Business Proposal for Jangu Holdings Limited
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Jangu Holdings Ltd is set to markets, procure, transport, store, distribute and sell commercially viable, high quality and high value JESA Farm dairy products. The company will be operating effective and efficient milk storage centers to DDA national standards of hygiene and safety.
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BUSINESS PROPOSAL FOR JANGU HOLDINGS LIMITED.
Company profile
Name: Jangu Holdings Limited.
Email: smilezfifie@gmail.com
Tel: 0787715771/0703369383
Directors:
Mr. Baingana Jovan
Mrs. Kiconco B. Fiona
Mr. Muhairwe Colleb Katoroogo
Sectretary
Ms. Kabibi Justine
Executive summary
Jangu Holdings Ltd is set to markets, procure, transport, store, distribute and sell commercially
viable, high quality and high value JESA Farm dairy products. The company will be operating
effective and efficient milk storage centers to DDA national standards of hygiene and safety.
Jangu Holdings Ltd performs a vital JESA milk products marketing role, operating at the
interface between the JESA Farm Dairy and the customers. Jangu Holdings Ltd is
incorporated and fully registered under The Laws of the Republic of Uganda. The company
was issued with certificate of incorporation on November 21st, 2018.
Company profile
Name: Jangu Holdings Limited.
Email: smilezfifie@gmail.com
Tel: 0787715771/0703369383
Directors:
Mr. Baingana Jovan
Mrs. Kiconco B. Fiona
Mr. Muhairwe Colleb Katoroogo
Sectretary
Ms. Kabibi Justine
Executive summary
Jangu Holdings Ltd is set to markets, procure, transport, store, distribute and sell commercially
viable, high quality and high value JESA Farm dairy products. The company will be operating
effective and efficient milk storage centers to DDA national standards of hygiene and safety.
Jangu Holdings Ltd performs a vital JESA milk products marketing role, operating at the
interface between the JESA Farm Dairy and the customers. Jangu Holdings Ltd is
incorporated and fully registered under The Laws of the Republic of Uganda. The company
was issued with certificate of incorporation on November 21st, 2018.
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The main objective of Jangu Holdings Ltd is to ensure quality and uncontaminated dairy
products gets to the consumers. A clear operation plan on how goods are good to be delivered to
consumers will be put in place.
Community need
Milk products and milk provides important nutrients. However, milk when not kept under
good hygienic conditions can harbor dangerous microorganism that poses health danger to
the consumers. Everyone in the Uganda wishes to consume milk kept under hygienic
conditions. According to research conducted by Veterinary Medicine International, in western
part of Uganda there is Prevalence of Antimicrobial Resistance and Mastitis cases of Bacterial
Contaminants of Milk. The safety, and quality of milk needs to be improved. Jangu Holdings Ltd
intends to solve the problem of Ugandans buying contaminated milk from the streets by
supplying quality milk to them.
Solution
We intend to have milk refrigerators meeting the quality standard in all our outlets.
Refrigeration plays a significant role in ensuring the milk to be bought by the consumers is
healthy and safe. Our refrigerators will operate at a temperature of less than 4 degrees so as
to minimize degradation of milk components and also reduce any chance of bacterial
contamination. All the consumers buying from our outlets are assured of quality products
free from harmful bacteria.
Partnership
products gets to the consumers. A clear operation plan on how goods are good to be delivered to
consumers will be put in place.
Community need
Milk products and milk provides important nutrients. However, milk when not kept under
good hygienic conditions can harbor dangerous microorganism that poses health danger to
the consumers. Everyone in the Uganda wishes to consume milk kept under hygienic
conditions. According to research conducted by Veterinary Medicine International, in western
part of Uganda there is Prevalence of Antimicrobial Resistance and Mastitis cases of Bacterial
Contaminants of Milk. The safety, and quality of milk needs to be improved. Jangu Holdings Ltd
intends to solve the problem of Ugandans buying contaminated milk from the streets by
supplying quality milk to them.
