Prefab Houses Feasibility Complete)

Slide 1

Entrepreneurship Feasibility Study of Prefab Houses in Pakistan

GROUP innovator

M Ahsan Cheema MB083052 Fazal Elahi MB083070

Abrar Hussain MB083016

Ahsan Arshad MB091030

Nasir Khan BB073044

Feasibility Study of Prefab Houses in Pakistan

Demand for Prefab Houses

Introduction of Housing Industry

The Housing Industry is the largest industry of Pakistan.

Pakistan is one of the 20 countries of the world where Real Estate business is on top of the list.

The turnover of just six housing projects in Pakistan is equal to the annual budget of the country

3,500 housing schemes are working in Pakistan

Many government departments launching a housing scheme like Revenue Department, district council, development agency, tax departments and CDA etc.

http://www.dailytimes.com.pk/default.asp?page=story_14-4-2005_pg3_4

3

Conceptual Feasibility

Two big fish of the industry chose prefab houses.

Malik Riaz already had don a project of prefab houses in Bahria Town.

Arif Habib is doing a project of prefab houses on area 1200 acre in Sindh.

All area of 2005 earth quake is full of prefab houses.

Marketing Feasibility

In 1998 World Bank

Housing shortage in Pakistan stood at 4.33 million units.

In February 2010 World Bank

Housing shortage in Pakistan has reached an exceptional

high of 7.57 million units.

Average One year Shortage (Demand and Supply Difference)

(7.57 4.33) 3.24 / 12 = 0.27 million average one year shortage

http://asiatic-pr.blogspot.com/2011/01/housing-shortage-in-pakistan-priority.html

http://thenews.com.pk/TodaysPrintDetail.aspx?ID=8991&Cat=3&dt=1/3/2011





5

Houses in Pakistan (2005)Houses In Pakistan (2010)Annual demand of housing .7 million unitsAnnual demand of housing 1.5 million unitsAnnual constructing only 0.3 million unitsAnnual constructing only 0.6 million unitsDemand and Supply GapAnnual Shortage (.7--.3 ) .4 Annual shortage (1.5 0.6) .9 million units
Growth is almost 100% after 5 years

Source:Daily Times Post Published: 23 March 2010 Author: Sarah Khan

http://criticalppp.com/archives/7547

http://www.dailytimes.com.pk/default.asp?page=story_14-4-2005_pg3_4

6


Factors of Fast Increasing Growth in Housing Industry

Normal Factors

Previous years shortage added with new years.

Population growth rate 2 to 1.57 in last 4 years.

Special Factors

2005 Earthquake, 0.6 million houses had been damaged

or destroyed

2010 Flood, some 1.74 million households have lost their homes

in flood.

http://www.disasterassessment.org/documents/B9-Pakistan-050808.pdf

http://www.indexmundi.com/pakistan/population_growth_rate.html

http://www.dailytimes.com.pk/default.asp?page=2010%5C11%5C13%5Cstory_13-11-2010_pg7_16

7

Prefab Houses Technical Feasibility

Features of Prefab Houses

Dry installation.

No construction garbage caused.

Environment protective.

Materials adopted repeated use.

Flexible size and easy to assemble.

Disassemble with elegant appearance.

Safe and durable.


Material Used in Prefab Houses
Ground BeamFrame ColumnFloor BeamFloor PerlaineRoof TrussRoof PerlaineStaircaseCorridor boardRain ShelterExternal Wall PanelInternal partition wall panelFloor PlateWindow Exterior DoorScrew and nuts etc


Technical Parameter of standard prefabricated

house:

1. Wind resistance: Grade 11(wind speed111.5km/h)

2. Earthquake resistance: Grade 7

3. Live load capacity of roofing: 0.5kn/m2

3. External and internal wall heat transmission

coefficient: 0.35Kcal/m2hc

4. Second Floor Load Capacity: 150 kg/m2

5. Live load of corridor is 2.0kn/ m2

10




Prefab Houses Financial Feasibility

Material Cost for Twelve houses 500,000*12=60,00,000

Shipment Cost, Insurance and Some other Cost are

20% of the Material cost = 12,00,000

Office and Ware House Rent 40,000 per month 480,000

Annually

Utilities 10,000 per month, 120,000 Annually

Workers pay 21000 per month, 252000 Annually

Technical People Commission 40,000 per House, 480,000 Annually

All Cutting and Fitting Machines provided by Synergy

Industry Technology Co. Ltd.China 300,000

Crain Rent for one House Construction 20000 for one house, 240000 Annually.

14

Prefab Houses Financial Feasibility

Sales price per unit = 1000000

variable cost per unit = 500000+100000+40000+20000=660000

Total fixed expenses = 300000+252000+120000+480000=1152000

Calculatebreak even point

Calculation:

Sales = Variable expenses + Fixed expenses + Profit

1000000Q= 660000Q+ 1152000 + 0

340000Q = 1152000

Q = 1152000 /340000

Q = 3.38 Units

Pay back = Total Investment/Cash In Flow (4 sold every year)

=9072000/4000000=2.268

Thank You

.

Any Question

Prefab Houses Feasibility Complete)

Documents

Transcript of Prefab Houses Feasibility Complete)