Establishing a thorough project profile calls for careful preparation and unambiguous communication. Your project profile will be engaging, orderly, and educational if you use the Project Profile Format. A professionally written project profile is an essential tool for success whether you are overseeing a big metropolitan development or a small community effort.

Here, look at the format of project profile given by Bangladesh Bank.
Bangladesh Bank’s Project Profile Format
Project Profile & Pre-investment Feasibility Report
Table of Contents
2.2 Background of the Project. 9
2.2.1 Dairy Farming in Bangladesh. 9
2.2.2 Guide to Dairy Farming In Bangladesh, and Business Plan. 10
2.2.3 Advantages of Dairy Farming in Bangladesh. 11
2.2.4 Objectives of Dairy Farming in Bangladesh. 11
2.2.5 Steps to Start Dairy Farming in Bangladesh. 12
2.2.6 Recommendations for Successful Operation of Dairy Farming in Bangladesh. 13
2.2.7 Breeds for Dairy Farming in Bangladesh. 15
2.2.8 Types of Dairy Farms in Bangladesh. 15
2.2.9 Feed Requirement for Dairy Farming in Bangladesh. 15
2.2.10 The nutritional contribution of dairy milk in Bangladesh. 16
2.2.11 Potential for Dairy Industry Development in Bangladesh. 16
2.2.12 Policies for dairy production in Bangladesh. 17
2.2.13 Lack of Disease/Parasites Control in Dairy Farming in Bangladesh. 17
2.2.14 Milk Yields and Milk Production per Capita in Bangladesh. 18
.2.15 Potentiality of Renewable Energy Plants (Biogas Plants). 18
2.3 WHAT BAKARAH DAIRY & FEED FARM Will do?. 19
Table of content continued
2.4 Location of the project. 19
4.6 Purchase of Milking Cows. 25
4.11 Raw and Packing Materials. 27
4.12 Production flow chart. 28
4.13 Implementation Schedule. 28
5.2. Usages of the products/services. 29
5.3 User of the products (in detail). 29
5.5 Demand Situation and Demand Forecasting. 31
5.6 Supply Situation and Supply Forecasting (in detail). 32
5.7 Demand Supply Gap (in detail). 34
5.8 Competition and Competitors. 35
Table of content continued
Annexure-1 (a): Assumptions: 39
Annexure-1(b) Cost of the Project & Cost of Finance. 40
Annexure-2(a) Cost of Land. 41
Annexure-2(b) Cost of Land Development & Civil Works. 41
Annexure-2 (c & D) : List of Capital Machinery & Equipment. 42
Annexure-2(e): Cost Milking Cows. 42
Annexure-2(f): Cost of Vehicles. 43
Annexure-2(g): Cost Furniture & Office Equipment. 43
Annexure-2(h): Preliminary expenses. 44
Annexure-3: Calculation of Working Capital 45
Annexure-5: Estimated Income Statement. 46
Annexure-6(a): Cost of Raw Materials. 47
Annexure-6(b) Cost of Finished Products. 48
Annexure-6(c): Salary & Wages. 49
Annexure-6(d): Over-head Costs. 50
Annexure-7(a): Administrative & Selling Expenses. 51
Annexure-7(b): Administrative Salary. 52
Annexure-8(a) Cost of Goods Sold. 53
Annexure-8(b) Break-Even Analysis. 54
Annexure 9: Pay-Back Period. 55
Annexure-10: Estimated Cash-Flow Statement. 56
Annexure-11: Projected Balance Sheet. 57
Annexure-12: Debt-service Coverage Ratio. 58
Annexure-13: Internal Rate of Return (IRR). 59
Annexure-14: Ratio-Analysis. 60
Annexure-15(a): Sensitivity Analysis based on 5% increase in Cost of Goods Sold. 61
Annexure-15(b): Sensitivity Analysis based on 5% Decrease in Cost of Goods Sold. 62
Annexure-16 Contribution to GDP. 63
Annexure-17 Estimated repayment schedule of Term Loan. 64
Project Profile Starts here
1.0 Executive Summary | |||||||||||
1.1 Project Summery: | |||||||||||
1.1.1 | Name of the Project | : | BAKARAH DAIRY & FEED FARM: Modern Dairy Farm & Milk Processing Plant in Bangladesh | ||||||||
1.1.2 | Location of the Project | : | Satpar, Gopalgonj | ||||||||
1.3 | Details of Land | : | a) | Area of land | : | 1.4825 Acre | |||||
b) | Mouza | : | Satpar, Gopalgonj | ||||||||
c) | Encumbrance | : | The project land is free from any kind of encumbrance. | ||||||||
1.4 | Nature of the project | : | The BAKARAH DAIRY & FEED FARM project is a modern dairy farm and milk processing plant established in Bangladesh. Its primary objective is to address the country’s protein and nutrient requirements by producing high-quality milk and dairy products. The project focuses on the production of powdered milk as its main product. | ||||||||
1.5 | Legal Status | : | Proprietorship Company | ||||||||
1.6 | Proprietor | : | Md. Abdul Mannan | ||||||||
1.7 | Annual Production Capacity & Selling Price: | See Anex -6(b) | |||||||||
Item Qnty (Unit) Rate in Tk. Amount (in Tk. ‘000) Milk Powder 3,650 MT 780,000.00 2,847,000 Valuation of Calves 90 Heads 250,000 22,500 Composed Fertilizer 540 MT 25,000 13,500 0 Total Tk: 2,883,000 | |||||||||||
1.8 | Cost of the project | : | (Tk. In ‘000) | ||||||||
Srl. | Cost Items | Sponsors Equity | Bank Equity | Ratio (Sponsor: Bank) | Total Cost | ||||||
1 | Cost of Land | 50,405.00 | 0.00 | 0% | 50,405.00 | ||||||
2 | Building & other Civil works with Land Dev | 8,167.03 | 32,668.10 | 80% | 40,835.13 | ||||||
3 | Machinery and Equipments | 382,046.00 | 1,528,184.00 | 80% | 1,910,230.00 | ||||||
4 | Purchase of Milking Cow | 16,800.00 | 67,200.00 | 80% | 84,000.00 | ||||||
5 | Cost of Vehicles | 1,920.00 | 7,680.00 | 80% | 9,600.00 | ||||||
6 | Furniture, Fixture & Office Equipments | 1,432.60 | 0.00 | 0% | 1,432.60 | ||||||
7 | Preliminary Expenses | 4,500.00 | 0.00 | 0% | 4,500.00 | ||||||
8 | Contingencies | 97,553.26 | 0.00 | 0% | 97,553.26 | ||||||
Total Fixed Cost | 562,823.88 | 1,635,732.10 | 74% | 2,198,555.98 | |||||||
9 | Working capital | 50,775.90 | 118,477.10 | 70% | 169,252.99 | ||||||
Total Cost | 613,599.78 | 1,754,209.20 | 74% | 2,367,808.97 | |||||||
1.9 | Investment Proposal | : | a) | Sponsor’s | : | TK. 613,599,780.00 | |||||||||
b) | Bank | : | Tk. 1,754,209,200.00 | ||||||||||||
i) | Term Loan: | : | Tk. 1,635,732,100.00 | ||||||||||||
ii) | WC Loan (CC) | : | Tk. 118,477,100.00 | ||||||||||||
1.10 | Ratio of Investment | : | Sponsors : Bank:: 26:74 | ||||||||||||
1.11 | Financial Performance: | ||||||||||||||
(Tk. in ‘000) | |||||||||||||||
Particulars | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | ||||||||||
Sales revenue | 1,957,871 | 2,156,455 | 2,301,956 | 2,446,138 | 2,590,289 | ||||||||||
Cost of goods sold | 1,458,454 | 1,621,659 | 1,731,816 | 1,840,691 | 1,949,573 | ||||||||||
Gross profit | 499,417 | 534,796 | 570,140 | 605,447 | 640,716 | ||||||||||
Administration & selling expenses | 8,567 | 9,236 | 9,636 | 10,067 | 10,516 | ||||||||||
Operating profit | 490,850 | 525,560 | 560,504 | 595,380 | 630,200 | ||||||||||
Net profit | 387,907 | 422,617 | 457,561 | 492,437 | 527,257 | ||||||||||
Financial Ratio | |||||||||||||||
Gross profit to sales | 25.51% | 24.80% | 24.77% | 24.75% | 24.74% | ||||||||||
Operating profit to sales | 25.07% | 24.37% | 24.35% | 24.34% | 24.33% | ||||||||||
Net profit to sales (%) | 19.81% | 19.60% | 19.88% | 20.13% | 20.36% | ||||||||||
Break-Even Analysis | 16.48% (Annexure-8b) | ||||||||||||||
Pay-Back Period | 3 years 9 Months (Annexure-9) | ||||||||||||||
Internal Rate of Return (IRR) | 25.56% (Annexure-13) | ||||||||||||||
SWOT Analysis of BAKARAH DAIRY & FEED FARM:
Strengths:
1. Modern infrastructure and equipment: The project boasts state-of-the-art facilities and advanced equipment, enabling efficient milk production and processing.
2. Strong supply chain: The farm has established a robust supply chain network, ensuring a steady and reliable source of milk.
3. Quality control measures: The project places emphasis on maintaining high standards of quality control throughout the milk production and processing stages.
4. Technological advancements: Utilizing modern technologies and techniques enhances productivity and efficiency in milk production and processing.
Weaknesses:
1. Initial investment: Establishing a modern dairy farm and processing plant requires substantial capital investment, which may pose a financial challenge.
2. Dependence on external factors: The project is susceptible to external factors such as weather conditions, disease outbreaks, and market fluctuations, which can impact milk production and profitability.
3. Limited product diversification: Focusing primarily on powdered milk as the main product may limit the range of offerings and market opportunities.
Opportunities:
1. Growing demand for dairy products: Bangladesh’s increasing population and rising disposable incomes present a favorable market for dairy products, including powdered milk.
2. Government support: The government’s initiatives to enhance the dairy sector and promote self-sufficiency in milk production create a supportive environment for the project.
3. Export potential: With the production of high-quality powdered milk, there is potential for the project to explore export opportunities and tap into international markets.
Threats:
1. Competitor presence: The dairy industry in Bangladesh is competitive, with established players already operating in the market, posing a challenge for market penetration.
2. Price fluctuations: Volatility in the prices of raw materials, such as animal feed, can impact the project’s profitability and operational costs.
3. Regulatory constraints: Adhering to strict regulations and compliance requirements related to food safety, hygiene, and environmental standards may pose challenges and additional costs for the project.
Overall, the BAKARAH DAIRY & FEED FARM project benefits from modern infrastructure, strong supply chain capabilities, and quality control measures. However, it faces challenges related to initial investment, external factors, and limited product diversification. The project also has opportunities in a growing market, government support, and export potential. It should remain mindful of competitive pressures, price fluctuations, and regulatory constraints to ensure sustainable growth and success.
2.0 PROPOSED PROJECT
2.1 The Company
a. Name of the Company: BAKARAH DAIRY & FEED FARM
b. Corporate Set-up: The project is a proprietorship company.
- Name of the Project: BAKARAH DAIRY & FEED FARM: Modern Dairy Farm & Milk Processing Plant in Bangladesh
2.2 Background of the Project
2.2.1 Dairy Farming in Bangladesh
The dairy industry in Bangladesh is a rapidly growing sector, with the demand for milk and milk products increasing at a faster rate than the supply. This is due to a number of factors, including the country’s growing population, rising incomes, and increasing awareness of the nutritional benefits of milk.
In 2021, the total milk production in Bangladesh was estimated to be around 10.47 million tons. However, the demand for milk is estimated to be around 17.22 million tons, which means that the country is currently importing around 6.75 million tons of milk powder to meet the demand.
The government of Bangladesh is aware of the need to increase milk production in the country and has taken a number of steps to promote dairy farming. These include providing subsidies to dairy farmers, setting up dairy farms, and providing training to dairy farmers.
The dairy industry in Bangladesh has a number of potential benefits for the country. It can help to improve the nutrition of the population, create jobs, and boost the economy. However, there are also a number of challenges that need to be addressed, such as the lack of access to quality feed and veterinary care, the high cost of production, and the prevalence of diseases.
Despite the challenges, the dairy industry in Bangladesh has a bright future. With the government’s support and the efforts of dairy farmers, the country has the potential to become a major milk producer in the region.
Here are some of the prospects of dairy farming in Bangladesh:
* Increasing demand for milk and milk products
* Government support for dairy farming
* Growing awareness of the nutritional benefits of milk
* Potential to create jobs and boost the economy
Here are some of the challenges that need to be addressed:
* Lack of access to quality feed and veterinary care
* High cost of production
* Prevalence of diseases
Despite the challenges, the dairy industry in Bangladesh has a bright future. With the government’s support and the efforts of dairy farmers, the country has the potential to become a major milk producer in the region.
2.2.2 Guide to Dairy Farming In Bangladesh, and Business Plan
Dairying in Bangladesh is a good source of income for small and marginal farmers. The dairy feeds required for milk production can be met from their limited land resources as most of the milch animals are ruminants and the majority of their food can be derived from forages, coarse roughages, and byproducts not utilized by human beings, without incurring much additional cost. Dairy animals, comprising cows and buffaloes, are the major livestock and hold an important place in the national economy of Bangladesh. Apart from their role in milk production, they contribute a huge quantity of organic manure and it is one of the major inputs in Bangladesh agriculture.
2.2.3 Advantages of Dairy Farming in Bangladesh
- The initial investment in the dairy farming business in Bangladesh is low in comparison to other Industries.
- It is an environment-friendly business.
- The milk product demand is increasing rapidly.
- The milk demand has always increased. Consumption of dairy products is on the rise by vegetarians and non-vegetarians.
- Compared to products from other industries, milk marketing is very easy. There is no requirement for special shops and expenses of marketing are also low for any dairy products.
- The dairy farming business is the only industry where income is guaranteed every month.
