,Business Plan on Artificial Turf

A Business Plan on Artificial Turf

Prepared for

Md. Shahinur Sobhan

Assistant Professor

Department of Business Administration

Dhaka City Collage

Dhaka,

Prepared by

“Freshers”

BBA-Batch 14

Section-B

Date of Submission

March 18, 2012

Group Name:

Freshers

Name

Roll

Asikur Rahman

66

Md. Imtiaz Alam

62

Habiba Anam

58

SkMd.Hadin

64

Md. Mamunur Rahman

61

Sayla Jaman

65

Sumaya Rubaiyat

63

Farzana Rahman

59

Md.Mohaimenul Islam

60

Md.Asif Shariar

67

Group Members

Page 3

Letter of Transmittal

March 18, 2012

Mr. Md. Shahinur Sobhan Assistant Professor

Department of Business Administration Dhaka City College

Dhanmondi, Dhaka.

Subject: Submission of Report Sir,

We are proud to inform you that we, the members of “Freshers” have prepared this report on “Artificial Turf”. We request you to receive the report.

We apologize for our mistakes in the report. We will be happy to clarify queries regarding the report.

Yours truly, Asikur Rahman

On behalf of the group “Freshers” BBA, Batch-14, Section-B

Department of Business Administration Dhaka City College

Acknowledgement

At the beginning of preparing the report, we didn’t know how to prepare a business plan. Group discussion was the key to finish the report.

A number of people helped us when we were preparing it.

With the guidance of our respected teacher Mr. Md. Shahinur Sobhan and Ms. Manna Akter Lina Department of Business Administration, we were able to prepare this report. Their valuable comments and proper guideline showed us the way of success.

Executive Summary

Executive Summary

Project

: A business organization will be established which will Provide the services of artificial turf.

Name ofthe company

: Green Shadow

Type of business

Type of organization

: Partnership Business

Year of establishment

: 2013

Financial condition

: Profitable

Means of financing

: 60% as equity capital & 40% as debt capital

Special service

: 1. Rooftop turfing

2. Anti-Slip Carpet

3. Football field turfing 4. Welcome Mat

Technical Sides

Machinery

:All are imported outside of the country

Earnings After Tax

2013 2014 2015 2016 2017

3825641.25

9123819.75

14486761.50

23727860.25

31572956.25

Financial Sides

Particulars

Page No.

Chapter 1. Introduction

Objective Methodology Limitations

(1-1)

1 1 1

Chapter 2. Business Description Segment

Idea of Artificial Turf Product History Company’s Vision Company’s Mission Management Segment: Organization Structure Management Team Employment Agreements Ownership

Advisors & Auditors

(2-3)

2 2 3 3 (4-6) 4 5 5 6 6 Page 7

Chapter 3. Manufacturing Segment

Location Analysis Production Machinery Installation Equipment Sources of Raw Material Manufacturing Process Labor Supply

Manufacturing Cost Data

(7-12)

7 8-9 10 11 11 12 12

Chapter 4. Marketing Segment

Problem Identification Situation Analysis: Market Summary SOWT Analysis Marketing Strategy: Market Segmentation Target Market

Marketing Mix Analysis: Product

Price Place Promotion

Corporate Social Responsibilities

(13-18)

13 (13-14) 13 14 (14-15) 14 15 (15-17) 15 16 16 16-17 18

Chapter 5. Financial Segment

Cost of Project Means of Financing Cost of Production: Material Cost Utilities Cost Labor Cost

Factory Overhead Cost Working Capital Income Statement Profitability Projection

Chapter 6. Conclusion

Conclusion Reference: Reference

(19-26)

19 20-21 (22-24) 22 23 23 24 24 25 26

(27-28)

27 (28-28) 28 Page 9

Introduction

Objective

Our objective is to prepare a report about ‘Grass Carpeting’ which was suggested by our respected teacher Md.Shahinur Sobhan. Thus we can learn how to prepare a report.

Methodology

We gathered our required information from internet which is a secondary source of data collection. Sources

are- Internet

 Web based articles  Science Magazine

Limitations

We faced problems to make this report.

Like- Selecting a new idea was really tough

 Communication problem among group members  Problem with limited internet connection

 Lack of required exact information

Business Description Segment

Idea of ArtificialTurf

Artificial turf is a surface manufactured from fibers made to look like natural grass. It is most often used in arenas for sports that were originally or are normally played on grass.The main reason is maintenance—artificial turf resists heavy use, such as in sports, and requires no irrigation or trimming. Domed, covered, and partially covered stadiums may require artificial turf becauseof the difficulty of getting enough sunlight to stay healthy.

Product History

Every unique business has its own historical background. So, Grass Carpeting also has a background.

