BUSINESS PLAN

ON
FOOD PROCESSING
 TABLE OF CONTENT
1.0 EXECUTIVE SUMMARY
2.0 FOOD PROCESSING
2.1 INTRODUCTION
2.2 THE COMPANY
2.3 OUR VISION STATEMENT
2.4 OUR MISSION STATEMENT
2.5 BENEFITS OF THE FOOD PROCESSING AND PACKAGING
2.6 CHALLENGES OF THE FOOD PROCESSING AND PACKAGING BUSINESS
3.0 PRODUCTS AND SERVICES
3.1 MAJOR PROCESSED FOOD PRODUCTS
3.2 SUPPLY OF FOOD PRODUCTS
3.3 LIST OF REQUIRED ITEMS
4.0 MANAGEMENT
4.1 OUR BUSINESS STRUCTURE
4.2 ROLES AND RESPONSIBILITIES
4.3 SWOT ANALYSIS
5.0 MARKET ANALYSIS
5.1 MARKET TRENDS
5.2 OUR TARGET MARKET
5.3 OUR COMPETITIVE ADVANTAGE
6.0 SALES AND MARKETING STRATEGIES
6.1 SALES INCOME
6.2 SALES FORECAST
6.3 OUR PRICING STRATEGIES
6.4 PUBLICITY AND ADVERTISING STRATEGIES
7.0 FINANCIAL ANALYSIS
7.1 FINANCIAL PROJECTION AND COSTING
7.2 SUSTAINABILITY AND EXPANSIVE STRATEGY

1.0 EXECUTIVE SUMMARY

TENNYORE FOODS LIMITED is a world class and registered food processing company that will be based in
Ketu, Kosofe area of Lagos State, Nigeria. We have done our detailed market research and feasibility studies and
we were able to secure a well – situated and suitable location to start our food processing company.
Our food processing company is a going to be standard food processing company hence will be involved in high
quality standard products.

We have put plans in place that will help us launch a standard and world – class food processing plant within the
first three years of officially running TENNYORE FOODS LIMITED. We will process and package foods and
ensure that they flood the market both in the Nigeria and in other countries of the world; we want to compete with
the best in the industry.

Which is why aside from the fact that we’ve secured the required space (location) and most of the equipment and
machines, we have also hired some key employees who are currently undergoing training so as to be able to fit into
the ideal picture of the 21st century food processing company workforce that we want to build.

We are in the food processing business because we want to leverage on the vast opportunities available in the food
processing industry, to contribute our quota in growing the Nigeria economy, in national food production, raw
materials production for industries, to export food produce from Nigeria to other countries and over and above to
make profit.

Below are the projections that we were able to come up with for the first three years of running TENNYORE
FOODS LIMITED;

 First Fiscal Year-: N10,000,000.00

 Second Fiscal Year-: N20,000,000.00
 Third Fiscal Year-: N30,000,000.00
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 that can impact negatively on household spending, and unfavorable government
policies.
TENNYORE FOODS LIMITED is well positioned to become one of the leading food processing companies in
Nigeria, which is why we would be able to source for the best hands and farm machineries to run a farm with. We
have put process and strategies in place that will help us employ best practices when it comes to food processes and
packaging as required by the regulating bodies in the Nigeria.
2.0 FOOD PROCESSING
2.1 INTRODUCTION
The food processing and packaging business is the preparation and packaging of edible food items in forms that
cause them to have a far lesser spoilage period for human and animal consumption. They’re faster to use in meal
preparations since they’re already processed, and in the process, saves the chef a lot of time and money.
The food processing and packaging business in Nigeria can be a Lucrative and profitable venture, due to its vast
market demands and on your own ability to build a wide supply chain network. If you’re looking for a business to
venture into, the food processing and packaging business in Nigeria is another option to explore. The food
processing industry is a multi-billion dollar industry where raw ingredients are transformed into food for human
consumption. Generally, the food processing involves the processing of clean and harvested crops into
marketable food products.
This industry is highly vibrant in Nigeria, Africa, and the rest of the world because asides the fact that multi-billion
dollar revenues are generated in it, processed food is now an integral part of almost every meal as it is used in food
preparation one way or the other.
2.2 THE COMPANY
TENNYORE FOODS LIMITED is a new Company located in Ketu Area of Lagos state Nigeria. Specializes in
food processing and packaging. Food processing is the preparation of food items from one or several individual
ingredients to produce an edible food that is either eaten directly like fried cashew nut or to be cooked into meals
like plantain flour. After which it is sold to consumers both locally and abroad.
The processing of the food items is usually done by machines, some of which are deep fryers, some cutters, some
crushers and grinders.

