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KARACHI UNIVERSITY BUSINESS SCHOOL

BUSINESS PLAN
SUBMITTED BY:
ELEYA RIZVI
ANWAR SHAKEEL
JAWERIA TARIQ

CLASS:
BS BBA 2ND YEAR

COURSE:
PROJECT DEVELOPMENT, EVALUATION & FEASIBILITY

SUBMITTED TO:
SIR SOHAIB UZ ZAMAN
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CONTENTS
Brand Logo ………………………………….
……………………………………………………………………………………………………………..3
Executive Summary……………………..
…………………………………………………………………………………………………………4
Introduction……………. …………….…...
…………………………………………………………………………………………………………….5
Species Of CACTUS ……………………………….
……………………………………………………………………………………………….6
What Is Cactus Water …………..
……………………………………………………………………………………………………………..6.1
Awareness
…………………………………………………………………………………………………………………
……………………………….7
Market Analysis ……………………………..
……………………………………………………………………………………………………...7
Global cactus water segmentation
………………………………………………………………………………………………….8
4P's Analysis…….
…………………………………………………………………………………………………………………
……………………..10
SWOT
Analysis…………………………………………………………………………………………………………
……………………………….16
PESTAL
Analysis…………………………………………………………………………………………………………
…………………………….17
Porter's 5 Forces Analysis…….
……………………………………………………………………………………………………………….19
Technical Analysis………..
…………………………………………………………………………………………………………………
…….20
Raw material
alternatives………………………………………………………………………………………………………
……………21
Business
Model……………………………………………………………………………………………………………
………………………….23
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Inventory &
control…………………………………………………………………………………………………………
……………………25
Legal
Structure………………………………………………………………………………………………………
……………………………….26
Management……………………………………………………………………………………………………
………………………………………27
Hiring / Job
specifications……………………………………………………………………………………………………
……………27.1
Cost volume / Behaviour Analysis
………………………………………………………………………………………………….28
Contribution Margin / Breakeven
Analysis…………………………………………………………………………………29
Financial Analysis…………………………….
………………………………………………………………………………………………..30
Income
statement………………………………………………………………………………………………………
…………………………30
Balance
sheet……………………………………………………………………………………………………………
……………………………….31
Cash flow
statement………………………………………………………………………………………………………
………………………32
WACC…………………………………………………………………………………………………………
………………………………………………….33
Conclusion………………………………………………………………………………………………………
………………………………………….36
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EXECUTIVE SUMMARY

Our aim is to launch zero caloric, organic cactus drink onto the market. And right now, we’re
aiming to create awareness in the market for Cactus drink benefits. Our target audience will be
people who are into health and fitness and we’re launching this product o health basis as it can be a
substitute for diabetic medicines because Prickly pear cactus contains fiber and pectin, which can
lower blood glucose by decreasing the absorption of sugar in the stomach and intestine. Some
researchers think that it might also decrease cholesterol levels and kill viruses in the body.
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INTRODUCTION
Packaged Cactus water is made using real, extracted puree of the prickly pear, the superfruit of the
Opuntia cactus. The edible parts are the leaves, flowers, stems and fruit. Prickly pear cactus is eaten
whole (boiled or grilled). It is also made into juice and jams.
Cactus water is known as one of the new super drinks in the market that has cactus as the main
ingredient. It is popular because it contains electrolytes, which are important for athletes and people
who exercise. Cactus water is also healthy overall because it provides potassium to balance out sodium
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levels in your body, helping with muscle recovery after an intense workout. Some cactus waters even
contain antioxidants which fight free radicals and help reduce inflammation.
Here we’re working on the Prickly Pear Cactus or also known as nopal, opuntia and other names —
is promoted for treating diabetes, high cholesterol, obesity and hangovers. It's also suited for its
antiviral and anti-inflammatory properties.
The nopal (or prickly pear) cactus, is native to the United States and grown widely on the African
continent, Mexico and other developing countries. It could now become a sustainable and
affordable water purification method in the rural communities of developing countries, say the
scientists. Some preliminary evidence shows that prickly pear cactus can decrease blood sugar
levels in people with type 2 diabetes.
If you’re remotely health conscious and if you enjoy incorporating healthy drinks packed with
natural benefits like coconut, aloe, or birch water into your diet, there’s a new player in town
– cactus water.  Also known as prickly pear water, it is widely hailed as the next big thing in the
wellness industry.

