Feasibility Report on Poultry form

Prepared By:

Muhammad yousuf

Prepared For:

DR. Sardar Ahmed Ansary

Class:

MBA 4(B evening)

Subject:

Project management

Date:

08-11-10
 PROJECT SUMMARY

Introduction:

The poultry farming has now become one of the most dynamic associated parts
of agriculture throughout the world. Poultry culture in South Asian countries is
expanding rapidly and the rate of growth of commercial layer and broiler (meat
producing) farms is phenomenal to meet the ever increasing demand for proteins
through poultry meet and eggs. In Pakistan, poultry industry had made
considerable contribution to food production and plays a vital role in the economy
of the country. Rising of poultry in Pakistan has virtually proven a profitable
enterprise as it is the best source of cheap, palatable and nutritious food protein
This feasibility study aims to outline issues associated with feasibility regarding
opening of a new “poultry form” for the people of Twin cities of Islamabad and
Rawalpindi. This involves many questions such as how much investment should
be made by the owner, which are the best locations for the business, whether the
cost is less than benefits and whether the proposal will fulfill the criteria and the
project is feasible or not. The report will also contain analysis of more or less all
related aspects of this business.

Firm’s Name:
The proposed name of the firm is “Shahzab Poultry form”. The owner will register
the firm with the Federal body and also with the Provincial and Local Government
body if needed. The firm will be registered as single proprietorship. The business
is about Chick production, Egg production and chickens production.

Firm’s Location:

The business will be own land with main Kashmir high-way and M-I Motorway
near to a Peshawar road. In this report i will analyze some options but our focus
will be location of “tarnoul”. The target customers are Savour foods, Islamabad
hotel, main marriage halls, chicken market, nearby neighborhood and general
public of Islamabad and Rawalpindi.
Firm’s Sponsor:
The firm has single owner whose name is “Liaqat Ali”. He will self-sponsor the
business if estimated cost is blow or up to seven million Rupees (70 Lac). If the
cost is above that limit he will get loan from HBL Pakistan.
Long-term Objective

Chicken and Egg business is one of the most in demand businesses here in
Pakistan. The poultry farming has now become one of the most dynamic
associated parts of agriculture throughout the world. In Pakistan, poultry industry
had made considerable contribution to food production and plays a vital role in
the economy of the country. Rising of poultry in Pakistan has virtually proven a
profitable enterprise as it is the best source of cheap, palatable and nutritious
food protein. As an initial step I want to analyze feasibility of one poultry form but
in future our vision is to open a “CHAIN OF Poultry forms” in same business but
in different areas inside Pakistan.

TECHNICAL ASPECTS

In this section, I will discuss the products, services, equipment & machinery,
furniture & fixtures, Form location & size and building & facilities of my business
including their requirements with estimated costs.

Material:

The supplier will provide all the material on the credit and cash basis. They
provide parent and parent flocks, machinery and poultry farm equipments, such
as hatcheries, cages, brooders, feed ingredients such as soybean, meal, maize,
and sorghum for use in poultry feeds.
Products

Our main products are chickens, eggs and chicks. which we produce in our
poultry forms.
The following are major product packages to produce major revenue
1. Chickens
2. Eggs
3. Chicks
Equipment & Machinery

The proposed project is going to have following equipment for Shop use.
Electronic Equipment Amount(Rs)
Automatic Feed Machine 300000
Generator 100000
Water cans 5000
Feed Pads 3000
Lights 4000
Computerized canda 600000
computer 18000
Vehicle 1200000
Total 2230000

Furniture & Fixtures

The proposed project is going to have following furniture & fixtures for Shop use.
Office Equipment Brand Description Amount(RS)
Cabinets Boss 5 units 10000
Chairs Boss 10 units 5000
Doors Boss 2 units 5000
Showcases Boss 5 units 10000
Tables Boss 5 units 10000
Miscellaneous (Locks) 10000
Mess Items 20000
Total (OE) 70000

Form Location & Size:

I had following three locations in my mind Tarnol, Chak shazad and Rawat. But I
have proposed the location of main road outside Tarnol because through survey I
have found that there is an opportunity of good poultry business, because there
are no other famous poultry forms. The location is near to market, road, supply,
transport etc. I have also attached “Form Layout” & “Form Location Map” at the
end (Ideally)
The proposed form will be on three shades with total capacity of forty thousand
chicks, having total size 30*30 feet with estimated cost of 3 million. This project
has following rooms.
1. Office
2. Sheds
3. Store room
4. Washroom

Building & Facilities

The proposed project building & facilities will have following one time cost.
Description Amount(RS)
Contruction Cost 2900000
wiring 50000
Plumbing 15000
Decoration 35000
Total 3000000

Market Analysis
The proposed location of Tornol is on top with respect of the poultry form business. It is
situated at the place which best suited for the poultry form business. It very near to the
Poultry market very easility accessable to the Poultry products buyers and it is out side
the city population because some Government constraints on poultry form to build out
side the city. That why the tarnol is best location for Poultry production.

