Ice Block Production Business Plan
A large portion of Africa sits on the earth’s equator and lies within the tropical climate region. This means that our continent enjoys more direct sunlight and heat compared to the temperate parts of the world (such as Europe and North America). It is estimated that many parts of Africa enjoy (or suffer) an average of 300 days of bright sunlight every year.
This means that for most days of the year, the weather is hot and humid as the sun shines ever so brightly for up to five hours on most days. In fact, temperatures during the day can rise up to 40°C especially in the northernmost parts of the continent which have a savanna or desert climate.
The hot and humid weather conditions in many parts of Africa leads many people to drink more water to refresh and rehydrate their bodies.
Table of content
Executive Summary 3
Business Description 4
Products and Services 6
Market Analysis 7
Competitor Analysis 8
Sales and Marketing Plan 9
Operational Plan 12
Management Plan 13
Financial Plan 14
PATILAD ICE BLOCK is a proposed standardized Ice Block production and retail enterprise that will provide immediate Ogudu & Ojota teeming residents, restaurants, Fast-foods, caterers, kiosks hospitals, labs and the likes with quality Ice Blocks of different shape, textures and sizes. Patilad Ice Block is aiming at gaining a good share of the market by strategic discounts, market reach and a futuristic franchise model. Patilad Ice Block will be tentatively located at 35 Ogudu Road, Off Ojota, Lagos.
Patilad Ice Blocks will be established as a limited liability company owned by Igbokwe Ifeanyichukwu, Gladys Elliot and Eno Bassey. The Patilad Ice Blocks will be managed and overseen by Igbokwe Ifeanyichukwu, a first-class Ice Block expert of over twenty years having worked as the sales and marketing manager for a big frozen food retail company in Ogudu Lagos Nigeria, helping the company to reach her targets, gaining sound relationship with top-notch customers, like street hawkers, Bar houses, hotels, mobile caterers, event planners and the likes.
Products and Services
Patilad Ice Blocks will provide wholesale and retail blocks of varied sizes of ice water with an option of home delivery service and a free delivery for bulk purchases.
We are also very prompt with impeccable customer service.
We have a 24 hours power source that keeps us always in supply. Our Ice Blocks are also produced in commercial volumes.
Nigeria, no doubt, is both Africa’s most populated country and its largest economy but also its most important consumer of food products. The size of the food and beverage industry in Nigeria according to IMF is valued at 800 Billion Naira with an estimated 40% growth expected in 2016 alone. The high demand for Ice block is due to the hot climatic weather condition in Nigeria and the inadequate power supply from PHCN. The major users of ice block in Nigeria are hospitals, hotels, \shop owners, street Traders and organizers of parties in highly populated towns and cities like Lagos, Port-Harcourt, Maiduguri, Kano and Sokoto.
Lagos is the business capital of Nigeria and its second-most populous state, Lagos state boasts of over 50 million residents the ice block industry valued at 50 billion per annum. Experts also believe that this market will witness a 45% growth in 2017 alone. The cost of selling one block (whole sale price) is about N150 (rainy season) to N250 during the dry season.
The Ogudu area of Lagos has in recent times begun to capture the interest of greater Lagos residents. This is because this once sleepy and relatively quiet business and residential community have attracted in recent times the interest and investments (in real estate) of Lagos’ many high and mighty.
In the true sense of the word, there is just one competitor in the Ogudu service, Sankol Ice Blocks, which has a similar but far lower quality in Ice and customer service. Other competitors are kiosk sized ice blocks in market places and street corners who do not have a consistent Ice block service.
Patilad Ice Block seeks N5 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital.
Funding for the launch of the business will be provided primarily by equity from the partners and investors.
Our market survey and research shows that Patilad Ice Blocks holds the promise of reaching positive cash flow in its 7th month of operation. The advantage of this, is the provision it makes for accelerated repayment of its loan obligations, as well as for dividends to be paid to the owners.
Revenue is expected to amount to N12,984,326 and profit N3,592,736 in our first year of operation.
Specification: Ice Block Production Business Plan