IMANI HAVEST LIMITED
BUSINESS PROPOSAL
EMAIL: info@imanih.com
Tel: 256 770 773 444
TABLE OF CONTENTS
page
Executive Summary 3
1.0 Introduction 3
2.0 Business Concept 4
2.1.1 Inputs sourcing and processing 4
2.1.2 Production Technology, management and Harvesting 4
2.1.3 Packaging and marketing 5
2.2 Research 5
2.3 Integration of farmer- factory processes 5
3.0 Market analysis 6
4.0 competition and competitive Advantage 6
4.1 Competition 6
4.2 Competitive advantage 6
5.0 Marketing plan 6
6.0 Resources requirement 7
6.1 Technology 7
6.2 Personnel 7
6.3 Outsource Services 7
7.0 Financial Plan 8
7.1Total Investment 8
7.2 List of machinery 9
7.3 Revenue Projections 9
7.4 Expenses projections 10
7.5 Income Statement projections 10
7.6 Key assumptions 10
8.0 Conclusion 11
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EXECUTIVE SUMMARY
TRODUCTION
Imani Harvest Limited, is a fruit processing plant company which will be drying
fruits mainly tomatoes and pineapples purchased from the local farmers and
export them to Europe.
The company will be targeting both profitability and community impact. The
company wishes to develop the area on a sustainable basis bringing about socio
economic transformation, providing both direct and indirect employment to the
local farmers, the youth and locals.
The project of the company will have a factory for washing, drying and storing
fruits as well as a water treatment plant and offices.
1.0 INTRODUCTION
TRODUCTION
Imani Harvest Limited is registered as a limited liability company in accordance
of the Company’s Act of the government of Uganda.
The company was incorporated on 17th June 2020 and its shareholders are
Nkwaya Paul and Kabandana Aline of P.O.BOX 261058 Dubai United Arab
Emirates. Each shareholder holds 50% of the total share capital of USD 50,000.
Imani Harvest Limited is situate on Plot 544 Kampala industrial area Namanve
industrial park and the company owns a farm land on plot 3 Singo Block 290
land at Bugolo Estate Mubende measuring 513 hectares.
The company intends to work very closely with the local communities, farmer
groups, Local Government, Central Government and other key development
partners to see that this project is a success. The company seeks to invest about
$ 9,167,457 for the phased investment implementation.
1.1 Company Vision
“To be the leading integrated value chain exporter of the best high-quality fruits,
as well as creating opportunities for local farmers, while providing worldwide
customers with the highest quality dry fruits.”
1.2 Company mission
To foster social and economic development by enhancing value addition of fruits
and local farmers and communities development in Uganda.
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2.0. THE BUSINESS CONCEPT
Our business is based on strategically integrating various processes within
factory, as well as outside the factory as follows.
INTEGRATION OF VALUE CHAIN PROCESSES:
FARMER INPUTS PRODUCTION PACKAGING
MANAGEMENT SOURCING AND TECHNOLOGY, AND
PROCESSING MANAGEMENT MARKETING
AND
HARVESTING
2.1.0 FARMER MANAGEMENT:
The business will focus on providing pineapple and tomatoes farmers with
appropriate training skills so as to achieve the required quality fruits
consistently, efficiency and sustainable. These trainings will be made by
agricultural experts who will be outsourced by the company.
2.1.1 INPUTS SOURCING AND PROCESSING:
The fruits will be sourced from trained farmers in terms of quality as per the
customer required standards and no wastage is expected This will ensure
controlled quality of the fruits.
The major quality requirements will be farmers harvesting organic fruits without
any pesticides used, and chemical components in soil and water treatments
2.1.2 PRODUCTION TECHNOLOGY, PRODUCTION MANAGEMENT
AND HARVESTING
Modern energy saving machinery and equipment will be used in drying the fruits
as well as conserving the recycled water system
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2.1.3 PACKAGING AND MARKETING
Our products will be packaged in 10kgs and be sold ex-works. All packaging will
be food material. Transport will also have to be atmosphere controlled.
2.2 RESEARCH
During the pilot project, we carried out research in fruit products available,
market intelligence, quality and standardization, support services, partnerships,
farm management, land use management and these findings will be used at each
stage.
2.3 INTEGRATION OF FARMER- FACTORY PROCESS
Dry only quality fresh
fruits
Identify critical performance areas in
the business process. Design strategies Use trainings to farmers as a tool to
to intervene in those areas in order to obtain the required standards
increase efficiency
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3. MARKET ANALYSIS
Although there is growing dry fruit export marketing in Uganda, the demand
for quality dry fruits like tomatoes and pineapples is high in the European
markets. In rural areas, the local markets cater for farmers who grow and sell
fruits for local markets consumption and in case of excess production, the
surplus fruits are merely wasted due to lack of value addition. European
markets have an imbalance of fruits availability and they mostly rely on
imported tropical fruits whose availability in the European markets is not
sufficient. This offers an opportunity for Uganda through Imani Company
limited to penetrate and exploit the existing European markets.
