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Feasibility Report A-1 Feed Industry
1
PROJECT REPORT
Feasibility Report A-1 Feed Industry
SUBMITTED TO:
Mr. JAVAID IQBAL (Chairman)
SUBMITTED BY:
NAME ROLL NO
HASAN QURESHI (29)
RAHIQA FATIMA (21)
JAWAD UL HASAN (08)
Msc (Accounting & Finance) 3rd Semester
2
POULTRY FEED INDUSTRY
Feasibility Report A-1 Feed Industry
It is stated that the student of Department of Commerce
presently in M.Sc (Accounting & Finance) 3rd semester have
given project on POULTRY FEED INDUSTRY
Department of Commerce is being aware of the importance of practical
training, requires every M.Sc (Accounting & Finance) student to make a
project Assignment.
We also have also visited a Poultry Feed Industry Named as SHAMIM
FEED INDUSTRY SAMA SATTA LINK ROAD,
BAHAWALPUR.
We have tried our best to collect the knowledge and information. It has
broadened out knowledge and vision about the market.
This Report is the Explanation of all work done by project Team.
3
PREFACE
Feasibility Report A-1 Feed Industry
ToTO
Due to one person we are able to do such a works.
He has produce skills in our selves. We have
dedicated all our work to very
Intelligent Charming, Educated, And Lime light
For student The One and Best OUR Teacher:
Thank you Sir
4
DEDICATED
Javaid Iqbal
Feasibility Report A-1 Feed Industry
Up and above everything, we are thankful to ALMIGHTY
ALLAH, the most Beneficent and merciful, and His Holy
Prophet (Peace be upon him) Who is forever a true torch of
guidance for whole humanity. We am greatly obliged to
ALLAH by Whom grace we have been able to complete this
Project Report successfully.
We also offer our thanks to Honorable Mr. Javaid Iqbal for
providing us a chance to work in such a Profitable Industrial
Project.We also offer our thanks to Respect Parents for being supports
us in all means Financially and Mentally to complete our work.
We also thank to the General Manager Mr. Saqib Faheem
Butt, & officer of the Shamim Feed Industry Sama Satta Link
Road, BAHAWALPUR. to Help us in completing our work..
5
ACKNOWLEDGEMENT
Feasibility Report A-1 Feed Industry
Contents Page#Executive Summary 07Name & Location of Project 09Objectives & Key Success Factors 12Introduction 14Management 15Project Scheduling Diagram 17Technical Analysis 18Market Analysis 23Economic Analysis 30Ratios 37Assumptions underlying Earning Forecast 42Projected Financial Statements 43Break Even Analysis 53Weighted Average Cost of Capital 55Internal Financial Rate of Return 56Auditing Plan 59Exit Strategy and Risk Assessment 60
6
Table of Contents
Feasibility Report A-1 Feed Industry
Title: POULTRY FEED INDUSTRY
Project Assignment:
Each student of MSc. (Accounting & Finance) 3rd semester required preparing a sold Project Assignment. The Project assignment is given to increase our knowledge about Project Management.
Objectives:
1. SWTO analysis of Poultry Feed.2. Identify and list down the all aspects and important points
of Feed Industry.3. What is a Production Process.4. What is Cost of unit, Means of finance, Estimated income
statement, Estimated Balance sheet, etc.
Approach to Project:
The Team of project will, analyze, summarize, and interpret the data, which are collected different primary and secondary sources.
Data Collection:
Both primary and secondary means of data will be used to collect the Data. Like Books, Internet, personal visits, teacher guidance etc.
7
Executive Summary
Feasibility Report A-1 Feed Industry
Primary Sources:
The Team of Project personally visited the FEED INDUSTRY for practical view: Unit selected is;SHAMIM FEED INDUSTRY BAHAWALPUR
Questionnaire:
Project Team has prepared a Questionnaire that contains 100 Questions and exists on 15 pages for Management ofSHAMIM FEED INDUSTRY BAHAWALPUR.Data Preparation & Analysis:
After collection of all the data through both primary & secondary means, team will used MS. Word, MS. Excel, MS. Power point etc.
