[FEASIBILITY REPORT ON SHAMIM OIL EXTRACTION (PVT.) LIMITED]
Department of Management Sciences
The Project:
Shamim Oil Extraction (Pvt.) Limited is an Oil Extraction Unit
proposed to set up in the Agriculture City of Bahawalpur.
Sponsors Name:
Shamim and Brothers are well known for their business capabilities
and serving in the field of agriculture based Industry since 1983.
Markets:
Edible Oil is the third largest food item after wheat flour and Rice.
During the last decade the production of edible oil in Pakistan has
been around 5 Million Tons per annum of which 2.9 (70% of the
existing demand) Million Tons of Edible Oil is available for domestic
consumption of Pakistan and the remaining 2.1 Million Ton is being
exported to rest of the world.
Plant Capacity:
The six expellers are assumed on 80% and 85% capacity utilization
in the first and onward years of operations. The unit will process 48
tons per day, 56 tons of Sunflower and Cotton Seed in the 1st and
successive years of operations.
Material and Inputs:
The raw material of the unit is Cotton Seed and Sunflower obtained
from cotton and sunflower harvesting. The raw material can be
purchased from the grain market (Mandi) as well as directly from
farmers on cash/credit basis in Punjab and from Sindh in off season.
Project Engineering:
Majority of the machinery required for crushing raw material is
manufactured locally apart from few items like SM and FM machine,
which are used for refining the crude oil. However, machinery can
also be imported from China who is considered to be more
competitive amongst the foreign suppliers. The local market
manufacturers are supplying the china made SM 18 and NF 18 along
with other machinery components.
Man Power:
During the extraction season, 60 skilled workers will be required for
loading/unloading and drying of raw material. For an extraction Plant
with processing capacity of 3.00 tons per hour about 30 workers are
required for six months of operations. During the 1st year of extraction
60 unskilled workers will be required for weighing, bagging of finished
output.
Implementation:
The total time period for the installation and execution of output is
estimated to be 6 months from the date of approval of finance.
The Islamia University of Bahawalpur, Pakistan
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[FEASIBILITY REPORT ON SHAMIM OIL EXTRACTION (PVT.) LIMITED]
Department of Management Sciences
Cost of the Project:
The total cost of the proposed project is estimated to be Rs.--------The fixed cost of the project is ------ out of which Rs. ------- will be
financed locally and $--------- (Rs. ------) will be financed from foreign.
The amount of initial permanent working capital required is Rs. -------.
Financial Analysis:
Sixty percent (60%) of the Estimated cost of the proposed project will
be obtained through loan and the remaining 40% will be contributed
by the owners.
Financial Assistance:
Rs. -------- (60%) will be obtained from Financial Institution(s).
Operating Results:
The proposed unit will be capable of generating Revenues Rs. ------Rs. -----------, Rs. -----------, Gross Profit of Rs. -------- Rs. ----------------,
Rs. -----------, Operating Profit of Rs. -------- Rs. -----------, Rs. -----------,
Profit Before Tax (PBT) Rs. -------- Rs. -----------, Rs. -----------, and
Net Profit (NP) Rs. -------- Rs. -----------, Rs. ----------- in the Years-----(Write Name of the years).
Financial Position:
The total Current Assets, Current Liabilities and Net Working Capital
will be maintained as per company production policy.
Financial Ratios:
The current Ratio -------, Quick Ratio ----------, Debt Equity Ratio,
Gross Profit Ratio --------, Net Profit Ratio ---------- (For three years)
are significantly strong as compared to the industry.
Economic Indicators:
The proposed project will contribute to the GDP by Rs. --------- by
providing employment to (Numbers) workers and adding quality
products in the market to make it more competitive.
The Islamia University of Bahawalpur, Pakistan
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