CHIPBOARD PLANT
REGIONAL OFFICE
SINDH
REGIONAL OFFICE
KPK
REGIONAL OFFICE
BALOCHISTAN
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 9213046-47
Fax: (091) 286908
helpdesk-pew@smeda.org.pk
April 2006
Pre-feasibility Study
Chipboard Plant
Table of Content
1. PURPOSE OF THE DOCUMENT ........................................................ 5
2. PROJECT PROFILE ................................................................................ 5
1.1
Opportunity Rational ............................................................................................. 5
1.2
Project Brief .......................................................................................................... 5
1.3
Market Entry Timings............................................................................................ 5
1.4
Business Legal Status ............................................................................................ 5
1.5
Project Capacity & Rational................................................................................... 5
1.6
Project Investment ................................................................................................. 6
1.7
Proposed Product Mix ........................................................................................... 6
1.8
Proposed Location ................................................................................................. 6
1.9
Key Success Factors .............................................................................................. 6
Alternative Ma terial ....................................................................................... 6
2.9.1
Regu lar Ma rket Surveys ................................................................................. 6
2.9.2
Pro per Sto rag e............................................................................................... 7
2.9.3
Fu ture Trend s ................................................................................................ 7
2.9.4
1.10 Strategic Recommendations................................................................................... 7
2.10 .1 Marketing ...................................................................................................... 7
2.10 .2 Pricing .............................................................................................................. 7
2.10 .3 Distribution ...................................................................................................... 7
Demography of Pakistan........................................................................................ 8
Population Growth................................................................................................. 8
Housing Sector ...................................................................................................... 8
5. MARKET INFORMATION................................................................. 12
5.1
Market potential................................................................................................... 12
5.2
Competitive Environment .................................................................................... 12
5.3
Allied and Associated Industries .......................................................................... 13
5.4
Demand and Supply Gap ..................................................................................... 13
5.5
Target Customers................................................................................................. 13
5.5.1
Exporters .................................................................................................. 13
5.5.2
Local Users.................................................................................................. 13
5.6 Trade Statistics ........................................................................................................ 14
2
Pre-feasibility Study
Chipboard Plant
Pre-feasibility Study
Chipboard Plant
DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subject matter
and provide a general idea and information on the said area. All the material included in this
document is based on data/information gathered from various sources and is based on certain
assumptions. Although, due care and diligence has been taken to compile this document, the
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 any liability for any financial or other loss resulting from this memorandum in
consequence of undertaking this activity. The prospective user of this memorandum is
encouraged to carry out additional diligence and gather any information he/she feels
necessary for making an informed decision.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
DOCUMENT CONTROL
Document No.
PREF-91
Prepared by
SMEDA-Punjab
Issue Date
April 2006
Issued by
Library Officer
Pre-feasibility Study
Chipboard Plant
2. PROJECT PROFILE
1.1 Opportunity Rational
Due to increase in population and need of constructing new houses it is expected that demand
for chipboard will rise ultimately. Chipboard industry is a growing industry of Pakistan,
which can contribute positively in the GDP. This industry has reasonable potential to attract
new markets abroad by providing high quality board.
Banking policies for housing loans are also playing an important roll in the boost of the
housing sector. The construction style has absolutely changed and demand of chipboard and
laminated board has significantly increased. Afghanistan Development Program after the war
has also contributed in opportunities to enhance considerable export by taking part in the
development of Afghanistan. Construction business is a demanding area. Trade has open for
all the world economies from 2005 and it is visualized that demand will increase more in
future.
1.2 Project Brief
Gluing together wood particles with an adhesive, under heat and pressure makes chipboard.
This creates a rigid board with a relatively smooth surface. Chipboard is available in different
densities i.e. 25mm, 19mm, 8mm, 5mm and 3mm.
One of the most common uses of chipboard is that it is the back piece, which provides
stiffness on a scratch pad. Chipboard is the major input for the furniture industry and also
used for kitchen tops and work surface.
1.3 Market Entry Timings
Pakistan is its way to progress and a numbers of commercial activities are in process.
Housing & construction sectors are declared as industry. With these developments these
sectors are growing drastically. The growth of allied industries is normal practice therefore
demand for chipboard has increased. Local industry is not able to cater the local demand and
every year a considerable quantity of chipboard is imported from different parts of the world
to meet the demand. Therefore it is right time enter into this industrial sector but for high
quality board definitely.
