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(AL-ALAQ)
READ! AND THY LORD IS THE MOST
BOUNTENOUS, WHO TEACHETH
BY THE PEN, TEACHETH MAN THATWHICH HE KNEW NOT.
ALLAH DOES NOT LOOK AT YOURFORMS AND POSSESSIONS
BUT HE LOOKS AT YOUR HERTS AND
DEEDS.
(MUSLIM)
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OUTLINE
-Introduction to industry
- Market Analysis-Technical Analysis
-Personal Analysis
-Financial Analysis-SWOT Analysis
-Recommendation & Conclusion
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Farhan Khizar
Roll no # 24
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Introduction to Industry
Wheat is one of the most important products for all ofregion of the world.
Without wheat human life is uncompleted. It is become more important not only by the fact of
improvement international value. Its a first food item that an important for all over the
world. That business also important for a Pakistan. And last decades the flour mill are increase due
increase in demand of flour.
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Early concept offlour mills
Firstly wheatis grindingwith the helpof themachinewhich is run
by themanually(Desi Chakki)
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Early concept
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First modern concept
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Grist millsconstructed in theearly 1600's togrind corn and
wheat to makeflour for the earlyEnglish settlers of
coastal areas
The History of Flour Milling InEarly America
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It was brought to in 1626 byDutch and German settlers.
Buckwheat spread down fromNew York, into Pennsylvania,western Maryland, West Virginiaand into Michigan. In the Northand New England the type of
corn used for milling is yellowfield corn.
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So after about 1730 most mills of any size operated their flour siftingmachinery by water power rather than being hand sifted.
So the designs of water wheels and milling machinery changed in
the 1800's.
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History of Flour mills in Pakistan
1957 - Pakistan Flour Mills Engineers was
established in 1957. We havw been carteringto the requriments offlour mills in Pakistan
entirely to the satisfaction of our worthy
customers.
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There are two types
There are two types of mills or milling operations.
Custom mills grind grains individually for farmers and
other individuals. The miller is paid for his services ofmilling by collecting a toll. A toll is a portion of the
grain brought to the mill for grinding
The other type of mill is a merchant mill. A merchant
mill Is a commercial milling operation.
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Market Analysis
Production in Pakistan for the last 5 years (000 tons):
2004-05 2005-06 2006-07 2007-08 2008-09
21612 21277 23295 20959 23421
Present demand:
Present demand of flour is about 25525000 tons in this current year.
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Cont
Demand supply gap: The supply of flour is about 23225000 tons and demand is
about 25525000 tons.Ex-factory price(price which u will sell to whole sellers) The ex-factory price of 20kg bag of floure is 540 The ex-factory price of 20kg bag of maida is 740
The ex-factory price of 20kg bag of bran is 220Retail price The retail price of 20kg bag of floure is 560 The retail price of 20kg bag of maida is 760
The retail price of 20kg bag of bran is 240
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Distribution Channel
WHOLESALERSFACTORY
CONSUMER RETAILERS
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Amir Fraz
Roll No # 11
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Technical analysis
Fourmajor points.
1. Land for project2. Machinery for project
3. Labor for project
4. Raw Material
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Land for project
Land 120 marla @ 68000 per marla
Registratioin & Legal Requirements 1% ofcost of Land
Stamp Duty 2% of Cost of Land
District Council Fee 1% of Cost of Land
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Machinery for project
Seprator ELEVATOR
LOW PRESSURE FAN
WASHING MACHINE
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Cont
Magnetic Machine Ruler Body Shifter
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Cont
PURIFIER Air Lock Battery Cyclones
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Labor for project
Total Cost of Milling Staff 10,735
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Manufacturing process
Flow chart
Wheat received in
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the Factory
Wheat is weighted on
the Plate Form
Elevator 1 Elevator 2 Elevator 3 Elevator 4
Wheat goes toSeparators for Clearing
Separator 1
Separator 2
Separator 3
Wheat goes to Bin to
send it for Washing
Washing
Machine
Wheat goes to Bin to
send it for Grinding
Roller Body
Sifter
Packing
Output is send to
Market
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Raw Material
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Personal Analysis
Director ProductionDirector General Admin
Manager Purchase
Dept.
Chairman
Manager Sale Dept.Fore manproductions
Manager a/cs Dept. Supervisors
Skilled labor Unskilled labor
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Financial Analysis
RATIOS 1 2 3 Current Ratio 2.38 3.080 3.69
Cash Ratio 2.29 3.99 6.05
Liquid Ratio 2.44 4.25 6.42
Debt/Total Equity 1.31 .96 .72 Net Profit 9.55% 9.90% 12.25%
Internal Rate Of Return 30%
Pay Back Period 2.35 years
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Humaira kanwal
Roll No # 09
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Strengths
The labor to manufacture flour is easily
available we can reach easily to low cost
labor. Moreover the location for our project is
very attractive. We can avail maximum
advantage from this market.
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Weaknesses
Our weakness is that we are not producing
flour up to the present demand of the
consumer. Because we have dependend on
govt for wheat and electricity problem is also
our weakness.
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Opportunities
Pakistan is an agricultureal country, the
production of wheat is very high.flour is
neccessry for all kind of people so, demand
of wheat is repedly increases.also there is no
enough flour mills to fullfill the demand so,
there is great opportunity to establish flourmill.
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Threats
The market of the flour mills is highly
competitive; therefore if the entrepreneur is
not well responsive and fulfilling the demand
of the consumer he/she may not be able to
capitalize the opportunity properly.and the
qotta system is used the supply of wheat notprovided to flour mills according to their
demands
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Conclusion and Recomendation
We conclude that on the basis of field work and surveu offlour mills that the flour is neccessry product
Demand increse day by day. There is no chance to decrease the demand of flour.Pakista is an agricultural country and wheat is the one ofthe major crop.
Availability of raw material is very easy. So, conclusion is that the flour mill is a profit motive
business because no chance of decrease of demand.
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Cont
Our recommendation to new investors is that
they must invest in flour mill because from
the last year there is the shortage of flour in
pakistan. So, they step forward to minimize
this shortage, and also contribute in the
economic as well as social groth of Pakistan.
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Special Thanks
We bow our head, before ALLAHAlmighty,
who blessed us with potential and stamina to
complete our fesibility report on flour mill.
First of all would like to pay our special regards
to Respected Sir Mr. JAVED IQBAL who
provides us guidance at each and everystep, in completion of all this feasibility report.
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We are especially thankful to those personalities who help us incollecting data during the fieldwork and also in our practicalwork.
In this regard our thanks goes to:
Mr:Arsalan rabbani, Mr: Shakeel ahmed Mr: Jawad-ul-hasan, Mr: Mohsin shazad Mr: Hunain khan, Mr: Adnan ch Mr: hasan qureshi, Mr: Farzan rafi,,
AndAll of our class fellows
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U G f I d t i
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