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Business Plan Solar Panel Production

In: Business and Management

Submitted By odvut
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CHAPTER 2: COMPANY OVERVIEW 5 2.1 Mission Statement 5 2.2 Vision Statement 5 2.3 Key Products & Services 5 2.4 Strategic Goals and Objectives 6 2.5 Management 6
CHAPTER 3: INDUSTRY ANALYSIS 7 3.1 Threat of New Entry 7 3.2 Bargaining Power of Buyer 7 3.3 Bargaining Power of Supplier 8 3.4 Degree of Rivalry 8 3.5 Threat of Substitution 9 3.6 Company’s Core Competencies 9
CHAPTER 4: COMPANY ANALYSIS AND PRODUCTION PLAN 10 4.1 Company Analysis 10 4.1.1 Cost Advantage and the Value Chain 11 4.1.2 Differentiation and the Value Chain 12 4.1.3 Technology and the Value Chain 13 4.1.4 Linkages between Value Chain Activities 14 4.1.5 Analyzing Business Unit Interrelationships 14 4.1.6 Outsourcing Value Chain Activities 15 4.1.7 Existing Core Competencies 15 4.1.8 Future Competencies 16 4.2 Production Plan 17 4.2.1 Product/Service Overview 17 4.2.2 Facilities 17 4.2.3 Products and Manufacturing Process 20 4.2.4 Research and Development 20 4.2.5 Quality Assurance 20
CHAPTER 5: STRATEGIC PLANNING 21 5.1 Marketing Environment Analysis 21 5.2 SWOT Analysis 23 5.3 Competitive Advantage 27 5.4 Additional Strategic Consideration 28 5.5 Strategic Group Analysis 29
CHAPTER 6: MARKETING PLAN 31 6.1 Market overview 31 6.1.1 Potential Customer 31 6.1.2 Size and Growth of the Market 31 6.2 Sales and Marketing 32 6.3 Distribution 33 6.4 Advertising/Product Promotion 33 6.5 Customer service 35
CHAPTER 7: FINANCIAL PLAN 36 7.1 Projected Startup Costs 36 7.2 Financing 37 7.3 Income Statement 38 7.4 Cash Flow Statement 39 7.5 Balance sheet 41 7.6 Financial Analysis 43

In Dhamrai, Savar the production is continuously being challenged as lack power supply by Government. The situation signs no improvement in near feature. So the productivity of our textiles industries is reducing which is going to affect our economy as well as business. Govt. is seeking for companies who have the infrastructure to supply electricity. The initial steps they have taken are they reduced all the tax of any power plant for the first five year of its establishment. Then the rules and regulations of investment in power plant is investment friendly oriented. We are planning to invest in making a power plant named “P square” which will generate electricity by solar panel that will fulfill the increasing need of electric consumption of textiles companies located in Dhamrai, Savar areas. We are initiating to give electricity to our desired business customers in an ecofriendly way (partly) generating electricity from solar panels and in the long run with other alternatives of electricity production in an eco-friendly process.
After research in our targeted market, we have found that there is a need in the market for more electricity because of high demand but inefficient electric supply from the government. Further the need for electric consumption in Dhamrai, Savar areas will increase in the future period, because the cost of goods production is increasing in market like China, because of their currency evolution with US dollars and the high demand for increase by the new generation of Chinese workers. So keeping all these opportunities for us to grab a market share in the electric service providing market, we have taken the venture to go into this lucrative segment where we can make profit and as well as help the society in a profitable and eco-friendly way. We also located our shirt comings which are, high cost and insufficiency in acquiring raw materials and machines, high initial investment and high cost of running the business, transportation cost and machineries plantation cost. So we can give our focus in overcoming our weakness to manage it to a manageable operating level by increasing our efficiency in our transportation process, effectively acquiring raw materials and decreasing our everyday variable cost.
Lastly, we have a goal to fulfill the demand of our business customers with both way profitability for us as well as our targeted customers. We will make a complete research on the profitable margin our desired business customers will gain after taking our service as noting goes ahead of making profits in the business arena, and we will make sure that our business customers will have the surety that they will be advantageous by taking the service from us.

Electricity is a key ingredient of socio-economic development of the country. Adequate and reliable supply of electricity is an important pre-requisite for attracting both domestic and foreign investment. The Government has given top priority to the development of the sector considering its importance in overall development of the country. The Government has set the goal of providing electricity to all citizens by 2020.
Power Division was established in 1998 under the Ministry of Power, Energy and Mineral Resources vide Cabinet Division Notification No. CD-4/1/94-Rules/23(100), dated 25 March 1998. It is entrusted with the responsibility of overall management of the power sector in Bangladesh.
Reliable supply of electricity is a pre-condition for poverty reduction and economic development. In Bangladesh, 47% of total populations have access to electricity but reliable and quality power is still a faraway. To alleviate poverty in the face of resource limitations and high population density, Bangladesh requires an economic growth rate of more than 7% p. a. In order to achieve this growth rate, electricity growths need to be achieved by 10%. By best utilizing the natural, human and agricultural resources the desired pace of GDP growth could be attained by increasing electricity generation at much higher rate, which is the key target for development.
Government of Bangladesh has made vision and policy statement for power sector development. It is government's constitutional responsibility to provide electricity to all. In the vision statement it was mentioned that providing access to affordable and reliable electricity to all the people of Bangladesh by 2020 is a befitting national goal to usher the next millennium. One of the first step toward this goal is plan to set up the 1,000 MW power plant at Rooppur, 200 km (125 miles) northwest of the capital Dhaka.
In FY 2012-13 total generation capacity was 5, 376 MW (up to May) including 3,331 MW in public sector and 2045 Megawatt in private sector (including REB)
Actual demand could not be met for the last few years due to shortage of available generation capacity though the generation capacity increased slightly.
In the power division there are sustainable energy and renewable energy. As par our company we are in the renewable energy sector.
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geo thermal heat, which are renewable (natural replenished). Solar home system (SHS) is becoming increasingly popular and a project is taken to generate electricity from wind power. The main goal is to develop, disseminate, promote and extend the renewable energy technology to the rural people to meet their energy needs by using sustainable and environment friendly energy sources.
The specific goals are: * To increase access to electricity among the people living in off grid, isolated and in accessible remote areas by solar home systems (SHS). * Improve the standard of living and increase income by introducing solar power and wind power. * To increase the supply of power by installing offshore wind turbines. * Explore the potential of other firms of renewable energy such as micro hydro, tidal energy, bio-mass and bio-diesel to meet the power and energy demand of the rural people and * To explore the potential of municipal wastes to generate electricity.
Renewable Energy policy is adopted in 2008. The policy identifies the following major renewable energy sources namely – solar photo voltaic, solar thermal power/concentrating solar power, wind energy, biomass, biogas, micro hydro and minihydro.
The objectives of the policy are to harness the potential of RE, dissemination of RE technologies, facilitate both public and private investment in this sector, increase energy supplies to substitute indigenous non-renewable energy. To achieve the objective government has set targets for developing renewable energy resources to 5% of total power demand by 2015 and 10% by 2020.
Recent Initiatives on RE: * Present Solar Power Generation: 15-20 MW * PDB, REB and IDCOL are distributing Solar Home System (SHS) to the people living in the off-grid areas. IDCOL through different NGO has already distributed 4.5 lakhs SHS throughout the country. * PDB has already installed nearly 11 KW solar power to the CHT area, nearly 230 W solar power in Angorpot and Dahagram chitmahal Aarea , installed 115 W in the WAPDA office building. * A Solar Panel with capacity of 21.2 KW is installed at the Hon’ble Prime Minister's office. * Nearly 10MW solar plant will be installed by PDB in Sarihabari (2-4 MW), Rigional Training Office, Rajshahi (1 MW), Rajabarihat, Godagari (2-4 MW), Kaptai Power Plant (4-5 MW) in IPP model. Preparation of tender documents is underway. * PDPP has been prepared to cover 4 isolated islands under solar and wind power. * REB has taken project for Solar Irrigation System. 20 irrigation pumps will be brought under solar power under this project. * Installed wind mill at Kutubdia and Feni: 2MW * PDPP has been prepared for wind mapping. * 100 MW of wind power will be generated in the off-shore area of Anwara, Chittagong in IPP model. PQ has already been prepared, tendering is under process.
Govt. has exempted income tax for next 5 years from commercial production from RE.


