OUT AND ABOUT OPITLEX BLOCK MAKING MACHINE

MULTIPURPOSE
PROJECT PROPOSAL
COOPERATIVE COMPANY

Phone number: +260

E-mail: ……………@[Link]
 Project Preparers
This Project proposal is a result of the combined effort of the developer and the team of
consultants. The team of Consultants, Project Preparers, consist of Mr. Katuna thomas from
UNIVERSITY OF ZAMBIA, the lead author and an expert in Concrete Pipe and Block Industry
Apart from overall responsibility for the preparation of the Project proposal, Mr. Katuna was also
responsible for the social impact analysis component.

Signed by:

Contact:

E-mail:
TABLE OF CONTENT

1. project justification…………………………………………………………………………

2. Executive Summary………………………………………………………………………..

3. Our Products and Services…………………………………………………………………

4. Our Mission and Vision Statement………………………………………………………..

5. Job Roles and Responsibilities…………………………………………………………….

6. SWOT Analysis…………………………………………………………………………….

7. MARKET ANALYSIS……………………………………………………………………

8. Our Target Market………………………………………………………………………..

9. SALES AND MARKETING STRATEGY………………………………………………

10. Sales Forecast……………………………………………………………………………..

11. Publicity and Advertising Strategy……………………………………………………..

12. Our Pricing Strategy…………………………………………………………………….

13. Startup Expenditure (Budget)…………………………………………………………..

14. Sustainability and Expansion Strategy…………………………………………………

1.0 Project Justification

Cement bricks manufacturing machine business is part of the Concrete Block industry and
players in this industry primarily manufacture concrete bricks and blocks. Concrete brick and
block production mainly includes structural blocks, decorative blocks and pavers, bricks and
miscellaneous concrete products. Products made by this industry are heavily used in
infrastructure and residential construction.

While concrete blocks machine is used across board in Zambia, concrete blocks are especially
reliant on demand from infrastructure markets such contraction of buildings and bridges. In
Zambia it is estimates that the industry’s sustained growth had partially resulted from these key
markets, which have led industry revenue to rise over the five years to 2020.

Moving forward, construction markets are expected to continue their steady growth. As a result,
Opitlex Solution Limited expects industry revenue to continue increasing. The Concrete Block
manufacturing industry that cement bricks manufacturing business is a part of is indeed a large
industry and pretty much active in most countries of the world.

Research carried out by Opitlex Solution Limited and its partners shows that the Concrete Block
manufacturing industry has a medium level of market share concentration, with the three largest
players generating an estimated 20.6 percent of industry revenue in 2019. The remainder of the
market is captured by a large number of small and medium-scale operators that service relatively
narrow geographical markets.

However, large-scale players maintain a presence across many regional markets. The report
further stated that over the past five years, ownership concentration within the industry has
increased due to acquisition activity in the Zambia’s building materials market.

This has typically involved the acquisition of local and regional players by larger companies
seeking to expand their operations, and large foreign owned manufacturing companies hoping to
gain a foothold in the Zambian market.
Over and above, the concrete block manufacturing industry is a profitable industry and it is open
for any aspiring entrepreneur to come in and establish his or her business; you can choose to start
on a small scale or you can choose to start on a large scale servicing a wide range of clientele in
the Zambian market space.

2.0 Executive Summary

OPITLEX COMPANY LIMITED is a registered cement bricks manufacturing company that

will be located in Shangombo District; in an ideal location, highly suitable for the kind of
manufacturing business we want to establish. We have been able to lease a facility that is big
enough (a 5 Hundred square foot facility) to fit into the kind of standard cement bricks
manufacturing company that we intend launching.

Opitlex Company Limited. will be involved in manufacturing different sizes and shapes of
concrete blocks and concrete bricks. We are set to service a wide range of clientele in and around
Shangombo District – Zambia.

We are aware that there are several large and small cement bricks manufacturing companies all
around Zambia, which is why we spent time and resources to conduct a thorough feasibility
studies and market survey so as to be well positioned in the market.

Opitlex Company Limited. will at all times demonstrate her commitment to sustainability, both
individually and as a firm, by actively participating in our communities and integrating
sustainable business practices wherever possible. We will ensure that we hold ourselves
accountable to the highest standards by meeting our customers’ needs precisely and completely
whenever they patronize our products.

