Business idea eng. presentation

Business Idea

Import and Export

Presentation On

Presented to

Sir Ahmad Muneeb Mehta

Presented by

Awais Qasim M11BBA029

Hafiz Asad M11BBAO38

Nadar Ijaz M11BBA032

S.Faraz Sada M11BBA31

M.Esmael M11BBA02

Business Name

Barakat Imports & Exports

Slogan :

Desired Goods at your Doorstep

Logo:

Business Plan

• We are starting a partnership business

of imports and exports in Lahore. We

are going to export items of daily use

to Afghanistan and in the future to

central Asian Countries.

Our main focus will be on export

business as conditions are more

suitable for this rather than import

business.

Why This Business

Mission:

To be the biggest wholesale trader of consumer items in Afghanistan

• Our Primary focus will be Afghan market due to following factors

Why This Business

• Target market

Afghanistan is a big consumer market of 40 million people. Mostly comprising of middle class and low income people. A land locked country with no railway system. The central Asian states are also mostly land locked.

It will be a whole sale trading business in Afghanistan.

No proper vegetation cultivation

Strong Afghan Currency

Nadar Ijaz

M11BBA019

The Afghan Pakistan Transit & Trade Agreement

Recently a trade agreement has been signed between Pakistan and Afghanistan under which Afghanistan will allow Pak. exports to central Asian states and Iran at very low custom and tariff duties. In the same way Afg. Exports to India and China will be allowed at low duties and taxes.

Inflation level in Afg.

Per capita Income

Custom duties/Taxes Customs duty & other Taxes (Afg)

• No

• Type of Charges

• Calculation Method

• Remarks

• 01

• Customs Duty

• Percentage of Customs Value(CIF)

• Percentage depends on the type of goods according to the Tariff

• 02

• Fixed Tax

• 2% of (Customs Duty + Customs Value)

•

• Fixed Tax


• On AISA License

• 03

• Business Receipt Tax (BRT)


• On Imports Only

• 04

• Red Crescent

• 2% of Customs Duty

•

• 05

• Municipality Charge

• 1% Per Vehicle

•

Custom Duty/Taxes

PakistanDuty Type Applicable Rate$ Conditions Further Requirements Reference

Custom Duty 5 Fresh Dry Fruits of Afghanistan

and imported from Afghanistan 2006-567

Subsidies on Consumer Items&

Preference of the Locals

Current Afghan Govt. has lowered custom duties and

taxes on consumer items and goods at such a lower

level that it has turned in to very attractive and

profitable business in the last few years.

Majority of Afghan population consists of Muslims.

Most of them had visited Pakistan. So they prefer Pak.

Halal food items and they are also used to the flavor.

Goods of Other Countries

These days there are lots of foreign goods being sold in Afghanistan mostly of Iran and Turkey as well as Russian. They are mostly packaged food items. Moreover there prices are very high than Pakistani Products. Sometimes people are forced to buy expired goods of those states because of lack of awareness and foreign descriptions on goods.

Why This Business

• Stable political structure

• Ever Increasing Demand for Consumer Goods in Afghanistan

• Investor friendly policy of Afghan Govt.

• Very low industrial progress in food sector

In Afg.

Hafiz Asad

M11BBA038

Capital

Capital Invested by Each Partner

Rs 4 million

Total 20 million

Start up Cost

Firm Reg. Exp 50,000

Warehouse&Office(Lhr) 50,00,000

Warehouse&Office (Kabul) 25,00,000

1 big Truck 30,00,000

2 mini Trucks 15,00,000

Preliminary Expenses 2,00,000

Packing material 50,000

Insurance (Trucks and Goods) 5,00,000

Total Rs.1,28,00,000

Required Staff

Lahore office:

• 4 labours 24,000

• 1 security guard 10,000

• 3 truck drivers 45,000

Kabul Office:

• 4 Labour 28,000

• 1 security guard 10,000

Total Salary Expense Rs 117,000

Business Place

Lahore Office:We will set up our main office and warehouse near Lari Adda because of its close location to railway station and big consumer markets of lahore like ShahAalmi and Akbari mandi.

Kabul Office:At kabul we will purchase a warehouse near the famous sarai bazar, the biggest market of Afghanistan.

