Canadian Tavua International Holdings Corporation Executive Summery

Transcription

1 A BUSINESS PLAN FOR Canadian Tavua International Holdings Corporation Executive Summery By: Creative Marketing Consultation Limited March 28, 2018

2 CONTENTS 1. EXECUTIVE SUMMARY 2. INDUSTRY ANALYSIS 3. MARKET OVERVIEW 4. BUSINESS AND PRODUCT DESCRIPTION 5. OPERATING PLAN 6. MARKETING STRATEGY 7. MANAGEMENT AND STAFFING 8. STARTUP OPERATIONAL SCHEDULE 9. STARTUP EXPENSES & CAPITALIZATION 10. FINANCIAL STATEMENTS 11. APPENDICES & OTHER INFORMATION 2

3 EXECUTIVE SUMMARY According to the Council of Bottled Water Manufacturers, demand for bottled drinking water has been growing rapidly, for the past decade, every year the demand record an increased in a double-digit up to 20% growth. This can be viewed as the consumers are already used to drinking bottled water, it is even become their habits and is a part of the lifestyle of this era. The World Water Reserve and Situation Drinking Water Reserve Water is vital for all known life forms, it covers 71% of the Earth's surface, of which only % is fresh water, including % frozen in glaciers, ice, and snow, % as fresh groundwater and soil moisture, and less than 0.01% of it as surface water in lakes, swamps and rivers, and the atmosphere contains 0.04% water. In areas with no fresh water on the ground surface, fresh water derived from precipitation may, because of its lower density, overlie saline ground water in lenses or layers. Most of the worlds fresh water is frozen in ice sheets. Many areas suffer from lack of distribution of fresh water, such as deserts. The Market of Global Bottled Water At 2014, the global bottled drinking water market was valued at US$170 Billion and is expected to generate revenue of USD420 Billion by 2020, growing at a Compound annual growth rate (CAGR) of 12.96% between 2017 and The global bottled water market stood at 362 Billion litres in 2016 and reached 409 Billion litres of 2017 and expected to grow at a CAGR of 10.06% between 2018 and The Aquifer Water - Luxury Water from Fiji At the luxury end of the water market, fine water becomes more like expensive wine. In high-end restaurants the precise origin of water is what matters; many eateries offer water lists along with the wine selection. For power-lunchers in health-conscious Los Angeles, drinking an expensive bottle of water is a person s status symbol. An aquifer field in Fiji is an underground layer of water-bearing permeable rock, rock fractures or unconsolidated materials (gravel, sand, or silt) from which groundwater can be extracted using the water well. Studies of water flow in aquifers and the characterization of aquifers are called Hydrogeology, which is a bed of low permeability along an aquifer, is a solid, impermeable area underlying or overlying an aquifer. If the impermeable area overlies the aquifer, pressure could cause it to become a confined aquifer. Fiji Aquifer water is among one of those luxury and untamed water sources and self-recharges after use. 3

4 The Fiji Aquifer Water Rare and Valued Commodity It states clearly in the Fiji Water Resource Tax Promulgation that Fiji government will charge $0.33 Fiji dollar which is approximately US$0.17 per litre as a water resources tax on this untamed and precious natural resources for all business purposes which makes the water in Fiji a rare and valuable commodity in the water Industry. The Company and its Goals Canadian Tavua International Holdings Corporation is formed by Cindy Chiu, who holds a lease of 454 acres of agriculture land up to 99 years in the province of Tavua, the main island of Fiji and was found that there is sufficient and a significantly large water reserve beneath it for commercial use. To take advantage of the expanding worldwide market for Fiji Aquifer bottled water, Cindy decided to create a new brand of bottled water, which in quality is equal if not above the standard compared to the already famous brand of bottled water from Fiji sold around the world. A team of members has done extensive studies and marketing researchers in the water industry for months and developed a solid business plan for the company to enter the market of bottled water. Cindy Chiu then established Canadian Tavua International Holdings Corporation to become the home and head office of this future water empire. Description of the Product and Service Canadian Tavua International Holdings Corporation (CTIHC) as the bottled water manufacturer, with an estimate full production capacity of 150 Million litres per years, will generate revenue from this Fiji brand of water. Owning its worldwide distribution right and distributing channels of the brand, the company plans to deliver three sizes of bottled mineral water in 1.5 litres, 1 litre, and 500ml bottles. Canadian Tavua International Holdings Corporation will set up their own distribution company in charge of channeling the North American domestic market and branches out to Europe, Middle East, and Asia Market. The distribution company will employ another 10 staffs in Canada. Proposed Target Market Our Bottle water will target at: Health conscious market: The Americas, Western Europe Low water resources, but lucrative market: Middle East High demand but competitive market: China and Asia Countries 4

5 Operation Canadian Tavua International Holdings Corporation will bottle their own brand of water on location in Tavua, Fiji, in their future plant. The company is still awaiting the most update bottling machines and technology to pride us with the best solutions which include green energy, recycling, reduce carbon-free system, edible seaweed containers, self-degradable package, PET bottle molding and other advanced technology. Marketing Canadian Tavua International Holdings Corporation will focus and emphasis on the rare and unique quality of the water. Conservation of world resources, natural, green and untouched by human are all our marketing theme. The company will set up an international marketing centre in Vancouver, Canada. This centre is going to develop the entire marketing concept for all the regions as well as the internet sales; it will oversee the 5 major regions in concepts, budget and operational details. Using the multi-cultural approach will be an advantage for this centre. It will employ a minimum of 15 staff in the future. The Competition Currently, there are a lot of manufacturers and bottled water distributors in the world, and the business of bottled drinking water is very competitive. However, there is only one manufacturer/ producer distributing Fiji Aquifer Bottled water worldwide. The Management Team Cindy Chiu is the owner and president of Canadian Tavua International Holdings Corporation, she is a Canadian real estate investor and has over 20 years of related experience in Fiji, she is well known in Fiji among the native residents and government departments. For overseeing the development and expansion of this business operation, Cindy s two sons are very supportive of her. Her second son an accredited civil engineer in Vancouver and his younger brother, the visiting professor in mathematics at Simon Fraser University, all of them will work closely in this project. Cindy also will appoint David Yang as the senior business consultant of the company; along with Anthony Remedios (Legal - Domestic and International), Julio Young (Finance and Accounting) and many experienced veterans in the bottled water industry specialized in the field of sales and marketing will soon join the group. They all will assist Cindy in shaping the company, setting up the structure, management, marketing & sales, operations, human resources and as well as product channeling of the company. 5

6 Financial Outlook for the Business Canadian Tavua International Holdings Corporation targets to reach the production of 55,000 litres per day in 2019, it represents the sales of 20M litre bottles of water a year, and the annual gross sales revenue is about US$68,000,000, and we projected the gross profit margin of that year is 45.5%. And subsequent, after reaching higher operation capacity to 40m litres, 60m litres, 80m litres and 120m litres per annum; with the assumption that wholesale distribution and online sales are evenly distributed, the sales revenue will increase to US$ Million pa. and the net operation income of the company will be within the range of 30-39%. The Financing Anmount Required for the Business The total Start-up expenses and first year operation cost is estimated at US$20,000,000 for the project. We are looking for a loan or investment fund from investment/ mutual fund, or interested party to finance US$15,000,000 only on the Start-up expenses of this project. The fund will be used in land modification, leasehold improvement, development of infrastructure, purchase machinery for the water bottled plant, products warehouse, HR recruitment and to develop our own online and wholesales distribution Company. 6