oil and ghee mill
DESCRIPTION
Project Feasibility Report of Oil and Ghee Mill.The Islamia University of Bahawalpur, Pakistan.TRANSCRIPT
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
By Islamian Business Executives 1
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
In the Name of Allah,
The Most Beneficent,
The Most Merciful.
Read:
In the Name of your Lord
Who Created, Created Man from a Clot.
Read:
And your Lord is the most Bounteous,
Who taught by the pen,
The man that which he did not Know
Al-Quran
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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
“ALLAH DOES NOT LOOK AT
YOUR FORMS AND POSSESSIONS
BUT HE LOOKS AT YOUR
HEART AND DEEDS”
(MUSLIM)
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By Islamian Business Executives 4
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
DEDICATED TO ALLAH
The Almighty
The Omniscient
The Omnipotent
The Omnipresent
The creator of creative mind.
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PREFACE
By Islamian Business Executives 6
Submitted To:Mr. JAVED IQBAL
Submitted By: Group # 1 Roll no.
Mr. Sajjad Hussain 24
Mr. Zahid Ghafoor 36
Mr. Faisal Rashid 12
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
Department Of COMMERCE has always tried to make its students be familiar
with the different techniques in the field of Project Appraisal in order that they
can understand & present the concepts of Project Appraisal in the light of
present-day progress & development.
The importance of principal work almost exists in every professional field.
Practical knowledge makes man a technical person who enables to do every work
promptly regarding his profession. The very distinctive feature of the degree of
MASTER OF COMMERCE is that it stresses more on the practical aspects of
study. Our teachers have extremely realized this importance & they use all the
tact’s to expose us to the real field circumstances.
Project Appraisal has become a common phenomenon now-a-days. We have
also endeavored to consolidate in this assignment all the important features of
the topic. Every effort has been made to incorporate all the available means of
information to make this assignment exhaustive & comprehensive. We tried our
best to accomplish our work with honesty and diligence.
Mr. Sajjad Hussain
Mr. Zahid Ghafoor
Mr. Faisal Rashid
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Acknowledgement
Special thanks to Almighty Allah, creator of the creative minds.
We pay abundant thanks to our encouraging teacher & instructor
Mr. Javed Iqbal Chairman Department of Commerce for enlightens
our minds with the rich information about the topic.
SPECIAL THANKS
Mr. Arshad Javed, Arshad Chudhary & Management of Asia Ghee
Mills Pvt. Ltd. Ahmed pur Road Bahawalpur.
Bahawalpur State Agency Bahawalpur.
District Govt. building department Saddar Pulli Bahawalpur.
MEPCO Office
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OIL PLANT
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Table OF Contents
Sr. No Particulars Page No.
1 Executive Summery 12
2
Introduction & Estimated Cost of the
Project 17
3Name of Machinery Supplier
18
4Implementation Schedule
19
5Management
20
6Sponsors
21
7Introduction to Industry
22
8Market Analysis
24
9Raw Material
26
10Technical Analysis
28
11SWOT Analysis & Financial Ratios
30
12Manufacturing Process
31
13Economic Analysis
45
14Financial Statements
46
15Visits Highlights
68
16Conclusion & recommendation
69
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Sr. No ParticularsPage No.
1 Cost of Land 46
2Cost of Civil Work
47
3Cost of Plant & Machinery
48
4Estimated Cost of project
49
5Pre-Production expense
50
6Initial Working Capital
50
7Production at 100% capacity
51
8Raw Material Requirement
52
9Cost of Labor
53
10Manufacturing over head
55
11Admin, General and Selling Expense
56
12Depreciation
58
13Unit of Production and Sale
59
14Load Re payment schedule
61
15Estimated Income Statement
62
16 Estimated Balance Sheet
64
17 Estimated Cash flow statement
66
18 WACC & IRR & Payback Period
67
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
EXECUTIVE SUMMERY
1. The projectThe project
NAIMAT Oil & Ghee Mills is a manufacturing plant proposed to set up near Ahmad pur East,
Karachi road Bahawalpur. The proposed project site enjoys the benefits of easy availability of
raw material, quick access to the markets of Pakistan as it is located on the main road, source
of power and electricity & transportation. The project will be equipped with most locally
manufactured plant and machinery and rest of equipment will be imported from China.
2.2. LocationLocation
The proposed project contemplates to set up a new Oil & Ghee Mills 2 km from Ahmedpur
East. The proposed project site enjoys the benefits of 1) easy availability of raw material, 2)
quick access to main road, 3) sources of power, water, fuel etc., 4) availability of Transport
and modern Communication systems, 5) availability of Skilled and Un-Skilled labor, and 6)
free from environmental hazards like water logging and salinity and floods.
3. COMPANY ADDRESSCOMPANY ADDRESS
SITE EDDRESS
2 km from Ahmed pur East at National Highway.
4. Product’s Range
A. Cooking OIL
B. Vegetable Ghee
C. Laundry Soap
Cooking will be in the packaging of 1 kg, 2.5 kg and 5 kg and Vegetable Ghee will be in the
packaging of ½ kg, 1 kg, 2.5 kg, 5 kg, 10 kg and 16 kg.
5. MarketMarket
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Our site is centrally located in Pakistan from where we can easily get access to the markets
of the country. We have some competitors but its success and profitability is very much
related to its low cost and high quality. Oil and Ghee is basic ingredient of every meal so it
has high demand locally and nationally. Oil and ghee are also exported to Afghanistan and
Central Asian countries.
6. PlantPlant capacitycapacity
The 100% capacity of plant is 150 Tons per day, of which 50 Tons would be the production
of cooking oil and 100 Tons of Vegetable Ghee. We will start production from 60% capacity
and will be increased 10% every year.
7. MaterialMaterial andand inputinput
The basic raw material required for producing cooking oil is Canola oil which will be
imported from Canada and Palm Olein oil for ghee will be imported from Malaysia. Other
inputs like Caustic Soda, Bleaching Earth, Common Salt, Antioxidant, Citric Acid, and
Nickel Catalyst are available in Pakistan.
8. ProjectProject EngineeringEngineering
The plant and machinery used for production consist of Storage Section, Pre-Refining
Section, Hydrogenation Section, Post-Refining Section, Ghee Filling Section, Refrigeration
Section, Steam Generation, Soap Section, Water Pump Section, Hydrogen Gas Generation &
Storage Section, Electric Section, Mechanical workshop.
9. ManMan PowerPower
Mainly three types of man power is required, production labor consist of 21 skilled, 24 semi
skilled and 32 unskilled and 25 Admin staff that includes skilled workers, chowkidar and
peon.
