SME
Investment/Business
plan
MILL - Production of wheat flour
BUSINESS PLAN DRAFT
|
|||
1.
|
Business
plan/project:
|
Production
of wheat flour
|
|
2.
|
Investor
/ Executive:
|
Almir
Tahirović, MA
|
|
3.
|
Investment
products.
|
Establishment of new wheat flour production plant-mill in
Una-Sana Canton (Cazin), in Bosnia and Herzegovina (northwestern part of
Bosnia and Herzegovina, 5km from border with European Union (Croatia)). This
region is populated with 300.000 inhabitants who use 1000 tons of wheat flour
type 500 per month, and every kilogram is being imported or transported from
other cantons or countries. This plan presents production of 400 tons per
month, where every kilo would be marketed in home market within 100km from
the production. Also, there is a high demand from Turkey and European Union
for wheat flour, but Turkey as no import fees for flour of this kind produced
in Bosnia and Herzegovina, therefore capacity for production can be much bigger.
Production of 400 tons per month is very
profitable and demands lower number of labor (up to 15 max, but can be done
and with 10 max), less transport logistic, and can be marketed immediately
aftter the production.
Products to be produced:
-
Wheat flour TYPE 500
-
Wheat flour TYPE 850
- Cattle wheat flour |
|
4.
|
Location
|
  |
|
5.
|
-Purchase
of used mill production plant: 200.000,00 EUR
-working
capital: 200.000,00 EUR
(mostly
for the purchase of wheat grains)
TOTAL
investment--------------------
400.000,00 EUR
The funds are necessary to buy production
plant which stopped to work after an owner died. Production plant is located
between Cazin and Prijedor, and the railroad passes through the plant (which
is a huge advantage for further capacity improvement and import of grain
wheat via railroad).
Investor will invest in acquiring
realestates and production plant. In the start management will import 1000
tons of wheat in grain for the production, which is enough for production
cyclus of 90 days, and further self-financing and investment return after 120
days.
Mill capacity is:
331 tons of wheat flour type 500 per month. (this can be doubled).
Placement of products:
1. The buyers are secured for this
capacity in domestic market. Region Una-Sana Canton uses more than 1000 tons
of wheat flour type 500 per month. Every major buyer is familiar to the
management, and will become our buyer.
2. Export. Turkey is demanding
wheat flour from Bosnia. Quantity cannot be done in Bosnia, that big demand
is. Turkey has no import fees for the wheat flour produced in Bosnia and
Herzegovina. Complete second shift would be for export in Turkey.
|
||
6.
|
Sources
of funds
|
Domest
sources: 0 (know-how).
External
sources: 400.000,00 EUR.
|
|
7.
|
Loan
|
Purchase
of production plant and real-estate.
|
|
8.
|
Investment
start date
|
01.10.2016.
|
|
9.
|
Investment
start date
|
01.11..2017.
|
|
10.
|
Projected
full production:
|
- Volume:
1.Flour type 500: 331.200 kg / month
2. Flour type 850: 46.000 kg / month
3. Cattle wheat flour: 82.800 kg / month
- Number of employees: 10
|
|
11.
|
Economical
period of business development
|
3 month
/ 12 months
|
|
12.
|
Financial
indicators
|
- Quick ration
- NSV
- ISR
- Investment return
|
|
13.
|
Currency
|
1 EUR = 1,955830
KM
|
|
14.
|
Revenue
projections per year:
|
1 month:
T500: 77.269,00 KM (price per unti 25/1; 6,75
EUR with VAT)
T850:
13.170,00 KM (cijena 25/1; 7,00 EUR with VAT)
P.Stoč: 22.860,00 KM (cijena25/1; 6,75 EUR
with VAT)
TOTAL
MONTHLY INCOME REVENUE:
113.299,00
EUR
INCOME
REVENUE PROJECTED in FIRST YEAR:
1.359.588,00
EUR
|
|
15.
|
Costs
of units sold in TOTAL for 3 years:
|
1.100.417,00 EUR
|
|
15.
|
NET
INCOME projection for average in first three years:
|
259.171,00 EUR
|
|
Almir Tahirović, MA
Ul. Žrtava domovinskog rata A2/37
77220 Cazin
Bosna i Hercegovina
T: 00387 /0/61 735 067
