FEASIBILITY STUDY

(CONSTRUCTION OF POULTRY FARM)

SUNRISE ENVIRONMENTAL CONTROLLED SHED

SWABI DISTRICT
KYBER PAKHTUNKHWA

APRIL 20, 2019

FEASIBILITY REPORT

Contents
Executive summary: ..................................................................................................................................... 2
INTRODUCTION: ........................................................................................................................................... 2
Location: ................................................................................................................................................... 3
SWOT ANALYSIS ............................................................................................ Error! Bookmark not defined.
Environmental Controlled Shed ............................................................................................................... 5
Strengths .................................................................................................... Error! Bookmark not defined.
WEAKNESS: ............................................................................................................................................... 5
OPPORTUNITIES: ....................................................................................................................................... 5
THREATS: ................................................................................................................................................... 6
Market Analysis: ........................................................................................................................................... 6
DISTRIBUTION CHANNELS ........................................................................................................................ 7
POULTRY GP IN PAKISTAN UPDATES 17-12-2018: ....................................... Error! Bookmark not defined.
Poultry and market division : ....................................................................................................................... 8
TECHNICAL ANALYSIS: ................................................................................................................................... 9
Flow System:........................................................................................................................................... 10
TECHNOLOGY CONSIDERATIONS ................................................................................................................ 11
PERSONAL ANALYSIS .................................................................................................................................. 14
FINANCIAL PROJECTION: ............................................................................................................................ 15
GOVERNMENT POLICIES: .............................................................................. Error! Bookmark not defined.
RECOMMENDATIONS:................................................................................... Error! Bookmark not defined.
Conclusion: ................................................................................................................................................. 22
References: ................................................................................................................................................. 24

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FEASIBILITY REPORT

Executive summary:

Chicken is the least expensive wellspring of creature protein accessible in the

nation. The time required for growing chicken is less as compare to huge creatures.
The utilization of meat is expanding because of developing wellbeing awareness in
the majority. The proposed task considers to set up Sunrise Environmental
Controlled Shed at Swabi. There is no other poultry farm in Swabi. So people of
Swabi have to get the chicken from other areas i.e. Islamabad or Peshawar. That’s
why the citizen of Swabi purchases the meat at high rate than other developed
areas. The purpose of this project is to provide the meat to the citizens of Swabi at
lower and cheap rates. The yearly appraised limit is 495 thousand kilogram of
chicken. The suggested ventures have most recent foreign apparatus from US yet
legitimately obtained from provider through Karachi.

INTRODUCTION:

Poultry ranch is a task of domesticated animal’s area, where the docs raise for a
time of about a month. Chicken is the least expensive wellspring of creature protein
accessible in nation. Utilization of chicken’smeat is expanding because of
developing wellbeing cognizance in the majority. Over cultivating is a gainful
endeavor because of consistent expanding request of the meat in the market. Every
year, 7 rushes of chicken are being raised on similar premises of homestead.
Chickens are given to merchants and the entire Venders showcases in the civilized
zones. A few times chicken can likewise be sold straightforwardly to the
representatives in the main shops.
The current day by day accessibility of meat amount per city in our country getting
from creature source including hamburger and lamb, consolidated adds up to 10
grams. This is far not surely the suggested every day dietary protein reward from
chicken of 25 grams as indicated by the WHO benchmarks.

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Location:

The considered undertaking thinks about to set up Sunrise Environmental

Controlled Shed at Swabi. The territory of the undertaking is 2Acre.

The considered assignment place appreciates the advantages of;

1) Easy access of unrefined items
2) Easy access to fundamental street and train stop.
3) Origin of intensity, water, oil and so forth.
4) Availability of conveyance and transmission calling frameworks.
5) Accessibility to professional and amateur worker.
6) Save from ecological perils

INSTALLATION AREA:

Installation area for 99.99 percent is thirty thousand birds per flock and 210,000
birds annually.