Time Frame:
Time period is allowed is one month 15/12/2009 to 18/01/2010.
Limitation:
Team has visited the various people but the information given by them is just based of approximation.
8
Feasibility Report A-1 Feed Industry
A-1 FEED INDUSTRY
Head office: P.O. BOX. 1245 Small-Industries BahawalpurTel: 0622-88473Fax: +92-62-88844, 88843
Contact Person: Hasan Qureshi ( CEO)
E-mail: jawad_hasan@ yahoo.comJawad ul Hasan
Branch: Sama Satta Link Road Bahawalpur.
Pakistan- Bahawalpur
Small- Industries
9
Name of Project
Location of Project
CITY
LOCATION
Feasibility Report A-1 Feed Industry
1-Brailer Feed (for starter & finisher)
2-Layer Feed (for starter & finisher)
3-Breeder
The capacity of projected plant produces 361200 Bags at 100% Efficiency per Year.
Fixed Cost 36136892
Initial Working Capital +34999705
71136597
Debt 49%
Equity 51%
10
PRODUCTS
Installed Capacity
Cost of Project
Means of Finance
Feasibility Report A-1 Feed Industry
Muslim Commercial Bank Ltd. Bahawalpur.
A- Hasan Qureshi
B- Jawad ul Hasan
C- Rahiqa Fatima
Amin & Co. LDA Plaza, Lahore
.
Uzair & Co. Engineering Limited,Lahore
11
Names of Lender
Names of Sponsors
Name of Civil Contaractor
Name of MachinerySupplier
Feasibility Report A-1 Feed Industry
Implementation Schedule
Implementation Schedule
Sr.No. Activities Month Year
1Engineering studies and designing of civil works: 2010
Start January 2010
Complete February 2010
3 Construction of Building and Civil works: 2010
Start February 2010
Complete September 2010
4 Order for foreign machinery March 2010
5 Arrival of foreign machinery at sea port September 2010
6 Arrival of foreign machinery a site October 2010
7 Order for local machinery June 2010
8 Arrival of local machinery at site September 2010
12
Feasibility Report A-1 Feed Industry
Current RatioCurrent Ratio 2.16 1.87 1.71
Current Ratio
0.00 0.50 1.00 1.50 2.00 2.50
1
2
3
Year
s
Times
Series1
Gross Profit RatioG R O S S P R O F I T 12.15% 12.99% 11.54%
13
Financial Ratios
Feasibility Report A-1 Feed Industry
10.0% 11.0% 12.0% 13.0% 14.0%
1
2
3
4
Gross Profit Ratio
Series1
Operating Profit Ratio
14
Feasibility Report A-1 Feed Industry
OPERATING PROFIT 9.30% 10.26% 8.83%
1 2 3
S18.0%
8.5%
9.0%
9.5%
10.0%
10.5%
year
Operating Profit Ratio
Series1
Net Profit Ratio
6.87% 8.33% 7.39%
15
Feasibility Report A-1 Feed Industry
Net Profit Ratio
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
0 1 2 3 4
Series1
Internal Rate of Return
IRR= 24%
Payback Period
2 YEARS.
Sponsors Stake
51%
16
Introduction of Company
Feasibility Report A-1 Feed Industry
Shamim Group of Industries Shamim Feed Industry
Shamim Ghee Mill
Shamim Oil Mill
17
Shamim Feed Industry
Feasibility Report A-1 Feed Industry
18
Market Analysis
Feasibility Report A-1 Feed Industry
Brief Description of MarketRole of feed and nutrition for livestock production is as essential as management or
animal itself but its fiscal contribution surpasses all other aspects. A good nutrition plays a significant role for optimum production and in my opinion, on a scale of 1 to 10, it has rating of 7. Since last two decades science of nutrition, both in humans and animals, has taken centre-stage in the field of research, rather it is considered more important than pathological or medicinal aspects of production and life.
