This document provides an analysis of the feasibility of starting a cable manufacturing business. It covers key areas such as the market analysis, raw materials, production process, costs, profitability analysis and recommendations. The market analysis shows strong current and projected demand for electrical cables in the country. Raw materials would be sourced locally and internationally. The production process uses common cable manufacturing technology. Detailed costs are provided for investment, operation and cash flow projections show the business would be profitable. Some challenges are noted around risks, government support and competing with imports. Overall recommendations are positive subject to addressing the challenges.
4. Introduction
Market
Raw Material
Process Technology
Utility
Location
Environment Impact
Investment Cost
Operation Cost
Profitability Analysis
Recommendations
4
5. Feasibility study
An analysis of the ability
to complete a project successfully,
taking into account legal,
economic,
technological,
scheduling
and other factors
5
6. In the 19th century and early 20th century,
electrical cable was often insulated using
cloth, rubber and paper. Plastic materials are
generally used today, except for high-
reliability power cables
Only import and sell
Now the demand of electrical cable is
increasing
6
7. The basis of low voltage and high voltage
cables are manufactures.
Due to the respect of time cable
manufacturing technology has changed.
7
8. There are various type of cable that’s why it is
difficult to find out that which one is more
necessary.
There are limitation of manpower, land and
also other things
8
11. Total Demand
Production of different company
Satisfaction with exiting products
Unsatisfied needs
Attitudes towards various products
Socio-economic characteristics of the buyers
11
12. Assume that total demand of low voltage
power cable in market 100000 meters per
year
Total demand of high voltage power cable in
market 72000 meters per year
Total demand of low voltage power cable in
market 8334 meters per month
Total demand of high voltage power cable in
market 6000 meters per month
12
13. No Company Name Low voltage High voltage
01 BRB 30000 20000
02 Paradise 35000 20000
03 Others 15000 10000
Total =80000 =50000
13
These productions is for per year
14. Unsatisfied with the existing product
Good quality but high rate
Low rate but too much bad quality
Not long lasting
14
15. As per year
15
No Product Demand Production Unsatisfied needs
01 High
voltage
720000 50000 22000
02 Low
voltage
100000 80000 20000
16. People wants good quality with reasonable
price
Low price but good product
Long lasting
Good looking
16
17. Low income of maximum people
Small house
Demand for high quality cable
17
18. Effective demand in the past and present
Breakdown of demand
Price
Methods of distribution and sales promotion
Supply and competition
Government policy
18
19. Type of raw material
Sources
Demand
Supply
Mode of transportation
19
21. All general equipments can be found all
electronics multinational companies in China,
Japan, India, etc.
Low demand accessory are found in local and
multinational electrical company.
21
22. (General Equipment)
22
No Equipments Demand(Tk)
01 Liquid crystal disk 2000-32000
02 Inverter 2400
03 Ir-sensor 350
04 Button 240
05 Cabble 100
06 Power Supply 650
07 Signal Input 400
08 Speaker 300
09 T-con 2450
10 Tv Stand 250
11 Interface Board 360
12 Inverter Board 1800
23. Local chemical company
Foreign chemical company
Foreign electronic instruments company
23
33. Skilled technical manpower is not available
Have to trained few engineers from abroad
Extra cost for the project but give us more
benefit in future.
33
34. Impact on environment
Pollution level
Impact on human habitation
Impact on agriculture
34
35. Formation of cable CFC
CFC potent greenhouse gas.
Global warming.
35
36. 2 to 3% of the gas escapes after CFC used.
36
37. Home entertainment
Home news
Modern cooking style
Comfortable life
Product idea
Developed knowledge
37
38. Capability of farmer to buy LCD
television.
Knowledge about modern agriculture.
Modern fertilizer
Pesticides
Hybrid seeds
38
39. No Cost name Cost(Tk)
01 Land 2,50,00,000/=
02 Building 1,75,00,000/=
03 Machinery 13,40,00,000/=
04 Taxes and duties 75,00,000/=
05 Installation cost 40,00,000/=
06 Depreciation 25,00,000/=
07 Interest during construction
(IDLC)
12,00,000/=
Total 19,17,00,000/=
39
40. No Cost name Cost(Tk)
01 Raw material 5,50,00,000/=
02 Utility 1,90,00,000/=
03 Manpower 80,00,000/=
04 Maintenance 65,00,000/=
05 Depreciation 12,00,000/=
06 interest 40,00,000/=
Total 9,37,00,000/=
40
41. B/C Ratio
IRR( Internal Rate of Return)
Break-even analysis
Cash flow
41
42. Type Amount
Investment 28,54,00,000/=
Benefit in 1st year 2,00,00,000/=
Benefit in 2nd year 6,00,00,000/=
Benefit in 3rd year 7,00,00,000/=
Benefit in 4th year 9,00,00,000/=
Benefit in 5th year 15,00,00,000/=
Benefit in 6th year 20,00,00,000/=
42