Project Appraisal / Feasiblity Report of Thermopore Manufactring Company
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Transcript of Project Appraisal / Feasiblity Report of Thermopore Manufactring Company
Project Appraisal Report Page 1 OF 40
EXECUTIVE SUMMARY
1. Project: The project is about manufacturing of heat
insulation products like Thermo pore sheets,
thermo pore spray etc. The project lies in
Thermopore manufacturing industry. The
products of the project have three main
categories are Thermopore EPS Sheets,
Thermopore Blue and ThermoSpray
Polyurethane. The specification of both of
the categories is up to the customer. The
company will be able to produce products
according to the customer specifications.
2. Location: - The location of the project is Ferozpur
Road, Near Ibrahim Masjid, Lahore. The
edge of the location is that it is situated in
the industrial area. The proper infrastructure
is available as it is in the main city area of
Lahore.
3. Sponsors:- The project is sponsored by four business
personnel’s who are well educated and
qualified i.e.
Mr. Shahid Ali, B.B.A (Hons) Finance
Bahawalnagar
Mr. Syed faraz-ul-Hassan, B.B.A (Hons)
Finance, Bahawalnagar
Miss. Shazia Malik, B.B.A (Hons) Finance,
Bahawalnagar
Miss. Aima Razzaq, B.B.A (Hons) Finance,
Bahawalnagar
PRISIM Enterprises Limited Lahore
Project Appraisal Report Page 2 OF 40
All the members are equally contributing
and are equal partners.
4. Market & Plant Capacity: - The target market of our project is PUNJAB
province of Pakistan. We are going to serve
in the different cities of Punjab mainly
Lahore, Faisalabad, Gujranala, Islamabad
etc. At initial stage the plant will operate at
50% capacity and 60% for next two
subsequent years and will be dependent on
demand level for next years.
5. Material & Inputs: - The main raw material of our project is EPS
grains. This is only the single input which
we use in our products. The raw material is
locally available in Pakistan. The raw
material is available in different cities like
Lahore, Karachi and Faisalabad.
6. Project Engineering: - The all kind of machinery used in the
project is locally available in the hometown
i.e. Lahore. It is the plus point for us as we
don’t have to bear the import cost and the
machinery will be timely available after the
order will be placed in the market. The
technical persons for installation of
machinery will also be easily available in
the hometown.
7. Man Power: -
Sr. No.Executive
Staff
Admin
StaffSkilled Labor Semi Skilled Labor
1- 12 5 19 16
8. Implementation Schedule: - The construction period of the project is 10
months which will start from December 2010
PRISIM Enterprises Limited Lahore
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and will end on October 2011.We will start
operations of our project from Nov, 2011.
The slack time of our project can be 3 months
in case of delay in any activity.
9. Cost of Project: -
Rs. In “000”
Sr #. Description Total Cost
1 Fixed Cost82759
2Net Initial Working Capital 3076
3Total Cost 85835
10. Financial Plan: -
Rs. In “000”
Sr #. Description Local Currency Loan Total
1 Debt 30042 30042
2 Equity 55793 55793
11. Operating Results: -
Rs. In “000”Description 2012 2013 2014
Sales 69217 86703 87432
Cost of Sale 47954 58992 59766
Gross Profit 21263 27711 27666
Operating Expenses 5598 6369 6848
Operating Profit 15665 21342 20818
Tax 0 0 0
Net Profit 9663 15386 15142
12. Financial Position of the Company: -Rs. In “000”
Description 2012 2013 2014
Total current Assets 15293 26577 27819
Total Fixed Assets 80180 78401 76622
Total assets 96007 105245 104441
PRISIM Enterprises Limited Lahore
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Total liabilities 30551 33888 29100
Total Owner equity 65456 71357 75341
Total Liabilities and Equity 96007 105245 104441
13. Financial Indicators: - The commercial break even at 50% capacity
is 31.90%. The cash break even at 60%
capacity is 37.97%. The weighted average
cost of funds is 14.92%. The internal
Financial rate of return (IFRR) is 20.17%.
14. Terms and Conditions: - Land will be pledged with the National
Bank of Pakistan as security.
Final contract with material, machinery,
suppliers and civil work need to be
disclosed to the Loan Sanctioning Bank
i.e. National Bank of Pakistan.
The loan will be paid necessarily in 10
equal annual installments. The bank will
charge penalty on delay of installment or
interest amount.