10. ImplementationImplementation :
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The total time period for the installation & execution of output is estimated to be 6 months
from the date of approval of finance.
11. EstimatedEstimated CostCost : Rs.
Total fixed cost of project 327,602
+ Initial permanent working capital 790,091.18
Total cost of Project 1,117,693
12.12. Financial analysis/means of financing:Financial analysis/means of financing:
Sixty percent of estimated cost of the proposed project will be obtained through loan and
remaining 40% will be contributed by the owner.
Rs. (000)
Debt 670,615.95
Equity 447,077.30
Debt equity Ratio
60%: 40%
13.13. Financial Assistance:Financial Assistance:
Rs. 670,615.95 will be obtained from Muslim Commercial bank limited Bahawalpur at 16% per
annum
14.14. Estimated operating Results:Estimated operating Results:
ITEMS 2011 2012 2013
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Rs.000 Rs.000 Rs.000
Sales 2,868,413 3,633,323 4,187,882Gross profit 1,114,181 2,156,535 2,441,263
Operating profit 1,046,095 2,072,078 2,344,536
Net profit 486,229 1,064,715 1,222,734
15.15. Financial Position: Financial Position:
(Rs.000)
ITEMS 2011 2012 2013
Current Assets 2,708,657 4,901,208 7,034,783
Fixed Assets 293,180 293,180 293,180
Intangibles 0 0 0
16.16. Financial Ratios: Financial Ratios:
(Rs.000)
ITEMS 2011 2012 2013
Current Ratio2.23 2.79 3.34
Quick Ratio1.95 2.50 3.03
Debt Ratio %58% 44% 35%
Gross Profit Ratio% 39% 34% 33%Operating profit % 39% 34% 33%Net Profit Ratio% 17% 15% 15%
Financial IndicatorsFinancial Indicators
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Project costProject cost IFRRIFRR WACCWACC
56%56% 9.84%9.84%
Machinery Suppliers
New Chaudhary agricultural and mechanical engineers
Multan Pakistan
Company Name: New Chaudhary Agricultural Mechanical Engineers
Street Address: Chowk Bwp, Muzaffar Garh Road
City: Multan
Province/State: Punjab
Country/Region: Pakistan
Zip: 60000
Telephone: 092-061-6527607
Mobile Phone: 09203008737610
Fax: 092-061-6529693 & 092-061-4233706
Website: http://www.newcame.com
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THE PROJECT INTRODUCTION
The proposed project contemplates to set up a new Oil & Ghee Mill Unit at Karachi Road
near4 Ahmadpur East The annual rated production capacity of the plant is estimated about 150
ton of which 5o ton oil and 100 ton ghee working 350 days a year and tripled shift per day of 8
hours each. The project shall be equipped with latest locally manufacturing plant and
Machinery.
Estimated Cost of the Project (Rs. 000)
Total Fixed Cost 327,602
Initial Fixed Working Capital 790,091.18
Total 1,117,693
Means of Finance
The Cost of the Project is proposed to be financed by Debt and Equity in the ratios of
60: 40 respectively.
Equity 447,077.30 Debt 670,615.95
Total 1,117,693.25
TERMS AND CONDITIONS:
1. Proposed name of the project need to be mentioned.
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2. Sponsors contribution will be 40% of the total cost of the project.
3. The amount of the loan will be deposited into the joint account with The
Muslim Commercial Bank.
4. Land will be purchased and transferred to the company name.
5. Land will be pledged with the Muslim Commercial bank as security.
6. Final Contract with material, machinery, suppliers and Civil Work need to
be disclosed to the Loan Sanctioning Bank. (MCB)
7. Loan is to be repaid in 10 equal annual installments to the Muslim
Commercial Bank.
8. For further financial assistance approval from Muslim Commercial bank is
necessary.
9. Accessories and utilities will be arranged as per the contract by the contract
of civil work himself.
Name of Machinery Supplier
New Chaudhary agricultural and mechanical engineers
Multan Pakistan
Company Name: New Chaudhary Agricultural Mechanical Engineers
Street Address: Chowk Bwp, Muzaffar Garh Road
City: Multan
Province/State: Punjab
Country/Region: Pakistan
Zip: 60000
Telephone: 092-061-6527607
Mobile Phone: 09203008737610
Fax: 092-061-6529693 & 092-061-4233706
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Website: http://www.newcame.com
NAIMAT Oil & Ghee Mills
IMPLEMENTATION SCHEDULE
S.NO. ACTIVITIES MONTH YEAR
1 Acquiring of Land & leveling Start 1st Jan 2010
Complete 30th Jan 2010
2
Engineering studies and designing of civil work
Start 2nd Feb 2010
Complete 10th Mar 2010
4 Order for local machinery 15th Sep 2010
5 Construction of building and civil work Start 1st Apr 2010
Complete 30th Sep 2010
6 Arrival of local machinery at site 15th Oct 2010
7 Erection and installation of machinery Start 20th Oct 2010
Complete 30th Nov 2010
8 Order for raw materials 20th Nov 2010
9 Trial run Start 10th Dec 2010
Complete 25th Dec 2010
10 Start of commercial production 1st Jan 2011
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Management
The overall management and control of the firm will be actively managed by its active
partners who will actively participate in management decisions and control the affairs
of the firm.
Partners Name Designation
1. Mr. Javed Hussain Managing Director
2. Mr. Faisal Rashid General Manager
4. Mr. Zahid Ghafoor Production Manager
5. Mr. Sajjad Karim khan Finance Manager
The partners will contribute equally in the equity of the project and will equally participate in
the profit and loss of the firm's business.
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Sponsors
The sponsors of the project are professionally qualified and have valuable and extensive
experience of business management in industrial fields. They have got good trading contacts
and market reputation in the industry... The sponsors experience would assist the firm in its
smooth and profitable operations.
The sponsors are financially sound and capable to contribute their part of equity in the
proposed project.
The Sponsors detail is as under:-
1. Name : Mr. JAVED HUSSAIN
Address : Bahawalpur.
Qualification : MBA
Experience : 10 years
2. Name : Mr. FAISAL RASHID
Address : Khair Pur Tamewali Bahawalpur
Qualification : M.COM (Finance)
Experience : 2 years
3. Name : Mr. ZAHID GHAFOOR
Address : Alipur Distt. Muzaffar Garh
Qualification : M.COM (Finance)
Experience : 2 years
4. Name : Mr. SAJJAD KARIM KHAN
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Address : Uch Sharif Tehsil Ahmedpur East Distt. Bahawalpur
Qualification : M.COM (Finance)
Experience : 2 years
Introduction to Industry
The manufacture of Vegetable Ghee/ Cooking Oil in the organized sector contributing around
Rs.30 billion annually to the government exchequer in the form of Custom Duty, Federal
Excise Duty and Income Tax etc. Ghee & Oil Units are not only catering to the needs of
Pakistan’s whole population, but also supplying this dietary item of daily use to the people of
neighboring countries. The export of the Vegetable Ghee to Afghanistan and the Central Asian
States via land route through Torkhum and Chamman borders is a good source to earn
precious foreign exchange for our country. In addition of boosting trade relations with these
countries that’s why the future of this industry is bright in Pakistan.