2.2.4 Objectives of Dairy Farming in Bangladesh
Starting a dairy farming business is one of the best business ideas in Bangladesh. To start a dairy farming business in Bangladesh you need to employ a big amount of money, and labor, etc., and manage them efficiently. Also, you will have to deal with keeping the cattle healthy because there is a risk of diseases. Normally, dairy in the country is practiced as a part of a crop-livestock farming system with 1 or 2 cows. The average milk production in Bangladesh is less because of the low productivity of dairy animals, and lack of proper care.
In the Mymensingh district in Bangladesh, small and large-scale dairy farms have been increasing day by day. Especially low-income group of people has taken this dairy farming as a profitable business. To establish a plan for dairy development in this region, it is essential to know details about the management practices and performances of different types of dairy breeds in Bangladesh. Thus it requires the following objectives;
i) To estimate the existing status regarding breeding, feeding, housing, milking, milk marketing, and management aspects of small dairy farms.
ii) Also, to compare the productive and reproductive performances of crossbred and indigenous cows reared in small dairy farms.
iii) To find the costs and returns of small dairy farms.
The economics of dairying can be made more profitable business by improving the productivity of dairy cows. The development of this sub-sector can be considered as an important strategy for poverty alleviation which is a main objective of the Government.
2.2.5 Steps to Start Dairy Farming in Bangladesh
Step 1) Research dairy breeds – The common dairy animals are cows, goats (good for a small farm), or water buffalo. Each one has many dairy breeds, and local knowledge is the best way to choose between them. Contact government institutions, and established dairy farms and ask for information to help you make the decision;
- Rule outbreeds that can’t thrive in your climate conditions.
- For each dairy breed, divide annual upkeep cost by annual milk production to find production cost per unit of milk.
- Is there local demand for the milk breed’s based on species
- How much time and money does the dairy farming business take to raise
Step 2) Business Plan and SWOT Analysis (strengths, weaknesses, opportunities, and threats)
To start a dairy farming business in Bangladesh, keep in mind that it’s a business like other businesses. That’s why you must develop a detailed dairy business plan along with a SWOT analysis are crucial for you. It will help you set reasonable expectations for your expenses and production cost; your business plan includes a cash flow plan. So, any kind of business must write a dairy business plan. It comes with almost all the things that your dairy business need, such as;
- Potential management system
- Investment
- Labor
- Human resources
- Places
- Products
- Potential market
Step 3) Consult the Experts
It’s important to consult experts in the dairy business plan and the great resources are the other dairy producers. That’s why attending open houses on dairy farms not only in your area but other parts of the country. Also, you should talk to veterinarians, nutritionists, extension educators, and others that can provide different perspectives on the management of dairy apart from the farmers.
Step 4) Cropping and Feeding Program
Dairy cattle need certain nutrients to support themselves, produce milk, and grow a calf whether you are going to feed a TMR (total mixed ration), graze your cattle, or some combination of both. If these dairy animals are to be raised on the farms then work with a nutritionist to develop rations. As you get started with the dairy business and are building capital, you need to hire laborers to harvest. Then, that makes arrangements with neighbors to share equipment and labor to reduce investment. This is a necessary step for the dairy farming business in Bangladesh.
Step 5) Waste Management Plan
If you’re in the dairy farming business in Bangladesh there will come out a lot of manure. It can be a great resource on the farm is managed and then used properly while this manure is referred to as waste. It will not only allow you to produce more feed but will also allow you to apply more manure to land if you can use a double-cropping system on your farm. Among the alternatives to the direct land application of manure are composting and anaerobic digestion. They will increase the capital investment required to get your dairy started while these options may provide additional revenue and other benefits to your diary.
Step 6) Investment
A dairy farming business requires a large investment. Buying an existing dairy farm makes the business simpler, and also saves money if you’re willing to do some repairs yourself. Whether you plan to buy or start it all yourself, makes sure you’ll have the below facilities;
- Dry, sunny sheds protected from weather and temperature changes
- Milking parlor with stanchions
- Feed storage and manure storage
- Separate living space for calves
- Equipment (including tractors) and equipment storage area
- Well for watering cattle, and also water transport system to tanks in the pasture
- Irrigation system for pasture
Step 7) Market Research
Before starting your dairy farming business in Bangladesh this is one of the important tasks you should do. You should perform thorough research on the potential market so that you can understand the position. You’ll be able to know aftermarket research;
- How much milk it will demand in the future
- You’ll be supplying to individuals
- It’s a company or not
2.2.6 Recommendations for Successful Operation of Dairy Farming in Bangladesh
Bangladesh suffers from an acute shortage of livestock products such as milk, meat, and eggs. Therefore, Bangladesh Government has given priority to dairy development at the farmer’s level to increase the supply of milk from small dairy farms. To achieve a regular income and a more market-oriented production pattern in dairy farming, it is essential to analyze the socioeconomic conditions of dairy farmers and their effects on dairy income in rural Bangladesh. Labor is the primary resource in dairy farming.
Proper labor management is a must for earning profits in dairy farming in the present-day competitive market. The output can serve as an input for a large scale on the evaluation of dairy policy in the country. However, dairy farmers are still facing to take decisions on how best to milk production and how much to produce within their limited resources. Constraints are the barriers coming in the way of successful dairy farming faced by the dairy farmers. Identification of constraints faced by them is very important to make necessary interventions and formulation of strategies for the uplift of smallholder dairy farming.
The important findings for successful dairy farming are given below;
- Most farmers followed the stall feeding system.
- Cross breeder cow’s milk production is 5 times greater than that of natural breeder cows.
- The supply of all vaccines is not sufficient. These are costly also. The vaccine supplied by the government is also effective.
- The recurring cost is higher. So, the cost of production of dairy products is higher if we compare it to the other countries.
- Attract of many diseases is found. Diseases are more severe in the rainy season.
- Also, there is great demand for milk in Dhaka city.
- Farmers know about modern technology but most of the farmers do not use these technologies.
Most of the farmers believe that the dairy farming business is a profitable enterprise and can be more profitable if Government gives support on feed cost, marketing, loan, and management training. The below recommendations can be suggested as broad guidelines for the successful operation of a dairy farm;
- The shortage of feeds and fodder can partially be overcome by introducing the cultivation of HYV fodder. The government and non-government organizations play an important role in disseminating the technology of HYV fodder cultivation in rural areas.
- Veterinary care and services to the farm owners must be strengthened.
- Regular short training program on different management of dairying must be arranged for the farm owners and short-term institutional loans or credit should be given to actual farm owners and to be checked regularly.
- The price of milk must be fixed at a reasonable level and the milk-marketing system must be improved. Milk preservation facilities must be created for the farmer to ensure the marketing of their product.
- Some improvements must be made to communication, power, water supply, and modern storage facilities for dairy products.
- Both the public and the private sectors must introduce some methods to make bank credit available to smallholders on easy terms and through simplified procedures.
2.2.7 Breeds for Dairy Farming in Bangladesh
The Bangladesh farmers have been rearing three categories of cattle they are pure breed, crossbreed, and local. The local breed variety is less prone to diseases and is heat tolerant. In Bangladesh, the best local cattle are available in some selected locations such as Pabna, Sirajganj, Chittagong, and Munshiganj areas. In Pabna and Sirajganj area medium-type cattle are seen as called Pabna cattle.
To develop the production potentialities of the local cattle, some efforts made to crossbreed with different exotic breeds several times in the past. The introduced breeds are Holstein-Friesian, Jersy, Sahiwal, Sindhi, Australian, Sahiwal-Friesian, etc. And, some exotic pure breeds, their crossbreeds, and up-graded cattle are found in the government dairy farms, commercial dairy farms, and in urban and semi-urban areas of Bangladesh.
Cattle breed relatively homogeneous variety within a species having similar appearance and developed by deliberate selection. No specific cattle breed has been established in Bangladesh. Then, with the long natural selection, some improved indigenous varieties of cattle exist in the country. Though, this is results from the centenary selection of better animals for increasing milk production. Improved breed varieties are Pabna Cattle, Red Chittagong, Munshiganj Cattle, and North Bengal Grey Cattle.
2.2.8 Types of Dairy Farms in Bangladesh
There are mainly three types of dairy farms in Bangladesh. These are
- Rural dairies,
- Pocket dairies and
- Metro dairies.
a) Rural dairies – About 68% of rural people get cattle/buffalo and the number of cattle/buffalo per family is 3.5. Some cows per family in a rural area is 1.5 and on average each cow gives about 0.8-liter milk per day.
b) Pocket dairies – Some places in Bangladesh are milk-producing areas are Baghabari of Serajgang district, Munshiganj district, and Tekerhat of Matharipur district, etc.
c) Metro dairies – Metro dairies are developed in urban areas and most of them are small in size. The total food for their cattle at a higher cost but the farming in these areas is profitable because the price of milk in these areas is high. Farmer easily gets training, medicine, and vaccine, etc compare to the rural people and these farmers are more conscious than the farmer of rural area.
2.2.9 Feed Requirement for Dairy Farming in Bangladesh
Livestock is one of the main components of the farming systems that play a vital role in agriculture. The cattle feed available in Bangladesh can be grouped into agro-industrial by-products which include agricultural crop residues such as straws, and sugarcane tops, etc.; by-products from agro-industries like molasses, oil-cakes, pineapple wastes, and shrimp waste, etc.; and milling by-products such as brans. Tree leaves, indigenous grasses, and cultivated fodder contribute to the bulk. The total area for Bhadoi and Rabi fodder is about 6,312 hectares, producing only about 47,000 m tons of fodder crops. It is estimated that about 190,000 m tons of grain are available for livestock feeding, contributing only about 15.7% of the total amount of concentrate feed.
The dairy cow requires mainly five classes of nutrients like energy, protein, minerals, vitamins, and water. Though, lactating cows react immediately to a reduction in the amount or quality of feed by a drop in milk production. The availability of feed and fodder is the main constraint in developing the full potential of the livestock sector. Unless adequate feeding is first provided for, no substantial improvement in milk yield can be achieved.
2.2.10 The nutritional contribution of dairy milk in Bangladesh
It is well known that milk is an ideal food for humans mainly to sustain growth in children, fetal growth in pregnant women, and milk production during lactation. Also, it has been described as nature’s most perfect food. Its main constituents, who supply energy and building materials for the young, are accompanied by several nutrients like minerals, vitamins, and organic compounds.
Cost of feed mainly included expenses on paddy straw, green grass, and concentrate, etc. The purchased feeds were valued based on the average prices paid for the items. Home supplied feeds were also charge based on the average prices prevailing in the market. Only a few owners produced green grass.
2.2.11 Potential for Dairy Industry Development in Bangladesh
The milk production demand is growing at a faster rate than supply because of the rapid increase in population. Then, there is a need to know the existing demand, its growth over time, and the existing supply possibilities. All livestock require food, water, and a suitable environment for survival. Also, recent trials have shown that rapid improvement of the local cattle in the tropics can be attained by cross-breeding, using semen from high-quality animals. Then, such cross-bred animals produce satisfactorily, survive well under the local conditions and have the necessary heat tolerance. There are other factors, which favor livestock production in the tropics.
The capital investment for buildings, etc. need not be as high as in the temperate zones. Only a simple building with a floor and a roof are necessary, as against the expensive building to keep out the cold in temperate countries. Due to the heavy rains that occur throughout the year, and capital cost for irrigation, etc. need not be as high. These all factors help to reduce the costs of milk production.
Among animal products, milk has a high nutritional value. It has all ingredients required by the human body in proper proportions and an easily digestible form. It is essential that this sector, like every other sector of tropical agriculture, must be modernized and made more productive as quickly as possible.
2.2.12 Policies for dairy production in Bangladesh
Economic policies
1. Production policies – The commercial dairy industry growth is constrained by inadequate and irregular supplies and high costs for feed concentrates. The government has given high priority to the Bangladesh dairy industry development to alleviate the serious and growing gap between domestic consumption and production.
2. Marketing structure – Dairy development programs must be adopted on an integrated view, incorporating production enhancement, procurement, processing, and marketing of milk.
To meet the ever-increasing demands for milk follow some points;
1) Through breeding by artificial insemination or natural services. An ideal dairy cow in the present socio-economic situation has the potential of yielding on average 2,500 liters in 290 to 305 days, with an inter-calving period of 13 to 15 months and age at first calving from 28 to 33 months. The application of improved methods of breeding has greatly increased dairy cattle productivity in Bangladesh.
2) The constraint of feeds and fodder is considered the greatest problem facing the dairy cattle development in Bangladesh.
3) The main objective of dairy cattle development in Bangladesh through smallholders is to achieve greater production of milk and meat. Only dairy cattle development can be increased when an assured guaranteed market or an incentive price for the product will be offered. In Bangladesh, the important factor with an adverse effect on dairy production is the lack of a well-organized marketing system, particularly in the case of milk, which is highly perishable. While there is great demand for such products in urban areas, the supply of these products cannot be ensured without an organized marketing system and transport facilities. To ensure fair prices, an efficient and effective marketing system must be developed.
4) Improvements must be made to communication, power, water supply, and modern storage facilities for dairy products.
5) Smallholder dairy production must be encouraged at the village level, where roadside grass and rice straw are available.
6) The public and the private sectors should introduce ways to make bank credit available to smallholders on easy terms and through simplified procedures.
7) Powdered milk imports must be reduced to encourage dairying in Bangladesh. National Milk Development Co-operation should be established.
2.2.13 Lack of Disease/Parasites Control in Dairy Farming in Bangladesh
Diseases and parasites are a main problem for the dairy industry in Bangladesh.
Some diseases like rinderpest, contagious bovine pleuropneumonia, and foot and mouth disease cause high mortality and severe economic loss. Also, the improved varieties of cow breeds like Australian Sabiwal, Hariana, and Friesian need proper medical attention in the tropical environment. Though, the medical facilities are poor at district and Thana level livestock offices. The prices of essential animal drugs are high. A 30% increase in cattle production would be possible if these diseases were properly controlled.
