PROJECT NAME : SUPER TASTE DRINKS

PROJECT TYPE : MANUFACTURING CORDIAL DRINKS

OWNER : CLARENCE TAWANDA KUFAKUNESU

I.D No : 86 – 040521E86

LOCATION : BELVEDERE, HARARE

POSTAL ADDRESS : 11 PRINCESS ROAD

PHYSICAL ADDRESS : 11 PRINCESS ROAD

CONTACT DETAILS (cell) : +263773 659 523/ +263718 574 861

Email : clarencetk@yahoo.com / clarence198731@gmail.com

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Manufacturing Cordial Drinks

Introduction

Indications are that in the Zimbabwean economy, most small scale projects are now engaged in direct
manufacturing and supply of locally produced products creating a smaller base in the reliability of
imported products. In this case, there is high growth in supply of locally produced/manufactured
products. This has also created high demand for locally produced products. This project seeks to
support the vision 2030 which states that if we are to achieve Vision 2030 as a nation, our
industrialisation strategy must be anchored on three key pillars, namely industrialisation,
competitiveness and regional integration as we turn the country from an exporter of minerals and
primary products to a key global net exporter of processed goods.

Background

Since the launch of the finance scheme to empower youths by funding their various small projects, a
lot of youths have grossly undertaken manufacturing projects which seem to be the most common/
this has resulted in high demand for locally produced products with a body of big products such as
Bally House, Fruitade and Coolsplash seeing an increase in production. My research has revealed that
there is need to also have projects that would produce products for these sector also on small scale as
demand is high. This creates an opportunity where we as youth would create interaction between our
projects and support each other, as our projects would depend on each other.

Location

The project would be located at Belvedere, Harare.

Project Description

The project intends to manufacture Super Taste cordial drinks. The reason being that these projects
are the most vibrant at the moment. The project would also produce ready to drinks 400ml, mineral
water 2litres and 5litres. Our main target is the formal and informal market. Our objective is to
produce quality products that are affordable to everyone. This project would focus on four flavours
which are Orange, Lemon and Lime, Passion and Pineapple (2litres and 5litres). Our drinks would be
formulated in conformity with the Standard Association of Zimbabwe(SAZ). Research has already
been done and samples produced and distributed to ensure that when we receive funding, the project
will go well and at every stage. At the moment the business is being run at a small scale.

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Project Requirements

The essential component of our project is the ingredients. At small scale we require the following
which should be acquired through the loan.

 Concentrates for all four flavours

 Mixer
 Packaging
 Labels
 Plastic Drums
 Sugar
 Shrink Wrapping Guns

The project requires us to buy promotional materials like t-shirts, caps, masks, pens, etc and print
posters and fliers as well.

Method of Calculation

The project requires funding to the total of US$ 2 500 – 00 to be used as follows:

1. Equipment required
 Grinding Mill - 2 900 – 00
 Oil Press Machine - 3 500 – 00
 Stock Feeds Mixer - 4 500 – 00

10 900 – 00

The Total cost includes ancillaries as confirmed by the supplier. The proprietor will contribute
1000.00 as his contribution. The grinding mill and oil press machine will be bought first and the feed
mixer will be bought after two months from income generated by the project.

Inputs

Initially we require at least the following quantities of grains and supplements to kick start our
project.

2. Inputs
Soya beans 1tonne @ $ 600 – 00 = 600 - 00
Maize 3 Tonnes @ $ 250 – 00 = 750 – 00
Sunflower Seed ½ tone @ $ 400 – 00 = 200 – 00
Other grains (approximately cost) = 200 – 00
Supplements (approximately cost) = 100 – 00

TOTAL COST = $ 1 850 – 00

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This does not include initial operational and establishment costs which are to be funded by the
proprietor.

Some of the operations would be done on farmer’s needs and specifications where the farmer would
bring this inputs and we will process them into stock feeds as per his requirements. We will then
charge a fee for processing the feeds which is quite cheap.

In the process a by – product which is oil would be purified and sold for human consumption. This
would create more revenue for the project as there is no waste from the process. When soya beans or
sunflower seed is pressed, the by – product or residue is the one that would be used in processing
stock feeds. This translates our project into two in one as we will also be focusing on human needs
also.