For further financial assistance approval
from National Bank of Pakistan is
essential.
Accessories and utilities will be provided
and installed by the contractor as per
contract agreement.
If he contractor will be delaying the civil
work from the agreed period without
major reasons, he will not be liable to
claim the contract profit.
PRISIM Enterprises Limited Lahore
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INTRODUCTION
Traditionally the EPS thermopore industry started operations at small level
firms in Germany in 1958. Later on as the developments were made in the
technology regarding manufacturing of the products and production started in
different countries. In 1961 Mr. Hassan Mumtaz introduced this technology in
Pakistan and India simultaneously. These units produced thermo pore sheets at
initial phase.
The name of our project which we are going to start is “Prisim Enterprisies
Limited” which will be located at Ferozpur Road, Near Ibrahim Masjid,
Lahore. The project lies in Thermopore manufacturing industry. The project
includes manufacturing of heat insulation products for houses and industries
and will also be the packing material of different firms. The main categories of
the products are Insulation products and packing products. The products under
insulation category are Thermo pore insulation sheets, thermopore spray
polyurethane, Thermopore blue and pipe insulation. The company will be able
to produce products according to the customer specifications. Our products can
be used for the following purposes: -
Insulation of flat roofs, pipes and tanks
Insulation of cold stores
Insulation of walls
Sound proofing of offices, homes etc
Shock absorption and insulated packaging
Cups for hot and cold drinks
PRISM ENTERPRISES is capable of creating to all of your insulation needs.
The main features of our products are as follows: -
High resistance to heat/cold
Insulates your roof permanently for the life of your building.
Energy savings means reducing the electricity and gas bills.
PRISIM Enterprises Limited Lahore
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Decreases 70C to 90C temperature as compared to the un-insulated
buildings.
Increases the life of your building
Good sound insulation
THERMOPORE Sheets are extremely low thermal conductivity, light but
strong, high compressive strength and CFC Free. Sheets range from
Density of 12kg/m3 to 45kg/m3 with standard Density for variety of
Application, Sheets will be available in size of 2m x 1m, 1m x 1m and 8 x
4 feet 4 x 4 feet from ½ up to 22 thicknesses.
THERMOSPRAY Insulation (Polyurethane) is an Insulation
breakthrough. Spray applied as liquid it expands in seconds to many times
its volume to form a continuous layer with no gap, providing Superior
Energy Efficiency and improved indoor comfort.
THERMOPORE pipe insulation keeps the water cold in summer and
water remains warm in insulated pipes during winter. This product will be
available for customer up to his specifications but the recommended
density is 30Kg/m3.
THERMOPACK provides safe handling and eliminates breakage of
valuable products. THERMOPACK packaging can easily be calculated
designed to customer’s specifications. The broad spectrum of properties
and individual adaptability of THERMOPACK permits economical
solution of packing problems which vary vastly from product to product,
and from sector to sector.
BOXES especially designed for perishable items such as vegetables, fruits,
frozen meats, ice cream, fish and Medicines (vaccines).
PRISIM Enterprises Limited Lahore
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MARKET AND DEMAND ANALYSIS
INTRODUCTION
In Pakistan at present, the EPS thermopore industry includes the manufacture
of thermo pore (EPS) sheets, Polyurethane spray, thermo pore blue, thermo
pore pipe insulation, thermo pore packing, thermocol, insulated boxes and false
ceiling. Important products of this industry are thermo pore EPS, insulated
boxes, and newly developed thermo pore spray and thermo pore blue. In the
beginning raw material used in each of product e.g. Expandable Polystyrene
Styrofoam EPS , chemical BSF, polure, isese nite were imported from
Malaysia, Holland and Taiwan but now a days raw material is locally available
in Karachi.
Traditionally the EPS thermopore industry started operation at small level firms
in Germany in 1958. Later on as the developments were made in the
technology regarding manufacturing of the products and production started in
different countries. In 1961 Mr. Hassan Mumtaz introduced this technology in
Pakistan and India simultaneously. These units produced thermo pore sheets in
initial phase. Initially the process was slow and so much time is required for the
production of finished goods but later on as the technological developments
was made, the industry updated itself with latest machinery and equipments
and production at large level has been started. Further, large sized units were
developed, equipped with modern steamers, pumps, blockmoulds etc.
PRESENT CAPACITY
At present, there are over 7 No. firms in Punjab and 3 No. firms in the Sindh.
