Bamboo Processing factory Under One District One Factory @Atwima-Boaso

Business Plan

Bamboo Processing Factory

@ Atwima Boaso

CEO. Nana Kofi Bimpong II

(Chief of Atwima Boaso)
Atwima Boaso Palace
Boaso via Abuakwa Ashanti
Atwima Nwabiagya Municipal
Ghana
GPS Code:- AH-0755-03566 (Palace)
GPS Code:- AH-0826-3338 (Factory)

0209780905, 0243863197
0242016107, 0570712271
0503590228, 0244991291,
Email: - [email protected]

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Bamboo Processing factory Under One District One Factory @Atwima-Boaso

Gyankama Enterprise
(Bamboo Processing Factory)
@Atwima Boaso
0209780905, 0573154375, 0243863197,
0242016107, 0570712271,
[email protected]
Our Products
Mosquito repellent Coil, Skewer-sticks,
Toothpicks, Cotton-bud, Dinner Bowls,
Toothpaste, Healthy-Tea, Alcohol and Scented-
Incense

Local Raw Materials

Bamboo, Cassava Starch,
Corn Starch, Cotton and Plant Herbs
Imported Raw Materials
Melamine, Chemicals and Scented Oil

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Our Products
Bamboo Processing factory Under One District One Factory @Atwima-Boaso

Our Products

Air Fresher / Activated Carbon

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Our Products

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 Bamboo Processing factory Under One District One Factory @Atwima-Boaso

Our Products

Skewer Sticks

Bamboo Spoon

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 Bamboo Processing factory Under One District One Factory @Atwima-Boaso

Our Products

Cotton Bud / Ear Bud

Bamboo Healthy Tea (Nails & Hair growth)

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Contents

Introduction……………………………………..………………….9 – 11

Products and Services and Management…………..….….………12 –16

Marketing and Finance ………..…………...………...…........…17 – 26

Risk Management, Sustainability and Technology ……......….27 – 41

Factory Site Ongoing Preparation…………………..…..…......42-- 46

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Introduction

The bamboo industry is recognized globally for its potential to simultaneously tackle poverty and climate
change while offering an excellent business opportunity to communities to build a long term economic
opportunity that reduces poverty in promoting bamboo business and forest management. The Atwima
Nwabioagya Municipal lands are full of bamboo, whiles other surrounding district have in abundance
bamboos which are not use for any economic purpose.

The present introduction of government one district one factory policy have created an opportunity to
invest in the bamboo processing industry in Atwima-Boaso of Atwima Nwabiagya Municipal in Ashanti
region.
Nana Kofi Bimpong II, chief of Atwima-Boaso, an expert in bamboo processing for over seven years
realizing the benefits to be drive from the ideal economic resource and the growing unemployment rate in
the district decided to go into the processing of the bamboo.

The purpose of this bamboo business in the Ashanti region is that, about 25% of our land are occupy by
bamboos, which only 2% of the bamboo stems are used for faming activities, another 10% are used by
local producers of barbecue sticks and estate developers, almost 60% of bamboos are destroy every year by
land users to be able to carry on their activities, but the bamboo prone-up and mature within six to
12months. Traditionally the communities think that bamboos are enemies of their lands, since they have try
in many years to destroy and eradicate from their lands not recognizing the economic benefits. Technology
and research shows that bamboo is an essential commodity and second-gold for Ashanti region. With
tailored information on bamboo as an investment prospect in Ashanti region, Nana Kofi Bimpong II, Ceo
of Gyankama enterprise has researched the bamboo products market, product diversification,
manufacturing process and financial analysis including expected returns from a bamboo processing
investment project.

The bamboo processing business is one of the income businesses any entrepreneur that is focused can go
into. It is a business where many unemployed youth could be engaged to reduce the growing rate of
unemployment in the country. The sales of bamboo by-products in commercial market started in the 1890s
in Asia and have since seen a tremendous growth in its use as well as contributing to the economy of those
countries

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Business Overview

The bamboo products market has several segments, of which four major segments are bamboo fabrics,
bamboo paper, bamboo powder and bamboo sticks (skewer-barbecue sticks /chopsticks, toothpicks,
cotton bud). Most common daily use by-products of bamboo are bamboo sticks, bamboo sanitary pad /
Diapers, laser paper, tissue paper, smokeless mosquito coil, scented incense and bamboo powder for
active cosmetology product are recently fast growing at markets globally.

Basically, the priority of our factory is to produce Bamboo Incense, Bamboo Mosquito Repellent Coil
and Bamboo Sticks (skewer-barbecue sticks /chopsticks, toothpicks and cotton bud). There is a huge
market for the bamboo processing business both here in Ghana and all over Africa The use of bamboo
product mostly Barbecue skewer sticks, fruit sticks, chopsticks, cotton bud, toothpicks, incenses and
mosquito coil are in higher demand, this makes starting the bamboo processing business lucrative.

The market potential for bamboo products is such that it can be sold locally or exported in order to earn
foreign exchange. According to analysis, the market for bamboo products is not only sustainable but
expanding as well; this is because bamboo products are used in homes, hospitality business and public
gatherings.

.The demand for bamboo products are continually increasing daily due to the market demand has given
opportunity to importers, to imports different kinds of bamboo products from China, Malaysia, India and
Vietnam into Ghana market and almost West Africa countries.

China is the biggest producers of bamboo by-products, especially bamboo incense, smokeless mosquito
repellent coil, bamboo papers/tissues, bamboo sticks (skewer-barbecue sticks /chopsticks, toothpicks,
cotton bud) etc. Fifty percent of productions are sold at domestic market and 50% for exported. According
to 2010 Comtrade statistics, China’s export of bamboo chopsticks and other bamboo sticks reached US$1-
billion. The major importers of Chinese chopsticks are Japan and South Korea. African countries are sixth
importers of other bamboo sticks.

