Executive Summary of Quarry Business Plan in Nigeria.
Patilad Quarry produces and sells types and grades of gravel to public and private customers in Abuja and its surrounding State. We are into extraction of primary aggregates like sand and gravel, or hard rock. We are a very promising start up, and in just two months of operation, we operated at a profit of over 10million naira in sales selling over 2000 tons of gravel products.
Patilad Quarry manufactures numerous types of gravel products from base rock. These products are 3/4″ and 3″ ABC, 3/8″, 1/2″, 3/4″ 1-11/2″ screened and washed rock, 1″-3″ cobble, and 4″-6″ cobble. In addition, we provide, pre-washed sand, fill dirt, topsoil, bedding materials and crusher fines, along with various sizes of boulders. These products are sold to municipalities, business entities and end users in all the regions of our factory base, with much concentration around Abuja.
We rent a quarry site in a locally owned gravel pit in Kabusa, of over 15 years in FCT Abuja. We have greatly expanded the base of customers in the last three months.
To become the largest, most patronized Quarry Company in Nigeria.
- Our aim is to ensure we are providing the most up to date industry requirements in terms of both production and quality.
- We communicate our commitment to quality and customer appreciation through outstanding product quality, personal service and efficient delivery. Our commitment to our customers is reflected through honest and responsible business practices.
- Establish strategic working relationships with the major gravel and asphalt users in the region.
- Develop initial sales of 45.5k tons of gravels, resulting in first year sales of N122, 850, 000.
- To drive awareness and drive sales through referrals and word of mouth campaign.
- Continue to develop strategic working relationships with the 10-15 major institutional users.
- Continue to exploit the weakness inherent in the major area competitors to increase our presence in the local market area.
- Increase Sales over a three-year period to 77,000 tons per year.
KEYS TO SUCCESS
The keys to success for Patilad Quarry, Inc.:
- Establishing and maintaining working relationships and contractual agreements with municipality and business sector clients.
- Increasing our facility to maximum production within the next three years.
- Continuing our position as a customer-service-oriented company with competitive pricing.
- Increasing our profit margins and decreasing our production costs.
- Developing a presence in the asphalt market with area users.
Products and Services
Patilad Quarry Inc. deals exclusively in providing gravel and gravel-related products, including but not limited to the following:
3/4″ ABC, 3″ ABC, 3/8″ screened and washed rock, 1/2″ screened and washed rock, 3/4″ screened and washed rock, 1-11/2″ screened and washed rock, 1″-3″ cobble, 4″-6″ cobble, Pre-washed sand, Fill dirt, Topsoil, Bedding materials, Crusher fines, Boulders–various sizes
The company provides consulting and products. Customers can either provide their own trucks for products, or the company will deliver for a fee. Our standard average delivery fee is N15, 000 within Abuja with maximum related expenses of N8,000. The only product costs will be associated with production. Our company trucks can’t handle all deliveries, so our trucking is subcontracted to independent trucking companies.
In addition, we plan to provide SX grade asphalt.
The market for asphalt, gravel and gravel-related products has grown at a steady rate for the past seven years, and shows no signs of abating. There are trends toward both more institutional and private road development and more private end-user interest in quality and customer service. The market in construction products has grown at 12% per year for the past three years, and is projected to increase. More important is the increased need for road-related products. With an almost 45% population increase in Abuja in the last 10 years, it is estimated that over 40% of existing country roads will require maintenance in the next four years while 35% of roads are under construction. Likewise the massive building structures being erected in this region on monthly basis are a trigger for investors in this field.
The terrain of our business area is a region where “Word-of-Mouth” endorsements are unusually important. Most private end-user customers seem to choose their provider based on quick delivery, friendliness and customer service. Business and construction-related users choose based on the establishment of a mutually beneficial and trustworthy relationship.
Desmond Elliot – President, owner of an excavating, landscaping, trucking and road grading business, He has extensive experience in all phases of gravel and rock hauling, production and industry practices. He oversees operations of the corporation, and additionally, is a major consumer of plant products. He also will be a consumer of asphalt products.
Ifeanyiachukwu Igbokwe – Vice-president, sales and marketing, educated in natural resources management, and with extensive customer-service experience, He focuses on developing public accounts.
Mr Orisafemi Kush – Production, Mr. Femi has many years of crusher and asphalt-related experience.
Jackson Jumat – Delivery, Mr. Jumat has been instrumental in developing a revolutionary delivery plan to save money for our customers, as well as increase revenues for our trucking division.
Nathaniel Kush – Administration, He is responsible for the day-to-day company operation, as well as coordinating all the departments.
Mr Dayo Adetiloye – (B. Agric., MBA, and PMP): He has over 15 years’ experience in business management, business start-up dynamics, financial management of business and overall business growth and development. He is an alumnus of Enterprise Development Centre (EDC) of the Lagos Business School (LBS), Pan African University (PAU). He is our business development strategist and a strategic partner.
Patilad Quarry seeks N300 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital.
Funding for the launch of the business will be provided primarily by equity from the partners and investors.
Our market survey and research shows that Patilad Quarry holds the promise of reaching positive cash flow in its 7th month of operation. The advantage of this, is the provision it makes for accelerated repayment of its loan obligations, as well as for dividends to be paid to the owners.
Revenue is expected to amount to N120,000,000 and profit N90,000,000 in our first year of operation.
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