CEREALS AND BEVERAGES BUSINESS PLAN IN NIGERIA
KUVUKI Cereals and Beverages will is located in Shiroro, Iseyin, due to nearness to raw materials, which hasten up our operation to meet our customers’ demand and shall continue to operate under the statutory name Kuvuki Cereals and Beverages. Our suggested Business address will be P.O Box 3254, Shiroro, Iseyin and our mobile hotline is +234 814 716 1686 for inquiries.
Many factors influenced our decision to make this location the base of operation for our cereals and beverages business, such as infrastructural facilities, a good road network, stable power, and water supply from the ministry of state, and nearness to the largest market in the state.
So far, this organization has been incorporated with the Corporate Affairs Commission of Nigeria. Our registered bank for online payments is accessible by our customers for both cash and online payments. Our point of sales (POS) machine is also readily available to effect your payments. We have secured the business against any loss with the Insurance Company, taxpayers’ I.D. is in progress, and recruiting period is on for interested and qualified employees.
Business Description:
Our company name is called Kuvuki Cereals and Beverages. It is a new enterprise dealing with purchasing grains and cash crops, especially maize and cocoa, during harvesting due to the low price of grains and cocoa. We assemble, process, and pack them for distribution. This business process flow showcases our uniqueness from others in this line of business because most of our competitors do not process; they buy from other distributors and sell them to their clients. Our operations start from purchasing the grains and cocoa from the farmers and packaging and distributing them to our buyers. Our location at Agbeni Ibadan, Oyo State, gives us great opportunities to market our final products.
Our Business Goals
To sell our products to every household in Nigeria and across the country’s boundaries in the future year and to provide quality products at a reasonable price.
Objectives
To be among Nigeria’s first three leading kinds of cereal and beverages suppliers by 2025.
Why should you buy our products and services?
From the preliminary, our products will be whole meal flour and beverages. Food is an essential factor that sustains human growth. Thus, since our products are part of the food chain, our products will be made up of all the required nutrients for high quality and economic advantage. These products will be for immediate and future use.
Our Products
- Cereals:
- Wheat
- Rice
- Oats
- Corn meal
- Barley
- Beverages:
- Tea
- Coffee
- Wine
- Malt drink
- Chocolate drink
- Milk
Current Position of the Business
As part of our strategic plan, the expected growth of the business will range from 1% to 5% and expand within five years to enhance distribution to the neighbouring regions of Shiroro like Oyo, Ibadan, and Saki.
Cost of Production
As we are planning investment decisions simultaneously, we have to create sources of finance for our business. The opening capital for our business is #15,000,000. The structure of this capital will comprise equity plus debt which in the long run increases our return on investment (ROI). The breakdown of the equity is in the following ways:
| DETAILS | AMOUNT |
| 105 bags of maize @ 35,000 | 3,675,000 |
| 65 bags of rice @ 75,000 | 4,875,000 |
| 45 bags of cocoa @ 50,000 | 2,250,000 |
| Lease of stores, offices, and machines per month | 2,000,000 |
| Electricity and water bills | 1,200,000 |
| Processing, packaging, and transport cost | 1,000,000 |
| Total cost | 15,000,000 |
Market Analysis
The market has a high growth rate, thus creating opportunities to attain our business’s intended plan. The market grows as the number of people consuming food products increases. For example, between 2019 and 2020, milled rice production was 2,352,714 tons, while the production increased to 2,423,236 tonnes between 2020 and 2021, equivalent to the growth of 5.1%.
Business Environment Analysis
| Strengths | We are the whole meal flower producer, which differentiates us from other suppliers. For instance, JAZA is our competitor who only supplies white flour, thus giving us an edge over it. |
| Weakness | Competition from the older companies in the same line of business may affect our supply from the beginning as the new entrant. |
| Opportunities | This is because of the good infrastructural facilities that installed in our operation area, like a good road network, stable power supply, and water supply from the ministry of state. In addition to all these qualities, raw material is not far from our reach, which will enhance our supply. |
| Threat | Stiff competition, Government policy, Lack of credit facilities. |
Competitive Analysis
Our main competitor is JAZA though there are other suppliers. The only strength they have is that they are the oldest cereals processing organization in the market, and their brand is well known too. Their only weakness is that they offer white flour but not whole meal flour, which is recently in higher demand. This will be a niche for us to hijack the market from them.
Expected Profit
With the structure base of our capital, i.e., debt plus equity, we expect #65,000,000 in our first year of operation and more in the coming year with a 5% increase yearly. This increment will enable us to diversify production into another similar business planned during the brainstorming session of our expansion strategy. This will also help create more youth employment opportunities and increase the organization’s return on investment.
Management Team
We have a qualified management team which is a plus for our organization.
Mr. Ojo Kehinde is a graduate of Osun State University. He is the head of human resources in the organization and ensures the welfare of the employees.
Mrs. Friday Esther is a food technology graduate from the Ladoke Akintola University of Technology, Ogbomosho. Her responsibilities are to monitor the process and packaging of our products.
Mrs. Rabiu Opeyemi is a microbiologist who graduated from the University of Nigeria. Her responsibility is to test-run the nutritional level of our products in the laboratory before consumption.
Mr. Tunde Oyeleye is in charge of the machines used for production, an engineering graduate from Bida Polytechnic, Minna. He supervises the machines used and recommends replacement or repair when due.
Mr. Ardo Muhammed is a professional accountant who graduated from Obafemi Awolowo University, Ife. Also, an associate member Institute of Chartered Accountants of Nigeria. He is our internal auditor.
Mrs. Udoh is a business analyst who graduated from Tafawa Balewa University, Bauchi. She is our total quality manager.
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