The document provides a feasibility report for establishing a mini flour mill project in Mailsi, Punjab, Pakistan. It analyzes the market situation and potential for a new flour mill. Key points include: Agriculture and flour mills are important to Pakistan's economy. Punjab has many flour mills but none in Mailsi. A new mill could process wheat from the region. A SWOT and PESTEL analysis are included. Financial aspects like capital costs, machinery requirements, and operating costs are presented to assess the project's viability. The conclusion is that Mailsi is well-suited for a new flour mill given local wheat production and demand. Recommendations focus on further analyzing the business model, target market, and financial projections.

2. Feasibility Report
 Presented by
 Mutaher Ahmad
Mini Flour
Mills

3. 1.Introduction
 Agriculture is a very important sector in the economy of Pakistan. Agriculture directly supports
the population of Pakistan and almost accounts for the 27% Gross Domestic Product (GDP) of the
country. Therefore, the flour mills are very important and these are the key driver for the
development of the national economy of the Pakistan. Currently the flour mills business is
inconsistent, as the consistent of the flour mills is depend on the ups and downs of the market. The
days in which the industries are the four times of surplus, then in this situation only the most
heavy mills are capable to stay with this situation.
 The flour mills are the main assets for the Pakistani people because flour is a basic need for every
individual. According to the Pakistan flour mills association there are about 915 flour mills which
are currently working in Pakistan. During the last 60years, there has been a very significant
increase in the milling capacity of Pakistan. At the formation time of Pakistan, Pakistan started the
working with only 19 flour mills, but now 915 flour mills (Registered with the Association)
operating in Pakistan with the daily milling capacity of 77275 M. tones daily.

4.  Punjab is a most important cultivated of wheat province in the Pakistan, so the flour mills are also many
in numbers in this province, there are about 894 public and private flour mills in this province,
unfortunately there is no single flour mill is present in the Mailsi region. Hence, this is the reason we
choose this area for establishing the project of flour mill in the said area.
 Wheat always has been proved a rich part of our agriculture sector especially in our country; where
every person is eat bread. The northern areas they are the most important areas regarding to the wheat as
the maximum capacity of wheat is come from the central Punjab. So the major wheat cultivated area of
wheat is the northern Punjab, which is moved the wheat for flour especially from the Punjab, but the
major part of wheat processing takes place in Rawalpindi. So, the Rawalpindi region is now the surplus
area in wheat milling capacity almost by 450%.
 The said plant will have the facility to produce Maida, Sooji, Atta and bran. So these products will be
sold as per the guidance issued for Food and Civil Suppliers Department (FCSA) of the concerned state.
The same plant can be used to produce for the other purposes including Dal, Rice etc. However, the
current attempt is examined the feasibility and profitability of the processing wheat to produce the
Maida, Sooji, Atta and Bran. The purpose of the flour mills is to convert the wheat into the flour. The
grains of wheat are the seeds of the wheat plant which are able to grow in the many kinds of soil and
also under the different climate conditions.

5.  Objectives of Report:
Hence, the main theme of this report is a complete analysis of the flour milling company in
Mailsi region. So the main objectives of this report are given below.
To analyze the market situation of the flour mills sector, including on the regional and local
bases.
To analyze and to identify the strengths, weaknesses, opportunities and also threats which are
directly linked with the operating of the flour mill in Mailsi regions.
To describe the many stages of the flour milling lifecycles and stability of the project.
For the understanding the two senses of the business function and social services provider
regarding to the project.
For the recommendations for the other flour mills.
Identify the capital investment and provide the cash details for the other flour mills.
For the identification of potential complementary business those are associated with the flour
mills models.
For the exploring of potential synergy among the business flour mills and social interventions.
For the construction of the short-flow flour mills.
To capture the market regarding to the quality of flour.
To introduce the farmers in the region of Mailsi, Kahror Pacca, Dunyapur, and Tibba Sultanpur
for the growing of wheat instead of cannabis and by creating the demand for the regional
production according to the respective areas.

