Project Profile

4/18/2013

Friends Ice Factory (pvt) Ltd.

Arslan Ibrahim and Shakeel Ahmed

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 Friends Ice Factory (pvt) Ltd.
Project Profile
1)Project Brief:
 Friends Ice Factory (pvt) Ltd.
 Production Capacity of plant is 15 tons per day (250
Blocks).
 Our potential target market is in Rahim Yar Khan such
as Hotels, Restaurant, Fish seller’s and for personnel
use etc.
 The purposed project manufacture ice blocks varying
from 130kg to 150kg in weight.
2) Opportunity Rationales:
Reasons for establishing Ice Factory in Rahim yar
khan.
 Long duration of summer in Pakistan and R.Y.K is South
Punjab hot weather in this area due to Demand is high.
 Now in Pakistan poverty increase so lots of people cannot
afford refrigerators and one main Reason is load shading.
 One other thing increase in restaurants and hotels those
purchase in bulk.

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  In Dist. R.Y.K 60 ice factories exist that produce 46425.6ton during
season.

3) Market Entry Timing:

 Best time to inter in this business in start of April.
 Peak season is mid of April to mid of August.
4) Proposed business legal status:
 The legal status of business is InCorporation.
5) Project capacity and rationale:
 Project have maximum capacity of producing 350
blocks on the basis of 2 shifts of 12 hours.
6) Project investment:
 Total cost of project is 9million,seven lack ,seventy one
thousand and three hundred seventy five.
7) Proposed product mix.
 We produce 300 to 350 ice blocks of weight 130kg to
150kg as solid ice block in peak season and 150 to 200
blocks in off season.
8) Nature of project:
 New project.

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 9) Proposed location and site:
a) Location Of Friends Ice Factory (pvt)Ltd.
 Country: Pakistan.
 Province: Punjab.
 Division: Bahawalpur.
 District: Rahim Yar Khan.
 District: Rahim Yar Khan.
b) Site Of Friends Ice Factory (pvt)Ltd.
 Noray Wali.
 Acre No.112.
 Plot no. 33
 Near unilever Pakistan Abassia Canal, Shahra pakistan
Road.
10) Key Success factor:
 Water level is good and water is sweat.
 Central location that will cover multiple areas.
 High futre demand
 Land is cheap as compare to dari sangi.

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  Transportation facilities.
 Availability of labor.
 Gas availability (for generator).
 Electricity Availability.
 Infrastructure Availability.
 Community attitude is positive.
 Facilities for employees.
 Facilities for plant.
11) Strategies:
In order to sell the ice blocks, we need to develop a chain of
dealers who buy the ice blocks on regular basis. And built a
good relationship with our customers. Our main concentration
is delivery time. Provided good Quality ice Block and become
Market leader.

Annexure 1
Friends Ice Factory Pvt.Ltd.
Estimated cost of land
Sr# Description Area in Unit Cost(Rs) Total Cost (Rs)
Marla’s
1 Land 20 110,000 2,200,000
2 Stamp duty 4%of COL - - 88,000

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 3 Property dealer - - 22,000
Charges1% of COL
4 District Council Fee of - - 66,000
3% of COL
5 Land Development - - 220,000
10% of COL
Total estimated cost of Land 2,596,000
Annexure 2

Friends Ice Factory Pvt.Ltd.

