Business Plan on Grease Manufacturing
Executive Summary
SWIFT GREASE PVT. LTD., is grease manufacturing organization. It is established with a vision to provide good quality grease to all its customers and to ensure that all industries that use cheap quality grease, to reduce cost and compromise with life of the machinery, will also use good quality grease and need not compromise with the life of machinery at same prices.
The factory of SWIFT GREASE Pvt. Ltd. will be situated at Jeetpur, Bara, Nepal and all its official operation will be directed from Kathmandu. The company will produce the grease, whose quality is equivalent to that of international standards and prices will be much more competitive than of international brands. The company will limit its market to the boundary on Nepal for the first five year of its operation. All industries and individuals who require grease are the company’s main customers. The market size of grease is around 3000MT, and company have adopted conservative approach and forecasted its sales in first year to be only eight percent which ultimately in five year is estimated to increase to ten percent. There are various marketing strategies which company will adopt. It includes the mix of newspaper advertisement, TV commercial, FM advertisement, market surveys and many more. For the same, company has set aside a budget of Rs 1,162,000. The selling price has been calculated on the basis of cost plus pricing method which is prevalent in grease industry.
SWIFT GREASE Pvt. Ltd. will be manufacturing only lithium base grease, the production process is given in details in section 4.1 of the report. The total fixed asset required in the industry is around Rs 20,778,000, the depreciation such calculated is around Rs 111,217 per month and Rs 1,334,600 per year. The machinery will be imported from Indian company named FREGMAIRIES Engineering. The planned production for first year is eight percent of total market demand which sums to 240 MT per year. To obtain this target, the
SWIFT GREASE PVT. LTD., is grease manufacturing organization. It is established with a vision to provide good quality grease to all its customers and to ensure that all industries that use cheap quality grease, to reduce cost and compromise with life of the machinery, will also use good quality grease and need not compromise with the life of machinery at same prices.
The factory of SWIFT GREASE Pvt. Ltd. will be situated at Jeetpur, Bara, Nepal and all its official operation will be directed from Kathmandu. The company will produce the grease, whose quality is equivalent to that of international standards and prices will be much more competitive than of international brands. The company will limit its market to the boundary on Nepal for the first five year of its operation. All industries and individuals who require grease are the company’s main customers. The market size of grease is around 3000MT, and company have adopted conservative approach and forecasted its sales in first year to be only eight percent which ultimately in five year is estimated to increase to ten percent. There are various marketing strategies which company will adopt. It includes the mix of newspaper advertisement, TV commercial, FM advertisement, market surveys and many more. For the same, company has set aside a budget of Rs 1,162,000. The selling price has been calculated on the basis of cost plus pricing method which is prevalent in grease industry.
SWIFT GREASE Pvt. Ltd. will be manufacturing only lithium base grease, the production process is given in details in section 4.1 of the report. The total fixed asset required in the industry is around Rs 20,778,000, the depreciation such calculated is around Rs 111,217 per month and Rs 1,334,600 per year. The machinery will be imported from Indian company named FREGMAIRIES Engineering. The planned production for first year is eight percent of total market demand which sums to 240 MT per year. To obtain this target, the