Project Fisibility Study

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PROJECT FEASIBILITY REPORT OF DYEING UNIT OF INTERSTOFF CLOTHING LIMITED GULSHAN, DHAKA.

INTRODUCTION

The company has existing Woven & Knit Garments, Knitting-Knit Dyeing & Other related Industries and exporting Garments for last 10 years to Europe, USA & Canada successfully.

School Dress is one of the major exporting items which requires T.C. 65/35 dyed fabric and depends on imported Dyed/Finished fabrics. It requires about 40000 yds. every day.

The management feels to set-up own production units considering the following :

(a) Export to Europe can attract GSP benefit up to 12% on FOB value of the Garments if the garments are produced from locally produced fabric.

(b) Buyer’s productivity – currently lead time for obtaining imported fabrics at lest 70 days in each production cycle, local fabric can reduce this lead time to 30 days , thereby enhance the makers ability to complete double production cycle in a year. This reduces the makers overhead and makes him more competitive.

(c) If any problem arises in the fabric, that can be get replaced the same in a very short time and in case of imported fabrics, it is almost impossible to get replacement, causing short shipment or non shipment in schedule time.

TECHNICAL ASPECTS

Product mix and Capacity :

The annual production capacity is designed on the basis of 300 days a year on 3 shift of 8 hours duration each day ad the product mix and capacity will be as under:

(a) Product : 65/35 T.C. Dyed Fabric,

(b) Construction : 110X76 / 45X45 / 58”

(c) Colour : White – 85%, Colour – 15%,

(d) Capacity : 40,000 yds./day

Sourcing : *Yarn – Imported

* Weaving – Local Sub-contract/In-house ( separate project)

* Dyeing-Finishing – In-house

Weaving : The project needs to weave the fabric from imported yarn through local modern shuttle less looms. Have already done a thorough market survey and estimated that Weaving charge will be Tk. 8.00 per yd.

Consumption : Predominantly In-house

Manufacturing Process

Grey Fabric Inspection→ Gas Singeing & Desizing→ Scouring & Bleaching→ Drying Mercerizing→ Drying→ Dyeing→ Washing & Drying→ Finishing→ Sunforizing →Inspection & Rolling→ Delivery

Land and Location:

The project has be...

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Add: opening stock of FG for 10 days ----- 1,43,60 1,43,90 1,44,06

Total goods available for sale 42,65,15 44,60,84 44,66,20 44,71,20

Less opening stock of FG for 10 days 1,43,60 1,43,90 1,44,06 1,44,23

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Total cost of goods sold 41,21,55 43,16,94 43,22,14 43,26,97

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PROJECTED EARNING FORCAST

(Tk. in ‘000)

1st yr 2nd yr 3rd yr. 4th yr.

Sales revenue 52,59,12 52,59,12 52,59,12 52,59,12

Cost of goods sold 41,21,55 43,16,94 43,22,14 43,26,97

Gross Profit 11,37,57 9,42,18 9,36,98 9.32,15

General, Admn. & other expenses

Operating profit

Financial expenses

Net operating profit before tax

Other income

Income tax

Investment

Net profit after investment

Return of investment @ 8.5%

Net profit after RI

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