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IMPLEMENTATION SCHEDULE:

Implementation Schedule
S.# Activities Month Year
1 Acquiring of Land & leveling Start 1st June 2019

Complete 15th June 2019

2 Plan of action and construction Start 16th June 2019

Construction plan Complete 30th June 2019

4 Order for machinery 1st July 2019

5 Construction of building and civil work Start 1st July 2019

Complete 31st July 2019

6 Arrival of machinery at site 1st Aug 2019

7 Erection and installation of machinery Start 5th Aug 2019

Complete 20th Aug 2019

8 Order for raw materials 15th Aug 2019

9 Trial run Start 21st Aug 2019

Complete 30th Aug 2019

10 Start of commercial production 1st Sep 2019

Project Statement:

Grill meat is cheap wellspring creature accessible to our nation. Interval require in
growing grill winged animals is less as compared to huge creatures. Utilization of
meat is expanding because of developing wellbeing awareness in the majority.
The current every day accessibility of meat amount per unit of population in our
country getting from creature source including hamburger and sheep consolidated

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adds upto 11 grams. That’s not exactly suggested every day diet proteins
recompense by creature wellspring of 24 g as per the WHO measures.

Environmental Controlled Shed

QUALITIES:
Natural Farms have different qualities. these are following:
 Development in independent company
 Require government motivator
 Government job and backing
 Create preparing project for Farm keepers
 Satisfy extensive need of white per annum at less expensive costs helpful
showcasing framework in the creating procedure
 Low possibility for Disease
 Keep up temperature under forty degree centigrade

SHORTCOMINGS:
The shortcomings of EC shed/farm are as per the following:
 Appropriation of new antibodies
 Staggering expense of crude material
 Not accessibility of room
 Infections
 Unhygienic condition
 Handling plant
 Poor administration
 Absence of prepared specialist
 Absence of access to data sources and credits

OPPORTUNITIES:
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Ecological Controlled Shed has different chances and they are as per the
following:
 Degree for solidified organization
 Monetary advantageous
 Favorable position for independent venture individual
 Degree for eatery
 Ceaseless increment popular of meat in market
 Deals cost are sensible and inward frequency of coming back is additionally
less
 Creation on extensive measure could boost benefit

DANGERS:
The dangers of EC shad or Farm are as per the following:
 Impact of progress in the administration guideline.
 Winged animal Flu
 Hard core charge on hatchery
 Present emergency
 Constantly an excess of variety in deals costs
 Vitality emergencies
 Quick increment in chicks costs

Market Analysis:

The showcasing of birds pursues the conventional mechanism of conveyance. Grills

are conveyed in shops by agent. The job of Art is to understand a mechanism and
make money. At times, the agent gives DOCs and other ranch feed, and so forth to
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the oven ranchers and afterward consents to repurchase the chickens from them.
Chickens are brought to the civilized area and are sold to meat shops or market-
road chicken market. Chickens are sold on current mass premise. The interval
required for getting grills from the homestead to the market is less. In spite of the
fact that gathering and treatment of chicken has improved with the utilization of
loader trucks, yet more noteworthy the separation between the poultry maker and
buyer, increasingly confused is the selling framework with their accumulation,
taking care of and transportation to the Consumer or handling plants. The
preparing farms make cleaned birds. In any case, an extremely little measure of
cleaned birds are accessible in the nearby wholesale showcase. The coordinated
preparing units circulate solidified and cleaned birds stuffed in entire or slice ups
to the purchaser by meat shops under their image names. The trap in showcasing
is fast accessibility of market data of chicken free market activity, which will decide
the selling cost.

DISTRIBUTION CHANNELS

EC poultry shed/farm is the energetic fragments of agribusiness factory of our

nation. This segment produces business (direct/circuitous) and salary for
about 1.6 millions individuals. Its commitment in farming development is
4.80%, development 9.85%. White meat commitment 18 percent of the
absolute protein generation in the nation. The present interest in meat

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production is about 201 billions rupees. Poultry zones have appeared high
construction with flow of 7-9% that shows it’s intrinsic.

Poultry and market division:

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TECHNICAL ANALYSIS:

PROCESS FLOW

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Flow System:
The accompanying works on beginning from entry for chicken is
 TTC: Humidity can be managed with the assistance of fuel radiators and
excessive temperature with air conditioning framework.
 Water by programmed areola drinking framework.
 Encouraging by programmed nourishing framework.
 Explicit inoculation timetable will be embraced for sickness control.
 Prophylactic medicine will be given by necessity.
 Sanitation and cleansing system will be carefully pursued amid and after
fulfilment of single run.
 Promoting of completed (prepared) ovens.