Opitlex Solution Limited. will ensure that all our customers are given first class treatment
whenever they visit our factory. We have a CRM software that will enable us manage a one on
one relationship with our customers no matter how large they may grow to. We will ensure that
we get our customers involved when making some business decisions that will directly or
indirectly affect them.

Opitlex Solution Limited. is a family business that is owned by ………….. and his immediate
family members? ………………… has over 10 years of experience in the construction cum
concrete pipe and block manufacturing industry, working for some of the leading brands in
Zambia.

3.0 Our Products and Services

Opitlex Solution Limited. is in the concrete block manufacturing industry to service a wide range
of clients and of course to make profits, which is why we will go all the way to give our clients
options. We will do all that is permitted by the law of Zambia to achieve our business goal, aim
and ambition of starting the business.

Our product offerings are listed below;

 Manufacturing concrete blocks

 Manufacturing concrete bricks

4.0 Our Mission and Vision Statement

Our vision is to become the leading brand in the concrete block manufacturing industry in the
whole of Shangombo District –Zambia.

Our mission is to establish a world – class cement bricks manufacturing business whose products
will not only be retailed in Zambia, but also be exported to other provinces of the country.
Our Business Structure

Opitlex Solution Limited. does not intend to start a cement bricks manufacturing business like
the usual cottage business; our intention of starting a cement bricks manufacturing company is to
build a standard business whose products will be exported to other countries of the world.

We will ensure that we put the right structure in place that will support the kind of growth that
we have in mind while setting up the business. We will ensure that we hire people that are
qualified, honest, customer centric and are ready to work to help us build a prosperous business
that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior
management staff and it will be based on their performance for a period of ten years or more. In
view of that, we have decided to hire qualified and competent hands to occupy the following
positions;

 Chief Executive Officer (Owner)

 Factory Manager

 Human Resources and Admin Manager

 Sales and Marketing Manager

 Cement Bricks Machine Operator

 Accountants / Cashiers

 Customer Services Executive / Front Desk Officer

5.0 Job Roles and Responsibilities

 Chief Executive Officer – CEO:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching,

counseling, and disciplining managers; communicating values, strategies, and objectives;
assigning accountabilities; planning, monitoring, and appraising job results; developing
incentives; developing a climate for offering information and opinions.

Creates, communicates, and implements the organization’s vision, mission, and overall direction
– i.e. leading the development and implementation of the overall organization’s strategy.

Responsible for fixing prices and signing business deals

In authority of providing direction for the business

Responsible for signing checks and documents on behalf of the company

 Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the
organization

Maintains office supplies by checking stocks; placing and expediting orders; evaluating new
products.

Ensures operation of equipment by completing preventive maintenance requirements; calling for

repairs.

Defines job positions for recruitment and managing interviewing process

Carries out induction for new team members

Responsible for training, evaluation and assessment of employees

Responsible for arranging travel, meetings and appointments

Oversees the smooth running of the daily office activities.

 Factory Manager:

Responsible for overseeing the smooth running of the factory

Part of the team that determines the quantity of cement bricks and other products that are to be
produced

Maps out strategy that will lead to efficiency amongst workers in the factory

Responsible for training, evaluation and assessment of factory workers

Ensures that the steady flow of both raw materials to the factory and easy flow of finished
products to the market

Ensures operation of equipment by completing preventive maintenance requirements; calling for

repairs.

Ensures that the factory meets the expected safety and health standard at all times.

Interfaces with third – party suppliers (vendors) of raw materials

Controls cement bricks distribution and supply inventory

Supervises the workforce in the factory.

 Sales and Marketing Manager

Manages external research and coordinate all the internal sources of information to retain the
organizations’ best customers and attract new ones

Models demographic information and analyze the volumes of transactional data generated by
customer purchases

Identifies, prioritizes, and reaches out to new partners, and business opportunities et al

Identifies development opportunities; follows up on development leads and contacts; participates

in the structuring and financing of projects; assures the completion of development projects.

Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients

Develops, executes and evaluates new plans for expanding sales

Documents all customer contact and information

Represents the company in strategic meetings

Helps to increase sales and growth for the company

 Cement Bricks Machine Operators

Responsible for operating machines used in the manufacturing concrete blocks, concrete pipes
and concrete bricks

Assists in loading and unloading of concrete blocks, concrete pipes and concrete bricks into
trucks meant for delivery.

