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TABLE OF CONTENTS

SL NO. SUBJECT PAGE NO

01. SUMMARY OF THE PROJECT 1-4

02. MANAGEMENT ASPECT 5-19

03. TECHNICAL ASPECT 20-41

04. FINANCIAL SUMMARY 42-43

05. SOCIO ECONOMIC ASPECT 44

06. MARKETING ASPECT 45-56

07. FINANCIIAL ANALYSIS 1-31


EXECUTIVE SUMMARY

1. Name of the project :


(Fully Automated Bricks Manufacturing)
2. Location of the project :

3. Registered Office :

4. Main Partner :

5. Nature of the project :

6. Brief Description of the Project:

The project envisages setting up of an automatic brick-making factory of Tunnel Kiln


technology to manufacture high quality, technically sound and marketable solid bricks. The
machines manufacturing capacity would be 1,00,000 pcs per day capacity with 8 hours per
day and 300 days per year operation capacity. Bangladeshi brick demand is mounting steep
day by day parallel to rapid growth of real estate sector of Bangladesh. The project design
combines a highly efficient tunnel kiln technology, with a unique technique of forming green
bricks: granulated coal is injected for internal combustion. This approach results in lower
energy usage, higher quality bricks and reduced pollution. Bricks of any size, shape and
pigmentation can be produced at the plant with minor modifications. All bricks will be of uniform
quality and will meet international standards for strength, quality and appearance. The
sponsors intend to implement the scheme with financial assistance from Bank/Financial
institution for acquisition of state of the art capital machinery, operating with efficient and
expert management team along with their skilled workforce and a vision to excellence. It is
anticipated that the project will go into commercial operation within 12 months from the date
of opening of letter of credit.

The proposed project, when implemented would fulfill to the following objects:-
a. Ensure development of new entrepreneur.
b. Earn a good return on investment by way of value addition.
c. Create a good number of employment opportunities.
d. Generate adequate profit for the sponsors.
e. Revenue to the national exchequer after expiry of Tax Holiday period of the project.
f. Ensure supply of quality products.

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8. Total Cost of the Project.

SL Tk Cost in
Item 000
01 Land & Land Development 130,000
02 Factory steel structure & Civil Works 47,694
03 Machinery & Equipments(Including L/C commission,Inter.freight etc.) 209,576
04 Generator 1500KVA
05 Cable, Cable Distribution System
06 Excavator 0.5 cm 2pcs
07 Pay Loader 1.5cm 2pcs
08 Dumping Truck 5 Pcs
09 Sub Station 1500KVA
10 Local Material
11 Furniture, Fixture& vehicles
Total 387,270

9. I) .Means of Finance.
(TK.in 000)
Against Total Cost of Machinery
Against Total Estimated Cost of the
& Equipment
Project
Tk Amount in
% Tk Amount in 000 %
000
Long-term
309,816 80% 167,661 80%
Loan
Bridge
0 0% 0 0%
Financing
Owner's
77,454 20% 41,915 20%
Equity
Total 387,270 100% 209,576 100%

II)
1st. year 2nd. Year 3rd. year 4th. Year
Total Working Capital
Requirement
44,610.49 46,309.36 47,612.29 48,049.56
Margin against W/C Finance
8,922.10 9,261.87 9,522.46 9,609.91
W/C for Bank Finance
35,688.40 37,047.49 38,089.83 38,439.65

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10. Operating Results: (in 000)
1st. year 2nd. Year 3rd. year 4th. Year
Capacity Utilization 95% 97% 98% 98%
Sales 185,538 197,421 199,920 199,920
Gross Profit 84,367 82,258 81,705 80,543
Operating Profit 76,663 73,979 72,899 71,170
Net Profit 37,858 40,332 44,428 47,968
Operating Profit to sales 41.32% 37.47% 36.46% 35.60%
Net profit to sales (%) 20.40% 20.42% 22.22% 23.99%
Investment service coverage
1.08 1.11 1.18 1.25
(Time)

10. a)

Qty in pc
Unit/Price Total Amount
annual, capacity
(In taka) (Tk.in 000)
100,000 daily

Sales:(Net Sales after inventory


28,500,000 6.5 185,250
adjustment Vat payment)

Total Cost Pcs


Item-wise Unit Cost: in 000 Production
Unit Cost

Raw Materials 60918.75 28500000 2.14


Salaries & Wages for Factory Stuff 8150.54 28500000 0.29
Depreciation 12863.50 28500000 0.45
Utilities 25436.25 28500000 0.89
Stores & Spares 1047.88 28500000 0.04
Repair & Maintenance 1286.35 28500000 0.05
Tax & Insurance 2038.10 28500000 0.07
Financial Expense 38804.96 28500000 1.36
Total Cost 5.28

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11. Break-even- sales : TK 113157.11 Tk 118387.63 Tk 112168.50

12. Break-even- capacity of operation: 58 % 58% 55%

13. Internal Rate of Return (IRR) : 17.03%

14. Economic Aspects:

Employment Generation : 95 Person

Cost per job created : Taka 4076.53 Thousands

Contribution to GDP : Tk 101,273.87 Tk 102,051.36 Tk102,373.62

Benefit cost ratio : 1.65

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MANAGEMENT ASPECTS

Type of the Organization:


The organization is a Private Ltd

THE PROMOTERS:

The project of has been enlightened and experienced group ..(..) persons
residing at ... They intend to set up a Automatic Brick industry with the financial assistance
from any financial institution. A pre-investment Feasibility report to this effect has been
prepared about the project design, covering in details of its probable cost, profitability and
other relevant aspects especially the, Managing Director and Directors of the company have
sufficient business/ industrial experience. It is expected that as the Managing Director have
already gathered sufficient knowledge in this line of production system as well as the
technology involved in it and marketing approach of the products it will be an extra plus point
for managing the project.