Industrial enterprises is only the firm which is producing Thermopore blue.
However, many other units are equipped with latest machinery for thermopore
sheets, and packing material. Total annual production is 2100 tons to 2500 tons
in Punjab and 750 to 800 tons in Sindh.
PRISIM Enterprises Limited Lahore
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In addition to this the following are the firms in Sindh and Punjab with a total
annual Production Capacity of 2905 tons per year.
Following is the detail of thermopore manufacturing firms along with their
production capacity:-
(Capacity In Tons Annually)
NAME OF FIRM/COMPANY LOCATION CAPACITY
Saudagar Thermopole Industries Lahore 365
International Petrochemicals Ltd Lahore 285
Pakistan Thermosole Karachi 310
A.T.M. Industries (Pvt) Ltd. Karachi 260
Therm-o-mechs Industries (pvt) ltd.Lahore 180
Cool Pack Thermopore Inds.Lahore 290
Shahid Thermopore & Aluminium Faisalabad 325
Saeed & Sons Internatioanl Faisalabad 340
Pak Petrochemical Industries Karachi 185
Industrial Enterprises (Pvt) Lahore Lahore 365
PRODUCTION
Actual Production is about 310 tons a year. The following table shows the output of
Thermopore EPS, Thermopore blue and other products in recent years:-
YEAR
TOTAL
PRODUCTION
Thermopore
EPS Thermopore Blue OTHER
2005-06 2,237 2,103 0 134
2006-07 2,324 2138 0 186
2007-08 2,527 2,224 0 303
2008-09 2,469 2,025 38 406
2009-10 2,469 1,728 494 247
THERMOPORE EPS PRODUCTION
(Tons)
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FUTURE DEMAND
The demand is forecasted on the basis of total no of contractors in the target
market. The data about the total no. of contractors, consumption of the product
in the contracts have been collected through hard work and field interviews and
mobile communication with different contractors. According to them the no. of
contractors can increase up to 2.5% every year. Ultimately the no. of contracts
and consumption of our product will also be increase up to 2.5%.
PROJECTED DEMAND FOR EPS
(Capacity In Tons Annually)
YEARNo. of
Contractors
No. of Contracts
win by them
Avg use of EPS in each
contract
Total Demand for EPS
Supply Gap
2011-12 10,500 157,500 0.040 6,300 4,775 1,525
2012-13 10,763 157,500 0.041 6,458 4,894 1,563
2013-14 11,032 157,500 0.042 6,619 5,017 1,602
2014-15 11,307 157,500 0.043 6,784 5,142 1,642
20915-16 11,590 157,500 0.044 6,954 5,271 1,683
THERMOPORE INSULATION SHEETS
Insulation Sheets:
Industrial Enterprises Manufactures the widest range and is capable of catering
to all your insulation needs.
PRISIM Enterprises Limited Lahore
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Density and Size:
Sheets range from density of 12kg/m2 to 45kg/m3 with standard densities for a
variety of application, Sheets are available in size of 2m x 1m, 1m x 1m and 4
x 8 feet 4 x 4 feet from ½” up to 22 thick. Recommended roof insulation
thickness 75mm (max) to 50mm (min) of THERMOPORE-Blue.
PCSIR Laboratories had independently tasted and verified our product range to
meet international standards as per ASTM and DIN codes
Density Water Absorption
Flexural Strength
Thermal Resistance
Water Vapor
Presence
Immersion %
Psi F.ft2.h/Btu Mg/m2
12Kg/m3 4.0% 16 3.5 5.0
15Kg/m3 3.95% 27 3.8 4.9
18Kg/m3 2.85% 36 4.0 3.4
20Kg/m3 2.5% 41 4.2 3.4
30Kg/m3 0.3% 60 4.8 0.9
THERMOPORE-Blue®35Kg/m3
0.15% 110 5.85 0.3
THERMOPORE Blue
The only key for your top roof
What THERMOPORE-Blue® Does?
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High Resistance to Heat/Cold.
Insulates your roof permanently for the life of your building.
Means more energy savings. Reducing electric / gas bills.
Decreases 7oc to 9oc temperature as compared to un-insulated building.
Economical against its utility and pays back in a short time.
Increases the life of your building.
Good sound insulation
What does Thermopore-Blue Have?
Extremely low thermal Conductivity Meeting ASTM & Din Standards.
Density 35kg/m3
PCSIR Tested & Approved.
Reduced Water Absorption.
Resistance to Ageing.
