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Pre-Feasibility Study

Sausages Production Unit

Small and Medium Enterprise Development Authority
Government of Pakistan
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April, 2010

Pre-feasibility Study Sausages Production unit

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The purpose and scope of this information memorandum is to introduce the subject matter and
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document is based on data/information gathered from various sources and is based on certain
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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. SMEDA does not assume
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DOCUMENT CONTROL
Document No. PREF-21
Revision -
Prepared by SMEDA-Balochistan
Issued by Library Officer
Issue Date 27 April 2010

1

BAL-PREF-/ 2009

..8 PROJECT INVESTMENT ............................................ 13 5............................................................ 12 4..........................................................................................10 KEY SUCCESS FACTORS ...... 11 3.................................................................2 PROCESS FLOW ..... 18 6......2.................2.................2........................................................................................................................................................ 14 5............2.....................................7 PROPOSED PRODUCT MIX .................................................................................. 8 2................1 TARGET MARKET ......................................................................................................................................... LAND & BUILDING REQUIREMENT................................... 14 5. 8 2...................................2 CURRENT DOMESTIC INDUSTRY ............................................................................................................................................................................................... 13 5....................................................................................4 Meat Chopping........................................ 15 5..................................... 13 5..... 19 7......................................................... 14 5........................................................................................................... 15 5.................................................................................5 PROPOSED BUSINESS LEGAL STATUS ....................... 5 2 PROJECT PROFILE...............................6 Wrapping ..2 Demand.....................................................................................1 World Top Ten Fast Food Consumption Countries.........................7 Storage and Dispatch Section ............. 19 2 BAL-PREF-/ 2009 ..............................................9 PROPOSED LOCATION ....................2 PRICING STRATEGY ......................................................... 7 2.............................................................................................1....................................................................................................................................................................................................... 9 3...................1......................... 15 5...................1 GLOBAL SCENARIO ..................................................................1 Receiving and chilling ........ 15 5............................................................................................................ 12 4 MARKETING STRATEGY ................................................1..........................1..........................................................................3 Building materials............................2 PROJECT BRIEF............. 8 3 CURRENT INDUSTRY STRUCTURE ............................ 13 5............................................................................................................2 Location ....................................................................6 PROJECT CAPACITY ................................................. 8 2........................................................................................ 6 2...............................................................................2 Cutting and Trimming Section.3 OPPORTUNITY RATIONALE ...............................................................................................................................................................................................................................1 GENERAL REQUIREMENT FOR ESTABLISHING A SAUSAGE PLANT ................................................... 12 4.......... 16 6 PROJECT REQUIREMENTS ....................................................................................................................................................4 MARKET ENTRY TIMING .....................................................3 Non Meat ingredients Section .................................Pre-feasibility Study Sausages Production unit TABLE OF CONTENTS 1 PURPOSE OF THE DOCUMENT................................. 11 3.............. 18 6...................................2............................................ 10 3........... FURNITURE AND EQUIPMENT MAINTENANCE..................................................5 Smoking and Cooking Section ...... Floors and walls......2........................................2.................................... 9 3... 6 2......................................... 12 5 PRODUCTION UNIT LAYOUT............................................... Mixing and Stuffing Section..........................................................2.................................................. 5 2..................................................................................................... 19 7.......................................................................................................................................... 8 2......................................................................................1.........................................................................................2......................................................................2..1.................................................................... 15 5..................... 15 5........................... 18 6..........1 Facts of Pakistan Market ................. 5 2......................................................................................................1 PROJECT BACKGROUND .............................................................. 8 2...........................3 HUMAN RESOURCE REQUIREMENT ..........1 EQUIPMENT DETAILS ................ 19 7....................2..................2 FURNITURE & FIXTURE ..................... 11 3...........................................................................................................3 Future Growth..........1 Commercial Consideration .................................4 Sanitation ............................ VEHICLE REQUIREMENT .................................

.................................. KEY ASSUMPTIONS.........................................3............................................................. 20 8.............................................................................4............................ CAPITAL STRUCTURE OF THE PROJECT ........... TOTAL CAPITAL REQUIREMENT ................................. 20 7..................Pre-feasibility Study Sausages Production unit 7.............................. 21 3 BAL-PREF-/ 2009 .......

Pre-feasibility studies and business plan development are some of the services provided to enhance the capacity of individual SMEs to exploit viable business opportunities in a better way. urban transport and dairy. 1 For more information on services offered by SMEDA.1 Since its inception in October 1998. SMEDA provides business guidance through its help desk services as well as development of project specific documents. gems and jewelry. technology up gradation and human resource development.pk 4 BAL-PREF-/ 2009 . textiles. SMEDA had adopted a sectoral SME development approach. marine fisheries. The all-encompassing sectoral development strategy involved recommending changes in the regulatory environment by taking into consideration other important aspects including financial aspects. In order to facilitate these investors. niche marketing. SMEDA has so far successfully formulated strategies for sectors including. These services include identification of viable business opportunities for potential SME investors.org. fruits and vegetables. Whereas the task of SME development at a broader scale still requires more coverage and enhanced reach in terms of SMEDA’s areas of operation. In depth research was conducted and comprehensive development plans were formulated after identification of impediments and retardants. surgical instruments. A few priority sectors were selected on the criterion of SME presence. Along with the sectoral focus a broad spectrum of business development services is also offered to the SMEs by SMEDA. marble and granite. This document is in the continuation of this effort to enable potential investors to make well- informed investment decisions. These documents consist of information required to make well-researched investment decisions. please visit our website: www. leather and footwear.Pre-feasibility Study Sausages Production unit Introduction to SMEDA The Small and Medium Enterprise Development Authority (SMEDA) was established with the objective to provide fresh impetus to the economy through the launch of an aggressive SME support program.smeda.

