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Project Fisibility Study Essay

1725 words - 7 pages



The company has existing Woven & Knit Garments, Knitting-Knit Dyeing & Other related Industries and exporting Garments for last 10 years to Europe, USA & Canada successfully.
School Dress is one of the major exporting items which requires T.C. 65/35 dyed fabric and depends on imported Dyed/Finished fabrics. It requires about 40000 yds. every day.

The management feels to set-up own production units considering the following :
(a)     Export to Europe can attract GSP benefit up to 12% on FOB value of the Garments if the garments are produced from locally produced fabric.
(b)     Buyer’s productivity – currently lead time for obtaining imported fabrics at lest 70 days in each production cycle, local fabric can reduce this lead time to 30 days , thereby enhance the makers ability to complete double production cycle in a year. This reduces the makers overhead and makes him more competitive.
(c)      If any problem arises in the fabric, that can be get replaced the same in a very short time and in case of imported fabrics, it is almost impossible to get replacement, causing short shipment or non shipment in schedule time.


Product mix and Capacity :
The annual production capacity is designed on the basis of 300 days a year on 3 shift of 8 hours duration each day ad the product mix and capacity will be as under:
(a) Product          : 65/35 T.C. Dyed Fabric,
(b) Construction     : 110X76 / 45X45 / 58”
(c) Colour          : White – 85%, Colour – 15%,
(d) Capacity           : 40,000 yds./day

Sourcing          : *Yarn – Imported
                * Weaving – Local Sub-contract/In-house ( separate project)
                * Dyeing-Finishing – In-house

Weaving     : The project needs to weave the fabric from imported yarn through local modern shuttle less looms. Have already done a thorough market survey and estimated that Weaving charge will be Tk. 8.00 per yd.

Consumption          : Predominantly In-house

Manufacturing Process

Grey Fabric Inspection→ Gas Singeing & Desizing→ Scouring & Bleaching→ Drying Mercerizing→ Drying→ Dyeing→ Washing & Drying→ Finishing→ Sunforizing →Inspection & Rolling→ Delivery

Land and Location:

The project has been proposed to be locatednorthern area of Dhaka. Total area of land to be required 2.5 acrs. For land development on an average Tk.60 lacs per acre estimated. Assume that for Gas connection 4” dia gas line is to be drawn from main line and for this purpose L.S. Tk.20 lac has been estimated. Total cost of land including development cost stands at Tk. 170 lac. Detailed particulars of land are in Annexure ….

Building and Civil works :

The building and civil works of the project will include main factory building, maintenance room, laboratory, Office room, raw materials & finished goods...

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