Professional Documents
Culture Documents
DIAGNOSTIC LABORATORY
http://www.smeda.org.pk
Lahore
Small and Medium Enterprise Development Authority, 6st Floor, LDA Plaza Egerton Road,. Lahore 54792, Pakistan
Tel: 92-42-111-111-456 Email: helpdesk@smeda.org.pk
Karachi
Small and Medium Enterprise Development Authority, 5th floor, Bahria Complex-II
Moulvi Tameezuddin Khan Road, Karachi
Tel: 92-21-111-111-456, 5610432, 5610536, 5610459, Fax: 92-21-5610572
Email: helpdesk-khi@smeda.org.pk
Peshawar
Small and Medium Enterprise Development Authority, Ground Floor, Statelife Building, The Mall, Peshawar Cantt.
Tel: 92-91-111-111-456, 92-91-9213046-7 Fax: 92-91-286908, Email: helpdesk-pew@smeda.org.pk
Quetta
Small and Medium Enterprise Development Authority, Bunglow No.15-A Chaman Housing Scheme, Airport Road, Quetta
Tel: 92-81-2831702, 92-81-2831623 Fax: 92-81-2831922, Email: helpdesk-qta@smeda.org.pk
June 2008
BAL-PREF-12/June 2008
Pre-feasibility Study
Diagnostic Laboratory
DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subject matter and provide
a general idea and information on the said area. All the material included in this document is based on
data/information gathered from various sources and is based on certain assumptions. Although, due
care and diligence has been taken to compile this document, the contained information may vary due to
any change in any of the concerned factors, and the actual results may differ substantially from the
presented information. SMEDA does not assume any liability for any financial or other loss resulting
from this memorandum in consequence of undertaking this activity. Therefore, the content of this
memorandum should not be relied upon for making any decision, investment or otherwise. The
prospective user of this memorandum is encouraged to carry out his/her own due diligence and gather
any information he/she considers necessary for making an informed decision.
The content of the information memorandum does not bind SMEDA in any legal or other form.
DOCUMENT CONTROL
Document No.
PREF - 12
Prepared by
SMEDA-Balochistan
Approved by
Head of Department
Issue Date
June 2008
Issued by
Library Officer
BAL-PREF-12/June 2008
Pre-feasibility Study
Diagnostic Laboratory
Table of Contents
1.
2.
3.
MARKET INFORMATION....................................................................................................................... 5
3.1
3.2
3.5
4.
Introduction...................................................................................................................................................... 5
Market Overview & Demand............................................................................................................................. 5
Target Customers ............................................................................................................................................ 5
5.
Land ................................................................................................................................................................. 8
Covered Area Requirement.............................................................................................................................. 8
6.
7.
8. FINANCIAL ANALYSIS............................................................................................................................. 10
8.1
8.2
8.3
BAL-PREF-12/June 2008
Pre-feasibility Study
9.6
9.7
9.8
Diagnostic Laboratory
BAL-PREF-12/June 2008
Pre-feasibility Study
Diagnostic Laboratory
Introduction to SMEDA
The Small and Medium Enterprise Development Authority (SMEDA) was established
with the objective to provide fresh impetus to the economy through the launch of an
aggressive SME support program.1
Since its inception in October 1998, SMEDA had adopted a sectoral SME development
approach. A few priority sectors were selected on the criterion of SME presence. In depth
research was conducted and comprehensive development plans were formulated after
identification of impediments and retardants. The all-encompassing sectoral development
strategy involved recommending changes in the regulatory environment by taking into
consideration other important aspects including financial aspects, niche marketing,
technology up gradation and human resource development.
SMEDA has so far successfully formulated strategies for sectors including, fruits and
vegetables, marble and granite, gems and jewelry, marine fisheries, leather and footwear,
textiles, surgical instruments, urban transport and dairy. Whereas the task of SME
development at a broader scale still requires more coverage and enhanced reach in terms
of SMEDAs areas of operation.
