Global Dustless Chalk LTD Business Plan 16.03.2020

BUSINESS PLAN:
REQUISITION & APPLICATION
OF A
UGX 800 MILLION
PROJECT FINANCING FACILITY
TO SCALE UP
THE
GLOBAL DUSTLESS CHALK LIMITED
LIGHT INDUSTRIAL PLANT
BASED AT
KIKUBAMPANGA, WAKISO DISTRICT
GLOBAL DUSTLESS CHALK LIMITED

P.O. PRIVATE BAG,
KIKUBAMPANGA, KAKIRI,
UGANDA.
Cell Phone: +256-703 073 304 / 752 690 717 / 779 599 927
E‐Mail: [email protected]
MARCH 2020
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GLOBAL DUSTLESS CHALK LTD Business Plan Corporate Document
A. TABLE OF CONTENTS
S/NO. DESCRIPTION PAGE
PREFACE 1
1.0 EXECUTIVE SUMMARY 2

1.1 Project Description 2
1.2 Location and Site 3
1.3 Business Objectives 3
1.4 The Team 4
1.5 Financing Requirement for Project Investment 4
1.6 Management Equity 6
1.7 Market Situation & Outlook 6
1.8 Marketing 7
1.9 Raw Materials & Inputs 8
1.10 Technology & Engineering 8
1.11 Project Organization and Manpower Requirements 9
1.12 Financial and Economic Evaluation 9
1.13 Project Socio-economic Impacts 11
1.14 Risks and Mitigating Measures 11
2.0 PURPOSE OF THE DOCUMENT 12
3.0 PROJECT PROFILE 13

3.1 Business Overview 13
3.2 Description of the Business 14
3.3 Critical Success Factors of the Business 15
3.4 Enterprise History 16
3.5 Current Status of the Business 16
4.0 COMPANY PROFILE & BUSINESS LEGAL ASPECTS 17

4.1 Ownership of the Business 17
4.2 The Business 17
4.3 Core Values of Global Dustless Chalk Limited 21
4.4 Core Competencies 23
4.5 Licenses, Approvals & Consents Required and Obtained 23
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5.0 PRODUCTION PLAN 24
5.1 Description of Product 24
5.2 Description of the Location 24
5.3 Raw Materials 24
5.4 Production Equipment 25
5.5 Plant Capacity 25
5.6 Production Process 25
5.7 Production Programme 27
5.8 Quality Control 28
6.0 MARKET ANALYSIS 29

6.1 The Opportunity 29
6.2 Market Trends 30
6.3 Target Market 30
6.4 Market Segments 31
6.5 Market Demand 32
6.6 Our Competitive Advantage 33
7.0 ORGANIZATIONAL AND MANAGEMENT PLAN 34

7.1 Our Business Structure 34
7.2 Future Company Organizational Structure 38
7.3 Details of Salary Schedule 38
8.0 SALES AND MARKETING STRATEGY 40

8.1 Sources of Income 40
8.2 Sales Forecast 40
8.3 Marketing Strategy and Sales Strategy 41
8.4 Publicity and Advertising Strategy 42
8.5 Pricing Strategy 42
8.6 Payment Options 43
9.0 SUSTAINABILITY AND EXPANSION STRATEGY 44
10.0 IMPLEMENTATION PLAN 45

10.1 Project Timeline 45
10.2 Project Development Schedule 45
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11.0 FINANCIAL PLAN 47
11.1 Basis of Presumptions & Key Project Assumptions 48
11.2 Sources of Income 49
11.3 Sales Forecast 50
11.4 Total Initial Investment Cost & Financing 50
11.5 Total Annual Operating Costs 51
11.6 Enterprise Profitability 51
12.0 BUSINESS RISK ANALYSIS & MITIGATION PLAN 55

12.1 General Business Risk Analysis 55
12.2 SWOT Analysis 58
13.0 SOCIO-ECONOMIC ASPECTS 61

13.1 Economic Benefits 61
14.0 CONCLUSION & RECOMMENDATIONS 62

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B. LIST OF TABLES
T/NO. DESCRIPTION PAGE
1 Source and Use of Project Financing 5
2 Planned Company Manpower Structure 9
3 Key Project Performance Parameters 10
4 Critical Success Factors 15
5 Company Details 17
6 The Company Shareholding Structure 21
7 Required Licenses, Approvals and Consents 23
8 Demand and Supply of Chalk in Uganda [2011-2018] 32
9 Manpower Requirement and Estimated Annual Labour Cost 39
10 Project Timeline Activities 45
11 General Production & Pricing Assumptions 48
12 Operating Expense Assumptions (in Project Year 2) 49
13 Economic Related Assumptions 49
14 GDCL’s Six-Year Sales Forecast 50
15 Initial Project Investment Cost 50
16 Annual Operating Expenses 51
17 GDCL Projected Annual Net Income Statement [6 Years] 52
18 Break-even Analysis in Project Year 5 53
19 Projected Payback Period 54
20 Market Risk Management Plan for GDCL Chalk Production and Supply Operations 58
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C. LIST OF FIGURES
F/NO. DESCRIPTION PAGE
1 Projected Financial Performance Highlights 10
2 Future Global Dustless Chalk Limited Organizational Structure 38
3 Project Implementation Activities Sequence 46
4 Market Risk Assessment Matrix 57

PREFACE
This Business Plan is prepared for the objective and purpose of procurement of a UGX
800 million project finance facility for the purpose of financing the scaling-up and
expansion of an existing small-scale dustless school chalk production enterprise based
at Kikubampanga in Wakiso District and being owned and operated by Global
Dustless Chalk Limited.
In this Business Plan we have covered the project profile, company profile & business
legal aspects, production plan, market analysis, target market of the product, pricing,
product, promotion, distribution strategies for the product [dustless school chalk] as
well as the project’s sustainability and expansion strategy, implementation plan,
financial analysis, business risk analysis and mitigation plan and its socio-economic
impact.
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1.0 EXECUTIVE SUMMARY
1.1 Project Description
Global Dustless Chalk Limited is a standard and licensed chalk production company
that is based at Kikubampanga in Wakiso District of central Uganda. Global Dustless
Chalk Limited was registered as a limited liability company on the 22nd October 2019
under the Uganda Registration Services Bureau (URSB). Although Global Dustless
Chalk Limited is still operating at a cottage industry level at the moment (i.e. small-
scale industrial enterprise), that does not in any way stop us from maximizing our
potential in the chalk production line of business by scaling up our chalk production
level to substitute for the large volume of imported chalk into the country and also
exporting chalk from Uganda to other countries within the East African region.
Our business goal as a chalk production company is to become the number one choice
of schools and artisans in Uganda and other countries within the East African
Community region where we intend retailing our chalks. As a business, we are willing
to go the extra mile to invest in owning our own world – class chalk production factory
and also to hire efficient and dedicated employees. We have been able to secure permits
from all relevant departments both at local government level in Wakiso District and
also at central government level in Uganda.
Global Dustless Chalk Limited is set to redefine how standard chalk production
business should be run, not just in Wakiso District where the industry is based, but also
in the whole of Uganda. This is why we have put plans in place for continuous training
of all our staff at regular interval.
No doubt the demand for chalks is not going to plummet any time soon because there
will always be schools and artisans who need regular supply of chalks to be able to
carry out their duties, which is why we have put plans in place to continue to explore
all available markets around the communities where we intend retailing our chalks. In
the nearest future, we will ensure that we create a wide range of distribution channels
all across Uganda, the wider East African Community (EAC) and the World at large.
With that, we know we will be able to maximize profits in our business.
Our strongest selling point at Global Dustless Chalk Limited is the unique distribution
channels. There is hardly any customer that will purchase or make use of our well –
produced quality chalks who would not want to come back and make more purchase –
we take delight in welcoming repeat customers over and over again.
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Global Dustless Chalk Limited will at all times demonstrate her commitment to
sustainability, both individually and as a firm, by actively participating in our
communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting
our customers ‘needs precisely and completely. We will cultivate a working
environment that provides a human, sustainable approach to earning a living, and
living in our world, for our partners, employees and for our customers.
Global Dustless Chalk Limited is a family business that is owned by Mr. Mukiibi
Katende Twaha and his immediate family members. Mr. Mukiibi Katende Twaha is
an astute business man who has been able to start and grow the chalk cross-border
trading and small-scale production business before starting Global Dustless Chalk
Limited. He therefore has many years of cumulative experience and knowledge in the
local chalk industry organization and management and production aspects and not
only just in chalk marketing business.
1.2 Location and Site
The Global Dustless Chalk Limited Chalk Production Plant & Head Office is located at
Kikubampanga in Wakiso District which is only 22 kms (14 miles) north-east of
Kampala City along the Kampala – Hoima main road. The location is quite ideal for this
kind of light industrial enterprise in terms of its close proximity to the source of raw
materials and products market, availability of electricity and water infrastructure and
labour supply on top of being the home of the Company pioneer founder and promoter
– Mr. Mukiibi Katende Twaha.
1.3 Business Objectives
Our fundamental objective is to improve on the efficiency and quality of our fast
dustless school chalk production and supply chain management process as an
exponential function of our market expansion and business growth strategy in Uganda
and the broader East African regional market.
Our commitment to customer satisfaction is ongoing and through continuous

investment in our people and business, we are confident in maintaining and improving
our successful business practice.
The above objectives are to be achieved through:
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o Emphasizing, enhancing and cementing our partnership with all our customers
and business partners.
o Sharing our knowledge on quality requirements with customers and business
partners.
o Consolidating our position as a leader in innovation with a special emphasis on
efficiency, quality and clean environment.
o Working with and listening to our suppliers with regard to quality and process
integration.
o Ensuring that all employees are trained in, understand, practice and feel part of
our quality management system.
o Establishment and maintenance of a quality management system and continued
improvement of its effectiveness.
o Compliance with all other relevant requirements.
1.4 The Team
The Global Dustless Chalk Limited management team is spearheaded by its

founder/promoter who is a goal-driven, and highly motivated business personality in
Mr. Mukiibi Katende Twaha who has gained considerable expertise and skill in the
marketing and supply-chain distribution of dustless school chalk in Uganda. Mr.
Mukiibi Katende Twaha has literally evolved and grown with Global Dustless Chalk
Limited dustless school chalk production and supply enterprise and has in the process
gained lots of know-how, confidence and vital market network contacts that he is still
growing and ready to exploit further in the Company’s fast-paced business trajectory.
Global Dustless Chalk Limited is to all intents and purposes a healthy-growing baby
that has been raised in his hands, he knows it inside-out and is quite ready and willing
to sacrifice whatever it takes and go to great lengths to promote the Global Dustless
Chalk Limited brand of dustless school chalks, grow shareholder value and also
become the most credit-worthy dustless school chalks production and supply enterprise
in Uganda.
1.5 Financing Requirement for Project Investment
Global Dustless Chalk Limited seeks an investment capital financing of up to UGX 800
million that will be used to finance the following market expansion and business
growth priorities:
a) To expand the Company’s dustless school chalk production and market supply
capacity of the Global Dustless Chalk Limited brand of chalk products whose
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current market demand is much bigger than what the local industrial capacity in
Uganda can produce and supply.
b) To increase the disposable working capital for Global Dustless Chalk Limited
for the purchase of additional dustless school chalk production raw material
supplies and inventory stock.
c) To finance the purchase and installation of additional dustless school chalk
production equipment to complement the existing production equipment at its
Kikubampanga site and develop additional building infrastructure including a
new production area and a new storage shed.
Table 1 below is a summarized snapshot about the sources and applications of the
existing and planned dustless school chalk production enterprise by Global Dustless
Chalk Limited [GDCL] at its Kikubampanga site in Wakiso District:
Table 1: Source and Use of Project Financing

S. No. Project Investment Component Share % GDCL Existing Additional Total [UGX]
Equity [UGX] Project
Funding [UGX]
1 Land @ Kikubampanga 5.53% 25,000,000 25,000,000 50,000,000
2 Plant Buildings & Infrastructure 39.25% 55,000,000 300,000,000 355,000,000
3 Perimeter Fencing 3.32% 0 30,000,000 30,000,000
4 Plant Equipment & Machinery 23.05% 24,500,000 184,000,000 208,500,000
5 Vehicles 12.27% 0 111,000,000 111,000,000
6 Business Growth Capitalization 4.98% 0 45,000,000 45,000,000
7 Market Expansion Capitalization 3.32% 0 30,000,000 30,000,000
8 Working Capital 8.29% 0 75,000,000 75,000,000
9 TOTAL PROJECT FUNDING 100.00% 104,500,000 800,000,000 904,500,000
10 %age of Total Project Funding 11.55% 88.45% 100.00%
Notes:
1. The existing project site at Kikubampanga is approx. 450 square meters in size and is worth UGX
25 million and additional land for UGX 25 million is required for construction of additional
production and chalks storage space.
2. The construction of additional production and storage building infrastructure is budgeted to cost
UGX 300 million at current building rates.
3. Existing Company plant equipment and machinery includes: 3 Chalk Production Machines valued
at UGX 18 million; 1 Mixer valued at UGX 3 million; 1 Diesel Electric Genset valued at UGX 2
million; and Solar Power equipment (for drying) valued at valued at UGX 1.5 million.
4. Additional plant machinery and equipment required include: 1 Automatic Chalk Production Machine
valued at US$ 30,000 [UGX 110 million]; and 1 School Chalk Microwave Drying Machine valued
at US$ 20,000 [UGX 110 million].
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5. Global Dustless Chalk Limited requires transportation vehicles for purchase and delivery of raw
materials and for product distribution and supply to include: 1 used van at UGX 60 million; 1 used
4-WD Pick-Up vehicle at UGX 45 million; and 1 boda-boda with a body carriage at UGX 6 million.
1.6 Management Equity
The Management team of Global Dustless Chalk Limited is investing up to UGX

