BUS101 Group Report on Business Plan- WALI

WALI THE SMART WATER LEVEL INDICATOR 1
Business Plan
28th
April, 2015
WALI
-The Smart
Water Level Indicator
I6
Incorporation
Innovative Six
Submitted To
MS. TAHERA AHSAN
Lecturer
School of Business
Submitted By
GAULIB HAIDAR 151-0898-630
SUDIPTA BALA 151-0885-630
ARANNITA SAHA 151-2042-030
SUDIPTA DEBNATH 151-2019-030
TASNEEM NOVA 151-0512-630
KANTA CHATTERJEE 151-1097-630
On:

7/2, Purana Paltan,
Dhaka, Bangladesh
+88-02-910-00-00
info@i6.com
www.innovativesix.com
WALI
-The Smart
Water Level Indicator

Table of Contents
I. Executive Summary ..............................................................4
II. Company Description ............................................................4
Company Details
Location and Factories
Internal management structure of company
Product Descriptions and Rationale
Service
Production details and costs
SWOT Analysis
III. Industry and Market analysis ................................................. 11
Industry
Market Analysis
Future competition
Marketing Strategies
Pricing and Distribution
Operations
IV. Finance & Funding ............................................................. 13
Financial requirements
Start-Up Expenses
Projected Financial Statements
Projected Sales forecast from 2015 to 2017
Profit and Loss forecast from 2015-2017
Breakeven Analysis
Taxation

Executive Summary
The I6 Incorporation aims to create an innovation in the market of traditional water tanks of
Bangladesh. For the successful implementation of our goals and objective, we will market our
products both as business and consumer products.
We will be marketing a technology called WALI: The Smart Water Level Indicator. It is an
electronic device which will free the customers from switching the water supply off manually
when the water tank is full and thus eliminate wastage of both water and power.
As our technology is ecofriendly, we will be possessing the green advantage. Our technology
being cost effective and within the budget of our targeted market will also play a role of great
advantage for us.
We are marketing such a technology that has never before been launched in our country, so we
will not have to compete with anyone at the first time. Again as we have made a patent of our
technology, we will not have to worry about competitors for the next 10 years. So undoubtedly,
we will possess a monopoly over the market for the time being.
We have assembled a management team of elite and expert men from all the fields necessary.
These men are not only enthusiastic but also efficient and motivated to their assigned jobs as
well as the overall goal of our company.
Initially each of the 6 entrepreneurs has contributed a sum of BDT. 5,000,000. All the necessary
capitals are provided by the entrepreneurs and thus we do not require to depend on loans from
any source at the beginning. Our projections say that we will reach breakeven point within 1.5
years of going into operation and expect returns after that.
Company Description
Company Details
The name of our business is I6 Incorporation. It is a privately held corporation, aiming to joint-
venture with top water-pump producers of the country.
We have selected Private Ltd as our form of business due to the followings:
 We want our organization to have a separate legal entity from the owners.
 We do not want the owners to have any personal liability for the debts of the company.
 As Private Limited Companies are legally registered and regulated, this will portray a
prestigious and professional image to our consumers.
 It easier to obtain credit from banks with a limited corporate structure.
 Private limited companies are able to raise funds as a result of issuing shares privately.
 Tax advantages gained through effective tax planning – as dividends are taxed at a
lower rate than income.
 If such situation arises, it would probably be easier to sell a Limited Company rather
than a sole trader or partnership business.

