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Al-Quran
(MUSLIM)
DEDICATED TO ALLAH
The Islamian Business Executives Page 2
Business Plan Yazman Off-Season Vegetable Farm
The Almighty
The Omniscient
The Omnipotent
The Omnipresent
PREFACE
Department Of Management Sciences has always tried to make its
business in order that they can understand & present the concepts
have extremely realized this importance & he use all the tact’s to
Acknowledgement
SPECIAL THANKS
Ch. Islam
o Arian Zarai Farm. Dhnowt
Mr. Jahanzaib Khan
Mr. Salman Azhar
o Lecturer
Mr. Naveed Ijaz, Dhnowt
1. Executive Summary
The Yazmzan Off-Season Vegetables is a business which deals with the off-season
vegetable farming. Business consists of two units, one in located in Chak No.
50/DB, Bahawalpur road Yazman and the other is located in Chak No. 103/DB, near
by Yazman. The sponsors of the project are professionally qualified and have
valuable and extensive experience of business management in industrial fields
namely Shahid Amin, Tariq Aziz, Hassan Raza, M.Khalid Aslam, M.Adeel and
M.Anayat Ullah. The purpose of this business is to provide high quality off-season
vegetables at reasonable prices. Our business plan consists on 6 acres and land
should get on lease. Musharakah agreement is made among the partners. All terms
of profit and loss distribution are clearly mentioned in the Musharakah agreement.
All partners have agriculture background, so we manage our bunnies effectively.
Vegetables can be cultivated in off-season, with the induction of an artificial
technique like tunnel technology, in which temperature and moisture is controlled for
specific growth of vegetables. Tunnel technology includes low tunnel, walk in tunnel
and high tunnel. GI pipes, wire, net and plastic cover are used in tunnel technology
as an infrastructure requirement. Different types of vegetables are grown in tunnel
farming like tomato, cucumber, pepper, egg plant, etc. but we focus only on
cucumber, tomatoes, capsicum and bitter grounds. All inputs are available locally.
Hybrid seeds should be used which are also available locally. Off-season
vegetables pass through in different steps like nursery, field preparation, plantation
etc. Mostly off-season vegetables are grown in winter season. For operations we
require 2 additional supervisors and 4 workers. Mostly labor should use on daily
wages because in sowing and picking season more labor is required.
We conduct market research because it is necessary to identify customer and their
needs and wants. Our major market is local while in local we focus in Bahawalpur
and Rahim Yar Khan. For delivery we use direct and indirect channels. For
promotion activities advertisement tool is used. Local news papers, FM, billboards,
etc. are used for advertisement. For further promotion free sampling may be used.
We also develop a webpage for our business which will help us in distribution and
promotion activities as well.
The estimated cost of our project is Rs. 3,507,772. Our total based is equity based.
All partners made equal investment. Our business plan’s estimated life is five
years. The estimated profits for first three years are Rs. 759287, 1213384 and
1929812 respectively. Our business may be fail due to different reasons, so, we must
manage it effectively to avoid its failure.
2. Introduction
Vegetables are major source of vitamins, carbohydrates, salts and proteins. With
increased health consciousness in the general public and changing nutritional
patterns, vegetables are now becoming an essential part of common household’s
daily food. In addition, high population growth rate has also given rise to high
demand in basic nutritional vegetables. Vegetables are used in raw form as salad or
cooked food according to the taste, which provide a balanced diet and keep human
being healthy.
The importance of vegetables cannot be denied due to their nutritional value. There
is a huge demand for fresh vegetables in the local as well as international
markets. The facility of growing off-season vegetables also allows for growing
non-conventional varieties and vegetables, which are in high demand in the
nationals and international market. Increased health awareness, high population
growth rate, changing food patterns and availability of packaged vegetables, has
therefore generated a year round high demand for vegetables in the country in
general and in major city centers in particular. However, our farmers have yet not
been able to exploit this opportunity and still follow conventional sowing and picking
patterns. This results in highly unstable vegetable supply market wherein the market
is saturated with seasonal vegetables irrespective of demand existence on one
hand and very high priced vegetables in off-season on the other. Lack of developed
vegetable processing and storage facility robs our farmers from their due profit
margins. In natural season local vegetables flood the markets significantly bringing
down the prices. In the absence of storage Infrastructure and vegetable processing
industry in the country, off-season vegetables farming is the only feasible option that
can add value to the farmer produce.
The proposed project is designed as a small size off-season vegetable farming unit.
Off-season vegetables, such as, tomatoes, cucumber, Bitter Gourds and Capsicum/
Sweet pepper could be cultivated using walk-in tunnel technology on 6 Acres. The
target customer’s for off-season vegetable are hotels and restaurants and general
people. Products will follow proper distribution channels to reach to their actual
consumers.
of agricultural crops, which are used directly for food as well as a raw material for
processing industry. Vegetables grown in Pakistan are distinctive in taste, fragrance
and are almost natural as very low quantity of chemicals is used in their cultivation.
