Air University of Aerospace and Aviation Campus Kamra

Leaf Spices Ltd

 Presented by

Maham (215203)

BBA_F21

BACHELOR OF BUSINESS ADMINISTRATION

Submitted to

Miss Maria Ahmad

Skillfull Reading and Writing

Submission Date

May 17, 2022

 EXECUTIVE SUMMARY

Our company name is Leaf Spices Ltd. Raw material used is selective and of the finest quality to
maintain the superiority of the product. We provide the spices with the high quality at the most
affordable prices.

Leaf Spices Ltd is located at Attock City, Pakistan. Our company will provide quality products.
Our product type is convenience product and easily available at general stores at affordable prices.
Our products will be promoted through social media, Advertisement and sponsorship. Our target
market is spicey food lovers.

Vision

We are always looking for ways to deliver the finest quality of spices at the most affordable prices.
We secure an uninterrupted supply of authentic, natural and food safe spices. We commit to the
importance of developing a sustainable supply chain. Therefore, we invest in people, in
relationships, in order to be partners.

Mission

The mission of HARIJAS SPICES Company is to provide our customers with high quality with
delicious tasting. We do this by sourcing, processing and delivering single spices, herbs, all agro
products and dehydrated vegetables in an economically efficient and quality consistent way.

Objectives

Our Objectives Our expertise backed by innovation ensures superior quality without
compromising with nutrition value, texture, taste and aroma of the spices. We stick to the basics
of the profession- timely delivery, customer satisfaction, and affordable prices.

Our company’s estimated sales/revenue for the year 2022 is 500,000. The company will make it
sales on cash as well as on credit. By observing the given projected financial statements below,
you would be able to predict that company will earn profit definitely.
TABLE OF CONTENTS

Company Discription ........................................................................................................................ 7

Problem Discription ......................................................................................................................... 7

Product Positioning .......................................................................................................................... 8

Business Network Positioning .......................................................................................................... 8

Competition and Substitutes ......................................................................................................... 10

Customer and benefits (Target Market) ........................................................................................ 11

Operations ..................................................................................................................................... 11

Marketing Plan ............................................................................................................................... 12

Financial ......................................................................................................................................... 14

Management Team and Company Structure ................................................................................ 17

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LIST OF FIGURES

Figure 1 .......................................................................................................................................... 10

5
LIST OF TABLES

Table 1 product portfolio ................................................................................................................. 8

Table 2 segmentation .................................................................................................................... 11
Table 3 Target Market.................................................................................................................... 11
Table 4 income statement ............................................................................................................. 14
Table 5 Statement of R.E ............................................................................................................... 14
Table 6 Statement of cash flows .................................................................................................... 15
Table 7 balance sheet .................................................................................................................... 16

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Company Discription
Our company name is Leaf Spices Ltd . Raw material used is selective and of the finest
quality to maintain the superiority of the product.

We provide the spices with the high quality at the most affordable prices.

Location of the company

Leaf Spices Ltd is located at Attock City, Pakistan.

Problem Discription
Some of the major problems in the subject area call for interdisciplinary action. There are
three closely interrelated major areas of concern.

• Achieving improvements in primary production-yields-to ensure a better profit

margin for the farmer.
• Ensuring consistent quality of spices supplied to the importer and consumers; and
for certain aspects of quality, achieving higher standards. These last relate to health
and safety regulations in the major importing countries.
• Ensuring a continuity of spices supply to consumers. This involves the
establishment of new production areas as suppliers from traditional sources
dwindle.

These problems call for improvement in cultivar selection, preparation, handling

techniques and means of tackling combinations. To progress in these areas, it will be
necessary to better understand what constitutes quality, the metabolism of the plant, and
the influence of various stages of production and handling. For many, if not most, tropical
spices available information is scanty and systematic, interdisciplinary work is badly
needed.

A key factor to achieving progress is greater fundamental knowledge of the biochemistry

and chemistry of the principle quality determinants, and the devising of reliable methods
for their monitoring. For spices, these principal quality determinants are one or a
combination of the following.

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 • Content and composition of the volatile oil
• Content and composition of any pungent principles.
• Content and composition of any pigments.