104,500,000 of its own existing assets as its own equity contribution into the proposed
business scale-up project – which is approx. 11.55% of the Total Project Investment
Capital [including the UGX 800 million requisitioned project finance]; UGX 25 million
being the value of its existing 450 square metre land asset at Kikubampanga in Wakiso
District; UGX 55 million being the market value of existing plant buildings and
infrastructure; and UGX 24.50 million being the market value of existing plant
equipment and machinery.
1.7 Market Situation and Outlook
In East Africa particularly Uganda, the number of school going children is increasing
year after year. The students enrolled in primary levels are increasing with the spread
of literacy and Govt. regulation for making primary education compulsory. So it is
predictable that, the demand of white chalk and color chalk will be in increasing mode
for coming years. Any entrepreneur can initiate chalk making business with small start-
up capital investment.
Verifiable 2018 data figures by the Ministry of Education and Sports (MoES) indicate a
desired monthly local sourcing quota of 50,000 boxes of white chalk by schools and
institutions of higher learning throughout Uganda, of which only 18,000 of acceptable
standard make is successfully sourced with the remaining quantity sourced from
outside the country being only for the local sourcing quota. The market for the white
chalk exists not only with the Uganda educational system, as it must be noted that
white chalk is the main tool for writing on boards in most pre-tertiary institutions
across the entire country with the number of schools being conservatively given
as20,313 primary schools, 3,220 senior secondary schools, 47 primary teachers colleges,
35 vocational and technical colleges, 39 private universities, 21 public universities, 4
military universities and 3 other accredited degree-awarding institutions. The market is
seen to be potentially big, given that the demand for the white chalk is conservatively
given as 1.5 million boxes of the product annually, of which for the Uganda pre-tertiary
and tertiary educational system alone can be verifiably stated as sourcing bulk of its
stocks from outside the country.
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With such a seemingly big potential, it is becomes imperative to ascertain the reasons
why the potentials that the product seems to offer are untapped, which would
invariably prove a vital factor in determining the viability of the proposed venture.
Verifiable statements have been made to the effect, providing reasons why local
sourcing of the product is minimal. Key amongst them include: Lack of production
capacity to meet the market demands, inability to produce to specification (packaging,
nature and quality of the product), inability to deliver to deadlines, etc.
The proposed business venture seeks to a local sourcing solution or alternative to

bridge the gap between the demand and supply of the product. The strategic plan is to
identify the key weaknesses in the existing production – delivery processes and develop
better alternative with the driving factors being basically Lower Production Costs,
Improved Product Quality and Client Satisfaction/ Reliability through Continuous
Improvement (CI) of operation/ production.
The key market segments for dustless school chalk in Uganda include the following:
 Schools that make use of chalk for teaching.

 Tailors, shoemakers, bag makers, artists and other artisans who make use of
chalks.
 Bookshops/stationery shops and other retailers who are into the retailing of
chalks.
1.8 Marketing
Aggressive above-the-line (ATL) marketing techniques will be used tap both the local
and foreign markets.
This will be done through:

 Direct sales outreach, Market segmentation by service line, territory or sectors.
 Massive outreach to potential markets or contracts by management.
 External sales force (partners) to negotiate viable deals or contracts that not only
map our profile but cover our living costs. Sales plan and budget departments
will be developed and facilitated and monitored or evaluated.
 Review and facilitate public relations campaign after the annual audit. Product
portfolio integration to realize viability of technical and product development.
Local market and East African, Central and Southern African regions will be
tapped.
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1.9 Raw Materials & Inputs
The raw materials used for the production of chalks and their functions are:
• Plaster of Paris (POP) – this is the major raw material required for the production
of school chalk and is usually sourced from Egypt and Iran.
• Calcium Carbonate – this is used in chalk production as a filler; it also makes the
chalk dustless.
• Colourants – used for making coloured chalk.
• Water – water is used for mixing Plaster of Paris and Calcium Carbonate to
produce chalk.
• Packing materials – comprising of labeled paper cartons and labeled paper boxes
that are sourced locally.
For ease of operation, lubricants (usually cooking oil mixed with kerosene) are used to
keep the moulds smooth and free from sticky paste.
Electricity is the major utility used as it is principally used as a power source for
powering the dustless school chalk making machines such as automatic dustless school
chalk production machines and the electric powered dryers. The Global Dustless
Chalk Limited industrial facility at Kikubampanga is however, currently not
connected to the national power grid and therefore uses its own diesel-powered
generator and solar dryers as its main sources power at the site.
1.10 Technology & Engineering
Global Dustless Chalk Limited is currently using its own acquired and installed
dustless school chalk production and drying equipment comprising of 3 chalk
production machines, 1 mixer, 1 diesel electric genset, and solar-powered chalk-drying
equipment. However, since Global Dustless Chalk Limited is keen to expand its chalks
output to match with the high market demand for its brand of products, there is
therefore need to acquire and install additional dustless school chalk production
equipment with larger capacity than what it has on site at the moment.
Global Dustless Chalk Limited proposes to acquire and install additional dustless
school chalk equipment and machinery from China-based manufacturers and suppliers.
The civil construction work for new plant building will be undertaken by a local
construction company. The civil construction work and commissioning will take only
six months to complete.
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1.11 Project Organization and Manpower Requirements
Global Dustless Chalk Limited is owned by the project promoters and the planned
Company’s management structure comprises of 4 departments including HR&
Administration Department, Finance Department, Operations Department, and Sales &
Distribution Department. The key departments of the company and numbers of staff in
each department are summarized in Table 2 below:
Table 2: Planned Company Manpower Structure

Department Management Nos. Staff Nos. Total Nos.
Executive Management Level 1 0 1
Finance 2 4 6
HR & Administration 2 0 2
Process Operations 3 20 23
Sales &Distribution 2 10 12
Others 0 6 6
TOTAL 10 40 50
1.12 Financial and Economic Evaluation
Although it is operating as a relatively small-sized business at the moment, Global

Dustless Chalk Limited possesses strong growth prospects and is well poised to
improve the competitiveness of the chalks sector in Uganda. Business scale-up project
financing focuses on: additional land acquisition for development of additional
infrastructure (UGX 25 million); acquisition and installation of additional dustless
school chalk production and drying equipment (UGX 184 million); construction of site
perimeter fencing (UGX 30 million); construction of additional on-site plant building
and civil infrastructure (UGX 300 million); purchase of raw material movement and
product delivery & distribution vehicles (UGX 111 million); and working capital for
raw material and inventory purchases (UGX 150 million).
Total capital outlay after the injection of additional project scale up finance of UGX
800,000,000 is UGX 904,500,000 and the business is forecasted to generate annual
revenue of UGX 2,662,250,409 by end of Project Year 5 financial year end from an
annual sales turnover of 42,120 boxes of dustless school chalk with 100 sticks of chalk in
each box. Between Project Year 2 and Project Year 6, the estimated average net income
margin will be UGX 281,515,608 per annum.
The business scale-up medium-term loan capital financial infusion of UGX 800 million
will enable Global Dustless Chalk Limited to significantly reduce the direct costs to
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sales ratio. The major cost driver in the chalks production, packaging and trading
business is the cost of sales (direct costs). With the capital investment, the business is
projected to maintain stability in its direct costs to sales ratio at 56.66% between Project
Year 2 and Project Year 6. In addition, Global Dustless Chalk Limited is expected to
enjoy benefits of scale as the business negotiates better trade prices with service
providers and end-users alike. Company financial performance highlights are depicted
in Table 3 and Figure 1 below.
Table 3: Key Project Performance Parameters (UGX)

KPI/Year Year 2 Year 3 Year 4 Year 5 Year 6
Sales 2,190,240,000 2,299,752,000 2,414,739,600 2,535,476,580 2,662,250,409
Gross Profit 949,256,400 996,719,220 1,046,555,181 1,098,882,940 1,153,827,087
Net Profit / [Loss] 417,155,480 460,413,254 505,161,917 551,476,013 599,433,813
Gross Margin 43.34% 43.34% 43.34% 43.34% 43.34%
Net Margin 19.05% 20.02% 20.92% 21.75% 22.52%
Return on Investment 46.12% 50.90% 55.85% 60.97% 66.27%
Operating Profit Margin 38.90% 38.90% 38.90% 38.90% 38.90%
Break-even Point (BEP): UGX 791,906,256 at a capacity utilization of 31.23%

Payback Period: 2.72 Years
Figure 1: Projected Financial Performance Highlights

Sales Gross Margin Net Profit
3,000,000,000
2,500,000,000
2,000,000,000
UGX
1,500,000,000
1,000,000,000
500,000,000
0
PY 2 (2021) PY 3 (2022) PY 4 (2023) PY 5 (2024) PY 6 (2025)
Year
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1.13 Project Socio-economic Impacts
Global Dustless Chalk Limited dustless school chalks production and supply
enterprise has created a market for producers and suppliers of industrial raw materials
in Uganda through its supply chain distribution network that covers the entire domestic
market and is even poised to expand to cover the neighbouring regional markets –
especially in eastern DR Congo and even South Sudan.
The project has already so far created employment for 12 Ugandans and is poised to
create an additional 38 job opportunities for Ugandans to top 50 job placements in this
fast-growing domestic chalks industry. The market growth of such a dustless school
chalks production and supply enterprise also possesses significant potential to earn
hard currency for Uganda through exports – especially to neighbouring DR Congo and
South Sudan.
The project therefore has both forward and backward linkages to create employment,
contribute to government income though payments of corporate taxes and have a
positive value added and healthy net rate of return.
1.14 Risks and Mitigating Measures
Any investment in Uganda is at risk of being negatively affected by the challenging

political and security environment. However, the risks are mitigated by the sponsors'
experience in the country and the project's ability to scale up or down with the market.
The development impact outweighs the risks.
Realization of benefits from the project relies on a sustained or improved security

situation, relative macroeconomic stability, and a continued pro-business policy
environment. Specific project-related risks include:
i. market risk,
ii. sales targets achievement risk,
iii. product quality and safety,
iv. management team risk,
v. regulatory and political risk,
vi. compliance with safety codes and regulations risk,
vii. foreign exchange and price risk,
viii. security risk,
ix. supplies risk, and
x. exit risk
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2.0 PURPOSE OF THE DOCUMENT
This document seeks to project a potential business opportunity that exists within the
country that remains mainly untapped; which this definitive proposal seeks to access
through the establishment of a production facility for the MAKING OF WHITE CHALK
(used on blackboards) to serve identified consumers of the product. The Business Plan
document also seeks to examine the financial viability or otherwise of producing chalks
in Uganda.
The objective of this Business Plan is primarily to inform the primary project promoters
– being Global Dustless Chalk Limited as well as the prospective project financing
partner/project financier about the basic project operation and business performance
indicators that will facilitate the assumption and implementation of key decisions to
finance and roll out the expansion and scaling up of the Global Dustless Chalk
Limited dustless school chalk production enterprise based at Kikubampanga – Wakiso
District. This Business Plan also forms the basis of an important investment decision
and in order to serve this objective, the document/study covers various aspects of
project concept development, start-up, and production, marketing, finance and business
management. The document also provides some sector information and domestic
market scenarios, which have some bearing on the project itself.
The purpose of this document is also to facilitate the main project investors with
information on the aspects and advantages of scaling up their investing in a dustless
school chalk making and trading with a macro and micro perspective of the dynamics
of dustless school chalk production, packaging and trade in the hope that the
information provided herein will aid potential investors in crucial investment decisions.
This report is based on the information obtained from industry sources as well as
discussions with market place players. In the financial model, since forecast/projections
relate to the future periods, the actual results may somewhat differ because of
unexpected events and circumstances beyond the means and control of the Company
that may negatively impact on expected projected performance outcomes.
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3.0 PROJECT PROFILE
3.1 Business Overview
Chalk Production industry is an industry that is highly thriving in countries in the

