This document provides an economic analysis for a proposed commercial poultry feed mill called Shamim Feed Mill in Bahawalpur. It estimates the total project cost to be Rs. 585,395,010 which includes land and buildings, plant machinery, laboratory equipment, employee salaries, raw materials, and overhead costs. The projected monthly feed production is 200,000-250,000 bags which is estimated to generate Rs. 460,000,000 in sales revenue per month. Based on the estimated costs and revenues, the annual profit is projected to be Rs. 44,510,000.

2. ECONOMICALANALYSIS
COMMERCIAL POULTRY
FEED MILL
SHAMIM FEED MILL BAHAWALPUR
DR. NAEEM TAHIR
PRESENTED TO:

3. Fixed Assets
Description Dimensions/Area Cost/Unit(Rs) Total Cost(Rs)
Total Land 2acres 20,000,00/acre 40,000,00
Warehouse building (270x250)x2ft=67500Sq.ft 350/ft. 23625000
Plant building (80x60)x5ft.= 9600Sq.ft 350/ft. 3360000
Office building (10x8) x2ft= 160Sq.ft 350/ft. 56000
Laboratory 15x10ft. = 150sq.ft 350/ft. 52500
Total 77410sq.ft 28069500
The fixed capital cost on the initial fixed assets is estimated as follows.
Land and Building

4. Machinery Prices
Description Number Cost/unit (Rs.) Total Cost (Rs.)
Belt Magnetic Separation
Feeder
1 300000 300000
Dust Remover 1 250000 250000
Rotary Distributor 4 200000 800000
Silo capacity 55000tons 12 10000000 120000000
Batching system 1 1000000 1000000
Hammer mill with electric
motor 25
HP
2 250000 500000
Mixer with electric motor20
HP
1 300000 300000
Boiler 1 6000000 6000000
Pellet mill output
capacity(t/h) 15-20
2 1725000 3450000

5. Description Number Cost/unit
(Rs.)
Total Cost (Rs.)
Screw Conveyor 12(800ft.) 1800/ft. 1440000
Vertical Stabilizing and Cooling
Combined Machine
1 451800 451800
Elevatorwithelectric motor 3HP 6(336 ft.) 2400/ft. 806400
Hoppers 5 100000 500000
Vibrating Grading Sieve 2 286000 572000
Bag closer or Sewing machine 2 8000 16000
Eraction & Installation of
machinery (5% of cost of
machinery)
749310
Total Cost of Machinery 139785510
Machinery Prices

6. Laboratory
• Cost of all the laboratory equipments and
chemicals used for evaluation of feed is Rs
20,000,00
• Furniture Rs 50000
Laboratory and Furniture

7. Running Assets
Material Input in
Tons
Cost
(Rs/Kg)
Total Cost
RS
Corn grain 4000 25 100000000
Wheat 400 27 10800000
Rice Broken 800 35 28000000
Fish Meal 100 50 5000000
Corn Gluten 60% 250 40 10000000
Bone Meal 200 22 4400000
Vegetable Oil 2000 100 200000000
L-lysine+ Threonine+ DCP+
Methionine
1000000
Rice Polish 100 21 2100000
Wheat Bran 250 16 4000000
Soyabean Meal 500 65 32500000
Canola Meal 150 35 5250000
Sunflower 300 26 7800000
Total 8000 414850000

8. Human Resources
Employee
Designation
No. of
Employees
Per Head
Salary
Monthly
Salary (Rs.)
Annual Salary
(Rs.)
General Manager 1 60,000 60,000 720000
Production Manager 1 40000 40000 480000
Asst.production
Manager
1 20000 20000 240000
Production supervisor 3 30000 30000 360000
Admin manager 1 30000 30000 360000
Mechanical Foreman 6 15000 90000 204000
Lab Tech. 3 10000 30000 360000
Pallet operator 5 20000 100000 120000
PLC Operator 1 15000 15000 180000
Electrician 4 15000 60000 720000
Guard 6 10000 60000 720000
Peon + Sweeper 8 7500 60000 720000
Total 40 272500 595000 5184000

9. Over head cost
Admin and Marketing
expenses
20,000
Travel and conveyance 15,000
Electricity
Utilities 10000
Total 45000

10. Total Project Cost
Land and Building 28069500
Plant Machinery 139785510
Human Resources Requirement 595000
Laboratory 2000000
Furniture 50000
Raw Material 414850000
Overhead Costs 45000
Total 585395010

11. Output of Shamim Feed mill
Poultry feed
• Broiler feed
• Layer feed
Production capacity of Shamim Feed Mill:
30 tonn per hour
Feed sale of 1 month
2-2.5 lac bags per month
Feed bag 50 kg Cost per bag Total cost
200000 2300 460000000
Total 460000000

12. Profit / Loss
Output – Input = Profit / Loss
460000000-415490000 = 44510,000