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Pre-Feasibility Study

Media Production House

Small and Medium Enterprises Development Authority

Ministry of Industries & Production

Government of Pakistan

www.smeda.org.pk

HEAD OFFICE

4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road, Lahore

Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7

[email protected]

REGIONAL OFFICE

PUNJAB REGIONAL OFFICE

SINDH REGIONAL OFFICE

KPK REGIONAL OFFICE

BALOCHISTAN

3rd Floor, Building No. 3,

Aiwan-e-Iqbal Complex,

Egerton Road Lahore, Tel: (042) 111-111-456

Fax: (042) 36304926-7

[email protected]

5TH Floor, Bahria

Complex II, M.T. Khan Road, Karachi.

Tel: (021) 111-111-456

Fax: (021) 5610572 [email protected]

Ground Floor

State Life Building The Mall, Peshawar.

Tel: (091) 9213046-47


Bungalow No. 15-A

Chaman Housing Scheme Airport Road, Quetta.

Tel: (081) 831623, 831702


June 2017

mailto:[email protected]



Pre-Feasibility Study Production House Company

June 2017

1

Table of Contents

1 DISCLAIMER.................................................................................................................. 3

2 EXECUTIVE SUMMARY ............................................................................................. 4

3 INTRODUCTION TO SMEDA ..................................................................................... 5

4 PURPOSE OF THE DOCUMENT ................................................................................ 5

5 BRIEF DESCRIPTION OF PROJECT ........................................................................ 6

5.1 Project Brief ..................................................................................................................... 6

5.2 Segments Brief ................................................................................................................ 7

5.3 Production Process Steps ................................................................................................ 8

5.4 Installed and Operational Capacities .............................................................................. 9

6 KEY SUCCESS FACTORS ............................................................................................ 9

6.1 Experienced Key Persons ............................................................................................. 10

6.2 Attractive ambiance of Office ...................................................................................... 10

6.3 Utilizing Latest Equipment ........................................................................................... 10

6.4 Budgets for Parallel Projects ........................................................................................ 10

6.5 Utilizing Personal Links ............................................................................................... 11

6.6 Go with small Start ........................................................................................................ 11

6.7 Finalizing Star Cast ....................................................................................................... 11

7 GEOGRAPHICAL POTENTIAL FOR INVESTMENT .......................................... 11

7.1 Opportunity Rationale ................................................................................................... 11

7.2 The Industry Scenario ................................................................................................... 12

8 POTENTIAL TARGET CUSTOMERS / MARKETS .............................................. 14

9 PROJECT COST SUMMARY ..................................................................................... 16

9.1 Key Assumptions .......................................................................................................... 16

9.2 Project Economics ......................................................................................................... 16

9.3 Project Financing ........................................................................................................... 17

9.4 Project Cost ......................................................................................................................... 17

9.5 Capital Equipment Requirement ....................................................................................... 18

9.6 Office Equipment Requirement ......................................................................................... 18

9.7 Human Resource Requirement .......................................................................................... 19

9.8 Utilities and other costs ...................................................................................................... 19

9.9 Revenue Generation ........................................................................................................... 20

10 CONTACT DETAILS ...................................................................................................... 21

10.1 Production House Details ................................................................................................ 21

10.2 Equipment Suppliers ........................................................................................................ 22

11 USEFUL WEB LINKS ..................................................................................................... 23

12 ANNEXURES .................................................................................................................... 24

12.1 Income Statement ............................................................................................................. 24


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12.2 Balance Sheet ................................................................................................................... 25

12.3 Cash Flow Statement ....................................................................................................... 26

13 KEY ASSUMPTIONS ...................................................................................................... 27

13.1 Financial Assumptions ..................................................................................................... 27

13.2 Capacity Utilization Assumptions ................................................................................... 27

13.3 Economy Related Assumptions ...................................................................................... 27

13.4 Cash Flow Assumptions .................................................................................................. 27

Pre-Feasibility Study Media Production House

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1 DISCLAIMER

This information memorandum is to introduce the subject matter and provide a general idea and

information on the said matter. Although, the material included in this document is based on

data/information gathered from various reliable sources; however, it is based upon certain

assumptions, which may differ from case to case. This report has been prepared with the help of

students from Institute of Business management (IoBM), Karachi. The information has been

provided on as is where is basis without any warranties or assertions as to the correctness or

soundness thereof. Although, due care and diligence has been taken to compile this document,

the contained information may vary due to any change in any of the concerned factors, and the

actual results may differ substantially from the presented information. SMEDA, its employees or

agents do not assume any liability for any financial or other loss resulting from this

memorandum in consequence of undertaking this activity. The contained information does not

preclude any further professional advice. The prospective user of this memorandum is

encouraged to carry out additional diligence and gather any information which is necessary for

making an informed decision; including taking professional advice from a qualified

consultant/technical expert before taking any decision to act upon the information.

