2nd Draft
PRE-FESIBILITY STUDY
VERMICOMPOSTING PRODUCTION, PACKAGING & MARKETING
PAKISTAN AGRICULTURAL RESEARCH COUNCIL ISLAMABAD
MINISTRY OF NATIONAL FOOD SECURITY AND RESEARCH
Government of Pakistan
www.parc.gov.pk
1
1. DISCLAIMER ................................................................................................................................... 4
2. PURPOSE OF THE DOCUMENT ................................................................................................... 4
3. INTRODUCTION TO SCHEME ..................................................................................................... 4
4. EXECUTIVE SUMMARY ............................................................................................................... 5
5. BRIEF DESCRIPTION OF PROJECT ................................................................................................ 6
6. CRITICAL FACTORS ...................................................................................................................... 8
7. INSTALLED AND OPERATIONAL CAPACITIES ...................................................................... 8
8. GEOGHRAPHICAL POTENTIAL FOR INVESTMENT ............................................................... 8
9. POTENTIAL TARGET MARKET................................................................................................... 9
10. PRODUCTION PROCESS FLOW .................................................................................................... 9
11. PROJECT COST SUMMARY ......................................................................................................... 11
11.1 Project Economics .......................................................................................................................... 11
11.2 Project Financing ............................................................................................................................ 11
11.3 Project Cost ..................................................................................................................................... 11
11.4 Machinery and Equipment .............................................................................................................. 12
11.5 Furniture and Fixture ................................................................................................................... 12
11.6 One Time Earthworm Cost .......................................................................................................... 12
11.7 Raw Material Requirements ........................................................................................................... 13
11.8 Human Resource Requirement ....................................................................................................... 13
11.9 Overhead expenses for 6 months .................................................................................................... 13
11.10 Space Requirement ................................................................................................................... 13
11.11 Revenue Generation ................................................................................................................. 14
12. CONTACTS – SUPPLIERS, EXPERTS / CONSULTANTS ......................................................... 14
13. Annexure ...................................................................................................................................... 16
14. Key Assumption........................................................................................................................... 18
2
Table
No.
1
2
3
4
5
6
7
8
9
10
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List of Tables
Project Economics
Project financing
Total Project Cost
Machinery & Equipment
Furniture and fixture
One Time Earthworm Cost
Raw Material Cost
Human Resource
Overheads Expenses
Space Requirement
Revenue of the Project
Pages
11
11
11
12
12
12
13
13
13
14
14
3
1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a general idea and
information on the subject. Although, the material included in this document is based on data/
information generated from experiments and field testing by a team of relevant scientists;
however, it is based upon certain assumptions which may differ from case to case. The contained
information may vary due to any change in any of the concerned factors, and the actual results
may differ accordingly from the presented information. The PARC and its employees do not
assume any liability for any financial or other loss resulting from this memorandum in
consequence of under taking this activity. The prospective user of this memorandum is
encouraged to contact qualified consultant/technical expert, especially designated focal person(s)
of this enterprise for reaching to an informed decision.
2. PURPOSE OF THE DOCUMENT
The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in
project identification for investment. The project pre-feasibility may form the basis of an
important investment decision and in order to serve this objective, the document/ study covers
various aspects of project concept development, start-up, and production, marketing, finance and
business management. The document also provides sectoral information, brief on government
policies and international scenario, which have some bearing on the project itself. The purpose of
this document is to facilitate potential investors in Vermicompost Production, Packaging &
Marketing business by providing them a holistic as well as a micro view of business with the
hope that such information as provided herein will help the potential investors in crucial
investment decisions. The need to come up with pre-feasibility reports for undocumented or
minimally documented sectors attains greater imminence as the research that precedes such
reports reveal certain thumbs of rules; best practices developed by existing enterprises by trial
and error, and certain industrial norms that become a guiding source regarding various aspects of
business set-up and it’s successful management. Apart from carefully studying the whole
document one must consider critical aspects provided later on, which form basis of any
Investment Decision.
3. INTRODUCTION TO SCHEME
Prime Minister’s Youth Business Loan Programme, for young entrepreneurs, with an allocated
budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide subsidized financing at 8%
mark-up per annum for one hundred thousand (100,000)beneficiaries, through designated
financial institutions, initially through National Bank of Pakistan (NBP) and First Women Bank
Ltd. (FWBL). Loans from Rs. 0.1 million to Rs. 2.0 million with tenure up to 8 years inclusive of
1 year grace period, and a debt: equity of 90: 10 will be disbursed to SME beneficiaries across
Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit, Baltistan, Azad
Jammu & Kashmir and Federally Administered Tribal Areas (FATA).