2.3 OUR VISION STATEMENT

Our Vision is to become one of the leading food processing company not just in Nigeria but also on the global
stage.
2.4 OUR MISSION STATEMENT
TENNYORE FOODS LIMITED is a world class and registered food processing company that is committed to
produce quality foods for both the Nigeria and the global market. We want our food to be known in every nooks
and crannies of Nigeria and other countries of the world.
2.5 BENEFITS OF THE FOOD PROCESSING AND PACKAGING BUSINESS
  To start a food processing and packaging business as a manufacturer in Nigerian, TENNYORE FOODS
LIMITED shall be registered with the National Agency for Food and Drug Administration and Control
(NAFDAC), Standard Organisation of Nigeria (SON), Corporate Affairs Commission (CAC), and the
Federal & State Ministries of Health
 The food processing and packaging industry has hundreds of business ideas and opportunities within it to not
just aid a savvy entrepreneur to grow a successful business but to also create thousands of jobs in the
process.
 Nigeria’s food processing industry is valued at over $100 billion.
 The food processing industry in Nigeria provides an estimated minimum of 20 million direct jobs
2.6 CHALLENGES OF THE FOOD PROCESSING AND PACKAGING BUSINESS
Some of the challenges of food processing and packaging in Nigeria and many parts of Africa include:
 Lack of experience
 Low and unstable investment in agricultural research
 Financial Constraints
 Storage Constraints
 Farm Inputs Constraints
 Infrastructural Constraints
 Marketing Constraints
3.0 PRODUCTS AND SERVICES
3.1 TENNYORE FOODS MAJOR PROCESSED FOOD PRODUCTS
They include:
 Fried foods – e.g. Potato Chips, Plantain Chips, etc.
 Powdered foods – e.g. Plantain flour, Cassava Flour, Garri, Yam Flour
 Snack foods – e.g. Cashew nut, Cassava Chips.

3.2 SUPPLY OF FOOD PRODUCTS

Most of the products can be supplied from local markets, but in medium or large scale production it usually has to
come directly from a farmer. In some cases the company have to arrange with several farmers to get the exact
amount they want, one farmer may not be able to meet the demand.

3.3 LIST OF REQUIRED ITEMS

Generally, all the food processing businesses share a common list in terms of what they need for the business.

Items Description

Machines and equipment They include grinders, boilers, deep fryers, cutters,
mixers and so on. Some may require serious expertise
 before being operated.

This is the food that is being processed and the

Food items
ingredients that go with it.

Hire competent hands to help handle the work

Staff
especially those that require experience.

This is in the case of large scale processing. Where the

food product is produced.

4.0 MANAGEMENT
4.1 OUR BUSINESS STRUCTURE
TENNYORE FOODS LIMITED is a privately owned and managed food processing business that intend starting
small in food industry in Ketu, area of Lagos State, but hope to grow big in order to compete favorably with
leading food processing companies in the industry both in Nigeria and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture of the kind of
world class business we want to own. This is why we are committed to only hire the best hands within our area of
operations.
At TENNYORE FOODS LIMITED, we shall ensure that we hire people that are qualified, hardworking, and
creative, result driven, customer centric and are ready to work to help us build a prosperous business that will
benefit all the stake holders (the owners, workforce, and customers).
In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
• Chief Executive Officer
• General Food processing Manager
• Factory Supervisor
• Factory Attendant
• Field Workers / Contract Staff
4.2 ROLES AND RESPONSIBILITIES
Chief Executive Officer – CEO:

 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.
 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
General Factory Manager

 Responsible for the planning, management and coordinating all factory activities across the various sections
on behalf of the organization
 Supervises other section manager
  Ensures compliance during project executions
 Provides advice on the management of factory activities across all section
 Responsible for carrying out risk assessment
 Using IT systems and software to keep track of people and progress of the growth of the food processing
plant.
 Responsible for overseeing the accounting, costing and sale of processed foods.
 Represents the organization’s interest at various stakeholders meetings
 Ensures that factory goals desired result are achieved, the most efficient resources (manpower, equipment,
tools and chemicals et al) are utilized and different interests involved are satisfied.
 Responsible for preparing financial reports, budgets, and financial statements for the organization
Factory Supervisor

 Responsible for overseeing the smooth running of the factory.