To provide feed in Punjab Late Mian Mukhtar (elder brother of Mian Mumtaz) constructed a feed mill, Ani Feed in Gujranwala in 1967. The late Dr. Naseer Butt was the first full time veterinarian nutritionist; Dr. Abdul Ghafoor, Dr. Tariq Anjum and Dr. Zia Qureshi joined Ani Feed as his assistants. In 1968 Aftab Feed was built in Karachi by Mian Aftab; but later on changed its name to Mehran Feeds.
Shahzor group (now named as Sabir's) has erected and started Multan Feeds near Multan while Sharif Feed by Sharif's (Shahbaz Sharif family) has also commenced its commercial operation. Hi Tech and SB group are currently in the process to build new feed mills in Sahiwal, both feed mills are planned to manufacture 120 tons pellet feed per hour. Big Feed has also build a new feed mill tower at the old location and currently producing feed from new facility.
Some new feed mill plants are under construction in Punjab; Dawood Feed by Pakasia group near Pattoki and Khawaja Feeds in Multan, both of these plants are expected to start production within this year. OK Feed (Van Aarsen Pellet Mill C750) by OK Oil is being also constructed near Pattoki. Dr. Ghulam Nabi of Asia Feeds too is planning to build a new feed mill in Karachi along with Mr. Nabi Bakhsh of Sind Feeds, moreover Dr. Aslam of Islamabad group is planning for a new feed mill in Okara area. Younger brother of Dr. Sadiq, Mian Javed who recently separated from SB Poultry to start his own brand as Jadeed Chicks is also assembling a feed mill near Khanewal. These feed mills are expected to commence their operation in 2010.
Feed Production in Pakistan of Last Five Productions in Pakistan Province Wise (tones)
19
Feasibility Report A-1 Feed Industry
Province Feed capacity 2003 2004 2005 2006 2007 2008 2009Punjab 3600 1100 1251 1420 2180 2250 2600 3000Sindh 1500 370 456 510 420 620 680 875NWFP 250 90 100 100 120 130 80 50Balochistan 120 66 84 97 97 100 50 50Total Pakistan 5470 1625 1891 2127 2817 3100 3410 3975
The Demand of feed in last few years is increasing because the agriculture sector is
now growing and the demand of feed is also increasing.
The Demand & Supply gap is 4% which is increasing per year.
20
Present Demand
Distributuion Channel
Demand Supply Gap
Feasibility Report A-1 Feed Industry
21
Technical Analysis
Feasibility Report A-1 Feed Industry
The process of feed production is given below
22
List of Machinery
Feasibility Report A-1 Feed Industry
Hammer Mill
Mixer
23
Feasibility Report A-1 Feed Industry
Elevator
24
Feasibility Report A-1 Feed Industry
Conveyor
25
Feasibility Report A-1 Feed Industry
Strainer
Pellet Machine
26
Feasibility Report A-1 Feed Industry
Working of Pellet Machine
27
Feasibility Report A-1 Feed Industry
Packing Machine
Boiler
28
Feasibility Report A-1 Feed Industry