Product Positioning
Product Type

Convenience Product

Price

Cost-Base Price(Low Price)

Product Portfolio

Table 1 product portfolio

Products
Black pepper
Chilli
Common salt
Dry Ginger
Cumin
Clove

Promotion

Social Media

Advertisement

Sponsorship

Business Network Positioning

Accenture Strategy provides a definition applicable for a Manufacturing Ecosystem, “a
network of industry players who work together to define, build, and execute market-

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creating customer and consumer solutions; defined by the depth and breadth of potential
collaboration among a set of players. The power of an ecosystem is that no single player
owns or operate all components of the solution, and the value the ecosystem generates is
larger than the combined value each of the players could contribute individually.”

Based on Accenture’s recent survey of over 1,250 business leaders across diverse
industries, it’s clear that an Ecosystem strategy is a business model that all business leaders
should pay attention to. The survey results showed:

60% of execs would build ecosystems to disrupt their industry

Further, 72% agreed that in five years, business models would be “unrecognizable” and
that ecosystems would be a driving force

Lastly, 84% said that ecosystems are important to business strategy

Applying the ecosystem business model in the manufacturing industry implies that many
dissimilar business entities, each with its own motives and purpose come together to derive
value as an interconnected whole. Outcomes are optimized when these parties leverage the
best aspects of each other’s participation in the ecosystem model. Key stakeholders in a
manufacturing ecosystem include the manufacturer (as one would expect), as well as
dealers, distributors, suppliers, trade schools, industry associations, consultants, service
providers, and customers.

Industrial Analysis

The global spice and herb extracts market is projected to grow at a CAGR of 7.1% during
the forecast period (2020 - 2025).

Herbs and spices extract that are more aligned toward health and wellness, as well as
products that have a high penetration rate across artisanal food, culinary preparations, and
generic household foods, are likely to maintain dominance over the coming years. The
extracts, such as ginger, dried capsicum/piment, pepper, curcuma, cinnamon, and cloves,
have the highest potential for growth in the European market.

The increasing demand for a diverse mix of herbs and spices is expected to be met by ethnic
spice blends, mostly related to the increasing popularity of ethnic cuisines and healthy

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foods and growing consumption of convenience, processed, and ready-to-eat dishes.
Furthermore, most of the new products launched in the market are labeled as “street food”,
in order to cater to a more unique set of buyers.

Competitive Landscape

The global spices and herbs extracts market is competitive, with a significant presence of
numerous global and regional players. All-Season Herbs, Kerry Group plc, Döhler Gmbh
and McCormick & Company, Inc. Moreover, players operating in the market are investing
in research and development activities to develop products with enhanced benefits fuelling
spice and herb extract market growth.

Latest Trends

Figure 1

Competition and Substitutes

Competitors Substitutes

Puro Food Apple pie spice

Pak pure line Cloves

Agrifood pacific company Cumin

Shaan Garlic

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Customer and benefits (Target Market)

Table 2 segmentation
Segmentation
Gender Male, female
Income High , Middle , low
Age Baby boomers , Generation X ,
Millennials , Generation Z
Taste Spicy food lovers , non-spicy food
lovers
Education Not Educated , Less Educated ,
Graduates , Highly Educated
Nationality Pakistani , foriegner
Profession Labors , Students , Professionals

Table 3 Target Market

Target Market
Gender For all
Income For all
Age Millennials and Generation Z
Taste Spicy food lovers
Education For all
Nationality Pakistani
Profession For all

Operations
Our company Leaf Spices Ltd will firstly higher employees, purchase assets and raw
material for operational activities. Then company will make production of spices using
employees and machinery.

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Marketing Plan
Vision

We are always looking for ways to deliver the finest quality of spices at the most affordable
prices. We secure an uninterrupted supply of authentic, natural and food safe spices. We
commit to the importance of developing a sustainable supply chain. Therefore we invest in
people, in relationships, in order to be partners.

Mission

The mission of HARIJAS SPICES Company is to provide our customers with high quality
with delicious tasting. We do this by sourcing, processing and delivering single spices,
herbs, all agro products and dehydrated vegetables in an economically efficient and quality
consistent way.

"QUALITY DETERMINES OUR SUCCESS."

