Feasibility Report on Flour Mill

Introduction
Wheat is one of the most important product for all of region of the world. Without wheat
human life is uncompleted. It is become more important not only by the fact of
improvement international value. It’s a first food item that an important for all over the
world. This business also important for Pakistan and last decades the flour mills are
increase due increase in demand of flour.
Nature of the Business
The nature of the business is partnership. Although selection is totally depends upon
the choice of the entrepreneur. This business is based on the partnership and
registered under partnership act 1932.
Proposed Location
The most feasible location for the plant would be in or near the wheat producing regions
of Punjab. This is advisable as transportation costs would be reduced and contact with
growers/farmers directly can be made. It is usually the case that the farmers are willing
to approach the manufacturing plant directly if it is located near to their lands. However,
the availability of trained personnel in the locality has to be kept in mind as well as the
availability of suitable residences because costs could rise if there was a problem in the
accessibility of the location from other urban area.

Annexures
 Estimated Cost of Land
 Estimated Cost of Civil Works
 Estimated Cost of Machinery
 Estimated cost of the Project
 Initial Net Working Capital Requirement
 Estimated Income Statement
 Balance Sheet
 Cash Flow Statement
 Loan Repayment Schedule
 Financial Plan

International Islamic University Islamabad Page 1

 Feasibility Report on Flour Mill

RATIOS
 Net profit margin ratio
 Current ratio
 Debt/equity ratio

Market Analysis
Like every other industry, milling is subject to increased market pressures. Customers
demand consistent quality and product variety while production efficiency must be
maintained if not improved
Pakistan has a rich and vast natural resource base, covering various ecological and
climatic zones; hence the country has great potential for producing all types of food
commodities. Agriculture has an important direct and indirect role in generating
economic growth. The importance of agriculture to the economy is seen in three ways:
first, it provides food to consumers and fibers for domestic industry;
second, it is a source of scarce foreign exchange earnings;
and third, it provides a market for industrial goods
Distribution channel:
First of all our sales’ man collect the orders from whole sale dealers then from whole
sale dealer the shop keeper collect the flour then ultimate consumers purchase from
retail store. Hop keepers can also put their orders directly but in bulk levels.
Technical analysis
There are five roll systems in a flour mill: break, sizing, midds (for middlings), low grade,
and residue.
Area we will cover:
Our flour mill will be established in RahimYar Khan. We will supply of flour in tehsil and
District RahimYar Khan.
Personnel analysis
We will also do Personnel analysis that how many labour we have and from this how
many are skilled and non-skilled , administration and general staff and their wages and
salary.

International Islamic University Islamabad Page 2

 Feasibility Report on Flour Mill

SWOT Analysis
 Strengths
 Weaknesses
 Opportunities
 Threats

Methodology of the study

The study utilized the descriptive technique because its main objective is to prepair the
fisibility report of the floor mill. The information regarding this project will be collected
from Primary data that includes interviews with mills managing directors and Finacial
Cosultants and Secondary data from different books, articles, Internet, and different
researches .
Problem Statement
How we can prepare the fisibility report of a floor mill and how we can physically
established it.
Objectives of the study
The main objective of the project is to provide complete procedure of fisibility report.

REMARKS
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------
-----------------------------

Advisor
Sir Ch. Mazhar

International Islamic University Islamabad Page 3

 Feasibility Report on Flour Mill

International Islamic University Islamabad Page 4