Demand/Supply Analysis:
The present total poultry population is estimated to be 319 million, out of which
137 million is rural (44%), 160 million broilers (50%), 17 million layers (5%) and 5
million breeding (2%) stock annually. These figures speak of the potential that
has been established in the country to increase production of eggs and poultry
meat thereby reducing further the gap of availability of animal protein foods.
Modern poultry farming has a special importance for countries such as Pakistan.
Because it is being an easy and relatively cheap method of raising dietary
standard of the people. The shortages of animal protein in Pakistan is estimated
at 0.93 million tones on the basis of human population of 140 million. The
average consumption of animal protein is a meager 17g as against the
recommended daily requirement of 28g. This shortage of protein can well be
managed with increase in the production of poultry meat at a reasonable cost.

SOCIAL & REGIONAL ASPECTS

In this section, I will discuss the hiring requirements, labor requirements and legal
requirements with their estimated costs.

Hiring Requirements

For the given thirteen posts required, Applicant must be

1. Hardworking
2. Minimum 20 years old
3. Residence of Rawalpindi / Islamabad

Labor Requirements

Estimated Annual Cost for Salaries and Wages of 4 labors are as following
Description Monthly Salary Annual Salary
Supervisor 12000 144000
Project manager 20000 240000
Electrition 10000 120000
Storekeeper 7000 84000
Workers salary 30000 360000
Doctor salary 20000 240000
Total salaries and wages 99000 1188000

Legal Requirements

Firm must complete following legal requirements

1. Business Tax Registration (NTN Number)
2. Firm Name Registration
3. Registration with Computer Bureau

Estimated Registration Cost will be as following

Requirement Fee
NTN Registration 5000
Firm Name Registration 20000
Computer Bureau Registration 10000
Total Registration Fee 35000 Rs

MANAGERIAL ASPECTS

In this section, I will discuss the convenience and structure of the management.

Management Convenience

All the three location under observation are convenient with respect to
1. Bank draft encashment is 24 Hour Available
2. Labor is also easily available
3. Monitoring is easy
4. Route from suppler to store is good one
5. Supply vehicle can reach store easily
Management Structure

Management structure of the form is very simple because there is only one
Manager that is also the boss as well as owner of the company. All management
activities are under his control. He will have 12 staff members under his authority,
all of them are for specific purposes like supervisor, electrition, storekeeper and
workers.
 FINANCIAL ASPECTS

In this section, I will discuss the cost of starting the business, monthly
expenditures and annual expenditures

Sources of Capital

The owner of the company has enough money of 7 Million Rupees (70 lac) to
open and support the business. But some alternatives are also listed if there is a
need of capital.
1. Self financing by Owners’ equity
2. Bank financing by HBL on 15% annual interest rate.

Estimated Benefit

The owner expects one million profits for fourth days that purpose with average
profit margin of 20%. Form must have average fourth days sales revenue of 7.5
million so after excluding 2.5 million expenditure averages fourth days the pure
profit to owner is approximately 1.2 million.

ECONOMICAL ASPECTS

In this section, I will discuss the cost of starting the business, monthly
expenditures, annual expenditures and product & service pricing.

One Time Cost

The proposed project is going to have following one time starting cost.
Description Amount(RS)
Equipment & Machinery Cost 2230000
Furniture & Fixture Cost 70000
Building & Facilities Cost 3000000
Registration Cost 50000
Total (OTC) 5350000

Monthly Cost

The proposed project is going to have following monthly estimated expenditures.

Description Amount(RS)
Cleaning Bill 10000
Electricity Bill 100000
Internet Bill 4000
Phone Bill 4000
Stationary Bill 2000
Water Bill 100000
Salary Payment (13 Persons) 99000
Feed 2181000
Total(OTC) 2500000

Yearly Cost

The proposed project is going to have following yearly estimated expenditures.

Description Amount
Business Tax 5000
Membership Fee 5000
Shop License Fee 5000
Total (OTC) 15000 Rs

Pricing

I will try to use economical price policy for sale with average 20% profit margin.

ENVIRONMENTAL ASPECTS

In this section, I will discuss the environmental issues of the Poultry form.

Commercial feasibility

As we know Tarnol is less populated area and it is good for our business
because some Government restriction on the poultry forms. It has commercial
importance of its own. Law and order situation in the area from last few years is
also very stable. There is also no famous poultry forms within 1 km of proposed
location distance from competitor nearby is 1.5 Km. Distance from Supplier is
also approximately 1 km.

Air/Water Pollution

With regard to Air pollution proposed area has no pollution because here this
area is less rowdy so this good for our business and country. The under ground
water is less polluted because is out of the city and is good for our business.

Sensitivity of Area
The proposed location is also not near to any sensitive facility like bridge, grid
station, plant, and river etc.

CONCLUSION

The most feasible solution with the highest estimated success rate and profit
return is the location of Tarnol. By choosing this location we would expand the
market by appealing to new target very quickly.

The major hurdle in the proposed location are that the area is out of the city and
some problems of gas connections and water are taking into the consideration to
the higher authorities to solve this one for the betterment of the project. This is a
risk that would have to be taken into consideration. The design team would factor
this in and make all the changes so we hope that this problems will be solve in
near future.