African continent and in some part of Asia. Uganda is one of the countries in Africa that
has loads of players in the chalk production industry. Although the advent of a suitable
and good alternative to chalk is flooding the African market, but that those not in any
way stop aspiring entrepreneur from starting this business especially if they have done
their due diligence and they are sure that there is a market for their product.
It is a fact that chalks are used in close to 100 percent of schools in rural areas and even
in most public schools in urban areas in Uganda and in Africa. Aside from chalk been
used in schools, artisan such as tailors, shoes and bag markers and carpenters et al make
use of chalk for marking purpose. This goes to show that there is indeed a large market
for chalk production companies in Uganda and in other African countries.
The Chalk Production line of business is indeed a thriving line of business and pretty
much active in Africa, Asia and South America they generates several millions of US
dollars annually from several registered and unregistered small – scale, medium scale
and big chalk production businesses scattered all around Africa, Asia and South
America. This line of business is responsible for the employment loads of people
directly and indirectly all around the world.
Any aspiring entrepreneur that is considering starting chalk production business

whether on a small scale or in a large scale should ensure that he or she conducts
thorough market survey and feasibility studies so as to get it right. The truth is that, this
type of business do pretty well when it is strategically positioned. Any location that is
close to rural communities or places where people can’t afford whiteboard and makers.
Aside from choosing the right location for the business, the next thing to do would be
the procurement of the needful machines, as well as ingredients needed to strike this
production business off. They include the following; Chalk mold, Scrapers, the dryer,
the hand gloves, the plaster of Paris, paint brushes, The Ultramarine blue, branded
cartons, as well as packaging nylon bags. A chalk-production enterprise could start off
with these materials and as time goes on progress to more sophisticated machines as
your business expands.
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Over and above, chalk production business is a profitable business venture and it is
open for any aspiring entrepreneur to come in and establish his or her business; a chalk
production enterprise like Global Dustless Chalk Limited can chose to start on a small
scale on a large scale with robust distribution network all across Uganda, Africa and the
global market.
3.2 Description of the Business
With the growing number of schools in Uganda, chalk business is still one of the most
lucrative activities today because the demand is strong. Even in spite of the current
economic situation you can still smile to the bank with cool cash as you don’t need
much marketing to sell your product.
The advent of marker boards likewise has not affected school chalk business from
thriving in this part of the world.
The chalk production enterprise proposed in this Business Plan by Global Dustless
Chalk Limited is about the production and marketing of dustless school chalk in white
and other colours to ramp up domestic production capacity of the product in Uganda
and substitute for imports that still account for about 70% of domestic market dustless
school chalk supply.
The production capacity of the proposed plant is fifteen thousand (15,000) pieces (150
boxes) per day and it would operate at ninety percent (90%) of the installed capacity for
three hundred (312) working day producing about seven hundred and two cartons
(702) cartons of ten (10) packs of one hundred (100) pieces of chalk bi-monthly. All the
dustless school chalk produced by the enterprise will initially be marketed in Uganda,
and then expanded to the neighbouring regional markets as the business consolidates
its market position and grows in the production and operational aspects of the industry.
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3.3 Critical Success Factors of the Business
3.3.1 Key Success Factors
The following are the key success factors for the dustless school chalk production
business:
1. Product performance
2. Technology leadership
3. New product introduction
4. Access to key decision-makers or key influencers
5. Delivery service.
3.3.2 Critical Success Factors
Table 4: Critical Success Factors

CSF: RATIONALE:
1. Differentiate Product Offering  GLOBAL DUSTLESS SCHOOL CHALK LIMITED’s chalk brand has
to be marketed as a unique offering, and not become a “me too” type
product.
 SWOT analysis identified ways to achieve this may be to create unique
packaging.
 Management of GLOBAL DUSTLESS SCHOOL CHALK LIMITED
may want to investigate this more deeply
 Conduct a consumer feedback study locally – their farmer’s markets
would be an ideal situation.
2. Increase production capacity  Through utilising their state-of-the-art technology and ensure it’s
running close to full capacity. The more units produced, the more units
that can be sold.
3. Market share to be increased  Target new market segments to grow the business
4. Profitability  Maintain profitability levels through containing overheads (fixed costs)
proportionate to sales growth.
5. Brand awareness  Very low levels exist within the industry. With the new Sales Manager
to assist, and through the development of a targeted marketing
strategy.
6. Economies of scale  Opportunities to contain or reduce production costs through
maximizing their technology.
7. Quality Assurance (QA)  Maintain their HACCP1 plan, ensure storage and delivery of goods by
partners in their supply chain continues to adhere to their QA program.
1 HACCP: Hazard Analysis and Critical Control Points

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3.4 Enterprise History
The proprietor and pioneer founder of Global Dustless Chalk Limited – Mr. Mukiibi
Katende Twaha incubated the concept of manufacturing chalk after having drawn
inspiration from his early late 1990s – early 2000s cross-border trading activities in chalk
that he used to source from Maseno Chalk in Kenya and sell in eastern DR Congo at a
handsome profit. He saw the way how chalk trading works with the steady demand
and good profits that he used to make in the chalks-trading business and as a result
drew a lot of motivation and passion for the product out of it. Later on, Mr. Mukiibi
Katende Twaha moved up a step from chalks-trading to chalks-making by visiting
China where he was able to source and purchase good quality chalks-making
equipment/technology out of the savings from his previous Kenya-DR Congo trading
sojourns, and which equipment he managed to install at the Kikubampanga industrial
site and is still using up-to-date. With this Chinese chalks-making technology, Mr.
Mukiibi Katende Twaha was then able to start the current nucleus chalks-making
plant that he has been efficiently operating as a small-scale industrial venture [cottage-
level industry] for the last 10 years but which he now earnestly seeks to scale up into a
higher production unit that is able to meet the surging domestic demand for dustless
school chalks in Uganda and effectively compete with and substitute for the large
portion of chalks still being imported mostly from Egypt and Kenya.
3.5 Current Status of Business
Presently, Global Dustless Chalk Limited has basic chalk-making infrastructure on site
at Kikubampanga in Wakiso District which it only uses occasionally to produce small
quantities of dustless school chalk owing to capacity limitations in higher-capacity
production equipment and larger drying space that critically curtail regular and
consistent production output of dustless school chalk. The existing on-site equipment
and industrial infrastructure investment [including a 450 square metres (0.11 Acre) plot
of land] is worth about UGX 104.5 million at current market valuation rates and
includes: a store house; a chalk drying and stacking space; 3 production machines; a
mixer; a diesel Genset; and solar power equipment (for chalk drying purposes).
16
4.0 COMPANY PROFILE & BUSINESS LEGAL ASPECTS
4.1 Ownership of the Business
Global Dustless Chalk Limited is a Ugandan-incorporated industrial company that is

wholly owned and operated by Ugandans. The pioneer founder and owner of Global
Dustless Chalk Limited is Mr. Mukiibi Twaha Katende – a resident of Kikubampanga
in Wakiso District.
Table 5: Company Details

a. Name GLOBAL DUSTLESS CHALK LIMITED
b. Registered Address P. O. Private Bag, Kikubampanga, Kakiri, Uganda
c. Business Address Sentema Road, Bugwanya, Kikubampanga, Kakiri
d. Phone Number +256-703 073 304 / 752 690 717 / 779 599 927
e. Email [email protected]
f. Date of Incorporation 22nd October 2019
g. Country of Incorporation UGANDA
h. Company Registration Number 80020002163828
4.2 The Business
4.2.1 Company Introduction/Profile
Global Dustless Chalk Limited is a fast-growing dustless school chalk production

company with a reputation for integrity, quality trading ethics, and excellence in
management that was incorporated in the Republic of Uganda on the 22nd October 2019
as a limited liability company. The Uganda Registration Services Bureau (URSB) and
its Registration Number of Global Dustless Chalk Limited is 80020002163828.
Dustless school chalk is the sole and only product produced by Global Dustless Chalk
Limited.
4.2.2 Vision & Mission
Mission Statement
Our mission is to establish a standard and top-class chalk production business that in
our own capacity will favorably compete with leaders in the industry on the domestic
and regional market stage. We want to build a chalk production company that will be
listed amongst the top 5 chalk production brands in Africa.
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Vision Statement
Our vision as a chalk production business is to engage in wholesale distribution of

white and colored chalks across Uganda and to export chalks to other countries in the
EAC region.
Strategic Roadmap
Global Dustless Chalk Limited’s vision is the framework for the company’s Roadmap
and guides every aspect of its business by describing what the company needs to
accomplish in order to achieve an operational, sustainable and quality growth.
Therefore our consultancy group recommends Global Dustless Chalk Limited to:
1) Be a highly effective, accurate, and dustless school chalk organization.

2) Nurture a network of customers and suppliers to create a mutual and enduring
value.
3) Be a great company where people are inspired to be the best they can be.
4) Bring to the world a portfolio of quality dustless school chalk products that
anticipate and satisfy end-users’ desires and needs.
5) Be a responsible company that values sustainability.
4.2.3 Company Goals and Objectives
Key Company Objectives
a) To capture a large share of the market.

b) To afford maximum customer satisfaction.
c) To continue product modification and improvement efforts to increase customer
benefits and reduce costs.
d) To meet the highest international standards of quality.
e) To expand and grow production capacity.
4.2.4 Long Term Goals
Global Dustless Chalk Limited would like to accomplish the following goals:
1. Increase net income of investors and provide a long-term return on investment

sufficiently larger than what is expected for alternative investments.
18
2. Establish a strong customer base through emphasis on customer service and
relationship building. This will provide the opportunity to secure long-term
demand for dustless school chalk production and supply.
3. Provide reputable dustless school chalk that will successfully compete in the
Ugandan chalks industry and satisfy customer needs and expectations.
Global Dustless Chalk Limited will use the following objectives to accomplish the
stated goals:
1. The investing company will pool their collective strengths in a manner that will
achieve the optimal outcome and put aside individual interests that may conflict
with the greater good that is to be achieved collectively.
2. Provide a total dustless school chalk product supply solution for the customer
that incorporates a superior level of service and quality. This can be achieved by
constant sampling and testing of the product from the production line, and
constant contact with the customers to assess their changing needs.
3. Hire individuals for key positions who have sufficient knowledge and
experience in the chalks industry. These people will help to establish
relationships in the chalks industry, and will further help to achieve the goals of
the venture and build with its customers a partnership to achieve their
complementary goals.
Global Dustless Chalk Limited can use the following strengths to accomplish its vision
and goals.
1. The group of Ugandan local investors has experiential business management

capabilities and strong financing capabilities and borrowing ability.
2. The founders/promoters of Global Dustless Chalk Limited have a range of
good business management skills that they have gained from the period of 10
years that they have spent in the production and trading of dustless school
chalks since 2010 to date. These skills include personnel management skills,
project management skills, and some financial management skills.
3. Global Dustless Chalk Limited have forged close partnerships with a network
of chalk industry insiders, who regularly provide the Company with detailed
and valuable information about the domestic dustless school chalks market and
customers.
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4.2.5 Business Strategy
The Business
Our main business focuses on:

 The production, packaging and selling of dustless school chalk.
Our products therefore address the following customer needs:

 Supply of high quality dustless school chalk.
4.2.6 Products and Service
Global Dustless Chalk Limited focuses primarily on the production, packaging and
merchandising of dustless school chalk in the chalks sub-sector to consumers of all
income levels. Global Dustless Chalk Limited distributes its dustless school chalk from
its production facility at Kikubampanga in Wakiso District and also through a network
of sales agents in Kampala and Wakiso Districts of central Uganda but with ambitions
to roll out its dustless school chalk supply-chain distribution to other major cities in
Uganda such as Masaka, Entebbe, Mbarara, Fort Portal, Jinja, Mbale, Soroti, Lira, Gulu,
Arua, Hoima, Nakasongola and Kabale.
Global Dustless Chalk Limited procures its raw materials through the importation
purchase of industrial-grade gypsum from Egypt and Iran and also by buying other
essential raw materials from the established local product suppliers based in Kampala.
4.2.7 Business Model
The key objective of Global Dustless Chalk Limited is to control its supply chain. This
will require dedicated progressive investment in infrastructure, software solutions,
skills and knowledge so as to deliver a dual strategic marketing mechanism by which to
sustain low price points for a longer duration than competitors, while at the same time
maintaining a high level of product availability through its network of dedicated sales
agents. Adoption of such dual strategic marketing mechanism is expected to deliver a
winning recipe for maintaining customer loyalty and boosting sales growth at minimal
cost. Global Dustless Chalk Limited’s strategy to control the dustless school chalk
supply chain will not only provides a distinct competitive advantage to the Company
and an ability to manage risk, but is also makes for sound business sense.
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Global Dustless Chalk Limited will also continue to actively manage and control its
value chain while maintaining a strong drive to improve efficiencies. The focus will
therefore be on four primary areas namely inventory management, transport
optimization, operational productivity and store processes. These efficiencies are
expected to continue to drive costs down and improve cash flow. Although inventory
levels are expected to increase, a scientific approach to forward buying will also be
adopted. This will allow Global Dustless Chalk Limited to sustain its “low price”
position and simultaneously to achieve high levels of product availability.
4.2.8 Company Ownership & Legal Status
Global Dustless Chalk Limited was started, is owned and is operated by Ugandans.
The Company has 4 shareholding directors whose share ownership is displayed in
Table 6as follows:
Table 6: The Company Shareholding Structure

S. No. Shareholder Shares Held (UGX) [%age]
1. MukiibiKatendeTwaha 750,000 15%
2. Mukiibi Ibrahim 2,000,000 40%
3. KatendeKassim 2,000,000 40%
4 NamaatoZalika 250,000 5%
Total Shareholding 5,000,000 100.00%
4.3 Core Values of Global Dustless Chalk Limited
4.3.1 Integrity
 We honour all commitments to our customers.

