Fisibility Study

PROJECT FEASIBILITY REPORT

OF

DYEING UNIT

OF

INTERSTOFF CLOTHING LIMITED

GULSHAN, DHAKA.

INTRODUCTION

The company has existing Woven & Knit Garments, Knitting-Knit Dyeing & Other related Industries and exporting Garments for last 10 years to Europe, USA & Canada successfully.

School Dress is one of the major exporting items which requires T.C. 65/35 dyed fabric and depends on imported Dyed/Finished fabrics. It requires about 40000 yds. every day.

The management feels to set-up own production units considering the following :

(a) Export to Europe can attract GSP benefit up to 12% on FOB value of the Garments if the garments are produced from locally produced fabric.

(b) Buyer's productivity - currently lead time for obtaining imported fabrics at lest 70 days in each production cycle, local fabric can reduce this lead time to 30 days , thereby enhance the makers ability to complete double production cycle in a year. This reduces the makers overhead and makes him more competitive.

(c) If any problem arises in the fabric, that can be get replaced the same in a very short time and in case of imported fabrics, it is almost impossible to get replacement, causing short shipment or non shipment in schedule time.

TECHNICAL ASPECTS

Product mix and Capacity :

The annual production capacity is designed on the basis of 300 days a year on 3 shift of 8 hours duration each day ad the product mix and capacity will be as under:

(a) Product : 65/35 T.C. Dyed Fabric,

(b) Construction : 110X76 / 45X45 / 58"

(c) Colour : White - 85%, Colour - 15%,

(d) Capacity : 40,000 yds./day

Sourcing : *Yarn - Imported

* Weaving - Local Sub-contract/In-house ( separate project)

* Dyeing-Finishing - In-house

Weaving : The project needs to weave the fabric from imported yarn through local modern shuttle less looms. Have already done a thorough market survey and estimated that Weaving charge will be Tk. 8.00 per yd.

Consumption : Predominantly In-house

Manufacturing Process

Grey Fabric Inspection→ Gas Singeing & Desizing→ Scouring & Bleaching→ Drying Mercerizing→ Drying→ Dyeing→ Washing & Drying→ Finishing→ Sunforizing →Inspection & Rolling→ Delivery

Land and Location:

The project has been proposed to be locatednorthern area of Dhaka. Total area of land to be required 2.5 acrs. For land development on an average Tk.60 lacs per acre estimated. Assume that for Gas connection 4" dia gas line is to be drawn from main line and for this purpose L.S. Tk.20 lac has been estimated. Total cost of land including development cost stands at Tk. 170 lac. Detailed particulars of land are in Annexure ....

Building and Civil works :

The building and civil works of the project will include main factory building, maintenance room, laboratory, Office room, raw materials & finished goods godown, store room, generator, boiler house, pump house, security guard rooms, time office, toilet, prayer room, canteen, administrative building, security barrack etc. Total estimated covered area of the building are of 54200 sft. where main factory building is 25000 sft.

The main building will be made of re-inforced frame structure with r.c.c. roof, brick masonry walls, cemented floor, doors, windows etc. In addition, boundary wall, drainage, car parking etc. will need.

Civil Construction

Boundary Wall ; Considering Foundation, 1 Great Beam ( GB), 2 Linter, 6' height, 3' Barbed wire, cost of the boundary wall for 2.00 acre of newly purchased land will be about Periphery 240x2+360x2 = 1200 rft x Tk.200 = Tk.2,40,000

Factory Building

The construction work for factory building considered as 25000 sft. 24' height with iron Tuss roof & cost comes about Tk.1,37,50,000.

Steam, Water and Gas pipe Line

The proposed machinery will require steam, water & Gas connection. So for Pipe & fittings estimated an amount of Tk.15,00,000 for mentioned items including installation charges.

Transportation :

The projects will require 3 tons 2 nos.covered delivery van to deliver finished goods & the costs will come 12,00,000 x 2 = Tk. 24,00,000

Electric Equipment and Cable

Transformer 1000 KVA, Distribution Panel, P.F.I. Panel, Tk. 25,00,000

Different LT cable Tk. 20,00,000

-------------------------------------

Total = Tk. 45,00,000

Security Deposite

Palli Bidduth Samity Tk. 50,000

Titas Gas Tk. 11,50,000

Imported