A Sample business plan for an LPG Plant in Tanzania or Africa
EXECUTIVE SUMMARY
It is no doubt that the link between energy and economic growth aspirations is pivotal. There is a clear argument that LPG has strategic importance in improving quality of life by providing safe, affordable, reliable, and cleaner fuel. With the rapid economic growth in Tanzania, investment in LPG infrastructure is vital to meet the growing LPG demand in the country.
KOALA energy Limited intention, therefore, is to establish an LPG plant to support economic growth in Tanzania, create entrepreneurial opportunity and create employment.
Support for this LPG plant will provide direct employment for more than 12 of the plant staff, create new indirect jobs for the beneficiary communities. It will also generate over 1 billion TZS in its third (3) years of operations.
Typical of an economic venture in the country, the plant will generate revenue to the government in value-added tax (VAT) in the output and from the subsequent consumers, payroll levy & PAYE, to mention a few.
We believe that KOALA Energy Limited has the capacity and is committed to supporting the continued economic growth in Tanzania.
1.2 BUSINESS JUSTIFICATION
1.2.1 PROBLEM AND SOLUTIONS
The use of wood and charcoal as the primary fuel source for cooking is a significant contributor to the depletion of the forest. From an environmental point of view, the continuing felling of trees in a region already threatened by desertification has fatal consequences for the regionís flora and fauna, air quality, and water bodies.
Furthermore, households and businesses pay more for wood and charcoal fuel because a kilogram of charcoal cost more than a kilogram of LPG. Also, the smoke from charcoal and firewood fuel can put consumers at risk of respiratory infections.
Therefore, the establishment of this business will support the LPG substitution of fuelwood, which will go a long way towards meeting the people’s socio-economic challenges due to the depletion of their forest cover.
2.0 COMPANY DESCRIPTION.
KOALA Energy Limited is an emerging indigenous petroleum products marketing company in Tanzania. The company aims to establish a 20 metric tonnes-LP Gas plant along East Africa road in the Arusha region.
KOALA Energy’s entry into the LPG sector was the drive and commitment to meet the growing LPG demand by improving access to the high quality of LPG in the country.
KOALA Energy is committed to offering you the best quality and safe cooking gas in a secure environment and at affordable prices.
The company will ensure that our customers are given memorable experiences when they patronize our service centers. This can be either when customers walk into our service centers with their gas cylinders or when they request home delivery and supply of LPG, cylinders, and other accessories.
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In the full version, you will have access to the the following table of content:
1.0 EXECUTIVE SUMMARY: 5
1.1 INTRODUCTION 5
1.2 BUSINESS JUSTIFICATION 6
1.2.1 PROBLEM AND SOLUTIONS 6
2.0 COMPANY DESCRIPTION 6
2.1 OUR MISSION AND VISION STATEMENT 7
2.1.1 Mission Statement 7
2.1.2 Vision Statement 7
2.1.3 Goals And Objectives 7
2.1.4 Our Values 8
2.1.5 Keys to Success: 9
2.1.6 Value Preposition: 9
2.2 PRODUCT AND SERVICES 9
3.0 MARKET ANALYSIS 11
3.1 Global Industry analysis 11
3.2 Local Industry Analysis 12
3.3 SWOT analysis 14
3.4 OUR TARGET MARKET 14
3.5 COMPETITOR ANALYSIS 15
4.0 PUBLICITY AND ADVERTISING STRATEGY 18
5.0 BUSINESS MODEL/OPERATIONAL PLAN 19
5.1 OUR BUSINESS STRUCTURE OPERATIONAL AND TECHNICAL 20
5.2 JOB ROLES AND RESPONSIBILITIES 21
6.0 SALES AND MARKETING STRATEGY 25
7.0 RISKS, REGULATORY AND LEGAL CONSIDERATION 27
7.1 Risks: 27
7.2 PEST Analysis 27
7.3 REGULATORY 28
7.4 LEGAL CONSIDERATION 28
8.0 FINANCING 29
8.1 Source of Fund 29
8.2 USES OF FUND 29
9.0 SALES FORECAST 31
9.1 OUR PRICING STRATEGY 32
10.0 APPENDIXIES 33
10.1 Income statement 33
10.2 Balance sheet 33
10.3 Cash flow 33
10.4 KPI’s 33
10.5 Loan repayment Schedules 33
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