4
4. EXECUTIVE SUMMARY
Vermicomposting is as a bio-oxidative process in which earthworms interact intensively with
microorganisms and other fauna within the decomposer community, accelerating the
stabilization of organic matter and modifying its physical and biochemical properties. The action
of the earthworms in this process is physical or mechanical. Physical participation in degrading
organic substrates results in fragmentation, thereby increasing the surface area of action, turnover
and aeration. On the other hand, biochemical changes in the degradation of organic matter are
carried out by microorganisms through enzymatic digestion, enrichment by nitrogen excrement
and transport of inorganic and organic materials.
The selection of suitable earthworm species for Vermicomposting is an important step of the
overall process. Out of the thousands of species of earthworms, only a few are suitable for
vermicomposting of organic wastes. The epigeic species of earthworms are widely used for
vermicomposting of different organic wastes. Eisenia fetida is the most widely used earthworm
species for vermicomposting due to its well-established potential for the vermicomposting of
compostable organic materials such as agricultural wastes and animal manures.
In Pakistan, huge amount of organic wastes, e.g., municipal solid waste, cattle manure and
poultry manure etc., are available for composting as a substitute for chemical fertilizers.
Animal wastes are important resources that are used to supplement organic matters and improve
soil conditions. Average-size cattle produce 4 to 6 tonnes of fresh dung per year. In Pakistan and
some other developing nations, a significant fraction of cattle dung is used as cooking and
heating fuel after making its bricks (Figure 1) However, burning of dung cakes causes serious
health and environmental problems. The burning of animal dung for cooking results in higher
indoor particle concentrations. Smoke from animal dung-based cooking stoves contains carbon
monoxide, fine particulates, nitrogen dioxide and hydrocarbons, all at concentrations far in
excess of what is considered unsafe in outdoor air. Long-term exposure to airborne particulate
matter has been associated with increased rates of acute respiratory infections, chronic
obstructive lung disease and cancer (USEPA 2008). On the other hand, once the dung is burnt,
the nutrients present in it are lost forever. Another important use of cattle dung is its conversion
into compost to be used as manure in agricultural fields. For this purpose, cattle dung is heaped
in the open and allowed to degrade naturally without any amendments. This process takes 6 to 9
months, and still dung is not stabilized which may attract termites in the fields after its
application. Further, this method is a major cause of odor and fly problems in rural areas.
Vermicomposting merely controls the conditions so that materials decompose faster.
Vermicomposting and its use offers several potential benefits including improved manure
handling, enhanced soil tilth and fertility, and reduced environmental risk. With good
management, it produces a minimum of odors. It is quite different from the original materials
that it was derived from. It is free of unpleasant odors, is easy to handle, and can be stored for
long time. It has a variety of uses which make it a valuable and saleable product. For all of these
reasons, vermicomposting is attracting the attention of farmers, waste-generators, public
officials, and environmentalists. When applied to cropland, compost adds organic matter,
5
improves soil structure, reduces fertilizer requirements, and reduces the potential for soil erosion.
One of the most attractive features of vermicomposting is that there is a market for the product.
Potential buyers include home gardeners, landscapers, vegetable farmers, turf growers, operators
of golf courses, and ornamental crop growers. The price of compost varies considerably because
it is often viewed as a waste product. A bulk vermicompost price ranges Rs. 10 -20 per kg and
average about Rs.15 per kg. The price depends on the local market, compost quality, and the raw
materials used.
The project of vermicompost production, processing, packaging and marketing envisages the
farming of collection of raw material, composting followed by packaging and then distribution or
supply directly to the farmers, commercial nursery growers market. The proposed business will
start with 500 T/annum initially and can be up-scaled according to the availability of raw
material.
Composting production units are proposed to be located in areas where enough (500 tonnes)
degrade waste is available in urban and rural areas. The composting can be done in all zones of
Pakistan and this technology has huge potential in intensive farming agriculture areas of the
country. Installed capacity 500 T/cycle, initial utilization is 50 %. In first year total production of
5000 bags each containing 25 kg of compost for one cycle. Total Cost Estimate is Rs. 1,780,000
for first year with fixed investment Rs. 1,210,000 and working capital Rs. 570,000. From second
year two cycles can be produced and 10000 bags will be obtained from two cycles. Given the
cost assumptions IRR and payback are 87 % and 2.69 years respectively. Whereas NPV of this
project is 19,323,524.
