Project Profile & Feasibility Report
A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH Address: Hotel Shining Touch Building,
House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10,
Uttara, Dhaka-1230
RANAK ENTERPRISE PVT LTD.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
1
Table of Contents Executive Summery ............................................................................................................................ 2
Project Summery ...................................................................................................................................... 2
SWOT Analysis .......................................................................................................................................... 4
Chapter 1 : Proposed Project .............................................................................................................. 5
Company ................................................................................................................................................... 5
Background of the Project........................................................................................................................ 5
Location of the Project ............................................................................................................................. 6
Chapter-2: Management Aspects........................................................................................................ 7
Chapter-3: Technical Aspects .............................................................................................................. 9
Location .................................................................................................................................................... 9
Infrastructure ............................................................................................................................................ 9
Technology ................................................................................................................................................ 9
Civil Works .............................................................................................................................................. 10
Plant & Machinery .................................................................................................................................. 11
Furniture & Fixture ................................................................................................................................. 12
Vehicles .................................................................................................................................................. 13
Production Flow Chart ........................................................................................................................... 14
Products .................................................................................................................................................. 15
Raw Materials......................................................................................................................................... 15
Manpower .............................................................................................................................................. 16
Implementation Schedule ...................................................................................................................... 17
Chapter 4 : Marketing Aspects .......................................................................................................... 18
Demand & Supply ................................................................................................................................... 18
Competitors ............................................................................................................................................ 19
Chapter 5 : Financial Aspects ............................................................................................................ 21
Chapter 6 : Economic Aspects ........................................................................................................... 22
Chapter 7 : Conclusion ..................................................................................................................... 23
Feasibility Report: Annexures ........................................................................................................... 24
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
2
EXECUTIVE SUMMERY
1.0 Project Summery:
1.1 Name of the Project : RANAK ENTERPRISE PVT. LTD.
(a modern sulphuric acid manufacturing plant in
Bangladesh)
1.2 Head Office : Hotel Shining Touch Building,
House # 97 (4th Floor), Road # 13,
Ranavola Avenue, Sector # 10,
Uttara, Dhaka-1230
1.3 Nature of the project : Considering the overall condition and demand of
sulphuric acid in our country and the whole
world, It has been decided to set up a modern
sulphuric acid manufacturing plant in
Bangladesh.
1.4 Legal Status : Private Limited Company
1.5 Project Capital : a) Authorized
Capital
Tk. 100.00 Million
b) Paid up Capital Tk. 30.00 Million
1.6 Shareholding Patterns:
Sl. Name Number of Shares Percentage Position
01 Abu Sadat Md. Mobin
(Ranak) 291000 97%
Chairman &
Managing Director
02 Md. Saifuddin Ahmed 3000 1% Director
03 Rashedul Ahsan 3000 1% Director
04 Abu Rayhan 3000 1% Director
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
3
1.7 Cost of the project : (Tk. In „000)
Sl. No. Particulars Sponsors Equity Bank Equity Total Cost
01 Cost of Land & Land Development
94,500.00 0.00 94,500.00
02 Building & other Civil works 12,538.80 50,155.20 62,694.00
03 Machinery & Equipment 83,620.00 334,480.00 418,100.00
04 Vehicle 3,600.00 14,400.00 18,000.00
05 Furniture, Fixture & Office Equipments
1,504.50 0.00 1,504.50
06 Preliminary Expenses 5,500.00 0.00 5,500.00
07 Contingencies 10,005.97 0.00 10,005.97
Total Fixed Cost 211,269.27 399,035.20 610,304.47
08 Working capital 0.00 67,567.39 67,567.39
Total Cost 211,269.27 466,602.59 677,871.86
1.9 Investment : a) Sponsor‟s : TK. 211,269,270.00
b) Bank : Tk. 466,602,590.00
1.10 Ratio of Investment : Sponsors : Bank:: 31:69
1.11 Financial Performance:
(Tk. in '000)
Particulars Year - 1 Year - 2 Year - 3 Year - 4 Year - 5
Sales revenue 411,600 441,000 470,400 499,800 529,200
Cost of goods sold 228,048 242,511 256,998 271,511 286,052
Gross profit 183,552 198,489 213,402 228,289 243,148
Administration & selling expenses
1,504 1,517 1,532 1,551 1,573
Operating profit 182,048 196,973 211,870 226,738 241,575
Net profit 115,920 130,845 145,743 160,611 175,448
Ratios:
Gross profit to sales 44.59% 45.01% 45.37% 45.68% 45.95%
Operating profit to sales 44.23% 44.67% 45.04% 45.37% 45.65%
Net profit to sales (%) 28.16% 29.67% 30.98% 32.14% 33.15%
Break-Even Analysis 23.27% (Annexure-8)
Pay-Back Period 4 years 1 months (Annexure-9)
Internal Rate of Return (IRR) 29.16% (Annexure-13)
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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4
2.0 SWOT Analysis:
Strength
The project enjoys an excellent communication network with all infrastructure
facilities being available.
