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Contents

DISCLAIMER ................................................................................................................................ 2
EXECUTIVE SUMMARY ............................................................................................................ 2
PURPOSE OF THE DOCUMENT ................................................................................................ 2
INTRODUCTION: ......................................................................................................................... 3
Proposed Business Legal Status ................................................................................................. 4
NAME OF THE FOUNDERS ........................................................................................................ 4
Customers: ...................................................................................................................................... 6
Distribution Channels ..................................................................................................................... 6
PRODUCT AND SERVICE FEASIBILITY ................................................................................. 6
BRIEF DESCRIPTION OF PRODUCT .................................................................................... 6
Marble ..................................................................................................................................... 6
Onyx ........................................................................................................................................ 6
Key Success Factors ....................................................................................................................... 7
Significant number of mines and processing units ...................................................................... 7
DEMAND FOR OUR NEW PRODUCTS ..................................................................................... 7
TARGET MARKETS / CITIES ..................................................................................................... 8
Project Competitors: ....................................................................................................................... 8
Promotion and Advertising ............................................................................................................. 9
Management and Organization ..................................................................................................... 13
Process Flow Chart ................................................................................................................... 13
FINANCIAL FEASIBILITY ........................................................................................................ 14
Total Startup Cash Needed (to Make First Sale) ...................................................................... 14
Financial Plan................................................................................................................................ 15
Income Statement of Pakistan Marble Products ....................................................................... 15
Cash Flow Statement of Pakistan Marble Products .................................................................. 16
Balance Sheet of Pakistan Marble Products ............................................................................. 17
Conclusion: ................................................................................................................................... 18
REMARKS: .................................................................................................................................. 19
REFRENCES: ............................................................................................................................... 20


DISCLAIMER

The purpose and scope of this information memorandum is to introduce the subject matter
and provide a general idea and information on the said area. All the material included in this
document is based on data/information gathered from various sources and is based on certain
assumptions. Although, due care and diligence has been taken to compile this document, the
contained information may vary due to any change in any of the concerned factors, and the
actual results may differ substantially from the presented information. Pakistan Marble Products
does not assume any liability for any financial or other loss resulting from this memorandum in
consequence of undertaking this activity. Therefore, the content of this memorandum should not
be relied upon for making any decision, investment or otherwise. The prospective user of this
memorandum is encouraged to carry out his/her own due diligence and gather any information
he/she considers necessary for making an informed decision. The content of the information
memorandum does not bind Pakistan Marble Products in any legal or other form.

EXECUTIVE SUMMARY

Marble & Onyx Products Manufacturing Unit is proposed to be located at Quetta. Product(s)
include Marble & onyx Flower Vases, Jar, Chess Boards, Animal Shapes, Cigarette Ash Trays
and Photo Frames. Installed capacity of the project is to process12,060 sq.ft of Marble with
initial utilization of 6,030 sq.ft in year 1., at 50% capacity utilization. Total cost estimate is Rs.
4.98 million with fixed investment of Rs.3.40 million and working capital of Rs. 1.59 million.
Given the cost assumptions, the Internal Rate of Return and Payback period are 51% and 02
years respectively.

The mean purpose to this study is to encourage the local marble distributors and to facilitate the
local masses of Balochistan the luxurious product at an economy prices. These all will be
achievable after taking loan from banks.

Quetta has a lot of potential to address and support the new investors and entrepreneurs to start
their business and to try their luck, As per in our case the feasibility analysis shows a positive
and profitable sign.

PURPOSE OF THE DOCUMENT

The objective of the business plan study is primarily to facilitate potential Investors to release
fund in our project. The project business plan may form the basis of an important investment
decision and in order to serve this objective, the study covers various aspects of project concept
development, start-up, and production, finance and business management.

