TABLE OF CONTENTS

SL NO. SUBJECT PAGE NO

1. SUMMARY OF THE PROJECT 1-4

2. MANAGEMENT ASPECT 5-19

3. TECHNICAL ASPECT 20-41

4. FINANCIAL SUMMARY 42-43

5. SOCIO ECONOMIC ASPECT 44

6. MARKETING ASPECT 45-56

7. FINANCIIAL ANALYSIS 1-31

 EXECUTIVE SUMMARY

1. Name of the project :

(Fully Automated Bricks Manufacturing)
2. Location of the project :

3. Registered Office :

4. Main Partner :

5. Nature of the project :

6. Brief Description of the Project:

The project envisages setting up of an automatic brick-making factory of Tunnel Kiln

technology to manufacture high quality, technically sound and marketable solid bricks. The
machine’s manufacturing capacity would be 1,00,000 pcs per day capacity with 8 hours per
day and 300 days per year operation capacity. Bangladeshi brick demand is mounting steep
day by day parallel to rapid growth of real estate sector of Bangladesh. The project design
combines a highly efficient tunnel kiln technology, with a unique technique of forming green
bricks: granulated coal is injected for internal combustion. This approach results in lower
energy usage, higher quality bricks and reduced pollution. Bricks of any size, shape and
pigmentation can be produced at the plant with minor modifications. All bricks will be of
uniform quality and will meet international standards for strength, quality and appearance.
The sponsors intend to implement the scheme with financial assistance from Bank/Financial
institution for acquisition of state of the art capital machinery, operating with efficient and
expert management team along with their skilled workforce and a vision to excellence. It is
anticipated that the project will go into commercial operation within 12 months from the date
of opening of letter of credit.

The proposed project, when implemented would fulfill to the following objects:-
a. Ensure development of new entrepreneur.
b. Earn a good return on investment by way of value addition.
c. Create a good number of employment opportunities.
d. Generate adequate profit for the sponsors.
e. Revenue to the national exchequer after expiry of Tax Holiday period of the project.
f. Ensure supply of quality products.

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8. Total Cost of the Project.

SL Tk Cost in
Item 000
01 Land & Land Development 130,000
02 Factory steel structure & Civil Works 47,694
03 Machinery & Equipments(Including L/C commission,Inter.freight etc.) 209,576
04 Generator 1500KVA
05 Cable, Cable Distribution System
06 Excavator 0.5 cm 2pcs
07 Pay Loader 1.5cm 2pcs
08 Dumping Truck 5 Pcs
09 Sub Station 1500KVA
10 Local Material
11 Furniture, Fixture& vehicles
Total 387,270

9. I) .Means of Finance.
(TK.in 000)
Against Total Cost of Machinery
Against Total Estimated Cost of the
  & Equipment
Project
Tk Amount in
% Tk Amount in 000 %
000
Long-term
309,816 80% 167,661 80%
Loan
Bridge
0 0% 0 0%
Financing
Owner's
77,454 20% 41,915 20%
Equity
Total 387,270 100% 209,576 100%

II)
1st. year 2nd. Year 3rd. year 4th. Year
Total Working Capital
Requirement 44,610.49 46,309.36 47,612.29 48,049.56
Margin against W/C Finance 8,922.10 9,261.87 9,522.46 9,609.91
W/C for Bank Finance 35,688.40 37,047.49 38,089.83 38,439.65
10. Operating Results: (in 000)

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 1st. year 2nd. Year 3rd. year 4th. Year
Capacity Utilization 95% 97% 98% 98%
Sales 185,538 197,421 199,920 199,920

Gross Profit 84,367 82,258 81,705 80,543

Operating Profit 76,663 73,979 72,899 71,170
Net Profit 37,858 40,332 44,428 47,968
Operating Profit to sales 41.32% 37.47% 36.46% 35.60%
Net profit to sales (%) 20.40% 20.42% 22.22% 23.99%
Investment service coverage
1.08 1.11 1.18 1.25
(Time)

10. a)

Qty in pc
Unit/Price Total Amount
annual, capacity
(In taka) (Tk.in 000)
100,000 daily

Sales:(Net Sales after inventory

28,500,000 6.5 185,250
adjustment Vat payment)

Total Cost Pcs

Item-wise Unit Cost: in “000” Production
Unit Cost

Raw Materials 60918.75 28500000 2.14

Salaries & Wages for Factory Stuff 8150.54 28500000 0.29
Depreciation 12863.50 28500000 0.45
Utilities 25436.25 28500000 0.89
Stores & Spares 1047.88 28500000 0.04
Repair & Maintenance 1286.35 28500000 0.05
Tax & Insurance 2038.10 28500000 0.07
Financial Expense 38804.96 28500000 1.36
Total Cost 5.28

11. Break-even- sales : TK 113157.11 Tk 118387.63 Tk 112168.50

12. Break-even- capacity of operation: 58 % 58% 55%

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13. Internal Rate of Return (IRR) : 17.03%

14. Economic Aspects:

 Employment Generation : 95 Person

 Cost per job created : Taka 4076.53 Thousands

 Contribution to GDP : Tk 101,273.87 Tk 102,051.36 Tk102,373.62

 Benefit cost ratio : 1.65

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 MANAGEMENT ASPECTS

Type of the Organization:

The organization is a Private Ltd

THE PROMOTERS:

The project of………………… has been enlightened and experienced group …..(…..)
persons residing at …... They intend to set up a Automatic Brick industry with the financial
assistance from any financial institution. A pre-investment Feasibility report to this effect has
been prepared about the project design, covering in details of its probable cost, profitability
and other relevant aspects especially the, Managing Director and Directors of the company
have sufficient business/ industrial experience. It is expected that as the Managing Director
have already gathered sufficient knowledge in this line of production system as well as the
technology involved in it and marketing approach of the products it will be an extra plus
point for managing the project.

