Ruthna Tea Estate

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Vision and Mission

Ruthna Tea Estate

To be the most regarded Tea Garden in Bangladesh by 2017

Mission
We are proposed four (04) basic principles of our Mission Statement:-

Ruthna Tea Estate

1) Satisfied Consumers: The consumer is essential that we provide a product that satisfies all of customer expectations. Our primary focus is to produce teas that offer a unique and truly gratifying experience. We will not allow price to compromise our products. Good flavor and product freshness are the prime considerations in the creations of our teas. 2) Strong Relationships: With our customers and suppliers we continuously work to build and maintain strong business relationships. We realize that is through excellent communication and mutual respect that we grow and prosper together. 3) Satisfied Employees: Here is an equal opportunity employer dedicated to providing our employees with a challenging and positive environment in which to work. Recognizing that each and every employee plays a pivotal role in the success of our company, we seek to attract and retain outstanding individuals who will take pride in all aspects of their areas of responsibility, and understand the importance of cooperation among their fellow employees. We strive to motivate and satisfy our employees as well as promote individuals based on merit and contribution. 4) Good Management System: Our company has been, and always will be based upon strong ethical business practices and is dedicated to only the highest standard of behavior in all areas. We feel an obligation to support the local communities where we reside so as to build a good working relationship as well as to contribute to worthy local and national causes.

Values
The following values are:-

Ruthna Tea Estate

1. Customer Focus: We will focus on our customers as the central purpose for our existence and mandate. 2. Transparency: We will act in unambiguous, predictable and understandable manner. Further, we will remain accountable to our stakeholders and shoulder the responsibility for decisions made on their behalf. 3. Creativity and Innovation: We will endeavor to be creative and innovative in seeking successful ways to move the industry forward. 4. Integrity and Fairness: We will endeavor to act morally and ethically. Our service provision will be free from favoritism, self-interest or unfairness. To achieve this, we will be guided by set standards, policies, rules and regulations. 5. Leadership: The courage to shape a better future. 6. Collaboration: Leverage collective genius 7. Accountability: If it is to be, it's up to me 8. Passion: Committed in heart and mind 9. Diversity: As inclusive as our brands 10. Quality: What we do, we do well

Strengths, Weaknesses, Opportunities & Threats (SWOT) Strengths Weaknesses

1. 2. 3. 4. 5. 6.

Management is committed and confident. Experienced Staff Product innovations ongoing. Logistic Support Green initiative Physical Infrastructure

1. 2. 3.

4.

5. 6.

No direct marketing experience. High employee turnover rate. Dealing with huge illiterate people with primitive mind set Conflict between corporate culture and traditional tea culture. Lack of Internet facilities. Lack of tea related soft ware

Opportunities
1. 2. 3. 4.

5. 6. 7.

Buildup the clear strategy. Chances of producing verities of Tea. Increased yield per hector Improved drainage system and modern Technologies. Financial Sound Backup Expansion of existing Plantation area. Increasing Per Kg prices.

1.

1. 2. 3. 4. 5.

Threats Global impact on tea market price. Garden worker s unwanted unrest. Local Politics Urbanization Undesirable environmental or climatic situation. Product substitute

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Objectives
Specific
What : Planting 100 acre of land Why : To increase yield per hac and profit for the coy Who : MS, NMS and Workers

Ruthna Tea Estate

Where : Mokam-4, Bamboo Bari, Shankhola, Mokam -3 Which : By planting Material collection and shade tree collection

Measurable
How much? : 10 lac tea nursery , 1 lac shade nursery and 100 acre new planting , previous area infilling How Many ? : 100 acre How will I know when it is accomplished? : within 01 year

Objectives
Attainable

Ruthna Tea Estate

How can the goal be accomplished? : By arranging planting material in time , in time land preparation, agro chemical supply, compost , fertilizer application as per dose , weed and paste control , nursery raising

Reliable
Does this seem worthwhile? : yes Is this the right time? : yes Does this match our other efforts/needs? yes Are you the right person? yes

Objectives

Ruthna Tea Estate

Timeliness
When? Within one year What can I do 6 months from now? : monthly allocation of target What can I do 6 weeks from now? : collect soil , collection of cuttings, development of nursery infrastructure , collection of compost , arrange transport What can I do today? : planting and infilling

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Im p ov r

Pr oc es

Click to edit Master subtitle style S As ale pt su s HR io m Assum ns C l SR rna l te Ac tio ptions In ntro Pla n Co n

