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Feasibility report
University of Sargodha

time to carry

Subject: entrepreneurship

Solar cell Home Distribution system

Table of contents

1. Executive summary
2. Business concept
 Purpose of business
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 Objectives of business

3. Project & products

4. Market research and analysis
 Target markets
 Industry structure
 Expected competition
 Sales forecast

5. Market plan
 Market strategy
 Pricing
 Promotion & distribution
 Services & warranties

6. Manufacturing & operations

 Location
 Inventory
 Human resource
 Operational processes
 Security
 Insurance & safety

7. Entrepreneurial team
 CEO/ Owner
 Employees
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 Sales representatives
 Security guards
 Transport driver

8. Financial documentation
 Assets
 Liabilities
 Income statements
 Balance sheet
 Cash flows

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1 Executive summary
An executive summary provides an overview of a larger
document or research and is usually the first thing your reader will see. 
Oftentimes, executive summaries are the only place decision makers will go to
determine if action is warranted on a particular action or idea.  Executive
summaries will analyze problem, drawn conclusions, and recommend a course
of action in a complete but brief synopsis.  Remember, the people who are
reading the summary often do not have much time, so your executive summary
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must grab their attention and entice them to read through the larger, more in-
depth documentation.

Solar cell is a method of converting solar energy into direct current electricity
using semiconducting materials that shows the effect. Power generation from
solar cell has long seen as a clean sustainable energy technology that draws
upon the planet’s much plentiful and widely distributed renewable energy
source, which is the sun.

The proposed product is a solar cell system, this system will be used as power
saving feature in homes in the presence of electricity and can also be used as
alternative source when there is no electricity and eliminate the need of other
sources of power like UPS & generators. The solar cell system includes solar
panels, hybrid inverter, charge controller, power bank/ Batteries and frames.

It is proposed to be located at major cities of Pakistan like Lahore, Rawalpindi-

Islamabad, Faisalabad, Multan, Karachi, Quetta, Peshawar etc.

Distribution capacity 180 KW (kilowatt) and initial utilization 60%

Total cost Estimates is Rs 40,00,000 with fixed investment Rs 16,93,917 and
working capital Rs. 23,06,083.
By cost assumption, IRR and payback period are 60% and 3.5 years
respectively.

The most critical considerations or factors for success of the project are:

 Most significant consideration(s)

 Owner and key employees must have technical expertise & experience.
 Financial position and credit standing of the distributor.
 After Sales Services is also crucial in creating good personal
relationships with customers.
 Linkages development with the local market & households.
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 Equally important factors:

 Effective marketing plan for the business so that the potential
customers could be reached.
 Good customer care is vital for creating positive image for business
growth.
 Selection of a central location based on the target market.

2. Business concept
 Purpose of the business
The purpose of my venture is to give the best opportunity
of electricity through solar panel to households, small
organization and small institutions at reasonable cost for a long
period of time. The main mission of the business is this that it
provides maximum electricity at level to bear cost of the
electricity only one time at the time of installation.
 Objectives of business
Facilitate customer
Provide best services
Strong Customers relationships

3. Project & products

A photovoltaic framework utilizes sun oriented boards made out
of various sunlight based cells to supply usable sun based force. The
immediate transformation of daylight to power happens with no moving
parts or natural discharges during activity.

Pakistan has consistently been in the grasp of maintainable energy

shortage. There is an ever increment in energy request that can't be
satisfied utilizing the current assets. It is assessed that around 23 million
Pakistani family units out of 32 million approach electricity. As indicated
by the International Finance Corporation (IFC), 24 million family units
are either without framework association are experiencing serious energy
crisis. Past endeavors to give network associations with family units have
flopped because of low thick and scattered country zones.
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Around the globe, sun powered energy especially, is situated to turn into
another wellspring of manageable energy. The expanded mindfulness
towards natural issues has provoked another move towards low-carbon
energy options that has empowered new interest in the substitute energy.
"Pakistani families spend $ 2.3 billion for every annum on elective
lighting products."4 Commercial assembling of the PV Systems has
served to diminish the expense of its segments with the progression of
time because of headways in assembling innovation, procedures and
cycle.
Around the globe, sun oriented energy especially, is situated to turn into
another wellspring of maintainable energy. The expanded mindfulness
towards ecological issues has incited another move towards low-carbon
energy options that has empowered new interest in the substitute energy.
"Pakistani families spend $ 2.3 billion for every annum on elective
lighting products."4 Commercial assembling of the PV Systems has
served to diminish the expense of its segments with the progression of
time because of headways in assembling innovation, strategies and cycle.