For more information on services offered by SMEDA, please contact our website:

www.smeda.org.pk

Document Control

Document No. PREF NO. 143

Revision No. 01

Prepared by SMEDA-Sindh

Revision Date June 2017

For information Provincial Chief (Sindh)

[email protected]

http://www.smeda.org.pk/


June 2017

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2 EXECUTIVE SUMMARY

A Media Production House is considered as an entity entitled to produce unique stories related to

daily lives of common man with an efficient execution in a given period of time. The demand for

good entertainment shows has been increased over a period of time. Production House deals with

“Telefilms, Sitcoms, Serials and Drama Soaps” broadcasted on TV for different set of audience.

The major target audience belongs to age group 15-25 sharing 28% of the population and 34%

target audience belong to age group 26-45. As a result of high demand for TV, drama is making

more people get involved in drama industry showing family culture, respect, modesty with the

element of glamour. Giving a glance to urban population, the majority of the population

possesses televisions with access to cable and internet facilities. There are 90+ state and private

channels in national and Urdu language providing an opportunity to big or small production

houses to offer drama content favorable for this class. The media logic 2016 studies shows that

SECB income class and above have higher tendency to watch dramas and 37% population

prefers local content. The key success of drama is execution of drama, flawless content and star

cast which attracts majority of the audience. The industry is still in a flourishing stage but

requires an expertise in this relevant field and tremendous efforts to sustain. As a new player in

the market, starters have to focus certain factors and begin innovative initiatives which provide

them an edge in the fast growing industry.

Production House Company deals in major productions namely Telefilms, Sitcoms, Serials and

Drama soaps. The Estimated cost is around Rs. 28,288,775 with fixed investment of Rs.

12,188,000 and working capital Rs. 16,100,775

Given the cost assumptions IRR and payback are 37% and 2 years and 11 months respectively.

The most critical considerations or factors for success of the project are:

1. Most significant considerations which include;

a) Flawless content and star cast which attracts majority of the audience.

b) It is also considered as an edge if production houses have good relations or links

in channels.

2. Equally important factors which include;

a) Sufficient knowledge of the industry

b) Attractive ambience of office

c) Utilization of latest shooting & post shooting equipment


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Further this report outlines the general understanding of the production house business key

success factors, industry scenario, and company’s relationship with customers, channels, and

employees and its financials for potential investors.

3 INTRODUCTION TO SMEDA

The Small and Medium Enterprises Development Authority (SMEDA) was established in

October 1998 with an objective to provide fresh impetus to the economy through development of

Small and Medium Enterprises (SMEs).

With a mission "to assist in employment generation and value addition to the national income,

through development of the SME sector, by helping increase the number, scale and

competitiveness of SMEs", SMEDA has carried out ‘sectoral research’ to identify policy, access

to finance, business development services, strategic initiatives and institutional collaboration and

networking initiatives.

Preparation and dissemination of prefeasibility studies in key areas of investment has been a

successful hallmark of SME facilitation by SMEDA.

Concurrent to the prefeasibility studies, a broad spectrum of business development services is

also offered to the SMEs by SMEDA. These services include identification of experts and

consultants and delivery of need based capacity building programs of different types in addition

to business guidance through help desk services.

4 PURPOSE OF THE DOCUMENT

The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in

project identification for investment. The project pre-feasibility may form the basis of an

important investment decision and in order to serve this objective, the document/study covers

various aspects of project concept development, start-up, and production, marketing, finance and

business management.

The purpose of this document is to facilitate potential investors in Media Production House by

providing them with a general understanding of the business with the intention of supporting

potential investors in crucial investment decisions.

The pre-feasibility reports are necessary for professionals of the entertainment industry sector.