Industry Background and HistoryIndustry Background and History
Ghee industry was introduced in the sub continent in mid thirties, and since then it has grown
tremendously in face of all environmental hazards. It has been subjected to serious edible Oil
shortages, government inconsistent policies and severe variations between demand and supply
in the domestic market.
There are about 150 units of edible oil and oil extraction in Pakistan, involved in extraction
and production of various types of cooking oil and ghee. However, the number of ghee
manufacturer's registered with PVMA at present are 95.
The country which was self sufficient in edible Oil production (0.154 million MT), till 1960,
and paying not a single dollar against the import bill, is today importing well over 1.160
million MT against an import bill of no less that Rs.33000 million per year, being the third
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largest edible Oil importing country of the world, after China and the European Union. All
these imports originated from Malaysia.
During the past 21 years of interrupted and partially half hearted efforts of successive
governments since 1979, the country has been able to procure only 0.5 million MT of edible
Oil from indigenous resources while the rest of the 1.1 million MT is procured from imports.
The share of ghee & cooking oil in large scale manufacturing is 7.4 percent. During the last
seven years (FY01-07) the average annual growth for ghee/edible oil production is about seven
percent
The structure of Ghee/Oil industry is just like all the other developing industries of Pakistan.
There are certain well-established companies working with good brand names, serving the
nation as a whole. Along with them there are certain units, which are working in limited areas,
meeting the requirements of these niche markets. Some of the vegetable Ghee mills are
working under the control of government and other are held privately.
The raw material required for the production of Ghee/Oil is imported from different countries
and this is the biggest imported item in food category. The prices of Ghee/Oil are very much
influenced by the duties on these imports and the international price fluctuations of these
items.
In early 1990’s there had been a serious crisis in the Ghee industry, and the main reason for
this was that production of Ghee was greater than the demand. In this period due to the heavy
looses on account of these units government privatize so many Ghee producing units.
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Vegetable Ghee is the commercial term for vegetable Oil hardened by the process of
hydrogenation. Cottonseed, soybean Oil, Sun Flower Oil, corn Oil, is being mainly used in
Pakistan for the manufacturing of Oil/Ghee. Pakistan is importing Palm Oil and Soya bean Oil
from America, Indonesia and Malaysia. During 1999-2000 Pakistan imports of soya bean Oil
and palm Oil has drastically decreased both in quantity and value. Pakistan imported soya bean
Oil worth $75.8 million and Palm Oil $267.8 million in year 1999-2000.
Market AnalysisMarket AnalysisPakistan is the third largest importer of edible oil as only around 27.0 percent of its
requirement is met through domestic production. Pakistan: Per Kg Consumption of Vegetable
Ghee Per Annum Is Lower Than EU, USA and Russia But Is Above India and Bangladesh
(18.86 Kg per Annum per Person)
The remaining needs are met from imports of various edible oils. The ghee and cooking oil are
the basic food items of human diet all over the world. With the passage of time the overall
production as well as consumption of ghee & cooking oil has significantly increased in
Pakistan
CompetitorsCompetitors
In Pakistan ghee industry is flourished over the years. Today there are many Locals and
National companies as well as international companies engage in the production of ghee and
oil working in Pakistan.
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Among multinational companies includes Lever Brothers (Pvt.) Ltd. They manufacture
DALDA and PLANTA cooking oil and ghee. Some other companies are as follows.
1) Al Hilal Vegetable Ghee Mills engages in the production of Sultan Banaspati Ghee. It is
situated in Multan.
2) Shahbaz Ghee Mills is engage in the production of Shahbaz Banaspati. It is situated in
Rahim Yar Khan.
3) Wazeer Ali Industries Ltd. engages in the production of Tallo Banaspati ghee and cooking
oil. It is situated in Hyderabad.
4) Fatima Enterprises Ltd.
5) Rafhan Maize Product Company involved in the production of Rafhan Corn Oil and it is
situated in Faislabad.
6) Ahmad Food Industries manufactures Ahmad Soya bean Oil.
7) Ghee Corporation of Pakistan (G.C.P) under which 26 units engaged in the production of
ghee is working all over the country.
Apart from these combines there are many other firms manufacturing ghee. Now Brothers
ghee and Oil Mill is entering in the market.
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Raw material:
The basic raw material required for producing cooking oil and vegetable ghee is Canola oil,
Palm oil and Palm alien. These raw materials are not locally available; they would be imported
from Canada and Malaysia. There are some other input materials which are necessary for
production but they are available in Pakistan. List of raw materials and their prices are listed
below.
Cooking Oil
Raw Material
Quantity Price Rs (000)
Canola Oil (Tons) 17500 86000/Ton
Caustic Soda (Kg) 102000 25/kg
Fuller Earth (Kg) 204000 30/kg
Common Salt (Kg) 26000 3/kg
Antioxidants (Kg) 3400 160/kg
Vegetable Ghee
Raw Material
Quantity Price Rs (000)
RBD Palm Olein Oil (Tons) 32,000 75000/ton
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Caustic Soda (Kg) 75,000 25/kg
Fuller Earth (Kg) 67,000 30/kg
Common Salt (Kg) 50,000 3/kg
Citric Acid (Kg) 7000 120/kg
Nickel Catalyst (Kg) 5000 1400/kg
Project demand, Products and product mix:
The main products of the company are cooking oil and vegetable ghee and by-products will be
laundry soap and carbon dioxide gas. At 100% capacity, annual production of cooking oil will
be 17500 Tons, vegetable ghee 32000 Tons and Laundry soap 1050 Tons.
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TECHNICAL ANALYSIS
Location of the Project
The project is proposed to set up at Karachi Road near Ahmadpur East. The site enjoys the
following advantages:-
- Easy availability of raw material
- Access to the main road, Sources of Power, water, fuel etc.
- Availability of transport & communication like telephone, Internet etc.
- Availability of skilled and Un-Skilled manpower
- Free from other environmental hazards like water logging, floods, salinity etc.
Utilities
Main utilities required for project are gas, electricity, water, and transportation and disposal
arrangement.