INTRODUCTION:

Pakistan is one of the growing economies of the world and there are a lot of businesses
that are growing very rapidly in Pakistan. Pakistan has four provinces namely Balochistan,
Punjab, Sindh and Khyber-Pakhtunkhwa, out of these four provinces Balochistan is the largest
province with respect to Area and Punjab is the largest with respect to Population. Pakistan is
basically an agricultural country so thats why its major exports are agricultural products but in
the beginning of the 21
th
century many of other businesses are growing in Pakistan including first
in the row Telecommunication and others as well.
Marble manufacturing business in Pakistan is also increasing day by day therefore more
and more factories are being open in different parts of the country and professionalism is
increasing in Marble businesses. The policy of Innovation is being adopted in marble business
more and more new products are being introduced of national and international quality, as we
can also say that in this fast moving world where people have no time for anyone except their
duties restaurants are creating a chain for the people to meet in mean time have their meals.
Many of the Marble business in the world have grown internationally including like
Carrara marble company & Best Marble & Granite, Co which have earn respectful names in this
field.
Baluchistan is also popular because of different local cuisines which are being liked wide
in the country. Because of high rates of Marble products in the region and people have a limited
capacity to enjoy new design so people mostly attract towards the Pakistan Marble Products
which provide quality and as well as affordable prices to the people to spend their precious time
therefore marble businesses is increasing day by day and competition is also increasing with
respect to quality and price.
The biggest cities of Pakistan have a lot of national and international products to serve for
the people according to their needs and satisfy them. Although the mining industry is very
competitive, the lifestyle changes created by modern world are increasing the trend of enjoying
new design.
The need of better quality products has increased quality concerns in most parts of the
country as the people are being educated people are avoiding the traditional items like business
which provide low quality products to the people which in return they do not go to use marble
products.
One of the major problem in the country is that most of the marble business are
unlicensed and operate on their own will if all these businesess be registered with the concern
departments there should be a proper check and balance system and their be less quality concerns
and a reputable amount of tax can be earned from this small industry.

Marble and Granite is the sixth largest mineral extracted after coal, rock salt, lime stone and
china clay in Pakistan. According to the industry estimates nearly 1225 quarries and 3000
processors along with 30,000 workforce constitutes the sector. The marble processing units in
Pakistan use manual and outdated techniques with locally fabricated equipment to cut and
process the stone, limiting efficiency and accuracy. These results in inability to capture the fair
value of products produced. The construction activity in Pakistan witnessed a boom in last
fifteen years and as a result demands for dimensional stones such as marble and granite used in
flooring, sanitation, outer walls has also increased. This demand is currently being met with local
and imported stones by individual and institutional buyers. Marble product users are relying
more and more on imported stones due to inefficiencies (e.g. quality and consistency) of marble
processors to meet the local demand.
One of the objectives of our business is to develop dynamic, internationally competitive
firms/enterprises/business units to accelerate sales, investment and job growth. Feasibility
analysis is being designed to support the Marble and Granite sector of Pakistan with strategic
objective of increasing marble processors efficiency and product quality with up-gradation of
processing infrastructure, workforce development program and increasing market linkages. Key
beneficiaries will be marble tile and slab processors SMEs and mosaic manufacturers.
Proposed Business Legal Status
The business can be started as sole proprietorship or partnership because of great potential
involved. Furthermore, comparatively fewer complications are involved in forming,
administering and running the sole proprietorship or partnership businesses. So, in our case we
partner are reliable to work with each other.
NAME OF THE FOUNDERS
1. Sanam Khair
2. Iftikhar Ahmed Sanjrani
The idea was suggested by Iftikhar Ahmed Sanjrani and further it was more organized and
polished by Sanam Khair. The Profit and loss will be equal among the partner and so as per
Pakistan partnership act. The initial investment will be half-half between these two patners. And
the remaining investment will be achieved by taking loans from bank.


Customers:
Our product customers are households, government and private constuctors, builders.

Distribution Channels
As per our distribution channel, we are not bond to intermediaries because we will sale our
products direct to end users. So we have no any threat from intermediaries.
PRODUCT AND SERVICE FEASIBILITY
BRIEF DESCRIPTION OF PRODUCT

Marble

Marble is a crystalline, compact variety of metamorphosed limestone, consisting primarily of
calcite (CaCO3), dolomite (CaMg (CO3)6) or a combination of both minerals. Pure calcite is
white, but mineral impurities add color in variegated patterns. Extensive deposits are located in
Italy, India, Pakistan, Spain, Greece, Brazil, China, Afghanistan, Turkey, Great Britain, and in
the United States. Commercially the term Marble is extended to include any rock composed of
calcium carbonate that takes polish including ordinary limestone. The term is further extended in
the loose designation of stones such as alabaster, serpentine and other soft rocks. Specific gravity
of Marble ranges between 2.68 to 2.72, determining the density of the stone.
Marble is a durable stone in dry atmosphere only when protected from rain. The surface of
Marble crumbles readily when exposed to moist or acidic environment. Purest form of Marble is
statuary Marble, which is white with visible crystalline structure. The distinctive luster of
statuary. Marble is caused by the reflection of penetrated light from the surfaces of inner crystals.