The research gives them the idea of thumb rules and best practices followed by existing experts

that gradually becomes industrial norms which further guides the investors regarding various


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aspects of business set-up and its successful management. Apart from carefully studying the

whole document one must consider critical aspects provided later on, which form basis of any

Investment Decision.

5 BRIEF DESCRIPTION OF PROJECT

5.1 Project Brief

Media Production House is responsible for the development and filming of a specific production

or media broadcast. In entertainment, the production process begins with the development of a

specific project. A Production House is considered to produce unique stories related to daily

lives of a common man with an efficient execution in a given period of time. The services

include;

Preparation of content and drama scripts after approval from channel

Casting of relevant characters as per channel choice

Shooting complete project

Post shooting activities (editing)

There are various off-shoots of these services which may be used to entail the desired results

according to the set objectives.

5.1.1 Technology

The production house needs to stay active by launching best quality drama which has strong

story line, remarkable dialogues and proper execution of drama. This thing is only possible with

the use of latest and advanced technology equipment such as camera, lighting etc. If the

production house fails to produce good quality content, their revenues and market presence starts

depreciating with time.

5.1.2 Location

Location and layout is very important factor for production house. To find a location for

production house there is a list of criteria that the premises should meet: Cost, size and location,

Structural condition, Maintenance liabilities, Tenure, Accessibility and parking, Layout, Front

elevation, reception appearance, Security, Surroundings and Lighting.

Once a location is finalized then the design and layout of the interior should be taken into

account.


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5.1.3 Target Market

The target market for production houses are the channels that will ultimately broadcast the drama

on TV. Moreover for any production house the common household will be on the top of the list

who likes quality entertainment for passing their leisure time.

5.1.4 Employment Generation

Key personnel should be on payroll like editors, production managers, etc. Further the financial

analysis later on shows the detail of employee personnel to be hired on both permanent and

contractual basis.

5.2 Segments Brief

Production House deals with plays broadcasted on TV for different set of audience. In our report,

play segments elaborated includes:

Telefilm

Sitcoms

Serials

Drama Soaps

Each category is defined as follows;

‘Telefilms’ is a category broadcasted for 70- 90 minutes and is broadcasted occasionally in case

of national or religious events and globally celebrated days like mother’s day, father’s day etc. It

is a featured film and requires shooting time from 3 days to 5 days. Assumptions for telefilm are

mentioned in Table 1;

‘Sitcom’ is a situational comedy category with comical characters and different story line in each

episode. It is broadcasted for 30 minutes to 1 hour varying from 1 episode per week to daily

shows. Sitcom is such entertainment, having more audience as compare to other production

entertainment category. Assumptions for Sitcom are mentioned in Table 1;

‘Drama Serials’ is a drama category which involves 25 episodes and it is broadcasted once in a

week. The duration of shooting for serials is 3 days per episode and it is completed within at

least 2-3 months. The shooting duration takes maximum 50-75 days depending upon the project.

After completion of shooting the serial is set for on air. Assumptions for Drama Serial are

mentioned in Table 1;


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‘Drama Soaps’ is a drama category which involves 100-200 episodes depending upon the

Television Rating Points (TRP) and at least 30 minutes slot for five days in a week including 12

minutes advertisement slot per episode. The duration of shooting for drama soaps may take from

minimum 6-7 months to complete 100 episodes. Once 20-25 episodes are completed, the drama

is set on air and at the same time shooting of further episodes is also in progress. Assumptions

for Drama Soap are mentioned in Table 1;

Variables Assumptions

Variables Units Telefilm Sitcoms Drama Serials Drama

Soap

Episode Nos. 1 13 25 100

Shooting Days 4 3 2 2

Editing Days 7 3 3 3

Star Cast Nos. 2 3 3 3

Supporting Cast Nos. 2 2 5 5

Junior Cast Nos. 3 2 5 5

Locations (Upper class) Nos. 2 1 3 3

Locations (Lower class) Nos. 1 1 3 3

Content Writer Nos. 1 1 1 1

Director Nos. 1 1 1 1

DOP Nos. 1 1 1 1

Line Producer Nos. 1 1 1 1

Assistant Director Nos. 1 1 1 1

Equipment: Camera Nos. 2 2 3 3

ENG staff Lot 1 2 2 2

Table 1- Variables Assumptions

5.3 Production Process Steps

Following are the steps involved in making a single project for any Production House Company;

1. Formation of Idea and its scripting

2. Planning and Budget allocation

3. Sharing one liner/summary idea and available budget details with channels through

personal contacts.