 We conduct business with unwavering high standards of honesty, trust,
professionalism and ethical behaviour.
 We communicate openly and frequently, sharing what we know, and when we
know it.
4.3.2 Respect
 We treat each person with whom we work with respect, professionalism and
dignity.
 We communicate expectations to employees, and provide honest and timely
feedback on performance.
21
 We embrace a diversity of ideas, cultures, ethnicities, and backgrounds to
enhance our promise and value to customers.
 We provide development opportunities for employees who show initiative, and
performance results to help them individually, manage their careers to maximize
their potential.
4.3.3 Quality
 We place the interests of our customers first.

 We are dedicated to provide customized food products to specific markets that
assure customer satisfaction and earn the unwavering loyalty of our customers.
 We ensure that the “We Try Harder” philosophy underlies everything we do and
shines through in our products to customers.
4.3.4 Teamwork
 We work as one cohesive team from the smallest unit to the organization as a
whole.
 We develop and retain leaders who continuously raise the idea, provide
direction, remove barriers and empower people to successfully accomplish goals.
 We maintain a regular production and supportive work environment that fosters
a sharing for ideas, skills and resources.
4.3.5 Growth and Profitability
 We are dedicated to continuous innovation and pursue new ideas and

opportunities to accelerate profitable growth.
 We deliver value in all we do to assure consistently high returns to our
shareholders.
 We recognize and reward excellent performance, which drives superior results.
4.3.6 Community Responsibility
 We actively participate in our communities and encourage employee

involvement in civic and charitable activities.
 We are the role model business leaders in the country and communities in which
we operate.
 We develop and implement business practices consistent with safeguarding the
environment.
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4.4 Core Competencies
Global Dustless Chalk Limited seeks to leverage its core competencies to achieve a
sustainable competitive advantage, in which competitors can provide the same value to
customers that Global Dustless Chalk Limited does. Already, Global Dustless Chalk
Limited has developed core competencies in: (1) offering a high quality dustless school
chalk product, whose image is recognizable among consumers; (2) creating a sense of
communication among clients who are ignorant about the company; and (3) developing
and reputation among products providers as a reliable company delivering the
requested number of products on purchase order. The company intends to build on
these competencies through marketing efforts that increase the number of products
offered as well as different sales offices and agents across the country.
4.5 Licenses, Approvals and Consents Required and Obtained
In the process of implementing the project, Global Dustless Chalk Limited has already
obtained some of the necessary approvals from the various regulatory and facilitating
authorities. To operate its dustless school chalk production and supply enterprise,
Global Dustless Chalk Limited requires the following licenses, approvals, and
consents:
Table 7: Required Licenses, Approvals and Consents

Stage Requirements Status
Company registration with the Registration of the company deeds and articles Completed
Uganda Registration Services of association + Certificate of Incorporation
Bureau (URSB)
Registration with Uganda Application for registration with UIA Completed
Investment Authority (UIA)
Membership with UNCCI Application for membership In progress
Registration with Uganda Application for tax registration (to obtain Tax To be done
Revenue Authority (URA) Identification Number, TIN), PAYE and VAT
registration
Registration with National Social Application for registration with the Social To be done
Security Fund (NSSF) Security Fund
Company Seal Making a company seal Completed
Trading License Application for trading license Completed
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5.0 PRODUCTION PLAN
5.1 Description of Product
Global Dustless Chalk Limited is very much aware of the importance of having very
good products and services. This is one of the reasons why we have made great plans to
have the best of products and services. At Global Dustless Chalk Limited we will be
involved in the production of white chalks and colored chalks, packing and wholesale
distribution across Uganda, the East African Community market and the world at large.
Our intention of starting Global Dustless Chalk Limited is to make profits from the
chalk production line of business and we will do all that is permitted by the law in
Uganda to achieve our business aim and ambition.
5.2 Description of the Location
Site location of the Global Dustless Chalk Limited dustless school chalk production
facility is at Kikubampanga in Wakiso District – which is approximately 22 kms (14
miles) northwest of Kampala along the Kampala – Hoima main road.
The location is quite ideal for this kind of light industrial enterprise in terms of its close
proximity to the source of raw materials and products market, availability of electricity
and water infrastructure and labour supply on top of being the home of the Company
pioneer founder and promoter – Mr. Mukiibi Katende Twaha.
5.3 Raw Materials
The raw materials used for the production of chalks and their functions are:
• Plaster of Paris (POP) – this is the major raw material required for the production
of school chalk and is usually sourced from Egypt and Iran.
• Calcium Carbonate – this is used in chalk production as a filler; it also makes the
chalk dustless.
• Colourants – used for making coloured chalk.
• Water – water is used for mixing Plaster of Paris and Calcium Carbonate to
produce chalk.
• Packing materials – comprising of labeled paper cartons and labeled paper boxes
that are sourced locally.
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For ease of operation, lubricants (usually cooking oil mixed with kerosene) are used to
keep the moulds smooth and free from sticky paste.
Electricity is the major utility used as it is principally used as a power source for
powering the dustless school chalk making machines such as automatic dustless school
chalk production machines and the electric powered dryers. The Global Dustless
Chalk Limited industrial facility at Kikubampanga is however, currently not connected
to the national power grid and therefore uses its own diesel-powered generator and
solar dryers as its main sources power at the site.
5.4 Production Equipment
The production plant comprises of: Weighing Scale, Mixer, Dustless School Chalk
Making Machines, Mould, Dryer, Accessories, Generator/Solar Power Equipment (for
drying purposes) and Wood Pallets.
5.5 Plant Capacity
According to the market study and the economic scale of chalk manufacturing, the
rated capacity of the plant is proposed to be 13,500 pieces (135 boxes) per day of chalk.
The selected production capacity is based on 312 working days (26 days/month x 12
month) per annum and 16 hours per day by two shifts. The rest of calendar days are left
for cleaning and maintenance.
5.6 Production Process
There are two ways of making chalk;
 Molded chalk that is based on using calcium sulphate – plaster chalk , and it is
soft, which as Jumbo chalk , round soft chalk
 Extruded chalk that is based on calcium carbonate chalk. This kind of chalk is
dustless chalk. It is most commonly used on chalkboards in school, as it tends to
be dense and “dustless”.
Molding Process
The moulded method, produces chalk which is softer than the extruded chalk, and is
NOT dustless. Dry pigment and water are first mixed in preparation for the addition of
plaster of Paris. Because plaster begins to set quickly, this process must be carefully
timed and supervised.
25
Before the mixture gets too thick, it is poured into a molding machine with many holes
that are the exact size and shape of the finished pieces of chalk.
Excess chalk “batter” is scraped off the tops of the moulds, and after a setting of five to
eight minutes, depending upon the particular color being manufactured, the sticks of
chalk are popped out onto a tray which is then stacked in a large drying rack.
Extrusion Process
To produce extruded chalk, the makers first stir together, by machine, several white
powders. The most important of these is calcium carbonate and water-washed clay. If
the chalk is to be colored, the particular color is likewise added in the form of dry, finely
ground pigments.
After all of the powders are well mixed, they are transferred to another large machine
where a liquid “binder” is poured in to hold the dry particles together. After the
powders and their binder have swished around for a certain length of time, the chalk
forms a kind of dough which looks like many small balls about the size of marbles.
These little dough balls are then machine-pressed into a large, long shape, just like a
solid cylinder.
This shape is called a cartridge. As a result of this pressing, air is forced out of the
dough, and the moist particles in the dough are very closely bound to one another
causing the chalk to be heavy and smooth textured. The cartridge, which is still damp
and pliable, is then inserted into another machine called an extrusion press, where it is
forced through a small tube. As the long rope of wet chalk comes out, an automatic
slicer cuts it into many pieces. These pieces roll down to a tray, and are ready to be cut
again into regular size sticks of chalk 80 mm. Since the pieces are still quite moist, they
must be dried in large ovens, called kilns, before they become hard enough to be
packed. Extruded chalk was described as “dustless”.
In the case of extruded chalk, however, the dust particles are weighted to fall straight
down instead of flying through the air to make dust. In other words, the dust in
“dustless” chalk is chemically controlled. Both molded and extruded chalks are
manufactured in a variety of colors and shapes.
There are round sticks, long square ones, Triangle, and their uses are varied. Chalks
made for school and home are different from those needed in an art studio or factory;
26
and just as in a family, no two members are alike even though they may resemble one
another.
Making white classroom chalk
 To make white classroom chalk, the manufacturer adds water to form a thick
slurry with the consistency of clay. The slurry is then placed into and extruded
from a die—an orifice of the desired long, thin shape. Cut into lengths of
approximately 24.43 inches (62 centimeters), the sticks are next placed on a sheet
that contains places for five such sticks. The sheet is then placed in an oven,
where the chalk cures for four days at 188 degrees Fahrenheit (85 degrees
Celsius). After it has cured, the sticks are cut into 80 millimeters lengths.
Making colored classroom chalk
 Pigments (dry, natural, colored materials) are mixed in with the calcium
carbonate while both are dry (the procedure is similar to sifting flour and baking
powder together before adding liquid, as in a cake recipe). Water is then added
to the mixture, which is then baked in the same manner as white classroom
chalk.
Making pastels
 Another manufacturing method is used for pastels, the chalks used for art
drawing. The procedure resembles that used for colored classroom chalk, but
calcium sulfate is used instead of calcium carbonate. In addition, the dry material
is mixed with clay and oils, and more pigments are added to produce a slurry
that has the consistency of toothpaste. Because the final products must be
relatively moist, pastels are usually air-dried rather than baked.
Boxing the chalk
 Placed in small boxes, the completed chalk sticks are stacked in large boxes to be
shipped to supply stores.
5.7 Production Programme
The production program is based on the time required for the adjustment of feedstock,
labor and equipment to the technology selected. Being a small-scale industrial
27
operation, the plant has planned to produce 90% of plant capacity right from the first
year through to the fifth year of the project and thereafter.
5.8 Quality Control
Chalk that is intended for the classroom must undergo stringent quality tests in order to
perform well and be labeled non-toxic. All incoming materials are tested for purity
before being used. After the chalk has been made into sticks, one stick from each batch
is selected for tests. The density and break strength of the sample stick are determined.
The sample is then used to write with, and the quality of the mark is studied. Erasability
is also studied. First, the chalk mark is erased using a dry eraser, and the quality of
erasure is examined. Then, the chalkboard is washed, and again the amount of chalk left
on the board is examined. Furthermore, a sample from each batch is kept for five years
so that it can be inspected if in the future its quality is questioned.
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6.0 MARKET ANALYSIS
6.1 The Opportunity
In both developed & developing countries still chalk is an essential item for writing on
blackboards in schools. Apart from schools, educations and training institutes, chalks
are used by tailors, furniture makers, construction workers and by many industries.
Chalks are actually round shaped sticks. And it comes either in white or colors.
In East Africa particularly Uganda, the number of school going children is increasing
year after year. The students enrolled in primary levels are increasing with the spread
of literacy and Govt. regulation for making primary education compulsory. So it is
predictable that, the demand of white chalk and color chalk will be in increasing mode
for coming years. Any entrepreneur can initiate chalk making business with small start-
up capital investment.
Verifiable 2018 data figures by the Ministry of Education and Sports (MoES) indicate a
desired monthly local sourcing quota of 50,000 boxes of white chalk by schools and
institutions of higher learning throughout Uganda, of which only 18,000 of acceptable
standard make is successfully sourced with the remaining quantity sourced from
outside the country being only for the local sourcing quota. The market for the white
chalk exists not only with the Uganda educational system, as it must be noted that
white chalk is the main tool for writing on boards in most pre-tertiary institutions
across the entire country with the number of schools being conservatively given
as20,313 primary schools, 3,220 senior secondary schools, 47 primary teachers colleges,
35 vocational and technical colleges, 39 private universities, 21 public universities, 4
military universities and 3 other accredited degree-awarding institutions. The market is
seen to be potentially big, given that the demand for the white chalk is conservatively
given as 1.5 million boxes of the product annually, of which for the Uganda pre-tertiary
and tertiary educational system alone can be verifiably stated as sourcing bulk of its
stocks from outside the country.
With such a seemingly big potential, it is becomes imperative to ascertain the reasons
why the potentials that the product seems to offer are untapped, which would
invariably prove a vital factor in determining the viability of the proposed venture.
Verifiable statements have been made to the effect, providing reasons why local
sourcing of the product is minimal. Key amongst them include: Lack of production
29
capacity to meet the market demands, inability to produce to specification (packaging,
nature and quality of the product), inability to deliver to deadlines, etc.
The proposed business venture seeks to a local sourcing solution or alternative to