 Accountant/Cashier:
Responsible for preparing financial reports, budgets, and financial statements for the
organization

Provides managements with financial analyses, development budgets, and accounting reports;
analyzes financial feasibility for the most complex proposed projects; conducts market research
to forecast trends and business conditions.

Responsible for financial forecasting and risks analysis.

Performs cash management, general ledger accounting, and financial reporting

Responsible for developing and managing financial systems and policies

Responsible for administering payrolls

Ensures compliance with taxation legislation

Handles all financial transactions for the organization

Serves as internal auditor for the organization

 Client Service Executive/Front Desk Officer

Welcomes guests and clients by greeting them in person or on the telephone; answering or
directing inquiries.

Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client
with a personalized customer service experience of the highest level

Through interaction with clients on the phone, uses every opportunity to build client’s interest in
the company’s products and services

Manages administrative duties assigned by the manager in an effective and timely manner

Consistently stays abreast of any new information on the company’s products, promotional
campaigns etc. to ensure accurate and helpful information is supplied to clients.
6.0 SWOT Analysis

Opitlex Solution Limited. is in business to become one of the leading cement bricks
manufacturing companies in the whole of Shangombo District -Zambia and we are aware that it
will take the right business concept, management and organizational structure to achieve our
goal.

We are quite aware that there are several cement bricks manufacturing companies all over
Zambia and even in the same location where we intend locating ours, which is why we are
following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to
position our business to maximize our strength, leverage on the opportunities that will be
available to us, mitigate our risks and be equipped to confront our threats.

Opitlex Solution Limited employed the services of an expert HR and Business Analyst with bias
in manufacturing to help us conduct a thorough SWOT analysis and to help us create a Business
model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Opitlex Solution Limited

Strength:

Our core strength lies in the high quality of our concrete bricks, pipes and blocks, the power of
our team and the state of the art cement bricks manufacturing factory that we own. We have a
team of highly trained and experienced staff members that can go all the way to produce durable
concrete bricks, pipes and blocks.

We are well positioned in the heart of Shangombo District - Zambia and we know we will attract
loads of clients from the first day we open our cement bricks manufacturing company for
business.
Weakness:

A major weakness that may count against us is the fact that we are a new cement bricks
manufacturing company and we don’t have the financial capacity to compete with multi –
million dollars’ cement bricks manufacturing companies in the Zambia. So also, we may not
have enough cash reserve to promote our cement bricks manufacturing company the way we
would want to do.

Opportunities:

The fact that we are going to be operating our cement bricks manufacturing company in one of
Zambia provides us with unlimited opportunities to sell our products to a large number of clients.
We have been able to conduct thorough feasibility studies and market survey and we know what
our potential clients will be looking for when they visit our factory; we are well positioned to
take on the opportunities that will come our way.

Threat:

One of the major threats that we are likely going to face is economic downturn. It is a fact that
economic downturn affects purchasing/spending power. Another threat that may likely confront
us is the arrival of a new cement bricks manufacturing company in same location where ours is
located. So also, unfavorable government policies may also pose a threat for businesses such as
ours.

7.0 MARKET ANALYSIS

Market Trends

If you are conversant with trends in the Block Manufacturing industry, you will agree that the
industry has benefited from improved industrial production and construction activity over the last
half a decade. A close watch on industry activities reveals that the concrete block manufacturing
industry was hit hard by the recent economic downturn and experienced a decline in revenue in
recent time.

The concrete block manufacturing landscape has seen tremendous changes in the last 20 years; it
has grown from the smaller enterprise to a more organized and far reaching factory. This trend
has benefited them in such a way that they can comfortably sell their cement bricks, pipes and
blocks nationally and also export them to other countries of the world.

8.0 Our Target Market

Our target market is well defined and in view of that, we have positioned our cement bricks
manufacturing company to service construction companies all around Zambia and every other
location where we intend distributing our products. We have conducted our market research and
feasibility studies and we have ideas of what our target market would be expecting from us.

Our competitive advantage

A close study of the concrete block manufacturing industry reveals that the market has become
much more intensely competitive over the last decade. As a matter of fact, you have to be highly
creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with
other leading concrete block manufacturing companies in Zambia. Opitlex Solution Limited is
launching a standard cement bricks manufacturing company that will indeed become the
preferred choice of residents.