Common Species of Prickly Pear Found in

Pakistan
Opportune Opuntia: The pads are blue-grey in This species is particularly suitable to hot,
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color with tan or redish-brown spines. arid areas of the country: Thar desert,
Beavertail bloom in the spring with a large Bahawalpur, Multan
dark-pink to light pink-flowers.
Mojave Prickly Pear: The pads are oval with The Salt Range, Balouchistan, all spring to
long, hair-like spines the vary in length. The mind, plus, having seen some fine specimens
flowers bloom in spring ranging in color from around Barakho and Simly, then the areas
yellow to dark pink around Islamabad and Rawalpindi should suit
it too.

What Is Cactus Water?

Cactus water is made using real, extracted puree of the prickly pear, the superfruit of the Opuntia
cactus. Prickly pears, known as ‘tuna’ in Spanish, are bright pink in color and are found on giant
succulents (they can grow up to 7 meters).

The fruit itself is a staple in Mexican cuisine and tastes like watermelon and bubblegum had a baby.
Sweet, juicy, and surprisingly familiar. The fruit is often eaten raw or made into jams or added to
smoothies.  But it’s very widely found around dry areas in Pakistan as well.

Prickly pear is packed with natural antioxidants and electrolytes like vitamin C, magnesium, and
potassium. Antioxidants help support our body’s immune system, and all these nutrients are
essentially squeezed into prickly pear water.

AWARENESS FOR CACTUS WATER

Television can be the main channel that delivered information to the masses. The delivery of
information inputs to the consumer’s can be achieved through different approaches: mass media
such as television, websites, and YouTube can reach many people at minimum cost, mass media
approaches could be a tool that offer an easy way to increase knowledge about the product.
Besides the high effectiveness of this approach and in addition to raise awareness, they have social
dimensions and learning by including the consumer in the communications and discussions, yet it
is limited by distance and consumer's availability. Consumer to Consumer knowledge exchange
can also be a well-known mean to facilitate the circulation of knowledge among the masses.

-to-
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farmer interactions (8%) compared

to (17%) through NARC advisory
and media services. The
delivery of information inputs to
farmers can be achieved through
different approaches: mass
media such as television, websites,
and YouTube can reach many
people at minimum cost
-to-
farmer interactions (8%) compared
to (17%) through NARC advisory
and media services. The
delivery of information inputs to
farmers can be achieved through
different approaches: mass
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media such as television, websites,

and YouTube can reach many
people at minimum cost
MARKET ANALYSIS
Global Cactus Water Market is Expected to Grow at an Impressive Rate During the Forecast
Period on Account of Increasing Consumption of Plant-based Products and Rising Awareness
About the Benefits of Cactus Water.
Our Target country is Pakistan right now and we’re currently looking at the diabetic medicines
industry in Pakistan and our research and analysis says that it can be a game changer.

It can be used by fitness freaks as it’s a great option for dehydration and can be used as a substitute
for other energy drinks as it not only does provide hydration it actually is very good for skin and
overall health issues. You’ll look into more of it further in the report.

But other than that, it is super beneficial to treat or control type 2 diabetes. As an Example:
In 2021, 33 million adults in Pakistan are living with diabetes – a 70% increase since 2019. This
means that Pakistan now has the third highest number of people living with diabetes in the world,
after China (141 million) and India (74 million).
So, if calculate the total economic burden of diabetes mellitus in Pakistan with average cost of
diabetes management in Pakistan is rupees 5542. The total cost is Pakistan Rupees 36,577,200,000
per month which is tremendously high economic burden of diabetes in Pakistan.
And for now, we want to provide a sustainable and a long-term substitute for medicines and their
sour taste, and with the growing rate of diabetic patients in Pakistan and with the inflation and
medicines prices going skyrocket it’ll be a better and pocket friendly alternative.

GLOBAL CACTUS WATER MARKET:

SEGMENTATION ANALYSIS
The research report includes specific segments by geography, Type, and Application. Market
segmentation creates subsets of a market based on product type, end-user or application,
Geographic, and other factors. By understanding the market segments, the decision-maker can
leverage this targeting in the product, sales, and marketing strategies. Market segments can power
your product development cycles by informing how you create product offerings for different
segments.
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Market Segmentation (by Type)

 Pure Cactus Water
 Mixed Cactus Water (Flavored)

Market Segmentation (by Application)

 18 – 30 years old
 30 – 55 years old and onwards

Market Segmentation (by Geographic)

 URBAN AREAS IN PAKISTAN
 KARACHI
 ISLAMABAD
 PESHAWAR
 ABOTTABAD
 WAH CANTT

Areas where people are little more health conscious and into fitness
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Market Segmentation (by Packaging)

 Cartons
 Cans
 Bottles

Market Segmentation (by Distribution Chanels)

 Supermarkets
 Hypermarkets
 Tuck Shops
 General Stores
 Medical Stores
 Online Retail

CACTUS WATER 4P’s MARKETING

ANALYSIS
The 4p model of marketing comprises elements of the product, price, promotion, and
place. The model is commonly referred to as the marketing mix. The marketing mix for
the cactus water help to ease the process to achieve our marketing objective and also to
fulfill the demands for our target audience.
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PRODUCT HYDRATION DRINKS: Pure Catus Water and Flavored

PRICE COMPETATIVE PRICING: Lower prices for bulk buyers and top retailers.