David Chaney – who served as Dean of the North Carolina State University College of Textiles – headed the team of Research Triangle Park researchers who created the first notable artificial turf. Artificial turf first came to prominence in 1966, when Astroturf was installed in the Astrodome in Houston, Texas. Anattempt to use natural grass in 1965, but this failed miserably. The use of Astroturf and similar surfaces became widespread in the U.S. and Canada in the early 1970s.

Artificial turf first gained substantial attention in the 1960s, when it was used in the newly constructed Astrodome. The specific product used was called Astroturf.

Company’s Vision

Our vision is to make a greener Bangladesh. We want to see our country totally as a green heaven within 20 years.

Company’s Mission

We have some specific mission with our unique idea and product. They are as below- Spreading all over our country

 To create a new business in Bangladesh  Provide high quality product and service  Earn customers faith and satisfaction

 Establishing a good opportunity to resistunemployment problem

Legal Form of business

Green Shadow is owned by the partners. We started our partnership business according to the Partnership Act 1932. The firm is running under this act.

Management Segment

Organization Structure Page 15 Operations Manager Marketing Manager Research & HR Manager Finance & Accounting Manager Managing Director Installation Manager Executive of Finance Executive of Accounting Assistant Op. Manager Chief Engineer Asst. Engineer Worker Worker Supervisor Departmental Head

Management Team

Name

Age

_Designation

_General

Salary

Experienc e

Qualification Asikur Rahman 39 Managing Director 65000 5 Years CA (UK)

Imtiaz Alam 39 General Manager 60000 5 Years BBA (IBA) MBA(IBA)

Md.SK Hadin 33 Assistant Manager 55000 3 Years BBA(NSU) MBA(NSU)

Habiba Anam 35 Financial Manager 45000 7 Years CA (USA)

Sayla Jaman 32 Head of HR 40000 3 Years BBA(DCC) MBA(EWU)

Sumaiya Rubaiyat 30 Marketing Manager 35000 2 Years BBA(JNU) Marketing

Mamunur

Rahman 25 Operations Manager 32000 2 Years BBA(DCC)MBA(DCC)

Asif Shahriar 33 Installation Manager 30000 1 Year BBA(WUB)

Employment Agreements

Salary

Employees will be paid based on standard scale and their experience. Experience employees are preferable.

Overtime

Overtime varies on works pressure. Per extra 2 hours is granted as a reward of 3.5% of standard salary.

Facilities

Extra facility includes monthly health check-up, Bike for marketing sided workers and yearly prize giving ceremony for winners.

Ownership

As a partnership

business, it is running with the different amount

of equity

of the owners

Advisors & Auditor

Legal Advisor: Md. Abdul Sattar Advocate,

Dhaka Judge Court Mob- 01745865041 Auditor:

Md. Tahmidul Ahmed Sr. Auditor

Mawla Mahammad & Co. Mob- 01819220110 Page 17

Name

Percentage

Md.Imtiaz Alam 15% Asikur Rahman 15% Habiba Anam 15% Sayla Jaman 15% Sk.Md.Hadin 15% Md.Mamunur Rahman 15% Farzana Rahman 10%

Manufacturing Segment

Location Analysis

We choose Ashulia for our factory and administration office. We have rented a suitat Gulshan-1(Road-8, Plot-2, Dhaka 1212) to provide a quick service to our respected customer,both commercial and residential.

Reasons behind locations

Now-a-days, finding a big empty land is really tough in our country, that’s why we had to move to Ashulia a get a quit bigger place for our factory and administration building. It’s near the main road as shown on the map.

As our main customers are from high and middle class level, we choose Gulshan as our regional office. Because we have to response to our valued customer quickly.

Production Machinery

For factory use:

* CO2 Carpet cutting Machine by laser FOB Price: US $7000 / Set (560000 Tk.)

Features

1. Fast and continuous cutting 2. 2500mm*3000mm working area 3. Auto feeding system

FOB Price: US $ 4000 / Set (320000 Tk.)

Features

1. Easy operating

2. Low electricity consumption 3. Manual cutting enable

* Plastic carpet making machine

FOB Price: US $ 10000 / Set (800000 Tk.)

Features

1. Low cost production facility 2. VGA monitor display

Model: EBT P163

Installation Equipment:

* Artificial Lawn Comber (Combs the lawn)

* Turf Layer(Layers Turf to be placed correctly)

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Sources of raw materials

We import our necessary raw material from China and are imported from these fabulous companies

1. Qindao Zhongxinda Rubber Plastic Co. Ltd Province: Shendong, China.

2. Strawman Artificial Grass Co. Ltd Province: Jiangsu, China

3. Hangzhou Green Valley Rubber Products Co. Ltd

Manufacturing Process

Labor Supply

Labors will be appointed by daily basis. Factory labor, who will work on production, packaging sector and supply sector, will be paid daily. They will work in two shifts, from 7.30 AM to 12.30 pm and 1.00 pm to 5.30 PM. Overtime work will be paid an extra amount of 5% of their daily income.