Having a good technical knowledge of the product, ability to control total supply on market and
upstream vertical integration (ownership links) are part of our competitive advantage. Our
cement bricks manufacturing company is located in an ideal property highly suitable for the kind
of manufacturing company that we want to run.

Our excellent customer service culture, online store, various payment options and highly secured
facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the
best within our category in the industry meaning that they will be more than willing to build the
business with us and help deliver our set goals and achieve all our aims and objectives. We will
also give good working conditions and commissions to freelance sales agents that we will recruit
from time to time.

9.0 SALES AND MARKETING STRATEGY

Sources of Income

Opitlex Solution Limited is in business to manufacture and retail different sizes and shapes of
cement bricks, pipes and blocks to clients in Zambia and other countries of the world. We are in
the concrete block manufacturing industry to maximize profits and we are going to go all the
way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the manufacturing and retailing of different sizes and
shapes of cement bricks and concrete blocks at affordable prices.

10.0 Sales Forecast

One thing is certain when it comes to the cement bricks manufacturing business, if your factory
is well located and you have good business network, you will always attract customers cum sales
and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Shangombo District and we are quite
optimistic that we will meet our set target of generating enough profits from our first six months
of operation and grow the business and our clientele base beyond Shangombo District to other
cities in the Zambia and other countries of the world.

We have been able to critically examine the block manufacturing industry, we have analyzed our
chances in the industry and we have been able to come up with the following sales forecast. The
sales projections are based on information gathered on the field and some assumptions that are
peculiar to startups in Zambia.

Below are the sales projection for Opitlex Solution Limited it is based on the location of our
business and other factors as it relates to cement bricks manufacturing startups in the Zambia

First Fiscal Year: K250,000

Second Fiscal Year: K550,000

Third Fiscal Year: K750,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption
that there won’t be any major economic meltdown or any major competitor manufacturing or
retailing same products as we do within same location. Please note that the above projection
might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

Before choosing a location for Opitlex Solution Limited we conducted a thorough market survey
and feasibility studies in order for us to penetrate the available market in and around Shangombo
District. We have detailed information and data that we were able to utilize to structure our
business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the block manufacturing industry to help us
develop marketing strategies that will help us achieve our business goal of winning a larger
percentage of the available market in Shangombo District and throughout the Zambia.

In summary, Opitlex solution Limited will adopt the following sales and marketing approach to
win customers over;

Introduce our cement bricks manufacturing company by sending introductory letters alongside
our brochure to construction companies, and key stake holders in and around …………….
Ensure that we manufacture different sizes of cement bricks and blocks

Make use of attractive hand bills to create awareness and also to give direction to our factory

 Position our signage / flexi banners in strategic places around…………..

 Create a loyalty plan that will enable us reward our regular customers

 List our business and products on yellow pages’ ads (local directories)

 Leverage on the internet to promote our business

 Engage in direct marketing and sales

 Encourage the use of Word of mouth marketing (referrals)

 Join local chambers of commerce and industries with the aim of networking and
marketing our products.
11.0 Publicity and Advertising Strategy

Despite the fact that our cement bricks manufacturing company is well located, we will still go
ahead to intensify publicity for the business. We are going to explore all available means to
promote our cement bricks manufacturing company.

Opitlex Solution Limited has a long – term plan of opening our distribution channel in various
locations all around key cities in Zambia which is why we will deliberately build our brand to be
well accepted in Zambia before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers
over but to effectively communicate our brand. Here are the platforms we intend leveraging on to
promote and advertise Opitlex Solution Limited.

12.0 Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to a cement bricks
manufacturing company, it is normal for clients to go to places where they can get cement bricks,
pipes and blocks at cheaper prices which is why big players in the industry will always attract
loads of clients.

We know we don’t have the capacity to compete with leading cement bricks manufacturing
companies in Zambia, but we will ensure that the prices and quality of all the products that we
manufacture are competitive with what is obtainable amongst cement bricks manufacturing
companies within our level.
We are aware that there are one – off cement bricks and blocks supply contracts from
government works department and construction giants. We will ensure that we abide by the
bidding price template for such contract.