5- RAW MATERIAL REQUIREMENT Poultry Feed (For Bridder&Brialer)/50kg 50kg
Material Description
For one Bag Annual Bags ProducedMaterial in kg
for annual Production
Unit costAnnually Cost each Material
ItemsMaiz 13%
240,800
1,565,200 40 62,608,000Wheat 14% 1,685,600 23 38,768,800Rice 14% 1,685,600 13 21,912,800Sun Fiower 5% 602,000 30 18,060,000cotton seed Meal 2% 240,800 7 1,685,600Soyabeen Seed 5% 602,000 20 12,040,000Cynola seed 5% 602,000 20 12,040,000Na,Ca,Mg 6% 722,400 5 3,612,000Vit,Pro,nd other chemicals
5% 602,000 6 3,612,000
Fish,chicken wastage 11% 1,324,400 17 22,514,800Grains 8% 963,200 8 7,705,600Minerls,Molasses 12% 1,444,800 13 18,782,400Packing material (Bags)
1 240,800 3 722,400
Total Annual Cost 224,064,400
29
Raw Materials Required
Feasibility Report A-1 Feed Industry
Poultry Feed For Layer 50kg
Material Description Required
Annual Bags
Produced
Requirement of
Material in unit for annual
Production
Unit cost
Annually Cost each Material
Items
Maiz 13% 782,600 40 31,304,000Wheat 14% 842,800 23 19,384,400Rice 14% 842,800 13 10,956,400Sun Fiower 5% 301,000 30 9,030,000cotton seed Meal 2% 120,400 7 842,800Soyabeen Seed 5% 120,400 301,000 20 6,020,000Cynola seed 5% 301,000 20 6,020,000Na,Ca,Mg 6% 361,200 5 1,806,000Vit,Pro,nd other chemicals 5% 301,000 6 1,806,000
Fish,chicken wastage 11% 662,200 17 11,257,400Grains 8% 481,600 8 3,852,800Minerls,Molasses 12% 722,400 13 9,391,200Packing material (Bags) 1 120,400 3 361,200Total Annual Cost 112032200
30
Feasibility Report A-1 Feed Industry
Brief Description of PersonnelThe personnel or the human resource depends upon the work and the total employees the personnel of a small feed unit and a big feed industry is different. So, the employees will be efficient and effective so that the feed industry can do better work.
Description Number Salary per month Rs, Annual cost
CEO 1 60,000 720,000General Manager 1 40,000 480,000Financial Manager 1 40,000 480,000Export Manager 1 40,000 480,000Sectery 1 15,000 180,000Accountant 1 12,000 144,000clerks 4 8,000 384,000Computer operator 1 8,000 96,000Recepnicet 1 8,000 96,000Time Keeper 3 8,000 288,000Drivers 2 7,000 168,000security Guard 3 6,000 216,000Gate keeper 3 6,000 216,000Office Attendence 2 6,000 144,000Mali 1 6,000 72,000Sweepers 2 5,000 120,000TOTAL 4,284,000Add: Fringe Benefits @ 5% 214,200TOTAL ADMIN COST 4,498,200
31
Personnel Analysis
Feasibility Report A-1 Feed Industry
Brief Description of FinanceIn Financial Analysis we see the sources of finance and calculate the ratios of our
project that how much it is profitable for us and also we make financial statements to
know that how much it is feasible for us.
Cost of ProjectThe total cost of project is Rs. 69510128
Means of FinanceIn the sources of finance we take Loan from MCB and the remaining is from the
Sponsors.
