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INTRODUCTION TO BUSINESS FINANCE FEASIBILITY REPORT

TOPIC: DEVELOPING NEW PACKAGING AND PRINTING BUSINESS
SUBMITTED TO Mr. Zia Ur Rehman SUBMITTED BY Khawar Shahzad (52813)

TABLE OF CONTENT Introduction....... Market knowledge.. Opportunity and Threats. Company Layout..... Investment Raw Material. Operating Expences.. Manpower Required. Revenue and Related Cost.. Cash Flow.. Income Statement.. NPV & IRR CLICK HERE CLICK HERE CLICK HERE CLICK HERE CLICK HERE CLICK HERE CLICK HERE CLICK HERE CLICK HERE CLICK HERE CLICK HERE CLICK HERE

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INTRODUCTION
As I am going to complete my MBA and will shortly after its Completion I want to start my Printing and Packaging business. For this purpose I will definitely need to make a feasibility report. On behalf of my course project I have chosen to take the same idea to have benefit related on both sides, my course as well as my future business plan. For the sake of my professional experience and more understanding of this business I am working in Printing and packaging Field from last four years. During my professional time of these four years i have worked on following posts Quality Control Inspector Assistant Manager Quality Control Production & ISO Coordinator (ISO 9001-2008) Planning Manager As i have worked in different departments i believe that i would have to face relatively less problems in running my own business as if will have to run without experience

e I will both

four

have to

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MARKET KNOWLEDGE

With the advancement of technology, industries are giving top of their production with best quality they can ever give. The required thing at present is to give a new look to the shape and design of the product which can attract customers, after implementation of this idea numerous products have been presented in different designs and shapes. Now industrialists are interested toward the packaging of their products. They want to make packaging material of their product a weapon to attract their customers. This idea has been following in house-hold goods up to high level and copying in others sectors as well. In Pakistan 52% industries are producing house-hold products like Biscuits, Candies, Chocolates, spices, shampoos, soaps, sweets, and number of other thing like wise. All the packaging material that has been utilizing is being produced by local companies as well as by oversees companies in UAE. Packaging companies are not enough to full fill packaging needs of house-hold industries in Pakistan, thats why still there is need and a ground for new investors to invest for filling this gap of packaging need, at a profit.

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ound

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OPPORTUNITY AND THREATS

Our 85% of cosmetic products are being made in Sawat Area and packaging material is being purchased from Lahore, Karachi, Hataar, Islamabad and Multan. The transportation cost is very high for customers and have no alternative. My location Mansehra is on a distance of four hours from Sawat, which will be an opportunity for my company to deliver in short span of time. I have already a constructed building with provided electricity, in the centre of Mansehra city with very closely attached with Transportation Point (Facility to transport within whole Country). Mansehra is Tex Exempted Area for industries. It needs high investment and high wastage in very beginning. Machines take large time to install and highly professional persons to install.

mabad s from Point

1
Each Square Block is 30 x 30 Feet

2 A E

5 Y

6 A 1 B C 2 B 3 B D E F 4 G H G 5 I D I 6 J K H J 7 L M B 8 N 9 B 10 B B 12 O P Q R 11 S T U 13 V W 14 Productiob Area Pre-Press Conference Room Garden Reception Desk Security Room, Reception & Waiting Room Generator Room Machines 16 L 17 Dispatch Sorting Area Polar Cutting Atea Stairs Waste Compressing Machine Washroom Canteen Mentainence Room Chiller Plant Braking Power House Vacant Room Offices Store Plat-form Lift Burner Back-up Room INDEX HYPERLINK

D C Q F

SLITTING

PRINTING

LAMINATION

F E

E B F

E F K 15

X Y

M PASTING

M E N

18

19 P DIE CUTTING 20

D B Q S

21

22 I 23

PRINTING

24

25

T C C C U U I S V W C C

26

27

28

29

30

SHAHZAD PRINTING PROFESSIONALS (PVT.) LTD.

