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Feasibility Report
of
ABCD Printing & Packaging Limited (ABCD)

Company Background:
ABCD Printing and Packaging Limited is a private limited company with the vision to operate
by achieving excellence in service. They will provide printing service to all their valued
customers. The company was established in the year 2016. They initially provided printing
service and now they provide integrate printing solution from developing a concept to delivering
completed outputs.
Ownership of the business is as such A is the major shareholder with 77.50% stake, while Mr. B
and Mr C holds share position of 12.5% and 10%, respectively. The major suppliers of raw
material of the company will be Sadia Enterprise, Hosain Traders Agency, Hasan Traders, Busra
Lamination and Mozaddadia Lamination. Among, the broad client bases of ABCD, few
renowned wiil be the buyers of their products like British American Tobacco Bangladesh,
Energypac Electronics Ltd, Grameen Phone Ltd, Hamdard, Laboratories Bangladesh and
Medinova Medical Services Ltd.
EXECUTIVE SUMMERY

Name of the Project : ABCD PRINTING & PACKAGING.

Name of the applicant(s) with

Mailing address : MD. A

Dhaka-

Capacity of the Project : 124000 units per day

Industrial classification and

Coverage under RIIS/Reference (s) : Printing Press

Type of project/machine : BMRE 08 New Digitalized Pcs Machineries

Location of the project :, Dhaka

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Estimated cost of the project/machine as per Proforma Invoice (PI):

Qty Description of goods Impression Amount Total Amount

(TK)
in FC

01 Six Color Printing machine with coater, 24,000per hr $ 120,000 96,00,000/

Detail Page-4
02 SM 74 Two Color 20,000per hr $ 55,000 44,00,000
Detail Page-5
03 MOZ Bi Color 12,000per hr $ 40,000 32,00,000
Detail Page-6
04 MOE Bi Color 6,000per hr $ 18,500 14,80,000
Detail Page-7
05 Polor-115 $ 18,000 14,40,000
Detail Page-8
06 Hot Gleec binding $ 12,000 9,60,000
Detail Page-9
07 Folder $ 15,000 12,00,000
Detail Page-10
08 Ricutting $ 18,000 14,40,000

Packaging Unit 70,00,000

Setup Cost 40,00,000

Total Amount 62,000per hr 3,47,20,000

Working Capital 5,00,00,000

Total Amount with Working Capital 8,47,20,000

Means of Finance : Against Machinery Cost

Amount Percentage
(a) Owners’ Equity : 10,41,6000/= 30 %
(b) Bank’s Equity : 2,43,04,000/= 70 %
Total 3,47,20,000/= 100 %
Add Working Capital
(c) Bank’s Equity : 5,00,00,000/= 100%

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GENERAL INFORMATION

Name and Address of the Applicants:

Name Address

Residential: Add

Managing Director of Telephone:

company
Office Address: Add

Telephone: 9892213-14

Present Occupation : Business

Qualification/Training/Technical know-how/Business experience: The sponsore are technically

qualified having association in industry and business more technical know-how is won locally
available.

Constitution of the firm: Private Limited Company.

Particulars of the Director’s

SL Extent of
Name Designation Address Qualification
No Share

01 Md. A Chairman Add M.A 12.50%

Managing
02 Md. B BA, LLB 77.50%
Director

03 Md. C Director M.A, L.L.B 10.00%

ORGANISATION & MANAGEMENT

Constitution of the Company : Private Limited Company

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Authorized Capital : 10.00 million

Paid-up Capital : 6.50 million

Management Technical know-how : Directors are technically qualified having association

in Industry and business more over technical know-how is now locally available.

MANAGEMENT AND OTHER QUALITATIVE FACTORS:

ABCD Printing & Packaging Ltd has ownership pattern as follows- Md. A is the Chairman with
12.5% of the shares. Md. B is the Managing Director with 77.50% of the shares and Md. C is the
Director with 10.0% of the shares. D is the General Manager. E is the Head of Administration. F
is the Head of the Finance and Accounts. G is the Head of Marketing & sales. I is the Head of
pre-press. Jan Md. is the Head of Post-press. J is the Head of Delivery Department.
The Dhaka Chamber of Commerce and industry has certified the company to be engaged in
printing and the membership is to be valid up to 31st December 2005. It was given on the 18 th of
October, 2005. The Certificate of Incorporation was given on 11th of September, 2011 and is to
remain valid up to 31st December, 2011. The company has certificate for meeting Management
System Standard issued on September 29, 2006 with ISO 9001:2000.
Human Resource:
Administrative Quality control circle has Md. A, Md. B, C, D, E. Production and Finishing
Quality controf ciicle has F, Jan G, H, I.

