Proposed development

proposal for

Sand Refinery

at Keenakele Estate

at Pahala Mavila village,

Natthandiya.

in North WesternProvince,

Sri Lanka.

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INDEX Page

Project Scope ( Overview) 3.

Phase 1. (Permeable) 4.

1. Land acquisition and development.

2. Construction of proposed Factory.

3. Provision and installing of Machinery

Phase 2. ( Operational) 5.

1. Transport of raw materials.

2. Processing mechanism in the factory.

Phase 3. Financial analysis. (Analytical) 4.

1. Infrastructure development and associated cost in Phase 1.

2. Working capital requirements for a month at operational stage in

Phase 2..

3. Projected profit and loss statement. 6,7

Grand Summary. 8.

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Project Scope ( Overview)

This proposal sets out to demonstrate how a viable business opportunity

implemented to be fruitful venture within a period of one year by entering in to Sand
Refining process.

The main criteria going to be adapted is as follows

1.0 Acquisition of land consist of two acres,

2.0 Construction of a compound wall surround it, with two access gates.
3.0 Construction of office to the floor area of 3.0 squares.
4.0 Construction of a factory to the floor area of 30.0 squares,
5.0 Providing and fixing necessary machinery, water services to run the
washing plant
6.0 Provision of electricity services and
7.0 Dealing with government agencies if necessary at the phase 1.

At phase 2 the developer intends to transport raw materials to the site, process
those to necessary quality simultaneously and sale of the product at the market rate by
reasonable profit margin after deducting all the operational and permeable cost.

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Phase 1. (permeable)

1. Land acquisition and development.

Proposed factory premises is situated at village called Pahala Mavila at divided

potion of main Keenakele Estate in Natthandiya Divisional Secretary’s Division. The
factory premises comprise of two blocked out lands from the main Keenakele Estate and
bare block names of Block 4 and Block 5 and have the extent of two acres. This land has
20.0’ wide two access roads, one from South and one from North sides. At present no
cultivation is in progress and the land remains bare with little vegetation.
The developer wishes to acquire the above land at current market prize and to
develop it to meet the needs of Sand Refining Factory. After acquisition of land a
compound wall to be constructed along the perimeter of the said land using rubble
foundation and walls made out of cement sand blocks to the height of 10.0’ reinforced
with R.C.C columns at 8.0 feet intervals and tie beam on top of it with two gates in North
and South entrances.

2. Construction of proposed Factory

At north west corner of the land near south entrance a office premises of 3.0 sqs:
is proposed to be constructed to facilitate operational manager of the factory. It is
proposed to made out of Rubble foundation, walls made out of cement sand blocks, with
clay tile roof. Next to it ; towards North; a factory premises with warehouse of 30.0 Sqs:
is proposed to be constructed where the necessary machineries are going to be installed
and finished products to be stored. It also proposed to be constructed out of rubble
foundations, R.C.C. columns with Asbestos roof.
The developer intend to construct a 20.0’ diameter well to supply water for
washing plant.

3 .Provision and installing of Machinary

The developer wishes to purchase sand washing machinery from a reputed

manufacturer. In addition he intends to purchase one back hoe and a loader at a market
prize.

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 Phase 2. ( Operational)

1. Transport of raw materials.

After completion of Phase 1 of the development plan the developer wishes to start
operational stage by transporting raw material (raw Silica) from a site situated at village
called Madampe in Madampe Divisional Secretrey’s Division by dump trucks. Targeted
quantity to be transported to factory premises per a day is 510 Cubes by using 3.0 Cubes
capacity trucks, ie; 170 trips per a day.

2. Processing mechanism.

The developer intends to load the raw materials to processing machinery by using
one back hoe and one loader.

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Phase 3. Financial analysis. (Analytical)

3.1.Infrastructure development and associated cost in Phase 1.

3.1.1 Land acquisition and development.

3.1.1.1 Land acquisition ( 2.0 Acres) SLR 16 .00 million.
3.1.1.2 Construction of compound wall SLR 1.25 million
3.1.1.3 Provision of electricity supply to the factory SLR 1.00 million
3.1.1.4 For dealing with government agencies.( To obtain
permition from Environment Authority and
Geological Survey & Mines Bureau ) SLR 0.50 million.

3.1.2 Construction of proposed factory

3.1.2.1 Construction of office premises SLR 1.20 million
3.1.2.2 Construction of Factory premises. SLR 7.50 million.
3.1.2.2 Construction of a well SLR 0.20 million

3.1.3 Provision and installation of machinery

3.1.3.1 Purchase & installation of processing machinery SLR 5.00 million
3.13.2 Purchase a Back hoe SLR 2.50 million
3.1.3.3 Purchase a loader SLR 2.00 million.
3.1.3.4 Purchase a water pump & install it with necessary
delivery systems SLR 0.10 million

Total cost for phase 1. = SLR 37.250 million

For contingencies (10%) = SLR 3.725 million
Total = SLR 40.975 million

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3.2 Working capital requirements for a month at operational stage in Phase 2.

3.2.1 Transport of raw materials

3.2.1.1 Transport of raw materials for 26 days SLR 53.04million
(510*26*4000/=, inclusive of transport charges)

3.2.2 Processing mechanism in the factory

3.2.1.2 Wages for machine operators, back hoe operators,

loader operators and management staff SLR 0.14 million
3.2.1.3 For maintenance of machinery inclusive of back
hoe and loader SLR 0.10 million
3.2.1.4 For fuel for back hoe and loader SLR 0.20 million
3.2.1.5 For electricity bills SLR 0.20 million

Total cost for phase 2 per month =SLR 53.680 million

For contingencies (10%) =SLR 5.368 million
Total =SLR 59. 048 million.

3.3 Projected Profit and Loss statement

3.3.1 Following assumption are made before arrival in to Profit and Loss
calculation

3.3.1.1 100% of raw materials transported to the site are utilized for processing.
Ie; 26*510 = 13260.00 Cubes.
3.3.1.2 Consider 5% loss for debris and other residual materials.
Ie; 13260 -13260*5% =12597 Cubes.
3.3.1.3 Consider100% sales of production at the end of each month.
3.3.1.4 Consider efficiency of processing is 100% throughout every month.

3.3.2 Projected cash inflow per each month =SLR 88.180 million
(ie;12597* 7000/=)
3.2.1.6 Projected cash outflow per each month =SLR 59.048 million
3.3.3 projected profit per month =SLR 29.132 million

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Grand Summary (Financial aspect)

Total capitol Requirement (40.975+59.048) =SLR 100.023 million

Projected cash inflow per each month =SLR 88.180 million
Projected profit per month =SLR 29.132 million