Market Analysis

From my research, I have already discovered a bleeding market for the cheap feeds as most scale
players are having difficulties in meeting the cost of stock feeds especially those rearing pigs. So our
product is destined for our counterparts i.e. Youths carrying out Livestock farming projects. With an
increase every year in projects being funded by the government, we are assured that the market base
would significantly increase calling for high demand in stock feeds. We will also target some large
scale farmers who would need to have their produce processed into stock feeds. The intention is not
to only grow domestically, but to also raid the southern region and also dominate, and then the
ultimate goal would be to be dominant on the international market. We have areas in e deserts like
Morocco who rely on imports and in some cases are using genetically modified products; hence our
original product would be very appealing. The main thrust is to put back Zimbabwe as the bread
basket of the continent through economic development.

Marketing Strategy

We have already compiled a database for youth engaging in livestock production and identified quite
a large number of those having challenges in meeting demands for their livestock. These are our
primary target as we are geared to support their projects through provision of affordable stock feeds.
We will also advertise our product to the market.

Sales Projection

We anticipate that our monthly sales would average about 4 Tonnes giving us a Total of $ 9 240 – 00
in processed feeds. We will also be producing an average of 500 litres cooking oil sold at $ 1.50 per
litre. This would also give us sustainable revenue. We also anticipate receiving extra income from
processing which we will charge at an average of 20 % per every Tonne of processed feeds.

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Production and Sales

We anticipate producing about 4 Tonnes of processed feeds every week oil pressing producing an
average of 25 litres per day. The following table best describes our anticipated production and sales.

Inputs Qty/ Day Cost Output/ Exp of Output

Tonne

Soya Beans 1 Tonne 600 – 00 20 litres 20 litres

Sunflower seeds ½ Tonne 200 – 00 10 litres 5 litres
Blending agents 50 – 00

1 ½ Tonnes 6 200 -00 25 litres

On daily basis we will produce 25 litres of cooking oil that is to be sold at $ 1.50 per litre. On
monthly basis our total revenue from oil sales would translate to US$ 750 – 00.

Stock Feeds

On full capacity we will be producing a total of 4 Tonnes processed feed per week. This would
translate to 16 tonnes per month at a total cost of $ 412 – 50 per Tonne to give us monthly cost of $ 6
600 – 00 including supplements. Each Tonne of feed would be sold at $ 577 – 50 to give us a total
monthly revenue of $ 9 240 – 00.

For the first two months our capacity would be 50 % and 75 % respectively and full capacity would
start in May.

Our total monthly consolidated revenue is expected to be US$ 9990 – 00.

Sales Projection

  Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb
Stock 924 924 924 924
feeds 4690 6930 9240 9240 9240 9240 0 0 0 0 9240 9240
Oils 750 750 750 750 750 750 750 750 750 750 750 750
999 999 999 999
  5440 7680 9990 9990 9990 9990 0 0 0 0 9990 9990

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With all of the above we anticipate to have monthly revenue of about $ 9900 – 00

SWOT ANALYSIS

Strength

 An increase in livestock and farming small projects ensures us that demand for our products
would increase. As most farmers would need to feed their animals. There are few projects of
this nature being undertaken.

Weakness

 Lack of specialized equipment due to limited funding.

 The project has limited capacity of production because of small machinery.
 Lack of collateral to source funding from big institutions to increase capacity.

Opportunities

 Ever growing agriculture production.

 Financial support from government.
 Empowerment of youths by the government.

Threats

 Established companies with goodwill and large players such as Agrifoods, National Foods and
Windmill.

Conclusion

I anticipate that the project would assist most small scale farmers if funding is received. We intend to
take the project to greatest levels and become one of the players in Agro processing Industry like Agri
Foods and other major players. This project will create direct and indirect employment thereby
complimenting government’s efforts to empower youths.

Assumptions to the Cash Flow

 We anticipate that if funding will be received in March and all the necessary equipment would
be bought and production kicks off.
 Interest on loan has been assumed at 10 % per annum.

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