Onyx

Similar to most of the other forms of Marble, it is composed of compact rocks of carbonate
nature of sedimentary origin formed through chemical precipitation usually in underground
cavities.
Generally found in the form of big lenses and patches with a low relief. If the crystals are
particularly large (some centimeter) and visible to the naked eye, these rocks are known as
alabaster. Specific gravity of Onyx ranges between 2.6 to 2.8. Onyx is mostly green in color with
fine texture, nevertheless bands and patches of red, brown, and white are common, with rare
patches of golden. Green variety is more valuable because it is used for special works in many
parts of the world. Major deposits are located in Mexico, Iran and Turkey with best green variety
in Afghanistan and Pakistan.

Technology: The proposed unit will comprise processing machines including 12 & 18 inch
cutters and 5 ft Lathe machine to produce different types of marble handicrafts.

Location: The Unit would be located at Quetta or near marble processing clusters for easy
transportation of raw material and finished goods.

Product: Handicrafts including Flower Vases, Cigarette Ashtray, Chess Boards, Photo Frames
and Eggs/Oval Shapes etc.


Target Market: Main buyers would be domestic consumers, corporate customers, foreign
visitors and companies / individuals dealing in local and export orders.

Employment Generation: The proposed project will provide direct employment to 10 (ten)
people.

Profitability: The Financial Analysis shows that the unit will be profitable from the very first
year.
Key Success Factors
Vast range and variety of Marble, Granite and Onyx colors in Balochistan.
Large deposits of superior quality Marble, Granite and Onyx in the country.
General accessibility to major Marble and Onyx deposits.
Rehabilitation in Afghanistan.
Large and established world markets.
Improved technological changes available.
Ample opportunity for exports.
Internationally accepted cutting services with respect to dimensions.
Significant number of mines and processing units
DEMAND FOR OUR NEW PRODUCTS
The marble and granite sector, which is mostly dependent on Exports, is growing almost at
par with the Italy and China construction sector, according to a recent report published by
Emirates Industrial Bank.

Demand for granite and marble products has been growing at a considerable pace of about six
per cent per annum between 1995 and 1999. Growth is higher for unfinished/crude material,
indicating a slight increase in cutting/processing activity.

Exports of Pakistan Marble have equally increased in value terms, but have grown at a smaller
rate than growth by volume, averaging a mere 2.7 per cent in the last four years, against an
average 5.6 per cent rise in volume. This confirms the opinion of industry sources that there has
been an increase in the import of low grade marble in recent years.

The price of marble and granite products varies greatly depending on the quality of the material,
thickness, finish, colour source, among others.

Demand for granite and marble products in the country is entirely met through exports. Both
marble and granite products are exported in large uncut blocks or rocks and slabs cut from blocks
and their surface polished for final use and finished tiles, namely slabs cut to required sizes.
Exports in blocks and slabs accounts for only about 12 per cent of total imports.

Meanwhile, demand for flooring stone in the UAE is the highest in the entire Gulf region. It is
significantly higher than the marble and granite imports in Saudi Arabia and Kuwait, which can
only be attributed to the higher level of construction activity in the country in both quantitative
and qualitative terms.

In Pakistan especially in Balochistan Construction companies prefer to purchase the material
locally, rather than import directly which has given rise to a large trade.

TARGET MARKETS / CITIES
The marble & onyx products are famous worldwide for their uniqueness and are used as
decorative and gift items. Major export markets for these marble & onyx handicrafts are Central
Asian Republics, United States of America and Australia. The domestic market also carries a
great untapped potential for these handicrafts, catering to tourists, handicraft shops, antiques
shops and hotel industry. Our target market is within the Balochistan and surroundings.