Comtrade (2016) stated that Ghana depends on other countries for bamboo process sticks and other bamboo
products at the cost of $19 million dollars (which is 100 million new Ghana cedis) per annum. Now, with
this information, let us infer the cost of utilized bamboo sticks is deduced from the cost of importation into
the country. This implies that Ghana spends about $50,000 (approximately GHS 250,000) daily on bamboo
process products.
The bamboo industry is one that survived the economic downturn better than other manufacturing
industries because products made from bamboo are regarded us necessity and therefore will boost more
revenue for the country with its effects of helping stabilize our currency.
The industry is a capital intensive one because it relies heavily on machinery, with efficient machines being
constantly worked on so that the whole manufacturing process can become better to make more money for
the factory.

The demand for bamboo products both in Ghana and nearby West Africa countries remained stable for
more than 20 years, with the market growing positively annually. This has been of a great advantage for
Incense’s, Mosquito coil and bamboo sticks (skewer-barbecue sticks /chopsticks, toothpicks, cotton bud)
importers whose revenue has increased steadily as the year progresses.

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Executive Summary

Gyankama Enterprise is a registered sole-proprietorship business that is located at Atwima Boaso in

Atwima Nwabiagya Municipal of Ashanti region to cater for domestic and international clients. We are into
bamboo processing business and will deal in the production of Barbecue skewer sticks, fruit sticks,
chopsticks, cotton bud, toothpicks, incenses and mosquito coil for our home consumers, wholesalers and
exporters.

Having effectively studied this market, we are confident that our laid down strategies will enable us to be
able to compete favorably with importers of our products and existing manufacturing companies in the
country and even around West Africa. Asides processing bamboo by- products for sale, we intend to offer
other services that will give us an edge over our competitors and attract customers to us.

Our goal is to be the top brand in Ghana, and amongst the top three in the Africa. This we will do by not
only offering the best services but also getting the best equipment.

Barbecue skewer sticks, fruit sticks, chopsticks, cotton bud, toothpicks, incenses and mosquito coil are
regarded as an essential commodity as every household maybe use of it and cannot plummet even during a
recession especially as there are no close alternatives in the market for consumers to switch to. In order to
have repeat customers, we intend to ensure high quality.

Knowing the important of human resources in any business, we intend to get the best by not only hiring
those who would be the best fit for the various roles but also those who we know will be able to project our
visions positively internally and externally. We also intend to invest massively in the welfare of our
employees so that their productivity rate will results in a healthy growth of the business.

Our location will be easily accessible not only for our employees but also for our distributors and suppliers
as well. This is to ensure that production and distribution goes on efficiently. Also, we intend to ensure our
facilities are very conducive so that employees do not have issues carrying out their tasks effectively.

Gyankama Enterprise intends to constantly upgrading our machinery and providing continuous training to
ensure that our staffs get updated on new technologies and innovations for processing bamboos to varities
of consumable products such as bamboo toilet roll, Bamboo baby diapers, Bamboo sanitary pad and laser
paper in near future.

We intend to provide excellent customer service to all our customers so as to keep having repeat businesses
with them. We would ensure that we listen closely to their complaints and respond accordigly manner. We
would also listen to suggestions and tips that would move our business forward. We would also keep in
touch with our customers and ensure that we keep them informed of new services and products from our
stable.

Gyankama Enterprise is owned and run by Nana Kofi Bimpong II, chief of Atwima-Boaso, an
entrepreneur, electrical, electronics, mechanical engineer and IT expert. Has worked with Chinese
international consultants and bamboo experts in bamboo industry for seven years and will bring his vast
experience to bear in this business.

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Products Services
And
Management

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Our Products and Services

Gyankama Enterprise is bamboo processing business that is fully registered to operate as a profit making
business here in Ghana. Our aim is not to only generate revenue, maximize profit and create employment,
but we also intend to offer additional products and services to our core service so as to sustain our bottom
line and grow our business.

The products and services that we therefore intend to make available to our various customers are;

• Bamboo Sticks (skewer-barbecue sticks /chopsticks, toothpicks, cotton bud)

• Bamboo Smokeless Mosquito Coils and Smokeless Scented Incense
• Bamboo Dinnerware’s
• Bamboo Toothpaste/Oral Powder
• Bamboo Tea for Hair and Nails grow
• Consultancy and Machinery services
• Training

Our Vision Statement

Our vision is to become the preferred bamboo processing enterprise for all our customers not only here in
Ghana but all over Africa as well. We intend for our product to be amongst the top three brands in the
Africa market by the year 2022.

Our Mission Statement

We are building our business structure constantly in order to ensure that, bamboos which are constantly
destroy are put to economic use

Our Business Structure

Due to our intention to build a standard bamboo processing business here in Atwima Nwabiagya Municipal
– Ashanti, we have decided to take a critical look at how we build our business structure. By building a
solid business structure, our intention is that our business can smoothly start off and be run with as less
hitches as possible. This is why we are going to ensure that we go the extra mile in picking the right
employees to handle the various positions and the roles that would come with it.

Our Chief Executive Officer, Nana Kofi Bimpong II has carefully sourced for and hired those that would
make up the management team, this is because he believes that with the right people in managerial
positions, it would be easier for policies to be implemented and the goals and objectives of the organization
achieved.

