Beruflich Dokumente
Kultur Dokumente
Plastic Pvt.
Ltd.
Fantastic 4 Group
Twister Plastic Pvt. Limited
Fantastic 4 Page 2
Twister Plastic Pvt. Limited
Feasibility report on
IUB
Submitted to:
Submitted by:
Muhammad Aamir
14
Muhammad Umer Shehzad
41
Imran Ali 44
Umer Arshad
74
M.COM (MOR) 4 SEM FINANCE
TH
Fantastic 4 Page 3
Twister Plastic Pvt. Limited
DECLARATION
We hereby declare that the work done in the feasibility report entitled Twister Plastic Pvt.
Limited has been written out by us under the supervision of Lecturer Sir Adeel Akhtar. We also
hereby declare that this report has not been submitted for any degree elsewhere.
Fantastic 4 Group
Fantastic 4 Page 4
Twister Plastic Pvt. Limited
ACKNOWLEDGMENT
Countless thanks to Almighty ALLAH, the Lord of the whole universe and the greatest force
behind success in our life.
We bow our head before ALLAH Almighty, who blessed us with potential and stamina to
complete our project report. First of all we would like to pay our special regards and thanks to
respected teacher Sir Adeel Akhtar who provide us guidance at each and every step in the
completion of this report. We are especially thankful to those personalities who help us for the
Fantastic 4 Group
Fantastic 4 Page 5
Twister Plastic Pvt. Limited
Executive Summary
Project
This proposed project is undertaken to establish a PVC Pipes manufacturing unit at the site of
Small Industrial Area Bahawalpur. There is currently high demand for PVC Pipes in the market.
To fulfill the gap of supply and demand in the market we are going to set up a new PVC Pipes
manufacturing unit. The plant shall be furnished with latest foreign technology and machinery.
Annual capacity of plant will be 1,800 tones at 75% capacity first year and after that plant will
work on 80% capacity. Working of plant will be 300 days in a year and tripled shifts per day 8
hours each. Four types of basic products will be manufactured 3, 4, 6, 12 inches diameters
products.
UPVC Fittings UPVC Fittings ASTM D-2466 (Sch. 40 and 80)
UPVC Pipes as per (ASTM) UPVC pipes (ASTM D-1785 Sch. 40, 80 and D-2241
SDR SERIES)
UPVC Pipes as per (BS-3505/PS-3051) UPVC Pressure Pipes (Class B, C, D & E)
CPVC Pipes For Hot water (ASTM F-441 Sch. 40 and 80)
UPVC Fittings UPVC Fittings ASTM D-2466 (Sch. 40 and 80)
CPVC Fittings CPVC Fittings
Well Casing Pipes Well Casing Pipes (PS 3505) (PS 3051) (Class B, C, D & E)
Sponsors
There are four sponsors of the project. Mr. Muhammad Aamir , Mr. M. Umer, Mr. Imran Ali
and Mr. Umer Arshad. They are only the sponsors of the PVC Pipes manufacturing unit.
Fantastic 4 Page 7
Twister Plastic Pvt. Limited
The serving place and market for the project unit is Bahawalpur. It is selected because all the cities
are surrounding and it is in the center of these surrounding cities. The distribution will be more
convenience. And the capacity of the unit is 1,800 tones production in a year and it will work on
75% capacity level at first year then in the coming years the capacity will be enhanced to 80%.
Project engineering
Different types of machineries are used in the production process. CMAT machine imported from
USA, Mixer machine, die machine, boiler and compressors are purchased from local market.
Man power
Man power is very important factor. Man power of Twister Plastics Pvt. Ltd is 12 plant workers, 4
machine operators and helpers and 1 is the plant manager. All the workers are very skilled and
experienced.
Implementation Schedule
The projected was started from 1 June, 2012. Through the difference phases of project
development the project will be in the operation process on 1 Jan, 2013 INSHALLAH.
Cost of project
Total estimated cost of the project is Rs. 62 million in which Rs. 49.4 million is fixed cost
estimated and Rs. 12.6 million is the estimated variable cost of the project.
Financial Plan
The financial plan is very important for the project decisions. It shows the debt and equity ratio of
the project. The financial plan of Twister Plastics Pvt. Ltd is very simple and straight forward
which is 80: 20 debt and equity ratio.
Fantastic 4 Page 8
Twister Plastic Pvt. Limited
Financial assistance
Financial assistance is taken from MCB, HBl and NBP at the rate of 21% interest rate.
Operating result
There are certain selected operating results for the unit. (000)
2013 2014 2015
Economic indicators
Fantastic 4 Page 9
Twister Plastic Pvt. Limited
There will be employment to the community. The peoples will have benefits due to the
establishment of the unit. Living standard of peoples will be increased. Infrastructure
improvements and other social benefits. The unit will also participate in the national economy as
well.