INVESTMENT REQUIRED S# 1 2 3 4 5 Capital Required Having Deperication Board Cutting Machine Printing Machines (Rolland 2) Printing Machines (Rolland 1) KORD Varnish Mannual Feed Die Cutting Qty 2 1 1 1 1 Purpose For cutting Box Board Printing Machine with two colors Printing Machine with one colo Coating Vanish on print for gloss Mannual Die cutting and Creasing Machine Computer with capability to run designing softwares and can save large data backup Moving material from place to place within company Moving material from place to place outside company to sharpen Knifes of Board cutting Machine To have plateform for pasting workers For preparing glue Investment Range Minimu Maximu m m 22,000 27,000 450,000 250,000 185,000 555,000 500,000 290,000 200,000 620,000 Decision to Invest 49,000 475,000 270,000 192,500 587,500 Life Cycle in Years 50 65 65 75 30 Depericiation per year 980 7,308 4,154 2,567 19,583

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6 7 8 9 10 11

Graphic Designing Computer Lifter Trolly Chamber Knief Sharper Pasting Tables Glue Making Pot

1 1 1 1 6 2

22,000 80,000 500,000 16,000 2,500 10,000

27,000 85,000 600,000 18,000 3,000 12,000

24,500 82,500 550,000 17,000 16,500 22,000

10 16 10 12 5 5

2,450 5,156 55,000 1,417 3,300 4,400 106,314

TOTAL INVESTMENT REQUIRED INITIALLY 2,286,500 Yearly Depr

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SHAHZAD PRINTING PROFESSIONALS (PVT.) LTD.

RAW MATERIAL Capital Required As Raw Material Cyan Ink (kg) Magenta Ink (kg) Yellow Ink (kg) Black Ink (kg) Brushes and Related Accessories Box Board 600gsm 35.8" x 35.8" Box Board 600gsm 41.8" x 41.8" Box Board 600gsm 47.8" x 47.8" Polo Board 300gsm 36" x 36" Polo Board 300gsm 42" x 42" Polo Board 300gsm 48" x 48" Investment Range Decision Minimu Maximu to Invest m m 4,500 4,850 46,750 4,500 4,500 4,500 1,000 65,000 98,000 170,000 65,000 88,000 115,000 4,850 4,850 4,850 1,300 72,000 100,000 185,000 80,000 96,000 123,000 46,750 46,750 46,750 17,250 68,500 99,000 177,500 72,500 92,000 119,000

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S# 1 2 3 4 5 6 7 8 9 10 11

Qty 10 10 10 10 15 3000 3000 3000 3000 3000 3000

Purpose For Printing For Printing For Printing For Printing Tools for Pasting workers For container Box For container Box For container Box For Printing and Box cover For Printing and Box cover For Printing and Box cover

TOTAL RAW MATERIAL REQUIRED FOR YEAR 2010 832,750

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SHAHZAD PRINTING PROFESSIONALS (PVT.) LTD. MONTHLY AND YEARLY EXPENCES S# 1 2 3 4 5 6 7 Expence Electricity per month Generator charges per month Stationary Mehtenance Expences Cotton for cleaning Oiling Greecing Depericiation Expences TOTAL Per Month 12,500.00 26,000.00 24,000.00 135,000.00 2,000.00 15,000.00 214,500.00 Per Year 150,000.00 312,000.00 288,000.00 1,620,000.00 24,000.00 180,000.00 106,314.46 2,680,314.46

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SHAHZAD PRINTING PROFESSIONALS (PVT.) LTD.

REQUIRED MENPOWER AND SALARY + COMPANSATION Monthly salary per Employee 8,000 9,500 8,500 8,500 7,000 7,000 7,000 7,000 7,000 14,000 10,000 16,000 12,000 Total Monthly Salary IN Depart 8,000 28,500 8,500 8,500 7,000 49,000 28,000 7,000 7,000 14,000 10,000 16,000 12,000 Yearly Bonus per Employee 16,000 19,000 17,000 17,000 14,000 14,000 14,000 14,000 14,000 28,000 20,000 32,000 24,000 Yearly Salary + Bonuses

INDEX

S#

Designation

Employee

Department

Oprerators

1 3 1 1

Board Cutting Printing, Varnish Pasting Mannual Feed Die Cutting Board Cutting Printing, Varnish Pasting Mannual Feed Die Cutting Store Pre-Press Chamber Mentenance Store

112,000 399,000 119,000 119,000 98,000 686,000 392,000 98,000 98,000 196,000 140,000 224,000 168,000 2,849,000 488

Helpers

1 7 4 1 1

3 4 5 6

Graphic Designer Driver Mentenance Incharge Ink maker (Store Incharge)

1 1 1 1

YEARLY SALARY AND COMPANSATION EXPENCES Single Labour hour Cost

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SHAHZAD PRINTING PROFESSIONALS (PVT.) LTD.