The management of the company is vested with Board of Directors of the company.
The promoters of the project are as follows:

MANAGEMENT ASPECTS

BOARD OF DIRECTORS

The proposed project will be promoted by the following seven directors. The status and the
share of each director are stated below:

Name of the Directors Share Status Share Value in BDT

@100 Tk each share

TOTAL
Table 4

5
CORPORATE SET UP

PERSONAL DETAILS AND NET WORTH STATEMENT

Personal Details

Pic

Name :

Father’s Name :
Mother’s Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :
Present Address :
Permanent Address :

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Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
ID :

Net Worth
Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

7
Personal Details Pic

Name :
Father’s Name :
Mother’s Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :

Present Address :
Permanent Address :

Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
ID :

Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

8
Personal Details
Pic

Name :
Father’s Name :
Mother’s Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :

Present Address :

Permanent Address :
Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
ID :

Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

9
Personal Details
pic

Name :
Father’s Name :
Mother’s Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :
Present Address :

Permanent Address :
Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
Passport NO :

Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

10
Personal Details

pic

Name :
Father’s Name :
Mother’s Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :

Present Address :

Permanent Address :

Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
Passport :

Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

11
Personal Details

pic

Name :
Father’s Name :
Mother’s Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :

Present Address :

Permanent Address :

Education :
Profession :
Date of Birth :
Age :
TIN No :
Passport No :

Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

12
Personal Details

pic

Name :
Father’s Name :
Mother’s Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :
Present Address :

Permanent Address :

Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
Passport No :
Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

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All these directors who are also holding the directorship of …….……….will add this new line
of project ……………….as a sister concern of their group along with their other
manufacturing unit. They have long and wide and deep experience in the prominent export
oriented business of the country and by virtue of their strong entrepreneurial expertise they
would carry on the project to the apex of success. A Total Quality Management approach
would assure the fact as they are already an ISO standardized group. Hopefully they would
further add greater value to country’s economy and environment by carrying the project
rightfully and successfully. The group has a yearly turnover of BDT ………. and asset value
of ……….. which is a stunning picture of the group’s immense capacity to successfully glorify
in this field.

ORGANIZATION SET UP

The overall management of the company would be vested to the board of Directors. The
Chairman/Managing Director will be responsible to keep the board and management
organized, informed and on task. As a chairman he would be the spokesperson of the
company and lead the management and administration of the company under the board
policy/guidelines of the board of directors. Besides, the management of the company will be
assisted by a team of qualified and experienced professional personnel under the leadership
of the Managing Director and the General Manager. He will exercise those powers which will
be delegated to him by the board of directors from time to time.

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 ORGANIZATION CHART DESCRIVING ARRANGEMENT FOR MANAGEMENT

Board of Directors

Managing Director

General Manager General Manager

Accounts Manger
Production Manager
Production Manager
Commercial Manger
Extruder
Engineer

Mixer M/Operator Marketing Executive

Supervisor

Electrician
Junior Executive
Machine Operator

Dryer operator
Skilled worker Guard/Peon

Fire Man
Un- Skilled worker

Skilled worker Peon/Guard

Un- Skilled worker

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 TECHNICAL ASPECTS

PRODUCTION PLANNING AND OPERATION TECHNIQUE

The project envisages setting up of an automated solid,… hole and…. hole brick and
hollow block brick making unit. The demand for building material is increasing day by
day, brick is one of the pertinent objects that are of high demand and echo friendly
brick making technology is also a burning issue. The sponsors intend to implement
the scheme with financial assistance form Bank/ Financial institution with acquisition
within 12 months from the date of opening of letter of credit for imported machinery
with state of the art technology of higher quality machinery. Total fixed cost of the
project has been estimated at BDT …………..

Our chosen technology is Tunnel Klin technology developed in Germany. In addition

to kiln efficiency, the process technology employs a direct fuel injection technique to

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create better thermal bonding and reducing fuel usage and thereby lowers CO 2 and
other emissions.

The Tunnel kiln can be made from firebricks or from green bricks. In the latter event, the
green bricks get “cooked” during kiln operation. The inner kiln lining is made from standard
bricks and then plastered over by refractory cement. The firing chamber can be filled
manually or automatically with green bricks.12 colum base tunnel kiln usually ……………
pcs production per day.
The fuel, granulated coal, is fed into the firing zone in the kiln through stoke holes on the
roof. Air required for the combustion process is forced from behind; and, as it reaches the
line to be fired, it is already preheated from the previous firing zone thus reducing firing time
and energy usage. The temperature in the firing zone is about 200-300° C. The process is
extremely simple and is carried out manually.

In addition to kiln efficiency, green bricks will be injected with pulverized coal, a technique
commonly used in China to make bricks. This technique enables improved thermal bonding
and reduces fuel usage, and hence CO2 and other emissions. Clay is premixed with
granulated coal and then extruded to produce the green bricks. This is a unique process that
is fundamental to the energy efficiency achieved in brick making in China. Almost 80% of the
total energy required is injected into the bricks and only about 20% is fed externally into the
firing chamber. Most of the fuel mixed into the bricks is almost completely burnt during firing.

PRODUCTION CAPACITY

The annual production capacity of bricks of the project based on two shifts operation of 8
hours each per day and 300 working days in a year and the daily production capacity is
1,00,000 pcs of solid brick.

LAND AND LOCATION

The project has been proposed to be located in Kapashiya adjacent to Dhaka city connected
with good communication from water and road transport mode. The proposed site will be
very near to electric power line. The area of land required …….. Bigha The land & land
development has been estimated Tk 1300 lac.The land has been selected considering its
suitability for setting up such a project. The site has all the logistical support like Power,
Water, Drainage and Communication for setting the project having economical labor and raw
materials available around the adjacent areas.

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CIVIL WORKS

The entire civil works of the project comprises 9369 smt. in total (Machinery room, Drying
room, Tunnel kiln, Civil Construction of shed, Office room, Labor shed, Boundary etc.)
constructions; it has been designed and will be supervised by a group of highly qualified
Architect and Engineers.

IMPORTED MACHINERY
For implementation of the scheme, the project will require state of the art capital machinery
from renowned Chinese suppliers. It will be a complete set of composition of basic operating
machinery (Back process Unit + Baking Unit + Drying Unit) along with supporting unit
including of electric cabinet and other supporting machinery and equipment. In selection of
machinery, the quality and the cutting edge technology has been given priority. The
machinery of the project has been proposed to be imported. The cost of imported machinery
has been estimated at BDT 2,09,576 thousands.

MANUFACTURING PROCESS

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25
26
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Technical Plan flow chart

1、Process Flow

Clay Fuel: Coal

↓ ↓
Bulldozer or loading machine Coal crusher
↓ ↓
Box feeder Belt conveyor
↓ ↓
Belt conveyor ←← ←←← ← ← ← ←← ←←← Coal box feeder
↓
Rolling crusher
↓
Belt conveyor
↓
Double shaft mixer ←←← ←←← ←←← ←← Water adding
↓
Belt conveyor
↓
Ageing room for material
↓
Box feeder
↓
Belt conveyor
↓
(Fine pulverizing double-roll grinder)
↓
(Belt conveyor)
↓
┌→→→→→→→→→ (Intense mixer and extruder) ←←←←←←←←Water adding
Belt ↓
Conveyor Belt conveyor
for ↓
fault Vacuum extruder ←←←←←←←←←←←←←←Vacuum pump
brick
↓
| Column cutter
| ↓
└←←←←←←←←←←← Brick cutter
↓
Green brick distributing and transportation machine
↓
Stack green brick to drying car by labor
↓
Hydraulic ferry pusher
↓
Drying car into drying chamber
↓
Drying car’s trailer
↓
(Tunnel kiln) baking
↓
Take out the finished brick from kiln by labor
↓

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 Finished brick yard

Brief description of production

Production Timing (Production hour in job process basis):

Time Raw material Molding Drying Baking

treatment
Working 2400 2400 3600 3600
hours/Year
Working days/Year 300 300 300 300
Working 8 8 12 12
hours/Day

Table 4

Clay and coal material prepare and treatment

By the Bulldozer or Loader to send the raw clay to the box feeder, the box feeder adopted
the valve controller; it can control the feeding quantity according to the requirements. Then,
the raw clay through the belt conveyor goes to the rolling crusher for primary pulverizing.
Coal will be crushed by the coal crusher and being piled up. Then by labor vehicle or loading
machine send the coal to coal feeder, which adopt valve controller, can control the coal
feeding quantity according to requirement. Through the belt conveyor, coal powder will go to
rolling crusher, together with the clay crushing, coal powder and clay will be mixing primary.
After primary pulverizing, the clay will be sent to the double-shaft mixer. By water adding let
the clay and the water are completely mixed round and uniformity. The water input quantity
in this process will be around 90% of the total water required. Clay after the first time mixing
will be sent to the ageing storeroom for 24-72 hours homogenization, which will make the
water filter into the clay grains and make them more uniformed. This will improve the finished
brick quality a lot.

The clay will receive second time smash by the fine pulverizing double roll grinder in order to
get the proper grain size. Then clay comes into the intense mixing and extruding machine,
by water adding again and mix, extrude, cut up, so that to get a better molding quality.

Molding

33
Moisture content when molding is controlled to 18%-20%.The molding adopts JKR40/40F-25
double stage vacuum extruder. The ready raw material come from the intense mixer and
extruding machine through the belt conveyor being sent to the vacuum extruder, the vacuum
pump extract the air from the mud material. The vacuum extruder squeeze out the mud
material from the extruder mouth then pass the auto column slitter and brick cutter , being
cut into the required bricks. In order to let the surface of the brick more beautiful and
combine with the mortar more fastness when establish the building, we can add embossing
device on the forepart of the column cutter, thus the effectiveness will be better.