Gas
Gas is very important for our project because our production process needs steam. And
hydrogen gas. So we have planned to get commercial connection of gas from Sui northern gas
pipelines limited, main line of gas is 1.5 km away from the proposed site
Electricity
Machinery can not work without power, so power is like blood for project; we have planned to
get connection of power from MEPCO.
Water
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Water is needed during the process we will get water through water pumps.
Disposal
Safe Disposal arrangement is very important for a project which has wastage contains
chemicals that can harm. We will dispose off after some treatment. We have site near cannel
so it is very easy to dispose off treated wastage.
Transportation
Our proposed site is just 0.25 km away from national high way which gives us opportunities to
use road ways for carriage, besides road ways we have railway junction just 5 km away from
site, Dera Nawab. So we will enjoy a best infrastructure here.
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SWOT ANALYSISStrength:
Raw material is easily available
Access to customers
Well technology is used
Demand is very high
Profit earning is high
Weakness:
Recourses are going to be end
Security problem
Government restriction
Load shedding of sui gas & electricity
ThreatThe proposed project will be facing the following threat:
Market saturation over a longer period of time due to a large number of entrants Threat of increase in the import duty by the government
Gross Profit Ratio 39% 34% 33%
Operating Profit Ratio 39% 34% 33%
Net Profit Ratio 17% 15% 15%
Ratios 1 2 3 4Current Ratio 1.43 2.23 2.79 3.34Quick Ratio 1.24 1.95 2.50 3.03Debt Ratio 84% 58% 44% 35%
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Total Assets Turnover 0 25% 25% 20%Return on Equity 52% 37% 30%Return on Assets 4% 4% 3%
Manufacturing Process
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In our proposed project we will produce three elements
1. Cooking Oil
2. Vegetable Ghee
3. Laundry Soap
Process has following stages:
A) Decantation
Decantation is a process of unloading of unprocessed oil from carriage into decanting tanks.
We will have proposed a 50 ton decanting tank.
B) Oil Storage
The next step is storage. Oil from decanting tanks is transformed from decanting to storage
tanks with the help of powerful pumps. Two storage tanks of 500 tons capacity are needed.
C) Refining
The oil in refined to remove free from acids and phosphatides and the gaining material and to
improve its color. The oil is refined with strong Caustic Soda. This result in two products one
is the refined oil and the other is it’s by product namely mud which is being used for
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manufacturing soap but the firm sells the mud it does not manufacture soap. We will produce
soap.
After Refining Process is divided in to three independent processes
OIL REFINING PLANT
MANUFACTURING PROCESS OF COOKING OIL
1. Bleaching
In this step we decolorize the oil by using Fuller Earth, Caustic Soda and Activated Carbon at
high temperature.
2. Filtration
In this step we remove impurities (Fuller Earth) from oil through filtration medium. All
impurities that become part of oil in Bleaching process are removed in this step.
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3. Deodorization
It is a process of purify the oil. Its odor is removed by using vacuum vessels. All those
impurities that are reason of odor in oil are removed in this section. The temperature of oil is
very much increase in this process.
4. Cooling
In the Deodorization Process temperature of oil much rises so it needs to cool again. In
Cooling Section oil is cooled to normal temperature by using coolers.
5. Filtration
To remove the impurities, oil is re filter through filtration process.
6. DE-Waxing
It is a complex process that is used to remove Wax from oil. It is necessary to remove wax for
further processing. For this purpose some organic compounds are used in chemical reaction.
These reaction are much complex in nature. Samples are taken and laboratory tests are applied.
7. Filtration & Vitamin Addition
De-waxed oil is passed through further filtration. Move over some essential Vitamins (A&D)
are added in this section. Nickel catalyst (Ni) is used in this process.
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8. Storage
After final filtration and Vitamins addition oil is stored in storage tanks. In these tanks oil is
store at moderate temperature.
9. Packing
In packing section oil is packed in deferent weights plastic bags. These bags properly sealed
and again weigh before forward to store rooms.
10. Godown
After packing oil bags are forward to Godown. Ammonia section is there to control
temperature of Godown.
MANUFACTURING PROCESS OF VEGETABLE GHEE
1. Bleaching
In this step we decolorize the oil by using Fuller Earth, Caustic Soda and Activated Carbon at
high temperature.
2. Filtration
In this step we remove impurities (Fuller Earth) from oil through filtration medium. All
impurities that become part of oil in Bleaching process are removed in this step.
3. Hydrogenation
Hydrogenation is process of addition of hydrogen gas in oil. It is a complex organic process in
which unsaturated hydrocarbon are convert into saturated hydrocarbons. It is main process of
converting oil into ghee. At high temperature hydrogen gas is passed into the oil, chemical
reaction occurs in presence of Nickel (Ni) catalysts.
4. Filtration
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In this step we remove impurities (Fuller Earth) from ghee through filtration medium. All
impurities that become part of oil in Bleaching process and Hydrogenation process are
removed in this step.
5. post Refining
After hydrogenation oil is once again refined by using caustic soda in order to remove the
entire harmful chemicals that become part of oil during process.
6. Post Bleaching
After refining, once again bleaching is done in order to decrease the color of oil.
7. Filtration
To remove the impurities, ghee is re filter through filtration medium.
8. Deodorization
It is a process of purify the ghee. Its odor is removed by using vacuum vessels. All those
impurities that are reason of odor in ghee are removed in this section. The temperature of ghee
is very much increase in this process.
9. Cooling
In the Deodorization Process temperature of ghee much rises so it needs to cool again. In
Cooling Section ghee is cool down by using coolers.
10. Filtration & Vitamin Addition
For further filtration ghee must re heated. Move over some essential Vitamins (A&D) and
ghee flavors are added in this section.
11. Storage
After final filtration and Vitamins addition ghee is stored in storage tanks. In these tanks ghee
is store at high temperature.
12. Packing
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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
In packing section ghee is packed in deferent weights plastic bags. These bags properly sealed
and again weigh before forward to store rooms. 0.5kg, 1kg, 2kg, 2.5kh, 5kg, 10kg, 16kg
packing is available. Plastic bags and steel teens are used for packing.
13. Chilling
Packed ghee is in melted form and hot. It is passed through chiller to decrease its temperature.
14. Godown
After packing ghee bags and teen packs are forward to Godown. Ammonia section is there to
control temperature of Godown.
MANUFACTURING PROCESS OF LAUNDRY SOAP
1. Soap Stock
In the process of refining, dirt is separated and sent to soap section for making laundry soap.
2. Saopnification Cooking
This is process of making soap from soap stock. Soap stock is heated and treated by using
some techniques.
3. Setting
Liquid is treated and soap in liquid form is made
4. Filling in Frames
Liquid is filled in frames to makes blocks of soap
5. Cutting into Cakes
Solid soap blocks are divided in small cubes.
