COST OF PRODUCTION

Manpower / Staff Planning / Budgeting

Estimated
Working No of
S.No Title of Job Monthly
Hr/Day Post. Wages
1 Gate Keeper / Guard 12 Hrs 2 36,000 18,000 x 2
2 Admin Staf 8 Hrs 1 25,000
3 Rider / Dispatcher 8 Hrs 1 18,000
4 Accounts & Finance / HR 8 Hrs 2 50,000 25,000 x 2
5 Sales & Marketing 8 Hrs 2 60,000 30,000 x 2
6 Mechanical Engineer 8 Hrs 1 40,000
7 Chemist / Q.A 8 Hrs 1 40,000
8 Technician 8 Hrs 1 25,000
9 Peon 8 Hrs 1 17,000
10 Line Incharge 8 Hrs 1 35,000
11 Labor Hourly 10 230,400 (Labor/ Hour Rs.120), (8 Hour/Day), (24 Days/Month ) = 23,040
Total Monthly Expense (Estimated) 576,400

Note: Labor/manpower is subject to the production target and market demand.

 Cost of Equipment/Machinery
S.No Equipment Capacity Qty Price
1 Lead Oxide Ball Mill 1000 kg/hr 1 $39,300
2 Plate Grid Casting Machine 7-18 large/min 1 $35,000
3 Paste Mixing Machine 120 Panels/min 1 $20,000
4 Pasting Machine 70-140pcs/min 1 $35,000
5 Plate Curing & Drying Chamber 30 Panels/min 1 $10,000
6 Plate Cutting & Brushing 60-100 Big Panels/min 1 $10,000
7 Fined Tune Assembly Line
Cast on Stap Machine 600 units/hr 1 $40,000
Hole Punching Machine 40 units/hr 15 $2,500
Enveloping and Sacking Machine 600 units/hr 1 $50,000
8 Finishing Line
Washing Tunnel 480 units/hr 1 -
Plug Setting Machine
Acid Filling & Levelling Machine 180 units/hr 1 $10,000

Note: Quantity and final cost of machinery is subject to monthly and yearly production
target.
 Demand Forecast of Lead Acid Battery
By Automanufacturers
Actual Past Sales
Month 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
July 8,560 9,796 14,856 8,996 9,288 5,911 13,013 12,147 16,337 18,875
August 9,390 9,829 10,697 9,329 9,592 10,555 16,155 15,170 18,664 15,389
September 8,862 10,405 12,512 8,481 9,659 11,164 15,204 14,088 15,639 16,957
October 11,110 11,911 13,690 8,184 8,690 11,232 15,709 14,454 19,400 21,342
November 8,575 10,259 10,598 8,216 8,437 10,343 15,724 16,018 17,233 15,334
December 7,068 7,446 9,533 7,381 7,213 9,522 14,019 14,024 16,159 16,141
January 11,400 12,934 13,125 11,571 11,955 15,770 18,083 18,255 19,924 19,353
February 10,310 11,645 13,241 11,344 11,238 14,041 14,027 17,119 19,027 17,071
March 11,208 13,579 14,469 11,581 10,323 16,806 15,272 18,295 18,988 19,897
April 11,335 12,172 13,360 10,384 10,837 15,598 15,023 15,863 21,540 17,076
May 11,819 11,479 14,934 11,786 10,557 15,781 15,278 17,478 18,223 15,428
June 14,320 6,489 16,310 11,577 10,313 14,411 13,638 12,870 15,652 14,767
Total 125,967 129,955 159,337 120,843 120,116 153,149 183,161 187,798 218,804 209,649
Forecasted Future Sales
Month 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
July 10,968 12,613 14,505 15,956 17,551 19,306 21,237 22,299 23,414 24,585
August 11,569 13,304 15,300 16,830 18,513 20,364 22,401 23,521 24,697 25,932
September 11,006 12,657 14,555 16,011 17,612 19,373 21,311 22,376 23,495 24,670
October 12,580 14,467 16,637 18,301 20,131 22,144 24,358 25,576 26,855 28,198
November 11,340 13,041 14,997 16,497 18,147 19,961 21,957 23,055 24,208 25,418
December 11,112 12,779 14,696 16,165 17,782 19,560 21,516 22,592 23,721 24,907
January 13,577 15,614 17,956 19,751 21,726 23,899 26,289 27,603 28,983 30,433
February 12,132 13,952 16,045 17,649 19,414 21,355 23,491 24,665 25,899 27,194
March 13,087 15,050 17,308 19,038 20,942 23,036 25,340 26,607 27,937 29,334
April 12,523 14,401 16,562 18,218 20,040 22,044 24,248 25,460 26,733 28,070
May 11,622 13,365 15,370 16,907 18,598 20,458 22,503 23,629 24,810 26,050
June 9,800 11,270 12,961 14,257 15,682 17,250 18,975 19,924 20,920 21,966
Total 143,335 162,513 186,890 205,579 226,137 248,751 273,626 287,308 301,673 316,757
Note: The second table shows the forecasted sales of next 10 years. The demand has been increased by 15 % in the starting 3 years due to relaxations
given by ADP Policy 2016- 2022. After that growth rate decreases to 10% and finally reaching a low of 5% due to maturation in the market demand.