Along with the sectoral focus a broad spectrum of business development services is also
offered to the SMEs by SMEDA. These services include identification of viable business
opportunities for potential SME investors. In order to facilitate these investors, SMEDA
provides business guidance through its help desk services as well as development of
project specific documents. These documents consist of information required to make
well-researched investment decisions. Pre-feasibility studies and business plan
development are some of the services provided to enhance the capacity of individual
SMEs to exploit viable business opportunities in a better way. This document is in the
continuation of this effort to enable potential investors to make well-informed investment
decisions.
For more information on services offered by SMEDA, please visit our website: www.smeda.org.pk
BAL-PREF-12/June 2008
Pre-feasibility Study
Diagnostic Laboratory
2. Project p rofile
The proposed project is for setting up a Diagnostic Laboratory. The Laboratory can be
established in any major city of Pakistan, primarily in urban district of Balochistan province.
The document highlights marketing, management and financial aspects required for the
establishment and successful venture.
2.1
Project Brief
This document describes the investment opportunity for setting up a diagnostic laboratory. It
provides a range of services relating to medical tests, which includes the Biochemistry,
Hematology, Serology, Histophythology, Micro Biology and Clinical Pathology. These tests
are based or conducted on the collected sample of blood/urine of the patient. Moreover, due
to this particular nature of business, on an average of 100 tests per day are expected initially.
2.2
Opportunity Rationale
Lack of infrastructure and growing number of population has also increased demand of
medical facilities, which has direct impact on public & private sector health care centers.
Pakistan is a densely populated country, at least one-third of the population is living below
the poverty line, which has no access to clean water and proper sanitation facilities. These
handicaps pose a serious threat to the health of the masses. Moreover, the overlapping and
harsh climate of Pakistan causes major viral diseases through out the year. This creates a
great demand for Diagnostic Laboratories in Pakistan. A big investment opportunity exists in
this sector. Introduction of latest technology, hygienic environment and professional staff
also contribute to the popularity of private sector hospitals and laboratories. Increasing trend
of medical diagnosis through scientific medical tests has increased the need of high capital
investment in this sector. Investment in the private sector can, therefore, exploit this
opportunity and provide latest and dependable diagnostic services on round-the-clock basis.
2.3
As such there is no specific time required for an entry in health sector. As the need is
increasing day by day due to the increase in population and diseases, investment can be made
any time during the year.
2.4
BAL-PREF-12/June 2008
Pre-feasibility Study
2.5
Diagnostic Laboratory
Project Capacity
The proposed capacity of this diagnostic laboratory is 150 tests per day. This project is
recommended to be established in urban districts at far flange areas from major cities to
facilitate the locals in their diagnosis. Furthermore, timely identification of diseases will also
reduce motility rate and will also support the public hospital/local doctors for appropriate
treatment as per diseases. Patients who at present take great pains to go to other developed
cities to have their tests will find the laboratories at hand. Thus, it will generate great business
opportunities for the entrepreneur.
2.6
2.6.2 Hematology
Hematology includes CBC, Co-ebullition Profile and platelets identification tests.
2.6.3 Serology
It comprises of Hepatitis A, Hepatitis B & Hepatitis C, HIV, Venereal Disease Research
Laboratories, Remitted Arthritis Factor and Anti Setuctolycin O Titer tests.
2.6.4 Histopathology
This includes Biopsies, Pap smear, Malignant Cell and Cytology tests.