Contact Us

Lhr Office:

Phone no.042-35755968,042-37926531

Mobile:0304-4659429

0345-7414614

Kabul Office:

Phone:+937-54926321

Mobile:0391-3254321

E-mail:[email protected]

Partner’s Duty in Business

Awais Qasim Buying Dealer

Nadir Ijaz Accountant

S.Faraz Sada Legal Affairs

M.Esmael Salesman

Hafiz Asad Packing Incharge

Export Items• Flour, sugar, rice.

• Pulses, beans, vegetable oils

• Salt ,Spices, green tea , coffee.

• Cosmetics (Soap, Shampoo)

• Soft drinks, juices.

• Garments (on demand)

• Junk food (Candies,choclates,biscuits)

• Stationary

• Packed milk

S.Faraz Naqvi

M11BBA031

Estimated Cost and Revenue

Total distance between Kabul & Lahore 1200km

(Including Peshawar and Torkhum border)

Cost of 1 litre petrol Rs102

Cost of 1 litre diesel Rs.107

Avg. mileage of one truck 3-5 k.m

Total transportation cost Rs 75,000

(In & Out)

Estimated Cost and RevenueProfit margin on Exported goods 40%

To cover expenses and to earn profit

Cost of goods * profit margin

Let’s say One loaded truck with 200 rice bags of 50 kg worth Rs 10,00,000

Profit Calculation 10,00,000 * 40% 400,000

Then expenses incurred + Salaies 250,000

(Transportation ,Custom duties, utility bills, Insurance etc

Estimated Cost and Revenue

Total Profit Rs150,000

Each partner will be entitled for equal Profit ratio i.e 20%.

We will create a reserve of 5% out of profit to meet any sudden future expenditure

Most of the existing traders and wholesalers in Afghanistan are selling their goods on 50-70% profit margin mostly because of huge transportation cost arises due to cargo agencies.

Import Items

• Grapes

• Qandhari Promegenade

• Melons

• Cherry,Blackcurrent and berries

M.Esmael

• M11BBA02

Import Items

We have plan to import fruits from Afghanistan

and selling it to fruit market traders and big

supermarkets.

But we can only import these fruits at their

bumper production season. Since dominant

afghan currency and travelling cost will not be

bearable if we import them in non bumper

production season.

Import Items

• At bumper production level, fruits are very cheap in Afghanistan. Like grapes are normally sold at 15-20/Kg and melon at 10 Afghani per kg.

• We can’t afford chilled trucks so we will use special cartons' and crates for this purpose. Our trucks will be strictly instructed to deliver them non stop at their destinations.

v v

Cost and Revenue

We will deliver these goods to big supermarkets and wholesale fruit dealers on demand in market.

Like in bumper season of grapes we can supply it to its buyers at 75Rs/kg.

Profit margin 40% at Cost Price (Rs.40) Rs16/kg

Transportation Cost Rs14/kg

Other Expenses Rs5/kg

Break Even Point

We can achieve break even point within 4-10 years

Estimation On:

If we export/Import goods 1-3 (trucks) per month worth (0.3-1.5 million)

1 month Estimated Income 0.1- 1 Million

Marketing StrategyIn Afghanistan:

Distribution of Visiting Cards to Retailers and Traders

Advertisement in local newspaper.

Our own stalls in local jumma bazars (On Thursdays)

Offering Special Discounts on big bulk purchases

In Pakistan:

Free sample distribution of goods

Advertisement in local newspaper.

Competitive Edge

Own Transportation System

Rapid delivery of Goods

Low profit margin than our Competitors

Desired packing options for our Customers

Threats

• Decrease in Afghan currency’s value

• Ban on import and export of particular items from government

• Terrorism

• Security forces of both sides (Bribery)

• Increase in commodities prices in Pakistan

• New taxes / Custom duties

Social Factor

Afghanistan has suffered a lot in civil war

and in war against terror. The people out

there are desperately in need of consumer

items due to drought and slow industrial

progress.

As a Muslim it is our obligation to help

other Muslims as Said by Our Holy

Prophet (P.B.U.H).

Social Factor

Help to Local traders and Industrialists in this time of economic Crisis in Pakistan

Help to tackle smuggling

More Exports and Imports discourage it