Estimated Cost Of Civil Works
Sr# Description No. Sq.Ft Rs/Sq.Ft Total Cost
1 Office Area 1 240 1100 264,000
2 Machine Room 1 400 700 280,000
3 Main Hall 1 4000 250 1,000,000
4 Free Area 800 - -
5 Boundary wall 1 - - 250,000
Total building 5,440 1,794,000
Cost
Annexure 3
Friends Ice Factory Pvt.Ltd.
Total Estimated cost of Machinery
Sr# Description Qty Cost/Unit Total Amount in
Rs
1 Ammonia Compressor 7x7 1 98,000 98,000
marked Javed, driven wheels and
all lines fitted
2 Ammonia Condenser atmosphere 6 35000 210,000
type with 2" pipe, 1200ft
seamless Grade-1 material pipe

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 3 Electric motor 75 HP, 1450 RFM 1 120,000 120,000
CHINA
4 Brine Tank suitable for 240 Ice 1 100,000 100,000
Cans, 4 mm Pak made sheets,
supported by eagle iron .
5 Cooling Coil V-type 4" pipe & 1 200,000 200,000
1500 ft. pipe 1"
6 4 gauge suction, discharge, oil 1 10,000 10,000
pressure
7 Brine Agitator 18" fan Metal with 1 20,000 20,000
imported shaft and pulley
8 Accumulator for parallel supply 1 30,000 30,000
of Ammonia Pipes for complete
plant.
9 Oil Separator buffer type. 1 20,000 20,000
10 Wood Work for Ice Cans, Tank 240 300 72,000
Cover
11 Ice Cans of 1.5 mm British gauge 240 1,500 360,000
welded size 11" x 22" x 48"
12 Bends, Union, Nipples, Tee, & 1 45,000 45,000
flange different size complete
with Motor Sliding Rail, Motor
Pulley & V-Belt etc.
13 Nut, bolts & washers complete 1 50,000 50,000
with foundation, bolt etc.
14 Blower no. 59 complete with 1 30,000 30,000
pipe line and fittings.
15 Rubber pipes, brass valves. 1 10,000 10,000
16 Water fitting pipes complete. 1 30,000 30,000
17 Electric motors 7.5 H.P (J.E.C. Pak 2 15,000 15,000
made)
18 China Switch Gnus starters and 1 80,000 80,000
switchboard with local cable
complete switchboard open type
etc.
19 Erection and maintenance 1 300,000 300,000

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 Charges for complete plant and
machinery.
Grand total 1,820,000
Friends Ice Factory Pvt.Ltd
Estimated cost of other equipments
Sr# Other Equipment Details Qty Cost/Unit Total Amount
in RS
1 Generator 100 KVA 1 150,000 150,000
2 Transformer 100 KVA 1 350,000 350,000
3 Water Bore Diameter 3”-4” 1 300,000 300,000
Total Equipment cost 800,000

Friends Ice Factory Pvt.Ltd

Estimated cost of furniture and fixture
Sr# Description Qty Cost/Unit Total Amount
1 Tables 4 4,000 16,000
2 Sofa 2 15,000 30,000
3 Chairs 15 1500 22,500
4 Fans 8 2,500 20,000
5 Light 15 350 5,250
6 Telephone 1 7,000 7,000
Total Estimated cost of furniture and fixture 100,750
Friends Ice Factory Pvt.Ltd

Estimated cost of vehical.

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 Sr# Description Qty Cost/Unit Total Amount
1 Suzuki pick-up 1 950,000 650,000
2 Motorcycle(super star) 1 45,000 45,000
Total Vehicle Cost 995,000
Annexure 4
Friends Ice Factory Pvt.Ltd.
Estimated fixed of Project.
Sr# Description Total cost (Rs)
1 Total estimated cost of land 2,596,000
2 Total estimated cost of Civil work 1,794,000
3 Total estimated cost of machinery 1,820,000
4 Total estimated cost of equipment’s 800,000
5 Total estimated cost of Furniture and fixture 100,750
6 Total estimated cost of Vehicle 995,000

7 Pre-production Costs 300,000

Total fixed cost of project 8,405,750

Annexure 4
Friends Ice Factory Pvt.Ltd.
Estimated Cost of Project.