INNOVATION CONSIDERATIONS

INNOVATION INCLUDED:

The equipment utilized for Sunrise Poultry Farm is imported Equipments that
ebrings foreign structure and we straightforwardly bought it from UNICORN
SOLUTIONS PRIVATE LIMITED ISLAMABAD.

TABLE FOR EQUIPMENT COSTS:

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eMachinery and Other Equipment

Rs.
Descriptiowen Qty Cost /Item
'000'
Feed Hooper 1 55,000 55

Cooling Padw 4 19,900 80

Electric Mwoter 1HP 25 5,293 132

Generator 25 KV 1 400,000 400

Transforwmer 25 KV 1 310,000 310

Winchw 5 5,527 28

Cone Fanw Exhaust 15 17,000 255

Feed Line 4 85,680 343

Water Linew 5 60,235 301

Water Tank e1500 liter 2 9,300 19

Environmeent Controller 1 203,000 203

Brooder 2 183,587 367

Regulators 3 5,530 17

Penal Board 2 7,080 14

Alarm Box 1 4,850 5

Pressure Machines 2 20,065 40

Main Switch 1 2,610 3

OVERALL PRICE OF
EQUIOMENTS 2,571

Rate of set up 2.5% 51

Total Machinery & Equiepment Required

2,622

REQUIREMENT OF RAW MATERIAL:

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FEASIBILITY REPORT

Raw Material
2020 2021 2022

Chicks 13,601 16,600 20,000

Feed Bags 23,027 28,025 33,820

Vaccine 162 171 180.04

Total (Rs.) 36,790 44,634 54,000

REQUIREMENT OF UTILITIES:
MANUFACTURING OVER-HEADS

a) FIXED
COSTS (Rs.000)

(Fixed No. of
(KVA) Amount) Months

Power KVA 25 315 per KVA 12 95

on
Construction
Building @ 4% Cost 351

Machinery @ 5% Installed cost 131

Generator Flock in
(Diesel) Rs. 500,000 per Flock 7 Year 3,500

Miscellaneous 50

Total Fixed cost 4,127

Fluctuating
costs

No. of
days in
rate Rate of consumption year Total

High rate 6.27 70 315 138

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High rate
10.27 18 315 58

Total Variable
Cost 196

MANUFACTURING OVER-HEADS 2020 2021 2022

90% 95% 100%

Fixed Costs 4,127 4,127 4,127

Variable Costs 177 187 196

Total Costs 4,304 4,314 4,323

PERSONAL ANALYSIS

HUMAN RESOURCE REQUIREMENT:

S.No. employees needed stipend Annual stipend

1 manager 1 10,000 112,000

2 Accountant 1 8,000 96,000

3 Supervisor 1 11,000 132,000

4 Doctor 1 20,000 240,000

5 Workers 6 7,000 504,000

6 Electrician 1 9,000 108,000

7 Cook 1 7,000 84,000

8 Sweeper 2 4,000 96,000

9 Security Guard 1 6,000 72,000

TOTAL 15 1,440,000

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FINANCIAL PROJECTION:

ESTIMATED PRODUCTION:

Chicks 2020 2021 2022

100%
Total Production Capacity Prodeuction 90% 95% 100%

Total Production Capacity

'000 525 473 499 525

Total cost of project:

Total Amount

Amount '000’

Land eDevelopment 1,920

Ceivil Works 8,783

Machinerye 2,622

Furnituree 159

Proeduction 185

Intereest 1,246

eof 14,915

Conetingencies 10% Project rate 1,492

Toetal 16,407

Ienitial 8,190

Total Cost of Project 24,596

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FEASIBILITY REPORT

FINANCIAL ANALYSIS:

FINANCIAL ANALYSIS

Debet 60%

Alleied Bank Loan 14,758

egTotal Debt 14,758

Equity 40% 9,839

Total Debt & Equity 24,596

SPONSORS STAKE:

Names of Sponsors % of Equity Contribute Amount '000'

Muhammad Anis 40% 3,935

Shakir Rashid 30% 2,952
Hafiz Zahid Mahmood 30% 2,952

Total Equity 100% 9,839

INCOME STATEMENT:

INegCOME STATEMENT Amount '000' (Rs.)

