project profile of sulfuric acid manufacturing plant

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





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





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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)





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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.





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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).”





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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





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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.

http://www.essentialchemicalindustry.org/chemicals/ammonia.html#syn_gas





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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.





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(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.





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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





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.





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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





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.





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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.





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





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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





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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





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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





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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:





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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





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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





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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.





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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





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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.





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.





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





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.





28

This profile is not complete. Please contact us for complete profile

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Phone:01716752370 , Website : www.cbecl.com www.cbecl.info

http://www.cbecl.com/

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project profile of sulfuric acid manufacturing plant

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