The promoters of the project are well experienced in business management and
operation.
All the sponsors are financially sound and have affordability of equity participation
against their respective shareholdings.
Weaknesses
In order to have competitive edge and cost-effectiveness, production volume
should be considerably high which cannot be made possible without adequate
financial assistance.
If skilled manpower is not available the project‟s desired success may be
hindered.
Opportunities
There is a vast market of the project‟s services which is getting an increasing
trend of usage day by day.
Raw materials used in this industry can be obtained locally. This will enable the
project to charge low prices to the customers and encourage the growth of
commercial bus services to a great extent.
Unlimited growth potential of the transport sector will create backward linkage.
The project is environment friendly and will pose no threat on the environment.
Threats
Low quality raw materials may be supplied from other sources after processing
and cause harm to users to have desired advantages and thus discourage the
growth in this sector.
The project may face some problem in marketing its products in future periods in
case of establishing more farms in the same sector and area.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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5
CHAPTER-1: PROPOSED PROJECT
a. Name of the Company: RANAK ENTERPRISE PVT. LTD.
b. Corporate Set-up: The project is a private limited company.
c. Registration No.: C-120142/14
d. Date of incorporation of the company: 29/12/14
e. Capital:
I. Authorized Capital: Amount Tk. 10,00,00,000.00
Face Value Tk.100.00
Number of Shares 10,00,000
II. Paid-up Capital: Amount Tk. 3,00,00,000.00
Face Value Tk.100.00
Number of Shares 3,00,000
III. Shareholding pattern:
Sl. Name Number of Shares Percentage Position
01 Abu Sadat Md. Mobin
(Ranak) 291000 97%
Chairman &
Managing Director
02 Md. Saifuddin Ahmed 3000 1% Director
03 Rashedul Ahsan 3000 1% Director
04 Abu Rayhan 3000 1% Director
f. Name of the Project: RANAK ENTERPRISE PVT. LTD.
Background of the Project: Sulfuric Acid, also written as sulphuric acid, is a strong
acid composed of hydrogen, sulfur and oxygen. The pure acid is a colorless liquid at
room temperature and is highly corrosive. It is a very important acid in many different
industries mainly because it is one of the cheapest acids to produce. Let’s take a look at
some of the most common applications of this acid.
“Sulfuric acid has many uses in industry.
The amount of sulfuric acid which a country uses in one year can be a measure of that country's economic development
(how modern or wealthy it is).”
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
6
Uses of sufuric acid:
Sulfuric acid is used in the manufacturing process for producing phosphoric acid. This
acid is used to create phosphate fertilizers and trisodium phosphate, which is used in
detergent. Sulfuric acid is also used, together with ammonia, to produce ammonium
sulfate; which is another common fertilizer. Approximately 60% of the worldwide
production of this acid is used to make high quality fertilizers.
Sulfuric acid is also important to the iron and steelmaking industry. It is used in large
quantities to remove rust, oxidation, and other impurities from the product.
Lead-acid batteries used in many different types of vehicles contain sulfuric acid. These
batteries are used to provide
power to the starter motor to
start the vehicle, as well as to
run accessories such as the
stereo system. The sulfuric acid
content of these batteries is
quite high and should be
handled by a trained
professional.
In the concentrated form,
sulfuric acid is also as a
dehydrating agent. It efficiently
draws the moisture and
condensation away from many
substances.
The concentrated form can also
dissolve many nonreactive metals when it is heated.
Sulfuric acid is extremely important to the chemical industry. It is also used to produce
many other important substances such as TNT and nitroglycerin (explosives), aluminum
sulfate (used in paper making), aluminum hydroxide (used in water treatment),
hydrochloric acid and nitric acid. It is also used in the production of many plastics, dyes,
perfume, disinfectant and in the petroleum refining industry.
Annual production of sulfuric acid:
World 200 million tonnes
Europe 19 million tonnes
US 35.8 million tonnes
Russia 8.6 million tonnes1 (as oleum)
Bangladesh 30000 tonnes
Data from:
1. Federal State Statistics Service: Russian Federation 2011
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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7
Manufacture of sulfuric acid:
The process for producing sulfuric acid has four stages:
a) extraction of sulfur
b) conversion of sulfur to sulfur dioxide
c) conversion of sulfur dioxide to sulfur trioxide
d) conversion of sulfur trioxide to sulfuric acid
(a) Extraction of sulfur
Easily the most important source of sulfur is its recovery from natural gas and oil. These
contain sulfur compounds, both organic and hydrogen sulfide both of which must be
removed before they are used as fuels or chemical feedstock.