Gyulai kolbász. Italian sausage and breakfast sausage. Moreover when it comes to cooking. Sausages are ready-to-serve products. usually smoked and slightly cooked  Moreover sausages are eaten in raw or prickle appearance etc. Lahore.1 Project Background Finely chopped and seasoned meat mixed with different ingredients. shape. Peshawar and Karachi etc. sausages can be prepared as follows  Fully cooked. meaning something that has been salted. 2. subjected to final cooking after stuffing. Sausages are made from cured or uncured. 2 PROJECT PROFILE The project is about establishing a Sausages Production unit in the adjoining areas of major cities like Quetta. curing technique.Pre-feasibility Study Sausages Production unit 1 PURPOSE OF THE DOCUMENT The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. Examples include salami. their shelf life is increased by heating due to partial reduction of their moisture content.  Emulsion-type sausages. finance and business management. fatty tissue. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective. start-up. with or without additional smoking. additives. water and seasonings. kielbasa and Mortadella. Droë wors. Examples include Boerewors. neither cured. usually stuffed into a prepared animal intestine or other casing and cooked or cured are named as sausages. Such a mixture is usually packed into a casing (animal intestine). An example of fully cooked sausages is hot dog. they are usually cooked before consumption.  Smoked Cooked.  Fresh. Centuries ago what started out simply as a means of using and preserving all of the animal trimmings has turned into the art of sausage-making. smoked. non fermented products. The word sausage derives from the Latin salsisium. Smoked precooked sausages are mostly cured. the document/study covers various aspects of project concept development. Fresh sausages are made from fresh meats which are. They are heated by the consumer himself before serving. they are divided into semidry and dry sausages. i. sausage is meat mixed with fat. Simply saying. Sausages can differ dramatically depending on their ingredients. as a rule. fermented nor cooked. preservatives and sometimes fillers. level of dryness and freshness. Sucuk. and summer sausage.  Dry sausages (Cured or Fermented sausages). salt and other seasonings. fermented and often smoked meats but they are not heat processed in any way. Fresh sausages must be kept under refrigeration prior to eating. Landjäger. and production.e. Sausages comprises of ready-to-eat products made from comminuted and well-homogenized cured meats. 5 BAL-PREF-/ 2009 . basically made from already cooked fresh or exceptionally cured raw materials.

Pre-feasibility Study Sausages Production unit Sausages are prepared & eaten around the world. 2. The art furnished even more in the last decades when it got liaison with modern technology for commercial scale production.3 Opportunity Rationale Livestock plays an important role in the economy of Pakistan in terms of income and employment. blood. standardize packaging.  Technological improvement in live stock production and processing in developed countries which can be replicated in the developing countries. the frankfurter in Frankfurt (Germany). Initially the project is proposed to attract domestic customers but after its maturity. Peshawar and Karachi etc. The rapidly growing demand for livestock products reinforces the value of livestock as part of household asset portfolios and its potential to reduce poverty. The project would serve as a focal point for efficient utilization of natural resources while on the same time it would be facilitating consumer that desire to eat fast food any time they want. 6 BAL-PREF-/ 2009 . In result sausage become one of the major components of food industry. 2. In addition to above. The main feature of the project would include sausages prepared according to international quality standards. A Sausages production facility located in any of the above stated areas can create a strong market in the country. etc. international customers could also be easily targeted. Presently there are more than 1500 different types of sausages prepared all over the world. On the other hand it would generate employment for the local inhabitants and more over would possibly generate cash inflow for the country as well. it has become an important aspect of modern age but history of sausage making is quite old. skin. Currently the project is being designed / proposed for adjoining areas of major cities but the same can be proposed for several other cities which can fulfill input and logistic requirements of the proposed project. The project would serve as facility to utilize abundant raw material available in the country usually ends up as waste. Whereas value addition will be done in shape of quality processing. meat or mixture of both. and final product with proper preservation. the bologna in Bologna (Italy) and the genoa salami in Genoa (Italy). Lahore. It enables poor and landless farmers to earn income using common property rangelands. The Product mix may include different varieties of vegetable. another very important key success factor of the proposed project is that the project would be focusing on preparing “HALAL” sausages according to Islamic values. Sausages prepared at that time were usually plain and unspiced. Art of modern sausages begin in the Middle Ages when people starts to add various meat & spice in sausages for flavoring.e.2 Project Brief The proposed project is about establishing a sausages production unit in the adjoining areas of major cities like Quetta. Opportunities in Livestock Sector  Swift increases in consumption/demand of live stock products. Whereas it can also be exported if produced according to international standards and compliance. Many of the sausages that became famous were named for the localities where they were first made i.  Increasing demand of byproducts. It begins at the times of ancient Greeks and Romans. especially the large resources of casings.

4 Market Entry Timing Sausages aren’t seasonal products. M. With these limited facilities export of raw casing has increased from 11. pork product or lard to capture Muslim population.426 Economic Survey 2008-09 There2 are about 37 registered and non-registered animal casings processing firms/facilities in Pakistan. based on Halaal ingredients. while at the same time it must include all features that must fulfill the international quality standards for exports to capitalize the huge market potential in western countries as well.Pre-feasibility Study Sausages Production unit There is no doubt about the rich potential associated with country production of animal meat and byproducts but deficiency exist only in its usage. whereas the discrepancy prevails only at the entrepreneurial side. There is a strong need of a facility that can utilize our potential resources with in the boundary of our homeland. Nazri "Prospects of Manufacturing Halal Sausages in Cans".618 Edible Offal `` 325 Fat `` 221. they are consumed all over the world throughout the year. 2 Pre feasibility report Animal casing processing unit SMEDA 3 ITC calculations based on COMTRADE statistics 4 Article: M. and it is still on a increasing trend3. are also available in almost every season but found more abundantly during the month of Eid-ul-Azha. If this sector is explored properly it can provide a base point of heavy cash inflows & employment generation for the country. Government of Pakistan and European Union at Brussels for the processing and export of animal casings. that can process & pack these valuable resources. There is no doubt that Pakistan economy possesses all the positive aspects that any business require to be successful. The registered firms are those which are duly approved by the Ministry of Food Agriculture and Livestock. Moreover statistics reveals that world trade of Muslim Halal food worth more than $81 billion4 annually and is growing rapidly due to emergence of new markets and population growth. In contrast to such healthy demand. An overview of the annual production of animal meat & byproduct of Pakistan is described in the following table 1. Sausages production unit can provide a solid platform for above stated purpose. There is a huge potential for a facility or unit.2000 7 BAL-PREF-/ 2009 .23 million USD in year 2003 to 14. raw material requirements of proposed project such as meat and casings etc. It has strong demand both at domestic & international level.24 million USD in year 2007. In Pakistan. It must not contain any ham. Sausages production facility should be started on commercial scale. backed with sufficient availability of natural resources and economical labor. Table 1: Total Production of Animal byproducts in Pakistan ITEMS UNITS 2008-09 Meat 000 Tons 2. Hence it provides round the year business for sausage producers. Every year tons of animal meat and its byproducts are wasted or sold at minimum price with in and outside the country. 2.56 Casings 000 No`s 13.