Solution
We intend to have milk refrigerators meeting the quality standard in all our outlets.
Refrigeration plays a significant role in ensuring the milk to be bought by the consumers is
healthy and safe. Our refrigerators will operate at a temperature of less than 4 degrees so as
to minimize degradation of milk components and also reduce any chance of bacterial
contamination. All the consumers buying from our outlets are assured of quality products
free from harmful bacteria.
Partnership
The company has partnered with JESA Farm Dairy to ensure a steady supply of milk into the
market. Our partnership also ensure the production of milk from the farm to the consumer is
done under hygienic conditions.
JESA Farm Dairy is a company that processes dairy products. It was founded in 1994, it
takes pride in its quality services offered to the consumers, it is also one of the reasons why it
has been able to stay in business for long. They produce a number of dairy products, our
partnership with them will see more products supplied to the marketing. The company have a
good reputation that has built over the years.
Loan request
We are requesting a loan of 120 million UGX payable in 2 years at an annual rate of 22%.
Our estimates monthly revenue per month for the first six months is 82 million UGX. After
factoring in salaries of 5 employees of 2.4 million UGX, fuel 3.74 million UGX, Bulenga Depot
rent 0.5 million UGX, Fort potal Depot Rent 0.2 million UGX, UGX, 60,000 UGX refrigeration
cost and miscellaneous expenditures of 1 million UGX we are left with 70.1 million. Enough
money to repay the loan.
Investment plan
The company intends to put up two JES milk distribution outlets, one being at Bulenga
Kampala central part of Kampala while the second being at Fortal Portal, Western part of
Uganda. Each depot is estimated to cost 10million UGX to put in place. It includes acquiring
office furniture, buying fridges, computers, printers and internet connection. Also, Jangu
Holdings Company will have to pay a security deposit of 70 million UGX to JESA farm.
market. Our partnership also ensure the production of milk from the farm to the consumer is
done under hygienic conditions.
JESA Farm Dairy is a company that processes dairy products. It was founded in 1994, it
takes pride in its quality services offered to the consumers, it is also one of the reasons why it
has been able to stay in business for long. They produce a number of dairy products, our
partnership with them will see more products supplied to the marketing. The company have a
good reputation that has built over the years.
Loan request
We are requesting a loan of 120 million UGX payable in 2 years at an annual rate of 22%.
Our estimates monthly revenue per month for the first six months is 82 million UGX. After
factoring in salaries of 5 employees of 2.4 million UGX, fuel 3.74 million UGX, Bulenga Depot
rent 0.5 million UGX, Fort potal Depot Rent 0.2 million UGX, UGX, 60,000 UGX refrigeration
cost and miscellaneous expenditures of 1 million UGX we are left with 70.1 million. Enough
money to repay the loan.
Investment plan
The company intends to put up two JES milk distribution outlets, one being at Bulenga
Kampala central part of Kampala while the second being at Fortal Portal, Western part of
Uganda. Each depot is estimated to cost 10million UGX to put in place. It includes acquiring
office furniture, buying fridges, computers, printers and internet connection. Also, Jangu
Holdings Company will have to pay a security deposit of 70 million UGX to JESA farm.
However, directors have already raised 40 million UGX to be used in paying for security, so
only a balance of 30 million UGX will be deducted from the loan to add up to the required
70 million UGX for the security. The company will also use 72 million UGX shilling to
purchase refrigerated distribution truck.
Sales and Marketing Plan
Jangu Holdings Ltd intends to maintain an extensive marketing campaign that will ensure
maximum visibility for the business in the targeted market through advertisements using a team
of marketers that will go door to door educating people about JESA products using JESA
marketing materials like flyers and t-shirts.
JESA branding materials will be obtained from JESA Farm Dairy and availed to local retailers
which will increase product visibility in the market.
The marketing team will also be collecting views from consumers and potential clients on best
ways we can improve our service delivery. These will ensure we quickly gain competitive
advantage in the market. Furthermore, we ensure all our depots never run short of supplies.