The management of the company is vested with Board of Directors of the company.
The promoters of the project are as follows:

MANAGEMENT ASPECTS

BOARD OF DIRECTORS

The proposed project will be promoted by the following seven directors. The status and the
share of each director are stated below:

Name of the Directors Share Status Share Value in BDT


@100 Tk each share

TOTAL
Table 4

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CORPORATE SET UP

PERSONAL DETAILS AND NET WORTH STATEMENT

Personal Details

Pic

Name :

Fathers Name :
Mothers Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :
Present Address :
Permanent Address :

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Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
ID :

Net Worth
Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

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Personal Details Pic

Name :
Fathers Name :
Mothers Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :

Present Address :
Permanent Address :

Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
ID :

Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

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Personal Details
Pic

Name :
Fathers Name :
Mothers Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :

Present Address :

Permanent Address :
Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
ID :

Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

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Personal Details
pic

Name :
Fathers Name :
Mothers Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :
Present Address :

Permanent Address :
Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
Passport NO :

Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

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Personal Details

pic

Name :
Fathers Name :
Mothers Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :

Present Address :

Permanent Address :

Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
Passport :

Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

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Personal Details

pic

Name :
Fathers Name :
Mothers Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :

Present Address :

Permanent Address :

Education :
Profession :
Date of Birth :
Age :
TIN No :
Passport No :

Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

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Personal Details

pic

Name :
Fathers Name :
Mothers Name :
Marital Status :
Spouse Name :
Children :
Address :
Business Address :
Present Address :

Permanent Address :

Education :
Profession :
Nationality :
Date of Birth :
Age :
TIN No :
Passport No :
Net Worth

Amount in BDT
Asset :
Land
Cash / Equivalent
Gold
House hold furniture
Total
Liability
Bank Liability
Personal Loan and liability
Total
Net worth (Total Asset- Total Liability)

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All these directors who are also holding the directorship of ..will add this new line
of project .as a sister concern of their group along with their other manufacturing
unit. They have long and wide and deep experience in the prominent export oriented business
of the country and by virtue of their strong entrepreneurial expertise they would carry on the
project to the apex of success. A Total Quality Management approach would assure the fact
as they are already an ISO standardized group. Hopefully they would further add greater value
to countrys economy and environment by carrying the project rightfully and successfully. The
group has a yearly turnover of BDT . and asset value of .. which is a stunning
picture of the groups immense capacity to successfully glorify in this field.

ORGANIZATION SET UP

The overall management of the company would be vested to the board of Directors. The
Chairman/Managing Director will be responsible to keep the board and management
organized, informed and on task. As a chairman he would be the spokesperson of the
company and lead the management and administration of the company under the board
policy/guidelines of the board of directors. Besides, the management of the company will be
assisted by a team of qualified and experienced professional personnel under the leadership
of the Managing Director and the General Manager. He will exercise those powers which will
be delegated to him by the board of directors from time to time.

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ORGANIZATION CHART DESCRIVING ARRANGEMENT FOR MANAGEMENT

Board of Directors

Managing Director

General Manager General Manager

Accounts Manger
Production Manager
Production Manager
Commercial Manger
Extruder
Engineer

Mixer M/Operator Marketing Executive


Supervisor

Electrician
Junior Executive
Machine Operator

Dryer operator
Skilled worker Guard/Peon

Fire Man
Un- Skilled worker

Skilled worker Peon/Guard

Un- Skilled worker

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TECHNICAL ASPECTS

PRODUCTION PLANNING AND OPERATION TECHNIQUE

The project envisages setting up of an automated solid, hole and. hole brick and
hollow block brick making unit. The demand for building material is increasing day by
day, brick is one of the pertinent objects that are of high demand and echo friendly
brick making technology is also a burning issue. The sponsors intend to implement the
scheme with financial assistance form Bank/ Financial institution with acquisition
within 12 months from the date of opening of letter of credit for imported machinery
with state of the art technology of higher quality machinery. Total fixed cost of the
project has been estimated at BDT ..

Our chosen technology is Tunnel Klin technology developed in Germany. In addition to


kiln efficiency, the process technology employs a direct fuel injection technique to

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create better thermal bonding and reducing fuel usage and thereby lowers CO2 and

other emissions.

The Tunnel kiln can be made from firebricks or from green bricks. In the latter event, the green
bricks get cooked during kiln operation. The inner kiln lining is made from standard bricks
and then plastered over by refractory cement. The firing chamber can be filled manually or
automatically with green bricks.12 colum base tunnel kiln usually pcs production
per day.
The fuel, granulated coal, is fed into the firing zone in the kiln through stoke holes on the roof.
Air required for the combustion process is forced from behind; and, as it reaches the line to
be fired, it is already preheated from the previous firing zone thus reducing firing time and
energy usage. The temperature in the firing zone is about 200-300 C. The process is
extremely simple and is carried out manually.

