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SHAHID FAN Industry
In the Name of ALLAH, WHO is the most Beneficent and the most Merciful.
Department of commerce IUB
ROLL # 03, 31, 54
SHAHID FAN Industry
Department of Commerce, The Islamia University of Bahawalpur has always been admirable in its efforts to equip the future executives with arms of creativity, flexibility and adaptability to meet the challenges offered by fast changing business environment. To achieve the above goals the department is providing both text and practical knowledge to its students with its available resources. Text knowledge is very well transferred to the students within the premises of the department; Practical knowledge requires the kind co-operation of various business organization of the country. Faculty members are always trying their best to ask the students to explore the market by assigning different field activities and to prepare a report. This report has been written on the “RAJ Fan Company, Gujrat.” We have done our best efforts to complete this report efficiently and effectively with all abilities. We hope this report fulfills the criteria and expectations of Department of Commerce. We have tried our best to make it analytical as well as informative.
May Allah help us in this world
Department of commerce IUB
ROLL # 03, 31, 54
SHAHID FAN Industry
We bow our head, before ALLAH Almighty, who blessed us with Potential and stamina to complete our report. First of all we would like to pay our special regards and thanks to Respected “Mr. Javaid Iqbal” who provides us guidance at each and every step, in completion of this report. Special thanks to Mr. Mian Amanullah (CEO Pak Fan) & Mr. Fiaz Ali (Fore man Production) department. We would like to pay our special regards to Mr. Amjad Hussain (Secretary PEFMA). These all grand personalities help us to complete our project in time and help us on every turn of confusion.
Department of commerce IUB
ROLL # 03, 31, 54
SHAHID FAN Industry
“I dedicate my projects efforts to my PARENTS and respected TEACHERS who taught and hold my hands on every step of my life.
Department of commerce IUB
ROLL # 03, 31, 54
SHAHID FAN Industry
TABLE OF CONTENTS
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Executive Summary Introduction of Company Market Analysis Technical Analysis Personnel Analysis Financial Analysis Assumption Underlying Statements Estimated Income Statements Estimated Balance Sheet Estimated Cash Flows Financial Ratios & Commentary SWOT Analysis Recommendations Conclusions
6 10 25 27 34 28 40 42 43 44 45 47 52 53
Department of commerce IUB
ROLL # 03, 31, 54
Process of review: To complete the assignment we visit the related association and personally visit a fan industry. To review the executive summary the basic purpose is to give the clear idea about what report actually contains and efforts made behind the completion of report. This project appraisal is in the respond to the assignment assigned by Mr. The name of sponsors is: Department of commerce IUB 6 ROLL # 03. After working at this report we come to know that what is the real picture of this huge sector of fan Industry in Pakistan. The name of lender is national investment bank (NIBP).Project Management SHAHID FAN Industry Executive Summary Prior to the detail description we are starting the summary of our report. Address : Plot #156. Is as follow: Fixed cost +Initial Capital Total cost 73714810 23422 73738232 The means of finance for the above said cost of project is 60% debt & 40% equity. Javaid Iqbal. & Exhaust Fan. that the required loan @ 16% per annum against the securities pledged & the personal assets of the partners. 70% in 2012 & 80% in the 2013. Title: Project appraisal on the fan industry. 54 . Gujrat. The summary of the project appraisal is as follow: Summary Name of industry : Shahid Fan Industry Location of project : Gorali Industrial Zone Gorali road Gujrat. The project appraisal under consideration has a product range consisting the production of Ceiling Fan. Pedestal Fan. Collect the data from related parties and possible sources. to check our feasibility study of the fan manufacturing project. The installed capacity of the project is 992.000 Fans in a year. In this report first of all general overview of fan industry is given then major and minor things related to fan Industry are introduced with area and other information are discussed. The estimated cost of the project in Rs. 31. main link road Gorali industrial Zone. The estimated capacity of the project in the first year (2011) 60%. As it as assigned us to work at “FAN Industry” we started work and gather data.
92% 35. Current Ratio Cash Ratio Liquid Ratio Debt/Total Equity Gross Profit Ratio Operating Profit Net Profit 1 2.98% 34.26% 52. 31.52% 4 6.82 2.06 6. Aasim Memoon Tahir The civil work & construction of the project is done by Abbass Associates & constructors Gujrat. Hafiz Shahid Mr.99 4.23 6.61% 33.06% 2 4.63 3.45 61.03% 37.00% 45.82 6. The implementation schedule of the project is as under: SHAHID FAN INDUSTRY IMPLEMENTATION SCHEDULE S.18% 36.33% Department of commerce IUB 7 ROLL # 03.01% 52.58 17.43 18.07% 54.12% 49. Farhan Aslam Mr. 1 2 4 5 6 7 8 9 10 ACTIVITIES Acquiring of Land & leveling Engineering studies and designing of civil work Order for local machinery Construction of building and civil work Arrival of local machinery at site Erection and installation of machinery Order for raw materials Trial run Start of commercial production Start Complete Start Complete MONTH 1st Jan 30th Jan 2nd Feb 10th Mar 15th Sep 1st Apr 30th Sep 15th Oct 20th Oct 30th Nov 20th Nov 10th Dec 25th Dec 1st Jan YEAR 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2011 Start Complete Start Complete Start Complete The financial analysis shows the following results.97% 34.25 29. 54 .83% 48.87 6. The machinery required for the project is conventional machinery that is supplied by “Top Fan Machinery Supplier Gujrat”.Project Management SHAHID FAN Industry Mr.29 2. M.52% 3 6.NO.
In line with our project appraisal team. 31.Project Management SHAHID FAN Industry Sponsors stake are 40%. 2011. M Farhan Aslam Mr. Thanks Yours Sincerely. All presetting of the project confirms that we can implement the project this year and can start commercial production on 1st Jan. The details of the project appraisal are discussed in details in next pages. The above result shows the possibility of the project & proves it’s as a profitable project. Hafiz Shahid Mr. 54 . IRR is 27% of the project with a pay back period of 2 Years 7 Months. we have provided all information’s and will present further details related to the project on the final presentation. Aasim Memoon Tahir IMPORTANCE OF FAN Department of commerce IUB 8 ROLL # 03. The future chances of expansion in demand are strong that will make the industry more profitable in future. Mr. which can generate for the stakeholders and owners.
