[Table of Contents: i]

TABLE OF CONTENTS
Page no

SUMMARY 02

ORGANIZATION & MANAGEMENT ASPECT 06

TECHNICAL ASPECTS 10

MARKET ASPECTS 21

ECONOMIC ASPECTS 30
 [Table of Contents: ii]

ANNEXURE- PAGE NO

Fixed Cost of the project 33

Estimate for Construction of Buildings & Other Civil Works 34

List & Price of Importable Machinery and Equipments 36

List & Price of Local Machinery and Equipments 41

Details of Furniture and Equipment 46

Vehicles 47
Schedule of Implementation 48

Assessment of Working Capital 49

Forecast of Earnings 50

Sales Estimate 51

Cost of Good sold 52

General, Administrative & Selling Expenses 58

Loan Amortization Schedule 60

Break Even Analysis 61

Projected Cash Flow Statement 62

Financial Rate of Return 63

Debt-Service Coverage Ratio 64

Calculation of Pay Back Period 65
 FEASIBILITY REPORT
ON

Nilsagor Consumer Products Ltd.

Head office: 18/B, Bashati Horizon, House No-21, Road No-17, Banani, Dhaka
Factory: Tengonmari Bazar, Jaldhaka, P.O: 5300, Nilphamari Sadar, Nilphamari Nilphamari .

Summary
Page-1 Nilsagor Consumer Products Ltd.
 01. Name Of The Project : Nilsagor Consumer Products Ltd.
02. Location of the Project :

a) Factory : Tengonmari Bazar, Jaldhaka, P.O: 5300, Nilphamari

Sadar, Nilphamari .

b) Office (Corporate Office) : 18/B, Bashati Horizon, House No-21, Road No-17,
Banani, Dhaka
03. Sponsors :

04. Amount of loan

(a) Term loan
Amount : Tk. 1825.00 lac
Period of loan : 8 years excluding grace period
Rate of interest : 9%
Mode of payment : Half-yearly.
Debt-equity : 33 : 67
(b) Rate of Interest during construction period : 9%
(c) Working capital loan amount : Tk. 3200.00 lac (1st year)
(d) Loan Margin Ratio : 100
(e) Interest Rate of Working capital : 9%
05. Market : Domestic market.
06. Employment generation : 181 personnel of various categories.
07. Cost per Job : Tk. 11.52 lac.
08. Contribution to GDP : Tk. 2393.39 lac per annum

Page-2 Nilsagor Consumer Products Ltd.

 09. Cost of the project : The total fixed cost of the project has been
estimated at Tk. 5531.47 lac which is as under
(excluding Net working capital)

(Tk. in ‘Lac’)

Sl. Item Incurred To be Incurred Total

No LC FC Total
01. Land & Land development 1610 0 0 0 1610.00
02. Building 385 500.20 0 500.20 885.20
Other Civil Work 50 100 150.00
03. Imported Machinery & Equipment 157 1610 1610 1767.25
Local Machinery 32 154 0 186 186
04. Duty, tax, insurance, VAT, etc. 22 40.60 40.60 62.60
Internal Freight 10 20 20 30
05. Furniture, Fixture 50 30 0 30 80.00
06. Installation of Machinery 8 14 0 14 22.00
07. Security Deposit 7 10 10 17.00
08. Vehicle 400 300 300 700.00
09. Pre-operating expenses 8.8 12 12 20.80
10. Total fixed cost
11. Interest during construction (average 6 months interest)
Fixed cost of the project 2739.8 2790.8 0 2790.8 5531.47
Net working capital 3200 3200.00 3200.00
Total cost of the project (including Net working 8731.47
capital)

Page-3 Nilsagor Consumer Products Ltd.

 10. Means of Finance :

Item Bank Sponsor Total

Land & Land development 1610 1610.00
Building 300 585.2 885.20
Other Civil Work 150 150.00
Imported Machinery & Equipment 1400 367.25 1767.25
Local Machinery 140 46 186
Duty, tax, insurance, VAT, etc. 0 62.6 62.60
Internal Freight 0 30 30
Furniture, Fixture 0 80 80.00
Installation of Machinery 0 22 22.00
Security Deposit 17 17.00
Vehicle 700.00 700.00
Pre-operating expenses 20.00 20.00

Total fixed cost

5531.47
Net working capital 3200 3200.00
Total 5040 3691.47 8731.47

Page-4 Nilsagor Consumer Products Ltd.

11. Profitability : (Tk. In Lac)

Sl. Item 1st year 2nd year 3rd year 4th year 5th year
No.
1. Sales Revenue 1294848 1456093 1568741 1681115 1793488
2. Gross Profit 431832 486880 525709 564477 604943
3. Operating Profit 115476 135430 148762 161959 176718
4. Net profit before tax 73973 96215 111913 127450 144588
5. Ratio(s)
Gross Profit to sales 33 33 34 34 34
Operating profit to sales 9 9 9 10 10
Net profit to sales 6 7 7 8 8

12. Debt-Equity Ratio (excluding IDCP) : 33 : 67

13. Debt-Service Coverage Ratio : 1.61, 1.84, 2.02, 2.22 & 2.44 times during the first five
years of projected operation.

14. Break-Even Point : 30% of the rated capacity and 40% of the proposed capacity
utilization with sales volume of Tk. 6825.86 lac.

15. Financial Rate of Return : 30%.

16. Payback period : 5 years 1 months.

17. Cash Flow Statement : The cash flow statement has been made based on the
profitability estimate. The projection indicates that the
concern will have adequate cash generation to meet all the
operational expenses, pay for its investment-obligation and
a reasonable surplus to pay dividend, etc.

18. Overall Conclusion : The project proposal is found technically feasible, socially
and economically desirable, financially rewarding and
commercially viable. The project proposal may, therefore,
be considered suitable for investment.

Page-5 Nilsagor Consumer Products Ltd.

 Section-I

Organization & Management Aspects

01. Introduction :
The proposal envisages for setting up of a modern food production industry in the name & style
of Nilsagor Consumer Products Ltd. It is intend to produce hard and soft qualified biscuits of
different designs & flavoures, chanachur, chocolate Bar, Candy, Wefar, Toaste & Cookies,
Mustard Oil and Power drinks. The project will be established at Hospital Road, Shantinagor, P.O:
5300, Nilphamari Sadar, Nilphamari. The proposed project will be governed by a Private Limited
Company registered by the joint stock company.

02. Corporate Setup :

The form of identity of the project is a private limited company. It has been registered in
Registrarer of Joint Stock Company (RJSC) with the incorporation certificate no. C-109611/2013,
dated 10.06.2013. The name of the company is Nilsagor Consumer Products Ltd.

03. Authorized and paid up capital :

As per approved Memorandum and Articles of Association; the authorized capital of the company
is Tk. 60000000 (Six core) divided into 600,000 (Six lac) Ordinary share of Tk. 100.00 (one
hundred) each. The paid up capital of the company is Tk. 10.00 lacs.

04. Promoters and their share holding:

Sl No Name Share % Designation

01 Md. Sumsuzzoha Chowdhury 50% Managing Director
02 Md. Saber Ahmed 50% Chairman
05. Status of the project in the Govt. Policy:
The proposed project has been fallen under the thrust sector of Government Industrial Policy.

Page-6 Nilsagor Consumer Products Ltd.

06. Details Bio-data of the Sponsors :

Curriculum Vitae of Managing Director

Name : Md. Sumsuzzoha Chowdhury

Father’s/ Husband Name : Md. Rafique Chowdhury

Mother : Sharin Chowdhury

Nationality : Bangladeshi

Age/ Date of Birth : December 02, 1969

Present Address : Avenue: 1, Road: 2, House: 175, Mirpur DOHS, Dhaka

Permanent Address : 108, Lake Circus, Kalabagan, Dhanmondi, Dhaka -1205

District : Dhaka

Religion : Islam

Educational Qualification : M.S.S

Experiences : He has immense business experience. He has huge

reputation as a prominent and dynamic business man all over the country. He has visited many
countries of the world for business purpose and gathered knowledge.

Contract Number : 01730612609

Date:………………. Signature………………….

Page-7 Nilsagor Consumer Products Ltd.

 Curriculum Vitae of Chairman

Name : Md. Saber Ahmed

Father’s/ Husband Name : Md. Solaiman

Mother : Mrs. Faizunnessa

Nationality : Bangladeshi

Age/ Date of Birth : January 01, 1974

Present Address : Apr-A/2, House-4, Road-2/B, NAM Village, Banani, Dhaka

Permanent Address : Flat: 1A, 3/12, Iqbal Road, Mohammadpur, Dhaka

District : Dhaka

Religion : Islam

Educational Qualification : B.Sc Engineer

Experiences : He is very dynamic business man and has about 18 years

business experience

Contract Number : 01708128402

Date:………………. Signature………………….

Page-8 Nilsagor Consumer Products Ltd.

07. Management & Organization:
The overall management of the project will be vested with the Board of Directors. Board will
formulate company's policies and provide guidelines for business operations. The chairman of the
company will be the chief executive and he will look after day to day affairs of the project in
consultation with the director. These will be some expert teams of management including
technical personnel for smooth production of products. In every aspect, expert's personnel will be
appointed for smooth & comfortable running of the project. The whole management will be
clustered around a well build organization.

08. Conclusion:
Considering the experience of proprietors, their solvency and credit worthiness; the proposed
project can be established smoothly with the financial assistance from bank. Overall management
along with new recruited personnel, the project can be run profitability. Thus the proposed project
is feasible in management and organizational aspect.

Page-9 Nilsagor Consumer Products Ltd.

 Section-II

Technical Aspect
01. Background of the Project:
A lot of consumable food products are now imported in our country of which there is no scope
for value addition. Moreover, huge foreign currencies are being spent to pay for such imported
consumable food products. Management of the company observed the whole things and
decided to produce some consumable goods which have extensive demand in the local market
and also in the foreign countries like Middle-East, Europe, Canada, UK and USA. Also there is
scope to export in the seven-sisters of the Indian Eastern Zone. If bulk materials are imported
and are finally processed in our country then huge employment opportunities will be created
and a substantial amount of value addition will be made for our country with substantial
revenue earnings for the exchequer. About a decade back, processed Food was hardly available
in the market, whereas today a number of large and medium companies are involved in
processing and marketing such products. As more and more companies will come forward, the
nation will be benefited through two fronts. In one hand consumers will get quality food at a
cheaper price while the government will receive VAT and revenue for such production and
marketing.
There is huge demand for Chanachur, Laccha, Toast, Bread, Cake, Donut, Craem Roll, Danish,
Noodles, Achar, Spices, Ata, Moida, Suji, Automatic Rice, Sugar, Salt, Soad, Mustard Oil ,
Wafer, Biscuit & Chocolate Bar etc. But a little percentage is covered by the existing
industries. To cover the gap between supply and demand and to discourage import the company
management has decided to start a factory to facilitate production of such goods to meet up
local demand and to export to earn foreign currency. Because the existing supply source is
not sufficient to scope up with the incremental market demand. It will also create
employment opportunity and also ensure public health. The company management has decided
to install a plant to food produce like Chanachur, Laccha, Toast, Bread, Cake, Donut, Craem Roll,
Danish, Noodles, Achar, Spices, Ata, Moida, Suji, Automatic Rice, Sugar, Salt, Soad, Mustard
Oil , Wafer, Biscuit & Chocolate Bar etc.

02. Purpose and design :

The proposal envisages setting up of a different types of food products manufacturing industry
in the name and style of “Nilsagor Consumer Products Ltd. Located at Tengonmari
Bazar, Jaldhaka, P.O: 5300, Nilphamari Sadar, Nilphamari.The sponsors are established
businessman and well-qualified. They are now managing existing business very efficiently and
successfully. Before making decision for setting up of this type of manufacturing plant,
sponsors have gone through detailed survey covering production system, competitive costing,
market status, anomalies and barriers, profit margin, gaining prospect and other investment
related parameters. The existing demand has encouraged sponsors in making decision to set up
Page-10 Nilsagor Consumer Products Ltd.
 the proposed industry. The capital machinery for Chanachur, Laccha, Toast, Bread, Cake, Donut,
Craem Roll, Danish, Noodles, Achar, Spices, Ata, Moida, Suji, Automatic Rice, Sugar, Salt, Soad,
Mustard Oil , Wafer, Biscuit & Chocolate Bar etc production line including generators will be
imported from abroad. The total fixed cost of the project has been estimated at Tk. 5531.47 lacs
(excluding working capital) as per Annexure-I.

03. Product mix and Production capacity :

The product mix and annual production capacity of the project based on 16 (sixteen) hours per
day and 300 days in a year will be as under:

Products Unit Annual Production Capacity in

Crore

Ata
Candy (3gm/pc) Pcs 48.00
Toaste-Cookioes Kg 0.144
Biscuits (1000  16  300) Kg 0.48
Chocolate bar Kg 0.192
Chanachur Kg 0.096
Wafer (10gm/pc) Pcs 9.60
Bread Pcs 0.096
Cake Pcs 0.056
Mustard oil liter 0.327
Suzi Kg 0.115
Moida Kg 0.145
Automatic Rice Kg 0.093
Salt Kg 0.105
Soap Pcs .60
Sugar Kg 0.127
Noodles Kg 0.100
Donut/Cream Roll/Danish Pcs 0.076

There lies potential scope for the quality products to cater the demand of local market. The
products are getting customer’s confidence for the last few years. Remarkable growth is
observed, demand for different market creates scope for further investment in the industry.

Page-11 Nilsagor Consumer Products Ltd.

04. The Manufacturing Process:
Process Descriptions
The various products, namely Candy, Wafer, Toaste-cookies, Chanachur, Tang Powder Drinks,
Biscuit, Chocolate Bar and Mustard oil use different process as described below:
(1) BISCUIT PRODUCTION PROCESS:
Flour Mixing Dough Sheeting Moulding Baking
Oil Spraying Cooling Packing

(2) CANDY PRODUCTION PROCESS:

Sugar Dissolving Tank Pump Storage Tank Vacuum
Cooker Depositing Cooling Packing
(3) TOASTE-COOKIES PRODUCTION PROCESS:
Flour Mixing Dough Sheeting Baking
Overing Cooling Packing
(4) CHANACHUR PRODUCTION PROCESS:
Flour Mixing Dough Sheeting Baking
Ingredient Mixing Frying Cooling Packing

05. Chocolate Bar Production Process:

Dry Chocolate Ingredients Coca Mate rial Compressed Gas

Vortex Grinder Chiller

Chocolate Base

Cutting Other Chocolate

Ingredients

Tempering, Forming & Cooling

Packing

Page-12 Nilsagor Consumer Products Ltd.

 06. Wafer Production Process:
Dry wafer ingredients wafer materials Compressed bar

Grinder Chiller

Wafer base Others ingredient

Cutting

Tempering, forming, sizing, cooling

Packing

07. Tang power drinks production process:

Mixing of ingredients Flavour mixing Tempering Cooling
Packing.
08. Mustard Oil Production Process:
Collection/outsourcing bottle of different size with cap filling of
(mustard oil outsourcing) Capping, sealing and leveling
Packing.

05. Land and land development:

The proposed industry will be set up at Hospital Road, Shantinagor, P.O: 5300,
Nilphamari Sadar, Nilphamari covering an area of 53.66 decimal plain developed lands
which is well connected by road communication facilities. The project land valued at Tk. 3.00
lac per decimal, the total value of the proposed land has been estimated at Tk. 1610.00 lac. The
land has been developed by filling average 5ft depth of soil. The cost of which has been
included in land value. The power grids have crossed beside the project site. Considering the
above facilities, the proposed site has been selected for setting up the proposed industry.
Besides, the project have own internal road. The finished products & Raw Materials are to be
transported through this internal Road. All materials can be transported through road.

06. Building & Civil Works:

The space requirement has been worked out on the basis of preliminary layout plan provided
by the machinery and equipment supplying company. The factory building will be completed as
semipucca steel structure shed. The floor space of the project building has been estimated at
38,750 sft.
Page-13 Nilsagor Consumer Products Ltd.
 Biscuit production line and all other production line can be set up in this factory building. Again,
there exist a 4-storied pucca building covering a plinth area of 4,680 sft in each floor, a 3-storied
pucca building covering plinth area 1,479 sft in each floor and one single storied pucca building
with a plinth area of 4,558 sft. Thus a total plinth area of 27,715 sft is available in the project
premises as quality construction, where two small production lines, office cum officers quarter
and store cum godown can be accommodate easily. The total layout plan has been prepared for
establishment of the proposed project. All the constructions works will be performed as per plan
and design approved by the concerned authority.
A local engineering consulting firm and a local architect firm have been given the overall
responsibility for designing and supervising the civil engineering works under the design
guidance provided by the machinery suppler. A professional construction firm has already been
given job of construction works. The construction works will include building for production
facilities, crude & finished goods store, spare parts store, generator room, boiler room, pre-
fabricated overhead structure and others. Total cost of civil works has been estimated at 899.08
lac. Out of which Tk. 346.44 lac has already been incurred for existing construction works and
Tk. 552.64 lac is to be incurred for proposed works.
07. Imported machinery and equipment:
The project will be equipped with complete and balanced machinery together with auxiliaries
and equipment. The main machinery for the project will be imported from the reputed
manufacturer from India, Taiwan, Singapore, USA & China on Turn key Basis. The
Machinery & Equipment selection for the project has been done through careful study on the
basis of latest technology; appropriate knows how, climatic condition in our country, easier
method of production, etc.
For the selection of proposed Machinery, quotations/pro forma invoices from 3 local indenters
and foreign Manufacturers/ Suppliers have been submitted. On the basis of durability, cost
benefit and improved appropriate operational performance, the plant & machinery has been
selected by the sponsor’s.
Total C & F cost of imported machinery has been estimated at US$ 1217,020.00 and British
Pound 74,000.00 equivalent Taka 1435.31 lac (@ Tk. 83.50 per US$ Tk. 115.00 per pound). A
detailed list of the imported machinery and equipment is enclosed in the Annexure –
III.

08. Local Machinery and Equipment :

In addition to the imported machinery, the project will require some local machinery and
equipment such as chanachur production line, mustard oil production line, drinks unit Sub-station
including transformer, deep tube well, boiler and others. Total cost of local machinery has been
estimated at Taka 186.82 lac. A detailed list of the local machinery and equipment is
enclosed in the Annexure IV.

09. Installation Of Machinery:

Installation of main machinery will be done by local technical personnel under the direct
supervision of Experts/Engineers from supplier of foreign machinery. Agreement will be made
with supplier and project management in this regard. Engineers and highly skilled technical
Page-14 Nilsagor Consumer Products Ltd.
 personnel from China, Taiwan and Germany will be engaged in erection, installation &
operation of machinery and equipment. They will also be entrusted with for providing training
to the skilled personnel of the project regarding operation, maintenance of machinery etc. To
perform the whole work, they will have to stay for 90 days. The promoter will bear cost of
round-trip air fare, fooding, boarding, pocket allowances for which total cost has been assessed
at Taka 22.00 lac including local conveyance cost & fooding cost of local erectors.

10. Raw materials, consumable and packing materials:

Raw materials and consumable for candy, biscuit, instant noodles, chocolate bar will be
imported and locally procured. The requirement of raw material has been estimated as shown
below :

Item Share% Unit Quantity Unit price Total Tk. Source

in Tk. in '000'
a) Candy (3gm per pc)
01. Sugar 80% Kg 1152,000 60 69120 Local
02. Glucose 1% Kg 14,400 200 2880 Local
03. Flavour 1% kg 14,400 800 11520 Imported
04. Water 18% Kg 259,200 0 0 Local
Packing Material
05. Foil Pc 480000,000 0.08 38400 Local
06. Jar Pc 480000,000 0.04 19200 Local
07. Label Pc 480000,000 0.01 4800 Local
b) Toaste-Cookies (400gm/pck)
01. Flour 60% Kg 864,000 32 27648 Local
02. Palm oil 5% Kg 72,000 100 7200 Local

Page-15 Nilsagor Consumer Products Ltd.

 Item Share% Unit Quantity Unit price Total Tk. Source
in Tk. in '000'
03. Water 10% Kg 144,000 0 0 Local
04. Sugar 20% Kg 288,000 60 17280 Imported
05. Dalda 5% Kg 72,000 100 7200 Local
Packing Material
06. Foil pack 3600,000 2.00 7200 Local
07. Inner poly carton pack 3600,000 0.50 1800 Local
c) Biscuit
01. Flour 66% kg 3168,000 32 101376 Local
02. Sugar 5% kg 240,000 60 14400 Local
03. Dalda 2% kg 96,000 100 9600 Local
04. Glucose 2% kg 96,000 200 19200 Local
05. Flavor & Colour 1% kg 48,000 1050 50400 Imported
06. Palm oil 2% kg 96,000 100 9600 Local
07. Water 20% kg 960,000 0 0 Local
08. Salt 2% kg 96,000 30 2880 Local
Packing Material
09. Foil & Carton Kg 4800,000 10 48000 Local
d) Chocolate Bar
01. Coco Powder 25% Kg 480,000 400 192000 Imported
02. Flour 50% kg 960,000 32 30720 Local
03. Glucose 4% kg 76,800 200 15360 Local
04. Flavour 1% kg 19,200 800 15360 Imported
05. Water 20% kg 384,000 0 0 Local
Packing Material
06. Foil & lebel Pc 76800,000 0.25 19200 Local
07. Carton pc 76800,000 0.25 19200 Local
e) Chanachur
01. Flour 20% kg 192,000 32 6144 Local
02. Basson 60% kg 576,000 80 46080 do
03. Nuts 5% kg 48,000 150 7200 do
04. Pulses 2% kg 19,200 80 1536 do
05. Sugar 1% kg 9,600 60 576 do
06. Capsicum/pepper 2% kg 19,200 200 3840 do
07. Water 10% kg 96,000 0 0 do
Packing Material
08. Foil & label Pc 3840,000 0.40 1536 Local
09. Carton pc 3840,000 0.50 1920 Local

Page-16 Nilsagor Consumer Products Ltd.

 Item Share% Unit Quantity Unit price Total Tk. Source
in Tk. in '000'
f) Wafer
01. Flour 70% kg 672,000 32 21504 Local
02. Sugar 10% kg 96,000 60 5760 do
03. Cream 15% kg 144,000 800 115200 do
04. Butter/Dalda 2% kg 19,200 500 9600 do
05. Flavour 2% kg 19,200 1200 23040 do
06. Water 1% kg 9,600 0 0 do
Packing Material
07. Foil, label & carton Pc 96000,000 2.00 192000 Local
g) Tang powder drinks
01. Sugar 93.50% kg 897,600 60 53836 Local
02. Mango/Orange flavour 1% kg 9,600 1200 11520 Imported
03. Water 3% kg 28,800 0 0 Local
04. Other 2% kg 19,200 100 1920 do
05. Colour 0.50% kg 4,800 1000 4800 Imported
Packing Material
06. Foil & packing Pc 96000,000 1.00 9600 Local
h) Mustard Oil
01. Mustard oil (outsourcing) liter 3270,000 120 392400 Local
02. (a) Bottle 250ml pc 9000,000 5.50 49500 do
(b) Bottle 500ml pc 1800,000 7.50 13500 do
(c) Bottle 1000ml pc 120,000 8.50 1020 do
(e) Bottle cap pc 12000,000 0.50 6000 do
Packing Materials
03. Foil and packing pc 12000,000 2.00 24000 Local
Total raw materials required
(a) Imported : 325920
(b) Local : 1052800
Total packing materials required
(a) Imported : Nil
(b) Local : 386856

Page-17 Nilsagor Consumer Products Ltd.

11. Utilities :
(a) Water
Requirement of water will be meet through own deep tube well. Cost of Deep tube well
has been estimated at Taka 20.00 Lac. Cost of overhead and underground water tank
has been included in civil works.
(b) Power :
Electricity will be consumed from REB line. The electricity requirement for the project
has been estimated at 800 KW. For emergency electricity meet up 2-diesel generator of
500 KW each will be installed for supply of power during power failure. Cost of diesel
generator has been estimated at Taka. 85.10 Lac.
(c) Fuel & Lubricant :
The project will require various types of fuel and lubricants as detailed below :
Items Requirement per annum
Diesel for generator & Pickup Van, other vehicles 90,000 liters
Lubricating Oil & Grease 200,000/- per year

12. Office and Factory Furniture, Fixture & Equipment :

The project will require office and factory furniture, fixture and other assets. The cost of office
furniture, fixture and other assets has been estimated at Tk. 9.10 lac. It will also require furniture,
fixture and other assets for factory and for which an amount of Tk. 16.40 lac has been estimated.
Details of furniture, fixture and other assets has been shown in Annex – V.
13. Stores and Spares :
The supplier will provide 12 months spare parts along with the main plant. However, the
company may source the spare parts from the various suppliers including the machinery supplier
in order to meet-up the future requirement. Store & Spares and Consumables cost will be 0.5%,
1.0% , 1.5% & 2.0% of the machinery cost for 2nd, 3rd, 4th, 5th and onwards operation
respectively.
14. Repair and Maintenance :
The annual requirement of repair and maintenance for the machinery has been estimated at
@0.5%, 1.00%, 1.50% and 2.00% of its cost for the 1st, 2nd, 3rd, 4th and onwards respectively
and for building @ 0.5% every year.
15. Environmental issues:
The project will not emit any toxic or hazardous chemical. So, ETP is not Mandatory.
16. Technical and Administrative Personnel & Laborers:
The Group employs qualified professionals to look after the day-to-day management activities
of the company. The Company has already employed a CEO (Chief Executive Officer) who
has substantial experience in the Fast Moving Consumer Goods (FMCG) in the country. The
company has also engaged a number of experienced consultants for various activities such as
technical, financial and civil construction. These consultants have implemented such projects
earlier. The project will require about 181 personnel in production, marketing, Distribution,
Finance and Administration and will be employed as and when required.
The requirement of technical and other personnel based on 16 (Sixteen) hours operation per day
Page-18 Nilsagor Consumer Products Ltd.
 for 300 working days per annum are as follows :

Technical Personnel & Workers :

Sl. No. Name of the Post No. of Post

01. General Manager (factory) 1
02. Assistant General manager 2
03. HR Manager 1
04. Accountant 2
05. Chemist 1
06. Maintenance Engineer 2
07. Production In Charge 3
08. Supervisor 8
09. QC Staff 8
10. Mixer man 5
11. Skilled operator 15
12. Helper 20
13. Packing operator 10
14. Boiler operator 2
15. Transport Officer 1
16. Distributor 8
17. Cleaner 5
Total 94

Page-19 Nilsagor Consumer Products Ltd.

Administrative Staff

Sl. No. Name of the post No of Post

01. Chief Executive Officer 1
02. Commercial manager 2
03. Management Accounts & Finance 1
04. Commercial Officer 2
05. Merchandiser 2
06. Accounts Officers 2
07. Admin Officer 2
08. Regional sales Manager 5
09. Area Sales Manager 5
10. Territory Sales Officer 5
11. Sales Representative 20
12. Doctor 1
13. Security officer 2
14. Store Officer 2
15. Store Keeper 2
16. Nurse 1
17. Security Guard 9
18. Driver 4
19. Helper 4
20. Peon 2
21. Sweeper 3
Total 87

Total: 87+94=181

17. Schedule of Construction :

It is expected that the project will go into production within 6 (six) months from the date of
opening letter of credit for import of machinery. Details Schedule of implementation are shown in
Annexure-VII.

Page-20 Nilsagor Consumer Products Ltd.

 Section-III

Market Aspects
01. Introduction :
Biscuit, Bread and other bakery products have been the principal types of wheat foods used for a
long time. In view of the change in life style and eating habits of the people of all areas, both
urban and rural people prefer ready made food rather than having to cook which is time
consuming. As a result, bakery consumption is progressively increasing day by day and is gaining
popularity cutting across age or gender barriers. In Bangladesh, people have become accustomed
to consuming bakery products on regular basis,
Bakery products can last a long time provided they are stored properly. It is also relatively cheap
and affordable item during the day. Biscuits and other bakery products are very often consumed
complementary with tea.
There is a large market potential for bakery products who can secure firm market shares by
successfully promoting consumption in both urban and rural areas. Like any other consumer
product, the success of bakery products manufacturers will depend on their competitive pricing
policy and good marketing skills. Quality also remains an important factor. As a food item, bread,
biscuit and bakery products are the main source of getting carbohydrate required for maintaining
good health. Most of the people are looking bread, biscuit & other confectionery items as
breakfast as well as Tiffin. These items are consumed either directly or indirectly in the form of
fast food. Wheat is basic raw material for Bread and Biscuit. So, the diversification of food sector
by setting up bread and biscuit firms has a very significant implication for ensuring good health of
the people. Therefore, mechanized bread and biscuit producing units are needed to be set up in the
country for ensuring supply of quality bread, biscuit and bakery products.
Setting up of quality biscuit and bakery products manufacturing unit will not only meet the local
demand but also there are good prospect in other countries. In order to meet export demand, the
product must be of international standard. Bangladesh offers immense potential for production
and marketing of biscuit and other food products, as it’s main ingredient is wheat. In the
developed countries advanced technology is used to produce high class quality biscuit.
The product is designed to produce quality biscuit of highly scientific technology from locally
available raw materials. In Bangladesh, there has been a significant increase in use of quality
biscuit. Among the quality biscuits, a part is imported from Asian countries.
The urban people are now fond of consuming quality biscuit. The consumers are feeling a great
need for quality biscuit over the recent years. Therefore, a significant market opportunity exists in
our country for scientifically produced quality biscuit at affordable prices.

Page-21 Nilsagor Consumer Products Ltd.

02. Use :
Bread, biscuit and bakery products are consumed by the people as one of the basic food items all
over the country. People of all callings across the country are used to eat this food item several
times a day regularly. Besides, Patients, Students, Mobile/floating people also eat bread, biscuit
and other bakery products regularly. So, this food item is needed across the country in every
sphere of life by most of the people for economic reason. It has occupied a significant place in the
list of breakfasts and refreshments of mostly urban people. Generally, it is consumed in offices,
households, etc. of urban areas mainly for refreshment and breakfast purpose. It has also uses in
the household of well to do people of rural areas. It is also used by the traveler while on Journey.
People even can not think of refreshment and breakfast without bakery products.
Biscuit is a family of the candy group which is largely consumed by children and teenagers.
Biscuits can be savory, sweet, plain – baked, filled or coated (or a mixture of several of these
options). Some biscuits supply special dietary needs, such as those for high fiber, protein or
extra vitamins ( as in infant risks). Biscuits also contain fat and 11-4 often sugar, and are cut or
moulded into thin layers and baked rapidly and thoroughly. If packed in a moisture proof
material, biscuits can have a long shelf life. In every village in urban as well as rural areas
where there are shops there are one or two types of biscuits on the shelf. Biscuits are very
popular for they are sweet and ready to be served and above all affordable. Biscuits are,
therefore, in demand both in urban and rural areas.

03. Product Users :

The target users of bakery products are middle class, higher-middle class and upper class people.
Specially children are very much fond of such products. Market of bakery products would cover
whole Bangladesh.
Geographically whole Bangladesh will come under the market coverage of the proposed project.
But at the very initial stage it will concentrate only in major urban areas. People from all works of
life will come under the target group of the project.
The market can be segmented into three broad categories based on the consumption, purchase
behavior, income, etc. The segment is :

a) People living in rural areas.

b) Middle Class, Higher Middle Class and Upper Class people living in urban areas ; and
c) Consumers in international markets.

Page-22 Nilsagor Consumer Products Ltd.

04. Nature of Market :
Bread, Biscuits and other bakery products perishable in nature are treated as consumers’ goods.
The present market is sellers’ market which is dominated by a good number of automatic, Semi-
Automatic and cottage type biscuits and bread manufacturing units. These units have been sharing
their market by way of penetrating their products of different qualities and sizes in various
attractive packages. The consumers are therefore left with choices of biscuits, bread and other
bakery products of different qualities and purpose. The producers with appropriate marketing
strategies are getting their requisite market share in the domestic market. The demand for biscuit,
bread and other bakery products are rising day by day as the food taking habits of the people is
changing with education, culture and knowledge for keeping good health.
Global retail value sales of biscuits are predicted to reach US$68.2 billion in 2010, according
to Euro monitor International's estimates. Globally, sales are set to grow by 3% in retail
volume in 2010, a moderate improvement in relation to the 2.5% increase registered the
previous year. Qualitatively, biscuit manufacturers are continuing to focus on health trends,
adding further functionality to their existing product ranges. This is because indulgence in
biscuits, especially in developed markets, is no longer regarded as a differentiation treat from
more economical private label products.
Research shows that consumers are turning in increasing numbers to new product
developments that offer not only indulgence but also health properties. Interestingly, demand
for health and premiumisation is making rapid progress among middle- and upper-class
consumers in emerging regions as well.
This trend is underpinning demand for high added-value products in urban areas, which
account for the bulk of packaged biscuit consumption in developing countries. Biscuits are the
most consumable wheat-based bakery product. They are highly nutritious, easy to digest,
compact in size, can be preserved for a long time and are easily and cheaply transportable over
a long distance because of their lightweight.
The consumption of biscuits cuts across all ages and socio-economic classes. Biscuits are
served with tea or coffee in offices and in homes. Children and the aged take them during
parties everywhere and in all types of institutions. The domestic supply of biscuits consistently
lags behind demand partly because their production has always tended to be on small scale and
partly because hitherto most of the raw material inputs had been import-dependent. But with
the harsh economic effects of austerity, the scarcity and high cost of foreign exchange and the
forced need to look inwards for local raw material substitutes, there is hope today to fill part of
the demand-supply gap by engaging in biscuit production using local raw material substitutes.
One can engage in it on such a medium scale that will make investment in the project
worthwhile once the finance for its execution can be arranged. On the other hand, however, it
is also profitable to establish many small-scale biscuit factories to achieve the same purpose
using not only locally fabricated machinery and equipment but also local raw materials.

Page-23 Nilsagor Consumer Products Ltd.

 Biscuits will never cease to be a favorite of both the young and the old especially, school children
Tea time is biscuit time and lunch time snacks.’
Some of the factors that have helped promote high demand for biscuit as snacks in the country
include the changes in people’s eating habits, the ease with which these biscuits are picked up and
consumed, the general working conditions operating in the economy, the increasing number of
single workers, increasing population, greater urbanization, improving standard of living and
sophistication, the demand for bakery products etc. And with changing concepts of food and in
lifestyles, the demand for the product has been on the increase.
Bright prospects are therefore envisaged for new units to be set up in this area as research findings
show that only about 50% of local biscuit demand is met by local producers. The balance is met
by importation and smuggling. And now that there are bans here and there, there exists a nice
opportunity to be exploited by those who are interested in this cash generator of a business.

05. Domestic Demand Analysis :

The demand for bread, biscuits and other bakery products in Bangladesh is being met mainly by
domestic production. A trivial portion of the total demand is met by import. Bakery products have
more or less perfect mobility and main marketing centers have more or less connected with each
other by road, railways and water ways and as such call for macro level demand analysis. Being
consumer items its demand can be assessed on the basis of undertaking sample survey at the
consumers’ level which is difficult to undertake because of cost, time and staff constraints. In the
absence of a comprehensive consumer survey, the demand for such items may be projected on
this basis of per capita consumption, as detailed below :

- Per capita consumption per day has been assessed to be 20 grams.

- The annual growth of demand has been assessed @1.37% in
line with population growth (from 2016-2017 to 2018-2019).

Based on the above assumptions, the total demand for biscuits has been estimated as shown in
Table – I.
Table – I
Estimated Demand for Biscuit
(In metric Tons)
Year Population Per capita Total consumption
in million consumption/day (gram) in MT
2014-2015 146.00 20.00 1065800
2015-2016 147.80 20.00 1078940
2016-2017 149.60 20.00 1092080
2017-2018 151.40 20.00 1105220
2018-2019 153.20 20.00 1118609

Page-24 Nilsagor Consumer Products Ltd.

06. Supply :
The annual production of bread & biscuit may be seen in Table – II.
Table – II
Production of Bread & Biscuit

Year Quantity in MT a/
2014-2015 45952
2015-2016 48107
2016-2017 50262
2017-2018 52421
2018-2019 48212

It may be seen in Table – II that the annual production of bread & biscuits has increased from
45,952 MT in 2014-2015 to 48,212 MT in the year 2015-2016. The annual growth was 1.23%.
The average annual production during last 5 (five) years was 48,990 MT.
Discussion with a good number of major producers and institutional users reveals that there are 11
major automatic/semi-automatic biscuit manufacturing units producing quality bread and biscuits
sharing 40% of the total production. The annual production capacity of these 11 units is presented
in Table – III.
Table – III
Annual Production Capacity of 11 Units

Name of the Unit Annual Production

capacity in MT
01. Nabisco Bread & Biscuits Ltd., Dhaka. 5475
02. Bengal Biscuits Ltd., Barisal. 1825
03. Haque Brothers Ltd., Dhaka. 1825
04. Joti Biscuit Factory Ltd., Chuadanga. 1825
05. Al-Amin Biscuit Ltd., Noakhali 18250
06. Bangas Biscuit Ltd., Chuadanga 1825
07. Modern Bread & Biscuit Ltd., Dhaka. 1825
08. Olympic Ltd., Dhaka 43800
09. Glucose Biscuit & Dairy Milk Ltd., Dhaka, 3650
10. Olympia Ltd., Dhaka. 1825
11. Danis Foods 10950
Total 93075

Statistical Year book of Bangladesh – 2015, Page # 171.

Considering 40% of the total production, the country’s total production may be calculated at
2,32,687 MT (93,075 + 1,39,612)
There are a good number of non-mechanized bread and biscuit manufacturing units in the
Page-25 Nilsagor Consumer Products Ltd.
 country. These are producing sub-standard quality biscuits. Majority of them are not recognized
by BSTI. They share about 60% of the total production. The mechanized units has a great
potential to penetrate their market share into this segment.

07. Supply Gap :

The supply gap as worked out on the basis of demand and supply is given below in Table – IV.
Table – IV
Supply Gap
In ‘000’ MT
Year Demand Supply Gap
2014-2015 1066 233 833
2015-2016 1079 233 846
2016-2017 1092 233 859
2017-2018 1105 233 872
2018-2019 1118 233 885

B. Candy:
01. Demand :
People of all classes both urban and rural area are the probable consumer of candy. Empirical
observation reveals that the annual market size for candy stands at Tk. 200.00 crore.
02. Supply :
As against the demand, 10 leading units are producing candy, details of which are given below in
Table – V.
Table – V
Existing Supply

Name of the Unit Annual Production Capacity in MT

01. Perfecty 7200
02.Pran 9600
03. Globe 1200
04. Olympic 1500
05. Delicia 600
06. Elite 600
07. Hoque 600
08. Nabisco 600
09. ACI 1500
10. Danish 2000
Total 25400

Page-26 Nilsagor Consumer Products Ltd.

 Market Share :
A good number of non mechanized and cottage type biscuit and cottage of these type of
manufacturing units are located throughout the country. These units are producing sub-standard
products to cater to the needs of the domestic consumers. But they are not capable enough to
produce world class quality biscuits to compete with quality products available in the market. The
proposed project will be capable to produce quality products capable of competing with quality
products available in the domestic market. As such the project with may be able to occupy
significant share in the domestic market and to penetrate it’s product in the overseas market very
successfully and efficiently.

Availability of Raw Materials :

Availability of basic raw materials on which the project will depend is important factors for
smooth running of the project. The basic raw materials that will be required by the project are
flour and sugar. It has been ascertained from the market that these basic raw materials are
available abundantly from the local market as many existing industries have been producing and
supplying flour and sugar in the local market. Therefore, it is anticipated that the sponsors of the
project would not face any problem in procuring basic raw materials from the local wholesale
market for running the project successfully.
Input price :
The basic raw material will be flour which will be procured from the Govt. allotment/Local
source. The impact of raw material price will have significant effects on the production cost of
products of the unit by way of procuring from local source at the prevailing market prices.
Output Pricing :
Determination of appropriate output price is one of the sensitive factors for the successful
marketing of the products. The price of the products will be fixed in such a way as to be
competitive with the existing price structure of similar products available in the domestic market.
Keeping in view the existing price structure in the domestic market, the sponsors of the project
have fixed up the selling prices as shown in table – VIII.
Table – VIII
Sales Price of Products

Items of Product Sales Price in Tk.

Unit
01. Candy pcs 0.50
02. Toaste/Cookies pcks 40.00
03. Biscuits kg 90.00
04. Chocolate kg 200.00
05. Chanachur kg 120.00
06. Wafer pcs 5.00
07. Tang powder drinks kg 150.00
08. Mustard oil liter 162.00
Page-27 Nilsagor Consumer Products Ltd.
08. Marketing Strategies :
The sponsors will have to adopt appropriate marketing strategies with regard to product quality,
pricing, promotion and distribution. It will also have to keep constant watch on the local market
competitors in order to adopt appropriate marketing strategies to boost up their sales volume.
Since the sponsors are established businessman, they may use their experience and acumen in
harnessing the potential bread & biscuit market.
09. Product Quality :
The quality image of products will increase its creditability among the consumers. Maintenance of
quality for the food items is considered to be one of the most important aspects for the success of
a project. The products of the unit must ensure quality, other wise it will face much difficulty in
marketing the products in the domestic consumption market. To ensure the quality, the sponsors
of the project have proposed to use basic and appropriate raw materials and right type of
machinery supported by highly technical expertise capable of producing quality products. The
proposed project will take extreme precaution to maintain quality and it will also care for the
satisfaction of the clients. For this purpose it will collect customers views and comments
regarding taste and quality. Continuous product development and customers satisfaction is an
important issue in this case. The company will also pay proper attention and concentration for
attractive and better packaging.

10. Product Promotion :

At the initial stage of production, the sponsors of the project will undertake advertisement through
mass media like radio, television, bill boards, neon sign for popularizing the products among the
consumers. They may also publish leaflets to make the consumers aware the product quality and
the product price so that the consumers feel attracted to the products.

11. Personal Selling Approach :

Especially personal selling approach or face to face talk with the buyers (shop keepers) should be
given preference to promote the products. Therefore, sales representative would constantly visit
the wholesalers and retailers to promote the product. The representative will be selected after a
careful scrutiny and will be sent to the field after providing them with extensive training. This will
help maintaining the quality of its sales representative.

12. Display Outlets :

The product will be displayed in departmental stores, confectioneries and hotels in both
commercial and residential posh and also rural areas. The product can also be displayed in super
markets, chain and shopping malls. The sales outlet will contain small signboards notifying or
availability or point of eye that can easily catch the attention of the customers. It will also go for
joint arrangement with the shop owner for printing illustrated polymer signboard.

Page-28 Nilsagor Consumer Products Ltd.

13. Market Competition :
All the competitors are trying to find out niche markets these days. So, all the competitors are
trying to acquire a good market share in this segment. The competition is getting fierce. Many
competitors are thinking of offering (many are already doing this) attractive gifts or offers to the
customers (wholesaler, retailer) in order to achieve higher market share. Leading companies are
always trying to use the most modern technology in their production facilities. The quality is
increasing day by day.

14. Key Factors for the Success of the Company :

Key factors for the success of the company are as follows :
* Technical Know-how;
* Quality products;
* Attractive Packaging;
* Country wide own distribution network with low distribution cost;
* Motivated workforce;
* Dynamic Management;
* Promptness in decision making.
* Good working environment.

15. Distribution Channel :

The policy on distribution channel and flow of goods is largely dependent on the buying habit of
customers. Since high-middle class and upper middle class consumers will mainly consume the
product and as such the distribution system should be adopted in such a way that would be
effective. It has been found from the survey that the present distribution channel for the existing
competition is not that much organized. It is found that demand for a certain product exists in a
certain area as other products are not available in that area. So, the proposed items can take this
opportunity their advantage. The company will distribute their product in district town through its
own distribution channel. It will have a large number of sales depots and vehicles to ensure wider
coverage.
These type of products should be distributed through dealer/agent to be selected for important
strategic parts of the country. The channel of communication with the dealer/agent has to be very
organized. They would also be responsible for promoting the product brand name in their locality.
For marketing of the product, the country will have agents area wise who with their own carrying
van will supply the product to the shopping mall, mega shop, departmental stores and
confectionery shops

Page-29 Nilsagor Consumer Products Ltd.

 Section-IV

Economic Aspects

Employment Opportunity:
The project will require a total number of 181 persons of various categories. Cost per employment after to
be generated works out to Taka 8.52 lac.

Contribution to GDP:
On completion, the project will add Tk. 1393.39 lac to the Gross Domestic Product of the country per
annum as detailed below :
(Taka in 000)
A : Sales (2nd year) : 1456093
B: Less: Inter-firm transaction :
Raw Material : 896168
Stores & Spares : 1938
Repair and maintenance : 2388
Water, Power & Fuel : 18261
Rent, Tax & Insurance : 4080
Postage, telephone, fax, e-mail : 350
Stationery & Printing : 350
Traveling & Conveyance : 1400
Promotion & marketing expense : 291219
Others : 600
Total : 1216754
Contribution to GDP (A-B) : 239339

Page-30 Nilsagor Consumer Products Ltd.

 Section-V

Financial Aspects

01. Cost of the Project :

The total cost of the project has been estimated at Tk. 8731.4 lac (including IDCP & Net WC)
which is as under:

(Tk. in ‘000’)

Sl. Item Incurred To be Incurred Total

No LC FC Total
01. Land & Land development 1610 0 0 0 1610.00
02. Building 385 500.20 0 500.20 885.20
Other Civil Work 50 100 150.00
03. Imported Machinery & Equipment 157 1610 1610 1767.25
Local Machinery 32 154 0 186 186
04. Duty, tax, insurance, VAT, etc. 22 40.60 40.60 62.60
Internal Freight 10 20 20 30
05. Furniture, Fixture 50 30 0 30 80.00
06. Installation of Machinery 8 14 0 14 22.00
07. Security Deposit 7 10 10 17.00
08. Vehicle 400 300 300 700.00
09. Pre-operating expenses 8.8 12 12 20.80
10. Total fixed cost
11. Interest during construction (average 6 months
interest)
Fixed cost of the project 2739.8 2790.8 0 2790.8 5531.47
Net working capital 3200 3200.00 3200.00
Total cost of the project (including Net working 2739.8 5990.8 8731.47
capital)

Page-31 Nilsagor Consumer Products Ltd.

02. Means of Finance :

Item Bank Sponsor Total

Land & Land development 1610 1610.00
Building 300 585.2 885.20
Other Civil Work 150 150.00
Imported Machinery & Equipment 1400 367.25 1767.25
Local Machinery 140 46 186
Duty, tax, insurance, VAT, etc. 0 62.6 62.60
Internal Freight 0 30 30
Furniture, Fixture 0 80 80.00
Installation of Machinery 0 22 22.00
Security Deposit 17 17.00
Vehicle 700.00 700.00
Pre-operating expenses 20.00 20.00

Total fixed cost

5531.47
Net working capital 3200 3200.00
Total 5040 3691.47 8731.47

03. Financial Evaluation :

Profitability potential of the project has been estimated for five years of operation to assess the
financial viability of the project. The assumptions underlying the earning forecast are as follows:
a) The project will operate for 16 working hours per day and 300 working days in a year;
b) The capacity build-up has been assumed to be achieved gradually at the rate of 60%, 65%, 70%,
75% and 80% in the 1st, 2nd, 3rd, 4th and 5th years and remaining years of operation ;
c) Price of raw materials and finished goods have been assumed to remain constant throughout the
projected years of operation with the assumption that any increase in the price of raw materials will
be offset by the corresponding increase in the price of finished goods ;
d) Sales prices of the proposed products have been assumed on the basis of market price of such
product;
e) Stock of work-in-process has been considered for 2 day ;
f) Stock of finished goods has been estimated for 10 days ;
g) Annual increment of 5% has been considered for calculation of wages and salaries and bonus of
two months basic pay also been provided ;
h) Depreciation has been charged on straight line methods at the following rates:

- Building - 05%
- Machinery - 10%
- Other Assets - 20%

i) Economic life of the project has been assumed to be 10 (ten) years without any major replacement.

Page-32 Nilsagor Consumer Products Ltd.

 Annexure-I

Fixed Cost of the Project

(Break up)

(Tk. in ‘000’)

Sl. Item Incurred To be Incurred Total

No LC FC Total
01. Land & Land development 1610 0 0 0 1610.00
02. Building 385 500.20 0 500.20 885.20
Other Civil Work 50 100 150.00
03. Imported Machinery & Equipment 157 1610 1610 1767.25
Local Machinery 32 154 0 186 186
04. Duty, tax, insurance, VAT, etc. 22 40.60 40.60 62.60
Internal Freight 10 20 20 30
05. Furniture, Fixture 50 30 0 30 80.00
06. Installation of Machinery 8 14 0 14 22.00
07. Security Deposit 7 10 10 17.00
08. Vehicle 400 300 300 700.00
09. Pre-operating expenses 8.8 12 12 20.80
10. Total fixed cost
11. Interest during construction (average 6 months
interest)
Fixed cost of the project 2739.8 2790.8 0 2790.8 5531.47
Net working capital 3200 3200.00 3200.00
Total cost of the project (including Net working 2739.8 5990.8 8731.47
capital)

Page-33 Nilsagor Consumer Products Ltd.

 Annexure-II

Estimate for Construction of Buildings & Other Civil Works

A. Details estimate for construction works so far done in the project premises as per plan &
design:

Sl. Description of Construction Works so far Quantity Rate Amount

No done as per plan (sft) per
Unit
01. One storied pucca building construction with 4,558 1250.00 5697,500.00
RCC colm, beam, roof as factory building and
be used for production line; measuring 106-0
43-0 = 4,558 sft plinth area including all other
facilities complete as per plan and design.
02. 4-storied pucca RCC building to be used as 18,720 1250.00 23400,000.00
factory building in ground floor and all other
floor will be used store cum godown for lower
weighted raw materials and finished products,
packing unit for chanachur line, mustard oil
line. The building measuring 78-0 60-0 =
4,680 sft plinth area in each floor and total
plinth area is 4  4,680 = 18,720 sft.
03. 3-storied office building cum officers quarter 4,437 1250.00 5546,250.00
and guest house as per plan and design
complete; each floor plinth area 51-0 29-0
= 1,479 sft plinth area in each floor and total
plinth area is 3  1,479 = 4,437 sft.
Total 27,715 - 34643,750.00

Page-34 Nilsagor Consumer Products Ltd.

B. Details estimate for construction works to be done as factory building and other civil works as
per plan & design:

Sl. Construction Works details as per plan and Quantity Rate Amount
No design to be complete (sft) per
Unit
01. Semi pucca steel structural factory building 38,570 1000.00 38750,000.00
with pucca CC floor, masonry works/brick
walls up to 10-0 height above plinth level, MS
angle truss, beam, column, etc. complete as per
requirement and plan-design (310-0 125-0)
= 38,570 sft plinth area with food-color floor.
02. Semi pucca steel structure building as utility 4,000 1000.00 4000,000.00
building as per above specifications and plan-
design complete; covering a plinth area 100-
0 40-0 = 4,000 sft.
03. Semi pucca raw materials godown & finished 9,000 1000.00 9000,000.00
goods godown; as per above design and
specification with required plan & design
complete; covering a plinth area 180-0 50-
0 = 9,000 sft
04. Construction of boundary wall; with RCC 1,343 sft 1500.00 2014,500.00
column, grade beam, Tie beam, 5 brick wall up
to 6-6 height, above grade beam, plastering,
white washing, etc. complete as per
requirement.
05. Main gate; with RCC column in both end of 200 2000.00 400,000.00
gate and steel gate as per requirement; 20-0
10-0 = 200 sft
06. Guard room, public toilet, urinal, etc. as per LS LC 500,000.00
requirement.
07. Approach road, internal road, surface drain, LS LS 600,000.00
sanitary line, electric connection, etc. complete
as per requirement for the projects purpose.
Total cost (To be required) - - 55264,500.00
Total Construction Cost (A+B) - - 89908,250.00

Page-35 Nilsagor Consumer Products Ltd.

 Annexure-III
List & Price of Importable Machinery and Equipments

A. Biscuit production line machineries (1000 kg per hour hard & soft biscuit) :

Sl. Description of the Machinery Model Quantity Unit Rate Total

No. (US$) Price
(US$)
01. WH250S horizontal dough mixer (mixing 2 31,850.00 63,703.00
capacity 250kgs, stainless steel cover,
heavy type blade, two speed) 304 SS
blade, 304 SS cover tub, double speed
mixer
02. Resting trucks for dough ferment 2 3,912.00 7,823.00
(250kgs, 304 stainless steel) resting
trucks for dough ferment (250kgs, 304
stainless steel)
03. Automatic tipping machine 304 #SS & 1 set 10,478.00 10,478.00
PU belt
04. Dough cutting and conveying machine 1 set 20,955.00 20,955.00

05. Three roll combination sheeter hard 1 31,851.00 31,851.00

dough feeding, pre-press roll  350mm
06. Guage roller C hard dough press 2 pcs 1 25,146.00 25,146.00
roll  300mm
07. Guage roller C hard dough press 2 pcs 1 25,146.00 25,146.00
roll  300mm
08. Guage roller D hard dough press 2 pcs 1 30,035.00 30,035.00
roll  350mm
09. Transition machine for hard dough 1 9,500.00 9,500.00
loosen
10. Rotary cutter for hard biscuit forming 1 31,851.00 31,851.00
11. Separating machine 1 10,477.00 10,477.00
12. Scrap collection & return system; hard 1 10,477.00 10,477.00
dough crap reuse
13. Rotary molder soft biscuit forming, 1 31,851.00 31,851.00
including 2 moulds
14. Sugar sprinkler collection & transition 1 10,477.00 10,477.00

Page-36 Nilsagor Consumer Products Ltd.

 Sl. Description of the Machinery Model Quantity Unit Rate Total
No. (US$) Price
(US$)
15. Salt/sugar sprinkler 1 9,500.00 9,500.00
16. Oven enter stove 1 11,875.00 11,875.00
17. Gas oven 1 set 321,310.00 321,310.00
17.01 Oven driver @ belt automatic tension @ 50m 0
rectification device
17.02 Sweep net machine 1 0
18. Oven driver & Belt automatic tension @ 1 31,443.00 31,433.00
rectification device
19. Out stove & Peeling machine 1 9,500.00 9,500.00
20. 180 degree U-turn machine 1 18,860.00 18,860.00
21. Cooling conveyor (25m) length 25m 1 31,432.00 31,432.00
22. Stacker (wheels & penny) 1 17,463.00 17,463.00
23. Packing Table (15m) 1 20,955.00 20,955.00
24. Metal detector 1 11,875.00 11,875.00
25. Hard biscuit mould 2 Free 0
26. Soft biscuit mould 2 Free 0
27. Oil sprayer 1 20,256.00 20,256.00
28. SK 320 flow packing machine 2 6,985.00 13,970.00
29. One row sandwich machine attached flow 1 25,845.00 25,845.00
packing machine
Total FOB in China (US$) - - - 864,044.00

B. Chocolate Bar Production Line with Packing Machine (400kgs per hour) :

Sl. Description of the Machinery Model Quantity Price (US$)

No.
01. Sugar grinding mill FTJ250 1 4,686.00
02. Ball mill QMJ500 1 43,571.00
03. Chocolate Storage Tank (capacity- 1000L) BWG1000 1 7,916.00
04. Chocolate Delivery Pump SJB32 3 6,570.00
05. Chocolate Mould 28020030 1 24.00
06. Tooling cost for moulds - 1 1141.00
07. Conche machine JMJ500 1 12,432.00
08. Packing machine KD-320 1 8,761.00
Total price FOB (US$) - - 85,101.00

Page-37 Nilsagor Consumer Products Ltd.

C. Machinery and Equipments for Candy Line (300kgs per hour) :

Sl. Description of the Machinery Capacity Quantity Total

No. Price
(US$)
01. Milk and Glucose storage tank 300 L 2 sets 6,147.00
02. Auto weighing and mixing system 400kg/hr 1 set 22,352.00
03. Transfer pump 1.5 KW 3 sets 3,144.00
04. Storage tank 200 L 1 set 2,236.00
05. Micro film cooker 300kg 1 set 35,764.00
06. Steel cooling belt 2M 1 set 69,850.00
07. Batch roller 300-400kg/hr 1 set 18,440.00
08. Die forming machine 1600 pcs/min 1 set 27,940.00
09. Cooling tunnel - 1set 20,955.00
10. Automatic pillow type packing machine 600 pcs/min 4 sets 41,352.00
Total price FOB (US$) - - 248,180.00

D. Machinery for Wafer production line (200kgs per hour) :

Sl. Description of the Machinery Quantit Unit price Total Price

No. y (US$) (US$)
01. 45 pair plates oven gas oven 1 83,540.00 83,540.00
02. Sheet received machine for wafer sheets from oven 1 3,492.00 3,492.00
03. Cooling tower door cooking tower 1 14,668.00 14,668.00
04. Sheet picking machine for wafer sheets from 1 3,492.00 3,492.00
cooling tower
05. Cream spreading machine with roller heating 1 32,271.00 32,271.00
system one color (cream or chocolate available)
06. Cooling cabinet 3 layers cooling tower 1 30,036.00 30,036.00
07. Cooling compressor 5HP 1 11,176.00 11,176.00
08. Sheets laminated machine 06 layers laminated 1 3,073.00 3,073.00
09. Cutting machine knife cut type 1 16,065.00 16,065.00
10. Batter mixer for mixing & storage 1 13,970.00 13,970.00
11. Electric controlled box for full line 1 6,985.00 6,985.00
12. Horizontal cream mixer capacity 200L 1 14,669.00 14,669.00
13. Smashing machine for broken wafers recycles 1 1,817.00 1,817.00
14. One pusher wafer packing machine for packing 1 25,805.00 25,805.00
15. Sk-320 flow packing machine for packing 1 6,985.00 6,985.00
Total - - 268,044.00
Page-38 Nilsagor Consumer Products Ltd.
E. Machinery for Toaste-Cookies production line (300kgs per hour) :

Sl. Description of the Machinery Quantity Unit Total Price

No. price (US$)
(US$)
01. Special heavy duty automatic mixer with variable
speed, sturdy body, heavy duty gear box & 5HP,
AC drive and Crompton/Siemens motor, capacity
120 liters bowl size.
The mixer can mix up to 45kgs of flour plus other
material of cookies in one cycle.
The maximum time taken by the mixer is 15
minutes/cycle.
The mixer can run on different speeds which are
controlled by AC drive.
There is no manual transmission of gears.
It is all electronically controlled by the AC drive.
The mixer fitted with scraper and the mixer doesn't
need manual intermittent mixing.
The mixer comes with 2 blades, one for cookies &
one for cakes.
The mixer has one removable bowl with wheels
which detaches from the mixer without opening the
scraper or the blades;
the bowl can be taken to the dropping machine
Neither the blade, nor the scrappers need to be
opened after every mixing.
The machine operators on 2 phase 415V AC power
supply.
Capacity of the mixer is 160kgs/hour
Including Auto Lifting features:
The bowl of the mixer can be taken up & down by
motorized system. It is fitted with a gear box,
motor AC drive limit switches & control switches.
Including extra bowl with wheels:
One extra bowl with wheels of the same size to
reduce the idle time & increase the production to
maximum.
Total - - 151,651.00

Page-39 Nilsagor Consumer Products Ltd.

F. Import of Diesel Generator with all accessories (Complete Set) :

Sl. Description of the Machinery Quantity Unit Total Price

No. price (pound)
(pound)
01. Sanding diesel generator of 500KVA capacity 2 sets 37,000.00 74,000.00
(Engine-Perkins, Origin-UK, Brand- CPS)
Total - - 74,000.00

Synopsis of Importable Machinery

Sl. Description of the Machinery Unit price Total Price

No. (Tk.)
01. Biscuit Production line US$ 864,044.00 72147,674.00
02. Chocolate Bar production line US$ 85,101.00 7105,933.50
03. Candy production line US$ 248,180.00 20723,030.00
04. Wafer production line US$ 268,044.00 22381,674.00
05. Toaste and cookies production line US$ 151,651.00 12662,858.50
06. Diesel Generator (2 sets) British Pound 74,000.00 8510,000.00
Total - 14,35,31,170.00

Note:
(a) Tk. 83.50 = US$ 1.00
(b) Tk. 115.00 = British Pound 1.00

Page-40 Nilsagor Consumer Products Ltd.

 Annexure-IV

List & Price of Local Machinery and Equipments

A. Capital machinery for production line of Chanachur (200kgs per hour) with packing
Machinery :
Sl. Description of the Machinery Quantit Unit Rate Total
No. y (Tk.) Price (Tk.)
01. S.S. Besson/Maida, auto khamir mixer machine, capacity 2 units 350,000.00 700,000.00
50kg, heavy gear motor, easy operating system, power
440V complete set
02. Auto Stutter chanachur making machine, capacity 1500- 2 units 270,000.00 540,000.00
2000kg per shift, heavy gear motor, power 440V/220V
complete set
03. Automatic fully S.S. Food grade chanachur masala mixture 1 unit 370,000.00 370,000.00
machine, products chanachur, dal, motor, jhal muri, chips
and different products capacity 50-60 kg, basic time 15-20
minute, heavy gear motor, power 440V/220V complete set
04. Auto oil separator senti-Fuse machine, full body S.S. Food 2 units 275,000.00 550,000.00
grade, double jacket system, oil chamber, drain line, product
chanachur, dal, motor, badam and different product capacity
1500-2000kg per shift complete set
05. M.S. Kori 42181/4 chanachur fryer 4 units 75,000.00 300,000.00
06. S.S. Sos pane square type 20/20 4 units 85,000.00 340,000.00
07. S.S tray (boat) 563010 6 units 120,000.00 720,000.00
08. S.S tray 428 4 units 75,000.00 300,000.00
09. S.S net jar 402416 4 units 75,000.00 300,000.00
10. Auto besson shifter machine S.S power 220V complete set 1 unit 250,000.00 250,000.00
11. Badam bazar kobri SS 4 unit 80,000.00 320,000.00
12. M.S/S.S dal mixture hatal 2 units 80,000.00 160,000.00
13. Anchor dal and different product auto crashing machine, 1 unit 270,000.00 270,000.00
capacity 2000-3000kg per shift, power 440V complete set
14. Fully automatic from fill and seal pneumatic PLC 3 units 575,000.00 1725,000.00
computerize system, best quality vertical packing machine,
product chanachur, dal, motor, badam, jhal muri and
different product packing machine with Nitrogen flashing
system, capacity up to 200gm, your demand packing size
100-200 gm, speed 25-60 pcs per minute, packing style
center seal pillow pack, pouch materials any how laminated
heat sealarable film, bag size length 190mm, width 170mm,
contact parts S.S. 304 grade and machine body fully S.S.
covering with speed control gear motor, electric, consume
1.8/2.5 kw, power 220V complete set.
15. Fully automatic computerize system manufacturing and 750,000.00 750,000.00
expiry or batch number date codding machine with auto
conver, letter format or write English, Arabic, Bangla
product for bottle, can any how product all item complete
set
Total - - 7595,000.00

Page-41 Nilsagor Consumer Products Ltd.

B. Machinery for leveling, capping and packing in Mustard Oil production (only bottling,
leveling) line (2500 bottle per hour) :

Sl. Description of the Machinery Quantit Unit Rate Total Price

No. y (Tk.) (Tk.)
01. Mustard oil auto bottle filling machineries, product 1 unit 450,000.00 450,000.00
oil and all liquid item capacity up to 1000ml, size
200-400 ml, filling nozzle pneumatic solonite valve 4
head timing/sensor system speed 2000-2500 pcs per
hour. Machine body fully S.S. and S.S. pump motor
power 220V complete set
02. Semi auto bottle capping machine single head 1 unit 150,000.00 150,000.00
capacity up to 1000ml bottle, speed 2000-2500 pcs
per hour. Power 220V complete set
03. Oil reserve and transfer tank capacity 5,000 ltr, fully 1 unit 650,000.00 650,000.00
S.S. 3mm body 4 mm bottom food grade inlet outlet
and wash line looking for label pipe and S.S. valve
with fitting complete set
04. Oil reserve and storage tank for filling machine 1 unit 180,000.00 180,000.00
connection, capacity 1000 ltr. Fully S.S. 2mm food
grade in let outlet and wash line looking for label
pipe and S.S. valve with fitting complete set
05. Oil filtrations system double lear S.S. fine mesh 1 unit 350,000.00 350,000.00
washing and easy clearing system complete set
06. S.S. service table 843034 complete set 1 unit 40,000.00 40,000.00
07. Oil transfer line S.S. pump motor, pionium pump 1 unit 180,000.00 180,000.00
motor 1HP with pipe fitting full plant, Power 220V
complete set
Total - - 2000,000.00

Page-42 Nilsagor Consumer Products Ltd.

C. Machinery & Equipments for Tang Powder Drinks Unit (Mango Powder Drinks 200kg per
hour) :
Sl. Description of the Machinery Quantit Unit Rate Total Price
No. y (Tk.) (Tk.)
01. Auto fluid bed dryer S.S food grade 304 sheet 3-4mm 1 unit 2000,000.00 2000,000.00
capacity 60-100kg batch, product best color and quality
drying time 20-30min blower motor 15HP heater capacity
36KW power 440V/220V product saline, tang powder or
different product and pharmaceutical cosmetic item, with
canvas cloth 1 set, product looking for glass label easy
operating machine complete set
02. Product container fully S.S 304 food grade 3-4mm 4 2 units 350,000.00 700,000.00
wheel easy operating capacity 100kgs, complete set
03. High speed multi sugar crasser machine fully S.S good 1 unit 450,000.00 450,000.00
grade capacity: 150-200kg per hour; power 440-220V
complete set
04. Woven dryer 48 tray fully S.S food grade inside 1.5-1mm 1 unit 850,000.00 850,000.00
sheet, outside magnet sheet, dryer jacket system insulation
in out fully S.S digital heat control, auto stop, 3 china
blower temperature up to 200C heater 8-10kw; capacity
60-100kg, batch product; instant drink, saline, power 440-
220V complete set
05. Auto mass (U)-mixture machine all contact parts food 1 unit 550,000.00 550,000.00
grade 304 S.S body frame MS heavy motor gear box,
capacity 60-100kg, batch time 15-20 minutes, power 440-
220V complete set
06. Shifter, vibrator system fully SS food grade 304 sheet, 2 units 375,000.00 750,000.00
capacity 150-200kg/hour, power 440-220V complete set
07. S.S food grade 304 tray and trolley 4 wheel, capacity 3 units 70,000.00 210,000.00
100kg (Toli 300kg) complete set
08. Auto double cone blender mixer machine all contact parts 1 unit 540,000.00 540,000.00
food grade 304 SS body frame MS heavy gear motor,
capacity 100kg batch time 15-20 minute, product any how
powder, load-unload easy operating, power 440-220V
complete set
09. Fully automatic from fill and seal pneumatic 5 units 690,000.00 3450,000.00
computerized system product tang saline or powder and
different product packing machine capacity: 3-25gm, size
18-25gm speed 50-70 per minute, packing style 3/4 site
seal pouch materials laminated heat seal arable film S.S
covering, all contract S.S food grade, motor, gear box,
electric panel, photo seal camera system, power 220V
10. Fully automatic hud humidifier damage and moisrige free 2 units 175,000.00 350,000.00
food, cosmetic pharmaceuticals item for packing room,
capacity- 20 liter, power- 200V
11. S.S service table size 84Ý30Ý34 2 units 75,000.00 150,000.00
Total - - 100,00,000.00

Page-43 Nilsagor Consumer Products Ltd.

D. Local Machinery & Equipments for Candy and Chocolate line :
SL. No. Description Amount in Taka
1 Electric cable, switch, socket etc. 1000,000.00
2 Cable tray and clamp 200,000.00
3 Exhaust Fan-10 Sets @ 25,000/- each 250,000.00
4 Water Line Pipe (for cooling) 250,000.00
5 Air Conditioner 3 nos. @ 70,000/- each 210,000.00
6 Insulation and Gas Wool for Chilled Water 200,000.00
7 Gate valve, Tap, Meter etc. 320,000.00
8 SS (304) Pipe Line for Syrup Transferring, Joint, 550,000.00
Welding, Elbow and Fittings
9 Anchor Bolt, Royal Plug, Screw and Bolt, Cable Tie 150,000.00
10 Water Line Pipe (for cooling) 280,000.00
11 Industrial Stabilizer for total Production 2 nos. 2000,000.00
13 SS Trolley 5 no. 250,000.00
Total 56,60,000.00

E. Local Machinery and Equipments for Toast, Cookies, Wafer & Biscuit Line:

SL. No. Description Amount in Taka

1 Electric cable, switch, socket, etc 1000,000.00
2 Cable tray and clamp 300,000.00
3 Exhaust Fan-20 Sets 250,000.00
4 Water Line Pipe (for cooling) 280,000.00
5 Air Conditioner 10 no. 280,000.00
6 Insulation and Gas Wool for Chilled Water 200,000.00
7 Gate valve, Tap, Meter etc. 320,000.00
8 SS (304) Pipe Line for Syrup Transferring, Joint, 550,000.00
Welding, Elbow and Fittings
9 Anchor Bolt, Royal Plug, Screw and Bolt, Cable Tie 150,000.00
10 Water Line Pipe (for cooling) 580,000.00
11 Boiler (2 ton) – 1 Unit 2050,000.00
12 Industrial Stabilizer 2 nos. @ 1000,000/- 2000,000.00
13 SS Trolley 10 no. 500,000.00
Total 8460,000.00

Page-44 Nilsagor Consumer Products Ltd.

F. Utilities machinery and Equipments (Local) :

Sl. Description of the Machinery Quantit Unit Rate Total Price

No. y (Tk.) (Tk.)
01. Sub-station 1000 KVA including HT, LT 1 set 7000,000.00 7000,000.00
switchgear, PFI plant, etc. complete
02. Deep tube well including commissioning etc. 1 unit 2000,000.00 2000,000.00
complete
03. Cables, wire, angle, etc. LS LS 400,000.00
Total - - 9400,000.00

Synopsis of Local Machinery & Equipments for the Project

Sl. Descriptions Quoted Price

No. (Tk.)
A. Capital machinery for production line of Chanachur (200kgs per hour) with 7595,000.0
packing Machinery
B. Machinery for Mustard Oil distribution line 2000,000.00
C. Machinery and Equipments for production of Mango powder drinks unit 10000,000.00
D. Local auxiliary machinery & equipments for Candy & Chocolate line 5660,000.00
E. Local auxiliary machine for Biscuits, Toast-Cookies and Wafer line 8460,000.00
F. Utilities machinery and equipments for the project 9400,000.00
Total cost for the Local Machinery & Equipments 431,15,000.00

Page-45 Nilsagor Consumer Products Ltd.