The biggest problem that Bangladesh is facing at this time is consistent break down. And the government as ever is not ready to play any role to solve this problem. The economy of Bangladesh is suffering allot due to this problem. The unemployment ratio is climbing high and high.
We “P Square” are here to solve this problem. The bright future is to provide its customer with a new era technology system that is largely used all over the world.
We will provide the customer’s with electricity which have no cost except the initial investment. It will use the natural sun light it’s charging instrument. It can be used almost everywhere in Bangladesh.
Mission Statement
The P square is a solar power plant committed to providing you with paralleled services and amenities to help generating electricity to the textile industry in Bangladesh. The P square exemplifies modern State of the Art solar power plant equipment and innovative group exercise programs - all created to inspire you, challenge you, build and surpasses every expectation.
Vision Statement
To be the undisputed leader in generating electricity for the textile industry in Bangladesh.
Tag Line: “Zero Breakdowns. Full Productivity”
Key Products & Services
People in Bangladesh are growing in number at a fast rate. People here are being increasingly affected by neighboring countries of electricity consumption while on the run. This emerging environment shows that our business has all chances of growing in the future. Besides there are growing concerns for better health both in terms of environment which stands as a supporting field for our serving. It is certain that these trends in electricity consumption practices are likely to increase and so our scope for doing business.

As said earlier, there is no exclusive solar power plant in Bangladesh, which actually indicates that we will be the first to enter into the exclusive sector of the industry. There are however some competitors in the general sector of the industry. But these competitors produce electricity for household. Here we can gain a competitive advantage over them by developing a specific field for power plant, which they cannot copy or would not like to copy.
Strategic Goals and Objectives
Core Objective
Our purpose is simple. To provide electricity for every company in the textile industry in Bangladesh. For their need we will give 24 hours support for electricity. For the first time in Bangladesh, we are planting such a power plant which will create an opportunity for others to invest in power plant sector to give support to the other business sector

“P Square” has to follow an organizational structure, which shows the direct flow of decision, order, principle and implementation. Organization structure is given below:

Threat of New Entry
These are the threat of new entrant is in our segment of the market: * Initial investment is very high – Making a Power Plant is a new venture of high magnitude and a huge investment. It takes high time to acquire money of huge investment and long time for making investment plan. Further, we will invest high in research and development focusing our target in doing complete green business, with the alternative energy like solar system, energy from bio gas, wind energy etc. to be sustainable in the long run . So the investment is huge, which can be a discouraging sign for investors. * Long term break-even point – The initial investments as well as the daily operating investments will be high at the beginning of the business, so to come to a break-even point will take a long period of time. In one way it is a long term investment. So it is discouraging to many who want to initiate the business. * Psychology of our business man (Risk-Averse) - As an individual person we are risk avoiders, we think twice to start a new venture. So it is a huge step to come up with a mind to make a venture of huge investment. * Tax rebate – The government has a tax rebate of 15 years for the construction of a power plant, which is a high incentive for our competitor s to come to the market.
If we see from the eyes of investment and break-even point, the threat of new entry is pretty high, but Tax rebate from the government reduces the risk of new entry little in going for a new venture.
Bargaining Power of Buyer
Now to brief, the buyers can be categorized into 3. * Foreign Direct Investors- who make full investment to establish a textilefactory in Bangladesh. They will surely want power supply in continuous process throughout the day, so we will charge a price of one strategy to these kinds of consumers. * Joint-ventures- a way in which a foreign company ventures with a local company to run a business. They will surely need Power Supply when there is inefficiency, so we will make a different pricing chart for them. * Locals- the elite persons in our country, who start their own garments. Though there demand will be low, we will charge them by our standard of pricing.
The bargaining power of buyers is low, as they have a need for more electric powers in their factories, to meet the demand of the timely summation of goods to foreign buyers within the time limit of the contract and further more foreign investors are coming into the lucrative market of Bangladesh for its cheap labor force, so the demand for more electric power is increased.
Bargaining Power of Supplier
We will take our essential equipment from local suppliers like RahimAfrooz, Summit,energyPAC, IntraCo, Grameen Shakti. As there are many suppliers in dis industry, so the bargaining power of suppliers is low as we can switch one supplier to another form our equipment.
Degree of Rivalry
In the market we are in, we don’t have any direct competitors but we do have few strong indirect competitors.
Rahimafrooze- Rahimafrooze operates in power and energy. It sells batteries, emergency power products, diesel as well as gas generators, lighting products, electrical accessories, solar systems, energy solutions using compressed natural gas, and power rectifiers.
Summit Power- Summit Power Limited (SPL) is the first independent power company in the private sector. It generates electricity and sells; the company is also enlisted in the stock market.
The competitive rivalry of ours is to a moderate level, because there are several competitors of us, but none of them are producing exactly what we are planning to produce. In addition to that, their target market is different from us.

Threat of Substitution
These are some product substitute that may hinder our project implementation of making our power plant * Industrial Battery * Diesel and Gas Generators * IPS * Private sector Power Company
The threat is moderate, as we don’t have any direct.
Company’s Core Competencies
A core competency is a specific factor that a business sees as being central to the way it, or its employees, works. It fulfills two key criteria: * It is not easy for competitors to imitate * It can be leveraged widely to many products and markets.
Rural electrification Board (REB), Atomic Energy Commission (AEC), Local Government Engineering Department (LGED), and Grameen Shakti (GS) are our main competitors. They are giving electricity to mainly households, small industries and companies. But the target group of our company is mainly the companies situated in DhamraiSavar, Nobinagar areas. So, our main core competency is our target customer. We are focusing in a very small niche of customer; as a result we will be able to satisfy the demand.

