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Pre-Feasibility Study
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Small and Medium Enterprise Development Authority
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
6
th
Floor LDA Plaza Egerton Road, LahoreTel 111 111 456, Fax 6304926-7 Websitewww.smeda.org.pk Helpdesk@smeda.org.pk 
REGIONAL OFFICEPUNJABREGIONAL OFFICESINDHREGIONAL OFFICENWFPREGIONAL OFFICEBALOCHISTAN
8
th
Floor, LDA Plaza,Lahore,Tel: (042) 111-111-456Fax: (042)6304926-7helpdesk@smeda.org.pk 5
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Floor, BahriaComplex II, M.T. Khan Road,Karachi.Tel: (021) 111-111-456Fax: (021) 5610572Helpdesk-khi@smeda.org.pk Ground FloorState Life BuildingThe Mall, Peshawar.Tel: (091) 9213046-47Fax: (091) 286908helpdesk-pew@smeda.org.pk Bungalow No. 15-AChaman Housing SchemeAirport Road, Quetta.Tel: (081) 831623, 831702Fax: (081) 831922helpdesk-qta@smeda.org.pk 
September 2008
 
Pre-Feasibility Study UPS & Stabilizer Assembling Unit 
Page 1 of 28
DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subjectmatter and provide a general idea and information on the said area. All the materialincluded in this document is based on data/information gathered from various sourcesand is based on certain assumptions. Although, due care and diligence has been taken tocompile this document, the contained information may vary due to any change in anyof the concerned factors, and the actual results may differ substantially from thepresented information. SMEDA does not assume any liability for any financial or otherloss resulting from this memorandum in consequence of undertaking this activity.Therefore, the content of this memorandum should not be relied upon for making anydecision, investment or otherwise. The prospective user of this memorandum isencouraged to carry out his/her own due diligence and gather any information he/sheconsiders necessary for making an informed decision.The content of the information memorandum does not bind SMEDA in any legal orother form.
DOCUMENT CONTROL
Document No.PREF-28Revision1Prepared bySMEDA-SindhApproved byProvincial Chief – SindhIssue DateSeptember, 2008Issued byLibrary Officer
 
Pre-Feasibility Study UPS & Stabilizer Assembling Unit 
Page 2 of 28
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This document is developed to provide the insight of the said business with a view topotential investment opportunity in setting up Stabilizer and Uninterruptible PowerSupply (UPS) assembling unit to cater to the power need of the households as well asthe commercial offices.The pre-feasibility report addresses the various aspects of planning in order to setup assembling unitsby small and medium size entrepreneursintending to diversify or start as a new venture.The document is designed to providerelevant details (including technical) to facilitate the entrepreneur in making thedecision by providing various technological as well as business alternatives. Thedocument also allows flexibility to change various project parameters to suit the needsof the entrepreneur.
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The goal for companies today is to attain and sustain business continuity. Devices likeUPS & stabilizerprovide the required backup and control power [voltage] fluctuation,respectively.The escalating demand of alternate power devices induce people to think ofthis successful business venture.Un-interrupted power supply (UPS) & Stabilizerproduction is a capital intensive business and requires huge investment depending uponthe technology and methodology employed for the processing of these power machines.However, UPS & Stabilizer assembling unit generally requires comparatively lessinvestment and can be considered by the Small and Medium scale investors. Theproposed project envisages setting up of a UPS & Stabilizer assembling unit and theirdistribution to the target market.UPS & Stabilizer assembling unit business means setting up a workshop whereassembling takes place and an office area for carrying out general administrative andmarketingwork. The business facility will maintain inventory consisting of accessorieslike transformers, transfer switches, printed circuit board and housing used to assembleUPS & Stabilizer to meet the market requirement and orders effectively. The companywill divide the store into two parts: one side will be used to store accessories andtheother finished products respectively.
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Globally, a power crisis is spreading which has compelled the consumers to fulfill theirbasic electricity need through some alternative sources of power. In Pakistan,publicand private power generation units fail to meet the increasing electricity requirementsof population.Currently,out of 2,600 mega watts load requirement, 2100mega wattsare provided to the public connected to K.E.S.C network 
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. Even then there are frequentdisruptionsof electricitywhich vary with seasonal demand. Major slump is observed insummer season where sale of alternative power sources like generators and UPSincrease substantially, while the existing producers/assemblers are constrained to 
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