Sugar Glucose
Uric Acid
Urea
Creatinine
Cholesterol
Triglyceride
High density Lepo protein
Cholesterol
Low density Lepo protein
Cholesterol
BAL-PREF-12/June 2008
80
100
100
100
150
100
550
Average
Cost/Test
40
50
50
50
70
50
250
Average
Tests/Month
240
100
50
60
70
40
50
550
250
60
Pre-feasibility Study
9
10
Diagnostic Laboratory
150
250
70
120
70
100
Average
Cost/Test
70
70
70
25
70
70
70
Average
Tests/Month
40
50
60
60
50
50
40
200
150
150
300
200
150
150
150
Average
Cost/Test
80
70
70
150
80
70
70
70
Average
Tests/Month
140
80
80
120
100
110
110
40
150
70
70
Average
Cost/Test
350
200
200
150
Average
Tests/Month
50
30
30
40
Average
Cost/Test
150
150
150
Average
Tests/Month
100
160
200
Average
Cost/Test
70
40
50
Average
Tests/Month
200
100
60
Hematology
S. No. Description
1
2
3
4
5
6
7
150
150
150
50
150
150
150
Serology
S. No. Description
1
2
3
4
5
6
7
Hepatitis A
Hepatitis B
Hepatitis C
HIV
VDRL
Typhoid
Vidal
Remitted Arthritis factor (RA
Factor)
ASO Titer
Histophysiologies
S. No. Description
1
2
3
4
Biopsies
Pap smear
Malignant cell
Cytology
800
400
400
300
Micro Biology
S. No. Description
1
2
3
300
300
300
Chemical Pathology
S. No. Description
1
2
3
Urine D.R
Stool D.R
Pregnancy tests
BAL-PREF-12/June 2008
150
80
100
Pre-feasibility Study
2.7
Diagnostic Laboratory
Working Time
As per nature of business recommended timings would be 16hrs per day, and 25 days per
month. Therefore two shifts would be necessary for smooth operations of tasks/obligations
Project
Working shifts
Working hours per day
Per month working
Per annum working
2.8
Diagnostic Laboratory
2 Shifts (1 Shift = 8 hours)
16
25 days (Excluding holidays) 400 hrs
per month
300 Days, 12000 hours.
Project Investment
Total Project cost is Rs. 4.156 million. This includes capital cost of Rs. 3.9 million and
working capital cost of Rs. 0.25million
2.9
Capacity
Human
Resource
Technology/
Machinery
Location
Local / Foreign
Financial Summary
Project Cost
IRR
NPV
Payback Period
4,156,316
66%
21,253,430
2.0 Yrs
12%
2.9
Suitable Location
A Diagnostic Laboratory should be established at a location that is easily accessible and has
population concentration or the appropriate place would be near private or public hospitals.
BAL-PREF-12/June 2008
Pre-feasibility Study
Diagnostic Laboratory
Introduction
Pakistan is the seventh populous country in the world. According to the census of 1998, the
population of Pakistan was 132.35 million which rose to 158.70 million (estimated for 2007).
This growth rate is a tremendous challenge to the existing infrastructure, which has resulted
in high level of environmental pollution, and especially, it affects the health care system in
the country. This has given rise to demand of private sector health care facilities.
3.2
The demand for diagnostic laboratory is rising in accordance with the increase in population
and diseases. The number of existing laboratories is not as high to meet the growing demand
of tests. Government of Pakistan has developed an elaborate system of public health care in
the country. This infrastructure consists of Hospitals, Basic Health Units, Rural Health
Centers and Dispensaries. In addition to this Specialized Medicare Centers like Maternity &
Child Health and TB Centers are also established in the country.
The details of various medical & health facilities establishment for the year 2006 are given
below.
National medical and health Establishment;
Hospitals
Dispensaries
Rural
health
centers
TB Clinics
Basic
Health
Units
924
4712
560
288
5336
Maternity
& Child
Health
Centers
906
Total Beds
Population
/ Bed
102073
1522
It is evident from the above figures that the high population growth rate has rendered the
existing health facilities as insufficient to meet the requirement of the existing population.
Moreover, rapid technological advances have revolutionized the diagnostic techniques in the
medical field. High technology and computerized diagnostic machines are now playing
increasing role in overall medical treatment. These technologies are new and therefore,
expensive as well. As a result not many public sector hospitals have been able to acquire
these new technologies, whereas trend of consulting private sector hospitals, laboratories and
medical treatment is on higher side.