In addition to kiln efficiency, green bricks will be injected with pulverized coal, a technique
commonly used in China to make bricks. This technique enables improved thermal bonding
and reduces fuel usage, and hence CO2 and other emissions. Clay is premixed with granulated

coal and then extruded to produce the green bricks. This is a unique process that is
fundamental to the energy efficiency achieved in brick making in China. Almost 80% of the
total energy required is injected into the bricks and only about 20% is fed externally into the
firing chamber. Most of the fuel mixed into the bricks is almost completely burnt during firing.

PRODUCTION CAPACITY

The annual production capacity of bricks of the project based on two shifts operation of 8 hours
each per day and 300 working days in a year and the daily production capacity is 1,00,000
pcs of solid brick.

LAND AND LOCATION

The project has been proposed to be located in Kapashiya adjacent to Dhaka city connected
with good communication from water and road transport mode. The proposed site will be very
near to electric power line. The area of land required .. Bigha The land & land
development has been estimated Tk 1300 lac.The land has been selected considering its
suitability for setting up such a project. The site has all the logistical support like Power, Water,
Drainage and Communication for setting the project having economical labor and raw
materials available around the adjacent areas.

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CIVIL WORKS

The entire civil works of the project comprises 9369 smt. in total (Machinery room, Drying
room, Tunnel kiln, Civil Construction of shed, Office room, Labor shed, Boundary etc.)
constructions; it has been designed and will be supervised by a group of highly qualified
Architect and Engineers.

IMPORTED MACHINERY
For implementation of the scheme, the project will require state of the art capital machinery
from renowned Chinese suppliers. It will be a complete set of composition of basic operating
machinery (Back process Unit + Baking Unit + Drying Unit) along with supporting unit including
of electric cabinet and other supporting machinery and equipment. In selection of machinery,
the quality and the cutting edge technology has been given priority. The machinery of the
project has been proposed to be imported. The cost of imported machinery has been
estimated at BDT 2,09,576 thousands.

MANUFACTURING PROCESS

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27
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Technical Plan flow chart

1Process Flow

Clay Fuel: Coal



Bulldozer or loading machine Coal crusher

Box feeder Belt conveyor

Belt conveyor Coal box feeder

Rolling crusher

Belt conveyor

Double shaft mixer Water adding

Belt conveyor

Ageing room for material

Box feeder

Belt conveyor

(Fine pulverizing double-roll grinder)

(Belt conveyor)

(Intense mixer and extruder) Water adding
Belt
Conveyor Belt conveyor
for
fault Vacuum extruder Vacuum pump
brick

| Column cutter
|
Brick cutter

Green brick distributing and transportation machine

Stack green brick to drying car by labor

Hydraulic ferry pusher

Drying car into drying chamber

Drying cars trailer

(Tunnel kiln) baking

Take out the finished brick from kiln by labor

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Finished brick yard

Brief description of production

Production Timing (Production hour in job process basis):

Time Raw material Molding Drying Baking


treatment
Working 2400 2400 3600 3600
hours/Year
Working days/Year 300 300 300 300
Working 8 8 12 12
hours/Day

Table 4

Clay and coal material prepare and treatment

By the Bulldozer or Loader to send the raw clay to the box feeder, the box feeder adopted the
valve controller; it can control the feeding quantity according to the requirements. Then, the
raw clay through the belt conveyor goes to the rolling crusher for primary pulverizing. Coal will
be crushed by the coal crusher and being piled up. Then by labor vehicle or loading machine
send the coal to coal feeder, which adopt valve controller, can control the coal feeding quantity
according to requirement. Through the belt conveyor, coal powder will go to rolling crusher,
together with the clay crushing, coal powder and clay will be mixing primary. After primary
pulverizing, the clay will be sent to the double-shaft mixer. By water adding let the clay and
the water are completely mixed round and uniformity. The water input quantity in this process
will be around 90% of the total water required. Clay after the first time mixing will be sent to
the ageing storeroom for 24-72 hours homogenization, which will make the water filter into the
clay grains and make them more uniformed. This will improve the finished brick quality a lot.

The clay will receive second time smash by the fine pulverizing double roll grinder in order to
get the proper grain size. Then clay comes into the intense mixing and extruding machine, by
water adding again and mix, extrude, cut up, so that to get a better molding quality.

Molding

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Moisture content when molding is controlled to 18%-20%.The molding adopts JKR40/40F-25
double stage vacuum extruder. The ready raw material come from the intense mixer and
extruding machine through the belt conveyor being sent to the vacuum extruder, the vacuum
pump extract the air from the mud material. The vacuum extruder squeeze out the mud
material from the extruder mouth then pass the auto column slitter and brick cutter , being cut
into the required bricks. In order to let the surface of the brick more beautiful and combine with
the mortar more fastness when establish the building, we can add embossing device on the
forepart of the column cutter, thus the effectiveness will be better.