Another important source of sulfur is as sulfur dioxide from metal refining. Many metal
ores occur as sulfides and are roasted to form an oxide and sulfur dioxide, for example, in
the manufacture of lead:
Other metals manufactured from their sulfide ores include copper, nickel and zinc.
Worldwide about 35% of the sulfur is obtained as sulfur dioxide from sulfide ore roasting
and this is increasing, as plants which traditionally passed the sulfur dioxide to
atmosphere are recovering it as sulfuric acid. In particular, China makes most of its
sulfuric acid from pyrites, an iron sulfide ore.
Sulfuric acid is also obtained from ammonium sulfate, a by-product in the manufacture
of poly(methyl 2-methylpropenoate) and also recovered from 'spent' (i.e. used) sulfuric
acid.
(b) Conversion of sulfur to sulfur dioxide
If sulfur is the feedstock, it must first be converted to sulfur dioxide. Molten sulfur is
sprayed into a furnace and burnt in a blast of dry air at about 1300 K. The sulfur burns
with a characteristic blue flame:
As excess air is used the emerging gas contains about 10-12% sulfur dioxide and 10%
oxygen, by volume. The gases are very hot and so are passed through heat exchangers
(waste heat boilers).
The gases are cooled to about 700 K and the water in the surrounding boiler pipes is
converted into steam. In manufacturing one tonne of sulfuric acid, one tonne of high
pressure steam is also produced.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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(c) Conversion of sulfur dioxide to sulfur trioxide (The Contact
Process)
A typical plant contains one cylindrical vessel which acts as a fixed bed reactor with four
separate beds of catalyst, known as a converter, heated to 700 K, through which the sulfur
dioxide and air pass:
The catalyst, vanadium(V) oxide on silica, is generally in the form of small pellets, to
which caesium sulfate has been added as a promoter (Figure 2). The function of the
promoter is to lower the melting point of vanadium(V) oxide so that it is molten at 700 K.
Figure 3 A flow diagram of the
Contact Process. As shown above, it
is an exothermic reaction so, for a
satisfactory yield of sulfur trioxide
(above 99.5% conversion is needed),
as low a temperature as economically
possible is used. Thus, heat is
removed from the gas leaving each
bed using heat exchangers. The
sulfur trioxide produced is removed
between the third and fourth beds and
flows to the next stage, the
conversion of sulfur trioxide to sulfuric acid.
However, a small amount of the sulfur dioxide is not converted and is passed through the fourth
bed of catalyst and the resulting gases, mainly sulfur trioxide, flow to the next stage.
Based on diagram given by Mike Sellars.
Figure 2 Vanadium(v) oxide catalyst
used for the manufacture of sulfuric
acid. The gas inlet duct can be seen in
the middle of the picture.
By kind permission of Haldor Topsøe.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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9
(d) Conversion of sulfur trioxide to sulfuric acid
The sulfur trioxide formed from the third bed (and the small amount from the fourth bed)
are now converted to sulfuric acid.
Sulfur trioxide reacts with water and the reaction can be expressed as:
However, water itself cannot be used for absorption as there is a large temperature rise,
and a sulfuric acid mist is formed, which is difficult to handle. Instead, sulfuric acid of
about 98% concentration is used. This is kept at this concentration by addition of water
and removal of acid at that concentration. To keep the temperature at about 400 K, the
heat is removed by heat exchangers, Figure 4.
Figure 4 A line diagram illustrating a heat exchanger used in the manufacture of sulfur trioxide.
The gases not absorbed contain about 95% nitrogen, 5% oxygen, and traces of sulfur
dioxide. The gas stream is filtered to remove any traces of sulfuric acid mist and is
returned to the atmosphere using a high stack.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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10
Sulfuric acid is one of the largest-volume industrial chemicals produced in the world. The
production of phosphate fertilizer materials, especially wet-process phosphoric acid, is
the major end-use market for sulfuric acid, accounting for just over 58% of total world
consumption in 2014. However, this share is expected to decline to about 56% through
2019, mainly as a result of higher growth in chemical and industrial applications. About
19% was consumed for about twenty chemical processes, with the balance being
consumed in a wide variety of industrial and technical applications. Major growth drivers
on a global level in decreasing order are use for phosphoric acid, titanium dioxide,
hydrofluoric acid, ammonium sulfate production, and for uranium processing and
metallurgical applications.
The following pie chart shows world consumption of sulfuric acid:
Increased recovery of by-product sulfuric acid at smelters has had a significant impact on
the industry, leading to increased trade in sulfuric acid (since by-product producers are
not necessarily located near acid markets) and forcing some sulfur-burning plants to
close. One portion of the sulfuric acid business that has grown as a result of
environmental restrictions is the portion that regenerates sulfuric acid. Stricter
environmental regulations along with satisfying customer demands and achieving
operational efficiency are resulting in increased spending among sulfuric acid producers
on plant upgrades.
