Business plan (Solar Energy System)

FGE Limited

To Make pollution Free Bangladesh


House No: 13, Road No: 4, Sector: 3

Uttara Model Town, Dhaka-1230

Future Generation Energy

Mission Statement:

Our mission is to provide the solar electricity where people not get the opportunity. Our Company is a corporation committed to providing high-quality solar panel in the country. We are committed to treating all our customers with courtesy and professionalism. Our goal of being proper stewards of God’s creation drives us to develop tools and to instruct others in renewable energies, proper energy use and conservation.

Company Ownership:

Our business will be partnership business. The business will be established by the partnership act of Bangladesh.

The owners of the company are,

JubayerIbneAbedin

Md.Shahinul Islam

Md.ArifulHaque

Md.RifatHasan

ShahanajChowdhury

Fiazunnessa

Everyone in the company possess same share, 16.67%.

Company Overview:

Founded in 2012, FGE Ltd is one of the new solar panel company in Bangladesh. The company offers high quality solar solutions. We will provide the services around Bangladesh particularly in the rural areas. We target that within 5 years we will have at least 5000 customers in Bangladesh and we will establish at least 5 branches around Bangladesh.

Products and services:

Product and service description:

The service rendered by the business will be the installation, maintenance, and repair of solar photovoltaic power systems to un-electrified homes on Dhaka, in Bangladesh. We also install the solar panel in the home and office of our customers. The properties of our product are,

Packaging, home delivery, repairs and support, warranty (up to 1.5   years).

We also provide the accessories and services by our company to the customer after the warranty period.

Competitive comparison:

Our company located in Dhaka, but we can deliver our product anytime, anywhere. The price of the product is reasonable than any other company. We give a warranty period of 1.5 years. Other company gives a warranty period of only 1 year. The other company likeIntrocoGroupornanopower gives only 1 year of warranty.

Technology:

Solar power is the conversion of sunlight into electricity, either directly using photovoltaics (PV), or indirectly using concentrated solar power (CSP). Concentrated solar power systems use lenses or mirrors and tracking systems to focus a large area of sunlight into a small beam. Photovoltaic converts light into electric current using the photoelectric effect.

The business will work with the system and its components.  The components of these systems include solar modules (to convert energy into electrical current), batteries (to receive and store electrical current), a converter (to convert DC energy captured from the solar modules to AC energy), a charge regulator (to regulate the solar current into the battery) and use loads (anything that runs on electricity, such as lights). In some instances, existing houses may also need to be retrofitted with electrical wiring and outlets.

Future Products and Services:

1. Solar Panel Powered Notebook Computer:

Our pair of 10 watts modules provides enough power to run and add some charge to most notebook computers. It will power most available Macintosh portables computers and 60% of available PC notebooks.                                   

2. Street Lighting Systems:

Stand alone Street / Periphery Lighting Systems operate by sensing
the Sun light both at dawn and dusk. They also do come optionally
with timer circuit incorporated for certain specified period of operation.

System Consists of:

  Energy efficient compact florescent Lamps / LED

  Low maintenance tubular batteries with suitable enclosure

  4.5 meters pole with mounting accessories

  Dusk to dawn automatic operation with uninterrupted lighting in fully charged condition.

  specific requirements of customers.
Module : 12V, 75Wp
Luminary :11W or 18W CFL
Battery : 12V, 80Ah.
Usage Hours : Dusk to Dawn.
Available in different designs. Timer Circuit is optional

Market Analysis Summary: 

Market Segmentation and Strategy:

In order to meet the needs of different customers, highly versatile stand-alone solar electric power systems were designed for individual houses. The main feature of the systems is that they

can be expanded in output capacity to meet the increase in energy requirements of customers.  There are two designs offered:  System I meets the basic lighting and refrigerator (2.9 cubic feet) loads of a one bedroom dwelling and System II meets the requirement of System I and the additional loads of a personal computer, radio, and television. The two systems are designed to be stand-alone power systems without a back-up power source.  For ease of installation and to offer reliable and efficient operation, the system designs are standardized for all customers based upon local irradiation, weather data, and a generalized power consumption model.

There is also the possibility that large installations will be done.  These installatidonas would be for clusters of housing, where there is more than one single dwelling (or other needs) at a location.  The system needs will vary depending upon the size of the housing cluster.  There may also be a need for a meter at each housing unit.

