The presentation provides a feasibility study for establishing a ceiling fan manufacturing plant in Bangladesh. It discusses the market potential, identifying a total demand of 10 million ceiling fans annually in Bangladesh. The proposed location for the plant is in Mawna, Gazipur due to its proximity to markets, availability of utilities and manpower. The financial analysis shows that the project has a benefit cost ratio greater than 1 and an internal rate of return of 38.65%, indicating the plant would be a profitable venture. Some challenges identified include risks associated with the project and competition in the market. Recommendations focus on reducing project duration and gaining competitive advantages.

1. Welcome to
Our
Presentation
1

2. PRESENTED BY:
NAME ID PROGRAM
Md.Inzamam-ul-Islam 14105009 BSEEE
Md.Nazmul Hossain 14105042 BSEEE
Md. Monuarul Islam 14105046 BSEEE
Prince Sarker 14307004 BSME
Md.Rabby Hasan 14307005 BSME
2

3. Presentation Topic
Feasibility Study on Ceiling Fan
Manufacturing Plant
3

4. CONTENTS
 Introduction
 Market
 Raw Material
 Process Technology
 Utility
 Location
 Environment Impact
 Investment Cost
 Operational Cost
 Profitability Analysis
 Findings
 Recommendations
 Conclusion
4

5. 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.
5

6. 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.
6

7. PURPOSE OF PROJECT
Mission: Sustainable product for a reasonable price
Vision: “To grow electrical business in our country”
7

8. BACKGROUND
A ceiling fan is a mechanical fan, usually
electrically powered, suspended from
the ceiling of a room, that uses hub-mounted
rotating paddles to circulate air.
 The first ceiling fans appeared in the early 1860s
in the United States. That time steam water used to
rotate fan.
 The electrically powered ceiling fan was invented
in 1882 by Philip Diehl.
8

9. USES OF CEILING FAN
 Cheap air-cooling.
 A ceiling fan provides energy-efficient cooling.
 Ceiling fan can supplement or even replace
conventional air conditioning depending on a
home's location.
 Ceiling fans can make a room feel 4 to 5
degrees Fahrenheit cooler.
9

10. ADVANTAGES OF CEILING FAN
 Fans keep the rooms airy and breezy. They
not just provide coolness but also disallow
stuffiness to set in.
 Reduce the power bill: Fans have an added
advantage over an AC in the cost
department.
 Acts as a backup of your AC.
 One more reason why fans are so necessary
is that they keep insects and flies at bay.
 The low prices are always a big lure.
10

11. PARTS OF A CEILING FAN
11

12. METHODOLOGY
The basis of ceiling fan manufactures
 What is the main concept
 How much land require
 How risk factor and other factor impact on project
Primary data sources are
 Internet
 Company profile
 Publication of Bangladesh Electrical Merchandise
Manufactures Association
12

13. Limitation
Difficulty in accessing latest data of internal operations.
It is difficult to provide customer related information regarding
their service.
Its need much more time and manpower to make a good
feasibility report.
.
13

14. MARKET
 Situational Analysis
 Market Survey
 Characterization of Market
 Demand Forecasting
 Market Planning
14

15. SITUATIONAL ANALYSIS
Number of company 86
Employment 3000
Major Cluster Major Cities
Fan demand 10 million
Local production 9.8 million
Market demand Tk. 120 billion
15

16. MARKET SURVEY
 Total Demand
 Demand in different segments
 Satisfaction with exiting products
 Unsatisfied needs
 Attitudes towards various products
 Socio-economic characteristics of the buyers
16

17. TOTAL DEMAND
 Total demand of ceiling fan is 10 million per
annum
17

18. LIST OF CEILING FAN COMPANY IN
BANGLADESHI MARKET
 National Fan Industry Limited
 Singer Fan Company Ltd
 G.E.C. Bangladesh Ltd.
 Shena Kollyan Songostha
 Taher and Sons
And so on.
18

19. SATISFACTION WITH EXITING PRODUCTS
 Most of the renounce company products are
good.
 There are some small company they produce
low quality fan in low budget.
 Some companies fans are costly.
 People of rural area buy low quality fan in
cheap rate.
19

20. ATTITUDES TOWARDS VARIOUS PRODUCTS
 People of our country always want good
product in reasonable price.
 People like long lasting products.
 Now a days people want artistic product.
 The product should be low current
consumption.
20

21. SOCIO-ECONOMIC CHARACTERISTICS OF THE BUYERS
 Most of the people of Bangladesh are middle
class so they want everything in their
financial range.
 Some people want new design and different
features.
 Longibility is a prime demand.
21

22. CHARACTERIZATION OF THE MARKET
 Effective demand in the past and present
 Breakdown of demand
 Price
 Methods of distribution and sales promotion
 Supply and competition
 Government policy
22

23. RAW MATERIAL
 Type of raw material
 Sources
 Demand
 Supply
 Mode of transportation
23

24. TYPE OF RAW MATERIAL
 Fan Blades.
 Fan Stamping.
 Fan Shaft.
 Fan Capacitor.
 Fan Down Rod.
 Fan Canopies.
 Fan Bearings.
 Copper wire.
24