On other hand our own family background is agricultural. All the partners belong to
countryside and have agriculture experience.
3.2. Objectives
Our mission is to become the high quality supplier of off season vegetables by
earning a reasonable profit, expanding our business to other cities of the country.
We aim to make long term relations with our customers by proving best quality
vegetables grown by using unconventional methods. We are also looking ahead to
build cold storages to support our business.
We are starting business on small scale .We will start our business in the form of
Partnership under the Islamic mode of finance named as”MUSHARAKAH”
Musharakah Agreement:
2. Location of head office : our head office will be located in Ward No. 02
Mohalla Ismail Abad Yazman
4. Our business is about farming and its selling which we produce. Initially we
are going to start our business in Yazman, but in future we will expand it to
other areas of southern Punjab.
Shahid Amin Tariq Aziz Hassan Raza M.Khalid Aslam M.Adeel M.Anayat Ullah
20 : 15 : 15 : 20 : 15 : 15
10. Although all the partners are working Partner but Shahid Amin and Hassan
Raza due to the difference of work will get more profit.
11. All the loss will be shared by all partners according to their capital
investment.
12. In the case of insolvency the valuation and treatment of goodwill will be
according to the Musharakah Rules.
13. Mixing of capital is not required .Shahid Amin, M.Khalid ,M.Adeel and Tariq
Aziz will invest capital in start .Other two will provide capital as and when
needed.
14. All capital will be in liquid form. No one will invest capital other than liquid
assets.
15. Provisions regarding the accounting system and the fiscal year to be used
according to the Musharakah Rules
16. Everything will be decided with mutual consent of all partners in all these
cases of retirement, death and admission of a new partner but will be
according Musharakah rules.
17. Roles should be strictly followed by all the partners so there will be no
dispute if the dispute goes long an arbitrator (Preferably an Alam-e-Din) can
be appointed with the mutual consent of all disputing parties.
18. In the case of breach of duty by one partner, other partners have power to
expel him from the firm but with mutual consent.
20. If any partner wants to leave Musharakah, He will have a right to sell his
share to other partners.
21. Document will be signed and kept by all the partners to prevent any future
misunderstanding and ill will.
22. At the time of liquidation all assets will be sold and amount will be distributed
among the partners equally.
4. SWOT Analysis
SWOT analysis is very important tool to evaluate the feasibility of project. We check
out the strengths, weaknesses, opportunities and threats.
4.1. Strengths
Low cost
Well-educated management
4.2. Weaknesses
4.3. Opportunities
Expanding nationwide
Hybrid seeds that provide higher yield can lead to lower unit cost.
Higher prices can be obtained by producing the right crops, at the right
times and of better quality. They may also depend on negotiating skills
and targeting high price buyers.
4.4. Threats
Pests/insects attack
Floods / Rainstorms
High Competition
5. Industry Structure
The facility of growing off-season vegetables also allows for growing non-
conventional varieties and vegetables, which are in high demand in the national and
international market, almost all types and varieties of known vegetables are grown
in Pakistan. Vegetables can be cultivated in off-season, with the induction of an
artificial technique like tunnel technology, in which temperature and moisture is
controlled for specific growth of vegetables. The production of vegetables all around
the year enables the growers to fully utilize their resources and supplement income
from vegetable growing as compared to other normal agricultural crops. As the
landholding power of farmers is decreasing, they need to increase the productivity
of their available land, off-season vegetable farming is a way through which they
can attain higher profit margins from the crop.
· Tomato
· Pepper
· Cucumber
· Bitter Gourds
· Squashes
· Eggplant
· Water melon
· Brinjal
The off-season vegetables are grown in the areas where the environmental
conditions are suitable for both normal as well as for off-seasons vegetables. Winter
vegetables are sown in summer on hilly/semi hilly areas where climatic conditions
are positive for a particular vegetable. Like wise summer vegetables are grown in
winter season in the valleys. These vegetables are supplied to different markets by
using means of transportation. The transportation of crop over long distance
markets causes post-harvest losses. These disadvantages lead to the acceptance
of non-natural techniques of farming in off-season, nearer to markets to deal with
heavy shipping cost and to reduce post-harvest suffers.
This is a previous technique and is typically adopted close to the huge cities. The
major vegetables grown under this method are tomato, chili, cucumber, and bottle
gourd. The nursery of these vegetables is planted in October/November and a wall
of Sarkanda is affixed in the direction of North South, which protect plant from cold
winds and haze. This method of farming is not favorable because the growth of the
plant tends to be slow, as the plant does not receive required sunshine and desired
moisture.