By Vehicle Owners
Year Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May
2019 495 540 536 515 510 521 533 503 516 506 512
2020* 507 520 519 519 518 518 517 516 516 515 515
2021* 583 598 597 596 596 595 595 594 593 593 592
2022* 671 687 687 686 685 684 684 683 682 682 681
2023* 772 790 790 789 788 787 786 785 785 784 783
2024* 849 869 869 868 867 866 865 864 863 862 861
2025* 934 956 955 954 953 952 951 950 949 948 947
2026* 1,027 1,052 1,051 1,050 1,049 1,048 1,047 1,045 1,044 1,043 1,042
2027* 1,078 1,105 1,103 1,102 1,101 1,100 1,099 1,098 1,097 1,095 1,094
2028* 1,132 1,160 1,159 1,157 1,156 1,155 1,154 1,153 1,151 1,150 1,149
2029* 1,189 1,218 1,217 1,215 1,214 1,213 1,211 1,210 1,209 1,208 1,206
Total 9,238 9,495 9,481 9,451 9,437 9,438 9,441 9,401 9,406 9,386 9,382

Note: The demand for battery by vehicle owners is subject to the economic conditions and individual's perception of an average battery life. And it shows the
same growth pattern as demand by automanufacturers.

*Forecasted
 Sales Forecast of 45 Amp Battery (in millions)
Month 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
July 439 505 580 638 702 772 849 892 937 983
August 463 532 612 673 741 815 896 941 988 1,037
September 440 506 582 640 704 775 852 895 940 987
October 503 579 665 732 805 886 974 1,023 1,074 1,128
November 454 522 600 660 726 798 878 922 968 1,017
December 444 511 588 647 711 782 861 904 949 996
January 543 625 718 790 869 956 1,052 1,104 1,159 1,217
February 485 558 642 706 777 854 940 987 1,036 1,088
March 523 602 692 762 838 921 1,014 1,064 1,117 1,173
April 501 576 662 729 802 882 970 1,018 1,069 1,123
May 465 535 615 676 744 818 900 945 992 1,042
June 392 451 518 570 627 690 759 797 837 879
Budgeted Sales (Units) 5,653 6,501 7,476 8,223 9,045 9,950 10,945 11,492 12,067 12,670
Per Unit Price (PKR) 4,500 5,040 5,645 6,322 7,081 7,931 8,882 9,948 11,142 12,479
Budgeted Sales (PKR) 25 33 42 52 64 79 97 114 134 158

Sales Forecast of 50 Amp Battery (in millions)

Month 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
July 110 126 145 160 176 193 212 223 234 246
August 116 133 153 168 185 204 224 235 247 259
September 110 127 146 160 176 194 213 224 235 247
October 126 145 166 183 201 221 244 256 269 282
November 113 130 150 165 181 200 220 231 242 254
December 111 128 147 162 178 196 215 226 237 249
January 136 156 180 198 217 239 263 276 290 304
February 121 140 160 176 194 214 235 247 259 272
March 131 151 173 190 209 230 253 266 279 293
April 125 144 166 182 200 220 242 255 267 281
May 116 134 154 169 186 205 225 236 248 261
June 98 113 130 143 157 173 190 199 209 220
Budgeted Sales (Units) 1,413 1,625 1,869 2,056 2,261 2,488 2,736 2,873 3,017 3,168
Per Unit Price (PKR) 5,500 6,160 6,899 7,727 8,654 9,693 10,856 12,159 13,618 15,252
Budgeted Sales (PKR) 8 10 13 16 20 24 30 35 41 48

Sales Forecast of 55 Amp Battery (in millions)

Month 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
July 219 252 290 319 351 386 425 446 468 492
August 231 266 306 337 370 407 448 470 494 519
September 220 253 291 320 352 387 426 448 470 493
October 252 289 333 366 403 443 487 512 537 564
November 227 261 300 330 363 399 439 461 484 508
December 222 256 294 323 356 391 430 452 474 498
January 272 312 359 395 435 478 526 552 580 609
February 243 279 321 353 388 427 470 493 518 544
March 262 301 346 381 419 461 507 532 559 587
April 250 288 331 364 401 441 485 509 535 561
May 232 267 307 338 372 409 450 473 496 521
June 196 225 259 285 314 345 380 398 418 439
Budgeted Sales (Units) 2,826 3,250 3,738 4,112 4,523 4,975 5,473 5,746 6,033 6,335
Per Unit Price (PKR) 6,000 6,720 7,526 8,430 9,441 10,574 11,843 13,264 14,856 16,638
Budgeted Sales (PKR) 17 22 28 35 43 53 65 76 90 105

