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In the semester system, we have to submit an assignment in the

end of every semester. In this semester (4th) we have to given a

topic regarding with subject of agricultural finance by SIR

KARIMULLAH. As the necessary requirement of the subject I

with my group members select this topic (A short Case On The

Development Of Marble Industry In N.W.F.P) as our final 4th’s

semester report in the subject of Agricultural Finance under

coordination of our subject teacher. Every subject has its own

important while this course helps us a lot in consideration with

understanding of basic agricultural prospective regarding with


Getting pure information is some thing difficult while it’s also takes time to

get data on the relevant topic. The report draws heavily from the experiences

and opinions of the experts in the field of marble industry and personal

efforts. We studied different reports which were prepared on the relevant

topic. In The Month of October the Relevant Topic was assigned to us .

we were gone to different marble industries located on BARA and

JAMROOD. We also went to MALAGORI INDUSTRY for the purposes of

attaining the related data. People are not willingly to provide data because

they considered us as government related officers or some about income tax

officers, which ultimate results in hiding of exact information.

Transportation to these areas also creates problems. People of these areas are

feel hesitation to meet us in English dress which ultimately leads us to

different difficulties too. People of this areas are very helpful and having a

great realm of hospitality. Our personal visit to these areas was something

difficult because of lacking of time, because public transportation takes time

to reach selected sites.



Executive summary.

The marble industry in the N.W.F.P was going to peak but recent

crises effects it much and more.

Marble sector of the Pakistan contributes Pakistan exports largely.

A huge foreign and domestic investment comes for this sector.

Italy would invest $100 million in Pakistan's marble industry.

While the stones of marbles are mostly available in the rural areas

of N.W.F.P, Peshawar. The main theme about our report is to

highlight the different problems regarding with financial and non

financial areas of its processing. Study profiles, entire spectrum of

the local marble ranging from the availability and location of the

deposits to their mining, processing, exporting related problems.

Financial issues and problems in the marble industry of Bara (Peshawar).


My name is rehman I belong t Peshawar I bought this factory from 3 years

from now.
About inside of the factory, I have divided my factory in different portion.
my factory is situated on a huge area, while I have divide the area of my
factory into four main portion or stages the division of my report is based
on stages wise procession of raw material.
Portion 1

This is the main area of factory it is called lifter this portion of factory lift up
the big stone it is further divided into one following parts.
 Chain
 Motor
The total cost of this machine is Rs 150000. This is the most common type
of machine just like a liver which is run by a pump machine. The most risky
factor in my factory because some time chain may be broken while
weakness of string is a risky matter may be it can broken down so that why
my labor feel it risky
Portion 2

This portion is also called Karain which cost lies from 6-8 hundred
thousands. the second most important part of the industry which is further
consisted on following main items and machine.
 Karain. The main machine which is used for lifting the big stones.

 Paltry. It is just like the train paltry used for movement during the
cutting process of stones. I purchased it through scrape centre in
 Upper Blade. The main cutter which is used as a main part in the
cutting process.
 Rightward blade. From the right side it is used for cutting and making
of small pieces.
 Water pump and pipe. for the smooth cutting of the stones and
making it into large thin plates water performs its function well.
 Handle machine. One individual skill person is required for running
the machine, it is just like the computer machine which is controlled
through 2 main gears and handles.
It always required two persons fro its operations. a separate small Room is
required for its operation and its handling.
Portion 3

The third main portion of the machine is consists on 3 main cutters which
further cut the main stones into small parts of 9 inches to 4 inches tiles.
The total cost of the machine is 20-25 thousands per blade which is
consumed with in 10-15 days. Every baled is run and operated through a
water pump whish is a cost of Rs: 100000.
The whole machine is operated and controlled penal board which is
operated by 2 persons. As the big stone of 7-8 tones may be divided into 800
to 1000 feet, as it depends upon the nature and condition of the stones. As
one blade of Rs: 5000 is consumed with in 10-15 days on the daily basis of
cutting of 120 feet.
The 3 employees are required for the whole cutting process, these are
employees are directed related with each others in cutting process.
Portion 4

As the big stones are cut into little small pieces of 9-4 inches .these are
called tiles. These tiles are further are further transferred to a machine for
polishing called buffer. This polishing machine is further divided on
following parts,

 Gutka cost Rs 600

 Buffer cost Rs 1600
 Rag mall Rs 700
 Chemical mixer Rs 245

The total cost of polishing= Rs. 3145

As I feel problems in cost of production, which is further divided into

following consideration on the monthly basis,
total Truck cost per Salary of the Polishing Electricity cost
cost of stone loading employees cost &
per 10 tons during the daily cost of
month food and tee
10000 per 25000 per 60000 per 3145 per 25000 per
month truck in 2 month day month,
weeks &
500 per day on
Rs.10000 per Rs.75000 per Rs.60000 per Rs.94350 Rs.40000 per
month month month per month month

Thus the total cost of the production is Rs.3, 59350.