The JESA Farm Dairy’s products will be distributed to Agent Outlets, Supermarkets, and
Large retail outlets like wholesaler shops, Education Institutions and retail shops in the
targeted towns.
The targeted western route will be starting from Bulenga, Bujuuko, Mityana, Mubende,
Kyenjojo, Fort Portal, Bundibugyo, Hima, Kasese, Bwera, Ishaka, Kabwohe, Ibanda, Mbarara,
Ntungamo, Kabale, Kisoro among others.
only a balance of 30 million UGX will be deducted from the loan to add up to the required
70 million UGX for the security. The company will also use 72 million UGX shilling to
purchase refrigerated distribution truck.
Sales and Marketing Plan
Jangu Holdings Ltd intends to maintain an extensive marketing campaign that will ensure
maximum visibility for the business in the targeted market through advertisements using a team
of marketers that will go door to door educating people about JESA products using JESA
marketing materials like flyers and t-shirts.
JESA branding materials will be obtained from JESA Farm Dairy and availed to local retailers
which will increase product visibility in the market.
The marketing team will also be collecting views from consumers and potential clients on best
ways we can improve our service delivery. These will ensure we quickly gain competitive
advantage in the market. Furthermore, we ensure all our depots never run short of supplies.
The JESA Farm Dairy’s products will be distributed to Agent Outlets, Supermarkets, and
Large retail outlets like wholesaler shops, Education Institutions and retail shops in the
targeted towns.
The targeted western route will be starting from Bulenga, Bujuuko, Mityana, Mubende,
Kyenjojo, Fort Portal, Bundibugyo, Hima, Kasese, Bwera, Ishaka, Kabwohe, Ibanda, Mbarara,
Ntungamo, Kabale, Kisoro among others.
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We will be develop the profile of our customers as the days goes by. Understanding our
customers will help us make key decisions related to marketing plans and products. Our strategy
will be the one which makes us different from our competitors. It will be very important for us to
understand why customers buy from us and possibility that might make them otherwise buy from
our rivals. Social platform will be another important tool which we will use to market our
delivery services. All our marketing strategies will be reviewed periodically until we establish
that one strategy that work best where we can channel more resources towards it.
Management
The directors of Jangu Holdings Ltd are qualified professionals, they have the abilities and
capacity to ensure smooth running of the company operations. The company will also hire
competent personnel who will carry out the assigned duties without any close supervision.
The computers bought by the company will be used in keeping all the necessary records, these
will ensure accountability. The employee to be in charge of finance will be an individual of high
integrity so as to minimize cases of money misuse. Audit of all our expenditures and earning will
be done monthly as opposed to annually.
Trained staff will run the outlets with proper stock taking skills and accountability being key in
the daily operations. The staff will also be equipped with customer service skills to ensure clients
are satisfied at all times and proper client feedback handling communication media will be put in
place to maximize their satisfaction.
The management of the company will entail;
customers will help us make key decisions related to marketing plans and products. Our strategy
will be the one which makes us different from our competitors. It will be very important for us to
understand why customers buy from us and possibility that might make them otherwise buy from
our rivals. Social platform will be another important tool which we will use to market our
delivery services. All our marketing strategies will be reviewed periodically until we establish
that one strategy that work best where we can channel more resources towards it.
Management
The directors of Jangu Holdings Ltd are qualified professionals, they have the abilities and
capacity to ensure smooth running of the company operations. The company will also hire
competent personnel who will carry out the assigned duties without any close supervision.
The computers bought by the company will be used in keeping all the necessary records, these
will ensure accountability. The employee to be in charge of finance will be an individual of high
integrity so as to minimize cases of money misuse. Audit of all our expenditures and earning will
be done monthly as opposed to annually.
Trained staff will run the outlets with proper stock taking skills and accountability being key in
the daily operations. The staff will also be equipped with customer service skills to ensure clients
are satisfied at all times and proper client feedback handling communication media will be put in
place to maximize their satisfaction.