The most critical considerations or factors for success of the project are;
1. Production of quality product according to the international standards and for marketing
needs registration with Government of Punjab.
2. Networking of compost suppliers/dealers from all over the country would be necessary to
meet any requirement or shortfall.
5. BRIEF DESCRIPTION OF PROJECT
Organic solid waste management by employing earthworms has multifarious role to play in a
developing country like Pakistan. Hundreds of tonnes of biodegradable organic wastes are being
generated in cities and towns in the country, creating disposal problems. Firstly, this waste can
be converted into valuable compost by applying vermicomposting technology. This approach
reduces pollution and provides a valuable substitute for chemical fertilizers. Secondly, the
manure is produced in a shorter duration of time of 16 weeks and is fully matured, homogenous
matter. Thirdly, the programme provides job opportunities for the unskilled labor force. Finally,
it is the best way of guarding the environment. Vermicompost (compost produced by the activity
of selected species of earthworms) has been adjudged as the best source of organic amendments
to soil. Using vermicompost can fulfill the requirements for organically grown products.
6
This process is profitable at any scale of operation, provided proper process parameters are
maintained. Municipal Corporations and Councils are encouraging entrepreneurs by providing
required land and the waste matter from all sources free of cost near the waste dumping sites.
This scheme gives details of making compost from bio-degradable organic waste using vermincastings. It is assumed that the land and the waste material are free of cost to the entrepreneurs.
This unit will be profitable even if the land is taken on lease.
Prospect for Vermicomposting to be used for soil amendment/ conditioner and potting material
for commercial nurseries and horticultural crops (vegetables growing in tunnel farming). All
processing facility will be at one place
Technology: Vermicomposting production and processing required tools and
equipments/machinery for collection (loading & unloading), pre-decomposition, shredding,
mixing, drying, sieving and packaging. The proposed unit requires basic composting equipments
(list attached). Working hours per day 8 hours. Working days in a year 360 days.
Project components:
There are four key steps during the typical composting process. These include: feedstock preprocessing where the feedstock is treated and blended to achieve a mix with desired overall
characteristics, the active composting important for pathogen kill, the curing necessary to obtain
a mature and stable product, and the post-processing required to meet quality criteria for sale and
distribution of the product.
Required compost plant facilities
Compost plants mainly consist of the following facilities;
(a) Receiving area & Material Recovery Facility (MRF)
(b) Windrow decomposing facility
(c) Compost maturating facility
(d) Sieving and storage facility
(e) Landfill site for residue
(f) Site office
(g) Workers restroom
(h) Security facility
(i) Leachate treatment facility
(j) Fence
(k) Gate
(l) Buffer zone
(m) Access road
Production Capacity per cycle for first year




Plant capacity
Capacity utilization
Annual sales of finished product
Value/bag Rs.
= 5000 bags per cycle
= 50 %
= 10000 bags (Per bag 25 kg)
= 375/bag
7
Location: Suburbs of cities and villages near dumping site can be ideal locations for practice of
composting on a small to medium scale, from the point of view of availability of raw material
and marketing of the produce. Unit may also be located in areas with concentration of fruits and
vegetables markets. The proposed business can be done in all villages, cities / Towns of Pakistan.
Target Market: In addition to local markets enormous export market to other countries.
Wholesale customers include:
 Farmers
 Gardeners
 Nurseries
 Landscapers
 People with related businesses (who need worms, compost or castings)
 Businesses who need systems designed
 Schools, Collage- private, public and charter
Employment Generation: The proposed project will provide direct employment to 10 people.
Financial analysis shows the unit shall be profitable from the very first year of operation.
6. CRITICAL FACTORS
Individuals considering entering the composting industry must carefully consider the following
factors:
1. Networking with the farmers of livestock (sheep, goat, cattle and poultry) union and
Municipal Corporation for availability of raw material.
2. Consistent supply of raw material and quality/quantity of compost at production facility.
3. Availability of skilled manpower
4. Wholesaler contracts
5. Network of dealers and direct access to the farmers, NGOs and community organization
and commercial nursery growers in the country.
