Feasibility Report Ghandara Cement

8/3/2019 Feasibility Report Ghandara Cement

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FEASIBILITY REPORT

FEASIBILITY REPORT

OF CEMENT PROJECT

PORT LAND CEMENT

SUBMITTED TO:

MR. ZIA UR - REHMAN

SUBMITTED BY: SYED ABID HASSAN

REG#53124

S.ABID HASSAN Page 1 10/31/2011


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FEASIBILITY REPORT

PART# 1: COST OF THE PROJECT

(ALL FIG IN MILLION RUPEE

S.NO ITEMS AMOUNT LOCAL CURRENCY FOREIGN CURREN

1 LAND AND LAND DEVELOPMENT 500 500

2 BUILDINGS

FACTORY BUILDING 170 170

OFFICE BUILDING 120

FUEL TRUNCKROAD CONNECTION 90

TOTAL COST(CIVIL WORK) 380

3 PLANTS AND MACHINERY

MACHINERY 250 0

INSURANCE, TRANSPORTATION, LOCAL TAXES 27.5 20

INSTALLATION 57 27

TOTAL PLAN AND MACHINERY 334.5 57

4 VEHICLES 30 30

5 FURNITURE AND FIXTURE 2 2

6 ADMINISTRATIVE EXPENSES 2.4 2.4

26

7 CONTINGENCIES 26

8 INTEREST DURING CONSTRUCTION TO BE CALCULATED

9 WORKING CAPITAL 3.2 3.2

TOTAL PROJECTION 1,243.70

THE AMOUNT OF CONTINGENCIES HAS BEEN PROVIDED @2.5% OF COST

OF LAND & BUILDINGS, PLANTS & MACHINERY, VEHICLES AND

FURNITURE.



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FEASIBILITY REPORT

WORKING CAPITAL

PARTICULARS BASIS OF COMPUTATION AMOUNT

INVENTORY

PRODUCTION,MATERIAL, FUEL & AUXILLIARY 1% 1PARTS & SUPPLIES FOR REPAIR&MAINT ONE MONTH 0.5

FINISH GOODS ONE MONTH 0.98

ACCOUNTS RECEIVABLE 10 DAYS OF PRODUCTION 0.49

OTHER LIQUID ASSETS 0.21

TOTAL 3.18

MEANS OF FINANCING:

Debt-Equity will be 60:40 of total cost. The Foreign Currency loan will be obtained at

6%p.a. the local currency loan will be taken at 12%p.a. The project will be financedwith foreign exchange up to 30% of the amount of the debt is to be raised for the

project. The interest on local loan will be paid for 12 months and on foreign currency

loan for six months. The foreign loan amount has already been converted into local

currency on prevailing rate of foreign exchange.

SCHEDULE OF IMPLEMENTATION:

The project will be implemented over two and half year [i.e. 30 months]

ACTIVITY# ACTIVITY DURANTION SEQUENCE

1 LAND AND LAND DEVELOPMENT 04 MONTHS

2 CONSTRUCTION AND CIVIL WORK 12 MONTHS THIS ACTIVITY WILL START AFTER 1

3 PROCURE OF MACHINERY 8 MONTHS AFTER 3 MONTHS OF START OF

ACTIVITY 1

4ERECTION OF PLANT ANDMACHINERY 8 MONTHS THIS ACTIVITY WILL START AFTER

COMPLETION OF ACTIVITY 2

5 TEST, INSPECTION AND TRIAL RUN 3 MONTHS THIS ACTIVITY WILL START AFTER

ACTIVITY 4

Following information is also available:

Expenditure on land and building will mad 60%in 1st Quarter of year 1 and 40%

in the remaining period.



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FEASIBILITY REPORT

Expenditure on building will be made evenly over the period of construction.

The total expenditure on plant and machinery and erection will be made as: (a)

expenditure on procurement and receipt of machinery will be made as 40% inmonth 1, 40% in month 2 and 20% on receipt of machinery.(b) expenditure on

erection will be made evenly over the period of erection.

Expenditure of procurement of vehicle and furniture and fixture will be made as:

20% in 2nd Quarter of Year 1. 20% of 2nd Quarter of Year 2 remaining before the

commencement of commercial production.

Administrative expenses will be incurred evenly over the implementation period.

The amount of working capital will be provided on commencement of

commercial products.