The vaccination program of the Livestock Department is limited because of budgetary constraints. Only in this method will educationists and research and extension workers reach an adequate level of competence for their important task. To increase dairy production in Bangladesh, it is necessary to overcome economic as well as technical constraints. Although livestock research has been neglected in favor of research into crop production, the livestock research that has taken place has thus far focused on technical issues. Also, there is a lack of trained personnel at all levels as well as a lack of training facilities.
2.2.14 Milk Yields and Milk Production per Capita in Bangladesh
On average a Bangladeshi cow is reported to produce approximately 200 kg/year, which is below 30% of the production of an Indian cow. This low milk yield in Bangladesh is due to poor feed resources and low milk productivity, etc.
A comparatively low national milk production and a high population result in a per capita milk production in Bangladesh of about 13 kg/capita/year, which is approximately 16% of the per capita milk production achieved in India.
2.2.15 Potentiality of Renewable Energy Plants (Biogas Plants)
.
An agriculture based country like Bangladesh has huge potentials for utilizing renewable energy (biogas) technologies. According to an estimate “29.7 billion m_ of biogas can be obtained from the livestock of the country which is equivalent to 1.5 million tons of kerosene (which is the principal fuel in the rural areas). Apart from this, it is also possible to get biogas from human excreta, poultry dropping, waste, marine plants etc. If each family of Bangladesh can be associated with a renewable energy (biogas) plant, then only human excreta will give about 10 billion cubic m_ biogas”. According to IFRD – there is potential of about four million biogas plants in our country. The proposed project will set up a biogas plant in near future.
2.3 WHAT BAKARAH DAIRY & FEED FARM Will do?
SAMSUNNAHAR AMZAD AGRO LTD will produce milk to meet the demand situation of country and the world as well.
2.4 Location of the project
The project is located at Satpar, Gopalgonj
3.0 MANAGEMENT ASPECTS
a. Md. Abdul Mannan, the proprietor:
Md. Abdul Mannan is the proprietor of BAKARAH DAIRY & FEED FARM. He is a highly experienced and educated business person with a strong background in the dairy industry. With his expertise and knowledge, Md. Abdul Mannan brings valuable insights and leadership to the company. His years of experience have equipped him with a deep understanding of the dairy sector and the ability to make strategic decisions that drive the success of the business. Under his guidance, BAKARAH DAIRY & FEED FARM is poised to achieve its goals of meeting the country’s protein and nutrient demands while delivering high-quality dairy products to the market.
b. Production Staffs
Category/Designation | No. | Tk./Month | Total Tk”000”./ year |
Manager | 2 | 35,000 | 840.00 |
Veterinary Doctor | 1 | 25,000 | 300.00 |
Quality Controller | 2 | 25,000 | 600.00 |
Supervisor | 2 | 30,000 | 720.00 |
Machine Operator | 6 | 25,000 | 1,800.00 |
Electrician | 1 | 15,000 | 180.00 |
Driver | 3 | 20,000 | 720.00 |
Security Guard | 3 | 15,000 | 540.00 |
Peon/Cleaner | 2 | 12,000 | 288.00 |
Skilled Worker | 21 | 17,000 | 4,284.00 |
Unskilled worker | 12 | 12,000 | 1,728.00 |
Total : | 55 | 1,000,000 | 12,000.00 |
c. Management Staffs
Category | No. | Monthly salary | Annual salary | ||
General Manager | 1 | 80,000 | 960 | ||
Manager Admin. | 1 | 45,000 | 540 | ||
Accountant | 1 | 30,000 | 360 | ||
Purchase Officer | 1 | 25,000 | 300 | ||
Sales Officer | 10 | 20,000 | 2400 | ||
Account Assistant | 2 | 17,500 | 420 | ||
Driver | 1 | 20,000 | 240 | ||
Cleaner/Gardener/Peon | 3 | 12,000 | 432 | ||
Total | 20 | 471,000 | 5652 |
4.0 TECHNICAL ASPECTS
4.1 Land Location-
- Area of land: 1.4825 acres.
- Condition of land: The area is a agri culture Area. The land is also suitable for the project purpose. It is comparatively high, and it is in the flood-free zone. The project site can also be reached by road and waterway. The project site is very close to the main road. There is a wide road to the project site from that main road.
- Land Value (Not exceeding 30% of total project cost):
Per Decimal Tk. 3,40,000.00 Tk. 50,405,000.00
- Location and distance from nearby project: In this area, dairy farming is very much prominent. There is few such type of project nearby this project.
4.2 Infrastructure
- Communication:
The communication network, particularly by road is very good from and to the Project site to any place in the country. The project site is adjacent to the main road. The distance of the Project area from Mirpur Area and Dist. headquarter is only a few km. Through this road, all sorts of motorized transports move daily. Electricity and Tele-communication facility is also available in the project site. All these and others have made the Project site, vis-à-vis the location a unique place for the concerned business.
- Electricity (With Connecting and Required Load and Source):
The site/adjacent area is already blessed with electricity. The required load is 450 KVA, and the source is PBS. For this load and connection up to the project will have no problem as because the project has got the permission for electricity connection from the PBS. Relevant paper has been enclosed herewith.
- Water (with source and cost details):
For the project a water reservoir tank would be made to meet factory, office and other needs. For this purpose, a water storage facility with capacity of 30,000 liters will be constructed, and a deep tube well with submersible pump will be setup.
4.3 Technology
The technology used in powder milk production at BAKARAH DAIRY & FEED FARM involves a series of advanced processes to ensure the production of high-quality powdered milk. Here is a description of the technology involved:
1. Milk Collection and Storage: The project has a well-established system for collecting fresh milk from dairy cows. The milk is carefully stored under controlled temperature conditions to maintain its freshness and prevent bacterial growth.
2. Pasteurization: The collected milk undergoes a pasteurization process, where it is heated to eliminate harmful bacteria and pathogens while preserving the nutritional value of the milk.
3. Separation: The pasteurized milk is then separated into cream and skim milk using centrifugal separators. This process removes a portion of the milk fat, resulting in skim milk with reduced fat content.
4. Concentration: The skim milk is concentrated through evaporation, where water is removed under controlled conditions to increase the milk solids content. This concentrated milk serves as the base for powder milk production.
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5. Drying: The concentrated milk is then transformed into powder form through drying techniques. The most common method used is spray drying, where the milk is sprayed into a hot chamber, allowing the moisture to evaporate quickly and leaving behind fine powder particles.
6. Cooling and Packaging: The powdered milk is cooled and transferred to packaging facilities. The packaging process ensures that the powder is protected from moisture, light, and contaminants, maintaining its quality and shelf life.
7. Quality Control: Throughout the entire production process, rigorous quality control measures are implemented. Regular testing and analysis are conducted to ensure that the powder milk meets the required standards for nutritional content, taste, and safety.
The technology used at BAKARAH DAIRY & FEED FARM incorporates advanced equipment, precise temperature control, and strict hygiene practices to produce powdered milk of high quality and nutritional value. The processes involved aim to maximize efficiency, maintain product integrity, and meet the demands of the market for safe and nutritious dairy products.
4.4 Civil works
- Type of building and specifications of construction, covered
area, estimated cost and development of land require as below:
Sl. No. | Item of building and other civil works | Specification | Size & covered area | Rate in Tk./Sft. | Total Cost (in tk.) | ||
1 | Cow Shed | Prefabricated Pucca | 180’x50’x1 nos. | 9,000 | sft | 1450 | 13,050,000.00 |
2 | Cow Shed (exists) | Prefabricated Pucca | 40’x25’x1 nos. | 1,000 | sft | 1450 | 1,450,000.00 |
3 | Godown | Prefabricated Pucca | 40’x50′ | 2,000 | sft | 1100 | 2,200,000.00 |
4 | Office Room | RCC Pucca | 40’x50′ | 2,000 | sft | 2500 | 5,000,000.00 |
5 | Milking Parlour Shed | prefabricated Pucca | 20’x75′ | 1,500 | sft | 1250 | 1,875,000.00 |
6 | Milk Processing Factory Shed | prefabricated Pucca | 150’x40’x1 | 6,000 | sft | 1750 | 10,500,000.00 |
7 | Cowdung Tank with bio-gas plant | LS | LS | 3,000,000.00 |
8 | Others (boundary, internal road, gate, etc.) | LS | LS | 2,500,000.00 | |||
Sub-total | 39,575,000.00 | ||||||
B | Land development | 148 | decimal | 8,500 | 1,260,125.00 | ||
Total | 40,835,125.00 |
4.5 Plant and machinery
LIST OF CAPITAL MACHINERY | ||||
Sl. No. | Description | Qty | Rate (Tk.) | Amount (TK. ) |
1 | Powder Milk Production line complete set | 1 set | 1,850,000,000.00 | 1,850,000,000.00 |
2 | Milking Parlor | 2 set | 2,500,000.00 | 5,000,000.00 |
3 | Mini cold store and packaging | 1 set | 26,000,000.00 | 26,000,000.00 |
4 | Sub-Station 450kva with electric cables | 1 set | 2,850,000.00 | 2,850,000.00 |
5 | Generator, 250kva, 50kva | 2 set | 3,500,000.00 | 3,500,000.00 |
6 | Deep Tub-well with water treatment plant | 1 set | 3,500,000.00 | 3,500,000.00 |
7 | Mini ETP Plant | 1 set | 4,000,000.00 | 4,000,000.00 |
8 | Equipment for biogas plant | 1 set | 2,500,000.00 | 2,500,000.00 |
9 | Farm Equipment | 5 set | 2,500,000.00 | 12,500,000.00 |
10 | Spit Air Conditioner 3 tons | 4 No.s | 95,000.00 | 380,000.00 |
Total amount | 1,910,230,000.00 |
- Erection and installation:
The machinery and equipment of the project will be installed and commissioned and shall go for trail run by locally available technicians under the direct supervision of local experts and sponsor. The cost of erection including civil, mechanical & electrical installation of the machinery and equipment is estimated as Tk. 75,00,000.00 included with machinery prices.
- Safety provision:
There will be safety provision as required following the standard as required by the Govt. of Bangladesh.
- Waste disposal and treatment: There will be scientific provision for waste disposal and treatment as necessary.
4.6 Purchase of Milking Cows
Required cost of milking cow purchase is as follows-
SL. No. | Particulars | Quantity | Rate (Tk.) | Amount (Tk.) |
1 | Milking Cow with Calves | 150 | 560000 | 84000000 |
Total | 150 | 84000000 |
4.7 Furniture and fixture
The required furniture & fixtures for the project will be as under:
Srl. | Items | Qty | Unit | Rate in Tk. | Total (Tk . ‘000) |
01. | Full Sec. Table | 2 | Nos. | 60,000 | 120.00 |
02. | Table | 4 | Nos. | 25,000 | 100.00 |
03. | Conference Table | 1 | No. | 150,000 | 150.00 |
04. | Front Chair | 12 | Nos. | 5,500 | 66.00 |
05. | High Back Chair | 4 | Nos. | 20,000 | 80.00 |
06. | Chair (Visitor) | 12 | Nos. | 4,500 | 54.00 |
07. | Chair (Wood) | 10 | Nos. | 6,000 | 60.00 |
08. | File cabinet | 6 | Nos. | 35,000 | 210.00 |
09. | Steel Almirah | 2 | Nos. | 28,000 | 56.00 |
10. | Miscellaneous | LS | 20.00 | ||
Sub-Total | 916.00 |
4.8 Office equipment
The required Office equipments for the project will be as under:
SL | Item | Qty | Unit | Rate per Unit | Total (Tk . ‘000) |
1 | Fan (Ceiling) | 6 | Nos. | 3,600 | 21.60 |
2 | Calculator | 10 | Nos. | 500 | 5.00 |
3 | Telephone/Mobile | 10 | No. | 14,000 | 140.00 |
4 | Computer with UPS, printer complete set | 5 | No. | 35,000 | 175.00 |
5 | Life Guird equipment with first aid box | 1 | Lot | 85,000 | 85.00 |
6 | Air Cooler | 2 | Nos. | 45,000 | 90.00 |
Sub-Total | 516.60 |
4.9 Vehicles
Followings are the required vehicles of the project:
Sl. No. | Description | Quantity | Rate (tk.) | Amount (Tk. in ‘000) |
01 | Pick up van 2 Tons | 1 | 2400000 | 2400 |
Covered Van: 5 MT capacity of any standard brand | 1 | 4200000 | 4200 | |
02. | Car (any standard brand, recondition) | 1 | 3000000 | 3000 |
Total cost of Vehicle | 9600 |
4.10 Products
Annual production at 100% capacity utilization:
Item | Qnty | Rate in Tk. | Amount (in Tk. ‘000) | ||
Milk Powder | 3,650 | MT | 780,000.00 | 2,847,000 | |
Valuation of Calves | 90 | Heads | 250,000 | 22,500 | |
Composed Fertilizer | 540 | MT | 25,000 | 13,500 | |
#REF! | Total Tk: | 2,883,000 | |||
4.11 Raw and Packing Materials
Raw Materials will be purchased which is shown in the diagram based on 100% capacity in a year is stated bellow: | ||||
Items | Qty | Unit | Rate in Tk. | Amount (in Tk. ‘000) |
Natural Feed & Medicine for Cows and Calves | 548 | MT | 40,000.00 | 21,900 |
Raw Milk | 23,360 | MT | 60,000.00 | 1,401,600 |
Sub-Total Tk: | 1,423,500 | |||
Packing cost | LS | 284,700 | ||
Transportation | LS | 71,175 | ||
Total Tk: | 1,779,375 |
4.12 Production flow chart
The technologies and process involved in the project are of scientific in nature. However, now a days the technical people working with such technologies and production purpose are available. Locally the process flow chart of the project is as follows:
DeliveryTo Market | Distribution Center | ||||||||
4.13 Implementation Schedule
01. | Sanction of Bank | 1st month | ||||||
02. | Documentation completed | 2nd month | ||||||
03. | Construction of factory building | 3rd month | ||||||
05. | Civil works including office and others completed | 6th month | ||||||
06. | Purchase of machinery | 6th month | ||||||
07. | Erection and installation completed | 9th month | ||||||
08. | Purchase of Cows & normal operation | 12th month | ||||||
Note: It is expected that the project will be completed and put into normal operation | ||||||||
with 12 (Twelve) months from the date of sanction of the Bank. |
5.0 MARKETING ASPECTS
5.1. Products/Services
The products and services offered by BAKARAH DAIRY & FEED FARM cater to the demand for high-quality milk and dairy products in the market. The focus on quality control, modern technology, and customer satisfaction ensures that the offerings meet the nutritional needs and preferences of consumers while supporting the growth and development of the dairy industry in Bangladesh.
