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Poultry Feed PDF
Poultry Feed PDF
Poultry Feed PDF
PROJECT REPORT
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Feasibility Report A-1 Feed Industry
SUBMITTED TO:
SUBMITTED BY:
NAME ROLL NO
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Feasibility Report A-1 Feed Industry
PREFACE
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”
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.
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Feasibility Report A-1 Feed Industry
DEDICATED
To
TO
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
Javaid Iqbal
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Feasibility Report A-1 Feed Industry
ACKNOWLEDGEMENT
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Feasibility Report A-1 Feed Industry
Table of Contents
Contents Page#
Executive Summary 07
Name & Location of Project 09
Objectives & Key Success Factors 12
Introduction 14
Management 15
Project Scheduling Diagram 17
Technical Analysis 18
Market Analysis 23
Economic Analysis 30
Ratios 37
Assumptions underlying Earning Forecast 42
Projected Financial Statements 43
Break Even Analysis 53
Weighted Average Cost of Capital 55
Internal Financial Rate of Return 56
Auditing Plan 59
Exit Strategy and Risk Assessment 60
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Feasibility Report A-1 Feed Industry
Executive Summary
Project Assignment:
Objectives:
Approach to Project:
Data Collection:
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Feasibility Report A-1 Feed Industry
Primary Sources:
Questionnaire:
Time Frame:
Limitation:
Team has visited the various people but the information given
by them is just based of approximation.
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Feasibility Report A-1 Feed Industry
Name of Project
Location of Project
Tel: 0622-88473
CITY
“ Pakistan- Bahawalpur”
LOCATION
“ Small- Industries”
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Feasibility Report A-1 Feed Industry
PRODUCTS
Installed Capacity
The capacity of projected plant produces 361200 Bags at 100% Efficiency per Year.
Cost of Project
Means of Finance
Debt 49%
Equity 51%
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Feasibility Report A-1 Feed Industry
Names of Lender
Names of Sponsors
A- Hasan Qureshi
B- Jawad ul Hasan
C- Rahiqa Fatima
Name of Civil
Contaractor
“Amin & Co. LDA Plaza, Lahore”
.
Name of
MachinerySupplier
“Uzair & Co. Engineering Limited,Lahore”
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Feasibility Report A-1 Feed Industry
Implementation Schedule
Implementation Schedule
Sr.N
o. Activities Month Year
Engineering studies and designing of civil
1 works: 2010
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Feasibility Report A-1 Feed Industry
Financial Ratios
Current Ratio
Current Ratio 2.16 1.87 1.71
Current Ratio
3
Years
2 Series1
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Feasibility Report A-1 Feed Industry
Series1
2
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Feasibility Report A-1 Feed Industry
10.5%
10.0%
9.5%
9.0%
Series1
8.5%
8.0%
S1
1
2
3
year
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Feasibility Report A-1 Feed Industry
8.0%
7.0%
6.0%
5.0%
4.0%
Series1
3.0%
2.0%
1.0%
0.0%
0 1 2 3 4
Payback Period
2 YEARS.
Sponsor’s Stake
51%
Introduction of Company
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Feasibility Report A-1 Feed Industry
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Feasibility Report A-1 Feed Industry
Market Analysis
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Feasibility Report A-1 Feed Industry
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.
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Feasibility Report A-1 Feed Industry
Province Feed capacity 2003 2004 2005 2006 2007 2008 2009
Punjab 3600 1100 1251 1420 2180 2250 2600 3000
Sindh 1500 370 456 510 420 620 680 875
NWFP 250 90 100 100 120 130 80 50
Balochistan 120 66 84 97 97 100 50 50
Total Pakistan 5470 1625 1891 2127 2817 3100 3410 3975
Present Demand
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.