There are number of diagnostic laboratories, which operate in an organized manner by private
sector in Pakistan. However, this industry has not yet been developed to any sizeable extent
in the country and as such it is not capable enough to meet the demand of the growing
population.
3.5
Target Customers
The major target market of the facility consists of residential areas in the vicinity of the
laboratory. The basic services that will be provided will also be determined by the need of the
locality and its adjacent areas.
BAL-PREF-12/June 2008
Pre-feasibility Study
Diagnostic Laboratory
4. Basic R equirements
4.1
The major cost involved in establishing a Diagnostic Laboratory is the cost of machinery and
equipment. The proposed Laboratory would be providing diagnostic services to the patients.
The following requirement is estimated for running the laboratory.
Description
Blood Analyzer
Binocular Microscope
Clinical Water bath
Incubator
ELISA for hormone Analysis
Centrifuge Machine
Photoclorimeter / Chemistry
analyzer
Miscellaneous Lab Equipment
Total
4.2
Number
1
2
1
1
1
1
1
Total
400,000
180,000
6,500
450,000
60,000
25,000
325,000
20,000
1,466,500
Office equipment
It includes computers, air conditioners, telephone and fax etc. An amount of Rs. 178,400 has
been provided for acquiring the required office equipment. Following are the details of office
equipment;
Description
Air conditioner
Refrigerators
Water Cooler
Computers
Printers
Scanner
Telephone sets
Fax Machine
Total
4.3
Number
2
1
1
2
1
1
2
1
Total
54,000
18,000
8,000
60,000
12000
4,000
2,400
20,000
178,400
Furniture and fixture mainly include Sofa set, tables, chairs, fans & lights, curtain and fire
extinguishers. The details are as under;
Description
Sofa Set 3 seat
Counter desk
Waiting sofas
Number
2
1
2
BAL-PREF-12/June 2008
Total
30,000
10,000
24,000
Pre-feasibility Study
Office Table
Total
4.4
Diagnostic Laboratory
10,000
10,000
74,000
4.5
Number
1
3
1
Utilities Requirement
Electricity
Telephone
Gas
Water
Waste Disposal
BAL-PREF-12/June 2008
Total
40,000
30,000
2,000
50,000
5,000
127,000
Pre-feasibility Study
Diagnostic Laboratory
Land
Keeping in view the proposed capacity, approximately 772 square feet is sufficient to set up
the diagnostic center. An amount of Rs. 926,400 has been allocated for the acquisition of
land. However, cost of land may vary according to location.
5.2
The covered area requirement for diagnostic laboratory is about 772 sq. feet. The table given
below gives a sketch of the area requirement.
Section
Number
Area
14x18
5*6
20x18
10x10
Total Area
(sq. ft.)
252
60
360
100
772
800
1200
1,200
1,200
1,200
Rs. 1,350 per
Sq.ft
1200
Cost (Rs)
302,400
72,000
432,000
120,000
926,400
1,080,000
2,006,400
BAL-PREF-12/June 2008
Persons
Monthly
Salary/person
20,000
1
4
1
1
7
6,000
8,000
1,500
Total Salary/
annum.
240,000
288,000
96,000
18,000
642,000
Pre-feasibility Study
Diagnostic Laboratory
7. Project Economics
7.1
Project Cost
Description
Land
Building & Infrastructure
Machinery & Equipment
Furniture & Fixtures
Office Equipment
Pre-operating costs
Total Capital Cost
Working Capital
Raw Material Inventory
Upfront Insurance Payment
Cash
Total Working Capital
Amount in (Rs.)