7. INSTALLED AND OPERATIONAL CAPACITIES
For this project it is assumed that the production will start from plant production capacity of 500
T/cycle and its utilization capacity of 50%. The initial total production would be 125 tons per
cycle based on the above mentioned assumptions.
8. GEOGHRAPHICAL POTENTIAL FOR INVESTMENT
Vermicomposting is considered to be a small and medium scale business in Pakistan. There are
three types of products known in the market, one is vermicompost (soil amendment/
conditioner), vermiwash liquid biofertilizer (foliar spary) and wormicultures (Worms) can be
sold as live product. Following areas have been identified where significant opportunities for
Vermicomposting:
 Federal Area/ tertiary
 FATA, Gilgit Baltistan
8
 Azad Jummu & Kashmir (Muzarabad, Mirpur, Rawalakot etc.)
 Punjab
 Khyber Pakhtonkhuwa
 Sindh
9. POTENTIAL TARGET MARKET
Organic solid waste management by employing earthworms has multifarious role to play in a
developing country like Pakistan. Hundreds of tonnes of biodegradable organic wastes are being
generated in cities and towns in the country, creating disposal problems. This waste can be
converted into valuable compost by applying Vermicomposting technology. While looking at
major bio-products markets and demand, all major cities such as Karachi, Lahore, Faisalabad and
Rawalpindi etc. are attractive local markets. It may be exported to the other countries Middle
East, Saudi Arabia, Turkey, African countries and Russian States etc. Vermicompost can be
preparation with any types of biodegradable wastes e.g:
1. Crop residues.
2. Weed biomass
3. Vegetable waste
4. Leaf litter
5. Hotel refuse
6. Waste from agro-industries
7. Biodegradable portion of urban and rural wastes
10. PRODUCTION PROCESS FLOW
Phase 1 Processing involving collection of wastes, shredding, mechanical separation of the metal,
glass and ceramics and storage of organic wastes.
Phase 2 Pre digestion of organic waste for twenty days by heaping the material along with cattle
dung slurry. This process partially digests the material and fit for earthworm
consumption. Cattle dung and biogas slurry may be used after drying. Wet dung should
not be used for vermicompost production.
Phase 3 Preparation of earthworm bed. A concrete base is required to put the waste for
vermicompost preparation. Loose soil will allow the worms to go into soil and also while
watering; all the dissolvable nutrients go into the soil along with water.
Phase 4 Collection of earthworm after vermicompost collection. Sieving the composted material
to separate fully composted material. The partially composted material will be again put
into vermicompost bed.
Phase 5 Storing the vermicompost in proper place to maintain moisture and allow the beneficial
microorganisms to grow.
9
Phases of vermicomposting
Vermicompost is nothing but the excreta of earthworms, which is rich in humus and nutrients.
We can rear earthworms artificially in a brick tank or near the stem / trunk of trees (especially
horticultural trees). By feeding these earthworms with biomass and watching properly the food
(bio-mass) of earthworms, we can produce the required quantities of vermicompost.
Material flow for the conventional composting process
10
11. PROJECT COST SUMMARY
A detailed financial model has been developed to analyze the commercial viability of
Vermicomposting, Packaging & Marketing under the ‘Prime Minister’s Youth Business Loan’
program. Various cost and revenue related assumptions along with results of the analysis are
outlined in this section.
11.1 Project Economics
All the figures in this financial model have been calculated for vermin-compost annual
production of 5000 bags of vermin-compost each containing 25 kgs. The following table shows
internal rate of return and payback period.
Table 1 - Project Economics
Description
Details
Internal Rate of Return (IRR)
87 %
Payback Period (yrs)
1.72
Net Present Value (NPV)
Rs. 19,323,523.42
Returns on the scheme and its profitability are highly dependent on quality of vermin-compost
suitable location, good farming practices and availability of trained staff. The project will not be
able to cover the potential demand of consumers and recover payments, if these factors are not
efficiently managed and will also lead to increased operating cost.
11.2 Project Financing
Following table provides details of the equity required and variables related to bank loan:
Table 2 - Project Financing
Description
Details
Total Equity (10%)
Rs.178,000
Bank Loan (90 %)
Rs. 1,602,000
Markup to the Borrower (%age/annum)
8%
Tenure of the Loan (Years)
08
Grace Period (Years)
01
11.3 Project Cost
Following is the total project cost proposed for the business of vermin compost.
Table 3: Project Investment
Capital Investment
Amount Rs.