Company Analysis
To better understand the activities through which a firm develops a competitive advantage and creates shareholder value, it is useful to separate the business system into a series of value-generating activities referred to as the value chain. In his 1985 book Competitive Advantage, Michael Porter introduced a generic value chain model that comprises a sequence of activities found to be common to a wide range of firms. Porter identified primary and support activities as shown in the following diagram:

Generating Electricity

Generating Electricity

Primary Activity
Primary Activity

Supporting Activity
Supporting Activity

Operational department
Operational department
Functional department
Functional department
Marketing department
Marketing department
HR department
HR department

Steps in Value chain
The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities, thereby resulting in a profit margin.
The primary value chain activities are: * Inbound Logistics: the receiving and warehousing of raw materials and their distribution to manufacturing as they are required. * Operations: the processes of transforming inputs into finished products and services. * Outbound Logistics: the warehousing and distribution of finished goods. * Marketing & Sales: the identification of customer needs and the generation of sales. * Service: the support of customers after the products and services are sold to them.
These primary activities are supported by: * The infrastructure of the firm: organizational structure, control systems, company culture, etc. * Human resource management: employee recruiting, hiring, training, development, and compensation. * Technology development: technologies to support value-creating activities. * Procurement: purchasing inputs such as materials, supplies, and equipment.
The firm's margin or profit then depends on its effectiveness in performing these activities efficiently, so that the amount that the customer is willing to pay for the products exceeds the cost of the activities in the value chain. It is in these activities that a firm has the opportunity to generate superior value. A competitive advantage may be achieved by reconfiguring the value chain to provide lower cost or better differentiation.
The value chain model is a useful analysis tool for defining a firm's core competencies and the activities in which it can pursue a competitive advantage as follows: * Cost advantage: by better understanding costs and squeezing them out of the value-adding activities. * Differentiation: by focusing on those activities associated with core competencies and capabilities in order to perform them better than do competitors.
Cost Advantage and the Value Chain
A firm may create a cost advantage either by reducing the cost of individual value chain activities or by reconfiguring the value chain.
Once the value chain is defined, a cost analysis can be performed by assigning costs to the value chain activities. The costs obtained from the accounting report may need to be modified in order to allocate them properly to the value creating activities.
Porter identified 10 cost drivers related to value chain activities: * Economies of scale * Learning * Capacity utilization * Linkages among activities * Interrelationships among business units * Degree of vertical integration * Timing of market entry * Firm's policy of cost or differentiation * Geographic location * Institutional factors (regulation, union activity, taxes, etc.)
A firm develops a cost advantage by controlling these drivers better than do the competitors.
A cost advantage also can be pursued by reconfiguring the value chain. Reconfiguration means structural changes such a new production process, new distribution channels, or a different sales approach. For example, FedEx structurally redefined express freight service by acquiring its own planes and implementing a hub and spoke system.
Differentiation and the Value Chain
A differentiation advantage can arise from any part of the value chain. For example, procurement of inputs that are unique and not widely available to competitors can create differentiation, as can distribution channels that offer high service levels.
Differentiation stems from uniqueness. A differentiation advantage may be achieved either by changing individual value chain activities to increase uniqueness in the final product or by reconfiguring the value chain.
Porter identified several drivers of uniqueness: * Policies and decisions * Linkages among activities * Timing * Location * Interrelationships * Learning * Integration * Scale (e.g. better service as a result of large scale) * Institutional factors
Many of these also serve as cost drivers. Differentiation often results in greater costs, resulting in tradeoffs between cost and differentiation.
There are several ways in which a firm can reconfigure its value chain in order to create uniqueness. It can forward integrate in order to perform functions that once were performed by its customers. It can backward integrate in order to have more control over its inputs. It may implement new process technologies or utilize new distribution channels. Ultimately, the firm may need to be creative in order to develop a novel value chain configuration that increases product differentiation.
Technology and the Value Chain
Because technology is employed to some degree in every value creating activity, changes in technology can impact competitive advantage by incrementally changing the activities themselves or by making possible new configurations of the value chain.
Various technologies are used in both primary value activities and support activities: * Inbound Logistics Technologies * Transportation * Material handling * Material storage * Communications * Testing * Information systems * Operations Technologies * Process * Materials * Machine tools * Material handling * Packaging * Maintenance * Testing * Building design & operation * Information systems * Outbound Logistics Technologies * Transportation * Material handling * Packaging * Communications * Information systems * Marketing & Sales Technologies * Media * Audio/video * Communications * Information systems * Service Technologies * Testing * Communications * Information systems
Note that many of these technologies are used across the value chain. For example, information systems are seen in every activity. Similar technologies are used in support activities. In addition, technologies related to training, computer-aided design, and software development frequently are employed in support activities.
To the extent that these technologies affect cost drivers or uniqueness, they can lead to a competitive advantage.
Linkages between Value Chain Activities
Value chain activities are not isolated from one another. Rather, one value chain activity often affects the cost or performance of other ones. Linkages may exist between primary activities and also between primary and support activities.
Consider the case in which the design of a product is changed in order to reduce manufacturing costs. Suppose that inadvertently the new product design results in increased service costs; the cost reduction could be less than anticipated and even worse, there could be a net cost increase.
Sometimes however, the firm may be able to reduce cost in one activity and consequently enjoy a cost reduction in another, such as when a design change simultaneously reduces manufacturing costs and improves reliability so that the service costs also are reduced. Through such improvements the firm has the potential to develop a competitive advantage.
Analyzing Business Unit Interrelationships
Interrelationships among business units form the basis for a horizontal strategy. Such business unit interrelationships can be identified by a value chain analysis.
Tangible interrelationships offer direct opportunities to create a synergy among business units. For example, if multiple business units require a particular raw material, the procurement of that material can be shared among the business units. This sharing of the procurement activity can result in cost reduction. Such interrelationships may exist simultaneously in multiple value chain activities.
Unfortunately, attempts to achieve synergy from the interrelationships among different business units often fall short of expectations due to unanticipated drawbacks. The cost of coordination, the cost of reduced flexibility, and organizational practicalities should be analyzed when devising a strategy to reap the benefits of the synergies.
Outsourcing Value Chain Activities
A firm may specialize in one or more value chain activities and outsource the rest. The extent to which a firm performs upstream and downstream activities is described by its degree of vertical integration.
A thorough value chain analysis can illuminate the business system to facilitate outsourcing decisions. To decide which activities to outsource, managers must understand the firm's strengths and weaknesses in each activity, both in terms of cost and ability to differentiate. Managers may consider the following when selecting activities to outsource: * Whether the activity can be performed cheaper or better by suppliers. * Whether the activity is one of the firm's core competencies from this stems a cost advantage or product differentiation. * The risk of performing the activity in-house. If the activity relies on fast-changing technology or the product is sold in a rapidly-changing market, it may be advantageous to outsource the activity in order to maintain flexibility and avoid the risk of investing in specialized assets. * Whether the outsourcing of an activity can result in business process improvements such as reduced lead time, higher flexibility, reduced inventory, etc.
Existing Core Competencies
A core competency is a specific factor that a business sees as being central to the way it, or its employees, works. It fulfills three key criteria: * It is not easy for competitors to imitate. * It can be leveraged widely too many products and markets. * It must contribute to the end consumer's experienced benefits.
A core competency can take various forms, including technical/subject matter know-how, a reliable process and/or close relationships with customers and suppliers. It may also include product development or culture, such as employee dedication.
Core competencies are particular strengths relative to other organizations in the industry which provide the fundamental basis for the provision of added value. Core competencies are the collective learning in organizations, and involve how to coordinate diverse production skills and integrate multiple streams of technologies. It is communication, an involvement and a deep commitment to working across organizational boundaries. Few companies are likely to build world leadership in more than five or six fundamental competencies.
We think that the location of our plant is very close to the industries those who are going to take electricity from us. If we can target those industries and give them quality service with our product that is electricity, and then may be in long run those customers can be justified as a loyal customer for us. As we are giving 24 hours electricity supply for their industry they will feel much more comfort than before and they can shut down their own power plant.
Future Competencies
As we are the first mover of this sector in this area so here we got the opportunity to get first mover advantage in this business. There is a huge opportunity for us in near future to expand this business in different part of industrial area in Bangladesh, like Dhamrai Savar and Chittagong.