Industry analysis:

Solar panel energy business is a new type business in Bangladesh. Some of companies doing this business very well. More than 70 companies are existed in Bangladesh. Not all the companies have captured large share in the market. Few of them are big and doing well. These companies not only sale the solar panel but also install the solar system in the house and office. Some of the famous companies of Bangladesh are Earth Corporation, Anchor Solar System, Intraco Group, nanopower etc. There are our main competitors.  

The table shows the industry analysis for solar panel industry:

Company Name	Market Share (%)
Earth Corporation	25
Intraco Group	20
Nanopower	30
Others	25

Total                                           100% 

Chart shows the percentage below:

Strategy and implementation summary:

Competitive Edge:

Our company provides the solar panel is a cheaper rate than other companies. We provide the warranty for 1.5 years. But others give only 1 year. The nanopower gives only a warranty period of 1year.

Marketing strategy:

We make the marketing strategy of our company based on marketing mix(4ps=product,price,place,promotion).

Pricing:

Since, we are targeting the Dhaka city and villegers of Gazipur Thana we have in our mind that the villager's earning is very little. So we will keep the price in their favor. Each solar system will cost us Tk.12, 000. So we will keep the price Tk.15, 000 to the customers. We will also give them the option to repay the price in 20 subsequent equal installments. For the Dhaka city, we develop different packages which are Tk 25,000 and Tk 35,000.

Pricing system of product,

Particulars	Tk
Purchase price of a solar  panel Transportation cost Transportation (Customer side)	9,000 1,000 2,000
Total	12,000
Profit	3,000
Total price	15,000

Distribution:

Our business will be working primarily from customer orders. The businesses will response to set up a system where the solar power systems are delivered to the business as quickly as possible after being ordered. Since sufficient time must be allowed for the units to be shipped, the business will have an adequate inventory of solar system components on hand. The installation crews will drive company vehicles to each customer’s location in order to install the systems.

This method of distribution will require several things those the business has. First, it has strong working relationship with a supplier of the solar power systems in Japan. Second, it will require the service of a reliable shipping company that our business will have.  Finally, it will require well-maintained trucks, preferably with four-wheel drive; in order to get the systems to customers located in remote places that are also in our plan.

For the distribution, we have a delivery van. The delivery van has driven by a driver. The technician goes with the van to install the solar panel.

Promotion:

During the start-up phase of the business, little capital would be spent on advertising.  In fact, the business will advertise enough to let the owners of un-electrified homes know about the business. We will arrange rallies in different areas of the Thana for making the people of the area conscious about the alternative energy that we are going to provide, and besides this we will let them know the current pressure on the general electricity. The advertising will be brief but will include information about the business, what the business does, how to contact the business, and possibly a general price. This will effectively inform the target market of the business’s purpose. In the future, the business may decide to expand its customer base. In future the business will advertise in the local newspapers and local radio.

At first, we distribute some leaflet and pricelist to the people of Gazipurthana and in Uttara. We also give some T-shirt (printed with our product image and address) to the local people for our advertisement.

Sales Strategy and Forecast:

At first, we sale the solar panel in different areas of Dhaka city. The unit price of the electricity is gradually increasing. The load shedding also a common problem in Bangladesh. So we try to sale our product in Dhaka.

Then we go for the market where the electricity does not exist.

At the first year we expect to sale at least 1000 solar panels. We also expect that every year we increase the sale by 25%.

The growth of sales of solar panels is being presented by a bar chart below:

Year Number	Year	Order
1	2013	1000
2	2014	1250
3	2015	1500
4	2016	1750
5	2017	2000

Marketing Survey for the Solar System:

Questionnaire form and answers:

We survey the questionnaire on 20 people. Then we made percentage of the answers based on 20 people. We then arrange the percentage according to the answers options (1-13). From 14-20 we placed the answers in the first place which percentage is highest.