55 kg) each. use of proper marketing techniques is important. Lahore. However.Pre-feasibility Study Sausages Production unit The project is proposed to become operational at the end of Eid-ul-Azaha to acquire to raw material more economically as compare to other seasons. Peshawar & Karachi etc. More convenient availability of raw material and good transportation facility make a location ideal for the proposed project. In addition proposed product mix would consist of different varieties of sausages prepared of meat. In choosing location.22.  Trained personnel would increase the chances of success for the project.  Location plays the most important role for such a project. such a project could also be established in other areas with high livestock potential after careful analysis of market demand and project viability.718 Working Capital 3.09 M and working capital requirement of 3.9 Proposed Location The proposed location for the project could be in any of the adjoining areas of major cities in Pakistan such as Quetta.5 Proposed Business Legal Status The proposed legal structure of the business entity is either sole proprietorship or partnership.096.179.8 Project Investment The total investment required for this project is Rs. 2. Table 2: Project Investment Description Amount (Rs) Total Fixed Cost 19.864 2. 2. preferences should be given to site with adequate availability of infrastructure.17 M.275.19. raw material and comparatively high traffic rate. Sausages prepared will be be 100% Halal in order to attract Muslim customers across globe.27 M. 8 BAL-PREF-/ 2009 . Hub.6 Project Capacity The proposed daily capacity of the plant would be around 1800 packs of finished product of 550 gms (0.  Awareness among the general people would attract more customers therefore. Although selection totally depends upon the choice of the entrepreneur but proposed prefeasibility is based on a Sole Proprietorship.146 Total 22. The investment mainly covers capital costs of Rs.10 Key Success Factors Prior to establishing a sausages production unit.7 Proposed Product Mix The proposed product mix for the stated project is sausages that would be prepared & packed according to the market standards. vegetable or combination of both. 2. 2. 2. there are critical points that must be kept in mind for success.

1 Global Scenario The liaison between traditional sausages making art & modern industrial processing has led to commercial sausages advancement of modern era. In Britain 90% of British households use sausages. According to figures for 20086.com/documents/FASTFACTSONSAUSAGES.7 billion in sales. Sausages also provide significant amounts of vitamins and minerals.8% in 2006 to reach a value of $102. Though the process has gone through many metamorphoses but the rationale behind today's sausage production and traditional practices remains the same. As sausage being one of the major parts of fast food is also expected to increase in the same fashion. international customers could also be attracted. an increase of 22. dinner sausage sales increased 2 percent. According to a report7 the global fast food market grew by 4.  Priority would be given to Halal Production in order to attract Muslim customer not only from Pakistan but also from abroad. At present sausages is one of the most known fast food types. In accordance with statistics provided by AMIKO (Russian consultancy firm). namely.2% since 2006. with more than $1. maintenance and repair of body tissue. at $9 million in sales on annual basis. and United States with more than 200. obtaining a product of high taste value and longer shelf life. Upon its maturity. It is for the reason that sausages are prolific & popular world wide for thousands of years. the global fast food market is forecast to have a value of $125. Russian sausage consumer expenditures are also very high as Russian sausage market amounted to US$21 billion in retail prices in 2006 only and still on the increasing trend.com/reports/c71910 9 BAL-PREF-/ 2009 . In 2011. Where as each household spends an average of £22. Britain with over 470. containing all the essential amino acids necessary for growth. by Information Resources Inc 7 http://www.Pre-feasibility Study Sausages Production unit  Highway and International Airport availability are vital for projects as they provide perfect connectivity of the proposed location. Russian sausage market consumes 60% of the total meat market every year.  Target customers should initially be the domestic customers. Sausages are an excellent source of high quality protein.researchandmarkets. prepared & eaten all over the world.4 billion. Craze of sausage consumption is not limited to Britain only.7 billion. there are more than 470 recipes and flavors for sausages in Britain only. It is prepared in many different varieties with Germany boasting over 1200 types. Beside above two. USA market is also characterized as one of the high sausage consumption countries. 5 http://www. In accordance with the year 2009 statistics provided by British Sausages week5. While Breakfast sausage sales remained relatively steady. 3 CURRENT INDUSTRY STRUCTURE 3.51 per year on sausages while five million Britons eat sausages every day.  Availability of raw material at low prices would be another key success factor.pdf 6 Refrigerated dinner sausage and breakfast sausage figures based on data collected during the calendar year of 2008.britishsausageweek.

South Korea has a higher per capita consumption than several relatively wealthy European countries.Pre-feasibility Study Sausages Production unit Sausages’ eating is not limited as road site snack food only.1 World Top Ten Fast Food Consumption Countries According to the research carried out by Euromonitor International8. USA per capita fast food expenditures stood at $566 in 2005. Surprisingly. UK and Australia with $456. parties and even by the households. Fig. but it is consumed in events. with $239 spent on fast food in 2005.euromonitor. they are also popular in Muslim’s countries as well. Sausages are mainly eaten in evening time but are also consumed at other times as in breakfast & lunch etc. Following figure presents the world top ten fast food consumption countries in ascending order. Lunch times. especially in Muslim countries if Halal sausages are prepared and delivered to them. There is a huge market for the sausages in all over the world. Switzerland and Sweden. The consumption Sausages craze is not limited to western countries only but. This high level of per capita fast food consumption demonstrates the importance of fast food as a lifestyle in these countries. among the top ten per capita fast food consumption countries of world USA has the lead. Germany. $390 and $363 respectively.com/Who_eats_the_most_fast_food 10 BAL-PREF-/ 2009 . followed by Canada.1. 3. namely Austria. 1: Per capital expenditure on fast food – top 10 8 http://www.