EXPECTED REVENUE AND RELATED COST FOR YEAR 2012 S# Job Name Client Monthly order 14,300 15,600 10,400 3,300 750 125,000 1,300 4,680 1,200 1,170 62,500 4,600 10,800 255600 Yearly orders 150,150 163,800 109,200 34,650 7,875 1,312,500 13,650 49,140 12,600 12,285 656,250 48,300 113,400 2683800 Price per unit 9.03 7.66 12.32 15.70 18.62 6.93 9.03 7.66 12.32 15.70 6.93 15.59 14.06 Revenue Material Total Material Cost per Cost unit 4.83 4.10 6.59 8.40 9.96 3.71 4.83 4.10 6.59 8.40 3.71 8.34 7.52 725,224.50 671,580.00 719,628.00 291,060.00 78,435.00 4,869,375.00 65,929.50 201,474.00 83,034.00 103,194.00 2,434,687.50 402,822.00 852,768.00 11,499,211.50 Labour Hours per unit 0.0016 0.0015 0.0020 0.0022 0.0024 0.0015 0.0016 0.0015 0.0020 0.0022 0.0015 0.0034 0.0030 Total Labour Hours 240.24 245.70 218.40 75.60 18.90 1,968.75 21.84 73.71 25.20 26.80 984.38 165.60 340.20 4,405.32 Total Labour Hours Cost 117,201.08 119,864.75 106,546.44 36,881.46 9,220.37 960,454.69 10,654.64 35,959.42 12,293.82 13,076.15 480,227.34 80,787.96 165,966.57 2,149,134.70

1 Sweets Box 0.5 kg 2 Sweets Box 0.25 kg 3 Sweets Box 1 kg 4 Sweets Box 2 kg 5 Sweets Box 5 kg 6 Biscuits Tray 7 Sweets Box 0.5 kg 8 Sweets Box 0.25 kg 9 Sweets Box 1 kg 10 Sweets Box 2 kg 11 Biscuits Tray 12 Large shoe Box 13 Medium Shoe Box totals

Taj Bakers Taj Bakers Taj Bakers Taj Bakers Taj Bakers Taj Bakers Waheed Sweets Waheed Sweets Waheed Sweets Waheed Sweets Waheed Sweets Super China Shoes Super China Shoes

1,355,559.81 1,255,289.72 1,345,099.07 544,037.38 146,607.48 9,101,635.51 123,232.71 376,586.92 155,203.74 192,885.98 4,550,817.76 752,938.32 1,593,958.88 21,493,853.27

Total Labour Hours Cost 117,201.08 119,864.75 106,546.44 36,881.46 9,220.37 960,454.69 10,654.64 35,959.42 12,293.82 13,076.15 480,227.34 80,787.96 165,966.57 2,149,134.70

SHAHZAD PRINTING PROFESSIONALS (PVT.) LTD. INCOME STATEMENT 2012 Accounts Details Revenue Amount 21,493,853.27

Material Cost Labour Hours Cost Gross Profit

(11,499,211.50) (2,149,134.70) 7,845,507.07

Other Operating Expenses

(2,680,314.46)

Net Profit Tex Paid

5,165,192.62 (387,389.45)

Profit after Tex Paid

4,777,803.17

SHAHZAD PRINTING PROFESSIONALS (PVT.) LTD. CASH FLOW 2012

Profit before taxation for the period Net Cash Generated from operations Cash Flow from Investing Activities Raw Material Operating Expences Yearly Deperication Cash Flow from Investing Activities Cash Flow from Financing Activities Cash and cash equivalents at the end of the period (832,750.00) (2,680,314.46) (106,314.46) (3,619,378.91) 1,545,813.71 5,165,192.62 5,165,192.62

SHAHZAD PRINTING PROFESSIONALS (PVT.) LTD. NPV & IRR 20102 Details INVESTMENT AMOUNT Yearly Depericiation Operating Expences TOTAL INVESTMENT AMOUNT NET PROFIT 2012(at end of year) MARKET DISCOUNT RATE NPV IRR 14.5% 1,210,589.48 71.45% (106,314.46) (2,680,314.46) (2,786,628.91) 4,777,803.17 Amount

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