bridge the gap between the demand and supply of the product. The strategic plan is to
identify the key weaknesses in the existing production – delivery processes and develop
better alternative with the driving factors being basically Lower Production Costs,
Improved Product Quality and Client Satisfaction/ Reliability through Continuous
Improvement (CI) of operation/ production.
6.2 Market Trends
It is a common trend in the chalk production line of business to find chalk production
companies positioning their business in locations and communities where they can
easily have access to chalk making raw materials and labor.
So also another trend in this line of business is that most registered and well organized
chalk production companies look beyond the market within their locations or even
Uganda; they are involved in packaging and exporting chalks to other countries in
Africa where there is a large market for chalk.
6.3 Target Market
When it comes to retailing chalk, there is indeed a wide range of available customers. In
essence, our target market can’t be restricted to just a group of people, but all those who
make use of chalk for teaching and also all those artisans who also make use of chalk for
marking.
One thing is certain, there are no restrictions to the demographic and psychographics
composition of the target market for chalk in Uganda and Africa as a whole. This goes
to show that the target market for chalk is wide and far-reaching,it is possible for
Global Dustless Chalk Limited to create its own market niche itself to serve a specific
purpose.
In view of that, we have conducted our market research and we have ideas of what our
target market would be expecting from us. We are in business to engage in retailing and
wholesale distribution-cum-exporting of chalks to the following groups of people;
30
 Schools that make use of chalk for teaching.
 Tailors, shoemakers, bag makers, artists and other artisans who make use of
chalks.
 Bookshops and other retailers who are into the retailing of chalks.
6.4 Market Segments
Textile Industry
Every tailor needs chalk to get them straight and accurate cutting of clothes. Even a
professional designer requires a good amount of chalks to be quick with work. There is
a great market in the textile industry, starting a chalk business explores the textile
industry to a great extent. Tailors also use chalks too frequently.
Education Industry
Schools have a high usage of chalks. Universities or colleges, every educational

institution needs chalks. The education industry presents great potential where there
will never be low demand.
Hardware Shops
Marking on the plywood and various other tools require chalks. It is not possible to
have proper finishing of furniture without chalk. Exact cutting areas and dividing
portions correctly will call for chalk boxes.
Lubrication
Chalks are also used in the lubrication of tight drawers and chains.
Marble Cutting
Different kinds of marble are needed to give shape which is possible by way of chalks.
Marble industry is in itself a huge industry that calls for a high amount of chalks.
Targeting this marketing is beneficial.
Stationery Shops
Stationery shops usually do stock lots of chalk owing to their high stock-out rates in
limited of time.
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Art Industry
Sidewalls are painted by government, chalks are used as a colorful decoration. It is also
used by artists for drawings and making unique arts. Chalk colours are the perfect
source for a sidewalk drawing usually found in many places in Uganda. Nowadays you
can see a trend of quotes written on walls, chalks are preferably used in those types of
drawings.
6.5 Market Demand
The demand for this product is expected to increase because there is high expansion of
educational institutions throughout the country. The consumption of chalk sticks will
increase as the number of students and schools increase. The main raw material for
chalk sticks is Plaster of Paris or calcium hemi-hydrate, which is obtained by calcinating
gypsum. Gypsum is found in many parts of the country in abundant quantity with
more organized industrial planning, extraction and production.
Table 8: Demand and Supply of Chalk in Uganda [2011-2018]

Year Imports (Kgs) Exports (Kgs) Net Imports Domestic Apparent
(Kgs) Production Domestic
(Kgs) Demand (Kgs)
(1) (2) (3) (4) = (2-3) (5) (6) = (4+5)
2011 733,022 914 732,108 314,152 1,046,260
2012 1,098,366 804 1,097,562 470,728 1,568,290
2013 973,539 4,850 968,689 417,231 1,385,920
2014 744,524 8,400 736,124 319,082 1,055,206
2015 1,142,892 25,633 1,117,259 489,811 1,607,070
2016 963,718 27,478 936,240 413,022 1,349,262
2017 1,039,470 14,900 1,024,570 445,487 1,470,057
2018 1,052,324 42,350 1,009,974 450,996 1,460,970
Source: Uganda Revenue Authority (URA)
Demand Projection: The future demand for chalk depends on a number of inter-related
factors.
These factors that are critical in determining the volume and trend of demand for chalk
include:
 The overall economic development level and growth trend of the country;
 The performance and expansion of the education sector;
 Education budget and expenditure;
32
 Government policies on education; and
 Size of the population in general and the school age population in particular.
As it can be seen from Table 8 above, the demand of chalk and the supply are far apart
in terms of quantity. As the number of students rapidly increases from year to year
rapidly throughout the country, the demand of chalk is increasing but the supply of
chalk is not increasing at the same pace with the demand.
6.6 Our Competitive Advantage
First and foremost, the fact that anybody with interest in the chalk production business
can decide to start the business means that the business is open to all and sundry hence
it is expected that there will be high – level competition in the industry. This is so
because the technology involved in the production of chalk is not complicated.
As a standard chalk production company, Global Dustless Chalk Limited knows that
gaining a competitive edge requires a detailed analysis of the demographics of the
surrounding area and the nature of existing competitors. And even if we are successful
at first, new competitors could enter your market at any time to steal our regular
customers. Hence we will not hesitate to adopt successful and workable strategies from
our competitors.
Global Dustless Chalk Limited is going to be one of the very few chalk production
companies in Uganda that will also engage in wholesale distribution of white chalks
and colored chalks all across Uganda and also export to other countries in Africa.
Another competitive advantage that Global Dustless Chalk Limited has is the vast
experience of our management team, we have people on board who are highly
experienced and understands how to grow business from the scratch to becoming a
national phenomenon. Our large and robust distribution network and of course our
excellent customer service culture will definitely count as a core strength for the
business.
Lastly, our employees will be well taken care of, and their welfare package will be
among the best within our category (start-ups chalk production companies) in the
industry, meaning that they will be more than willing to build the business with us and
help deliver our set goals and achieve all our aims and objectives. We will also give
good working conditions and commissions to freelance sales agents that we will recruit
from time to time.
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7.0 ORGANIZATIONAL AND MANAGEMENT PLAN
7.1 Our Business Structure
Ordinarily, Global Dustless Chalk Limited would have succeeded in running a chalk
production business with few employees, but as part of our plan to build a top flight
chalk production business in Wakiso District of central Uganda, we have perfected
plans to get it right from the onset which is why we are going the extra mile to ensure
that we have competent employees to occupy all the available positions in our
company.
The picture of the kind of chalk production business Global Dustless Chalk Limited
intends to build and the business goals we want to achieve is what informed the
amount we are ready to spend to ensure that we build a business with dedicated
workforce and robust distribution network.
In view of that, we have decided to hire qualified and competent hands to occupy the
following positions at Global Dustless Chalk Limited;
 Chief Executive Officer (Owner)
 Chalk Production Plant Manager
 Human Resources and Admin Manager
 Merchandize Manager
 Sales and Marketing Manager
 Accountants / Cashiers
 Chalk Production Plant Casual Workers
 Truck Drivers / Chalk Wholesale Distributors
 Customer Service Executives
Roles and Responsibilities
Chief Baker / Chief Executive Officer – CEO (Owner):

 Increases management’s effectiveness by recruiting, selecting, orienting, training,
coaching, counseling, and disciplining managers; communicating values,
strategies, and objectives; assigning accountabilities; planning, monitoring, and
appraising job results; developing incentives; developing a climate for offering
information and opinions; providing educational opportunities.
 Creates, communicates, and implements the organization’s vision, mission, and
overall direction – i.e. leading the development and implementation of the
overall organization’s strategy.
34
 Responsible for fixing prices and signing business deals.
 Responsible for providing direction for the business.
 Creates, communicates, and implements the organization’s vision, mission, and
overall direction – i.e. leading the development and implementation of the
overall organization’s strategy.
 Responsible for signing checks and documents on behalf of the company.
 Evaluates the success of the organization.
Chalk Production Plant Manager

 Responsible for overseeing the smooth running of the chalk production plant.
 Makes sure that quality is maintained at all times.
 Maps out strategy that will lead to efficiency amongst workers in the chalk
production plant.
 Responsible for training, evaluation and assessment of the workforce.
 Ensures operation of equipment by completing preventive maintenance
requirements; calling for repairs.
 Ensures that the chalk production plant meets the expected safety and health
standard at all times.
Human Resources and Admin Manager

 Responsible for overseeing the smooth running of HR and administrative tasks
for the organization.
 Updates job knowledge by participating in educational opportunities; reading
professional publications; maintaining personal networks; participating in
professional organizations.
 Enhances department and organization reputation by accepting ownership for
accomplishing new and different requests; exploring opportunities to add value
to job accomplishments.
 Defines job positions for recruitment and managing interviewing process.
 Carries out staff induction for new team members.
 Responsible for training, evaluation and assessment of employees.
 Oversees the smooth running of the daily business activities.
Merchandize Manager
 Manages vendor relations, market / farm visits, and the ongoing education and
development of the organizations’ buying teams.
 Helps to ensure consistent quality and quantity of chalks are produced.
 Responsible for the purchase of raw material and packaging materials.
35
 Responsible for planning sales, monitoring inventory, selecting the merchandise,
and writing and pricing orders to vendors.
 Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager

 Manages external research and coordinate all the internal sources of information
to retain the organizations’ best customers and attract new ones.
 Models demographic information and analyze the volumes of transactional data
generated by customer purchases.
 Identifies, prioritize, and reach out to new partners, and business opportunities
et al.
 Responsible for supervising implementation, advocate for the customer’s needs,
and communicate with customers.
 Develops, executes and evaluates new plans for expanding increase sales.
 Documents all customer contact and information.
 Represents the company in strategic meetings.
 Helps to increase sales and growth for the company.
Chalk Production Plant Casual Workers

 Responsible for operating chalk production equipment.
 Responsible for carrying out all casual or unskilled jobs in the chalk production
plant.
 Assists in loading and unloading of chalks and raw materials et al.
 Handles any other duty as assigned by the chalk production plant manager.
Accountant / Cashier
 Responsible for preparing financial reports, budgets, and financial statements for
the organization.
 Provides managements with financial analyses, development budgets, and
accounting reports; analyzes financial feasibility for the most complex proposed
projects; conducts market research to forecast trends and business conditions.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting.
 Responsible for developing and managing financial systems and policies.
 Responsible for administering payrolls.
 Ensures compliance with taxation legislation.
 Handles all financial transactions for the organization.
 Serves as internal auditor for the organization.
36
Distribution Truck Drivers
 Assist in loading and unloading raw materials and chalks.
 Maintain a logbook of their driving activities to ensure compliance with federal
regulations governing the rest and work periods for operators.
 Keep a record of vehicle inspections and make sure the truck is equipped with
safety equipment.
 Assist the transport and logistics manager in planning their route according to a
delivery schedule.
 Local-delivery drivers may be required to sell products or services to stores and
businesses on their route, obtain signatures from recipients and collect cash.
 Transport finished goods and raw materials over land to and from
manufacturing plants or retail and distribution centers.
 Inspect vehicles for mechanical items and safety issues and perform preventative
maintenance.
 Comply with truck driving rules and regulations (size, weight, route
designations, parking, break periods etc.) as well as with company policies and
procedures.
 Collect and verify delivery instructions.
 Report defects, accidents or violations.
Client Service Executive

 Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone)
provide the client with a personalized customer service experience of the highest
level.
 Through interaction with customers on the phone, uses every opportunity to
build client’s interest in the company’s products and services.
 Manages administrative duties assigned by the store manager in an effective and
timely manner.
 Consistently stays abreast of any new information on Global Dustless Chalk
Limited, promotional campaigns etc. to ensure accurate and helpful information
is supplied to customers when they make enquiries.
37
7.2 Future Company Organizational Structure
Figure 2: Future Global Dustless Chalk Limited Organizational Structure
CEO
Chalk
Production
Plant Manager
Sales &
HR & Admin Merchandize
Marketing Accountants/Cashiers [2]
Manager Manager
Manager
Customer Chalk Plant Chalk W/Sale