5.2. Usages of the products/services
Powdered milk finds extensive use in the food and beverage industry, household consumption, infant formula production, emergency aid, travel, camping, and nutritional supplementation. Its long shelf life, versatility, and convenience make it a valuable dairy product in various contexts and applications.
5.3 User of the products (in detail)
The products of BAKARAH DAIRY & FEED FARM, primarily powdered milk, are used by various consumers and businesses in Bangladesh. The main users of the products can be categorized as follows:
1. Consumers: Individuals and households form a significant consumer base for powdered milk. It serves as a convenient and nutritious alternative to fresh milk, offering an extended shelf life and ease of storage. Consumers use powdered milk for various purposes such as preparing beverages like tea, coffee, or hot chocolate, making desserts, and adding nutrition to their meals.
2. Bakeries and Food Processing Industries: Powdered milk is a key ingredient in the bakery and food processing sectors. Bakeries use it in the preparation of cakes, pastries, bread, and other baked goods to enhance flavor, texture, and nutritional content. Food processing industries incorporate powdered milk in a wide range of products like chocolates, ice creams, confectionery, sauces, and ready-to-eat meals.
Continued Project Profile Format
3. Hotels, Restaurants, and Cafés: The hospitality industry, including hotels, restaurants, and cafés, utilize powdered milk in their food and beverage offerings. It is commonly used for making hot beverages like tea and coffee, as well as in the preparation of various dishes, desserts, and sauces.
4. Catering Services: Catering services that provide meals for events, functions, and institutions often rely on powdered milk for bulk preparation. It helps in meeting the demand for large quantities of milk without the need for extensive refrigeration and storage facilities.
5. Retailers and Wholesalers: Retailers and wholesalers play a crucial role in distributing powdered milk to different markets and consumers. They purchase the products from BAKARAH DAIRY & FEED FARM and supply them to supermarkets, grocery stores, convenience stores, and other retail outlets.
The products of BAKARAH DAIRY & FEED FARM cater to a diverse range of users, including individual consumers, food-related industries, and businesses involved in the distribution of dairy products.
5.4. Target Market
The target market for BAKARAH DAIRY & FEED FARM’s powdered milk can be segmented as follows:
1. Domestic Consumers: The primary target market consists of the domestic consumers in Bangladesh. This includes individuals and families who consume powdered milk as a convenient and nutritious dairy product. The rising population, increasing urbanization, and growing disposable incomes in Bangladesh provide a substantial customer base for the project.
2. Retail and Wholesale Channels: BAKARAH DAIRY & FEED FARM aims to distribute its powdered milk through various retail and wholesale channels. This includes supermarkets, grocery stores, convenience stores, and wholesalers who cater to the demand for dairy products in both urban and rural areas. These channels help reach a wide range of customers, including households, small businesses, and food service providers.
3. Institutional Buyers: The project may also target institutional buyers such as hospitals, schools, and hotels. These entities require a consistent supply of powdered milk for various purposes, including food preparation, catering, and dietary requirements. Establishing partnerships with institutional buyers can provide a stable and sizable customer base.
4. Export Markets: BAKARAH DAIRY & FEED FARM may explore export opportunities to tap into international markets. The project’s focus on producing high-quality powdered milk can make it competitive in the global dairy industry. Target export markets may include neighboring countries or regions with a demand for powdered milk products.
The target market for BAKARAH DAIRY & FEED FARM’s powdered milk encompasses a diverse range of consumers, retail and wholesale channels, institutional buyers, and potential international customers. The project aims to cater to the nutritional needs of the domestic population while exploring opportunities for expansion and growth in both local and global markets.
5.5 Demand Situation and Demand Forecasting
The demand for powder milk in Bangladesh is growing rapidly. This is due to a number of factors, including:
* A growing middle class with more disposable income
* An increasing awareness of the nutritional benefits of milk
* A government policy of promoting dairy production
The demand for powder milk is expected to continue to grow in the coming years. In fact, a recent study by the Bangladesh Dairy Development Board (BDDB) projects that the demand for powder milk will increase by 10% per year over the next five years.
The BDDB has taken a number of steps to meet the growing demand for powder milk. These include:
* Increasing the number of dairy farms
* Providing financial assistance to dairy farmers
* Promoting the use of artificial insemination
These measures have helped to increase the production of milk in Bangladesh. However, the country still imports a significant amount of powder milk. In 2022, Bangladesh imported 1.5 million tons of powder milk, worth $1.2 billion.
The government of Bangladesh is planning to increase the production of milk in the country. This will help to reduce the country’s dependence on imported powder milk. The government is also planning to promote the use of powder milk in various food products, such as biscuits, cakes, and ice cream.
The growing demand for powder milk in Bangladesh presents a number of opportunities for businesses. These businesses can import powder milk, distribute it to retailers, or manufacture food products using powder milk.
The demand for powder milk in Bangladesh is a growing trend. Businesses that are able to meet this demand will be well-positioned to succeed in the future.
Here are some additional details about the demand situation and demand forecasting of powder milk in Bangladesh:
* The demand for powder milk in Bangladesh is currently around 1.5 million tons per year.
* The demand is expected to grow by 10% per year over the next five years.
* The main drivers of demand are a growing middle class with more disposable income, an increasing awareness of the nutritional benefits of milk, and a government policy of promoting dairy production.
* The government of Bangladesh is taking steps to increase the production of milk in the country, which will help to reduce the country’s dependence on imported powder milk.
* The growing demand for powder milk in Bangladesh presents a number of opportunities for businesses. These businesses can import powder milk, distribute it to retailers, or manufacture food products using powder milk.
5.6 Supply Situation and Supply Forecasting (in detail)
The supply situation and supply forecasting of powder milk in Bangladesh is a complex issue. The country has a growing demand for milk, but its production is not keeping pace. In 2019, Bangladesh produced 6.7 million tons of milk, while its demand was 8.1 million tons. This gap is expected to widen in the coming years, as the country’s population continues to grow.
There are a number of factors that are contributing to the milk deficit in Bangladesh. One factor is the low productivity of the country’s dairy cows. The average milk yield per cow in Bangladesh is only 1,000 liters per year, compared to 6,000 liters per year in India and 10,000 liters per year in the United States. Another factor is the lack of investment in the dairy sector. Bangladesh has a very small dairy industry, and there is very little investment in research and development or in modern dairy processing facilities.
The government of Bangladesh is aware of the challenges facing the dairy sector, and it has taken some steps to address them. In 2019, the government launched a dairy development project that aims to increase milk production by 50% by 2025. The project includes measures to improve the productivity of dairy cows, to increase investment in the dairy sector, and to promote the consumption of milk.
The government’s efforts to boost milk production are likely to have a positive impact on the supply situation of powder milk in Bangladesh. However, it is important to note that these efforts will take time to have a significant impact. In the meantime, the country is likely to remain dependent on imports to meet its demand for powder milk.
The following are some of the key challenges that Bangladesh faces in terms of the supply and demand for powder milk:
* Low productivity of dairy cows
* Lack of investment in the dairy sector
* Growing demand for milk
* Limited access to credit for dairy farmers
* High cost of feed and other inputs
* Inadequate infrastructure for milk collection and processing
* Lack of awareness about the benefits of milk consumption
The following are some of the key measures that the government of Bangladesh can take to address these challenges:
* Provide financial assistance to dairy farmers to improve the productivity of their cows
* Invest in research and development to develop new dairy breeds and to improve feed and management practices
* Promote the consumption of milk through public awareness campaigns
* Create a favorable investment climate for the dairy sector
* Improve the infrastructure for milk collection and processing
The government of Bangladesh is committed to addressing the challenges facing the dairy sector. By taking the necessary steps, the government can help to ensure that the country has a sustainable and reliable supply of powder milk to meet the needs of its growing population.
5.7 Demand Supply Gap (in detail)
There is a large demand-supply gap for powder milk in Bangladesh. The country’s annual demand for powder milk is estimated to be around 1.5 million tons, while its annual production is only around 500,000 tons. This gap is being filled by imports, which account for around 80% of the country’s total consumption.
There are a number of factors that have contributed to the widening demand-supply gap for powder milk in Bangladesh. One factor is the country’s growing population. Bangladesh’s population is expected to reach 200 million by 2050, and this will put a strain on the country’s milk supply.
Another factor that has contributed to the demand-supply gap is the rising affluence of Bangladeshis. As people become more affluent, they are demanding more milk and dairy products. This is also putting a strain on the country’s milk supply.
The government of Bangladesh is aware of the demand-supply gap for powder milk and is taking steps to address it. The government has set up a number of dairy farms and is providing subsidies to dairy farmers. The government is also encouraging the import of powder milk.
However, it will take some time for these measures to have an impact on the demand-supply gap. In the meantime, the country will continue to rely on imports to meet its demand for powder milk.
Here are some of the challenges that Bangladesh faces in meeting its demand for powder milk:
* Lack of domestic production: Bangladesh does not have a large dairy industry, so it relies on imports to meet its demand for powder milk.
* High cost of imports: The cost of importing powder milk is high, which puts a strain on the country’s economy.
* Quality concerns: There have been concerns about the quality of imported powder milk, which has led to some consumers boycotting imported products.
The government of Bangladesh is working to address these challenges. The government is encouraging the development of a domestic dairy industry, and it is also working to improve the quality of imported powder milk. However, it will take some time for these efforts to bear fruit.
5.8 Competition and Competitors
The powder milk market in Bangladesh is highly competitive, with a number of major players vying for market share. The main competitors in the market include:
* Lacto
* Nido
* Dano
* Milkvita
* Fresh
* Dutch Lady
* Arla
* Abbott
* Enfamil
* Aptamil
These companies compete on a number of factors, including price, quality, marketing, and distribution. The market is also subject to government regulations, which can impact the competitive landscape.
In recent years, the market has been growing steadily, driven by rising incomes and increasing demand for processed foods. The market is expected to continue to grow in the coming years, with the potential for further consolidation among the major players.
Here is a more detailed overview of the major competitors in the powder milk market in Bangladesh:
* Lacto: Lacto is a Bangladeshi company that was founded in 1963. It is the largest milk producer in Bangladesh and has a strong presence in the powder milk market. Lacto’s products are sold through a network of distributors and retailers across the country.
* Nido: Nido is a brand of powder milk that is owned by Nestlé. Nestlé is a Swiss multinational food and drink company that is one of the largest food companies in the world. Nido is a popular brand of powder milk in Bangladesh and is sold through a network of supermarkets and retailers.
* Dano: Dano is a brand of powder milk that is owned by Danone. Danone is a French multinational food and beverage company that is one of the largest food companies in the world. Dano is a popular brand of powder milk in Bangladesh and is sold through a network of supermarkets and retailers.
* Milkvita: Milkvita is a brand of powder milk that is owned by ACME Dairy. ACME Dairy is a Bangladeshi company that was founded in 1983. Milkvita is a popular brand of powder milk in Bangladesh and is sold through a network of supermarkets and retailers.
* Fresh: Fresh is a brand of powder milk that is owned by Pran. Pran is a Bangladeshi company that was founded in 1981. Fresh is a popular brand of powder milk in Bangladesh and is sold through a network of supermarkets and retailers.
* Dutch Lady: Dutch Lady is a brand of powder milk that is owned by FrieslandCampina. FrieslandCampina is a Dutch multinational dairy company that is one of the largest dairy companies in the world. Dutch Lady is a popular brand of powder milk in Bangladesh and is sold through a network of supermarkets and retailers.
* Arla: Arla is a brand of powder milk that is owned by Arla Foods. Arla Foods is a Danish multinational dairy company that is one of the largest dairy companies in the world. Arla is a popular brand of powder milk in Bangladesh and is sold through a network of supermarkets and retailers.
* Abbott: Abbott is an American multinational healthcare company that is one of the largest healthcare companies in the world. Abbott has a presence in the powder milk market in Bangladesh and sells its products through a network of distributors and retailers.
* Enfamil: Enfamil is a brand of powder milk that is owned by Mead Johnson Nutrition. Mead Johnson Nutrition is an American multinational food and beverage company that is one of the largest food companies in the world. Enfamil is a popular brand of powder milk in Bangladesh and is sold through a network of supermarkets and retailers.
* Aptamil: Aptamil is a brand of powder milk that is owned by Danone. Danone is a French multinational food and beverage company that is one of the largest food companies in the world. Aptamil is a popular brand of powder milk in Bangladesh and is sold through a network of supermarkets and retailers.
The powder milk market in Bangladesh is a dynamic and competitive market. The major players in the market are constantly innovating and introducing new products in order to stay ahead of the competition. The market is also subject to government regulations, which can impact the competitive landscape.
5.9 Distribution Channel
The proposed products of the project will be marketed by using mainly the following channels of distribution:
The sponsors will appoint/engage distributor/ agents to sell the project’s products to agents, whole sellers & consumers directly from the project site.
The project will also have its own sales center to distribute the products to agents, whole sellers & consumers directly.
5.10 Promotion
The marketing strategy of the project is to create awareness of its product among its customers by an aggressive advertisement through mass media such as newspaper, television, radio etc. They may also publish leaflets or various types of stickers to make consumers attraction about product quality and price. By all means, all efforts will be exercised to ensure quality products and to uphold uninterrupted supply of product in order to maintain the supremacy over the market as quality product producer.