However, due to the fact that we will not be running a conventional bamboo processing business because of
the several other by-products in bamboo and services that we would be engaged in, we would be hiring
more employees than necessary to fill in all the various positions and handle the roles and responsibilities
that these positions would throw up.
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Therefore, the business structures that we would build at Gyankama Enterprise are us follows;

• Chief Executive Officer

• Human Resources and Admin Manager
• Production Manager
• Machine Operators
• Store Manager
• Accountant/Cashier
• Marketing and Sales Team
• Front Desk Officer
• Cleaners
• Drivers

Roles and Responsibilities

Chief Executive Officer

• In charge of making the overall policies and strategies that would have a holistic effect on the
organization.
• Hires, disciplines, delegates tasks and rewards individuals in the management team.
• Evaluates the success of the organization and remove or modify ineffective policies.

Human Resources and Admin Manager

• In charge of placing adverts, hiring required human capital for the business.
• Conducts orientation for newly employees and performance appraisals for existing employees.
• Ensures that the administrative functions of the organization are smoothly performed.

Production Manager

• Is in charge of all the produced products by the factory.

• Ensures that all staff on the production floor strictly adheres to factory policies and guidelines.
• Ensures that workers give optimum performance and punishes erring workers on behalf of the
organization.
• Ensuring of staffs safety.

Machine Operators

• In charge of the machinery used for production and ensures that checks are carried out before
production.
• Carries out preventive repairs and maintenance on machineries.
• Ensures that the machines bought by the organization are genuine.

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Store Manager

• In charge of all produced bamboo products in the store.

• Monitors all incoming and outgoing inventory and records them for official purposes.
• Ensures that the store is clean, secured at all times and well ventilated.

Accountant/Cashier

• Prepares all the financial reports, information and statements on behalf of the business.
• Prepares the overall budget and makes sure that it is duly implemented by the organization
• Monitors cash inflow and outflow and ensures that every cedis is accounted for
• Making statutory deductions and payment to government.

Marketing and Sales Team

• Conducts market research in order to discover new target markets for the organization.
• Drafts effective marketing and sales strategies to generate more revenue on behalf of the
organization.
• Meets and negotiates with high level clients on behalf of the organization.

Front Desk Officer

• Responds to inquiries and orders via phone, internet and via physical appearance on behalf of the
organization.
• Remains updated about organizational policies as well as industry trends in order to give clients
accurate information at all times.
• Keeps an updated and accurate customer database on behalf of the organization.

Cleaner

• Cleans the factory before the start of administrative work and production every morning.
• Ensures that the convenience is kept clean for staff and customers.
• Carries out any other duties as specified by the human resources and admin manager.

Driver

• Ensures that ordered bamboo products are duly delivered to the right destination.
• Supervises the loading and offloading of goods from the truck and helps out too.
• Performs other official duties on behalf of the organization.

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SWOT Analysis

Having a SWOT analysis is very important as this would help us know what our chances of succeeding in
this market and how well we can improve on our weakness while eliminating totally or reducing threats to
the barest minimum. In carrying out a thorough SWOT analysis, we hired a reputable business consultant
who has several years of experience in helping start-ups with carrying out this analysis.

The aim of the SWOT has also helped us determine if this is a business that we should pursue or not. We
are glad to say our strengths and opportunities were in high percentages and that the threats posed to our
business is few and our weaknesses will be worked on.

Here is what the SWOT analysis carried out by an expert on behalf of Gyankama Enterprise specifies,

• Strengths

The fact that we are offering other products and services in addition to our core service is a plus for us in
this business. We also have employed professional and capable employees who thoroughly understand the
business and are dedicated to help us run our bamboo processing business. Our location here in Ashanti
region is one that is very strategic and allows us to be close to raw materials. Finally, our Chief Executive
Officer, Nana Kofi Bimpong II is a renowned businessman and technologist with the necessary experience
that will allow us attain all our goals and objectives

We also have a Chief Executive Officer who does not only believe in having the right professionals in the
right positions but also has a robust and vast experience in the field that would ensure that the factory does
all the right things at the right time.

• Weakness:

The bamboo sticks market is one that already has many importers players in the field in Ghana and in the
West Africa as a whole. This has made it seem like the market is saturated as the entry requirements into
this market are low. However, we intend not to allow this deter us as we have strategies in place to ensure
we become a brand to be reckoned with.

• Opportunities:

There is however several opportunities from the fact that bamboo products are used daily, which shows the
market is there and all our raw materials available locally and less expensive. Since bamboo is harbor in
Ashanti region, we will not take this opportunity to relax but will grow more bamboo on river banks
through most part of the region to increase availability.

• Threats:

Every business is faced with threats but it is how they handle the threats that would determine how long
they would last in business. Therefore the threats that we are likely to face is from competitors already
established who would be offering the same services and who would have better policies with regards to
pricing and customer retention. Another threat that we anticipate is clients turning to importers and
unfavorable government policies.
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Marketing

And

Finance

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Market Trends
The bamboo sticks, mosquito repellent coil and incense production business is one that attracts huge
demand thereby making it an interesting and lucrative business to start up. There is always profit to be
made in this business regardless of the size of the business. Bamboo products are daily used by homes and
commercial.
Also, the raw materials used for our production are easily accessible locally, which means there would be
no need for importation except the machinery.
Another trend is ensuring that we not only produce bamboo skewer-barbecue sticks /chopsticks, toothpicks,
cotton bud, mosquito’s repellent coil and incense but also other related hygienic products made from
bamboo such as scented paper towels, organic facial, hand wipes, tissue paper or toilet roll, sanitary-pad
and baby diapers; by near future products from bamboo.
Lastly, we intend to use technology as a means of marketing our products and also increasing its awareness
and sales as well.