Service Production Distributors
Executives [4] Workers [10] [5]
7.3 Details of Salary Schedule
The total manpower requirement of the current Global Dustless Chalk Limited
dustless school chalk production and supply enterprise is for a skeletal start-up
manpower structure comprising of about 12 persons. Details of manpower required and
annual labour cost are indicated in the Table 9 below. The total annual cost of labour is
estimated at Uganda Shillings Eighty Four Million [UGX 84,000,000].
38
Table 9: Manpower Requirement and Estimated Annual Labour Cost (UGX)
S. No. Job Description No. of Persons Rate [UGX] Monthly Annual
[UGX] [UGX]
1 Project Manager 1 1,000,000 1,000,000 12,000,000
2 Accountant and Controller 1 600,000 600,000 7,200,000
3 Cashier 1 500,000 500,000 6,000,000
4 Purchaser 1 500,000 500,000 6,000,000
5 Store Keeper 1 500,000 500,000 6,000,000
6 Driver 1 300,000 300,000 3,600,000
7 Production 5 400,000 2,000,000 24,000,000
8 Cleaner 1 200,000 200,000 2,400,000
Total 12 5,600,000 67,200,000
Employees’ Benefit 25% of Basic Salary ,400,000 6,800,000
Grand Total 7,000,000 84,000,000
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8.0 SALES AND MARKETING STRATEGY
8.1 Sources of Income
Global Dustless Chalk Limited is established with the aim of maximizing profits in the
chalk production line of business both in Wakiso District [a peri-urban district of central
Uganda] and throughout key cities in Uganda and of course in some countries of the
world.
We are going to go all the way to ensure that we do all it takes to sell our chalks both in
retail and wholesale to a wide range of customers who make use of chalks. Global
Dustless Chalk Limited will generate income by simply selling different colors of
chalks.
8.2 Sales Forecast
One thing is certain when it comes to chalk production business, if the business is
strategically positioned and easily accessible, it will always attract customers cum sales
and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Uganda and every other
country of the world where we intend exporting our chalk to and we are quite
optimistic that we will meet our set target of generating enough income / profits from
the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the chalk production line of business and we
have analyzed our chances in the industry and we have been able to come up with the
following sales forecast. The sales projections are based on information gathered on the
field and some assumptions that are peculiar to start-ups in Uganda.
Below are the sales projections for Global Dustless Chalk Limited, it is based on the
location of our business and other factors as it relates to small scale and medium scale
chalk production company start – ups in Uganda;
 First Fiscal Year [PY 2]-: UGX 2,190,240,000

 Second Fiscal Year [PY 3]-: UGX 2,299,752,000
 Third Fiscal Year [PY 4]-: UGX 2,414,739,600
40
N.B: This projection is done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown and there won’t be any
major competitor offering same product and customer care services as we do within
same location. Please note that the above projection might be lower and at the same
time it might be higher.
8.3 Marketing Strategy and Sales Strategy
Before choosing a location to launch Global Dustless Chalk Limited, we will conduct a
thorough market survey and feasibility studies in order for us to be able to be able to
penetrate the available market in Uganda and the international market. We have
detailed information and data that we were able to utilize to structure our business to
attract the numbers of customers we want to attract per time and also for to compete
with other chalk production companies.
We hired experts who have good understanding of the chalk production line of
business to help us develop marketing strategies that will help us achieve our business
goal of winning a larger percentage of the available market for our products.
In other to continue to be in business and grow, we must continue to sell our chalks to
the available market which is why we will go all out to empower or sales and
marketing team to deliver our corporate sales goals. In summary, Global Dustless
Chalk Limited will adopt the following sales and marketing approach to sell our
chalks;
 Introduce our chalk product-cum-business by sending introductory letters to
residence, merchants and other stakeholders both in Uganda and abroad.
 Open our chalk production business with a party so as to capture the attention of
residence who are our first targets
 Engage in road shows in targeted communities from time to time to sell our
chalk products
 Advertise our products in community-based newspapers, local TV and radio
stations
 List our business and products on yellow pages ads (local directories)
 Leverage on the internet to promote our product cum business
 Engage in direct marketing and sales
 Encourage the use of Word-of-mouth marketing (referrals)
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8.4 Publicity and Advertising Strategy
Regardless of the fact that our chalk production business is a standard one that can
favorably compete with other leading chalk production companies in Uganda and in
any part of the world, we will still go ahead to intensify publicity for all our products
and brand. We are going to explore all available means to promote Global Dustless
Chalk Limited.
Global Dustless Chalk Limited has a long-term plan of exporting our product all
across the Uganda and other countries in Africa. This is why we will deliberately build
our brand to be well accepted in Uganda before venturing out to other cities in Uganda
and the world. As a matter of fact, our publicity and advertising strategy is not solely
for selling our products but to also effectively communicate our brand.
Here are the platforms we intend leveraging on to promote and advertise Global
Dustless Chalk Limited;
 Place adverts on both print (community based newspapers and magazines) and
electronic media platforms.
 Sponsor relevant community programs.
 Leverage on the internet and social media platforms like; Instagram, Facebook,
Twitter, et al to promote our brand.
 Install our Bill Boards on strategic locations all around major communities in
Uganda.
 Engage in road-shows from time to time in targeted communities.
 Distribute our fliers and handbills in target areas.
 Position our Flexi Banners at strategic positions in the location where we intend
getting customers to start patronizing our chalks.
 Ensure that all our staff members wear our customized clothes, and all our
official cars and distribution trucks are customized and well branded.
8.5 Pricing Strategy
Currently, chalk factories in Uganda and the imported ones sell chalk for almost the
same price, UGX 52,000per box of white chalk and UGX 78,000 per box of colored chalk.
Similarly, imported gypsum fetches as much as UGX 63,330 per 50 kg bag.
At Global Dustless Chalk Limited we will keep the prices of our chalks below the
average market rate for all of our customers by keeping our overhead low and by
collecting payment in advance from schools that would require constant supply of
42
chalks. In addition, we will also offer special discounted rates to all our customers at
regular intervals.
We are aware that there are some one – off chalk supply contracts especially from
government or school boards which are always lucrative, we will ensure that we abide
by the pricing model that is expected from contractors or organizations that bid for such
contracts.
8.6 Payment Options
The payment policy adopted by Global Dustless Chalk Limited is all-inclusive because
we are quite aware that different customers prefer different payment options as it suits
them but at the same time, we will ensure that we abide by the financial rules and
regulation of the Republic of Uganda.
Here are the payment options that Global Dustless Chalk Limited will make available
to her clients;
 Payment via bank transfer
 Payment with cash
 Payment via online bank transfer
 Payment via Point of Sale Machines (POS)
 Payment via mobile money platforms
 Payment via check
 Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client
make payment for farm produces purchase without any stress on their part. Our bank
account numbers will be made available on our website and promotional materials to
clients who may want to deposit cash or make online transfer for the purchase of chalks
in wholesale.
43
9.0 SUSTAINABILITY AND EXPANSION STRATEGY
The future of a business lies in the numbers of loyal customers that they have the
capacity and competence of the employees, their investment strategy and the business
structure. If all of these factors are missing from a business (company), then it won’t be
too long before the business close shop.
One of our major goals of starting Global Dustless Chalk Limited is to build a business
that will survive off its own cash flow without the need for injecting finance from
external sources once the business is officially running. We know that one of the ways
of gaining approval and winning customers over is to retail our chalks a little bit
cheaper than what is obtainable in the market and we are well prepared to survive on
lower profit margin for a while.
Global Dustless Chalk Limited will make sure that the right foundation, structures
and processes are put in place to ensure that our staff welfare are well taken of. Our
company’s corporate culture is designed to drive our business to greater heights and
training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our

management staff and it will be based on their performance for a period of three years
or more. We know that if that is put in place, we will be able to successfully hire and
retain the best hands we can get in the industry; they will be more committed to help us
build the business of our dreams.
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10.0 IMPLEMENTATION PLAN
It is expected that it will take approximately 12 months to have this for Global Dustless
Chalk Limited’s scaling up of dustless school chalk production and supply enterprise
project put into operation from the day the requisition for project funds for its execution
is placed with the project financing source. The preparatory stage which involves the
eventual approval for funding is assumed to take 3 months from the date of its first
submission to the project financier by the project promoters. The follow-on project
implementation activities are expected to take an additional 8-9 months to completion –
which altogether adds up to 12 months (1 year).
10.1 Project Timeline
The project implementation timeline is about 12 months from the time the requisition
for project funds for project execution is placed with the project financing source for
business expansion and market growth of the for Global Dustless Chalk Limited’s
dustless school chalk production and supply enterprise. There is some overlap in some
of the activities in the project implementation period of 12 months such that this should
be the most feasible and practicable period to bring the full Global Dustless Chalk
Limited’s dustless school chalk production and supply enterprise scaling up and
market growth is brought to its full fruition.
The key project implementation activities are summarized in Table 10 below.
Table 10: Project Timeline Activities

S. No. Description Duration
1 Requisition and procurement of project finance facility 3 Months
2 Civil construction of additional on-site infrastructure 6 Months
3 Purchase and installation of extra chalk plant machinery and equipment 1 Month
4 Building of the Global Dustless Chalk Limited chalk market network 8 Months
5 Test-Run and Commission of Installed Plant Machinery & Equipment 1 Month
Total 12 Months
10.2 Project Development Schedule
The Gantt Chart in Figure 3 below is a timeline graphic summary by implementation

activity and periodic duration.
45
Figure 3: Project Implementation Activities Sequence
Activity Duration Implementation Timeline (Months)
(Months) 1 2 3 4 5 6 7 8 9 10 11 12
1. Requisition & Procurement of Project Finance 3
2. Civil Construction of Plant Buildings 6
3. Purchase & Installation of Chalk Plant Equipment 1
4. Expansion of Chalks Market Network 8
5. Test-Run and Commission of New Chalks Plant 1
6. Continuation of Business Operations ∞
46
11.0 FINANCIAL PLAN
In order to develop a comprehensive investment case for Global Dustless Chalk

Limited’s progression of the dustless school chalk production and supply enterprise
and its subsequent development, a detailed financial model was created. The model
builds revenue and cost forecasts, as well as associated capital expenditures, relying on
historical performance and considering expected changes in the business. The model
was designed with the following key objectives:
 Provide flexibility to test and alter assumptions and inputs in the future.
 Identify and capture the key input levers that drive financial requirements and
return.
 Identify and assess the expected financial and economic results.
The key variables used in the model are:
 Inputs: High-level capital inputs such as equipment cost, building infrastructure

cost, additional working capital requirements, and capital structure. Cost of
capital: Calculations of the discount rate for the proposed operations, taking into
consideration key determinants such as risk-free rate, marginal risk premium,
and debt-equity structure.
 Historical financial performance: Considering behaviour of historical cost and
revenue drivers, including production volumes and growth in cost elements.
 Market size: Sizing the dustless school chalks market in Uganda and projecting
market share for Global Dustless Chalk Limited.
The main outputs of the model include:
 Pro forma financials: Income statement and key performance measures.