Fig 2: Consumer food expenditure trend in Pakistan Consumer Food Expenditure Trend 50000 40000 30000 20000 10000 0 2005 2006 2007 2008 2009 3. The overview of Pakistan fast food industry is described below: 3.1 Facts of Pakistan Market According to the statistics provided by World Bank report “Consumer Asia9”. sausages are characterized as a part of fast food industry. The graphical representation of the above stated figures on consumer expenditure is represented in the following figure.334.681.1 on food (US$ million) Source: World Bank Report – Consumer Asia It is obvious from the table that both consumer expenditure (on food).64 6.2.08 January 1st ('000) Consumer expenditure 33.352.693. Hence it provides an opportunity for investors to capitalize such a remarkable potential. Pakistan made up a strong market for the fast food industry.881.18 6. According to data a promising potential does exist for the sausages industry.374.209. along with Population growth is on increasing trend in Pakistan.2 46.333.2 Demand Pakistan has a total population of 169 million with a growing middle-class.2 47. Approximately one- quarter of the total population represents the potential market for processed and packaged foods. Table 3 present trends of food consumption for the last 5 years in Pakistan.511. Table 3: Pakistan statistics Indicator 2005 2006 2007 2008 2009 Population: 6.euromonitor.59 6.com/factfile. 9 www. 2 Current Domestic Industry Among industry view point.aspx?country=PK 11 BAL-PREF-/ 2009 .2.Pre-feasibility Study Sausages Production unit 3.46 6.1 42.5 37.158.

to create market awareness & additional revenue. The overall sausage selling market is composed of few restaurants situated only in big cities like Islamabad. Evidence of the viability of the packaged and processed food market can be seen in the success of international fast food chains in Pakistan such as McDonald’s. Pizza Express.austrade. 25% in year 2008) to full fill the local demand.Friday. the pricing strategy should be appealing enough to give its customers the value of their spending. rising preference towards fast food & exposure to international fast food through media etc. At the same time. Karachi. Evidences proved profitability of fast food industry but yet this market is dominated by some bunch of international food suppliers.gov. and traveling has increased fast food desirability among Pakistani consumers.Pre-feasibility Study Sausages Production unit Moreover increased exposure to international food products and brands via cable and satellite TV. Consumer Price Index has shown a remarkable increase over the last few years. KFC.aspx 11 Daily Times . However there are insufficient sausage production facilities existing in Pakistan to capitalize the abundant resources & potential demand. Moreover to attract more customers. the charges should neither be very high nor very low to avoid negative impression in the market. foreign market can also be targeted for the proposed product mix.2. additionally office workers. The market has been growing at an annual rate of 10 per cent10. All the fast food lovers whether domestic or international could be the major consumer base for this project.3 Future Growth According to the figures released by Federal Bureau of Statistics.au/Food-to-Pakistan/default. After 10 http://www.39 percent in February 2007 only with food prices contributed the largest share with an increase of 9. As the project passes the growth stage mark. can also be targeted. Pakistan processed food market is valued at approximately $2 billion. Pizza Hut. has already created a healthy market for the fast food items. Gap exists only from supplier’s side that can be fulfilled by establishing such proposed projects. hotels & restaurants etc. and some International food chains like McDonalds and K&N’s etc.9 percent11 and the same is forecasted in the upcoming years. 3. Initially main focus would be given to domestic market while preferring young generation with a craze for fast food. 2 Pricing Strategy Since the project has a very wide range of customer class. 2007 12 BAL-PREF-/ 2009 . In addition factors like increasing life standard. retailers. Peshawar & Quetta etc. whereas significant percentage is imported every year (i. March 16. It has increased to 7.e. There is a need to build up a fast food production facility like sausages manufacturing units in Pakistan that can prepare and sell sausages at reasonable price within the market. Lahore. Sausages being very popular in Pakistan especially among the youth but unfortunately not sold as per demand requirement. 4. Subway and Dunkin’ Donuts. 1 Target Customers The target market of the project is very wide in nature. sausage stands or outlets can be established in major super markets. 4 MARKETING STRATEGY 4.

5.e. it is proposed that the customers should be charged somewhere between Rs. also including adequate arrangement of electric power sources.1. Certain modifications are required according to geographical area. Hence there are some points which must be considered before undertaking construction of sausages manufacturing plant.1. This goal can be achieved through continued development of new value-added sausage products and by taking advantage of present processing equipment and knowledge. The quality aspects of a new product determine the product's continued success. 275 – 500 on the final product depending on its size.1 Commercial Consideration Economic and marketing considerations are vitally important in determining the most suitable location for a sausage manufacturing plant. a plan to overcome possible defects is recommended. 1 General Requirement for establishing a Sausage Plant Simplicity of design and costs are of particular importance for sausage plants. It is of paramount importance to draw up a plan giving the greatest efficiency to the entire sausage plant. The sausage plant should be located in an area free from objectionable odors. Finally it is advisable to build a sausage plant large enough to deal with the periodic marketing peaks i. Whenever the construction of a new sausage plant is envisaged. experience and new knowledge is permanently present in all segments of the sausage manufacturing field. 5. dust etc. Versatility in the usual sausage processing line can create not only one but several new products for the market. The first and the most important consideration is of efficient meat supply for the proposed plant. Attention should be given to an adequate clean water supply. Simply stated. followed by the distribution of sausage products to consumers. 5. 5 PRODUCTION UNIT LAYOUT A need for development of innovative and unique high quality sausage products using the greatest possible efficiency. The custom fit of a new sausage formula into sausage plant production often requires modification of the original formula. etc. a simple grind-mix-grind system with a stuffer not only produces a fresh sausage but also a variety of other products. as visually poor-looking products do not attract customers.2 Location The site of a sausage plant should be selected on the basis of certain factors. Secondly. such as hot or mild seasoning or the product's physical appearance. The selected place should be completely separated from any other plant or building. For example. smoke. discrepancies between the retail price paid for meat & other animal byproducts and the price for locally sold sausages should be determined on the basis of commercial research. A new sausage product must be delicious in flavor and exhibit a desirable texture. 13 BAL-PREF-/ 2009 . excellent quality in new sausage items is a must and this can be achieved without high-cost materials by utilizing modern technology for the production of quality sausages. A value-added sausage utilizes one or more raw material available at economical rate in combination with other ingredients to create a sausage which can be sold at a higher price. Plant must have the capacity to easily extend to hours of processing during peak season.Pre-feasibility Study Sausages Production unit carefully analyzing the current fast food market in industry.