 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 office.
Factory Attendant
  Responsible for preparing financial reports, budgets, and financial statements for the organization
 Welcomes clients and potential clients by greeting them in person, online or on the telephone; answering or
directing inquiries.
 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a
personalized customer service experience of the highest level
 Through interaction with clients on the phone, uses every opportunity to build client’s interest in the
company’s products and services
 Manages administrative duties assigned by the creative director in an effective and timely manner
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting for one or more properties.
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for TENNYORE FOODS LIMITED.
Field Workers / Contract Staff

 Responsible for cleaning the factory and the entire environment.

 Handles factory implements and machines as instructed by the section manager / supervisor.
 Carries out task in line with the stated job description
 Assists in transport working tools and equipment from the factory and back to the designated store room
 Handles any other duties as assigned my the line manager
4.3 SWOT ANALYSIS
TENNYORE FOODS LIMITED do not intend to launch out with trial and error hence the need to conduct a proper
SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the
foundation that will help us build a standard food processing company that will favorably compete with leading
players in the Food processing industry in Nigeria and in the rest part of the world.
We engaged the services of a core professional in the area of business consulting and structuring to assist our
organization in building a well – structured food processing company that can favorably compete in the highly
competitive food processing industry in Nigeria and the world at large.
Part of what the team of business consultants did was to work with the management of our organization in
conducting a SWOT analysis for TENNYORE FOODS LIMITED. Here is a summary from the result of the
SWOT analysis that was conducted on behalf of TENNYORE FOODS LIMITED;

 Strength:
Our strength as a food processing company is the fact that we have healthy relationships with loads of major
players (food merchants) in the industry; both suppliers of raw foods within and outside of Nigeria.
We have some of the latest, tools and equipment that will help us raise and produce finished foods in
commercial quantities with less stress. Aside from our relationship (network) and equipment, we can
confidently boast that we have some of the most experienced hands in Ketu, area of Lagos State in our
payroll.
 Weakness:
Our weakness could be that we are a new food processing company in Nigeria, and perhaps it might take us
sometime to attract big time customers in the industry. We are aware of this and from our projection will
overcome this weakness with time and turn it to a major advantage for the business.
 Opportunities
 The opportunities that are available to us as a standard and world – class food processing company cannot be
quantified, we know that there are loads of households, and businesses such as hotels and fast food
restaurants that can’t do without daily supply of processed foods. We are well positioned to take advantage
of this opportunity
 Threat:
Some of the threats and challenges that we are likely going to face when we start our own food processing
company are global economic downturn that can impact negatively on household spending, unfavorable
government policies and the arrival of a competitor within same location. There is hardly anything you can
do as regards this threats and challenges other than to be optimistic that things will continue to work for your
good.
5.0 MARKET ANALYSIS
5.1 MARKET TRENDS
The Food processing industry has greatly benefited from campaigns advertising the health benefits of processed
foods as a good source of diet. The vast majority of the revenue generated in the industry is derived from sales of
raw foods that will be processed into finished food products; this industry’s success is tied to levels of processed
food consumption.
Per capita processed food consumption in Nigeria has increased over the last few years, putting relief on businesses
in this industry. Nonetheless, increases in the price of processed food, combined with a healthy export market, have
boosted the revenue growth in this industry. The revenue generated from the processed food industry is projected
to grow at an annualized rate of 0.3 percent to N1.5 billion over the five-year period.
As a matter of fact, one of the new trends is that with the recent advancement in technology, food processing
company can now comfortably predict and produce the quantities of food they want to produce per time from their
factory.
5.2 OUR TARGET MARKET
Naturally, the target market of those who are the end consumer of processed food and those who benefits from the
business value chain of the food processing industry is all encompassing; it is far – reaching.
Every household consumes products from processed food. So also almost all hotels and fast restaurants sell
processed foods. In essence a food processing company should be able to sell his or her products to as many people
as possible.
In view of that, we have positioned our business to attract consumers of processed foods not just in Nigeria alone
but also other parts of the world. We have conducted our market research and survey and we will ensure that we
meet and surpass the expectations we set for the business.
Below is a list of the people and business that we shall market our processed finished food to;

