Page 1

A Business Plan on Artificial Turf

Prepared for
Md. Shahinur Sobhan
Assistant Professor
Department of Business Administration
Dhaka City Collage
Dhaka,

Prepared by
Freshers
BBA-Batch 14
Section-B

Date of Submission
March 18, 2012

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Group Name:Freshers
Name

Roll

Asikur Rahman

66

Md. Imtiaz Alam

62

Habiba Anam

58

SkMd.Hadin

64

Md. Mamunur Rahman

61

Sayla Jaman

65

Sumaya Rubaiyat

63

Farzana Rahman

59

Md.Mohaimenul Islam

60

Md.Asif Shariar

67

Group Members

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Letter of Transmittal
March 18, 2012
Mr. Md. Shahinur Sobhan
Assistant Professor
Department of Business Administration
Dhaka City College
Dhanmondi, Dhaka.
Subject: Submission of Report
Sir,
We are proud to inform you that we, the members of Freshers have prepared this
report on Artificial Turf. We request you to receive the report.
We apologize for our mistakes in the report. We will be happy to clarify queries
regarding the report.
Yours truly,
Asikur Rahman
On behalf of the group Freshers
BBA, Batch-14, Section-B
Department of Business Administration
Dhaka City College
Dhaka

Page 4

Acknowledgement
At the beginning of preparing the report, we didnt know how to prepare a business
plan. Group discussion was the key to finish the report.
A number of people helped us when we were preparing it.
With the guidance of our respected teacher Mr. Md. Shahinur Sobhan and Ms. Manna
Akter Lina Department of Business Administration, we were able to prepare this
report. Their valuable comments and proper guideline showed us the way of success.

Executive Summary
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Executive Summary
Project
Name ofthe company

: A business organization will be established which will

Provide the services of artificial turf.
: Green Shadow

Type of business
Type of organization
Year of establishment

: Partnership Business
: 2013

Financial condition: Profitable

Means of financing

: 60% as equity capital & 40% as debt capital

Special service: 1. Rooftop turfing

2. Anti-Slip Carpet
3. Football field turfing
4. Welcome Mat

Technical Sides
Machinery

:All are imported outside of the country

Earnings After Tax

2013

2014

2015

2016

2017

3825641.25

9123819.75

14486761.50

23727860.25

31572956.2

Financial Sides
Comment Profitable Organization.

Contents
Page 6

Particulars

Page No.

Chapter 1. Introduction

(1-1)

Objective

Methodology

Limitations

Chapter 2. Business Description Segment

(2-3)

Idea of Artificial Turf

Product History

Companys Vision

Companys Mission

Management Segment:

(4-6)

Organization Structure

Management Team

Employment Agreements

Ownership

Advisors & Auditors

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Chapter 3. Manufacturing Segment

(7-12)

Location Analysis

Production Machinery

8-9

Installation Equipment

10

Sources of Raw Material

11

Manufacturing Process

11

Labor Supply

12

Manufacturing Cost Data

12

Chapter 4. Marketing Segment

(13-18)

Problem Identification

13

Situation Analysis:

(13-14)

Market Summary

13

SOWT Analysis

14

Marketing Strategy:

(14-15)

Market Segmentation

14

Target Market

15

Marketing Mix Analysis:

(15-17)

Product

15

Price

16

Place

16

Promotion

16-17

Corporate Social Responsibilities

18

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Chapter 5. Financial Segment

(19-26)

Cost of Project

19

Means of Financing

20-21

Cost of Production:

(22-24)

Material Cost

22

Utilities Cost

23

Labor Cost

23

Factory Overhead Cost

24

Working Capital

24

Income Statement

25

Profitability Projection

26

Chapter 6. Conclusion

(27-28)

Conclusion

27

Reference:

(28-28)

Reference

28

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Page 10

Introduction
Objective
Our objective is to prepare a report about Grass Carpeting which was suggested by
our respected teacher Md.Shahinur Sobhan. Thus we can learn how to prepare a
report.