A moderate increase in consumption of sulfuric acid of about 2.0% per year is forecast
for 2014–2019. China is the major market, accounting for about 35.5%, followed by
North America. Africa, Latin America, Eastern and Western Europe and Southwest Asia
are also large users. Fertilizer demand for sulfuric acid is forecast to grow at about 1% per
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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11
year during the forecast period, while demand for chemical and industrial use is expected
to grow at 3.5% for each category.
Sulfuric acid demand will reach nearly 220 million tons in 2017, with the
highest growth in Central and South America, according to a Market Research &
Consulting Ltd. report.
Future growth in sulfuric acid consumption will be driven by increases in population and
the extent to which people in the developing world switch to increased nutrition-rich food
crops that require significant quantities of fertilizers. Growth will also be dependent on
the ability of nations to overcome ongoing economic hardships and credit availability. It
will also be influenced by the rate of increase in production of biofuels, especially corn-
based fuels.
Both supply and demand is poised to increase, but make a more balanced
market leading to price stability. The global annual sulphuric acid production
capacity is estimated to reach 260 million tonnes by 2018 which gives a CAGR of
4.5 percent over next 5 years. KEY OBSERVATIONS:
The production of sulphuric acid on an involuntary basis continues to grow.
Demand for sulphur and sulphuric acid for fertilizers will recover and is forecast
to remain steady.
Demand for sulphuric acid for copper leaching appears to be reaching its peak;
some copper producers are now turning to sulphur burning for strategic and
commercial reasons.
New demand for acid for nickel and uranium leaching will be mainly met by
elemental sulphur.
In the longer term, a rationalisation of sulphuric acid production capacity in some
acid –producing regions will be required, whilst re-investment continues to take
place elsewhere.
In Bangladesh, the annual production of sulphuric acid is only 30000 tonnes which does
not meet the demand of our country. Considering the overall condition and demand of
sulphuric acid in our country and the whole world, sponsors of this company have
decided to set up a modern sulphuric acid manufacturing plant in Bangladesh.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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12
CHAPTER-2: MANAGEMENT ASPECTS
a. Name of sponsor s/Directors of the company, their background and experience:
The name of sponsor- Directors of the company are as bellow:
Sl. Name Position
01 Abu Sadat Md. Mobin (Ranak) Chairman & Managing Director
02 Md. Saifuddin Ahmed Director
03 Rashedul Ahsan Director
04 Abu Rayhan Director
Abu Sadat Md. Mobin (Ranak):
Mr. Abu Sadat Md. Mobin (Ranak) is the Chairman & Managing Director of the
Company. He is Managing Director & CEO of R.Net Group of Companies. He has
also gathered experience from different organizations. He has wide experience in
management matters. He is financially sound and a man of strong personality and
devoted to his commitment.
Md. Saifuddin Ahmed:
Mr. Md. Saifuddin Ahmed is the Director of the Company. He is a graduate. Mr.
Ahmed has gathered huge experience in different sectors. Presently he is engaged
and availing the post Manager (Sales), Nitol Tata Group. Besides this business
experiences he is also a veteran social voluntary worker. He is an energetic
personality. He is financially sound and a man of strong personality and devoted to
his commitment.
Rashedul Ahsan:
Mr. Rashedul Ahsan is the Director of the Company. He is a graduate. Mr. Ahsan
has wide experience in business management. Presently he is a News Producer,
Independent TV. Besides this business experiences he is also a veteran social
voluntary worker. He is an energetic personality. He is financially sound and a man
of strong personality and devoted to his commitment.
Abu Rayhan:
Mr. Abu Rayhan is the Director of the Company. He is a graduate. He has obtained
MBA from USA. Mr. Rayhan has wide experience in different businesses as a
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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13
prominent industrial and business consultant in Bangladesh. Presently he is
engaged and managing CAPTAINS GROUP, a group of companies. Besides this
business experiences he is also a veteran social voluntary worker. He is an
energetic personality. He is financially sound and a man of strong personality and
devoted to his commitment.
b. Comment on the management and financial capabilities and track record:
All the Directors are literate and highly educated. The Managing Director is
energetic, and all the Directors are financially sound.
c. Details of foreign collaboration, if any: Not applicable
d. Names of Directors who will be responsible for supervising the administrative
and technical aspects, both at the implementation and production stages:
Mr. Abu Sadat Md. Mobin (Ranak), Managing Director of the Company will be
responsible for supervising the administrative and technical aspects both at the
implementation and over all stages.
e. Name of key personnel of the company, their background and experience:
It is a proposed project. No key person has been put into employment as yet
whenever required technically qualified and experienced persons will be
employed. However, the Managing Director of the project has required
qualification and relevant experience at this stage of implementation of the
project.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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14
CHAPTER-3: TECHNICAL ASPECTS
A. Location-
i. Area of land: 1. 26 acres.
ii. Condition of land: The area is a fish culture Area. The land is
also suitable for the project purpose. It is comparatively high,
and it is in the flood-free zone. The project site can also be
reached by road. The project site is very close to the main
road. There is a wide road to the project site from that main
road.
iii. Land Value (Not exceeding 30% of total project cost):
Per Decimal Tk. 750,000.00 Tk. 9,45,00,000.00
iv. Location and distance from nearby project: There is no such
type of project nearby this project.