Production Plan
Product/Service Overview
As we all know that electricity is much more service than product. We will give 24 hours service for electricity. We will provide electricity lower cost per KW than the industries were producing before in their own plant.
As we are producing electricity for 24 hours the industries can do their overtime anytime they want. So they produce their goods just in time.
Equipment and Machinery * Solar module * Battery * Charge controller * Inverter * Wires Modules / Panels
A module is essentially a flat panel, packaged generator made up of several or many individual interconnected cells encased within a weatherproof panel with an anodized aluminum frame. A module needs to be tough enough to withstand high levels of ultraviolet radiation, moisture and extreme temperatures. Several or many modules can be interconnected to provide a residential or commercial building’s power supply or created a large power generation station (solar farm).
A module panel is made up of several components: * PV permeable Glass (anti-reflective coating) * EVA film (Ethylene-Vinyl-Acetate clear insulation, top layer) * Solar cells, which have been wired together in a string of cells * EVA film (Ethylene-Vinyl-Acetate clear insulation, bottom layer) * Tedlar film * Frame (usually anodized corrugated aluminum which are corrosion resistant and can withstand high winds) * Junction Box
Some module panels are designed with white separating borders between the cells, which is used to promote heat dissipation.
The components of the manufactured module panel, glass, aluminum and plastic, partially come from recycled material sources, and the panel components themselves can be recycled once the useful life of the module has been reached. Similarly, the mounting hardware is fabricated from aluminum and stainless steel, which also makes it recyclable. Silica, used in the manufacture of the photovoltaic cells and the glass, is a very abundant material: it is the second most common element on the earth’s surface. Thus, politically and socially the module panel is seen as a very positive product, especially when linked with its renewable energy function and purpose.
The flat panel module is usually mounted as an array of motorized frames that tracts the movement of the sun during the day (photovoltaic farm) or as an array across a roof (individual systems).
When used on a building, the PV panels (modules) are usually anchored to the roof of a structure but can also be installed along the walls of a structure. Optimally, the panels are of a design type and are installed in a position that they can absorb direct, diffuse and reflected sunlight. For instance, some thin film panels are designed as cylindrical modules and are installed in a position above the roof's surface, which then captures sunlight across a 360° photovoltaic surface (it also beneficial to paint the roof surface white). The panels can also be located on the ground next to a structure and in some ways it is very beneficial: one is not reliant upon the existing orientation and angle of the roof, the panels are easier to access for maintenance, easier to wash / clean, easier to access to remove snow, and easier to adjust the tilt angle during the course of the year. However, the longer the wire from the panel array to the inverter the greater the voltage loss.
The placement of the module panels is based on orientation (compass direction), and azimuth (measurement of the position of the Sun from the reference observation point / horizon, which
How to determine the amount of necessary square footage for placement of a module panel array on the roof? If the example is 16 panels layed out in two rows of 8 panels in each row, one row above the other: * The panels selected are 62.0 inches x 32.5 inches * The width of the 8 module array is 8 x 32.5 inches = 260 inches * The length of the array is twice the 62.0 inches, which is 124 inches * The area in square inches is 260 inches x 124 inches = 32,240 sq. inches * There are 144 inches in a square foot (12 inches x 12 inches) * Divide 32,240 by 144 to determine the square footage, which is 32,240 ÷ 144 = 223.9 * Approximately 224 square feet (10 feet by 22 feet) of unobstructed roof space is required to install the 16 panels in 2 rows, one above the other. * How to determine the amount of necessary square meters for placement of a module panel array on the roof? If the example is 16 panels layed out in two rows of 8 panels in each row, one row above the other: * The panels selected are 1,575 mm x 826 mm * The width of the 8 module array is 8 x 826 mm = 6,608 mm * The length of the array is twice the 1,575, which is 3,150 mm * The area in square millimeters is 6,608 x 3,150 = 20,815,200 * There are 1,000,000 mm in a square meter (1,000 mm x 1,000 mm) * Divide 20,815,000 by 1,000,000 to determine the square meters, which is 20,815,200 ÷ 1,000,000 = 20.8 * Approximately 20.8 square meters of unobstructed roof space is required to install the 16 panels in 2 rows, one above the other.

Products and Manufacturing Process

Process of producing electricity from solar energy
At first the solar panel is absorbing the solar energy from the sun and that energy is going to the sharge controller and from that charge controller the energy is going to the battery system from there the energy is going to the inverter and here the energy is transferring in to electricity.
Research and Development
We research for the improvement of our plant ant the betterment for our plant in the future. As we know that in our business there is no scope for us to innovate anything new which will be a substitute of electricity. So we will stick to one product which is electricity but we will always try to find out how cheaply we can produce electricity and produce to our customer.
Quality Assurance
We would follow all the legal requirements that are applicable in Bangladesh. There will be miss guidance from us. We will take legal permission from the government and we will have a legal advisor.

Marketing Environment Analysis
* Stability: Bangladesh’s political instability is one of the major barriers of the business. However recently after the National Election-2013 political situations seems more or less stable as there is less strike and unrest amongst the people. * Key Personals: Key personals for doing business in Bangladesh have always been political leaders. They have enormous influence on the system that they can manipulate anything and everything. Even if we are ethical organization we will have to keep good relationship with them so that they won’t be against our policy.
* Growth of Economy: Bangladesh‘s economy is very strong. Even though, most of the western country are facing recession; Bangladesh’s GDP is constantly increasing which economists called as Bangladesh Paradox. * Shifting of occupation: Slowly but steadily Bangladesh’s economy is moving towards industry from the agriculture. And most of the contribution goes to the garments industry of our country.
* Infrastructure: Although the technological infrastructure of our country is not satisfactory we have enough scope to build the infrastructure as the Govt. is giving incentives for doing so. * Techno-friendliness: Usually Bangladeshi people are not techno-friendly. But recently due to high demand of job many people are getting used to the technology. Also with this huge population it’s easy to find out many specialists in this sector. * Education: Education regarding technology is increasing day by day. Graduates from the technical sectors are enhancing year after year. These reflect that our country has enough number of technical expertises. Talented engineers graduated from BUET, IUT, MIST, DU, KUET can employed in our company and these talents can give us superior service quality. Legal * Tax Rebate: Company investing and producing power will get the tax rebate fully up to 15 years according to the law of Bangladesh. This actually has done to encourage the investors to invest in power plant. * Rule and Regulation: On one hand, rules and regulations of Bangladesh are not that much of investment friendly in some sectors (like telecom operator). On the other hand, rules and regulations are investment oriented in other sectors like agriculture and power plant.
* Global-warming: Global-warming issue gives us the potentiality to focus on eco friendly business. Because we are the one who will be affected most by the global- warming so if we can show to the world that we ourselves affect less Ozone-layer destruction we will get the media attention of the world.

