1 PROJECT RATIONALE

The plant would process (cut to predefined sizes and polish) raw marble
blocks and produce marble strips/tiles and slabs. The project would not
only focus the construction industry and demand for marble within
Manshera city, but also in other parts of the province and the country.
Once the facility starts at its full capacity, it could also supply marble
steps, strips, tiles, and slabs to other parts of the region as well . Marble
is included in the list of largest minerals extracted among chromate,
coal, rock salt, lime stone, china clay, dolomite, fire clay, gypsum, silica
sand etc. Since 1990 mining &quarrying has consistently contributed
0.5 percent to the Gross Domestic Product (Source Economic Survey).
Marble processing is gaining popularity due to increase in its usage in
construction industry. Today almost all the modern architectural
designs of houses and plazas include the final touch of beautiful shades
of marble in exterior as well as interior portions. There are large
deposits of superior quality marble and granite in the area. There is also
the possibility of getting the marble in block forms which will reduce
the wastage and improve the profitability. The area is under the
process of rehabilitation, in which large quantity of marble tile could be
used. Possibility of exports as the quality is very good. The marketing of
marble is reduced/ restricted due to incapability of meeting consistent
supply, due to non employment of modern techniques. Comparatively
low exports are due to improper marketing. The roads infrastructure of
the province does not fully supports the transportation of heavy marble
blocks from quarries to processing plants but this soon going to change
as road infrastructure is improving .

3. MARKET OPPORTUNITY
Due to modern architectural designs, use of marble steps/strips/tiles
and slabs in the Construction industry of the province is increasing;
additionally there is huge demand in other parts of the country.
Pakistans marble export is estimated at $20-30 million, which can be
enhanced many fold if standardized production measures are ensured.
Initially the supply will be targeted in the province and in the later years
export potential will also be profited. There is no problem in the access
to the potential market.
The growing housing industry in Manshera, Abbottabad, Islamabad,
increases the marketing potential of the project. Housing industry in
the region is estimated to be growing at the pace of 7% . Major
categories for usage of dimensional stones are architectural works,
funeral trade and sculptures etc. In the architectural work that include
construction and structural works the total share of the dimensional
stone is 70% while in the decorative, sculptures and memorial art etc.
its share is 30%. According to their peculiar characteristics, including
weather effects, color fading, load tolerance, edge cuts, water
absorption, color choice, hygienic factor, hardness etc; various type of
dimensional stones are used in different locations and places.
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The target customers for processed marble steps/strips/tiles and slabs
include individuals and construction companies. There is great potential
for the manufacturing of decorative items including marble handicrafts,
Fire places, office table sets, sculptures etc. Pakistans marble export is
around estimated $20-30 million, which can be enhanced many folds if
standardized production measures are ensured. There are large
deposits of superior quality marble and granite in the area. There is also
possibility of getting the marble in block forms which will reduce the
wastage and improve the profitability. The area is under the process of
rehabilitation, in which large quantity of marble tile could be used.
There is also a good possibility of exports as the quality of marble is
quite superior.
The marketing of marble is reduced/ restricted due to incapability of
meeting consistent supply, largely due to non-employment of modern
techniques. Comparatively low exports are due to quality control in the
production processes and improper marketing. The roads or physical
infrastructure of the province does not fully support the transportation
of heavy marble blocks from quarries to processing plants but this is
soon going to change as road infrastructure is visibly improving .










4. BUSINESS PLAN
The project will be run to produce the best quality marble products.
Special care and quality control will be observed in finishing the marble
products, so that the export targets can be achieved. This will
maximize the profits. The selection/purchase of raw marble is of
immense importance. Expertise will be employed in the purchase of
best quality raw marble stone so that there is minimum wastage.
4.1 PRODUCT SALES
The plant can process 370,360 Sq ft of marble at 100 % capacity. The
sale price is Rs 57 per Sq ft.
Capacity % 100% Marble processed Sq ft 370,260 Sale price Rs 57
Sale revenue Rs 21,104,820










4.1 PRODUCT SALES
The plant can process 370,360 Sq ft of marble at 100 % capacity. The
sale price is Rs 57 per Sq ft.
Capacity % 100% Marble processed Sq ft 370,260 Sale price Rs 57
Sale revenue Rs 21,104,820
4.2 RAW MATERIALS
The cost of marble rock is Rs 23 sq ft, the prices slightly change with the
color. The price of marble block is also higher. The total requirement of
marble is around 400,000 Sq ft
4.3 PRODUCT MANUFACTURING PROCESS
Slabs Slabs are large semi processed sheets of marble stone with varied
sizes and thickness of 2 inches. They are further processed in the local
industry or exported to the international markets. Slabs are cut on gang
saws from large blocks of marble and granite.
Unpolished Tiles These are processed and sold by units normally lacking
machinery to finish and section the material. These are available in
different sizes, colors and shades. These tiles are polished either at the
factory or after application at the desired surface.
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Polished Tiles These are the fully processed tiles sold in the market at
competitively higher prices, which depend on vein structure color &
shades.
Decorative Items Decorative items including, pillars, fire places, railings,
sculpture, flower vase, ashtrays, tabletops, office table sets and many
other similar items are produced in many countries of the world.
Marble Chips Marble Chips are tiny pieces normally of crushed marble
used in flooring and facing in the construction industry. These are
processed on completely different machinery set up that includes stone
crushers of various grades. They vary in size from large grains of 1 inch
to 0.5 centimeter, depending on the choice of the consumer.

4.4 PRODUCT DISTRIBUTION
The final product will be directly supplied to wholesaler eliminating role
of the middleman. Distribution network of the product is illustrated
below:
The marketing of the project will be based on the following strong
grounds:
Contacts with end users and Contractor Advertisement
Promotion schemes Point of purchase displays
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4.5 HUMAN RESOURCE REQUIREMENT The total human resource
required for this project with their proposed/estimated monthly
salaries is shown in the table
4.6 PROJECT FINANCIALS
4.6.1 OPERATIONAL DATA The plant can process 370,360 Sq ft of
marble at 100 % capacity, however the production in the first year is
estimated at 70 %. Which will increase at 10% per year. The
production, sales data is depicted below.
Year 1 Year 2 Year 3 Year 4 Year 5 Capacity % 70% 80% 90% 100%
100%
Marble processed Sq ft
259,182
296,208
333,234
370,260
370,260 Sale price Rs 57 57 57 57 57
Sale revenue Rs
14,773,374
16,883,856
18,994,338
21,104,820
21,104,820
4.6.2 FIXED COST
The land, building/infrastructure other fixed assets costs is detailed
below.
Project Investments Land 4,500,000 Construction 1,197,650 Plant &
Machinery 12,570,000 Furniture & Fixtures & Office Equipment
27,000 Vehicles 43,200 Pre-Operating Costs 72,500 Total
Fixed Assets 18,410,350




4.6.3 WORKING CAPITAL
The investment in the initial working capital is worked out Rs 1,796,549,
as detailed below.
AMOUNT IN RS First three months salaries 321,000 Misc expenses 1
00,000 Inventories 875,549 Cash requirements ,500,000 Initial Working
Capital 1,796,549
4.6.4 OVERHEAD COSTS
Following Overheads are assumed to occur in the first year of
production.
Expense Year amount Depreciation 1,323,903 Insurance 628,500
Selling and Distribution 441,000 Miscellaneous 14,447 Total 2,407,850