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FEASIBILITY REPORT

For the Year egended 2020 2021 2022

Operatingeg Efficiency Assumed 90% 95% 100%

Salesegge 59,063 71,695 86,789

Raw Mategerial Consumed 36,790 44,634 54,003

Laborgeg 1,068 1,121 1,177

Manufacturing Expense 4,304 4,314 4,323

Depreciationeg 706 706 706

Cost of good Segold 42,868 50,775 60,210

Gross Profiteg 16,194 20,921 26,579

General andgeg Admin. Exp (Increase

Annually)eg 2% 484 494 504

Selling Exrgegpenses 1% 591 717 868

Total Orfperating Expenses 1,075 1,211 1,371

Operatfing Profit (EBIT) 15,120 19,710 25,207

Other Income 2,723 971 1,124

Amortrization of Pre-Production Exp

(Yearrs) 3 62 62 62

Interrest Expense 3,357 1,994 1,492

Earrrning Before Tax (EBT) 14,423 18,625 24,778

Prrovision for Tax 20% 2,885 3,725 4,956

Nret Profit after Interest & Taxes 11,539 14,900 19,822

rRetained Earning 11,539 14,900 19,822

r
r
rBALANCE SHEET:
r

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rBalance TABLE (Rs. in '000')

R Construction 2020 2021 2022

ASSETrS

Cashr 1,442 29,301 43,206 62,448

Marrrketable Securities 0 0 0 0

Accrounts Receivables 188 2,953 3,585 4,339

Rarw Material Inventory 5,840 0 0 0

Strores & Spares 1,305 3,679 4,463 5,400

Trotal Current Assets 8,774 35,934 51,255 72,188

Fixed Assets atr cost 16,222 16,222 15,515 14,809

Less: Accumulrated Depreciation 0 706 706 706

Net Fixed Assrets 16,222 15,515 14,809 14,103

Preliminary rrExpenses: 185

Total Assets: 25,180 51,449 66,064 86,291

LIABILITIErrS & EQUITY

Current Lriabilities

Accountrs Payable 0 3,679 4,463 5,400

Accruerrd Expenses 0 2,953 3,585 4,339

Taxesrr Payable 0 2,885 3,725 4,956

Bank Borrowings 584 3,679 4,463 5,400

Cur. rMat. of L T Debt 0 5,070 4,695 4,193

Toteral Current Liabilities: 584 18,266 20,932 24,288

Long-term Liabilities

Alelied Bank:

Outstanding Loan Principal 14,758 11,806 8,855 5,903

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Total Lowng-term Liab.: 14,758 11,806 8,855 5,903

Total Lwiabilities 15,342 30,072 29,786 30,192

EQUwITY

Paiwd-up Capital (Sponsors) 9,839 9,839 9,839 9,839

Retained Earning 0 11,539 26,439 46,261

Twotal Equity: 9,839 21,377 36,277 56,099

wTotal Liabilities & Equity: 25,180 51,449 66,064 86,291

CASH FLOW STATEwMENT:

wESTIMATED CASH FLOWS

(Rs. in 000)

w Construction Year 2020 2021 2022

SOURCESw

Operatingww Profit 0 15,120 19,710 25,207

Add Back: Depreciation 0 706 706 706

Amortizwation of Pre-
Production Expenses 0 62 62 62

Funds from Operations 0 15,888 20,478 25,975

Paid-uwp Capital (Sponsors) 9,839 0 0 0

Increwase in Current Liabilities 0 17,682 2,666 3,357

Incwrease in Bank Borrowings 584 3,095 784 937

Dwecrease in Current Assets 0 700 0 0

dOutstanding Loan Principal 14,758 0 0 0

TOTAL SOURCES 25,180 37,364 23,928 30,269

APPLICATION OF FUNDS

Investment in Fixed Assets: 16,222 0 0 0

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FEASIBILITY REPORT

Preliminary Exp 185 62 62 62

Financial Expenses 1,246 2,361 1,869 1,367

Repayment of :

Debt 0 2,952 2,952 2,952

Taxes 0 2,885 3,725 4,956

Increase in current Assets: 7,332 0 1,416 1,692

TOTAL 24,984 8,258 10,023 11,027

Financial Ratio

2020 2021 2022

Gross Marqgin 27.4% 29.2% 30.6%

Operating Margin 25.6% 27.5% 29.0%

Net Margia 19.5% 20.8% 22.8%

Current Raaio 1.97 2.45 2.97

Cash Ratiq 1.60 2.06 2.57

Debt/Equiaty Ratio 36% 20% 10%

IRR & PAY BACK PERIOD:

IRR 39%

Pay Back Period 2 Years Approximately

A portion of the presumptions were fundamental amid the

arrangement of Economical Declaration are given underneath:
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• Sale cost of chicks increment 16% annually

• Buying cost of chicks becoming greater 16% annually
• Buying cost of feed packs increment 16% annually
• Account Receivable every year 6% of offers
• Accrued costs every year 6% of offers
• Account payable every year 11% of material devoured
• Stores and Spares 11% of material expended
• Initial net working capital is for one Flock
• Flocks every year seven
• Legal and Brokerage 5% on expense of land
• Stamp obligation 2.1% on expense
• Registration cost of land 1.1%
• Transfer cost of land 1.1%
• Land is 2 Acre
• Cost of land per section of land 1,600,000 rupees
• Yearly charge rate 21%
• Devaluating price of Equipment, construction and Furniture are 16%, 6%
and 4% individually
• Pre-Production costs have been stepped down in 4 years
• Increment in payment 6% annually
• Executive costs expanded 2.1% yearly
• Controlling adequacy supposed in year first ,second, third are 91%, 94% ,
99%
• reasonable divide 40%

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• Bill parcel 60%

COMPERATIVE EFFECIENCY OF ENVIRONMENTAL CONTROL

(ECH) AND CONVENTIONAL OPEN-SIDE HOUSE:

The advanced pattern of condition control houses (ECH) in poultry generation has
acquired an extraordinary transformation poultry industry of Pakistan in the
ongoing years. This has understood an incredible obstacle of warmth worry in the
manner efficient business poultry generation. The ENVIRONMENTAL
CONTROL with evaporation cooling framework, giving passage ventilation,
giving the breeze chill impact has notably improved the grill creation framework.
The innovation of ECH is quickly getting to be famous among oven makers
because of its following noteworthy points of interest;

The ECH cuts down the temperature by ten degree to 15degreee centigrade when
contrasted with the customary coh for make it agreeable as cooler locales.
Controlled shed maintain same temperature nonstop giving helpful condition to
the grills evading change in the day and night temperature.

Because of serious warmth worry amid four long hot months grill generation is
halted in COH, resultantly just 5-6 runs were conceivable in areas in a year.
Nonetheless, in ECH 7 rushes are showcased with no pause.

ECH being finished shut framework has limited the rate of sicknesses, chopping
down the expense of antibody and medicine such that 3 rupees per chicken for 5
rupees per chicken in COH. Mortality in ECH has been diminished to 3%-4% when
contrasted with 11% in COH.

An individual oven in COH for the most part expends 3 to 3.3 kg feed to put on 1.5
kg weight mirroring its Feed Conversion Ratio (FCR) = 2 to 2.2. Though this figure
of FCR is improved to 1.8 in ECH.

Conclusion:

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The poultry ranch is an undertaking of animals division, in which, the day old chicks
(DOCs) are raised on high protein feed for a time of about a month and a half.
Chicken is the least expensive wellspring of creature protein accessible in the
nation. The time required for raising chickens is lesser than that for expansive
creatures. The utilization of white meat is expanding because of developing
wellbeing cognizance in the majority. Grill cultivating is a gainful endeavor because
of ceaseless expanding request of the meat in the market. In this pre-feasibility
study, all the calculations have been based on a flock size of 30,000. A total number
of seven flocks are estimated to be produced per year. There will be a lag time of
two weeks for cleaning and disinfection (e.g. fumigation) on the farm.
Birds are transported to the urban market and are sold to retailers or market-street
poultry shops. Few poultry meat processing plants process raw poultry meat into
dressed chicken, quality cuts or other forms to the market. The integrated
processing units distribute frozen and dressed chicken packed in whole or cut-ups
to the consumer through retail shops under their brand names.

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definition-examples.html.

Scribd. 2019. Control shed | Poultry | Poultry Farming. [ONLINE] Available at:
https://www.scribd.com/doc/32930956/Control-shed.

sbi. 2019. feasibility. [ONLINE] Available at: http://www.sbi.gos.pk/pdf/Feasibilty/livestock/Poultry-

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