The management of the company will entail;
Plan: a written plan will be put in place of things that need to be accomplished within a specific
time. They will comprise of financial plan, marketing plan, sales plan and objectives to be
achieved. All the plans will be reviewed more often to see if everything is going as intended.
Where there is anything to be adjusted it will be done on timely basis.
Delegating employees duties: All the employees will be allowed to work freely, there will be no
micro managing. Everyone will get enough space that he or she needs to work. Each will have a
clear mandate which he or she must deliver. Employees will each be trained on what they are
required of them to do.
Monitoring operations: All the undertakings of the company will be closely monitored, all the
deliveries done. How the refrigeration service is conducted. The stock available for customers, at
what point do more supplies is needed to be delivered. Running short of stock will negatively
impact business, so it must be avoided at all costs.
Management within the company will be in no doubt done by professionals.
Competition
The business of milk distribution in Uganda has few players. The competition is still minimal,
one can easily gain market share by offering quality products and through proper marketing. Our
door to door marketing will enable us gain market share quick enough. We will also offer our
products to consumers at a fair price. Price is always the driving force that is the main reason as
to why we will offer competitive price. For new entrants into the market like us quality is
paramount so as to win the trust of consumers. We will offer quality services to our clients.
time. They will comprise of financial plan, marketing plan, sales plan and objectives to be
achieved. All the plans will be reviewed more often to see if everything is going as intended.
Where there is anything to be adjusted it will be done on timely basis.
Delegating employees duties: All the employees will be allowed to work freely, there will be no
micro managing. Everyone will get enough space that he or she needs to work. Each will have a
clear mandate which he or she must deliver. Employees will each be trained on what they are
required of them to do.
Monitoring operations: All the undertakings of the company will be closely monitored, all the
deliveries done. How the refrigeration service is conducted. The stock available for customers, at
what point do more supplies is needed to be delivered. Running short of stock will negatively
impact business, so it must be avoided at all costs.
Management within the company will be in no doubt done by professionals.
Competition
The business of milk distribution in Uganda has few players. The competition is still minimal,
one can easily gain market share by offering quality products and through proper marketing. Our
door to door marketing will enable us gain market share quick enough. We will also offer our
products to consumers at a fair price. Price is always the driving force that is the main reason as
to why we will offer competitive price. For new entrants into the market like us quality is
paramount so as to win the trust of consumers. We will offer quality services to our clients.
Reliability is another key factor to gaining trust of the customers. All our products will be
delivered to the desired destinations on time. We will always be there for our customers.
To compete effectively with our major competitors we will apply the following;
Niche down: Our target consumers will be the basic consumers such as the students and people
from the village. Market of basic consumers always result in quick sales and more revenue.
Hold competitive angle: We will capitalize on our strengths. We will try to always listen to
complaints, inquiries and complements of our consumers. We will also try to provide best prices
to them.
Quality products and services: All our goods and services will be of high quality. We will
select products with good packaging also that are eye catching.
Good customer relation: We will establish relationship with all our clients. Always there to
listen to them. Delivering good on services on time.
Products
The product line will comprise of the following JESA Farm Dairy products;
ï‚· Plain Yoghurt
ï‚· Fruit Yoghurt
ï‚· Drinking Yoghurt
ï‚· Smooth Yoghurt
ï‚· UHT Milk
ï‚· Flavored Milk
ï‚· Fresh Milk
delivered to the desired destinations on time. We will always be there for our customers.
To compete effectively with our major competitors we will apply the following;
Niche down: Our target consumers will be the basic consumers such as the students and people
from the village. Market of basic consumers always result in quick sales and more revenue.
Hold competitive angle: We will capitalize on our strengths. We will try to always listen to
complaints, inquiries and complements of our consumers. We will also try to provide best prices
to them.
Quality products and services: All our goods and services will be of high quality. We will
select products with good packaging also that are eye catching.
Good customer relation: We will establish relationship with all our clients. Always there to
listen to them. Delivering good on services on time.