B. Infrastructure-
i. Communication:
The communication network, particularly by road is very good from and to the
Project site to any place in the country. The project site is adjacent to the main
road. The distance of the Project area from Upazila town and Dist. headquarter is
only few km. Through this road, all sorts of motorized transports ply. The
connecting road is metalloid. The project also has the river communication system.
Tele-communication facility is also available in the project site. All these and others
have made the Project site, vis-à-vis the location a unique place for the concerned
business.
ii. Electricity (With Connecting and Required Load and Source):
The site/adjacent area is already blessed with electricity. The required load is 250
KVA, and the source is PBS. For this load and connection up to the project will
have no problem as because the project has got the permission for electricity
connection from the PBS. Relevant paper has been enclosed herewith.
iii. Water (with source and cost details):
For the project a water reservoir tank would be made to meet factory, office and
other needs. For this purpose, a water storage facility with capacity of 90,000 liters
will be constructed, and a deep tube well with submersible pump will be setup.
iv. Gas (With Source and Cost details): Natural gas is available
adjacent to the project.
C. Technology (Description including availability and risk of the technology):
The technology is capital and labor intensive. But the technology is easy to handle
by the working persons. The raw materials and machinery equipment are mostly
available at the most reasonable price. As there are skilled persons to handle all
machinery and equipment of the project, there is no risk involved in handling the
operations of the projects.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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15
D. Civil works
- Type of building and specifications of construction, covered
area, estimated cost and development of land require as below:
Sl. No.
Item of building and other civil works
Specification Size & covered area Rate in Tk./Sft.
Total Cost
1 Factory Basement RCC 240'x120' 28800 Sft. 1,200
34,560,000.00
2 Control Room RCC, pacca 40'x60' 2400 Sft. 1,600
3,840,000.00
3 Overhead water tank 90000 LT
RCC LS 2,500,000.00
4 Ware house RCC, pacca 80'x60' 4800 Sft. 1,600
7,680,000.00
5 Power supply room RCC, pacca 40'x40' 1600 Sft. 1,600
2,560,000.00
6 Office Building RCC Semi pacca
75'x60' 4500 Sft. 1,800
8,100,000.00
7 Boundary Wall 1320 rft 950
1,254,000.00
8 Internal road RCC 275'x20' 5500 Sft. 400
2,200,000.00
Total 62,694,000.00
E. Machinery & Equipment:
The list of required machinery for the plant is given bellow.
List of Capital Machinery
SL No. Particulars Qty (SET) Rate Amount in Tk.
1 Plant Machinery & Equipment As Given Bellow 304000000 304,000,000.00
Loader Q=2T 1
Hopper V=3m3 1
Belt conveyor B=500 L=17.5m 1
Quick sulfuric melting trough Φ3200×2300mm
1
Corase sulphur, filtration , fine sulphur trough 15000×3000×1600mm
1
Fine sulfur pump Q=2m3/h H=80 m 2
Sulphur spray 2
Oil tank Φ1800/600,L=3200 1
Oil spray 2
Oil pump KCB-33.3-1 1
Air blower Q=300m3/min H=35m 1
Sulphur burning furnace 1
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
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16
Φ2300×10000mm
Waste heat boiler Q=4.5t/h 2.45MPa 1
Boiler complement equipment 1
Water softening system Q=5t/h 1
Furnace gas filter Φ3600×4000mm 1
Dividing cylinder DN500 1
converter Φ3600×15000 1
Cold-hot exchanger F=410 m3 1
Hot-hot exchanger F=145 m3 1
Air cooler 1 F=70 m3 1
Air cooler 2 F=275 m3 1
1 section electric furnace N=480kw 1
4 section electric furnace N=300kw 1
Ventilator Q=20000m3/h H=2KPa 2
Drying tower Φ2000×13000mm 1
Absorption tower Φ2000×13000mm 2
Dry absorbing circulating trough Φ3600×2200mm
3
Underground trough Φ3000×2000mm 2
Acid cooler (plate type) F=75 m2 1
Acid circulating pump Q=100m3/h H=30m
4
Underground pump Q=20m3/h H=30m 2
Acid measure trough Φ3000×5400mm 1
Acid storage trough 1000t 2
chimney Φ600×40m (with tower frame)
1
Manual gourd Q=2T 2
Manual gourd Q=5T 1
tail gas absorbing tower Φ1800 1
tail gas absorbing tower circulating trough Φ2500×2000mm
1
Lye trough Φ2000×2000mm 1