6. Packing
Soap is packed in packets and cartons
7. Godown
Finished soap is sent to Godown and from Godown it is delivered to market.
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GHEE COOKING OIL SOAP
By Islamian Business Executives 43
DECANTATION
OIL STORAGE
REFINING
Bleaching
Filtration
Hydrogenation
Filtration
Post Refining
Post Bleaching
Deodorization
Bleaching
Filtration
Cooling
Filtration
De- Waxing
Soap Stock
Saopnification Cooking
Setting
Filling in Frames
Cutting into cakes
Packing
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
By Islamian Business Executives 44
Filtration
Deodorization
Cooling
Filtration & Vitamin Add.
Storage
Packing
Filtration & Vitamin Add.
Storage
Packing
Godown
Dispatch
Godown
Dispatch
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
‘
ECONOMIC ANALYSIS
Economic evaluation is considered prominent yardstick to measure the viability of a project.
This analysis is directed towards determining whether the project is likely to contribute
significantly to the development of the economy as a whole and the contribution of the project
would be great enough to justify the use of available resources. This aspect is reviewed under
the following:-
INITIAL IMPACT
In order to pursue a theory of balanced growth of the economy the current government is
putting an emphasis on industrialization of our inherently agrarian economy. Industrialization
of substantial dynamic benefits is important for changing the traditional structure of our less
developed economy, while providing employment for a rapidly increasing labor force, and
saving scarce foreign exchange by import substitution and creating export potentials.
A capital expenditure creates incomes for people engaged in the fabrication of capital goods,
who in turns spend their incomes on consumer goods. An initial original capital investment
creates a wave of income and spending which has multiplied effect on the national income,
increasing it by several times, the original investment. The initial original capital investment of
Rs. (000) 1,117,693.25 in local currencies would have a healthy impact on the GNP of the
country, the extent of which depends on the degree of multiplied effect.
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EMPLOYMENT OPPORTUNITIES
The project would create employment opportunities for the following staff:
Detail Total Nos.
Skilled Labor 21
Semi-Skilled Labor 24
Unskilled Labor 32
Administrative Staff 25
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NAIMAT OIL AND GHEE MILLS PVT. LTD.
Estimated Cost of the Land
Sr. no. Description
Area in Acers
Unit Cost Rs.
Total cost Rs. (000)
1 Land 5 2,000,000 10,000
2Registration and Legal Requirements 10% 5 1,000
3 Stamp Duty 2% 5 200
4 District Council Fee 1% 5 100
5 Development Charges of land 15% 5 1,500
Total Cost of Land 12,800
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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
NAIMAT OIL & GHEE MILLS PVT LTD
Estimated Cost of Plant & Machinery
S.NO. DESCRIPTION Rs.
(000)
1 STORAGE SECTION 13,550
2 PRE-REFINING SECTION 6,110
3 HYDROGENATION SECTION 8,690
4 POST-REFINING SECTION 9,805
5 GHEE FILLING SECTION 8,650
6 REFRIGERATION SECTION 4,500
7 STEAM GENERATION 5,650
8 SOAP SECTION 1,595
9 WATER PUMP SECTION 1,150
10 HYDROGEN GAS GENERATION & STORAGE SECTION 9,950
11 CO2 GAS SECTION 2,800
12 ELECTRIC SECTION 10,700
13 MACHANICAL WORKSHOP 900
COST OF MACHINERY 84,050
14 ERECTION & INSTALLATION:15 % of machinery 15% 12,608
15 TRANSPORTATION (10% of Machinery) 10% 8,405
16 INSURANCE (5% of Machinery) 5% 4,203
17 Contingencies 2% of Building & Machinery 2% 1,681
TOTAL COST OF PLANT & MACHINERY 194,996
By Islamian Business Executives 48
NAIMAT OIL AND GHEE MILLS PVT. LTD.
Estimated Cost of the Building and Civil Works
Sr. No.
Description Type of Buildin
g
Unit of Construction
Covered Area
Rate per Unit
Amount Rs.(000)
1 Refinery RCC Square Feet 7,500 700 5,250
2 Filling Section RCC Square Feet 11,000 700 7,700
3 Cold Room RCC Square Feet 12,000 675 8,100
4Pouch Filling RCC Square Feet 1,600 675 1,080
5 Electric Room RCC Square Feet 1,500 675 1,012.5
6 HQ Compressor RCC Square Feet 1000 675 675
7Ammonia Condenser
RCC Square Feet 900 675 607.5
8 Ammonia RCC Square Feet 900 675 607.5
9 Godown RCC Square Feet 4,500 650 2,925
10 Gas Plant RCC Square Feet 700 650 455
11 Mosque RCC Square Feet 450 700 315
12 Store RCC Square Feet 1200 700 840
13 Boiler Section RCC Square Feet 3,000 675 2,025
14 Soap Section RCC Square Feet 6,000 700 4,200
15Boundary Wall & Gate
Runing Feet 3,000 400 1200
16 Office Block RCC Square Feet 12,000 750 9,000
17Residential Quarters
RCC Square Feet 13,000 750 9,750
18 Guest Rooms RCC Square Feet 2,000 750 1,500
19 Uncovered Area Square Feet 132,000 25 3,300
20Contingency (2%)
2% 1,210.85
TOTAL COST 61,753.35
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
NAIMAT OIL AND GHEE MILLS PVT. LTD.Estimated Cost of the Project
Cost of the Project Local Foreign Total (Rs.000) (Rs.000) (Rs.000)
Project Land and it's Development 12,800 - 12,800 Building and Civil Works 61,753.35 - 61,753.35 Plant & Machinery 58,499 136,497 194,996 Furniture and Fixture 100 - 100 Utilities & Office Equipment 3,000 - 3,000 Vehicles 1,500 - 1,500 Markup during Construction 51,192 - 51,192 Pre Production Expenses 1,780 - 1,780 Contigencies 481 - 481
Total Fixed Cost 191,105 136,497.20 327,602
Initial Net Working Capital 790,091.18 - 790,091.18
Total Cost of the Project 981,196 136,497.20 1,117,693
Means of Finance
Debt
Loan from MCB 670,615.95 0 670,615.95
Total Debt 670,615.95 0 670,615.95
Equity Paid up Capital (Sponsors 447,077.30 0 447,077.30
Total Equity 447,077.30 0 447,077.30
Total Debt and Equity 1,117,693.25 - 1,117,693.25
Debt : Equity Ratio
Sponsors stake 40%
Debt 60%
Estimated Initial Net Working Capital
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Currnet Assets
RS.(000)
Cash 12000
Account Receivable 3 % of Sales 86052.375
Imported raw material 1200000
Raw Material 763083.5
Stores and Spares 5000
Advances and deposits 6000
Finished Goods Inventory 10% of production 318712.5
Total 2390848
Current Liabilities
Account Payable 0
Accrued Expenses 0
Bank Borrowing 75% of inventory 1600757
Total current liabilities 1600757
Initial Net Working Capital 790091
Total 2390848
NAIMAT OIL AND GHEE MILLS PVT. LTD.
