Sugarcane Juice Business Plan

Executive Summary

We are the students of BBA from AIUB; under kind supervisor of sir MD. Mostofa Jaman started to work on new and innovative idea that has not been before in Bangladesh. As a step towards growing entrepreneurship in Bangladesh we students of AIUB have a tradition to present our new and innovative idea in front of people which could benefit the job situation in Bangladesh and so that we could become job givers not job beggars.

 Sugarcane juice industry is a business idea that deals is product. Our product is sugarcane juice in tin pack or pet bottles. Sugarcane juice is widely used in summer season because of its taste and low costs. Now in many countries it’s produced on chemical basis and there sales are quite high especially in Middle East countries. This juice is widely used in hot weather conditions.

                                      Industry Environment

Over view of the industry

Our business is the part of fruit & vegetable industry of Bangladesh. Agriculture is the largest income and employment-generating sector of Bangladesh. About two third population of the country resides in rural areas and directly or indirectly depends on agriculture for their livelihood. The sector is an important source of demands for its products.

Company Locations and Facilities

We select our industry location in Ashulia, Gazipur because we collect most of our sugarcanes from the north Bengal. The transportation system with north Bengal to Ashulia is very good.

Potential customers

Our potential customers will be every kind of individuals like:

v  Students at every level.(from school to universities)

v  Employees who work the entire day in hot condition.

v  Households, passengers.

In summer season every kind of people with no age limit use this juice, because most of the people avoid unhygienic products. Initially we will only limit our geographical scope to Dhaka and then after initial success we will expand our target segments. We expect we will cover almost 30%-40% of  Dhaka’s population which could be almost one million we expect that out of these 30%-40% we will capture 60%-70% of the market.

Direct competitors

We don’t have direct competitors in our product however in substitute products we have mainly big companies like: Pran, Shezan, Akiz, Partex etc.

                           Marketing

Business opportunity

This is the business plan of a partnership in the name of Sugarcane juice. The plan is to process and market the high-quality sugarcane juice. First time in Bangladesh, juice will be preserved in tin pack keeping them as fresh as at time of extraction. Till now market deals in fresh fruit juices which can be easily preserved however this idea has not been catered yet.

Collecting raw materials

Bangladesh country is an agricultural country. In North Bengal the farmers produce a huge amount of sugarcane. So it is a great opportunities for us to collect our raw materials. 1^st year we buy our raw materials from those farmer. On the other hand in that year we leas 450-500 acres of land from the farmers and produce sugarcane in those land. Our sugarcane production will be increase if we grab the market.

Company impact

Sugarcane juice is widely used because of its sweet taste and being a solution to different health problems. The cost of production and raw material is not so much. It needs not to be marketed so much because it’s a new thing which people will try and love a lot. Simply we can place it in universities cafeterias, gourmet franchises and grocery shops, the only thing we must do is to ensure its shelf life and long time preservation time.

Company strategy

In first year, our company will market in Dhaka. Dhaka will be sole market for first year. Then looking through our sales history we will expand our business opportunities to other big cities of Bangladesh. More products that will be processed in same way and will be included in product line after making a good repute in the history.

                              Operation

Organizational structure

“AAA” is an organization that will be legally formed as partnership firm. The partners will be Afroja Islam, Wasif Sabbir Hossain, Jabir Rahman, Shubo Saha and Md. Yusuf Raihan. Each partner will contribute 20% as initial investment in business.

Key management personnel

4 important departments will be there:

Purchasing and logistics

Mr. Wasif Sabbir Hossain with one assistance (employee) will be responsible for all operating materials purchases at best possible rates and delivering at the appropriate time, use of just in time inventory.

Production and Financial operations

Md. Yousuf Raihan will be responsible for qualify production process. He will also be responsible for financial records and accounting. Md. Yusuf Raihan needs the following staff at the plant in the process.

Process workers (1)

Marketing

Miss Afroja Islam is our marketing researcher. She alone with assistance of Jabir Rahman is responsible to design promotional campaigns and do art work for advertisement. Their main task is to work in celebration with sales department to create demand opportunities and find out new market segments.

Warehouse Management and sales

Mr. Shubo Saha will be responsible for managing finished goods inventory in Dhaka Warehouse and office and to go generate sales per decided and approved credit terms from financial department.

Machinery requirement

We use few kinds of machinery in our industry. Like crusher machine for crash sugarcane, filter machine for filter the crushed juice, labeling machine, can lid machine etc. Our plant capacity will be 3500-4000 Liters per day.

       Preservation system for sugarcane

 Aqueous ammonia (28% NH3 w/v) was mixed with 500ml batches freshly extracted sugarcane juice at level of 0, 0.5, 1.0, 1.5, 2.0, 2.5 and 30% (w/v). the mixture were at a room temperature is sealed glass containers for 7 day period to measure changes in pH and Brix of the juice.

Result for pH & Brix during 7 days after treatment are shown in Table 1. It gives the trends in these measurement for aqueous ammonia level of 0, 0.5, 1.0, 1.5 and 2%. Results for higher concentrations were identical to those for 2% aqueous ammonia. It is obvious that ammonia works well as a preservation especially if fairly high level are used, at level above 2% w/v the juice becomes less palatable for cattle and such situations if should bereft to stand until the excess ammonia dissipates. It has been suggested by Leng and Preston (1976) that the optimum level of available nitrogen in the rumen to ensure optimum synthesis of microbial protein in 3 g N/100 g of fermentable organic matter. Taking this case of cane juice at 14 Brix, then this world require about 1.5% (w/v) of aqueous ammonia (28% NH3 w/v) in order to provide the required amount of available nitrogen for microbial protein synthesis.  In the experiment reported here, the inclusion of from 1.5-2.0% aqueous ammonia in the sugarcane juice, thus provided the necessary amount of Nitrogen for rumen systematic protein and also preserved the juice over 6 days.

     Investment and Projected Financials

Capital investment

Business will be started with total capital of BDT 10,000,000. Each of five partners contributes 20% capital.

Investment	BDT
Security payment for 10 Marla building Plant & machinery Labeling machinery Can lid selling machinery Working capital             Total	200,000         4,060,000              90,000            110,000         4,662,000         9,122,000

Operating investment before earning	BDT
4 months rent of plant building Wages for approx 2.5 months Approximate initial recruitment cost Initial utility bills             Total	160,000            100,000              20,000              40,000            320,000

Surplus= (10000000-9122000) =878,000

Surplus will be used to purchase operating materials for supplies for starting production.

   RA!HAN