1,080,000
926,400
1,593,500
74,000
178,400
53,500
3,905,800
70,841
79,675
100,000
250,516
7.2
4,156,316
Project Returns
Description
IRR
MIRR
Pay Back Period (Yrs)
Net Present Value (NPV)
7.3
Equity
Project
79%
35%
1.77
16,935,436
66%
31%
2.05
21,253,430
Project Financing
Description
Debt Financing
Equity Financing
Total
BAL-PREF-12/June 2008
Percentage
30%
70%
Amount in Rs
1,249,856
2,906,460
4,156,316
Pre-feasibility Study
Diagnostic Laboratory
SMEDA
4,156,316
2,906,460
1,249,856
15%
5
7
70%
30%
0%
Year 1
1,512,198
1,843,804
21%
33%
8.85
@ 16%
Year 2
1,811,934
2,149,657
26%
45%
15.78
Equity
79%
35%
1.77
16,935,436
Year 3
2,620,285
2,965,044
30%
55%
27.90
34%
65%
53.13
Project
66%
31%
2.05
21,253,430
@ 12%
10
BAL-PREF-12/June 2008
Year 4
3,609,925
3,962,773
Year 5
4,487,586
4,849,738
36%
70%
123.04
Year 6
5,545,901
5,545,901
39%
72%
-
Year 7
6,350,169
6,350,169
40%
75%
-
Year 8
7,243,387
7,243,387
42%
78%
-
Year 9
8,236,314
8,236,314
43%
80%
-
Rs. in actuals
Year 10
9,658,110
10,959,557
45%
83%
-
Pre-feasibility Study
8.1
Diagnostic Laboratory
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Rs. in actuals
Year 10
Revenue
Cost of goods sold
Gross Profit
5,495,980
3,175,654
2,320,326
7,053,174
3,854,047
3,199,128
8,866,848
4,593,181
4,273,666
10,972,724
5,397,512
5,575,212
12,740,552
5,979,086
6,761,466
14,014,607
6,298,899
7,715,708
15,416,068
6,636,693
8,779,375
16,957,675
6,993,559
9,964,116
18,653,442
7,370,660
11,282,782
20,518,786
7,769,238
12,749,548
354,000
15,700
12,390
17,700
27,480
79,675
27,480
138,615
10,700
683,740
1,636,586
388,466
16,642
13,596
19,423
35,266
75,691
35,266
138,615
10,700
733,666
2,465,462
426,288
17,641
14,920
21,314
44,334
71,708
44,334
138,615
10,700
789,853
3,483,813
467,791
18,699
16,373
23,390
54,864
67,724
54,864
138,615
10,700
853,019
4,722,193
513,336
19,821
17,967
25,667
63,703
63,740
63,703
138,615
10,700
917,251
5,844,215
563,315
21,010
19,716
28,166
70,073
59,756
70,073
138,615
970,725
6,744,984
618,161
22,271
21,636
30,908
77,080
55,773
77,080
138,615
1,041,523
7,737,852
678,346
23,607
23,742
33,917
84,788
51,789
84,788
138,615
1,119,593
8,844,523
744,390
25,023
26,054
37,220
93,267
47,805
93,267
138,615
1,205,641
10,077,141
816,865
26,525
28,590
40,843
102,594
43,821
102,594
138,615
1,300,448
11,449,100
22,763
1,659,349
53,622
2,519,084
79,255
3,563,068
108,586
4,830,779
139,635
5,983,850
174,586
6,919,570
213,654
7,951,506
253,115
9,097,638
294,643
10,371,783
345,599
11,794,700
Interest expense
Earnings Before Tax
187,478
1,471,871
159,672
2,359,411
127,696
3,435,372
90,922
4,739,857
48,633
5,935,217
6,919,570
7,951,506
9,097,638
10,371,783
11,794,700
Tax
NET PROFIT/(LOSS) AFTER TAX
323,812
1,148,059
519,070
1,840,341
755,782
2,679,590
1,042,769
3,697,089
1,305,748
4,629,469
1,522,305
5,397,264
1,749,331
6,202,174
2,001,480
7,096,158
2,281,792
8,089,991
2,594,834