Methodology
We gathered our required information from internet which is a secondary source of
data collection. Sources are Internet
Web based articles
Science Magazine

Limitations
We faced problems to make this report. Like

Selecting a new idea was really tough

Communication problem among group members
Problem with limited internet connection
Lack of required exact information

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Page 12

Business Description Segment

Idea of ArtificialTurf
Artificial turf is a surface manufactured from fibers made to look like natural grass.
It is most often used in arenas for sports that were originally or are normally played
on grass.The main reason is maintenanceartificial turf resists heavy use, such as in
sports, and requires no irrigation or trimming. Domed, covered, and partially covered
stadiums may require artificial turf becauseof the difficulty of getting enough sunlight
to stay healthy.

Product History

Every unique business has its own historical background. So, Grass Carpeting also
has a background.
David Chaney who served as Dean of the North Carolina State University College
of Textiles headed the team of Research Triangle Park researchers who created the
first notable artificial turf. Artificial turf first came to prominence in 1966, when
Astroturf was installed in the Astrodome in Houston, Texas. Anattempt to use natural
grass in 1965, but this failed miserably. The use of Astroturf and similar surfaces
became widespread in the U.S. and Canada in the early 1970s.
Artificial turf first gained substantial attention in the 1960s, when it was used in the
newly constructed Astrodome. The specific product used was called Astroturf.

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Companys Vision
Our vision is to make a greener Bangladesh. We want to see our country totally as a
green heaven within 20 years.

Companys Mission
We have some specific mission with our unique idea and product. They are as below Spreading all over our country
To create a new business in Bangladesh
Provide high quality product and service
Earn customers faith and satisfaction
Establishing a good opportunity to resistunemployment problem

Legal Form of business

Green Shadow is owned by the partners. We started our partnership business
according to the Partnership Act 1932. The firm is running under this act.

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Management Segment
Organization Structure
Managing Director

Operations
Manager

Assistant
Op.
Manager

Departmental
Head

Research & HR
Manager

Chief
Engineer

Asst.
Engineer

Supervisor

Finance &
Accounting
Manager

Executive of
Accounting

Executive of
Finance

Worker

Marketing
Manager

Installation
Manager

Worker

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Management Team
Age Designation

Name

General
Salary

Experienc Qualification
e

Asikur Rahman

39

Managing Director

65000

5 Years

CA (UK)

Imtiaz Alam

39

General Manager

60000

5 Years

BBA (IBA)
MBA(IBA)

Md.SK Hadin

33

Assistant Manager

55000

3 Years

Habiba Anam

35

Financial Manager

45000

7 Years

BBA(NSU)
MBA(NSU)
CA (USA)

Sayla Jaman

32

Head of HR

40000

3 Years

Sumaiya Rubaiyat

30

Marketing Manager

35000

2 Years

Mamunur
Rahman

25

Operations Manager

32000

2 Years

Asif Shahriar

33

Installation Manager

30000

1 Year

BBA(DCC)
MBA(EWU)
BBA(JNU)
Marketing
BBA(DCC)
MBA(DCC)
BBA(WUB)

Employment Agreements
Salary
Employees will be paid based on standard scale and their experience. Experience
employees are preferable.

Overtime
Overtime varies on works pressure. Per extra 2 hours is granted as a reward of 3.5%
of standard salary.

Facilities
Extra facility includes monthly health check-up, Bike for marketing sided workers
and yearly prize giving ceremony for winners.

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As

Name

Percentage

Md.Imtiaz Alam

15%

Asikur Rahman

15%

Habiba Anam

15%

Sayla Jaman
Sk.Md.Hadin

15%
15%

Md.Mamunur Rahman

15%

Farzana Rahman
of
of the owners

Ownership
a
partnership
business, it is
running with the
different amount
equity

10%

Advisors & Auditor

Legal Advisor:
Md. Abdul Sattar
Advocate,
Dhaka Judge Court
Mob- 01745865041
Auditor:
Md. Tahmidul Ahmed
Sr. Auditor
Mawla Mahammad & Co.
Mob- 01819220110

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Page 18

Manufacturing Segment
Location Analysis
We choose Ashulia for our factory and administration office. We have rented a suitat
Gulshan-1(Road-8, Plot-2, Dhaka 1212) to provide a quick service to our respected
customer,both commercial and residential.