Objectives

Our Objectives Our expertise backed by innovation ensures superior quality without
compromising with nutrition value, texture, taste and aroma of the spices. We stick to the
basics of the profession- timely delivery, customer satisfaction, and affordable prices.

SWOT analysis of Leaf spices

Leaf Spices is a key player in the spice market. Pakistan which is already popular as the
global destination for spices has a number of spice companies. Leaf is the spice company
and has around 62 different products in 150 packages.

The products range from ground spices to blend spices to other product. Leaf has the credit
of popularising the concept of ready to use ground spices in India since before that people
preferred buying whole spices and grinding them at home.

Strengths of Leaf:

First mover advantage: Leaf was one of the first companies to realize the scope of ready-
made masalas and they pioneered the idea of grinding spices and selling it in packets. This

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first mover advantage has helped them establish their presence in the spices market
globally.

Quality: MDH has always been conscious of retaining the Pakistan-ness in their spice
blends and thus source their whole spices from authentic vendors only. They also follow
stringent quality norms in the griding and drying of the spices and ensure that the smell
and texture are retained during packaging.

Low pricing: A packet of Leaf masala is priced between Rs 35 to Rs 50 making it the

cheapest ingredient in a recipe. This makes the masala affordable for everyone.

Weaknesses of Leaf :

Poor presence in non- vegetarian category: Leaf primarily focuses on vegetarian spice
mixes and they have the poor presence in the ready to eat category as well. These are two
areas where demand is growing in Pakistan and this will affect their market share in the
long run.

Ingredients and composition: There are allegations of adulteration and mixing of

additives n masala powders and though there have been no direct references to Leaf like
all other players in the market Leaf is also under the scanner for such practices.

Opportunities:

Quick Cooking: With more women entering into the workforce, families are willing to
spend lesser and lesser time in the kitchen cooking. The customer is willing to spend on
ready to use products and thus there will be a surge in demand for processed and semi-
processed food. There is currently the low number of such Pakistani products in the market
and this is an area that spice companies can easily target.

Threats:

Competition: Some of the major competitors of Leaf are Puro Food, Agrifood pacific
company, Pak pure line, Shaan. Many companies are also trying to promote organic masala
powders and this is also a trend which the company will need to manage in the future.

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Financial
Leaf Spices Ltd

Projected Income Statement

Table 4 income statement

2022 2023
Revenues 500,000 600,000
Less: Salaries Expense (50,000) (50,000)
Utilities Expense (40,000) (40,000)
Net Income 410,000 510,000

Leaf Spices Ltd

Projected Statement of Retained Earnings

Table 5 Statement of R.E

2022 2023
Beginning Balance - 310,000
Add: Net Income 410,000 510,000
Less: Dividend (100,000) (100,000)
R.E Ending Balance 310,000 720,000

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 Leaf Spices Ltd

Projected Statement of Cash flows

Table 6 Statement of cash flows

2022 2023
Cash flow from operating
activities:
Revenues 500,000 600,000
Less: Salaries Expense (50,000) (50,000)
Utilities Expense (40,000) (40,000)
Supplies - (80,000)
Cash flow from operating 410,000 430,000
activities
Cash flow from investing
activities:
Outflow: Building (300,000) -
Machinery (200,000) -
Cash flow from investing (500,000) -
activities
Cash flow from Financing
activities:
Inflow: Capital Stock 1,000,000 -
Bank Loan 150,000 -
Outflow: Dividend (100,000) (100,000)
Notes Payable (50,000)
Cash flow from financing 1,050,000 (150,000)
activities
Add: Beginning Balance - 960,000
Net Cash at the end of the 960,000 1,240,000
year

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 Leaf Spices Ltd

Projected Balance Sheet

Table 7 balance sheet

2022 2023
Assets
Cash 960,000 1,240,000
Building 400,000 400,000
Machinery 200,000 300,000
Supplies 60,000 40,000
Total Assets 1,620,000 2,080,000
Liabilities & Owner’s
Equity
Liabilities:
Accounts Payable 60,000 160,000
Notes Payable 100,000 200,000
Total liabilities 160,000 360,000
Owner’s Equity:
Capital Stock 1,000,000 1,000,000
Retained Earnings 310,000 720,000
Total liabilities & 1,620,000 2,080,000
Owner’s Equity

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Management Team and Company Structure

Leaf apices

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