PRE OPERATING EXPENSES
Sr. No. Description Rs. ("000")
1 Registration Charges 500
2 Sales Tax Registration Charges 120
3 Consultancy & Report Preparation Charges 100
4 Printing & Stationary 30
5 Conveyance Charges 100
6 Telephone & Postage 30
7 Salaries and Wages during Construction 900
Total Pre Operating Expenses 1,780
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NAIMAT OIL AND GHEE MILLS PVT. LTD.PRODUCTION AT 100%
COOKING OIL
Output% Quantiy (Tons)Production of oil 97%
16975Wastage 1%
175Soap Stock dirt 2%
350
Total 100 17500
VEGETABLE GHEE
Ghee 95%30400
Wastage 5%1600
Soap Stock dirt 3%960
Total 100 32000
LAUNDY SOAP
Soap 75%1050
Wastage 25%350
Total 100
1400
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NAIMAT OIL AND GHEE MILLS PVT. LTD.COST OF PRODUCTION
Raw Materials Requirement at100%
Cooking OilCanola Oil (Tons) 17,500 Caustic Soda (Kg) 102,000 Fuller Earth (Kg) 204,000 Common Salt (Kg) 26,000 Antioxidant (Kg) 3,400 Raw Material Purchase
Years. 2011 2012 2013Capacity utilization 50% 60% 70%QUANTITIES SCHEDULE Canola Oil (Tons) 8,750 1,0500 1,2250Caustic Soda (Kg) 51,000 61,200 7,1400Fuller Earth (Kg) 102,000 122,400 142,800Common Salt (Kg) 13,000 15,600 18,200Antioxidant (Kg) 1,700 2,040 2,380COST OF RAW MATERIAL RS(000) RS(000) RS(000)Canola Oil per ton @RS. 86,000 752,500 903,000 1,053,500Caustic Soda per Kg. @Rs. 25 1,275 1,530 1,785Fuller Earth per Kg. @ Rs. 30 3,060 3,672 4,284Common Salt per Kg. @ Rs. 3 39 46.8 54.6Antioxidant per Kg. @Rs. 160 272 326.4 380.8
TOATL 757,146 908,575.2 106,0004.4
VEGETABLE GHEERaw Materials Requirement at100% Palm Olein Oil (Tons) 32,000 Caustic Soda (Kg) 75,000 Fuller Earth (Kg) 67,000 Common Salt (Kg) 50,000 Citric Acid (Kg) 7,000 Nickle Catalyst (Kg) 5,000
Years. 2011 2012 2013Capacity utilization 50% 60% 70%QUANTITIES SCHEDULE
Palm Olein Oil (Tons) 16,000 19,200 22,400Caustic Soda (Kg) 37,500 45,000 52,500Fuller Earth (Kg) 33,500 40,200 46,900Common Salt (Kg) 25,000 30,000 35,000Citric Acid (Kg) 3,500 4,200 4,900Nickle Catalyst (Kg) 2,500 3,000 3,500
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COST OF RAW MATERIAL RS(000) RS(000) RS(000)Palm Olein Oil per Ton @Rs. 75,000 1,200,000 1,440,000 1,680,000Caustic Soda per Kg@ Rs. 25 937.5 1,125 1312.5Fuller Earth per Kg@ Rs. 30 1,005 1,206 1,407Common Salt per Kg@ Rs. 3 75 90 105Citric Acid per Kg @ Rs. 120 420 504 588Nickle Catalyst per Kg @Rs. 1400 3,500 4,200 4,900TOATL 1,205,937.5 1,447,125 1,688,312.5Total Cost of Raw Materials (Grand Total) 1,963,083.5 2,355,700.2 2,748,316.9 Imported Raw material 1,200,000 1,440,000 1,680,000Local Raw Material 763,083.5 915,700.2 1,068,316.9ASSUMPTIONS Production capacity per day 150 TONS Working schedule 3 shifts of 8 hours each working days in year 330 Bank Borrowing 70% of inventory 70%
NAIMAT OIL AND GHEE MILLS PVT. LTD.
Estimated Labor Cost
Year wise Wages of Labor RS.(000) RS.(000) RS.(000) Sr.No.
Description 2011 2012 2013 1 Production Labor 8,244 9,068 9,975
2 Add fringe benefits 3,298 3,627 3,990
TOTAL COST OF LABOUR
11,542 12,696 13,965
Labor Cost Sr.No. Production Labor No. of Salary/month/worker Annual Salary RS.
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Employees (000)1 G.M Technical 1 50,000 600 2 Electrical Dept. - Forman 1 10,000 120 Electricians 6 6,000 432 3 Boiler Section - Boiler Engineer 1 25,000 300 Forman 3 10,000 360 Operator/Helper 9 6,000 648 4 Gas Plant - Forman 1 10,000 120 Operator/Helper 6 6,000 432 5 Mechanical Workshop - Forman 1 10,000 120 Fitter 3 6,000 216 Welder 1 8,000 96 Helper 3 6,000 216 6 Ghee Filling Section - Forman 1 10,000 120 Operator 3 8,000 288 Helper 3 6,000 216 7 Ammonia Section - Forman 1 10,000 120 Operator 3 8,000 288 Helper 3 6,000 216 8 Soap Section - Forman 1 10,000 120 Operator 2 8,000 192 Helper 2 6,000 144 9 Main Storage - Store In charge 1 10,000 120 Clerk 3 8,000 288
10 Laboratory - Chief Chemist 1 20,000 240 Shift Chemist 3 15,000 540 Lab.Attendent 3 6,000 216
11 Refinery Section - Supervisor 1 15,000 180 Forman 3 10,000 360 Operator 3 8,000 288 Helper 9 6,000 648
By Islamian Business Executives 54
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TOTAL EMPLOYEES 82 Total Cost Of Production Labor 8,244
Assumptions: Direct labor will increase every year @ 10%
FRINGE BENEFITS 40%
NAIMAT OIL AND GHEE MILLS PVT. LTD.
