Economic Feasibility Study for Pipe Manufacturing Unit i

1. Market Analysis:

Identify the demand for PVC pipes and fittings in the target market. Analyse trends, growth potential, and market size.

Investigate the competition. Understand the market share of existing manufacturers and their pricing strategies.

Identify potential customers and their preferences. Consider both local and international markets if applicable.

2. Technical Assessment:
Assess the technology and equipment required for the manufacturing process.

Determine the capacity of the unit based on market demand and available resources.

Analyse the quality standards and certifications required for the products.

3. Raw Material Availability:

Evaluate the availability and cost of raw materials, particularly PVC resin and other additives.
Identify potential suppliers and their reliability.

4. Cost Analysis:

Prepare a detailed breakdown of capital costs, including land, building, machinery, and equipment.

Estimate operating expenses, including labour, utilities, maintenance, and transportation.

Calculate the total cost of production per unit.

5. Pricing and Revenue Projection:

Determine the pricing strategy based on market conditions, competitors' prices, and your production costs.
Project the revenue based on the estimated sales volume and the selling price.

6. Financial Projections:
Prepare a comprehensive financial model that includes projected income statements, balance sheets, and cash flow statemen
Consider various scenarios, including optimistic, realistic, and conservative, to understand the unit's sensitivity to market fluct

7. Return on Investment (ROI) and Payback Period:

Calculate the expected ROI and payback period based on the financial projections.
Compare the results with industry benchmarks to assess the project's attractiveness.

8. Risk Assessment:
Identify potential risks and challenges that could impact the project's success.
Develop risk mitigation strategies to address these challenges.

9. Legal and Regulatory Considerations:

Research and comply with all necessary permits, licenses, and regulations for setting up a PVC manufacturing unit in your loca

10. Sustainability and Environmental Impact:

Evaluate the environmental impact of the manufacturing process and ensure compliance with sustainability standards.

Consider adopting eco-friendly practices that align with market preferences.

11. Sensitivity Analysis:

Conduct sensitivity analysis to understand how changes in key variables, such as raw material costs or market demand, would

12. Conclusion and Recommendations:

Summarize the findings and make informed recommendations based on the economic feasibility study.
Use the study to decide whether to proceed with the project, adjust, or reconsider the investment altogether.

Summary:
Total
Hours
Physical visits

Administrative cost
Profit
Total Sources
6,125
- Market research agencies, federal economic
3,563 department, etc.
- Government projects, news, etc.

- Online access to different vendors.

938 - Client lists
- Tenders; approved vendor list for clients

- Criteria for enlistment in govt. agencies

1,625 - Consultants and builders interviews
- Regional launched projects

3,750
1,563 - Online research
- Online access to different vendors.
1,250
- Calculations
938 - Online research

2,188
1,563 - Online research
625 - Online access to different vendors.

6,063
- Online research
4,188 - Visits to Government agencies
- Calculations
- Online research.
1,250
- Calculations
625 - Online research

2,188
1,563 - Online research
625 - Online access to different vendors.

4,688
1,563 - Online research
3,125 - Online research

1,563
938 - Online research
625 - Online research

3,125
 1,875 - Online research
1,250 - Online access to different vendors.

3,125
- Corporate lawyer
3,125 - Department of Economics
- Online research

2,188
- Environment specialist
1,563
- Online research
625 - Online research

1,875
1,875 - Online research

-
Free - Online research
Free - Online research

Quantity Remarks
36,875
378 45 days @8 hours a day
21

1,488
5,950
Effort Direct cost Hours Hourly charge

- 7 physical visits
2100 15 50
- E-mails and interviews

- E-mails and online research 0 15 50

- 3 physical visits
900 8 50
- E-mails and calls

- Emails and online research 0 25 50

- E-mails and online research 0 20 50

- E-mails and calls 0 15 50

- Emails and online research 0 25 50

- E-mails and online research 0 10 50

- 7 Physical visits
2100 25 50
- Emails and online research

- E-mails and online research 0 20 50

- E-mails and calls 0 10 50

- Emails and online research 0 25 50

- E-mails and online research 0 10 50

- Emails and online research 0 25 50

- E-mails and online research 0 25 100

- Emails and online research 0 15 50

- E-mails and online research 0 10 50
- Emails and online research 0 15 100
- E-mails and online research 0 10 100

- 3 Physical visit
1500 10 100
- Emails and online research

- 1 Physical visit
500 15 50
- Emails and online research
- E-mails and online research 0 10 50