1.4 Business Legal Status
The status of the business should be a corporate entity and it could be either a partnership or a
limited company. However, a private limited company will be the best option.
1.5 Project Capacity & Rational
Total production capacity of plant is 200 m3 per day.
Pre-feasibility Study
Chipboard Plant
Fixed Cost
Initial Working Capital
Total
1.7 Proposed Product Mix
Chipboard in finished form will be available in different sizes i.e. 19mm and 13mm.
However the major demand is for 19mm/SP.Percentage of Product mix for laminated sheets
is:
Table 2-2
19mm
8mm
50%
30%
15%
5%
Pre-feasibility Study
2.9 .3
Chipboard Plant
Proper forecasting for the future needs and planning for the storage of raw material will be
treated as key demand of the project.
2.9 .4 Futu re Trends
Pakistan has faced formidable housing problems from its very birth in August 1947 as an
independent nation in the wake of the mass influx of millions who migrated to the country.
The situation is changing now and many macro and micro construction works are underway
to overcome the backlog of 6.0* million houses in the country, which should be considered a
healthy sign for many industries including chipboard industry1.
1.10
Strategic Recommendations
2.10.1
Marketing
The marketing of the project will be based on the following strong grounds:
It is assumed that by using all above mentioned methods, project will be able to fetch
considerable market share.
2.10.2 Pricing
Chipboard is available with or without lamination. Different rates are charged for both
products. Product will be provided to wholesaler at market prevailing rates, which could be
different on the base of product quality.
2.10.3 Distribu tion
The final product chipboard will directly supplied to wholesaler eliminating role of agencies.
Distribution network of product is illustrated below:
Manufacture
Wholesaler
Retailer
End user
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Chipboard Plant
Demography of Pakistan
The population of Pakistan was 32.5 million in 1947. Over the last fifty-five years, it has
increased by four folds reaching to a figure of 156 Million approximately. It is expected to
172 million marks in the year 2010. The demographic details of Pakistans population are
given below:
Table 3-1
Population in 2005:
Population Density:
Population Growth (percentage):
Population Doubling Time:
Birth Rate:
3.2
156 Million
185/sq. km
2.10%
32 Years
27.3 per 1000 population
Population Growth
At present, the annual population growth rate is around 2.10 percent. Pakistans population
will be twice over in less than 32 years. Punjab is the most thickly populated area and
Karachi is the most densely populated city. Keeping in view the growth rate of population of
the country it is likely that housing requirements will enhance and automatically demand for
the chipboard will increase.
3.3
Housing Sector
The housing and construction sector remained neglected in the past, which resulted in
housing backlog of over 4.3 million units according to 1998 census, which is now projected
to 6.0* million units. The annual additional requirement is estimated round 570,000* housing
units whereas the annual production is estimated around 300,000* housing units, resulting in
a recurring shortfall of 270,000* housing units annually. It is estimated that in order to
address the backlog and to meet the housing shortfall in the next 20 years, the overall housing
2
construction will have to be increased to 0.82 million housing units annually .
According to 1998 Population and Housing Census of Pakistan, there were over 19.3 million
housing units in the country as compared to 12.6 million enumerated in 1980, showing an
increase of 53.2 percent. The details are tabulated in the table appended herewith.
Housing Units
Pre-feasibility Study
Chipboard Plant
Tenure
All Types
Owned
Rented
Rent Free
All Areas
19.3
(100.0)
15.6
Rural
13.1
(100.0)
11.4
Urban
6.2
(100.0)
4.2
(80.8)
(87.1)
(67.6)
1.7
(9.0)
1.9
(10.2)
0.3
(2.3)
1.4
(10.6)
1.4
(23.2)
0.6
(9.2)
On the basis of World Banks recommended occupancy rate of 6 persons per house, the total
number of housing units in the country roughly required was 26 million up to the end of
2005, based on the population of 156 million at present. Every year, 0.3 million new houses
should be added to the existing stock by the public & private sectors. On the other hand, 10
percent houses of the total supply are depleted/destroyed/demolished every year, resulting
into decline in available housing units to 20.0 million housing units leaving a back log of 6.0
million housing units.
The present progress involves construction of approximately 4500 housing units/apartments
in 4 major urban centers of Karachi, Lahore, Islamabad and Peshawar at an estimate cost of
Rs. 5 billion. The execution of this program has been entrusted to the National Housing
Authority. It is estimated that approximately 8,000-10,000 laborers and skilled workers are
working on various projects including more than 5000 professional engineers and architects.