1. Have you any idea about solar energy system?

 Yes (80%)    No (20%)

2. Is it possible for proper utilization of electricity in our country?

 Yes (50%)    No (50%)

3. Is there any impact of using solar energy?

 Yes (70%)     No (30%)

4. Will you use the solar system in future?

 Yes (100%)    No (0%)

5. In your opinion, is the cost of solar electricity is lower than the govt. electricity?

 Yes (55%)     No (45%)

6. In your opinion, is the system could bring any change in rural area?

 Yes (80%)     No (20%)

7. Is it environment friendly?

 Yes (70%)    No (30%)

8. Do you support to distribute the system all over the country?

 Yes (85%)   No (15%)

9. Is it possible enough to recover the problem of electricity by solar panel in our country?

 Yes (60%)   No (40%)

10. Do you think it is the best procedure to use the natural power? 

 Yes (100%)   No (0%)

11. Do you have any idea to improve the solar system?

 Yes (90%)    No (10%)

12. Does your relatives or friend use the solar panel ?

 Yes (20%)     No (80%)

13. Do you have any negative concepts about solar system?

 Yes (100%)       No (0%)

14. How did you have all the information about solar system?

 Newspaper (80%)    Radio (5%)   TV (15%) 

15. In which regions solar system suits best?

 Rural (85%)      Urban (15%)

16. Which power system is the best solar, IPS or generator?

 Solar (100%)     IPS  (0%)    Generator (0%)

17. What is the main source of power of solar system?

 Sun (90%)       Others (10%)

18. In which price you can afford to buy a solar system?

 Tk 10,000 (100%)  Tk 15,000 (0%)   Tk 20,000 (0%)

19. What kind of power system you are currently using?

 Govt. electricity (100%)   Solar (0%)

20. Your overall opinion about solar energy system?

 Best (60%)    Good (20%)    Not bad (15%)    Bad (5%)

Management team:

There are six entrepreneurs with some mid-level employees as well as lower level of employees too. Mid level of employees consist of 5 members and lower level of employees consists of 4 employees.

Management structure:

General Manager

 

                                  

HR Manager

Finance Manager

Marketing Manager

HR Executive

Finance Executive

Accounts Executive

Sales Executive

Purchase Executive

Service Technician

Repair & Installation Technician

 

Compensation and Salary Structure:

Lower level employees	Mid-level employees		Higher level employees
The salary will be 4000 and one compensation benefits equal to  one month of salary will be provided with 1 day of holiday		The salary will be 10000 with one compensation benefit equal to one month of salary with 1 day of holiday and salary increase in every 1 year by 500	The salary will be 15000 with two compensation packages equal  to one month of salary and 1 day of holiday

Salary and Compensation Calculation:

Particulars	Tk
Salary of the partners (15,000×6×12) Partners compensation (15,000×2×6) Salaries of the employees (10,000×4×12) Compensation of employees (10,000×4) Wages of workers (4000×2×12) Compensation of the workers (4,000×2)	1,080,000 180,000 1,260,000 480,000 40,000 520,000 96,000 8,000 104,000

Projected Profit and Loss Account:

Particulars	2013(Tk)	2014(Tk)
Revenues Sales Revenue Operating Expenses: COGS Partners salary Partners compensation Salaries, Wages& compensation of employees Annual Fixed Costs Rent Expense (10000×12) Marketing exp. Others Net Income	15,000,000 (12,000,000) (1,080,000) (180,000) (624,000) (120,000) (48,000) (200,000) 748,000	18,750,000 (15,000,000) (1,080,000) (180,000) (624,000) (120,000) (48,000) (200,000) 1,498,000

Projected Balance Sheet:

Particulars	Amount(Tk)
Assets: Cash Short term investments Inventories Other current assets Total current assets Total long term assets Total assets Liabilities: Accounts payable   Short term borrowings   Other short term liabilities   Total current liabilities   Total long term liabilities   Profit and loss account Total liabilities	1,000,000 400,000 3,000,000 100,000 4,500,000 500,000 5,000,000 1,500,000 500,000 700,000 2,700,000 1,552,000 748,000 5,000,000

Break Even Analysis:

                                                  Fixed cost

Break even point in units = ------------------------

              Contribution unit

Break Even point in units=  = 156 Solar System

Here, Fixed cost= Tk (120,000+48,000+200,000) =Tk 468,000

         Contribution unit= Tk (15,000-12,000)=Tk 3,000

The SWOT Analysis:

The SWOT means strengths, weaknesses, opportunities and threats.

Strengths:

We will use new technologies which help to improve the glass and flexible materials.                    

Flexible materials and  natural resources.

Weaknesses:

Facing technological challenges for that reason we cannot produce mass amount of output.

Solar incentive program is short term.

Opportunities:

Environment friendly company.

Consolidation  opportunity to build up small industry.

Threats:

Chines solar market holds the large portion of share in our market.

Global economic crisis.