6. 2.Background of Study
The flour has been made & eaten since the prehistoric times of Egyptian era over 6000 years before.
The earliest method which used for producing the flour contains on grinding grain between stones,
which is usually operated by hands. These were named as “hand stones”. A revolution comes in the
process by the advent of “Milestones” over 2,000 years back. In the environment of Pakistan almost
152.5 million people are attached with the agriculture sector and are producing the nearly 32million
tones of wheat. So the wheat is a very important element for the Pakistani people and it is also the
backbone of the agriculture sector of Pakistan.
The most suitable season for this crop is Rabi and this crop is grown on more than 20millions of
acres in Pakistan. The wheat is a main largest crop of Pakistan and cultivated in the 40% area of total
cultivation. According to the survey of agriculture the 80% farmers cultivated this crop in Pakistan.
In the world wheat producing ranking the Pakistan is on seven numbers and the huge production is
cultivated in the Punjab province of Pakistan.
In Pakistan the rollers have challenged to produce up to 24 to 26 million of wheat which cultivated in
Pakistan every year. The Pakistan is not produce for only the purpose of Pakistani people but it also
exported in the other countries to fulfill their needs for wheat. The previous record of Pakistan in
producing the wheat is about 23 to 25 million of wheat per year
There are a total of 950 commercial / large-scale flour mills working in Pakistan. These large-scale
mills have capacity of around 50 – 200 tons/day. Whereas, it is estimated that there are about 700
Mini flour mills those are operating in the Pakistan with a normal capacity of 8 to 25 tons/ day

7. 3.OUTLINE OF
PROJECT  Project/service offered:
 Time frame:
 Project Location:
 Building:
 Water and electricity:
 Management Team and Labor:
 Project structure:
 : Project Capacity:
 Viable Economics Size:
The proposed project is about establishing a
Mailsi Flour Mill Plant. The subject project
is strongly recommended to be established
in the adjoining of the major cities of
southern Punjab including Mailsi, Vehari
and Kahror Pacca with high wheat
production/consumption. The prevalence of
such facility would add economic benefits in
the country and would number of direct and
indirect employment. Moreover features like
low cost & less complexity associated with
installation of Mailsi flour mill makes it
more attractive project as compare to normal
sized flourmill. Currently the project is
being designed /proposed for major cities
with potential wheat production but the
same can be proposed for other cities which
can fulfill input and logistic requirements of
the project

8.  Project/service offered: The main purpose of the project is to produce the flour, processed
in accordance with quality accepted standards. Value addition will be done is shape of
quality processing & standardize packaging. In addition to flour, many by products such as
Maida, Suji, and Choker & Bran etc. can also be prepared through installation of additional
machinery from the said facility.
 Time frame: The proposed project can be established any time due to the high demand.
 Project Location: In Punjab, it is suggested that the said project may be established in Mailsi,
Vehari, Kahror Pacca, and Tibba Sultan-pur.
 Building: A structure at least 30 X 24 X 11 meters will be required to house Mailsi flour mill, which
includes the short-flow mill, a cleaning house, a pre-mix fortification feeder, a flour packer and flour
bag warehouse space, a laboratory, the by-product bran/feed bins and packing unit, and office space.
 Water and electricity: Depending on how dry the wheat is and how much wheat is processed daily,
up to 500 gallons per day may be required to temper the wheat to approximately 12-15% moisture.
 Management Team and Labor: The management team will be comprised of a General Manager and
two shift managers (millers) who will be responsible for the operation of the milling equipment.
 Project structure: The proposed legal structure of the business entity is either sole proprietorship or
partnership.
 Project Capacity: The capacity of the proposed project would be 900 tons (0.9 million kgs) on
annual basis, assuming 300 working days a year, producing 3 tons of flour per day.

9. Flour production process flow:
FLOUR PRODUCTION PROCESS
Cleaning & Storing Washing & Storing Conditioning Gris-ting
MillingPackaging & Dispatching

10. 4.METHODOLOGY:
1.SWOT Analysis:
SWOT Analysis
Strengths
1. World-class quality, service and manufacturing excellence.
2.Has cutting edge technology for washing and cleaning wheat
3. Continuous investment in manpower, capacity increase and extended dealer network.
4. Suppliers include ITC, Olam exports, etc.
5. Good brand visibility through TVCs and print ads
Weaknesses
1.Well-known only in Punjab
2. People cannot associate with the brand.
Opportunities
1. Increase its presence in other parts of Pakistan other than Punjab.
2. Increase exporting its high quality flour.
3. Introduce aata with a new brand name
Threat
1. People don’t prefer ready-made flour.
2.Competitors have flours having higher brand recall

11. 2.PESTELAnalysis:
The word Pestel is stand for: Political, Economic, Sociological, Technological, Environmental,
and Legal. The term of Pestel is using from the last 10 years, but it is the reality that the
establishment of PESTEL is very difficult.
 Political factors: The current Pakistan political environment is not stable as the various parties are
enemies to each other. But the constitution process and the application of public order act are the stale
in Pakistan.
 Economic factors: Economic factors as the exchange rate is a big threat for the Pakistani currency.
Because the Pakistani currency instead of appreciating, continuously is going to depreciate against the
major currencies like as, Dollar ($), British Pound, and Euro etc.
 Socio-culture factors: The population size of the Punjab is very large as compared to the other
provinces in Pakistan. Hence, population is source of labor as well as a market for Pakistani flour
milling’s products. So the high population shows the high opportunity for the Pakistan environment.
 Technical factors: In the current period the technology has recolonized the way of firms to produce
and market their products and communicate with their customers also. The Pakistan flour milling
should on board technologies that can be provide an extra edge for the Pakistani flour mills.
 Ecological Factors: The ecological environment is a source of raw materials for the
Pakistan flour mills, so this must ensure that it will not pollute the environment as it
produces the goods like as maze, meal and flour etc.
 Legal (Legislative) factors: The company must follow the employment act with especially
sections dealing this and with the minimum wages act. The company must create attention towards the
competition act so that it comes not in conflict with flour mills in the country.