Until now, we have received the Certificate of Incorporation from the company registrar by
fulfilling all the legal procedures including submission of the Memorandum and Articles of
Association, directors’ particulars and the registered address.
Our mission is to create a revolution in consumers that will ensure no wastage of water and
power.
Our vision is to ensure sufficient water for our children, grandchildren and their grandchildren.
Our goal is to convert all the traditional water tank in our country into Smart Water Tanks by
2023.
Location and Factories
Our company will have one factory and one office which will include a showroom.
We have signed off a deal with Gazi Tank of Gazi Group who intends to directly purchase our
product and use it in their future production line for resale, as a Business (B2B) product.
Considering this, we have acquired a factory considerably near the Gazi Tank’s factory in
Narayanganj for manufacturing our products. For our office space and showroom, we have
rented the 2nd floor of Gazi Tank’s corporate office at Purana Paltan, Dhaka. For our office
space and showroom, we have rented the 2nd floor of Gazi Tank’s corporate office at Purana
Paltan, Dhaka.
As Gazi Tank is our main business partner, the factory and office being near to Gazi Tank’s
will allow us better transportation and communication, availability of labor, supply of energy,
condition of customers, presence of complementary businesses, proximity to market and future
prospect.
Internal management structure of company
We will have six departments:
1. Production and quality control: This department will be divided into two sub-
departments, one looking after the production and the other ensuring quality.
2. Sales and marketing: This department also be divided into two sub-departments, one
responsible for sales and the other marketing our products.
3. Research and development: This department will focus on our current product and look
for ways to develop them and make them more consumer oriented.
4. Human resource: As all HR departments, ours will also be responsible for recruitment
new employees, training and developing new as well as the existing employees,
providing adequate and reasonable benefits and compensation to the employees and
ensuring legal compliance with labor, tax and employment laws.
5. Finance: This department will work to ensure regular and adequate supply of funds to
the concern, adequate returns to the shareholders which will depend upon the earning
capacity, market price of the share, expectations of the shareholders, optimum funds
utilization, and safety on investment and plan a sound capital structure to maintain
balance between debt and equity capital.
6. Accounts: This department will watch over the functions of the organization related to
accounting, for example - accounts Receivable and revenue tracking, reporting and
preparing financial statements, etc.

Below presented are the detailed management and employee information of I6 Incorporation:
Management
Level
Designation
Number of
Employees
Salary(Primarily)
Top Level
Board of Directors 6 N/A
CEO 1 160,000
CFO 1 145,000
COO 1 145,000
Top Level (Staff)
Company Secretary 1 120,000
Legal Advisor 1 120,000
Mid-Level General Manager (GM) 6 100,000
Lower-Level
Deputy General Manager (DGM) 12 60,000
Staff 24 30,000
Research and Development Staff 2 20,000
Security Staff 4 8,000
Factory Worker 25 6,000
Sales Worker 7 6,000
*All amounts in BDT

Organizational Chart
Company
Secretary
Board of
Directors
CEO
COO
GM
(Production & QC)
DGM
(Production)
DGM
(Quality Control)
GM
(Sales & Marketing)
DGM
(Sales)
DGM
(Production)
GM
(R&D)
DGM
DGM
GM
(HR)
DGM
DGM
CFO
GM
(Finance)
DGM
DGM
GM
(Accounting)
DGM
DGM
Legal
Advisor

Products and Services
In I6 Incorporation, we aim to produce goods which are environment friendly as it is our social
responsibility to ensure the sustainability of our environment and make proper use of our scarce
resources.
Product Descriptions and Rationale
We are focusing on one single product initially – WALI: The Smart Indicator.
It is a technology which saves water by switching off the power supply line when the water
reaches to the pick point of the water tank.
This product will introduce such a technology which has never before been launched in our
country. So we will have no competitors and possess a monopoly over the market for a time
being. As it is going to reduce the wastage of energy and a scarce natural resource – water, it
is likely going to be well accepted by the people all over the country resulting in more and
more increase in the number of our customers. Another main reason that will likely increase
its demand is its cost effectiveness. Also, its low cost maintenance will cause its increase in
demands.
We will provide 1 year full replacement and service warranty for our technology and also have
plans to introduce a warranty purchasing service for our customers. The warranty purchasing
service will work like a general insurance service, where the customers will pay a small amount
of money with the actual price of the technology. In exchange of the extra sum of money, we
will provide them with extended replacement and service warranty for 4 more years.
Service
Our goal is to provide our customers with the most advanced form of technology in the aspect
of market of water tanks. We will bring revolution in this market.
We will guide our customers with unbiased point of view, disclose all the features, the pros
and cons of our technology and let them decide whether to go for it or not.
We will make sure they are able to use our technology adequately and answer all of their
queries about it.
We will have a 24/7 helpline always open to answer to the queries of our existing and future
customers.
Any complain about our technology will be dealt within 24 hours of receiving.
Any servicing required during the first year of purchase will be free including full free product
replacement if required.
Those who will purchase our special warranty will receive an extended 4 year after sales
services than the normal customers.