Project Competitors:
Our main Business competitors are
1: Name: New Khan Marbles
Location: Zarghoon Road Quetta
2: Name: Karachi Marbles
Location: Zarghoon Road Quetta
3: Name: Ahmed & Sons
Location: Sirki Road Quetta
4: Name: Janan Marbles and Tiles
Location: Sirki Road Quetta
5: Balochistan Marbles
Location: Zarghoon Road Quetta
Promotion and Advertising

For promotion and Advertisement we have plan to spend PRs. 25,000 each year. After first
year we will increase our Promotion and Advertisement budget. Because now a days the success
of the business depend on the promotion and advertisement

Concept Statement
After distributing the Concept Statement Test Survey paper, the feedback from our respondent
was positive and they responded 100%. We distributed the paper among 5 people. First of all
majority among them suggested that Quetta has a lot of potential to accept new business. They
recommended that the name of our firm is attractive Pakistan Marble Products (PMP) they
suggested that the weather of Quetta suits such kind of business. On the answer of our Questions
about location of our firm they further recommended that Sirki Road is appropriate for such a
business. They suggested dont compromise the quality of the products. They concept statement
test show that the majority among them supported our idea, and they suggested to do more
advertisement and hire well skilled manpower. They said that they probably would buy our
products. 3/5 said that the product is feasible and it will be successful. So, the result was positive
and finished our concept statement test and proceed one step forward towards Buying Intention
Survey.

Buying Intention Survey
They feasibility survey shows that the positive feedback from 10 people towards our new
product is attractive and feasible. We asked about their first visit in any marble shop, they replied
and said that it was memorable but it was in other cities not in Quetta. Quetta there is no any firm
which they manufacture Marble & Onyx Flower Vases, Jar, Chess Boards, Animal Shapes,
Cigarette Ash Trays and Photo Frames. They said that they wish to buy the local products with
high quality and at a cheaper cost.

Industry/Market Feasibility

Global demand for marble and onyx products largely depend on the tourism industry around
the world so as the local industry which is export oriented due to low profit margins on such
products in the local market. Based on our study with the existing players who are exporting
such items, Quetta is the new emerging market and growing very fast. Therefore, Quetta may be
a permanent market. Seasonal demand of Marble and Onyx products largely depend on religious
and cultural and seasonal occasions round the world. Its demand increases particularly during
March beginning.


Low Potential Moderate Potential High Potential
1. Number of competitors None
2. Age of industry Old
3. Growth rate of industry Moderate growth
4. Average net income for
firms in the industry
High
5. Degree of industry
concentration
Neither
concentrated nor
fragmented


6. Stage of industry life
cycle
Growth phase
7. Importance of industrys
products and/or services
to customers
Must have
8. Extent to which business
and environmental
trends are moving in
favor of the industry
Medium
9. Number of exciting new
product and services
emerging from the
industry
High
10. Long-term prospects Strong

Target Market Attractiveness
The purpose of this whole discussion is to analysis target market attractiveness. The Pakistan
Marble Products (PMP) has chosen its Target market as whole Balochistan by opening a marble
manufacturing firm at Sirki Road, Quetta. In addition, In the case of PMP, there could potentially
be an opportunity to develop quality products for masses of Balochistan.
After that by this study of feasibility we have understood the size of our market segment. We
do sure that the cost of developing and launching the product will deliver an acceptable rate of
return. Though the market is medium, and there are enough people in the segment, they are too
difficult to attract them, the market is attractive enough to justify investment.

Low Potential Moderate Potential High Potential
Number of competitors
in target market
None
Growth rate of firms in
the target market
Slow growth
Average net income for
firms in the target
market
Medium
Methods for generating Clear
revenue in the industry
Ability to create
barriers to entry for
potential competitors
Can create
Degree to which
customers feel satisfied
by the current offerings
in the target market
Neither satisfied
or dissatisfied

Potential to employ low
cost guerrilla and/or
buzz marketing
techniques to promote
the firms product or
services
Moderate
Excitement surrounding
new product/service
offerings in the target
market
High


The new product which we are going to offer has no competitors, so we have an edge to
achieve our goals. Our firm also has potential to create barrier to entrance of new competitors.
Even the people are excitement to see such products in Quetta
Market Timeliness Assessment Tool
Low Potential Moderate
Potential
High Potential
1. Buying mood of
customers