Reasons behind locations

Now-a-days, finding a big empty land is really tough in our country, thats why we
had to move to Ashulia a get a quit bigger place for our factory and administration
building. Its near the main road as shown on the map.
As our main customers are from high and middle class level, we choose Gulshan as
our regional office. Because we have to response to our valued customer quickly.

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Production Machinery
For factory use:
* CO2 Carpet cutting Machine by laser
FOB Price: US $7000 / Set (560000 Tk.)

Features
1. Fast and continuous cutting
2. 2500mm*3000mm working area
3. Auto feeding system

Model: CJG-250300LD

* Automatic high frequency plastic welding machine with pulling tray

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FOB Price: US $ 4000 / Set (320000 Tk.)

Features
1. Easy operating
2. Low electricity consumption
3. Manual cutting enable

* Plastic carpet making machine

FOB Price: US $ 10000 / Set (800000 Tk.)

Features
1. Low cost production facility
2. VGA monitor display

Model: EBT P163

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Installation Equipment:
* Artificial Lawn Comber (Combs the lawn)

* Turf Layer(Layers Turf to be placed correctly)

*Sand Infill Machine(Fills sand in soil)

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Sources of raw materials

We import our necessary raw material from China and are imported from these
fabulous companies
1. Qindao Zhongxinda Rubber Plastic Co. Ltd
Province: Shendong, China.
2. Strawman Artificial Grass Co. Ltd
Province: Jiangsu, China
3. Hangzhou Green Valley Rubber Products Co. Ltd

Manufacturing Process

IC
n a e p
W
M
d to
FmSAa u
idrodk p p l l o ea
tnit du
tu e i r tc l
wec s
infc M
o
tsao i rngn
l a d
magp u
ai n r
hhc
ruep
t en
t i
pt
e
t
Labor Supply

l
u
n

d
l
d

c
e

Labors will be appointed by daily basis. Factory labor, who will work on production,
packaging sector and supply sector, will be paid daily. They will work in two shifts,
from 7.30 AM to 12.30 pm and 1.00 pm to 5.30 PM. Overtime work will be paid an
extra amount of 5% of their daily income.

Manufacturing Cost Data

Page 23

Particulars

Cost

Material Cost
Utility Cost

1000000
0
285144

Labor Cost

3456000

Factory Overhead Cost

736560
Total

1447770
4

Page 24

Marketing Segment

Problem Identification
Our product will help people to Relief from monotonous life
Make them feel that they are close to nature
Enhance beauty

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 Resist heavy use

Make fields more usable

Situation Analysis
Market Summary
As our business derived from a unique idea Green Shadow is all alone in the grass
carpeting market. Especially in production segment, because we make turf here. So,
we need to start from the beginning. Its quit tough but challenging for us. But we are
expecting a positive mark from our customers.

SWOT Analysis
The term SWOT stands for- Strengths, Weaknesses, Opportunities, Threats.

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S
W
O
T

Marketing Strategy
Market Segmentation
At the very beginning of our business, we have focused on Dhaka City. Based on our
primary goal To make a greener Bangladesh we have to first introduce our product
at Dhaka City. At its high classed places. They are1. Gulshan
2. Banani
3. Uttara
4. Dhanmondi
5. Bashundhara
After achieving our goal, we will move on to our next steps by establishing our new
shops at Chittagong and Sylhet.

Target Market

Page 27

According to income we targeted high level customer. Our main target are given
below House
Sports field
Hotel
Racing track
Empty fields(Unused)
Commercial building

Marketing Mix Analysis

1. Product

Uniqueness:
We are the 1st organization in Bangladesh who provides artificial turf. We can attract
attention from all kinds of people by presenting our unique product using various
method of advertising.