Pakistan dominatingly requires substitute wellsprings of energy to both

arrangement with the natural difficulties and the energy deficiency. This
achievability study investigates the open door that exists in the Home
(PV) Distribution Business, in Pakistan. Half and half Systems are all the
more engaging due to the adaptability to associate alongside the public
matrix power association. So will empower the customers to use the sun
based energy as an energy saving alternative within the sight of the
power just as to give as a reinforcement power without power in the day
times with the capacity to charge the batteries that will give
reinforcement in the evenings.

Following are the key parameters for the proposed distribution unit:
 Technology:
There are three types of Solar (PV) Systems widely available:
o The first sort is the Grid Tied Systems that are associated with the
utility force networks, which is an elective force age strategy like
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the hydel or fuel or gas generators utilized by power organizations

to meet the needs of the area or city or country and they will only
work in the presence of sunlight.
o The second sort is the Off-Grid PV System that is otherwise called
independent Systems. These sorts of Systems are not associated
with the matrix and it requires batteries. The batteries guarantee
the accessibility of power even without daylight. These sorts of
frameworks are principally utilized in the far off zones, which are
not in the span of public force dispersion.
o The third sort is the Hybrid PV Systems, it is most appropriate for
family units due to the adaptability to interface alongside the
public network power association.
 Location:
This dispersion business can be situated in all most anyplace in
Pakistan, particularly in metropolitan urban areas like Karachi, Lahore and
Islamabad. The locality of and availability of this product everywhere
especially in those areas where the electricity plants are not installed.

 Product:
This dispersion business would purchase the Hybrid PV
Systems from the merchants which would be appropriated to the end
customers. Establishment administrations would likewise be given by the
proposed specialty unit.

 Target Market:
The objective market for the proposed business
comprises of three portions. The proposed portions are family buyers, little
to medium measured organizations and associations, and instructive
foundations situated in metropolitan places, for example, Karachi, Lahore
and Islamabad.
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 Employment Generation:

The dispersion unit would produce both immediate and aberrant

work. Direct work would be given to 6 individuals. These would incorporate
one individual who might care for the records and answer calls, two
individuals who might manage buying and selling, one driver, and two
individuals with specialized aptitudes who might introduce the PV Systems
for the buyers. The proposed dissemination unit would produce business for
shippers too.

Distribution Process Flow

Purchase from
producer

Reorder inventory Receives Clients

orders

Sale to clients and

installation

Stage 1: Minimum stock is kept up to satisfy the interest on schedule

Stage 2: Demand from customers broke down
Stage 3: Delivery and Installation at the premises of customers happens
Stage 4: Reorder of stock as per request

4. Market research and analysis

5. Customer scenario:

The customer scenario basically depends on three main factors:

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Gender: Our Business must identify the customers who are competent to
use this technology if we motivate to those person who have no knowledge
about this technology so this is only wastage of time and energy.)

Income level: Income level also affect the usage of these technology
company must deliver technology according to customers income capacity.
The persons who cannot afford the expenses of local electricity, they can
manage their expenses through the installation of solar system technology.

Living standard: The Company should make that strategy that where the
customers are high and competent and must have proper knowledge to use
this technology the awareness about this technology is very important

 Expected competition:
The company has developed a “market expanding”
technology, and protected it with patents, both domestic and international.
The Company expects to methodically develop its marketing channels
through use of strategic partnerships with presentation of cheapest way of
electricity system manufacturers. The company has the ability to compete
with others competitors in the market.

The patents alone present a formidable barrier to entry for

competitors, but we intend to also position ourselves as the source for high-
quality value-priced technology related to our patent so that in the future we
are in a position to capitalize on our already significant market presence as
the patent expiration date approaches and competitors consider entering the
field.

 Sales forecast:
The company sales strategy is to price our technology at a level
which makes it attractive in terms of value and features added and
insignificant in cost compared with the core units of a presentation system,
the computer and projector. The Sales Forecast table shows net after cost of
goods, which is why the Direct Cost of Sales section of the table is empty. 
This is due to the variability of what comprises an “upgrade” kit.  Some
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customers will need the full set of electricity plant which is provided through
sun rises while others will need only pointer and software, or download the
software alone from the Brilliant Company website.

Pakistan's geology is generally ideal for misuse of sun based energy as

it is 6th most blessed nation on the planet as far as sun oriented irradiance
and where daylight accessibility is 8-10 hours out of every day over a
significant part of the plans of Sindh, Baluchistan and Southern Punjab.