COMPANY – CNF/SS – DISTRIBUTERS – RETAILERS – CUSTOMERS

PLACE Online E-Commerce, Retail Shops, Supermarkets, General Stores.

PROMOTION 

ATL & BTL PROMOTIONS
PROMOTIONAL DISCOUNTS AND SALES PROMOTION
 INFLUENCER/CELEBRITY ANDORSMENT

MARKETING MIX OF CACTUS WATER

 PRODUCT
The product refers to the actual good or service that is being marketed to the consumers
by Oh My Opuntia, and which will be consumed by the target audience. The product or
the service being offered by us largely aims to fulfill a market need and demand, as well
as works to create demand by providing a unique and fulfilling customer experience.
There are few key factors that comes under the product section of the market mix.

1. Quality
Product quality for us refers to providing the top-quality product ingredient with being
able to satisfy the customer’s needs and demands through our product and service. The
product quality for our brand further includes the coherence of our company and its
product and service offerings to industry standards and benchmarks 
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2. Customer demand fulfillment

The ability of the product and service to fulfill customer demands as well as its purpose,
and to work efficiently and effectively are important facets of product quality for us.
We’ll try to make sure that the product is available for customers at affordable prices by
maintaining the internal cost.

3. Packaging
We focus thoroughly on the packaging and makes sure it includes the process of
designing, evaluating, and developing a container for the products and services being
manufactured and marketed. The packaging of the product and the service allows Oh My
Opuntia to highlight the product's purpose, as well as provides ease in transportation,
gives room for more prolonged shelf life, and creates a unique and delightful customer
experience.

4. Building the brand

We invest in developing brands out of its products and service offerings. We as a brand
ensure that its target audience is better able to relate to the offerings. Through this, the Oh
My Opuntia ensures higher loyalty and repeat purchases, as well as positive perception
creation for its offerings.

5. FEATURES
Product features or characteristics refer to the product traits and attributes present in the
offerings, that allow the company to successfully deliver unique value to customers. Our
company’s best features is that we’re providing a unique substitute for all the harsh
medicines for diabetic patients yet still it can be commonly used as a hydration or energy
drink for out fitness enthusiastic youth.

 PRICE
The element of price in the marketing mix refers to the value that customers pay for the
service.  The pricing strategy and the price of the offerings are critical because it
determines the success rate by directly influencing the profit levels and revenue for the
company. For us, the penetrative pricing strategy is works out the best as it allows us the
higher trial generation of our products and services in the desired target market, as well as
allows the building of a broader reach for its product offerings by ensuring easier
affordability.
There are few key factors that comes under the price section of the market mix.
1) Margins
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The margins available for us largely depend on the offering and its quality itself, in
addition to the brand equity and brand value of the company. We basically make our
profit from the bulk sellers as we sell major amount of our products to our bulk ordering
retailers.
2) Payment method
A significant factor of the pricing element of the marketing mix for us includes the
payment methods that the company offers, we largely operates distribution to retail via
agents and retailers, it ensures the inclusion of different payment methods. This includes
digital payment, cash payment, as well as credit allowances
3) Discounts
One of the ways through which we influence our pricing strategies is through offering
discounts on our product and service offerings

 OUR PRICING STRATEGIES

a. Penetrative pricing strategy

We adopted the penetrative pricing strategy as it grants us higher trial generation of our
product offerings in the desired target market, as well as allows the building of a broader
reach for its product offerings by ensuring easier affordability.

b. Introductory pricing strategy

Our idea right now is that when we’ll be launching our product in the markets we’re going
to ensure to adopt an introductory pricing strategy. This introductory pricing strategy
allows the company to increase trial generation, achieve higher penetration, as well as
lead to the generation of increased brand awareness and recall.

 PLACE
The element of place within the 4Ps model of the marketing mix largely refers to the
locations where we stock our product for consumer’s accessibility and purchase.

1. Physical retail shops

The physical retail and stores i.e medical stores, super markets, general stores, gym and
protein shops such as Jacked nutrition, Bravo nutrition are continue to be the prioritized
locations for product placement.

2. E-Commerce
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We’re planning to stock our products on e-commerce retails such as Daraz, Krave Mart,
Panda Mart, Tazamart, HomeShopping.pk etc. This allows the higher access and
penetration in other markets, as well as in secondary consumer groups.