Customers are
in a moderate
buying mood

2. Momentum of the
market
Slowly gaining
momentum

3. Need for a new firm in
the market with your
offerings or geographic
location
High
4. Extent to which business
and environmental
trends are moving in
favor of the target
market
Medium
5. Recent or planned
entrance of large firms
into the market
No larger firms
entered the
market or are
rumored to be
entering the
market

ORGANIZATIONAL FEASIBILITY
The marble products as a whole depends on the quality of the products. Pakistan Marble
Products divides its operations into two basic categories: administrative and manufacturing
operations. Administrative personnel handle the entire black and white work of the Organization,
where the manufacturing operations focused on the productivity of the firm.
Assessment Tool
Low Potential Moderate Potential High Potential
1. Passion for the business
idea
Low Moderate High
2. Relevant industry
experience
Moderate
3. Prior entrepreneurial
experience
Moderate
4. Depth of professional
and social networks
Strong
5. Creativity among
management team
members
High
6.

Experience and expertise
in cash flow
management
Moderate
7. College graduate

Some college
education but not
currently in
college



Resource Sufficiency Assessment Tool
Ratings Resource Sufficiency
1 2 3 4 5
Office space
1 2 3 4 5
Lab space, manufacturing space, or space to launch a
service business
1 2 3 4 5
Contract manufacturers or outsource providers
1 2 3 4 5
Key management employees (now and in the future)
1 2 3 4 5
Key support personnel (now and in the future)
1 2 3 4 5
Key equipment needed to operate the business
(computers, machinery, delivery vehicles)
1 2 3 4 5
Ability to obtain intellectual property protection on key
aspects of the business
1 2 3 4 5
Support of local and state government if applicable for
business launch
1 2 3 4 5
Ability to form favorable business partnerships
Ratings: Strong, Neutral,
or Weak

Neutral Proximity to similar firms (for the purpose of knowledge
sharing)
Strong Proximity to suppliers
Strong Proximity to customers
Neutral Proximity to a major research university (if applicable)



Management and Organization

As per management matter is concern, we have an experienced manager. We will appoint him
and I my self be there to see the manufacturing process. In the case of confusion I have one of
my friend in Italy who is expert in this field and he promised to supervise my business from
Italy.

Process Flow Chart


FINANCIAL FEASIBILITY
Total Startup Cash Needed (to Make First Sale)

Capital Investments Amount

Property 1,200,000
Furniture and fixtures 282,600
Computer equipment 300,000
Other equipment 815,000
Vehicles 950,000

Operating Expenses Amount
Legal, accounting, and professional services 300,000
Advertising and promotions 20,000
Deposits for utilities 25,000
Licenses and permits 52,000
Prepaid insurance 30,000
Lease payments 200,000
Salary and wages 250,000
Payroll taxes 30,000
Travel 65,000
Signs 18,000
Tools and supplies 45,000
Starting inventory 50,000
Cash (working capital) 200,000

Total Startup Cash Needed = 4,832,600


Financial Plan


Income Statement of Pakistan Marble Products

Pakistan Marble Products
INCOME STATEMENT
For the Year..
Year 1st Year 2nd Year 3rd Year 4th
Sales 2,500,000 3,500,000 4,000,000 4,500,000
Less: Cost of Goods Sold 800,000 1,100,000 1,200,000 1,400,000
Gross Profit 1,700,000 2,400,000 2,800,000 3,100,000
Less: Selling, Admin and General expenditure.
Salaries 250,000 300,000 300,000 330,000
Utilities 20,000 22,000 22,000 25,000
Insurance 30,000 30,000 30,000 30,000
Advertisements 15,000 20,000 25,000 30,000
Depreciations 30,000 30,000 30,000 30,000
Other Office Expenditures 10,000 12,000 15,000 15,000
Other Expenditures 10,000 15,000 20,000 25,000
Interest on Loan 25,000 25,000 25,000 25,000
Sub Total 390,000 454,000 467,000 510,000

Operating Income 1,310,000 1,946,000 2,333,000 2,590,000
Less: Taxes 10,000 15,000 20,000 25,000