Products
The product line will comprise of the following JESA Farm Dairy products;
ï‚· Plain Yoghurt
ï‚· Fruit Yoghurt
ï‚· Drinking Yoghurt
ï‚· Smooth Yoghurt
ï‚· UHT Milk
ï‚· Flavored Milk
ï‚· Fresh Milk
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ï‚· Tropical Delite Dairy Blend
ï‚· Butter
ï‚· Cream
Other products will be added onto the list depending on how customers respond in the market.
Projection
We expect the demand will increase with time, given Ugandan’s high consumption of milk
products. We therefore expect that with continued timely efficient distribution and achieved
customer satisfaction the company will grow very fast. We see our self a very big company
within the next 3 years. Milk is without one of the leading consumed product in Uganda.
We also expect to see cases of illness related to contaminated milk reduce in our area of
operations, since the customers will now have access to quality products kept under hygienic
conditions.
We plan to expand the business to other areas in the near future, so that those in other parts of the
country can also gain access to quality milk products thus improving their health. The number of
employment opportunity created by our business will keep increasing as we expand the business.
We expect a strong rate of growth especially during the dry season and the festive seasons.
The following table shows the projected sales forecast for the first 6 months;
Product Name
Units (Boxes) Per
Week
Per Month First 6 Months
Plain Yoghurt 250 1,000 6,000
ï‚· Butter
ï‚· Cream
Other products will be added onto the list depending on how customers respond in the market.
Projection
We expect the demand will increase with time, given Ugandan’s high consumption of milk
products. We therefore expect that with continued timely efficient distribution and achieved
customer satisfaction the company will grow very fast. We see our self a very big company
within the next 3 years. Milk is without one of the leading consumed product in Uganda.
We also expect to see cases of illness related to contaminated milk reduce in our area of
operations, since the customers will now have access to quality products kept under hygienic
conditions.
We plan to expand the business to other areas in the near future, so that those in other parts of the
country can also gain access to quality milk products thus improving their health. The number of
employment opportunity created by our business will keep increasing as we expand the business.
We expect a strong rate of growth especially during the dry season and the festive seasons.
The following table shows the projected sales forecast for the first 6 months;
Product Name
Units (Boxes) Per
Week
Per Month First 6 Months
Plain Yoghurt 250 1,000 6,000
Fruit Yoghurt 50 200 1,200
Drinking Yoghurt 100 400 2,400
Smooth Yoghurt 50 200 1,200
UHT Milk 400 1,600 9,600
Flavoured Milk 50 200 1,200
Fresh Milk (in Litres) 500 2,000 12,000
Tropical Delite Dairy
Blend
30 120 720
Butter and Cream N/A N/A N/A
Table 1: Expected product sales during the first 6 months of distribution.
Here is the projection for the second year of operations
Product Name
Units (Boxes) first 6
months
Second 6
months
Year 2
Plain Yoghurt 6,000 12,000 18,000
Fruit Yoghurt 1,200 2,400 3,600
Drinking Yoghurt 2,400 4,800 7,200
Drinking Yoghurt 100 400 2,400
Smooth Yoghurt 50 200 1,200
UHT Milk 400 1,600 9,600
Flavoured Milk 50 200 1,200
Fresh Milk (in Litres) 500 2,000 12,000
Tropical Delite Dairy
Blend
30 120 720
Butter and Cream N/A N/A N/A
Table 1: Expected product sales during the first 6 months of distribution.
Here is the projection for the second year of operations
Product Name
Units (Boxes) first 6
months
Second 6
months
Year 2
Plain Yoghurt 6,000 12,000 18,000
Fruit Yoghurt 1,200 2,400 3,600
Drinking Yoghurt 2,400 4,800 7,200
Smooth Yoghurt 1,200 2,400 3,600
UHT Milk 9,600 19,200 28,800
Flavoured Milk 1,200 2,400 3,600
Fresh Milk (in Litres) 12,000 24,000 36,000
Tropical Delite Dairy
Blend
720 1,440 2,160
Butter and Cream N/A N/A N/A
We are projecting an increase in revenue within the first six months of operation.
Projected earnings in the first 6 months of the first
Product Name
Units (Boxes)
Per Week
Buying price
per Box
Selling
price per
box
Profits
Per week
UHT Milk 9,600 19,200 28,800
Flavoured Milk 1,200 2,400 3,600
Fresh Milk (in Litres) 12,000 24,000 36,000
Tropical Delite Dairy
Blend
720 1,440 2,160
Butter and Cream N/A N/A N/A
We are projecting an increase in revenue within the first six months of operation.
Projected earnings in the first 6 months of the first
Product Name
Units (Boxes)
Per Week
Buying price
per Box
Selling
price per
box
Profits
Per week
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Plain Yoghurt 250 8million 13million 5 million
Fruit Yoghurt 50 1.6million 2.6million 1million
Drinking Yoghurt 100 3.2 million 5.2million 2 million
Smooth Yoghurt 50 1.6 million 2.6 million 1 million
UHT Milk 400
10.4 million 19.2
million
8.8 million
Flavoured Milk 50 1.6 million 2.6million 1million
Fresh Milk (in Litres) 500 1.3million 2.4million 1.1 million
Tropical Delite Dairy
Blend
30
0.96 million 1.56
million
0.6million
Butter and Cream N/A
Total profit per week 20.5 million
Total profit per month 82 million
Projected earnings for the Second year of operation; first 6 months
Product Name
Units (Boxes)
Per Week
Buying price
per Box
Selling
price per
box
Profits
Per week
Fruit Yoghurt 50 1.6million 2.6million 1million
Drinking Yoghurt 100 3.2 million 5.2million 2 million
Smooth Yoghurt 50 1.6 million 2.6 million 1 million
UHT Milk 400
10.4 million 19.2
million
8.8 million
Flavoured Milk 50 1.6 million 2.6million 1million
Fresh Milk (in Litres) 500 1.3million 2.4million 1.1 million
Tropical Delite Dairy
Blend
30
0.96 million 1.56
million
0.6million
Butter and Cream N/A
Total profit per week 20.5 million
Total profit per month 82 million
Projected earnings for the Second year of operation; first 6 months
Product Name
Units (Boxes)
Per Week
Buying price
per Box
Selling
price per
box
Profits
Per week
Plain Yoghurt 6000 192million 312million 120 million
Fruit Yoghurt 1200 38.4million 62.4million 24million
Drinking Yoghurt 2400
3.2 million 124.8
million
48 million
Smooth Yoghurt 1200
38.4million 62.4
million
48 million
UHT Milk 9600
10.4 million 460.8
million
211.2 million
Flavoured Milk 1200 38.4million 62.4million 48million
Fresh Milk (in Litres) 12000 35.1million 64.8million 26.4 million
Tropical Delite Dairy
Blend
720
23.04
million
37.44
million
14.4million
Butter and Cream N/A
Total profit per week 492 million
Total profit per month 1.968 billion
Sustainability of the business
Fruit Yoghurt 1200 38.4million 62.4million 24million
Drinking Yoghurt 2400
3.2 million 124.8
million
48 million
Smooth Yoghurt 1200
38.4million 62.4
million
48 million
UHT Milk 9600
10.4 million 460.8
million
211.2 million
Flavoured Milk 1200 38.4million 62.4million 48million
Fresh Milk (in Litres) 12000 35.1million 64.8million 26.4 million
Tropical Delite Dairy
Blend
720
23.04
million
37.44
million
14.4million
Butter and Cream N/A
Total profit per week 492 million
Total profit per month 1.968 billion
Sustainability of the business
Milk being one of the basic needs. Milk market has a huge untapped potential, with formal form
of distribution of milk accounting only for 9 percent, (Saunders & Lewis2012).
Reference
of distribution of milk accounting only for 9 percent, (Saunders & Lewis2012).
Reference
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Enterprise, B. Participation form included with the bid/proposal. This commitment.
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