Manufacturing Cost Data

Particulars

Cost

Material Cost 1000000

0

Utility Cost 285144

Labor Cost 3456000

Factory Overhead Cost 736560

Total 1447770 4

Marketing Segment

Problem Identification

Our product will help people

to- Relief from monotonous life

 Make them feel that they are close to nature  Enhance beauty

 Resist heavy use

 Make fields more usable

Situation Analysis

Market Summary

As our business derived from a unique idea ‘Green Shadow’ is all alone in the grass carpeting market. Especially in production segment, because we make turf here. So, we need to start from the beginning. It’s quit tough but challenging for us. But we are expecting a positive mark from our customers.

SWOT Analysis

S t r e n g t h s S t r e n g t h s W e a k n e s s e s W e a k n e s s e s O p p o r t u n i t i e s O p p o r t u n i t i e s T h r e a t s T h r e a t s S W O T

Marketing Strategy

Market Segmentation

At the very beginning of our business, we have focused on Dhaka City. Based on our primary goal “To make a greener Bangladesh” we have to first introduce our product at Dhaka City. At its high classed places. They

are-1. Gulshan 2. Banani 3. Uttara 4. Dhanmondi 5. Bashundhara

After achieving our goal, we will move on to our next steps by establishing our new shops at Chittagong and Sylhet.

Target Market

According to income we targeted high level customer. Our main target are given below- House  Sports field  Hotel  Racing track  Empty fields(Unused)  Commercial building

Marketing Mix Analysis

1. Product

Uniqueness:

We are the 1st _{organization in Bangladesh who provides artificial turf. We can attract}

attention from all kinds of people by presenting our unique product using various method of advertising.

Features:

 We use high quality turf

 Our raw material is imported from China  We have trained team of worker

 We take order by facebook and our official website  Benefits:

When a customer uses our product, we can assure that all kinds of turf are high quality and can get quick response from us at any question. That’s why they can count on us.

2. Price

 Football Turf- 18$ Sq./ft  Welcome Mat- 2.5$ Sq./ft  Lawn Turf- 12 $ Sq./ft  Anti Slip Carpet- 2.5$ Sq./ft

3. Place

We have contracted with some stores and hotels at various place of Dhaka city.  The Westin Dhaka (Lawn and garden)

 Siemens House (Rooftop)  Kurmitola Golf Club (Partial)

 Bangabandhu National Stadium(Partial)  Our main showroom

4. Promotion

*Advertising:

We will take the advantages of modern technology to advertise our product. Examples are given below

1. SMS Subscribing

We have contracted with 3 mobile phone operators to send an informational SMS to subscribers weekly.

2. Opening groups and pages at facebook

By opening official fan page at facebook.com we can show our product’s picture on their wall and sending messages.

3. Youtube Channel

With the help of video streaming website youtube.com we will upload latest videos on our channel we will be able to take people’s attraction.

4. Billboards

Billboard is a common way of advertising. We hired 13 billboards for advertising our product.

*Sales Promotion

1. By sending a sample and a picture of our product to all kinds of people 2. By sending a video disc to a specific class people

3.Reducing the installation cost 15% for first 50 orders

4. Sending a leaflet in newspaper by introducing our product to people 5. First 50 welcome mats will be sold at 2.5% discount

* Internet Based Promotion

1. Customers who will order a certain number of oder by our official web site within 1st _{7 days of promotion, will get a chance to pay a trip to visit Kualalampur}

with 500 $ cash.

2. Facebook users will get a link to free download of cover photos of our product. 3.Youtube videos will include the interview of 1st _{50 customers with their}

Corporate Social Responsibility

According to our slogan our 1st _{importance is make our society more naturally}

beautiful, to make people feel that they are closer to nature than ever before. So we have to take care about the quality of the product and also we are trying to use less harmful materials which can affect our environment. If we make our business profitable, we are planning to donate some charitable organization. We will try our level best to do

these- We’ll try to reduce the unemployment problem of a good number of people

 Our product won’t have any harmful effect on environment

 If we can achieve our desired mark of profit, we will donate to acid survivor fund

 Contributing on road development

 We will distribute a number of tree plants on rainy season  Raising awareness for preventing ‘AIDS’

 Raising awareness about ‘Breast Cancer’

Cost of Project

Our all the costs of project are given bellow.

Particulars

Amounts

Land & Site Development 40000000 Building & civil works 15000000 Plant & machinery 1700000

Pre-operative cost 2500000

Vehicle 6000000

Furniture 1100000

Miscellaneous fixed asset 1500000

Office equipment 500000

Production cost 14477704

Total 82777704

Means of financing

Capital structure

As our business type is partnership, it’s financing will be made in two ways

Equity finance

We will be all together ten partners in our business. Each of our partners will invest equally. Each will bring 49666623 Tk as capital.

