Welcome to

Our
Presentation
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 PRESENTED BY:
NAME ID PROGRAM

Md.Inzamam-ul-Islam 14105009 BSEEE

Md.Nazmul Hossain 14105042 BSEEE

Md. Monuarul Islam 14105046 BSEEE

Prince Sarker 14307004 BSME

Md.Rabby Hasan 14307005 BSME

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 Presentation Topic

Feasibility Study on Ceiling Fan

Manufacturing Plant

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CONTENTS
 Introduction
 Market
 Raw Material
 Process Technology
 Utility
 Location
 Environment Impact
 Investment Cost
 Operational Cost
 Profitability Analysis
 Findings
 Recommendations
 Conclusion
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 FEASIBILITY STUDY OF A PROJECT

It is a process of studying viability of a project

A feasibility study aims to objectively and

rationally uncover the strengths and
weaknesses of an existing business or
proposed venture, opportunities and threats
present in the environment, the resources
required to carry through, and ultimately the
prospects for success.
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WHY VIABILITY STUDY?

 Future is uncertain.
 Projects to be implemented in future so all
projects are uncertain.
 Each project involves an investment.
 The investor wants a return on his investment.
 The lender wants the money back.

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 PURPOSE OF PROJECT

Mission: Sustainable product for a reasonable price

Vision: “To grow electrical business in our country”

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 BACKGROUND
A ceiling fan is a mechanical fan, usually
electrically powered, suspended from
the ceiling of a room, that uses hub-mounted
rotating paddles to circulate air.
 The first ceiling fans appeared in the early 1860s
in the United States. That time steam water used to
rotate fan.
 The electrically powered ceiling fan was invented
in 1882 by Philip Diehl.

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 USES OF CEILING FAN

 Cheap air-cooling.

 A ceiling fan provides energy-efficient cooling.

 Ceiling fan can supplement or even replace

conventional air conditioning depending on a
home's location.

 Ceiling fans can make a room feel 4 to 5

degrees Fahrenheit cooler.
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 ADVANTAGES OF CEILING FAN

 Fans keep the rooms airy and breezy. They

not just provide coolness but also disallow
stuffiness to set in.
 Reduce the power bill: Fans have an added
advantage over an AC in the cost
department.
 Acts as a backup of your AC.
 One more reason why fans are so necessary
is that they keep insects and flies at bay.
 The low prices are always a big lure.
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PARTS OF A CEILING FAN

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 METHODOLOGY

The basis of ceiling fan manufactures

 What is the main concept

 How much land require

 How risk factor and other factor impact on project

Primary data sources are

 Internet

 Company profile

 Publication of Bangladesh Electrical Merchandise

Manufactures Association

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 Limitation

 Difficulty in accessing latest data of internal operations.

 It is difficult to provide customer related information regarding
their service.
 Its need much more time and manpower to make a good
feasibility report.
.

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 MARKET

 Situational Analysis

 Market Survey

 Characterization of Market

 Demand Forecasting

 Market Planning

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 SITUATIONAL ANALYSIS

Number of company 86

Employment 3000

Major Cluster Major Cities

Fan demand 10 million

Local production 9.8 million

Market demand Tk. 120 billion

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 MARKET SURVEY

 Total Demand
 Demand in different segments
 Satisfaction with exiting products
 Unsatisfied needs
 Attitudes towards various products
 Socio-economic characteristics of the buyers

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 TOTAL DEMAND

 Total demand of ceiling fan is 10 million per

annum

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LIST OF CEILING FAN COMPANY IN
BANGLADESHI MARKET

 National Fan Industry Limited

 Singer Fan Company Ltd

 G.E.C. Bangladesh Ltd.

 Shena Kollyan Songostha

 Taher and Sons

And so on.
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SATISFACTION WITH EXITING PRODUCTS

 Most of the renounce company products are

good.
 There are some small company they produce
low quality fan in low budget.
 Some companies fans are costly.

 People of rural area buy low quality fan in

cheap rate.

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ATTITUDES TOWARDS VARIOUS PRODUCTS

 People of our country always want good

product in reasonable price.
 People like long lasting products.
 Now a days people want artistic product.
 The product should be low current
consumption.

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SOCIO-ECONOMIC CHARACTERISTICS OF THE BUYERS

 Most of the people of Bangladesh are middle

class so they want everything in their
financial range.
 Some people want new design and different
features.
 Longibility is a prime demand.

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CHARACTERIZATION OF THE MARKET

 Effective demand in the past and present

 Breakdown of demand
 Price
 Methods of distribution and sales promotion
 Supply and competition
 Government policy

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 RAW MATERIAL

 Type of raw material

 Sources

 Demand

 Supply

 Mode of transportation

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 TYPE OF RAW MATERIAL
 Fan Blades.
 Fan Stamping.
 Fan Shaft.
 Fan Capacitor.
 Fan Down Rod.
 Fan Canopies.
 Fan Bearings.
 Copper wire.

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CEILING FAN WE WILL PRODUCE

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 SOURCES
 Most of the raw material suppliers found in China
and India.

 Electronics parts we imported from China.

 Some accessories like bearing, shaft, canopy,

designing material will collected from domestic
market.

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 MODE OF TRANSPORTATION

 For local market we can use covered van as

transportation medium.

 We can also use our river port.

 For exporting we can use sea port.

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 PROCESS TECHNOLOGY

 Outline of process technology

 Availability and proneness

 Comparative technology

 Level of technology

 Availability of manpower

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 UTILITY

 Electricity is must needed for running a

manufacturing plant. We want to setup in
industrial area so easy to get electricity.
 Water also needed. We can use river or
underground water.
 Gas or fuel will need if we run a generator.

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 LOCATION

 Proximity to market

 Proximity to port

 Availability of raw material

 Availability of utility

 Availability of skilled technical manpower

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 LOCATION CONT.

The location of our project can

be in the area of Mawna,
Gazipur. Its already a industrial
area so every utility is available
and transportation system is
good.

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 PROXIMITY TO MARKET

 Gazipur is about the center of Bangladesh and very

close to Dhaka and Savar.

 In Bangladesh the main local markets of ceiling fan

is divisional city and other city.

 It is very easy to cover the local markets.

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 AVAILABILITY OF RAW MATERIAL

 Some electronics part is not available in our

country.

 We can collect it from China.

 Some accessories we collect from local

market.

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 AVAILABILITY OF UTILITY

 To run this plant we need uninterrupted electricity.

 There are some power house in this area so we can

get proper utility.

 There is a four lane highway so its very easy to get

transport facility.

 So it’s a good place to set up a manufacturing plant.

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 MANPOWER

 Manpower are available but Skilled technical

manpower is hardly available.
 Have to trained few engineers by other
experienced engineer.
 Proper trained engineers are good luck for a plant.
 Extra cost for the project but give us more benefit in
future.

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 ENVIRONMENTAL IMPACT

 Every industry has a bad impact on

environment.

 We use underground water & it causes water

crisis.

 Manufacturing plant pollute air, soil, water.

 It emit Carbone di oxide that increase

temperature. 36
 Investment Cost
Items L.C. Total (Taka)
Land (4.5 Acres) 60000000 60000000

Building 10000000 10000000

Machinery 10000000 10000000

Installation 5000000 5000000

Know-how 3500000 3500000

Off.eqpmnt. 1500000 1500000

Pre-oprtive 1000000 1000000

IDLC 6000000 6000000

Total 97000000 97000000

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 OPERATIONAL COST

Items Cost
Raw material 3500000
Utility 800000
Manpower 900000
Maintenance 100000
Overhead cost 200000
Financial charges 500000
Total 6000000

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 PROFITABILITY ANALYSIS

Profitability analysis can be measured in various

way. Here we calculated in two way as follows:

 Benefit Cost Ratio (BCR).

 Internal Rate of Return (IRR).

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 BENEFIT COST RATIO(BCR)

 BCR can be defined as the ratio of present value of

benefit to the initial investment.
 Benefit cost ratio (BCR) takes into account the
amount of monetary gain realized by performing a
project versus the amount it costs to execute the
project.
 The higher the BCR the better the investment.

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 BENEFIT COST RATIO

Investment cost (Taka) 97000000

1st year benefit (Taka) 60000000

2nd year benefit (Taka) 60000000

3rd year benefit (Taka) 60000000

Interest rate 15%

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BC ratio is to be greater than 1. So the business is profitable
business.

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 INTERNAL RATE OF RETURN(IRR)

 IRR is the discounted rate at which the net present value

is zero.

 The IRR measures how well a project, capital

expenditure or investment performs over time.

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INTERNAL RATE OF RETURN (IRR)

Investment cost 67200000

1st year benefit 40000000

2nd year benefit 40000000

3rd year benefit 40000000

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THE EQUATION TO FIND OUT IRR IS;
INVESTMENT = SUMMATION OF CT/(1+R)^T
C=CASH FLOW AT THE END OF YEAR T
R=INTERNAL RATE OF RETURN
T=ECONOMIC LIFE OF THE PROJECT
97000000= [ {60000000/(1+R)1 } + {60000000/ (1+R)2} +
{60000000/ (1+R)3} ]

By trial an error say r=37% then

RHS=
[ {60000000/(1+0.37)1 } + {60000000/ (1+0.37)2} +
{60000000/ (1+0.37)3} ]
= 99097245.69
Now, NPV = 99097245.69 - 97000000
=2097245.691 45
Say r=38%
RHS=
[ {60000000/(1+0.38)1 } + {60000000/ (1+0.38)2} +
{60000000/ (1+0.38)3} ]
=97814671.74

Now, NPV = 97814671.74 - 97000000

= 814671.74

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SAY R=39%

[ {60000000/(1+0.39)1 } + {60000000/
(1+0.39)2} + {60000000/ (1+0.39)3} ]
= 96560979.05

Now, NPV = 96560979.05 -97000000

= -439020.95

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Now,
814671.74+439020.95
=1253692.69

IRR is,

38+ (814671.74/ 1253692.69) = 38.65%

39 - (439020.95/ 1253692.69) = 38.65%

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 FINDINGS

 Project is risky.

 Face political and economical problems.

 Challenges to competitor.

 Need Government help.

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 RECOMMENDATION

 Create opportunity field in the market.

 Project duration should reduce.
 Get a competitive advantage.
 Public consciousness for country-made product.
 Trained our personnel and employee for effective
production.

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DO YOU HAVE ANY QUESTION ?

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