4. Acceptance from any channel lead to formation of contract between both Production

House and Channel


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5. Contract includes details of Project Price, Casting, Payment Terms and some other

requirements.

6. Shoot locations are decided, after finalization of casting and finalizing of project team as

mentioned above in step 2.

7. In case of big project such as soap. After completion of 20 to 25 episode shoots, soap is

ready to be ON AIR and provided to channel for broadcasting.

8. Shoot include (shooting and its complete editing)

9. As per contract payment terms, production house will receive their partial first payment

from channel on 20 to 25 episode handover.

10. Each episode shoot and its editing take around 4 to 5 days working.

11. The shooting and other activities continues till the end of the project.

5.4 Installed and Operational Capacities

It is recommended for a new production house business, it should be started with a single project

of telefilm in beginning. Gradually it can strengthen its company by earning good reputation in

media industry and gain audience’s attention. There are companies dealing in full-fledged drama

soaps and serial production along with earning good profit margins as they have matured in this

field but a newly formed company faces barriers as lack of contacts in media industry and

absence of strong drama portfolio. An active production house runs in proper fashion once they

are able to establish a strong portfolio of various telefilms, soaps and serials.

6 KEY SUCCESS FACTORS

Key success factor (KSF) are those functions, activities, or business practices, defined by the

market and not by the company, and as viewed by customers that are critical to the

company/customer relationship. Key Success Factors (KSF) are generally those areas that a

company may focus on, to attain its vision. As based on the interviews conducted with

Production house directors, managers and related staff persons, there are some critical points that

have been noticed and found common in several interviews. Due to its repetition and emphasis

by production houses, we have formulated such list of critical points that can be counted as key

success factor for a new body to start a production house

1. Must have sufficient knowledge and background of the industry.


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2. Should have attractive ambiance for Production house Head Office.

3. Should utilize latest shooting and post shooting equipment.

4. Should have minimum three projects in hand for starting a production house. It is

preferred to begin with Sitcoms and telefilms.

5. Should have good contacts with media groups to get their project easily approved.

6. Should have experienced scriptwriter and Production manager on company payroll.

7. Should finalize renowned star cast at early stage of production for the approval from

channels.

6.1 Experienced Key Persons

A production house should have a team of experienced and skillful personnel. Specifically in the

area of Script Writer and Production Manager who have sufficient experience and knowledge to

run production house. In that case, production house need to keep such key person on payroll

instead of contractual basis.

6.2 Attractive ambiance of Office

One of the key ingredient for bringing investors or venture capitalist interest in production house

is through good ambiance of Production house office. This will give professional impression on

people visiting first time. They would admire by surrounding of office and love to work in such

environment.

6.3 Utilizing Latest Equipment

Producing any project successfully require not only the idea or the theme of the project but also

the equipment used for the shooting and post shooting activities. Such equipment should be of

high quality and latest version. For this, production house can rent such equipment or the best

option is to invest and purchase such latest model equipment to enhance their production quality.

6.4 Budgets for Parallel Projects

The most important and essential way of running a successful production house is handling their

budget carefully and smartly both at the same time. In this case, Production house do not need to

wait for the previous payments at the cost of wasting time to produce new projects. They should

start one project keeping the budget for the next one at the same time. In this way, production

house can execute consecutive projects one after the other. However, they would be receiving


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payment of old project and meanwhile ready to launch new one as well. It is preferred for new

production house it should have minimum three projects in hand at the start.

6.5 Utilizing Personal Links

Personal links to get channel approval for project idea is another secret ingredient for every new

or old production house. The more you have strong connections in this field the more you will be

able to secure your projects with big channels.

6.6 Go with small Start

To make firm step in the production house industry, one should start with small projects such as

Sitcom and Telefilm. These small projects will allow them to understand the detail of this field

and will train them to go higher with huge budgets and huge projects such as Serial, Drama soap

and films.

