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ECO BORA …..working towards sustainable energy. NAME: ECO-BORA LIMITED PHYSICAL ADDRESS: RUIRU NEW HORIZON PARK WAREHOUSE EMAIL ADDRESS: [email protected] PHONE ADDRES 1:0711689424 2:0727264748 COMPANY PROFILE Form of business:- Limited company Directors: Daniel Mutambi OsoreShaffie Justine Abuga Name of business:Eco-Bora LTD Start date:Jan 2015 Business operation:Full time Operation hours:Mon-Sat 8:00am -5:00pm Sun-closed Public holidays 8:00am -12:00pm website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. EXECUTIVE SUMMARY ECO-BORA limited is a manufacturing company. We produce pellets used as a source of fuel both in industries and at home. Our product is made to have high calorific value , low water content {less than 10%} , 6-8 millimeter in length and densely compacted this provides high heat efficiency. The product is new in the country and ECO-BORA seeks to set the pace. Our pellets will be distinctive from those existing in the market. High quality, no breakages, longer, distinct texture, affordable and better packaging are our main competitive pillars. Key marketing strategies include personal selling, website, reference, and education to communities, email marketing, and social network. The management team at this level includes an accountant, sells personnel, supervisor and director. Other staff providing manual labour will be contacted “on need basis” ECO-BORA is an open business that is independently owned and ready to partner with investors Our major supplier is: individuals, women group providing sawdust in bulk and companies own sourcing from furniture producers. The financial requirements are huge, though we tend to embrace a lean model that capitalizes on quality products while lowering production costs. A one tone per hour machinery would adequately fulfill the market demand. website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. COMPANY PROFILE HISTORY Eco-Bora is a green technology company that was started in 2013. The challenges faced by charity based organizations (children homes and orphanages) created the need to provide affordable and efficient fuel. This is how Eco-Bora started by delivering wood chips to these organizations. These wood chips would then be mixed with burning charcoal to sustain the heat. After much research, Eco-Bora ventured into production of wood pellets mid 2015. The wood pellets had high heat efficiency and sustained the needs of these organizations. Commitment, resilience and good attitude has seen Eco-Bora expand its boundaries to provide wood pellets to Kenya and markets abroad. ABOUT US ECO-BORA LTD produces wood pellets as a source of biomass fuel. We use waste such as sawdust, wheat straw, maize cobs and peanut shelves as raw materials. Our main clients are industries using boilers, those manufacturing jikos and individual groups of person. The compressed pellets are dense with higher calorific value making them heat efficient. ECOBORA addresses the challenges in electricity cost, deforestation and global warming. The solution we provide lowers production cost in manufacturing industries, reduces deforestation and eradicate green house gases e.g. carbon dioxide. Wood pellets are carbon dioxide neutral because the little co2 released is equivalent to that absorbed by plants during photosynthesis. Our input is already evident in: Job creation, recycle waste, saving the environment, and reduce production cost in industries. 0UR VISION To diversify energy use,protect our environment and reduce carbon (iv) oxide emissions through production of best quality wood pellets from biomass. OUR MISSION To provide sustainable biomass fuel for use in industries and homes, expanding lives and creating change needed for society development. website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. OUR VALUES 1. 2. 3. 4. 5. Resilience Honesty Positive attitude Assertiveness Timelessness SECTION ONE :- THE BUSINESS THE PRODUCT Description of products and services Wood pellets are the main product from Eco-Bora ltd. This pellets have a low water content i.less than 10%; high calorific value and densely compacted. Our raw materials are: sawdust ,maize cobs, woody forest shading, wheat straws, rice husks, branches and twigs, peanut shells and coffee husks. Equipment :The raw materials are compacted using a pellet press machine. Uses of pellets 1. Provide fuel for gas firers to generate electricity.(1 tone of pellet generate 4mw of electricity) 2. Powering boilers to generate steam. 3. Cooking and water heating in hotels and households (1kg of burn for 2 hours). website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. Competitive advantage of pellets over other fuels 1 tone of pellet costs kshs 50,000.This is equivalent to 4 MW of electricity while using the current rates, 4 MW of electricity cost (21× 4000) =kshs 84,000. The user saves kshs 34,000 1kg of pellets burn for 2 hours while 1 kg charcoal burns for 30 minutes. 1 tonne of wood pellets displaces 580 liters of oil fuel. Prices 1 kg of pellet retails at kshs 50 MARKETING A. Industry Overview. Biomass is a locally available energy resource that will continue to play an important role in our renewable energy mix. There is no single source of energy capable of solving our dependence on fossil fuels. Wood pellets are a renewable energy source in Kenya and the greater East Africa Fossil fuels. The market has few barriers to entry and clients are receptive. Eco-Bora seeks to capitalize on this opportunity because wood pellets are an affordable alternative to diesel, petrol, firewood and electricity. The industry is based on both technological and supplies relationship. Technological change includes use of boilers in industries, use of gasifiers for home cooking and fuel gasifiers to convert biomass to electricity. Environmental change will involve conservation of trees, hence avoiding deforestation; reduced release of greenhouse gases that may lead to global warming and recycling of waste products e.g. sawdust, and peanut shells. Economic change will include reduced production costs of materials from industries, lowering the costs of purchasing products. website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. Products and services. Eco-Bora wood pellets are unique. Highly compressed sawdust with high density and lower water content of about 10% guarantees 25% more heat efficiency than charcoal. The end users gets value for their money. Pellets are easy to light, burn for longer, have no soot and higher heat content due to high calorific value. Complimentary product packaged alongside Eco-Bora wood pellets are fire lighters from Mathenge tree. This will enable users easily light up fires saving on time. A feature positioned to make us ahead of our competitor. Unique product packaging, and close relationships with our clients. Providing timely deliveries is another strategy we will use. TARGET MARKET 1. 