PRE – INVESTMENT

TECHNO – ECONOMIC

FEASIBILITY STUDY REPORT
ON

COOL PURE DRINKING WATER
(PVT.) LTD.
SREENAGAR, MUNSHIGONJ

SUBMITTED BY :-

ARIFUL ISLAM
MANAGING DIRECTOR

PREPARED BY :-

CONSULTANT MD. A.R. BHUIYAN
PROPRIETOR
ARISTOCRATE CONSULTANTS & ENGINEERS
GLOBE CHAMBER (4TH FLOOR)
104 , MOTIJHEEL C / A , DHAKA – 1000

PH :- 9553051 – 2 (O), 9897673 ® , 01715 – 154736
TABLE OF CONTENTS

SL No.
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Description

Page

Summary of the project
Management Aspects
Technical Aspects
Market Aspect

3–4
5–6
7–8
9 – 10

Financial Aspects
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6.
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8.
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10.
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16.
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18.
19.

Estimated cost of the project
Means of Finance
Working Capital Estimation
Sales Estimation
Earning Forecast
Manpower
Cost of Raw Materials
Cost of Goods Sold
Administrative Staff
General , Administrative & Selling expenses
Financial Expenses & Repayment Schedule
Break – Even Analysis
Projected Fund Flow Statement
Projected Balance Sheet
FRR

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2. Sreenagar.000 Jar 3 . 67 Motijheel C/A.000 Jar Mineral Water 5 Litre Jar 300. Registered Office : : The proposed project to be located at Kamargoan Sreenagar. The project site also enjoys all infrastructural facilities such as electricity . PH :. gas. Objective of the project and project description : The project has been designed to set up a Mineral Water Project at Kamargoan. Dhaka.9558424 -do- 5.000 Jar Mineral Water 10 Litre Jar 300. Mailing address of the project : 4.SUMMARY OF THE PROJECT 1. Munshigonj. Name of the project : COOL PURE DRINKING WATER (PVT. Munshigonj. Location of the project 3. skilled labor etc. The annual rated capacity of the project based on single shift operation per day and 300 working days in a year would be as under : Item Quantity 100% operation Mineral Water 20 Litre Jar 300.) LTD.

Debt – Equity Ratios :- 60 : 40 7. 115. Investment Cost and Source of Finance: The total investment required for the project is estimated at Tk. IRR : 50% 12. Gross Return of Sales : 41% ( Gross in 3rd yr.50 10.748 6.130 5. Debt – service coverage ratio : 3. 13.481 8. Assumption : a ) Rate of profit : 15% on fixed capital and 15% on working capital b ) Repayment period of loan : 5 years excluding grace period.60 ( at the 3rd yr ). 46. 11. In ‘000 Net Profit 1st yr 2nd yr 3rd yr 5. Break – Even Sales : 23% ( at 90% efficiency ). Profitability & Result of Financial Analysis : The year – wise operating profit of the project on completion and the results of financial analysis are shown as follows : Tk. 9. ).70 lacs of which equity participation would be Tk.28 lacs (40%) and the rest of the amount will be taken from Bank as loan. Benefit cost ratio : 1.6. 4 .

Ariful Islam. Ariful Islam Status Managing Director Qualification MBA 2. is one of the experienced businessman & now running textile chemicals & garments accessories business. the Managing Director of the proposed project. It is expected that they will be able to run the project most efficiently and successfully.c ) Grace period : 12 months MANAGEMENT ASPECT Corporate Set – up : The project is a Private Limited Company in the name & style of Cool Pure Drinking Water (Pvt. 5 . The particulars of the board of Directors of the unit may be seen as under: Name of the Directors 1. The Managing Director of the said project. is a renown industrialist in the country.) Ltd. Dilara Jesmin Director MSS Ariful Islam. Nurul Alam Director BA 3.

Organogram : MANAGING DIRECTOR PRODUCTION MANAGER MARKETING MANAGER PRODUCTION PERSONNEL COMMERCIAL PERSONNEL ADMIN. The Managing Director will assume overall responsibilities of running the day to day operation and administration of the company with sufficient executive and financial power. The Managing Director will be assisted by a group of experienced management and technical personnel to be recruited locally and also if needed foreign technical person may recruit for the best production of the project.Legal structure of the proposed company : The overall management during implementation and on completion of the project will be vested with the Board of Director. The Managing Director of the project at the moment acquired sufficient knowledge and skills in Industrial & Trading and commercial business since long. PERSONNEL 6 .