3. Company-owned website
In addition to stocking products with other e-trailers, we also manage orders through its
own website, where consumers can place orders for our cactus products directly. This
allows us the greater control over stock and inventory management, as well as distribution
networks – allowing the buildup of stronger relations with consumers.
Lastly, the Oh My Opuntia also takes limited orders through social media pages and
platforms.

 PROMOTION
The element of promotion in the marketing mix largely refers to the tactics and activities of
communication that we adopted for promoting its products and services. The promotion is
largely targeted toward our target audience and is aimed to increase brand awareness, brand
loyalty as well as sales of the company.

1. Direct marketing
We directly email potential customers- especially its B2B consumers for detailing its
product offerings and features. We use personalized messages and captures new clients
and customers for the business. In addition to direct emailing, we also make use of
telemarketing and direct mail for targeting audiences through direct marketing.

2. Social media marketing

One of the more contemporary forms of marketing and promotion for us includes social
media marketing. The company has an official presence and profiles on social media
platforms such as Facebook and Instagram, and regularly uses these platforms to promote
its offerings, and product features and characteristics

3. In-Store promotions
The in-store promotions include offering price discounts, loyalty points, and flash sales
for its products. In addition, the company also invests in building up the POS within the
store locations.

4. Traditional advertising
We continue to use traditional marketing tactics and promotional platforms as well –
largely for mass marketing purposes. The company especially focuses on TV
advertisements, ad print media advertising for this purpose.
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 PROMOTION STRATEGY
a. Integrated marketing strategy
The advertisement and promotional messages by Oh My Opuntia for all mediums and
channels however are built on an integrated plan, and ensure that they reflect messages
and communication that is similar to the overall campaign to void confusion and
discrepancies.
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SWOT ANALYSIS FOR CACTUS

WATER MARKET

Strengths Weaknesses

High quality products Limited product range

Strong online presence High prices

Excellent customer service Limited retail locations

Opportunities Threats

Expand product range Competition from other brands

Increase retail locations Changing consumer tastes

Partner with other retailers Price fluctuations

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PESTEL ANALYSIS FOR CACTUS WATER MARKET

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Political Factors
The political landscape of the cactus water market is an important factor to consider when
evaluating the market potential. Political factors such as government regulations, taxes, and trade
agreements can have a direct impact on the ability of cactus water producers to bring their products
to market. In addition, the stability of the political environment in the countries where cactus water
is produced can affect the availability and cost of cactus water.

Economic Factors
The economic factors that influence the cactus water market can have both positive and negative
effects on the industry. On the positive side, an economic boom can lead to increased demand for
cactus water, and a strong economy can also make it easier for producers to access capital and
resources. On the negative side, an economic downturn can lead to decreased demand for cactus
water, and a weak economy can make it more difficult for producers to access capital and
resources.

Social Factors
The social factors that influence the cactus water market include consumer preferences, values, and
beliefs. Consumers are increasingly seeking out natural and healthy beverages, which has helped to
drive the demand for cactus water. In addition, cultural and religious values can also affect the
demand for cactus water, as certain regions may prefer certain types of beverages over others.

Technological Factors
The technological factors that influence the cactus water market include advances in production and
packaging technologies. Technological improvements can help producers to reduce costs and
increase the efficiency of their operations, while also improving the quality of their products. In
addition, new packaging technologies can help producers to bring their products to market more
quickly and easily.

Environmental Factors
The environmental factors that influence the cactus water market include water availability, climate
change, and soil quality. Cactus water production requires a large amount of water, and changes in
water availability can have a direct impact on cactus water production. In addition, climate change
can lead to changes in the availability of cactus water, while soil quality can affect the quality of
the cactus water.

Legal Factors
The legal factors that influence the cactus water market include regulations and laws related to food
safety and production. Producers must comply with regulations in order to bring their products to
market, and any changes to these regulations can have a direct impact on the industry. In addition,
laws related to labeling and advertising can also affect the cactus water market.
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PORTER 5 FORCES ANALYSIS FOR CACTUS WATER

MARKET

Bargaining Power of Suppliers

The bargaining power of suppliers for Cactus Water Market is relatively low. This is because the
cactus water market is a niche market and there are few suppliers who are able to provide cactus
water. Furthermore, cactus water is a relatively new product, so there are few suppliers who have
the expertise and resources to supply it. As a result, Cactus Water Market has a relatively low
bargaining power of suppliers.

Bargaining Power of Buyers

The bargaining power of buyers for Cactus Water Market is also relatively low. This is because
cactus water is a niche product and there are few buyers who are willing to buy it. Furthermore,
cactus water is a relatively new product, so there are few buyers who have the knowledge and
resources to purchase it. As a result, Cactus Water Market has a relatively low bargaining power of
buyers.

Threat of New Entrants

The threat of new entrants for Cactus Water Market is relatively low. This is because the cactus
water market is a niche market and there are few companies who are able to enter it. Furthermore,
cactus water is a relatively new product, so there are few companies who have the expertise and
resources to enter the market. As a result, Cactus Water Market has a relatively low threat of new
entrants.

Threat of Substitute Products

The threat of substitute products for Cactus Water Market is relatively high. This is because there
are many other products available in the market that are similar to cactus water, such as coconut
water and aloe vera water. As a result, Cactus Water Market has a relatively high threat of
substitute products.

Competitive Rivalry
The competitive rivalry for Cactus Water Market is relatively low. This is because the cactus water
market is a niche market and there are few companies who are able to compete in it. Furthermore,
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cactus water is a relatively new product, so there are few companies who have the expertise and
resources to compete in the market. As a result, Cactus Water Market has a relatively low
competitive rivalry.

TECHNICAL ANALYSIS
ENVIRONMENT TO GROW PRICKLY PEAR IN PAKISTAN

Prickly pear cactus is a plant. It is part of the diet in Mexican and Mexican-American cultures but
prickly pear is grown in larger quantity in Balochistan, Pakistan.
Prickly pear cactus is a plant. It is part of the diet in Mexican and Mexican-American cultures.
Some of the things that are needed to be consider in order to grow prickly pear in any general
environment could be soil, water, light and the temperature or humidity levels.

 Light
As a desert cactus, prickly pear thrives in full sun. That means at least six hours of direct
sunlight per day. Indoors, a west- or south-facing window works best. In very hot climates,
some shade during midday can prevent scald.
 Soil
The most important requirement for any plant in the Opuntia genus is soil that drains well.
Prickly pear easily grows in sandy or gravelly soil, but it can tolerate other soil types as long as
there's good drainage and not too much water.
 Water
Prickly pear likes dry conditions, and very little watering is required to maintain the plant. This
is why the cactus is often used in low-water gardens. Limit your watering to every two to three
weeks or whenever the soil is completely dry. When watering, simply moisten the soil without
soaking it. If you get minimal rainfall, that's often all the plant needs.

When growing prickly pear as a landscape plant in regions that get lots of rainfall, it's critical
that the soil be extremely porous and well-draining.

 Temperature and Humidity

Prickly pear cactus thrives in hot, dry desert summers. But many of its species have good cold
tolerance. (Remember, desert nights can be cool.) It generally does well in regions that have
mild winters and hot summers with low humidity. Prickly pear can struggle in areas that have
very high humidity, even if the temperature is to the plant's liking.
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Typical indoor temperatures and humidity levels are usually fine for a prickly pear grown as a
houseplant. However, keep the plant away from heat and air-conditioning sources, as they can
cause extreme temperature fluctuations. 

RAW MATERIAL ALTERNATIVE FOR PRICKLY PEAR

 Opuntia humifusa 

(formerly O. comressa): Known as eastern prickly pear, this species is a sprawling, ground-
hugging cactus that grows up to 12 inches tall and wide. It produces yellow flowers with
orange splotches from May through July. It is hardy in zones 4 to 9. This is one of the most
popular prickly pear species for garden cultivation.

 'Opuntia microdasys 'Albaspina'

This cultivar grows 2 feet tall, with small clusters of white spines. It is hardy in zones 9 to
10. This and other cultivars of O. microdasys are very popular as houseplants.

 Opuntia aurea:

Usually known as golden prickly pear, this species grows 9 inches to 2 feet tall and
produces yellow flowers in late spring or early summer. It is hardy in zones 5 to 9. This
species is popular both as a garden specimen and as a houseplant. The 'Coombes Winter
Glow' cultivar has magenta flowers.

 Opuntia fragilis: 

Known as brittle or fragile prickly pear, this small plant matures to just 6 inches tall and 9
inches wide. True to its common name, it has pads that break off easily, but they also root
readily. It grows in zones 4 to 11 and is very popular for outdoor rock gardens or indoor
containers.

 Opuntia macrohiza

Known as plains prickly pear, this species grows 6 to 12 inches tall and produces light
yellow flowers with red eyes in June and July. It is hardy in zones 3 to 9. It is popular for
rock gardens and as a houseplant.

Some species are primarily outdoor plants for southern gardens only:

 Opuntia santa-rita
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Known as Santa Rita prickly pear, this is one of the most attractive species, with pads that
shift between light blue-gray and rich purple and large yellow flowers that appear in spring.
It can grow to 8 feet tall and wide, and it's hardy in zones 7 to 11.