Our Target Market

The use of our bamboo products is regarded as hygienic and with no close substitutes available and so our
target market is basically everyone in Ghana and West Africa countries as a whole. This is why part of our
expansion strategy is to have strategic locations in different region of the country where bamboos are
available for production.
Due to several authentic statistics and market researches, we know exactly who and where our target
markets are, and what they expect from us. We intend to engage in wholesalers and exporters to drive our
products to final users.

.Our Competitive Advantage

The bamboo sticks business might look like an easy one to start up but it truly a saturated market and this is
due to the fact that almost every entrepreneur with easy cash can venture into this business even without
having any technical knowledge of the business.
Since we intend to survive in the bamboo by-products business for a long time to come and also be the
leading brands in Ghana, we have drafted competitive advantage strategies that will ensure that our vision
and mission statement is achieved.
Everyone in Ghana knows that Ashanti, Western and Central region is bamboo hubs. The Ashanti region
area where our processing factory is located is strategically close to one of the biggest markets in Ghana,
which is Kumasi Central Market where almost six regions of the country trade here with three West Africa
countries namely Ivory Coast, Burkina-Faso and Niger. Our strategic location is not only going to get us a
large share of the market, but it is one edge that we have over our competitors.
We understand valuable customers are the growth of a business; we have put strict customer policies in
place to become a part of our employees’ attitude. This therefore means that all our customers are given the
highest care and attention which will retain over 85% of our customers. Our factory location is convenient
for our customers to get to and we will roll out incentives often in order to keep our customers happy.
We have assembled a team of professionals and highly capable individuals to handle the affairs of our
business. Our management team for instance is filled with individuals who have experience regarding the
industry. Our management team also understands how best to help build our business from the start-up to
the national phenomenon we intend to become,
Finally, knowing how important it is for our employees to remain motivated, we are paying our employees
better salaries and wages than what they are likely to get from our competitors. We also have other welfare
packages in place that will ensure that they remain committed and dedicated to our vision and objectives.
We also have ensured that our facility is environmentally conducive for all our employees.
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Marketing Strategy and Sales Strategy

Marketing is a process where the needs of intending and existing customers are anticipated, identified and
met. This one is serious aspect of a business that requires a thorough evaluation because is the revenue
generating aspect of the business, that enables the business grow and be sustain.

Market research would be conducted regularly to understand the market which we would be going into in
order to draft effective strategies for our business. The market research will not only allow us understand
our target market and their characteristics, it will also allow us position our business well in order to
penetrate and get a large share of the market.

Because of how important marketing is, we will engage reputable marketing executives with a good
understanding of Fast Moving Consumer Goods (FMCG) to help develop strategies that would position
business becoming the top leading brand as well as win a large percentage of the available market not only
in Ghana but in the West Africa countries as a whole.

We would also empower our marketing team to ensure that the marketing strategies are in line with our
corporate sales goals and objectives. Our marketing team will also be empowered to appraise marketing
strategies and deploy conventional and unconventional modes of marketing our bamboo products.

The following are therefore the marketing and sales strategies that we intend to adopt in ensuring that
awareness for our products reach the target market;

• Ensure that we introduce our business to wholesalers, exporters as well as other stakeholders in the
industry.
• Throw a huge party when launching our business that will generate the much needed awareness
about our business. Embark on business and product launching.
• Placing adverts in local and national newspapers as well as the use of radio and television.
• Use our social media platform such as Face book or Twitter to vigorously market our bamboo
products business.
• Install billboards in strategic locations all around in order to increase awareness about our business.
• Empower our marketing and sales team to engage in direct marketing in order to generate revenue
that will sustain our bamboo processing business

Export Market

There is a healthy external market in Nigeria, Burkina-Faso, Niger, Mali, Benin, Ivory Coast, Liberia,
Gambia and Mauritania etc for barbecue sticks, Cotton buds, chopstick, toothpick, mosquito coil and
scented incense huge demand growing while supply is limit; therefore we forecast to export our products in
the coming years.

Since Ghana have bamboos in abundance and the cost of labor and doing business here is low, it is
possible to price bamboo products very competitively against international markets. Furthermore, at the
start of operations, it may be necessary to price the new product competitively to attract interest from
international and domestic buyers. Therefore, for the purposes of this analysis a conservative price estimate
at moderate per oor finished products has been assumed for export to West Africa countries.
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Our Pricing Strategy

Bamboo products are regarded as essential commodities and will always be purchased no matter what. This
means that pricing for most of bamboo products across board are cheap and affordable for bamboo
products generally. However, traditional kebab sticks are regarded as man-power and so their pricing are
usually higher than kebab sticks from factory. Deciding on a pricing policy will depend on type of bamboo
products we intend to produce for our different clients.

Our pricing module will however not be too different from that of our competitors, in the first six months
of operations, we will offer our products at a little less price than that of our competitors; we might
however raise the prices a bit after our brand has become well known. We would never offer prices that are
below our cost of production as well as overheads as we intend to be in business for a long time.

Payment Options

Because we know how an easy payment option will keep more of our customers with us, at Gyankama
Enterprise, we have crafted a payment policy that will ensure our customers find it easy to pay. We also
have different payment options for various clients.

Our payment options below are available for most of our clients;

• Check payment via banks

• Cash payment via selected banks
• Payment via Point of Sale (POS) Machine
• Online bank transfers / Telex transfer
• Payment via credit cards and E-switch
• Mobile Money Payment

The banks that we have partnered with for this payment options are those that will ensure that customers
will have a smooth experience without hitches when making payments.