12.  Target Market
When it comes to selling wheat flour, there is indeed a wide range of available customers. In
essence, our target market can’t be restricted to just a group of people, but all those who resides
in our target market locations. In view of that, we have conducted our market research and we
have ideas of what our target market would be expecting from us.
5.PROJECT FINANCIALASPECTS:
 PROJECT INPUTS:
Equipment and machinery details:
Description No Price/Unit (Dollar-$) Total Price (PKR) Assuming
$1=100
Mini Flour Production Plant* 1 21,000 2,100,000
Generator with installation 1 500,000
Transformer with installation 1 550,000
Total 3,150,000

13. Other equipment details Qty Cost/Unit Total cost (PKR)
Computer 1 30,000 30,000
Printers 1 15,000 15,000
Fax 1 10,000 10,000
Telephone Sets 2 1500*2 3000
Total 58,000
 Office Equipment Details :
 Human Resource Requirements:
Description- HR Requirement Nos Salary/month Salary/year
Manager 1 35,000 420,000
Technician 1 25,000 300,000
Plant Operators 2 24,000 288,000
Helpers 3 12,000 144,000
Guard 1 6,000 72,000
Driver 1 7,000 84,000
Sweeper 1 5,000 60,000
Total 1,368,000

14.  Vehicle Requirements details:
Vehicle Nos Cost
Vehicle – Shehzor 1 850,000
Registration 3% 25,000
Total cost 875,000
 Land and Building Requirements Details:
Description- land & building Cost/Sq. Ft Area in Sq. ft Total cost
Land 250 3,200 800,000
Office building 1,200 240 288,000
Warehouse 1,100 1,400 1,540,000
Factory 1,600 900 1,440,000
Total 2,628,000
 Furniture and Fixture details:
Description Total Cost
Furniture & Carpeting Requirement 90,000

15. Capital Investment Rs. In actual
Land 800,000
Building/infrastructure 18,28000
Machinery & equipment 3,150,000
Furniture & fixtures 90,000
Office vehicles 875,000
Office equipment 58,000
Pre-operating costs 67,000
Total capital costs 6,868,000
 Total capital requirement:
Working Capital RS. In actual
Equipment spare part inventory 4,7521
Raw material inventory 1,561,300
Upfront insurance payment 197,400
Cash 500,000
Total working capital 2,306,221
Total Investment
9,174,221

16. 6.CONCLUSION:
The conclusion is drawn from this study is that, Pakistan is an agriculture country and it is count in the
most agriculture countries all over the world. Wheat is a major crop in Pakistan which is cultivated in
a huge quantity across the Pakistan. Punjab is the province of Pakistan in which the wheat is cultivated
in large quantity regarding to the other provinces. There is maximum demand and importance of the
flour within Pakistan due to massive population and eating preferences. There are number of flour
mills across the Pakistan and in especially in the Punjab. Hence, Mailsi is a region which is most
suitable to establish a new project of flour mill as there is no four mill in this region. This project will
cover the regions including Mailsi, Kahror Pacca, Vehari, and Dunyapur. So before establishing the
project the SWOT analysis and PESTEL analysis must be practices because these analysis provided
the proper feedbacks that whether you should be established a project or not. Hence, this report will
help out to the investors that how to establish a new project of flour mills and what are the financial
aspects to establish a new project.

17. 7.RECOMMENDATIONS:
The present study is conducted for the establishing a new project on flour mill. There are
certain recommendations that are to be made for those investors who want to do build their
project on flour mills.
o Analyse the ownership and business model.
o Analysis of the amount of the money and other resources that you will require in order
to start and to maintain your business.
o For the development of the target market with the expected sales volume of the project.
o For the exploring of the additional products within the same project.
o For the potential demand, for the production needs and for the stability of the other
products.
o Analysis of a project that whether it will lead the project de velopment or not, and also
the coordination of the business plan with the most interesred parties in the
establishment of a project.
o For the analysis that whether the new business is profitable or not.
o For the refinement of cash flow and for the financial estimation.
o To identify the individual approach in interesting the running of new business.