 Opuntia aciculate

Referred to as chenille prickly pear, old man’s whiskers, and cowboy’s red whiskers, this
ornamental cactus is known for its yellow and red spines and a potential height of 4 feet. It
grows in zones 8 to 12.

 Opuntia basilaris: 

Also called beavertail prickly pear, this species has velvety pads and deep purple-red
flowers. It reaches 36 inches tall and 24 to 30 inches wide and grows in zones 8 to 10.

 Opuntia rufida: 

This species grows 6 feet tall; the 'Purple' cultivar and has a purplish cast to the pads; it's
hardy in zones 8 to 10.

BUSINESS MODEL

The main model of business can be categorized into two divisions; One is business to consumers
and the other is business to business i.e (B2C & B2B).
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BUSINESS TO CONSUMERS (B2C):

For B2C logistics we’re going to partner with different online marketplaces as well as our
websites and our main approach would be providing it to consumer’s easy disposals that mean
we’re going to have different contracts with different offline market places as well such as Bin
Hashim, Imtiaz, Dvago and many different such places too.

BUSINESS TO BUSINESS (B2B):

For business to business approaches our main partners would be Daraz, Krave mart as online
businesses and for offline B2B we’re planning to partner with major marts or pharmacies such as
Bin Hashim, Imtiaz, Chase Value, Dvago and for other business we’re also planning to give out
to local distributors for area wise distributions such as general stores, juice centers or local cold
spots.
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I
NVENTORY AND CONTROL
After establishing the business model we’re looking into how are we going to manage our
inventory for raw material as well as for our final good.
For raw material or for final good inventory we’ll be needing the following items to store them

1. Cold storage chillers

We’ll be using warehouse portable cold storage chillers for the
storage of our raw material as well as our final good as both of
those are perishable materials and they would need a particular
temperature.
As we’re a small-scale business for now so according to the
market size and demand for the product we think 1 chiller rooms
would be sufficient to store both raw materials and final goods.
And if go for most affordable options they’re costing us around
Rs 150,000 for the used one.
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2. Peeling machine
We’ll be using a peeling machine for the peeling of our plant as it
is very time consuming if done manually and there more
automated options available but as small-scale business right-now
we’ll start with a semi-automated machine and let our labor
operate it. And would be costing us around Rs15000 for a slightly
used.

3. Mixer Machine
We’ll be using a large sized industrial mixer machine for all the blending
of our ingredients and mixing them all together and we’ll be needing only
1 of such machines as if now and it’ll cost us around Rs 40,00 for the used
machines.

4. Juice packaging machine

We’ll be using juice packaging machine to pack our juice boxes
and sealing it properly for the safety of our consumers. That cost
for semi-automated machine is Rs 8000 if we decide to go for used
ones.

5. Seal Machine
We’ll be needing this machine for all our 500ml bottle packaging and it is costing us Rs
7500 for a second-hand machine.

6. Office supplies/Furniture
For office supplies we’ll be needing a inventory books, computer,
phone etc etc.

And the items we’ll be having in our inventory are:

1. Cactus plant
2. Finished cactus juice
3. Flavors syrups

LEGAL STRUCTURE
As a business-owners this is one of the most important decisions we’ll make as this will make
sure the legal structure or form for our business as it will determine the terms of legal actions and
the consequences in terms of how our business will be managed, it’ll cover the personal liability
of the owners, how are we going to manage the taxes and how ownership is held.
According to Companies Ordinance Act, 1984; there are three types of companies in Pakistan
which can be registered:
1. Private Limited Company
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2. Public Limited Company

3. Single Member Company (SMC)
The legal status of the proposed business proposal is “PARTNERSHIP”. It is registered under
Partnership Act.
The partnership will be given out according to the share of capital and the profit will be
calculated according to the ratio of their capital.

The partners of the business are as follows

1. Eleya Rizvi
2. Anwar Shakeel
3. Jaweria Tariq
Before the actual launch of our business our first aim is to obtain the licenses and permits that
would be getting an approval by Security and Exchange Commission of Pakistan and get our
product tested by PCSIR Labs for all the food safety regulations so that we can make sure our
product is of high quality and it will not be harmful for any of consumer to use that includes
children too.

MANAGEMENT
As the business legal status of our proposed project is partnership. The official duties and
management status of our partners our as follows:
1. Eleya Rizvi-CEO
2. Anwar Shakeel-CMO
3. Jaweria Tariq-CFO

As we’ve mentioned earlier the business has been registered under Partnership Act so every
partner will have a right to claim 20% of the profit depending on the total sales and business
growth.

CHIEF EXECUTIVE OFFICER CHIEF MARKETING OFFICER CHIEF FINANCE OFFICER

ELEYA RIZVI ANWAR SHAKEEL JAWERIA TARIQ

Lastly, as you can see our HR manager isn’t on the list that is because all our HR responsibilities
will be managed by our CEO herself.

