EXECUTIVE
SUMMARY
XXX has been operating in Bahrain serving
local customers for about 10 years. Currently the Management Team is
considering new expansion plan to boost revenue. This strategy is supported by
the company current new built factory spare capacity. To implement this
expansion plan, the company will need to inject CAPEX of about BHD 80,000 to
add new wholesale product line and additional machine to increase chocolate
line production.
We have performed market assessment and the result shows that
there is a significant potential to serve the hotel industry in Bahrain thus
creating new distribution channels through hotel network in the area.
Additional USD 11 million potential market will be available through this hotel
and hospitality industry in Bahrain.
Another future potential that should be explored is exporting
the products to the neighborhood countries such as Saudi Arabia, Qatar and Uni
Arab Emirates. This longer-term target would be potential to grab some market
shares of totaling +/- USD 16 billion Total
Available Market (TAM).
At current state the Management will focus on local Bahrain
area and decided to perform preliminary feasibility study to assess the
financial profitability of its plan to expand its distribution channels and
establish new division which is called the Wholesale Department. Based on our
analysis, the plan is feasible considering the assumptions that are
incorporated in the model. The summary of stand-alone project analysis is shown
in table below:
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