Directiv es by Chairma n

To p cu sto m ers fee dba ck pr

Bu si es n

Ca pa cit y op ti mi zat ion

He alt h, Sa fet y an d Ho us e Ke

e ta n

p oj r c e im t pl m e

an

D as h b o ar d
C pe a

Gl ob al Ac tio n Pla n

inin Tra g
HR As u s

m i pt on

Qu alit y As sur an ce act ion s an

Fin an cia ls Co st sa vin gs an

Pr od uct ion As su m pti on s

Production Assumption

Ruthna Tea Estate

Production Assumption

Production Assumption
Type In house Production 2012 - 2013 2,00,000 kg Remarks

Ruthna Tea Estate

Ruthna Tea Estate

Out Side Production

1,25,000 kg

Muraicherra Tea Estate

Total

3,25,000 kg

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In
Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May(Estimated) Jun (Estimated) 5/26/12

House
2011/2012 (kg) 26,663 10,803 35,005 27,645 18,529 9724 2083 12,013 14,500 20,000

Production
2012/2013 ( Estimated ) (kg) 27,276 29,000 28,900 28,000 20,600 10,724 3500 14,500 15,500 22,500 2.30 168.44 (17.44) 1.28 11.17 10.28 68 20.70 6.90 12.50

Comparison

Ruthna Tea % Changes Estate

Out
Type

Side

Production

Assumption
2012 ( Jan to Dec ) Remarks as per crop calendar 1,25,000 kg 1,25,000 kg Out Side Production Total

Ruthna Tea Estate

Muraicherra Tea Estate

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Total Assumption
FY-2011-2012-Actual
Year Production Total

Production

Ruthna Tea Estate

FY-2012-2013-Budget
Year Production SubContract Total

%
Changes

2011/2012

1,76,965

1,76,965

2012/2013

2,00,500

1,25,000

3,25,00

Both 83.65 Own 13.30

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Action Plan to Achieve the Target

Ruthna Tea Estate

Quantity and quality of crop depends largely on the correct implementation of pruning practices Plucking round practices Maintenance Foliage Ensuring Proper Growth and regeneration of tea Shoots System of Plucking Leaving a leaf ( plucking height by one leaf ) Permissible Creep and breaking back near Janam leaf Banjhi shoots Training to the Pluckers

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Workers Assumption

Wages

Ruthna Tea Estate

Workers Wages

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Workers
2009 2010 2010-2011 Assumption 105,68,223/(Per month =8,80,685/- and per week = 2,20,171/-) 2011-2012* 224,61,727/(per month = 18,71,810/- and per week = 4, 67,952/-) 36.43% increase 164,63,403/(Per month = 13,71,905/- and per week = 3,42,987/-) 55.78% increase

Cost
2012-2013**

Ruthna Tea Estate

292,00,245/(per month = 24,33,353/- and per week = 6,08,338/-) 30% increase

*note: May-June assumption **note: May-June assumption The wages may be changed if new labor agreements of workers wages held in this year 5/26/12

Machine Assumption

Hour

Ruthna Tea Estate

Machine Hour Assumption

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Machine Assumption
Machine Jan Feb Mar 30.43 hr Apr 126 hr

Hour
May 134.78 hr June

Ruthna Tea Estate

195.65 hr

Machine

July

Aug

Sep

Oct

Nov

Dec 93.25 hr

237.18 hr 252.17 hr

251.30 243.47 hr 179.13 hr hr

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Material By Product Cost Category

Ruthna Tea Estate

Material By Product Cost Category

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Material Category

By

Product

Cost

Ruthna Tea Estate

Not Applicable

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Sales Assumption

Ruthna Tea Estate

Sales Assumption

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Sales
FY-2011-2012-Actual
Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter (Estimate) Total Sales

in

Quantity
FY-2012-2013-Budget
Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter ( Estimate) Total Sales 1,53,31,680 1,06,78,320 6,30,000 94,50,000 3,60,90,000

Comparison
1,19,57,715 92,23,170 3,43,695 76.74,645 2,91,99,225

Ruthna Tea Estate

%
Changes

28.21 15.77 83.30 23.13 23.60

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Capacity Optimization

Ruthna Tea Estate

Capacity Optimization

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Capacity Assumption
Available Capacity : 5,00000 kg made tea maximum

Optimization

Ruthna Tea Estate

Hourly target : 500 kg green leaf

Daily Working Hour : 08 to 16 hrs depends on green leaf

q

90,903 kg made tea total capacity of 19% capacity in the year 2011- 2012 3,25,000 kg made tea total capacity of 65% capacity in the year 2012- 2013

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Capacity

Optimization

Assumption

Action Plan

Ruthna Tea Estate

Training arrangement for team. Effective Production planning . Training and Motivation in mid level management.

