Professional Documents
Culture Documents
OF A
TABLE OF CONTENTS
Chapter
Page
1.
Executive Summary
2.
Market Analysis
3.
Company Description
4.
5.
12
6.
Funding Plan
14
7.
Financials
15
CHAPTER ONE
1
EXECUTIVE SUMMARY
1.1
GENERAL
Name of the Firm: Duca Palm oil mill.
Project: Palm oil, Palm kernel oil.
Location: Adazi-Enu, Anaocha Local Government Area,
Anambra State, Nigeria.
1.2
1.3
1.4
SPECIAL TRAINING
CEDR University Of
March 2014.
Web development and affiliate marketing Training June 2013.
1.5
WORK EXPERIENCE
Organization: Ekedum Motor Spare Parts.
Position: Sales Representative.
Nature of Work: Sales
Duration: Five Years
Organization: Umar Suleiman Government Day College Gashua, Bade
Local Government Area, Yobe State.
Position: Teacher (Teaching Practice)
Nature of Work: Teaching
Duration: Three Months.
Organization: Family Palm Plantation.
Position: Assistant
Nature of Work: Palm harvesting and Oil Processing.
Duration: Five Years
1.6
VISION STATEMENT
To be a leading palm oil processing mill, in providing palm products in
Nigeria and beyond.
1.7
MISSION STATEMENT
To provide palm products in a clean environment, while making use of
modern technology with honesty.
1.8
BUSINESS STRATEGY
Advertising strategies include local Tv advertisements to initially announce
4
the Grand Opening. Print advertisement will also run in the local newspaper.
Affiliate marketing will be introduced to all potential customers, by affiliate
marketing a customer (mr. A) will register with the marketing manager and also
introduce five more customers (mr. b, mr. c , mr. d, mr e and mr f) to the mill
whom the marketing manager will register under the customer (mr. A). The
customer (mr. A) earns 1% from each of the customers (mr. b, mr. c , mr. d, mr e
and mr f) transactions that is over 100,000.00 naira at the end of the year
(December) for a duration of one year. The business will also run online at
www.ducapalm.globalvila.net
CHAPTER TWO
2
MARKET ANALYSIS
2.1
MARKET DESCRIPTION
The Nigerian market for palm oil and palm products is promising. With the
growing population and the increase in number of eateries being set up and
household consumption of palm oil, the market continues to grow. Because
of the high demand of these products in the country, they are being imported
in some cases.
The abundance of palm tree plantation in different Local Government Areas
Of Anambra State in Nigeria makes the area a good site for establishing the
palm oil mill. The oil mill will focus on the production of palm oil, palm
kernel oil and palm kernel proceeds needed for the making of soaps,
pomade and even snacks. The products from this oil mill serve as raw
material for cosmetic industries, food and snacks making industries.
It is also used as a substitute for cocoa and fats found in milk and in cream
made from sugar, biscuits, cakes and margarines. Palm kernel oil It is also
used when baking cakes, croissants and bread to give the products added
volume, a soft texture that make bread last longer. Anambra state which will
be the target of the mill has a very big population, which is a good market
palm oil processing mill and palm products. Golden Oil Industries Ltd, 15A
harbour industrial Estate, Onitsha and Envoy oil Industries Ltd, PokoBros
Avenue, Onitsha. are secondary processors of palm kernel oil (pko).
6
CHAPTER THREE
3
COMPANY DESRIPTION
3.1
3.2
OBJECTIVES
The objectives of Duca Palm oil mill for its first three years of operation
are:
Achieve profitability in the first year.
Expand the capacity of the farm.
Maximize profit and minimize cost in each subsequent year.
Control a reasonable share of the markets in Anambra and Delta state.
Have a strong link with government establishments, palm oil dealers and
business concerns on the supply of the palm oil products.
Others include development works which will start in earnest whenever the
mill funds can be able to support it.
CHAPTER FOUR
4
4.1
MANAGEMENT
1.
2.
3.
4.2
1.
2.
Position: Labourers
Responsibilities:
Operation of the mill machinery.
Processing of palm oil and palm kernel oil.
Cleaning the mill.
Packaging of palm oil and palm kernel oil.
Uploading and downloading of product to and fro the mill van.
Position: Driver
10
Responsibilities:
Transporting palm fruits and kernel from the markets to the mill.
Supplying palm oil and palm kernel oil to the customers.
4.3
ORGANIZATION
The Managing Director will be in control of all the activities of the farm. All
the farm personnel will be answerable to him. In his absence, all other
personnel will be answerable to the Marketing Manager or a senior worker as
may be directed.
11
CHAPTER FIVE
5
5.1
PRODUCT DESRIPTION
For the first five years, Duca mill will focus on processing of palm oil
And palm kernel oil for the mill and for customers.
5.2
thereafter packed ready for sale. The filter press machine removes all the
debris and dirts from the crude thereby leaving us with a clear golden
coloured clean oil in the storage tank ready for sale. The sludge and debris
are trapped in the filter press chambers. They also sediment at the bottom of
the primary tank. Periodically sludge and debris are removed from the filter
press machine and scooped from the bottom of the primary tank and stored
in open drums ready for sale.
5.3 PRODUCTION PROCESS FOR PALM OIL
Fresh fruit arrives from the field/markets as loose fruit. The fresh fruit is
normally emptied into wooden boxes suitable for weighing on a scale so that
quantities of fruit arriving at the processing site may be checked.