Income
Gyankama Enterprise just like any other business has been established to generate revenue, creates
employment and maximizes profit in the bamboo processing. We intend to do all it legally takes to ensure
that we not only generate revenue from our core service but from additional services as well, in order to
sustain and boost our bottom line and therefore grow our business.
Gyankama Enterprise intends therefore to generate income by offering the following products and services;

• Bamboo Mosquito Coil and Scented Incense

• Bamboo sticks (skewer-barbecue sticks /chopsticks, toothpicks, cotton bud, Spoons)
• Bamboo tea bag (Bamboo leaves/ginger tea, bamboo leaves/lemon tea, etc)
• Consultancy and advisory services and Technical Assistance

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Invested Funds
Gyankama Enterprise is a business owned by Nana Kofi Bimpong II, Chief of Atwima Boaso. I have
bought some few machines for the business and enough land has been allocated for this project. The areas
where I am generating my start-up capital are: gains from my personal business and stool lands/plots.

N.B: I have injected over Ghc 3,500,000:00 Three Million Five Hundred Thousand Ghana Cedis on
infrastructures and machinery.

From the analytical breakdown table below, Gyankama Enterprise may need a loan facility approximately
the sum of Three Million Ghana Cedis (GHC 3, 000,000) in order to re-start and successfully run a
standard scale bamboo processing business here in Atwima Boaso in the Atwima Nwabiagya Municipal of
the Ashanti region.
It should be noted that the loan amount will cater for the manufacturing and packaging machineries, as well
as factory facilities. Portion of the amount will be used as capital to procure raw materials for at least three
months, other operational costs.

Budgeted Expenditure
Starting a standard bamboo processing business are not easiest tasks, much capital have to be injected to
ensuring that hitches and glitches are reduced to the barest minimum. The bulk of this capital will go into
equipment and machinery purchase, infrastructures, utility bills and employee salaries at least up to a
certain period of time. Since bamboo processing is labor intensive and it need about 200- workers to 300-
workers to form production batches in 24hours per day.

Additional Capital and Operational Expenditure Projections.

Capital Cost in USD Base Cost in Local Description

Expenditure on CIF Tema-Gh Currency GHC.
Infrastructures GHC 500,000 Warehousing facility, factory yard, Drying
Room, offices and other necessary structures

Machinery $300,290 GHC 1,801,740 Processing, Packaging, Boiler, Carbonizer

etc. examples on page 34 - 46
@ Ghc 6.00
Other Operational GHC 500,000 Truck for convoying raw materials and van
Costs for other factory duties. Office Chairs,
computers and printers etc
Working Capital GHC 500,000 Operational cost at least one month,
Miscellaneous, sod-cutting, advertising etc

Total Cost in Ghana Cedis GHC Total cost of Additional Capital

3,301,740 expenditure

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Budgeted Machinery Production Capacity Per Day

Products Productions Per 24-Hours Market Demand Per Day National Deficits
Toothpicks 3.6million pcs 8million 4.4million
Cotton Bud 3.6million pcs 6million 2.4million
Fruit Sticks 2.4million pcs 5million 2.6million
Skewer 2.4million pcs 5million 2.6million
Sticks
Mosquito 450,000 pcs per Day 3million 2.55million
Coil
Scented 300,000 pcs per Day 3million 2.55million
Incense

1. A table of 5 products in production per day.

2. We plan to run machinery at 60% capacity daily for first year at 25-days in a month.
3. Production time shall be16-hours per day in two shifts for sticks production and 16-hours for full
mosquito and scented-Incense production.

Direct Employment Projection Table

Production Capacity 30% 60% 90%

First Factory Hands 55 95 130

Second Factory Hands 63 105 138

Other-Factory Hands 14 24 24

Total Number of Direct Employment Base

on Production Capacity 132 Workers 224 Workers 292 Workers

Projection Annul Salary For Workers Ghc 1,770,000 @ 60% production Capacity

.Cash Flow / Sales Forecast

Our confidence stems from the fact that we have critically evaluated this industry especially the production
and distribution line and our chances are strongly positive. The sales projection we have carried out is
based on information that was gathered on the field in ten-regions in Ghana. According to Asia export trade
report 2016:- stated that Ghana depends on other countries for bamboo sticks and bamboo mosquito
repellants incense at a cost of $19million US dollar.
But Gyankama Enterprise will reduce above import cost, once production starts.
Since there are no close substitutes to our Bamboo products or alternatives, the sale of these products have
come to stay and is even regarded as an essential commodity.
At Gyankama Enterprise, we are not only well positioned to take on the available market that exists in
Ghana, we are also quite confident that we will generate enough revenue in our first year of business to
cover all operational and overheads cost. The business will begin to pay itself and then invariably grow and
expand.

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Locally Raw Material Demand For Production

Factory Raw Material Consumptions Per Year
Production Capacity 30% 60% 90%
Units Tons/Kg Tons/Kg Tons/Kg

BAMBOO 900 Tons 1800 Tons 2700 Tons

(Toothpick, Skewer Sticks, Suppliers 70-Farmers Suppliers 140-Farmers Suppliers 210-Farmers
Mosquito Coil, Cotton Bud,
Scented Incense, Dinner-ware)

CASSAVA STARCH 50kg / 4800 Sacks 50kg / 9600 Sacks 50kg/ 14400 Sacks
(Mosquito Coil, Scented Suppliers 150- Suppliers 300-Farmers Suppliers 450-Farmers
Incense) Farmers

VIRGIN COTTON 50Kg / 480 Sacks 50Kg/ 960 Sacks 50Kg/ 1440 Sacks
(Cotton Bud) Suppliers 20-Farmers Suppliers 40- Farmers Suppliers 60- Farmers