6.7 Finalizing Star Cast

Once the Production house is ready with script writing, theme or idea for a new project then they

should immediately finalize Star Cast by contracting them earlier. This will give them edge to

pitch script writing with channels. Channels would be happier to work if production house has

already arranged well-known celebrity of industry for their project.

7 GEOGRAPHICAL POTENTIAL FOR INVESTMENT

7.1 Opportunity Rationale

The number of production houses are increasing at a very fast pace due to demand pattern that

rises every single day. Although they are numerous in number currently but that does not prove

logic to disregard the idea of starting a production house for a newbie. The idea here is to

promote the availability of services to the growing needs of public not for just drama soaps,

serials but animated films/cartoons for younger ones.

Increasing demand pattern for entertainment programs widens the vision to enter in this dynamic

field and public is more inclined towards quality dramas. Concurrently, the competition is very

high and need big investment for an entry in this business. One should start with firm and

properly designed business plan in order to succeed over competition. The penetration into the

target market i.e TV channels in the case of production house is only based on the work

excellence and building the trust with channels. As a result, production houses rely on directly


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contacting their target customers/channels.

The public want entertainment after a hectic routine of daily life; most of them want quality

shows to pass their leisure time instead of watching dramatic/plotted news. Therefore, they are

likely to take interest and are willing to watch good dramas, serials and telefilms. Hence there is

a need for new production houses to be setup in Pakistan.

7.2 The Industry Scenario

In 1946 Eveready Pictures was established as first production House Company by J.C An ad,

which became the largest film production and distribution company in Pakistan. The following

year, Evernew Studios was established. In 1947, after Pakistan’s independence from Britain,

Lahore was regarded as the production hub of Pakistan. Upon independence, there was a

shortage of funds, filming equipment which initially paralyzed the industry. With hardships

faced, the first Pakistani feature film, “Teri Yaad” released on 7 August 1948, premiering at the

Parbhat Theatre in Lahore. Initial famous Pakistani dramas are Waris, Dehleez, Anganterha, Alif

noon, SonaChandi, Alpha Bravo Charlie and so on. The very first time PTV transmitted its live

telecast was on November 26th, 1964.

Currently Pakistan is country of vibrant media. There are number of private as well as state

television channels in Pakistan. These private and state television channels broadcast all kinds of

media stuff like news, documentaries, current affairs talk shows, dramas, and music, sports and

even religious programs. These television channels are always in need of quality productions and

that demand gave rise to the emergence of many private productions houses in Pakistan which

produce all kinds of entertainment and commercial productions.

To understand the market scenario, a fact realized by having discussion with field experts is that

a person with good knowledge of the business, reasonable amount of investment, good PR and

links with TV channels can start his own production house. Moreover as per the market scenario

and discussions with field experts there are currently around 50-80 production houses in Pakistan

that are active and the majority lies in Karachi, termed as the business hub. Currently the boom

of media industry has opened up many opportunities for a new entrant who wishes to provide

creative and quality matter.

https://en.wikipedia.org/w/index.php?title=Eveready_Pictures&action=edit&redlink=1

https://en.wikipedia.org/w/index.php?title=Evernew_Studios&action=edit&redlink=1

https://en.wikipedia.org/wiki/British_Empire

https://en.wikipedia.org/wiki/Teri_Yaad_(film)


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7.2.1 Increasing Demand for Entertainment Shows

The rapid rate at which the demand for TV shows increases and continues to add multiple

production houses in the market is a reflection of competition in drama soaps, serials and


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telefilms. This expansion increases accessibility, thus, making it more convenient for filling in

the gap for a new production house and ultimately increases competition. Especially in recent

years, we have been introduced with quality dramas and serials at our channels and this shows

the potential of media industry.

7.2.2 Focusing on Linkages

In the current market scenario mostly media houses are linked with TV channels in order to

secure their business and portfolio. They are now termed as sister companies more rather than

independent production houses. This linkage is beneficial for both and as per the market experts’

opinion, for a new production house, a necessary step is to find the initial references at the start

in order to get the business.

7.2.3 The Future of the Industry

The media industry is growing by leaps and bounds and becoming increasingly competitive in

Pakistan. The revival of Pakistani films, dramas, serials and telefilms has led our audience to a

new level. In the face of rising competition and slot wars, a nearly insatiable demand of the good

quality entertainment shows will continue to open new opportunities for filling the gaps by new

entrants of this industry. Moreover the experts and experienced individuals will strive hard to

find ways to serve their customers by making their services even more attractive. Nowadays

many channels are likely to focus on starting their sister concerns as production houses in order

to cut their expenses and to capture part of this market by offering total arrangements under one

roof.