Tail gas absorbing tower cycling pump Q=60m3/h H=25m
2
Lye pump Q=10m3/h H=25m 1
Cool water tower Q=500m3/h 1
Water cycling pump Q=500m3/h H=35m
2
Chemical adding device 1
Process non-standard equipment and standard parts
1
Technics pipes, valves, gaskets, etc. (includes heat work)
1
Isolation 1
Platform, bracket 1
Low voltage electrics (lighting, thunder defending and earthing are not included)
1
Electric control meters 1
Design cost 1
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
17
Freight cost to Shanghai Port with Duty & Tax
LS LS 45,600,000.00
2 Water Treatment Plant 2 25000000 50,000,000.00
3 Generator, 250kva 1 7500000 7,500,000.00
4 Sub-Station with Electric Cables 1 6000000 6,000,000.00
5 ETP Plant 1 3500000 3,500,000.00
6 Other Equipment 1 1500000 1,500,000.00
Total Price 418,100,000.00
i. Erection and installation:
The machinery and equipment of the project will be installed
and commissioned and shall go for trail run by locally available
technicians under the direct supervision of local experts and
sponsor. The cost of erection including civil, mechanical &
electrical installation of the machinery and equipment is
estimated as Tk. 85,00,000.00
ii. Technology transfer, if any:
iii. Safety provision:
There will be safety provision as required following the
standard as required by the Govt. of Bangladesh.
iv. Waste disposal and treatment:
There will be scientific provision for waste disposal and treatment as
necessary.
F. Vehicles:
The following vehicles are estimated to be needed to operate the project smoothly. List of Vehicles:
Sl. No. Description Quantity Amount (Tk. in '000)
01. Truck 15 MT 2 7000
02. Pick-up van 3 MT 5 11000
Total cost 18000
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
18
G. Furniture and fixture: The required furniture & fixtures for the project will be
as under:
Srl. Items Qty Unit Rate in Tk. Total (Tk . ‘000)
01. Full Sec. Table 4 Nos. 60,000
240
02. Table 5 Nos. 25,000
125
03. Conference Table 1 No. 150,000
150
04. Front Chair 10 Nos. 5,500 55
05. High Back Chair 5 Nos. 20,000
100
06. Chair (Visitor) 15 Nos. 4,500 68
07. Chair (Wood) 10 Nos. 6,000 60
08. File cabinet 2 Nos. 15,000
30
09. Steel Almirah 1 Nos. 18,000
18
10. Miscellaneous LS 20
Sub-Total 866
H. Office equipment: The required Office equipments for the project will be as under:
SL Item Qty Unit Rate per Unit
Total (Tk . ‘000)
1 Fan (Ceiling) 15 Nos. 1,600
24
2 Calculator 10 Nos. 500
5.00
3 Telephone/Mobile 10 No. 4,000
40
4 Computer with UPS, printer complete set 10 No. 35,000
350
5 Fire fighting equipment with first aid box 1 Lot 85,000
85
6 Air Cooler 3 Nos. 45,000
135
Sub-Total 639
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
19
I. Products:
Item Qnty (MT) Rate in Tk. Amount (in Tk. '000)
Sulphuric Acid 100% 30,000 #REF! 19,600 588,000
Total0 30,000 Total Tk: 588,000
*24 hours per day
J. Raw Materials: Cost of Raw and other feeding materials:
Raw will be purchased which is shown in the diagram based on 100% capacity in a year is stated bellow:
Items Qty (MT) Rate in Tk. Amount (in Tk. '000)
Sulphur 10,000 20,000 200,000
Packaging & Transport LS 60,000
Other LS 2,500
Total Tk: 262,500
K. Production Flow Diagram:
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
20
L. Manpower:
1. Production: (Tk. in '000)
Category/Designation No. Tk./Month Total Tk./ year
Factory Manager 1 50,000 600.00
Production Manager 3 40,000 1,440.00
Chemist 1 50,000 600.00
Driver 7 15,000 1,260.00
Supervisor cum Operator 6 25,000 1,800.00
Assistant 6 20,000 1,440.00
Security Guard 5 6,000 360.00
Skilled Worker 5 8,500 510.00
Unskilled worker 12 4,000 576.00
Total : 46 218,500 8,586.00
2. Administrative
(Tk. in '000)
Category No. Monthly salary
Annual salary
General Manager 1 60,000 720
Manager Admin. 1 28,000 336
Accountant 1 25,000 300
Purchase Officer 2 22,000 528
Sales Officer 2 15,000 360
Account Assistant 2 12,500 300
Driver 1 10,000 120
Security Guard 2 8,000 192
Cleaner/Gardener/Peon 3 6,500 234
Total 15 257,500 3090
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
21
M. Over Head Expenses:
Repairs & maintenance:
Cost for repair & maintenance of Machinery has been estimated at @ 0.1%, 0.2%, 0.3%, 0.4%, 0.5%, 0.6% & 0.7% in 1st, 2nd, 3rd, 4th, 5th, 6th & 7th year respectively.