Drying

In order to save energy, reduce the CO2 emission and take full use of the heat, green bricks
are dried by the tunnel drying chamber with small size cross section. Heat resource comes
from the remaining heat of the Tunnel kiln. Green bricks come from the cutter then being put
on the drying cart by man after bricks distributing and transferring machine, and then it will be
sent to the drying chamber by the ferry pusher. The structure of the drying chamber is brick-
concrete structure. There are heat supply system, adjusting system and humid exhaust
system. In order to guarantee the bricks quality, save coal fuel, we equip the control system
temperature-supervise meter. When the heat is not sufficient or coal heat quality below
standard, workers can discover in time and adopt measure accordingly, so that this can keep
the brick quality steady and prevent the pollution by the leak heat. Take daily production
1,00,000 pcs for example, use tunnel type drying chamber

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Picture: Clay brick plant show
need about 1800m2, but traditional natural drying by sunshine need about 15000m2. So that
it save big area of land for green brick drying, improve the workers working environment. And
the brick production do not affect by the weather, bricks quality and production quantity are
both improved also. Compare to same capacity old type brick factory, it can save about 80%
land area for the country.

Baking

Dried bricks via the hydraulic ferry pusher are sent to the trail car. Then, the workers push the
drying car onto the trail car, and then send to the Tunnel kiln for unloading, stacking and
baking. Workers will pick out the dry waste when adobe stacking. The Tunnel kiln is with three
centered arch structure. Kiln backing is mainly based on coal powder from outside, assist by
the internal combustion. In order to easy control the baking temperature, guarantee finished
brick quality, save coal energy, and avoid any additional damage of the kiln and equipment,
we equip the temperature test, alarm and protection facility in the Tunnel kiln baking system.
This will reduce the baking temperature too high or too low condition happens, prolong the
kilns working life time, reduce unnecessary economy and energy expense, meanwhile will
improve the factorys work efficiency. Talk about the advantages of Tunnel kiln, first is High

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energy efficient. Take one million standard brick for example, Tunnel kiln need about 100 ton
coals for baking, with energy saving of 50-60% compare to the old technologies. Tunnel kiln
require less land area, daily production capacity 300,000pcs Tunnel kiln need about 2800-
3000m2 lands. Its operation easy, weather proof, the kiln can work whole year-round. Old
traditional kiln can only work 5-6month. There are about 14 million hectare of land in
Bangladesh, yearly abandon rate for the land is about 8000 hectare. There are over 4000
energy inefficient kilns in Bangladesh, each kiln consuming an average of 240 tons of coal to
produce one million bricks. Almost all the coal being used is low-grade coal, each kiln there
fore produce 760tones of CO2 per year. Total annual CO2 emissions from the 4000 kilns are,
therefore, over 3.0 million tones. Above information shows the old technology kiln with high
pollution and high cost of energy. New technology kiln will be beneficial for Bangladesh
country.

ECHO FRIENDLINESS & POLLUTION CONTROL

We have adopted the state of the art automatic brick making technology the Tunnel Kiln which
is a green technology with energy efficient and environment friendly features introduced by
UNDP research in Bangladesh to reduce the pollution. The United Nations Development
Program (UNDP) and the Global Environment Facility (GEF) have recently introduced energy
efficient, smokeless brick-making technology to curb greenhouse gas emissions in
Bangladesh. This new device, known as the Tunnel Kiln, was originally developed in Germany
to replace the older, highly pollutant brick-making technology. It was later modified in China
and remodeled to accommodate the specific needs of Bangladeshs brick-making industry. As
a result, brick-making technology in Bangladesh is now maximally efficient, eco-friendly and
cost-effective.

PRODUCTION PLANNING AND OPERATION

Raw materials

Raw material is clay. No impurity contained and its physical property and chemical
composition should meet the baked bricks requirement.

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Products Specification

Name Dimension in inches Type


Clay brick 1053 Solid & Hollow
Table 5

Power Distribution

The project will require a connected load of 1000 KW for production process and domestic
use. The Maximum demand would be 1000 KW. Required power will be met from REB.
Moreover, the project will procure Diesel generators for supply of power in case of power
failure. The cost of generator has been considered with the cost of local machinery.

Power Kwh
Connected Load(KWH) 1000
Maximum Demand(KWH) 1000
Peak Hour 6
Off-Peak Hour 18
Table 6

The power distribution system would require low voltage distribution panel 2sets, QTJ start-
up cabinet 4sets, Operation box on site 3sets, Cable, electrical wire, tools etc.

Water

The project will require water pipe and accessories, valves, water tank steel plate, water pump
etc. The cost of all these has been incorporated in the local machinery cost.

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The Project

The Proposed project has been designed to manufacture Auto Bricks, Blocks of different
kinds/sizes which have wide market demand in the country as well as all over the world.

Production Capacity

The annual rated capacity and product mix of the proposed project at 100% capacity utilization
based on one shifts Operation per day and 300 working days per year has been given in the
following table:

SL.NO. Product Mix Quantity (In pcs.) Unit Price Total Value
(In Taka) (TK .in 000)
01 Bricks 30,000,000 8.00 240,000

Total: 30,000,000 240,000

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Raw materials Requirement
Raw Materials:

SL.NO Quantity Unit Total Amount


Item
. (In Cft.) Price(Tk.) (Tk.in 000,)
Clay 3750 Mt 11,500 43,125

Coal 2,100,000 10 21,000

Total: 64,125

Logistic

The project will carry procured raw materials through water and land with relevant mode of
transport. And also they would deliver the finished brick by truck. The project would be situated
beside river which would be good medium to transport for required clay and coal for
production.