8 POTENTIAL TARGET CUSTOMERS / MARKETS

Before starting a business one must know their target market, which will help you to create a

business model accordingly. The potential market for any new production house would be the

public with age group of 15-45. Further the potential target for any production house will be

based on the percentage of Local Entertainment in market share. As per Media Logic survey,

September 2016 it is a fact that Local entertainment has the largest share of 37% in our media

industry. This highest percentage is clearly an indication of market potential for any new

production house company who can target the audience with good quality TV shows like

dramas, telefilms etc. Second place is reserved for News channels which gives competition to

Local Entertainment. Further it can be said that the common household public including Adults

and children nowadays like to pass their leisure time with good quality shows in the prime time.


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9 PROJECT COST SUMMARY

9.1 Key Assumptions

This pre-feasibility report is based on the following assumptions;

1. All expenses are calculated on average cost of seven currently working production houses

2. 100% financing will be done by Proprietor.

3. Selling Price based on cost plus 25% profit margin.

4. Key members for project will be hired on permanent basis, such as production manager

& script writer.

5. All purchases of equipment are on cash basis.

6. Production House Office will be on rent basis

9.2 Project Economics

All the figures in this financial model have been calculated for estimated sales of Rs.

80,896,800 in the year one. The increase in sales and cost of elements per year is worked out at

10%.

The following table shows internal rate of return, payback period and net present value of the

proposed venture.

Table 9.2- Project Economics

Description Details

Internal Rate of Return (IRR) 37%

Payback Period (yrs.) 2.11 Years

Net Present Value (Rs.) 57,569,317


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9.3 Project Financing

Following table provides details of the financing required and variables related;

Table 9.3 - Project Financing

Description Details

Total Equity (100%) Rs. 28,288,775

9.4 Project Cost

Following fixed and working capital requirements have been identified for operations of the

Production House Company

Table 9.4 - Project Cost

Description Amount Rs.

Fixed Capital Cost

Office Renovation 1,259,000

Office Furniture& Equipment 2,395,000

Vehicles 5,229,000

Cameras 1,825,000

Lightning & Sound System 560,000

Editing System 820,000

Preliminary Expenses- Registration, Membership & Others 100,000

Total Fixed Capital 12,188,000

Utilities-Three Months (Office) 744,300

Salaries (General Staff- Three Months) 570,000

Misc. Expenses - Three Months 30,000


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Project Cost 14,756,475

Total Working Capital 16,100,775

Total Project Cost 28,288,775

9.5 Capital Equipment Requirement

Capital equipment for a Production House Company is stated below;

Table 9.5 - Capital Equipment

Description Total Cost (Rs.)

Office Furniture& Equipment 2,395,000

Office Renovation 1,259,000

Vehicles 5,229,000

Cameras 1,825,000

Lightning & Sound Systems 560,000

Editing System 820,000

Preliminary Expenses 100,000

Total 12,188,000

9.6 Office Equipment Requirement

Following office equipment will be required for Production House

Table 9.6 - Office Equipment

Description Quantity Unit Cost

(Rs.)

Total Cost (Rs.)

LED TVs (48”) 02 150,000 300,000

Multimedia Projector 01 200,000 200,000

Surveillance System 01 40,000 40,000

Conditioner Split Units (1.5 Ton) 04 65,000 260,000


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Water Dispenser 01 15,000 15,000

Generator (5 kVA) 01 150,000 150,000

Laptops 06 100,000 600,000

Fans 10 3,000 30,000

Telephone Sets 05 3,000 15,000

Total 1,610,000

9.7 Human Resource Requirement

Table 9.7 - Human Resource Requirment

Description No. of

Employees

Individual

Salary (Rs.)

Monthly

Salary (Rs.)

