Service Station [Rs. 5.37 million, Dec-2021]

Service Station [Rs. 5.37 million, Dec-2021]
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27 December 2021
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This particular pre-feasibility study is for setting up a service station for auto vehicles in any major city of Pakistan. The service station is assumed to cater washing & servicing requirements of all income groups at affordable prices. The major focus of the station would be to provide high quality washing and cleaning services to different types of auto vehicles, including cars, jeeps, motor bikes, three wheelers, etc. Besides that, washing and cleaning services for carpets will also be provided.

The station will have an installed capacity of servicing 202 vehicles, carpets, etc. per day on single shift of 8 hours basis. Initial operational capacity is assumed at 50% whereas maximum operational capacity utilization is considered as 90% per day. This servicing capacity is estimated to be economically viable and justifies the capital as well as operational costs of the project. However, entrepreneur’s knowledge of industry, quality services, competitive pricing and customer satisfaction are important factors for the success of this project.

The estimated total cost of the proposed service station is Rs. 5.37 million out of which Rs. 4.04 million is the capital cost and Rs. 1.33 million is for working capital. Based on 100% equity model, the project NPV is around Rs. 4.18 million, with an IRR of 38% and Payback Period of 3.74 years.

The project will provide employment opportunities to 8 people including Owner / Manager. The legal business status of this project is proposed as ‘Sole Proprietorship.

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