HIRING / JOB SPECIFICATIONS FOR THE EMPLOYESS

As we’ll start our operations on a smaller scale so OH MY OPUNTIA’s management will be
hiring only the basic employees needed for the first 1 year of the business.
The staff we will be needing are as follows:
 30

1. For Production Area: As we will be a small business startup so one of our partner will be
responsible to use the peeling machine and one will be using the mixer for the blending
machine with our chemist and last partner will work on the packaging
2. For Lab Testing: For all the product testing and hygiene maintenance and mixing for the
products the company we’ll have one chemist on board with us.
3. We’ll also be outsourcing our delivery with different delivery partners for out of the
operation city orders and we’ll hire 1 delivery men for the deliveries with in the cities.
4. Lastly 1 person would be hired for all the cleaning purposes.

COST VOLUME AND BEHAVIOR ANALYSIS:

ITEMS WE’LL BE NEEDING COST OF ITEMS

Opuntia seeds Rs 1500/Kg; each seed plant will be needing 3

seeds and each plant will have at least 5 opuntia
leaf and we will be needing 2 plants for each 30ml
box.
Arfi’s squash syrup Rs 200 / 2 litre and each box will be having 3
drops of the syrup
Juice Box Rs 2500 / 5000boxes
500ml Plastic bottles Rs 25 / bottles (5,000 bottles = Rs 125,000)
Rs 4,200 is the cost for first 5,000 30ml tetra pack orders. And for 500ml bottles we’ll go for
1000 bottles at the start that will be an additional Rs 125,000 so the total cost would be
Rs 129,200

Total Variable Cost = Rs 129,200

ITEMS COST

Machinery Rs 220,500

Utility (Electricity, telephone bills) Rs 60,000

Rent Rs 40,000

Salary/Wages RS 65,000

Rs 385,500 will be our fixed cost

Total Fixed Cost = Rs 385,500

 31

Total Variable Cost Rs

129,200
Total Fixed Cost Rs
385,500
Total cost Rs
514,700
Selling Price For Tetra Pack Rs
80
Each Tetra pack is costing us Rs 0.84. So, we will be in the profit of Rs 79.16 per
order.
Selling Price For 500ml Bottle Rs
120
Each 500ml bottle is costing us Rs 26.70 So, we will be in the profit of Rs 93.30 per
order.
Production units for tetra pack
5,0000
Production units for 500ml bottles 5,000
Total sales revenue = Total units*Selling price
5,000*80 Rs
400,000
5000*120 Rs
600,000
Total Sales Revenue Rs
1,000,000
Total profit = Total sales – Total cost
1,000,000 – 514,700
Total profit = Rs
485,300.
CONTRIBUTION MARGIN
Sales 1,000,000
Variable cost (129,200)
Contribution Margin 870,800
Contribution Margin Ratio C.M / Sales = 87.08%
Fixed Cost (385,500)
Net Operating Income 415,520
 32

BREAK – EVEN ANALYSIS

Breakeven (Units) = Fixed cost / C.M
= 385,500 / 87.08
Breakeven (Units) = 4427 units
Breakeven Tetra Pack (Revenue) = Breakeven Units x Selling Price
= 4427 x 80
= Rs. 354,160
Breakeven 500ml Bottle (Revenue) = Breakeven Units x Selling Price
= 4427 x 120
= Rs. 531,240

OH MY OPUNTIA
For the year 2023 For the year For the year 2025
2024

Sales 3500000 5000000 7500000

Cost of goods sold (600000) (1200000) (1800000)
Gross profit 2900000 3800000 5700000
Less: operating
expenses
Payroll 170000 300000 450000
Sales and marketing 600000 600000 700000
expense
Depreciation 28800 28800 28800
Utilities 200000 280000 350000
Insurance 20000 20000 20000
Rent 200000 220000 242000
Miscellaneous expense 150000 200000 260000
Transportation 200000 300000 500000
Total operating (1568800) (1948800) (2550800)
expense
Profit before interest 1331200 1851200 3149200
and tax
 33

Interest expense (35000) (30450) (26491.5)

After Interest 1296200 1820750 3122708.5
Tax incurred (518480) (728300) (1249083.4
Net income 777720 1092450 1873625.1
Net income % 22.22% 21.85% 24.98%

FINANCIAL ANALYSIS
INCOME STATEMENT

BALANCE SHEET
OH MY OPUNTIA

For The Year For The Year For The Year

2023 2024 2025
Assets

Cash 2500000 3500000 4000000

Account Receivable 0 0 50000

Inventory 50000 65000 75000
Total Current Assets 2550000 3565000 4125000
Plants 288000 259200 230400
Furniture 300000 450000 500000

