Strictly private & conditional

Project Profile
Dot-Connect Hitech Cables Limited
Lynx Tech Industries
 Executive Summar

LYNX TECH INDUSTRIES is one of the leading Information Technology base sole
proprietorship company in Bangladesh since 2015. We mainly import networking brand
products. Can define us as market leader for Fiber optic cable and UTP Lan cable importer. We
are distributor & collaboration for Usha Martin, Uniflex, ADP lan cables. But we also well-
known for our own OEM brand Dotconnect cables. With a longtime experience in IT sector for
contribute in vision Digital Bangladesh and represent to the world MADE IN BANGLADESH
HITECH product we are going to establish Dotconnect high-tech cables LTD . Initially it will
manufacture central loose tube fiber optical cables for digital Ethernet communication sector and
later grew with various products like processed all types of networking cables, and ICT related
products

Product and market:

This project will enable Dot-Connect to enter into the market of manufacturing of optical fiber
cables, communication cables which are currently entirely import dependant. Communication
Cable industry is correlated with power industry growth. Currently Bangladesh is experiencing
massive expansion in ICT sector and power sector as it is one of the most priority sectors by
government for development of the nation. In parallel of power growth the transmission and
distribution also need to be upgraded.
Uses of Fiber Optic Cables:

Fiber optic cables find many uses in a wide variety of industries and applications. Some uses of
fiber optic cables are described below:

·         Medical

It is used as light guides, imaging tools and also as lasers for surgeries.

·         Defense/Government

It is used as hydrophones for seismic and sonar purposes, as wiring in aircraft, submarines and
other vehicles and as well as for field networking.

·         Telecommunications

Fiber is laid and used for transmitting and receiving purposes in telco.

·         Networking

It can be used to connect users and servers in different network settings and can also help
increase the speed and accuracy of data transmission. So the biggest user is Internet service
provider.

·         Industrial/Commercial

It is also used for imaging in difficult to reach areas viz a viz as wiring where EMI is an issue, or
as a sensory device used to make temperature, pressure and other measurements, as wiring in
automobiles and in industrial settings.

·         Broadcast/CATV

It is no news that broadcast and cable companies are making use of fiber optic cables for wiring
CATV, HDTV, internet, video on-demand and other applications.

Fiber optic cables can be used for lighting as well as imaging and sensors to measure and
monitor a vast array of variables. They can also be used in research and development as well as
testing across all the above-mentioned industries.

 
 Project Overview

The project:

The factory will be situated at Hi-Tech Park at Gazipur, Dhaka. The factory will be well
equipped with modern machinery and equipment. The company will have group of
qualified and experienced manpower who maintains the quality of the products. For its
product quality, the company has earned fame in the country and its product has been
approved and being used by all government authorities including BTRC, Autonomous
bodies, Private sector, Industrial and Apartment project and individuals for the purpose of
all types of communication sector in the area of internet, intranet and IT communication.
To meet up increasing demand in the market, the company has set up 3 lines for
producing central loose tube fiber optical cables for digital Ethernet communication
sector. The company will be marketing its products through sales center. Besides the sell
center, the company will be marketing its products through selected traders in all
districts. The company has a group of experienced personal in its marketing & technical
department who are well equipped to render service to its customers.
The company will obtain certificate as an ISO- 9002 certified company for his quality
management system and inter alia. Keeping its commitment to ensure gradual
improvement of its quality products through research and development, prompt, customer
service, the company later under take ISO- 9001: 2008 certificate. The company will be
ranked as class one amongst world leading all types of communication wires & cables
manufacturing companies.

 Dot-connect intends to produce with initially capacity from 120000mtr per day. Since
industrialization in 90’s ICT sector has been major concern of the government and
recently they have been taken a long term plan Digital Bangladesh. With this view the
existing/ potential demand, the market size over BDT.5000 million which is fully served
by international suppliers. Dotconnect intends to take the advantage of duty deferential
(25% duty on end product, compared to 5% duty on raw material). This is to note that all
ready. Our market assessment.
  Long track record
 Better price due to duty advantage
 Faster delivery
 Scope for post delivery service
 ITU & ISO 9000 sertification.

The entire production package which client intends to import is in line with the operation
setup and the machineries will be imported from Chaina,Japan,India and from the world’s
top brands.