Capital Cost (one time investment)
1,210,000
Total working capital
570,000
Total Project cost
1,780,000
11
11.4 Machinery and Equipment
Following table provides list of machinery and equipment required for production and packaging
of vermin-compost.
Table 4: Machinery and Equipment
Description
Quantity
Amount Rs.
Power driven chaff cutter
1
30,000
Weighing Machine Platform type
1
10,000
Water Pump and pipes for water
1+3
140,000
sprinkling
Tools & Implements
4
20,000
Pre-operative Expenses (installation and
10,000
operational cost of machines)
Total
210,000
11.5 Furniture and Fixture
Following table provides list of Furniture and Fixture required:
Table 5: Furniture & Fixture and its cost
Description
Unit
Price
50,000/-
Furniture and Fixture
Total
50,000/50,000/-
11.6 One Time Earthworm Cost
The earthworm will be put for one time and they will keep on multiplying for rest of the
operation.
Table 6: One Time Earthworm cost
Description
Unit
Price
30,000/
kg
Earthworm Investment
Total
150,000/150,000/-
12
11.7 Raw Material Requirements
Table 7: Cost of Raw material/ cycle
Description
Quantity
Bio -degradable waste provided by
500 Tonnes (Rs. 150/T)
vegetable and fruit market yard and
municipal market
Cow dung Manure
125 Tonnes (Rs 200/t)
Total
Value Rs.
75,000
25,000
100,000
11.8 Human Resource Requirement
Table 8: Human Resource Requirement for six months first year
Designation
No
@ Rs.
Value Rs.
Manager
1
20,000/month
120,000
Helper
2
10,000 each/month
120,000
Total
240,000
The table above provides details of human resource required to run a vermicomposting
Production, Packaging and Marketing Company. Salaries of all employees are estimated to
increase 10% annually.
11.9 Overhead expenses for 6 months
Table 9: Overhead Expenses for first year
Description
Amount
fuel expenses
50,000
packing material
20,000
Promotion expenses
50,000
Tractor and trolly rent
50,000
communication
10,000
Utility bills
30,000
Cash in hand
20,000
Total
230,000
11.10 Space Requirement
Land will be taken on lease for the period of 10 years. And number of pits and sheds constructed
on the piece of 1 acre land is 50.
13
Table 10: Space Requirement
Description
Land (Leased @ 40000/annum)
Construction of pits & sheds
Total
No
1 Acre
50 Pits
Total cost Rs.
400,000
400,000
8,00,000
11.11 Revenue Generation
Product
25 kg
Table 11: Revenue Generation for first year
Unit
Sales Price
First Year
(Bags)
(Rs./Unit) @ Rs.15/Production (Rs)
/Kg
5000
375
1,875,000
12. CONTACTS – SUPPLIERS, EXPERTS / CONSULTANTS
There are many local suppliers of packaging machinery working at Lahore, Faisalabad,
Gujranwala, Karachi and other cities who could be contacted for obtaining packaging machinery;
however, during the course of study for this pre-feasibility we have contacted the following local
manufacturer:
Contacts for Vermicomposting from outside country;
D. Vidya Sagar
Address:# 532, ii main road,Gandhi Nagar,KOLAR,Karnataka state,INDIA,Postal Code - – 563
101.
Email-ID:skgsangha@gmail.com
info@skgsangha.org
Contact-No: office : +91-8152-225370 Mobile:+91-9243436266 :+91-9844160038
FAX: +91 8152224146
Online contact with Vermi-technology Unlimited at
http://www.environmentalexpert.com/request/27474
Vermicomposting/Vermi-culturing Technology Consultant and Trainer
1. Dr. Arshad Ali
Director
Land Resources Research Institute (LRRI),
National Agriculture Research Centre (NARC)
14
Park Road, Islamabad
Tel: +92-51 9255060, +92-51-8443124
Cell: 03335966626
2. Dr. Tariq Sultan
Principal Scientific Officer
Soil Biology & Biochemistry Program,
Land Resources Research Institute (LRRI),
National Agriculture Research Centre (NARC)
Park Road, Islamabad
Tel: +92-51 9255060, +92-51-8443181
Cell: 0343-8559901
3. Syed Ishtiaq Hyder
Scientific Officer
Soil Biology & Biochemistry Program,
Land Resources Research Institute (LRRI),
National Agriculture Research Centre (NARC)
Park Road, Islamabad
Cell: 03325323177
4. Mr. Najmul Hassan
Research Assistant (Vermicompost Expert)
Soil Biology & Biochemistry Program,
Land Resources Research Institute (LRRI),
National Agriculture Research Centre (NARC)
Park Road, Islamabad
Tel: +92-51 9255060, +92-51-8443181, 0300-6791195
15
13.