 Annexure-V

Details of Furniture and Equipment

A. Factory furniture & fixtures:

Sl. Items Quantity Unit Price Total
No. (in Tk.) (Tk. in `000')
1 Computer Set 2 45000 90
2 Printer 1 15000 15
3 Stapler 20 100 2
4 Calculator 10 500 5
5 Dining Table 2 15000 30
6 Dining Table Chair 12 3000 36
7 Fan 20 3000 60
8 Tower Fan 6 7000 42
9 Exhaust Fan 5 1800 9
10 Ware drove 4 20000 80
11 Fax 1 50000 50
12 Empty Drum 50 3500 175
13 Solar panel 2 30,000 600
14 Scale 100 Kg. 2 12000 24
15 Scale 50 Kg. 6 6000 36
16 Refrigerator 20 cft. 2 50000 100
17 Tools Set 4 5000 20
18 CC Camera 4 40000 160
19 Energy Saving Light 120 300 36
20 Telephone set 8 2500 20
21 Loader Trolley 5 10000 50
Sub-Total - - 1640
B. Office furniture & fixtures:
Sl. Items Quantity Unit Price Total
No. (in Tk.) (Tk. in `000')
1 Computer Set 4 45000 180
2 Printer 1 15000 15
3 Stapler 10 200 2
4 Calculator 10 500 5
5 Interior Design Working Station Office 1 400000 400
6 Revolving Chair 4 12000 48
7 Air condition 2 60,000 120
8 Telephone 6 5000 30
9 Modem 4 3000 12
10 Steel Almirah 2 20000 40
11 Computer table 4 4000 16
12 Executive Chair 3 14000 42
Sub-Total - - 910
Grand Total - - 2550

Page-46 Nilsagor Consumer Products Ltd.

 Annexure-VI
Vehicles

Sl. Type Unit Quantity Unit Total

No. Price (Tk. in `000')
(in Tk.)
01. Pick-up Van No 1 2000,000 2000
02. Delivery Van No 2 2600,000 5200
Total - - - 7200

Page-47 Nilsagor Consumer Products Ltd.

 Annexure-VII

Schedule of Implementation

01. Agreement with bank 1st month

02. Building construction 1st month
03. Establishment of letter of credit for machinery (after 60% completion of civil works) 3rd month
04. Arrival of machinery at port 6th month
05. Arrival of machinery at site 7th month
06. Building construction completed 6th month
07. Machinery installation to be completed 10th month
08. Electrification & Sanitation to be completed 10-11th month
09. Trial run 12th month
10. Normal operation to be started 12th month

Page-48 Nilsagor Consumer Products Ltd.

 Annexure-VIII

Assessment of Working Capital

(Figure in ‘000’)

Current Asset Tied up 1st year 2nd year 3rd year 4th year 5th year
Period
Imported Raw 60 days 79101 82370 90629 98888 100147
Material
Local Raw 15 days 61584 68216 72848 78480 82162
Material
Work in 2 days 11904 12082 12073 14928 15886
Process
Finished Goods 10 days 58750 62395 68850 64303 79698
Stock
Receivables 10 days 88250 98670 98416 112162 118908

Stores & 90 days 291 581 872 1163 1163

Spares
Other Expenses 30 days 20120 20644 21314 21994 22607

Total 320000 344958 365002 391918 420571

Cash Credit 320000 344958 365002 391918 420571

(100% of the
requirement)

Page-49 Nilsagor Consumer Products Ltd.

 Annexure-IX

Forecast of Earnings

(Figure in ‘000’)

Sl. Item 1st year 2nd year 3rd year 4th year 5th year
No.
1. Sales Revenue 1294848 1456093 1568741 1681115 1793488
2. Cost of Goods Sold 863016 969213 1043032 1116638 1188545
3. Gross Profit 431832 486880 525709 564477 604943
4. Administrative & Marketing Expenses 316356 351450 376947 402518 428225
5. Operating Profit 115476 135430 148762 161959 176718
6. Financial Expenses 41503 39215 36849 34509 32130
7. Net profit before tax 73973 96215 111913 127450 144588
8. Income Tax (37.5%) 27740 36081 41967 47794 54221
9. Net profit after tax 46233 60134 69946 79656 90367
10. Retained earnings 46233 60134 69946 79656 90367
11. Cummulative retained earnings 46233 106367 176313 255969 346336
12. Ratio(s)
Gross Profit to sales 33 33 34 34 34
Operating profit to sales 9 9 9 10 10
Net profit to sales 6 7 7 8 8
Debt-service coverage ratio 1.61 1.84 2.02 2.22 2.44

Page-50 Nilsagor Consumer Products Ltd.

 Annexure-X

Sales Estimate

(Figure in ‘000’)

Sl. Item 1st year 2nd year 3rd year 4th year 5th year
No.
1. Revenue at rated capacity 2247480 2247480 2247480 2247480 2247480
2. Capacity Utilization 60% 65% 70% 75% 80%
3. Revenue at Capacity Utilization 1348488 1460862 1573236 1685610 1797984
4. Add : Opening stock of WIP for 2 days 0 8990 9739 10488 11237
5. Total Revenue 1348488 1469852 1582975 1696098 1809221
6. Less : Closing Stock of WIP for 2 days 8990 9739 10488 11237 11987
7. Sales revenue 1339498 1460113 1572487 1684861 1797234
8. Add : Opening stock of FG for 10 days 0 44650 48670 52416 56162
9. Sales revenue 1339498 1504763 1621157 1737277 1853396
10. Less : Closing Stock of FG for 10 days 44650 48670 52416 56162 59908
11. Total Sales revenue 1294848 1456093 1568741 1681115 1793488
Net Sales 1294848 1456093 1568741 1681115 1793488

Assumptions:

01. Operating hour : 16 hrs/day

02. Working days : 300 days in a year
03. Work in process : 2 days
04. Finished goods stock : 10 days
05. Sales revenue :

Name of the product Unit Quantity Quantity after Unit Total Tk.
(‘000’) 10% production price in In (‘000’)
lost (‘000’) Tk.
Candy (3gm/pc) Pcs 480,000 432,000 0.50 216000
Toast-Cookies (400gm/pc) Pcks 4,800 4,320 40.00 129600
Biscuits Kg 4,800 4,320 90.00 388800
Chocolate bar Kg 1,920 1,728 200.00 345600
Chanachur Kg 960 864 120.00 103680
Wafer (10gm/pc) Pcks 96,000 86400 5.00 432000
Tang dry drinks kg 960 864 150.00 129600
Mustard oil (bottled) liter 3270 3100 162.00 502200
Total - - - - 2247480

Page-51 Nilsagor Consumer Products Ltd.

 Annexure-XI

Cost of Good sold

(Figure in ‘000’)

Sl. Item 1st year 2nd year 3rd year 4th year 5th year
No.
1. Raw Materials 827232 896168 965104 1034040 1102976
2. Wages & Salaries 25858 27151 28509 29934 31431
3. Stores & Spares 969 1938 2908 3877 3877
4. Repair & Maintenance 1419 2388 3358 4227 4227
5. Depreciation 22353 22353 22353 22353 22353
6. Power, Fuel & Lubricant at utilized 16856 18261 19666 21071 22475
capacity
7. Rent, tax & insurance 4080 4080 4080 4080 4080
8. Cost of Production 898767 972339 1045978 1119582 1191419
9. Add : Opening Stock of WIP for 2 day 0 5992 6482 6973 7464
10. Total Work in Process 898767 978331 1052460 1126555 1198883
11. Less : Closing Stock of WIP for 2 day 5992 6482 6973 7464 7943
12. Cost of Goods manufactured 892775 971849 1045487 1119091 1190940
13. Add : Opening Stock of FG for 10 days 0 29759 32395 34850 37303
14. Goods available for sale 892775 1001608 1077882 1153941 1228243
15. Less : Closing Stock of FG for 10 days 29759 32395 34850 37303 39698
Cost of goods sold 863016 969213 1043032 1116638 1188545

Page-52 Nilsagor Consumer Products Ltd.

01. Requirement of Raw Material: (Figure in ‘000’)

Item Share Unit Quantity Unit price Total Tk. Source

% in Tk. in '000'
a) Candy (3gm per pc)
01. Sugar 80% Kg 1152,000 60 69120 Local
02. Glucose 1% Kg 14,400 200 2880 Local
03. Flavour 1% kg 14,400 800 11520 Imported
04. Water 18% Kg 259,200 0 0 Local
Packing Material
05. Foil Pc 480000,000 0.08 38400 Local
06. Jar Pc 480000,000 0.04 19200 Local
07. Label Pc 480000,000 0.01 4800 Local
b) Toaste-Cookies (400gm/pck)
01. Flour 60% Kg 864,000 32 27648 Local
02. Palm oil 5% Kg 72,000 100 7200 Local
03. Water 10% Kg 144,000 0 0 Local
04. Sugar 20% Kg 288,000 60 17280 Imported
05. Dalda 5% Kg 72,000 100 7200 Local
Packing Material
06. Foil pack 3600,000 2.00 7200 Local
07. Inner poly carton pack 3600,000 0.50 1800 Local
c) Biscuit
01. Flour 66% kg 3168,000 32 101376 Local
02. Sugar 5% kg 240,000 60 14400 Local
03. Dalda 2% kg 96,000 100 9600 Local
04. Glucose 2% kg 96,000 200 19200 Local
05. Flavor & Colour 1% kg 48,000 1050 50400 Imported
06. Palm oil 2% kg 96,000 100 9600 Local
07. Water 20% kg 960,000 0 0 Local
08. Salt 2% kg 96,000 30 2880 Local
Packing Material
09. Foil & Carton Kg 4800,000 10 48000 Local
d) Chocolate Bar
01. Coco Powder 25% Kg 480,000 400 192000 Imported
02. Flour 50% kg 960,000 32 30720 Local
03. Glucose 4% kg 76,800 200 15360 Local

Page-53 Nilsagor Consumer Products Ltd.

 Item Share Unit Quantity Unit price Total Tk. Source
% in Tk. in '000'
04. Flavour 1% kg 19,200 800 15360 Imported
05. Water 20% kg 384,000 0 0 Local
Packing Material
06. Foil & lebel Pc 76800,000 0.25 19200 Local
07. Carton pc 76800,000 0.25 19200 Local
e) Chanachur
01. Flour 20% kg 192,000 32 6144 Local
02. Basson 60% kg 576,000 80 46080 do
03. Nuts 5% kg 48,000 150 7200 do
04. Pulses 2% kg 19,200 80 1536 do
05. Sugar 1% kg 9,600 60 576 do
06. Capsicum/pepper 2% kg 19,200 200 3840 do
07. Water 10% kg 96,000 0 0 do
Packing Material
08. Foil & lebel Pc 3840,000 0.40 1536 Local
09. Carton pc 3840,000 0.50 1920 Local
f) Wafer
01. Flour 70% kg 672,000 32 21504 Local
02. Sugar 10% kg 96,000 60 5760 do
03. Cream 15% kg 144,000 800 115200 do
04. Butter/Dalda 2% kg 19,200 500 9600 do
05. Flavour 2% kg 19,200 1200 23040 do
06. Water 1% kg 9,600 0 0 do
Packing Material
07. Foil, lebel & carton Pc 96000,000 2.00 192000 Local
g) Tang powder drinks
01. Sugar 93.50% kg 897,600 60 53836 Local
02. Mango/Orange flavour 1% kg 9,600 1200 11520 Imported
03. Water 3% kg 28,800 0 0 Local
04. Other 2% kg 19,200 100 1920 do
05. Colour 0.50% kg 4,800 1000 4800 Imported
Packing Material
06. Foil & packing Pc 96000,000 1.00 9600 Local

Page-54 Nilsagor Consumer Products Ltd.

 Item Share% Unit Quantity Unit price Total Tk. Source
in Tk. in '000'
h) Mustard Oil
01. Mustard oil (outsourcing) liter 3270,000 120 392400 Local
02. (a) Bottle 250ml pc 9000,000 5.50 49500 do
(b) Bottle 500ml pc 1800,000 7.50 13500 do
(c) Bottle 1000ml pc 120,000 8.50 1020 do
(e) Bottle cap pc 12000,000 0.50 6000 do
Packing Materials
03. Foil and packing pc 12000,000 2.00 24000 Local
Total raw materials required
(a) Imported : 325920
(b) Local : 1052800

Assumptions:

Description 1st Year 2nd Year 3rd Year 4th Year 5th Year
Imported 195556 211848 228144 244440 260736
Local 631680 684320 736960 789600 842240
Total 827236 896168 965104 1034040 1102976

Page-55 Nilsagor Consumer Products Ltd.