The detail list of machinery and their respective price is enclosed in price quotation.30 lacs. These water will be met up by the shallow tube – well to be sunk at the project site. Water : Water will be required mainly for domestic processing of the product. Total power for the project is 225 KW per hour. 30. 6. The land development cost has been estimated at Tk. Munshigonj. The total cost of the building has been estimate at Tk. The machinery will be procured from local source. Sreenagar. stores etc.00 lacs. 2.TECHNICAL ASPECT Project Land & Location : The proposed project will be located at Kamargoan . 29. Machinery & Equipment : The machinery cost has been estimated at Tk. 7 . Building : The promoter will build up a semi-pucca building (30´ x 20´ ) alongwith office. On their own land 20 decimal value worth Tk.00 lacs. UTILITIES Electricity :The project will run only normal 440 volt electric line.00 lacs.

2nd .5%.5% . 8 .5% for the building in every year . Installation of Machinery & Equipments : The imported machinery will be installed and trial run under the local erectors to be deputed by the machinery suppliers. Repair & Maintenance : Repair & Maintenance cost will be 0.5% . for machinery it will be 0.5% and 2% of machinery cost has been earmarked for the subsequent years of operation.Grease & Lubricants : The project will require lubricants oil & grease as a lubricant for smooth operation and maintenance of the machinery and equipments. necessary provisions for fire fighting equipment’s has been incorporated in the list of local machinery. Safety Arrangement : Adequate safety arrangements to meet the fire hazards and first hand medical aid box to be purchased to mitigate any sort of accident of the employee. 1% . Quality Control : Quality of the products is a main thing for marketing in the present competitive world market. 1. A number of quality control equipment’s and tools have been included in the project for maintaining proper quality of production. 1. & 2% of the machinery cost for the year of 1st . 3rd and subsequent year of operation. On the other hand. For this purpose . Stores & Spares : The cost of spares and stores for the first one year included with the cost of main machinery and equipment’s to be imported and it is assumed that 0. 1%.

But it does not meet the actual demand of people’s need. hospitals. cantonments. 9 . The establishment of the units will ensure better supply of mineral water throughout the country. 2 ) To meet the increased need of providing or ensuring such type of products which ultimately help the health condition of our general people. Very few companies in Bangladesh are now working in this sector. etc. shops etc. Those are mostly involved to provide their services to different corporate offices. in Chittagong city as well as different districts in Bangladesh. Acme. Mum. DEMAND ANALYSIS : The project envisages setting up of such item which will help us broadly. hotels. hostels.MARKET ASPECTS Introduction : Pure Mineral Water with Jar is a grooming business in Bangladesh. student halls etc. Everest. The demand also comes from hotels. But like many other product market in Bangladesh. Jibon. These are consumed by household level both in rural and urban areas. 3 ) To create employment opportunity. Objectives : 1 ) To fulfill the increased demand of pure drinking water for people in rural and urban areas. the market of the said product is not organized at all and such proper estimation of demand can’t be possible in straight way rather the apparent consumption stated in different research reports has been taken as the basis. The name of the existing products of such companies are : Fresh.

CONCLUSION : The proposed products will reach to the final consumers through distributors. CONCLUSION : The proposed products will reach to the final consumers through distributor. Libra Pharmaceuticals Ltd. Partex Beverage Ltd. Ozone Disinfection Mum Pran 40 gm / hr 10 m³ / h Ltd. Development of such project on unit basis will extend incentive to the entrepreneurs to invest money for selling of such items. City Vegetables Oil Mills CIO Disinfection Jibon 40 gm / hr Suncrest Virgin Cola Uro Cola RC Cola Pran Juice 20 m³ / h 25 m³ / h 25 m³ / h 20 m³ / h 40 m³ / h Ltd. 10 . Partex Beverage Ltd. The promoter will sell its products to both retailer and whole sellers.Existing Mineral Water . Abdul Monem Ltd. Beverage Water Treatment Beverage Water Treatment Beverage Water Treatment Beverage Water Treatment Juice Treatment Ltd. Amin Plastic Industries Ltd. National Beverage Youth Group Partex Beverage Ltd. Ozone Disinfection Agricultural Marketing Co. United Mineral Water & Pet Beverage Water Treatment Drinking Water Treatment Drinking Water Treatment Drinking Water Treatment Drinking Water Treatment PRODUCT CAPACITY BRAND Coca-Cola Kinley Libra Himalaya Super Fresh 35 m³ / h 15 m³ / h 5 m³ / h 5 m³ / h 10 m³ / h Industries Ltd. These new avenues for investment will create some employment opportunity in the interior area of the country. Coca-Cola & Juice Manufacturing Industries in Bangladesh CLIENT NAME SCOPE OF WORK Abdul Monem Ltd. The promoter will sell its products to both retailer and whole sellers. whole sellers & retailers. Agricultural Marketing Co.

These new avenues for investment will create some employment opportunity in the interior area of the country.Development of such project on unit basis will extend incentive to the entrepreneurs to invest money for selling of such items. 11 .

FINANCIAL ASPECTS ESTIMATED COST OF THE PROJECT Tk. Item Land (20 decimal) L/C 3000 12 F/C Total - 3000 . 1. In ‘000’ No.

100 - 100 6. Generator 60 - 60 14.2. Jar (20 Litre. Pick-up Van 1600 - 1600 11. Micro – Biological Lab. Dispenser (3000 Nos. Office Equipment 50 - 50 10.) 900 - 900 15. Building 600 - 600 4. Land Development 200 - 200 3. Installation 200 7. 3 Wheeler Van 160 - 160 12.) 1520 - 1520 - 200 13. Pre – Operating exp. 10 Litre & 5 Litre – 6000 Nos. Furniture & Fixture 50 - 50 8. Consultant fees 50 - 50 16. Local Machinery including Deep Tube-well 2930 - 2930 5. 100 - 100 Total Fixed Cost 11570 MEANS OF FINANCE 13 - 11570 . Deposit to PDB & main line connection 50 - 50 9.

Tk. In ‘000’ 14 . In ‘000’ 1) Bank Loan :- 6942 (60%) 2) Sponsor’s Contribution :- 4628 (40%) 11570 (100%) Total :- WORKING CAPITAL ESTIMATION Tk.

1st Yr 2nd Yr 3rd Yr 180 days 1173 1232 1237 60 days 440 480 520 L. In ‘000’ 15 . Tied up Period Current Assets Current Liabilities: SALES ESTIMATION Tk. from Bank 75% Of the above cost 1248 1336 1385 Net Working Capital 415 445 461 Current Assets Wages & Salaries Chemicals Other cash exp.C.S. 50 70 90 1663 1782 1847 C.

300000 Jar Tk. 40/. 300000 Jar Tk. 20/.Jar 4500 Total : 22500 Sales estimation at 80% capacity utilization 18000 Sales estimation at 85% capacity utilization 19125 Sales estimation at 90% capacity utilization 20250 EARNING FORECAST Tk.Item Quantity per annum Rate Total sales revenue Mineral Water 20 Ltr.Jar 6000 Mineral Water 5 Ltr. 15/. In ‘000’ I T E M S Year 1 16 Year 2 Year 3 . 300000 Jar Tk.Jar 12000 Mineral Water 10 Ltr.

Revenue earning 18000 19125 20250 Cost of goods sold 10930 11568 12125 Gross profit 7070 7557 8125 Admin & selling expenses 712 776 812 Operating Profit 6358 6781 7313 Financial expenses 1228 1033 832 Profit before tax 5130 5748 6481 Income tax T A X H O L I D A Y Net Profit after Tax 5130 5748 6481 R A T I O S (%) : Gross profit to sales 39 40 41 Operating Profit to sales 35 36 37 Net Profit to sales 28 29 30 MANPOWER Tk. In ‘000’ Position No (S) Salary / month Total Salary / yr Marketing Manager 1 15000/- 180 Marketing Officer 4 9000/- 432 17 .

In ‘000 1st Yr 2nd Yr 3rd Yr 1806 1806 1806 Increment 5% - 90 94 Bonus (One month) 150 158 162 1956 2054 2062 Salary Total COST OF RAW MATERIALS Tk. Sales 4 6000/- 288 Chemist 1 15000/- 180 Delivery Man 4 4000/- 192 Van Driver 1 5000/- 96 Helper 2 4000/- 96 Supervisor 1 6000/- 72 Security 2 3000/- 72 Peon 2 3000/- 72 Driver (3 Wheeler Van) 3 3500/- 126 25 1806 Tk. In ‘000’ Item of Raw Materials Jar Unit Cost 18 Total .Asstt.

000 6/- 5400 Total : Raw materials at capacity Utilization 9900 80% 85% 90% 7920 8415 8910 STATEMENT OF COST OF GOODS SOLD Tk.000 5/- 4500 VAT 900. In ‘000’ Year 1 Year 2 Year 3 Raw materials 7920 8415 8910 Corck 360 360 360 19 .Chemicals per Jar 900.

Wages & Salary 1956 2054 Stores & Spares 25 40 62 Repair & maintenance 40 60 82 Depreciation 494 494 494 Rent. tax & insurance 115 115 115 20 30 40 10930 11568 12125 Other expenses Total 2062 ADMINISTRATIVE STAFF Tk. In ‘000 Position No (S) Salary / month Manager 1 10000/- 120 Sales Executive 2 6000/- 144 Accountant 1 5000/- 60 Computer Operator 1 4000/- 48 Driver 1 4000/20 Total Salary / yr 48 .

in ‘000’ Year 1 21 Year 2 Year 3 . In ‘000 1st Yr 2nd Yr 3rd Yr 468 468 468 Increment 5% - 23 24 Bonus (One month) 39 40 40 507 531 Salary Total 532 GENERAL & ADMINISTRATIVE & SELLING EXPENSES Tk.Peon 2 2000/- 48 8 468 Tk.

Expenses 50 60 70 712 776 812 T O T A L FINANCIAL EXPENSES & REPAYMENT SHEDULE Tk.Salary (Administrative) 502 531 532 Post . 50 60 70 Misc. Telephone & Telegraph 40 45 50 Stationery & Printing 20 25 30 Traveling & Conveyance 20 25 30 Depreciation & Write off 30 30 30 Advertisement / Selling exp. In ‘000’ Period of Loan Repayment : Rate of Profit : 15% Principle Amount : 6942 Grace Period : 12 months 22 5 Years .

I T E M S Year 1 Year 2 Year 3 Principal 6942 5554 4166 Installment 1388 1388 1388 Balance 5554 4166 2778 Interest @ 15% 1041 833 625 1248 1336 1385 Interest @ 15% 187 200 207 Total Interest 1228 1033 Interest on Working Capital Principal 832 BREAK-EVEN ANALYSIS Tk.in ‘000’ Operating year . 3rd year Capacity utilization 90% Earning revenue 20250 Analysis of total cost Raw materials Wages and salaries Stores and spares 23 Total Fixed 8910 2062 62 500 - Variables 8910 1562 62 .

Ration : Break – Even Sales : Sales .45 = 11026 = 0.Variables Sales = Fixed Cost P.& Telegram Traveling & Conveyance Stationery & Printing Other expenses 85 494 62 60 832 532 50 30 20 30 Total : 13229 P. Ratio Break – Even Capacity of operation : 23% 85 60 232 50 25 10 30 2203 20250 .V.V. expenses Financial Expenses Salaries & allowance Telephone.Repair and maintenance Depreciation Rent. 4895 .45 Tk.11026 20250 = 24 494 62 832 300 5 10 - 2203 0. Tax and Insurance Other mfg.

Yr Year 1 Year 2 Year 3 Net profit before tax & interest 0 6358 6781 7313 Depreciation 0 494 494 494 Sponsors Equity 4628 0 0 0 Bank Loan 6942 0 0 0 Total 11570 6852 7275 7807 UTILIZATION OF FUND Investment in fixed assets 11570 0 0 0 Interest on term loan 0 1228 1033 832 Installment 0 1388 Total 11570 2616 Cash Surplus / Deficit 0 4236 Opening Balance of cash 0 Closing Balance of cash 0 25 0 4236 1388 1388 2421 2220 4854 5587 4236 9090 9090 14677 . In ‘000’ Sources of fund Const.PROJECTED FUND FLOW STATEMENT Tk.

Lab & Jar 4610 4149 3734 3360 Furniture & Vehicle 1860 1488 1190 952 Total Fixed Assets 10270 9247 8353 7570 1300 1040 832 665 Cash Balance - 4236 9090 14677 Other Assets - 2037 2733 3238 Total Current Assets 1300 7313 12655 18580 T O T A L 11570 16560 21008 26150 Intangible Assets :- B. ASSETS :const. LIABILITIES & EQUITY :Equity / Share Capital 4628 4628 4628 4628 - 5130 10878 17359 Net Worth 4628 9758 15506 21987 Bank Financial Assistance 6942 5554 4166 2778 - 1248 1336 1385 6942 6802 5502 4163 11570 16560 21008 26150 Retained Earnings Commercial Bank Borrowing Total Liabilities T O T A L :- 26 .PROJECTED BALANCE SHEET Tk. In ‘000’ A. Yr year 1 year 2 year 3 Land & Building 3800 3610 3429 3258 Machinery.

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