Business Proposal Essay

Funding Requirements14 Confidentiality Agreement The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of Mr. K Seeman Durai. It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than information that is in the public domain through other means, and that any disclosure or use of this confidential information by the reader may cause serious harm or damage to M/s. Newsky Fireworks Limited Upon request, this document is to be immediately returned to Mr K Seeman Durai. Signature Date : 26. 05. 2013 1. Executive Summary Promoter’s Profile 1. Name:K Seeman Durai 2. Age:45 years 3. Address:No. 4859 Nethaji Road, Sivakasi 4. Educational Qualification:M. B. A. , M. I. B. 5. Years of Experience:20 years (M/s. Murugan Fireworks) Financial projections are summarised and highlighted. (Rs. In Lakhs) |Particulars |Year 1 |Year 2 |Year 3 | |Sales |50. 0 |75. 00 |90. 00 | |Exports |35. 00 |40. 00 |50. 00 | |Net Profit before Tax |15. 00 |35. 00 |50. 00 | |Investment |80. 00 |90. 00 |95. 00 | 2. Company Description Promoters and Shareholders |Name |Age |Designation |Address |No. of Shares | |K Seeman Durai |45 |Promoter |No. 859 Nethaji Road, Sivakasi |10 lakhs | | Karthik |43 |Chief Executive |No. 728, West Car Street, Trichy |1 Lakh | | | |Officer | | | | Jeya Sivasakthi |45 |Managing Director |No. 73, South Masi Road, Coimbatore. |2 lakh | |Kandan | | | | | |P. Dhanalakshmi |35 |Director |No. 83, Sarojini Road, Salem. |3 lakh | |T. Abinaya |34 |Director |No. 34, Second Street, Theni |3 lakh | |S. Aishwarya |40 |Member |No. 4859 Nethaji Road, Sivakasi |1 lakh | |S. Geetha |39 |Member |No. 73, South Masi Road, Coimbatore. |1 lakh | Advisors |Name |Educational |Role |Address |Contact No. | |Qualification | | | | |CA G Rajesh |M. Com. , F. C. A. |First Auditor |8493 Sarojini Street, Chennai|+919835748343 | |Mrs. D Sheela |M. A. ,M. L. , |Legal Advisor |857, Gandhi Road, Madurai |+919447382342 | |Mr. K Gulandaivel |B. E. , |Technical Advisror|76, Tagore Street, Vellore |+919472834234 | Products and Services †¢ Unique Selling Points : Crackers that burst with wordings regarding to the occasion. e. g. Happy Diwali, Happy New Year, Happy Married Life etc. ) Long Term Aim of the Business â€Å"To provide Eco-Friendly Crackers† Objectives |Particulars |I |II |III |IV |V | |Sales |50. 00 |75. 00 |90. 00 |95. 00 |100. 00 | |Exports |35. 00 |40. 00 |50. 00 |55. 00 |60. 00 | |Employment |2. 00 |2. 15 |2. 25 |2. 50 |2. 60 | SWOT Analysis Strengths |Weaknesses | | | | |Investments and Professionals | | |Opportunities |Threats | | | | |Everlasting Demand |Competitions | 3. Market Analysis Target Market Market Segmentation Profile of Competitors Main Competitors would be : †¢ Arasan Groups of Fireworks Industries †¢ Kaliswari Fireworks †¢ Sony Fireworks Competitive Advantage We have the following Competitive Advantages †¢ Unique features †¢ Price †¢ New technologies or systems †¢ Better value to customers in terms of efficiency †¢ Greater compatibility with existing systems †¢ Include any independent validation or case studies Benefits to Clients Our product provides to potential customers in terms of their own business goals. It enable them to: †¢ Increase sales †¢ Increase efficiencies Save money †¢ Save time †¢ Maximise resources †¢ Reduce errors †¢ Reduce downtime †¢ Improve Customer Service, reduce churn, increase loyalty 4. Marketing/Sales Strategy Marketing Strategy †¢ The Southern Tamil Nadu zone is to be concentrated first and youngsters are to be focused †¢ Followed by youngsters, children, adults are to be concentrated †¢ Youngsters are the potential customers already targeted †¢ Test site in operation are will be conducted, and feedback will be analysed properly †¢ Agents and Representatives are expected for marketing Sales Strategy The major Sales Strategy is to sell directly and by means of distributors. Particulars |Direct Sales |Through Distributors | |Composition |25% |75% | |Cost Involved |10/unit |7/unit | |Pricing |Penetration |Penetration | Pricing †¢ Competitors Price is higher than our price †¢ There is a sufficient level of competition in the market †¢ Production costs and overheads are expected to be 60% of sales †¢ The buyer can control the price to a c onsiderable level. Marketing and Communications Strategy Advertising and Publicity will be the active source of Promotion. Advertising : Through televisions and newspapers. It is targeted to audience all over the state at the initial level Publicity : Banners have been planned to be placed at various hot locations 5. Research and Development Process [pic] Research and Development It has been planned to organize a R&D Department that would be actively engaged in the research of Eco-friendly crackers and to come up with various innovative ideas. 6. Staffing and Operation Management Organisation Chart Staffing †¢ Department Managers are to be appointed by the Board of Directors. The selection criteria for the same would be Educational Qualification, Experience, Age etc. , Department Managers are given the power to recruit employees for their concerned departments for which selection criteria is to be set by the directors. †¢ Skilled, Semi-Skilled and Unskilled Workers are to be utilised for various production processes. The same would be procured from the nearest locations at a reasonable cost. Tr aining Plans Training Programmes are to be conducted at regular intervals in order to enhance the efficiency of the skill levels of the workers. 7. Financial Projections IKey Assumptions10 IIBalance Sheets11 IIICashflow12 Requirements for Preparation of Projections 6. Opening figures included based on latest Mgmt/Audited accounts 7. Shareholders Fund analysed into Share Capital, Share Premium and Retained Profits 8. Sales Assumptions provided by unit, price segment & geography and reconciled to pipeline 9. Expenditure categorised into R&D, Admin and Overheads and Promoters / key managers salaries 10. Identification of monthly and cumulative company operational deficits 11. Sensitivity analysis may be required, detailing strategies to be implemented if sales or expenditure targets are not met. 12. Projections should identify separately Operational Cash Flow and external Cash Injections IKey Assumptions |Particulars |Year 1 |Year 2 | |No. f Employees |250 |300 | |Investments in Equipment |1,50,00,000 |1,55,00,000 | |Projected R&D costs |25,00,000 |20,00,000 | |Depreciation allowed for |12,00,000 |11,50,000 | |Expected rent and rates charges |5,00,000 |5,00,000 | |Creditor days expected |45 |60 | |Debtor days allowed |60 |60 | IIIBalance Sheets IVCashflow 9. Funding Requirements |S. No. |Sources |Amount | |1. |Equity Shares of Rs. 10 each |Rs. 60 crore | |2. |10% Preference Shares of Rs. 100 each |Rs. 25 crore | |3. |8% Debenture of Rs. 100 each |Rs. 25 crore | |4. |Term Loans |Rs. 10 crore | Required for: †¢ Equipment:10 crore †¢ R&D:15 crore †¢ Marketing:2 crores †¢ Staffing:6 crores ———————– 26. 05. 2013 Newsky Firework Limited Business Proposal K Seeman Durai & Group