 Outputs: Summary of the key return metrics and capital requirement.
 Development benefits: Estimates of dustless school chalk consumers involved in
the consumption of dustless school chalk and anticipated improvement in their
livelihoods.
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11.1 Basis of Presumptions & Key Project Assumptions
1) The basis for calculation of production capacity is on single shift, working of 26

days per month on 90% efficiency.
2) Break-even Point for the scheme has been calculated on full capacity utilization.
3) The cost of land and building has been calculated as per the prevailing market
prices and these rates are likely to vary from place to place.
4) The cost of machinery and equipment as indicated in the scheme is approximate
ruling at the time of preparation of the scheme. The entrepreneur may check the
exact price for specific make and model of the machine selected.
5) Labour wages has been considered as per the prevailing market rates and the
minimum wages fixed by the authorities.
6) Non-refundable deposits, cost of preparation of project report etc. may be
considered under pre-operative expenses.
7) The provision made in other respects viz; raw materials, utilities, overheads etc.
is drawn on the basis of standard variation and output. The cost indicated
against each is approximate based upon local market conditions and
observations. The entrepreneur may find out the exact cost from the concerned
sources.
8) The operative period of this project is estimated to be about 6 years considering
technology obsolescence.
9) Calculations are based on the production, packaging and sale of dustless school
chalks only.
The financial analysis of the Global Dustless Chalk Limited dustless school chalk
production and supply enterprise is based on the data presented in the previous
sections and the following assumptions:-
11.1.1 General Production & Pricing Assumptions
Table 11: General Production & Pricing Assumptions

Item Qty/Day Unit Price Sales/Day Sales/Month Sales/Annum2
(UGX) (UGX) (UGX) (UGX)
Chalk Boxes 135 52,000 7,020,000 182,520,000 2,190,240,000
Operating Days Per Month Per Annum
26 312
2 Annual Sales in Project Year 2

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11.1.2 Operating Expense Assumptions
Table 12: Operating Expense Assumptions (in Project Year 2) in UGX

Raw Material Units Qty/Day Rate (UGX) Production Production Production
Costs/Day Costs/Month Costs/Year
Plaster of Paris (POP) Bags 35 63,330 2,216,550 57,630,300 691,563,600
French Chalk Kgs 13.5 56,000 756,000 19,656,000 235,872,000
Kaolin Kgs 9 45,000 405,000 10,530,000 126,360,000
Binder Kgs 9 56,000 504,000 13,104,000 157,248,000
Packaging Materials Pieces 135 500 67,500 1,755,000 21,060,000
Sub-Total 3,949,050 102,675,300 1,232,103,600
General Costs
Salaries & Wages 7,000,000 84,000,000
Utilities 740,000 8,880,000
Selling and Distribution Expenses 370,000 4,440,000
Administration Expenses 370,000 4,440,000
Shelter Expenses 370,000 4,440,000
Depreciation Expenses 200,000 2,400,000
Sub-Total 9,050,000 108,600,000
Total Operating Expenses 111,725,300 1,340,703,600
11.1.3 Economic Related Assumptions
Table 13: Economic Related Assumptions

Inflation rate p.a. 5%
Wage growth rate p.a. 5%
Electricity growth rate p.a. 5%
Operating Expenses growth rate p.a. 5%
Products Pricing growth rate p. a. 5%
Exchange Rate (March 2020) US$1 = UGX 3,700
11.2 Sources of Income
The Global Dustless Chalk Limited dustless school chalk production and supply
enterprise is established with the aim of maximizing profits within the chalks sector in
Uganda and we are going to go all the way to ensure that we do all it takes to generate
enough incomes from both our basic product and services offerings and our
complimentary services. The only source of income for Global Dustless Chalk Limited
is therefore the production and supply of dustless school chalk to schools, the textile
49
industry, hardware shops, artists, marble cutters and general wholesalers and
distributors.
11.3 Sales Forecast
The sales performance of the Global Dustless Chalk Limited dustless school chalk
production and supply enterprise are summarized in Table 14 below.
Table 14: GDCL’s Six-Year Sales Forecast (In UGX)

Project Year 1 2 3 4 5 6
Products
Dustless School Chalk Boxes 42,120 42,120 42,120 42,120 42,120
Average Prices [UGX]
Dustless School Chalk per Box 52,000 54,600 57,330 60,197 63,206
Sales Income
Dustless School Chalk UGX 2,190,240,000 2,299,752,000 2,414,739,600 2,535,476,580 2,662,250,409
Total Annual Income (UGX) 2,190,240,000 2,299,752,000 2,414,739,600 2,535,476,580 2,662,250,409
11.4 Total Initial Investment Cost & Financing
The total investment cost of the project including working capital is estimated at UGX
904.50 million. The major breakdown of the total initial investment cost and financing
plan is shown in Table 15 below.
Table 15: Initial Project Investment Cost (In UGX)

S. No. Project Investment Component Share % GDCL Equity Project Total [UGX]
[UGX] Funding [UGX]
1 Land @ Kikubampanga 5.53% 25,000,000 25,000,000 50,000,000
2 Plant Buildings & Infrastructure 39.25% 55,000,000 300,000,000 355,000,000
3 Perimeter Fencing 3.32% 0 30,000,000 30,000,000
4 Plant Equipment & Machinery 23.05% 24,500,000 184,000,000 208,500,000
5 Vehicles 12.27% 0 111,000,000 111,000,000
6 Business Growth Capitalization 4.98% 0 45,000,000 45,000,000
7 Market Expansion Capitalization 3.32% 0 30,000,000 30,000,000
8 Working Capital 8.29% 0 75,000,000 75,000,000
9 TOTAL PROJECT FUNDING 100.00% 104,500,000 800,000,000 904,500,000
10 %age of Total Project Funding 11.55% 88.45% 100.00%
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11.5 Total Annual Operating Costs
The annual total operating costs for the six year financial analysis period (i. e. Project
Year 1 to Project Year 6) are shown in Table 16 below.
Table 16: Annual Operating Expenses (In UGX)

ACCOUNT HEAD PROJECT YEAR
PROJECT YEAR 1 2 3 4 5 6 %age
Operating Costs (UGX)
Direct Costs
Plaster of Paris 691,563,600 726,141,780 762,448,869 800,571,312 840,599,878 51.00%
French Chalk 235,872,000 247,665,600 260,048,880 273,051,324 286,703,890 17.39%
Kaolin 126,360,000 132,678,000 139,311,900 146,277,495 153,591,370 9.32%
Binder 157,248,000 165,110,400 173,365,920 182,034,216 191,135,927 11.60%
Packaging Materials 21,060,000 22,113,000 23,218,650 24,379,583 25,598,562 1.55%
Utility Costs 8,880,000 9,324,000 9,790,200 10,279,710 10,793,696 0.65%
Total Direct Costs 1,240,983,600 1,303,032,780 1,368,184,419 1,436,593,640 1,508,423,322 91.51%
Fixed Costs
Salaries & Wages 84,000,000 88,200,000 92,610,000 97,240,500 102,102,525 6.19%
Selling and Distribution 4,440,000 4,662,000 4,895,100 5,139,855 5,396,848 0.33%
Administration Expenses 4,440,000 4,662,000 4,895,100 5,139,855 5,396,848 0.33%
Shelter 4,440,000 4,662,000 4,895,100 5,139,855 5,396,848 0.33%
Total Fixed Costs 97,320,000 102,186,000 107,295,300 112,660,065 118,293,068 7.18%
Total Operating Expenses 1,338,303,600 1,405,218,780 1,475,479,719 1,549,253,705 1,626,716,390 98.69%
Financial Costs (UGX)

Project Finance Interest 96,000,000 76,800,000 57,600,000 38,400,000 19,200,000 1.16%
Depreciation 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 0.15%
Total Financial Costs 98,400,000 79,200,000 60,000,000 40,800,000 21,600,000 1.31%
Total Production Costs 1,436,703,600 1,484,418,780 1,535,479,719 1,590,053,705 1,648,316,390 100.00%
11.6 Enterprise Profitability
According to the projected income statement, the project will start generating profit in
the first year of operation (Project Year 2). Important ratios such as profit to total sales,
and net profit on total investment (return on total investment) show an increasing trend
during the life-time of the project.
The income statement and the other indicators of profitability show that the project is
viable. Enterprise profitability is shown in the following sub-sections:
51
11.6.1 Projected Annual Net Income
The stabilized average annual income realized by the Global Dustless Chalk Limited
dustless school chalk production and enterprise for the first six years of the project is
presented in the Projected Net Annual Income Statement in Table 17 below.
Table 17: GDCL Projected Annual Net Income Statement [6 Years] in UGX
Project Year Scaling Up 2 3 4 5 6
Income _ 2,190,240,000 2,299,752,000 2,414,739,600 2,535,476,580 2,662,250,409

Direct Costs _ 1,240,983,600 1,303,032,780 1,368,184,419 1,436,593,640 1,508,423,322
GROSS PROFIT _ 949,256,400 996,719,220 1,046,555,181 1,098,882,940 1,153,827,087
Less: Fixed Costs _ 97,320,000 102,186,000 107,295,300 112,660,065 118,293,068
OPERATING PROFIT 851,936,400 894,533,220 939,259,881 986,222,875 1,035,534,019
Project Finance Interest @ 12% p.a. 96,000,000 76,800,000 57,600,000 38,400,000 19,200,000
Less: Annual Repayments 160,000,000 160,000,000 160,000,000 160,000,000 160,000,000
NET PROFIT/LOSS BEFORE TAX 595,936,400 657,733,220 721,659,881 787,822,875 856,334,019
Corporation Tax 30% 178,780,920 197,319,966 216,497,964 236,346,863 256,900,206
NET PROFIT/LOSS _ 417,155,480 460,413,254 505,161,917 551,476,013 599,433,813
Accumulated Net Profit (Loss) _ 417,155,480 877,568,734 1,382,730,651 1,934,206,663 2,533,640,476

Net Profit Margin _ 19.05% 20.02% 20.92% 21.75% 22.52%
Gross Profit Margin 43.34% 43.34% 43.34% 43.34% 43.34%
Rate of Return on Investment _ 46.12% 50.90% 55.85% 60.97% 66.27%
Operating Profit Margin 38.90% 38.90% 38.90% 38.90% 38.90%
11.6.2 Break Even Analysis
The Global Dustless Chalk Limited school dustless chalk production and supply
enterprise Break-even Analysis figures are linked to the Total Annual Operating Costs
and Projected Net Annual Income Statement (in Table 16 and Table 17 above
respectively).The project’s commercial break-even level (profitability break-even) in
Project Year 5 is calculated in Table 18 below:
52
Table 18: Break-Even Analysis in Project Year 5 (In UGX)
Items Direct Costs Fixed Costs Total Costs
Salaries and Wages 72,930,375 24,310,125 97,240,500
Plaster of Paris 600,428,484 200,142,828 800,571,312
French Chalk 204,788,493 68,262,831 273,051,324
Kaolin 109,708,121 36,569,374 146,277,495
Binder 136,525,662 45,508,554 182,034,216
Packaging Materials 18,284,687 6,094,896 24,379,583
Utility Costs 7,709,783 2,569,928 10,279,710
Selling and Distribution 3,426,570 1,713,285 5,139,855
Administration Expenses 3,426,570 1,713,285 5,139,855
Shelter 3,426,570 1,713,285 5,139,855
Depreciation 0 2,400,000 2,400,000
Financial Expenses 0 38,400,000 38,400,000
TOTAL 1,160,655,315 429,398,390 1,590,053,705
Sales Value of Production = UGX 2,535,476,580
Break-even Sales = 429,398,390 = 429,398,390 = 429,398,390

1 –1,160,655,315 1 –0.4578 0.5422
2,535,476,580
Break-even Sales = UGX 791,906,256
Capacity utilization required to Break-even = UGX 791,906,256 x 100 = 31.23%

UGX 2,535,476,580
Margin of Safety = 100% – 31.23% = 68.77%.
11.6.3 Payback Period
The investment cost and income statement projection are used to project the pay-back
period. The project’s initial investment will be fully recovered within 3 years (2.72
years). Calculation of the payback period is shown in Table 19 below.
53
Table 19: Projected Payback Period (In UGX)
PROJECT YEAR/ITEM 2 3 4 5 6
Net Profit 417,155,480 460,413,254 505,161,917 551,476,013 599,433,813

Interest 96,000,000 76,800,000 57,600,000 57,600,000 38,400,000
Depreciation 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000
"Profit" 515,555,480 539,613,254 565,161,917 611,476,013 640,233,813
Year Amount paid Balance of Balance of

back from Total Equity
"profits" Investment Investment
1 0 -904,500,000 -104,500,000
2 515,555,480 -388,944,520 411,055,480
3 539,613,254 150,668,734 950,668,734
4 565,161,917 715,830,651 1,515,830,651
5 611,476,013 1,327,306,663 2,127,306,663
6 640,233,813 1,967,540,476 2,767,540,476
7
8
9
10
Payback Period = 2.72 Years
54
12.0 BUSINESS RISKS AND MITIGATION PLAN
12.1 General Business Risk Analysis
o Risk: Inexperienced management team

Mitigation: Global Dustless Chalk Limited has on board an experienced management
team that is has been steadily growing in confidence, skill and marketing know-how in
the area of dustless school chalks over the last 10 years that the Company has been in
semi-active business [doing partial business]. This will continue to greatly help Global
Dustless Chalk Limited in anchoring the production, sales and marketing of its
dustless school chalks within the Uganda domestic market.
o Risk: Non-achievement of sales targets

Mitigation: Failure to achieve sales targets will have significant consequences on the
business’ financial projections and thus its ability to meet its financial obligations. In
recognition of this, the business’ financial projections have been prepared based on a
conservative sales estimate that takes unforeseen implementation problems into
account. Secondly, going by the present high market demand trends for dustless school
chalks in Uganda, there is every indication that consumer spending power is well
disposed towards purchase of dustless school chalks as these are routine educational
necessity goods where the current market supply is much less than market demand and
therefore greatly diminishes and negates this risk.
o Risk: Market risk – There is currently no regulatory regime for the dustless
school chalks market in Uganda. There are also significant price volatilities since
supply and demand levels are subject to availability and seasonality.
Mitigation: Market data show that there is a ready and fast-growing market for
dustless school chalks across the country, and that as household and business income
increases, consumers would tend to shift to locally manufactured goods through
adoption of the BUBU (Buy Uganda Build Uganda) Policy. The consultant validated
Global Dustless Chalk Limited’s expectations and fast-expanding market
opportunities, and the market forecast was used as the basis for the company's financial
model.
o Risk: Regulatory and political risk – The regulatory environment in Uganda is

still developing.
Mitigation: Given Global Dustless Chalk Limited’s capacity for high quality supply of
dustless school chalks to meet the growing domestic, regional and international market
55
demand, and the growing market presence of the sponsors [Global Dustless Chalk
Limited], the risk of regulatory and political interference is manageable.
o Risk: Failure to comply with safety codes and regulations
Mitigation: Global Dustless Chalk Limited will provide continuous education to its
staff and clients. In addition, the strict enforcement of safety standards by the
regulatory bodies is also expected to mitigate this risk. Global Dustless Chalk Limited
will also secure comprehensive insurance coverage for all its plant installations and
dustless school chalks supply-chain distribution network assets in Uganda.
o Risk: Environmental and Social