Sunlight based energy force in Sun Belt of Pakistan is roughly 1,800-

2,200 Kwh per square meter every day, which is the most great for
misuse of sun oriented energy. Possible limit with respect to
establishment of sun based photovoltaic force by certain appraisals is
1,600 GW, which is multiple times more noteworthy than present
utilization. In light of scope of as of now conceivable transformation
efficiencies in zone of one sq. km can possibly create 40-55MW power
and can produce income minimalistic ally assessed at Rs. 1 billion every
month at current normal taxes of Rs. 10 for every Kw for each hour.

Since sun based force is accessible just during seasons of daylight, it can
all things considered get together to 30% in each day utilization without
need for energy stockpiling, for example, in underground salt stores. No
man's land and desert of Thar, lower Sindh and Baluchistan are prime
competitors to build up enormous sun oriented homesteads with limits of
creating in excess of 250 Gigawatts electric capacity to meet energy
shortage over coming many years.

6. Market plan

Market Strategy to compete:

The main purpose of the company is to provide high quality
and durability and provide long life of product. Our main market strategy is
this that provides quality and branded products to their customers. The first
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market strategy is this that makes new customers in the market and also tries
to increase the sales growth. We will try that compete easily in the market
and registered their company patent with legal rules both in domestic and
international company market brand.

Target customer:
The PV framework customers are expanding in Pakistan as more
individuals are moving from fuel generators to sun based force for power
needs. The potential clients are sectioned into following gatherings:
Small Businesses and Organizations: Small organizations working in
regions with upset power supply settle on sunlight based force
frameworks for their power needs. Associations including Health offices,
Government workplaces and NGOs working in far off country regions
with no lattice power access additionally introduce PV frameworks to
meet their power needs. Such clients are discovered both in country just
as metropolitan zones of Pakistan. Family units: Household customers
with satisfactory purchasing power favor PV frameworks over force
generators. Individuals from metropolitan focuses of Punjab and Sindh
are particular objective with tremendous potential as these zones get
greatest measure of daylight. The reasonableness of such customers is
also high as the PV systems cost quite high. However, singular family
units may arrange PV frameworks from the nation over. Instructive
Institutions: Schools and universities working in provincial regions with
no network power supply introduce PV frameworks to meet their
perquisites.
 Price:
The price is lifeblood of the product. The success and failure of
the business is totally depends on price of the product. The price provide the
better quality of the products and show positive image in the mind of the
customers if provide the products at low prices in the market to the
customers as compared to other competitors.
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The company will provide discounts to their customers at the

time of cash or net purchase. Prices will reflect the nature of the business.
The company will try to set at their product prices at different levels means
at wholesale rate and retail rate and bulk quantity and also provide discounts
to customers to maintain the customers trust. It is a strategic decision of the
company to compete in the market and main their sale with other
competitors. It will indicate the how the company will take strategic pricing
decision.

 Marketing Leadership:

The marketing strategic of the company is this that provides

valued services to the customers with the help of expert and qualifies staff.
The marketing leader ship show that how the product efficiently delivered in
the market and sell in the market. The company basically in first time period
focus on their sales through the sales training with the help of expert and
skilled persons and make the best paid commissions structures to the sales
man at the time of fulfill their target and recruitment of skilled persons and
sales management persons.

There are two main reasons to deliver and sell the product in
competitors market successfully. The first reason is this that hired the proper
skilled person and expert of related field these persons save company from
loss and money wastage and time wastage. The secondly the company will
hire brilliant idea and successful person to increase the sales volume in the
market. The company wishes is to hire competent technical peoples and
successful combination of the peoples.

The sources which make the company process convenient known as

facilities. The facilities of the company are this:

 The first facility of the company is this that the Company has personal
ownership of their property and very low portion of property get at lease.
 The company will use innovative and modern equipments and methods of
technology.
 The Company has their own transport and parking facility for their
employees.
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 The company is registered with legal criteria and has no zoning issues.
 The product of the company is allocated all those places where the demand
of this product.

7. Entrepreneurial team:

The entrepreneurial team is very necessary to execute the

business activities. The company hires the following staff to make their
business successful.

a) CEO
CEO is the owner of the business who handles all activities of
business. Make strategies and plans and then implement
b) Sales representatives
These are the persons who manage sales activities.
c) Administrator
d) Driver
e) Security guard

Description No. of Salary per month Total Monthly

Employees per Person (Rs.) Salary (Rs.)
CEO/ Owner 01 50,000 50,000
Sales 02 30,000 60,000
representative
s
Installer 02 30,000 60,000
Administrator 01 20,000 20,000
Driver 01 17,500 17,500
Security 01 17,500 17,500
Guard
Total 08 - 187,500
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8. Financial documentation
A definite monetary model has been created to dissect the business
suitability of this venture. Different expenses and income related
suspicions alongside aftereffects of the investigation are plot in this part.