Chairman

Managing Director

Director

General Manager

Admin Finance Marketing Pre Press Post Delivery

& & Sales Press Press Dept.
Accounts
Administrative Staff Requirement:

Position No(s) Salary/Month Total Salary/year

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 General Manager 01 35,000.00 4,20,000.00

Manager (Production) 01 20,000.00 2,40,000.00

Accounts Executive 03 12,000.00 4,32,000.00

Marketing Executive 05 10,000.00 6,00,000.00

Administrative Executive 02 12,000.00 2,88,000.00

Computer Operator 03 12,500.00 4,50,000.00

Machine Operator (Printing) 18 13,500.00 29,16,000.00

Machine Operator (Die Cutting) 04 12,000.00 5,76,000.00

Machine Operator (Gluing) 04 6,000.00 2,88,000.00

Machine Operator (Paper 03 10,000.00 3,60,000.00

Cutting)

Machine Operator (Laminating) 03 12,000.00 4,32,000.00

Binding Section 08 5,500.00 5,28,000.00

Peon 01 6,000.00 72,000.00

Guard 02 10,000.00 2,40,000.00

Cleaner 01 5,000.00 60,000.00

Temporary 33

Others 10 4,000.00 4,80,000.00

Total Amount required for Administrative Staff: (Yearly) 83,82,800.00

Total Amount required for Administrative Staff: (Monthly) 6,98,500.00

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Estimated Earnings
Forecast

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 2nd year 17- 3rd year 18-
1st Year 16-17 18 19

Capacity Utilization 70% 85% 100%

165,533, 188,512
Sales 147,078,519 220 ,515

Cost of Sales

87,512, 98,641
Raw materials 79,085,312 888 ,220
9,253, 9,952
Direct Labor 9,085,425 565 ,333
3,928, 4,953
manufacturing Overheads 3,892,152 843 ,487
1,485, 1,605
Depreciation 1,520,215 222 ,523
102,180, 115,152
Cost of Production 93,583,104 518 ,563
Inventory Adjustments (570, (720
(+/-) (275,315) 550) ,315)
102,751, 115,872
Total Cost Sales 93,858,419 068 ,878
62,782, 72,639
Gross Profit 53,220,100 152 ,637

Operating Expenses

Administrative & General 4,586, 4,641

Expenses 4,240,650 057 ,089

Selling Expenses 6,026,502

7,802, 8,120
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 450 ,783
12,388, 12,761
Total Operating Expenses 10,267,152 507 ,872
50,393, 59,877
Operating Profit 42,952,948 645 ,765

Financial Expenses

4,015, 4,560
Profit or Term Investment 3,595,226 618 ,550
Profit on Working Capital 2,345, 2,415
Investment 2,080,312 897 ,752
6,361, 6,976
Total Financial Expenses 5,675,538 515 ,302
44,032, 52,901
Net Operating Profit 37,277,410 130 ,463
7,550, 8,005
Other Income 7,080,450 650 ,315
51,582, 60,906
Net Profit Before Tax 44,357,860 780 ,778

Cash Flow Statement:

Implementations 1st Year 16- 2nd Year 3rd Year
Period 16 17 17-18 18-19
Source of Funds:
60,906,
39,930,677 44,357,860 51,582,780
Operating Profit 778

1,605,
1,560,855 1,520,215 1,485,222
Add back-Depreciation 523

Cash generated from

operation
8,005,
6,215,798 7,080,450 7,550,650
Other Income 315

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 Increase in Current 401,
115,998 312,517 380,445
Liabilities 369

Banks Long Term 4,950,

2,580,680 3,060,500 3,540,222
Investment 500

Borrowers own 325,

150,000 200,000 250,000
Contribution 000

76,194,
50,554,008 56,531,542 64,789,319
Total Available Fund 485

Application of Funds:
Investment in Fixed 24,214,
12,569,430 14,454,845 16,623,069
Assets 270

Preliminary Expenses
Repayment of L.T.I.
4,000,
3,050,000 3,500,000 3,700,000
Payment of Taxes 000

Increases in Current 7,825,

4,580,855 5,721,450 6,580,990
Assests 663

33,397,
14,050,000 19,030,000 25,690,500
Increase in Investemnt 650

Total Application of 69,437,

34,250,285 42,706,295 52,594,559
Funds 583

Cash surplus/(Deficit) for 6,756,

16,303,723 13,825,247 12,194,760
the year 902

83,341,
41,018,078 57,321,801 71,147,048
Opening Cash Balance 808

90,098,
57,321,801 71,147,048 83,341,808
Closing Cash Balance 710

Products and production capacity:

The major raw material required for the production is paper. Also, a long list of machineries,
such as, Automatic Double Demy, Sorck Demy, Sorm Demy, Kumuri Demy, Di-cutting, gluing
machine, numbering machine, lamination machine, plate-making machine, U.V coating machine,
round corner cutting machine, perforation machine, punching machine, insert folding machine,
etc. are also required for providing customized printing solution; such as, books, dairy, calendars,
corporate brochures, advertising article on paper, medical reporting files, reporting pads,
medicine carton, carton for all those purpose and much more. These major raw materials are
procured from both local and foreign sources.