32
Financial Analysis
Feasibility Report A-1 Feed Industry
Initial Net Working Capital CURRENT ASSETS- A AmountCash 6 months 8,850,292Accounts Receivable 5% of sales 12,864,278Raw materials 1 months 18,205,233Finished Goods Inventory 3% production 5,863,441Marketables Securities 4,970,857spares & stores 98,916
Advances & deposits to supplier of Raw Material 1,000,000
Tools 100,000Total Current Assests 51,953,016CURRENT LIABILITIES-B Accounts Payable 3% material cost 6,553,884Accrued Expenses 3% material cost 6,553,884Dealers Deposits 100,000short -term bank borrowings 20% Inventories 3,745,544Total Current Liabilities 16,953,311INITIAL NET WORKING CAPITAL( A-B) 34,999,705
33
Initial Working Capital
Feasibility Report A-1 Feed Industry
A-1 POULTRY FEED COMPANY BAHAWALPUR PROJECT COST & MEANS OF FINANCE (in RS.)COST OF THE PROJECT LOCAL FRGN TOTALLand & Land Devolpment 8,606,250 0 8,606,250Building & Civil Works 9,236,220 0 9,236,220Foreign Machinery MCB(FCL) 0 6,846,000 6,846,000
Marine insurance etc. 300,770 0 300,770
Customs Duty 12% Imported Machinary 821,520 0 821,520
Import and Iqra surcharges 1% Imported Machinary 68,460 0 68,460Engineering /Technical Fees 2% Machinary 136,920 0 136,920Erection & Installation 1% Machinary 68,460 0 68,460Interest during construction 5,950,000 0 5,950,000Furniture & Fixture 511,100 0 511,100Vehicles 1,040,000 0 1,040,000Pre-production Expenses 2,251,192 0 2,251,192Contingencies 300,000 0 300,000 TOTAL FIXED COST: 29,290,892
6,846,000
36,136,892
Initial Net Working Capital 34,999,705 0 34,999,705TOTAL COST OF THE PROJECT 64,290,597
6,846,000
71,136,597
34
Cost of Project
Feasibility Report A-1 Feed Industry
A-1 POULTRT FEED INDUSTRY . BAHAWALPURFor the year ending Dec. 31, I II IIIEfficiency Assumed : 65% 70% 75% SALES a ) Bridder Feed 86,086,738 103,113,878 110,510,856b) Bria Feedler 86,086,738 102,131,841 109,458,372c) Layer Feed 85,112,074 101,946,435 109,259,665Total Sales 257,285,551 307,192,154 329,228,894Less: COST OF GOODS SOLD : Raw Materials 218,462,790 247,031,001 264,676,073Labour 6,582,600 6,780,078 6,983,480Manufacturing Expenses 3,779,755 3,953,676 4,069,624Excise Duty \ Sales tax 3% 7,718,567 9,215,765 9,876,867Royalty fee (Straight
line method)
0 0 0Deprication 1,213,744 1,213,744 1,213,744Cost of Goods Manufactured 237,757,456 268,194,264 286,819,787Add: Opening Inventory 0 11,726,882 12,628,950Less: Ending Inventory 11,726,882 12,628,950 8,198,110COST OF G00DS SOLD 226,030,574 267,292,196 291,250,627G R O S S P R O F I T 31,254,977 39,899,958 37,978,266Less : OPERATING EXPENSES Admin & General Expenses 3,287,831 3,717,777 3,983,333Selling Expenses 4,050,398 4,651,836 4,930,863Total Operating Expenses 7,338,229 8,369,613 8,914,196 OPERATING PROFIT 23,916,749 31,530,344 29,064,070Add: OTHER INCOME 0 0 0Less: NON OPERATING EXPENSES Financial Expenses 5950000 5,650,055 4,460,055Amortzn. of Prelim. Exp 281,399 281,399 281,399Workers participation fund 4% 956,670 1,261,214 1,162,563workers wekfore fund 4% 956,670 1,261,214 1,162,563Total Operating Expenses 8,144,739 8,453,881 7,066,579Profit Transferred to Profit& losss Appropriaion account 15,772,010 23,076,463 21,997,491
35
Income Statements
Feasibility Report A-1 Feed Industry
A-1 POULTRY FEED INDUSTRY . BAHAWALPURESTIMATED BALANCE SHEETS
Construction year I II IIIASSETSFixed AssetsFixed Assets at cost 33,885,700
33,885,700
33,885,700 33,885,700