5. amount and structure of production.  The slope (usually of 1. Basically a sausage plant is composed of the following sections:  Receiving and chilling  Cutting and trimming  Non-meat ingredients  Meat chopping and mixing  Smoking and cooking  Wrapping and dispatch sections. In order to carry out proper construction of sausages production plant following points must be considered  A hard.8–2. Tile walls.0 percent) of floors to drainage inlets must enable rapid disposal of effluent. the methods selected etc. Layouts of these sections can be combined in varying ways depending on the size and shape of space available. 5. smooth and impervious floor must be constructed in a fashion that it resist slip ness. The whole structure must suit local climatic conditions. won’t absorb moisture and can be readily cleaned. hard-surfaced brick or concrete floors. smooth flow of operations. 5.  Ceiling surfaces of rooms. space of a sausage plant must be compact and designed for economical use in relation to the capital and operating costs. strict sanitary methods and conditions must be employed through out the entire process for quality assurance.Pre-feasibility Study Sausages Production unit Moreover in planning a sausage plant. where wet operations are conducted. Walls should be covered and coated with lead-free paint or tiled at least to a height of 1. 14 BAL-PREF-/ 2009 . Simply stating.2 Process Flow A proper integration of section layouts is required if maximum efficiency. carefully sloped to drains.3 Building materials.1. Sanitation is also essential in a well-run sausage producing plant. Floors and walls In general. All effluent drainage lines must have a sufficient inside diameter of at least 10 cm with the fat traps incorporated in the drainage system.  The surfaces of interior walls must be impervious. consideration must be given to a location or an arrangement of buildings that will permit future expansion. galvanized metal tracks and barrels are an integral part of a good sanitation program. smooth and made of non-absorbent materials. reduced labor and managerial control are to be achieved. stainless steel table tops. The hygienic maintenance of equipment and the plant as a whole is a fundamental factor for production efficiency and keeping quality of finished products.8 m. Drainage lines from toilets and urinals should be constructed separately. 1. should be smooth and flat and of sufficient height. 4 Sani t at i on A well-designed sausage plant cannot be attained through buildings alone.

2. should be so designed that the meat moves from the receiving door into the processing section with in minimum time. adjacent to the chopping and stuffing area. 3. cleavers and other tools. The receiving section.3 Non Meat ingredients Section This section needs a separate.2.5 Smoking and Cooking Section The principles applicable to the layout of this section are:  The smokehouse should be built so that its fireplace opens externally.2.6 Wrapping The wrapping for the proposed project is to be outsourced in order to achieve economical rates. mixer.2. humidity and provided with tables.2 Cutting and Trimming Section This section. 15 BAL-PREF-/ 2009 . 5. There should be sufficient room for free movement and safe use of knives. Access to the chiller and its connection with the cutting and trimming area must be easy.Pre-feasibility Study Sausages Production unit The details of the above is described as below 5. 5. The temperature of the chiller should be 0° to 4°C. Mixing and Stuffing Section This section includes the space in which the meat is processed. 5. A room temperature of 13°C is considered to be suitable good practice. stuffer and working tables. The chiller must have separate area with suitable facilities for holding by-products and meat. The area around the entrance door is more suitable for the respective section. containers etc 5. cutter. includes the space occupied by cutting and trimming tables.2.1 Receiving and chilling The receiving area is the place where all raw materials arrived are checked and their weight determined by means of a scale. casings. control and preparation of spices. protected from insects. dry and cool area. scales & other facilities for storage. mixed with other ingredients and stuffed into casings. The per unit cost of packaging for final product would be Rs. The selection of type and size of chiller (cooling device) depends largely upon the capacity and character of processing conducted.  The smoking and cooking section should be well isolated from other areas with adequate ventilation. This section is occupied by basic processing equipment such as a grinder. effort and without any possible interference of operations & contact of the meat with other raw materials.4 Meat Chopping. The humidity should be low enough to give a dew point close to that of the surface temperature of the product. even in the smallest sausage plant. Whereas good air and smoke circulation in the smokehouse is essential and a thermometer for checking the temperature is highly desirable.2. 5. It is extremely important that all equipment is designed for easy cleaning.

Whereas the overall process flow is shown in fig 3. Special attention should be devoted to the arrangement of an adequate storage area.Pre-feasibility Study Sausages Production unit 5.2. 2. This section may be located in an area outside the main building but in many plants it is established in another section at the end of the process flow. 7 Storage and Dispatch Section The type and size of this section is determined not only by the number and structure of finished products but mainly by the method of marketing.1: Layout of sausage plant Receiving & Cutting & Non-Meat Chilling Trimming Ingredients Wrapping & Smoking & Meat Chopping Dispatch Section & Mixing Cooking 16 BAL-PREF-/ 2009 . Fig 3. A specific area would be allocated for Cold storage facility. The comprehensive layout of the sausages manufacturing plant is depicted be the following figure 3.1.

2 PROCESS FLOW CHART Receiving Raw Meat Receiving of Non Meat Storage Raw Meat Ingredients (Refrigerated) Storage Non Temporary Frozen Meat Meat Ingredients Preparation of Raw Weighing of Meat Non Meat Ingredients Combine ingredients / Processing Rework Stuffing Cooking / Smoking Storage Casings / Packaging Chilling Materials Portioning Packaging / Labeling Finished Product Storage 17 BAL-PREF-/ 2009 . Pre-feasibility Study Sausages Production unit Fig 3.

000 Carpeting 100.000 2.620 Smoking Stick 1 3 255 Generators 1 350.371.1. 50x 50x 15) -30 C 1 2.605 Smoking Trolley 1 572 48.000 Total 45.1: Equipment & Machinery Details Description No Price/Unit (Dollar-$) Total Price (PKR) Assuming $1=85PKR Cold storage Capacity ( 250 T .529 639.000 Air conditioners (1.2: Office Equipment Deta1ils Other Equipment Details Qty Cost/Unit Total Cost (PKR) Computer 1 25.251.620 Table 6.000 Total 368.429 4.339.000 Meat & Bone Separator 1 51. 2 Furniture & fixture Description Total Amount (PKR) Furniture 244.1.000 18 BAL-PREF-/ 2009 .913 1.465 Cutting & Mixing Machine 1 14.000 12.965 Smoke House 1 16.000 Printers 1 6.000 Telephone Sets 2 1000X2=1.000 25.000 6.000 Total 10. 1 Equipment Details The details of the different machinery and equipment required for the project are given as below: Table 6.437.710 Vacuumed Filling Machine 1 7.000 Fax 1 12.000 6.240.726 1.5 Ton Window) 24. Pre-feasibility Study Sausages Production unit 6 PROJECT REQUIREMENTS 6.

