project appraisal / feasiblity report of thermopore manufactring company

Project Appraisal Report 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


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



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



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.



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.



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).



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.


http://www.alibaba.com/product-free/100560799/Expandable_Polystyrene_Styrofoam_EPS.html

http://www.alibaba.com/product-free/100560799/Expandable_Polystyrene_Styrofoam_EPS.html


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)


http://www.tradeholding.net/default.cgi/action/viewcompanies/companyid/218484/

http://www.sulekhab2b.com/viewoffer/company/400486/international-petrochemicals-ltd.htm


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.



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?


http://thermopore.com/images/image-2.jpg

http://thermopore.com/images/gallery/53.jpg


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



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.



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



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,


Food Packing

Different kind of Lunch Boxes, Soup Bowl, Birani Box, Serving Trays and any

food Packing as per customer requirement.

Disposable Cups
















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,


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






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



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.



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.


POLYMERIZATION PRE-EXPANSION PROCESS

MOLDING

MOLD HEATING

PROCESS: -

COOLING PROCESSCUTTING


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.



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.



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.



FINANCIAL ANALYSIS



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



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



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




Sold 17 22 22

c Year ending 31 October 2012 2013 2014

Production Of ThermoSpray

Polyurethane9 11 11




Sold 9 11 11

Sales Revenue

Rs In "000"

Local Sale 2012 2013 2014

1 Production of Thermopore EPS 57428 71936 72540



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



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



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



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.



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.


project appraisal / feasiblity report of thermopore manufactring company

Documents