Less: Accumulated Dprcn. 01,213,7442,427,488 3,641,232Net Fixed Assets 33,885,700
32,671,956
31,458,21230,244,468
Preliminary Expenses: 2,251,1921,969,7931,688,394 1,406,995Total Fixed Assets 36,136,892
34,641,749
33,146,606
31,651,463
Current Assets Cash 8,850,29254,270,439
75,133,031
72,756,820
Marketable Securities 4,970,857 313,580 75,683 1,866,517Accounts Receivables 12,864,278
12,864,278
13,063,620
16,461,445
Finished Goods Inventory 5,863,44111,726,88212,628,95
0 8,198,110
Raw Material Inventory 18,205,23313,107,76
79,175,437 6,881,578Stores & Spares 98,916 99,000 20,000 958,259Advances & Depostis 1,000,0001,419,142 30,000 968,259Total Current Assets 51,853,01693,801,088110,126,721 108,090,988
TOTAL ASSETS 87,989,908128,442,8
37143,273,3
27139,742,4
51LIABILITIES & EQUITY Long-term Liabilities Muslim Commercial Bank: Outstanding Loan principal 35,000,000
35,000,000
28,000,000
21,000,000
Total Long-term Liab.: 35,000,00035,000,0
0028,000,0
0021,000,00
0Current Liabilities - Accounts Payable 6,553,8848,738,5129,881,240 10,587,043- Accrued Expenses 6,553,8847,718,5679,215,765 9,876,867- Workers Partcpn. Fund 0 956,6702,217,884 3,380,447-Workers Welfare Fund 0 956,6702,217,884 3,380,447Provision for Taxation 0 1,892,641 4,661,817 7,301,516- Bank Borrowings 3,745,54417,213,812
17,984,799
17,261,688
outstanding loan instalments 05,950,00012,650,05511,460,05
5Interest payable
Total Current Liabilities: 16,853,31143,426,8
7158,829,4
4363,248,06
2Total Liabilities 51,853,3 78,426,8 86,829,484,248,06
36
Balance Sheet
Feasibility Report A-1 Feed Industry
11 71 43 2EQUITYEquity 36,136,597
36,136,597
36,136,597
36,136,597
Balance c/d from Profit & loss appropriation account 0
13,879,369
20,307,287
19,357,792
Total Equity: 36,136,59750,015,9
6656,443,8
8455,494,38
9 Total Liab. & Equity: 87,989,908
128,442,837
143,273,327
139,742,451
A-1 Poultry Feed Industry . BAHAWALPURE S T I M A T E D C A S H F L O W S
For the year ended, Const. Yr. I II IIISOURCES Operating Profit 0 23,916,749 31,530,344 29,064,070Add Back: Depreciation 0 1,213,744 1,213,744 1,213,744 Amortization 0 281,399 281,399 281,399 Funds from Operations 0 25,411,892 33,025,487 30,559,213other income 0 0 0 0Equity 36,136,597 0 0 0Loan from Mcb 35,000,000 0 0 0- Custom Debentures 0 0 0 0Increase in Current Liab. 9,000,000 26,573,560 15,402,572 4,418,619Increase in Bank Borrowings 3,745,544 13,468,268 770,987 -723,111TOTAL SOURCES 83,882,141 65,453,720 49,199,046 34,254,722 APPLICATION OF FUNDS Investment in Fixed Assets: 33,885,700 0 0 0-Preliminary Exp 2,251,192 281,399 281,399 281,399Financial Expenses 0 5,950,000 5,650,055 4,460,055Repayment of : 0 0 0 0Loan from Mcb 0 0 7,000,000 7,000,000Workers Partcpn. Fund 0 956,670 1,261,214 1,162,563-Workers Wel. Fund 0 956,670 1,261,214 1,162,563
37
Cash Flows
Feasibility Report A-1 Feed Industry
provision for tax 0 1,892,641 2,769,176 2,639,699profit distributed 0 0 0 0Increase in current Assets: 43,002,724 5,888,425 10,113,397 19,924,655TOTAL 79,139,616 15,925,805 28,336,454 36,630,933 Surplus/(Deficit) 4,742,525 49,527,914 20,862,592 -2,376,211Cash Balance - Opening 0 4,742,525 54,270,439 75,133,031Cash Balance - Ending 4,742,525 54,270,439 75,133,031 72,756,820
Strengths:The labor to manufacture feed is easily available we can reach easily to low cost labor. Moreover the location for our project is very attractive. We can avail maximum advantage from this market.