From your trusted source.
International standard Quality.
Recommend Thickness 2” & 3”.
Extremely low Thermal Expansion.
THERMOSPRAY POLYURETHANE
PRISIM Enterprises Limited Lahore
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The Insulation Solution
Thermo Spray Insulation is an insulation breakthrough. Spray applied as liquid,
expands in seconds to many times its volume to fill every nook and cranny,
providing superior energy efficiency and improved indoor comfort. Thermo
Spray is the leader in Polyurethane Foam insulation. Spray applied
Polyurethane is seamless, monolithic light weight and water resistant. It is
easily applied to all types of surface in industrial, commercial, residential and
agricultural sector providing a tougher, insulation ensuring lasting performance
in serve climates.
Energy Efficiency
Thermo Spray is the energy efficient, smart choice for industrial, commercial
and residential insulation requirements. Insulation provides the long-term
energy efficiency now demanded by the construction industry. Heating and
cooling a home account for 50 to 70 percent of the energy costs in the average
home with stable thermal performance of insulation, the savings resulting from
lower heating and cooling costs add up per the life of the structure. In addition,
a reduction in energy use also helps to conserve nonrenewable fuel supplies.
The decreased use of fuel and energy translate into reduced air pollution. By
utilizing more energy efficient materials and products in our homes, we can
reduce the amount of air pollution.
Low Thermal Conductivity
Thermo Spray has one of the lowest thermal conductivity ratings that allows
efficient reduction to heat transfer.
Compatibility:
Thermo Spray is compatible with a large number of building surface,
including, metallic structures, brick linings, concrete surfaces, plain glass, fiber
glass, plasterboard, wooden surfaces, plywood, etc.
PRISIM Enterprises Limited Lahore
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Energy Efficient & Cost Effective
This style of insulation is one of the best insulation materials available in the
market. It directly translates into reduced energy costs. Insulation usually pays
itself within the first couple of years. Better insulation results in less energy
usage consumption
Typical Chemical & Physical Properties
Prepare the roof. Clean it of dust and sediment. Dry off completely.
Thermo Spray is sprayed layer by layer till the required thickness is achieved.
THERMOPORE PIPE INSULATION
What should I do with hot water on hot sunny days? & what should I do with cold water on cold days?
WHY IT IS USED? PIPE INSULATION
Because THERMOPORE pipe insulation keeps the water cold in summer and
water remains warm in insulated pipes during winter.
Availability: 1 meter Length Minimum Inner dia 20mm Upto customer’s requirements.
Recommendations:
Density 30Kg/m3
Min. Insulation wall thickness 40mm
THERMOPORE PACKAGING MATERIAL
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Polyurethane foams have defined strength characteristics.
THERMOPACK provides safe handling and eliminates breakage of valuable
products. THERMOPACK packaging can easily be calculated designed to
customer’s specifications. The broad spectrum of properties and individual
adaptability of THERMOPACK permits economical solution of packing
problems which vary vastly from product to product, and from sector to sector.
Insulated Boxes
Boxes especially designed for perishable items such as vegetables, fruits,
frozen meats, ice cream, fish and Medicines (vaccines).
Food Packing
Different kind of Lunch Boxes, Soup Bowl, Birani Box, Serving Trays and any
food Packing as per customer requirement.
Disposable Cups
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Disposable cups are available in size
of 125ml, 200ml, 220ml, 230ml and
240ml.
INSULATION BOXES
Boxes especially designed for perishable items such as vegetables, fruits,
frozen meats, ice cream, fish and Medicines (vaccines).
PRICING ANALYSIS
Main Products
THERMOPORE Insulation Sheets
The price range varies upon the density and size of the sheet required by the
customer. However price for sheet of 1 square feet and 1” thick is Rs. 14.70/-.
