ECO- SHIELD Presentation on New Business Plan

1. ECO- SHIELDPresentation on New Business Plan www.AssignmentPoint.com

2. According to a study conducted by BUET, • 6000 legal and illegal brickfields in Bangladesh. • Emit 8.75 million tons of CO2 every year. • The Industry is growing more than 5% annually. • we are going to introduce environment friendly brick “ECO-SHIELD”. • It will be produced by using a German technology named Hybrid Hoffman Kiln (HHK). • Total carbon emission can be cut down to 50%. • The ratio of coal usage for our brick to traditional brick is 1:2

3. Management Ours will be a private limited company with three directors. • Product and Competition Bricks by using HHKtechnology. • Funds Requested The startup expenses for our business is about 44 million Tk. • Use of proceeds The debt to equity ratio is 61:39.

4. Exit • We will be able to reduce carbon emission by 30,000 tons annually. • We will be able to sell the amount of carbon we did not emit under ‘Kyoto Protocol’. • The emission reduction rate known as Certified Emission Reduction (CER) has been fixed at $ 15.20 per ton. The World Bank and Denmark have already agreed on buying 189,000 and 60,000 tons of CER from our country.

5. Background and Purposes History It will be quite startling for a person to see that a brickfield is not exhaling black smokes like a chain smoker. The surprise saga will continue even more when he will see that the brick kiln is producing superior quality bricks by emitting fewer carbons into the air. To bring this revolution in brick making industry of Bangladesh we are introducing Eco-Shield Bricks. Eco-Shield not only reduces environment pollution but also ensure greatest quality of product in the market.

6. Traditional Brick Field Traditional Brick Field

7. Eco-Shield Bricks

8. The Resource Based Concept

9. Objective Short Term Long Term

10. Short-term Objective Long -term • Unique Brands • Quality Assurance • Superior Customer Value • Satisfaction • Expand to 5 brick fields by 2013. • Introduce bio fuel as a mean of green fuel to bake brick. • Make brick construction more affordable to every Bangladeshi family. • Significant contribution to improve environment and ecological balance. • We will deliver service excellence to all our customers.

11. Market Analysis

12. Figure: Market Share of different brick kilns

13. B. Specific Market

14. The potential buyers in the brick industry can be categorized into four segments. In addition, these are-1. Developers & construction firms 2. Contractors3. Small house owners & others4. Overseas Market (Indian ‘Seven Sisters’) Figure: Market Segmentation

16. D. Competitive factors 1. Diamond Auto-Bricks Limited 2. Nikita International 3. Nahid Enterprise

18. Development and Production A. Production processes

19. Fire Brick:Firebricks usually contain 30-40% aluminum oxide or alumina and 50% silicon dioxide or silica. They can also be made of chamotteand other materials.Bio-BrickThe bricks are made in a process called microbial-induced calcite precipitation, or MICP. In a chain of chemical reactions, the microbes on sand are joined together like glue.

20. B. Resource requirementsResources required to establish and operate the HHK are categorized following the three basic types of resources. The resources are:• Natural resourcesi. Land (hard soil suitable to establish the kiln, 3 acres)ii. Clayiii. Coal (domestic and import)iv. Water (nearby source)• Capital resourcesi. Funds (cash, bank drafts etc.)ii. Infrastructure (the kiln , other buildings)iii. Kiln machinery (imported)iv. Generator (for uninterrupted electricity, 240kw)v. Utility (electricity, water supply)• Human resources (top level 7, middle level 13, bottom level 88 worker)

21. C. Quality AssuranceThe key features of the HHK technology are: • Production cost • Efficiency • Size • Quality • Carbon emission reduction • Carbon revenue • Variety • Plant life • Less use of land

22. 6. Financial Plans Financial Statements • We assumed the interest rate 12 % based on the nature of business. It goes to SME sector. • We did not include any tax holidays. However, there is a significant chance that we will get 2 years tax holiday at least because of the environment friendly technology. • Our construction period will be of three months. After the construction period, we will start repaying our loan. Therefore, the moratorium period will be 3 months. We will not pay installments but the interest during this period. • The depreciation rates we assumed are standard rate considering the natures of assets. • No further investment will be done before 7th year. • The discounting rate we used is considered as benchmark in this industry; 15%.