Fantastic 4 Page 10
Twister Plastic Pvt. Limited
Table of Content:
Introduction to Project...............................................................................................13
Market and Demand Analysis of PVC Pipes................................................................17
WHAT IS PVC?........................................................................................................17
Different Properties of PVC.....................................................................................17
Products....................................................................................................................18
UPVC Fittings UPVC Fittings ASTM D-2466 (Sch. 40 and 80) ..................................18
UPVC Pipes as per (BS-3505/PS-3051) UPVC Pressure Pipes (Class B, C, D & E) .....19
CPVC Pipes For Hot water (ASTM F-441 Sch. 40 and 80) ........................................19
UPVC Fittings UPVC Fittings ASTM D-2466 (Sch. 40 and 80) ..................................20
UPVC Pressure Fittings UPVC Pressure Fittings ......................................................20
CPVC Fittings CPVC Fittings ...................................................................................20
Well Casing Pipes Well Casing Pipes (PS 3505) (PS 3051) (Class B, C, D & E) .........21
Poly Vinyl Chloride Pipes........................................................................................21
GLOBAL MARKET OF PVC...........................................................................................22
Market of Pipe Industry in Pakistan.........................................................................22
PVC Growth Potential in Pakistan...........................................................................23
Technical Analysis.....................................................................................................26
Location of the Project...........................................................................................26
Manufacturing Process...........................................................................................26
Raw Material.......................................................................................................... 26
PRODUCTION CAPACITY.........................................................................................27
Financial Analysis......................................................................................................29
ASSUMPTION UNDERLYING EARNING FORECAST....................................................32
Assumptions:-........................................................................................................ 45
Economical Analysis.................................................................................................47
INITIAL IMPACT.......................................................................................................47
EMPLOYMENT OPPORTUNITIES...............................................................................48
Fantastic 4 Page 11
Twister Plastic Pvt. Limited
Fantastic 4 Page 12
Twister Plastic Pvt. Limited
Introduction to Project
Project was started from 1 June, 2012. This proposed project is undertaken to establish a PVC
Pipes manufacturing unit at the site of Small Industrial Area Bahawalpur. There is currently high
demand for PVC Pipes in the market. To fulfill the gap of supply and demand in the market we are
going to set up a new PVC Pipes manufacturing unit. The plant shall be furnished with latest
foreign technology and machinery. Annual capacity of plant will be 1,800 tones at 75% capacity
first year and after that plant will work on 80% capacity. Working of plant will be 300 days in a
year and tripled shifts per day 8 hours each.
Total cost of project is estimated Rs. 62 million. The proposed project is financed by Debt and
Equity in the ratios of 80: 20 respectively. This total Cost of the project comprises of Fixed Assets
Rs. 49.4 million and Initial Net Working Capital of Rs. 12.6 million.
The project is financed by long term loan up to Rs. 12.4 million and the remaining cost of the
project will be financed by the sponsor's share capital of Rs. 49.6 million. There are four sponsors
of the proposed project Mr. Muhammad Aamir, Mr. M. Umer, Mr. Imran Ali and Mr. Umer
Arshad & loan is taken at 21% of interest rate.
The capacity of the unit is 1,800 tones production at 75% in first year and in the coming years it
will increase to 1,920 tones as 80% capacity. There is much gap is available in the market to fulfill
the gap unit will produce and sell certain level of production and try avail the opportunity and get
maximum benefits.
Fantastic 4 Page 13
Twister Plastic Pvt. Limited
Gantt chart is used to give the sequence of the activities with the time distribution of the project.
Commercial operation
15days
There are certain Government rules and policies about the PVC pipes. Some should be taken to
make society pollution free and make the environment pleasant. Government has restricted to use
the danger chemicals. Use the chemicals which are good for the safety of environment. Make
proper community safety system.
Fantastic 4 Page 14
Twister Plastic Pvt. Limited
The target markets of the PVC pipes unit are all the plastic and iron material retailers and
distributors. Retailers of Bahawalpur and all surrounding cities like Multan, Sahiwal,
Bahawalnagar, Rahim yar Khan, Chishtian, Lahore. These all cities are come in the target market
of the unit. It has a very big market and has more future demand potential. Company will use there
own distribution channels and local channels to make easy and convenience availability of the
PVC pipes.
There are certain promoters of the Twister Plastics. It will have marketing staff, selling staff,
advertisement strategies and local media channels for the promotion purpose. In the start
companies staff and management they promote the company through brushers, cards and personal
marketing.
The project is financed by the sponsors and financial institutions. The fund which is received
through both sources is allocated to the fixed assets and current assets of the company. Fixed assets
are 54,269 is allocated from total assets 107,437 and current assets are 53,168.
The corporate set up is the partnership. There is partnership deed between four members Mr.
Muhammad Aamir , Mr. M. Umer, Mr. Imran Ali and Mr. Umer Arshad. They invest with
equal proportion and also share the loss and profits with equal ratios. All the terms and conditions
are negotiated between them. They all equally participate in management. They all are responsible
for decisions of the company. They also are the management of Twister Plastics Pvt. Limited.