THERMOPORE Blue
The price of this product is also depends upon the density and size of the sheet
required. However company prefers to use at least 2” thick sheet. The price for
1’x1’ & 2” thick is Rs 36/-
THERMOPORE® Pipe Insulation
PRISIM Enterprises Limited Lahore
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The price of the product depends on dia of pipe and thickness of the sheet and
length of pipe. The price for 3 inch dia pipe, 1”thick sheet and 1 meter long
pipe is Rs. 37.86/-
THERMOPORE Packaging Material
The price of packing material ranges differently on the basis of shape of
material required, thickness, density, length etc
PRISIM Enterprises Limited Lahore
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Insulation Boxes (simple box)
The price of insulation boxes is also varying to shape of box, density, thickness
required etc. However the price of a simple box of 4 sides of 1 feet length and a
cover of 1 feet is Rs 88.2/-
Following is the table showing prices of the products and by-products:-
TABLE SHOWING THE PRICES OF PRODUCTS AND BY-
PRODUCTS
S. No. Product Unit Prices (Rs)
1 THERMOPORE® Insulation Sheets 1’x1’ & 1” thick 14.70/-
2 THERMOPORE® Blue 1’x1’ & 2” thick 36/-
3 THERMOPORE® Pipe Insulation3” dia, 1 meter
long, 1’ thick37.86/-
4THERMOPORE® Packaging
Material
Price varies with requirement.
5 Insulation Boxes (simple box) 1’x1’ & 1” thick 88.2/-
NOTE: The prices have been computed on the basis of fresh data.
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TECHNICAL ANALYSIS
The technical analysis includes following steps: -
MANUFACTURING PROCESS:
The manufacturing of Thermorpore EPS sheet is step by step process.
The finished product is produced through following processes: -
Polymerization: -
When making EPS foam, Pentane Gas (C5H12) is normally used as the
blowing agent. A small amount of pentane gas is injected into the resin in a
process known as Polymerization.
Pre-Expansion Process: -
Begin the pre-expansion process. After the resin granules have been
impregnated, place them into your steamer and use steam to heat the granules.
The heat will cause a reaction with the granules and the blowing agent, and will
cause the polystyrene granules to expand to 50 times their original size. At this
stage you have a large number of individual foam pellets that are ready to be
molded.
PRISIM Enterprises Limited Lahore
POLYMERIZATION PRE-EXPANSION PROCESS
MOLDING
MOLD HEATING
PROCESS: -
COOLING PROCESSCUTTING
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Molding: -
Decide on what method of molding your will use on your EPS foam. There are
two standard options for molding. The first method is to use a "shape
molding" machine. This method will mold your foam to the precise size and
shape of the product being developed. The second option is to use a "block
molding" machine. Doing block molding creates large blocks or even sheets of
EPS foam, which can later be cut to the size and shape that the customer
requires. It is important to decide which method applies to the EPS foam you
will make, so that you can choose an appropriate molding machine.
Mold Heating Process: -
Pour the EPS granules into your mold and complete a second heating. The
second time the granules are heated with steam; they will swell within the mold
and become pressed together into one solid piece of foam. It is this mold
heating process that transforms them from individual grains to a sheet of EPS
foam.
Cooling Process: -
Remove the EPS foam product from the mold and allow it to cool. The cooling
time will depend on how large your foam item is. Allow the foam to sit and
cool until it has reached room temperature. Inspect the mold for any cracks or
damage before approving it for use.
Cutting Process: -
When the EPS foam is cool down than it is passed through the cutting process
from cutting machine where the pieces of desired requirement have been cut
down.
CHOICE TECHNOLOGY:-
The technology we have chosen is already in used by the firms in this sector.
The raw material for the technology is readily available in the local market.
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This technology is also latest and skilled labor for operating this technology is
also available at local level.
MATERIAL INPUT AVAILABILITY:-
Our raw material is the processed industrial finished goods which is easily
available in the local market.
LOCATION AND SITE SELECTION:-
We have taken into account the following factors while making the
location decision for our project: -
Availability of Raw Material:-
We select this location because raw material will be easily available here
because it is city area of Lahore and raw material is easily available from
different shops of local market of Lahore.
Availability of Labor:-
As the Lahore is developed city, it will be advantage for us that the
skilled labor which has the know how of operating machinery is easily
available in Lahore.
Transportation Cost:-
The proposed location is Farooz Pur Road near Masjid Ibrahim Lahore.
The project will be there where transportation can be easily possible and cost of
transportation means for delivery of products and coming of raw material to
factory will be less costly.
Utilities:-
Utilities are easily available there because as we already explained there
are so many firms operating in this area so electricity, water and
communication media’s are easily available.
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Labor Situations:-
Labor situations are positive and favorable for our project as the
required skilled and semi skilled labor is easily available in the city. Moreover
the labor is hard working of that area and there is no any unionization labor
exists.
Government Policies:-
We will work under the abeyance of rules and regulations imposed by
the Government.
Climate Condition:-
The climate conditions for the selected site are in the favor of the
project.
