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Author
Participates in
Coach
 
Business established

HANIF MOHAMED LTD

Road Transportation

Increase vehicle units within the existing fleet, which would enable the company to meet increasing demand, for transportations of goods within the local market (Kenya) and the lucrative Southern Sudan route. The support would also initiate the set up of a mobile office in Lokichoggio and a workshop in Juba; to enhance service quality and communication. The requirement is to have sufficient working capital to set up and facilitates the smooth running of the operation.

Facts

Year of establishment

1984

Sales (US$)
Two years ago:
Last year:
This year (forecast): 465,720
Year 2 (forecast): 652,008
Year 3 (forecast): 2,207,208
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 176,974
Year 2 (forecast): 247,763
Year 3 (forecast): 838,739
Total number of Employees
Two years ago:
Last year:
This year (forecast): 60
Year 2 (forecast): 80
Year 3 (forecast): 100

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 321,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 14,000
Total finance needed (US$) 335,000

How do you expect this to be financed?

Own Contribution in cash 28,000
Loans (debt) 510,000
Shares in your company that you offer to investors (equity)
Other sources 10,000
Total finance needed (US$) 548,000

The Business

What is your product/service?

We are a service based company; as commercial transporters our main line of business is to ferry goods by road using long haulage trucks. We specialise in transporting general goods, bulk cereals, relief food, building material, fuel and acid (in special tanks).
We are contracted by organizations on a yearly basis; contracts are usually renewed each year at times a particular contract every year. Once goods are loaded onto our trucks it is entirely our responsibility to deliver the goods to its final port of call.
Our main regions of operations are within Kenya, Uganda, Tanzania and Rwanda.
We are now planning to venture into the South Sudan sector once again as, we were one of the pioneers in transporting into Southern Sudan and worked for organisations such as
· International Christian Aid,
· Life line relief & development services international ltd,
· Norwegian Church Aid
· The Lutheran World Service – Sudan,
· International Union For Child Welfare
. George Wimpy International (helped transport machinery and building
material to build roads and bridges before the war).
· Most recently for the United Nations World Food Programme.

We have our own workshop, stock of spare parts, machineries, tools and the man power and we service our own vehicles.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

The service of transport, traditionally regarded as invisibles is now a very important component of trade, and is required by every sector. It is now literally treated as a consumable commodity with unlimited demand subject to competitive rates and ability to perform.
We already have a reliable name in the market however our main hindrance currently is that we are not able to provide our services to all our clients and therefore have to shy away, we only commit ourselves to what we can handle, due to our fleet size and the age of most of our truck, however we do have an existing market with our current clients and will continue to attract more.
Over the recent years the number of transport companies in Kenya has sky rocketed most are however one truck operators and can not be considered as a threat since they are not in a position to sign up for large consignments, and end up working as sub-contractors for companies like ours.

What makes your business different/better than your competitors (competitive advantage)?

Transportation of is a very essential element in a growing economy. The transportation of relief food to the devastating parts of the North Kenya, flood victims in the west is most important and working on such project is quite a fulfilling on a personal front too. Locally there is demand by local manufacturing companies to ferry their exports, it is also an important requirement by our neighbouring land lock countries.
The South Sudan corridor has its own demands of building material, building machinery, general goods and relief food too.

The Entrepreneur & Management

Describe the entrepreneur & management

I am a graduate from the University of Central England in Birmingham and hold a degree in automotive engineering.

On the technical front: Working at the workshop has broadened my understanding of many machines and their related engineering, in fact we are quite versatile in reconditioning engines. I have in-depth knowledge of the road conditions and can identify the type of trucks that would be suitable for them, as I have had the opportunity to have travelled widely around the region with my trucks, thus I have a first hand experience of the environment.

In the past few years I have also involved myself with the managerial aspects of the business, by interacting with the banks, government agencies and most importantly with our clients.

I feel that I have the necessary skills both technical and at the managerial level to run this business effectively and efficiently.

Development

How does your business improve the local living standards (social and environmental)?

We feel that our company like any other small business is an integral part of the business sector in Kenya. We may not be linked directly to any development as such but we are a part of the chain reaction that is working hand in hand with other companies and individuals to make a brighter future for our people and country.

Every harvest we become an important link that transports cereals from the country side to the towns where by the government builds up food reserves, we then supply these to the needy areas
Supplying food and supplies to people in dire need is one off the most up lifting moments in any relief food transporters career, I feel that we are one of the very few who have had the privilege to be in a position to help for a number of year now.

We hope to provide our services to developing agencies to supply building material to the Southern Sudan region this not only will help in rebuilding the region but bring hope to the people of the region. By building a base in Juba we will be in a position to directly help the people by offering employment.

Looking at it more directly we are able to offer employment and have been training up to 5 young men every year as mechanics at our workshop in Nairobi.
We have also launched an Aids/HIV awareness programme that educates our employees and close society about the epidemic. As a transport company our employees fall under the most venerable population to this epidemic therefore we find it very important to educate them about this epidemic and bring about a behaviour change towards this disease.