Workforce

The project would require an estimated 95 personnel for its operation. The personnel would
comprise of 70 technical workers directly related to automated brickfield operation and 25
personnel for general and administration purpose totaling 95 personnel for the project.
A. TECHNICAL
The requirement of technical personnel based on one shift operation per day has
been estimated 70 personnel; the allocation of the personnel has been estimated
on the basis of labor requirement of each process as below

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Factory Staff:
. (Amount Tk. In 000)
Position No(s) Salary/ Month Total Salary

Factory Office Staff


10 8,444 1,013.28
Machine Room Staff
20 8,267 1,984.08
Dryer Staff
10 7,500 900.00
Klin Staff
30 8,041 2,894.76
Total 70 6792.12

B .Administrative Staff:
SL.NO Category No. Salary/month Annually Salary
(Tk.in000,)
01.
CEO 1 40000 480
02
General Manager 1 30000 360
03 Manager (Admin &
Personnel) 1 15000 180
04
Manager ( Marketing) 1 15000 180
05 Manager ( Finance &
Accounts) 1 15000 180
06
Manager ( Commercial) 1 15000 180
07
Manager ( Production) 1 15000 180
08
Officer Sales & Marking 1 10000 120
09
Purchase Officer 1 10000 120
10
Stock Officer 1 10000 120
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Commercial Officer 1 10000 120
Accounts & Finance
Officer 1 10000 120

Asst. Sales Officer 1 10000 120

Asst. Marketing Officer 2 10000 240

Asst. Store officer 9 10000 1080

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Security inspector 1 10000 120

Total 25 3900

Building and other civil works.

To implement the proposed project Pretty Auto Bricks Ltd the sponsors of the project will
construct Steel Structured building having measuring areas of .smt.project will include
Office building, factory building the total cost of building has been estimated at Tklac.
The details of which is given below:

SL Items Specifications Rate/Smt. Cost Tk. In


No 000
01 02 03 04 05
01 Kiln 144.35mx 21m
=3031sqm.

02 Drying Chamber 75mx42m=


3150sqm.

04 Silo Store & machine Room 54.5mx58.58m=


3188.25sqm
05 Total:

Machinery and Equipments


The cost of the proposed imported & local machinery and equipments of the project has been
estimated Tk 209,576 thousands excluding duty, tax, internal freight etc. The details of
machinery and equipments have been shown in the quotations enclosed here with.

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Land and Location
The project will be located on a plot of land measuring Bigha
at Kapashia,Gazipur, The cost of land is Tk. 130,000 thousands including registration, land
development cost etc.

The area of land is considered adequate for accommodating the present physical facilities of
the project as well as its future expansion.

The location of the project situated for the implementation of its functional operations since
the necessary infrastructural facilities liked road, communications, power (Electricity supply)
Gas, water supply together with the requisite manpower. Raw materials procurement &
products/ services marketing facilities are available there.

The location being within Gazipur industrial belt is very easily accessible by road transport
without any inconvenience.

The project location will enable the infrastructural provisions & electricity service connections
to be effected ready at reasonable costs, thereby effecting economization in the project
investment cost.

Since, the project location is situated within Gazipur industrial belt, it is expected there shall
be an adequate supply of locally available necessary factory workers & skilled technicians for
the project.

Erection and Installation


Erection and installation of machinery will be done by experts. An amount of Tk. ..lac has
been estimated for this purpose.

Furniture and Fixture& Vehicles


Furniture, Fixture and vehicles of the project has been estimated at Tk lac.

Internal Freight.
An amount of Tk. lac has been estimated for both imported and local machinery to reach
the project site.

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Utilities
I. Water: Water will be required the cost of which has been in corporate in the local machinery
cost as Tk.. lac. Fuel and gas Tk 375,000 thousands.

ii. Electricity
The total electricity to be required for the project has been estimated at 1000 kw at 100%
capacity and it will get from Power Development Board. The related cost has been estimated
at Tk 11 per unit.

Repair and Maintenance

The cost of repair and maintenance for machinery has been estimated @ 0.5%,1% & 1.5%
and onwards of its of machinery and equipments in 1st, 2nd, 3rd and subsequent years of
operation.

Stores & Spares


The stores & spares of machinery to be required has been estimated @ 0.5%,1% & 1.5% and
onwards of its cost of machinery and equipments in 1st, 2nd, 3rd and subsequent years of
operation

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FINANCIAL SUMMARY

Financial Evaluation
The Profitability analysis on the proposed Project has been computed for 10 years of operation
to assess the financial viability of the project. The financial projection that has been made
includes estimate of sales, cost of goods sold, administrative and general expenses. The
consolidated statement showing the result of the project in the earning fore cast statement at
Annexure-iii

Assumption underlying the financial projections


A. The capacity of the project is projected to be 95%, 97%, 98% of the rated capacity in the
1st three years and onwards.

B. The cost of other accessories have been kept constant throughout the period on the
assumption that increase in raw materials will be offset by increase in selling price of products.

C. The rates of depreciation / amortization of various assets of the project are considered as
normal rate that prevails in the industrial sector.

D. Insurance premium is to be charged at 0.50% of the cost of the fixed assets and raw
materials stocks.

E. Other expenses viz.power, fuel & lubricants etc. Are charged as per prevailing market
price.

F. General and administrative expenses are estimated as per prevailing market price.

G. Tax-Holiday for the project has been estimated to be 5 years.

Debt Service Coverage Ratio (DSCR)


The details debt service coverage ratio may be seen at Annexure-x.