Name of Partners

Percentage

Amount

Asikur Rahman 6% 49666623 Md.Imtiaz Alam 6% 49666623 Habiba Anam 6% 49666623 Sh.Md.Hadin 6% 49666623 Md.Mamunur Rahman 6% 49666623 Sayla Jaman 6% 49666623 Sumaiya Rubaiyat 6% 49666623 Farzana Rahman 6% 49666623

Md.Mohaimenul Islam 6% 49666623

Md.Asif Shahriar 6% 49666623

Debt finance

We will also take loan from bank for our financing. We will take 33111082 taka from DBBL bank against of 13% interest.

Year Loan

Installment Loan at thebeginning Payment Interest @ Principal 13% Repayment Loan at the end of the year 1 9413962 33111082 4304441 5109521 28001561 2 9413962 28001561 3640203 5773759 22227802 3 9413962 22227802 2889614 6524348 15703454 4 9413962 15703454 2041449 737213 8330941 5 9413962 8330941 1083021 8330941 -Page 35

Cost of Production

Total Cost of production

The total cost of

production-Particulars

Cost

Material Cost 10000000

Utility Cost 285144

Labor Cost 3456000

Factory Overhead Cost 736560 Total 14477704

Material Cost

We will use two types of material. The all costs of the materials is given

below-Raw Material

Name Cost Green EPDM Rubber Granolas 1800000

Rubber Artificial Grass 1200000

Glue Water 1500000

PE Artificial Grass Mat 2000000 Artificial Grass Adhesive 1500000 Total

_8000000

Installation Material

Name Cost

Artificial grass non-woven-felt 1200000 Artificial grass joint tape 800000

Total 2000000

Total cost of material

Utilities Cost

We will use electricity, gas, water, telephone, internet etc. The costs

are-Particulars

Cost

Water 3744 Gas 5400 Electricity 120000 Internet 96000 Tnt 60000 Total 285144

Labor Cost

All the labor costs are given

below-Particulars

Cost

Production Worker Labor 2400000 Tech Team Engineer 744000 Installation Workers 312000 Total 3456000 Page 37

Factory Overhead Cost

In our project, there will be some factory overhead costs, which are given

below-Particulars

Cost

Maintenance 66000 Insurance 99600 Tax 516960 Others 54000 Total 763560

Working Capital

Our working capital is given below

Particulars

Cost

Material cost 833333

Utilities cost 23762

Labor cost 288000

Factory Overhead cost 61380

Income Statement

Particulars

Amount

Taka

Taka

Sales Revenue

Less: Cost of Production

Gross

Profit-Less: Opening Expenses Administration Expenses Selling Expenses

Pre-operative Expenses

EBIT(Earnings before Interest & Tax) Less: Interest 13%

EBT(Earnings before tax) Less: Tax @ 25%

EAT(Earnings after tax)

566700

0

650000

250000

0

3270000

0

1447770

4

18222296

8817000

9405296

4304441

5100855

1275213.75

3825641.25

========

Page 39

Profitability Projection (5 years)

Capacity Utilization

40%

50%

60%

70%

90%

Particulars

2013

2014

2015

2016

2017

Sales Revenue Less: Cost of Production Gross Profit

Less:

Operating Expenses-Admin Expenses Pre-operative Expenses Selling Expenses EBIT Less: Interest @13% EBT Less: Tax 25% EAT 32700000 14477704 4087500016112704 4905000017747704 5722500019382704 7357500021017704

18222296

5667000

2500000

650000

24762296

5657000

2500000

800000

31302296

5647000

2500000

950000

37842296

5637000

2500000

1100000

52557296

5627000

2500000

1250000

9405296

4304441

15805296

3640203

22205296

2889614

33678596

2041449

43180296

1083021

5100855

1275213.75

12165093

3041273.25

19315682

4828920.5

31637147

7909286.75

42097275

10524318.75

3825641.25 9123819.75

14486761.5

23727860.25

31572956.25

Conclusion

We are going to start our organization with the motto “Greener world, better tomorrow”. We will try our level best to deliver the best quality product and service to all kinds of people-customers, employee, bank and partners.

As Bangladesh is a developing country, our focus is on all kinds of people. Because if we focus on a specific class of people, we won’t be able to reach our goal and in the long run, we will fail.

Based on our economic condition we will try our level best to reach to all kinds of people and deliver our product.

Business is not just ‘Business’. That means we have a lot responsibility to our society and country. We will try to contribute on social welfare works. Like- Planting more trees, raise awareness of breast cancer. That is how we are going to start our business.

Reference

We used these sources to find our required information.

Websites:

 en.wikipedia.org  alibaba.com  actglobalsports.com  facebook.com  youtube.com  made-in-china.com



dhakacity.olx.com.bd

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