SWOT Analysis

* Work force – We will be focusing on recruiting highly knowledgeable and experienced work force to work in our Power Plant. They will be highly qualified in their respective segments they will be working on. * Strong Research and Development – We will be focusing on investing on high on R & D department. They will be focusing on innovating and improving new ways to create electricity in an eco friendly way, for sustainability in the longer run. * Low environment hazardous gas emission – As the trend of world is changing to create sustainable ecofriendly energy, we are creating energy from solar, bio gas, and coil( which will be highly refined to emit least carbon), we will have a strong brand image in the eye of our consumers and the government who is prompting highly for sustainable energy.
* High cost and insufficiency in acquiring raw materials and machineries – the cost of acquiring solar panels and coal is high and the raw materials for making bio gas in insufficient.

* High initial investment and high cost of running the business- Which indicates the business is of long term investment and to come to break even we to wait for approximately 4 to 5 years. * Transportation Cost and machineries plantation cost – The cost will be high because of big machineries to be transported and planting machineries in right places will be a costly task. * Long time – To complete the whole project of building a Power Plant is a long time acquiring project, which need meticulous engineering and time frame to complete. * Limitations of land space – Building a Power Plant need huge land space at once, which will be a tough job to acquire in our country.
* Tax Rebate – Government has taken initiation of tax rebate of first 15 years to venturing into making Power Plant. This is a high initiation for us to run the business for 15 years without taxation, and build a strong platform to run the business years ahead when the tax will be imposed. * Cheap Labor - We have the advantage to get cheap labors for doing menial jobs as Bangladesh has high labor force. * Latitude Advantage – Our country is positioned in such a way in the globe that we get high degree of sunlight at day time which increases our capacity to store high solar energy at day time and increase our energy capacity. * High future increase in demand for electricity – We can estimate that there will be high demand for electricity in near future, as the labor cost in Chinese market is increasing because of the Chinese currency evaluation with U.S.A dollars and the garments of our country will have more export contracts from buyers, so to fulfill the demand they will need more electricity. * Electricity Shortage – Our government is inefficient in providing enough electricity to fulfill the whole demand in the market for the electricity in the EPZ areas, so there is always shortage and we can be the alternative source to fulfill the demand for the electricity.
* Political Situation of our country – The situation is mostly instable. We face the problems of Hartals which stoppage the whole market segments of ours, and then we can also be threatened by abrupt changes of rules and regulations of our country which can go against our benefits. * Entry of Competitors – The initial investment of entry is very high, this will discourage many investors. But many will be motivated to enter because of government tax rebate or because of less competition. * Dhaka Electricity Supply Company limited (DESCO) plans – DESCO has plans to import electricity from India, which will increase the electric capacity of our country, and this may hamper our business if DESCO supply the electricity in lower costs than ours. * Weather – The change in weather system will be a strong factor in acquiring energy. If the weather is gloomy we get less solar energy, which can reduce our energy storing capacity.

SWOT Aanlysis

Competitive Advantage
An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retains more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer support. Competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage.

There are two main types of competitive advantages: comparative advantage and differential advantage. Comparative advantage, or cost advantage, is a firm's ability to produce a good or service at a lower cost than its competitors, which gives the firm the ability sell its goods or services at a lower price than its competition or to generate a larger margin on sales. A differential advantage is created when a firm's products or services differ from its competitors and are seen as better than a competitor's products by customers.

Model of Competitive advantage
Additional Strategic Consideration

Strategic Group Analysis

A strategic group is a concept used in strategic management that groups companies within an industry that have similar business models or similar combinations of strategies.

* Solar PV System: Rural electrification Board (REB), Atomic Energy Commission (AEC), Local Government Engineering Department (LGED), and Grameen Shakti (GS) have installed (are in the process of installation of ) a number of solar PV systems in different parts of the country. REB has undertaken a pilot project for supply of solar electricity in some islands of one main river (Meghna) in Narshingdi district. Five types of PV systems are delivered to 1370 consumers.More than 500 potential consumers have been trained on the operation and maintenance of the entirePV system. This was conducted by BCAS and CMES experts.

* AEC initiated solar PV programme (SPV) in 1985. The systems installed over the period 1985-1994 are 9790 watt peak. Most of the systems are not functional at present because of the lack of fund for spare parts, maintenance and back-up service.

* LGED has so far installed SPV systems in 5 cyclone shelters, one at Cox’s Bazar, four at Patuakhali. According to LGED all the systems have been working satisfactory since their installation. During the year 1996-1997, GS has installed 67 units of solar home systems (SHS) at different districts of Bangladesh. This includes Fluorescent Tube lights, T.V. point, Fluorescent lamps etc. GS is planning to install a total of 400 under next phase of the solar PV development project.

* Solar Cookers: Institute of fuel Research and Development (IFRD) of BCSIR and Centre for mass Education in Science (CMES) are engaged in the development and dissemination of solar cookers. A low cost reflector type cooker developed by IFRD is a spun-aluminum parabolic reflector. It is light9 weight (2-3 Kgs), cheap and simple to construct, but the disadvantages are that it needs manual sun tracking frequently and the reflectivity deteriorates rather rapidly and cooking is interrupted by cloudy and hazy conditions. On a bright sunny day a 42 inch aperture spun aluminum cooker takes about three hours for cooking three items (rice, fish or meat, pulses) for a family of 5-6 members in Bangladesh. * Solar Oven and Dryer: Different models of solar ovens have been designed and constructed with locally available raw materials. The institute of Food Science and Technology (IFST) has developed a cabinet dryer for drying fruits; vegetables etc. by simply spreading a transparent cover over a box. These dryers are made of bamboo and polythene sheet.

* Solar Water Heater: This heater is designed and constructed by IFRD. It consists of coated flat plate which absorbs solar radiation, converts into heat and transfers the resulting heat to circulating water.


Market overview

Potential Customer
The main customers of “P square” are the companies and industries which are located in Dhamrai Savar, Nobinagar areas. Initially we will try to satisfy the need of electricity for at least 30 industries located in those areas.

Size and Growth of the Market
The size of the market for solar energy is huge. Bangladesh has made a big stride in the use of renewable energy with companies and charities and as a result doubled the number of solar-powered houses to nearly 800,000 in 2011. 75% of the households don’t have access to main electricity. So, many of them rely on solar energy. This same thing is applicable for big industries and companies. So, if we can satisfy the demand of electricity of those companies than the companies will be benefited as well as our business will be able to earn profit.