Digestion is the process of releasing the palm oil in the fruit through the
rupture or breaking down of the oil-bearing cells. The digester commonly
used consists of a steam-heated cylindrical vessel fitted with a central
rotating shaft carrying a number of beater (stirring) arms. Through the action
of the rotating beater arms the fruit is pounded. Pounding, or digesting the
fruit at high temperature, helps to reduce the viscosity of the oil, destroys the
fruits outer covering (exocarp), and completes the disruption of the oil cells
already begun in the sterilization phase.
There are two distinct methods of extracting oil from the digested
material. One system uses mechanical presses and is called the dry method.
The other called the wet method uses hot water to leach out the oil.
In the dry method the objective of the extraction stage is to squeeze the oil
out of a mixture of oil, moisture, fibre and nuts by applying mechanical
pressure on the digested mash. There are a large number of different types of
presses but the principle of operation is similar for each.
13
CHAPTER SIX
6
FUNDING PLAN
The duca mill project is expected to be financed with a loan of eight million
Naira (N8,000,000) which will be amortized over its first five years of
operation starting in the first year as the case may be.
14
CHAPTER SEVEN
7
FINANCIALS
The financial plan for the mill for its first three years of its operation
includes the:
Profit and Loss Account
Cash Flow Statement
Balance Sheet
Depreciation Schedule
The financial plan will only consider Palm kernel oil, palm kernel cake and
palm oil. Sludge will be assumed neutral so that its profit will take care of
any imperfection with the financial projections.
N1,500,000
furniture
Payment of workers for first year
N300,000
Acquisition of machines and N1,500,000
equipment
20 Metric Tones Storage Tank
N150,00
10 Metric Tones Filter Press Machine N350,000
15
Miscellaneous
N500,000
Total Capital Expenditure needs
N4,300,000
Estimated Working Capital Requirement for the month
Raw Materials- Palm Kernel nuts-one months
estimate
Salaries -two months estimate
Other operating expenses-two months estimate
Miscellaneous
Total working capital
Total capital required
N1,800,000
N300,000
N80,000
N300,000
N2,480,000
N6,780,000
224,219,000
2,242,190
303,269,000
3,032,690
303,269,000
3,032,690
221,976,810
186,830,000
300,236,310
241,605,000
300,236,310
333,345,000
35,146,810
58,631,310
58,631,310
1,732,000
2,791,000
2,880,000
2,880,000
affiliate
marketing
Net sales
Cost of
sales
Gross profit
Operating
Expenses
Rent
Maintenanc
2,791,000
e
Salaries
Buildings/Fur
1,800,000
1,500,000
16
niture
Equipments/
1,850,000
3,500,000
250,000
45,000
Registration
Insurance
Mitsubushi
150,000
800,000
150,000
-
150,000
-
Canter Truck
Accumulated
360,000
790,000
1,350,000
Depreciation
Loan
1,500,000
2,000,000
2,000,000
150,000
Total
10,137,000
12,111,000
9,171,000
Expenses
Net Income
Tax
Net income
25,009,810
2,500,981
22,508,829
46,520,310
4,652,031
41,868,279
49,460,310
4,946,031
44,514,279
Machines
Advertisemen
ts
Company
Name
servicing
20 Mt
Storage
Tank
After Tax
221,976,810
17
303,269,000
303,269,000
7.4
186,830,000
1,800,000
241,605,000
2,880,000
241,605,000
2,880,000
2,500,981
4,652,031
4,946,031
2,242,190
28603639
3,032,690
51,099,279
3,032,690
51,099,279
4,300,000
4,300,000
7,800,000
3,500,000
0.00000
0.0000
8,000,000
1,500,000
800,000
5,700,000
2,000,000
650,000
2,650,000
2,000,000
450,000
2,450,000
30,003,639
30,003,639
50,249,279
80,252,918
133,802,197
214,055,115
BALANCE SHEET
Assets
Current Assets:
Cash
Stock
Total Current Assets
Fixed Assets:
Property, machinery
and Equipment
Accumulated
Depreciation
30,003,639
30,003,639
80,252,918
80,252,918
214,055,115
214,055,115
4,300,000
3,500,000
0.0000
360,000
790,000
1,350,000
18
3,940,000
33,943,639
2,710,000
82,962,918
-1,350,000
212,705,115
6,500,000
27,443,639
4,500,000
78,462918
2,500,000
210,205,115
January
PRICE OF
PALM
KERNEL
OIL /TONNE
195,000
160,000
16,000
February
195,000
140,000
16,000
March
180,000
110,000
16,000
April
160,000
110,000
16,000
May
150,000
130,000
16,000
June
150,000
130,000
16,000
July
155,000
150,000
16,000
August
155,000
150,000
16,000
19
Septembe 150,000
r
150,000
16,000
October
150,000
150,000
16,000
Novembe
r
160,000
150,000
16,000
December 195,000
175,000
16,000
7.5
Year
1
2
3
4
5
7.6
Interest @ Annual
Principal
Balance c/d (N)
10% (N)
Installment Repayment(N)
Payment
(N)
800,000
2050000
1,500,000
6,500,000
650,000
2050000
2,000,000
4,500,000
450,000
2050000
2,000,000
2,500,000
250,000
2050000
1,500,000
1,000,000
100,000
2050000
1,000,000
-
POSITION
1
2
3
4
5
6
Marketing manager
Accountant/Secretary
Driver
Four laborers
Security Man
Truck conductor
YEAR ONE
YEAR TWO (N) YEAR THREE
(N)
(N)
40,000
40,000
40,000
15,000
15,000
15,000
20,000
20,000
20,000
60,000
60,000
60,000
15,000
15,000
25,000
15,000
15,000
15,000
20
21