Pre-Feasibility Study

Transcription

1 Pre-Feasibility Study (Sheep Fattening Farm) Small and Medium Enterprises Development Authority Ministry of Industries & Production Government of Pakistan HEAD OFFICE 4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road, Lahore Tel: (92 42) , Fax: (92 42) REGIONAL OFFICE Punjab 3 rd Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road Lahore, Tel: (042) Fax: (042) helpdesk.punjab@smeda.org.pk REGIONAL OFFICE Sindh 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) Fax: (021) helpdesk-khi@smeda.org.pk REGIONAL OFFICE Khyber Pakhtunkhwa Ground Floor State Life Building The Mall, Peshawar. Tel: (091) Fax: (091) helpdesk-pew@smeda.org.pk REGIONAL OFFICE Balochistan Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) , Fax: (081) helpdesk-qta@smeda.org.pk Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost December, 2013

2 Table of Contents 1. DISCLAIMER purpose of the document Introduction to SMEDA Introduction to Scheme Executive Summary Brief description of Project & Product Critical Factors Installed & Operational Capacities Geographical Potential for Investment Potential Target Markets / cities Production Process Flow Breed Selection Characteristics of Breeds Recommended for Sheep Fattening: Project Cost Summary Project Economics Project Financing Project Cost Space Requirement Machinery and Equipment Human Resource Requirement Revenue Generation CRITICAL FACTOR Annexure Income Statement Project Balance Sheet Project Cash Flow Statement USEFUL PROJECT MANAGEMENT TIPS USEFUL LINKS Key Assumption... 17

3 1. DISCLAIMER This information memorandum is to introduce the subject matter and provide a general idea and information on the said subject. Although, the material included in this document is based on data / information gathered from various reliable sources; however, it is based upon certain assumptions which may differ from case to case. The information has been provided on as is where is basis without any warranties or assertions as to the correctness or soundness thereof. Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information. SMEDA, its employees or agents do not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. The contained information does not preclude any further professional advice. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information which is necessary for making an informed decision, including taking professional advice from a qualified consultant / technical expert before taking any decision to act upon the information. For more information on services offered by SMEDA, please contact our website: 2. PURPOSE OF THE DOCUMENT The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective, the document / study covers various aspects of project concept development, start-up, production, marketing, finance and business management. The purpose of this document is to facilitate potential investors in Sheep Fattening Farm by providing them a general understanding of the business with the intention of supporting potential investors in crucial investment decisions. The need to come up with pre-feasibility reports for undocumented or minimally documented sectors attains greater imminence as the research that precedes such reports reveal certain thumb rules; best practices developed by existing enterprises by trial and error, and certain industrial norms that become a guiding source regarding various aspects of business set-up and it s successful management. Apart from carefully studying the whole document one must consider critical aspects provided later on, which form basis of any investment decision. SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 2

4 3. INTRODUCTION TO SMEDA The Small and Medium Enterprises Development Authority (SMEDA) was established in October 1998 with an objective to provide fresh impetus to the economy through development of Small and Medium Enterprises (SMEs). With a mission "to assist in employment generation and value addition to the national income, through development of the SME sector, by helping increase the number, scale and competitiveness of SMEs", SMEDA has carried out sectoral research to identify policy, access to finance, business development services, strategic initiatives and institutional collaboration and networking initiatives. Preparation and dissemination of prefeasibility studies in key areas of investment has been a hallmark of SME facilitation by SMEDA. Concurrent to the prefeasibility studies, a broad spectrum of business development services is also offered to the SMEs by SMEDA. These services include identification of experts and consultants and delivery of need based capacity building programs of different types in addition to business guidance through help desk services. 4. INTRODUCTION TO SCHEME Prime Minister s Small Business Loans scheme, for young entrepreneurs, with an allocated budget of Rs. 5.0 Billion for the year , is designed to provide subsidised financing at 8% mark-up per annum for one hundred thousand (100,000) beneficiaries, through designated financial institutions, initially by National Bank of Pakistan (NBP) and First Women Bank Ltd. (FWBL). Small Business Loans upto 2 million with tenure up to 8 years, inclusive of grace period of 1 year and a debt: equity of 90: 10 will be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA). SMEDA has been tasked with an advisory role in the implementation of PM s scheme by providing fifty (50) updated pre-feasibilities for referencing by SME beneficiaries and participating banks to optimally utilize their financial resources. 5. EXECUTIVE SUMMARY Sheep Fattening Farm is proposed to be located at suitable areas of Balochistan. The project is related to Sheep fattening purposes, the total capacity is 450 Sheep with initial utilization of 70% (315 sheep). Project Cost Estimate is Rs Million with fixed investment of Rs Million and working capital Rs Million. Given the cost assumptions, IRR and payback are 46% and 3.10 years respectively SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 3

5 The most critical considerations or factors for success of the project are 1. Selection of Quality Sheep 2. Farm Management Livestock in Balochistan holds great potential towards contributing to increased incomes of the farmers. Growth in output has varied over the years, but in general has barely kept pace with population growth. 6. BRIEF DESCRIPTION OF PROJECT & PRODUCT Following key parameters pertaining to subject pre-feasibility study are elaborated to briefly describe the project. Location: The farm is to be established in sheep rearing areas of country where range grazing is available. In Balochistan Southern, Northern & Central are suitable areas to establish sheep farm. Major production areas in Balochistan include Kalat, Khuzdar, Kharan, Mastung, Noshki Mashkel, Sibi, Naseerabad, Jaffarabad, Kohlo, Dera Bugti, Killa Saifullah, Ziarat, Loralai, Zhob, Barkhan and Lasbela Districts Product (Breed): The most suitable breeds for fattening include Balochi, Harnai and Bibrik sheep. The farmer not only has to select the better breed which can bring results for fattening but also have to select most suitable animals from the selected breed. Through better management, the weight gain of these selected breeds would be higher. Target Market: In addition to local markets in Karachi, Lahore and Islamabad there is an enormous export potential in Middle Eastern countries. Employment Generation: The proposed project will provide direct employment to 4 people. Financial analysis shows that the farm shall be profitable from the very first year of operation 7. CRITICAL FACTORS Swift increase in consumption/demand of live stock products. Increasing demand of by-products such as blood, skin, etc. Technological improvement in livestock production and processing. 8. INSTALLED & OPERATIONAL CAPACITIES The farm will start production with 315 sheep (70% of total capacity). The farm will achieve maximum capacity of 405 sheep (90% of total capacity) in its 7th year. The limit SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 4

6 of 450 sheeps has been imposed on the farm because a very large flock would be difficult to manage. The farm would focus on rearing of young stock for fattening and marketing. Lambs from six to eight months of age will be purchased and resold in the market after a fattening period of 120 days. 9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT In Balochistan, contribution of livestock is estimated to be 40% towards agriculture. Livestock is the main source of income of more than 75% of the people inhabiting the countryside of Balochistan. The potential areas for investment to establish proposed project are in sheep rearing areas of country where grazing is available. Southern, Central and some Northern parts of Balochistan are suitable areas to establish sheep farms. Major breeding areas in Balochistan include Kalat, Khuzdar, Kharan, Mastung, Noshki Mashkel, Sibi, Naseerabad, Jaffarabad, Kohlo, Dera Bugti, Killa Saifullah, Ziarat, Loralai, Zhob, Barkhan and Lasbela Districts. 10. POTENTIAL TARGET MARKETS / CITIES Target market would be the areas where breeding is being undertaken as well as major cities like Karachi, Lahore, Rawalpindi, Islamabad, Peshawar etc. In addition to local markets there is an enormous export potential to Middle Eastern countries. 11. PRODUCTION PROCESS FLOW Animals selected for fattening should be from six to eight months of age. At this age the animal is weaned and starts eating green fodder and grass. As compared to grown up sheep the daily weight-gain capacity is also better at this age. Weight and age of all the selected animals should also be similar otherwise the larger and older animals would not let the smaller animals to eat feed according to their requirement. Selected animals should not be sick, weak or with physical disabilities Breed Selection The farmers should not only select good quality breed which can bring better results for fattening but also select most suitable animals from the selected breed. Through better management, the weight gain of these selected breeds would be higher. The most suitable breeds for fattening include Balochi, Harnai and Bibrik sheep. The animals should be tagged on arrival to the farm. The information to be recorded includes breed, live weight, age and date of purchase etc Characteristics of Breeds Recommended for Sheep Fattening: Balochi Sheep Balochi sheep is a large sized fat tailed breed, found in Central, Southern and some South-western parts of the Balochistan. It is used for meat and milk. Coarse wool is also SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 5

7 collected from it. Its fleece is white with pigmented head and legs. Body weight of adult varies between 35 and 40 Kg, milk yield is between kg in a period of about 125 days. The average fleece production is kg Bibrik It is a fat and short tailed, mutton type sheep that is found in parts of Loralai Kohlu, Bugti, Barkhan, Musakhel and Sibi districts in Balochistan province. It is a medium size breed. Body colour is white with black or brown head. The wool yield is about 1.7 kg. Average adult live-weight is 27 kg Harnai Harnai is a fat tail, mutton / wool type breed. It is found in parts of Loralai, Quetta, Sibi and Zhob districts in Balochistan. It is medium sized with a white body coat and a black or tan spotted head and ears. The wool yield is 2.6 kg with medium fiber diameter. Its wool is dense and heavy. Average adult body weight is around kg. The breed also produces excellent quality mutton. 12. PROJECT COST SUMMARY A detailed financial model has been developed to analyze the commercial viability of Sheep Fattening Farm. Various cost and revenue related assumptions along with results of the analysis are outlined in this section. The projected Income Statement, Cash Flow Statement and Balance Sheet are attached as appendix 12.1 Project Economics All the figures in this financial model have been calculated for 315 sheep for total area of around 9,400 sq.ft, that would be used for different functions of the farm. The following table shows internal rates of return and payback period. Table 1 - Project Economics Description Details Internal Rate of Return (IRR) 46% Payback Period (yrs) 3.10 Net Present Value (NPV) 6,873,512 SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 6

8 12.2 Project Financing Following table provides details of the equity required and variables related to bank loan; Description Details Total Equity 10%) Rs. 218,884 Bank Loan 90%) Rs. 1,969,955 Markup to the Borrower (%age/annum) 8% Tenure of the Loan (Years) 8 Grace Period (Year) Project Cost Following requirements have been identified for operations of the proposed business. Table 1: Project Investment for the Project Project Investment Amount (Rs.) Land 91,233 Building 664,800 Machinery & Equipment 367,500 Furniture & Fixture 10,000 Pre-operating Cost 158,839 Total Capital Cost 1,292,372 Initial Working Capital 896,466 Total Project Cost 2,188, Space Requirement Details of the area required are given below: Table 2: Space Requirement Item Space / Animal Sq.ft. Total Area Sq.ft. Cost / Sq.ft. (Rs.) Total cost. Rs. Owners Room ,000 Shed Space 20 3, ,000 Stores for Raw Material ,000 Attendants Room ,800 Open Paddock 40 6, ,000 Total Cost 664,800 SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 7

9 Total investment in building and infrastructure is calculated to be approximately Rs million Machinery and Equipment Following table provides list of machinery and equipment required for Sheep Fattening Farm working for Livestock sector. Table 3: List of Machinery and Equipment Description Unit Unit Price (Rs.) Total Cost. (Rs.) Chopper 1 15,000 15,000 Water Pump with boring 1 250, ,000 Mangers 10. 2,500 25,000 Tubs 5 1,500 7,500 Hand Cart 1 5,000 5,000 Weigh Scale 1 50,000 50,000 Misc 1 15,000 15,000 Total 367, Human Resource Requirement Table 4: Human Resource Requirement Description No. of Employees Salary per month Owner / Manager 1 25,000 Farm Attendants 3 30,000 Total Staff 4 55,000 The table above provides details of human resource required for sheep fattening farm Revenue Generation First Year Sales First Year Sales Product Price Production Revenue (Rs./Unit) (Sheep) (Rs) Sale of Live Sheep 12, ,898,125 Total Sales Revenue 3,898,125 SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 8

10 13. CRITICAL FACTOR Establishment of the farm in areas where cheap land is available, but still not very far from the animal markets. The farming should be done on scientific grounds taking care of Vaccination, Medicine etc. Healthy and attractive local female without horn should be selected, as it has better characteristics compatible with the local environment. Healthy and quality male stock should be selected for breeding. New feeding techniques including concentrate feeding and preparation of urea molasses blocks, wheat straw treatment should be used for better results. Well-trained / experienced staff adding to the efficiency of the farm. SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 9

11 14. ANNEXURE 14.1 Income Statement Statement Summaries Income Statement SMEDA Rs. in actuals Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Revenue 3,898,125 4,594,219 5,390,550 6,300,205 7,337,886 8,071,675 8,878,842 9,766,727 10,743,399 11,817,739 Cost of Goods Sold Feed & Vaccination Cost 709, , , ,709 1,039,180 1,143,098 1,257,407 1,383,148 1,521,463 1,673,609 Cost of Sheeps 1,724,625 1,897,088 2,086,796 2,295,476 2,525,023 2,777,526 3,055,278 3,360,806 3,696,887 4,066,576 Direct Labor 360, , , , , , , , , ,861 Repair & Maintenance 15,000 16,875 18,900 21,085 23,442 24,614 25,845 27,137 28,494 29,918 Utilities 60,000 70,714 82,971 96, , , , , , ,899 Total Cost of Sales 2,869,399 3,161,428 3,483,094 3,837,403 4,227,666 4,649,260 5,112,956 5,622,959 6,183,898 6,800,863 Gross Profit 1,028,726 1,432,791 1,907,456 2,462,802 3,110,220 3,422,414 3,765,886 4,143,767 4,559,501 5,016,876 General administration & selling expenses Administration expense 309, , , , , , , , , ,606 Travelling & Comm. expense (phone, fax, etc.) 60,000 66,000 72,600 79,860 87,846 96, , , , ,477 Office vehicles running expense Office expenses (stationary, etc.) 7,500 8,250 9,075 9,983 10,981 12,079 13,287 14,615 16,077 17,685 Depreciation expense 104, , , , , , , , , ,230 Amortization expense 31,768 31,768 31,768 31,768 31, Property tax expense Miscellaneous expense 19,491 22,971 26,953 31,501 36,689 40,358 44,394 48,834 53,717 59,089 Subtotal 531, , , , , , , , ,008 1,051,086 Operating Income 496, ,672 1,288,940 1,794,182 2,386,299 2,671,469 2,950,270 3,257,012 3,594,493 3,965,790 Other income Gain / (loss) on sale of assets Earnings Before Interest & Taxes 496, ,672 1,288,940 1,794,182 2,386,299 2,671,469 2,950,270 3,257,012 3,594,493 3,965,790 Interest expense 163, , , ,870 90,574 67,510 42,533 15, Earnings Before Tax 333, ,981 1,157,407 1,682,312 2,295,725 2,603,959 2,907,737 3,241,530 3,594,493 3,965,790 Tax 66, , , , , , , , , ,158 NET PROFIT/(LOSS) AFTER TAX 266, , ,925 1,345,850 1,836,580 2,083,167 2,326,190 2,593,224 2,875,594 3,172,632 Balance brought forward 266, ,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821,101 Total profit available for appropriation 266, ,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821,101 17,993,733 Dividend Balance carried forward 266, ,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821,101 17,993,733 SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 10

12 14.2 Project Balance Sheet Statement Summaries Balance Sheet SMEDA Rs. in actuals Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Assets Current assets Cash & Bank 80, , ,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436 17,751,960 Accounts receivable - 213, , , , , , , , , ,113 Finished goods inventory Equipment spare part inventory 5,000 5,906 6,946 8,136 9,498 10,471 11,545 12,728 14,033 15,471 - Raw material inventory 811, ,244 1,082,516 1,250,306 1,444,104 1,667,940 1,926,471 2,225,073 2,569,960 2,968,304 - Total Current Assets 896,466 1,514,945 2,014,880 2,857,183 4,102,656 5,820,812 7,726,991 9,855,372 12,228,432 15,242,132 18,370,073 Fixed assets Land 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91,233 Building/Infrastructure 664, , , , , , , , ,960 66,480 - Machinery & equipment 367, , , , , , , ,250 73,500 36,750 - Furniture & fixtures 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Office vehicles Office equipment Total Fixed Assets 1,133,533 1,029, , , , , , , , ,463 91,233 Intangible assets Pre-operation costs 158, ,071 95,304 63,536 31, Legal, licensing, & training costs Total Intangible Assets 158, ,071 95,304 63,536 31, TOTAL ASSETS 2,188,839 2,671,320 3,035,257 3,741,562 4,851,037 6,433,196 8,235,144 10,259,296 12,528,125 15,437,596 18,461,307 Liabilities & Shareholders' Equity Current liabilities Accounts payable - 185, , , , , , , , , ,170 Total Current Liabilities - 185, , , , , , , , , ,170 Other liabilities Long term debt 1,969,955 1,969,955 1,751,196 1,514,280 1,257, , , , Total Long Term Liabilities 1,969,955 1,999,957 1,774,450 1,530,786 1,267, , , ,782 (39,284) (53,382) (67,480) Shareholders' equity Paid-up capital 218, , , , , , , , , , ,884 Retained earnings - 266, ,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821,101 17,993,733 Total Equity 218, ,470 1,053,455 1,979,380 3,325,230 5,161,810 7,244,977 9,571,167 12,164,391 15,039,985 18,212,617 TOTAL CAPITAL AND LIABILITI 2,188,839 2,671,320 3,035,257 3,741,562 4,851,037 6,433,196 8,235,144 10,259,296 12,528,125 15,437,596 18,461,307 Note: Total assets value will differ from project cost due to first installment of leases paid at the start of year SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 11

13 14.3 Project Cash Flow Statement Statement Summaries Cash Flow Statement SMEDA Rs. in actuals Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Operating activities Net profit - 266, , ,925 1,345,850 1,836,580 2,083,167 2,326,190 2,593,224 2,875,594 3,172,632 Add: depreciation expense - 104, , , , , , , , , ,230 amortization expense - 31,768 31,768 31,768 31,768 31, Deferred income tax - 30,002 (6,748) (6,748) (6,748) (6,748) (14,098) (14,098) (14,098) (14,098) (14,098) Accounts receivable - (213,596) (19,071) (40,888) (46,739) (53,352) (48,533) (42,218) (46,440) (51,084) (56,192) Finished good inventory Equipment inventory (5,000) (906) (1,040) (1,191) (1,362) (974) (1,073) (1,183) (1,305) (1,438) 15,471 Raw material inventory (811,466) (125,777) (145,273) (167,790) (193,797) (223,836) (258,531) (298,603) (344,886) (398,344) 2,968,304 Accounts payable - 185,893 21,459 24,043 26,954 30,202 33,819 37,977 42,671 47,974 (134,823) Other liabilities Cash provided by operations (816,466) 278, , ,350 1,260,155 1,717,871 1,898,980 2,112,294 2,333,397 2,562,835 6,055,524 Financing activities Change in long term debt 1,969,955 - (218,759) (236,916) (256,580) (277,876) (300,939) (325,917) (352,968) - - Issuance of shares 218, Purchase of (treasury) shares Cash provided by / (used for) financ 2,188,839 - (218,759) (236,916) (256,580) (277,876) (300,939) (325,917) (352,968) - - Investing activities Capital expenditure (1,292,373) Acquisitions Cash (used for) / provided by invest (1,292,373) NET CASH 80, , , ,434 1,003,575 1,439,995 1,598,041 1,786,377 1,980,429 2,562,835 6,055,524 Cash balance brought forward 80, , ,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436 Cash available for appropriation 80, , ,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436 17,751,960 Dividend Cash carried forward 80, , ,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436 17,751,960 SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 12

14 Pre-Feasibility Study Sheep Fattening Farm 14.4 USEFUL PROJECT MANAGEMENT TIPS Technology List of Machinery & Equipment (As per Section 12.5) Energy Requirement: Should not be overlooked. Alternate source of energy for critical operations be arranged in advance. Marketing Product Development & Packaging: Expert's help may be engaged for product / service and packaging design & development. Ads & Point of Sale Promotion: Business promotion and dissemination through banners is highly recommended. Sales & Distribution Network: Expert's advise and strong networking with livestock exporters and Atrhis of larger cities e.g. Karachi, Lahore, Rawalpindi etc. Price - Bulk Discounts, Cost plus Introductory Discounts: Price should never be allowed to compromise quality. Price during introductory phase may be lower and used as promotional tool. Product cost estimates should be carefully documented before price setting. Government / Market Committee controlled prices should be displayed, where applicable. Human Resources List of Human Resource (As per Section 12.6) Adequacy & Competencies: Recruitment of Skilled and experienced staff. Performance Based Remuneration: Attempt to manage human resource cost should be focused through performance measurement and performance based compensation. Training & Skill Development: Encouraging training and skill of self & employees through experts and exposure to best practices is a route to success. Least cost options for Training and Skill Development (T&SD) may be linked with compensation benefits and awards. SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 13

15 Pre-Feasibility Study Sheep Fattening Farm 14.5 USEFUL LINKS Prime Minister s Office, Government of Pakistan, Ministry of Industries & Production, Small & Medium Enterprises Development Authority (SMEDA), Ministry of Education, Training & Standards in Higher Education Government of Punjab, Government of Sindh, Government of Khyber Pakhtunkhwa, Government of Balochistan, Government of Gilgit Baltistan, Government of Azad Jammu & Kashmir, Trade Development Authority of Pakistan (TDAP), Federation of Pakistan Chambers of Commerce and Industry (FPCCI) State Bank of Pakistan (SBP), National Bank of Pakistan (SBP), First Women Bank Limited (FWBL), Ministry of National Food Security & Research, Ministry of Education, Training & Standards in Higher Education, Securities & Exchange Commission of Pakistan (SECP), Punjab Board of Investment & Trade (PBIT), 23-Aikman Road, GOR-I, Lahore Tel , Sindh Board of Investment (SBI), 1st Floor, Tower B, Finance & Trade Center, Shahra-e-Faisal, Karachi, Tel , All Pakistan Meat Exporters and Processors Association, Lahore, Punjab Agriculture and Meat Company (PAMCO), Lahore, SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 14