Drying

In order to save energy, reduce the CO2 emission and take full use of the heat, green bricks
are dried by the tunnel drying chamber with small size cross section. Heat resource comes
from the remaining heat of the Tunnel kiln. Green bricks come from the cutter then being put
on the drying cart by man after bricks distributing and transferring machine, and then it will
be sent to the drying chamber by the ferry pusher. The structure of the drying chamber is
brick-concrete structure. There are heat supply system, adjusting system and humid exhaust
system. In order to guarantee the brick’s quality, save coal fuel, we equip the control system
temperature-supervise meter. When the heat is not sufficient or coal heat quality below
standard, workers can discover in time and adopt measure accordingly, so that this can keep
the brick quality steady and prevent the pollution by the leak heat. Take daily production
1,00,000 pcs for example, use tunnel type drying chamber

34
Picture: Clay brick plant show
need about 1800m2, but traditional natural drying by sunshine need about 15000m2. So that
it save big area of land for green brick drying, improve the worker’s working environment.
And the brick production do not affect by the weather, brick’s quality and production quantity
are both improved also. Compare to same capacity old type brick factory, it can save about
80% land area for the country.

Baking

Dried bricks via the hydraulic ferry pusher are sent to the trail car. Then, the workers push
the drying car onto the trail car, and then send to the Tunnel kiln for unloading, stacking and
baking. Workers will pick out the dry waste when adobe stacking. The Tunnel kiln is with
three centered arch structure. Kiln backing is mainly based on coal powder from outside,
assist by the internal combustion. In order to easy control the baking temperature, guarantee
finished brick quality, save coal energy, and avoid any additional damage of the kiln and
equipment, we equip the temperature test, alarm and protection facility in the Tunnel kiln
baking system. This will reduce the baking temperature too high or too low condition
happens, prolong the kiln’s working life time, reduce unnecessary economy and energy
expense, meanwhile will improve the factory’s work efficiency. Talk about the advantages of

35
Tunnel kiln, first is High energy efficient. Take one million standard brick for example, Tunnel
kiln need about 100 ton coals for baking, with energy saving of 50-60% compare to the old
technologies. Tunnel kiln require less land area, daily production capacity 300,000pcs’
Tunnel kiln need about 2800-3000m2 lands. Its operation easy, weather proof, the kiln can
work whole year-round. Old traditional kiln can only work 5-6month. There are about 14
million hectare of land in Bangladesh, yearly abandon rate for the land is about 8000
hectare. There are over 4000 energy inefficient kilns in Bangladesh, each kiln consuming an
average of 240 tons of coal to produce one million bricks. Almost all the coal being used is
low-grade coal, each kiln there fore produce 760tones of CO2 per year. Total annual CO2
emissions from the 4000 kilns are, therefore, over 3.0 million tones. Above information
shows the old technology kiln with high pollution and high cost of energy. New technology
kiln will be beneficial for Bangladesh country.

ECHO FRIENDLINESS & POLLUTION CONTROL

We have adopted the state of the art automatic brick making technology the Tunnel Kiln
which is a green technology with energy efficient and environment friendly features
introduced by UNDP research in Bangladesh to reduce the pollution. The United Nations
Development Program (UNDP) and the Global Environment Facility (GEF) have recently
introduced energy efficient, smokeless brick-making technology to curb greenhouse gas
emissions in Bangladesh. This new device, known as the Tunnel Kiln, was originally
developed in Germany to replace the older, highly pollutant brick-making technology. It was
later modified in China and remodeled to accommodate the specific needs of Bangladesh’s
brick-making industry. As a result, brick-making technology in Bangladesh is now maximally
efficient, eco-friendly and cost-effective.

PRODUCTION PLANNING AND OPERATION

Raw materials

Raw material is clay. No impurity contained and its physical property and chemical
composition should meet the baked brick’s requirement.

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Products Specification

Name Dimension in inches Type

Clay brick 10×5×3 Solid & Hollow
Table 5

Power Distribution

The project will require a connected load of 1000 KW for production process and domestic
use. The Maximum demand would be 1000 KW. Required power will be met from REB.
Moreover, the project will procure Diesel generators for supply of power in case of power
failure. The cost of generator has been considered with the cost of local machinery.

Power Kwh
Connected Load(KWH) 1000
Maximum Demand(KWH) 1000
Peak Hour 6
Off-Peak Hour 18
Table 6

The power distribution system would require low voltage distribution panel 2sets, QTJ start-
up cabinet 4sets, Operation box on site 3sets, Cable, electrical wire, tools etc.

Water

The project will require water pipe and accessories, valves, water tank steel plate, water
pump etc. The cost of all these has been incorporated in the local machinery cost.

The Project

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The Proposed project has been designed to manufacture Auto Bricks, Blocks of different
kinds/sizes which have wide market demand in the country as well as all over the world.

Production Capacity

The annual rated capacity and product mix of the proposed project at 100% capacity
utilization based on one shifts Operation per day and 300 working days per year has been
given in the following table:

SL.NO. Product Mix Quantity (In pcs.) Unit Price Total Value
(In Taka) (TK .in ‘000’)
01 Bricks 30,000,000 8.00 240,000
Total: 30,000,000 240,000

Raw materials Requirement

Raw Materials:

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 SL.NO Quantity Unit Total Amount
Item
. (In Cft.) Price(Tk.) (Tk.in ‘000,)
Clay 3750 Mt 11,500 43,125

Coal 2,100,000 10 21,000

Total: 64,125

Logistic

The project will carry procured raw materials through water and land with relevant mode of
transport. And also they would deliver the finished brick by truck. The project would be
situated beside river which would be good medium to transport for required clay and coal for
production.