9,199,866
1,148,059
574,030
574,030
574,030
2,414,370
1,207,185
1,207,185
1,207,185
3,886,775
1,943,388
1,943,388
1,943,388
5,640,476
2,820,238
2,820,238
2,820,238
7,449,707
3,724,854
3,724,854
3,724,854
9,122,118
4,561,059
4,561,059
4,561,059
10,763,233
5,381,617
5,381,617
5,381,617
12,477,774
6,238,887
6,238,887
6,238,887
14,328,878
7,164,439
7,164,439
7,164,439
16,364,305
8,182,152
8,182,152
11
BAL-PREF-12/June 2008
Pre-feasibility Study
8.2
Diagnostic Laboratory
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Rs. in actuals
Year 10
100,000
70,841
79,675
250,516
1,038,168
91,120
75,691
1,204,979
1,642,917
114,811
71,708
1,829,435
2,319,815
142,401
67,724
2,529,940
3,109,501
165,720
63,740
3,338,961
3,872,233
182,706
59,756
4,114,695
4,857,075
201,433
55,773
5,114,280
5,825,628
222,080
51,789
6,099,496
6,830,127
244,843
47,805
7,122,776
7,902,003
269,940
43,821
8,215,763
9,377,961
9,377,961
Fixed assets
Land
Building/Infrastructure
Machinery & equipment
Furniture & fixtures
Office equipment
Total Fixed Assets
1,080,000
926,400
1,593,500
74,000
178,400
3,852,300
1,080,000
880,080
1,513,825
70,300
169,480
3,713,685
1,080,000
833,760
1,434,150
66,600
160,560
3,575,070
1,080,000
787,440
1,354,475
62,900
151,640
3,436,455
1,080,000
741,120
1,274,800
59,200
142,720
3,297,840
1,080,000
694,800
1,195,125
55,500
133,800
3,159,225
1,080,000
648,480
1,115,450
51,800
124,880
3,020,610
1,080,000
602,160
1,035,775
48,100
115,960
2,881,995
1,080,000
555,840
956,100
44,400
107,040
2,743,380
1,080,000
509,520
876,425
40,700
98,120
2,604,765
1,080,000
463,200
796,750
37,000
89,200
2,466,150
Intangible assets
Pre-operation costs
Total Intangible Assets
TOTAL ASSETS
53,500
53,500
4,156,316
42,800
42,800
4,961,464
32,100
32,100
5,436,605
21,400
21,400
5,987,795
10,700
10,700
6,647,501
7,273,920
8,134,890
8,981,491
9,866,156
10,820,528
11,844,111
240,392
240,392
294,743
294,743
354,072
354,072
418,042
418,042
463,251
463,251
487,202
487,202
512,431
512,431
539,011
539,011
567,018
567,018
572,073
572,073
1,249,856
1,249,856
176,099
1,064,483
1,240,582
176,913
851,304
1,028,217
177,727
606,148
783,875
178,541
324,219
502,760
179,355
179,355
180,169
180,169
180,983
180,983
181,797
181,797
182,611
182,611
183,425
183,425
Shareholders' equity
Paid-up capital
2,906,460
Retained earnings
Total Equity
2,906,460
TOTAL CAPITAL AND LIABILITIES 4,156,316
2,906,460
574,030
3,480,490
4,961,464
2,906,460
1,207,185
4,113,646
5,436,605
2,906,460
1,943,388
4,849,848
5,987,795
2,906,460
2,820,238
5,726,699
6,647,501
2,906,460
3,724,854
6,631,314
7,273,920
2,906,460
4,561,059
7,467,519
8,134,890
2,906,460
5,381,617
8,288,077
8,981,491
2,906,460
6,238,887
9,145,348
9,866,156
2,906,460
7,164,439
10,070,899
10,820,528
2,906,460
8,182,152
11,088,613
11,844,111
Assets
Current assets
Cash & Bank
Raw material inventory
Pre-paid insurance
Total Current Assets