I have recorded my sale of 300-400 feet of tiles daily while per feet price
of Rs.50.
Thus the total sale per month is (400*30=12000*50=Rs.600000.)

Thus the gross profit on the monthly basis stood at (Rs.600000-Rs359350)

=Rs.240650 per month.
This must be kept in mind that the mentioned gross profit is out of failure
blasting cost, means if one blast is failure then I have to bear Rs 70000-
80000, an extra amount as a loss, which I have to bear alone. My contract is
signed in such a way that I have to do my best in 2 blast while if one become
worthless then an extra loss I have to bear which is as like an expense of
rupees seventy thousands. Now I come to my main consideration of issues
and problems associated with my factory, I have to put inventory like stock
of marble tiles, while due to large financial crises and a huge loss done in
real estate people are unwillingly to buy my product, now because of cost
which is increasing in form of raw material and other fixed expenses.
Instead of systematic risk which can not be eliminated, the availability of
skilled labor is a main problem for me.
Marble along or in combination with some other materials are extensively
used for the construction of all sorts of decoration items, matching many
minds of requirements. Marble sector is growing at an annual rate of 13%
and has been a major provider of raw –tiles, finished tiles and other products
to the provinces of N.W.F.P and Punjab .According to current updates there
are 1450 units in processing in sector of marble industry.

Problems in Mining and production of marble

Mining is done on the old techniques including uncontrolled blasting. The

main problem associated with mining is wastage or marble tiles and stones
as well as more extra cost are bared by the owner of the industry.
An other main problem is associated with basic machinery and equipments
like compressors, drill set and lifters are not available. Which is not only
creates a colossal wastage but also to low production of mines. In this area
average production of mines is 10 tones a day, none of the owner of the
mining and the expert at mines knows the reserves, topography of the mine
and chemical or geological analysis of the stones.
Problems in production process:

The manufacturing processes included cutting and polishing of marble slabs

and tiles.

Initially, these units were using dry cutting process but due to regulatory
measures, most of them switched over to wet cutting process. “Significant
quantity of water is used to cool blades and catch the dust formed during the
cutting process. Water is showered on blades while marble blocks are cut
into sheets of varying thickness.

Resultantly, the water cools the blades and absorbs marble dust produced
during the process,” said the report.

The wastewater is routed to a series of settling tanks, in which marble dust

settles down partially and water is recycled. These settling tanks are not
being used effectively due to arbitrary design and usage, the report added.

Refraining from doing these desired practices the mining industry is

constantly facing problems as follows;

• Loss of up to 73% with poor quality of remaining product

• Destruction of valuable national recourses through cracks.
• Low productivity at mine due to unqualified staff at mines , and low
technology .
• Lack of distribution channels including raw materials and finished
good warehousing.

Problems in major transportation.

There are different hurdles and problems associated with transportation and
its cost of carriage. The truck and heavy tractors are used for this purpose
which ultimately increased the cost of production. The owner of the industry
does not want to own its truck, while he pays approximately 800 per ton.

Problems associated with labors and workers.

There is not availability of skilled labors, while due to inflation workers

demand high wages and salary, while the owner response is negative
impression about electricity, the owner says he has to pay a fixed amount of
bill around about one hundred thousands per month.

Machinery for marble industry

Machinery for working marble constitutes one of the sectors that reflect
Italy’s tradition, ability and leadership in the production of marble and
granite and in technology for quarrying and working them and transforming
them into high-quality finished products ready for use in the building trade.
1) Bench Cutter for splitting – 12” X 24”
2) Resizing Machine, Double blade – 12” X 12”
3) Resizing Machine, Single blade – 24” X 24”
4) Manual Polisher with Pneumatic Pressure
5) Manual Polisher, Single Head
6) Cross Cutter Machine, Double blade;
7) Calibrator Machine, Double head; and
8) Chamfering Machine

Problems in the cost and operation of the machinery.

The cost of machinery is high while to operate it we need most expert labors
while it also need to highlight the importance of skilled labors which
ultimately produced by training institutions.
As profit per feet in a month (240650/12000) =Rs.2 per feet. This is
decreasing at month wise due to increase of raw material cost and high
payment of labor cost, while what should I do for reducing the raw material
cost in the way of production process?

Real estate prices are decreasing day by day, while due to high out flow of
capital from N.W.F.P (Peshawar) to Dubai, now people have any option to
invest in building and construction, while my product is directly related with
construction, what I should do for increasing the production and selling of
my products whether I should do MARKET DIVERSIFICATION and what
proper cost effective channel of distribution to other markets?


As there is systematic risk, that is uncontrollable, and whole economy is

facing a huge financial stress and some time my factory remain off due to
bad circumstances, but I have to pay a huge amount on monthly basis, while
on the other hand there remain no income in certain month so it creates a
financial gap for me, what should I do for completing this gap instead of
going to any financial institution which is considered by my family as