In addition, this has also provided an incentive to the 40 downstream industries including
furniture, cement, steel, electrical industries, piping etc.
* Source: www.pakboi.gov.pk
Pre-feasibility Study
Chipboard Plant
Chipboard and plywood are the major inputs for the furniture industry, which is the biggest
user of chipboard, accounts for approx. 60% of the total demand for the product. The wood
used in furniture making generally comprises Shesham, Chirh, Pine, Oak, Burmah, Teak,
Plywood, Kikar and Bamboos. Recently, chipboard is also extensively used for this purpose,
which is considered a healthy sign for the chipboard industry. Although the quality of
chipboard so far produced in the country has not improved up to the world standard, yet with
the passage of time for products diversified uses, easy to handle, economical and many other
factors, the use of chipboard is likely to increase.
4.4 Construction Agencies
The total world spending on the construction sector in a year is US $ 3.2 trillion against US $
5.2 billion in Pakistan, according to a report compiled by the Lahore Chamber of Commerce
and Industry (LCCI). The growth rate of construction sector in Pakistan which stood at 5.70
percent during the early 1990s, declined to (negative 4.92) percent in 1998-99, but then
recovered to the mark of 5.15 percent in 1999-2000.As per the information mentioned above
it can be envisaged that as the construction sector will improve it will ultimately improve the
chipboard industry positively.
By keeping in view increasing population growth rate, expanding demand and supply gap and
shortfall of 6 million housing units, it is expected that chipboard usage will increase to meet
the shortfall of 6 million housing units.
4.5 Others
These include Interior decoration firms, Railways and other Government Agencies.
Chipboard is demanded by these agencies for a variety of purposes. Small quantities of
chipboard are also in demand for miscellaneous purposes. For instance, bus body makers,
packing firms, film studios, PWD, WAPDA, Municipal Committees and improvement Trusts
etc use it.
4.6 Sub sector Information
Focal points of Chipboard industry are Karachi, Peshawar, Lahore, Rawalpindi, and Hattar.
4.7 Sub Sector Performance
At Present only 10 units are in laminated chipboard manufacturing. Most of these units have
average rated capacity of approximately 30,000 sheets per/month in 3 shifts. But this sector is
also under utilized and could not attain its average capacity.
Following table showing the current position of these units:5
10
Pre-feasibility Study
Chipboard Plant
Table3-3
Name of Units
1. Baluchistan Laminates
2. Sind High Pressure Ltd
3. Pakistan Formica
4. Popular Board
5. Wali Board
6. Pakistan Chip Board
7. Islamabad Board
8. Premier Board
9. Sonni Board
10. Perfect Board
TOTAL
Rated
Capacity
Sheets/
Month
40,000
45,000
10,000
10,000
20,000
30,000
20,000
10,000
30,000
30,000
245,000
Capacity
Attained Gap
Sheets/
Sheets/
Month
Month
25,000
15,000
20,000
25,000
7,000
3,000
5,000
5,000
5,000
15,000
15,000
15,000
10,000
10,000
7,000
3,000
15,000
15,000
7,000
23,000
116,000 129,000
According to the above table, Actual Capacity Utilized is only 47% resulting 53% idle
capacity. Capacity Utilization can be enhanced up to 70% by producing 171,500 Sheets per
month with the existing units and the upcoming units will add approximately 3500 sheets per
month. So, this production can be enhanced up to 175,000 Sheets/Month easily. In spite of
under utilization of working units it is expected that under fair competition with new units,
quality of product will improve and help in reducing imports and enhancing exports of
chipboard.
Availability of raw material is a major cause for under utilization of capacity installed.
However, keeping in view, the growing demand of chipboard, imported raw material could
be used for maximum utilization of the installed capacity. Imported fine raw material will
help in the quality improvement, which may increase export rate. In the open trade era,
production of high quality product could help in achieving the export targets and the sector
will grow accordingly.
4.8 Government Policies
It is high time that government provides the necessary incentives so that this industry may
play its due role in the industrial development of the country. Further, this industry, on
attaining more dimensional growth, with government assistance, may be able to earn the
badly needed foreign exchange through export of its products. A beginning in this regard has
already been made with the export of our furniture to Saudi Arabia and Gulf States.
Government has granted relief to certain industries involved in housing and construction
projects.