PLANT HERBS 50Kg /2400 Sacks 50Kg /4800 Sacks 50Kg /7200 Sacks
(Mosquito Coil, Scented Suppliers 40- Suppliers 80-Farmers Suppliers 120- Farmers
Incense) Farmers

CORN STARCH / POTATO 50Kg /600 Sacks 50Kg /1200 Sacks 50Kg /1800 Sacks
STARCH Suppliers 20-Farmers Suppliers 40- Farmers Suppliers 60- Farmers
(Bamboo Dinner Bowls,
Cotton Bud, Scented Incense)

COCONUT HUSK 50kg / 4800 Sacks 50kg / 9600 Sacks 50kg/ 14400 Sacks
(Mosquito Coil and Scented 50- Street Suppliers 100- Street Suppliers 150- Street Suppliers
Incense)

WASTE PLASTIC 50Kg/ 1200 sacks 50Kg/ 2400 sacks 50Kg/ 3600 sacks
(Recycle for Packaging) 10- Street Suppliers 20- Street Suppliers 40- Street Suppliers

Projection Number of 360 Suppliers 720 Suppliers 1080 Suppliers

Suppliers or Farmers shall be engage shall be engage shall be engage
@30% production @60% production @90% production

Projection Average Ghc 4,368,000 @ 60% production Capacity

Annul Income For
Suppliers

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Registered Distributors
Countries Number of Wholesalers Product Remarks

Ghana 20 General Products Factory Brand and

Customization

Nigeria 6 Mosquito Coil Customization

Burkina 2 General Products Factory Brand and

Customization

Ivory Coast 1 General Products Factory Brand and

Customization

Sierra Leone 1 Mosquito Coil Customization

Togo 1 General Products Factory Brand and

Customization

Benin 2 Mosquito Coil Customization

Mali 1 General Products Factory Brand and

Customization

Gambia 1 General Products Factory Brand and

Customization

Guinea 1 General Products Factory Brand and

Customization

Liberia 1 General Products Customization

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Production and Revenue Projection Table

Production Per Month Per Year
Direct Cost 60% Daily ( 25 - Days ) ( 12 Months )
GHC GHC GHC
Bamboo 5,400 135,000 1,620,000
Starch 3,000 75,000 900,000
Chemical/ Herb 1,500 37,500 450,000
Scented Oils 4,000 100,000 1,200,000
Raw Cotton 600 15,000 180,000
Other Raw Material 4,060 101,500 1,218,000
Packaging Materials 10800 270,000 3,240,000

Total Monthly Direct Cost 734,000

Total Annul Direct Cost 8,808,000

Indirect Cost
Energy / Utilities 3,100 77,500 930,000
Labour / Salaries 5,900 147,500 1,770,000
Miscellaneous 3000 75,000 900,000

Total Monthly Indirect Cost 300,000

Total Annul Indirect Cost 3,600,000

Cash Revenue per Products

Products Packs per Unit Target Losses Actual Actual Actual

Day cost / Revenue per Revenue Revenue Revenue /
60%Wrk Pack per Day Day per Day Month Year
Capacity GHC GHC GHC GHC (25days) GHC
GHC
Toothpicks 12,000Packs 0.85 10,200 120 10,080 252,000 3,024,000
Cotton Bud 80,000 Packs 0.10 8,000 200 7,800 195,000 2,340,000
Skewer Sticks 13,200 Packs 0.80 10,560 100 10,460 261,500 3,138,000
Mosquito Coil 30,000 Packs 0.70 21,000 100 20,900 522,500 6,270,000
Scented- 20,000 Packs 0.50 10,000 100 9,900 247,500 2,970,000
Incense

Total Monthly Revenue 1,478,500

Total Annul Revenue 17,742,000

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Projections of Profitability Analysis

1. A profits projections Analysis table below.
2. Production capacity of 60% per day, 25-days per month and twelve months per year.
3. Production cost equals to direct cost and in-direct cost incurred for the production.
4. Depreciation (fixed asset write off) 6 years written off at 20% per annul for all fixed assets.

In Bamboo sticks processing business the saw-dust is the main profit for the business, since can sell to
cosmetology industrials or to make industrial Carbon or to make industrial fillers or paint thinker or used to
produces Dinnerware’s and smokeless burning products. We have position ourselves that, no piece of
bamboo within our processing yard goes waste. Since mosquito coil and scented incense are largely used in
Ghana and nearby countries for control of mosquitoes’, flies and environmental pollutions.

Item Monthly @ 60% 25 days 1st Year

Total Revenue GHC 1,478,500 GHC 17,742,000

Direct Cost GHC 734,000 GHC 8,808,000

In-Direct Cost GHC 300,000 GHC 3,600,000

Surplus Revenue Monthly GHC 444,500

Surplus Revenue Annul GHC 5,334,000
Annul Assets Depreciation (20%) 1,066,800

Profits Before Tax/ Loan / Interest GHC 4,267,200

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 we can clear all our debts
within two years.
However as time changes, the projections might be lower or higher since our budget
machinery can work twenty four hours per day and six days in a week.
If market demand drop down here, we can increase our production for export to external
distributors of our products or if market rises we can do more.
But, we state emphatically that our price will attract importers to turn onto as when the
factory starts production. Also our production will gradually cut down retail price, since our
price below fob price in china and also does not attract CIF and port duties.
Secondly, we will concurrent setup production-line for other products in this business plan
to increase revenue and distribution network.

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.Risk Management

.Sustainability

.Technology

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Risk management

Like any other investment project, there are numerous factors that could impose significant impact on
business performance such as:

• Unexpected increasing or decreasing in output price.

• Unexpected increasing or decreasing in bamboo price.
• Unexpected low selling volume due to low market demand or competition or any circumstances
effecting production capability like power supply, bamboo supply shortage, labor, which results in
the factory operating at only 20% capacity.

