This presentation provides a feasibility study for a proposed ball pen manufacturing plant in Bangladesh. It discusses the ball pen market, production process, raw materials, costs, profits and viability analysis. The key points are: - The ball pen market in Bangladesh is large with annual demand of 500 million pens and worth 25 billion Taka. Most pens sell for 4-10 Taka. - The production process involves ink compounding, metal/plastic molding, assembly and packaging. Automated technology is proposed. - Raw materials like plastic, metal and ink would be imported from countries like China and India initially. - Locations proposed in Gazipur or Mymensingh industrial areas for their infrastructure and

1. Department of Mechanical
Engineering.
IUBAT: International University of
Business Agriculture and
Technology

2. Presented by:
NAME ID PROGRAM
Md. Sabbir Raza Khan 15107099 BSME
Md. Mustafizur
Rahaman
15107104 BSME
Md. Al Amin Hossain 15107105 BSME
Nadim hossen Rabbani 15107122 BSME
Saifuddin Rakib 15107115 BSME
Rakibul Hasan Rosel 15107113 BSME
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3. Presentation Topic
Feasibility Study on Ball Pen
Manufacturing Plant
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4. Contents
 Introduction
 Market
 Raw Material
 Process Technology
 Utility
 Location
 Environment Impact
 Investment Cost
 Operational Cost
 Profitability Analysis
 Findings
 Recommendations
 Conclusion
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5. Introduction
Definition: A ballpoint pen, also known as
a biro, or ball pen, is a pen that
dispenses ink over a metal ball at its point.
Uses of Ball pen:
 A ball pen is a writing implement.
 Ball pen used to write only.
.
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6. History of Ball pen
 Method of applying ink to paper has existed since the late 19th
century.
 Ballpoint pen was issued on 30 October 1888, to John J. Loud.
 Loud's pen had a small rotating steel ball, held in place by a
socket.
 In British Period Ball pen first arrived in Bangladesh.
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7. Feasibility study of a project
It is a process of studying viability of a project
A feasibility study aims to objectively and rationally
uncover the strengths and weaknesses of an existing
business or proposed venture, opportunities and
threats present in the environment, the resources
required to carry through, and ultimately the
prospects for success.
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8. Why viability study?
 Future is uncertain.
 Projects to be implemented in future so all projects are
uncertain.
 Each project involves an investment.
 The investor wants a return on his investment.
 The lender wants the money back.
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9. Object of this Project
Broad Objective
The main objectives are to improve our theoretical
knowledge to the practical field with adequate
conceptualization and understanding the performance
of the parameters in case of beginning a new project
with the skill of analysis the viability of the project.
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10. Specific Objective
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The specific objectives of this report include:-
• Study on the mechanism of Ball pen.
• Modifying the existing product for eco-friendly environment.
• Identify the different types of problem of existing products and noted
it.
• Providing High power factor products in reasonable price with best
quality.
• We will strive to provide our customers with the largest selection of
ball pen verities.
• To provide the ball pen at approvable customers.
• To satisfy the customer is our priority.
• Deal with honesty and Fairness.

11. Methodology
Both primary and secondary data are being collected for the purpose of
this report:-
 Primary Data: Primary Data are collected from the books about the
project management, how the project be viable and study about the risk of
the new project.
 Secondary data: Secondary data has been collected from the online
resources, Journals and Brochures.
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12. Limitation
There are some limitation of manpower, land and also other
things.
Since visiting cannot be proceed, so some difficulties appear
during collecting information.
Money
.
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13. Market
 Situational Analysis
 Market Survey
 Demand forecasting
 Market planning
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14. Situational Analysis
Number of company 30
Employment 80,000
Major Cluster Major Cities
Ball pen demand 500 million per year
Local production 684 million per year
Market demand Tk. 25 billion per year
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15. Market survey
 Total Ball Pen Demand :
 Price range between TK 4- TK 10 is 80%.
 Price range between TK.10 to above is 20%.
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16. 16

17. Top list of Ball pen Company In
Bangladeshi Market
Matador Ball pen Industries.
Olympic Industries.
Alpha Ball Pen Ind.Ltd.
Janani Ball pen Industries.
Choice Trading Pvt.Ltd.
Nipun Ball pen Industries Ltd.
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18. Conti….
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Matador: 36%
Olympic: 10%
Choice: 3%
Janani: 26%
Alpha: 5%
Others: 26%

19. Raw Material
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20. Sources of Raw Materials
 Plastic granules Imported From
China, India, USA and other
countries.
 Metal imported from China and
some domestic refining source.
 Ink and Chemicals from china, USA.
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21. Ball pan manufacturing Process
Ballpoint pens are made to order in mass quantities. While each
manufacturer makes them slightly different. The basic steps include :-
i. ink compounding,
ii. metal component formation,
iii. plastic component molding,
iv. piece assembly,
v. packaging,
vi. labeling,
vii. and shipping.
In advanced shops, pens can go from raw material to finished product in
less than five minutes.
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22. Types of Ball Pen
 Simple ball Pen.
 Rollerball pens.
 Fisher Space ball Pen.
 erasable ink ball pen.
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23. Manufacturing Technology
 Automatic manufacturing process.
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24. Mode of transportation
 For local market we can use covered van as transportation
medium.
 We can also use our river port.
 For exporting we can use sea port.
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25. Utility
 Electricity is must needed for running a manufacturing
plant. We want to setup in industrial area so easy to get
electricity.
 Gas or fuel will need if we run a generator.
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26. Availability of utility
 To run this plant we need uninterrupted electricity.
 There are some power house in this area so we can get
proper utility.
 There is a four lane highway so its very easy to get
transport facility.
 So it’s a good place to set up a manufacturing plant.
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27. Location of factories
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The location of our project can be in the
area of Mymensingh, Gazipur. Its already a
industrial area so every utility is available and
transportation system is good.