Payment Options

The payment policy adopted by Opitlex Solution Limited is all inclusive because we are quite
aware that different customers prefer different payment options as it suits them but at the same
time, we will ensure that we abide by the financial rules and regulation of Zambia.

Here are the payment options that Opitlex Solution Limited will make available to her clients;

Payment via bank transfer

Payment with cash

Payment via credit cards / Point of Sale Machines (POS Machines)

Payment via online bank transfer

Payment via check

Payment via mobile money transfer

Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make
payment for the purchase of our cement bricks and blocks without any stress on their part. Our
bank account numbers will be made available on our website and promotional materials.

13.0 Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to
undertake. If you intend to go big by renting / leasing a big facility, then you would need a good
amount of capital as you would need to ensure that your employees are well taken care of, and
that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business. The tools and equipment that will be used are nearly the same cost
everywhere, and any difference in prices would be minimal and can be overlooked.

These are the key areas where we will spend our startup capital on;

The Total Fee for Registering the Business in the Zambia – K750.

Legal expenses for obtaining licenses and permits as well as the accounting services (software,
P.O.S machines and other software) – K3,300.

Marketing promotion expenses for the grand opening of Opitlex Company Limited in the amount
of K3,500 and as well as flyer printing (2,000 flyers at K1.04 per copy) for the total amount of
K3,580.

The total cost for hiring Business Consultant – K2,500.

The total cost for payment of insurance policy covers (general liability, workers’ compensation
and property casualty) coverage at a total premium – K9,400.

The total cost for long – term leasing of a standard warehouse and showroom – K250,000

The total cost for remodeling the warehouse – K20,000.

Other start-up expenses including stationery (K500) and phone and utility deposits – ($2,500).
The total cost for cement bricks, concrete pipes and concrete block making machines and start-
up inventory – K250,000

The total cost for counter area equipment – K9,500

The total cost for store equipment (cash register, security, ventilation, signage) – K13,750

The cost for the purchase of office furniture and K4,000.

The total cost of launching a website: K600

The total cost for our opening party: K7,000

Miscellaneous: K10,000

We would need an estimate of Two hundred and fifty thousand Kwacha (K250,000) to
successfully set up our cement bricks manufacturing company in …………….

Generating Startup Capital for Opitlex solution Limited.

Opitlex Solution Limited is a family business that is owned and financed by ………..and his
immediate family members. They do not intend to welcome any external business partner which
is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

14.0 Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and
competence of the employees, their investment strategy and the business structure. If all of these
factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of Opitlex Company Limited is to build a business that will survive off its
own cash flow without the need for injecting finance from external sources once the business is
officially running.

We know that one of the ways of gaining approval and winning customers over is to manufacture
and retail durable cement bricks, pipes and blocks a little bit cheaper than what is obtainable in
the market and we are well prepared to survive on lower profit margin for a while.

Opitlex Solution Limited will make sure that the right foundation, structures and processes are put
in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is
designed to drive our business to greater heights and training and retraining of our workforce is
at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands
we can get in the industry; they will be more committed to help us build the business of our
dreams.
 Check List/Milestone

Business Name Availability Check: Completed

Business Registration: Completed

Opening of Corporate Bank Accounts: Completed

Securing Point of Sales (POS) Machines: Completed

Opening Mobile Money Accounts: Completed

Opening Online Payment Platforms: Completed

Application and Obtaining Tax Payer’s ID: In Progress

Application for business license and permit: In Progress

Purchase of Insurance for the Business: In Progress

Leasing of facility and remodeling the facility (warehouse and factory): In Progress

Conducting Feasibility Studies: Completed

Generating capital from family members: Completed

Applications for Loan from the bank: In Progress

Writing of Business Plan: Completed

Drafting of Employee’s Handbook: In Progress

Drafting of Contract Documents and other relevant Legal Documents: In Progress

Design of The Company’s Logo: Completed

Printing of Promotional Materials: In Progress

Recruitment of employees: In Progress

Creating Official Website for the Company: In Progress

Creating Awareness for the business both online and around the community: In Progress

Health and Safety and Fire Safety Arrangement (License): Secured

Compilation of our list of products that will be available in our warehouse: Completed

Establishing business relationship with vendors – suppliers and wholesale distributors of cement
bricks, concrete pipes and concrete blocks: In Progress