 Households
 Individuals
 Supermarkets and Stores
 Hotels
 Restaurants
 Fast food eateries
 Food merchants
5.3 OUR COMPETITIVE ADVANTAGE
It is easier to find entrepreneur flocking towards an industry that is known to generate consistent income which is
why there are increase number of food processing company in Nigeria and of course in most parts of the world.
As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial processing cum food
business. This is so because part of the success of any nation is her ability to cultivate her own food and also export
foods to other nations of the world.
TENNYORE FOODS LIMITED is fully aware that there are competitions when it comes to selling processed food
all over the globe, which is why we decided to carry out thorough market research to know how to take advantage
of the available market in Nigeria and in other parts of the world.
We have done our homework and we have been able to highlight some factors that will give us competitive
advantage in the marketplace; some of the factors are effective and reliable food processes that can help us sell our
products at competitive prices, good network and excellent relationship management.
Another competitive advantage that we are bringing to the industry is the fact that we have healthy relationships
with loads of major players (food merchants) in the industry; both suppliers of raw foods and buyers of processed
food within and outside of Nigeria.
We have some of the latest, tools and equipment that will help to produce processed foods in commercial quantities
with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some
the most experienced hands in Ketu area of Lagos State in our payroll.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our
category (food processing companies in Nigeria) in the industry. It will enable them to be more than willing to
build the business with us and help deliver our set goals and achieve all our business aims and objectives.
6.0 SALES AND MARKETING STRATEGY
We are quite aware that the reason why some food processing companies hardly make good profits is their inability
to sell off their products as at when due. Our sales and marketing team will be recruited based on their vast
experience in the food processing industry, and they will be trained on a regular basis so as to be well equipped to
meet their targets and the overall business goal of TENNYORE FOODS LIMITED.
Over and above, we have perfected our sale and marketing strategies first by networking with food merchants and
businesses that rely on daily supply of processed food that are likely to become our customers. In summary,
TENNYORE FOODS LIMITED will adopt the following strategies in marketing our processed foods;

 Introduce our business by sending introductory letters alongside our brochure to stake holders in the food
industry, households, hotels and restaurants and food produce merchant et al.
 Advertise our business in agriculture and food related magazines and websites
 Attend related processing food expos, seminars, and business fairs et al
 Leverage on the internet to promote our business
 Engage in direct marketing
 Encourage the use of word of mouth marketing (referrals)
6.1 SOURCES OF INCOME
TENNYORE FOODS LIMITED is in the food processing industry for the purpose of maximizing profits hence we
have decided to explore all the available opportunities within the industry to achieve our corporate goals and
objectives.
Below are the sources we intend exploring to generate income for TENNYORE FOODS LIMITED;

 Sales of processed foods.

6.2 SALES FORECAST
From the studies and the survey conducted, we were are able to discover that the sales generated by a food
processing company depends on the size of the processed food factory and, the types of products available in the
company and of course the size of their marketing network.
We have perfected or sales and marketing strategies and we are set to hit the ground running and we are quite
optimistic that we will meet or even surpass our set sales target of generating enough income / profits from the year
of operations and build the business from survival to sustainability with the shortest period of time.
We have been able to critically examine the processed food industry and we have analyzed our chances in the
industry and we have been able to come up with the following sales forecast. The sales projection is based on
information gathered on the field and some workable assumptions as well with respect to the nature of processed
food company that we run.
Below are the projections that we were able to come up with for the first three years of running TENNYORE
FOODS LIMITED;

 First Fiscal Year-: N10,000,000.00

 Second Fiscal Year-: N15,000,000.00
 Third Fiscal Year-: N20,000,000.00
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 that can impact negatively on household spending, and unfavorable government
policies.
6.3 OUR PRICING STRATEGY
Some of the factors that will help us sell our processed food at the right price that will guarantee that you make
profits is dependent on the strategy while some of the factors are beyond our control.
Over and above, In other for us to get the right pricing for our finished food products, then we shall ensure that we
choose a good location for the factory, minimum and of course try as much as possible to attract buyers to our
processed food factory as against taking our processed foods to the market to source for buyers; with this, we shall
have successfully eliminate the cost of transporting the goods to the market and other logistics.
We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all
our finished products is to sell them at competitive prices hence we will do all we can to ensure that the prices of
our products are going to be what other processing food companies would look towards beating.
One thing is certain; the nature of processing Food Company makes it possible for food processing factory to place
prices for their processed food based on their discretion without following the benchmark in the industry. The truth
is that it is one of the means of avoiding running into loss.
6.4 PUBLICITY AND ADVERTISING STRATEGY
Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready
and willing to utilize every available means (both conventional and non – conventional means) to advertise and
promote the business. We intend growing our business which is why we have perfected plans to build our brand via
every available means.
We know that it is important to create strategies that will help us boost our brand awareness and to create a
corporate identity for our food processing company. Below are the platforms we will leverage on to boost our food
processing company and to promote and advertise our business;

 Place adverts on community based newspapers, radio stations and TV stations.

