers who will use our products will get the protection from diseases like diabetes, heart attack, because these diseases are caused by increase in insulin level in human body.