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Quarry Business Plan

Introduction

Granite is a coarse-grained intrusive igneous rock composed primarily of light-coloured minerals. Crushed granites are small chips of granite, used as a base layer for paving. They are rock-aggregate used in building, landscaping, construction of bridges and a host of other civil engineering construction.

Primary aggregates are materials extracted directly from the ground in quarries or pits.

They can be either sand and gravel, or hard rock. Hard rock deposits are quarried from a fresh face and broken by mechanical means into aggregate. Geologically they can be igneous rocks such as granite or basalt; sedimentary rocks such as limestone or sandstone; or metamorphic rocks such as quartzite.

As aggregates, they are often referred to as crushed rock or by their individual geological names.

Explosives will need to be used to break the rock face into pieces and often the rock will pass through several stages of crushing and screening to create the final product.

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Table of content

Page

Executive Summary4
Business Description7
Products and Services12
Market Analysis13
Competitor Analysis15

Sales and Marketing Plan19
Operational Plan25
Management Plan 27
Financial Plan and Projections30

Executive Summary

Overview

Patilad Quarry produces and sells types and grades of gravel to public and private customers in Abuja and its surrounding State. We are into the extraction of primary aggregates like sand and gravel, or hard rock. We are a very promising start-up, and in just two months of operation, we operated at a profit of over 10million naira in sales selling over 2000 tons of gravel products.

The Company

Patilad Quarry manufactures numerous types of gravel products from the base rock.  These products are 3/4″ and 3″ ABC, 3/8″, 1/2″, 3/4″ 1-11/2″ screened and washed rock, 1″-3″ cobble, and 4″-6″ cobble. In addition, we provide, pre-washed sand, fill dirt, topsoil, bedding materials and crusher fines, along with various sizes of boulders.  These products are sold to municipalities, business entities and end-users in all the regions of our factory base, with much concentration around Abuja.

We rent a quarry site in a locally owned gravel pit in Kabusa, of over 15 years in FCT Abuja.  We have greatly expanded the base of customers in the last three months.

Products and Services

Patilad Quarry Inc. deals exclusively in providing gravel and gravel-related products, including but not limited to the following:

3/4″ ABC, 3″ ABC, 3/8″ screened and washed rock, 1/2″ screened and washed rock, 3/4″ screened and washed rock, 1-11/2″ screened and washed rock, 1″-3″ cobble, 4″-6″ cobble, Pre-washed sand, Fill dirt, Topsoil, Bedding materials, Crusher fines, Boulders–various sizes

The company provides consulting and products.  Customers can either provide their own trucks for products, or the company will deliver for a fee.  Our standard average delivery fee is N15, 000 within Abuja with maximum related expenses of N8,000.  The only product costs will be associated with production.  Our company trucks can’t handle all deliveries, so our trucking is subcontracted to independent trucking companies.

In addition, we plan to provide SX grade asphalt. 

The Market

The market for asphalt, gravel and gravel-related products has grown at a steady rate for the past seven years and shows no signs of abating. There are trends toward both more institutional and private road development and more private end-user interest in quality and customer service. The market in construction products has grown at 12% per year for the past three years, and is projected to increase.  More important is the increased need for road-related products.  With an almost 45% population increase in Abuja in the last 10 years, it is estimated that over 40% of existing country roads will require maintenance in the next four years while 35% of roads are under construction. Likewise, the massive building structures being erected in this region on a monthly basis are a trigger for investors in this field. 

Competition

The terrain of our business area is a region where “Word-of-Mouth” endorsements are unusually important. Most private end-user customers seem to choose their provider based on quick delivery, friendliness and customer service. Business and construction-related users choose based on the establishment of a mutually beneficial and trustworthy relationship.

Financial Considerations

Patilad Quarry seeks N300 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 show that Patilad Quarry 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 N120,000,000 and profit N90,000,000 in our first year of operation.

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