For building it has been estimated @1% of civil cost for each year. For Vehicle it has estimated @ 1% of cost of Vehicle for each year.
Based on the above assumptions the year wise repair & maintenance cost has been calculated as under:
Items Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7
Buildings 627
627
627 627
627
627
627
Machinery & Equipment 418
836
1,254 1,672
2,091
2,509
2,927
Vehicle 180
180
180 180
180
180
180
Total : 1,225
1,643
2,061 2,479
2,897
3,316
3,734
Rent, Tax & Insurance
It has been estimated at 1% on the total fixed cost of the project. Trasportation Charge
Inland Transportation & Others 0
Depreciation
Based on straight line method the depreciation has been calculated as shown below:
(Tk. in '000) Items Cost Rate Depreciation
Building 62694 5% 3,135
Machinery & Equipment 418100 5% 20,905
Furniture & Fixture 1504.5 5%
75
Vehicle 18000 5% 900
Total: 25,015
Water, Power and Fuel
Water: Total requirement of water will be about 90,000 ltr.Required water will be available from own tube-wel to
be sunk within the project site.
Power: The power requirement of the project will be met by obtaining power connection from REB. A sum of the
following amount has been estimated to be incurred for the power consumption.
Details given below:
187.5 kw x 24 hrs x 300 days x Tk. 4.50
Tk. 6,075,000
Demand charge for 250 KVA
Tk. 125,000
Service charge Tk. 9,375
VAT Tk. 303,750
Total: Tk. 6,513,125
Gas: Tk.5,00,000/year
Total Tk. ( Water, power, fuel ) =
7,013,125
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
22
N. Implementation Schedule:
01. Sanction of Bank 1st month
02. Documentation completed 2nd month
03. Construction & Civil Works, etc. 3rd month
05. Purchase of Machinery
3rd month
06. Construction completed, Arrival of Machinery & Installation of Machinery Start 7th month
07. Installation completed 15th month
08. Trial run & normal operation 18th month
Note: It is expected that the project will be completed and put into normal operation
with 18 (Eighteen) months from the date of sanction of the Bank.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
23
CHAPTER-4: MARKETING ASPECTS
a. Products/Services: The project products/service will be Sulfuric Acid. These
will be produced regularly as per capacity of the concerned machinery and equipment.
b. Usages of the products/services: The following are the probable usages of
the project products:
Sulphuric Acid - End Uses.
c. User of the products (in detail): The probable users/end-users of the
products will be as follows:
Fertilizer Industries
Chemical Industries
Paper Industries
Rubber/Plastic Industries
Other Industries
d. Target Market:
Local markets
International markets
Sulphuric Acid Long-Haul Trade 2006
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
24
e. Demand Situation and Demand Forecasting: The idea for establishing the
concerned project virtually sprang from the existing huge demand for the products
compared to the existing supplies. Inter-alias, it was also assumed that, under the
existing limitations/inhibitions, with the process of time, demand would further outstrip the
supplies. This situation might further aggravate if electricity supply cannot cope with the
ever-increasing need for the same. However, this will be evidenced from the following
facts and figures pertaining to existing demand and demand forecast
World Sulphuric Acid Supply Trends:
f. Supply Situation and Supply Forecasting (in detail): In the face of above
existing demand and demand forecasting of the concerned products, the supply is not
increasing in equal momentum. Supply is increasing, but at a decreasing rate, resulting
which, with the passage of time, there will be a pressing need for increasing production
and supply of the concerned goods. However, this will be evidenced from the following
facts and figures pertaining to existing supply and supply forecast.
g. Demand Supply Gap (in detail): From (e) and (f) above, the following
inferences may be drawn:
Presently, there is a big gap between demand for the concerned products
and supply of them, and demand has outstripped the supply in big scale.
If compared to vast demand, production, vis-à-vis supply does not increase
more than proportionately, then, in near future (not to talk about far reaching
stage), the situation will aggravate further.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
25
As a result, it is recommended, more and more entrepreneurs should be
factually, effectively and realistically encouraged to establish and operate
more and more similar type of industries/enterprises.
h. Competition and Competitors: The terms „competition‟ and „competitor‟ not
only depend on the numbers, but also depend on the quality of the products. Moreover, it
is not always that demand creates supply, but many of the times, supply also creates
demand. However, in the concerned case, both are equally applicable. Particularly, in
absolute term, and in the present supply status of the concerned goods, there is still no
keen competition and numerous competitors. So, the scope for production and sale of
the concerned products are enormous. In this case, however, the project has one
absolute advantage, which is that, it will produce and supply quality products in sizeable
quantity. That too, with unhindered supply through out the year. This will give it an
advantage to capture assured markets and clients. In this situation, the project need not
to bother about competition and competitors
i. Distribution Channel: The proposed products of the project will be marketed
by using mainly the following channels of distribution:
The sponsors will appoint/engage distributor/ agents to sell the project‟s products to
agents, whole sellers & consumers directly from the project site.