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 Sr# Description Total cost (Rs)
1 Total estimated cost of land 2,596,000
2 Total estimated cost of Civil work 1,794,000
3 Total estimated cost of machinery 1,820,000
4 Total estimated cost of equipment’s 800,000
5 Total estimated cost of Furniture and fixture 100,750
6 Total estimated cost of Vehicle 995,000

7 Financial charges during construction 100,000

8 Pre-production Costs 200,000
Total fixed cost 8,405,750
Net initial working Capital 1,866,492
Total Estimated cost of project 10,272,242

Annexure 5
Friends Ice Factory Pvt.Ltd.
Initial net working capital Requirement;

In Rs
A Current Assets
1 Inventories:
a) Raw material (20 days requirement) 29,333
Total inventory 29,333
2 Advances and deposits 400,000
3 Account receivable 2% of sales revenue 860,625

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 4 Cash 600,000
Total Current Assets 1,889,958

B Current liabilities
Bank borrowing(80% of inventories) 23,466
Net initial working capital 1,866,492

A. Production And Sales:

1). The proposed ice plant has Capacity to produce 15 tons
ice in 2 shifts in a day 12 hour in one shift and producing
300 blocks per day.
 Annual Production of Ice 4500 Tons.
 Annually Produce 90,000 Ice blocks.
 No. of Days Operational 200.
 No. of Days (Peak Season) 150.
 No. of Days (Off-season) 50.
 No. of Hours Per Shift 12.
 No. of Shift Per Day 2.

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  No. of Shift Per Day (Peak Season) 2.
 No. of Shift Per Day (Off-season) 1.
 Weight/Ice Block (In Kgs) 150.
 Maximum Capacity Per Shift (Ice Blocks) 150.
 Maximum Capacity Per Shift (Ice Blocks) Peak Season 150.
 Maximum Capacity Per Shift (Ice Blocks) Off-season 75.
2). Maximum Attainable Capacity in Percentage 100%.
 Maximum Attainable Capacity in Units 48,750.
 Capacity Utilization (1st Year) 85% (2nd) 90% 3rd) 90%.

Annexure-4-A
In units

Year ending 30th September 2013(85%) 2014(90%) 2015(90%)

Production 41,438 43,875 43,875

Opening Inventory 0 0 0

Goods available for sale 41,438 43,875 43,875

Ending inventory 0 0 0

Quantity Sold 41,438 43,875 43,875

Local Sale 100% 41,438 43,875 43,875

3). Price.
 Total Production sold in Domestic Market.
 Selling price with respect to Market.
Sales Revenue:

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 Local sales

In Rupees
Year ending 30th September 2013 2014 2015
Avg Local sale @Rs 600Per block 24,862,800 26,325,000 26,325,000
Total sales revenue 24,862,800 26,325,000 26,325,000

B. Cost of production:
1). Raw material cost:
In Rs
Year ending September 2013 2014 2015
Sr# Items Price In Cost
Rupees
per unit
1 Price Per Kg NACL 8 384,000 403,200 403,200
(Salt) requirement 400
mound annually
2 Compressor Oil Per 15,000 60,000 70,000 70,000
Drum requirement
4drums annually
Total cost of Raw Material 440,000 473,200 473,200

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2). Labor cost:

Category No’s Salary/Mont Annual Cost Rs

h Rs
Foreman 1 20,000 240,000
Machine 1 15,000 180,000
Operator
Labor 5 10,000 600,000

Total 1,020,000

Fringe benefits 204,000

@20%
Total Direct Labor cost 1,224,000

In Rs
Year ending 30thSeptember 2013 2014 2015
Total labor cost 1,224,000 1,285,200 1,349,460

3).Factory Overhead costs:

Fixed cost:

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 Fixed cost In Rs
Sr# Description Annual costs
1 Electricity 100kv@Rs2500 per year 250,000
2 Pre operational expense 100,000
3 Machine maintenance 50%of 150,000
installation charges
4 Communication exp 6%of admin exp 93,600
Total fixed cost 593,600
Variable cost:

Sr# Description In Rs
1 Electricity Rate per unit @Rs 15 3,000,000
monthly average consumtion20,000
units
Total variable cost 3,000,000

In RS
Sr# Year ending 2013 2014 2015
30thSeptember
1 Fixed cost 593,600 593,600 593,600
2 Variable cost 2,550,00 2,700,00 2,700,000

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 0 0
Total cost of over-head 3,143,60 3,293,60 3,293,600
0 0

4).Depreciation Cost:

Sr#. Description In Rs
1 Plant and Machinery @10%(cost Rs 182,000
1,820,000)
2 Building (cost Rs1,794,000)@10% 179,400

3 Furniture and fixture(cost Rs100,750)@10% 10,075

4 Vehicles(cost Rs 995,000)@15% 149,250
Total Depreciation cost 520,725

C. Administrative and general expenses:

a. Administrative Salaries:

Sr# Quantity Types Monthly Annual

salary in Rs cost in Rs
1 2 Security 10,000 240,000
Guard

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 2 1 Accounts 20,000 240,000
Officer
3 2 Driver 10,000 240,000
4 2 Sweeper 5,000 120,000
5 1 Office boy 8,000 96,000
Total Administrative Salaries 936,000

b. General expenses:

Sr# Category Annual cost in Rs

1 Travelling and conveyance 1,000,000
2 Printing and Stationary 400,000
3 Telephone 200,000
4 Property Taxes 250,000
5 Miscellanies 600,000
Total general Expense 2,450,000

Total Administrative and General 3,386,000

Expense(a+b)
Further these expense 10% increase yearly

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 D. Selling Expense:

In Rs
Year ending 30th September 2013 2014 2015
Local selling Expense 8% 1,989,02 2,106,00 2,106,000
4 0
Total selling expense 1,989,02 2,106,00 2,106,000
4 0

Financial plan :
Principle amount= 5,136,121
Life= 10 year
Intrest rate= 10%
Equal amount of principle paid every year= 5,136,121/10
= 513,612.1 RS

Time Loan Principle Intrest In Installment

Rs in Rs
0 5,136,121

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 1 4,622,508.9 513,612.1 513,612.1 1,027,224.2
2 4,108,896.8 513,612.1 462,250.8 975,862.9
3 3,595,284.7 513,612.1 410,889.6 924,501.7
4 3,081,672.6 513,612.1 359,528.4 873,140.5
5 2,568,060.5 513,612.1 308,167.2 821,779.3
6 2,054,448.4 513,612.1 256,806.0 770,418.1
7 1,540,836.3 513,612.1 205,444.8 719,056.9
8 1,027,224.2 513,612.1 154,083.6 667,695.7
9 513,612.1 513,612.1 102,722.4 616,334.5
10 0 5,136,12.1 51,361.2 564,973.3

Annexure 6

Estimated income Statement

In Rs
Year ending September 2013 2014 2015
Sales 24,862,800 26,325,000 26,325,000
Less cost of sales
Raw material 440,000 473,200 473,200
Labor 1,224,000 1,285,200 1,349,460
Manufacturing overhead 3,143,600 3,293,600 3,293,600
Depreciation 520,725 520,725 520,725
Total cost of production 5,328,325 5,636,985 5,701,245
Inventory adjustment 5% 266,416.25 15,433 3,213
Total cost of sales 5,594,741.25 5,652,418 5,704,458
Gross profit 19,268,058.7 20,672,582 20,620,542
Operating Expenses
General and administrative 3,386,000 3,724,600 4,097,060
expenses