Production details and costs
As we have mentioned above in the product and services section, we will be focusing on one
single product called - the smart indicator. Our company will produce this product in our own
factory with its own management.
This product is a simple but versatile circuit which indicates the level of water in a tank. We
have divided water tanks into three levels:
1. L1 = Lowest level of the tank
2. L2 = Level holding all of the water, the place between L1 and L2
3. L3 = Highest peak of the tank
The circuit sounds alarm when water level is below L1 and also when water exceeds L3.
However, these levels can be increased or decreased depending upon the level resolution
required. This can be done by increasing or decreasing the number of level detector metal strips
(L1 through L3) and their associate components.
The raw materials (in the following list) will be collected from several suppliers of Narayanganj
and will be delivered to our factory via our pick up vans. Our employees there, will assemble
the product according to the instructions.
*All prices are in Taka
I6 Inc. will produce six thousand pieces on the first month & our joint venture will require at
least ten thousand of our products.
Raw Materials Quantity Price per unit
Total Price
(For 1 product)
Total Cost
(per 1000 unit)
Led color Bulb 3 0.5 1.5 1,500
Buzzer 1 10 10 10,000
Transistor BC 548 4 1 4 4,000
Resistors 220 Ω 6 11 66 66,000
PCB Board 1 1.8 (Per square inch) 1.8 1,800
Soldering flux 1 60 60 60,000
DC Cable 1 15 15 15,000
TOTAL COST 159.30 158,300

SWOT Analysis
Strengths
1. We have acquired our own factory considerably near the Gazi Tank’ factory in
Narayanganj, which is highly suitable for our business.
2. We have a strong focused management staff with high expertise, skills, efficiency and
educational background.
3. We have our own transports for distribution and official use, allowing us reduce
unnecessary transportation cost and dependence on a third party.
Weakness
1. Unwillingness of people to change habits and accepting new and sustainable technology
can play the role of the main weakness of our business.
2. The constant price over the competitive market and the raise in price of water tanks due
to the installment of this new technology may hamper our business growth.
Opportunities
1. Since we are the one and only provider of this service in Bangladesh, our product will
face no competition and have a great potential to rule the whole market for a time being.
2. As our business product possesses a green marketing advantage, there is a huge chance
of rapid growth in the industry.
3. Our technology is used in water tanks, the one most vital and irreplaceable object in
every building. So the more the number of buildings, the more the number of water
tanks and the more opportunity we get to market our technology.
Threats
1. Economic slowdown may have a great impact on the reduction of our product demand.
2. Successful business venture invites more competition. So we will face potential new
competitors in near future and will certainly have to set a high competitive advantage.

Industry and Market analysis
Industry
We will be operating in the Water Tank industry of the country. It is a very much competitive
industry with lots of customers and a number of producers.
We will introduce a completely new line of product, a new technology, an innovation in the
traditional water tanks available in the market. Thus we will attract new customers not only for
the technology being new but also for its being ecofriendly as it eliminates water and power
wastage.
Market Analysis
If we look at the demographics, we will find that every building owner/land lord inside Dhaka
city has a minimum of one water tank installed in his/her building. So we are targeting the
middle class and the higher class people who have the capacity and need of purchasing their
own water tank or already own one.
Our marketing will be conducted both as Business (B2B) product and Consumer (B2C) product.
Gazi Tank of Gazi Group has signed a deal with us for directly purchasing our product and
using it in their future production line for resale, as a Business (B2B) product. We have also
received offers from couple of more lead water tank producers in our country willing to use
our technology in their future productions.
On the contrary, as our goal is to convert all the traditional water tanks in our country into
Smart Water Tanks by 2023, we will also market our technology directly to the consumers as
a Consumer (B2C) product.
We will attract our new customers through promotions and advertisements of our product. As
our product is ecofriendly and provides environment sustainability, customers will be
encouraged to avail our product.
Every apartment building needs water tanks, the mother product of our technology. Below
represented is the market size and the uptrend in number of apartments in Dhaka city:

Future competition
We have completed all the formalities and now hold the patent of our technology for the term
of 10 years from 1st April, 2015 under the Patents and Designs Act, 1911.
This means, any organization who wants to market our technology within 10 years from today,
needs to come under our terms before hovering in the market.
Marketing Strategies
Primarily, we intend to advertise our products using the co-marketing strategy along with Gazi
Group. Gazi Group and I6 Inc. will jointly hold campaigns that will promote “SAVE WATER”
along with our products.
Other than co-marketing with Gazi Group, we will launch our own marketing campaign by
taking the following measures:
 We will market our products through social media and internet advertisement.
 We will have a well-developed website, official pages in the popular social-media
platforms like facebook, twitter, google+, etc., all enriched with necessary information
about our products and services as well as our company and its goals and visions.
 We will regularly maintain a social media advertisement policy but as well as continue
to hold campaigns for social purpose and raise awareness to stop water wastage through
adopting new technology.
 We will deliver and install our technology without any cost.
 We will have a 24/7 helpline always open to answer to the queries of our existing and
future customers. Any complain about our technology will be dealt within 24 hours of
receiving.
 Another unique form of our marketing policy will be 3 months free testing for the
customers who already own a traditional water tank.
 Other than these, we will follow the traditional form of marketing through advertising
in newspapers and television commercials.
 As an implementation of converting all the traditional water tanks in our country into
Smart Water Tanks by 2023, we will firstly go door-to-door to the building owners or
land lords of Gulshan, Banani and Dhanmondi inside Dhaka and raise awareness about
reducing wastage of water and motivate to use our technology as an aid to stop water
wastage.
Pricing and Distribution
Our pricing strategy is absorption pricing in which all costs are recovered. The price of the
product includes the variable costs of each item plus a proportionate amount of the fixed costs.
Our total startup cost is BDT. 15,375.30 (in thousand tk) and as we do not have any competitor
in the business market, we set the prices of our products accordingly.
Our business will go for direct selling because we have access to the customer and keep all
revenue under the control of the company. We will have our pick up van through which we
will get our product to the consumer.

Operations
Our factory is located a couple of blocks beside the factory of Gazi Tank at Narayanganj and
our office is on the 2nd
floor of the office building of Gazi Tank at Purana Paltan. As we are
starting mostly as a Business-to-business (B2B), we have located our factory and office both
to the nearest possible location to our largest customer, our business partner Gazi Tank so that
we can communicate with them easily, quickly and supply our goods with maximum comfort
and minimum time as well as cost.
As we are working to achieve a very high goal within 2023, we have bought a factory in
Narayanganj and renovated it as per requirement of our operations.
For production we will need soldering iron, soldering flux, screws, screw drivers, testers,
voltage meters, computers, etc. We will start off with 2 motor-vans for distributing our products.
We will also require generators, refrigerators, air-conditions, etc. as supplementary equipment.
For official transportation we will need 2 microbuses initially.
We will collect our raw materials from local electronic parts and hardware wholesalers in the
Narayanganj industrial area.
Finance & Funding
Financial requirements
We, the six entrepreneurs of I6 Inc., have supplied the star-up capital 30 million to meet the
start-up expenses and the initial operating capital. Our startup cost is given below in the table:
Start-Up Expenses
Item Name Price in taka
Business Licenses 10,000
Factory 12,000,000
Office(Rent) 150,000
Equipment/Machinery Required:
Soldering Iron 18,900
Work Table & Bench 32,000
Delivery Van 1,400,000
Others 2,500
Insurance 120,500
Office Interior:
Cubicle 270,000
Furniture 189,000
Cabinet 40,000
Computer and printer 744,000
Patent 500,000
Supplies 10,000
Pre-Opening Advertising 200,000
Opening Inventory 19,116,000
Startup utilities 15,000
Employee training 15,000.00
Total Startup Expenses 34,832,900
We have also calculated our operating cost approximately Tk-1,769,000 per month.