Sales and Marketing
Target Market: Our target customer is relatively small ( approximately 30 ) but doing our surveys and research we came to a conclusion that we will be able to catch up 100% market share here due to our product and promotional strategy . As our customer is large but small in numbers we won’t spend heavily on promotion and in other marketing tools. Here the marketing strategy will be a bit different and we will rely most in direct marketing.
Product Offering: We will offer three types of product. One is for the heavy user; here we will target the FDI companies. The next segment will be for the mid user and in this segment our target is the joint venture companies and the last package is mini package, for the small local companies.
Pricing Strategy: Price range will vary and customer will get discount for bulk amount of purchase. We assume that our sale will generate after the first three months from the setup of the machineries. This will be our loss for three months and no transaction of cash inflow during. We calculate that our customers are producing the electricity for their own factory by gas generator, which cost 62.5 tk. per kilowatt in one day. We will serve them at a cheaper rate so that their cost can be deducted with the ecofriendly way. We assume that our selling price will be 55 tk. per kilowatt per day which is the cheaper than them. So they will get it at a cheaper price with ecofriendly process.
Consumer Insight: Our target market is the big industries situated in SAVER. So we have targeted towards business people. The psychology of these business people is more rational than the regular customer. They will seek for the benefits they will get from our services. After getting our proposal they will take some time for their cost-benefit analysis. They will analyze whether our service is worth to them or not, will their cost be paid off? This is the single most questions that will play into their mind. So we have to show them the benefits they will get by using our service in a business point of view and that are maximizing profit.

Distribution:As we are targeting a niche market we will directly market the service towards our customers. As we are operating at a single place, we will not use any third party to deliver this service. We will have our specialized team who will be responsible for this. They will take care everything starting from the scratch.
Advertising/Product Promotion
Promotion: Since we are targeting small market we will not spend much on promotion. Our main promotional strategy will be direct marketing and to enhance our image in the market we will use some CSR and cause related marketing.
Local newspaper advertisement: we will post our company advertisement on local newspaper and on business journals that are popular in our targeted area. Though newspaper has a short span of life but this is one of the most effective way to cath the attention of our target customers who are businessperson. For example, The Daily Star, ProthomAlo, KalerKontho- we will give ads on the 10 inch colorful ad first page and last page of these newspapers. We will also give black-white ads in the business page of those newspapers. In addition to that we will also provide our print ads to create awareness.
Leaflets: to promote our product we will distribute colorful informative and creative designed leaflets in in front of masque in the jummah day.
Billboard on the highway: there will be colorful billboards on the way to Dhamrai Savar. From tongi bridge to Dhamrai Savar we will have one billboard after each 500 meters and in the industrial area there will be some more. This will create attention and recognition of our service.
Posturing: some postering will make awareness of our service in the targeted area. There will be colorful informative posters in that zone.
Transit ad (color the bus as a symbol of our product): we will post advertisement in the bus those are used for the garments purpose along with this we will also post on some more like Volvo, Torongo etc.
Direct marketing: AS our business is the B2B business we will directly communicate with our customers through email, telephone etc. We will recruit some marketer who will have good persuasive communication skills. We will send them to our potential customer’s office. They will carry on seminars their and expose the concealed needs of our customers. Beside this we will invite all the targeted company’s owner to our plant for a lunch. Here we can show them the entire plant and can arrange for a seminar this can create credibility of our project which will help us for doing business with them.
CSR: another important tool to promote and make space in the consumers mind. This gives a clear advantage to differentiate from others. As nonrenewable energy is limited and is not healthy for the environment our main CSR campaign will be “GO GREEN “.This will create an distinctive image of our company and it will help in both way to make profit in business and at the same time it is good for the environment. In our CSR “GO GREEN” campaign we will declare that, for each kilowatt electricity we sale we will plant one tree for that. In this way people will think that if they are part of our company they are helping the environment to some extent. Along with this campaign we will raise our voice against eve teasing, education for children etc.
Sponsorship: to establish ourselves a responsible trustworthy organization we will sponsor some event which will cut off the shadows and put all the focus of our customers on us. In order to increase awareness we will provide logistic support to the brightest student from each class each year.
Cause related marketing: In order to increase the image of the brand we will also do Cause related marketing by associating the brand with different social issue such as AIDS, against eve teasing, green marketing etc. This strategy will help us to gain the market acceptance and increase the image of the product which in turn makes the product more acceptable to the customers.
Brand element: * Logo: WE WILL have a distinct type of elegant logo which is not overdone and will represent a sincere image. * Brand personality: brand personality will be strong, responsible, and accountable. * Brand character: we will make a brand character which will help us to make brand recognition and recall. there will be a character let’s say aman with a
Brand image: In order to create a successful brand we need to create a distinctive brand image in the minds of the target customer. The ultimate Brand image is dependent on Brand attributes and Brand Benefits. * Brand promise: constant power supply without any fluctuation of voltage.
Brand positioning: here our customer is business people and our service is generic and keeping this on mind we have to make the strategy and make them feel the way we want our service to be felt. Right now we have targeted only the Dhamrai Savar area but after doing here a successful business we will expand into the other areas and that is why it is necessary to set a good positive impression into people’s mind.
Customer service * Specialized team: we have our well trained specialized team who will setup and take care everything on this issue. * Hotline 24X7: we will provide 24 hours of service and to ensure uninterrupted supply we always have specialized team whom you can contact anytime via our hotline numbers and we are promised to take care of the situation within 30 minutes. As we are a service providing company it’s very important to satisfy the customers by providing what they need technically. * Free servicing: we will visit company and check the whole electric line and will provide free servicing. This will put an extra value to our service.

Projected Startup Costs Initial Land Purchase | 14,00,00,000 | Personal Properties | 12,80,00,000 | Company Vehicles | 1,00,00,000 | Marketing Budget | 1,00,00,000 | Miscellaneous unforeseen Costs | | Equipments:Solar moduleBatteryCharge controllerInverter | 18,00,00054,00,0004,50,0002,43,50,000 | Total Startup Costs | 32,00,00,000 |

Assumptions * Solar Energy Farm, Inc. will have an annual revenue growth rate of 3%-5% per year. * The Owner will solicit Tk 128,000,000 of equity funds to develop the business. * The Company will invest 25% of its after-tax profits back into the Company’s operating infrastructure.