In order to boost the Pakistans economy, Construction Sector is being given special
incentives in the shape of reduction in withholding tax from 6% to 1%, which will ultimately
improve the business activities of the down stream industries like furniture, Chipboard, and
Construction material industries as well.
11
Pre-feasibility Study
Chipboard Plant
5. MARKET INFORMATION
5.1 Market potential
Pakistan is facing housing problem since its birth because of the migration of millions of
people from India to Pakistan. However situation is changing now. Many macro and micro
construction works are underway to meet the shortfall of 6.0 million houses both by the
private and public sector, which is a healthy sign for many industries including chipboard
industry.
On the basis of all the factors relating to the growth rate of population, housing industry and
export potential, we can anticipate a reasonable growth rate in demand of the chipboard and
laminated board in coming future. On the basis of the population growth and housing
industry, 6% growth in demand till 2010 is anticipated. The following table is showing the
calculations.
DEMAND PROJECTIONS
Table 5-1
Year
2004-2005
6.993
2005-2006
7.413
2006-2007
7.857
2007-2008
8.328
2008-2009
8.828
2009-2010
9.355
12
Pre-feasibility Study
Chipboard Plant
5.5.1
Exporters
The Pakistan government has been taking a number of steps to give a fillip to export. But
these efforts are mainly restricted to increase the traditional exports of agriculture products
and items being manufactured by big industrial units. These exports are subject to
dordrumism as a result of developing countries like Pakistan. The eleventh September
mishap is a concrete example.
Under such atmosphere, it is necessary that Pakistan should, along with taking steps for
safeguarding our traditional exports from the adverse effects of globalization etc, seek other
avenues to raise its exports. One of these avenues may be the development of our woodwork
and wood based industry, which has started to adopt a scientific approach for its
development.
As a result various items of wooden furniture in new design are in appreciable demand, both
domestically and internationally. Presently, we are exporting to Sri Lanka, Middle East,
Saudi Arabia, Afghanistan and some Gulf States various items of wooden furniture.
5.5.2
Local Users
Domestically chipboard is major input for furniture & housing sector. Other users include
government agencies, WAPDA, PWD, Municipal Committees and improvement Trusts etc .It
is used by bus body makers, packing firms, film studios as well.
Source: * Chipboard Industry falls in an unorganized sector and no proper data is available.
Domestic production is based on information projected by few industrial units and estimation
for the capacity attained. )
13
Pre-feasibility Study
Chipboard Plant
(2000-2002)
Year
Domestic
Imports
Exports
Total Demand
2000-2001
Sheets
Kg.
6,157,875*
246,315,000
4,200
167,460
4,325
172,470
6,159,350
246,320,010
2001-2002
Sheets
Kg.
6,400,075*
256,002,000
5,460
218,400
4,800
192,000
6,400,875
256,028,400
List Of Manufacturer
1.
80
2.
120
3.
120
4.
150
5.
Plyfo Industries
100
6.
100
7.
80
8.
150
9.
150
80
65
80
120
80
15.
100
200
14
Pre-feasibility Study
Chipboard Plant
120
80
200
250
150
80
100
150
80
100
200
300
450
80
150
120
120
120
150
4775
Currently 35 units are manufacturing chipboard in Pakistan but almost all are under utilized.
Underutilizations of capacities are due to various reasons including lack of proper technical
knowledge, availability of raw material and stiff competition etc.
15
Pre-feasibility Study
Chipboard Plant
6. PRODUCTION PROCESS
6.1 General
The chipboard plant is usually designed to operate continuously round the clock. Therefore, it
is assumed that the proposed system will operate in 3 shifts per day, with 300 working days
per year.
Pre-feasibility Study
Chipboard Plant
and unloading of the main press during same operation. The main press is heated with hot oil
by a separate boiler.
The boards are taken out of the unloading devices onto a belt conveyer with scale and
through an automatic thickness meter with measure tolerance of 0.1 mm.
The board weight and thickness will be registered before the board is fed to the cooling
wheel.
6.7 Controls
The raw material in feed system, Knife-Ring Flakers, Dyers and Sifters are all controlled
from a separate indoors control panel. The automatic control of the production line is based
on PLC system. To guarantee maximum performance of the plant it is divided into functional
sections, which are controlled by separate PLC units. The main process parameters are
monitored on a terminal in the main control room in front of the main press.