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HR Assumption

Ruthna Tea Estate

HR Assumption

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HR Assumption
MS statistics
Existing NewRecruitment Total

Total
Cost 2011-2012 Cost 2012-2013 Difference %

salary
Cost 2011-2012 Cost 2012-2013

Ruthna Tea Estate

Difference %

Ruthna

4902624

7213052

2310427

47

3952961

5177091

1224130

31

PF
Cost 2011-2012 Cost 2012-2013 Difference % Cost 2011-2012

bonus
Cost 20122013 Difference % Cost 2011-2012

lv encash
Cost 20122013 Difference %

43133

81429

38296

89

284012

300424

16412

21575

50071

28496

132

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HR Assumption
gratuity
Cost 2011-2012 Cost 20122013 Difference %

Ruthna Tea Estate

ISP car allow
Difference % Cost 2011-2012 Cost 20122013 Difference %

insurance
Cost 2011-2012 Cost 2012-2013 Difference

% Cost 2011-2012 Cost 2012-2013

25514

75106

49592

194

71138

48014

-23124

-33

324292

844943

520651

161

180000

180000

1 2 3

4 5 6 7 8

The cutoff date for existing is 30th April 2012 Cost is including Gross salary, ISP, Leave Encashment, Festival Bonus, PF, Gratuity, Insurance, Car Allowances etc. Cost for 2012-2013 given here assuming 16% increment on gross considering the current inflation (10%) and GDP growth rate (6%). ISP is calculated here based on 100% business (17.5%) & personal (7.5%) performance for the year 2012-2013. ISP for 2011-2012, 1st half given actual which was approved in Jan, 2012, 2nd half assuming 100% performance. Gratuity kept as provision for next year @1 basic for each employee. Leave Encashment is calculated based on 100% (20 days) balance of annual leave for 2012-2013. For 2011-2012 encashment given based on actual leave balance from HRIS. Cost of 4 new recruitment is included here. Among this recruitment some are replacement and some against vacancies in organogram. The cost of car allowances presented here based on existing data, if could be change if new employee avail the benefit.

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Training Assumption

Ruthna Tea Estate

Training Internal and External learning process Assumptions

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Training Assumption
Internal Training
Training on tipping and plucking table maintenance vTraining on Lung Pruning or thumb pruning. vTraining to the mid wife and compounder related with pregnant patient handling vLight Pruning techniques and the system of pruning. vHealth & Safety training.
v v

External Training

Ruthna Tea Estate

Fire fighter and First aider training vVAT and TAX vTraining in BTRI

Budget= 1,20,000
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Business Assumption

Process

Improvements

Ruthna Tea Estate

Business Process Improvements Assumptions

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Business Assumption

Process

Improvements

Ruthna Tea Estate

Action plan: . Good relationship with buyer and broker house . Creating Brand Image . Certification from various Organization for export market . Smooth supply chain management . Long term relationship and market 5/26/12

Quality

Assurance

Actions

and

Assumptions

Target Ruthna Tea Estate

Quality Assurance Actions and Target Assumptions

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Quality Assurance Actions and Target Assumptions

Ruthna Tea Estate

Action plan: . Plucking round control . High good leaf percentage . Careful transportation about green leaf handling to ensure less damage of green leaf . Ensure good withering . Control fermentation time . Drying temperature must be appropriate . Proper grading and sorting of tea . Time to time tea tasting and take necessary action about tea tasting report
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Top Customers feed-back process and target Ruthna Tea Estate Assumptions

Top customers feed-back process and targets Assumptions

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Top

Customers

feed-back

process

and

Assumptions

Ruthna Tea Estate

target

Action plan: . Respect all the buyers in the same way and take necessary action about their feed back . Collect all the buyers feed back time to time and ensure turn around time (TOT ) for all the buyers

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Financial Cost Savings Assumptions

Ruthna Tea Estate

Financials Cost savings Assumptions

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Financial Cost Savings Assumptions

Ruthna Tea Estate

Cost saving targets for Factory

Target
Quality tea Electricity/Gas consumption
Green leaf Quality

Action Plan
Make good quality tea in one time which reduce reprocessing Switch off lights, computer and machine while not in use
By plucking fine leaf quality which reduce electricity consumption

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Financial Cost Savings Assumptions

Ruthna Tea Estate

Cost saving targets for HR

Target
Use less paper Medical costing Wages

Action Plan
Motivation to the office staff Sanitation and health safety motivation to workers Checking the attendance always

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Financial Cost Savings Assumptions

Ruthna Tea Estate

Cost saving targets for Maintenance

Target
Mechanical- cost reduce Electrical cost reduce Civl cost reduce Automobiles cost reduce

Action Plan
Use wastage spare parts where necessary Proper use of electricity and use of voltage stabilizer Proper Planning and execution Proper maintenance and proper use

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Internal

Control-

SAP

and

internal

Assumptions

Audit Ruthna Tea Estate

Internal Control -SAP and Internal Audit Assumptions

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Internal

Control-

SAP

and

internal

Assumptions

Audit Ruthna Tea Estate

we dont have SAP due to internet facility

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Internal

Control-

SAP

and

internal

Assumptions
Internal Audit: Financial

Audit Ruthna Tea Estate

Internal audit will be conducted by the Group Internal Audit team in the prescribed time period.
1. 2. 3. 4.