25. CEILING FAN WE WILL PRODUCE
25

26. SOURCES
 Most of the raw material suppliers found in China
and India.
 Electronics parts we imported from China.
 Some accessories like bearing, shaft, canopy,
designing material will collected from domestic
market.
26

27. 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.
27

28. PROCESS TECHNOLOGY
 Outline of process technology
 Availability and proneness
 Comparative technology
 Level of technology
 Availability of manpower
28

29. UTILITY
 Electricity is must needed for running a
manufacturing plant. We want to setup in
industrial area so easy to get electricity.
 Water also needed. We can use river or
underground water.
 Gas or fuel will need if we run a generator.
29

30. LOCATION
 Proximity to market
 Proximity to port
 Availability of raw material
 Availability of utility
 Availability of skilled technical manpower
30

31. LOCATION CONT.
31
The location of our project can
be in the area of Mawna,
Gazipur. Its already a industrial
area so every utility is available
and transportation system is
good.

32. PROXIMITY TO MARKET
 Gazipur is about the center of Bangladesh and very
close to Dhaka and Savar.
 In Bangladesh the main local markets of ceiling fan
is divisional city and other city.
 It is very easy to cover the local markets.
32

33. AVAILABILITY OF RAW MATERIAL
 Some electronics part is not available in our
country.
 We can collect it from China.
 Some accessories we collect from local
market.
33

34. 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.
34

35. 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.
35

36. 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. 36

37. Items L.C. Total (Taka)
Land (4.5 Acres) 60000000 60000000
Building 10000000 10000000
Machinery 10000000 10000000
Installation 5000000 5000000
Know-how 3500000 3500000
Off.eqpmnt. 1500000 1500000
Pre-oprtive 1000000 1000000
IDLC 6000000 6000000
Total 97000000 97000000
Investment Cost
37

38. OPERATIONAL COST
Items Cost
Raw material 3500000
Utility 800000
Manpower 900000
Maintenance 100000
Overhead cost 200000
Financial charges 500000
Total 6000000
38

39. PROFITABILITY ANALYSIS
Profitability analysis can be measured in various
way. Here we calculated in two way as follows:
 Benefit Cost Ratio (BCR).
 Internal Rate of Return (IRR).
39

40. BENEFIT COST RATIO(BCR)
 BCR can be defined as the ratio of present value of
benefit to the initial investment.
 Benefit cost ratio (BCR) takes into account the
amount of monetary gain realized by performing a
project versus the amount it costs to execute the
project.
 The higher the BCR the better the investment.
40

41. BENEFIT COST RATIO
Investment cost (Taka) 97000000
1st year benefit (Taka) 60000000
2nd year benefit (Taka) 60000000
3rd year benefit (Taka) 60000000
Interest rate 15%
41

42. BC ratio is to be greater than 1. So the business is profitable
business.
42

43. INTERNAL RATE OF RETURN(IRR)
 IRR is the discounted rate at which the net present value
is zero.
 The IRR measures how well a project, capital
expenditure or investment performs over time.
43

44. INTERNAL RATE OF RETURN (IRR)
Investment cost 67200000
1st year benefit 40000000
2nd year benefit 40000000
3rd year benefit 40000000
44

45. THE EQUATION TO FIND OUT IRR IS;
INVESTMENT = SUMMATION OF CT/(1+R)^T
C=CASH FLOW AT THE END OF YEAR T
R=INTERNAL RATE OF RETURN
T=ECONOMIC LIFE OF THE PROJECT
97000000= [ {60000000/(1+R)1 } + {60000000/ (1+R)2} +
{60000000/ (1+R)3} ]
By trial an error say r=37% then
RHS=
[ {60000000/(1+0.37)1 } + {60000000/ (1+0.37)2} +
{60000000/ (1+0.37)3} ]
= 99097245.69
Now, NPV = 99097245.69 - 97000000
=2097245.691 45

46. Say r=38%
RHS=
[ {60000000/(1+0.38)1 } + {60000000/ (1+0.38)2} +
{60000000/ (1+0.38)3} ]
=97814671.74
Now, NPV = 97814671.74 - 97000000
= 814671.74
46

47. SAY R=39%
[ {60000000/(1+0.39)1 } + {60000000/
(1+0.39)2} + {60000000/ (1+0.39)3} ]
= 96560979.05
Now, NPV = 96560979.05 -97000000
= -439020.95
47

48. Now,
814671.74+439020.95
=1253692.69
IRR is,
38+ (814671.74/ 1253692.69) = 38.65%
39 - (439020.95/ 1253692.69) = 38.65%
48

49. FINDINGS
 Project is risky.
 Face political and economical problems.
 Challenges to competitor.
 Need Government help.
49

50. RECOMMENDATION
 Create opportunity field in the market.
 Project duration should reduce.
 Get a competitive advantage.
 Public consciousness for country-made product.
 Trained our personnel and employee for effective
production.
50

51. DO YOU HAVE ANY QUESTION ?
51