Weaknesses:
Our weakness is that we are not producing feed up to the present demand of the consumer. Because we have dependend on govt for wheat & other raw materials like grains and rice and electricity problem is also our weakness.
Opportunities:
Pakistan is an agricultureal country, the production of feed is very high.feed is neccessry for the chicks(Brailer & Layer) so, demand of feed is repedly increases.also there is no enough feed mills to fullfill the demand so, there is great opportunity to establish feed mill.
Threats:
The market of the flour mills is highly competitive; therefore if the entrepreneur isnot well responsive and fulfilling the demand of the consumer he/she may not be able to capitalize the opportunity properly..
38
SWOT ANALYSIS
Feasibility Report A-1 Feed Industry
Conclusion & RecommendationsWe conclude that on the basis of field work and survey of feed mills that the feed is necessary product so its demand increase day by day. There is no chance to decrease the demand of feed. Pakistan is an agricultural country and it plays a very important role in our economy. Feed contributes 3.2% GDP in our economy. Availability of raw material is very easy. So, conclusion is that the feed mill is a profit motive business because no chance of decrease of demand.Our recommendation to new investors is that they must invest in feed mill because from the last year there is a great change or entrance of new poultry farmers in Pakistan. So, they step forward to come and invest or to start this business, and also contribute in the economic as well as social growth of Pakistan.
39
Feasibility Report A-1 Feed Industry
Special Thanks
We bow our head, before ALLAH Almighty, who blessed us with potential and
stamina to complete our feasibility report on Feed mill.
First of all would like to pay our special regards to Respected Sir Mr. JAVED
IQBAL who provides us guidance at each and every step, in completion of all
this feasibility report. We are especially thankful to those personalities who
help us in collecting data during the fieldwork and also in our practical work.
In this regard our thanks goes to:
Mr:Arsalan Rabbani, Mr: Hunain khan, Mr: Farzan Rafi, Mr: Shakeel Ahmed, Mr: Mohsin shazad, Mr: Adnan Ch., Mr: Farhan Khizer & Mr. Amir Faraz and all of our Class Fellows.
40
Feasibility Report A-1 Feed Industry
41
Table of ContentsExecutive SummaryName of ProjectLocation of ProjectCITYLOCATIONPRODUCTSInstalled CapacityCost of ProjectMeans of FinanceNames of LenderNames of SponsorsName of Civil ContaractorName of MachinerySupplierFinancial RatiosIntroduction of Company Shamim Feed IndustryMarket AnalysisPresent DemandDistributuion ChannelDemand Supply Gap Technical AnalysisList of MachineryRaw Materials RequiredPersonnel AnalysisFinancial AnalysisInitial Working CapitalCost of ProjectIncome StatementsBalance SheetCash FlowsSWOT ANALYSISA-1 FEED INDUSTRYDebt49%Implementation ScheduleCurrent RatioGross Profit RatioOperating Profit RatioNet Profit Ratio
Internal Rate of Return
IRR= 24%Payback PeriodSponsors StakeShamim Group of IndustriesBrief Description of MarketRole of feed and nutrition for livestock production is as essential as management or animal itself but its fiscal contribution surpasses all other aspects. A good nutrition plays a significant role for optimum production and in my opinion, on a scale of 1 to 10, it has rating of 7. Since last two decades science of nutrition, both in humans and animals, has taken centre-stage in the field of research, rather it is considered more important than pathological or medicinal aspects of production and life.
Hammer Mill
MixerElevatorConveyorStrainerWorking of Pellet MachinePacking MachineCost of ProjectMeans of Finance
Strengths:Conclusion & RecommendationsWe conclude that on the basis of field work and survey of feed mills that the feed is necessary product so its demand increase day by day. There is no chance to decrease the demand of feed. Pakistan is an agricultural country and it plays a very important role in our economy. Feed contributes 3.2% GDP in our economy. Availability of raw material is very easy. So, conclusion is that the feed mill is a profit motive business because no chance of decrease of demand.Special Thanks