Fantastic 4 Page 15
Twister Plastic Pvt. Limited
Fantastic 4 Page 16
Twister Plastic Pvt. Limited
WHAT IS PVC?
Polyvinyl chloride, PVC commonly known as vinyl is 2nd most sought after thermoplastic. It
is a chlorinated hydrocarbon polymer - its basic building blocks are chlorine, carbon and hydrogen.
While most plastics are made mostly of petroleum, only 40 percent of the PVC molecule comes
from petroleum; 60 percent of it is chlorine, from salt, NaCl.
PVC is used for producing high quality leakage free pipelines for conveying water, sewerage or
effluent, insulating material for electric cables in construction industry, covering for floors, Door &
Window Profiles, Toys, Food packaging, Furniture, Automobile industry, Electronics, Medical
usage and shoe manufacturing industry.
Thermoplastic
Lightweight, toughness and durability
Low thermal conductivity
Good insulation properties
Variety of Colors
Corrosion and abrasion resistance
Weather ability
Fire retardant properties
Fantastic 4 Page 17
Twister Plastic Pvt. Limited
Products
UPVC Fittings UPVC Fittings ASTM D-2466 (Sch. 40 and 80)
TWISTER UPVC Fittings available in sizes from to 12, produced in-house and also arranged
through imports are meant for connections in potable water supply, pressure systems,
sewerage, drainage, housing, industrial, chemical effluents and others. Colors: White and Grey.
UPVC Pipes as per (ASTM) UPVC pipes (ASTM D-1785 Sch. 40, 80 and D-2241 SDR
SERIES)
TWISTER UPVC pipes according to ASTM D-1785 (SCH-40 & 80, and D-2241 SDR Series)
have excellent chemical resistance across their operating temperature range, with a broad band
of operating pressures. Due to their long term strength characteristics, high stiffness and cost
effectiveness TWISTER UPVC systems accounts for a large proportion of piping installation, such
as for potable water supply / conveyance, pressure systems, sewerage, drainage, housing, industrial
Fantastic 4 Page 18
Twister Plastic Pvt. Limited
and chemical effluents. TWISTER UPVC pipes are available in diameters from to 24" in
standard length of 6 meters in white colors.
TWISTER PVC pressure pipes according to specification PS-3051 (BS-3505) are capable
of withstanding under extreme pressure. These pipes are meant for conveyance and distribution of
potable water, sewerage, irrigation, agriculture, under ground fire fighting lines, industrial effluents
and other applications. Pipes classified in Class B, C, D & E according to their pressure rating and
wall thickness are available in diameters from to 24" in standard lengths of 4 and 6 meters.
Color: Grey & Blue.
CPVC Pipes For Hot water (ASTM F-441 Sch. 40 and 80)
Twister PVC pipes according to ASTM F-441 (SCH 40 & 80) produced from a specialized blend
of polymers with a higher class transition point. The Application of PVC pipes include conveyance
of hot water from geyser to end use, chemical, industrial and all kind of hot water distribution for
temperatures up to 93 C. The pipes range starts in diameters from to 12" in standard lengths of
6 meters. Color: Grey.
Fantastic 4 Page 19
Twister Plastic Pvt. Limited
TWISTER UPVC Fittings available in sizes from to 12, produced in-house and also arranged
through imports are meant for connections in potable water supply, pressure systems,
sewerage, drainage, housing, industrial, chemical effluents and others. Colors: White and Grey.
uPVC Pressure Fittings available in sizes from to 24 (imported), for pressure applications in
Industries, chemical plants, R.O. plant, pressure water supply, and pump houses. Color: Grey.
Fantastic 4 Page 20
Twister Plastic Pvt. Limited
Well Casing Pipes Well Casing Pipes (PS 3505) (PS 3051) (Class B, C, D & E)
TWISTER Well Casing / Steiners / Slotted or Perforated / Screen pipes, are produced from UPVC
pressure pipes according to PS-3051 (BS-3505), The applications of these pipes include , wells,
boring, canals, rivers, roadside drainage, playgrounds and others, Available in Class B, C, D & E
in pipe diameters from 3 to 24" in standard lengths of 4 and 6 meters. Color: Grey / Blue.
PVC is a versatile material for piping and has replaced conventional pipes made from conventional
materials such as Galvanized Iron (GI), Cast Iron, Asbestos Cement and Concrete Cement. Its
compatibility with most fluids, lower cost of material handling and installation, unique
combination of properties and availability of highly reliable jointing system makes it an excellent
competitor in the piping world, resulting in a product that is a viable competitor to pipes made
from other materials in dimensions up to 20 inches.
The PVC pipe manufacturing industry has presence in all major industrial cities of Pakistan (i.e.