Fixed cost: | | Variable cost: | | Land | 140,000,000.00 | Salary | 26,640,000.00 | Building | 20,000,000.00 | Wages | 1,320,000.00 | Solar panel | 12,600,000.00 | Maintenance | 5,000,000.00 | Motor vehicle | 10,000,000.00 | Marketing plan | 10,000,000.00 | Inverter | 120,000,000.00 | R & D | 5,000,000.00 | Charge controller | 300,000.00 | Training cost | 500,000.00 | Battery | 3,600,000.00 | Water & gas | 110,000.00 | Office furniture | 5,000,000.00 | Convenience | 150,000.00 | | | It equipment cost | 2,000,000.00 | | | Miscellaneous | 500,000.00 |

Our initial invest is 320,000,000 tk. we will take loan about 60% from the bank and rest will be given by thepartners of the company. Our capital budgeting is 60-40 ratio which means that we will invest money 60% of the total investment from the bank and remaining 40% will collect from the partners.In our plant we can generate 6MB electricity which is our target to sell in the textile industry in dhamraisavar. This is out of the metropolitan area of Dhaka and government will support us by not taking the income tax for the first 15 years. The obligation will increase our profit.
We assume that our sale willgenerate after the first three months from the setup of the machineries. This will be our loss for three months and no transaction of cash inflowduring.We calculate that our customers are producing the electricity for their own factory by gas generator, which cost 62.5 tk. Per kilowatt in one day. We will serve them at a cheaper rate so that their cost can be deducted with the ecofriendly way. We assume that our selling price will be 55 tk. Per kilowatt per day. Which is the cheaper than them. So they will get it at a cheaper price with ecofriendly process.
We have a huge initial investment because the setup cost for the solar power plant is very high. But in the long run we will with profit because we do not have cost for raw material as we are using the sun light for our production. Now the fixed and other cost has been given below:

Income Statement

| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Sales | 38,016,000 | 42,768,000 | 73,180,800 | 85,536,000 | 87,436,800 | 93,139,200 | 94,089,600 | 94,279,680 | 94,659,840 | Expences | | | | | | | | | | Salary | 26,640,000 | 26,640,000 | 26,640,000 | 29,891,580 | 29,842,780 | 29,842,780 | 29,842,780 | 29,842,780 | 29,842,780 | Wages | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | Maintenance | 5,000,000 | 4,000,000 | 3,500,000 | 3,856,000 | 3,536,000 | 2,205,000 | 1,225,000 | 1,156,000 | 1,023,800 | Marketing plan | 10,000,000 | 5,000,000 | 2,000,000 | 1,500,000 | 500,000 | 100,000 | 35,000 | 32,000 | 31,000 | R & D | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 1,500,000 | 1,256,000 | 1,159,000 | 1,000,000 | Training cost | 500,000 | 400,000 | 400,000 | 370,000 | 285,000 | 100,000 | 88,000 | 85,000 | 83,000 | Water & gas | 110,000 | 98,000 | 105,000 | 115,000 | 115,000 | 110,000 | 118,000 | 115,000 | 123,000 | Convenience | 150,000 | 150,000 | 175,000 | 177,000 | 181,000 | 180,000 | 175,000 | 195,000 | 187,000 | It equipment cost | 2,000,000 | 1,200,000 | 1,020,000 | 1,002,000 | 980,000 | 580,000 | 475,000 | 328,000 | 287,300 | Miscellaneous | 500,000 | 400,000 | 505,000 | 472,000 | 306,000 | 229,000 | 201,000 | 198,200 | 186,300 | Total Expences | 362,720,000 | 44,208,000 | 40,665,000 | 47,303,580 | 42,065,780 | 36,166,780 | 38,335,780 | 34,430,980 | 34,084,180 | | | | | | | | | | | Net Profit/Loss | -13,204,000 | -1,440,000 | 32,515,800 | 38,232,420 | 45,371,020 | 56,972,420 | 55,753,820 | 59,848,700 | 60,575,660 |

Cash Flow Statement

| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Cash outflow: | | | | | | | | | | Land | 140,000,000 | | | | | | | | | Building | 20,000,000 | | | | | | | | | Solar panel | 8,820,000 | | | | | | | | | Motor vehicle | 7,000,000 | | | | | | | | | Inverter | 84,000,000 | | | | | | | | | Charge controller | 210,000 | | | | | | | | | Battery | 2,520,000 | | | 3,600,000 | | | 3,600,000 | | | Office furniture | 5,000,000 | | | | | | | | | Interest Exp. | 9,600,000 | 9,600,000 | 9,600,000 | 9,600,000 | 29,600,000 | 9,600,000 | 9,600,000 | 9,600,000 | 9,600,000 | Salary | 26,640,000 | 26,640,000 | 26,640,000 | 29,891,580 | 29,842,780 | 29,842,780 | 29,842,780 | 29,842,780 | 29,842,780 | Wages | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | 1,320,000 | Accounts receivable | | - | 2,534,400 | 1,029,600 | 158,400 | 475,200 | 79,200 | 15,840 | 31,680 | Maintenance | 5,000,000 | 4,000,000 | 3,500,000 | 3,856,000 | 3,536,000 | 2,205,000 | 1,225,000 | 1,156,000 | 1,023,800 | Marketing plan | 10,000,000 | 5,000,000 | 2,000,000 | 1,500,000 | 500,000 | 100,000 | 35,000 | 32,000 | 31,000 | R & D | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 1,500,000 | 1,256,000 | 1,159,000 | 1,000,000 | Accounts payable | - | 21,975,000 | 8,790,000 | 6,592,500 | 6,103,235 | 221,465 | 99,460 | 11,450 | 14,200 | Cash in bank | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | withdraw money | | | | | | 26,831,590 | 12,498,655 | 21,081,195 | 16,544,445 | Depreciation | 14,891,000 | 14,891,000 | 14,891,000 | 14,891,000 | 14,891,000 | 14,891,000 | 14,891,000 | 14,891,000 | 14,891,000 | Training cost | 500,000 | 400,000 | 400,000 | 370,000 | 285,000 | 100,000 | 88,000 | 85,000 | 83,000 | Water & gas | 110,000 | 98,000 | 105,000 | 115,000 | 115,000 | 110,000 | 118,000 | 115,000 | 123,000 | Convenience | 150,000 | 150,000 | 175,000 | 177,000 | 181,000 | 180,000 | 175,000 | 195,000 | 187,000 | It equipment cost | 2,000,000 | 1,200,000 | 1,020,000 | 1,002,000 | 980,000 | 580,000 | 475,000 | 328,000 | 287,300 | Miscellaneous | 500,000 | 400,000 | 505,000 | 472,000 | 306,000 | 229,000 | 201,000 | 198,200 | 186,300 | Total outflow | 353,261,000 | 100,674,000 | 76,880,400 | 89,416,680 | 73,218,415 | 88,586,035 | 85,504,095 | 80,430,465 | 75,565,505 | Cash inflow | | | | | | | | | | Investment | 320,000,000 | 60,899,750 | 20,002,950 | 20,927,020 | | | | | | Sales | 42,395,000 | 42,768,000 | 73,180,800 | 85,536,000 | 75,337,245 | 93,139,200 | 94,089,600 | 94,279,680 | 94,659,840 | Accounts receivable | - | 1,685,500 | | | | | | | | Total inflow | 362,395,000 | 105,353,250 | 93,183,750 | 106,463,020 | 75,337,245 | 93,139,200 | 94,089,600 | 94,279,680 | 94,659,840 | Cash | 9,134,000 | 4,679,250 | 16,303,350 | 17,046,340 | 2,118,830 | 4,553,165 | 8,585,505 | 13,849,215 | 19,094,335 |