Distributuion Channel
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Feasibility Report A-1 Feed Industry
Technical Analysis
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Feasibility Report A-1 Feed Industry
List of Machinery
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Feasibility Report A-1 Feed Industry
Hammer Mill
Mixer
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Feasibility Report A-1 Feed Industry
Elevator
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Feasibility Report A-1 Feed Industry
Conveyor
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Feasibility Report A-1 Feed Industry
Strainer
Pellet Machine
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Feasibility Report A-1 Feed Industry
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Feasibility Report A-1 Feed Industry
Packing Machine
Boiler
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Feasibility Report A-1 Feed Industry
Raw Materials
Required
5- RAW MATERIAL REQUIREMENT
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Feasibility Report A-1 Feed Industry
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Feasibility Report A-1 Feed Industry
Personnel Analysis
Salary per
Description Number Annual cost
month Rs,
CEO 1 60,000 720,000
General Manager 1 40,000 480,000
Financial Manager 1 40,000 480,000
Export Manager 1 40,000 480,000
Sectery 1 15,000 180,000
Accountant 1 12,000 144,000
clerks 4 8,000 384,000
Computer operator 1 8,000 96,000
Recepnicet 1 8,000 96,000
Time Keeper 3 8,000 288,000
Drivers 2 7,000 168,000
security Guard 3 6,000 216,000
Gate keeper 3 6,000 216,000
Office Attendence 2 6,000 144,000
Mali 1 6,000 72,000
Sweepers 2 5,000 120,000
TOTAL 4,284,000
Add: Fringe Benefits @ 5% 214,200
TOTAL ADMIN COST 4,498,200
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Feasibility Report A-1 Feed Industry
Financial
Analysis
Brief Description of Finance
In 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 Project
The total cost of project is Rs. 69510128
Means of Finance
In the sources of finance we take Loan from MCB and the remaining is from the
Sponsors.
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Feasibility Report A-1 Feed Industry
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Feasibility Report A-1 Feed Industry
Cost of Project
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Feasibility Report A-1 Feed Industry
Income
Statements
A-1 POULTRT FEED INDUSTRY . BAHAWALPUR
For the year ending Dec. 31, I II III
Efficiency Assumed : 65% 70% 75%
SALES
a ) Bridder Feed 86,086,738 103,113,878 110,510,856
b) Bria Feedler 86,086,738 102,131,841 109,458,372
c) Layer Feed 85,112,074 101,946,435 109,259,665
Total Sales 257,285,551 307,192,154 329,228,894
Less:
COST OF GOODS SOLD :
Raw Materials 218,462,790 247,031,001 264,676,073
Labour 6,582,600 6,780,078 6,983,480
Manufacturing Expenses 3,779,755 3,953,676 4,069,624
Excise Duty \ Sales tax 3% 7,718,567 9,215,765 9,876,867
Royalty fee (Straight 0 0 0
line
Deprication method) 1,213,744 1,213,744 1,213,744
Cost of Goods Manufactured 237,757,456 268,194,264 286,819,787
Add: Opening Inventory 0 11,726,882 12,628,950
Less: Ending Inventory 11,726,882 12,628,950 8,198,110
COST OF G00DS SOLD 226,030,574 267,292,196 291,250,627
GROSS PROFIT 31,254,977 39,899,958 37,978,266
Less :
OPERATING EXPENSES
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Feasibility Report A-1 Feed Industry
Balance Sheet
A-1 POULTRY FEED INDUSTRY . BAHAWALPUR
ESTIMATED BALANCE SHEETS
Construction
year I II III
ASSETS
Fixed Assets
33,885,70 33,885,70 33,885,70
Fixed Assets at cost 0 0 0
33,885,700
Less: Accumulated Dprcn. 01,213,7442,427,488 3,641,232
33,885,70 32,671,95 31,458,21
Net Fixed Assets 0 6 2
30,244,468
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Feasibility Report A-1 Feed Industry
11 71 43 2
EQUITY
36,136,5936,136,5936,136,59 36,136,59
Equity
7 7 7 7
Balance c/d from Profit & loss appropriation 13,879,3620,307,28 19,357,79
0
account 9 7 2
36,136,5 50,015,9 56,443,8 55,494,38
Total Equity:
97 66 84 9
Cash Flows
APPLICATION OF FUNDS
Investment in Fixed Assets: 33,885,700 0 0 0
-Preliminary Exp 2,251,192 281,399 281,399 281,399
Financial Expenses 0 5,950,000 5,650,055 4,460,055
Repayment of : 0 0 0 0
Loan from Mcb 0 0 7,000,000 7,000,000
Workers Partcpn. Fund 0 956,670 1,261,214 1,162,563
-Workers Wel. Fund 0 956,670 1,261,214 1,162,563
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Feasibility Report A-1 Feed Industry
SWOT
ANALYSIS
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:
Opportunities:
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..
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Feasibility Report A-1 Feed Industry
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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.
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Feasibility Report A-1 Feed Industry
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