Workforce

The project would require an estimated 95 personnel for its operation. The personnel would
comprise of 70 technical workers directly related to automated brickfield operation and 25
personnel for general and administration purpose totaling 95 personnel for the project.
A. TECHNICAL
The requirement of technical personnel based on one shift operation per day has
been estimated 70 personnel; the allocation of the personnel has been estimated
on the basis of labor requirement of each process as below

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Factory Staff:
. ( Amount Tk. In 000’)
Position No(s) Salary/ Month Total Salary
8,
Factory Office Staff
10 444 1,013.28
8,
Machine Room Staff
20 267 1,984.08
7,
Dryer Staff
10 500 900.00
8,
Klin Staff
30 041 2,894.76
Total 70 6792.12

B .Administrative Staff:
SL.NO Category No. Salary/month Annually Salary
(Tk.in’000,)
01. CEO 1 40000 480
02 General Manager 1 30000 360
03 Manager (Admin &
Personnel) 1 15000 180
04 Manager ( Marketing) 1 15000 180
05 Manager ( Finance &
Accounts) 1 15000 180
06 Manager ( Commercial) 1 15000 180
07 Manager ( Production) 1 15000 180
08 Officer Sales & Marking 1 10000 120
09 Purchase Officer 1 10000 120
10 Stock Officer 1 10000 120
11 Commercial Officer 1 10000 120
Accounts & Finance
Officer 1 10000 120
Asst. Sales Officer 1 10000 120
Asst. Marketing Officer 2 10000 240
Asst. Store officer 9 10000 1080
Security inspector 1 10000 120

Total 25 3900

Building and other civil works.

To implement the proposed project Pretty Auto Bricks Ltd the sponsors of the project will
construct Steel Structured building having measuring areas of …….smt.project will include

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Office building, factory building the total cost of building has been estimated at Tk………lac.
The details of which is given below:

SL Items Specifications Rate/Smt. Cost Tk. In

No ‘000’
01 02 03 04 05
01 Kiln 144.35mx 21m
=3031sqm.

02 Drying Chamber 75mx42m=

3150sqm.

04 Silo Store & machine Room 54.5mx58.58m=

3188.25sqm
05 Total:

Machinery and Equipments

The cost of the proposed imported & local machinery and equipments of the project has
been estimated Tk 209,576 thousands excluding duty, tax, internal freight etc. The details of
machinery and equipments have been shown in the quotations enclosed here with.

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Land and Location
The project will be located on a plot of land measuring …… Bigha
at Kapashia,Gazipur, The cost of land is Tk. 130,000 thousands including registration, land
development cost etc.

The area of land is considered adequate for accommodating the present physical facilities of
the project as well as its future expansion.

The location of the project situated for the implementation of its functional operations since
the necessary infrastructural facilities liked road, communications, power (Electricity supply)
Gas, water supply together with the requisite manpower. Raw materials procurement &
products/ services marketing facilities are available there.

The location being within Gazipur industrial belt is very easily accessible by road transport
without any inconvenience.

The project location will enable the infrastructural provisions & electricity service connections
to be effected ready at reasonable costs, thereby effecting economization in the project
investment cost.

Since, the project location is situated within Gazipur industrial belt, it is expected there shall
be an adequate supply of locally available necessary factory workers & skilled technicians
for the project.

Erection and Installation

Erection and installation of machinery will be done by experts. An amount of Tk. ……..lac
has been estimated for this purpose.

Furniture and Fixture& Vehicles

Furniture, Fixture and vehicles of the project has been estimated at Tk…… lac.

Internal Freight.
An amount of Tk……. lac has been estimated for both imported and local machinery to
reach the project site.

42
Utilities
I. Water: Water will be required the cost of which has been in corporate in the local
machinery cost as Tk….. lac. Fuel and gas Tk 375,000 thousands.

ii. Electricity
The total electricity to be required for the project has been estimated at 1000 kw at 100%
capacity and it will get from Power Development Board. The related cost has been estimated
at Tk 11 per unit.

Repair and Maintenance

The cost of repair and maintenance for machinery has been estimated @ 0.5%,1% & 1.5%
and onwards of it’s of machinery and equipments in 1st, 2nd, 3rd and subsequent years of
operation.

Stores & Spares

The stores & spares of machinery to be required has been estimated @ 0.5%,1% & 1.5%
and onwards of its cost of machinery and equipments in 1st, 2nd, 3rd and subsequent years
of operation

43
 FINANCIAL SUMMARY

Financial Evaluation
The Profitability analysis on the proposed Project has been computed for 10 years of
operation to assess the financial viability of the project. The financial projection that has
been made includes estimate of sales, cost of goods sold, administrative and general
expenses. The consolidated statement showing the result of the project in the earning fore
cast statement at Annexure-iii

Assumption underlying the financial projections

A. The capacity of the project is projected to be 95%, 97%, 98% of the rated capacity in the
1st three years and onwards.

B. The cost of other accessories have been kept constant throughout the period on the
assumption that increase in raw materials will be offset by increase in selling price of
products.

C. The rates of depreciation / amortization of various assets of the project are considered as
normal rate that prevails in the industrial sector.

D. Insurance premium is to be charged at 0.50% of the cost of the fixed assets and raw
materials stocks.

E. Other expenses viz.power, fuel & lubricants etc. Are charged as per prevailing market
price.

F. General and administrative expenses are estimated as per prevailing market price.

G. Tax-Holiday for the project has been estimated to be 5 years.

Debt Service Coverage Ratio (DSCR)

The details debt service coverage ratio may be seen at Annexure-x.

