PVC Membrane for Water Proofing Manufacturing Plant [Rs. 80.55 million, Jan-2021]

PVC Membrane for Water Proofing Manufacturing Plant [Rs. 80.55 million, Jan-2021]
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21 June 2021
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PVC water proofing membrane is a modern roofing material, which is made of high quality flexible (plasticized) Polyvinyl Chloride (PVC). These membranes are more flexible, have high tear resistance and are used for waterproofing of roofs, foundations, underground structures, tunnels and swimming pools etc. The demand of PVC membrane is steadily increasing due to growth in construction industry as well as increased urbanization and industrialization in recent times.

This particular pre-feasibility study is for setting up a ‘PVC Membrane For Water Proofing Manufacturing Plant’ in any major industrial city in Pakistan. The proposed unit will be equipped with latest extrusion and molding machines to produce the high quality PVC membrane that will be sold to construction material wholesalers and retailers. Target end-users will be builders, construction companies and household consumers.

The proposed unit will have an installed capacity to produce 18.591 million square feet of PVC membrane, based on a single shift of 8 hours and 300 operational days. However, starting operational capacity is assumed at 60% with an annual increase of 5%, it will attain a maximum capacity utilization of 95% in 8th year of operation. This production capacity is estimated to be economically viable and justifies the capital as well as operational cost of the project. Entrepreneur’s knowledge of the chemicals and plastic industry, competitive pricing, and strong linkage with wholesalers and retailers of hardware and building material suppliers are key factors for the success of this business.

Total project cost is estimated as Rs. 80.555 million with capital investment of Rs. 76.588 million and working capital of Rs. 3.967 million. Based on an equity finance model, the project NPV is around Rs. 28.759 million, with an IRR of 25% and Payback Period of 4.25 years. The project will provide employment opportunities to 14 people including the Owner. The legal business status of this project is assumed to be ‘Sole Proprietorship’.

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