12
BAL-PREF-12/June 2008
(0)
(0)
Pre-feasibility Study
8.3
Diagnostic Laboratory
(0)
(0)
SMEDA
Year 0
Operating activities
Net profit
Add: depreciation expense
amortization expense
Deferred income tax
Raw material inventory
Advance insurance premium
Accounts payable
Cash provided by operations
(70,841)
(79,675)
(150,516)
Financing activities
Change in long term debt
1,249,856
Issuance of shares
2,906,460
Purchase of (treasury) shares
Cash provided by / (used for) financing activities
4,156,316
Investing activities
Capital expenditure
(3,905,800)
Acquisitions
Cash (used for) / provided by investing activities
(3,905,800)
Year 1
Year 2
Year 3
Year 4
Year 5
1,148,059
138,615
10,700
176,099
(20,278)
3,984
240,392
1,697,571
1,840,341
138,615
10,700
814
(23,691)
3,984
54,350
2,025,113
2,679,590
138,615
10,700
814
(27,590)
3,984
59,329
2,865,441
3,697,089
138,615
10,700
814
(23,318)
3,984
63,971
3,891,854
4,629,469
138,615
10,700
814
(16,986)
3,984
45,208
4,811,804
(185,373)
(185,373)
(213,179)
(213,179)
(245,156)
(245,156)
(281,929)
(281,929)
(324,219)
(324,219)
Year 6
5,397,264
138,615
814
(18,727)
3,984
23,951
5,545,901
Year 7
6,202,174
138,615
814
(20,647)
3,984
25,229
6,350,169
Year 8
7,096,158
138,615
814
(22,763)
3,984
26,580
7,243,387
Year 9
8,089,991
138,615
814
(25,096)
3,984
28,007
8,236,314
Rs. in actuals
Year 10
9,199,866
138,615
814
269,940
43,821
5,055
9,658,110
NET CASH
100,000
1,512,198
1,811,934
2,620,285
3,609,925
4,487,586
5,545,901
6,350,169
7,243,387
8,236,314
9,658,110
100,000
100,000
100,000
1,612,198
574,030
1,038,168
1,038,168
2,850,102
1,207,185
1,642,917
1,642,917
4,263,202
1,943,388
2,319,815
2,319,815
5,929,739
2,820,238
3,109,501
3,109,501
7,597,087
3,724,854
3,872,233
3,872,233
9,418,134
4,561,059
4,857,075
4,857,075
11,207,244
5,381,617
5,825,628
5,825,628
13,069,015
6,238,887
6,830,127
6,830,127
15,066,442
7,164,439
7,902,003
7,902,003
17,560,113
8,182,152
9,377,961
13
BAL-PREF-12/June 2008
Pre-feasibility Study
Diagnostic Laboratory
Description
Calculation
150
300
60%
10%
95%
9.2
Revenue Assumptions
Description
Calculation
Rs. 203.55
10%
27,000 Tests
st
9.3
Economic Assumptions
6%
6%
6%
10%
9.4
Expense Assumptions
Communication Expense
Office Expense
5% of administration expense
Promotional Expense
0.5% of revenue
0.5% of revenue
5%
5%
9.5
Depreciation Method
Straight Line
5%
5%
14
BAL-PREF-12/June 2008
Pre-feasibility Study
Diagnostic Laboratory
5%
Office Equipment
5%
9.6
All the direct costs that directly affect the revenue of any project are called Cost of Goods Sold (COGS). For a
diagnostic laboratory, following are the components and estimated value of COGS in the first year:
Description
Daily Cost
104.95
288,000
27,000
27,000
Total COGS
9.7
3,175,654
30
100,000
9.8
Financing Assumptions
Debt
30%
Equity
70%
15%
Tax Treatment
Sole proprietorship
12
15
BAL-PREF-12/June 2008