6.0 FINANCIAL ASPECTS
Annexure-1 (a): Assumptions:
1. | At 100% capacity raw materials the cost of Raw materials has been estimated as: | |||||||
Tk. | 1423500000 | per year | ||||||
2. | For producing, capacity utilization has been assumed at 70%, 75%, 80%, 85% and 90% during the initial 5 operating years of the project. | |||||||
3. | The selling price of Produced Goods has been estimated as: | |||||||
Poder Milk | : | Tk. | 780,000.00 | per MT | ||||
Valuation of Calves | : | Tk. | 250,000 | per pcs | ||||
Composed Fertilizer | : | Tk. | 25,000 | per MT | ||||
4. | Cost for spares has been considered @ 1%, 1.5%, 2%, 2.5% & 3% on value of machinery from 1st to 5th year respectively. | |||||||
5. | Cost for repair & maintenance of machinery has been estimated at @ 1%, 1.5%, 2.0%, 2.5% & 3.0% in 1st, 2nd, 3rd, 4th & 5th year respectively. | |||||||
6. | For building it has been estimated @ 2% of civil cost for each year. For vehicle it has estimated @ 2% of cost for each year. | |||||||
7. | Based on straight line method the depreciation has been calculated @ 5% on Building & other Civil works, 10% on Machinery and Equipment, 10% on Furniture, Fixture & Office Equipment and 15% on Vehicle. |
Annexure-1(b) Cost of the Project & Cost of Finance
(Tk. ‘000’)
Srl. | Cost Items | Sponsors Equity | Bank Equity | Ratio (Sponsor: Bank) | Total Cost |
1 | Cost of Land | 50,405.00 | 0.00 | 0% | 50,405.00 |
2 | Building & other Civil works with Land Dev | 8,167.03 | 32,668.10 | 80% | 40,835.13 |
3 | Machinery and Equipment | 382,046.00 | 1,528,184.00 | 80% | 1,910,230.00 |
4 | Purchase of Milking Cow | 16,800.00 | 67,200.00 | 80% | 84,000.00 |
5 | Cost of Vehicles | 1,920.00 | 7,680.00 | 80% | 9,600.00 |
6 | Furniture, Fixture & Office Equipment | 1,432.60 | 0.00 | 0% | 1,432.60 |
7 | Preliminary Expenses | 4,500.00 | 0.00 | 0% | 4,500.00 |
8 | Contingencies | 97,553.26 | 0.00 | 0% | 97,553.26 |
Total Fixed Cost | 562,823.88 | 1,635,732.10 | 74% | 2,198,555.98 | |
9 | Working capital | 50,775.90 | 118,477.10 | 70% | 169,252.99 |
Total Cost | 613,599.78 | 1,754,209.20 | 74% | 2,367,808.97 |
Annexure-2(a) Cost of Land
Srl. | Description | Amount (Tk. in ‘000) | |||
01. | Value of Land including registration cost | 50,405 | |||
Area | 1.4825 | Acres | |||
148.25 | decimal | ||||
Value | 340000 | @ per decimal including registration | |||
TOTAL | 50,405 |
Annexure-2(b) Cost of Land Development & Civil Works
Sl. No. | Item of building and other civil works | Specification | Size & covered area | Rate in Tk./Sft. | Total Cost (in tk.) | ||
1 | Cow Shed | Prefabricated Pucca | 180’x50’x1 nos. | 9,000 | sft | 1450 | 13,050,000.00 |
2 | Cow Shed (exists) | Prefabricated Pucca | 40’x25’x1 nos. | 1,000 | sft | 1450 | 1,450,000.00 |
3 | Godown | Prefabricated Pucca | 40’x50′ | 2,000 | sft | 1100 | 2,200,000.00 |
4 | Office Room | RCC Pucca | 40’x50′ | 2,000 | sft | 2500 | 5,000,000.00 |
5 | Milking Parlour Shed | prefabricated Pucca | 20’x75′ | 1,500 | sft | 1250 | 1,875,000.00 |
6 | Milk Processing Factory Shed | prefabricated Pucca | 150’x40’x1 | 6,000 | sft | 1750 | 10,500,000.00 |
7 | Cowdung Tank with bio-gas plant | LS | LS | 3,000,000.00 | |||
8 | Others (boundary, internal road, gate, etc.) | LS | LS | 2,500,000.00 | |||
Sub-total | 39,575,000.00 | ||||||
B | Land development | 148 | decimal | 8,500 | 1,260,125.00 | ||
Total | 40,835,125.00 |
Annexure-2 (c & D) : List of Capital Machinery & Equipment
LIST OF CAPITAL MACHINERY
Sl. No. | Description | Qty | Rate (Tk.) | Amount (TK. ) |
1 | Powder Milk Production line complete set | 1 set | 1,850,000,000.00 | 1,850,000,000.00 |
2 | Milking Parlour | 2 set | 2,500,000.00 | 5,000,000.00 |
3 | Mini cold store and packaging | 1 set | 26,000,000.00 | 26,000,000.00 |
4 | Sub-Station 450kva with electric cables | 1 set | 2,850,000.00 | 2,850,000.00 |
5 | Generator, 250kva, 50kva | 2 set | 3,500,000.00 | 3,500,000.00 |
6 | Deep Tub-well with water treatment plant | 1 set | 3,500,000.00 | 3,500,000.00 |
7 | Mini ETP Plant | 1 set | 4,000,000.00 | 4,000,000.00 |
8 | Equipment for biogas plant | 1 set | 2,500,000.00 | 2,500,000.00 |
9 | Farm Equipment | 5 set | 2,500,000.00 | 12,500,000.00 |
10 | Spit Air Conditioner 3 tons | 4 No.s | 95,000.00 | 380,000.00 |
Total amount | 1,910,230,000.00 |
Annexure-2(e): Cost Milking Cows
Purchase of Milking Cow | ||||
SL. No. | Particulars | Quantity | Rate (Tk.) | Amount (Tk.) |
1 | Milking Cow with Calves | 150 | 560000 | 84000000 |
Total | 150 | 84000000 |
Annexure-2(f): Cost of Vehicles
Sl. No. | Description | Quantity | Rate (tk.) | Amount (Tk. in ‘000) |
1 | Pick up van 2 tons | 1 | 2400000 | 2400 |
2 | Covered Van: 5 MT capacity of any standard brand | 1 | 4200000 | 4200 |
3 | Car (any standard brand, recondition) | 1 | 3000000 | 3000 |
Total cost of Vehicle | 9600 |
Annexure-2(g): Cost Furniture & Office Equipment
A. | Furniture & Fixture | ||||
Srl. | Items | Qty | Unit | Rate in Tk. | Total Tk. “000” |
01. | Full Sec. Table | 2 | Nos. | 60,000 | 120.00 |
02. | Table | 4 | Nos. | 25,000 | 100.00 |
03. | Conference Table | 1 | No. | 150,000 | 150.00 |
04. | Front Chair | 12 | Nos. | 5,500 | 66.00 |
05. | High Back Chair | 4 | Nos. | 20,000 | 80.00 |
06. | Chair (Visitor) | 12 | Nos. | 4,500 | 54.00 |
07. | Chair (Wood) | 10 | Nos. | 6,000 | 60.00 |
08. | File cabinet | 6 | Nos. | 35,000 | 210.00 |
09. | Steel Almirah | 2 | Nos. | 28,000 | 56.00 |
10. | Miscellaneous | LS | 20.00 | ||
Sub-Total | 916.00 |
B. | Office Equipment | ||||
SL | Item | Qty | Unit | Rate per Unit | Total Tk.”000″ |
1 | Fan (Ceiling) | 6 | Nos. | 3,600 | 21.60 |
2 | Calculator | 10 | Nos. | 500 | 5.00 |
3 | Telephone/Mobile | 10 | No. | 14,000 | 140.00 |
4 | Computer with UPS, printer complete set | 5 | No. | 35,000 | 175.00 |
5 | Life Guird equipment with first aid box | 1 | Lot | 85,000 | 85.00 |
6 | Air Cooler | 2 | Nos. | 45,000 | 90.00 |
Sub-Total | 516.60 | ||||
Total Furniture & Fixture and Office Equipment (A+B): Tk. in ‘000 | 1432.60 |
Annexure-2(h): Preliminary expenses
Srl. | Particulars | Amount (Tk. in ‘000) |
01. | Company incorporation, trade license, consultancy, survey, application, project appraisal, documentation etc. | 3150 |
02. | Pre-operation / startup expenses | 1350 |
Total | 4500 |
Annexure-3: Calculation of Working Capital
Srl. | Items | Tied-up period | Amount (Tk. in ‘000) |
1. | Raw and packing cost | 30 days | 146,250 |
2 | Work in process | 1 days | 4,875 |
3 | Finished Goods | 3 days | 2,570 |
4 | Salary and wages | 2 months | 2,301 |
5 | Utilities | 2 months | 3,791 |
6 | Repair and maintenance | 2 months | 3,306 |
7 | Stores & Spares | 2 months | 3,140 |
8 | Admin. and selling expenses | 2 months | 3,020 |
Total working capital | 169,253 |
Annexure-4 Sales Revenue
(Tk. in ‘000)
Item | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 |
Assumed capacity | 70% | 75% | 80% | 85% | 90% | 95% | 100% |
Sales at assumed capacity | 2,018,100 | 2,162,250 | 2,306,400 | 2,450,550 | 2,594,700 | 2,738,850 | 2,883,000 |
Add: Opening WIP (2 days) | – | 13,454 | 14,505 | 15,473 | 16,440 | 17,408 | 18,375 |
Total work in process | 2,018,100 | 2,175,704 | 2,320,905 | 2,466,023 | 2,611,140 | 2,756,258 | 2,901,375 |
Less: Closing work in process (2 days) | 13,454 | 14,505 | 15,473 | 16,440 | 17,408 | 18,375 | 19,343 |
Production of goods | 2,004,646 | 2,161,199 | 2,305,432 | 2,449,583 | 2,593,733 | 2,737,883 | 2,882,033 |
Add: Opening FG (7 days) | – | 46,775 | 51,519 | 54,996 | 58,440 | 61,884 | 65,328 |
Total finished goods | 2,004,646 | 2,207,974 | 2,356,951 | 2,504,578 | 2,652,173 | 2,799,767 | 2,947,360 |
Less: Closing FG (7 days) | 46,775 | 51,519 | 54,996 | 58,440 | 61,884 | 65,328 | 68,772 |
Sales revenue | 1,957,871 | 2,156,455 | 2,301,956 | 2,446,138 | 2,590,289 | 2,734,439 | 2,878,589 |
Less: VAT | – | – | – | – | – | – | – |
The annual sales revenue stands as Tk. | 2590288.68 | thousand at the end of 5th year. |
Annexure-5: Estimated Income Statement
(Tk. in ‘000)
Particulars | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 |
Sales revenue | 1,957,871 | 2,156,455 | 2,301,956 | 2,446,138 | 2,590,289 | 2,734,439 | 2,878,589 |
Cost of goods sold | 1,458,454 | 1,621,659 | 1,731,816 | 1,840,691 | 1,949,573 | 2,058,495 | 2,167,459 |
Gross profit | 499,417 | 534,796 | 570,140 | 605,447 | 640,716 | 675,944 | 711,130 |
Administration & selling expenses | 8,567 | 9,236 | 9,636 | 10,067 | 10,516 | 10,994 | 11,491 |
Operating profit | 490,850 | 525,560 | 560,504 | 595,380 | 630,200 | 664,950 | 699,639 |
Interest on Fixed Cost @ 9% | 87,710 | 87,710 | 87,710 | 87,710 | 87,710 | 87,710 | 87,710 |
Interest on Working Capital @ 9% | 15,233 | 15,233 | 15,233 | 15,233 | 15,233 | 15,233 | 15,233 |
Profit after Interest | 387,907 | 422,617 | 457,561 | 492,437 | 527,257 | 562,007 | 596,696 |
Income Tax @ 15% | – | – | – | – | – | – | – |
Net profit | 387,907 | 422,617 | 457,561 | 492,437 | 527,257 | 562,007 | 596,696 |
Ratio | |||||||
Gross profit to sales (%) | 25.51% | 24.80% | 24.77% | 24.75% | 24.74% | 24.72% | 24.70% |
Operating profit to sales (%) | 25.07% | 24.37% | 24.35% | 24.34% | 24.33% | 24.32% | 24.30% |
Net profit to sales (%) | 19.81% | 19.60% | 19.88% | 20.13% | 20.36% | 20.55% | 20.73% |
Annexure-6(a): Cost of Raw Materials
1 | Cost of raw materials: | |||||||
Raw will be purchased which is shown in the diagram based on 100% capacity in a year is stated bellow: | ||||||||
Items | Qty | Unit | Rate in Tk. | Amount (in Tk. ‘000) | ||||
Natural Feed & Medicine for Cows and Calves | 548 | MT | 40,000.00 | 21,900 | ||||
Raw Milk | 23,360 | MT | 60,000.00 | 1,401,600 | ||||
Sub-Total Tk: | 1,423,500 | 3650 | ||||||
Packing cost | LS | 284,700 | 0 | |||||
Transportation | LS | 71,175 | ||||||
Total Tk: | 1,779,375 | #DIV/0! | ||||||
2 | Year wise Raw are given in the following: | |||||||
(Tk. in ‘MT) | ||||||||
1st year | 2nd year | 3rd year | 4th year | 5th year | 6th year | 7th year | ||
Efficiency assumed | 70% | 75% | 80% | 85% | 90% | 95% | 100% | |
Natural Feed & Medicine for Cows and Calves | 383 | 411 | 438 | 465 | 493 | 520 | 548 | |
Raw materials of feed mill | 16,352 | 17,520 | 18,688 | 19,856 | 21,024 | 22,192 | 23,360 | |
3 | Year wise raw and packaging cost | |||||||
(Tk. in ‘000) | ||||||||
1st year | 2nd year | 3rd year | 4th year | 5th year | 6th year | 7th year | ||
Efficiency assumed | 70% | 75% | 80% | 85% | 90% | 95% | 100% | |
Natural Feed & Medicine for Cows and Calves | 15,330 | 16,425 | 17,520 | 18,615 | 19,710 | 20,805 | 21,900 | |
Raw materials of feed mill | 981,120 | 1,051,200 | 1,121,280 | 1,191,360 | 1,261,440 | 1,331,520 | 1,401,600 | |
Sub-Total Tk: | 996,450 | 1,067,625 | 1,138,800 | 1,209,975 | 1,281,150 | 1,352,325 | 1,423,500 | |
Packing cost | 199,290 | 213,525 | 227,760 | 241,995 | 256,230 | 270,465 | 284,700 | |
Transportation | 49,823 | 53,381 | 56,940 | 60,499 | 64,058 | 67,616 | 71,175 | |
Total Cost | 1,245,563 | 1,334,531 | 1,423,500 | 1,512,469 | 1,601,438 | 1,690,406 | 1,779,375 |
Annexure-6(b) Cost of Finished Products
Cost of finish products: Annual production at 100% capacity utilization: | |||||||
(a) Produced Items | |||||||
Item | Qnty | Rate in Tk. | Amount (in Tk. ‘000) | ||||
Milk | 3,650 | MT | 780,000.00 | 2,847,000 | |||
Valuation of Calves | 90 | Heads | 250,000 | 22,500 | |||
Composed Fertilizer | 540 | MT | 25,000 | 13,500 | |||
#REF! | Total Tk: | 2,883,000 | |||||
(b) Year wise output | |||||||
1st year | 2nd year | 3rd year | 4th year | 5th year | 6th year | 7th year | |
Efficiency assumed | 70% | 75% | 80% | 85% | 90% | 95% | 100% |
Milk | 2,555 | 2,738 | 2,920 | 3,103 | 3,285 | 3,468 | 3650 |
Valuation of Calves | 63 | 68 | 72 | 77 | 81 | 86 | 90 |
Composed Fertilizer | 378 | 405 | 432 | 459 | 486 | 513 | 540 |
(c) For production capacity utilization has been assumed at 70%, 75%, 80%, 85% and 100% during the initial 7 operating years of the project. | |||||||
1st year | 2nd year | 3rd year | 4th year | 5th year | 6th year | 7th year | |
Efficiency assumed | 70% | 75% | 80% | 85% | 90% | 95% | 100% |
Milk | 1,992,900 | 2,135,250 | 2,277,600 | 2,419,950 | 2,562,300 | 2,704,650 | 2,847,000 |
Valuation of Calves | 15,750 | 16,875 | 18,000 | 19,125 | 20,250 | 21,375 | 22,500 |
Composed Fertilizer | 9,450 | 10,125 | 10,800 | 11,475 | 12,150 | 12,825 | 13,500 |
Total annual sales Tk: | 2,018,100 | 2,162,250 | 2,306,400 | 2,450,550 | 2,594,700 | 2,738,850 | 2,883,000 |
Annexure-6(c): Salary & Wages
Category/Designation | No. | Tk./Month | Total Tk 000./ year | ||
Manager | 2 | 35,000 | 840.00 | ||
Veterinary Doctor | 1 | 25,000 | 300.00 | ||
Quality Controller | 2 | 25,000 | 600.00 | ||
Supervisor | 2 | 30,000 | 720.00 | ||
Machine Operator | 6 | 25,000 | 1,800.00 | ||
Electrician | 1 | 15,000 | 180.00 | ||
Driver | 3 | 20,000 | 720.00 | ||
Security Guard | 3 | 15,000 | 540.00 | ||
Peon/Cleaner | 2 | 12,000 | 288.00 | ||
Skilled Worker | 21 | 17,000 | 4,284.00 | ||
Unskilled worker | 12 | 12,000 | 1,728.00 | ||
Total : | 55 | 1,000,000 | 12,000.00 | ||
Particulars | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 |
Salary | 12,000 | 12,600 | 13,230 | 13,892 | 14,586 |
Increment amount (5%) | – | 600 | 630 | 662 | 695 |
Bonus | 2,000 | 2,100 | 2,205 | 2,315 | 2,431 |
Total : | 14,000 | 14,700 | 15,435 | 16,207 | 17,017 |
Stores & Spares: | |||||||
Cost for spares has been considered @ 1%, 1.5%, 2%, 2.5%, 3%, 3.5% & 4% on value of machinery from 1st to 7th year respectively. Thus the cost comes as given below: | |||||||
Particulars | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 |
Cost for store & spares | 19,102 | 28,653 | 38,205 | 47,756 | 57,307 | 66,858 | 76,409 |
Annexure-6(d): Over-head Costs
6. | Repairs & maintenance: | |||||||
Cost for repair & maintenance of machinery has been estimated at @ 1%, 1.5%, 2.0%, 2.5%, 3.0%, 3.5% & 4.0% in 1st, 2nd, 3rd, 4th, 5th, 6th & 7th year respectively. | ||||||||
For building it has been estimated @ 2% of civil cost for each year. For vehicle it has estimated @ 2% of cost of vehicles for each year. | ||||||||
Based on the above assumptions the year wise repair & maintenance cost has been calculated as under: | ||||||||
Items | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 | |
Buildings | 817 | 817 | 817 | 817 | 817 | 817 | 817 | |
Machinery | 19,102 | 28,653 | 38,205 | 47,756 | 57,307 | 66,858 | 76,409 | |
Vehicles | 192 | 192 | 192 | 192 | 192 | 192 | 192 | |
Total : | 20,111 | 29,662 | 39,213 | 48,764 | 58,316 | 67,867 | 77,418 | |
7. | Rent, Tax & Insurance | |||||||
It has been estimated at 1% on the total fixed cost of the project. | ||||||||
8. | Trasportation Charge | |||||||
Inland Transportation & Others | 0 | |||||||
8. | Depreciation | |||||||
Based on straight line method the depreciation has been calculated as shown below: | ||||||||
(Tk. in ‘000) | ||||||||
Items | Cost | Rate | Depreciation | |||||
Building | 40835 | 5% | 2,042 | |||||
Machinery | 1910230 | 10% | 191,023 | |||||
Furniture & Fixture | 1432.6 | 10% | 143 | |||||
Vehicles | 9600 | 15% | 1,440 | |||||
Total: | 194,648 | |||||||
9. | Water, Power and Fuel | |||||||
(a) | Water: Total requirement of water will be about 30,000 ltr. Required water will be available from own deep tube-wel to be sunk within the project site. | |||||||
(b) | Power: The power requirement of the project will be met by obtaining power connection from REB. A sum of the following amount has been estimated to be incurred for the power consumption. | |||||||
Details given below: | ||||||||
350 kw x 20 hrs x 365 days x Tk. 8.50 | Tk. | 21,717,500 | ||||||
Demand charge for 450 KVA | Tk. | 127,500 | ||||||
Service charge | Tk. | 9,563 | ||||||
VAT | Tk. | 1,085,875 | ||||||
Total: | Tk. | 22,940,438 | ||||||
(c) | Gas, Fuel and Lubricants: Tk.1200,000/year | |||||||
Total Tk. ( a + b + c ) = | 23,060,438 |
Annexure-7(a): Administrative & Selling Expenses
(Tk. in ‘000)
Srl. | Particulars | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 |
01. | Directors remuneration | 960 | 960 | 960 | 960 | 960 | 960 | 960 |
02. | Administrative salary | 6,123 | 6,712 | 7,032 | 7,383 | 7,752 | 8,140 | 8,547 |
03. | Depreciation & write off | 900 | 900 | 900 | 900 | 900 | 900 | 900 |
04. | Travelling & conveyance | 164 | 184 | 204 | 224 | 244 | 274 | 304 |
05. | Printing & stationery | 75 | 85 | 95 | 105 | 115 | 125 | 135 |
06. | Postage telegram & telephone | 60 | 70 | 80 | 90 | 100 | 110 | 120 |
07. | Legal & audit fee | 55 | 65 | 75 | 85 | 95 | 105 | 115 |
08. | Ad & sales promotion | 80 | 95 | 110 | 125 | 140 | 155 | 170 |
09. | Miscellaneous expenses | 150 | 165 | 180 | 195 | 210 | 225 | 240 |
Total: | 8,567 | 9,236 | 9,636 | 10,067 | 10,516 | 10,994 | 11,491 | |
Assumption | ||||||||
An amount of Tk. 80,000/month has been considered to be the each Director’s remuneration. |
Annexure-7(b): Administrative Salary
2. Administrative Salary | |||||
(Tk. in ‘000) | |||||
Category | No. | Monthly salary | Annual salary | ||
General Manager | 1 | 80,000 | 960 | ||
Manager Admin. | 1 | 45,000 | 540 | ||
Accountant | 1 | 30,000 | 360 | ||
Purchase Officer | 1 | 25,000 | 300 | ||
Sales Officer | 10 | 20,000 | 2400 | ||
Account Assistant | 2 | 17,500 | 420 | ||
Driver | 1 | 20,000 | 240 | ||
Cleaner/Gardener/Peon | 3 | 12,000 | 432 | ||
Total | 20 | 471,000 | 5652 | ||
(Tk. in ‘000) | |||||
Particulars | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 |
Salary | 5,652 | 5,935 | 6,217 | 6,528 | 6,854 |
Increment (5%) | – | 283 | 297 | 311 | 326 |
Bonus | 471 | 495 | 518 | 544 | 571 |
Total: | 6,123 | 6,712 | 7,032 | 7,383 | 7,752 |
3. Depreciation & write off | |||||
(Tk. in ‘000) | |||||
Items | Cost | Rate | Depreciation | ||
Preliminary Expenses | 4500 | 20% | 900 | ||
Total | 900 |
Annexure-8(a) Cost of Goods Sold
(Tk in “000”)
Particulars | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 |
Raw and feeding materials | 1,245,563 | 1,334,531 | 1,423,500 | 1,512,469 | 1,601,438 | 1,690,406 | 1,779,375 |
Salary & wages | 14,000 | 14,700 | 15,435 | 16,207 | 17,017 | 17,868 | 18,761 |
Stores & spares | 19,102 | 28,653 | 38,205 | 47,756 | 57,307 | 66,858 | 76,409 |
Water, power, fuel | 23,060 | 23,060 | 23,060 | 23,060 | 23,060 | 23,060 | 23,060 |
Repair & maintenance | 20,111 | 29,662 | 39,213 | 48,764 | 58,316 | 67,867 | 77,418 |
Rent, tax, insurance | 2,199 | 2,199 | 2,199 | 2,199 | 2,199 | 2,199 | 2,199 |
Depreciation | 194,648 | 194,648 | 194,648 | 194,648 | 194,648 | 194,648 | 194,648 |
Total cost of production | 1,518,683 | 1,627,454 | 1,736,260 | 1,845,103 | 1,953,984 | 2,062,906 | 2,171,870 |
Add: Opening WIP (2 days) | – | 13,454 | 14,505 | 15,473 | 16,440 | 17,408 | 18,375 |
Total stock of WIP | 1,518,683 | 1,640,908 | 1,750,765 | 1,860,575 | 1,970,424 | 2,080,314 | 2,190,246 |
Less: Closing stock WIP (2 days) | 13,454 | 14,505 | 15,473 | 16,440 | 17,408 | 18,375 | 19,343 |
Cost of goods manufactured | 1,505,229 | 1,626,403 | 1,735,292 | 1,844,135 | 1,953,017 | 2,061,939 | 2,170,903 |
Add: Opening FG (7 days) | – | 46,775 | 51,519 | 54,996 | 58,440 | 61,884 | 65,328 |
Total goods av. For sales | 1,505,229 | 1,673,178 | 1,786,811 | 1,899,131 | 2,011,457 | 2,123,823 | 2,236,231 |
Less: Closing FG (7 days) | 46,775 | 51,519 | 54,996 | 58,440 | 61,884 | 65,328 | 68,772 |
Cost of goods sold | 1,458,454 | 1,621,659 | 1,731,816 | 1,840,691 | 1,949,573 | 2,058,495 | 2,167,459 |
Annexure-8(b) Break-Even Analysis
(Tk. in ‘000)
01. | Sales Revenue on 7th year | 2,878,589 | ||
02. | Total cost of operation, admin & selling and financial expenses | 2,285,344 | ||
Analysis of total cost | Total Cost | Fixed Cost | Variable | |
Raw materials | 1,779,375 | – | 1,779,375 | |
Salary and wages | 18,761 | – | 18,761 | |
Repairs & maintenance | 77,418 | 2,000 | 75,418 | |
Tax, Insurance, etc. | 2,199 | – | 2,199 | |
Water, power, fuel | 23,060 | 1,000 | 22,060 | |
Stores and spares | 76,409 | 200 | 76,209 | |
Administrative salary | 8,547 | 8,547 | – | |
Postage, telegram, telephone | 120 | 35 | 85 | |
Printing & Stationery | 135 | 100 | 35 | |
Conveyance & travelling | 304 | 300 | 4 | |
Depreciation & wirte off | 195,548 | 1,500 | 194,048 | |
Miscellaneous expenses | 240 | 200 | 40 | |
Legal & audit fee | 115 | 100 | 15 | |
Ad & sales promotion | 170 | 120 | 50 | |
Financial expenses | 102,943 | 102,943 | – | |
Total: | 2,285,344 | 117,045 | 2,168,299 | |
03. | Break even point (BEP) | |||
PV Ratio = (Sales – variable cost) / sales | Sales | 2,878,589 | ||
Variable cost | 2,168,299 | |||
710,289 | ||||
Divided by Sales = | 0.247 | |||
BEP (Sales) = Fixed cost / PV ratio = | 117,045 | 474,347.73 | ||
Assumed Capacity : | 0.1648 | |||
Say: | 16.48% |
Annexure 9: Pay-Back Period
(Tk. in ‘000)
1. Amount to be paid (including value of land) | 2,367,809 | ||||||
2. Amount available for recovery of the value of assets as follows: | |||||||
Items | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 |
Net profit | 387,907 | 422,617 | 457,561 | 492,437 | 527,257 | 562,007 | 596,696 |
Depreciation | 194,648 | 194,648 | 194,648 | 194,648 | 194,648 | 194,648 | 194,648 |
Total: | 582,555 | 617,265 | 652,209 | 687,085 | 721,905 | 756,655 | 791,344 |
3. Pay back period | |||||||
Year | Amount to be recovered | Amount available for recovery | Balance | ||||
1 | 2,367,809 | 582,555 | 1,785,254 | ||||
2 | 1,785,254 | 617,265 | 1,167,989 | ||||
3 | 1,167,989 | 652,209 | 515,780 | ||||
4 | 515,780 | 687,085 | (171,305) | ||||
5 | (171,305) | 721,905 | (893,210) | ||||
The pay-back period will be 3 years 9 months | |||||||
N | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash Flow | (2367809) | 582555 | 617265 | 652208.8 | 687085.15 | 721905 | 756655.1 |
Regular Payback Period (years) | N/A | N/A | N/A | N/A | 3.7506784 | N/A | N/A |
In Months | N/A | N/A | N/A | N/A | 45.008141 | N/A | N/A |
Annexure-10: Estimated Cash-Flow Statement
(Tk. in ‘000)
A. Source of fund | Const. Yr | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 |
Sponsors equity | 613,600 | 613,600 | – | – | – | – | – | – |
Depreciation & write off. | – | 195,548 | 195,548 | 195,548 | 195,548 | 195,548 | 195,548 | 195,548 |
Operating profit | – | 490,850 | 525,560 | 560,504 | 595,380 | 630,200 | 664,950 | 699,639 |
L/Bank equity | 1,754,209 | 1,754,209 | – | – | – | – | – | – |
Increase in current liability | – | – | – | – | – | – | – | – |
Total: | 2,367,809 | 3,054,207 | 721,108 | 756,052 | 790,928 | 825,748 | 860,498 | 895,187 |
B. Utilization of fund | ||||||||
Capital expenditure (fixed asset) | 2,367,809 | – | – | – | – | – | – | – |
Increase in current asset | – | 169,253 | – | – | – | – | – | – |
Buy-back of L/Bank equity | – | 311,041 | 311,041 | 311,041 | 311,041 | 311,041 | 311,041 | 311,041 |
Total | 2,367,809 | 480,294 | 311,041 | 311,041 | 311,041 | 311,041 | 311,041 | 311,041 |
Cash surplus | – | 2,573,913 | 410,067 | 445,011 | 479,887 | 514,706 | 549,457 | 584,145 |
Opening cash balance | – | – | 2,573,913 | 2,983,980 | 3,428,990 | 3,908,877 | 4,423,583 | 4,973,040 |
Closing cash balance | – | 2,573,913 | 2,983,980 | 3,428,990 | 3,908,877 | 4,423,583 | 4,973,040 | 5,557,186 |
Annexure-11: Projected Balance Sheet
(Tk. in ‘000)
Properties & Assets | ||||||||
Current Assets: | Const. Yr | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 |
Cash balance | – | 2,573,913 | 2,983,980 | 3,428,990 | 3,908,877 | 4,423,583 | 4,973,040 | 5,557,186 |
Other current assets | – | 169,253 | 169,253 | 169,253 | 169,253 | 169,253 | 169,253 | 169,253 |
Sub-Total | – | 2,743,166 | 3,153,233 | 3,598,243 | 4,078,130 | 4,592,836 | 5,142,293 | 5,726,439 |
Fixed assets | ||||||||
Total fixed assets | 2,198,556 | 2,003,008 | 1,807,460 | 1,611,912 | 1,416,364 | 1,220,816 | 1,025,268 | 829,720 |
Total Assets | 2,367,809 | 4,746,174 | 4,960,693 | 5,210,155 | 5,494,494 | 5,813,652 | 6,167,561 | 6,556,159 |
Liabilities and sponsors equity | ||||||||
L/Bank Equity/share | 1,754,209 | 1,443,168 | 1,132,126 | 821,085 | 510,043 | 199,002 | (112,040) | (423,081) |
Working capital loan | – | – | – | – | – | – | – | – |
Other current loan | – | – | – | – | – | – | – | – |
Total Liabilities | 1,754,209 | 1,443,168 | 1,132,126 | 821,085 | 510,043 | 199,002 | (112,040) | (423,081) |
Sponsor’s equity | ||||||||
Paid up capital | 613,600 | 2,915,099 | 3,405,949 | 3,931,510 | 4,492,014 | 6,141,907 | 5,717,594 | 6,382,544 |
Retained earnings | – | 387,907 | 422,617 | 457,561 | 492,437 | 527,257 | 562,007 | 596,696 |
Total equity | 613,600 | 3,303,006 | 3,828,566 | 4,389,070 | 4,984,451 | 6,669,164 | 6,279,601 | 6,979,240 |
Total liabilities & equity | 2,367,809 | 4,746,174 | 4,960,693 | 5,210,155 | 5,494,494 | 6,868,166 | 6,167,561 | 6,556,159 |
Annexure-12: Debt-service Coverage Ratio
(Tk. in ‘000)
A. Income | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 |
Net profit after return on bond | 387,907 | 422,617 | 457,561 | 492,437 | 527,257 | 562,007 | 596,696 |
Less: Profit payable to L/Bank | 190,074 | 207,082 | 224,205 | 241,294 | 258,356 | 275,383 | 292,381 |
To sponsor’s | 197,833 | 215,535 | 233,356 | 251,143 | 268,901 | 286,624 | 304,315 |
Depreciation & write off. | 195,548 | 195,548 | 195,548 | 195,548 | 195,548 | 195,548 | 195,548 |
Total: | 393,381 | 411,083 | 428,904 | 446,691 | 464,449 | 482,172 | 499,863 |
B. Liabilities : | |||||||
Buy back of L/Bank equity | 311,041 | 311,041 | 311,041 | 311,041 | 311,041 | 311,041 | 311,041 |
Total: | 311,041 | 311,041 | 311,041 | 311,041 | 311,041 | 311,041 | 311,041 |
C. Debt-service Coverage Ratio (times) | 1.26 | 1.32 | 1.38 | 1.44 | 1.49 | 1.55 | 1.61 |
Annexure-13: Internal Rate of Return (IRR)
(Tk. in ‘000)
Srl. | Capital Outlay | Operating profit | Non-cash charges | Operating inflow | Net inflow /(Outflow) | Present value | |
20% | 40% | ||||||
0 | 2,367,809 | – | – | – | (2,367,809) | (2,367,809) | (2,367,809) |
1 | 490,850 | 194,648 | 685,498 | 685,498 | 571,249 | 489,642 | |
2 | 525,560 | 194,648 | 720,208 | 720,208 | 500,145 | 367,453 | |
3 | 560,504 | 194,648 | 755,152 | 755,152 | 437,009 | 275,201 | |
4 | 595,380 | 194,648 | 790,028 | 790,028 | 380,994 | 205,651 | |
5 | 630,200 | 194,648 | 824,848 | 824,848 | 331,488 | 153,368 | |
6 | 664,950 | 194,648 | 859,598 | 859,598 | 287,878 | 114,164 | |
7 | 699,639 | 194,648 | 894,287 | 894,287 | 249,579 | 84,836 | |
Total: | 390,532 | (677,495) | |||||
IRR = | 25.56% |
Annexure-14: Ratio-Analysis
Particulars Capacity Utilization | Year : 1 70% | Year : 2 75% | Year : 3 80% | Year : 4 85% | Year : 5 90% | Year : 6 95% | Year : 7 100% | |
1. | Gross Profit to Sales | 25.51% | 24.80% | 24.77% | 24.75% | 24.74% | 24.72% | 24.70% |
2. | Operating Profit | 25.07% | 24.37% | 24.35% | 24.34% | 24.33% | 24.32% | 24.30% |
3. | Net Profit after Taxes to Sales | 19.81% | 19.60% | 19.88% | 20.13% | 20.36% | 20.55% | 20.73% |
4. | Return (EAROB) on Initial Equity | 16.38% | 17.85% | 19.32% | 20.80% | 22.27% | 23.74% | 25.20% |
5. | Profit to Total Assets | 17.64% | 19.22% | 20.81% | 22.40% | 23.98% | 25.56% | 27.14% |
6. | Debt-Service Coverage Ratio | 1.26 | 1.32 | 1.38 | 1.44 | 1.49 | 1.55 | 1.61 |
7. | Sales Turn Over (Times) (to Initial Investment) | 0.83 | 0.91 | 0.97 | 1.03 | 1.09 | 1.15 | 1.22 |
Annexure-15(a): Sensitivity Analysis based on 5% increase in Cost of Goods Sold
(Tk. in ‘000)
Particulars | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 |
Sales revenue | 1,957,871 | 2,156,455 | 2,301,956 | 2,446,138 | 2,590,289 | 2,734,439 | 2,878,589 |
Cost of goods sold | 1,531,376 | 1,702,742 | 1,818,407 | 1,932,725 | 2,047,051 | 2,161,419 | 2,275,832 |
Gross profit | 426,495 | 453,713 | 483,549 | 513,413 | 543,237 | 573,019 | 602,757 |
Administration & selling expenses | 8,567 | 9,236 | 9,636 | 10,067 | 10,516 | 10,994 | 11,491 |
Operating profit | 417,928 | 444,477 | 473,913 | 503,346 | 532,721 | 562,026 | 591,266 |
Bond purchase | |||||||
Profit after bond purchase | 417,928 | 444,477 | 473,913 | 503,346 | 532,721 | 562,026 | 591,266 |
Return on bond | – | – | – | – | – | – | – |
Net profit | 417,928 | 444,477 | 473,913 | 503,346 | 532,721 | 562,026 | 591,266 |
Ratio | |||||||
Gross profit to sales (%) | 22% | 21% | 21% | 21% | 21% | 21% | 21% |
Operating profit to sales (%) | 21% | 21% | 21% | 21% | 21% | 21% | 21% |
Less: Closing FG (7 days) | 28% | 23% | 23% | 24% | 24% | 24% | 24% |
Net profit to sales (%) | 21% | 21% | 21% | 21% | 21% | 21% | 21% |
Annexure-15(b): Sensitivity Analysis based on 5% Decrease in Cost of Goods Sold
(Tk. in ‘000)
Particulars | Year – 1 | Year – 2 | Year – 3 | Year – 4 | Year – 5 | Year – 6 | Year – 7 |
Sales revenue | 1,859,977 | 2,048,632 | 2,186,858 | 2,323,831 | 2,460,774 | 2,597,717 | 2,734,659 |
Cost of goods sold | 1,458,454 | 1,621,659 | 1,731,816 | 1,840,691 | 1,949,573 | 2,058,495 | 2,167,459 |
Gross profit | 401,524 | 426,973 | 455,042 | 483,140 | 511,201 | 539,222 | 567,200 |
Administration & selling expenses | 8,567 | 9,236 | 9,636 | 10,067 | 10,516 | 10,994 | 11,491 |
Operating profit | 392,957 | 417,738 | 445,406 | 473,073 | 500,685 | 528,228 | 555,709 |
Bond purchase | |||||||
Profit after bond purchase | 392,957 | 417,738 | 445,406 | 473,073 | 500,685 | 528,228 | 555,709 |
Return on bond | – | – | – | – | – | – | – |
Net profit | 392,957 | 417,738 | 445,406 | 473,073 | 500,685 | 528,228 | 555,709 |
Ratio | |||||||
Gross profit to sales (%) | 22% | 21% | 21% | 21% | 21% | 21% | 21% |
Operating profit to sales (%) | 21% | 20% | 20% | 20% | 20% | 20% | 20% |
Less: Closing FG (7 days) | 28% | 23% | 23% | 24% | 24% | 24% | 24% |
Net profit to sales (%) | 21% | 20% | 20% | 20% | 20% | 20% | 20% |
Annexure-16 Contribution to GDP
Particulars | Amount in Taka “000” | |||||||
Year : 1 | Year : 2 | Year : 3 | Year : 4 | Year : 5 | Year : 6 | Year : 7 | ||
A. | Net Revenue | 1,957,871 | 2,156,455 | 2,301,956 | 2,446,138 | 2,590,289 | 2,734,439 | 2,878,589 |
B. | Inter-firm Transactions: | |||||||
Raw and Packing Materials | 1,245,563 | 1,334,531 | 1,423,500 | 1,512,469 | 1,601,438 | 1,690,406 | 1,779,375 | |
Stores & Spares | 19,102 | 28,653 | 38,205 | 47,756 | 57,307 | 66,858 | 76,409 | |
Repair & Maintenance | 20,111 | 29,662 | 39,213 | 48,764 | 58,316 | 67,867 | 77,418 | |
Carriage Inward | 200 | 213 | 227 | 227 | 227 | 227 | 227 | |
Insurance | 2,199 | 2,199 | 2,199 | 2,199 | 2,199 | 2,199 | 2,199 | |
Water, Power, Fuel & Lubricant | 23,060 | 23,060 | 23,060 | 23,060 | 23,060 | 23,060 | 23,060 | |
Other Manufacturing Overhead | 30 | 33 | 35 | 38 | 40 | 42 | 45 | |
Office Supplies | 75 | 85 | 95 | 105 | 115 | 125 | 135 | |
Postage, Telephone, Telex, Fax, etc. | 60 | 70 | 80 | 90 | 100 | 110 | 120 | |
Travelling | 164 | 184 | 204 | 224 | 244 | 274 | 304 | |
Auditor’s Fee | 55 | 65 | 75 | 85 | 95 | 105 | 115 | |
Selling & Sales promotion Exp. | 80 | 95 | 110 | 125 | 140 | 155 | 170 | |
Miscellaneous Exp. | 150 | 165 | 180 | 195 | 210 | 225 | 240 | |
C. | Total: | 1,310,849 | 1,419,016 | 1,527,183 | 1,635,337 | 1,743,490 | 1,851,653 | 1,959,817 |
D. | Contribution to GDP: | 647,022 | 737,439 | 774,773 | 810,801 | 846,799 | 882,786 | 918,772 |
Annexure-17 Estimated repayment schedule of Term Loan
Amounts in BDT ‘000’ | ||||||||
Loan values | Loan summary | |||||||
Estimated Loan amount | 1635732 | Scheduled payment: | 30,868 | |||||
Estimated Annual interest rate | 0.05 | Scheduled number of payments: | 60 | |||||
Estimated Loan period in years | 5.00 | Actual number of payments: | 60 | |||||
Number of payments per year | 12.00 | Total early payments: | – | |||||
Assumed Start date of loan | 10/1/23 | Total interest: | 216,365 | |||||
Optional extra payments | ||||||||
*** The repayment will be started after grace period. |
Pmt. No. | Payment Date | Beginning Balance | Scheduled Payment | Extra Payment | Total Payment | Principal | Interest | Ending Balance | Cumulative Interest |
1 | 11/1/2023 | 1,635,732 | 30,868 | 0 | 30,868 | 24,053 | 6,816 | 1,611,679 | 6,816 |
2 | 12/1/2023 | 1,611,679 | 30,868 | 0 | 30,868 | 24,153 | 6,715 | 1,587,526 | 13,531 |
3 | 1/1/2024 | 1,587,526 | 30,868 | 0 | 30,868 | 24,254 | 6,615 | 1,563,273 | 20,146 |
4 | 2/1/2024 | 1,563,273 | 30,868 | 0 | 30,868 | 24,355 | 6,514 | 1,538,918 | 26,659 |