7.000 7. however.400.000 section Processing 1.2: Human Resource Requirement Details Description – HR Requirements Nos Salary per month Salary per year Manager 1 25.000 180.000 Office Building (12*14 per room) 1. 19 BAL-PREF-/ 2009 .000. 2.000.000 2.000 Accounts & Admin Officer 1 15.000.000 Total Cost 909.000 1000 1.Pre-feasibility Study Sausages Production unit 6. LAND & BUILDING REQUIREMENT The land & building required for operating the Sausages Production unit is as follows: Table 7: Land & Building Requirement Details Description – Land & Building Cost/Sq. 3 Human Resource Requirement The manpower required for operating the Sausages Production unit is as follows: Table 6.000 Supporting Staff 4 10. Furniture and Equipment Maintenance The furniture and equipment maintenance process will be conducted on yearly basis.700 2. Vehicle Requirement The Vehicle required for operating the Sausages Production unit is as follows: Table 7.000 300.000 Warehouse & Cold storage 1.200 500 600.000 3. the investor may set different pay scales.000 Peon Guard Annual Contract 160.000 Registration 1 9.000 7.000 Total 7.000 480.000 Technicians 3 12.1: Vehicle Requirement Details Vehicle Nos Cost Shahzor 1 9.000 432.000 Note: The staff salaries are estimated according to the market trends. Ft Area in Sq.00.000 Sweeper Total 1.1. ft Total Cost Land 200 10.552.

3.Pre-feasibility Study Sausages Production unit 7.146 Total Investment 22. in actuals Debt 8.000 Machinery & equipment 10.459 Cash 500.300.620 Furniture & fixtures 368.718 Working Capital Rs. Capital Structure of the project Table 7-3 Project Financing Initial Financing Rs.000 Pre-operating costs 435.938 Raw material inventory 2.179.098 Total Capital Costs 19. in actuals Land 2. in actuals Equipment spare part inventory 12.275.000.339. 4.000 Office equipment 45.328.2: Total Capital Requirements Capital Investment Rs.000 Office vehicles 909.975. Total Capital Requirement Table 7.000 Total Working Capital 3.096.406 20 BAL-PREF-/ 2009 .864 7.000 Building/Infrastructure 5.457 Equity 13.000.750 Upfront insurance payment 337.

Pre-feasibility Study Sausages Production unit 8.000 Packs Sale price per unit in year 1 Rs. 255 Sale price growth rate per annum 10% Production capacity utilization in first year 60% Production capacity utilization growth rate 5% Maximum production capacity utilization 95% Table 8-3 Economic Related Assumptions Inflation rate 10% Wage growth rate 10% Electricity Growth Rate 10% Water Price Growth Rate 10% GAS Price Growth Rate 10% Table 8-4 Financing Assumptions Interest rate on long term debt 20% Project Debt Component 40% Project Equity Component 60% Tax rate 22% Required rate of return on equity 16% WACC 12% Owners Withdrawals 50% of available cash Table 8-5 Expense Assumptions Administrative benefit expense 5% of administrative expense Travelling expense 5% of administrative expense Communication expense 5% of administrative expense Office vehicle running expense 10% of vehicle cost Office expense 5% of administrative expense 21 BAL-PREF-/ 2009 .5 COGS growth rate per annum 8% Table 8-2 Production Related Assumptions Production capacity per year 540. KEY ASSUMPTIONS Table 8-1 Cost of Goods Sold per Unit of Production COGS 1 (Raw material per unit) Rs. 220 COGS 2 (Packing cost and Fumigation Overhead per unit) Rs.

000 22 BAL-PREF-/ 2009 .5% of revenue Machinery & equipment insurance rate 3% Office vehicle insurance rate 3% Professional Fee (Legal.1% of revenue Bad debt expense 1% of revenue Pre-Operational Expense Rs.Pre-feasibility Study Sausages Production unit Promotional Expense 0. 406. Audit etc) 0.108 Table 8-6 Depreciation Rates Building & Infrastructure 5% Furniture & fixtures 5% Machinery 5% Office equipment 5% Office Vehicle 10% Table 8-7 Cash Flow Assumptions Accounts Receivables Cycle (In Days) 30 Accounts Payable Cycle (In Days) 30 Initial cash on hand Rs. 500.

514 39.773 60.748 27.766 *Re-investment rate has been taken to be the interest on cash in bank.975.406.300.535.63 27.275.093.640 25.292) 4.449.071 20.484 Profit margin on sales 3% 5% 7% 8% 10% 11% 13% 14% 15% 17% ROE 14% 23% 27% 29% 29% 28% 27% 25% 23% 22% Times interest earned 2.34 63.117 32.02 8. which in this case is 2% 1 BAL-PREF-/ 2009 .28 18.07 12.20 41.Pre-feasibility Study Sausages Production unit Financial Evaluation of … Sausages Production unit SMEDA Key Variables Total Investment in Project 22.75 5.054 19.551 11.940 41.063 9.075.959.92 Equity Project Internal Rate of Return (IRR) 52% 42% Modified Internal Rate of Return (MIRR)* 34% 28% Payback Period (yrs) 3.364.66 Net Present Value (NPV) @ 16% 61.058.189 83.219.848 12.771.629.941 @ 10% 100.25 3.406 Debt 40% 8.738.269 6.992 7.805.177.607.291.864 Equity 60% 13.77 107.090 34.01 236.537. in actuals Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Free Cash Flow to Equity (FCFE) (977.406.336.457 Interest Rate 17% Debt Tenure 10 Debt Payments per year 1 Rs.603 Free Cash Flow to Firm (FCFF) 147.857 14.707.856 6.

179.Pre-feasibility Study Sausages Production unit Statement Summaries SMEDA Initial Investment Capital Investment Rs.000 Pre-operating costs 435.459 Cash 500.406 * Provisioning for the first year installments 2 BAL-PREF-/ 2009 .750 Upfront insurance payment 337.000 Office equipment 45.339. in actuals Debt 8.000. in actuals Equipment spare part inventory 12. in actuals Land 2.000 Office vehicles 909.938 Raw material inventory 2.620 Furniture & fixtures 368.000.328.098 Total Capital Costs 19.718 Working Capital Rs.000 Total Working Capital 3.300.275.146 Total Investment 22.864 Initial Financing Rs.096.975.457 Equity 13.000 Machinery & equipment 10.000 Building/Infrastructure 5.