23. B. Financial Resources • Productivity: Our annual production will be 7.5 times higher than traditional kiln. We will produce16.5 million units of bricks each year. We will operate throughout the year where the traditional brick fields can operate 6 months a year. • Efficiency: Our production system is much more efficient compared as the whole process is semi automatic. It reduces manual labor, thus becomes efficient. • Size: Each unit of Eco-Shield brick will be 25% larger than traditional brick. • Quality: 80% of coal is mixed with clay and burnt inside the brick which makes the brick strongerandgives it better aesthetics and structural superiority. • Less use of land: Brick production consumes a significant portion of our agricultural land. • Plant life: A HHK has a minimum life of 15 years which is more than two times the traditional kilns. • Location: Our plant will be located outside the capital Dhaka at Amtoli, savar.

24. Financial Strategy Profit/Loss & Net Cash Flow Projections

25. Projected Balance Sheet

26. Ratio Analysis *All these assumptions are made excluding any kind of Carbon selling revenue we can earn every year.

27. MarketingA. Overall concept and orientation

28. Product: Our product lines are divided into two types of bricks. And these are- Standard bricks and the Hollow bricks.Price: Before setting price of our products we analyzed the pricing of other competitors.Main Competitors PriceDiamond Auto-Bricks Ltd BDT 6.50Nikita International BDT 6.50Nahid Enterprise BDT 7.00Place: In this distribution planning, we are placing the distribution channel in our own plants. Buyers can get their necessary amount of bricks from our plants directly. Promotion: We are just introducing a new kind of product in the existing market. That’s why our promotional activities would be selective rather than the mass marketing.

29. B. Marketing Strategies There are a variety of sales promotional strategies that we will use for our company. •Price discounting •Sampling •Mail in offers and rebates •Premium offers •Group promotions •Frequent purchase/ loyalty incentives

30. Advertisements: Different types of advertisements will be introduced for the campaign. Print media, Web advertising will be implemented. A model advertisement is illustrated below:

31. Branding: Increasing name recognition is only one aspect of the branding puzzle, but an important one. • Design of company logo really doesn’t matter • A professional website • Participating in local business events • Hiring a branding company (if feasible) to bring our image and message under a brand. • Making a matrix of all those we’d like to reach in the next year and the potential influencers on those people. • Regularly writing and posting press releases directly onto the internet.

32. C. Sales forecastsLet us have a look on the potential users of different type of bricks. Figure: Potential users of bricks

33. Organization and ManagementA. Key Personnel Resources: Figure: Organogram of Eco-Shield Bricks Ltd.

34. B. Human Resource Management Strategy: 1.Under a chief executive there will 5 executive in five departments. Each executive will have 2 management trainee. In production department we will hire 40 efficient employees. 2.Our company favors close supervision. 3.We do not expect unionization. 4.Training and development of employees and managers should be held continuously. 5.Promotion should be given based on employee’s performances. 6.Permanent employees would be skilled employees and permanent skilled employees should train contractual employees. 7.There will be no effect of equal opportunity employment regulations and other government requirements .

35. Ownership

36. Ownership Shareholders Company Law,1994

37. Ownership • Our company deal will be structured after Private Limited Company according to the Bangladesh Company Law, 1994.

38. Critical Risks and Contingencies For Hybrid Hoffman Kiln(HHK) the personnel risks are-

39. Critical Risks and Contingencies The main operating risk is associated with the proper use of kiln machinery. Besides this other risks are supply of raw materials and economic order quantity. To avoid machinery damages we will ensure proper use with market related production.

40. Critical Risks and Contingencies Profitability is a financial risk for any business. Liquidity and gearing are also problems for a business. To attain much profit and make the business substantial one the only way is to make good revenue.

41. Critical Risks and Contingencies The very common problem in Bangladesh to start a new business is to follow the rules and regulations of government institutions like NBR, Investment board etc. and the influence of political or powerful leaders. We will follow the legislation of government related to our business.

42. Summary Increased threats of the climate change and the global warming appears to be the greatest archenemy of the regions like Asia and Africa. While the CO2 emitting brickfields are fiddling like Nero, the world cannot burn like Rome. That is to reduce the carbon dioxide in air. To reduce the amount of CO2 from air we are trying to introduce a new hope to the global environment we are going to introduce environment friendly brick “ECO-SHIELD”. It will be produced by using a German technology named Hybrid Hoffman Kiln (HHK). By using this technology the total carbon emission by brick production can be cut down to 50%.