44
Break-Even- Analysis
The break-even- analysis has been carried out on the basis of cost & sales of projected
operation. The project is expected to be break-even- at 58% of the rated capacity. The
details of break-even- analysis has been given at annexure- xvii.

Cash flow statement

The projected earning forecast statement indicates that the project will have sufficient fund
generation at the end of the year. The project will be able to all its operational expenses,
repay its debt obligation, provides substantial returns to the sponsors and build a reasonable
reserve. The detailed of cash flow may be seen at Annexure-xi.

Projected Balance sheet

The projected balance sheet also shows that the project will be able to maintain health
liquidity throughout the operational life. The derails of Balance sheet may be seen at
Annexure-xii.

Internal are Rate of Return

The internal rate of return has been computed following the DCF technique. The details are
given in Annexure-xv.

Investment Period
The investment period has been considered 7 years.

45
 SOCIO-ECONOMIC ASPECTS

Employment Generation:
The project after implementation will create employment opportunity for 70 persons and the
cost per job created will be Tk 4076.53 Thousands

ADDITIONAL EMPLOYMENT GENERATION AND LABOUR INTENSITY :

The proposed project expects to provide permanent employment throughout the year.
Workers, Technicians, administrative and commercial staffs and effect payment of Tk.
187,88.20 thousands annually in the 5th year of projected operation to them in the form of
wages and salaries. This will marginally alleviate the local unemployment situation and the
employees again a livelihood for themselves and their families, besides, this, the proposed
project will create huge indirect employment.

CONCLUSION

As evaluation of the Socio-economic, Private & national benefits, which expected to accrue
from the implementation of this project & continuous execution of its operational activities will
easily highlight the rational & economic justification of establishing this unit. The Project is
expected to generate very substantial financial returns for the promoters, all method of
project appraisal & analysis, financial, management & economic evaluation justify the
establishment & implementation of this unit. The unit will be able to pay to pay income tax,
after expiry of tax holiday period. Such levies & taxes will help to enhance the Governments
funds, available for public sector development expenditure.

46
 MARKETING ASPECT

Marketing Aspect:

Objective:

The objective of this market study is to examine and investigate into demand pattern,
sources and uses of Tiles, Bricks .The proposed project will be set-up for manufacturing of
different sizes and types bricks. Brick has employed by most cultures through the ages to
build everything from temples to castle, cottages to factories - even the “Great Wall” of
China. Favored for its versatility and the readily raw material from which bricks are
fashioned, clay, many ancient buildings such as those built by Romans still stand today!

MARKETING ASPECTS:

INTRODUCTION:

Modern development process has come to produce rapid urban growth. Hence one of the
objectives of planned development is to improve the physical conditioning of living such as
housing and water supply. But as people aspire for comfort rural community also needs to
have access to such basic facilities of life. In fact poor countries have come to be regarded
as rural slums and the rural to urban migration is an attempt to escape it. The program of
development of physical infrastructure, therefore, covers both urban and rural communities
in public and private sectors. The program consists of development of housing office and
commercial buildings, site development for private housing, office & commercial buildings,
city roads etc.

In the Five years plan rather a comprehensive approach was for the first time taken to bring
development to the door of people and steam urban migration. This consisted of the

47
government policy of decentralization of administration and acceleration of development
activities at upzilla level. This policy will require creation of necessary physical infrastructures
there within the frame work of national physical plan and the demand for construction
materials like bricks etc. will also increase.

APPLICATION OF PRODUCTS / SERVICES:

The Products of the project will be automatic bricks, to be produced from local clay.
Automatic bricks have comparative advantage over hand made bricks in respect of unit
price, size/smoothness in surface, bright in color hardness in strength and cheaper as
compared to hand made bricks being produced by the brick fields situated in the rural areas.
the initial cost of this type of project though high but the over –head working cost is less. As
such this type of project can supply bricks at a relatively cheaper price. Furthermore it can
cater to the large volume of Government/private institutions/organizations place orders. It
may be mentioned here that some times various public works are interrupted due to
shortage of bricks. This type of project of implemented may be able to solve this problem.

Bricks are mainly used in constructing houses roads and bridges. Bangladesh is a
developing economy and from 1976 onward the economy is striving forward, in both public
and private sectors. With the development of trade and industry and overall expansion of the
economy, construction sector has also exhibited considerable growth. It has already been
mentioned here that bricks are mostly used in the construction of houses apartments, roads
and bridges. Besides the private housing sector, the major users of bricks are the various
governments. Semi-government and autonomous organization of which the following
deserve special mention

48
a) Public works department
b) Roads and Highways
c) Water and power Development
d) Public health Engineering:
e) Rural Electrification
f) Pourashavas and others:
g) Zilla parishad
(i) Thanas
h) Titas Gas etc.

49
TARGET MARKET –EXPORT:

Besides export potentiality, the aforesaid products will be marketed locally, as usual
practices that prevail in the country.