242 188.559 41.136 3. audit.041 254.487 21.673 57.374 66. - Balance carried forward 2.024.990.703.140 116.479 Tax 594.128 219.927 Cost of goods sold 71.207 1.107.040.338 254.034.624 2.253 5.146 33.879 898.399 1.772 1.112 14.901 31.489 723.112 14.926 1.197.810 1.320.285 137. in actuals Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Revenue 79.701.761 Office vehicles running expens e 90.865 188.926 1.191 41.990 50.769. .804.740 5.500 98.652 1.812 177.326 940.008 730.890.039.473.562 1.040.959.024.197.951 21.580 62.712 51. - Earnings Before Interest & Taxes 4.201 1.805 14.782 169.946 11.995 Rental expense .577 66. .723 10.162.903.924 859.133 101.005.974.964.353 154. etc.020 87.047 63. .274.258 20.316 41.593.073 238.531 878.047.076 11.700 581.831 28.275 Insurance expense 337.237.147. .903.394.222 300.466 20.020 87.608.514. .501 16.455 Depreciation expense 878.102.882 3.204.395 161. .703 519.232.558. .107. .834.302.320.647. fax.735.715 34.796 15.338 General administration & selling expenses Administration expense 504.480 126.550 7.268.998 3.040 219.780.763.472.662 14.381 Promotional expense 395.989 120. .927 7.493 Total profit available for appropriation 2. .834.194 160.459 319.323. .061 1.) 48.542.567 244. .865.730 15.719.409 1.490 45.058 25.190. .497 70.726.402. .818 91.938 116.041.727.458.112 14.480 126.095.) 24.312. .212 6.139. .024.828 14.772.386.303.324.413 2.077.485 540.605 76. .141 25.780.570 308.473.429 69.531 878.472.417.413.559 41.921.044.337 28.749 3. .472.979 100.926 1.161.454.178 98.979 46.047 63.909 45.667 9.781 137.990 109.337 Office expenses (stationary.348.934 110.939 Earnings Before Tax 2.236.520 44.900 99.101 7.015 2.382 83.549 Subtotal 3.880.405 220.749 264.053 135.637 37.020 87.370.600 .101.472.444 12.895.442 Gain / (loss) on sale of assets .377.349.675 4.342 1.618.726.299.197.540.618.187 Dividend . .139.993.493 221.454.926 Amortization expense 87.513 290. . . 363. .141.506.976 Other income 5.431.066 315.903.757 4. - Utilities expense .162.010 6.880.186.000 52.917 7.682 Profess ional fees (legal.459 1.212 6.531 878.024. . .148. .093 965.024.596.177.107.302 42.596.926 1.298.187 3 BAL-PREF-/ 2009 .401 2.362.084.726.212 6.Pre-feasibility Study Sausages Production unit Statement Summaries SMEDA Income Statement Rs.480 126. .068 1.852 214.431. .047 63.058 25.271.195 267.008 880.802 63.320.893 27.531 878.878 91.888 9. . .467 55.968 1.530 50.424 685.) 79.782 169. etc. .620.961. . .368 6.767 2. etc.746 55.493 221. .930.485. . .284.310 199.888.558.107.418 28.780.554 5.775 981. - Property tax expense .702 4.138 194.785 NET PROFIT/(LOSS) AFTER TAX 2.547 1.077 160.284.834.058 25.808.988 133.618.000 26.856 27.389 280.529.020 .035 177.938 222.576 35.758 36.108.812 1.618. expense (phone.096 155. .693 Balance brought forward 2.000 553.602 35.802 38.888 490.087 146.844.020 87.900 7.175.349.432 19.808 203.101 7.386 804. .249.414 308.703.449 55.986 282.418 Interest expense 1.204 279.424.543.587.878 91. - Miscellaneous expense 791.782 169.212 4.113.362 280.780 1.850 10. .852 802.935.023.559 41.349 117.650 87.000 45.394.848 1. - Travelling & Comm.434 52.878 91.082 3. .984 60.059.693 1.778.242.918 666.361 Operating Income 4.590 Gross Profit 7. .070 606. .531 1.930.