 Encourage the use of word of mouth publicity from our loyal customers
 Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn,
Snapchat, Google+ and other platforms to promote our business.
 Distribute our fliers and handbills in target areas in and around our neighborhood.
 Contact corporate organizations, households, landlord associations and schools by calling them up and
informing them of TENNYORE FOODS LIMITED and the processed food we sell.
 Advertise our business in our official website and employ strategies that will help us pull traffic to the site
 Brand all our official cars and trucks and ensure that all our staff members and management staff wears our
branded shirt or cap at regular intervals.
7.0 FINANCIAL ANALYSIS
7.1 FINANCIAL PROJECTIONS AND COSTING
When it comes to calculating the cost of starting a food processing company, there are some key factors that should
serve as a guide. The different types of food to be packaged in the factory determine the total cost of setting up the
business.
Besides, in setting up any business, the amount or cost will depend on the approach and scale one wants to
undertake. We intend start by renting a place for the factory, we would ensure that your employees are well taken
care of, and that the facility is conducive enough for workers to be creative and productive.
The start-up cost can either be low or high depending on one’s goals, details of the cost is attached.
7.2 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 TENNYORE FOODS 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 products 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.
TENNYORE FOODS LIMITED will make sure that the right foundation, structures, and processes are put in place
to ensure that our staff welfare is 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.

Funding Requirement/Need
Our business needs funding for the Equipment and working capital which are projected below:
Equipment Need/Cost
S/N EQUIPMENT COST
1 Stainless Steel Milling Machine and crusher with combined stand 1,750,000
using 1115 Diesel Engine
2 1115 Diesel Engine 750,000
3 Hot Air Flash Dryer 2,500,000
4 Manual Sieving Machine 200,000
5 Sealing Machine 350,000
6 Set-up and Installation 500,000
TOTAL 6,050,000
WORKING CAPITAL
S/N ITEM COST
1 Raw Materils.i.e Plantain,Potato,Rice Paddy,Cassava etc 2,000,000
2 Ground nut oil(100Kg) 250,000
3 Nylons,Cartons ETC 300,000
TOTAL 2,550,00

PERSONNEL

S/
Position No Salary/month
N
1 CEO 1 70,000
2 Factory MANAGER 1 50,000
2 Operators/Processors 2 60,000
3 Sales representative 2 60,000
TOTAL 240,000

SALES FORECAST
Below is a forecast of our montly sales turnover on our products:
 average sales Sales
Items sizes cost price selling price volume/month Revue/Month Sales Cost Gross Profit
Plantain Flour 1kg 2,700.00 3,240.00 100 324,000.00 270,000.00 54,000.00
Ijebu Garri 1kg 1,500.00 1,800.00 150 270,000.00 225,000.00 45,000.00
Cassava Flour 1kg 2,500.00 3,000.00 80 240,000.00 200,000.00 40,000.00
Fufu Flour 1kg 2,800.00 3,360.00 50 168,000.00 140,000.00 28,000.00
Plantain Chips 500g 2,850.00 3,420.00 200 684,000.00 570,000.00 114,000.00
Plantain Chips 300g 1,850.00 2,220.00 250 555,000.00 462,500.00 92,500.00
Plantain Chips 150g 1,250.00 1,500.00 300 450,000.00 375,000.00 75,000.00
Plantain Chips 50g 180.00 216.00 500 108,000.00 90,000.00 18,000.00
Potatoes Chips 500g 1,850.00 2,220.00 100 222,000.00 185,000.00 37,000.00
Potatoes Chips 300g 1,150.00 1,380.00 120 165,600.00 138,000.00 27,600.00
Potatoes Chips 150g 650.00 780.00 200 156,000.00 130,000.00 26,000.00
Potatoes Chips 50g 100.00 120.00 500 60,000.00 50,000.00 10,000.00
Tennyore Rice 50kg 61,000.00 73,200.00 10 732,000.00 610,000.00 122,000.00
Tennyore Rice 25kg 31,000.00 37,200.00 25 930,000.00 775,000.00 155,000.00
Tennyore Rice 10kg 12,700.00 15,240.00 35 533,400.00 444,500.00 88,900.00
Tennyore Rice 5kg 6,600.00 7,920.00 40 316,800.00 264,000.00 52,800.00
Tennyore Ofada Rice 50kg 90,000.00 108,000.00 10 1,080,000.00 900,000.00 180,000.00
Tennyore Ofada Rice 25kg 45,500.00 54,600.00 15 819,000.00 682,500.00 136,500.00
Tennyore Ofada Rice 10kg 19,000.00 22,800.00 15 342,000.00 285,000.00 57,000.00
Tennyore Ofada Rice 5kg 10,000.00 12,000.00 20 240,000.00 200,000.00 40,000.00
Tennyore Ofada Rice 1kg 2,800.00 3,360.00 50 168,000.00 140,000.00 28,000.00
8,563,800.00 7,136,500.00 1,427,300.00