Karachi, Multan, Burewala, Lahore, Sialkot, Narrowal, Faisalabad, Gujranwala, Gujarat, Jhelum,
Rawalpindi & Peshawar) which consists of around 400 manufacturing units and manufactures
72,000 metric tons annually (2011). These producers can be classified as part of organized and
unorganized sectors. The units can be classified as follows:
Fantastic 4 Page 21
Twister Plastic Pvt. Limited
However, the building and construction industries are the basic marketplaces for pipe and the pipe
industry usually finds itself firmly ensconced among those boom and bust industries which ride the
coattails of our nation's economic fortunes. Another factor of growth in PVC pipes is innovations
in pipe resins, pipe structures and pipe processing technology.
In the global market PVC pipes and fittings constitute the largest volume application at 36% of the
marketplace. Worldwide demand for these pipes is forecasted to increase more than four percent
per year through 2007.
In the European pipe market, plastic pipes rank first among other materials and globally plastic
pipes are used at about 54% of the total pipes used. Polyvinyl chloride (PVC) takes the lion's share
at around 62% of the global market. Polyethylene (PE) has 33.5%, while polypropylene (PP) takes
about 4.5%. In Europe, 1.5 million tons of PVC was used in 2002 to make pipes. Similarly in case
of USA pipe demand is projected to grow 2.5% annually to 15.5 billion feet in 2007.
Market of Pipe Industry in Pakistan
There are different types of materials used for piping in Pakistan such as Asbestos Cement (AC),
Mild Steel (MS), Galvanized Iron (GI), Poly Vinyl Chloride (PVC), Cast Iron (CI), Reinforced
Concrete Cement (RCC) and Ductile Iron (DI). Majority of piping applications used in Pakistan
range from 0.5 to 60 die sizes.
Fantastic 4 Page 22
Twister Plastic Pvt. Limited
In 2011
Fantastic 4 Page 23
Twister Plastic Pvt. Limited
2014 89,483
2015 91,356
Determine the projected supply
Supply side is covered for the PVC Pipes. Almost, 400 units supply the PVC Pipes in the market.
Note: As the gap is +ve for the PVC Pipes, Market have potential. On that base decision will be
made to establish a new unit to fulfill the gap and the unit or project will successful in the future.
Fantastic 4 Page 24
Twister Plastic Pvt. Limited
Fantastic 4 Page 25
Twister Plastic Pvt. Limited
Technical Analysis
The project is proposed to set up at Small Industrial Area Bahawalpur. The site enjoys the
following advantages:-
- Easy availability of raw material
- Access to the main road, Sources of Power, water, fuel etc.
- Availability of transport & communication like telephone, telex, Internet etc.
- Availability of skilled and Un-Skilled manpower
- Free from other environmental hazards like water logging, floods, salinity etc.
Manufacturing Process
Raw Material
Fantastic 4 Page 26
Twister Plastic Pvt. Limited
C) MECHANICAL PRESSING
At this stage the mechanical compression is done. Then through the further manufacturing process
products are developed in the final shapes. The prices of the material are high. Material is used
according to the requirements.
MATERIAL AVAILABILITY
The material is easily available. To see the conditions of Pakistan the availability of material may
be a problem. Although the material for pipe manufacturing is very high cost but the availability in
the market is easy. Chemical received from Engro chemicals and raisin received from other
suppliers.
PRODUCTION CAPACITY
The Plant is capable of 140 bags of raw material usage per day. It is based on 300 working days
per annum and tripled shift per day of eight hours. To fulfill the capacity level foreign technology
and machinery will be adopted. Plant will be capable to produce 2400 tons of output if work at
100% capacity. In the start plant will work on 75% capacity and production capacity will be 1800
tones.
Fantastic 4 Page 27
Twister Plastic Pvt. Limited
Fantastic 4 Page 28
Twister Plastic Pvt. Limited
Financial Analysis
In the financial analysis certain type of statements developed for the proposed project. There is
detail annexure is given.