Receptionist 01 20,000 20,000

Peon 02 15,000 30,000

IT Personnel 01 25,000 25,000

Security Guard 02 15,000 30,000

Accountant 01 35,000 35,000

HR Manager 01 50,000 50,000

Janitorial Staff 02 15,000 30,000

Total 220,000

9.8 Utilities and other costs

An essential cost to be borne by the Production House Company is the cost of electricity, water

and gas. The electricity expenses are estimated to be around Rs. 47,000 per month, whereas

water & gas expenses are estimated to be Rs. 4,500 per month. Furthermore other charges like

maintenance, telephone, office rent and Fuel charges for vehicles are estimated as Rs. 20,000,

Rs. 15,600, Rs. 126,000 & Rs. 35,000 per month respectively.


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9.9 Revenue Generation

Based on the production of 2 Telefilms 1 Sitcom and 1Serial, sales revenue during the first year

of operations is estimated as under:

Table 9.9 - Revenue Generation – Year 1

Description No. of Units

Produced (No.)

Revenue/ unit

(Rs.)

Sales

Revenue

(Rs.)

Telefilm 02 1,646,700 3,293,400

Sitcoms 01 17,113,100 17,113,100

Serials 01 40,266,100 40,266,100

Total 60,672,600


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10 CONTACT DETAILS

In order to facilitate potential investors, contact details of Private Sector Service Providers

relevant to the proposed project are as follows;

10.1 Production House Details

Name of

Production

House

Address Phone E-mail Website

Eveready

Productions

4thFloor, Eveready

Chambers,

I. I. Chundrigar

Road, Karachi.

021- 32634817-

18

[email protected].

pk

http://eveready

group.com

GoldBridge

Media

16th South Street

,Old Sunset Blvd,

Karachi

021-35310338 goldbridgemedia@ho

tmail.com

http://goldbrid

gemedia.com

Media City

Productions

#302, 3rd Floor

Plot # 131/11

Speedy Towers

DHA Phase 1 Main

Korangi Road,

Karachi.

021-111-567-

111

mediacityproductions

.tv -

mailto:Email%20:%[email protected]

mailto:Email%20:%[email protected]


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10.2 Equipment Suppliers

Name of Supplier Address Phone E-mail

Teamwork

Production

13-H, Block 2,

P.E.C.H.S,

Karachi.

021-4555327 [email protected]

Hashmi Photos

Shop # 20B

Hashmi Shopping

Center,

Preedy Street,

Saddar Karachi.

Pakistan.

0213-5675582 [email protected]


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11 USEFUL WEB LINKS

Small & Medium Enterprises Development Authority (SMEDA) www.smeda.org.pk

Government of Pakistan www.pakistan.gov.pk

Ministry of Industries & Production www.moip.gov.pk

Government of Punjab www.punjab.gov.pk

Government of Sindh www.sindh.gov.pk

Security Commission of Pakistan (SECP) www.secp.gov.pk

Federation of Pakistan Chambers of Commerce and Industry

(FPCCI)

www.fpcci.com.pk

State Bank of Pakistan (SBP) www.sbp.org.pk

Punjab Small Industries Corporation www.psic.gop.pk

Sindh Small Industries Corporation www.ssic.gos.pk

Media Logic Survey www.medialogic.com.pk

http://www.smeda.org.pk/

http://www.pakistan.gov.pk/

http://www.moip.gov.pk/

http://www.punjab.gov.pk/

http://www.sindh.gov.pk/

http://www.secp.gov.pk/

http://www.fpcci.com.pk/

http://www.sbp.org.pk/

http://www.psic.gop.pk/

http://www.ssic.gos.pk/

http://medialogic.com.pk/


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12 ANNEXURES

12.1 Income Statement


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12.2 Balance Sheet


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12.3 Cash Flow Statement


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13 KEY ASSUMPTIONS

13.1 Financial Assumptions

Description Details

Debt: Equity 0:100

13.2 Capacity Utilization Assumptions

Description Details

Business/Sales Increase 10%

Increase in Cost of Elements 8%

Operational Days / Month 26

Operational Months 12

Annual Operational Days 312

13.3 Economy Related Assumptions

Description Details

Increase in Utilities (Electricity / Water / Gas) 10%

Increase in Staff Salaries 10%

Increase in Office Expense 10%

Increase in Rent 10%

Profit Margin 25%

Income Tax Rate 20%

13.4 Cash Flow Assumptions

Description Details

Sales on Credit - as %age of total 100%

Accounts Receivable period (months) 3 months

Provision for bad debts 05%

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