Projected Financial Statements
Projected cash-flow statement for I6 Incorporation from 2015-2017
2015 2016 2017
Item
no.
Items
Amount in
Taka
Amount in
Taka
Amount in
Taka
(1)
Cash on Hand/Capital
(Beginning) 14,624,800
(2) Cash Receipts 30,000,000 33,000,000 25,500,000
a. Cash Sales 18,000,000 14,400,000 15,300,000
b. Collections from credit sales 12,000,000 9,600,000 10,200,000
c. Loans/Other Cash Inflow 9,000,000
d. Other Cash Inflows (if any)
(3) Total Cash Receipts 44,624,800 33,000,000 25,500,000
(4) Cash Paid Out 26,286,600 31,531,920 21,837,760
a. Purchases (merchandise/inventory) 19,116,000 15,292,800 16,248,600
b. Office 9,000,000
c. Insurance 120,500 120,500 120,500
d. Wages 3,443,100 3,443,100 3,443,100
e. Taxes 343,520 893,560
f. Office Supplies 12,000 12,000 12,000
g. Repairs & Maintenance 9,000 9,000 9,000
h. Office Premises Rent 1,800,000 1,800,000 0
i. Advertising Cost 1,600,000 1,400,000 1,000,000
j. Transport Cost 36,000 36,000 36,000
k. Web hosting and domains 150,000 75,000 75,000
(5) Ending Cash Balance 18,338,200 1,468,080 3,662,240

2015
Category July August September October November December January February March April May June Total
Pricing
WALI 250 250 250 250 250 250 250 250 250 250 250 250 2,750
Units
WALI 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000
Sales
WALI 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 30,000,000
2016
Pricing
WALI 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Units
WALI 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 96,000
Sales
WALI 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 24,000,000
2017
Pricing
WALI 250 250 250 250 250 250 250 250 250 250 250 250 3,000
Units
WALI 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 102,000
Sales
WALI 2,125,000 2,125,000 2,125,000 2,125,000 2,125,000 2,125,000 2,125,000 2,125,000 2,125,000 2,125,000 2,125,000 2,125,000 25,500,000
Projected Sales forecast from 2015 to 2017

Profit and Loss forecast from 2015-2017
Amount in BDT 2015 2016 2017
Revenue
Sales Revenue 30,000,000 24,000,000 25,500,000
Total Revenue 30,000,000 24,000,000 25,500,000
Expenses
Cost of goods sold 19,116,000 15,196,800 16,146,600
Purchases 19,116,000 15,292,800 16,248,600
Marketing Costs 1,600,000 1,400,000 1,000,000
Camping 1,000,000 1,000,000 600,000
Advertising 200,000
TVC 400,000 400,000 400,000
Overhead Expenses 1,990,000 1,990,000 190,000
Rent 1,800,000 1,800,000
Electricity 120,000 120,000 120,000
Water 60,000 60,000 60,000
Other utilities 10,000 10,000 10,000
Employee costs 3,443,100 3,443,100 3,443,100
Salaries & Wages 2,994,000 2,994,000 2,994,000
Employee Benefits 449,100 449,100 449,100
Other Expenses 7,294,080 252,500 252,500
Web Hosting and
domains 150,000 75,000 75,000
Office Supplies 12,000 12,000 12,000
Repair & Maintenance 9,000 9,000 9,000
Shipping 36,000 36,000 36,000
Insurance 120,500 120,500 120,500
Amortization of Start-up
cost 6,966,580 6,966,580 6,966,580
Total Expenses 33,443,180 22,282,400 21,032,200
Net Profit(Loss) Before Taxes (3,443,180) 1,717,600 4,467,800
Income Tax 343,520 893,560
Net Profit(Loss) (3,443,180) 1,374,080 3,574,240

Breakeven Analysis
Breakeven point (units) = 158,088
Breakeven point (sales) = BDT 39,245,500 Sales
(20,000,000.00)
(10,000,000.00)
0.00
10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
70,000,000.00
BDT
SALES VOLUME (UNITS)
BREAKEVEN ANALYSIS CHART
FIXED COSTS PER PERIOD TOTAL COSTS TOTAL SALES EARNING NET PROFIT (LOSS)

Taxation
Our Govt. has set a flat tax rate of 20% for all kind of corporate business. So, naturally we have
fallen under the flat tax rate as there is no tax bracket.
Also, not for being an import oriented corporation we are no eligible for getting any kind of tax
benefits as well.

BUS101 Group Report on Business Plan- WALI

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