Net Income 1,300,000 1,931,000 2,313,000 2,565,000



Cash Flow Statement of Pakistan Marble Products






Year 0 Year 1st Year 2nd Year 3rd
Net Profit 1,300,000 1,931,000 2,313,000
Depreciations 30,000 30,000 30,000
Interst Expense 25,000 25,000 25,000
Account Receivables (100,000) (150,000) (200,000)
Inventory (80,000) (200,000) (230,000) (250,000)
Account Payable (190,000) (220,000) (260,000)
Other Liabilities (1,795,000) (2,195,000) (2,495,000) (2,995,000)
Cash from Operations (1,875,000) (1,330,000) (1,109,000) (1,337,000)
Markup Paid 390,000 454,000 467,000 510,000
Net Cash from Operations (2,265,000) (1,784,000) (1,576,000) (1,847,000)
Long Term & Short Term Debts 2,500,000 2,000,000 1,200,000 600,000
Capital 2,600,000 2,600,000 2,600,000 2,600,000
Net Cash 2,835,000 2,816,000 2,224,000 1,353,000
Pakistan Marble Products
Cash Flow Statement
For the Period.
Balance Sheet of Pakistan Marble Products

Pakistan Marble Products
Balance Sheet Statement
For the Year.
Year 0 Year 1st Year 2nd Year 3rd
Current Assets:
Cash 1,500,000 2,542,600 4,023,600 6,096,600
Accounts Receivables 100,000 150,000 200,000
Inventories 80,000 200,000 230,000 250,000
Total Current Assets 1,580,000 2,842,600 4,403,600 6,546,600
Fixed Assets:
Land and Building 1,200,000 1,200,000 1,200,000 1,200,000
Mechinery 815,000 700,000 500,000 300,000
Furnitures 282,600 250,000 200,000 150,000
Office Vehicle 950,000 900,000 800,000 710,000
Office Equipment 300,000 250,000 200,000 150,000
Total Fixed Assets 3,547,600 3,300,000 2,900,000 2,510,000

Total Assets 5,127,600 6,142,600 7,303,600 9,056,600

Liabilities:
Accounts Payable 190,000 220,000 260,000
Long & Short Term Debts 2,500,000 2,000,000 1,200,000 600,000
Tax 25,000 25,000 25,000
Other Liabilities 27,600 27,600 27,600 27,600
Toatal Liabilities 2,527,600 2,242,600 1,472,600 912,600

Owners Equity:
Capital 2,600,000 2,600,000 2,600,000 2,600,000
Retained Earning 1,300,000 3,231,000 5,544,000
Total Owners Equity 2,600,000 3,900,000 5,831,000 8,144,000

Total Liabilities & Equity 5,127,600 6,142,600 7,303,600 9,056,600



Conclusion:

Marble & Onyx Products Manufacturing Unit is proposed to be located at Quetta. Product(s)
include Marble & onyx Flower Vases, Jar, Chess Boards, Animal Shapes, Cigarette Ash Trays
and Photo Frames. The mean purpose to this study is to encourage the local marble distributors
and to facilitate the local masses of Balochistan the luxurious product at an economy prices.
These all will achievable after taking loan from banks. Marble and Granite is the sixth largest
mineral extracted after coal, rock salt, lime stone and china clay in Pakistan.
The marble & onyx products are famous worldwide for their uniqueness and are used as
decorative and gift items. Major export markets for these marble & onyx handicrafts are Central
Asian Republics, United States of America and Australia. The domestic market also carries a
great untapped potential for these handicrafts, catering to tourists, handicraft shops, antiques
shops and hotel industry. Our target market is within the Balochistan and surroundings.
Quetta may be a permanent market. Seasonal demand of Marble and Onyx products largely
depend on religious and cultural and seasonal occasions round the world. Its demand increases
particularly during March beginning.
The Pakistan Marble Products (PMP) has chosen its Target market as whole Balochistan by
opening a marble manufacturing firm at Sirki Road, Quetta. In addition, In the case of PMP,
there could potentially be an opportunity to develop quality products for masses of Balochistan.
In short, as per concept statement test and buying intention survey, we were so good to start
this business in Quetta. The idea is attractive and people will enjoy our product of high quality
with range able prices.

REMARKS:

REFRENCES: