BUSINESS PLAN FOR 30 TONS PER DAY SESAME SEED PLANT

1. 30 TONS
May 1
PER DAY
SESAME
SEEDS 2005
PROJECT
THIS PROJECT WRITTEN BY SOTONYE ANGA IS TO SET UP A 30
SESAME
TONS PER DAY SESAME SEED CLEANING PLANT IN LAGOS. THE SEED
PLANT WILL RECEIVE RAW SESAME SEEDS, CLEAN AND PACK SAME
TO EXPORT MEET EXPORT STANDARD.
BUSINESS
PLAN

2. EXECUTIVE SUMMARY
The project idea is to establish an ultra modern sesame seed cleaning factory
in Lagos State. The facility will clean 30 tons per day of sesame seed.
Raw sesame seed will be supplied to the factory from various sesame seed
producing states of Nigeria.
The biggest problem with Nigerian sesame seed is that due to inadequate
cleaning facilities in the country, over 40% of our annual production of
sesame seed is cleaned manually and exported. This situation had really
devalued the price of Nigerian sesame seed by over 20% of the International
price.
However, our facility will be able to clean sesame seed to purity of 99% and
as such put us at an advantage and enable us get better price and improve
the quality position of Nigerian sesame seed.
Through this project, we shall be able to provide about 200 jobs both directly
and indirectly.
The project shall move from a modest annual turnover of N112, 500,000.00 in
the first year to N1, 000,000,000.00 in five years.
It will also earn foreign exchange for the nation and provide market for
sesame seed farmers in Nigeria.
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3. Table of Contents page
Executive Summary 1
About the Company: 3
Proposed name 3
Company location 3
Core business 3
Ownership 3
Vision 3
Mission 3
Objective 3
Values 4
Strategies 4
Goals 4
Revenue Source 5
Strength 5
Weakness 5
Opportunity 5
Threat 6
History of sesame seed 6
Uses 6
Consuming countries 6
Season for sesame seed 7
Producing states 7
Nigeria annual production 7
Financial Analysis/outlay 8
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4. ABOUT THE COMPANY
PROPOSED NAMES- (1) ANGA & DULAH NIG. LTD.
(2) SESAMO INTERNATIONAL LTD.
(3) SECOM INTERNATIONAL LTD
(4) SESECOM LIMITED
(5) Any other name that will be acceptable.
COMPANY LOCATION – LAGOS with warehouse capacity to handle 30,000
(50Kg) bags of exportable sesame seeds.
COMPANY BUSINESS
1. Engaged in buying raw sesame seed.
2. Processing sesame seed to 99% purity, bagged in 50Kg polypropylene
sacks.
3. Export to Turkey, Japan, India, Israel, Egypt, France, China, and
United States of America.
4. Agro commodity trading.
CORE BUSINESS
SESAME SEED Trading
SESAME SEED processing into oil and other value added forms.
OWNERSHIP – To be decided by financier and other stakeholders.
VISION
To become the foremost sesame seed processor and exporter in Nigeria.
MISSION
To buy and process sesame seed into various high quality and value added
products that will be traded globally to satisfy customer needs.
OBECTIVES
To capture 2% of Nigeria’s sesame seed business in our first year of
operation (1,500 tons).
To control 15% of sesame seed business in Nigeria by our fifth year of
operation.
Achieve regular profits and good returns on investment.
Ensure that our work force is well motivated and remunerated.
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5. VALUES
Professionalism
Customer friendly
Integrity
STRATEGIES
Rent a warehouse with capacity to contain 1,000 tons of sesame seed to
ensure our products are well kept.
Acquire 30 tons per day sesame seed cleaning plant to start with.
Engage in aggressive International marketing to ensure that we sign
contracts to supply our sesame seeds to major buyers and end users
overseas even before we commence production.
Deploy aggressive product sourcing mechanism to ensure that we get
regular and consistent supply of sesame seeds.
Company’s internally generated revenue will fund future growth.
Encourage and effectively utilize suppliers’ credit to grow our business.
Acquire additional cleaning machine by the 2nd year.
By the 3rd year, we expand our operation to include producing sesame
oil, haul sesame seed and other value added products to serve our high
end customers.
GOALS
Incorporate Company comes June 2006
To achieve sales of one billion (N1, 000,000,000.00) naira
representing 15% of the sesame business in five (5) years (2006-
2011).
Start by capturing 2% of the sesame business in Nigeria worth
about N112, 500,500.00 in 2006/2007.
Rent warehouse space in Lagos (close to port) with capacity for
handling 1,000 tons of sesame sees by June 2006.
Acquire 30 tons per day sesame seed cleaning machine that will be
installed in the warehouse by July 2006.
Arrange and sign contract (export & local) for 1,500 tons of sesame
seed under very flexible terms that allows for price review and
delivery July 2006.
Arrange 20 main up country suppliers of sesame seed July 2006.
Hire additional cleaning facility to help our operations September
2006.
Hire a 50 man labour gang to be on standby for loading and off
loading July 2006.
Test run and commence sesame cleaning in our Lagos facility
August 2006.
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6. Commence production of sesame oil, hulled sesame seed, and other
value added products by the 3rd year (2008).
Raise 13 million (N13, 000,000.00) naira as start up capital May
/June 2006.
Arrange refinance facility of fifty million (N50, 000,000.00) naira
revolving ready for draw down by August 2006.
PROJECT REVENUE SOURCES
With this project, we shall generate revenue from the following sources:
1. SESAME SEED EXPORT/Trading
2. SESAME SEED cleaning/processing
3. Warehousing
4. Export of other Agro commodities.
STRENGTH
The writer of this business proposal (Mr ANGA) has 14 years of
experience in commodity trading and export and he is ready to
work for the actualization of this vision.
That within this period, Mr. ANGA has had adequate contracts
(suppliers & International buyers) that will fast tract the growth
and success of this enterprise.
With initial capital of thirteen million (13,000,000.00) naira and
back up fifty million (N50, 000,000.00) naira refinancing capital, we
shall be able to achieve our objectives.
Our sesame seed cleaning machine will give us same advantage and
credibility with which to do business and achieve our 2% market
share.
WEAKNESS
Lack of funding
Infrastructure not in place.
OPPORTUNITIES
Global consumption of sesame seed is put at about 3,000,000 tons which is
yet to be met.
Current demand for Nigerian sesame seed is very high considering the
increase of fast food outlets and consumer preference for sesame seed
derivatives.
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7. The season in Nigeria commences in August at what time price is usually
low. Meanwhile, current export price is $800 per ton C&F which is
relatively very high.
THREATS
Olam currently the biggest buyer of sesame seed in Nigeria intends
to increase its market dominance.
New buyers may emerge to take advantage of the lucrative nature
of the Nigerian sesame business.
Other Nigerian exporters may decide to increase their volume of
transaction.
HISTORYOF SESAME SEEDS
Sesame seed is one of the oldest seeds known to mankind. Sesame seed may
have originated from Asia or Africa and is now grown in most of the tropical
and temperate regions of the world.
As far back as 5,000 years ago, the Chinese were using sesame seed oil for
fuel and for making ink.
Also, paintings in ancient Egyptian tombs dating back to 4,000 years show
Bakers sprinkling sesame seeds into dough.
The Roman Empire is not left out in the use of this ancient seed as sesame
was used as spreading for bread amongst other things.
USES
Sesame seed has very high oil content of about 50-53%. It is used in making
edible vegetable oil (sesame oil).
Sesame seed is also used in many food preparations worldwide.
Due to its unique nutty flavor, crunchy sensation and small size, it has
become a very important ingredient in making hamburgers as toppings on
hamburgers buns.
Sesame seed also go well with chicken and other meats; it can also be
sprinkled over biscuits, bread rolls, and pizza.
GLOBAL PRODUCTION
World production of sesame seed is estimated at 2,500,000 tones of which
about 50% is consumed in the producing countries.
However, this trend of consumption is not same in Nigeria in that almost all
of Nigeria’s 75,000 annual productions are exported.
CONSUMING COUNTRIES
Japan, Turkey, United States, India, Israel, Kuwait, Syria, Saudi Arabia,
China, Egypt, Morocco, Poland, Italy, France and Iran.
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8. SEASON
In Nigeria from August the season for sesame seed begins.
PRODUCING STATES
Benue, Taraba, Kaduna, Nasarawa, Plateau, Kano, Jigawa, Zamfara,
Katsina, Borno and Adamawa states etc.
NIGERIA PRODUCTION
Nigeria produces about 75,000 tones of sesame seeds annually worth over
seven billion (N7, 000,000,000.00) naira.
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