PROSPECTIVE BUYERS OF BRICKS IN REAL ESTATE SECTOR:

Besides, Prospective buyers of other sectors there are a good number of property
developers are registered with REAL ESTATE AND HOUSING ASSOCIATION OF
BANGADESH (REHAB). Out of which the largest/ medium standard, property developers
who are regularly develop commercial space and apartment project is shown in TABLE-1

TABLE-1

LARGEST/MEDIUM STANDARD PROPERTY DEVELOPERS IN DHAKA CITY

Sl. Name & Address Large/Medium

no standard
01 ABC REAL ESTATES LTD.
ABC (6th F1) Medium
8, Kamal ataturk Avenue
Banani C/A, Dhaka-1213.
02 ADVANCED DEVELOPMENT CONSULTANTS LTD.
House-15, Road-11/1, Block-B Large
Banani C/A, Dhaka-1213.
03 ADVANCED DEVELOPMENT TECHNOLOGIES
176, Gulshan Avenue Large
North Gulshan, Dhaka-1212.
04 AMIN MOHAMMAD FOUNDATION LTD.
764,Satmasjid Road, Amin Chamber Large
Dhanmondi Dhaka.
105 ASSETS DEVELOPMENT & HOLDING LTD. Large
House -29, Road-39, Gulshan, Dhaka-1212.
06 ATLANTIC DEVELOPMENT LTD.
168, Elephant Road (2nd F1) Medium
Dhanmondi Dhaka.
07 BORAK REAL ESTATE (PVT) LTD.

50
 UTC Building, Level-5 Medium
8 Panthapath, Dhaka-1205
08 BUILDING DEVELOPMENT & DESINGN LTD.
36,Topkhana Road (2nd F1) Medium
Dhaka-1000.
09 BUILDING TECHNOLOGIES & IDEAS LTD.
Road-113/A, Plot No.3 & 5 Large
Gulshan, Dhaka-1212
10 CONCORD REAL ESTATE & BUILDING PRODUCT
LTD. Large
8, Mohakhali C/A, Dhaka
11 DOM –INNO DEVELOPMENTS LTD.
House-49, Road -17
Banani, Dhaka.
12 EAST WEST PROPERTY DEVELOPMENT (PVT)LTD. Large
195, Motijheel C/A, (13th F1),Dhaka
13 ESTERN HOUSING LTD.
Islam Chamber (6th F1) Large
125/A Motijheel C/A, Dhaka.
14 GREEN DELTA HOUSING & DEVELOPMENT (PVT)
LTD. Medium
Meherba plaza (11th F1)
33, Topkhana Road, Dhaka-1000.
15 MEGA BUILDERS LTD.
42, Satmosjid Road (2nd F1) Medium
Dhanmondi, Dhaka.
16 NAGAR HOME Medium
227, Lake Road, New DOHS, Mohakhali,
Dhaka-1213
17 NAVANA REAL ESTATE LTD.
House-35, Road-9A (New) Medium
Dhanmondi, Dhaka.
18 PROPERTY DEVELOPMENT LTD.
12, R.K. Mision Road, Large
GPO Box -83, Dhaka1212
19 RUPAYAN HOUSING ESTATE LTD. Medium
72, Mohakhali C/A, Dhaka1212
20 SHELTECH (PVT.) LTD
122/1, Kakrail Road (3rd F1) Large
Dhaka-1000.
21 SUVASTU DEVELOPMETN LTD. Large
69/1, Panthapath, Dhaka.
22 THE STRUCTURAL ENGINEERS LTD.
29/1 West panthapath Large
Dhaka-1205
23 URBAN DESIGN & DEVELOPMENT LTD.
House-68 Road -6/A Medium
Dhanmondi R/A, Dhaka.

51
DEMAND/SUPPLY ANALYSIS (AUTOMATIC BRICKS):

DEMAND ANALYSIS AT MICRO LEVEL:

Bricks are heavy in weight and cannot be transported easily and cheaply to any long
distance. Therefore, bricks and like designed ceramic bricks are sometimes brought in form
distant places

The plant under consideration will be located at Keranigonj and is expected to supply bricks
to various parts of Dhaka, Manikganj and Gazipur District.The demand for bricks depends on
the number on additional brick built houses As per census 1991 total household in Dhaka
and Gazipur District stood at 125,487 of which about 50 & a/ has been assumed to be
pucca houses . on the basis of the growth date of 5% per annum, the projected number of
pucca houses has been estimated and is shown in Table –11

Table –11

ESTIMATED NUMBER OF PUCCA HOUSES

Year No. of Houses

1999 1,017,942
2000 1,053,043
2001 1,088,144
2002 1,123,245
2003 1,158,346
2004 1,193,447
2005 1,228,548

It appears from table -111 that the additional number of pucca houses in Dhaka District will
rise from 35101 Nos. on an average per annum. Assuming that each pucca house requires

52
about 40,000 bricks on an average, the total number of bricks to be required for the
additional pucca houses has been worked out 140 .40 crore.

In addition to the demand for bricks in the private sector, huge demand for bricks comes
from the real estate developers for construction of multistoried apartment/ commercial
complexes. The apartment project was started in late 70’s in Dhaka city. Ispahani Group is
the pioneer in this sector. But in early 80’s with the inception of Eastern housing Ltd. the
business stared flourishing. Now this is a booming sector of the economy. A good number of
real estate developers are now active in this business. During the last decade apartment
project has got tremendous progress. World bank estimated the demand for housing in
urban areas of Dhaka, Chittagong and Khulna for the period 1980 and 2000 as detailed in
Table -111

Table -111

DEMAND FOR HOUSING

Item 1980 2000 Demand for

Housing
Population No.of Population No.of
Houses Houses
Dhaka 35 05 93 17 12
Cittagong 14 02 40 07 05
Khulna 07 01 23 04 03
Total: 56 08 156 28 20

b/ Bangladesh urban Sector Memorandum, May, 1981 world Bank.