45
Break-Even- Analysis
The break-even- analysis has been carried out on the basis of cost & sales of projected
operation. The project is expected to be break-even- at 58% of the rated capacity. The details
of break-even- analysis has been given at annexure- xvii.

Cash flow statement


The projected earning forecast statement indicates that the project will have sufficient fund
generation at the end of the year. The project will be able to all its operational expenses, repay
its debt obligation, provides substantial returns to the sponsors and build a reasonable
reserve. The detailed of cash flow may be seen at Annexure-xi.

Projected Balance sheet


The projected balance sheet also shows that the project will be able to maintain health liquidity
throughout the operational life. The derails of Balance sheet may be seen at Annexure-xii.

Internal are Rate of Return


The internal rate of return has been computed following the DCF technique. The details are
given in Annexure-xv.

Investment Period
The investment period has been considered 7 years.

46
SOCIO-ECONOMIC ASPECTS

Employment Generation:
The project after implementation will create employment opportunity for 70 persons and the
cost per job created will be Tk 4076.53 Thousands

ADDITIONAL EMPLOYMENT GENERATION AND LABOUR INTENSITY :

The proposed project expects to provide permanent employment throughout the year.
Workers, Technicians, administrative and commercial staffs and effect payment of Tk.
187,88.20 thousands annually in the 5th year of projected operation to them in the form of
wages and salaries. This will marginally alleviate the local unemployment situation and the
employees again a livelihood for themselves and their families, besides, this, the proposed
project will create huge indirect employment.

CONCLUSION

As evaluation of the Socio-economic, Private & national benefits, which expected to accrue
from the implementation of this project & continuous execution of its operational activities will
easily highlight the rational & economic justification of establishing this unit. The Project is
expected to generate very substantial financial returns for the promoters, all method of project
appraisal & analysis, financial, management & economic evaluation justify the establishment
& implementation of this unit. The unit will be able to pay to pay income tax, after expiry of tax
holiday period. Such levies & taxes will help to enhance the Governments funds, available for
public sector development expenditure.

47
MARKETING ASPECT

Marketing Aspect:

Objective:

The objective of this market study is to examine and investigate into demand pattern,
sources and uses of Tiles, Bricks .The proposed project will be set-up for manufacturing of
different sizes and types bricks. Brick has employed by most cultures through the ages to
build everything from temples to castle, cottages to factories - even the Great Wall of
China. Favored for its versatility and the readily raw material from which bricks are
fashioned, clay, many ancient buildings such as those built by Romans still stand today!

MARKETING ASPECTS:

INTRODUCTION:

Modern development process has come to produce rapid urban growth. Hence one of the
objectives of planned development is to improve the physical conditioning of living such as
housing and water supply. But as people aspire for comfort rural community also needs to
have access to such basic facilities of life. In fact poor countries have come to be regarded as
rural slums and the rural to urban migration is an attempt to escape it. The program of
development of physical infrastructure, therefore, covers both urban and rural communities in
public and private sectors. The program consists of development of housing office and
commercial buildings, site development for private housing, office & commercial buildings, city
roads etc.

In the Five years plan rather a comprehensive approach was for the first time taken to bring
development to the door of people and steam urban migration. This consisted of the

48
government policy of decentralization of administration and acceleration of development
activities at upzilla level. This policy will require creation of necessary physical infrastructures
there within the frame work of national physical plan and the demand for construction materials
like bricks etc. will also increase.

APPLICATION OF PRODUCTS / SERVICES:

The Products of the project will be automatic bricks, to be produced from local clay. Automatic
bricks have comparative advantage over hand made bricks in respect of unit price,
size/smoothness in surface, bright in color hardness in strength and cheaper as compared to
hand made bricks being produced by the brick fields situated in the rural areas. the initial cost
of this type of project though high but the over head working cost is less. As such this type
of project can supply bricks at a relatively cheaper price. Furthermore it can cater to the large
volume of Government/private institutions/organizations place orders. It may be mentioned
here that some times various public works are interrupted due to shortage of bricks. This type
of project of implemented may be able to solve this problem.

Bricks are mainly used in constructing houses roads and bridges. Bangladesh is a developing
economy and from 1976 onward the economy is striving forward, in both public and private
sectors. With the development of trade and industry and overall expansion of the economy,
construction sector has also exhibited considerable growth. It has already been mentioned
here that bricks are mostly used in the construction of houses apartments, roads and bridges.
Besides the private housing sector, the major users of bricks are the various governments.
Semi-government and autonomous organization of which the following deserve special
mention

49
a) Public works department
b) Roads and Highways
c) Water and power Development
d) Public health Engineering:
e) Rural Electrification
f) Pourashavas and others:
g) Zilla parishad
(i) Thanas
h) Titas Gas etc.

50
TARGET MARKET EXPORT:

Besides export potentiality, the aforesaid products will be marketed locally, as usual practices
that prevail in the country.