Through building green houses, the sunlight amount is controlled. The vegetables
under this technique are grown typically in the winter period. Here the temperature,
moisture, carbon dioxide, airing and irrigation etc. is controlled. Green houses can
be built of pure glass or of fiberglass substance. The main shortcoming in the usage
of this technique is intense capital cost.
Farming by this technique is gaining fame because of small cost and trouble-free
practice. Plastic tunnels are transparent which provides required sunlight to the
plants, and the plastic also plays a hurdle against the cool air in winter. Types of
plastic tunnels are as under;
It is cheaper than high tunnel but creates complexity for soil preparation, spraying
and picking. The tunnels are appropriate for cucumber sown flat bed, melons,
watermelons, bitter gourds, squashes, and snake gourds etc. The yield in this type
of tunnel is however low compared to high tunnels.
Walk-in tunnels are lower than the high tunnels but they are gaining attractiveness
as they provide high yield compared to low tunnels. The tunnel is appropriate for
growing tomatoes, cucumbers, sweet pepper and hot pepper.
High tunnel facilitates trouble-free entrance for soil preparation, picking and
spraying due to its width and height. The crop yield is maximum in this kind of
tunnel. The tunnel is appropriate for growing tomatoes, cucumbers and sweet
peppers
Diameter 20 mm
Material Length 20 ft
Length 2 ft
Tunnel Width 12 ft
6. Operating Plan
Vegetables Acers
Tomato 2
Cucumber 2
Capsicum 2
Tunnel material i.e. pipes, Plastic Sheet, Iron Wire, net, is available in local market
from different suppliers. So there is no problem of availability of such materials.
Seeds (Hybrid and Non-hybrid) both are used for off-season vegetable farming.
Major suppliers of hybrid seeds are;
• Haji sons.
We will get seeds from Mian Islam Arain. Fertilizers are very important for any
crop. Fertilizers of all kinds are available locally. Pesticides of different natures are
also available locally. Water is available from canal or in case of shortage we can
get water with the help of tube well.
1. Nursery:
It is very first step in tunnel forming, in this step seeds are sowing in a
separate plot. These nursery or sapling is used for further production.
3. Soil fertilizing:
4. Nursery transplantation:
When land is properly prepared and fertilized then next step is the
transplantation of nursery in the land or seeds are directly sowed in the
prepared land. Nursery must be transplanted in a proper sequence and
proper equal distance.
5. Moisture conditioning:
6. Plant protection:
For the growth of every vegetable or any other crop fertilizers are necessary.
Different types of fertilizers are used for the smooth growth of plantation.
8. Harvesting:
9. Grading:
After the harvesting the next step is the grading of vegetables. Vegetables
are grading or classifying into different varieties according to the quality like
high, medium and low quality vegetables.
The main objective of every entrepreneur is to earn maximum profit. So, after
harvesting and grading vegetables are properly packed and stored in order to
get the maximum price.
11. Shipment/dispatch:
1 Tractor 1
2 Rotavator 1
3 Ridger 1
4 Soil-leveler 1
5 Spray Machine 2
6 Tube Well 2
7 Computer 1
8 Peter-Engine 2
9 Vehicle 1
Note: details of cost are given in financial portion.
• Electricity
• Water
• Telephone
• Fax
November (transplantation)
December
of
November (Transplantation)
7.2. Management
General Manager
Hassan Raza will act as a general manger and will be responsible for management
of business,
Manager Accounts
M.Adeel will act as accounts manager and will be responsible for maintaining books
of accounts of our business.
Manger production
Manger Marketing
M.Khalid Aslam will be our marketing manager. He will be responsible for all
marketing activities of the business.
Manager Personnel
Tariq Aziz will be personnel manager and will be responsible for hiring and training
of workers. He will also responsible to forecast and mange workforce according to
demand.
Labor requirement are not consistent in our product due to the nature of project.
Demand of labor varies with time. At the time of construction of tunnel we have
large number of labor; same case is the time of transplantation and picking. So due
to this varying demand it is not possible /feasible to hire permanent labor. So we will
hire four permanent workers at Rs.7000/month/worker. At the time of tunnel
construction, nursery transplantation and picking we will hire worker on contract.
8. Marketing Plan
Marketing plan is very important part of business plan. Before making marketing
plan market research is conducted.
Market research is a very important aspect of any new business. We try to find
target market, competitors, market growth and market share (expected) with the
help of market research.
In consideration for market size there is no exact figure which you can predict but as
the other businesses have idea of the market, our market size comprises of
Bahawalpur and Rahim Yar Khan. But after some time it will increase to other cities
of the southern Punjab. The entire households are our target market and we will
also supply vegetables to the hotels and restaurants of our target area.