Process Flow Diagram:
Dryer Section
Refines Section
Chipping Section
Storage Tanks
Screen Section
Storage Tanks
Glue Section
Forming Section
Press
Cooling Section
Cutting Section
17
Sanding Section
Pre-feasibility Study
Chipboard Plant
18
Pre-feasibility Study
Chipboard Plant
7. POJECT PROFILE
7.1
Land Requirement
Minimum 8 acre land is required for the installation of the purposed plant. However an ideal
location must have the easy availability of raw material, manpower, road connections and
other infrastructure facilities. Plot of 8 acres will be sufficient for current and future
requirements of the project.
7.4.2 Power
Power will be arranged through WAPDA. The requirement of power is estimated at 1,500
KW at the proposed and expansion requirement of the project.
7.5 Oil/Lubricants
Furnace oil for dryers and lubricants for the smooth functioning of the machines can be
procured locally.
Pre-feasibility Study
Chipboard Plant
Coniferous Forests
28,000 ha
Scrub Forests
38,000 ha
Range Lands
2,648,036 ha
Irrigated Plantations
150,060 ha
Riverain Forests
58,440 km
32,640 km
Roadside Plantations
11,680 km
2,987 km
16,369 km
In addition to the public sector, forestry resources exist in farmlands both in the form of
woodlots and linear avenues along the field boundaries and Watercourses. According to a
base line survey by Punjab Economic Research Institute (PERI) 1999 there are 20-23 trees
per acre and more than 50 trees per hectare in the cultivated area of the Punjab Province.
There is, however 4-5 times more potential of having trees in the farmlands. It is believed that
90% of fuel wood and 55 % of timber is coming from the farmlands.
The installation of this project will create incentives for farmers of surrounding areas for
forestry. The company could launch a development program in these areas to guide the
farmers and to promote forestry on commercial basis. This will also provide an ongoing
solution for availability of raw material
Pre-feasibility Study
Chipboard Plant
Infrastructure facilities
Availability of labor force
Water resources
21
Pre-feasibility Study
Chipboard Plant
Position
Strength
Salaries/Month
Executive Director
Sales Manager
Senior Managers
Officers
Accounts Officer
Accounts Assistants
Mill Manager
Shift In charge
Supervisors
Purchaser
Skilled Workers
Semi skilled Workers
1
2
2
1
2
1
2
3
1
10
20
75000
25000
30000
8000
10000
5000
30000
15000
12000
8000
5000
3000
Total No of Employees
46
22
Pre-feasibility Study
Chipboard Plant
Project Incharge
Sales &
Marketing Dept.
Project Coordinator
Production Incharge
Marketing
Sampling
Coordinator Buyers
Contract
Evaluation
Finance &
Accounts Dept
Production
Production
Planning
Obtaining
Certificate of
Analyzing
Quality
Assurance
Financial Management
Banking
Sampling
Coordination
Packing
Delivery
Accessories Purchases
Import
Documentation
Documentation
Bookkeeping &
Administration
23
9. FINANCIAL PROJECTION
PROFIT & LOSS ACCOUNT
FOR THE YEAR
Sales
Less Cost Of Sales
389,201,145
355,331,711
442,716,302
400,974,915
464,852,118
419,595,707
525,640,471
471,907,683
551,922,495
494,452,401
33,869,434
41,741,387
45,256,411
53,732,788
57,470,094
14,574,499
15,396,770
97,454
30,068,724
3,800,710
16,091,321
15,511,347
253,468
31,856,136
9,885,251
17,037,850
13,299,654
372,973
30,710,477
14,545,933
18,795,629
11,637,962
582,480
31,016,070
22,716,718
19,931,765
9,506,269
700,801
30,138,836
27,331,257
Income tax
1,946,006
2,213,582
2,324,261
2,628,202
1,299,080
1,854,704
1,854,704
7,671,669
1,854,704
9,526,374
12,221,673
9,526,374
