VICTORIA BEVERAGES BUSINESS STATUS
Mineral Water Manufacturing Company
Victoria Beverages Limited (VBL) is a Ugandan private limited company incorporated in 2001 to construct and operate a US$900,000 mineral water factory. The project is strategically located in the unpolluted gentle hills of Buwate which is about 13 kms from Kampala City. The current estimated value of the factory is US$ 1.1 million – [land, building, machinery and equipment]
Facts
2001
| Two years ago: | 0 |
| Last year: | 401,235 |
| This year (forecast): | 962,962 |
| Year 2 (forecast): | 1,925,925 |
| Year 3 (forecast): | 2,407,406 |
| Two years ago: | 0 |
| Last year: | |
| This year (forecast): | -79321 |
| Year 2 (forecast): | 288,888 |
| Year 3 (forecast): | 361,110 |
| Two years ago: | 2 |
| Last year: | 65 |
| This year (forecast): | 67 |
| Year 2 (forecast): | 75 |
| Year 3 (forecast): | 77 |
Finance needed
| Finance needed for fixed assets (buying of machines, buildings, ...) | 75,147 |
| Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) | 474,853 |
| Total finance needed (US$) | 550,000 |
How do you expect this to be financed?
| Own Contribution in cash | |
| Loans (debt) | 350,000 |
| Shares in your company that you offer to investors (equity) | 200,000 |
| Other sources | 0 |
| Total finance needed (US$) | 550,000 |
The Business
Mineral water manufacturing
Provides clean and safe drinking water
Apart from the pressurized sand filters and activated carbon filters, we have also adopted the latest technology for Water treatment; the Reverse Osmosis Water Treatment System (RO). Water is further disinfected by both high intensity ultra-violet (U.V) radiation and ozone treatment.
VBL has decided for now to use “below the line” promotion strategy – using networks and personal visits to sale until such a time when the brands are in an appreciated number of selling points. The strategy has proved the most efficient with VBL able to sell all that it is producing.
Victoria Beverages initially launched its products through retailers in the Kampala City Business District and its hinterland urban districts. The target region is a strong consumer of mineral water and has the purchasing power.
• Rwenzori Beverages
o Strengths: The main strength of Rwenzori Beverages is that they are the pioneers in the industry and they have managed to maintain their market share. It also has very reasonable prices and they are ISO 9200 certified. They also export to the neighbouring countries
o Weaknesses: The primary weakness of Rwenzori Beverages
VBL is currently producing 600ml which is very popular and this is a major positioning point too. VBL has possibly the best bottle design which is so appealing.
VBL is currently producing 600ml which is very popular and this is a major positioning point too. VBL has possibly the best bottle design which is so appealing.
A 60% growth rate in the industry is assumed annually for the period 2003 – 2007 given the latest production and sales volumes from the existing manufacturers, the political stability and the potential of the export markets.
The export market has picked up in DR Congo and Juba – Southern Sudan. Mineral/ water bottling is an ideal business for Victoria Beverages given the potential market segment, location, and climate.
The Entrepreneur & Management
The major sponsor of this project is Andrew Lugalambi a seasoned business man with experience in furniture trading, procurements and logistics services spanning 10 years in private sector. He has an MBA.The second sponsor is Robert Waggwa Nsibirwa a seasoned Executive Manager and Financial Economist with vast experience in resource management and financial planning and analysis. He has an MA in Economics.
Mr. Andrew Lugalambi, the chief sponsor manages the business as the Managing Director assisted by an experienced Executive Director, a qualified Accountant, qualified and experienced Sales and Marketing Officer, a qualified and experienced Quality Assurance/Production Head and an Engineer. The total work force to date is 50 with 25 permanent staff and 25 casual/semi skilled workers.
Andrew Lugalambi as Managing Director of this company is devoting 100% of his time on VBL.
Development
It is providing employment especially women with low skills who are earning and are able to look after their families.