Monthly Quarterly Half yearly Yearly

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Health

Safety

and

House

Assumptions

Keeping Ruthna Tea Estate

Health, Safety and House Keeping

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Health, Safety and House Keeping

Ruthna Tea Estate

Particulars Fire Equipment Medical Expenses

Yearly 20,000 2,75,000

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CSR Action Plan

Ruthna Tea Estate

CSR ACTION PLAN

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CSR Action Plan

Ruthna Tea Estate

Distribution of medicinal and other plants Eye camp 0-5 clinic

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Inventory assumption

Ruthna Tea Estate

Inventory Assumption

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Inventory assumption INVENTORY-2012-2013

Jun-11 Jul-11 BDT Aug-11 BDT Sep-11 BDT Oct-11 BDT Nov-11 BDT

Ruthna Tea Estate

Dec-11 BDT T0tal BDT

Particulars
BDT

T0tal

Jan-12

Feb-12 BDT

Mar-12 BDT

Apr-12 BDT

May-12 BDT

Jun-12 BDT

T0tal BDT

Particulars
BDT

T0tal

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Capex and Project Implementation Plan

Ruthna Tea Estate

Capex and Project implementation Plan

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Capex and Project Implementation Plan

Ruthna Tea Estate

May-13 Jun-13

Description Exhaust fan(10pcs) Gas Burner(10pcs) Tractor(1pc) Staff Qtr(2pcs)

Jul-12

Aug-12 Sep-12 .0000

Oct-12 .60000

Nov-12

Dec-12

Jan-13 .60000

Feb-13

Mar-13

Apr-13 60000

.200000 1350000 .850000 .375000 375000 .375000 .75000 .375000 .375000 .850000 .75000 75000 375000 1195900 90000 .5000 .5000

Green leaf Weight man .75000 house(10pcs) Labour House(346pcs house) by CI & sungrass Spare parts(Electrical &Mechanical Items) Disel Godown repair & car Garage .50000

.195900 .195900 .195900 .1195900 .1195900 .195900 1195900 .175000 .80000 .95000 .20000 .60000 .85000 .150000 50000 65000 120000

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Overall Action Plan

Ruthna Tea Estate

Overall Action Plan

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Descriptio Results to be n achieved

Actions to be taken

Respo Deadlin nsibili es ty

Status of Progress

End Status

Optimistic plantation raising target

Brining up into bearing specially the young tea through proper pruning Build up the clear strategy

Productivity gain Ensure proper plucking round

Manag 1 year er

Proper paste and weed control

Training for employee development

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Description of Items

Results to be achieved

Actions to be taken

Responsi Deadlin Status of Progress bility es

End Status

Field drain and main drain draw up properly to reduce water logging

Improve drainage system and Yield per hac will proper be increased fertilizer Doze and split will application be follow as recommended

Manager

1 year

Training of employee

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Description of Results to be Items achieved

Actions to be taken

Responsibility

Deadline Status of Progress s

End Status

Nursery

Soil collection Compost collection Fresh cutting collection Nursery To raise good infrastructure Good maintenance planting material for tea and shade in new extension or replanting area Training to employee

Asst Manager 1 year

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Descripti Results to be Actions to be Responsibi Deadline on of achieved taken lity s Items

Status of Progress

End Status

Tea Good price in processing auction house

Good withering Sorting of Bad and Damage leaf Uninterrupted Asst power manager supply (factory) Timely CTC 1 year Executive roller Maintenanc sharpening Maintenance of e machinery

Training of employee

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Descripti on of Items

Results to be achieved

Actions to be Respon Deadlin taken sibility es

Status of Progress

End Status

Weeds and pest control Pruning Manuring Good plantation Shade tree Young tea material for future Irrigation during Maintena replanting area and drought season nce infilling Infilling

Assistan t 1 year Manage r

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Description of Results to be Actions to be Responsibi Status of Deadlines Progress Items achieved taken lity

End Status

Internal road and fence Proper in house repair and communication Earth filling to maintenance be done

Bridge and ring culverts to be constructed Executive Maintenance 1 year

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Any Question

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Thank You
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