00000 X 2 Tk example essay topic

PROJECT FEASIBILITY REPORT OF DYEING UNITOFINTERSTOFF CLOTHING LIMITEDGULSHAN, DHAKA. INTRODUCTION The company has existing Woven & Knit Garments, Knitting-Knit Dyeing & Other related Industries and exporting Garments for last 10 years to Europe, USA & Canada successfully. School Dress is one of the major exporting items which requires T.C. 65/35 dyed fabric and depends on imported Dyed / Finished fabrics. It requires about 40000 yes. every day. The management feels to set-up own production units considering the following: (a) Export to Europe can attract GSP benefit up to 12% on FOB value of the Garments if the garments are produced from locally produced fabric. (b) Buyer's productivity - currently lead time for obtaining imported fabrics at lest 70 days in each production cycle, local fabric can reduce this lead time to 30 days, thereby enhance the makers ability to complete double production cycle in a year. This reduces the makers overhead and makes him more competitive. (c) If any problem arises in the fabric, that can be get replaced the same in a very short time and in case of imported fabrics, it is almost impossible to get replacement, causing short shipment or non shipment in schedule time.

TECHNICAL ASPECTS Product mix and Capacity: The annual production capacity is designed on the basis of 300 days a year on 3 shift of 8 hours duration each day ad the product mix and capacity will be as under: (a) Product: 65/35 T.C. Dyed Fabric, (b) Construction: 110 X 76 / 45 X 45 / 58" (c) Colour: White - 85%, Colour - 15%, (d) Capacity: 40,000 yes. /day Sourcing: Yarn - Imported Weaving - Local Sub-contract / In-house (separate project) Dyeing-Finishing - In-house Weaving: The project needs to weave the fabric from imported yarn through local modern shuttle less looms. Have already done a thorough market survey and estimated that Weaving charge will be Tk. 8.00 per yd. Consumption: Predominantly In-house Manufacturing Process Grey Fabric Inspection Gas Singeing & Desizing Scouring & Bleaching Drying Mercerizing Drying Dyeing Washing & Drying Finishing Sunforizing Inspection & Rolling Delivery Land and Location: The project has been proposed to be located northern area of Dhaka.

Total area of land to be required 2.5 acts. For land development on an average Tk. 60 laws per acre estimated. Assume that for Gas connection 4" dia gas line is to be drawn from main line and for this purpose L.S. Tk. 20 lac has been estimated.

Total cost of land including development cost stands at Tk. 170 lac. Detailed particulars of land are in Annexure... Building and Civil works: The building and civil works of the project will include main factory building, maintenance room, laboratory, Office room, raw materials & finished goods godown, store room, generator, boiler house, pump house, security guard rooms, time office, toilet, prayer room, canteen, administrative building, security barrack etc. Total estimated covered area of the building are of 54200 set. where main factory building is 25000 set. The main building will be made of re-in forced frame structure with r. c. c. roof, brick masonry walls, cemented floor, doors, windows etc.

In addition, boundary wall, drainage, car parking etc. will need. Civil Construction Boundary Wall; Considering Foundation, 1 Great Beam (GB), 2 Linter, 6' height, 3' Barbed wire, cost of the boundary wall for 2.00 acre of newly purchased land will be about Periphery 240 x 2+360 x 2 = 1200 rft x Tk. 200 = Tk. 2, 40,000 Factory Building The construction work for factory building considered as 25000 set. 24' height with iron T uss roof & cost comes about Tk. 1, 37, 50,000.

Steam, Water and Gas pipe Line The proposed machinery will require steam, water & Gas connection. So for Pipe & fittings estimated an amount of Tk. 15, 00,000 for mentioned items including installation charges. Transportation: The projects will require 3 tons 2 nos. covered delivery van to deliver finished goods & the costs will come 12, 00,000 x 2 = Tk. 24, 00,000 Electric Equipment and Cable Transformer 1000 KVA, Distribution Panel, P.F.I. Panel, Tk. 25, 00,000 Different LT cable Tk.

20, 00,000 Total = Tk. 45, 00,000 Security DepositePalli Bidduth S amity Tk. 50,000 Tit as Gas Tk. 11, 50,000 Imported machinery and Equipments. No. Origin no.

Total in USD. 1. Grey Inspection m / c. China / Local (new) 4 15,0002. Gas Singeing & China / Korea 1 40,000 Desizing (reconditioned) 3. L. Box / C.B.R. China (New) 1 280,000 Europe (Re-condition) 4. Mercerizing India (New) 1 70,000 Europe (Re-con.) 5.

Sunforizing India / Taiwan (new) 1 80,0009. Inspection & Rolling China (new) 2 60,00010. Steam Boiler (5 Tons) U. K (new) 1 70,00011. Generator (Waka hsa) USA (new) 1000 kw 250,00012. Laboratory Equipment India lot 1, 00,000 13.

Sewing M / C. China / Japan 8 10,400 Total = $12, 50,400 x Tk. 68 = Tk... 8, 50, 27,000 Local Machinery: SL. no. particulars Nos. Total in BDT. 1. Cloth Trolley 20 2, 00,0002.

Transformer 1000 KVA 25, 00,0003. LT switch gear, PFI plant and earthling complete with distribution board (2 sets each) and local fabrication cost 4. Cable lot 20, 00,0005. Deep Tube-well 2 16, 00,0006. ETP + WTP 70, 00,0007. Covered Van + Micro 4 50, 00,0008.

