Small Industrial Estate Bahawalpur

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    U Group of Industries

    (AL-ALAQ)

    READ! AND THY LORD IS THE MOST

    BOUNTENOUS, WHO TEACHETH

    BY THE PEN, TEACHETH MAN THATWHICH HE KNEW NOT.

    ALLAH DOES NOT LOOK AT YOURFORMS AND POSSESSIONS

    BUT HE LOOKS AT YOUR HERTS AND

    DEEDS.

    (MUSLIM)

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    U Group of Industries

    OUTLINE

    -Introduction to industry

    - Market Analysis-Technical Analysis

    -Personal Analysis

    -Financial Analysis-SWOT Analysis

    -Recommendation & Conclusion

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    U Group of Industries

    Farhan Khizar

    Roll no # 24

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    Introduction to Industry

    Wheat is one of the most important products for all ofregion of the world.

    Without wheat human life is uncompleted. It is become more important not only by the fact of

    improvement international value. Its a first food item that an important for all over the

    world. That business also important for a Pakistan. And last decades the flour mill are increase due

    increase in demand of flour.

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    Early concept offlour mills

    Firstly wheatis grindingwith the helpof themachinewhich is run

    by themanually(Desi Chakki)

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    Early concept

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    First modern concept

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    Grist millsconstructed in theearly 1600's togrind corn and

    wheat to makeflour for the earlyEnglish settlers of

    coastal areas

    The History of Flour Milling InEarly America

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    It was brought to in 1626 byDutch and German settlers.

    Buckwheat spread down fromNew York, into Pennsylvania,western Maryland, West Virginiaand into Michigan. In the Northand New England the type of

    corn used for milling is yellowfield corn.

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    So after about 1730 most mills of any size operated their flour siftingmachinery by water power rather than being hand sifted.

    So the designs of water wheels and milling machinery changed in

    the 1800's.

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    History of Flour mills in Pakistan

    1957 - Pakistan Flour Mills Engineers was

    established in 1957. We havw been carteringto the requriments offlour mills in Pakistan

    entirely to the satisfaction of our worthy

    customers.

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    There are two types

    There are two types of mills or milling operations.

    Custom mills grind grains individually for farmers and

    other individuals. The miller is paid for his services ofmilling by collecting a toll. A toll is a portion of the

    grain brought to the mill for grinding

    The other type of mill is a merchant mill. A merchant

    mill Is a commercial milling operation.

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    Market Analysis

    Production in Pakistan for the last 5 years (000 tons):

    2004-05 2005-06 2006-07 2007-08 2008-09

    21612 21277 23295 20959 23421

    Present demand:

    Present demand of flour is about 25525000 tons in this current year.

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    Cont

    Demand supply gap: The supply of flour is about 23225000 tons and demand is

    about 25525000 tons.Ex-factory price(price which u will sell to whole sellers) The ex-factory price of 20kg bag of floure is 540 The ex-factory price of 20kg bag of maida is 740

    The ex-factory price of 20kg bag of bran is 220Retail price The retail price of 20kg bag of floure is 560 The retail price of 20kg bag of maida is 760

    The retail price of 20kg bag of bran is 240

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    Distribution Channel

    WHOLESALERSFACTORY

    CONSUMER RETAILERS

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    Amir Fraz

    Roll No # 11

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    Technical analysis

    Fourmajor points.

    1. Land for project2. Machinery for project

    3. Labor for project

    4. Raw Material

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    Land for project

    Land 120 marla @ 68000 per marla

    Registratioin & Legal Requirements 1% ofcost of Land

    Stamp Duty 2% of Cost of Land

    District Council Fee 1% of Cost of Land

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    Machinery for project

    Seprator ELEVATOR

    LOW PRESSURE FAN

    WASHING MACHINE

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    Cont

    Magnetic Machine Ruler Body Shifter

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    Cont

    PURIFIER Air Lock Battery Cyclones

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    Labor for project

    Total Cost of Milling Staff 10,735

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    Manufacturing process

    Flow chart

    Wheat received in

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    the Factory

    Wheat is weighted on

    the Plate Form

    Elevator 1 Elevator 2 Elevator 3 Elevator 4

    Wheat goes toSeparators for Clearing

    Separator 1

    Separator 2

    Separator 3

    Wheat goes to Bin to

    send it for Washing

    Washing

    Machine

    Wheat goes to Bin to

    send it for Grinding

    Roller Body

    Sifter

    Packing

    Output is send to

    Market

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    Raw Material

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    Personal Analysis

    Director ProductionDirector General Admin

    Manager Purchase

    Dept.

    Chairman

    Manager Sale Dept.Fore manproductions

    Manager a/cs Dept. Supervisors

    Skilled labor Unskilled labor

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    Financial Analysis

    RATIOS 1 2 3 Current Ratio 2.38 3.080 3.69

    Cash Ratio 2.29 3.99 6.05

    Liquid Ratio 2.44 4.25 6.42

    Debt/Total Equity 1.31 .96 .72 Net Profit 9.55% 9.90% 12.25%

    Internal Rate Of Return 30%

    Pay Back Period 2.35 years

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    Humaira kanwal

    Roll No # 09

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    Strengths

    The labor to manufacture flour 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.

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    Weaknesses

    Our weakness is that we are not producing

    flour up to the present demand of the

    consumer. Because we have dependend on

    govt for wheat and electricity problem is also

    our weakness.

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    Opportunities

    Pakistan is an agricultureal country, the

    production of wheat is very high.flour is

    neccessry for all kind of people so, demand

    of wheat is repedly increases.also there is no

    enough flour mills to fullfill the demand so,

    there is great opportunity to establish flourmill.

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    Threats

    The market of the flour mills is highly

    competitive; therefore if the entrepreneur is

    not well responsive and fulfilling the demand

    of the consumer he/she may not be able to

    capitalize the opportunity properly.and the

    qotta system is used the supply of wheat notprovided to flour mills according to their

    demands

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    Conclusion and Recomendation

    We conclude that on the basis of field work and surveu offlour mills that the flour is neccessry product

    Demand increse day by day. There is no chance to decrease the demand of flour.Pakista is an agricultural country and wheat is the one ofthe major crop.

    Availability of raw material is very easy. So, conclusion is that the flour mill is a profit motive

    business because no chance of decrease of demand.

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    Cont

    Our recommendation to new investors is that

    they must invest in flour mill because from

    the last year there is the shortage of flour in

    pakistan. So, they step forward to minimize

    this shortage, and also contribute in the

    economic as well as social groth of Pakistan.

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    Special Thanks

    We bow our head, before ALLAHAlmighty,

    who blessed us with potential and stamina to

    complete our fesibility report on flour mill.

    First of all would like to pay our special regards

    to Respected Sir Mr. JAVED IQBAL who

    provides us guidance at each and everystep, in completion of all this feasibility report.

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    We are especially thankful to those personalities who help us incollecting data during the fieldwork and also in our practicalwork.

    In this regard our thanks goes to:

    Mr:Arsalan rabbani, Mr: Shakeel ahmed Mr: Jawad-ul-hasan, Mr: Mohsin shazad Mr: Hunain khan, Mr: Adnan ch Mr: hasan qureshi, Mr: Farzan rafi,,

    AndAll of our class fellows

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    U G f I d t i