AnnexureI
Twister PlasticsPvt. Limited (Proposed) SME'sBahawalpur
Estimated Cost of Land
Rs. In(000)
Sr. no. Description Areainmarlas unitcost Total cost
1 Land 140 80,000 11,200
2 Site development expenses 140 1,000 140
3 Registration and legal expenses 140 3,125 437
4 Stamp Duty 140 6,250 875
Total costof land 12,652
Annexu
re II
Twister Plastics Pvt. Limited (Proposed) SME's Bahawalpur
Estimated Cost of Civil works
Rs. In
(000)
Sr. Type of unit of covered rate per Total
no. Description building construction area unit cost
1 Machinery rooms Rcc Square feet 13,613 550 7,487
2 Office rooms Rb Square feet 2,722 650 1,769
3 Store room Rb Square feet 12,251 550 6,738
4 Ware house Rb Square feet 8,167 500 4,084
5 Bath rooms Rb Square feet 816 500 408
6 Boundary walls Rb Square feet 3,750 80 300
7 Guard room Rb Square feet 544 500 272
8 Contingencies 1,000
Total cost of civil 22,058
Fantastic 4 Page 29
Twister Plastic Pvt. Limited
works
AnnexureIII
Twister PlasticsPvt. Limited(Proposed)SME'sBahawalpur
EstimatedCost of Machinary
Rs.In(000)
Sr.no. Description Qty unitcost Total cost
1 CMAT 1 1,00,00,000 10,000
2 Mixer 1 15,00,000 1,500
3 Die 1 500,000 500
4 Boiler andcompresor 1 12,00,000 1,200
5 Motor pump 2 25,000 50
6 Generator 1 12,00,000 1,200
7 Installationof machinary 250
8 Transpotationcost 1,320
9 Insurancecost 660
Total costofmachinary 16,680
AnnexureIv
TwisterPlasticsPvt.Lim ited(Proposed)SME'sBahawalpur
Estim atedCostofProject
Rs.In(000)
Sr.no. Description Totalcost
1 Land 5,827
2 Building 22,058
3 Machinary 16,680
4 Vehicles 2,600
5 Furnitureandfixtures 800
6 Officeequipment 300
7 Preoperatingexpenses 1,200
Estim atedtotalfixedcost 49,465
Add Initial networkingcapital 12,625
Totalestim atedcostofproject 62,090
Fantastic 4 Page 30
Twister Plastic Pvt. Limited
Annexurev
TwisterPlasticsPvt.Limited(Proposed)SME'sBahawalpur
Estim atedNetinitial workingcapital
Rs.In(000)
Description Am ount
Current assets
Cash 9,000
A/R 700
Inventory
Rawmaterial 5,000
Finishgoods 2,700
Prepayments 1,000
Totalcurrentassets 18,400
Current liabilities
Loan75%of inventories 5,775
Netinitial workingcapital 12,625
Fantastic 4 Page 31
Twister Plastic Pvt. Limited
1. The proposed PVC unit is based on modern technology and raw material consumption
will 140 bags per day.
2. Operating efficiency of the project is assumed at 75% for the first year and 80% for the
second 80% for third and subsequent years.
3. In line with recent experience of other units based on the most modern pipes machinery,
100% of the production would be sold locally in local market of Bahawalpur and other
surrounding cities.
4. Year-end Inventory is assumed at 10% of the production of that particular year.
5. Selling Prices are assumed in accordance with the current prevailing rates in the local
market. These selling prices are based on average of last five years.
Based over these assumptions, following is the year-wise detail of production, Sales and Sales
Fantastic 4 Page 32
Twister Plastic Pvt. Limited
Annexure vi
Twister Plastics Pvt. Limited (Proposed) SME's Bahawalpur
Estimated Income statement
Rs. In (000)
Description 2013 2014 2015
Sales revenue 251,424 294,641 297,734
Cost of sales
Raw material 184,961 197,292 197,292
Labor 6,077 6,685 7,353
Overheads 12,200 12,740 13,258
Depreciation 5,204 5,204 5,204
208,44 221,92
Total cost of manufacturing 2 1 223,107
Inventory adjustment -less 20,844 1,348 119
Cost of sales 187,598 220,573 222,988
Gross profit 63,826 74,068 74,746
Operating expenses
General and administrative expenses 6,130 6,490 6,886
Selling expenses 17,600 20,625 20,841
Total operating expenses 23,730 27,115 27,727
Operating profit 40,096 46,953 47,019
Interest expenses 4,657 4,191 3,725
Amortization of pre-production exp. 400 400 400
Profit before workers fund 35,039 42,362 42,894
Workers fund 8,764 10,322 10,546
Net profit 26,275 32,040 32,348
Fantastic 4 Page 33
Twister Plastic Pvt. Limited
Annexure vi A
Twister Plastics Pvt. Limited
(Proposed) SME's Bahawalpur
Assumption underlying earnings forecast
Production at 100% capacity
PVC Pipes manufacturing
%
No of outp Quantity in
140 bags of raw material / day vessals ut ''tones''
3'' PVC Pipes 4 30 720
4'' pipes 4 20 480
6'' pipes 4 30 720
12'' pipes 4 15 360
wastage 4 5 120
Total 2,400
Annexure VI A
Cost
of Production
Raw Material
Years 2013 2014 2015
Capacity utilized 75% 80% 80%
Required raw material:
Quantity in
Description ''tones''
140 bags of raw material / day 1,800 1,920 1,920
Total quantity consumed 1,800 1,920 1,920
Fantastic 4 Page 34
Twister Plastic Pvt. Limited
Description Rs in ''000''
197,2
Raw material @ 102,756 per tone 184,961 92 197,292
197,2
Total cost 184,961 92 197,292
Annexure VI A
Labor cost
No. of Salary/Month/W Annual salary
Plant labor Employees orker ''000''
Plant manager 1 60,000 720
Machine operators 2 30,000 720
Helper 2 20,000 480
Plant labor 12 16,000 2,304
Pean and sweeper 4 10,000 480
Guard 2 10,000 240
Store keeper 1 20,000 120
Total 5,064
Fringe benefits on basic
salary 20% 1,013
Total labor cost 6,077
Annexure VI A
Fantastic 4 Page 35
Twister Plastic Pvt. Limited
Fixed cost
Electricity expense 800
Insurance expense 1,500
Machinery and Building
maintenance 1,800
Total fixed cost 4,100
Variable overheads
Electricity expense 9,000
Machinery and Building
maintenance 1,800
Total variable over heads 10,800
Fantastic 4 Page 36
Twister Plastic Pvt. Limited
Annexure VI A
Year ending 30th December
Capacity utilized 2011 2014 2015
75% 80% 80%
Quantity in
tones
Production of 3'' PVC Pipes
a) No of units manufactured 540 576 576
Add: Opening inventory 54 58
Total units available for sale 540 630 634
Less: Closing inventory 10% of
production 54 58 58
Units sold 486 572 576
Fantastic 4 Page 37
Twister Plastic Pvt. Limited
Annexure
VI A
Selling expensses
Selling expensses are
assumed to be 7% of sales revenue
Description 2013 2014 2015
Rs in
''000''
Selling expneses 23,270 27,148 27,535
Annexure
VI A
Administrative and general expenses
Salary Annual
No of / salary in
Designation Employees Month '000'
Managing director 1 120,000 1,440
Accountant 1 40,000 480
Fantastic 4 Page 38
Twister Plastic Pvt. Limited
General expenses
Year
expensis
Description in '000'
Traveling expenses 300
Printing and stationary 180
Telephone, telex and postage 180
Rent and taxes 1,200
Entertainment 200
Legal and audit 170
Miscelllaneous 300
Total 2530
Assumption:
Administration salaries will increase @ 10% every year
Depriciation Rs in ''000'''
15% of building 3,309
10% of Machinary 1,668
6% vehicles 156
7% of furniture and fixtures 56
5% of office equipments 15
total 5,204
Fantastic 4 Page 39
Twister Plastic Pvt. Limited
Annexu
re VII
Twister Plastics Pvt. Limited
(Proposed) SME's Bahawalpur
Estimated Cash Flow Statement
Rs. In (000)
Opera
ting years
years ending Dec. 31 2012 2013 2014 2015
SOURCES OF FUNDS:
47,0
Operating Profits 0 40,096 46,953 19
Depreciation 0 5,204 5,204 5,204
52,22
Total Funds from Operation 0 45,300 52,157 3
Other Sources:
Fantastic 4 Page 40
Twister Plastic Pvt. Limited
31,0
Long Term Loan 45 0 0 0
short term Bank Borrowings 0 0 0 0
31,0
Paid-Up Capital 45 0 0 0
62,0 52,22
Total Sources of Funds 90 45,300 52,157 3
APPLICATION OF FUNDS:
48,2
Investment in Fixed Assets 65 0 0 0
Financial Charges during Construction 0 0 0 0
1,20
Pre-Production Expenses 0 0 0 0
Repayment of:
Long Term Loan 0 0 3,105 3,105
Annexure VIII
Twister Plastics Pvt. Limited (Proposed) SME's Bahawalpur
Estimated Balance sheet
Rs. In (000)
End of Oper
Construction ating years
Fantastic 4 Page 41
Twister Plastic Pvt. Limited
Fantastic 4 Page 42
Twister Plastic Pvt. Limited
Annexure IX
Break even analysis
20,491
Break even point =-----------------------------------------
*75%
251,424 -- 216,738
Break even point 44.30%
Annexure IX
Twister Plastics Pvt. Limited (Proposed) SME's
Bahawalpur
Break Even Analysis
Fantastic 4 Page 43
Twister Plastic Pvt. Limited
49,203
Breakevenpoint =-----------------------------------------*80%
297,734 -- 213,803
Breakevenpoint 46.90%
A n n e x u re - X I
Twister Plastics Pvt. Limited (Proposed) SME's Bahawalpur
C a lc u la tio n o f In te rn a l F in a n c i a l R a te o f R e tu rn
Rs in ''0 0 0 ''
C a p it a lO p e ra t in g W o rk e r's N e t C a s hN e t C a s h I n flo w
Y e a rs O u t la y P ro fit D e p re cia t io n F u n d T a x e s R e t u rn ( O u t flo w )
0 5 5 ,4 6 5 - - - - - -5 5 ,4 6 5
1 3 0 ,2 3 1 4 0 ,0 9 6 5 ,2 0 4 8 ,7 6 4 0 3 6 ,5 3 6 6 ,3 0 5
2 1 8 ,2 1 6 4 6 ,9 5 3 5 ,2 0 4 1 0 ,3 2 2 0 4 1 ,8 3 5 2 3 ,6 1 9
3 1 7 ,3 7 0 4 7 ,0 1 9 5 ,2 0 4 1 0 ,5 4 6 0 4 1 ,6 7 7 2 4 ,3 0 7
4 0 4 7 ,0 1 9 5 ,2 0 4 1 0 ,5 4 6 0 4 1 ,6 7 7 4 1 ,6 7 7
5 - 4 7 ,0 1 9 5 ,2 0 4 1 0 ,5 4 6 0 4 1 ,6 7 7 4 1 ,6 7 7
6 1 ,5 0 0 4 7 ,0 1 9 5 ,2 0 4 1 0 ,5 4 6 0 4 1 ,6 7 7 4 0 ,1 7 7