28. Proximity to market
 Gazipur is about the center of Bangladesh and
very close to Dhaka and Savar.
 Mymenshingh is the new devision in our country
and It is near to the capital. So it can also be a
market place.
 It will be very easy to cover the local markets.
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29. Manpower
 Manpower are available but Skilled
technical manpower is hardly available.
 Have to trained few engineers by other
experienced engineer.
 Proper trained engineers are good luck
for a plant.
 Extra cost for the project but give us
more benefit in future.
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30. Environmental Impact
 Every industry has a bad impact on environment.
 We use underground water & it causes water crisis.
 Manufacturing plant pollute air, soil, water.
 It emit Carbone di oxide that increase temperature.
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31. Investment Cost
31
Items Amount(Tk in million)
Land 20
Building 200
Machinery 10
Installation cost 1
Technical know how 2
Taxes and Duties 6
Depreciation 3
Interest during
Construction
5
Total 247

32. Operational cost32
Items Cost (Taka in Million)
Raw materials 200
Utility 83
Manpower 50
Maintenance 10
Depreciation 5
Tax 15
TVC(Television commercial) 20
Total 363

33. Profitability Analysis
Profitability analysis can be measured in various way. Here we
calculated in three way as follows:
B/C Ratio.
IRR( Internal Rate of Return).
Break-even analysis.
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34. Benefit Cost Ratio34
Type Amount(Tk in Million)
Investment 610
Benefit in 1st year 200
Benefit in 2nd year 200
Benefit in 3rd year 200
Benefit in 4th year 200
Benefit in 5th year 200

35. BCR =
𝑇𝑜𝑡𝑎𝑙 𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑏𝑒𝑛𝑒𝑓𝑖𝑡
𝑡𝑜𝑡𝑎𝑙 𝑑𝑖𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑐𝑜𝑠𝑡
=
200
(1+0.17)1+
200
(1+0.17)2+
200
(1+0.17)3+
200
(1+0.17)4+
200
(1+0.17)5
610
(1+0.17)0
=
639.86
610
=1.05
BCR (Benefit Cost Ratio)

36. Payback period36
Payback period=
𝑡𝑜𝑡𝑎𝑙 𝑚𝑜𝑛𝑒𝑦 𝑜𝑟 𝑐𝑎𝑠ℎ 𝑜𝑢𝑡𝑙𝑎𝑦
𝑀𝑜𝑛𝑒𝑦 𝑟𝑒𝑡𝑢𝑟𝑛 𝑜𝑟 𝑐𝑎𝑠ℎ 𝑖𝑛𝑓𝑙𝑜𝑤
=
610
200
=3.05 years

37. Internal Rate of Return(IRR)
37
IRR:-
610 =
200
(1+𝑟)1 +
200
(1+𝑟)2 +
200
(1+𝑟)3 +
200
(1+𝑟)4 +
200
(1+𝑟)5
By trial and error,
Say, r = 18% = 0.18
R.H.S =
200
(1+0.18)1 +
200
(1+0.18)2 +
200
(1+0.18)3 +
200
(1+0.18)4 +
200
(1+0.18)5
= 625.43 slightly greater than L.H.S
NPV = 15.43

38. IRR (con’t..)38
Say, r = 19% = 0.19
R.H.S =
200
(1+0.19)1 +
200
(1+0.19)2 +
200
(1+0.19)3 +
200
(1+0.19)4 +
200
(1+0.19)5
= 611.53 slightly greater than L.H.S
NPV = 1.53
Say, r = 20% = 0.2
R.H.S =
200
(1+0.2)1 +
200
(1+0.2)2 +
200
(1+0.2)3 +
200
(1+0.2)4 +
200
(1+0.2)5
= 598.12 slightly less than L.H.S
NPV = - 11.88

39. IRR (con’t..)39
Say, r = 21% = 0.21
R.H.S =
200
(1+0.21)1 +
200
(1+0.21)2 +
200
(1+0.21)3 +
200
(1+0.21)4 +
200
(1+0.21)5
= 585.20 slightly less than L.H.S
NPV = - 24.8
So, sum of the absolute value = (1.53+11.88) = 13.41
Now, IRR = 19% +
1.53
13.41
= 19% + 0.11% = 19.11%
IRR = 20% -
11.88
13.41
= 20% - 0.89% = 19.11%
As our IRR is 19.11% which is greater than bank loan interest 17%. So we
can easily say that our project is profitable.

40. Break Even Analysis40
Figure: Break Even Analysis

41. Recommendations
By this feasibility study we can understand that ,
this project is socially, economically and technically
viable and can be taken up for implementation.
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42. Have you any question ?
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43. Thank you All
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