21,748,046
20,088,515
21,748,046
41,836,562
26,032,177
41,836,562
67,868,739
Retained Earning
1,854,704
9,526,374
21,748,046
41,836,562
67,868,739
Pre-feasibility Study
Chipboard Plant
B ALAN C E S H EE T
C AP ITAL AN D LIAB ILITIE S
Year 1
Paid up Capital
R etained Earning
83,389,750
1,854,704
83,389,750
9,526,374
83,389,750
21,748,046
83,389,750
41,836,562
83,389,750
67,868,739
Total E qu ity
85,244,454
92,916,124
105,137,796
125,226,312
151,258,489
83,389,750
62,542,313
41,694,875
20,847,438
53,900,000
11,592,000
97,454
1,946,006
67,535,460
236,169,664
61,300,000
13,186,000
253,468
2,213,582
76,953,049
232,411,486
64,200,000
13,845,000
372,973
2,324,261
80,742,233
227,574,905
72,600,000
15,656,000
582,480
2,628,202
91,466,682
237,540,431
AS S E TS
Year 1
Fixed Assets
Less Depreciation
123,829,500
12,797,550
123,829,500
24,220,965
123,829,500
34,429,973
123,829,500
43,562,833
123,829,500
51,739,895
N et Fixed Assets
111,031,950
99,608,535
89,399,528
80,266,667
72,089,605
6,600,000
4,950,000
3,300,000
1,650,000
31,989,000
45,053,000
755,000
40,740,714
118,537,714
236,169,664
-
36,400,000
51,144,000
859,000
39,449,951
127,852,951
232,411,486
-
38,200,000
53,556,000
902,000
42,217,377
134,875,377
227,574,905
-
43,200,000
60,535,000
1,020,000
50,868,764
155,623,764
237,540,431
-
C urren t Liabilities
Short Term Bank Finance
C reditors And O ther Liabilities
W orkers' Profit Participation Funds
D ividend Payable
T ax payble
76,300,000
16,438,000
700,801
1,299,080
94,737,882
245,996,371
C urren t As sets
T rade Debtors
Stock In Trade
Advances, P repaym ents And O thers
C ash A nd Bank Balances
25
45,400,000
63,537,000
1,071,000
63,898,766
173,906,766
245,996,371
-
Pre-feasibility Study
Chipboard Plant
3,800,710
12,797,550
1,650,000
18,248,260
9,885,251
11,423,415
1,650,000
22,958,666
14,545,933
10,209,008
1,650,000
26,404,941
22,716,718
9,132,861
1,650,000
33,499,578
27,331,257
8,177,062
1,650,000
37,158,320
(4,411,000)
(6,091,000)
(104,000)
(1,800,000)
(2,412,000)
(43,000)
(5,000,000)
(6,979,000)
(118,000)
(2,200,000)
(3,002,000)
(51,000)
778,505
2,900,000
(576,495)
2,020,507
8,400,000
(1,676,493)
900,322
3,700,000
(652,678)
11,000
(53,000)
(755,000)
89,454
19,900,000
19,192,454
1,750,014
7,400,000
(1,455,986)
37,440,714
21,502,680
25,828,446
31,823,085
36,505,641
37,440,714
3,300,000
40,740,714
(20,847,438)
(1,946,006)
(1,290,764)
40,740,714
39,449,951
(20,847,438)
(2,213,582)
2,767,427
39,449,951
42,217,377
(20,847,438)
(2,324,261)
8,651,387
42,217,377
50,868,764
(20,847,438)
(2,628,202)
13,030,001
50,868,764
63,898,766
26
KEY ASSUMPTIONS
Chipboard Plant Production Assumptions:
Maximum Production /Installed Capacity Plant (100%) Sheets m3
Starting Capacity Utilization Chipboard Plant
Annual Growth Rate in Capacity Utilization
Maximum Capacity Utilization for the Project
Working hours per Shift
200
60%
10%
70%
8
Financial Projections:
Project Life
Debt
Equity
Interest on Long term Loan
Debt tenure (Years)
No. of installments per year
Amortization (years)
10 Years
50%
50%
14%
5 Years
2
5
50.0%
30.0%
5.0%
30.0%
Rs. 939
Rs. 861
Rs. 470
Rs. 391
5%
Operating Assumptions:
Days Operational/Year
Days Operational/Month
300
25
Pre-feasibility Study
Chipboard Plant
No of Shifts/day
Cost of Goods Sold Assumptions:
480
5%
21,870,000
9750
5.0%
Rs.13,425,984
5.0%
1.5%
0.25%
Rs.2,500.0
5.0%
5.00%
Rs.7,422,000
Rs.500,000
Rs.2,956,800
10.0%
Rs.100,000
10%
30
10
40
40
30
3
Depreciation Assumptions:
Depreciation Method
Plant & Machinery
Furniture and Fixture
Vehicle
Office equipment
WDV
10%
10%
20%
30%
28