Living Condition:-
The site of our project is suitable for living conditions also because here
many firms are operating already and living facility is easily available.
Environmental pollution:-
Our proposed project site is not harmful for environment it will create
sound pollution but not more than enough so it is situated at industry area
where the residential area is not so much near to it.
Machinery and Plant:-
We will purchase our machinery from only one supplier because our
machinery will be available in the local market.
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FINANCIAL ANALYSIS
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Annexure-VI-A PRISIM THERMOPORE ENTERPRISES LIMITED (PRPOPOSED)
FEROZPUR ROAD, NEAR MASJID-E-ABRAHIMI, LAHOREASSUMPTION UNDERLYING THE EARNINGS FORECAST
A- PRODUCTION AND SALES1. The proposed Thermopore unit would be equipped with
1 steam generator
The pressure of thermal source should be over than 6 bars (kg/cm2), active temperature
range: 105 ~ 160 ℃, it designed according to customer needs, heating speed: according
to industry and specially designed heating rate, or customer needs and design heating
rate, heating options: direct heating, jacket heating, water immersion heating process,
operating system: manual / semi-automatic control / full automatic microcomputer
control system.
1 preforming machine
Features:
* To form consistent density in the raw material used
* Designed to maintain weight of products such as sheets & Moulded buffer
Specifications:
* Strong M.S structure S.S shell
* 7.5-hp motors with reduction gear box
* 2 hp motor with high flow blower
* EPS material feeding screw device with 1-hp motor & hopper
* Manual parameter control
1 Block Mould
Specifications:
* M.S fabricated strong structure platen (as per client specification)
* Chrome plated guide bar
* Hopper for material stock air
* Water & steam pipe line with valve
* Electric control panel board
* Features timers & contactors, limit switches, pressure Gauges, solenoid Valves 24
PRISIM Enterprises Limited Lahore
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volts Dc
1 Thermocol cutting Machine
It can cut big thermopole blocks into required size.
The proposed company has 3 major product categories and 1 has further sub categories
discussed below: -
Products specification
a) Thermo pore EPS Sheets
Density= 12kg/m2 to 45kg/m3Size = 2m x 1m, 1m x 1m and 4 x
8 feet 4 x 4 feetThickness= ½" to 22"
Pipe Insulation1 meter Length
Minimum Inner dia 20mm Up to customer’s requirements.
Thermo pore Packing UP to Customer requirement
Insulated Boxes UP to Customer requirement
b) Thermo pore BlueDensity: 35kg/m3Size: Up to CustomThickness: 2" to 3"
C) ThermoSpray Polyurethane UP to Customer requirement Annual Production
Annual Production of Products Annual production (Tons)
Annual production of (a) 310
Annual production of (b) 37
Annual production of (c) 18
Total Production 365
1- The above capacity is based on 365 working days per annum at 100% capacity and
project would start operation Nov 1, 2011.
2- Operation efficiency of project assumed that 50% in first year of the operation and
60% in 2nd and subsequent year.
3- Year end inventory is assumed that 5% of production of that particular year.
4- We have assumed that we will sell 100% of our product in the local market.
5- We assumed to sell 100% of our production in local market selling prices assumed in
accordance with the prevailing rates in the market.
Based on these assumptions following are the year wise detailed of production sales and
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sale revenue of a proposed project.
In Tons
a Year ending 31 October 2012 2013 2014
Production of Thermopore EPS 155 186 186
add: opening inventory 0 8 9
Total Available for sale 155 194 195
less: ending inventory (8) (9) (9)
Quantity Sold 147 184 186
Local Sale 100% 147 184 186
b Year ending 31 October 2012 2013 2014
Production of Thermopore Blue 18 22 22
add: opening inventory 0 1 1
Total Available for sale 18 23 23
less: ending inventory (1) (1) (1)
Sold 17 22 22
c Year ending 31 October 2012 2013 2014
Production Of ThermoSpray
Polyurethane9 11 11
add: opening inventory 0 0 1
Total Available for sale 9 11 11
less: ending inventory (0) (1) (1)
Sold 9 11 11
Sales Revenue
Rs In "000"
Local Sale 2012 2013 2014
1 Production of Thermopore EPS 57428 71936 72540
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2 Production of Thermopore Blue 7542 9447 9527
3Production Of ThermoSpray
Polyurethane4248 5321 5366
Annual Sales 69217 86703 87432
B- COST OF PRODUCTION
1. Raw Material
Description 2012 2013 2014
1 EPS grains 182 219 219
Total 182 219 219
Rs In "000"
Cost of EPS Grains @ Rs 220 per Kg 40123 48147 48147
Cost of Packing Material @ Rs 5 per
Kg912 1094 1094
Total Cost of Raw material and
Auxiliary Material41034 49241 49241
2. Labor Cost
Rs In "000"
Category No.