steel rod and PVC INTRODUCTION OF COMPANY Department of commerce IUB 9 ROLL # 03.e. pedestal. Besides small and medium units. Gujranwala. The industry is producing about 5 to 6 million fans per annum and meeting successfully the local as well as the export demand. The fan industry is mainly clustered in the two major cities namely. This cluster meets the entire need of the country producing fans with extended product types. table-cum-pedestal fans. Some of the raw materials used in the manufacturing of a fan are: electric steel sheets. Gujarat. 54 . 31. Sales are also fairly concentrated with five large firms in Gujarat and two in Gujranwala. All the fan manufacturing units have been set up in the private sector. designs. circumatic fans. a few units are quite large and have integrated system i. 7 per cent brackets and the remaining 63 per cent are ceiling fans. These units are the main players in the export field. Fan industry is producing about seven (7) million fans per annum. wall bracket. enameled copper wire. Lahore and Karachi. exhaust fans and propellers. Out of the total production. approximately 30 per cent fans consist of pedestals. aluminum. table. Gujarat.Project Management SHAHID FAN Industry Fan is a daily use item. ball bearing. Pakistan is a manufacturer of good quality fans. models. and colors. The industry belongs to the light engineering industry category. from motor winding to high-pressure dies casting. The industry is producing a variety of products in different sizes and designs. accounting for 40% of total industry sales. The major products are: ceiling. Most of the raw materials used by the fan industry are directly or indirectly imported from different countries. Its utility increases. The fan industry is mainly clustered in the four major cities namely. Gujranwala. whereas some units are also operating in Lahore and Karachi. especially in the summer season. and is one of the industries that existed at the time of independence.
manage customer experience. 2011 DATE OF COMMERCIAL PRODUCTION: BRAND NAME: “RAJ Fan” PURPOSE OF BUSINESS: Our Mission To develop and deliver the most innovative fan products. establishes a competitive advantage and enhances profitability. thus providing value to the stakeholders of the company. 54 . 31.Project Management SHAHID FAN Industry NAME OF INDUSTRY: STATUS OF BUSINESS: SHAHID FAN INDUSTRY Partnership Business 1st. deliver quality service that contributes to brand strength. January. PROJECT BACKGROUND Department of commerce IUB 10 ROLL # 03.
companies have to focus on hot areas to maintain their market shares. Such a market could also be explored with low cost and high product quality. The branded product will be positioned in competition with other branded and unbranded products.Project Management SHAHID FAN Industry Project Brief: The project involves purchase of minor parts. sales of Ceiling fan & Pedestal fan were very dynamic as their prices are low and easy to use. Hot areas drove sales growth because the most part of country is very hot season of summer. Business Legal Status: It is recommended that this project should be started as partnership as it does not involve heavy investment. 31. administering and running the partnership business. Consequently. Economic Rationale: Economically the project is also rationale. The availability of raw material and labor is very cheap and easily available in the market. 54 . its demand will automatically raising due to increasing heat in the atmosphere. and hot areas generate the most sales. The supplier network is strong and providing services on time and on economically rational rate. Project Capacity and Rationale: Department of commerce IUB 11 ROLL # 03. Market Entry Timing: This business can be started in any month of the year as it is used throughout the year. Throughout the review period. less complications and costs are involved in forming. During the review period. Introducing affordable brand in such areas would attract sales. It is suggested that the company should initially introduce its products in the rural or small town markets where brand awareness is easy to make and heavy advertisement budget is not required Opportunity Rationale: This trend has always created a strong demand for fan in Pakistan and made it the world's main exporter of fan. Fans are a part of daily life. The demand of the fan will be raised in the country as the population of the country raises. manufacturing the main parts (motor winding) and then packing and marketing the product under a brand. Moreover.
10% of the production is sold as exhaust fan. At 60% capacity utilization. Core Values Department of commerce IUB 12 ROLL # 03. The company will enhance its capacity utilization by 10% annually. 31. In the beginning the company will utilize its 60% of the capacity for the manufacturing of the fan that is 335000 fans for first year. .Project Management SHAHID FAN Industry The total capacity of the project will be 992000 per year production of the fan. The project consists of a motor winding machine having production capacity of 600 motor winding per hour and two sheet cutting machine with production capacity of 200 sheets per hours. 20% of the production will be sold as pedestal fan. This capacity will be utilized by producing 595200 fans. In the coming years the company will add plastic fans as well with better quality and technology. 30% of the production will be sold as ceiling fan. 54 . the production breakdown of the three different categories of products is shown in the table below: Production breakdown at 60% Capacity Utilization: Pedestal fan Production %age No of fan 35% 117250 Ceiling fan 45% 150750 Exhaust fan 20% 67000 The table shows the capacity utilization of the 60% for the very first year of the operations of the company. The production will be sold as.
“Ethics and Integrity” We do care how results are achieved and will demonstrate honest and ethical behavior in all our activities. We encourage challenges to the status quo and seek organizational environment s in which ideas are generated. nurtured and developed. “Quality in all we do”. “Quality and Continuous Improvements” We believe that quality and strong commitment to continuous improvements are essential to our ongoing success. Our motto is.Project Management SHAHID FAN Industry “Leadership” We value leaders of high integrity. Effective communication should provide the means for gaining understanding of the company’s overall objectives and plans and of the thinking behind them. and providing products and services that meet expectations 100 percent of the time. “Open Communication” We value communications that are courteous and open and that enables each of us to do our jobs more effectively by providing information that contributes to the quality of our judgment and decision making. We believe that leadership skills need to be strengthened at all levels within our organization and that managerial and professional competence is a necessary foundation. A well-founded reputation for scrupulous dealing is itself a priceless asset. agreeing on performance and value. “Teamwork and Partnership” We believe that high performing teams containing appropriate diversity can achieve what individuals alone cannot. professional and people skills to inspire a group or an organization to set high goals and achieve them willingly. Choosing the course of highest integrity is our intent and we will establish and maintain the highest professional and personal standards. We must consistently treat each other with respect and strive to create an organizational environment in which individuals are Department of commerce IUB 13 ROLL # 03. 31. To this end. Consciously using the diversity of style. 54 . “Individual Growth and Development” We strongly believe in the dignity and value of people. approach and skills afforded by teams is strength we must continue building into our organization. energy and enthusiasm who have the necessary managerial. “Innovation” Success requires us to continually strive to produce break through ideas that result in improved solutions and services to customers. we define quality as understanding the customer’s expectations.
grow and develop them and help to develop each other. 54 . creative and high performing work environment.Project Management SHAHID FAN Industry encouraged and empowered to contribute. “Enjoyment and Fun” We believe that excitement. Having fun in our work should be a normal experience for everyone OBJECTIVES AND KEY SUCCESS FACTORS The main objectives of the development of project are: Department of commerce IUB 14 ROLL # 03. 31. satisfaction and recognition are essential elements of a healthy.