7 - 4 7 ,0 1 9 5 ,2 0 4 1 0 ,5 4 6 1 6 ,4 1 3 2 5 ,2 6 4 2 5 ,2 6 4
8 - 4 7 ,0 1 9 5 ,2 0 4 1 0 ,5 4 6 1 6 ,4 1 3 2 5 ,2 6 4 2 5 ,2 6 4
9 - 4 7 ,0 1 9 5 ,2 0 4 1 0 ,5 4 6 1 6 ,4 1 3 2 5 ,2 6 4 2 5 ,2 6 4
10 - 4 7 ,0 1 9 5 ,2 0 4 1 0 ,5 4 6 1 6 ,4 1 3 2 5 ,2 6 4 2 5 ,2 6 4
11 1 ,5 0 0 6 0 ,3 4 5 2 ,7 5 5 4 ,8 2 8 2 4 ,9 8 3 3 3 ,2 8 9 3 1 ,7 8 9
12 - 6 0 ,3 4 5 2 ,7 5 5 4 ,8 2 8 2 4 ,9 8 3 3 3 ,2 8 9 3 3 ,2 8 9
13 - 6 0 ,3 4 5 2 ,7 5 5 4 ,8 2 8 2 4 ,9 8 3 3 3 ,2 8 9 3 3 ,2 8 9
14 - 6 0 ,3 4 5 2 ,7 5 5 4 ,8 2 8 2 4 ,9 8 3 3 3 ,2 8 9 9 9 ,4 3 2
15 - 4 1 ,3 1 0 6 0 ,3 4 5 2 ,7 5 5 9 ,6 5 6 4 9 ,9 6 5 3 ,4 7 9 4 4 ,7 8 9
IFRR 42%
Fantastic 4 Page 44
Twister Plastic Pvt. Limited
Assumptions:-
Calculation of IFRR for the project has been carried out under the following assumptions:-
1. The economic life of the project would be 15 years
2. The entire capital outlay would be incurred one year prior to the
Commencement of commercial operations;
3. Motor Vehicles and operating equipment would be replaced after
Every five years;
4. Salvage value at the end of the life of the project represents
Recovery of working capital, book value of buildings, office
Furniture and fixtures and original value of land.
Fantastic 4 Page 45
Twister Plastic Pvt. Limited
Fantastic 4 Page 46
Twister Plastic Pvt. Limited
Economical Analysis
Economic evaluation is considered prominent yardstick to measure the viability of a project. This
analysis is directed towards determining whether the project is likely to contribute significantly to
the development of the economy as a whole and the contribution of the project would be great
enough to justify the use of available resources. This aspect is reviewed under the following:-
INITIAL IMPACT
In order to pursue a theory of balanced growth of the economy the current government is putting
an emphasis on industrialization of our inherently agrarian economy. Industrialization of
substantial dynamic benefits is important for changing the traditional structure of our less
developed economy, while providing employment for a rapidly increasing labor force, and saving
scarce foreign exchange by import substitution and creating export potentials.
A capital expenditure creates incomes for people engaged in the fabrication of capital goods, who
in turns spend their incomes on consumer goods. An initial original capital investment creates a
wave of income and spending which has multiplied effect on the national income, increasing it by
several times, the original investment. The initial original capital investment of Rs. 62 million in
local currency would have a healthy impact on the GNP of the country, the extent of which
depends on the degree of multiplied effect.
It may have major contribution to the society benefits. There will be employment, infrastructure
improvements and that will be a factor to improve the living standards of the peoples.
Fantastic 4 Page 47
Twister Plastic Pvt. Limited
EMPLOYMENT OPPORTUNITIES
The project would create employment opportunities for the following staff:
Detail Total Nos.
Skilled Labor 15
Factory Administrative Staff 14
Marketing Staff 02
The benefit/Cost ratio of the project is worked out in times which are considered satisfactory. The
NPV of the expected benefit and costs has been taken into account for the calculation of this ratio.
Fantastic 4 Page 48
Twister Plastic Pvt. Limited
Fantastic 4 Page 49
Twister Plastic Pvt. Limited
Ecological Analysis
It is the analysis how the project is beneficial for the environment and what will be the problems
due to the implementation of the plant. The project may be more beneficial for the society and
environment because there will be improvements in the environment with respect to infrastructure,
employment to society, improvements in the living standards, development structures, better
education system, health system and other facilities.
Speciality Services
As per customer requirement a complete inventory of UPVC and CPVC valves and fittings in all
configurations is readily available, making Twister a one-source supplier for virtually any piping
systems application.
Too much lead in the body can seriously injure the brain, nervous system, the kidneys and red
blood cells. The symptoms of higher levels of lead in the body is manifested by and can cause
mental retardation, fits (convulsions), falling out (unconsciousness, coma), and even death.