Key project information is summarized below:

Project Company : Dotconnect Hightech Cable Industries LTD

Date of Incorporation :
Registration Number :
Legal Status : Private Limited Company
Registered Address :
Trade License Number & Issuer :
TIN Number :
Type of Business : All types of communication cables manufacturer.
Authorized Capital : 1500,00,000 Core
Paid up Capital : 100,00,000 Core
Project Location : Hi-Tech Park Gazipur or near Dhaka
Number of Employee : 40-50

Project product line:

Products (Yearly) Unit Year- Year- Year-3 Year-4 Year-5 Year-6

 1 2
Wires & Cables K.M 22000 25000 29000 34000 40000 -----

Ownership Structure and Director Information of the project:

Ownership structure:

Name of the sponsor Position Present shareholder % of share

Total 100%

Director’s information:

Qualification/Previous Years in Year of

Title Name
Experience company Industry

Project cost and financing plan:

The break-up of the project cost components to be funded by debt and equity as per following
schedule are as follows:
 Duty &
Investment Head Equity Debt
Cost Installation Total Cost
(USD) Portion Portion
Cost
Land -
Factory building & civil
165,00,000 - 165,00,000
works,power, genarator
Machineries 320,00,000 - 320,00,000
Office equipments 10,00,000 - 10,00,000
Furniture & fixture 5,00,000 - 5,00,000
Transport & vehicles 25,00,000 - 25,00,000
Preliminary expenses/
20,00,000 - 20,00,000
consaltancy/ Installation
Working capital 200,00,000 - 200,00,000
Sub Total 745,00,000 - 745,00,000
IDCP -
Total 745,00,000 - 745,00,000
Debt- Equity 30% 70%

Financial closure timeline:

Considering the tight implementation timeline the syndication process has the flowing indicative
time schedule:

Milestones Timeline in 1 2 3 4 5
fortnight
IM circulation to the prospective Lenders/Site visit
L/C Opening for machinery import
Approval from the lenders
Finalization of loan & security documents
Required approvals from BOI and other authorities
Signing of loan and security documents

Project Implementation Schedule & Current Status:

Currently the project implementation status is as flows:

Land:

Building & civil works:

Technical Design/ Plant Layout:

Machineries and equipment:

Plant & machineries price is under negotiation and at final stage. Once the financial closure is
achieved the L/C will be issued and advance against machineries will be paid.

Given the fact that manufacturing of the cable is a sophisticated process, the quality of machines
and the technologies are most important aspects of the process. Dot-connect has assessed the
market and have planned to deploy the best machines which will assure them steady order base.
The machineries will be imported from chaina and from the world’s top brands.

Utility connection and usage:

The application for load from power Distribution Company will be made upon having lease
approval from Hi-Tech Park as the requirements. Moreover there is also existing backup
generator.

Auxiliary service:

Water recirculation and cleaning system: Since the project will be established at Hi-Tech Park
at gazipur the said facilities will be available. However, on the need management of the project
will take steps for extra need.

Gas usage: Gas is Hi-Tech Park’s arrangement.

Delivery of finished goods and transportation: Delivery van truck, trailers, cars, microbus,
firefighting truck, ambulance, weighing scale, fork lift etc will be procured for the project.

Fire fighting system: Adequate fire fighting system is in place and new capacity system will be
incorporated with the expanded facilities.

Other facilities: Laboratory and plant offices, engineering offices, ancillary facilities including,
store, change room, canteen and prayer room, toilet blocks and internal roads, drainage etc. will
also be built in the factory premises.

Technical consultant for the project:

 is looking after implementation of the whole project. He has vast experience in cable industry
and has implementation/ operation experience to set up projects. The production outline is
designed under the same standard of aboard.

Production Process and Technical Issues:

Process Flow of Production:

Input Bare Input-HDPE & PP,

Fiber Semiconductor

Wire Drawing

Stringing

Instating

Insulation

Cooling

scream

Core- Laid-up

core Serene

Lead- Extrusion AL-SH- Extension

Tension

Outer-Sheath

Graphing &
coding

Testing
Pay off
 Raw materials and consumables:

Main raw material for communication cable are Bare fiber, HDPE, PBT, FRP, Gelly and
wooden bobine which are supplied by different vendors. The groups have strong
backward linkage. Import duty on raw material is 25% (approx.) Hence only through
integration, Dotconnect can save up to 25% in the raw material sourcing leg.