31. • Provide an exceptional service and product that leaves an impression. 54 . • Media campaign for the awareness of the retail customers. To be the premier company that achieves the goals of profit maximization and value maximization for all the stakeholders of the company. without exception. • Managing our internal finances and cash flow to enable upward capital growth. • Adapting to the rapid social and economic changes. • Provide exceptional product that leaves an impression with our core customers. PRODUCTS OF THE COMPANY The project involves purchase of minor parts. • Extensive distribution channel for the sale of fan in the urban and rural areas. To maintain tight control of costs. Capitalize on excellent location opportunity. • High demand of such stylish fan in the locality.Project Management SHAHID FAN Industry • • • • • • Capitalize on excellent opportunity to extract maximum revenue. • Competitive price of products. • Cost efficiency through better management. • Consistent utilizing of ingredients that creates product quality. • Emphasizing on excellent service to the other wholesalers. • Strict control of all costs at all times. • Abundant supply of raw material. • Consistent entertainment atmosphere and product quality. • Availability of low cost skilled labor. and cash flow through diligent management and automated computer control. • Improving the packaging will increase the overall distribution and selling techniques. operations. • The product would be focusing the price conscious segment of the market by providing similar and better quality product at lesser price. manufacturing the main parts (motor winding) and then packing and marketing the product under a brand. The branded product will be Department of commerce IUB 15 ROLL # 03. • The Company will be strategically located to maximize the revenue derived from the sales of the quality product. • Regular flow of local as well as Export orders is the key success factor for efficiently running of the project. To launch the fan manufacturing unit with a highly targeted publicity campaign and in a grand opening event in the start January of 2011. • Selection and procurement of consistent quality raw material would be another contributing factor for carrying out successful operations of proposed project. The keys to success in achieving our goals are: • Be the first in the market to provide a wide variety of innovative styles of fans that has broad appeal. To maintain a high standard of product and service provided.
PROPOSED PRODUCTS OF THE COMPANY Department of commerce IUB 16 ROLL # 03. Pedestal fan Ceiling fan Exhaust fan The brand name for the product will be “RAJ FAN”. 31. The proposed product mix of the company is as under. The demand for the Ceiling Fan & Pedestal Fan is largest in the country and the company will use most of its capacity to produce these fans. It is suggested that the company should initially introduce its products in the rural or small town markets where brand awareness is easy to make and heavy advertisement budget is not required.Project Management SHAHID FAN Industry positioned in competition with other branded and unbranded products. 54 . With the passage of time the company will enhance the depth of its brand by adding unique styles and new technology. All the brands of the company will be marketed under this name.
Project Management SHAHID FAN Industry Department of commerce IUB 17 ROLL # 03. 31. 54 .
31.Project Management SHAHID FAN Industry Department of commerce IUB 18 ROLL # 03. 54 .
8187 1250 CEILING FAN 695.338 750 1643.3433 1031.1683 2218. 31.838 267.338 300 995.838 250 763.2937 1500 DISTRIBUTION CHANNEL: FACTORY WHOLESALERS CONSUMER RR RETAILERS Department of commerce IUB 19 ROLL # 03.4937 2650 EXHAUST FAN 513.5063 431.1813 218.7063 156.Project Management SHAHID FAN Industry RATES OF PRODUCTS The estimated EX-factory price and the retail price of products are as follow: PEDESTAL FAN COST PROFIT Sale Price GST @ 35% EX-Factory Price Middle Man Margin Retail Price 893.338 348. 54 .3683 1343.338 575.
Road.T.T.Road. Gujarat M/s Younas Metal Works . Gujarat MATRO FAN PARWAZ FAN GLOBAL FAN STARCO FAN M/s Hi Tech Industries (Pvt) Ltd.T. G. G. G. G. Road. Global Electronics. . Industries G. . 31.I.C.Road Gujrat Department of commerce IUB 20 ROLL # 03. Gujarat M /s General Fan Company(Pvt) Ltd. Road.G. FAN YOUNUS FAN ROYAL FAN COMPANY M/S Wahid Industries Limited. 54 .Project Management SHAHID FAN Industry COMPETITORS & INDUSTRY SCANARIO BRAND NAME PAK FAN G. Road Gujarat U.(Pvt) Ltd. G. Gujarat M/s Rafiq Engineering Industries (Pvt) Ltd. Gujarat Parwaz Engineering Co.T. Road.T.T.F.T.
Project Management SHAHID FAN Industry World Scenario Leading fan producers of the world COUNTRY.02% 2% 3% 3% 1% 5% 4% 9% 14% 19% 33% 7% Department of commerce IUB 21 ROLL # 03. 54 . 31.WISE EXPORT SHARES OF OTHER FAN (INDUSTRIAL FAN) COUNTRY PAKISTAN FRANCE NETHERLAND SWEEDEN KOREA CANADA UK ITALY USA JAPAN GERMANY TAIWAN SHARES 0.
31.WISE EXPORT SHARES OF FAN UNDER 125 WATT (DOMESTIC FAN) FAN UNDER 125 WATT (Domestic Fan) COUNTRY PAKISTAN SINGAPORE UK TAIWAN CHINA THAILAND GERMANY USA ITALY SPAIN JAPAN OTHER Large fan importers of the world: • • • • • • • • • • • African countries United Arab Emirates Syrian Arab Republic Yemen Iraq Turkey Egypt Bangladesh Srilanka Saudi Arabia Other Arabic countries 22 ROLL # 03.1% 1% 1% 20% 44% 6% 5% 3% 2% 2% 2% 13% Department of commerce IUB . 54 SHARES 0.Project Management SHAHID FAN Industry COUNTRY.
In reality few pure monopsonies exist. Department of commerce IUB 23 ROLL # 03. when buyer power is strong. 54 . In general. the buyer sets the price.a market in which there are many suppliers and one buyer. Under such market conditions. 31. the relationship to the producing industry is near to what an economist terms a monopsony . but frequently there is some asymmetry between a producing industry and buyers.Project Management SHAHID FAN Industry COMPETITIVE ANALYSIS PORTER’S FIVE-FORCES MODEL Potential New Entrants Bargaining Power of Suppliers Intra-Industry Rivalry FAN Products Bargaining Power of Buyers Substitute Products The Bargaining Power of Buyers: The power of buyers is the impact that customers have on a producing industry.