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Features:
We use high quality turf
Our raw material is imported from China
We have trained team of worker
We take order by facebook and our official website
Benefits:
When a customer uses our product, we can assure that all kinds of turf are high
quality and can get quick response from us at any question. Thats why they can count
on us.

2. Price

Football Turf- 18$ Sq./ft

Welcome Mat- 2.5$ Sq./ft
Lawn Turf- 12 $ Sq./ft
Anti Slip Carpet- 2.5$ Sq./ft

3. Place
We have contracted with some stores and hotels at various place of Dhaka city.

The Westin Dhaka (Lawn and garden)

Siemens House (Rooftop)
Kurmitola Golf Club (Partial)
Bangabandhu National Stadium(Partial)
Our main showroom

4. Promotion
*Advertising:
We will take the advantages of modern technology to advertise our product. Examples
are given below
1. SMS Subscribing
We have contracted with 3 mobile phone operators to send an informational SMS to
subscribers weekly.

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2. Opening groups and pages at facebook

By opening official fan page at facebook.com we can show our products picture on
their wall and sending messages.
3. Youtube Channel
With the help of video streaming website youtube.com we will upload latest videos on
our channel we will be able to take peoples attraction.
4. Billboards
Billboard is a common way of advertising. We hired 13 billboards for advertising our
product.
*Sales Promotion
1. By sending a sample and a picture of our product to all kinds of people
2. By sending a video disc to a specific class people
3.Reducing the installation cost 15% for first 50 orders
4. Sending a leaflet in newspaper by introducing our product to people
5. First 50 welcome mats will be sold at 2.5% discount
* Internet Based Promotion
1. Customers who will order a certain number of oder by our official web site
within 1st 7 days of promotion, will get a chance to pay a trip to visit Kualalampur
with 500 $ cash.
2. Facebook users will get a link to free download of cover photos of our product.
3.Youtube videos will include the interview of 1st 50 customers with their
comment about the product and will be shown at TV later.

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Corporate Social Responsibility

According to our slogan our 1st importance is make our society more naturally
beautiful, to make people feel that they are closer to nature than ever before. So we
have to take care about the quality of the product and also we are trying to use less
harmful materials which can affect our environment. If we make our business
profitable, we are planning to donate some charitable organization. We will try our
level best to do these Well try to reduce the unemployment problem of a good number
of people
Our product wont have any harmful effect on environment
If we can achieve our desired mark of profit, we will donate to acid
survivor fund
Contributing on road development
We will distribute a number of tree plants on rainy season
Raising awareness for preventing AIDS
Raising awareness about Breast Cancer

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Page 32

Cost of Project
Our all the costs of project are given bellow.

Particulars

Amounts

Land & Site Development

40000000

Building & civil works

15000000

Plant & machinery

1700000

Pre-operative cost

2500000

Vehicle

6000000

Furniture

1100000

Miscellaneous fixed asset

1500000

Office equipment

500000

Production cost

14477704
Total

82777704

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Means of financing
Capital structure
As our business type is partnership, its financing will be made in two ways

Equity finance
We will be all together ten partners in our business. Each of our partners will invest
equally. Each will bring 49666623 Tk as capital.

Name of Partners

Percentage

Amount

Asikur Rahman

6%

49666623

Md.Imtiaz Alam

6%

49666623

Habiba Anam

6%

49666623

Sh.Md.Hadin

6%

49666623

Md.Mamunur Rahman

6%

49666623

Sayla Jaman

6%

49666623

Sumaiya Rubaiyat

6%

49666623

Farzana Rahman

6%

49666623

Page 34

Md.Mohaimenul Islam

6%

49666623

Md.Asif Shahriar

6%

49666623

Debt finance
We will also take loan from bank for our financing. We will take 33111082 taka from
DBBL bank against of 13% interest.