Annexure
1. Income Statement
Year 1
Sales (Revenues)
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
1875000 4125000
4537500
4991250
5490375
6039413
6643354
7307689
8038458
8929473
Raw Material
Bio -degradable waste
provided by vegetable
and fruit market yard and
municipal market
75,000
82500
90750
99825
109807
120788
132867
146153
160769
176846
Cow dung Manure
25,000
27500
30250
33275
36603
40263
44289
48718
53590
58949
Fuel expenses
50,000
55000
60500
66550
73205
80525.5
88578
97435
107179
117897
Packing material
20,000
22000
24200
26620
29282
32210
35431
38974
42872
47159
Tractor and trolley rent
50,000
55000
60500
66550
73205
80526
88578
97436
107179
117897
50,000
55000
60500
66550
73205
80526
88578
97436
107179
117897
270,000
297,000
326,700
359,370
395,307
434,838
478,321
526,154
578,769
636,646
Gross Profit
1605000
3828000
4210800
4631880
5095068
5604575
6165032
6781536
7459689
8292828
Salaries
240,000
264000
290400
319440
351384
386522
425175
467692
514461
565907
Utilities
30,000
33000
36300
39930
43923
48315
53147
58462
64308
70738
communication
10,000
11000
12100
13310
14641
16105
17716
19487
21436
23579
Depreciation
65000
65000
65000
65000
65000
65000
65000
65000
65000
65000
Cash in hand
Repair & Maintenance 10
%
20,000
22000
24200
26620
29282
32210.2
35431
38974
42871
47158
0
66,000
72600
79860
87846
96630
106293
116923
128615
141476
Interest on Loan
128160
128160
113797
98285
81531
63438
43897
22793
0
0
Sub - Total
493160
589160
614397
642445
673607
708221
746659
789331
836692
913861
1111840
3238840
3596403
3989435
4421461
4896353
5418373
5992205
6622997
7378966
375459
449175
532006
623042
723217
865381
1005522
1159650
1358834
2863380
3147228
3457429
3798419
4173136
4552993
4986682
5463347
6020133
Promotion expenses
Total B
Operating Income
Tax
Net Income
1111840
16
II.
Summary Statistics
0 Period
Initial Project
Investment
Fixed Cost
Working capital
Total Cost (Fixed
+ working
capital)
Interest on loan
Total cost
inclusive interest
payment
(Outflow)
Revenue from
sales
Salvage value of
assets
Gross Profit
(Inflow)
Net cash flow
(Inflow –
Outflow)
Payback Period
1,780,000
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
0
0
0
0
0
0
0
0
0
0
1,210,000
0
0
0
0
0
0
0
0
0
570,000
1385000
1517000
1654940
1806674
1973581.4
2157179.54
2359137.49
2581291.24
2825660.37
1,780,000
1385000
1517000
1654940
1806674
1973581.4
2157179.54
2359137.49
2581291.24
2825660.37
128160
128160
113796.8
98284.5461
81531.3109
63437.8168
43896.8432
22792.5916
0
0
1,908,160
1,513,160
1,630,797
1,753,225
1,888,205
2,037,019
2,201,076
2,381,930
2,581,291
2,825,660
1,875,000
4125000
4537500
4991250
5490375
6039412.5
6643353.75
7307689.13
8038458.04
8842303.84
87,170
1,875,000
4,125,000
4,537,500
4,991,250
5,490,375
6,039,413
6,643,354
7,307,689
8,038,458
8,929,473
-33,160
2,611,840
2,906,703
3,238,025
3,602,170
4,002,393
4,442,277
4,925,759
5,457,167
6,103,813
1.72
NPV
19,323,523
IRR
87%
BCR
2.69
17
14. Key Assumption
Particulars
Assumption
Sales Price Growth Rate
10%
Increase in cost of raw material
10%
Increase in utilities
10%
Debt/Equity Ratio
90:10
Depreciation on Machinery
10%
Depreciation on Office furniture & fixture
10%
Loan Period
8
Grace Period
1
Loan installments
Annually
Financial charges (interest rate)
8%
18