Total Fixed Assets 588000 709200 730400

Total Assets 3138000 4274200 4855400

Liabilities

Accounts payable 300000 200000 0

Short term loan 500000 . 0

Notes payable 75000 120000 100000

Total Current Liability 875000 320000 100000

 34

Equity

Capital 1500000 2200000 3000000

Retained Earning 763000 1754200 1755400

Total Equity 2263000 3954200 4755400

Total Equities & Liabilities 3138000 4274200 4855400

Operating Activities

Cash Sales 3500000 5000000 7500000

Payment For Goods (600000) (1200000) (1800000)

Payment For Operations (1568800) (1948800) (2550800)

Payment For Tax (398480) (608300) (994683.4)

Payment For Interest (35000) (30450) (26491.5)

Depreciation (28800) (28800) (28800)

Net Cash Flow For 868920 1183650 2099225.1

Operating Activities
Investing Activities

Payment of Machinery (588000) (588000) (588000)

Investment 1200000

Net Cash Flows For 612000 (588000) (588000)

Investing Activities
Financial Activities

Short term Loans 500000 0 0

Long term loans 0 0 0

Net Cash Flows For 500000 0 0

Financing Activities
Net Cash 1980920 595650 1511225.1
 35

Cash at Beginning 0 1980920 2576570

Cash at Ending 1980920 2576570 4087795.1

OH MY OPUNTIA
For the year 2023 For the year 2024 For the year 2025

CASH FLOW STATEMENT

Weighted Average Cost of Capital (WACC):

OPUNTIA PVT LTD needs to raise 1,700,000 in capital so it can buy equipment and supplies
needed to conduct the business. The company is formed by the collaboration of equity and debt
financing. The capital of 1,700,000 includes equity of 1,200,000 for the owners as investment. We
assume expected return of 11.0% on their investment, the cost of equity is 11.0% and 50,0000 is
employed by debt financing. Opuntia market value is (1,200,000 + 50,0000) i.e 1,700,000 and
project tax rate is 40% cost of debt is 6.5%. Now we have all the values to calculate WACC

E = Market value of equity

V = Market value of Equity
Ke = Cost of equity
D = Market value of debt
Kd = Cost of debt
Tax rate = Corporate tax rate

Formula for WACC = (E/V*Ke)+(D/V)*Kd*(1-Tax rate)

= (1200000/1700000*0.11) + (500000/1700000*0.065)*(1-.04)
= 9.6%

Calculation of Payback Period

Year Cash Flow Cumulative cash flow

0 1700000 1700000
1 1980920 3680920
2 2576570 6257490
3 4087795.1 10345285.1
 36

1700000/1980920 = 0.85

Payback period signifies that investment will recover on .0.85 years

Calculation of Net Present Value (NPV)

Year Cashflow

1 1980920

2 2576570

3 4087795.1

Formula: NPV = cash inflow1 / (1+i) t + cash inflow2 / (1+i) t - initial investment

Where;
i = WACC
t = Time Period

= 1980920 / (1+.096)1 + 2576570 / (1+.096)2 + 4087795.1 / (10.096)3 -1700000

= 7057347.2 - 1700000
NPV = 5357347.2
 37

INTERNAL RATE OF RETURN

Year Cashflow

1 1980920

2 2576570

3 4087795.1

= 1980920 / (1+3.5) + 2576570 / (1+3.5)2 + 40877958.1 / (1+3.5)3 - 1700000

NPV = (683965)

NPV = 5357347 - (683965) NPV= 5357347/6041312 NPV = 0.89

NPV = 0.89 +9.6

IRR = 10.48%

IRR is greater than cost of capital so it would be accepted.

Economic Value Addition

Formula = net operating profit after tax - (capital invested * WACC)

475662 -(1700000*.096)
 38

= 312462
39

Conclusion…
The global cactus water market is observing a rapid growth potential due to the increase in
consumption of plant-based products. Cactus water is a plant-based beverage obtained from the
prickly pear cactus and is extracted by squeezing the juice from the cactus. The water is
naturally low in calories and sugar coupled with being rich in health-benefiting nutrients,
antioxidants, and anti-inflammatory properties. Moreover, the fruity taste of the cactus water
paired with its ability to improve athletic performance, anti-aging, and skin-hydrating
properties, has made it widely popular among consumers. Further, the rise in global health and
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The new trendy beverages, that are innovative plant-based waters, also known as alternative
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Cactus water is a good source of electrolytes which reduces muscle fatigue and increases the
body's ability to transport and utilize oxygen. These attributes of cactus water have increased
its popularity among fitness enthusiasts, thus driving its market.