The project will also have its own sales centre to distribute the products to agents,
whole sellers & consumers directly.
j. Promotion: The marketing strategy of the project is to create awareness of its
product among its customers by an aggressive advertisement through mass media such
as newspaper, television, radio etc. They may also publish leaflets or various types of
stickers to make consumers attraction about product quality and price. By all means, all
efforts will be exercised to ensure quality products and to uphold uninterrupted supply of
product in order to maintain the supremacy over the market as quality product producer.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
26
CHAPTER-5: FINANCIAL ASPECTS
a. Assumption for financial analysis: Feasibility Report: Annexure-1
b. Cost of the project and means of finance (With Details of every element):
Feasibility Report: Annexure-2(a) & 2(b)
c. Estimate of working capital: Feasibility Report: Annexure-3
d. Sales estimate (in details): Feasibility Report: Annexure-4
e. Projected income statement: Feasibility Report: Annexure-5
f. Cost of service/goods sold:
i. Fuel Cost: Feasibility Report: Annexure-6(a)
ii. Labor Cost: Feasibility Report: Annexure-6(b)
iii. Over head Cost ( Power, Fuel, Water, Maintenance, Depreciation etc.)
Feasibility Report: Annexure-6(c)
g. Gen., administrative and selling expenses: Feasibility Report: Annexure-7
h. Break-even analysis: Feasibility Report: Annexure-8
i. Pay-back period: Feasibility Report: Annexure-9
j. Cash-flow statement: Feasibility Report: Annexure-10
k. Projected balance sheet: Feasibility Report: Annexure-11
l. Debt-service coverage ratio: Annexure-12
m. Internal rate of return: Feasibility Report: Annexure-13
n. Ratio analysis: Feasibility Report: Annexure-14
o. Sensitivity analysis: Feasibility Report: Annexure-15
CHAPTER-6: ECONOMIC ASPECTS
a. No. of jobs created : 61
Male : 40 Female: 21
Full Time/ Part Time 61 Full Time / Part Time 0
b. Cost per job created : Tk. 9730.00 per month
c. Contribution to GDP : Tk. 279,939,000 at 5th year
d. Earning in foreign exchange or foreign exchange savings:
about Tk. 529,200,000 per annum
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
27
CHAPTER-7: CONCLUSION The Project
The project to be set up and established is sulfuric acid plant capable of producing
sulfuric acid that can be used in different industries. There is a great demand in local and
international market of the products of the project. It will reduce the huge demand-supply
gap of sulfuric acid in the country to the extent of its production capacity. There is no
such project within 10 kilometers distance of the proposed project.
Management
The overall management and operation of the project will be under the joint supervision
and guidance of the promoters. They all are well experienced in business management
and operation. The Managing Director of the project has management capabilities and
skill to handle such type of project. The other director of the project has also knowledge
regarding the project. All the sponsors are financially sound and have affordability of
equity participation. The sponsors management and financial track record are
satisfactory.
Marketing
Proper marketing management is one of the main challenges of success in a business.
The project has ready market in the country and abroad. In fact, Bangladesh has bright
prospect sulfuric acid production and marketing than other neighboring countries.
Technical
The technology and process involved in this type of industry is not very uncommon in the
country. The required technical personnel will also be available. The raw materials and
other necessary materials are available at reasonable price.
Financial
From the financial point of view, the project seems to be rewarding and viable. The IRR
of the project is 29.16%, which suggests a sound cash flow for the project. The other
evaluating factors are also satisfactory in case of the project. The after tax return of the
project is calculated as follows:
Return on Total Assets : 26.32% (4th year)
Return of the project‟s total capital outlay : 23.69% (4th year)
Considering all aspects, as stated above, it can be concluded that the proposed project
has a good potential for investment, and if it is implemented, it will certainly make a
significant contribution to the ultimate development of the country.
RANAK ENTERPRISE PVT LTD. A MODERN SULPHURIC ACID MANUFACTURING PLANT IN BANGLADESH
Hotel Shining Touch Building, House # 97 (4th
Floor), Road # 13, Ranavola Avenue, Sector # 10, Uttara, Dhaka-1230.
Prepared by: CBECL – www.cbecl.com www.cbecl.info
28
This profile is not complete. Please contact us for complete profile
Prepared by…………………..
CBECL House # 06,(1
st floor), Road # 3/B, Sector # 09, Uttara, Dhaka-1230
Phone:01716752370 , Website : www.cbecl.com www.cbecl.info