In the years past, that kind of effect was called lead poisoning. Exposures high enough to cause
coma and death are very uncommon today, but they haven't disappeared totally. As we keep using
more lead there will be more exposure to lead in the environment.
Lead accumulates in our bodies, and especially in children's bodies. Exposure to small amounts of
lead over time can mean a long-term accumulation of lead in a child, raising the child's risk of bad
health effects. Pregnant women who have lead stored in their bones may release some of that bone
lead into their K blood, where it can reach the womb and fetus during pregnancy. That kind of
transfer potential makes us think about lead exposures in today's children and what that may mean
for the children.
Twister UPVC Pipe has very impressive performance record in commercial housing, multi-storey
buildings & public health projects for hot & cold water including high-pressure requirements. By
launching Twister Jadeed (the Lead Free Pipe) we insure that public health is our first priority
and our social responsibility.
Fantastic 4 Page 50
Twister Plastic Pvt. Limited
There may be some problems to the society due to the implementation of unit. Pollution problems,
chemicals, sewerages, water and smell problems. These problems may arise but before that there
will proper arrangements to remain safe from these problems. There will be proper arrangements
and implementations of society safety systems. All the government rules will be followed and
there will be no objection or issue to any person in the society.
Twister piping products are inspected, handled and loaded with great care at the factory using
methods that have been developed specifically for plastic pipe to ensure that damage is minimized
and overall quality is maintained during shipping. It is the carriers responsibility to deliver the
shipment in good condition. It is the receivers responsibility to ensure that there has been no loss
or damage, and that the products are unloaded and stored properly after receipt. Reasonable care
and common sense should be used when handling and storing Twister thermoplastic piping
products.
Thermoplastic pipe and fittings may be stored indoors or outside in yards. If stored outdoors, pipe
and fittings should be protected from direct exposure to sunlight, and pipe should be properly
supported in storage to prevent sagging or bending. Pipe should be stored at the job site on level
ground in the unit packages (skids) provided by the factory. Caution must be exercised to avoid
compression, damage or deformation.
Thermoplastic pipe must not be stored in tightly enclosed areas subject to elevated temperatures or
close to heat producing sources such as heaters, boilers, steam lines, engine exhaust etc. Exposure
to excessive temperatures will result in distortion and deformation of the product. When stored
outdoors Twister thermoplastic pipe must be covered with a non-transparent material. This
covering must provide adequate air circulation above and around the pipe as required to prevent
excessive heat absorption that can result in discoloration and deformation of the product. PVC
piping products in storage should not be exposed to temperatures above 150F. CPVC piping
products in storage should not be exposed to temperatures above 210F.
Although Twister products are tough and corrosion resistant, they should not be dropped, have
objects dropped on them, nor subjected to external loads. Thermoplastics can be damaged by
abrasion and gouging. Pipe must not be dragged across the ground or over obstacles. Impacts such
Fantastic 4 Page 51
Twister Plastic Pvt. Limited
as dropping from sizable heights and/or rough handling should be avoided, particularly in cold
weather. The product shall be inspected for any scratches, splits or gouges that may have occurred
from improper handling or storage. If found, these sections must be cut out and discarded.
Safety
Thermoplastic piping is a general term applied to a variety of different plastics. A user of plastic piping
should select the kind of plastic best suited for his use.
Special care must be used to apply proper engineering, design and installation procedures.
Twister recommends against the use of its thermoplastic piping systems for transport or storage of
compressed air or gases. Trapped air must be removed from liquid piping systems so that no air remains
locked in the system when pressure is applied to the liquid. Excessive surge pressure must be avoided.
Surge pressure can develop if liquid movement through the pipe is near maximum velocities and valves
are closed abruptly. Maximum velocity is generally considered to be five feet per second.
Failures can occur at the joints connecting the pipe and the fittings. For example, threaded joints have a
diminished wall thickness because of the cut of the thread into the wall. Also, improperly cemented joints
will leave the strength of the joint impaired.
Temperature extremes, both hot and cold or changes in temperature can result in failures of plastic pipe in
the following cases:
(1) Breakage or other damage on the job site in cold weather can be caused by impact with tools, vehicles
or rocks.
(2) Heat of solution of chemicals or heat from other sources can cause failure because the piping systems
will be distorted.
(3) Wide variations in temperature when the pipe is restrained as in concrete or is otherwise anchored can
lead to cracking and breakage.
(4) Freezing of pipe contents when the line is full can lead to breakage.
(5) When heat is introduced by a pump especially when on recirculation, the pipe or joints can fail.
(6) Expansion and contraction can cause leakage or breaks at joints.
there are the safety requirements and work done by the company.
Fantastic 4 Page 52
Twister Plastic Pvt. Limited
Project Limitations
Time availability
Short of time
Fantastic 4 Page 53
Twister Plastic Pvt. Limited
Suggestions
For the project high level of technical and intellectual skills needed
There should be proper coordination and cooperation between the group members and all
relevant peoples.
Fantastic 4 Page 54