PROSPECTIVE BUYERS OF BRICKS IN REAL ESTATE SECTOR:

Besides, Prospective buyers of other sectors there are a good number of property developers
are registered with REAL ESTATE AND HOUSING ASSOCIATION OF BANGADESH
(REHAB). Out of which the largest/ medium standard, property developers who are regularly
develop commercial space and apartment project is shown in TABLE-1

TABLE-1

LARGEST/MEDIUM STANDARD PROPERTY DEVELOPERS IN DHAKA CITY

Sl. Name & Address Large/Medium


no standard
01 ABC REAL ESTATES LTD.
ABC (6th F1) Medium
8, Kamal ataturk Avenue
Banani C/A, Dhaka-1213.
02 ADVANCED DEVELOPMENT CONSULTANTS LTD.
House-15, Road-11/1, Block-B Large
Banani C/A, Dhaka-1213.
03 ADVANCED DEVELOPMENT TECHNOLOGIES
176, Gulshan Avenue Large
North Gulshan, Dhaka-1212.
04 AMIN MOHAMMAD FOUNDATION LTD.
764,Satmasjid Road, Amin Chamber Large
Dhanmondi Dhaka.
105 ASSETS DEVELOPMENT & HOLDING LTD. Large
House -29, Road-39, Gulshan, Dhaka-1212.
06 ATLANTIC DEVELOPMENT LTD.
168, Elephant Road (2nd F1) Medium
Dhanmondi Dhaka.
07 BORAK REAL ESTATE (PVT) LTD.

51
UTC Building, Level-5 Medium
8 Panthapath, Dhaka-1205
08 BUILDING DEVELOPMENT & DESINGN LTD.
36,Topkhana Road (2nd F1) Medium
Dhaka-1000.
09 BUILDING TECHNOLOGIES & IDEAS LTD.
Road-113/A, Plot No.3 & 5 Large
Gulshan, Dhaka-1212
10 CONCORD REAL ESTATE & BUILDING PRODUCT
LTD. Large
8, Mohakhali C/A, Dhaka
11 DOM INNO DEVELOPMENTS LTD.
House-49, Road -17
Banani, Dhaka.
12 EAST WEST PROPERTY DEVELOPMENT (PVT)LTD. Large
195, Motijheel C/A, (13th F1),Dhaka
13 ESTERN HOUSING LTD.
Islam Chamber (6th F1) Large
125/A Motijheel C/A, Dhaka.
14 GREEN DELTA HOUSING & DEVELOPMENT (PVT)
LTD. Medium
Meherba plaza (11th F1)
33, Topkhana Road, Dhaka-1000.
15 MEGA BUILDERS LTD.
42, Satmosjid Road (2nd F1) Medium
Dhanmondi, Dhaka.
16 NAGAR HOME Medium
227, Lake Road, New DOHS, Mohakhali,
Dhaka-1213
17 NAVANA REAL ESTATE LTD.
House-35, Road-9A (New) Medium
Dhanmondi, Dhaka.
18 PROPERTY DEVELOPMENT LTD.
12, R.K. Mision Road, Large
GPO Box -83, Dhaka1212
19 RUPAYAN HOUSING ESTATE LTD. Medium
72, Mohakhali C/A, Dhaka1212
20 SHELTECH (PVT.) LTD
122/1, Kakrail Road (3rd F1) Large
Dhaka-1000.
21 SUVASTU DEVELOPMETN LTD. Large
69/1, Panthapath, Dhaka.
22 THE STRUCTURAL ENGINEERS LTD.
29/1 West panthapath Large
Dhaka-1205
23 URBAN DESIGN & DEVELOPMENT LTD.
House-68 Road -6/A Medium
Dhanmondi R/A, Dhaka.

52
DEMAND/SUPPLY ANALYSIS (AUTOMATIC BRICKS):

DEMAND ANALYSIS AT MICRO LEVEL:

Bricks are heavy in weight and cannot be transported easily and cheaply to any long distance.
Therefore, bricks and like designed ceramic bricks are sometimes brought in form distant
places

The plant under consideration will be located at Keranigonj and is expected to supply bricks
to various parts of Dhaka, Manikganj and Gazipur District.The demand for bricks depends on
the number on additional brick built houses As per census 1991 total household in Dhaka and
Gazipur District stood at 125,487 of which about 50 & a/ has been assumed to be pucca
houses . on the basis of the growth date of 5% per annum, the projected number of pucca
houses has been estimated and is shown in Table 11

Table 11

ESTIMATED NUMBER OF PUCCA HOUSES

Year No. of Houses


1999 1,017,942
2000 1,053,043
2001 1,088,144
2002 1,123,245
2003 1,158,346
2004 1,193,447
2005 1,228,548

It appears from table -111 that the additional number of pucca houses in Dhaka District will
rise from 35101 Nos. on an average per annum. Assuming that each pucca house requires

53
about 40,000 bricks on an average, the total number of bricks to be required for the additional
pucca houses has been worked out 140 .40 crore.

In addition to the demand for bricks in the private sector, huge demand for bricks comes from
the real estate developers for construction of multistoried apartment/ commercial complexes.
The apartment project was started in late 70s in Dhaka city. Ispahani Group is the pioneer in
this sector. But in early 80s with the inception of Eastern housing Ltd. the business stared
flourishing. Now this is a booming sector of the economy. A good number of real estate
developers are now active in this business. During the last decade apartment project has got
tremendous progress. World bank estimated the demand for housing in urban areas of Dhaka,
Chittagong and Khulna for the period 1980 and 2000 as detailed in Table -111

Table -111

DEMAND FOR HOUSING

Item 1980 2000 Demand


for
Housing
Population No.of Population No.of
Houses Houses
Dhaka 35 05 93 17 12
Cittagong 14 02 40 07 05
Khulna 07 01 23 04 03
Total: 56 08 156 28 20

b/ Bangladesh urban Sector Memorandum, May, 1981 world Bank.