Manufacturing Overhead Cost
Description (Rs:000)
Fixed cost
Insurance @ 5% of Fixed assets 5% 16,380
Overhauling Expense @ 5% of Machinery 5% 9,750
Maintenance of Building @ 5% of Cost of Building 5% 3,088
Maintenance of Vehicles @ 5% of Cost of Vehicle 5% 75
Total Fixed Cost 29,293
Variable Manufacturing Expenses
Power:(450KV*24hrs*330days*Rs12) * 50% 21,384
Gas (at 50% capacity) 15,000
Total Variable Cost 36,384
Year ending Manufacturing Overheads as per Different Capacities
Rs(000)
Description 2011 2012 2013
50% 60% 70%
Fixed cost 29,293 29,293 29,293
Variable cost 36,384 40,022 44,025
Total Cost of Manufacturing Overheads 65,677 69,315 73,317
Capacity Increases yearly 10%
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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
NAIMAT OIL AND GHEE MILLS PVT. LTD.
Year wise Administrative and General Expenses
Administrative Expenses RS.(000)
RS.(000)
RS.(000)
Sr. No. Designation No. of Employees
Salary/Month
2,011
2,012
2,013
1
GM Commercial 1 50,000 600
660
726
2
GM Accounts 1 50,000 600
660
726
3
Accountants 2 10,000 240
264
290
4
Clerks 10 8,000 960
1,056
1,162
5
Cashier 1 8,000 96
106
116
6
Assistants Cashier 2 6,000 144
158
174
7
Chowkidar/Gunman 6 6,000 432
475
523
8
Peon/Sweeper 2 6,000 144
158
174
Total 25 3,216
3,538
3,891
Add Fringe Benefits 0 1,286
1,415
1,557
Total 4,502
4,953
5,448
Assumption
Increase every year
0
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General Expenses RS.(000) RS.(000) RS.(000) Sr.No Description
Per Month 2,011 2,012 2,013
1 Traveling Expenses 15,000 180 198 218
2 Printing & Stationary 20,000 240 264 290
3 Phone, Postage 15,000 180 198 218
4 Rent, Rate, & Taxes 100,000 1,200 1,320 1,452
5 Entertainment 10,000 120 132 145
6 Legal & Audit 200,000 2,400 2,640 2,904
7 Miscellaneous 10,000 120 132 145
Total 4,440 4,884 5,372
Add Fringe Benefits 0 1,776 1,954 2,149
Total 6,216 6,838 7,521
Assumption
Increase every year 0
Selling Expenses
Selling Expenses are assumed 2% of Sales Revenue 57,368 72,666 83,758
Sales
0
2,011 2,868,413
2,012 3,633,323
2,013 4,187,882
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NAIMAT OIL AND GHEE MILLS PVT. LTD.
DEPRECIATION COST
Depreciation Schedule of Fixed Asset Rs. (000) Rs. (000)
Depreciable Cost
Rates
Depreciation
Plant & Machinery 194,996 15% 29,249
Building 61,753 5% 3,088
Furniture & Fixtures 100 5% 5
Vehicles 1,500 20% 300
TOTAL 32,642
Depreciation will be constant over the life of assets.
DEPRECIATION IS CALCULATED BY USING STRAIGHT LINE METHOD
NAIMAT OIL AND GHEE MILLS PVT. LTD.
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Production capacity at100%
a) Cooking Oil 16,975 Tons
b) Vegetable Ghee 30,400 Tons
c) Laundry Soap 1,050 Tons
Working days p.a. 330
Capacity per day 150 Tons
No. of Shifts per day 3
SALES
Operating Years : 2,011 2,012 2,013
Production Efficiency Assumed : 60% 70% 80%
A. Cooking Oil 10,185 11,883 13,580
Add; Beginning inventory - 1,019 1,290
Available for Sale 10,185 12,901 14,870
Less: Ending inventory 10% 1,019 1,290 1,487
Quantity Sold 9,167 11,611 13,383
60% 70% 80%
B. Production of Vegetable Ghee 18,240 21,280 24,320
Add; Beginning inventory - 1,824 2,310
Available for Sale 18,240 23,104 26,630
Less: Ending inventory 10% 1,824 2,310 2,663
Quantity Sold 16,416 20,794 23,967
C. Laundry Soap 630 735 840
Add; Beginning inventory - 63 80
Add; Beginning inventory 630 798 920
Less: Ending inventory 10% 63 80 92
Quantity Sold 56
7 718 82
8
Sale Revenue Rupees (000)
Description Price/ Ton 60% 70% 80%
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Cooking Oil 115 1,054,148 1,335,254 1,539,055
Vegetable Ghee 110 1,805,760 2,287,296 2,636,410
Laundry Soap 15 8,505 10,773 12,417
Total Sales (a+b+c) 2,868,413 3,633,323 4,187,882
Value of Ending Inventory Rs.(000)
a) Cooking Oil 117,128 148,362 171,006
b) Vegetable Ghee 200,640 254,144 292,934
c) Laundry Soap 945 1,197 1,380
Total Value of finished inventory 318,713 403,703 465,320
ACCOUNT RECEIVABLE % OF SALES 3% 86,052
Rs.(000)
2,011 2,012 2,013
60% 70% 80%
BEGINNING INVENTORY
a. Cooking Oil - 117,128 148,362
b. Vegetable Ghee - 200,640 254,144
c. Laundry Soap - 945 1,197
TOTAL - 318,713 403,703
ENDING INVENTORY
a. Cooking Oil 117,128 148,362 171,006
b. Vegetable Ghee 200,640 254,144 292,934
c. Laundry Soap 945 1,197 1,380
TOTAL 318,713 403,703 465,320
GRAND TOTAL 318,713 722,415 869,023
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NAIMAT OIL & GHEE MILLS PVT LTD
LOAN REPAYMENT SCHEDULE
Rs.(000)
Amount of Loan
670,616
Mark up rate 16%
Installment p.a 10
Years Opening Balance Interest Principle PMT Closing Balance
1 670,616 107,299 67,062 174,360 603,554
2 603,554 96,569 67,062 163,630 536,493
3 536,493 85,839 67,062 152,900 469,431
4 469,431 75,109 67,062 142,171 402,370
5 402,370 64,379 67,062 131,441 335,308
6 335,308 53,649 67,062 120,711 268,246
7 268,246 42,919 67,062 109,981 201,185
8 201,185 32,190 67,062 99,251 134,123
9 134,123 21,460 67,062 88,521 67,062
10 67,062 10,730 67,062 77,791 -
Markup during Construction 53,649
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NAIMAT OIL AND GHEE MILLS PVT LTDEstimated Income Statement