The study shows that annually the number of houses required to be built in Dhaka comes to
60,000 units which is likely to be 12 times higher than the number of actual unit constituted
per year. Assuming 40,000 Nos. of Bricks per house the total number of bricks to be
required for apartment project comes to 800, 00 crore pcs.

In addition to the residential household, various Government departments and agencies are
using bricks. Empirical observation reveals that their requirement for bricks would not
exceed 10% of the bricks required by household. Hence the total requirement for brick in
both public and private sector would be as shown in Table-1V.

53
 Table-1V.

TOTAL REQUIREMENT OF BRICKS

Category Demand in million Nos.

Household 1,404
Apartment 8,000
Government 940
10,344

It appears from Table – 1V. that annual requirement of bricks would be about 130 44
million Nos.

EXISTING SUPPLY:

At present the supply of bricks mostly comes from a bricks fields which produce bricks of
inferior quality which are being sold at a higher price. Due to non- existence of adequate
number of automatic brick manufacturing plant in the area, the household users and the
government and private institutional users are to use mostly this grade of brick to meet their
demand. As such the brick fields will not be the competitor of automatic brick plant rather he
automatic brick plant will have comparative advantage over fields in respect of quality and
price.

MARKET SHARE:

To what extent the proposed project will be able to win over the users by way of creating a
market share for the product will depend on the efficiency of the sponsors to handle
appropriate marketing strategies in the form of determination of product pricing, procurement
of raw materials, maintenance of product quality adoption of promotional measures etc. so
long as the sponsors of the project will be able to adopt suitable and appropriate marketing
strategies it will create effective demand for the product.

54
QUALITY:

Maintenance of quality of bricks is considered to be one of the determinants for the

successful marketing of the product. To have better market the quality of the product must
be ensured otherwise it may not be able to compete in the local market.

The users/ consumers for brick generally look forward to the following properties in bricks:
-Proper size and thickness
-Bright colour:
-Smoothness of surface:
-Strength:

To maintain the above qualities, the project is required to be equipped with automatic
machinery to be handled with efficient personnel. Since the project will be equipped with
automatic machinery, it is expected that it will be able to produce quality bricks as per the
requirement /standard of the users/consumers.

OUT PUT PRICING:

Next to product quality, determination of product pricing plays an important role in achieving
the market share for the project. The prices of the product must be competitive to create a
market share in the domestic market. To be competitive, the selling prices of bricks should
be determined in such a way that it remains at per within the prevailing price structure.
Otherwise it may be difficult for the project to sell their output in the domestic market if the
prices are not maintained at a competitive level. The sponsors of the project are also
required to adjust selling prices are not maintained at a competitive level. The sponsors of
the project are also required to adjust selling prices form time to time with the changing
prices of other existing units. Bricks to be produced from automatic machine being lower in
respect of prices the project may able to enjoy a price advantage and to occupy a major
share for his product

55
AVAILABILITY AND PROCUREMENT OF RAW MATERIALS

The basic raw material for use in the plant the sponsors of the project have managed to
procure clay from local sources. Gas is an imported item and will be available form Titas Gas
Transmission and Distribution Company Ltd. The project will not suffer or the production will
not be interrupted /stopped due to shortage of raw materials. The sponsors of the project will
be able to maintain the continuous flow of adequate quantum of raw materials for the project,
so that the production is kept at regular and continuous level.

PROPOSED MARKETING / DISTRIBUTION ARRANGEMENTS:

The products of the project would be supplied to the market through the wholesalers /
Distributors at manufacturer’s cost according to their order / direct sales from factory and
from their own sales center, Dhaka. Retailers would get supply from the wholesale market /
manufacturers sales Center / Factory.

A Schematic diagram of the distribution channel has been shown as follows:

Table – V

Channels of Distribution

Distributors / Agents / Wholesalers Retailers /

Producers Consumers
Sales Centre

PRICE COMPETITIVENESS:

Much attention has been given of the pricing of the products. For such products, product
quality and the price has equal role in penetrating in to the market. Depending on the cost of
raw materials and other inputs required for production, selling price for the products

56
proposed by the unit has been suggested. Special attention has been given to keep the
price at a lower side in comparison to the existing market price.

The proposed price languish the existing Ex-Factory price may be stated in the following

Table – V1.

Table – V1.

PRICING OF THE PRODUCTS

Proposed Ex-Factory
Particulars Ex-Factory Price
Price
a) Solid Bricks (9.75”×4.75” ×2.75” 8.00/Pc
various Types)

SALES PROMOTIONAL ASPECTS :

Sales Promotion in our country are being done through advertising on the nature of
products. For these products advertising has been proposed. Since the sponsors are having
personal contacts in the wholesale market they with depend on personal selling approach as
means of products promotion. To create mass awareness the proposed project is having a
loan to advertise their product rough Radio, Television, Paper, Stickers, Calendars etc. after
going in to commercial production.

CONCLUSION:

A detailed analysis and evaluation, of the existing and projected worldwide market demand,
producers and consumers, multiplicity of usage’s economic competitiveness and
assessments of other relevant factors, considerations and criteria will reveal that the
project’s success potentials is indeed present and that its future is optimistic.

57