Sample Business Plan for XXXX Watermelon Juice, Kano, Nigeria
| Author | IFDC | |
| Jurisdiction: | Nigeria | |
| Date of acession | 2023-05-03T11:34:11Z | |
| Date of availability | 2023-05-03T11:34:11Z | |
| Date of issue | 2014 | |
| Abstract | XXXX Table Water Limited (TWL), a company owned by reputable promoters, the company was established since 2004 and has since been producing table water and cultivation of arable crops, LTWL has resolved to establish a 2,000 litres per hour watermelon juice processing facility that is not only modern but also efficient. This is based on the need to take advantage of the huge population demanding for fresh fruit juices, out grower farmers cultivating watermelon without proper storage upon harvest and the high wastage due to this lack of storage facility and other features that have occasioned the huge supply gap in Nigeria’s fruit juice market. Watermelon the major raw material for this project, is available in abundance in many states including Kano and Jigawa, where the company will engage with, and start buying fresh fruits from almost 300 farmers whose contact telephone numbers were collected during the feasibility study for this project. This will be achieved through a formal off-taker agreement between the farmers and the firm. XXXX also has a long-term intention of cultivating watermelon on part of its 200-hectare land, in order to take direct control of its own raw material supplies. The projected yield from this activity would be from 100 – 150 tons per annum and the effect on farmers will be minimal. The Nigerian market has several fruit juice producers with differing capacities and thriving under varying conditions. However, the Nigerian market has a opportunities for any discerning investor who emphasizes good quality. As a strategy for ensuring success, XXXX will employ all the appropriate strategies - get the right equipment, hire the right personnel, get high quality raw materials and use best practices in juice making. The company will also emphasize proper maintenance of assets, ensure that have requisite skills, while being diligent with regard to quality control, waste management, regulatory controls, cost management and revenue drive. Funding will be sourced through a term loan of N78million from a borrower-friendly institution such as the Bank of Industry, directors’ loan in the sum of N15million and internally-generated cash from sales of products. Sales will commence with about N112million in the first full year of operations and rise modestly to about N135million by year 3. The Net Present Value of N85,777,890.00, Internal Rate of Returns of 21% and other indicators show that the project is commercially and financially viable. All the risks bordering on finance, supplies, technical efficiency, power supply, market and construction have been carefully considered and appropriately mitigated. Based on the foregoing, this proposal for the establishment of a watermelon juice processing facility by XXXX Table Water Limited is strongly recommended for funding. | |
| URL | https://hub.ifdc.org/handle/20.500.14297/2112 | |
| Language | en_US | |
| Publisher | IFDC | |
| Subject | Quality control | |
| Subject | Watermelon | |
| Title | Sample Business Plan for XXXX Watermelon Juice, Kano, Nigeria | |
| Type | Learning Object |
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