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 Selling expenses 1,989,024 2,106,000 2,106,000
Total operating expenses 5,375,024 5,830,600 6,203,060
EBIT 13,893,034.7 14,841,982 14,417,482
Other expenses
Interest 513,612.1 462,250.8 410,889.6
Amortization of pre- 100,000 100,000 100,000
production expense
Total other expense 613,612.1 562,250.8 510,889.6
EBT 13,279,422.6 14,279,731.2 13,906,592.4
Tax 30% 3,983,826.6 4,283,919.3 4,171,977.6
Net profit 9,295,595.2 9,995,811.7 9,734,614.4
Annexure 7
Estimated cash flow statement
In Rs
Year ending end of 2013 2014 2015
30 construction
September
Sources of
funds
EBIT 0 9,295,595.2 9,995,811.7 9,734,614.4
Add back: 0 520,725 520,725 520,725
Depreciation
Total funds 0 9,816,320.2 10,516,537 10,255,339
from
operations
Other
sources:
LT loan 5,136,121 0 0 0

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 ST loan 29,333 0 0 0
Paid up 5,136,121 0 0 0
capital
Total 10,301,575 9,816,320.2 10,516,537 10,255,339
sources of
funds
Application
of funds
Investment 8,105,750 0 0 0
in fixed
assets
Financial 100,000 0 0 0
charges
during
construction
Pre- 200,000 0 0 0
production
expense
Repayment
of :
Long term 0 0 513,612.1 513,612.1
loan
Bank 0 29,333 0 0
borrowings
Financial
charges on:
Long-term 0 513,612.1 462,250.8 410,889.6
loans
Bank 0 2,933.3 0 0

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 borrowing
Payment of:
Taxes 0 0 3,983,826.6 4,283,919.3
Dividends 0 0 0 0
Short term 0 6,000,000 4,000,000 4,000,000
investments
Increase in 429,333 1,132,237 119,755 50,000
current
assets
Total 8,835,083 7,678,115.4 9,079,444.4 9,258,421
application
of fund:
Cash Surplus 1,466,492 2,138,204.8 1,437,092.6 996,918
Cash at the 0 1,466,492 3,604,696.8 5,041,789.4
beginning of
year
Cash at the 1,466,492 3,604,696.8 5,041,789.4 6,038,707.4
end of year
Annexure 8
Estimated balance sheets
In Rs
Year ending End of Operating years
30 constructio
September n
2012 2013 2014 2015
Assets
Current

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 assets:
Cash and 1,466,492 3,604,696. 5,041,789. 6,038,707.
bank 8 4 4
balance
Short term 0 6,000,000 10,000,00 14,000,00
investment 0 0
Accounts 0 621,570 658,125 658,125
receivable
Inventories
Raw 29,333 440,000 473,200 473,200
material
Advances, 400,000 500,000 550,000 600,000
deposits
and
prepayment
s
Total 1,895,825 11,166,26 16,723,11 21,770,03
current 7 4 2
Assets
Fixed
Assets
Fixed Assets 8,105,750 8,105,750 8,105,750 8,105,750
at cost
Less: 0 520,725 1,041,450 1,562,175
accumulate
d
Depreciatio
n
Fixed 8,105,750 7,585,025 7,064,300 6,543,575

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 Assets Net
Intangibles 300,000 200,000 100,000 0
Total assets 10,301,575 18,951,29 23,887,41 28,313,60
2 4 7
Liabilities
and Equity
Current
liabilities
Bank 29,333 0 0 0
borrowings
Taxes 0 3,983,826.6 4,283,919.3 4,171,977.6
payable
Dividend 0 0 0 0
payable
Current 0 513,612.1 513,612.1 513,612.1
maturity
fund
payable
Total 29,333 4,497,438. 4,797,531. 4,685,589.
current 7 4 7
Liabilities
Long term
Debts:
Loan 5,136,121 4,622,509 4,108,897 3,595,285
Total long 5,136,121 4,622,509 4,108,897 3,595,285
term Debt
Equity
Paid up 5,136,121 5,136,121 5,136,121 5,136,121
Capital

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 Retained 0 9,295,595.2 19,291,407 29,026,021
earning
Total equity 5,136,121 14,431,71 24,427,52 34,162,14
6 8 2

Total 10,301,575
liabilities
and equity

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