PART-2: DISTRIBUTION OF

ADMINSTRATIVE COSTS, CONTENGENCIES

AND INTEREST DURING CONSTRUCTIONCEMENT PROJECT

Contengencies and administrative cost is to be distributed to all head except

the distributable heads of accounts.

Interest during construction on local currency loans will be distributed on

civil works and plant and machinery and interest on foreign currency will be

distributed on plant and machinery only.



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FEASIBILITY REPORT

PART-3: OPERATING RESULTS -

CEMENT PROJECT

Cement industry is minor-based industry. Its main Inputs are Limestone, Clay and

Gypsum. Basic input must be available in the vicinity of the project.

The methods of refining the raw mix before it charged to kiln used are:

(1)Dry Process.

(2)Wet Process.

The Wet Process is used to wet the raw material: (i.e. Calcium Carbonate and Plastic

clay. Wet process is expensive as compare to dry process.

1: OBJECTIVE:

The proposed project will have an installed capacity of 2000 tons per day. The project

will use dry process, which is a cost-saving project.

2. THE ACTUAL PRODUCTION PROGRAMME:

YEAR WORKING DAYS CEMENT PRODUCED

1 275 550,000.00

2 300 600,000.00

3 & THERE AFTER 330 660,000.00

3: SELLING ACTIVITIES:

The 30% of the production will be exported. The remaining production will be

consumed within the country. The cement will be made available in 50 Kg paper sacks /

bags.

The cement will be sold locally through the appointed dealers. At initial stage creation

of its own organization is not considered appropriate. Only 10 days inventory will be

maintained at the most as the holding of inventory for more than this time will reduce

its strength.



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FEASIBILITY REPORT

4: RAW MATERIAL / INPUT:

The raw mix used to produce will consist of 58% of Limestone and 48% of Clay. The

Gypsum is needed for the regulation of the setting time.

YEAR QUANTITY (TONS) PRICE(Ton)

LIMESTONE(58%) CLAY(41%) GYPSUM(1%)

1 319000 231000 Lime 160/Ton

2 348000 252000 Clay 50/ Ton

3 & Thereafter 382800 277200 Gyp 170/Ton

5: PACKAGING MATERIAL:

The cement will be packed in 50 Kg bag of Kraft Paper. It will cost Rs. 12 per Bag

(Quotation taken from Pakistan Paper Sec Hub Chowki)

YEARCEMENT PRODUCED

(TON) NO OF BAGS

1 550,000.00 11,000,000.00

2 600,000.00 12,000,000.00

3 & Thereafter 660,000.00 13,200,000.00

6: FUEL

Gas will be used and both electricity and gas is available in the area. Electricity will be

used in offices.

Total heating requirement at 100% capacity will be 13,200,000,000Kcal. (i.e.

Re.0.00015 approx Rs. 1.98M)

7: STORES AND SPARES:

It will be 0.5% in 1st year, 0.75% in 2nd Year and 1% of cost of machinery in 3rd and

subsequent years.



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FEASIBILITY REPORT

8: MAINTENANCE OF BUILDING:

It will be 0.5% in 1st year, 0.75% in 2nd Year and 1% of cost of machinery in 3rd and

subsequent years.

Insurance of the building will be covered from Habib Insurance @ 1% of the cost of

building and machinery.

9: MAN POWER , SALARIES AND WAGES:

SR.NO PERMANENT STAFF NO AMOUNT OF SALARIES

AND WAGES

1 ADMIN & GENERAL 35 6,300,000.00

2 ACCOUNTS 20 7,200,000.00

3 MARKETING 25 4,500,000.00

4PRODUCTION MANAGEMENT 25 10,500,000.00

5 PRODUCTION 225 27,000,000.00

6 AUXILIARY SERVICE 30 3,600,000.00

7 QUARY 200 24,000,000.00

8 TOTAL 560 83,100,000.00

NOTE:

Above amount include House Rent. 30 % of the strength will be provided with

accommodation.

A provision of 25% has to be provided for fringe benefits.

10: DEPRECIATION SCHEDULE:



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FEASIBILITY REPORT

SR. NO ITEMS DEP RATE

1 FACTORY BUILDING 5%

2 HOUSING COLONY 5%

3 PLANTS AND MACHINERY 10%

4 VEHICLES 20%

5 FURNITURE & FIXTURE 15%


Feasibility Report Ghandara Cement

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