250.406 13.377 8.020 .287 Intangible assets Pre-operation costs 435.406 15.029.229 4. - Other liabilities .682 - Total Current Assets 3.919 14.734 6.047 63.163. .677.444 7.137.888.080. .625. . .441 - Raw material inventory 2. . .179.620. .854. .358 Long term debt 8.250 36.784. . .000 24.500 38.300.465 38.620 17.986 282. 2.027 15.917. .350 6.834 8.198 18. .525.431 8.200 312.686. .090.338.952 6.459 319.750.078 261. . .888.134.631 11. . 3.977 Office equipment 45.300.800 202.098 348.204.146.128.000 2.904.816.782 169.750.244.087 22.075 Finished goods inventory .620 9.000 818.029. .530 - Pre-paid annual land lease .000.990 110.026. .000 349.358 1.696 7.243.891 Liabilities & Shareholders' Equity Current liabilities Accounts payable .066 12.702 - Total Long Term Liabilities 8.687 3.940 Export re-finance facility . .197.443.553.400 1.525.606.588 5.878 91. .147.000.646.300.067.300.600 331.212 6.513 290.292 .975.195 267.269 10.880 Accounts receivable . .707. - Short term debt .918.137.519 27.608.500 29.401.250 27.780.497 2. .047.060 1.907 254.139 1.732.740 7.931.419 161. .715 7. .438 36.137.375 19. . .000 2.419 161.947 19.000 2.743 192. .694.300 545.907 254.213 10.598 13.411 9.124 111. . . .000 Machinery & equipment 10.692 9.000.137.039 87.234 52.644 8.406 Retained earnings .128.550 3. 6.105.358 1.490.975 10. .300.169.000 3.633.000.116 125.645.000 42.900 234.400 184.567 244.089 16.282 42.257.000 2.285. . . . .214.677 8. 6.000 Building/Infrastructure 5.918. .406 13.000 4.117. .000.588. - Deferred tax .720.754. .272 731.417.406 13.271 19.574. - Legal.496.408 58.975. - TOTAL ASSETS 22.200 220.000.098 17.200 636.018 8.658.271.191.753 6. .318. .992 13. 6.681.210 14.203 5.Pre-feasibility Study Sausages Production unit Statement Summaries SMEDA Balance Sheet Rs.187 Total Equity 13.300.975.859.750 40.874 77.137. . - Total Intangible Assets 435.000 33.891 BAL-PREF-/ 2009 Note: Total assets value will differ from project cost due to first installment of leases paid at the start of year 0 .979 6.864 31.000 4.948 21.500.384 28.137. .551 26.557.415.376 4.000 3.300.528.987 10.358 1.000 2.600 239.863 1.342 1.187 41. .222 300. .483 81.198 18. . .634.529 11.341.000.406 13.000 2.834.406 13.000.400 276.250.619 20.412.137. .546.320.618.598 13.940 Other liabilities Lease payable . .947 19.800 294.257. .000 4.415.783. . .923 73.332 20.358 Shareholders' equity Paid-up capital 13.531.203.816.966 55.694 244.052. . .923 73.151.000 2. 4.992 5.287.750 22.649.422. in actuals Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Assets Current assets Cash & Bank 500.888.406 13.401 96. .305.208.429 7.000 3.228 46.000 2. .835 4. .407.301.039 87. .901.137.772 5.438 36.000 2.658 8.300.000.750.284 104. .670 9.500.047.001 44.237. .189 4.401 96.411 9.020 . 477.072 19.521.810 Furniture & fixtures 368.277 210.381 9.772. - Pre-paid lease interest .606. .054. licensing.076 36.000 Office vehicles 909.026.577 16.811.864 31. - Pre-paid insurance 337.490. .000.797.244 15.078 261.500.593 TOTAL CAPITAL AND LIABILITIES22.435 4.750 2.064.843. .605 Fixed assets Land 2.168.507. . .237.546.000.791 5.406 13.151.639 9.504 149.498.493 221.137.100 727.000 .528.158 1.871.643.000 4.000 2.650 Equipment spare part inventory 12.822.075 5. .000 3. .816 7.353 148.206. .643.788.883 204.214.454.358 1.116 125.415.892.568 969.180 33.472. .050 8.094 24. .244 15.112 14.253 56.058 4 25.358 1.000 2.457 8.431 8.542 7.986 9. .300.318. .439.098 17.275.457 9.059 174.001 44.915. 594.013.140 11.496 15.733.834 7.300.000.188 183.136 12.659 51.328.529 11.000.146 12.098 348.588.253 56.886 140.067.000 2.300.071 6.750 31.358 1.726.480 126.000.137.358 1.903.107.339.938 16.559 41.349. .406 13. .797.077 3.059 174.394. .358 1.454 1.179.661. .474.525 31.558 16.977.343.843.500 Total Fixed Ass ets 18.692 7.749 264.422. - Total Current Liabilities .883 204.859. & training cos ts .310 199. .535.938 222. - Pre-paid building rent .049.049.200.000 257. .019 6.300.406 13.729.936. .453 76.275.406 13.683.

.553.417. . . .452 40.853 2.564) (1.415.880 5 BAL-PREF-/ 2009 .864 activities 76.677.990 110.463.507. . .368) (926.926 amortization expense . 2.161) (1.535. 4. .107.096. .725.020 87.206) (5. .990 110. .504 149.020 87. .673) (641. - Cash carried forward 500. - Cash (used for) / provided by investing (19.572) (2. 6.479) 5. .459) 18.277 210. .305 Financing activities Change in long term debt 8.602 35. - Change in export re-finance facility . - Deferred income tax .954) . . .531 878.431.553. (3.236 (25.117 32.431) (4.603 Cash balance brought forward 500.874 77. . .926 1.180 33. . (6. . .291.490.593.953.063 9.212 4.481. .550) (527.079) (878.000) 4.000 . . - Advance insurance premium (337.090.606) (1.535. . . . .202.542 1. . .263. .673) (641. . .551) (5.926 1.527.978) (737. (1.535. .682) 22. .020 87.293.415. . . .406.234 52.490.871. .135) (3.938) (1.392. .146) (576.854.501 16. .209. .184.094.000 (500.762) (1. - Cash provided by / (used for) financing22. . .328.874 77. .954.479 (946.699) (742. .990 110. .494. . .628 22.712.234 52. in actuals Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Operating activities Net profit . . .980 1. . .187) (663.937) (659.269 33.814. . . . .899) 11.024. .180 33.677.180 33.024.776) (1. . .210 62.738.798) (2. .504 149.938) (3.750) (646.679.531 878.857) (682. .336.948) (751.202. .074) (2.234 52.277 210. . 87. 477.762) (1.020 87. .524.409.884. . .437) (1.813) (468. - Accounts receivable . . .930.712 51.946) (4. (1.367) (2. .736 10. .332 20.900 7. . .938) (1. .332 20.269 10.152) (1. .304. . .275.553. .104.028.504 149.360.222.931.880 Dividend .277 Cash available for appropriation 500.146.805.628 22. 594.530 Pre-paid building rent .292 (477.342 543.020 .152) (1. . .Pre-feasibility Study Sausages Production unit .537.016 .514.773 60.079) (878.302 42. .531 878.278) (1.646. .407.513 6.000 . . .871.455.095. - NET CASH 500.000 (0) 4.646 1.147) (2.926 1. .298. . .877) (830.015) (3. .292) . .406 .146.639) (592.628 199.407.054 19. .269 10.535.490.447. .075. .463.492) (927.600. .718) activities .531 878.086 19.487 21.094. . . - Pre-paid lease interest .948) (751.975.269 10.954) .993 Other liabilities . .854.457 (400. - Purchase of (treasury) shares .161. .522. .618. .918. .028. - Land lease payment .390) (1.946 11. . .837) (1.524.702) Change in short term debt . . .531 1. .300.848 12.874 77. - Add: land lease expense . .269 6. .693 Add: depreciation expense . .332 20. .118 1. .069 1.796 14.981) Finished good inventory .628 22.236 18. . . .013.117. 0 (0) 0 Statement Summaries SMEDA Cash Flow Statement Rs.740) (779.682 Accounts payable .644) (1. .646.244) (548.274. .640 25. . .090.024.100 1. 4. - Acquisitions .702) Investing activities Capital expenditure (19.024. .441 Raw material inventory (2. .364.464) (3. 878.390.146. . - Change in lease financing . . . .926 1.514 39. .831 28. . . .832.403 26.783) 51.871.957) (1.148) (782. - Cash provided by operations (2.718) .096.236 18.890 1.854.750 422. .437) (1. .952) (548.677.974) (4.415. .236 18. . - Iss uance of shares 13. .024.980) Equipment inventory (12. . .

Pre-feasibility Study Sausages Production unit 6 BAL-PREF-/ 2009 .