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Section A



1.1.0 EXECUTIVE SUMMARY

Enhle Industries is a wooden products manufacturing company established in 2004, and located about 100 km from , in the village of kanye in . It is doing business in the catering Industry. The company exists to design, manufacture and sell products such as tables, chairs, shade umbrellas and so on to catering firms and interested individuals for domestic purposes.



To meet the current growing need of the emerging and fast growing catering firms of Botswana, the company therefore intends to expand and venture into the manufacturing of round and multipurpose (domestic and industrial use) wooden tables, chairs and other products. This need was identified through a customer feedback analysis survey conducted by the company recently in the following locations: Kanye, , Molepulole, Mahalapye, Serowe and Mochudi. These areas have the leading population in which makes the company to be assured of the market.



Designing and Manufacturing of round tables, chairs and other wooden products will help us to gain a more competitive advantage over our competitors because we would be able to cater specifically to our clients needs as they will be no requirement to outsource or rent out any equipment required by our clients as we would construct and deliver directly to their needs. By building on past working relationships with current suppliers and other companies and by actively marketing to new potential customers of the company, we will be able to capture 15-20% of the market and the business share is expected to be about 35-40 % of the total market in .



The company is administratively located in kanye village at Mepakong ward, about 100 km from the capital town of . It is currently based in the resident of Zama Msibi one of the two partners. In addition to attending to the administration and Accounting duties also oversees the production processes to ensure quality products. His Partner, Shadrack Lungu, oversees the marketing sector, to ensure that the company is reaching its targeted customers timely and effectively by marketing itself directly to its customers through the press, electronic media and Internet to enhance its profile and products.



Enhle Industries has a strong management team who currently run the company. Zama N. Msibi, President and executive director, was previously the branch managing director of Skonkwane Stores (one of the most few reputable hardware shops in ).He has both the practical and the professional experience in the carpentry industry. Shadrack Lungu is the founder of Atoms Electrical Company and he is good in inventories, designing and marketing. Additional staff members include the marketing research manager whose duty is to collect evidence about what customers needs, Public relations manager who exists to monitor the company’s public image and reputation as well as the brand manager whose mission is to make sound decisions concerning a particular brand.



In the past two years this business has been doing well, specialising in making interior decorative African arts and selling to curio shops and interested individuals from the local community. Enhle industries began to gain more customers from catering firms who were requesting the company if it can make a 10 to 15 sitter round tables mainly for wedding ceremonies. This started as a small diverse for the company products but needles to say now it is the main reason the company want to expand and establish a big workshop. Enhle has established excellent working relations with both the catering firms and timber suppliers for the purpose of its products manufacturing. From suppliers the company is beginning to be considered as a company with the potential of having the buying power and thus they have started to give it a good discount. When piloting further this new product, over the last past month in one of the surrounding villages, the company managed to raise an amount of about P 26000 within the period of a month.



The company designs and manufactures wooden round multipurpose table and other wooden products mainly for the catering firms which exist to support wedding ceremonies in the of , the surrounding areas and as a whole. In the past these customers has been opting to using metal or plastic tables imported either form Zimbabwe or . Over the years customers’ interest has shifted from such products due to several reasons. Metal products are promptly to rust while the plastic ones are not able to resist the high climatic temperature conditions of and hence lose colour, shape and brake easily.



Enhle Industries is seeking growth capital in the amount of P300, 000, 00 for the purpose of purchasing operating tools such as industrial machines, raw materials and for training existing personnel in the use of those equipments and employing expertise on certain disciplines. Acquiring new technology will result in a 50% increase in production and will decrease the unit cost by 30 %.



This funding is needed in time for the equipment to be delivered in place by February 20, 2008, there is two months period between order placement and delivery date. Training of employees on the new technology is projected to cover a three week period following equipment placement.



The company is expected to breakeven 24-36 months after completion of the employee training period. Repayment of the loan and interest can begin promptly within 30 days of receipts of funds. The loan can be secured by Atoms Electrical Company that has a 2005 assessed valuation of P250, 000, 00.