Note: The forecasted sales is estimated to be 10% of the overall demand in each product category.
 Jun Total
524 6,207
514 6,194
591 7,123
680 8,192
782 9,420
860 10,363
946 11,399
1,041 12,539
1,093 13,166
1,148 13,824
1,205 14,515
9,385 112,941
 Production Budget

For 45 Amp Battery

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Budgeted Sales Unit 5,653 6,501 7,476 8,223 9,045 9,950 10,945 11,492 12,067 12,670 14,571
Add: Desired Ending Inventory 520 598 658 724 796 876 919 965 1,014 1,166
Total Need 6,173 7,099 8,133 8,947 9,841 10,826 11,864 12,458 13,081 13,836
Less: Beginning Inventory 0 520 598 658 724 796 876 919 965 1,014
Total Production Needed (Units) 6,173 6,579 7,535 8,289 9,118 10,030 10,989 11,538 12,115 12,822

For 50 Amp Battery

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Budgeted Sales Unit 1,413 1,625 1,869 2,056 2,261 2,488 2,736 2,873 3,017 3,168 3,643
Add: Desired Ending Inventory 130 150 164 181 199 219 230 241 253 291
Total Need 1,543 1,775 2,033 2,237 2,460 2,706 2,966 3,114 3,270 3,459
Less: Beginning Inventory 0 130 150 164 181 199 219 230 241 253
Total Production Needed (Units) 1,543 1,645 1,884 2,072 2,279 2,507 2,747 2,885 3,029 3,206

For 55 Amp Battery

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Budgeted Sales Unit 2,826 3,250 3,738 4,112 4,523 4,975 5,473 5,746 6,033 6,335 7,285
Add: Desired Ending Inventory 260 299 329 362 398 438 460 483 507 583
Total Need 3,086 3,549 4,067 4,473 4,921 5,413 5,932 6,229 6,540 6,918
Less: Beginning Inventory 0 260 299 329 362 398 438 460 483 507
Total Production Needed (Units) 3,086 3,289 3,768 4,144 4,559 5,015 5,494 5,769 6,058 6,411

Note: The desired ending inventory is kept at 8% of next month's budgeted sales.
 Production Budget

For 45 Amp Battery

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Budgeted Sales Unit 5,653 6,501 7,476 8,223 9,045 9,950 10,945 11,492 12,067 12,670
Add: Desired Ending Inventory 520 598 658 724 796 876 919 965 1,014 1,166
Total Need 6,173 7,099 8,133 8,947 9,841 10,826 11,864 12,458 13,081 13,836
Less: Beginning Inventory 0 520 598 658 724 796 876 919 965 1,014
Total Production Needed (Units) 6,173 6,579 7,535 8,289 9,118 10,030 10,989 11,538 12,115 12,822
Per Unit Cost
Total Raw Material Needed (PKR) - - - - - - - - - -

For 50 Amp Battery

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Budgeted Sales Unit 1,413 1,625 1,869 2,056 2,261 2,488 2,736 2,873 3,017 3,168
Add: Desired Ending Inventory 130 150 164 181 199 219 230 241 253 291
Total Need 1,543 1,775 2,033 2,237 2,460 2,706 2,966 3,114 3,270 3,459
Less: Beginning Inventory 0 130 150 164 181 199 219 230 241 253
Total Production Needed (Units) 1,543 1,645 1,884 2,072 2,279 2,507 2,747 2,885 3,029 3,206
Per Unit Cost
Total Raw Material Needed (PKR) - - - - - - - - - -

For 55 Amp Battery

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Budgeted Sales Unit 2,826 3,250 3,738 4,112 4,523 4,975 5,473 5,746 6,033 6,335
Add: Desired Ending Inventory 260 299 329 362 398 438 460 483 507 583
Total Need 3,086 3,549 4,067 4,473 4,921 5,413 5,932 6,229 6,540 6,918
Less: Beginning Inventory 0 260 299 329 362 398 438 460 483 507
Total Production Needed (Units) 3,086 3,289 3,768 4,144 4,559 5,015 5,494 5,769 6,058 6,411
Per Unit Cost
Total Raw Material Needed (PKR) - - - - - - - - - -
Note: The desired ending inventory is kept at 8% of next month's budgeted sales.