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BATM and Energypac’s work order has significant contribution in revenue generation of ABCD
in the recent time. Furthermore, the company annually procures raw materials (paper) worth
BDT.70.00 million from local suppliers, which helps to minimize the risk of huge quantity of
stock being piled up in warehouses.

INDUSTRY ANALYSIS:
The printing industry in Bangladesh has the potential to become the second highest foreign
exchange earning sector, after the ready-made garments sector. The annual turnover of the
industry is now BDT 35 billion. Bangladesh exported printing materials worth US $ 20 million
(BDT 1600 million) during the FY 2011-12. The country has now around 5,500 printing
industrial units and over 55 per cent located in Dhaka city and more or less 0.4 million people
are directly or indirectly involved in the industry, according to the BSCIC (Bangladesh Small
and Cottage Industries Corporation). Recently Export Promotion Bureau added printing to its
export products list. "China and India are now bagging most of the international printing orders.
The world printing destination can easily be Bangladesh as there are only a few countries in the
world that can offer printed products at much cheaper rate, according to Print Industry
Association of Bangladesh. At present around 7000 printing machines are running in the country,
of which around 1000 machines have the capacity to produce global standard printing works.
This is growing at the rate of 30 per cent per year.
In FY 2012, the Bangladesh government took an initiative to establish a printing industrial hub at
Sirajdikhan in Munshiganj under public-private partnership considering the potential of the
sector that could immensely help export earnings. Recently Bangladesh Small and Cottage
Industries Corporation (BSCIC) and Bangladesh Mudron Shilpa Samity (BMSS) have signed a
memorandum of understanding on 14 August, 2013 to set up a printing industrial estate at a cost
of around BDT 2.0 billion. The project is scheduled to be completed by four years where
employment opportunity for 17,000 people will be created. However, the industry insiders think
that if the printing industrial town is established then the country will be able to double its export
of printing materials.
BUSINESS RISK ANALYSIS
Major operating risk includes failure to delivery on time. If ABCD fails to delivery on time, they
incur the extra transportation charges. The profitability of ABCD can also be adversely affected
by natural calamities and shortage of power supply. The shortage of electricity supply along with
the breakdown of machineries causes operations to halt.
Given the business nature of ABCD, the business is dependent on smooth supply of raw
materials. The concern is positioned in the middle of the supply chain, for which reason it is
essential for them to maintain a strict schedule to uphold their commitments and to retain their
client base Therefore, it is crucial for the company to be careful while choosing suppliers to
ensure long term uninterrupted supply of raw materials. Hence, ABCD has suppliers such as,
Sadia Enterprise, with whom they have been maintaining business relationship for the last 15
years.
Political and economical instability both can adversely affect the performance of the company.
Considering the recent occurrence, nation shutdown due to political conflicts resulted ABCD to

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limit their finished gods delivery numbers. Thus, profitability of the company has slightly been
hindered from the unrest in the country.

SWOT Analysis:

By analysing the market of parinting and packaging business in the targeted area, we have
come to the following SWOT Analysis:

Strengths :
 Adequate expert to ensure the customer satisfactions.
 Commitment on Fast delivery, High quality and comparatively low price.
 Extending work hours depending on orders, ability and the maximum pick during the
seasonal demand.
 Appropriate skill and business reputation of the Directors.
 Factual reliance of the customers on the products of ABCDL
 Emerge business personality of management and predictable growth rate of the
business
 Degitalized factory functions
 Adequate Insurance policy

Weakness:
 Insufficient fund for business expansion
 Instability of the economy due to adverse political impact
 Inefficient marketing staff

Opportunities:
 The dimand of ABCDL’ products is drastically incresing day by day.
 New products will be added in the existing product line.
 Govermants’ petronization on the printing and packaging business.

Threats:
 Other market competitors.
 Instability on price of papers /raw materils

Conclusions:
The report, derived from the various analyzing point of view, shows that the project under
BMRE taken by the ABCD Printing & Packaging Ltd would be fruitful and financially
viable with certain growth of the business.

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