1. SUMMARY OF THE PROJECT
The purpose of the project is the creation of an enterprise for the extraction and bottling of artesian water. The feasibility of the project is due to the growing popularity of this product both for use in offices and for home use.
Production location - x. Pukhlyakovsky, Rostov region. Sales region - Rostov-on-Don and Rostov region. The price segment is Standard +. The production premises are supposed to be rented out, delivery is carried out by our own transport. Distribution is carried out through an affiliate network of stores. The trademark VodoPuh and the trademark are registered.
The project is attractive for investment, which is confirmed by financial calculations and the resulting integrated performance indicators (Table 1).
Table 1. Integrated project performance indicators
2. COMPANY DESCRIPTION AND INDUSTRY
The company operates in the extraction and bottling of artesian water in 19-liter bottles. The main consumers of this product are organizations of any field of activity and any size; the use of bottled water for household needs in our country is underdeveloped, but is increasingly gaining popularity. Today, according to various sources, in Russia the consumption of bottled water per person is about 40 liters per month; in Europe, this figure is in the range of 100-150 liters. Thus, we can confidently talk about the significant growth potential of the industry. It should also be taken into account that Russia and, in particular, the Rostov Region, have large reserves of fresh water, which positively affects the cost of the final product.
According to the Federal State Statistics Service, in the Rostov Region, more than 5, 000 entities of only small and medium-sized enterprises operate. If we take the average number of enterprises in 20 people, this will amount to 100, 000 potential consumers. Based on a monthly water consumption of 40 liters per month, of which about 75% of people consume at the workplace, the total need for water supply for organizations is 100, 000 * 40 * 0.75 = 3, 000, 000 liters per month. The number of households and their water consumption is extremely difficult to assess, however, we can say that it is not less than the water consumption by organizations.
The competitive environment in the region is represented by the three largest suppliers, two of which produce and distribute through a network of their own stores (1 and 3 of their own brands, respectively), and one is an aggregator distributor that imports water from other regions into the region (7 brands in various price segments); in addition, about 10 regional manufacturers are present in the region, producing products of the budget segment and distributing through village grocery stores; as a rule, they are not present in large cities of the region.
The technological process includes lifting water from a pre-drilled well, cleaning it, softening and disinfecting, and then pouring it into bottles. After that, water is delivered to points of sale using our own transport. Sale is carried out through a network of affiliate stores. The competitiveness of the enterprise is ensured by the high quality of purification and organoleptic properties of water provided by high-quality water treatment.
3. DESCRIPTION OF GOODS
The company extracts water from an artesian well located in the Pukhlyakovsky farm in the Rostov Region. The water in this region is highly soft, as well as low acidity and metal impurities. By treatment on special equipment, the water is disinfected, its organoleptic properties are increased.
The quality of bottled drinking water is regulated by SanPiN 08/18/2019.1116-02. According to this regulation, all drinking water is divided into two categories: 1st category and the highest category. VodoPuh belongs to the highest category, which will increase the profitability of the enterprise due to the higher selling price, and, accordingly, increase the marginal income of the enterprise.
The quality and characteristics of VodoPuH water are confirmed by independent laboratories in Rostov-on-Don. The main characteristics of water are given in Table. 2 in comparison with the requirements of SanPiN 08/18/2019.1116-02.
Table 2. Comparative description of the basic properties of water "VodoPuh"
In terms of chemical composition harmlessness, organic, radiation and bacteriological contamination, as well as in other parameters specified in the standard, VodoPuh fully complies with the requirements, far exceeding them in most parameters.
Water is bottled in 19-liter PET bottles with a handle. PET is used as an alternative to the more common polycarbonate bottles, which, despite their higher stiffness and longer turnover time, contain bisphenol A, which negatively affects the taste of the water. The turnover of bottles, according to TO 2297-01-96201068-2008, is 50-60 cycles; in practice, the service life is 1.5-2 years. After this, the container must be disposed of.