Year

Loan
Installment

Loan at the
beginning

Payment

Loan at the
end of the
year

Interest @ Principal
13%
Repayment
1

9413962

33111082

4304441

5109521

28001561

9413962

28001561

3640203

5773759

22227802

9413962

22227802

2889614

6524348

15703454

9413962

15703454

2041449

737213

8330941

9413962

8330941

1083021

8330941

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Cost of Production
Total Cost of production
The total cost of production-

Particulars

Cost

Material Cost

10000000

Utility Cost

285144

Labor Cost

3456000

Factory Overhead Cost

736560
Total

14477704

Material Cost
We will use two types of material. The all costs of the materials is given below-

Raw Material
Name
Green EPDM Rubber Granolas
Rubber Artificial Grass
Glue Water
PE Artificial Grass Mat
Artificial Grass Adhesive
Total

Cost
1800000
1200000
1500000
2000000
1500000

8000000

Installation Material
Name
Artificial grass non-woven-felt
Artificial grass joint tape
Total

Cost
1200000
800000
2000000

Total cost of material

Particular

Amount

Raw Material
Installation Material
Total

8000000
2000000
10000000
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Utilities Cost
We will use electricity, gas, water, telephone, internet etc.
The costs are-

Particulars

Cost

Water
Gas
Electricity
Internet
Tnt

3744
5400
120000
96000
60000
285144

Total

Labor Cost
All the labor costs are given below-

Particulars

Cost

Production Worker
Labor
Tech Team
Engineer
Installation Workers

2400000

Total

744000
312000
3456000

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Factory Overhead Cost

In our project, there will be some factory overhead costs, which are given below-

Particulars

Cost

Maintenance
Insurance
Tax
Others

66000
99600
516960
54000
763560

Total

Working Capital
Our working capital is given below

Particulars

Cost

Material cost
Utilities cost
Labor cost
Factory Overhead cost
Total

833333
23762
288000
61380
1206475

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Income Statement
Amount
Particulars

Taka

Taka

Sales Revenue
Less: Cost of Production

3270000
0
1447770
4

Gross Profit-

18222296

Less: Opening Expenses

Administration Expenses
Selling Expenses
Pre-operative Expenses

EBIT(Earnings before Interest & Tax)

Less: Interest 13%

566700
0
650000 8817000
250000
0

9405296
4304441

EBT(Earnings before tax)

Less: Tax @ 25%

5100855
1275213.75
EAT(Earnings after tax)

3825641.25
========

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Profitability Projection (5 years)

Capacity
Utilization

40%

50%

2013

2014

Sales Revenue
Less: Cost of
Production

32700000
14477704

Gross Profit

Particulars

60%

70%

90%

2015

2016

2017

40875000
16112704

49050000
17747704

57225000
19382704

73575000
21017704

18222296

24762296

31302296

37842296

52557296

5667000
2500000
650000

5657000
2500000
800000

5647000
2500000
950000

5637000
2500000
1100000

5627000
2500000
1250000

9405296
4304441

15805296
3640203

22205296
2889614

33678596
2041449

43180296
1083021

Less:
Operating
ExpensesAdmin
Expenses
Pre-operative
Expenses
Selling
Expenses
EBIT
Less: Interest
@13%

5100855
12165093
1275213.75 3041273.25

19315682
4828920.5

31637147
7909286.75

42097275
10524318

EBT
Less: Tax 25%

3825641.25 9123819.75

14486761.5

23727860.25

31572956

EAT

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Page 41

Conclusion
We are going to start our organization with the motto Greener world, better
tomorrow. We will try our level best to deliver the best quality product and service to
all kinds of people-customers, employee, bank and partners.
As Bangladesh is a developing country, our focus is on all kinds of people. Because if
we focus on a specific class of people, we wont be able to reach our goal and in the
long run, we will fail.
Based on our economic condition we will try our level best to reach to all kinds of
people and deliver our product.
Business is not just Business. That means we have a lot responsibility to our society
and country. We will try to contribute on social welfare works. Like- Planting more
trees, raise awareness of breast cancer. That is how we are going to start our business.

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Page 43

Reference
We used these sources to find our required information.

Websites:

en.wikipedia.org
alibaba.com
actglobalsports.com
facebook.com
youtube.com
made-in-china.com
dhakacity.olx.com.bd

Book:
Principles of Marketing by Philip Kotler (12th Edition, Page-399 )

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