Fiberglass Boat Manufacturing Unit [Rs. 55.77 million, May-2021]

Fiberglass Boat Manufacturing Unit [Rs. 55.77 million, May-2021]
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16 June 2021
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Fiberglass is very lightweight, solid and durable material, which can be fabricated into different type of products and shapes. Fiberglass boat manufacturing became popular in the 1960s and is perhaps the most common way boats are built today. Fiberglass boats are mainly used for fishing, tourism, transportation and water sports etc.

This particular pre-feasibility study provides basic information for setting up a 'Fiberglass Boat Manufacturing Unit'. The proposed unit can manufacture 188 Fiberglass Boats of 3 different sizes (i.e. 8 feet, 24 feet and 48 feet) per year based on 300 working days with 12 hours shift per day. However, starting operational capacity is assumed at 65% (i.e. 123 Boats) with an annual increase of 5% up to maximum capacity of 95% (i.e. 179 Boats) in year 7 (i.e. 179 boats). This production capacity is estimated to be economically viable and justifies the capital and operational cost of the project.

Entrepreneur's knowledge of the fiberglass manufacturing, availability of skilled worker and product quality are critical factors for the success of this business. Some of the recommended locations are Karachi, Ormara, Pasni and Gwadar for establishing the proposed business. The unit will operate on order manufacturing basis, especially targeting fishermans, beach resort owners, water spports organizers and administartors of water based recreational and tourist places.

The project cost is estimated as Rs. 55.77 million with a capital investment of Rs. 53.49 million and working capital of Rs. 2.27 million. Based on an equity finance model, the project NPV is around Rs. 47.28 million, with an IRR of 33% and a Payback Period of 3.70 years. The project will provide employment opportunities to 22 individuals, including the owner. The legal business status of this project is proposed as 'Sole Proprietorship'.

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