4. COMPETITION AND COMPETITIVE ADVANTAGE
4.1 Competition
Our competition includes the following market players, Agro King Uganda
Limited, Gomba Agrarian Producers, Kimatics, Crisgrow Uganda Limited, and
others.
4.2 Our competitive advantage
Our competitive advantage will remain our ability to export majorly two
products for the European market and our proximity to the farmers. We have
vast knowledge about the European markets since we have surveyed the
markets for long.
The relatively short distance and good roads from the farmers to the company
as well as the Entebbe airport will also be to our advantage.
The contacts we have developed with the European markets as well as the local
fruits suppliers within the region gives as a greater edge.
5. MARKETING PLAN
We anticipate to gain sales and market share through direct marketing of our
export European markets.
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6. RESOURCE REQUIREMENTS
6.1 Technology requirements
The machinery and equipment to be used will suite the required moisture
content of our dry fruits as per the specifications of Uganda National Bureau of
standard as well as the requirements of the European union standards. Water
recycling plant will be set up as per the standards and requirement of National
Environment Management Authority.
6.2 Personnel requirements
Role Responsibility
1. The Managing The team leader is the vision bearer and is overall
Director responsible for getting things done.
2. Financial His role is to put in place accounting systems, and
Controller to supervise financial management.
3. Marketing Manager Responsible for overseeing marketing and public
relations. He/she will also be responsible for
coordinating training and other capacity
development activities.
4. Factory Manager Oversees day-to-day production operations at the
factory and also coordinate the value addition
operations.
5. Human Resource Responsible for all staffing responsibilities
Manager
6. Operations Head of all operations services
Controller
6.3 Outsourced services
Service Role
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External auditor To audit the books of accounts at the end of the
year for an independent opinion about performance
Agricultural expert To provide expertise to farmers on behalf of the
company
Casual labors To provide labor as and when required
7. FINANCIAL PLAN
The start-up capital to be invested initially will be $9,167,457 and will be
provided by the two shareholders; Mr. Nkwaya Paul and Mrs. Kabandana Aline
Below are the specifics for investment during the initial stage of operations
CAPITAL INVESTMENT
Property & infrastructure $ 2,500,000
development
Plant, Machinery & Equipment $ 3,000,000
(for value addition)
Trucks & support Vehicles $ 200,000
WORKING CAPITAL
INVESTMENT
Fruit purchases $ 800,000
Salaries $ 1,000,000
Farmers Training $ 100,000
Insurance $ 170,000
Marketing & Distribution $ 100,000
Professional fees $ 200,000
Other Running costs $ 1,097,457
$ 9,167,457
TOTAL INVESTMENT
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7.2 LIST OF MACHINERY
Phase I Phase II
Washers
107,096
Cutters& Peelers
172,600 300,000
Dryers
504,900 504,900
Cold rooms and freezers
394,200 200,000
Hygiene Equipment
203,600
QC Equipment
405,800 405,800
Generator & Boiler
234,400
Water Treatment plant
157,800 157,800
Trucks
80,000 160,000
Crates & Pallets
168,400
Panels
525,200
Steel Structures
246,004
TOTAL 3,200,000 1,728,500
7.3 REVENUE
The company’s revenue will be derived primarily from the sale of dried
tomatoes and pineapples ex-works.
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7.4 EXPENSES
The company’s expenses are primarily those of salaries, insurance and utilities.
7.5 INCOME STATEMENT PROJECTION
Year 1 Year 2 Year 3
Sales $4,091,850 $8,183,700 $12,275,550
Tomatoes $2,882,250 $5,764,500 $8,646,750
Pineapple $1,209,600 $2,419,200 $3,628,800
COGS $1,514,704 $3,029,407 $4,544,111
Gross Margin $2,577,146 $5,154,293 $7,731,439
Operating expenses $3,467,457 $3,878,203 $4,342,823
Salaries $1,000,000 $1,100,000 $1,210,000
Marketing $100,000 $110,000 $121,000
Insurance $570,000 $627,000 $689,700
Electricity $350,270 $385,297 $423,827
Fuel $807,187 $887,906 $976,696
Depreciation $640,000 $768,000 $921,600
Net Operating Before Tax -$890,311 $1,276,090 $3,388,616
7.6 KEY ASSUMPTIONS
Quantities purchased: 5,124tons of tomatoes and 2,304tons in the first year
and a 10% growth afterwards. Purchasing cost from local farmers will be $219
per ton and $152 per ton for tomatoes and pineapples respectively.
Dried tomatoes are to be sold at $ 2.50 and dried pineapples at $3.
Packaging is estimated at $0.012/kg.
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Insurance: 10% of assets.
Our initial projections indicate profitability by the second year.
8.0 CONCLUSION
Given the specific advantages, opportunities and strengths including the
experience of its technical staff in dealing with the rural communities, and the
international markets, Imani harvest Limited’s Implementation of its business
proposal will not only improve the livelihood of farmers within Mubende and the
surrounding region but will also provide vast employment opportunities to many
Ugandans as well as meeting the expectations of all stakeholders involved.
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