Buyer of finished goods:

Dotconnect products will be sell to institutional as well as consumer buyer. For its
product quality, the company will earn fame in the country and its product will be
approved and will be being used by Government authorities, Autonomous bodies, Private
sector, Industrial and Apartment project and individuals. The company will market its
product through different sales center. Besides the sales center, the company will market
its products through selected Traders in all districts. The company will have a group of
experienced personnel in its marketing & technical department who are well equipped to
render service to its customers. Currently in Bangladesh there is huge demand supply gap
in ICT communication sector due to commercial import duty increase.

Machinery list:

A. List of Machines to be imported- Fiber optic cable (Figurers in USD)

Sl Country
Name of Machine Qty Price Total Cost
No. of origin
1 12-reel optical fiber pay-off Finland 1 Set 14000 14000
2 Static Eliminating Unit With ‘’ 1 Set 1,200 1,200
Support
3 High Output Jelly Filling Unit 1 Set 6200 6200
4 Extruder With Screw for PBT England 1 Set 21,500 21,500
Extrusion
5 Drying Hopper 1 Set 1,300 1,300
6 Auto Vacuum Loader ‘’ 1 Set 2,000 2,000
7 Dual –Hopper Color ‘’ 1 Set 2400 2400
Masterbatch Dosing Unit
8 Extrusion Crosshead ‘’ 1 Set 9000 9000
9 Extrusion Tooling ‘’ 1 Set 400 400
10 Cooling System Malaysia 1 Set 2500 2500
11 Industrial Chiller Sweden 1 Set 7400 7400
12 Dual-Wheel Mid-span Capstan Switzerla 3 Set 2800 8400
– controlling the excess length nd
13 Tension Control Dancer Japan 1 Set 6,000 6000
14 Dual Axis Laser Scanning Japan 1 Set 4,800 4800
Diameter Gauge
15 Single-reel Capstan Italy 1 Set 2600 2600
16 Dancer for Take-up Europe 1 Set 600 600
17 Semi-auto Dual-reel Take-up Germany 1 Set 7000 7000
18 Electrical Control System Finland 1 Set 14000 14000
(Industrial Computer, Profibus,
ELO-Tyco Touch Screen)
19 Interconnection Cables Finland 1 Set 3000 3000
(excluding inlet main power
cable)
20 Optical fiber coloring and Spain 1 Set 25000 25000
rewinding machine and
production line
21 Optical Fiber SZ Strander USA 1 Set 2000 2000
22 Barrel and Screw USA 1 Set 6500 6500
23 Reduction Gearbox 1 Set 6500 6500
24 Extrusion Crosshead, fix 1 Set 1500 1500
centering
25 Extrusion Tooling 1 Set 150 150
26 New Dual Axis CCD Diameter 1 Set 4500 4500
Gauge With Lump & Neck
function
27 Dual-axis Diameter Gauge 1 Set 3100 3100
28 Lump/Neck-down Detector 1 Set 3500 3500
29 Encoder of TFO-200 Tension 1 Set 1600 1600
Control Dancer and Fiber Pay-
off for setting EFL and auto
data
30 Air-Condition for PLC Cabinet 1 Set 1100 1100
31 UPS for PLC, Computer, Drives 1 Set 700 700
and Control System (APC)
32 Electrical wiring system 9700 9700
33 Arm Type Single-Wheel Pay- 1 Set 7000 7000
off
35 Payoff Tension Control Dancer 1 Set 900 900
36 Swing Arm Type Single-Wheel 3 Set 3500 10500
Pay-off for FRP
39 High Output Main Extruder for 1 Set 21000 21000
PE Extrusion
40 Extra screw for the extrusion of 1 Set 2000 2000
LSZH, HFFR
41 Gearbox with motorized oil 1 Set 8500 8500
cooling pump
42 Extrusion crosshead 1 Set 6000 6000
45 Auto Vacuum Loader 1 Set 1500 1500
46 Drying Hopper 1 Set 1500 1500
47 Cooling System with Drying 1 Set 3500 3500
System
48 Water Chiller 1 Set 6000 6000
49 Water tank 1 Set 400 400
50 Single Axis Laser Scanning 1 Set 2400 2400
Diameter Gauge
51 AC Sparker Tester Online 1 Set 500 500
52 Dual Driven Belt Cater Pillar 1 Set 12000 12000
53 Takeup Tension Control Dancer 1 Set 1755 1755
54 Swing Arm Type Single-Wheel 1 Set 4500 4500
Take-up
55 Electrical control system – PLC 1 Set 16000 16000
S7-300, Industrial computer,
17” touch screen
59 Inkjet Printer (Marken Imje) 1 Set 3500 3500
64 Air-Condition for PLC Cabinet 1 Set 800 800
65 UPS for PLC, Computer, Drives 1 Set 500 500
and Control System (APC)
Total 2,90,905 2,90,905
Import duty,cnf,handaling 9% 26181 26181
Sub Total 317086 317086
According to current exchange rate 32,342,772
102*317086 = BDT