A close substitute product constrains the ability of firms in an industry to raise Department of commerce IUB 24 ROLL # 03. There are no barriers to entry in the fan manufacturing industry. and other supplies. All the companies in the industry are charging the same prices against their products. These are barriers to new entry. then profits always should be nominal. components. substitute products refer to products in other industries. such as selling raw materials at a high price to capture some of the industry's profits.Project Management SHAHID FAN Industry The bargaining power of the buyers is low in the country. In theory. all the companies followed the same path. 54 . Many of the sellers of the raw material are in Gujarat and Gujranwanla fan cluster. labor and raw material is readily and easily available in the country. If any of the suppliers raises its prices. Threat of Substitutes: In Porter's model. Because what so ever is producing by the companies it is accepted by the consumers. 31. In reality. The retaliation level of the companies in the industry is very low.labor. This requirement leads to buyer-supplier relationships between the industry and the firms that provide it the raw materials used to create products. because the machinery. however. can exert an influence on the producing industry. and if free entry and exit exists. industries possess characteristics that protect the high profit levels of firms in the market and inhibit additional rivals from entering the market. If any of the company enhanced the prices of the fan. Suppliers. There is no involvement of the consumer in deciding the design & Price of fan. Because the companies have generations of the loyal customers Rivalry: The market structure of the fan industry is oligopolistic. we can shift to another supplier.as more substitutes become available. the possibility that new firms may enter the industry also affects competition. the demand becomes more elastic since customers have more alternatives. A threat of substitutes exists when a product's demand is affected by the price change of a substitute product. any firm should be able to enter and exit a market. A product's price elasticity is affected by substitute products . All the firms are competing on the basis of the huge marketing campaigns in the media. if powerful. The Bargaining Power of Suppliers: A Fan producing industry requires raw materials . Barriers to Entry / Threat of Entry: It is not only incumbent rivals that pose a threat to firms in an industry.
000 workers. 31. there is room for new entrants who want to manufacture the quality products. Saudi Arabia. Also. Pakistan exports fans to Bangladesh. The experience of the European Union (EU). India exports fans to other countries with the bulk of the share now going to European Markets. Free Trade Agreements (FTAs) constitute an important dimension of this fast changing globalizing world. According to the industry sources (including manufacturers and vendors) there is a substantial demand for quality fans on a large scale. United Arab Emirates (UAE) and some EU countries. what is the total installed capacity is. On the other hand. Both the developed and the developing countries are entering or are in the process of entering into regional and bilateral free trade agreements in order to promote trade and economic growth.104 Mn. One reason for this no. The industry generates annual employment for around 25. Pakistan neither exports fans to India nor import this product from India. Encouraged by the success of this global trend.896 mn from exports of domestic fans whereas it has earned $ 0. Pakistan is also one of the major exporters of fans to international market. About 80% of Pakistan domestic fans exports are concentrated in these countries. North American Free Trade Association (NAFTA). Pakistan and India have also started exploring the possibility of promoting free trade in the Department of commerce IUB 25 ROLL # 03. Pakistan has earned $ 3. The direct competitors are the existing industries that are manufacturing same fans and charging almost same prices. In the local market as well as in the international trade of Pakistan domestic fans are larger component so it is reasonable to assume that whatever happens to this particular category after MFN or Free Trade with India is applicable to whole of the fan industry.5-3 million fans per year.trade situation is that both Pakistan and India are self sufficient in fan and compete in the international market rather than exploring for prospects of trade creation within each other. clearly indicates that there is a strong correlation between regional trade and economic growth. and what the operational capacity is. While some companies are also exploring the possibilities of exports to US but main restriction of quality standard of UL is creating problems but some firms are preparing to enter into that market. using the latest technology. how many are operational.5 billion to the GDP of the country. Global fan trade is classified on the basis of energy consumption. The industry has an installed capacity of 5-6 million fans per year. The volume of exports has reached around $4 million US in recent years. total fan production stood at 2. 54 .5 billion. The current capacity utilization is around 50%.Project Management SHAHID FAN Industry prices. Compared with the trade of the rest of the world. from exports of industrial fans. The fans that consume less than 125 watts of energy (SITC 74341) are generally referred to as domestic fans and the fans that that consume over 125 watts (SITC 74343) are classified as industrial fans. At present. Fan industry contributes Rs 1. The total capital investment in this sector is Rs 3-3. MARKET ANALYSIS There are no exact figures available as to what is the total number of units.
31.C. 54 .Project Management SHAHID FAN Industry region and are working closely toward establishing a South Asia Preferential Trade Area (SAPTA) aimed at reviving regional trade and growth in the region. and Pak Fan. Department of commerce IUB 26 ROLL # 03. and the second one is current export award winner of 2009 with a 690 million profit. From this cluster there are 2 major companies G. Government is financing FDI to produce skilled labor.: Government establishes FDI (Fan Development Institute) to promote the new technology to this sector.F. The government of Pakistan is providing facilities to this industry. According to the final report of TDA the export of fan increase by $ 782000 in 2007-2008 from $191000 to $ 973000. If that happened the low cost fan will provide the Pakistan more revenues and ultimate bright chances for the industry. The current situation of industry is as under: CURRENT SITUATION: Currently there are 350 fan manufacturing companies situated in Gujarat and Gujranwala fan cluster. The demand of fan is increasing 20% annually in export and 15% in domestic sales. The first company was export award winner during last 8 years. TDAP & Ministry of Science is also taking steps to promote the fan industry. The following steps are recently taken by Govt.
Where the offices of the CEO and all the functional heads will be established. The regional office of the company will be located in the same city. Availability of transport & communication like telephone. At center of the other two industrial zone of the city. Availability of skilled and Un-Skilled manpower Free from other environmental hazards like water logging. 31.Project Management SHAHID FAN Industry TECHNICAL ANALYSIS Location of the Project: Our fan company will be located in Gorali industrial zone of Gujarat. salinity etc. floods. Easily accessible for suppliers. 54 . fuel etc. Sources of Power. The head office of the company will be located in GUJRAT and subsidiary office will be at Lahore. The details of plant and machinery are as follow: COST OF MACHINERY Machine Dicasting Machine Grinding Machine Motor Winding Mach Varnishing Machine Packing & Stamping Steel sheet cutting & molding Total purchase price Installation Cost Dicasting Machine 6 50000 300000 # of machine 6 6 2 1 4 2 Rate 800000 300000 1200000 1000000 500000 500000 Total 4800000 1800000 2400000 1000000 2000000 1000000 13000000 Department of commerce IUB 27 ROLL # 03. Internet etc. The site enjoys the following advantages: Access to the main road. water. telex. Plant and Facilities: The building will be constructed for the manufacturing of the Fan.
Project Management Dicasting Machine Motor Winding Mach Varnishing Machine Steel sheet cutting & molding Total Installation Cost Total Cost Of Machinery 6 2 1 2 15000 100000 100000 30000 SHAHID FAN Industry 90000 200000 100000 60000 750000 13750000 Proposed Machinery: Dying Machine Motor Winding Machine Department of commerce IUB 28 ROLL # 03. 54 . 31.