Project Economics

All the figures in this monetary model have been determined for
assessed income of Rs.29.3 million in the year one. The limit usage is work
out at 100%. The accompanying table shows inside pace of return,
recompense period and net present estimation of the proposed adventure:

Description Details
Payback period 60%
Internal rate of return 3.5 years

Project financing

Following table provides details of the equity required and variables

related to the bank loans:

Project financing
Description Details
Total equity 100% 40,00,000

Cost details of project

Following fixed and working capital requirements have been identified for
operations of the proposed business. Working capital is estimated to be Rs.
10,919,996 to meet the initial requirements of operating the business. The
requirement is based on the cost for four months of the items shown in the
table below for working capital:
Project cost

Description Cost Rs
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Capital cost
Furniture &Fixture 206,000
Office Equipment 1,62,917
Office Vehicle 1,100,000
Pre-operating costs 225,000
Total Capital Cost 1,693,917
Working capital
Raw Material Inventory 1,492,125
Up-front Building Rent 480,000
Up-front insurance payment 55,000
Cash 278,958
Total Working Capital 2,306,083
Total Project Cost 40,00,000

Furniture & Fixtures Requirement

Details of the furniture and fixture required for the project are given below:

Furniture & Fixture

Description Quantity Unit Cost Total Cost

(Rs.) (Rs.)
Computer Table and Chair 01 25,000 25,000
Tables 02 15,000 30,000
Chairs 08 7,000 56,000
Air Conditioners 01 85,000 85,000
Electrical wiring & lighting 10 1,000 10,000
Total 206,000

Office Equipment Requirement

Following office equipment will be required for PV Systems distribution

business:
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Office Equipment
Description Quantity Unit Cost (Rs.) Total Cost
(Rs.)
Computers 01 75,000 75,000
Printer 01 15,000 15,000
Tablet 01 15,000 15,000
Total 105,000

Utilities and other costs

An essential of the project is the cost of electricity, telephone and internet.

The electricity expenses are estimated to be Rs.18,000 per month, telephone
expenses are estimated as Rs.5,500 per month including internet expenses.
Furthermore, promotional expense being essential for marketing of PV
Systems distribution business is estimated as 5% of sales.

 Revenue Generation

Sales price is taken on the 35% margin on the average cost of the all
components. Based on the approx. capacity utilization of 65% for PV
distribution, revenue during the first year of operations is estimated as under:

Revenue Generation

Description No. of Remaining Units Sale Sales

Units Inventory available Price / Revenue
Procur (kW) for Sale kW (Rs.)
e (kW) (kW) (Rs.)
Solar (PV)
Systems 108 5 115 224,900 24,289,200
Total 24,289,200

INCOME STATEMENT
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
 Income and Expenses:

It shows the profit and loss of the company. The following

income and expenditures are incurred during year.

 Advertising/Promotion and Travel: 

It is anticipated that marketing and travel will be significant

expenses due to the need to present and demonstrate Brilliant Company
technology to a wide audience.

 Miscellaneous: 

Attempt to account for unforeseen petty-cash,  office, travel and

repair expenses.

 Leased Equipment:

We anticipate some larger cost items will be leased rather than

purchasing.

 Depreciation:

  Will need to be filled in as capital equipment and other

depreciable items are purchased.

 Insurance:

  We are in the process of obtaining insurance quotes from several

providers and will replace these figures with more accurate data when the
quotes arrive.  These figures are based on simple scaling of existing liability
and damage insurance to account for the increased personnel and office
space.

 Rent:
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Shows zero for the first year because the entire first year’s lease
is included in start-up costs.

 Interest Expense Short-term: 

Shows interest which would be paid based on assumed short-

term rates and immediate full draw-down of corporate line-of-credit.  There
is, at present, no short-term debt.

 Sales and marketing Expense:

This expense incurred when the product is selling to customers

and delivers the product to customers.

Solar cell home distribution

Income statement
For the year 2021

Sales 24,289,200
(-)Expenses:
Payroll 187,500
Sales and Marketing and Other Expenses 800000
Depreciation 000000
Leased Equipments 560000
Utilities 70000
Insurance 500000
Rent 885000
Payroll Taxes 90000
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Misc. Expenses 420000

Total Operating Expenses 3512500
Profit before Interest and Taxes 20776700
Interest Expense (500000)
Tax Expense (1200000)
Net Profit 19576700/-

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