The factor that has the greatest impact on profit and project performance is the operation capacity derived
from various external elements. The key profitability indicators still show positive earnings when factory
operates at only 20% capacity of the plant. In the above survey table we may consider maximizing
diversity of the product portfolio and to find the solution to reduce production cost (or increase labor
productivity) to get competitive price for not only domestic market but competitive price in the
international market. This can help us to find ways to integrate into distribution channels in domestic
markets or link production to overseas markets with our own capacity or through export agents.

In other circumstances, the project shows highly positive earnings even if selling prices decrease by 20%
per ton of finished product or raw materials price is increased by 10%.

Like other projects, the profitability can be affected by other potential risks such as changes in interest
rates, raw bamboo quality, new alternative technology or advanced machinery but with our trade analysis
we can still earns profit for the factory.

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Sustainability and expansion Strategy

Every entrepreneur dream is to sustain a business. A business can be sustained through various factors such
as increasing the retention rate of our loyal customers. Ensuring the efficiency of our employees by hiring
the right people and giving them regular trainings, and also having the right business structure so that the
company can continue to exist for as long as possible.

One major sustainability strategy for Gyankama Enterprise is to setup bamboo plantation in Ashanti region,
Brong-Ahafo region and Western region and also grows bamboo in almost all river banks in these three
regions. This project will enable us grows and expands as a company. This means that we will not only
stick in one location of producing all our products but will setup extensions in above name regions, since
the soil there are suitable for bamboo plantation other means suitable for bamboo processing factory.

We would not only look at bamboo sticks production but also produce other essential products that can be
make from bamboo which includes tissue paper or Toilet roll, facial wipes, paper napkins, wrapping tissue,
Sanitary pad, baby diapers, industrial charcoals and laser papers.

Our other services such as consultancy and franchise will help push up our earnings, invariably sustaining
the business. Our customers are top of our priority as we will ensure that we carry out retention strategies
that will keep our loyal customers and ensure that they prefer our products to that of our competitors. We
would do this by giving out incentives to our loyal customers and special discounts to customers that refer
other customers to us.

If we shore up our revenue by creating multiple source of income, hire the right employees and regularly
train them and also treat our customers right, we will not only be known in the industry, we would also be
amongst the top brands.

Product definition
Sticks products in this prospectus are defined as different kinds of stick made of bamboo materials,
including:

Table 2 Samples Products Specification

Products Length (mm) Diameter (mm) Quality requirement

Mosquito Coil 120 to 200 4.0 to 6.0 Environment Safe

Skewers / barbecue Sticks 150 to 300 2.5 to 4.0 Food Safe

Toothpicks 65 1.5 to 2.0 Health Safe

Cotton bud 65 1.0 Health Safe

Incense Sticks 200 to 230 1.0 Environment Safe

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Technology and manufacturing process

The production process and associated equipment has matured over more than 3 decades. There are various
suppliers and variations on production techniques and in general, the bamboo sticks manufacturing process
is complicated relatively straight forward processing operation. However the bamboo sticks quality levels
and types of sticks require different operation scales and production line designs, each varying in the
sophistication and scale of machine and equipment systems.

Fundamentally, bamboo sticks technologies are divided into two levels:

Low processing technology is very simple way of making bamboo sticks with limited machine and
equipment requirement. However, the rate of utilization of raw bamboo materials is lowest (around
10%), which results in high volume of waste and residue, and lower commercial value of finished
products due to the imperfect shape and rougher surface finish resulting from the machine process
and;

Low processing technology

Table 3 – Output for configuration model of low processing technology

Rate (output/input per unit

Items
fresh bamboo culms)
Raw wet chopsticks 18.8%
By‐products and consumption 82.2%
‐ Node dust 28.4%
‐ Chopsticks dust 23.8%
‐ Consumption (steam, sawdust) 30.0%
Utilization rate:
10.4%
Dried Finished Product
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High processing technology maximizes utilization of bamboo materials (to 25%) and produce quality
product output. The disadvantage of such technology is high level of investment in machinery and
equipment.

High processing technology

Table 3 – Output for configuration model of high processing technology

Rate (output/input per unit

Items
fresh bamboo culms)
Raw wet sticks 50%
Wet Dust Output 15%
Wet Chopping Output 30%
Wet Non‐Recoverable Waste 5%
Utilization rate:
Dried Finished 28%
Product

Our prospect focuses on higher processing technology application due to greater market versatility of the
product. The high technology production waste can also be ground into powder used as an industrial
additive, Cosmetology active agent, mosquito repellent coil making and for use in incense production.
Ground bamboo powder made from grounding up bamboo wastes is exportable commodity used in various
industrial applications and is valued at $100/t in Asia Market. Each product will have specific market
opportunities. Regardless, it makes sense to maximize the output of bamboo products and avoid waste.
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Mosquito Repellent Coil, Scented Incense and Dinner Bowls

Nowadays, Environmental friendly dinnerware’s and all smoke free mosquito coil and scented incense are
made-up from bamboo powder paste with some herbals, starches and chemical additives.
We have position ourselves that, no piece of bamboo within our processing yard goes waste. Since
mosquito coil and scented incense are largely used in Africa, South America, Australia and Asia for control
of Malaria and environmental pollutions. Bamboo powder mosquito coil and scented incense production is
very lucrative business and it is in chain with bamboo sticks productions for double income as well as
contributing to ensuring healthy nation through eradicating malaria from the continent.

Equipment and technology transfer

Bamboo sticks processing is highly developed in China and other Asian countries like Vietnam, Indonesia
and Thailand. In these countries, equipment and technology are proven and mature.