Balance sheet

| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Current Asset: | | | | | | | | | | Cash | 9,134,000 | 4,679,250 | 16,303,350 | 17,046,340 | 2,118,830 | 4,553,165 | 8,585,505 | 13,849,215 | 19,094,335 | Cash in bank | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | Account receivable | 5,249,500 | 3,564,000 | 6,098,400 | 7,128,000 | 7,286,400 | 7,761,600 | 7,840,800 | 7,856,640 | 7,888,320 | Prepaid insurance | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | Total Current Asset | 29,383,500 | 23,243,250 | 37,401,750 | 39,174,340 | 24,405,230 | 27,314,765 | 31,426,305 | 36,705,855 | 41,982,655 | Fixed Asset | | | | | | | | | | Tangible: | | | | | | | | | | Land | 140,000,000 | 140,000,000 | 140,000,000 | 140,000,000 | 140,000,000 | 140,000,000 | 140,000,000 | 140,000,000 | 140,000,000 | Building | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | less: Acc.Dep-building | 400,000 | 800,000 | 1,200,000 | 1,600,000 | 2,000,000 | 2,400,000 | 2,800,000 | 3,200,000 | 3,600,000 | | 19,600,000 | 19,200,000 | 18,800,000 | 18,400,000 | 18,000,000 | 17,600,000 | 17,200,000 | 16,800,000 | 16,400,000 | Motor vehicle | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | less: AccDep-Motor vehicle | 1,000,000 | 2,000,000 | 3,000,000 | 4,000,000 | 5,000,000 | 6,000,000 | 7,000,000 | 8,000,000 | 9,000,000 | | 9,000,000 | 8,000,000 | 7,000,000 | 6,000,000 | 5,000,000 | 4,000,000 | 3,000,000 | 2,000,000 | 1,000,000 | Inverter | 120,000,000 | 120,000,000 | 120,000,000 | 120,000,000 | 120,000,000 | 120,000,000 | 120,000,000 | 120,000,000 | 120,000,000 | less: accdep | 10,800,000 | 21,600,000 | 32,400,000 | 43,200,000 | 54,000,000 | 64,800,000 | 75,600,000 | 86,400,000 | 97,200,000 | | 109,200,000 | 98,400,000 | 87,600,000 | 76,800,000 | 66,000,000 | 55,200,000 | 44,400,000 | 33,600,000 | 22,800,000 | Charge controller | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | 300,000 | less: accdep | 27,000 | 54,000 | 81,000 | 108,000 | 135,000 | 162,000 | 189,000 | 216,000 | 243,000 | | 273,000 | 246,000 | 219,000 | 192,000 | 165,000 | 138,000 | 111,000 | 84,000 | 57,000 | Battery | 3,600,000 | 3,600,000 | 3,600,000 | 3,600,000 | 3,600,000 | 3,600,000 | 3,600,000 | 3,600,000 | 3,600,000 | less: accdep | 1,080,000 | 2,160,000 | 3,240,000 | 1,080,000 | 2,160,000 | 3,240,000 | 1,080,000 | 2,160,000 | 3,240,000 | | 2,520,000 | 1,440,000 | 360,000 | 2,520,000 | 1,440,000 | 360,000 | 2,520,000 | 1,440,000 | 360,000 | Office furniture | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | less: accdep | 450,000 | 900,000 | 1,350,000 | 1,800,000 | 2,250,000 | 2,700,000 | 3,150,000 | 3,600,000 | 4,050,000 | | 4,550,000 | 4,100,000 | 3,650,000 | 3,200,000 | 2,750,000 | 2,300,000 | 1,850,000 | 1,400,000 | 950,000 | Solar panel | 12,600,000 | 12,600,000 | 12,600,000 | 12,600,000 | 12,600,000 | 12,600,000 | 12,600,000 | 12,600,000 | 12,600,000 | less: accdep | 1,134,000 | 2,268,000 | 3,402,000 | 4,536,000 | 5,670,000 | 6,804,000 | 7,938,000 | 9,072,000 | 10,206,000 | | 11,466,000 | 10,332,000 | 9,198,000 | 8,064,000 | 6,930,000 | 5,796,000 | 4,662,000 | 3,528,000 | 2,394,000 | TotalFixed Asset | 325,992,500 | 304,961,250 | 304,228,750 | 294,350,340 | 264,690,230 | 252,708,765 | 245,169,305 | 235,557,855 | 225,943,655 | Liabilities: | | | | | | | | | | Current Liability: | | | | | | | | | | Acoounts Payable | 43,950,000 | 21,975,000 | 13,185,000 | 6,592,500 | 489,265 | 267,800 | 168,340 | 156,890 | 142,690 | Salary palayable | 2,220,000 | 2,220,000 | 2,220,000 | 2,490,965 | 2,490,965 | 2,490,965 | 2,490,965 | 2,490,965 | 2,490,965 | Wage payable | 110,000 | 110,000 | 110,000 | 110,000 | 110,000 | 110,000 | 110,000 | 110,000 | 110,000 | Total current liablity | 46,280,000 | 24,305,000 | 15,515,000 | 9,193,465 | 3,090,230 | 2,868,765 | 2,769,305 | 2,757,855 | 2,743,655 | Long term liability: | | | | | | | | | | Long term loan | 192,000,000 | 182,400,000 | 172,800,000 | 163,200,000 | 133,600,000 | 124,000,000 | 114,400,000 | 104,800,000 | 95,200,000 | Total liability | 238,280,000 | 206,705,000 | 188,315,000 | 172,393,465 | 136,690,230 | 126,868,765 | 117,169,305 | 107,557,855 | 97,943,655 | Total Liabilities | | | | | | | | | | Owner's Equity: | | | | | | | | | | Capital | 128,000,000 | 128,000,000 | 128,000,000 | 111,742,100 | 108,883,790 | 105,314,490 | 99,513,790 | 100,123,090 | 98,075,650 | Retain earnings | | | | 16,257,900 | 19,116,210 | 22,685,510 | 28,486,210 | 27,876,910 | 29,924,350 | Total Liabilities & Owner's Equity | 366,280,000 | 334,705,000 | 316,315,000 | 300,393,465 | 264,690,230 | 254,868,765 | 245,169,305 | 235,557,855 | 225,943,655 |

Financial Analysis

Fixed Cost = 311,500,000 tk.
Variable Cost = 51,220,000 tk.

Contribution Margin = Total Sales-Total Variable CostsTotal Sales
= 0.67 or 67%

Break-Even Sales = Fixed CostsContribution Margin=3115000000.67=466,787,956 tk.

Break-Even Volume = Break-Even SalesPrice=46678795655*360
= 23,575 kWhr per Year

Net Profit Percentage =Net ProfitNet Sales=-1320400038016000=-35% (Year-1)
Operating Expense Percentage =Total ExpensesNet Sales=5122000038016000=135% (Year-1)

Return on equity = 0.086833382 (avg.)
WACC = 6.034733353%
NPV = 44,341,076.49

Power supply industry is one of the major aspects for socio-economic development of any country. In Bangladesh,the importance is far greater not only for the socio-economic development but also for the economic development.As textile industry is one of the most revenue generating sector, but it is not earning as par its full potential because of the inefficient power supply system. Being the third world country, we donot have sufficient electricity to meet the demand of the textile sector.So, for the betterment of the situation we must find a renewable source of power supply. In order to serve the cause, we are coming upwith “P Square”, a power plant with renewable energy to produce electricity textile industries.…...

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