16 Pre-Feasibility Study Sheep Fattening Farm Pakistan Agricultural Research Council (PARC), Islamabad, Tel National Agricultural Research Centre (NARC), Islamabad, Tel , National Veterinary Laboratory, NARC, Islamabad, Tel Balochistan Agricultural Research Centre (BARC), Quetta, Tel: , Southern-zone Agricultural Research Centre (SARC), Karachi, Tel: , , Arid Zone Research Institute (AZRI), Bahawalpur, Tel: , Punjab Livestock & Dairy Development Board (PLDDB), 11- Shami Road, Lahore Cantt. Tel , Faculty of Animal Husbandry, University of Agriculture, Faisalabad, Faculty of Veterinary Sciences, University of Agriculture, Faisalabad, Faculty of Veterinary and Animal Sciences, Lasbela University of Agriculture, Water & Marine Sciences, Lasbela, Faculty of Veterinary Sciences and Animal Husbandry, Sindh Agriculture University, Tondojam, Gomal College of Veterinary Sciences, Dera Ismail Khan, KPK Agricultural University, Peshawar, Pir Mehr Ali Shah Arid Agricultural University, Rawalpindi, University College of Veterinary & Animal Sciences, Islamia University Bahawalpur (IUB), University of Veterinary & Animal Sciences (UVAS), Out Fall Road, Lahore, College of Veterinary & Animal Sciences, Jhang, Bahauddin Zakariya University (BZU), Multan, Animal Husbandry In-Service Training Institute (AHITI), Peshawar, Tel , Veterinary Research Institute (VRI), Ghazi Road, Lahore Cantt., Tel Agribusiness Support Fund (ASF), Lahore, Directorate of Livestock Farms, L&DD, Lahore, Tel: Govt. Livestock Farm (GLF) Kallurkot District Bhakkar, Tel: SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 15

17 Pre-Feasibility Study Sheep Fattening Farm Livestock Experiment Station (LES), Rakh Ghulaman, District Bhakkar, Tel: Livestock Experiment Station (LES), Khizarabad, District Sargodha, Tel: Research & Development Centre, Rakh Khairewala, District Layyah Livestock Experiment Station (LES), Khushab, Tel: Livestock Experiment Station (LES), Chak Katora, District Bahawalpur, Tel: Livestock Experiment Station (LES), Haroonabad, District Bahawalnagar, Tel: Directorate of BLPRI, Kherimurat (Attock), L&DD, Punjab, Tel: , , Directorate of Small Ruminants, Multan, L&DD, Punjab, Tel: Directorate of Livestock Training Centre (LSTC), Bahadurnagar, Okara, Tel: Livestock Training Centre (LSTC), Sheikhupura, Tel: Livestock & Fisheries Department, Government of Sindh, Agriculture & Livestock Department, Government of KPK, Livestock Research Station, Jaba, Mansehra, (Jaba Sheep and Goat Farm), Tel: Livestock & Dairy Development, Government of Balochistan, Bhagnari Cattle Cum Balochi Sheep Farm Usta Muhammad, Dera Allah Yar c/o L&DD Quetta, Tel: SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 16

18 Pre-Feasibility Study Sheep Fattening Farm 15.. KEY ASSUMPTION Particulars Assumption Sales Price Growth Rate 5 % per year Capacity Utilization Growth Rate 5 % per year Increase in Cost of Raw Materials 10 % per year Increase in Staff Salaries 10 % per year Increase in Utilities (Electricity / Water / Gas) 10 % per year Debt / Equity Ratio 90 : 10 Depreciation Plant Building 10 % per annum Machinery 10 % per annum Office Furniture & Equipment 10 % per annum Loan Period 8 Years (inclusive of 1 year grace period) Loan Installments Quarterly Financial Charges (Loan Rate) 08 % per annum SMEDA Services / Information related to PM s Youth Business Loan are FREE OF COST - 17