Project Management SHAHID FAN Industry Drilling Machine Sheet Cutting & Molding Dicasting Machine Department of commerce IUB 29 ROLL # 03. 54 . 31.
PVC pipe. Wires. The labor requirement can easily be fullfiled as the following coureses offered by FDI ( Fan Development Institute) are providing skilled labor that is capable to contribute effectively in fan industry. Aluminium . Ball bearing .to achieve this objective the following courses are offered at FDI.Project Management SHAHID FAN Industry Stamping & Packing machine Raw Material Requirement: The raw material required for the production process is electric sheet for flower making. Different government institutes are producing skilled labor for the fan cluster. CNC Vertical machining center (Basic commands and operations) Department of commerce IUB 30 ROLL # 03. silver strips for outside body making. 54 . Auto CAD 2. 31. 1. Enamelled copper wire. packing materials & some other minor parts for assembly department. Labor: The labor for manufacturing of fan is easily available in cluster. copper wire.
000 6.000 10. & Mech sees of fan Duration 6 Months 6 months 4 months 2 years The labor requirement for the project is as follow: Category Labor: For Dicasting machine For Grinding machine For Motor winding machine For Varnishing machine Packing & stamping Steel sheet cutting & molding machine Supervisor No Salary per Month(Rs. 8. 5.000 8. 31. 54 . The following courses are offered: Course Title Certificate Course (Mgt/Marketing in Fan Ind.000 06 06 30 02 15 30 15 Department of commerce IUB 31 ROLL # 03.Project Management 3.) 8.000 8. 4. CNC Wire Cut (Basic commands and operations) CAD/CAM Programmes Engineering Workshop precision tools Conventional Machining (Basic commands and operations) Electric Fan Testing Electric Fan Testing SHAHID FAN Industry Gujrat Fan Cluster In collaboration with Ministry of Science & Technology and Pakistan Electric Fan Manufacturers Association is offering the following coureses and providing the skilled labor.000 8. 7.000 8. 6.) Certificate Course (Fan Technology) Certificate Course (Fan Technology) Diploma Course in Elect.
31. 54 .Project Management SHAHID FAN Industry FAN PROCESSING DETAILS Department of commerce IUB 32 ROLL # 03.
DYING SECTION WIRING SECTION ASSEMBLING SECTION M PA IN R OR TS TESTING & INSPECTION PACKING SECTION Factory Overhead: The project requires the heavy connection of electricity of 400 KVA. GRINDING & FINISHING DEPT. 31. 54 . FLOWER MAKING VARNISHING DEPT. ELECTRIC SHEET CUTTING MOTOR WINDING DEPT.Project Management SHAHID FAN Industry SILVER STRIPS DICASTING DEPT. The estimated fixed cost and variable cost is as follow: Department of commerce IUB 33 ROLL # 03.
000 142.00% SHAHID FAN Industry per K.1 -Power KW 40 315 -Insurance @ 0.937 Technology involved: The project the technology of England & Chekselwakia.751 1976 9.50% -Repairs &Maintenance: Machinery @ Miscellaneous Total Fixed cost b) VARIABLE COST Power: KW Total 1. 31.937 44.17 8 310 44.000) 151 65. The machinery requirement is as follow: COST OF MACHINERY Machine Dicasting Machine Grinding Machine Motor Winding Mach Varnishing Machine Packing & Stamping Steel sheet cutting & molding # of machine 6 6 2 1 4 2 Rate 800000 300000 1200000 1000000 500000 500000 Total 4800000 1800000 2400000 1000000 2000000 1000000 Total purchase price 13000000 PERSONNEL ANALYSIS The total employees of the business are 370 that include the following: Department of commerce IUB 34 ROLL # 03.500 100 207. The project uses the reconditioned machinery of these countries that is easily available in the fan cluster.W on Fixed Assets installed cost (Rs. 54 .Project Management 3.MANUFACTURING OVER-HEADS a) FIXED COSTS 0.
These services are repair and maintenance services & other technical assistance.000 10.000 Department of commerce IUB 35 ROLL # 03.000 78 Administrative Salaries Chairman Directors Admin Staff Sale Dept.000 6. Employees Clerks and Typists Driver and Peons Sweepers Security Guards TOTAL The split of the skilled labor is as follow: Category skilled labor Labor: For Dicasting machine For Grinding machine For Motor winding machine For Varnishing machine Packing & stamping Steel sheet cutting & molding machine Supervisor TOTAL No.000 25.000 8.000 6. Our skilled labor also provides services to other industry that generate the extra income for the industry.000 20.) per Month 40. The split of admin staff is as follow: Salary (Rs.000 8.000 10. 1 2 5 20 20 15 2 5 2 6 No.000 10.000 6.000 8. 31. 54 .000 10.000 6.000 8. 6 6 30 2 15 30 15 104 Salary per month 8.000 10.Project Management SHAHID FAN Industry Admin staff Skilled labor Unskilled labor Total 78 104 188 370 The skilled labor work on machines & unskilled labor also directly work on the product. Employees Accounts Dept. Employees Purchase Dept.
Department of commerce IUB 36 ROLL # 03. Supervisors Manager Purchase Dept. Establishing the quality policy. 54 .Project Management The flow of authorities and the structure of management is as follow: SHAHID FAN Industry Chairma n Director General Admin Director Production Manager Sale Dept. Conducting management reviews. Skilled labor Unskilled labor Management Commitment: Top management demonstrates its commitment to the development and implementation of the quality management system and continually improving its effectiveness by: Communicating the importance of meeting customer requirements as well as statutory and regulatory requirements. 31. Fore man productions Manager a/c’s Dept. Review and approve quality objectives.
Provides a framework for establishing and reviewing quality objectives. Is reviewed for continuing suitability. 54 . Department of commerce IUB 37 ROLL # 03. Employees of the company. Quality Policy: Top management has established a quality policy and ensures that it: Is appropriate to the purpose and scope of the company. Customers of the Company Include: 1. 3. ensures that customer requirements and needs are determined and are met with the aim of enhancing customer satisfaction.Project Management SHAHID FAN Industry Customer Focus: Top management. Clients 2. 31. Includes a commitment to comply with requirement and continually improvement the effectiveness of the quality management system. Creditor/fund-providers 4. through its internal systems. Society in terms of the community and the public affected by the organization or its service. Is communicated and understood within the company.
Planning is consistent with other requirements of the quality system. The quality objectives are measurable and consistent with the quality policy and annually reviewed by top management through the Management Review Meeting. and it is carried out in order to meet the quality objectives. Then time to time the performance of the employees will be monitored and if there is found any gap between the actual performance and the required performance then the training will be conducted. The Administration Director is responsible for preparing the organization chart which revised and approved by Chairman before communicated through the company.Project Management SHAHID FAN Industry PLANNING Quality Objectives: Top management establishes quality objectives at each relevant function and level. Authority and Communication: Responsibilities and authorities are defined within the organization charts and job descriptions. and realistic and measured with time. 54 . Human Resource Requirements: For the management of the proposed project we think that. 31. the results are documented. Department of commerce IUB 38 ROLL # 03. The integrity of the quality management system is maintained when changes to the quality management system are planned and implemented. Responsibility. Quality Management System Planning: Top management has identified and defined activities and resources needed to achieve quality objectives and meet customer requirements. a total of 60 people are required excluding the owners. including those needed to meet service requirements. Reward System: The reward system that is suitable for the project is variable plus fixed salary structure the variable salary will be dependent of the performance of the workers and fixed will be given to provide social security of the workers. Training and Development: Two weeks Training should be given to every employee in the respective fields in the start of the business. measurable. Top Management ensured that quality objectives are specific.
714 .422 73.Mark-up during Construction .738 .232 ====== Foreign TOTAL 1278228 4 3527900 0 1300000 0 500000 750000 500000 4300000 3. The venture will be funded partners through paid-in capital provided by the owners and debt will be taken from the bank. identify revenue streams.568. 495.242.Project Land & Its Development .495 .Initial Net Working Capital TOTAL COST OF THE PROJECT: MEANS OF FINANCE Debt NIBP loan TOTAL DEBT: Equity .Building & Civil Works Local Machinery Engineering /Technical Fees Erection & Installation Furniture & Fixture Vehicles LOCAL 12782284 35279000 13000000 500000 750000 500000 4300000 3.810 23.293 ROLL # 03.810 23.29 3 29. 242.939 29.49 5.232 ==== == 4 4.293 .293 29. and forecast net cash flow and profits.939 44.71 4.568.24 2. The cost of project is as follow: COST OF THE PROJECT . 54 .Paid-up Capital (Sponsors) TOTAL EQUITY Department of commerce IUB 39 44.495. 31.Project Management SHAHID FAN Industry FINANCIAL ANALYSIS The purpose of the financial plan is to estimate start-up and ongoing costs.93 9 44.939 2 9.526 2235000 800000 73.Pre-production Expenses -Contingencies TOTAL FIXED COST: .422 73.242 .73 8.52 6 2235000 800000 73.
232 ==== == The means of finance and their ratio is as follow: Source Bank (@16%) Equity Total Ratio 60% 40% 100% Amount (Rs.396 55.293 73.73 8. 000) 44. The sponsor’s stake is 40%.407 Raw materials 1. 54 .232 ====== 73. in 000 ) Cash 3.232 All amounts are in the Local Currency (In Rupees).396 Department of commerce IUB 40 ROLL # 03.000 Accounts Receivable @2.5% of sales 19.Project Management SHAHID FAN Industry TOTAL DEBT & EQUITY 73.495.738.500 Advances & deposits 457 Total 78.738 .242. The calculation of initial net working capital is as follow: SHAHID FAN Company Private Limited ESTIMATED INITIAL NET WORKING CAPITAL CURRENT ASSETS (Rs.455 Stores & Spares 1. 31.819 CURRENT LIABILITIES Accounts Payable 0 Accrued Expenses 0 Bank Borrowings 75% of inventories 55.939 29.000 Finished Goods Inventory 10% of production 53.
expenses. The marketing expenses will be considered to be the 1 % of total sales. Some of the important assumption regarding the production. cash flow. depreciation and financing assumption are listed in the following tables. 31.Project Management INITIAL NET WORKING CAPITAL SHAHID FAN Industry 23. We assume that the capacity of the production will be enhanced by 10% annually.5% of sales 25% of purchase ROLL # 03. We assume continued popularity of products of the company and the growing demand for high quality FAN. 54 . The key underlying assumptions are: • • • • • • We assume that price will be a key competitive element in the first three years of operations where competitors in the business will seek to cut into our business through price cutting. The sales price of the product will be directly related to the competitors.422 IMPORTANT ASSUMPTIONS The financial plan depends on important assumptions. Production Assumptions Maximum Attainable Capacity In Percentage Capacity Utilization (1st Year) In Percentage Production Capacity In Units (60% in first year) Production Capacity Utilization Growth Rate 100% 60% 535000 10% per year Cash Flow Assumptions Accounts Receivables Cycle (In Days) Accounts Payable Cycle (In Days) Department of commerce IUB 41 2. Initially the company will utilize only 60% of the total installed capacity in the very first year.
31. 54 .2235000 10% Deprecation Expense Assumptions Plant & Machinery Depreciation Rate Furniture & Fixtures Depreciation Rate Vehicle Depreciation Rate Building 10% 5% 20% 5% Financing Assumptions Debt Equity Tax Rate 60% 40% 35% Department of commerce IUB 42 ROLL # 03.Project Management SHAHID FAN Industry Decrease in account payable 5% annually Expense Assumptions Machine Maintenance Pre-Operational Expense Wages Growth Rate 1% of the cost Rs.
556 221.622 447 14.024 815.266 .401 780.024 PROFIT EXPENSES 15.271 477.728 299.041 4. 31.II ( Rs.385 264.757 15.573 Provision for Taxes NET Dividend RETAINED EARNINGS PROFIT Department of commerce IUB 43 ROLL # 03.573 0 555.475 4.511 0 410.224.265 271.747 631.300 558. in 000 ) III 80% 1.508 148.024 587. 31 Efficiency Assumed : SALES COST OF GOODS SOLD : -Depreciation GROSS OPERATING ANNEXURE .Selling Expenses Total Operating Expenses OPERATING PROFIT OTHER INCOME NON OPERATING EXPENSES .434 447 12.Financial Expenses 7.429 0 264. Amortization of preliminary exp.813 142.874 For the year ending Dec.079 Bank borrowing@ 10%.784 632.763 23.155 555. at 5 years Sub-Total PRE-TAX PROFIT 35 % 5.052 12.729 18.044 410.679 8.564. 54 .Admin & General Expenses .Project Management SHAHID FAN Industry ESTIMATED INCOME STATEMENTS The estimated income statements of the company are as follow: SHAHID FAN Company Private Limited ESTIMATED INCOME STATEMENTS I 60% 776.865 90.772 II 70% 1.439 854.643 34.266 17.247 11.574 87.248 29.429 5.745 447 16.502 1% 7.511 4.886 4.331 745.960 406.302 294.
924 473.000 1.495 1.715 0 71.267.429 293.Project Management SHAHID FAN Industry ESTIMATED BALANCE SHEET SHAHID FAN Company Private Limited ESTIMATED BALANCE As on Dec.905 ====== 44.199 0 17.480 0 71.313 ===== 79.Un-appropriated Profit Total Equity: Total Liabilities & Equity: SHEETS Constructn.480 12. Mat.230.396 0 55.495 674.440 0 0 117.495 0 29.243 29.486.905 ====== = = 0 0 0 0 55.940 704.396 71.326 0 0 54.495 264.407 53.493 73.546 26.593 ===== 75.930 0 0 86.801 44.000 1.500 457 405.500 457 850.782 1.Dividends Payable .480 2.243 44.Accounts Payable .008 1.513 1.053 1.480 8.435 914.427.235 129.000 1.613 0 26.450 13.217 14.818 82.394 29.072 59.135 = = Department of commerce IUB 44 ROLL # 03.636 70. 31 ASSETS Cash Accounts Receivables Inventory: Finished Goods Inventory Raw Material Inventory Stores & Spares Advances & Deposits Total Current Assets Other assets Fixed Assets at cost Less: Accumulated Depreciation Net Fixed Assets: Preliminary Expenses: Total Assets: == LIABILITIES & EQUITY Current Liabilities . 54 .048 63.995 0 35.000 1.410 0 71.697 29.Bank Borrowings .135 ==== I 329.096 209.Accrued Expenses .260.313 ===== II 732.480 4.407 0 1.Paid-up Capital (Sponsors) .050 0 71.546 29.593 ===== (Rs. 33.213 3.345 15. of L T Debt Total Current Liabilities: Other liabilities Long-term Liabilities NIBP loan Total Long-term Liabilities EQUITY .697 17.456 447 473.927 143.056 19.500 457 1.396 2.939 2.Taxes Payable .994 19.527 183.Cur.420 0 71. 31.486. in 000) III 1.321 1.432 447 914.495 129.024 67.408 447 1.394 35.500 457 55.
574 4. Const.644 APPLICATION OF FUNDS Investment in Fixed Assets: -Preliminary Exp Financial Expenses Repayment of : NIBP loan .598 0 0 39.235 0 0 0 0 22.234 === ===== ==== ==== === = == == 33.849 117. I SOURCES Operating Profit 0 271.262 688.044 41.217 III 780.49 3 Department of commerce IUB 45 ROLL # 03.626 393.Paid-up Capital (Sponsors) 29.267.345 0 53.926 === ===== ==== ==== === = == == 71.024 0 562.Bank Borrowings Taxes Increase in current Assets: TOTAL Surplus/(Deficit) Cash Balance Opening Cash Balance Ending 96. 54 .994 329.IV (Rs. in 000) II 558.801 732.586 117.994 732.508 Add Back: Depreciation 0 4.079 123.433 927. Yr.385 42.480 2.024 Amortization 1.497 0 0 4.396 54.801 1.938 402.450 129.692 0 33.679 8.320 .325 285.598 Increase in Bank Borrowings 55.788 Funds from Operations 0 277.056 33.849 86.865 4.243 0 Increase in Current Liabilities 0 88.079 8.889 0 0 25.056 296.618 86.Project Management SHAHID FAN Industry ESTIMATED CASH FLOWS SHAHID FAN Company Private Limited ESTIMATED CASH FLOWS For the year ending Sept.345 TOTAL SOURCES ANNEXURE .495 0 NIBP loan 44.056 329.053 0 0 5.849 54.808 534. 31.135 420.247 8.024 0 784.364 0 0 7.450 221. 30.217 142.
98% 34. it also means that our current assets are increasing. 18. 29.06% 63 99 25 2 4. The excess cash help us to expand our business and to explore new investment opportunities. We should have to check it out with comparing with the industry average.25 6.82 The current ratio trend is increasing in the future years by 2 in each year. other words our inventories of raw material & finished goods and account receivables are also increasing. why we are retaining so much cash instead of its further investment. 6.12% 49.97% 34. 31. We should check it out and retain it close to 2:1 or 3:1. 4.52% 82 06 43 3 6. It is also good for business as it increases the credibility of the business. 6.29 3. We should check their balance and manage them in an effective manner.06 The cash ratio also shows increasing trend and good liquidity position of the business in near future.82 4.61% 33. 2.03% 37.99 6.83% 48. CASH RATIO: 2. 61. The most of our cash is now going to be blocked in our inventories & account receivables.01% 52. 54 .52% The commentary on the above the ratios are as under: CURRENT RATIO: 2.43 Department of commerce IUB 46 ROLL # 03. LIQUIDITY RATIO: 2.00% 45. 2.92% 35.63 6.Project Management SHAHID FAN Industry FINANCIAL RATIOS & COMMENTERY The financial ratios of the estimated statements are as follows: SHAHID FAN Company Private Limited RATIOS Current Ratio Cash Ratio Liquid Ratio Debt/Total Equity Gross Profit Ratio Operating Profit Net Profit 82 29 45 1 2. The increasing cash also requires attention.45 4. 3.
54 .Project Management The liquid ratio is also going to be increase. The increasing trend shows good solvency position of a business. if the benefits of these expenses are less than their cost then we have to decrease them. OPERATING PROFIT RATIO: 34. the total equity shows more increasing trend. The increasing margin trend is beneficial for the business.52% The increasing trend in net profit is not so much satisfactory. The gradual payment of the debt also decreases the numerator. We should have to control over them & check them as per their requirement & their benefit cost ratio. And ratio shows decrease in the next years. Liquid Ratio and Cash Ratio increases the credibility of the industry. Net Profit Ratio. 31. Means the owners share is increasing & outsiders claim is going to be decrease.83% 18. The debt burden & interest payments affect it.97% 48.03% 29. enhance the relationship with the Supplier and creditors. As the new profit is re-invested in the business. It will attract the stakeholders to the industry. If we check it. Department of commerce IUB 47 ROLL # 03. Selling & General expenses. The overall increase in the GP Ratio.01% The debt to total equity ratio shows decreasing trend that is beneficial for the owners that the business investment proportion is now shifting towards them.12% The gross profit ratio also shows increasing trend.98% 45. DEBT/ TOTAL EQUITY RATIO: 61. The deal with fund providers in the future gives good results & we can start the expansion easily.52% 35. but as the debt burden decrease down it shows increase from 3rd year. it shoes the increasing performance of the business.06% 33. NET PROFIT RATIO: 34.92% The increasing trend in operating profit ratio is not same as Gross profit ratio. Although there is increasing trend in this ratio but we have to check our Admin. The comparison with the industry averages and with competitors gives us insight in our weakness and strengths. SHAHID FAN Industry GROSS PROFIT RATIO: 37.00% 52.61% 49.
Lack of ownership & commitment of agencies involved. 54 • • • • • Department of commerce IUB . fan manufacturers are using Mild Steel Sheet (MSS) the motors manufactured from this material are not of good quality and use more electricity. Lack of political framework: (no recognition at policy level). electric steel sheet (ESS) is also a major item in fan manufacturing. 31. o Weak research and development o Weak technology 48 ROLL # 03. durability and electricity consumption of a fan .Due to ESS shortage and high prices. Too much high prices of import raw materials. Lack of articulation culture and empire building attitude at all levels. took almost 2 years to inculcate vision of this change mgmt exercise Resource mobilization was the major issue to get short-term wins. performance.Project Management SHAHID FAN Industry SWOT ANALYSIS The SWOT analysis of the industry is as under: 1-Strength: • • • • • • Extensive labor is available Produces at lower cost Capacity of Production Self Sufficient Machinery is available Special industrial zone is established 2-Weaknesess: • • Ball bearing is an important part that ensures smooth running and noiseless working of an electric fan. Like ball bearings. It determines the quality.
54 . 31.Project Management SHAHID FAN Industry o o o o o No innovation in designs Cost of imported raw material is high Lack of policy framework Low capital-output ratios Unskilled labor 3-Opportunities: • • • • • Environmental changes WTO will allow to export more Potential markets like US & EU could be explored Increase in demand with increase in population Industrial Fans could be focused 4-Threats: • • • • • • • • • No focus on industry Technological shifts Quality of Fans Shortage of energy Increase in prices of raw material Security threats Inflation Change in government policies Pressure of new entrance in market Department of commerce IUB 49 ROLL # 03.
31. so that no environmental hazards will be done. On the basis of the performance various monetary. The company will utilize its promotion and reward system as the motivation tool for its employees. The company will regularly administer its standards and will keep its system up to date. marketing department and also check the performance of the human resources of the company. The company will strictly follow the ISO – 9000 standards that will give the guidelines to the company for the safe practices.Project Management SHAHID FAN Industry PROJECT AUDIT The company will have its internal audit committee. The audit committee of the company comprises the Chairman of the company and all the functional heads of the various departments of the company. 54 . which will conduct the audit of the various functions of the company as well as the environmental audit. so that there will be no cause of the environmental pollution and hazards by the operations of the company. stocks and training and educational rewards will be announced for the employees of the company. Department of commerce IUB 50 ROLL # 03. On the basis of the performance determine by the audit committee various rewards will be announced for the employees. The company will get its registration with the ISO – 9000 and will use this as its promotional tool in the marketing campaign in the media. The audit committee will check the performance of the accounts department. The audit committee will be responsible for the edifice of the performance appraisal of the various functions of the company. finance department.
Ceiling fan & pedestal fan have shown tremendous growth in the last few years. The company should focus to capture the market of this product first by aggressive marketing campaign. There is an option of having no involvement of any distributor between the manufacturer and the wholesaler in the city where manufacturing is being done.Project Management SHAHID FAN Industry STRATEGIC RECOMMENDATIONS Initially. Department of commerce IUB 51 ROLL # 03. The preferred mode of distribution is going directly to the wholesalers. 31. By giving healthier profit margins to the wholesalers. This strategy is important to introduce such a new product and to create an extensive distribution and sales channel. the product should be launched in the local market with branding concept in mind. The company will later expand into other cities through a distributor network. the wholesalers will hence promote the product. 54 .
If the venture is undercapitalized and requires more working capital. Department of commerce IUB 52 ROLL # 03. 31. If a buyer cannot be found. the owner's paid-in capital and expenses may not be recovered. management and operational adjustments will be made to address the issues. The owner will attempt to sell the venture outright to a suitable buyer.Project Management SHAHID FAN Industry Exit Strategy and Risk Assessment The owners are aware of the highly risky nature of launching a fan manufacturing unit in the highly competitive market. The venture's actual revenue will be tracked against projections on a month-tomonth basis. 4. If debts cannot be eliminated. the owner will take the following sequential steps to exit the venture: 1. the owner will discuss corporate bankruptcy options with legal counsel. All debt will be negotiated prior to settlement. The owner will also review the return-on-investment for personally providing more paid-in capital. 54 . 3. In the event that net profitability cannot be attained. If net profitability is not in-line with forecasts. the owner will consider bringing on investment partners. If the venture fails. the owner will liquidate all viable assets. 2. Capital raised through asset liquidation will be used to reduce possible debt.
Director training. Ministry of science and technology with cluster council project and FDI to provide technical extensive facilities for the local industries community. Department of commerce IUB 53 ROLL # 03. WTO will have a positive impact in Pakistan because it will remove trade barriers which this industry faces a lot. custom duties on raw materials should be lowered to a reasonable level. South America and Caribbean island countries.Project Management SHAHID FAN Industry RECOMMENDATIONS After the final study of whole fan industry situation the following points are recommended: If the government really wants to increase exports of fan. it should be lowered to a reasonable level.. export promotion bureau should established his camp office in Gujrat. Indonesia and Philippine. Government should rationalize custom duties on fan raw material i. An urgent need in big companies to establish research departments within their factory premises for innovation and to improve designs of fans according to the requirements of international buyers. Fan industry has been a neglected one by the government while it should be fully recognized like any other export-oriented industry of Pakistan. Government should sponsor exclusive delegations of the industry for visit to African countries. 54 .e. HR development training awareness on ISO 9000 quality manufacturing standards needs to be patronized to overcome the lack of facilities. An institute for labor training should immediately be established with the help of PEFMA. Indian occasion including Australia. Pakistan Standard Institute's procedure (PSI) should be simplified and the latest technical laboratory should be set-up to test the fans. 31.
31. WTO will have negative impact if it does not improve its quality of labour and does not implementation new technology. after the implementation of WTO it is likely that Japan will move towards heavy industry and Pakistan will get a chance to explore more and it will enhance exporting of fans as well. Department of commerce IUB 54 ROLL # 03. The recommendations should be implemented. PSI should be provided incentives and encouraged. CONCLUSION It has great potential but needs consideration by government. The problem should be solved. 54 .Project Management SHAHID FAN Industry Japan the major competitor . As the splits and ACs are being purchased by peoples who can afford it.