In countries with a developed bamboo industry, the machinery and equipment manufacturers’ own
technology and expertise capabilities allow an end to end service of technology transfer integrated with
machinery supply. As with many other industries, technology is considered as one of the key success
factors. Furthermore, the cost of technology transfer for bamboo sticks manufacturing is relatively
inexpensive compared to the scale of investment inflow.
Due to this we have a range of connections and partnerships with trusted machinery and equipment
suppliers and expert’s consultants in China.

Bamboo species suitability

One of the key advantages of the bamboo sticks production business in Ghana for flexible production of
various types of sticks (chopstick, skewers, toothpicks, incense sticks and mat sticks). Thus, it can be
made from a range of bamboo species of varying sizes and thicknesses. Hardness, particularly node
strength may be a limitation to various production processes and equipment which split culms over the
multiple nodes. With hard bamboo, there will be the risk of splitting at the node, and the hardness of the
material may also limit the splitting capacity of machinery.

The preliminary findings for bamboo resources available as input material for commercial stick
production demonstrates only one species, locally known as Russei Prey are available in Ghana for sticks
processing. Other bamboo species are locally grown at the household level (Russei Srok, Russei Ping
Pong) are in too small volumes for commercial exploitation, or are unsuitable for stick production
(Russei Khlei and Russei Priek) but good for making bamboo tissue, laser paper and others smokeless
burning products. The availability of Russei Prey bamboos in four regions of Ghana make it suitable to
invest in this business.

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Technology and Bamboo Process Machines

We strongly recommend an appropriate investment in technology transfer from major bamboo producer
countries like China and Vietnam from the outset.
Bamboo production requires uncomplicated technology but there is a fast development in machinery and
equipment which can result high productivity and product quality improvement. We will bundle
technology transfer with equipment, and should not simply seek the less expensive piece of bamboo
processing equipment.
Equipment setup, training and afte r sales support should be included in the equipment supply. There are
many cases of failed bamboo factories because investors chose the wrong supplier and included inadequate
technology transfer services and we take this as critical to solve in early stage.
A flexible production line for bamboo processing is described here. The major steps and machines can
produce chopsticks, barbecue sticks, incense sticks, mat sticks, cotton bud sticks, toothpick etc while
production of Scented Incense and Mosquito coil requires additional equipments at marginal investment.

The main phases of the production process are as follows from page 34-46:

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1. Bamboo Sawing

After selection, bamboo culms are cut into fixed length poles.

2. Bamboo Strip Splitting

This cutting machine is simply designed. After cutting into poles, these are slated into strips by hand or
using splitting machine as show in the figure below.

Normally this process takes place in the primary processing workshop as bamboo culms need to be
processed as soon as possible because is easier to split fresh culms. Bamboo strips will be transported to
main sticks production line for further processing if main processing site is located far from bamboo
resources. It may prove simpler to transport split or semi‐processed culms than whole culms, but this will
be decided in each case.

3. Slats Planer

By this step, the green layer and inner layer of bamboo strips are removed, strips with two parallel flat
sides – called ‘slats’ are produced. Slats should be further split into thinner stats with thickness varying
from 1.0 to 6.0 mm depending on kind of products these slats will be used to produce. To make chopsticks,
the output slats should be 5.0 or 6.0 mm thickness while toothpicks require slats of 1.0 mm thickness.
Russei Prey has wall thicknesses up to 20mm thick over the bottom sections, so multiple slats maybe
produced from this thickness

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4. Filament Size Set Machine

The filament size set machine will lathe bam boo slats into round long sticks with fixed diameter of the
same diameter of finished product. Through this machine, a flat slat will be bathed into 3 or 4 round sticks
depending on width of bamboo slats and diameter of sticks, furthermore number of round sticks output
depends on knife grooves.

5. Polishing Machine

The polishing machine helps to remove hairs on bamboo round sticks and make sticks smoother.

6. Length Size Cutting Machine

This machine is used for cutting long round sticks into required length of finished products, mostly
chopsticks, barbecue sticks, incense stick, mat sticks. Except toothpick will be further cut by Stick Length
Cut Multi-Knifes Machine in the step 8 .

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7. Round Chopstick/Stick Head Sharpener

The stick head sharpener will saw heads of round fix d length sticks to produce chopstick and barbecue
sticks.

8. Stick Length Cut Multi‐ Knifes Machine (6.5 ‐12 cm)

The b low machine s will cut long sticks into fixed length toothpicks / sticks with multi knifes.

9. Round Stick Polishing Machine

This polishing machine is similar to polishing machine of the step 5 but it’s specifically designed to polish
toothpicks.

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 Bamboo Processing factory Under One District One Factory @Atwima-Boaso

10. One/Two Head Stick Sharpener

The b low machine will lathe one or two head of toothpicks.

11. Stick Polishing

The toothpicks will be polished a gain by this machine to make heads of toothpick smoother.

12. Stick Classification and Arrangement Machine

This machine is used for arranging toothpicks and facilitates packaging.

13. Skewer Packing Machine and sharpener

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14. Blade Sharpening Machine e

15. Skewer molder

16. Toothpick and cotton bud sticks molder

17. Cotton bud former

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18. Cotton bud packing

19. Toothpick Counter

20. Shrink wrap

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21. Toothpick bottle maker

22. Bamboo tester

24. Bamboo Waste Crusher

26. Bamboo powder Miller

25. Bamboo Carbonizer

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27. Mosquito Coil and Scented Incense Paste Mixer

28. Mosquito Coil Extruder

29. Mosquito Coil Stamper

30. Scented Incense Extruder

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