Yearly Sales Per Product

4 years financial Statement

 RAPID (APPLICANT FINANCIAL PROJECTION)
CUSTOMER NAME : TENNYORE FOODS LIMITED

CASH FLOW PROJECTIONS WITH ASSUMPTIONS

DESCRIPTION Year 3 Year 4
Year 1 Year 2 (NGN '000) (NGN '000)
1) CASH INFLOW
Revenue 102,765,600.00 113,042,160.00 124,346,376.00 136,781,013.60
Other Income
BOI Term Loan/Working Capital 9,500,000.00
Total Cash Inflow (A) 112,265,600.00 113,042,160.00 124,346,376.00 136,781,013.60
2) CASH OUTFLOW
Raw Materials/Consumables 85,638,000 94,201,800.00 103,621,980.00 113,984,178.00
Management & Labour 2,880,000.00 2,880,000.00 3,456,000.00 3,456,000.00
Fuel, Electricity & Water 1,200,000.00 1,200,000.00 1,320,000.00 1,320,000.00
Maintenance 300,000.00 330,000.00 363,000.00 399,300.00
Assets to be Acquired 6,050,000.00
Admin & General Expenses 600,000.00 600,000.00 720,000.00 792,000.00
Loan Repayment (G) 3,000,000.00 2,875,000.00 2,750,000.00 2,625,000.00
Taxes 513,828.00 565,210.80 621,731.80 683,904.98
Total Cash Outflow (B) 100,181,828.00 102,652,010.80 112,852,711.80 123,260,382.98
3) NET CASH FLOW
Net Cash Flow ( C) (C=A-B) 12,083,772.00 10,390,149.20 11,493,664.20 13,520,630.62
Balance brought forward (D) - 12,083,772.00 22,473,921.20 33,967,585.40
Balance Carried forward (E) (E =
C+D) 12,083,772.00 22,473,921.20 33,967,585.40 47,488,216.02
Debt Service Coverage (F) (F =E/G) 4.03 7.82 12.35 18.09
 UNDERLYING ASSUMPTIONS TO CASH FLOW PROJECTIONS
our revenue is predicated on our sales forecast for our processed products like
Plaintain Chips,Potato Chips,Yam Flour,Rice ETC. from our bisiness plan and
monthly sales forecast, we generate a sales revenue of 8,563,800.00 monthly which
results in 8,563,800.00 *12=102,765,600 in 1 year. Our goal is to alway put back
How was revenue computed? 10% of generated revenue in back into the business every year.

these include cost of

The make up of Administration and
General Expenses

our loan request is for 10Million Naira only @ 5% per annum. We computed the loan
repayment on an annual basis at 5% on reducing balance.
Computation of the loan repayment
figures

Management and labour expenses refers to our staff salaries.Tennyore Foods Limited
has a total of 6 staffs and their average salary in 1months is about N240,000 which
The make up of management and
equals 2,880,000 on annual basis. To promote staff retention,the comapany has
labour expenses enforced the policy of increasing this cost element by 20% minimum every 2 years to
reward loyalty and match possible inflation
This is the cost of purchasing our raw materials per annum.
Raw Materials and Consummable