02. Wages & Salaries: (Figure in ‘000’)

Sl. No. Name of the Post No. of Post Monthly Salary Total
1 General Manager (factory) 1 60000 720
2 Assistant General manager 2 40000 960
3 HR Manager 1 40000 480
4 Accountant 2 15000 360
5 Chemist 1 50000 600
6 Maintenance Engineer 2 40000 960
7 Production In Charge 3 25000 900
8 Supervisor 8 20000 1920
9 QC Staff 8 20000 1920
10 Mixer man 5 10000 600
11 Skilled operator 40 12000 5760
12 Helper 20 8000 1920
13 Packing operator 16 12000 2304
14 Boiler operator 2 15000 360
15 Transport Officer 1 20000 240
16 Distributor 10 12000 1440
17 Cleaner 10 6000 720
Total 132 22164

Description 1st Year 2nd Year 3rd Year 4th Year 5th Year
Salaries 22164 22164 23272 24436 25658
Increment 5% 0 1108 1164 1222 1283
Total 22164 23272 24436 25658 26941
Bonus 2 months basic 3694 3879 4073 4276 4490
Total salary 25858 27151 28509 29934 31431

03. Water, Power & Fuel :

Water : Own deep tube well
Power :
(i) Connected load : 800 kw
(ii) Maximum demand : 800 kw
(iii) Unit : 800 × 0.8 × 16 (average) × 300 = 3072,000
(iv) Cost : 3072,000 × 7 = 2,15,04,000.00
(v) Fuel : 90000 liters × 71.00 = 6390,000.00
(vi) Lubricating oil : 200,000/- per year

Total- 280,94,000.00 per annum.

Page-56 Nilsagor Consumer Products Ltd.

Sl. Requirements 1st 2nd 3rd 4th 5th
No. year year year year year
04. Stores & Spares : On Machinery cost, vehicle & 969 1938 2908 3877 3877
equipments cost considered @ 0.50%, 1%, 1.5%, 2%,
2% for the machinery, vehicle & equipment for the 1 st,
2nd, 3rd, 4th & 5th year respectively (193846)
05. (a) Repairs & Maintenance: On Machinery, vehicle 969 1938 2908 3877 3877
equipments (193846)
(b) on Building cost @ 0.50% in each year (89908) 450 450 450 450 450
Total 1419 2388 3358 4327 4327
06. Rent, Tax & Insurance : 4080 4080 4080 4080 4080
1% on Fixed cost of the project (407950)

07. Depreciation :
Depreciation Item Amount Depreciation
Rate Amount
Machinery & Equipment 186646 10% 18665
Building 89908 2.5% 2248
Vehicle 7200 20% 1440
Total - - 22353

Page-57 Nilsagor Consumer Products Ltd.

 Annexure-XII

General, Administrative & Selling Expenses

(Figure in ‘000’)
Sl. Item 1st year 2nd year 3rd year 4th year 5th year
No.
1. Directors Remuneration (2 directors) 4800 4800 4800 4800 4800
2. Salary (Administration) 48916 51361 53929 56625 59457
3. Stationery& Printing 300 350 400 450 500
4. Travelling & Conveyance 1200 1400 1600 1800 2000
5. Depreciation & Write off 870 870 870 870 870
6. Audit Fee 500 500 500 500 500
7. Post, Telephone, email etc 300 350 400 450 500
8. Promotion & marketing expense (20% 258970 291219 313748 336223 358698
of total cost)
9. Miscellaneous Expense 500 600 700 800 900
Total 316356 351450 376947 402518 428225

Sl. No. Name of the post No of Post Monthly Total

Salary (in '000')
1 Chief Executive Officer (CEO) 1 200000 2400
2 Commercial manager 2 40000 960
3 Management Accounts & Finance 1 40000 480
4 Commercial Officer 2 25000 600
5 Merchandiser 2 40000 960
6 Accounts Officers 2 25000 600
7 Admin Officer 2 25000 600
8 Regional sales Manager 10 40000 4800
9 Area Sales Manager 10 30000 3600
10 Territory Sales Officer 20 25000 6000
11 Sales Representative 130 10000 15600
12 Doctor 1 50000 600
13 Security officer 2 20000 480
14 Store Officer 2 20000 480
15 Store Keeper 4 15000 720
16 Nurse 2 8000 192
17 Security Guard 9 10000 1080
18 Driver 4 10000 480
19 Helper 4 6000 288
20 Peon 6 8000 576
21 Sweeper 6 6000 432
Total 222 41928

The marketing of food products-based industry is heavily commission based & advertisement
based industry. As, this company is a new one. So, 20% of total net sales revenue is considered as
products promotion & marketing expense.

Page-58 Nilsagor Consumer Products Ltd.

 (Figure in ‘000’)

Item 1st year 2nd year 3rd year 4th year 5th year
Salaries 41928 41928 44024 46225 48536
Increment 5% 0 2096 2201 2311 2427
Total 41928 44024 46225 48536 50963
Bonus 2 months basic 6988 7337 7704 8089 8494
Total Salary 48916 51361 53929 56625 59457

Depreciation & Write Off Amount Depreciation

Rate Amount
Furniture & Fixture 2550 20% 510
Pre-Operating Expense 1800 20% 360
Total 4350 - 870

Page-59 Nilsagor Consumer Products Ltd.

 Annexure-XIII
Loan Amortization Schedule
Enter values Loan summary
Loan amount 1,825 Scheduled payment 162
Scheduled number
Annual interest rate 9.00 % 16
of payments
Actual number of
Loan period in years 8 16
payments
Number of payments per Total early
2 -
year payments
Start date of loan 01-03-21 Total interest 774
Optional extra payments
Lender NILSAGOR CONSUMER
name: PRODUCTS LTD.

Extra
Pmt. Payment Beginning Scheduled Total Interes Ending Cumulative
Payme Principal
No. Date Balance Payment Payment t Balance Interest
nt

1 01-09-21 1,825 162 - 162 80 82 1,745 82

2 01-03-22 1,745 162 - 162 84 79 1,661 161
3 01-09-22 1,661 162 - 162 88 75 1,573 235
4 01-03-23 1,573 162 - 162 92 71 1,481 306
5 01-09-23 1,481 162 - 162 96 67 1,386 373
6 01-03-24 1,386 162 - 162 100 62 1,285 435
7 01-09-24 1,285 162 - 162 105 58 1,181 493
8 01-03-25 1,181 162 - 162 109 53 1,072 546
9 01-09-25 1,072 162 - 162 114 48 957 594
10 01-03-26 957 162 - 162 119 43 838 637
11 01-09-26 838 162 - 162 125 38 713 675
12 01-03-27 713 162 - 162 130 32 583 707
13 01-09-27 583 162 - 162 136 26 447 733
14 01-03-28 447 162 - 162 142 20 304 754
15 01-09-28 304 162 - 162 149 14 155 767
16 01-03-29 155 162 - 155 148 7 - 774

Page-60 Nilsagor Consumer Products Ltd.

 Annexure-XIV

Break Even Analysis

(At the fourth year)

(Figure in ‘000’)

01. Sales Revenue at 75% Capacity 1685610

02. Total Cost: Operational, Administrative & Financial 1551009

Sl. Item Total Cost Fixed Cost Variable

No. Cost
1 Raw Materials 1034040 0 1034040
2 Wages & Salaries 29934 898 29036
3 Stores & Spares 3877 295 3582
4 Repair & Maintenance 4227 537 3690
5 Depreciation and write off 23223 23223 0
6 Fuel & Lubricant 21071 332 20739
7 Rent, tax & Insurance 4080 4080 0
8 Salary (Administration) 56625 45300 11325
9 Stationery& Printing 450 50 400
10 Travelling & Conveyance 1800 100 1700
11 Audit Fee 500 250 250
12 Post, Telephone, email etc 450 450 0
13 Promotion & marketing expense 336223 0 336223
14 Financial expense 34509 16088 18421
Total 1551009 91603 1459406
15 P/V Ratio : Sales-Variable cost/ Sales 0.13420
16 Break Even Point (Sales) = Fixed Cost/P/V Ratio 682586 40% of capacity utilization
30% of rated capacity

Page-61 Nilsagor Consumer Products Ltd.

 Annexure-XV

Projected Cash Flow Statement

(Figure in ‘000’)

Sl. Sources of Fund Const. 1st year 2nd year 3rd year 4th year 5th year
No. Year
1 Paid up Capital & Margin 187950 48379 4279 4044 4052 3924
2 Increase in current Liability 0 113000 9700 9500 9500 9200
3 Operating Profit 0 115476 135430 148762 161959 176718
4 Depreciation & Write off 0 23223 23223 23223 23223 23223
5 Bank's term Loan 220000 0 0 0 0 0
6 Interest during construction 14300 0 0 0 0 0
Total 422250 300078 172632 185529 198734 213065
7 Utilization of Fund 407950
8 Increase in current assets 0 161379 13979 13544 13552 13124
9 Payment of Interest 0 41503 39215 36849 34509 32130
10 Re-payment of term Loan 0 27500 27500 27500 27500 27500
11 Payment of IDCP 0 2860 2860 2860 2860 2860
12 Payment of Tax 0 27740 36081 41967 47794 54221
13 Total 407950 260982 119635 122720 126215 129835
14 Cash Surplus/Deficit 14300 39096 52997 62809 72519 83230
15 Opening Balance of Cash 0 14300 53396 106393 169202 241721
16 Closing Balance of Cash 14300 53396 106393 169202 241721 324951

Page-62 Nilsagor Consumer Products Ltd.

 Annexure-XVI
Financial Rate of Return

(Figure in ‘000’)
Year Cost Benefit Net Benefit NPV at 25% NPV at 30%
0 553147 0 (553147) (553147) (553147)
1 161379 138699 (22600) (18144) (17441)
2 13979 158653 144674 92591 85647
3 13544 171985 158441 81122 72091
4 13552 185182 171630 70368 60071
5 13124 199941 186817 61276 50254
6-10 0 199941 199941 176148 131161
Salvage value 0 339838 339838 29192 18962
Total - - - 84603 (7205)

Financial Rate of Return = 29.61%  30%

Assumptions :
01. The economic life of the project has been estimated to be 10 years without any major replacement.
02. The fixed cost of the project has been estimated at Tk. 4079.50 lac
03. Benefit of the project has been estimated as appended.
(Tk. In ‘000’)
Operating Year Operating Profit Depreciation Total
1 115476 23223 138699
2 135430 23223 158653
3 148762 23223 171985
4 161959 23223 185182
5 176718 23223 199941
6-10 176718 23223 199941

Item Cost Recovery Percent Total

Land 101100 100% 101100
Building 89908 5% 4495
Machinery 186646 10% 18665
Inventories 215578 100% 215578
Total - - 339838

Inventories:
Year Amount
0 0
1 161379
2 13979
3 13544
4 13552
5 13124
Total 215578

Page-63 Nilsagor Consumer Products Ltd.

 Annexure-XVII
Debt-Service Coverage Ratio

(Figure in ‘000’)

Income 1st year 2nd year 3rd year 4th year 5th year
Net Profit 46233 60134 69946 79656 90367
Depreciation & write-off 23223 23223 23223 23223 23223
Financial expenses 41503 39215 36849 34509 32130
Total 110959 122572 130018 137388 145720
Obligation
Financial expenses 41503 39215 36849 34509 32130
Installment of term loan 27500 27500 27500 27500 27500
Total 69003 66715 64349 62009 59630
Debt-Service Coverage Ratio(Time) 1.61 1.84 2.02 2.22 2.44

Page-64 Nilsagor Consumer Products Ltd.

 Annexure-XVIII

Calculation of Pay Back Period

Total cost & equity involved in the target : 553147

(Figure in ‘000’)

Sl. Income 1st year 2nd year 3rd year 4th year 5th year
No.
1. Net Profit 46233 60134 69946 79656 90367
2. Depreciation & write off 23223 23223 23223 23223 23223
Total 69456 83357 93169 102879 113590

('000')
Year Amount to be Amount Available for Balance
recovered recovery
1. 553147 69456 483691
2. 483691 83357 400334
3. 400334 93169 307165
4. 307165 102879 204286
5. 204286 113590 90696

Pay back period approximately 5.1 years

Page-65 Nilsagor Consumer Products Ltd.