B. Local Machineries and equipment’s (Figures in BDT Actual)

Sl.No Name of Machine Qty Price Installation Total

Cost
1 Generator 400 KVA 1 Set 3500000 100000 3600000
2 Water treatment plant 1000 Ltr 1 Set 220000 30000 250000
per hour
3 Substation 1 set 16,00,000 100000 1700000
Sub Total 53,20,000 2,30,000 55,50,000
Product cost break down:
We will produce 2,4,6,12,24,48 core fiber in different diameter based on customer
requirement. 4 core 6.5mm dia is the most demandable so give costing based on 4 fiber
core. Production capacity 2000 km month.

Item name Quantity/km Price/unit Total price Recycle mix

Kg $ $
HDPE 26 1.40 36.4 .94 24.44
PBT 1.80 1.80 3.24 3.24
GELL 1.10 2.20 2.42 2.42
FRP 2 6.50 13 13
BR FIBER 4 4.50 18 18

73.03 61.1

NON BONDED Comercial

FOB price Usd to bdt 102 7449.06 6232

Duty tax cnf 28% 2085 2085
Overhead 700 700
electricity 360 360
Spol drum 450 450
Waste 1% 74.50 1.3% 96

Price 1km 11118.56 9923

1mtr 11.11 9.92

BONDED

FOB price Usd to bdt 102 7449.06 6232

Duty tax cnf 16% 1191.85 1191.85
Overhead 700 700
electricity 360 360
Spol drum 450 450
Waste 1% 74.50 1.3% 96

Price 1km 10225.40 9029.85

1mtr 10.22 9.02
Based on current local market pricing gross profit expected after tax 53-56% net margin will 21-
25% individual daily base production . Net margin will variable big corporate deal and
government tender.

We also get incentive and tax benefit from government from international export.

Product Technical specification :

Great Investment Potential In Bangladesh ICT Sector:

Employment For 2 Million People By 2021.
The largest ICT event of Bangladesh, Digital World 2016 was inaugurated today at ICCB by
Prime Minister Sheikh Hasina. “Ministerial Conference” was held in the presence of the ICT
ministers from 8 countries and Sajeeb Wazed Joy, the advisor to the Government of Bangladesh
on information and communication technology. In the beginning of the seminar, Joy presented
the keynotes on the success of ICT sector in Bangladesh and the potential of investment in this
sector. He also asked all to invest in the prospective ICT sector of Bangladesh.
In the keynote presentation, ICT adviser Wajed Joy stated, by 2021, Bangladesh shall have over
2 million people working in the ICT sector. By this time, the foreign income in this sector is
expected to exceed 5 billion dollars.

Optical Fiber Cable

In Cozlink.COM, Optical Fiber Cable is applied to direct buried/aerial/duct and access

network, fiber to the Home.

Indoor Fiber Optic Cable

FTTX Optical Cable Products Series

Distribution Optical Cable Product Series

 Jumper Optical Cable Products

Outdoor Optical Fiber Cable

Duct and Non-Self-Supporting Aerial

All-Dielectric Enhanced Optical Cable

Self-Supporting Aerial Optical Cable

Lightweight Self-Supporting Aerial

Steel Wire Armored Optical Cable

Our Business Diary :

Our popular UTP cable category 5 & 6.

Dotconnect Fiber OEM production in China

Dotconnect Fiber inland sea port Bangladesh

Dotconnect FCL shipment

 Shenzhen trade show.

Our CATV & FTTH product line

With Thanks

Suhan Ahmed

Proprietor & CEO

Lynx Tech Industries