AVERY brand weighing scale 100 kg & 500 kg x 2 1, 25,0009. Others LS 100,000 Total = Tk. 1, 85, 25,000 Erection and Installation The machinery will be installed under the supervision of machine manufacturer's engineers. The cost of Air Ticket and local expenses like food ing, accommodation, transportation and pocket allowance are to be made by project and local technical personal to be employed to help them.

It has been esteemed that a total amount of Tk. 15, 00,000 will be required to installed the machinery. Raw Materials: (a) Imported T.C. 65/35, 45's, Yarn to be required 1643.8 tons per year (40000 yes. /day production). 303 lb / yd. x 2.2046 = ...

137 kg / yd. = 7.30 yd / kg.) ) ) So, cost of yarn will be 1643835 x $2.58 = $4241000 x Tk. 68 = Taka 28, 83, 88,000 (b) Dyes & Chemicals: Processing unit will require following Dyes / Chemicals on the basis of annual production capacity (1, 20, 00,000 yes); 1. Back Process Tk. 0.45 / yd. Tk.

54, 00,0002. Mercerizing Tk. 0.65 / yd. Tk. 78, 00,0002. Dyeing Tk.

0.50 / yd (White) Tk. 51, 00,000 Tk. 1.30 / yd (Coloured) Tk. 23, 40.0003.

Finishing Tk. 0.50 / yd. Tk. 60, 00,000 Total = Tk.

2, 66, 40,000 (SAY Tk. 2.22 per yd.) Dyes on the basis of Imported cost & most the chemicals on the basis of local market. (c) Packing Materials: The project will require following packing materials to pack the finished fabric which are available in local market: Paper Tube -- Tk. 3.00 per tube, Polythene Tube Tk. 140.00 per kg.

Others like cello tape, rope etc etc. Cost per year Tk. UTILITIES Power: The project will use own generated electricity. The maximum demand would be around 900 KW The project will have its own 1000 KW gas fired generating along with LT switch gear & PFI plant. Water: Will require 50 cu. M. of water per day.

Provision has been made for 2 nos. submersible Deep Tube-wells along with pump & motor. Cost of deep tube- wells estimated Tk. 16, 00,000. More over need ETP & WTP which cost will come Tk. 70, 00,000. Fuel and Lubricant: The project will require following fuel and lubricant annually: Items Purpose of use Annual requirement Grease For lubrication 500 kgb.

Lubricating oil For lubrication 2000 l trs. Kerosene oil Cleaning 1000 l trs. Patrol / CNG/Diesel Micro bus, van, car 25,000 l trs. Transportation: The project will have 2 covered van for carrying raw materials & finished goods.

For carrying the officials, one microbus & one car will need. Cost of the vehicles has been estimated at Tk. 50, 00,000. Other Assets: Other assets include office equipments, furniture & fixture, computer, fax, telephone, a / c. etc. cost of which estimated at Tk. 17, 80,000 Items Qty. Total in Tk. a. P.C., net work, servers, Printers, 10 sets 7, 00,000 b.

Photo copy 01 1, 00,000 c. PABX 1 3, 00,000d. A / C. 5, 50,000 e. Tele.

/Fax 80,000 f. Mobile 5 50,000 Total = 17, 80,000 Stores and spares Project will require store & spares for machinery and equipments @ 1%, 1.5%, and 2% of its cost for 2nd, 3rd, and 4th year operation respectively. Two years parts will be supplied with capital machinery. Repair and Maintenance The annual requirement of repair and maintenance for machinery has been estimated at 0.5%, 1%, 1.5% & 2% of its cost for 1st, 2nd, 3rd, & 4th, year of operation cost respectively. This cost for building has been estimated 0.5% of it's cost every year. Safety Provision The project will have adequate safety provision to fight against Fire hazards and first aid, for which Tk.

5, 00,000 has been estimated. Technical Administrative personnel & labours Based on 3 shifts operation following personnel & labor will require: A. Technical: Production Manager 1 no. 50,000 50,000 Production Officer 3, , 20,000 60,000 Asstt. Labour officer 1 no. 5,000 5,000 Security officer 1 no. 5,000 5,000 Asstt. 6, 12,000 Wages and salaries 1st yr 2nd yr 3rd yr 4th yr. Tk. 300 per kg = Tk.

1, 50 Lubricating Oil 2000 l trs. Tk. 400 per lt. = Tk. 8, 00 Kerosene oil 1000 l trs. Tk, 27 per lt.

= Tk. 27 Petrol / CNG 25,000 l trs. Tk. 38.00 per lt. = Tk. 9, 50 Gas: Generator 270 cu. m = Tk.

60, 00 Others 428 cu. m. = Tk. 3rd yr. Imported Yarn: 28, 83, 88 b. Imported Dyes / chem. : 1, 34, 40 c.

Local Chemicals: 1, 32, 00d. 4th yr. Sales revenue 52, 59, 12 52, 59, 12 52, 59, 12 52, 59, 12 Cost of goods sold 41, 21, 55 43, 16, 94 43, 22, 14 43, 26, 97 Gross Profit 11, 37, 57 9, 42, 18 9, 36, 98 9.32, 15 General, A dmn. & other expenses Operating profit Financial expenses Net operating profit before tax Other income Income taxInvestmentNet profit after investment Return of investment @ 8.5%Net profit after RI.