Salery
(Monthly)Annual
Production Manager 1 40000 480
Supervisor 2 10000 240
Repairer 1 8000 96
Worker 32 6000 2304
Total Labor Cost 36 3120
Year vice as under
Production Of Thermo Spray
Polyurethane2012 2013 2014
Total Labor Cost 3120 3432 3775
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Manufacturing Overhead Cost
Rs In "000"
a Fixed Cost
Power: 300 kw @ 170/ Kw / month 612
Insurance 1/2 % of fixed asset cost 414
Repair and Maintenance
Machinery @ 1/2% of installation cost 5
Building @ 1% of construction cost 129
Vehicle @4% of cost 1095
Oil and lubricates 50
Miscellaneous 20
Total Fixed FOH 2325
b Variable FOH
Power: 300 kw x 0.3 x24 x365x5.63 4439
Total Variable Cost 4439
Year ending 31 October 2012 2013 2014
Fixed Cost 2325 2325 2325
Variable Cost 2219 2663 2663
Total Cost Of Over head. 4544 4988 4988
Depreciation Cost
Plant and Machinery (Cost Rs. 7600000) @ 5% 380
Building (Cost of Rs.12877427) @ 5% 644
Furniture and Fixture (cost Rs.500000) @ 5% 25
Vehicles (Cost Rs.7302000) @ 10% 730
Total Depreciation Cost 1779
Administration Salaries and General Expenses
a Administration Salaries
PRISIM Enterprises Limited Lahore
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Rs In "000"
Category No.
Salary per
month Annual
CEO 1 100000 1200
Marketing Manager 1 40000 480
Merchandiser 5 8000 480
Finance Manager 1 45000 540
Accountants 3 10000 360
Drivers 4 8000 384
Security Guards 2 6000 144
Sweeper 2 1500 36
Total Admin salary cost 19 218500 3624
b General Expenses
Traveling and conveyance 120
Printing and stationary 70
Telephone 170
Entertainment expenses 100
Medical Facility 50
Miscellaneous 20
Legal expenses 60
Total General Expense 590
Total Admin and General Expenses 4214
Selling Expenses
2 % of Sales Revenue
Year ended 31 October 2012 2013 2014
Selling expenses 1384 1734 1749
PRISIM Enterprises Limited Lahore
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PRISIM Enterprises Limited Lahore
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PRISIM Enterprises Limited Lahore
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PRISIM Enterprises Limited Lahore
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PRISIM Enterprises Limited Lahore
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ECONOMIC ANALYSIS
The project has great impact on the economy of Pakistan. The project will
generate employment and ultimately contribute towards the decrease in un-
employment in the Pakistan to some extent. During construction period of the
project almost 150 skilled and semi skilled people will get employment. After
the completion of the project almost 60 people will get permanent employment.
Ultimately it will lead to improve there living standards. There will be minor
increase in per capita income due to the project. The Gross domestic
production of the country will also increased which will leads to the increase in
Gross national income of the country. The industry of thermopore will flourish
due to our project. The project will generate revenues and will contribute in
Government revenues in the form of tax. The project will also increase the
GDP of the country.
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CONCLUSION
The project is the result of careful market observation and the struggle and hard
work of team members. All the partners of project are well educated and the
project has potential not only to be a successful project but also the chances of
growth are very much bright. As all the things have been carefully prepared
and analyzed i.e. cost related to different activities, market and demand
analysis, Estimated financial statements and tools measuring the success of the
project. All the results are in the favor of the project. Our target market at
initial level is Punjab province of Pakistan as maximum constructions of
houses and industrial projects is in Punjab. The site selection is big favorable
edge as the raw material, labor and utilities will be easily available as the
project is in the industrial area of Lahore. Moreover the measurements which
we have taken for estimation purpose like estimating building cost, sanction of
loan etc are based on reality.
After the careful analysis of this project we are come to the
opinion that the project will be INSHALLAH successful.
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PRISIM Enterprises Limited Lahore
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PRISIM Enterprises Limited Lahore