There may be a lack of a regular and reliable supply of dustless school chalks to the
Global Dustless Chalk Limited’s countrywide market network sales agents in
Kampala and other up-country towns throughout Uganda which may be situated
hundreds of kilometres from the main dustless school chalks production, packaging
and supply source at Kikubampanga in Wakiso District.
Mitigation: To mitigate this risk, Global Dustless Chalk Limited will always ensure
that there is a continuous dustless school chalks supply and replenishment deliveries to
guarantee adequate dustless school chalks stocks at its key supply and distribution
terminal in Wakiso District.
o Risk: Foreign currency

Mitigation: For the domestic market, the business will generate revenue in local
currency; its import purchases [especially for Plaster of Paris] are however denominated
in US dollars. A sharp depreciation in the value of the local currency against foreign
exchange would therefore affect the repayment of the loan as more local currency
would be needed. To mitigate this risk, the net sales, operating income and net income
forecasts of Global Dustless Chalk Limited are calculated taking into account currency
depreciation, inflation trends and the tax rates in the country.
o Market Risks Assessment Matrix

Lastly, a risk analysis was done revealing market risks and ways of mitigation these
risks. Market risks exist in three categories namely; customer risk, competitor risk and
supplier risk. However, in this analysis, we used the risk assessment matrix to identify
risks of highest priority down to the lowest ones. This enables us to assess the impact of
the risks on the business start-up.
56
Figure 4: Market Risk Assessment Matrix
Fire outbreak in the Late delivery of
High
(Severity of potential consequences)
warehouses/plant Health risk through accidents and products to Highest
Medium machine breakdown sickness customers priority
Impact
Theft of business ideas by Medium

competitors NEMA regulations priority
Low
Lowest
Advancement in technology priority
small Medium high
Likelihood
A market risk management plan was developed to help recognize and rationally
respond to both the most obvious risks and the unanticipated occurrences irrespective
of the magnitude in a cost effective manner. The risk management plan is shown in the
table below.
57
Table 20: Market Risk Management Plan for GDCL Chalk Production and Supply Operations
Priority Risk factor Type Likelihood Severity of Mitigation tactics
potential
impact
1 Late delivery of Operational High Large - Increase production capacity.
products to - Improve products supply chain
customers logistics.
2 Health risk Operational Medium Large - Health Insurance.
- Protective gear
- Visible signs
- Mandatory regular checks
3 Machine Technology Small Large - Maintenance
breakdown - Insurance of plant machines
- Train local engineers
- Maintain inventory of machine
parts to avoid having to spare
parts at short notice
4 Fire outbreak in Operational Small Large - Install First Aid kit
storage - Install fire extinguisher
warehouses - Fire drill start training
- Emergency exit points
5 Theft of business Competition Medium Medium - Protect exhibits,
ideas measurements and
ingredients during
presentations
6 Advancement in Technology Medium Low - Upgrade for particular
technology machine parts
12.2 SWOT Analysis
Due to our drive for excellence when it comes to running a standard chalk production
business, we were able to engage some of the finest business consultants in Uganda to
look through our business concept and together we were able to critically examine the
prospect of the business and to access ourselves to be sure we have what it takes to run
a standard chalk production business that can compete favorably in the chalk
production line of business in Africa.
In view of that, we were able to take stock of our strengths, our weakness, our
opportunities and also the threats that we are likely going to be exposed to in Uganda
and also in other parts of the world that we intend selling our chalks. Here is a preview
of what we got from the critically conducted SWOT Analysis Global Dustless Chalk
Limited;
58
12.2.1 Strength
Our strength lies in the fact that we have state of the art chalk production facility and
equipment that has positioned us to meet the demand of chalk in Uganda even if the
demand tripled over night or if we have a massive order to meet and emergency need.
Another factor that counts to our advantage is the background of our Chief Executive
Office; he has a robust experience in the industry and a strong interest and passion for
chalks industrial activity to match the experience which strategically places him
amongst the top flight business men in this line of industry in Uganda. We are not
ignoring the fact that our team of highly qualified and dedicated workers will also serve
as strength for our organization.
12.2.2 Weakness
We do not take for granted the facts that we have weaknesses. In fact, the reality that we
are setting up a chalk production company in an area of the country with other smaller
and larger chalk production businesses which might likely pose a challenge for us in
breaking into the already saturated market in Uganda.
In essence our chosen location might be our weakness. But never the less, we have plans
to launch out with a big bang. We know with that, we will be able to create a positive
impression and we have a proper handle when it comes to building on already
gathered momentum.
12.2.3 Opportunities
The opportunities available to us are unlimited. Loads of people make use of chalk on a
daily basis and all what we are going to do to push our chalk to them is already
perfected. Kikubampanga in Wakiso District is just ideal for chalk production business
because of the creativity and readily available technology and labor in one of the most
peri-urbanized districts in Uganda.
12.2.4 Threat
The threat that is likely going to confront us is the fact that we are competing with
already established chalk production businesses in Uganda and also there are other
entrepreneurs who are likely going to launch similar business within the location of our
business.
59
Of course, they will compete with us in winning over the available market. Another
threat that we are likely going to face is unfavorable government policies and economic
downturn. Usually economic downturn affects purchasing / spending powers and
unfavorable government policies.
60
13.0 PROJECT SOCIO-ECONOMIC ASPECTS
13.1 Economic Benefits
The business scaling up of the Global Dustless Chalk Limited dustless school chalks
production and supply enterprise will have the following socio-economic benefits:
 In an ocean of volatile industries, the chalks industry represents an island of stability
during times of economic uncertainty. Among the various industries that characterize the
modern global economy, the Chalks Industry is amongst the most resilient to economic
shocks. Unlike other industries, the chalks sector is not prone to mass layoffs or
substantial dips in profit when the economy slows down. This is due to the nature of the
goods themselves.
 It is easier for people to cut back consumption on luxury products during recessions,
however, this does not hold true for educational essentials dustless school chalks. In
effect, buyers shift consumption to more economic-alternatives of the same product.
Consequently, the demand for these goods remains relatively stable. As the educational
sector continues to expand in Uganda and population of school-going children and family
incomes continue to rise, the chalks industry will witness an increase in their customer
base locally, thus reaping the rewards of social progress and upward economic mobility.
 PAYE taxes paid by the employees of Global Dustless Chalk Limited contribute to the
local government budgets as well the national budget.
 Company tax will be regularly paid to the local and central government to boost public
expenditure on the provision of goods and services.
 The forex earnings in hard currency out of the exportation of dustless school chalks by
Global Dustless Chalk Limited.
 There are a number of services that are directly and indirectly supported by the growth
and expansion of the Global Dustless Chalk Limited dustless school chalks production
and supply-chain distribution activities, such as import-export/trading firms, auditing and
legal. These services also play a key role in ramping up the growth of the Uganda
domestic gross domestic product (GDP).
 The business growth and market expansion of the Global Dustless Chalk Limited
dustless school chalks production and supply enterprise will create a strongly positive net
effect of increasing the production and supply-chain distribution of dustless school chalks
in Uganda.
 Profits from the Global Dustless Chalk Limited dustless school chalks production and
supply enterprise will be either paid out as dividends or used for additional capital
expenditure or contributions to the community as corporate social responsibility (CSR)
contributions.
The project has already created employment for 12 Ugandans. In addition to supply of the
domestic needs, the project will generate UGX 1,085.85 million as cumulative total tax revenue
over the six-year project analysis period. The market growth of such a dustless school chalks
production and supply enterprise also possesses significant potential to earn hard currency for
Uganda through exports – especially to neighbouring countries such as DR Congo and South
Sudan.
61
14.0 CONCLUSION & RECOMMENDATIONS
Global Dustless Chalk Limited is still a young dustless school chalk production and
supply company that has ambitions to scale up its growth in a fast-growing albeit
increasingly competitive market that demands marketing savvy and product
standardization through certification, branding and unique packaging that defines
product and company identity, creates consumer recognition, ensures quality and
consistency and builds relationships besides enhancing customer trust and reputation.
In this Business Plan document, Global Dustless Chalk Limited seeks project
investment capital to the tune of UGX 800 million to acquire additional technological
and financial capital plus expansion on its existing chalk production and storage
building infrastructure facilities so that it can significantly scale up its chalk production
output and supply-chain capabilities to match and benefit from the surging market
demand for dustless school chalk in Uganda which is still being largely supplied
through imports from Egypt and Kenya. Because of the low per capita consumption for
almost all the products in the country, chalk-making companies in Uganda have
immense opportunities and possibilities for growth. And if the companies are able to
change the mind-set of the consumers, i.e. if they are able to take the consumers to
branded products and offer new generation products, they would be able to generate
higher growth in the near future.
It can thus be concluded from the foregoing business analysis and financial modelling
in the Business Plan that strengthening the business operations of Global Dustless
Chalk Limited through infusion of modest project finance capital of UGX 800 million
to scale up its industrial production facilities (equipment and infrastructure) situated at
Kikubampanga in Wakiso District and boost its chalks supply capabilities in a more
consistent and sustained manner will turn it a robust, commercially viable and
important player in the chalks production, supply chain and distribution system of
Uganda. It is further recommended that an early decision to facilitate it with the
requisite project financing of UGX 800 million be expedited such that a full-scale
implementation of its dustless school chalks production and supply enterprise follows
the fastest track possible for the benefit of the project promoters, the light industrial
sector, the domestic and regional chalks industry and market, and the Ugandan
economy at large.
62

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BUSINESS PLAN:

REQUISITION & APPLICATION

UGX 800 MILLION

PROJECT FINANCING FACILITY

GLOBAL DUSTLESS CHALK LIMITED

LIGHT INDUSTRIAL PLANT

KIKUBAMPANGA, WAKISO DISTRICT

GLOBAL DUSTLESS CHALK LIMITED

S/NO. DESCRIPTION PAGE

1.0 EXECUTIVE SUMMARY 2

2.0 PURPOSE OF THE DOCUMENT 12

3.0 PROJECT PROFILE 13

4.0 COMPANY PROFILE & BUSINESS LEGAL ASPECTS 17

6.0 MARKET ANALYSIS 29

7.0 ORGANIZATIONAL AND MANAGEMENT PLAN 34

8.0 SALES AND MARKETING STRATEGY 40

9.0 SUSTAINABILITY AND EXPANSION STRATEGY 44

10.0 IMPLEMENTATION PLAN 45

12.0 BUSINESS RISK ANALYSIS & MITIGATION PLAN 55

13.0 SOCIO-ECONOMIC ASPECTS 61

14.0 CONCLUSION & RECOMMENDATIONS 62

T/NO. DESCRIPTION PAGE

1 Source and Use of Project Financing 5

2 Planned Company Manpower Structure 9

3 Key Project Performance Parameters 10

4 Critical Success Factors 15

6 The Company Shareholding Structure 21

7 Required Licenses, Approvals and Consents 23

8 Demand and Supply of Chalk in Uganda [2011-2018] 32

9 Manpower Requirement and Estimated Annual Labour Cost 39

10 Project Timeline Activities 45

11 General Production & Pricing Assumptions 48

12 Operating Expense Assumptions (in Project Year 2) 49

13 Economic Related Assumptions 49

14 GDCL’s Six-Year Sales Forecast 50

15 Initial Project Investment Cost 50

16 Annual Operating Expenses 51

17 GDCL Projected Annual Net Income Statement [6 Years] 52

18 Break-even Analysis in Project Year 5 53

19 Projected Payback Period 54

F/NO. DESCRIPTION PAGE

1 Projected Financial Performance Highlights 10

2 Future Global Dustless Chalk Limited Organizational Structure 38

3 Project Implementation Activities Sequence 46

4 Market Risk Assessment Matrix 57

1.1 Project Description

1.2 Location and Site

1.3 Business Objectives

Our commitment to customer satisfaction is ongoing and through continuous

The above objectives are to be achieved through:

1.4 The Team

The Global Dustless Chalk Limited management team is spearheaded by its

1.5 Financing Requirement for Project Investment

Table 1: Source and Use of Project Financing

1.6 Management Equity