- Emails and online research 0 15 100

- Emails and online research 0 3 50

- E-mails and online research 0 2 50

378 97.55
Base cost Administrative charge Profit
5% 20%

2850 142.5 570

750 37.5 150

1300 65 260

1250 62.5 250

1000 50 200

750 37.5 150

1250 62.5 250

500 25 100

3350 167.5 670

1000 50 200

500 25 100

1250 62.5 250

500 25 100

1250 62.5 250

2500 125 500

750 37.5 150

500 25 100
 1500 75 300
1000 50 200

2500 125 500

1250 62.5 250

500 25 100

1500 75 300

150 7.5 30
100 5 20

29,750 1,488 5,950

 Comprehensive Economic Feasibility Study for Pipe Manufacturing Unit in UAE
Total days Initial level Detailed submission Remarks
1. Market Analysis 55 10 45

i. Executive Summary - Comprehensive description of the market

i. Executive Summary - Highlighting the description of the market ii. Literature review
ii. List of potential competitors and their products iii. Holistic review including market share, company life cycle position, and
iii. SWOT analysis other in-depth details of major competitor's in the market
Deliverable iv. Pricing list for products iv. PESTEL Analysis
v. Basic evaluation for the scope of different types of pipings and their v. Customer and Competitor Analysis
application. vi. List of current and announced regional major projects
vi. List of current and announced local major projects vii. Oppurtunity Assessment
viii. Key insights

Pages Less than 10 pages 10 - 15 pages

Price 2,500 10,000

2. Technical Assessment 30 15 15

i. Description of current and upcoming technology.

ii. Reviewing technical literature from 5 global vendors
iii. Operational plan detailing resource histogram, including manpower,
i. Brief description on major technology currently utilized machineries, etc.
Deliverable ii. Reviewing technical literature from 3 global vendors iv. Basic architectural plan for layout for the manufacturing plant
iii. Assessment of quality standards and certifications v. Assessment of quality standards and certifications along with
requirements for enlistment in govermental contracts (UAE only)
vi. Provision of utility connection upgrades, backup generators,
warehouses for storage, transportation and other related misc. jobs

Pages Less than 5 pages 5 - 10 pages

Price 2,000 5,500

3. Raw Material Availability 15 10 5
i. Strategic sourcing of raw materials to enhance and maintan smooth
i. Details of resin, and other raw material requirements.
supply chain.
Deliverable ii. Pricing and delivery terms
ii. Preparing a basic supply chain model evaluating different suppliers,
iii. Comparative study for different vendors (pertaining to prices)
distributors and their terms

Pages Less than 5 pages 5 - 10 pages

Price 2,000 5,000

4. Cost Analysis 25 15 10

i. Cost analysis of land, different three locations, their respective

i. Cost analysis pertaining to capital costs (equipment, machinery, building
transportation, storage and other allied costs
and other installations) for one location
Deliverable ii. Detailed calculations for operational expense including labour, utilities,
ii. Basic calculations for operational expense
inventory storages and other allied costs.
iii. Cost of prodution per unit
iii. Cost of production per unit

Pages 2 pages 3 - 5 pages

Price 2,000 4,000

5. Pricing and Revenue Projection 25 10 15
i. Pricing strategy based on production costs, market conditions,
i. Pricing strategy based on production cost. competitor's pricing models
Deliverable
ii. Straight line revenue projections ii. Revenue projections based on estimated volume of sales, selling price,
and different variations

Pages 2 pages 3 - 5 pages

Price 2,000 3,500

6. Financial Projections 25 10 15
i. Comprehensive dynamic financial model
i. Static spreadsheet model with essential statements
Deliverable ii. Projected financial statements for 5 years
ii. Conservative scenario only
iii. Optimistic, realistic and conservative scenarios

Pages NA NA

Price 2,500 4,500

7. Return on Investment (ROI) and Payback Period 15 5 10

i. ROI is calculated based on suitable depreciation methods for different

i. ROI is calculated on straight line depreciation method and prevailing
assets, projected discount rates are taken into consideration.
Deliverable discount is taken across the board.
ii. NPV and IRR are used to gauge project feasibility
ii. WACC is not considered.
iii. WACC is considered in calculations

Pages NA NA

Price 2,500 3,500

8. Risk Assessment 25 - 25
i. Identification, assessment and evaluation of potential risks and their
Deliverable x possible impacts
ii. Suggestion of control measures to minimize and hedge risks

Pages x Less than 5 pages

Price - 4,000
9. Legal and Regulatory Considerations 30 - 30

i. Comprehensive walk through on compliance of necessary permits,

Deliverable x
licenses, and regulations required for the project.

Pages x Less than 5 pages

Price - 5,000
10. Sustainability and Environmental Impact 30 - 30
Deliverable x i. Environmental impact analysis (EIA) report

Pages x NA
These are facilitation charges only - actual charges shall be in
Price - 1,500*
addition as recommended by relevant 3rd party consultant.*
11. Sensitivity Analysis 10 - 10
i. Dynamic spreadsheet providing a sensitivity analysis showing impact of
Deliverable x
changes in key variables on project viability
Pages x NA

Price - 4,000
11. Conclusion and Recommendations 10 5 5

Deliverable i. Conclusion and recommendations i. Conclusion and recommendations

Price Free Free

Summary: Quantity Remarks

Total AED15,500 AED49,000
Effective days 60 120