A label with the VodoPuh logo is applied to the bottles, information about the manufacturer, water parameters and contact information of partner stores.
4. SALES AND MARKETING
VodoPuh water is sold through a network of retail outlets specializing directly in drinking water. At the time of the start of the project, the assortment of the network includes three trademarks of the Standard and Premium segments. VodoPuh occupies an intermediate niche, which significantly increases the competitiveness of the brand.
A cooperation agreement has been signed with the network. Marketing and brand promotion is carried out by a trading network; All assortment brands are advertised equally. Financing of advertising events is shared, 20% is paid by the manufacturer VodoPuh, 30% is paid by the manufacturer of other brands of the assortment, 50% is paid by the distributor. This distribution of shares (20/30) generally corresponds to the share of brands in total sales. The media plan is given in Table. 3.
Since the demand for drinking water has a pronounced seasonal character, an advertising campaign is planned taking into account its changes.
Table 3. Media plan for the annual advertising campaign
Water is sold by the distribution network both through retail outlets and with home delivery upon reservation. An order can be placed either by telephone or via the website of the network.
As of January 2016, the share of the network in the total sales of bottled (19 liters of bottle) water is 15%. Due to the expansion of the assortment with VodoPuh water, it is expected to increase the share to 20%.
5. PRODUCTION PLAN
The first stage of the project is the drilling of a well in the territory adjacent to x. Pukhlyakovsky Rostov region. Water production comes from the second aquifer; the depth of its occurrence is 120-150 m. The expected debit of the well is 90 m3 / day. Exploration and drilling are carried out by a specialized company. The cost of work is given in Table. four.
Table 4. The cost of the installation of artesian wells
Water is supplied to a production room located 50-70 m from the well, in which bottling is carried out directly. The list of equipment is given in Table. five.
Table 5. A set of equipment for bottling water in 19-liter bottles
The debit of the well exceeds the amount of water required during the first two years of the project. The volume of production is dictated by the volume of retail sales. The average production in the first two years is 10, 000 liters per day. In stock, you must maintain a constant supply to cover two-day demand. Three light trucks with a carrying capacity of 1.5 tons are used to transport water from the place of production to points of sale.
Required production area - 50 sq.m., warehouse - 80 sq.m. The number of production workers is 4 people. The number of auxiliary and warehouse workers - 3 people. Full staffing is given in Table. 6. The production plan is given in App. five.
All workplaces are certified according to the legislation, maximum safety and availability of labor protection means are provided.
6. ORGANIZATIONAL PLAN
All administrative and managerial functions are performed by an individual entrepreneur. To organize effective work, he needs to have general knowledge in the field of entrepreneurship, tax legislation and accounting. Important is also knowledge of detailed knowledge of production technology and labor protection. Technology training is provided by the equipment supplier within 2 business days after the equipment is installed directly at the factory.
Table 6. Staffing and payroll
All employees are directly subordinate to the owner of the enterprise.
Movers perform both work on the production site and work on the road when unloading cars at retail outlets. The dispatcher accepts orders from the distributor, and also plans the route of vehicles.
7. FINANCIAL PLAN
The financial plan is designed for a five-year period. The basic economic indicators are calculated, cash flow - ordinary and discounted.
Table 7. Investment costs
Table 8. Variable costs
Table 9. Fixed costs
The full financial plan is given in Appendix. 7. Based on a comparison of financial indicators, a simplified taxation system (STS) was chosen with the object income minus expense.
8. EVALUATION OF EFFICIENCY
Based on the financial calculations received, the integral indicators of the project’s effectiveness are determined (Table 1). A discount rate of 10% was chosen based on the low risk level of the project, and since the industry is not innovative, the market is well known and is not affected by negative factors from the general economic situation in the country.
Analyzing the integral performance indicators, we can conclude that the project is promising and is of interest to the investor.
9. WARRANTIES AND RISKS
Table 10. Possible risks and measures for their prevention and / or elimination of consequences
Given these factors, we can conclude that the risks of the project are quite low.
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