2. 3. 4. Industries with boilers Businesses that are bulk consumers of fuel i.e. schools and hotels Organization that design gasifiers Groups of people. OUR CURRENT CLIENT LIST 1. 2. 3. 4. Biolite Ecozoom Chanadria Industries Malindi Juice Processors Market size The market size is huge; and growing. Eco-Bora targets to capture 50% of the market in 6 months. In five years time our target is 80-90% of the market Secondary markets in need of wood pellets also exist. These will expand our revenue base once the primary markets are exhausted. COMPETITIVE ANALYSIS Business description Eco-Bora is a product manufacturing industry. Wood pellets are our main product. Raw materials used are sawdust, maizestalks,branches,coffeehusksamong others. website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. Analysis of competitor Direct competitors- Green Steps Africa Limited Hours of Operation- Part time Years in business –1 Products – Wood Pellets Customer Profile – Nill Pricing – kshs 100 per kilo Marketing/Advertising – Have a website Strengths1. have wood pellets press machines 2. have a financier Weakness – production cost is too high Opportunities for Eco-bora given this competitive landscape – 1. more marketing to possible clients 2. quick delivery of quality products 3. lower the price of pellets below kshs 100 Indirect competitors – 1. charcoal sellers 2. firewood use 3. electricity PROMOTIONAL STRATEGY 1. 2. 3. 4. 5. personal selling direct mail trade magazines sponsorship of related events business cards website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. Location Location: – Ruiru New Horizons Park Warehouses. Reason for location: – away from town, ample parking, affordable rent, and access to Thika Super Highway; closer to the raw materials. Marketing advantages for location – land closer to the main road; passers-by can easily see the company. PRICING The first strategy is to price below competition i.e. less than kshs 100. Theprice will be discounted on a regular basis. MANUFACTURING PLAN Requirements for equipment, plant and storage facilities and approximate costs associated with this. Eco-Bora ltd needs a pellet press machine, costs are approximately 5,000 USD. The storage facility preferred is a warehouse; about 2000sq./kshs 80,000 per month. Water bills kshs 500 per month Transport costs are variable depending on location of client. Miscellaneous expenses are variable depending on client taste. Human Resource Eco-Bora management includes an accountant, a sales officer , supervisor and general manager. Other staff shall be secured locally to provide contractual services such as :-repairs of machine, loading and offloading supplies; security, cleanliness e.t.c website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. Operational plan What is the current status of product development? Eco-Bora wood pellets are in pre-implementation phase. What is the proposed “finish” date of development? 30 -11- 2015 What obstacles must Eco-Bora overcome in this process? Establish a financier or get a capitalist, set up a constitution for the company and basic structures. What specific task can be completed? I. II. III. IV. V. Register the company Establish distribution channels of product Make packaging of the product and have a relationship with packaging suppliers. Have a steady leas of continuous suppliers. Have a web site to increase visibility Who outside the company will be involved? Get a consultant in human resource management, marketing/branding and book keeping/ accounting. How will we protect the company’s company proprietary information/technology or competitive advantage? I. II. III. IV. -Achieved by advice from lawyer -Entrance into the plant should authorized by management -No images on plant to the public -Competitive advantage secrets only among the management team. website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. Regulations of the industry Eco-Bora is a limited company. Special permits require to run the industry include: 1.country business license 2.( KIRDI) Kenya industrial Research Development institute certification 3.( KEBS) Kenya Bureau of standards certification SECTION TWO: FINANCIAL PROJECTIONS. The following table shows the starting up financial budget. FINANCIAL PLAN IN [ Kshs] STARTUP BUDGET Occupancy Legal fee Equipment Supplies and delivery Personnel Miscellaneous expenses TOTAL AMOUNT 6,000 20,000 400,000 250,000 50,000 10,000 736,000 website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. Projected cash flow statements for three months. Cash flow statements Cash receipts Sale[ Kshs] Loans.[Kshs] Receipts after Disbursement[ Kshs] 1 st Month 1,000,000 736,000 264,000 2nd Month 1,200,000 636,000 364,000 Income statement for 3 months Revenue (sales) [ Kshs] Variable expenses [ Kshs] Fixed expenses [ Kshs] Total expenses [ Kshs] Profit [ Kshs] 5,400,000 400,000 366,000 776,000 4,634,000 Contacts Email:[email protected] Phone : 0711689424 0711263020 0727264748 website: www.ecobora.co.ke email: [email protected] 3 rd Month 1,500,000 536,000 464,000 ECO BORA …..working towards sustainable energy. website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. website: www.ecobora.co.ke email: [email protected] ECO BORA …..working towards sustainable energy. website: www.ecobora.co.ke email: [email protected]