The study shows that annually the number of houses required to be built in Dhaka comes to
60,000 units which is likely to be 12 times higher than the number of actual unit constituted
per year. Assuming 40,000 Nos. of Bricks per house the total number of bricks to be required
for apartment project comes to 800, 00 crore pcs.

In addition to the residential household, various Government departments and agencies are
using bricks. Empirical observation reveals that their requirement for bricks would not exceed
10% of the bricks required by household. Hence the total requirement for brick in both public
and private sector would be as shown in Table-1V.

54
Table-1V.

TOTAL REQUIREMENT OF BRICKS

Category Demand in million Nos.


Household 1,404
Apartment 8,000
Government 940
10,344

It appears from Table 1V. that annual requirement of bricks would be about 130 44 million
Nos.

EXISTING SUPPLY:

At present the supply of bricks mostly comes from a bricks fields which produce bricks of
inferior quality which are being sold at a higher price. Due to non- existence of adequate
number of automatic brick manufacturing plant in the area, the household users and the
government and private institutional users are to use mostly this grade of brick to meet their
demand. As such the brick fields will not be the competitor of automatic brick plant rather he
automatic brick plant will have comparative advantage over fields in respect of quality and
price.

MARKET SHARE:

To what extent the proposed project will be able to win over the users by way of creating a
market share for the product will depend on the efficiency of the sponsors to handle
appropriate marketing strategies in the form of determination of product pricing, procurement
of raw materials, maintenance of product quality adoption of promotional measures etc. so
long as the sponsors of the project will be able to adopt suitable and appropriate marketing
strategies it will create effective demand for the product.

55
QUALITY:

Maintenance of quality of bricks is considered to be one of the determinants for the successful
marketing of the product. To have better market the quality of the product must be ensured
otherwise it may not be able to compete in the local market.

The users/ consumers for brick generally look forward to the following properties in bricks:
-Proper size and thickness
-Bright colour:
-Smoothness of surface:
-Strength:

To maintain the above qualities, the project is required to be equipped with automatic
machinery to be handled with efficient personnel. Since the project will be equipped with
automatic machinery, it is expected that it will be able to produce quality bricks as per the
requirement /standard of the users/consumers.

OUT PUT PRICING:

Next to product quality, determination of product pricing plays an important role in achieving
the market share for the project. The prices of the product must be competitive to create a
market share in the domestic market. To be competitive, the selling prices of bricks should be
determined in such a way that it remains at per within the prevailing price structure. Otherwise
it may be difficult for the project to sell their output in the domestic market if the prices are not
maintained at a competitive level. The sponsors of the project are also required to adjust
selling prices are not maintained at a competitive level. The sponsors of the project are also
required to adjust selling prices form time to time with the changing prices of other existing
units. Bricks to be produced from automatic machine being lower in respect of prices the
project may able to enjoy a price advantage and to occupy a major share for his product

56
AVAILABILITY AND PROCUREMENT OF RAW MATERIALS

The basic raw material for use in the plant the sponsors of the project have managed to
procure clay from local sources. Gas is an imported item and will be available form Titas Gas
Transmission and Distribution Company Ltd. The project will not suffer or the production will
not be interrupted /stopped due to shortage of raw materials. The sponsors of the project will
be able to maintain the continuous flow of adequate quantum of raw materials for the project,
so that the production is kept at regular and continuous level.

PROPOSED MARKETING / DISTRIBUTION ARRANGEMENTS:

The products of the project would be supplied to the market through the wholesalers /
Distributors at manufacturers cost according to their order / direct sales from factory and
from their own sales center, Dhaka. Retailers would get supply from the wholesale market /
manufacturers sales Center / Factory.

A Schematic diagram of the distribution channel has been shown as follows:

Table V

Channels of Distribution

Distributors / Agents / Wholesalers


Producers Consumers
Retailers / Sales Centre

PRICE COMPETITIVENESS:

Much attention has been given of the pricing of the products. For such products, product
quality and the price has equal role in penetrating in to the market. Depending on the cost of
raw materials and other inputs required for production, selling price for the products proposed

57
by the unit has been suggested. Special attention has been given to keep the price at a lower
side in comparison to the existing market price.

The proposed price languish the existing Ex-Factory price may be stated in the following

Table V1.

Table V1.

PRICING OF THE PRODUCTS

Proposed Ex-Factory
Particulars Ex-Factory Price
Price
a) Solid Bricks (9.754.75 2.75 8.00/Pc
various Types)

SALES PROMOTIONAL ASPECTS :

Sales Promotion in our country are being done through advertising on the nature of products.
For these products advertising has been proposed. Since the sponsors are having personal
contacts in the wholesale market they with depend on personal selling approach as means of
products promotion. To create mass awareness the proposed project is having a loan to
advertise their product rough Radio, Television, Paper, Stickers, Calendars etc. after going in
to commercial production.

CONCLUSION:

A detailed analysis and evaluation, of the existing and projected worldwide market demand,
producers and consumers, multiplicity of usages economic competitiveness and assessments
of other relevant factors, considerations and criteria will reveal that the projects success
potentials is indeed present and that its future is optimistic.

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