This pre-feasibility study is for setting up a Melamine tableware manufacturing facility exclusively for the dinner set. The tableware made from melamine chemical coumpound gives traditional ceramic tableware appearance and is more durable than standard plastic. The prime focus of the proposed business venture would be to manufacture 80-piece melamine dinner sets, including bowl, plates, spoons, dishes etc., at affordable prices and to be sold to the wholesalers or retail outlets.
The proposed Melamine Tableware Manufacturing Unit should preferably be located at Gujranwala, Lahore, Karachi, Rawalpindi and Lalamusa as required raw material and labour is easily accessible in these cities.
The proposed unit can produce 80 melamine tableware sets per day and 24,000 sets per year based on 300 working days with 8 hours single shift. However, starting operational capacity is assumed at 60% (i.e. 14,400 sets) with an annual increase of 5%, it will attain a maximum capacity of 95% in 8th year. This production capacity is estimated to be economically viable and justifies the capital as well as operational cost of the project. However, entrepreneur’s knowledge of industry, competitive pricing and strong linkage with suppliers and wholesalers network are key factors for the success of this business.
Total project cost is estimated as Rs. 16.47 million out of which Rs.13.26 million is the capital cost and Rs. 3.21 million is for working capital. The project is to be financed through 100% equity. The project NPV is around Rs.18.10 million, with an IRR of 35% and a Payback Period of 3.48 years. The project will provide employment opportunities to 24 individuals, including the owner. The legal business status of this project is proposed as ‘Sole Proprietorship’.