IDLC FINANCE PRESENTS

BLUEPRINTS 1.0- ROUND

2

Development of the Feasibility

Study

TEAM- #FINATICS
 Product Analysis
Feasibility Market Analysis
Analysis Organizational/ Technical
Analysis
Financial Analysis
IDLC Finance Presents

BLUEPRINT 1.0 Round 2

Development of the
feasibility study

TEAM- #FINATICS
Project Overview

Mr. Jabbar wants to expand his textile busi

back-ward linkage by setting up a spinning
Assuming that is named JABBAR COTTON
MILLS LTD.

Provided Information-
Capital Structure
Capital Expenditure (CAPEX)
The interest rate mechanism
Loan repayment mode
Operational Information
Feasibility Analysis

Product Market Technical Financial

Analysis Analysis Analysis Analysis
Product Analysis

Demand
-Local
-International market
Market inelasticity
Supply of raw materials ( Cotton) in Bangladesh
Window of opportunity
Market analysis

Infrastructural deficiencies
Competitive wages
and high cost of energy;
Preferential trade
Non-availability and high
Agreements cost of Funds; Lack of
Large internal market vision and policies
SWOT Analysis

Future integration
Potential to increase Political unrest
productivity
Market Analysis

Size and scope of the industry

Fragmented or concentrated?
Target market
Locational appropriation
Entry barriers
Bargain power of buyer
Suppliers bargaining power
Market Analysis
Power of complement providers
New market development
Global exposure
Pricing strategy
Technical Analysis

Raw materials
Estimated amount of raw materials.
Current and future raw materials availability
Access the quality and the cost of raw materials
Per kilogram cost of cotton

Production Capacity
Balance between efficiency and effectiveness
 Equipment
Source of equipment
Technical Analysis
Suppliers of these equipment
Estimated cost on equipment
How we disbursed the LC
payment?

Skill/Labor access
Availability of the skill workforce
and access to qualified
managers.
Financial Analysis

Estimated start up capital

Macroeconomic Factor Capital Structure

Capital structure
Estimated equity at the initial stage
30%

Estimated loan at the initial stage

70%

DEBT EQUITY
Financial Analysis
Sources of the loan
HSBC
IDCOL

Loan syndication
Currency: USD or BDT?
Influence of effective working capital
management
How assets should be depreciated?
Depreciation & Amortization

***Straight line method has been used for depreciation

calculation
Loan Repayment Information
Loan Tenor 7 Years (Quarterly)
Moratorium Period 1 Year
Number of payment Period 28
IDCP
 Q&A
session
THANK You
 WEAKNESS
STRENGTH 1. Infrastructural
1. Competitive wages deficiencies
2. Preferential trade 2. High cost of energy
agreements 3. Non-availability and
Analysis of 3. High internal market high cost of fund
external 4. Tax exemptions 4. Lack of vision and
policies
and SWOT
Analysis
internal OPPORTUNITY
THREATS
environme 1. Future integration
1. Political unrest
nt 2. Potential to
increase productivity 2.Inconsistent
government policies
3. Conquering
international market
 Size and scope of the industry
Market profitability
Fragmented or concentrated?
Market
Analysis of Target market
spinning Locational appropriation
project Entry barriers
Bargaining power of buyer
Suppliers bargaining power
 Power of complement providers
New market development
Global exposure
Market Pricing strategy
Analysis of
spinning
project