The percent of market capture incase of off-season vegetable will be more than
10% of Bahawalpur and Rahim Yar Khan because there are already competitors in
our region in off-season vegetable farming.
There is a great demand for off-season vegetable and existing vegetables farm are
hardly fulfill demand of target population. The demand of vegetables is increasing
due to increase in population and increase in the prices of chicken, mutton, beaf
and other food items.
8.1.4. Customers
We are directly targeting hotels and restaurants, and households. There are number
of hotels and restaurants in Bahawalpur.
Age
Gender
Location
Income Level
Education
• Jahanzaib khan
8.2.1. Price
The pricing section of the marketing plan involves determining how you will price
your product or service; the price you charge has to be competitive but still let you
to create sensible revenue.
The keyword here is "reasonable"; you can charge any price you want to, but for
every product or service there's a limit to how much the customer is willing to pay.
Your pricing plan needs to take this consumer threshold into consideration. In our
business market forces are price setter but we will try to charge price lower than our
competitors in order to capture market.
8.2.2. Product
We have developed our product to fulfill the demand and desire of people of
Bahawalpur.
Product Line
We have developed our product to fulfill the demand and desire of people of
Bahawalpur.
Tomato
Cucumber
Capsicum
Bitter Gourds
8.2.3. Place
8.2.4. Promotion
Advertising and Promotion part of the marketing plan describes how you're going to
deliver your distinctive Selling offer to your potential clientele. For this purpose first
of all we need a channel through which we can deliver our message to our target
population. This is done through advertising.
8.2.4.1. Advertising
Advertising can be done by using different medias like the Internet , television
,radio, newspapers, magazines, telephone ,books/directories, billboards,
Billboard
Local FM radio
Jewey Pakistan 98
Broachers/hand bills
Stickers
We will also use promotional activities to boost up our sale and to capture market
share.
product demonstrations
The Islamian Business Executives Page 30
Business Plan Yazman Off-Season Vegetable Farm
We have planned to make a website of our business. This will play a major role in
the in distribution and advertising as well.
www.yazmanagrifarm.com
9. Financial Plan
Financial plan
Shahid Amin Tariq Aziz Hassan Raza M.Khalid Aslam M.Adeel M.Anayat Ullah
Natural disaster
Shortage of inputs
May be our business fail due to high competition that we could not
meet.
Our business also fails if no proper inputs are used
We use cost leadership and differentiation strategies to gain the competitive edge
11. Annexure
Financial plan
Six partners should be contributing and all partners contribute on equal basis. So,
each partner contributes following amount:
Shahid Amin Tariq Aziz Hassan Raza M.Khalid Aslam M.Adeel M.Anayat Ullah
S.NO. DESCRIPTION No. of Units Per Unit Cost Rs. Total Cost Rs.
11 Contingencies 2% 31,672
TOTAL 1,615,272
Estimated Sales
Total Sale
Production
Land Production Price Total
Vegetables Quantity Per
Utilized Quantity. Per Sales
Acre. 40kg
40kg 40kg
Seeds
Bitter Gourds
(Packets) 0.5 3 3000 9000
Fertilizers
Sr. Dep.Exp.Rs
No Description Total Cost Rs. .
1,000,00
1 Tractor and vehicle@ 7.5% 0 75000
126,00
2 Rotavator, Ridger and soil-leveler @ 10% 0 12600
Total 412920
Key Assumptions:
861,28
- 1,225,584 1,653,232
Operating Profits 7
1,274,20 1,638,50
- 2,066,152
Total Funds from Operation 7 4
Other Sources:
1,274,20 1,638,50
3,507,772 2,066,152
Total Sources of Funds 7 4
APPLICATION OF FUNDS:
2,882,772 - -
Investment in Fixed Assets -
102,00
112,200 123,420
Lease on Land 0
Financial Charges : -
PAYMENT OF: -
Taxes -
Dividends -
Cash) 0
253,20 634,88
2,907,772 1,649,502
Total Application of Funds 0 0
1,021,00
600,000 1,003,624 416,650
Cash Surplus/(Deficit) 7
600,00
1,621,007 2,624,631
Cash at the Beginning of the Year 0
1,621,00 2,624,63
600,000 3,041,281
Cash at the end of the year 7 1
ASSETS:
CURRENT ASSETS:
FIXED ASSETS:
CURRENT LIABILITIES:
EQUITY:
= 56.37%
Assumptions:
IRR 55.097%
12. Bibliography
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-
online/Regional/Islamabad/10-Feb-2009/Tunnel-farming-can-boost-farmers-income
[Online]. - Febraury 10, 2009.
http://www.scribd.com/doc/22398932/Feasibility-Report-of-Tunnel-Farming-in-
Pakistan [Online]. - 2007.