Rs.(000)Years ending September 30 : 2011 2012 2013 50% 60% 70%Sales 2,868,413 3,633,323 4,187,882 Les: COST OF SALES Raw Material 1,963,084 2,355,700 2,748,317 Labor 11,542 12,696 13,965 Manufacturing Overheads 65,677 69,315 73,317 Depreciation 32,642 32,642 32,642 Total Cost of Goods Manufactured 2,072,944 2,470,353 2,868,242 Add: Beginning Inventory - 318,713 403,703 Less: Ending Inventory 10% 318,713 403,703 465,320 Cost of Sales 1,754,231 2,385,363 2,806,624 Gross Profit 1,114,181 1,247,960 1,381,258 OPERATING EXPENSES: Administrative Expenses 4,502 4,953 5,448 General Expenses 6,216 6,838 7,521 Seling Expenses 57,368 72,666 83,758 Total Operating Expenses 68,087 84,457 96,727 Operating Profit 1,046,095 1,163,503 1,284,532 OTHER EXPENSES: Financial Charges on: Long Term Loan 174,360 163,630 152,900 Amortization of Pre-Production Expenses 356 356 356 Total Other Expenses 174,716 163,986 153,256 Profit Before Tax and Worker's Fund 871,378 999,517 1,131,275 Worker's Fund 60,996 69,966 79,189 Profit/(Loss) Before Tax 810,382 929,550 1,052,086 Tax Provisions @ 40% 324,153 371,820 420,834 Net Profit 486,229 557,730 631,252 Dividend - - - Retained Earning 486,229 557,730 631,252 Ratios: Gross Profit Ratio 39% 34% 33%
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Operating Profit Ratio 39% 34% 33%Net Profit Ratio 17% 15% 15%
ASSUMPTIONS Rs.(000) Preliminery Expenses Amortized in 5 years 1780 Workers funds
Profit Participation : 5%
Welfare : 2% TOTAL 7%ACCOUNTS RECEIVABLE OF SALES 10%
ACCURED EXPENSES OF SALES 5%
ACCOUNTS PAYABLES OF MATERIAL CONSUMED 10% Tax provision 40%
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NAIMAT OIL AND GHEE MILLS PVT LTDBalance Sheet
End of Construction
Operating Years 2011 2012 2013ASSETS: CURRENT ASSETS: Cash and Bank Balance 12000 122769 2141577 4133803Short Term Investment 0 0 0 0Accounts Receivable 86052 286841 363332 418788Raw Material Inventory 1963084 1963084 1963084 1963084other assets 0 0 0 0Inventory of Finished Goods: Cooking Oil 117128 117128 148362 171006Vegetable Ghee 200640 200640 254144 292934Laundry Soap 945 945 1197 1380Advances, Deposits and Prepayments 6000 12000 24000 48000Stores & Spares 5000 5250 5512.5 5788.125Total Current Assets 2390848 2708657 4901208 7034783 FIXED ASSETS: Fixed Assets at Cost 325822 325822 325822 325822Accumulated Depreciation on Fixed Assets 0 32642 32642 32642
Fixed Assets Net 325822 293180 293180 293180
Preliminery Expenses 1780 1424 1068 712
Total Assets 2,718,450 3,003,261 5,195,456 7,328,675 LIABILITIES AND EQUITY: CURRENT LIABILITIES: Bank Borrowings 1600757 423888 536924 618876Acconts Payable 0 196308 144713 168831Accrued Expenses 0 143421 181666 209394Provision for Taxes 0 324153 709810 815156Dividend Payable 0 0 0 0Worker's Fund Payable 0 60996 133566 153390Current Maturity of Log Term Debt 67,062 67062 67062 67062Total Current Liabilities 1,667,819 1215827 1773741 2032708 LONG TERM DEBTS: Long Term Debt 603,554 536,493 469,431 402,370 Total long Term Debt 603,554 536,493 469,431 402,370 EQUITY: Paid-Up-capital 447,077 447,077 447,077 447,077 Retained Earnings - 486229 1550944 2773678Reserves for contigencies 317634 954262 1672841Total Equity 447,077 933,306 1,998,022 3,220,756
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Total Liabilities and Equity 2,718,450 3,003,261 5,195,456 7,328,675
NAIMAT OIL AND GHEE MILLS PVT. LTD.
Cash Flow Statement
End ofConstruction
Operating Years
years ending 30th DECEMBER2011 2012 2013
SOURCES OF FUNDS:
Operating Profits 0 1,046,095 2,072,078
2,344,536
Amortization of preliminiry Expenses 0 356 356 356
Depreciation 0 32,642 32,642 32,642
Total Funds from Operation 0 1,079,093 2,105,076
2,377,534
Other Sources:
Long Term Loan 603,554 0 0 0
Bank Borrowings 1,600,757 423888 536924 618876
Paid-Up Capital 447,077 0 0 0
Increase in Liabilities - -451991 557914 258967
Total Sources of Funds 2,651,389 1,050,989 3,199,914
3,255,377
APPLICATION OF FUNDS:
Investment in Fixed Assets 325,822 - - -
Financial Charges 51,192 107,299 96,569 85,839
Pre-Production Expenses 1,780 356 356 356
Repayment of:
Long Term Loan 67,062 67,062 67,062 67,062
Bank Borrowings
PAYMENT OF:
Taxes - 324,153 709,810 815,156
Dividends - - - -
Worker's Fund - 60,996 133,566 153,390
Short Term Investment - - - -
Increase in Current Assets (Other than Cash) 2,378,848 195,039 173,744 141,349
Total Application of Funds 2,824,704 754,904 1,181,106
1,263,151
Cash Surplus/(Deficit) (173,315) 296,085 2,018,808
1,992,226
Cash at the Beginning of the Year - (173,315) 122,769
2,141,577
Cash at the end of the year (173,315) 122,769 2,141,577
4,133,803
By Islamian Business Executives 65
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
NAIMAT OIL & GHEE MILLS PVT LTD
Weighted Average cost of Capital
Nature Of Fund Amounts Interest Rate weight WACC
Long term Loan 670,616 0.14 0.60 56332
Paid up Capital 447,077 0.30 0.40 53649
1,117,693 100.00 109981
Weighted Cost of capital 9.84%
Calculation of IRR
Years Net Profit DepriciationAmortization Out/ Inflow of cash
0 (1,117,693)
1 486,229 32,642 356 519,227
2 557,730 32,642 356 590,728
3 631,252 32,642 356 664,250
IRR 26%
Pay back period
Total inflow 1,774,205
Outflow 1,117,693
pay back period 1.59
7.08
2.4
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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
Pay back period
1 year 7 months and 3 days
Visit Highlights
Group photo with finance manager Asia Oil & Ghee mills
By Islamian Business Executives 67
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
Photo with The Technical Manager Asia Oil & Ghee mills
By Islamian Business Executives 68
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
By Islamian Business Executives 69