5 | 3/1/2024 | 1,538,918 | 30,868 | 0 | 30,868 | 24,456 | 6,412 | 1,514,462 | 33,071 |
6 | 4/1/2024 | 1,514,462 | 30,868 | 0 | 30,868 | 24,558 | 6,310 | 1,489,904 | 39,382 |
7 | 5/1/2024 | 1,489,904 | 30,868 | 0 | 30,868 | 24,660 | 6,208 | 1,465,244 | 45,590 |
8 | 6/1/2024 | 1,465,244 | 30,868 | 0 | 30,868 | 24,763 | 6,105 | 1,440,481 | 51,695 |
9 | 7/1/2024 | 1,440,481 | 30,868 | 0 | 30,868 | 24,866 | 6,002 | 1,415,614 | 57,697 |
10 | 8/1/2024 | 1,415,614 | 30,868 | 0 | 30,868 | 24,970 | 5,898 | 1,390,644 | 63,595 |
11 | 9/1/2024 | 1,390,644 | 30,868 | 0 | 30,868 | 25,074 | 5,794 | 1,365,570 | 69,389 |
12 | 10/1/2024 | 1,365,570 | 30,868 | 0 | 30,868 | 25,178 | 5,690 | 1,340,392 | 75,079 |
13 | 11/1/2024 | 1,340,392 | 30,868 | 0 | 30,868 | 25,283 | 5,585 | 1,315,109 | 80,664 |
14 | 12/1/2024 | 1,315,109 | 30,868 | 0 | 30,868 | 25,389 | 5,480 | 1,289,720 | 86,144 |
15 | 1/1/2025 | 1,289,720 | 30,868 | 0 | 30,868 | 25,494 | 5,374 | 1,264,226 | 91,518 |
16 | 2/1/2025 | 1,264,226 | 30,868 | 0 | 30,868 | 25,601 | 5,268 | 1,238,625 | 96,785 |
17 | 3/1/2025 | 1,238,625 | 30,868 | 0 | 30,868 | 25,707 | 5,161 | 1,212,918 | 101,946 |
18 | 4/1/2025 | 1,212,918 | 30,868 | 0 | 30,868 | 25,814 | 5,054 | 1,187,103 | 107,000 |
19 | 5/1/2025 | 1,187,103 | 30,868 | 0 | 30,868 | 25,922 | 4,946 | 1,161,181 | 111,946 |
20 | 6/1/2025 | 1,161,181 | 30,868 | 0 | 30,868 | 26,030 | 4,838 | 1,135,151 | 116,785 |
21 | 7/1/2025 | 1,135,151 | 30,868 | 0 | 30,868 | 26,138 | 4,730 | 1,109,013 | 121,514 |
22 | 8/1/2025 | 1,109,013 | 30,868 | 0 | 30,868 | 26,247 | 4,621 | 1,082,765 | 126,135 |
23 | 9/1/2025 | 1,082,765 | 30,868 | 0 | 30,868 | 26,357 | 4,512 | 1,056,408 | 130,647 |
24 | 10/1/2025 | 1,056,408 | 30,868 | 0 | 30,868 | 26,467 | 4,402 | 1,029,942 | 135,049 |
25 | 11/1/2025 | 1,029,942 | 30,868 | 0 | 30,868 | 26,577 | 4,291 | 1,003,365 | 139,340 |
26 | 12/1/2025 | 1,003,365 | 30,868 | 0 | 30,868 | 26,688 | 4,181 | 976,677 | 143,521 |
27 | 1/1/2026 | 976,677 | 30,868 | 0 | 30,868 | 26,799 | 4,069 | 949,879 | 147,590 |
28 | 2/1/2026 | 949,879 | 30,868 | 0 | 30,868 | 26,910 | 3,958 | 922,968 | 151,548 |
29 | 3/1/2026 | 922,968 | 30,868 | 0 | 30,868 | 27,023 | 3,846 | 895,946 | 155,394 |
30 | 4/1/2026 | 895,946 | 30,868 | 0 | 30,868 | 27,135 | 3,733 | 868,810 | 159,127 |
31 | 5/1/2026 | 868,810 | 30,868 | 0 | 30,868 | 27,248 | 3,620 | 841,562 | 162,747 |
32 | 6/1/2026 | 841,562 | 30,868 | 0 | 30,868 | 27,362 | 3,507 | 814,200 | 166,253 |
33 | 7/1/2026 | 814,200 | 30,868 | 0 | 30,868 | 27,476 | 3,393 | 786,725 | 169,646 |
34 | 8/1/2026 | 786,725 | 30,868 | 0 | 30,868 | 27,590 | 3,278 | 759,134 | 172,924 |
35 | 9/1/2026 | 759,134 | 30,868 | 0 | 30,868 | 27,705 | 3,163 | 731,429 | 176,087 |
36 | 10/1/2026 | 731,429 | 30,868 | 0 | 30,868 | 27,821 | 3,048 | 703,608 | 179,135 |
37 | 11/1/2026 | 703,608 | 30,868 | 0 | 30,868 | 27,937 | 2,932 | 675,672 | 182,066 |
38 | 12/1/2026 | 675,672 | 30,868 | 0 | 30,868 | 28,053 | 2,815 | 647,619 | 184,882 |
39 | 1/1/2027 | 647,619 | 30,868 | 0 | 30,868 | 28,170 | 2,698 | 619,449 | 187,580 |
40 | 2/1/2027 | 619,449 | 30,868 | 0 | 30,868 | 28,287 | 2,581 | 591,162 | 190,161 |
41 | 3/1/2027 | 591,162 | 30,868 | 0 | 30,868 | 28,405 | 2,463 | 562,757 | 192,624 |
42 | 4/1/2027 | 562,757 | 30,868 | 0 | 30,868 | 28,523 | 2,345 | 534,233 | 194,969 |
43 | 5/1/2027 | 534,233 | 30,868 | 0 | 30,868 | 28,642 | 2,226 | 505,591 | 197,195 |
44 | 6/1/2027 | 505,591 | 30,868 | 0 | 30,868 | 28,762 | 2,107 | 476,829 | 199,302 |
45 | 7/1/2027 | 476,829 | 30,868 | 0 | 30,868 | 28,881 | 1,987 | 447,948 | 201,288 |
46 | 8/1/2027 | 447,948 | 30,868 | 0 | 30,868 | 29,002 | 1,866 | 418,946 | 203,155 |
47 | 9/1/2027 | 418,946 | 30,868 | 0 | 30,868 | 29,123 | 1,746 | 389,823 | 204,900 |
48 | 10/1/2027 | 389,823 | 30,868 | 0 | 30,868 | 29,244 | 1,624 | 360,579 | 206,525 |
49 | 11/1/2027 | 360,579 | 30,868 | 0 | 30,868 | 29,366 | 1,502 | 331,213 | 208,027 |
50 | 12/1/2027 | 331,213 | 30,868 | 0 | 30,868 | 29,488 | 1,380 | 301,725 | 209,407 |
51 | 1/1/2028 | 301,725 | 30,868 | 0 | 30,868 | 29,611 | 1,257 | 272,114 | 210,664 |
52 | 2/1/2028 | 272,114 | 30,868 | 0 | 30,868 | 29,734 | 1,134 | 242,380 | 211,798 |
53 | 3/1/2028 | 242,380 | 30,868 | 0 | 30,868 | 29,858 | 1,010 | 212,521 | 212,808 |
54 | 4/1/2028 | 212,521 | 30,868 | 0 | 30,868 | 29,983 | 886 | 182,538 | 213,694 |
55 | 5/1/2028 | 182,538 | 30,868 | 0 | 30,868 | 30,108 | 761 | 152,431 | 214,454 |
56 | 6/1/2028 | 152,431 | 30,868 | 0 | 30,868 | 30,233 | 635 | 122,198 | 215,089 |
57 | 7/1/2028 | 122,198 | 30,868 | 0 | 30,868 | 30,359 | 509 | 91,838 | 215,598 |
58 | 8/1/2028 | 91,838 | 30,868 | 0 | 30,868 | 30,486 | 383 | 61,353 | 215,981 |
59 | 9/1/2028 | 61,353 | 30,868 | 0 | 30,868 | 30,613 | 256 | 30,740 | 216,237 |
60 | 10/1/2028 | 30,740 | 30,868 | 0 | 30,740 | 30,612 | 128 | 0 | 216,365 |
7.0 ECONOMIC ASPECTS
a. No. of jobs created : 75
Male : 50 Female: 25
Full Time/ Part Time : 75 Full Time / Part Time 0
b. Cost per job created : Tk. 19613 per month
c. Contribution to GDP : Tk. 846,799,000.00 at 5th year
d. Earning in foreign exchange or foreign exchange savings:
about Tk. 2,590,289,000.00 per annum
8.0 CONCLUSION
8.1 The Project
The proposed project aims to establish an agro-based venture focused on producing milk for various industries and consumer products. It is expected to meet the high demand for these products in both local and international markets. By utilizing its production capacity, the project will significantly reduce the existing demand-supply gap for milk in the country. The project will operate within a 10-kilometer radius, with limited competition from similar ventures. It will process milk obtained from its own farm as well as collect raw milk from external sources to manufacture milk powder.
8.2 Management
The overall management and operation of the project will be under the joint supervision and guidance of the promoters. They all are well experienced in business management and operation. The Proprietor of the project has management capabilities and skill to handle such type of project. The other director of the project has also knowledge regarding the project. All the sponsors are financially sound and have affordability of equity participation. The sponsors management and financial track record are satisfactory.
8.3 Marketing
Proper marketing management plays a crucial role in the success of any business. It is one of the main challenges that businesses must overcome to achieve their goals. In the case of our project, we are fortunate to have a ready market both within the country and abroad. However, it is important to note that Bangladesh, in particular, presents a bright prospect for milk production and marketing compared to its neighboring countries.
The significance of effective marketing management cannot be overstated. It encompasses a range of activities such as market research, product development, pricing, promotion, and distribution. By employing strategic marketing techniques, businesses can not only identify and target their key customer segments but also differentiate their offerings from competitors, ultimately leading to increased sales and customer loyalty.
In the context of our project, the fact that we have a ready market in both the domestic and international arenas is a significant advantage. Bangladesh, with its growing population and increasing purchasing power, presents a promising market for milk products. Furthermore, the demand for milk and dairy products is not limited to the local market; there is also potential for export opportunities.
When comparing Bangladesh to neighboring countries, it becomes evident that the country possesses favorable conditions for milk production and marketing. Factors such as the availability of land, suitable climate, and a large number of dairy farms contribute to a thriving milk industry. Additionally, Bangladesh’s strategic geographical location offers convenient access to regional and global markets, enabling the export of milk products to neighboring countries and beyond.
To capitalize on these opportunities, our project must prioritize effective marketing management. This entails conducting thorough market research to understand consumer preferences, identifying target markets, and developing products that cater to their specific needs. Pricing strategies should be carefully formulated to ensure competitiveness while maintaining profitability. Promotion efforts should focus on creating brand awareness and highlighting the unique qualities of our milk products. Finally, an efficient distribution network should be established to reach both local and international customers in a timely and cost-effective manner.
In conclusion, while our project benefits from having a ready market in the country and abroad, proper marketing management remains a critical challenge for ensuring its success. By employing strategic marketing techniques and capitalizing on Bangladesh’s bright prospects for milk production and marketing, we can position ourselves for growth and profitability in this thriving industry.
8.4 Technical
The technology and process involved in this type of industry is not very uncommon in the country. The required technical personnel will also be available. The raw materials and other necessary materials are available locally at reasonable price.
8.5 Financial
From the financial point of view, the project seems to be rewarding and viable. The IRR of the project is 25.56%, which suggests a sound cash flow for the project. The other evaluating factors are also satisfactory in case of the project. The after tax return of the project is calculated as follows:
- Return on Total Assets : 23.98% (5th year)
- Return of the project’s total capital outlay : 22.27% (5th year)
Considering all aspects, as stated above, it can be concluded that the proposed project has a good potential for investment, and if it is implemented, it will certainly make a significant contribution to the ultimate development of the country.
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Excel formula and Word Template for Project Profile Preparation
Unlock your potential with the Microsoft Excel formula and Word file bundle, tailor-made for crafting professional project profiles. Empower yourself to kickstart a thriving consulting business or create impressive project profiles without outsourcing expenses. Easily downloadable project profile templates offer you the perfect starting point for your endeavors. Take control of your destiny, unleash your…
Prepared by…………………..
CBECL
Uttara Model Town, Dhaka-1230
Phone:01716752370 , Website : www.cbecl.com www.cbecl.info