Executive Summary

This study attempts to evaluate Feasibility study of a project. It focuses on the relative importance of component factors and its impacts on the overall feasibility study in an organization. Since I objective and mission is to create and innovate new product and this product will create feasible to I domestic market. In order to attain the objective of I study, all necessary information are prepared by collecting both primary and secondary sources of data. I have collected primary data by preparing a questionnaire and analyzed the market condition and also meet with some agro based products suppliers. And I have collected I main concept of starting business through internet. Every kind of relevant data I have collected through internet by observing various factories web site outside of I country. After having all data and information I tried to match I analysis in hypothetical ways in the context of Bangladesh. I analyzed I project in different appraisals. These appraisals are related with financial analysis, marketing analysis, technological analysis, economical analysis and social cost benefit analysis. Since my new business project is to introduce egg powder and this concept is new for whole Bangladeshi people and Bangladeshi market. So I have needed to evaluate I all appraisals. Finally I tried to make ensure that I project is.

1. Introduction:

Millennium Agro Food Ltd. is a new company. It is a manufacturing company, which is going to produce and sale a new product that is Egg Powder. Egg powder will offer the same taste, same product diversity, same nutritious value as the original egg does. But the unique thing of the product is its production.

Companys Profile:

Millennium Agro Food Ltd. provides excellent egg powder plant as part of its various machines for food processing industry. Egg powder plant is used to produce egg powder from fresh eggs. 22-25% solids can be gained from every egg. Egg powder finds application in making omelet, baking various other value-added products. This plant is capable of processing 10,000 eggs per day and thus produces 120 ton egg powder per annum. This plant acquires 800 sq. meters spaces for installation. This plant is very economical and provides years of dependable service.

1. Project Background & History:The industry has been undergoing structural change since production and marketing was deregulated, commencing in the 1980s. This saw a reduction in production, lower margins in the early supply chain and a greater share of returns in the retail sector. Of egg production output, 6570 per cent is consumed in the household sector which is showing no growth. Other sectors of consumption food service and industrial and commercial uses are showing slow growth. The domestic egg market has suffered as the egg has lowered its profile as a major source of protein and other sources have gained important ground. The fresh egg category is also under pressure from the increasing demand for health and convenience foods, which the egg sector has not been able to successfully overcome.

Eggs are full of nutrients and minerals and are consumed in different forms since centuries. There was misconception that they are from non-vegetarian food category but now people at large have accepted them as a vegetarian item and their consumption is increasing year after year. Transportation of eggs is difficult as chances of breakage during transportation are higher and it is costly also. Egg powder is comparatively easier to transport and there is no question of any breakage during the transit.

Egg is one kind of hi-protein food item. I get egg from various birds like (Hen, Duck etc.). Generally it is found/ sold in natural format. But natural format bears some problems. These are:

(i) Egg is a perishable goods;(ii) It is not easily portable;(iii) Sometimes egg is affected by germs;(iv) Sometimes few businessman try to sell the artificial egg which is very much harmful for human health;(v) Egg is a quickly expired item.

To avoid these problems I am producing egg powder which is 100% halal and newly innovative product in Bangladesh. It is easily (risk free) portable and good for human health. My experts team purchase egg from different poultry firms. Then these eggs are properly cleaned and purified. I used new modern technology to produce the final product. The product is totally germ free because I use scientific manufacturing and purification system. I use TQM for maintaining the high quality of the product.

2. Market & Plant Capacity:i. Demand & Market Study: Demand and SupplyEggs are full of nutrients and minerals and are consumed in different forms since centuries. There was misconception that they are from non-vegetarian food category but now people at large have accepted them as a vegetarian item and their consumption is increasing year after year. Transportation of eggs is difficult as chances of breakage during transportation are86higher and it is costly also. Egg powder is comparatively easier to transport and there is no question of any breakage during the transit.

Marketing StrategyThe major market is defense establishments, various government and non-government nutritional programs, bakeries and all such areas like hills or forests where transportation is difficult. Before venturing into this project, a proper market assessment and some firm tie up is advisable.

ii. Sales & Marketing: Sales Volume: I business is running for the first time in Bangladesh. I want to capture the whole Bangladeshi market. So I production will be more and I sales volume will be huge amount. As a result, the production cost will be minimized and profit will be maximized.

Pricing: I charge I product as competitive price. Getting the price right is critical for maximizing revenue. In general higher price creates brand image but it is not affordable for all. Since I make a branding product and that is new in Bangladesh, so I set the price carefully. By analyzing cost benefits and market facilities at the begging I set per Kg egg powder is Tk.220 excluding Vat. So I pricing is also lucrative rather than normal egg.

Market Communication: I always believe I success is mostly depended on the customer. So I try to make good relationship with customer. I use both electric and media for advertisement of I product. I use Television, radio, newspaper, magazine, billboard; reflect etc. as advertisement of I product. I try to reach I product to all people in Bangladesh, so I try to create a positive aspect of I product through various media. I perform different promotional activities around the year. These include Eid offers, discount, cash rebates, coupon, raffle draw etc.

Market Share: Initially I market share is very poor. But I believe I market share will be increased day by day. First of all I run I business through urban area specially Dhaka, Chittagong, Rajshahi, Khulna, Barishal then I will go to the rural area for placing the business.

Brand Awareness: At present, egg is a non branding product. But I create a special brand image in the market through providing quality egg powder with loIr price. From the marketing analysis I find that, people really like any branding product. So I always try to fulfill the peoples demand by providing quality product.

Distribution: At present I business mission is to capture the local market demand. I want to cover the local market properly then I go forward to capture the worldwide market. At the beginning stage, I distribute I product only urban area, then I start I business locally and then I go to worldwide.

Target Market: I target customers are the urban people specially who are health conscious. I target also the industrial sector as raw material of various products.

Positioning: At present I have no competitor in I local market. Thats why I are in very good position in I local market. If I make good awareness of I local market through I product easily I will get available I egg powder in all area of Bangladesh. And I can make a strong position.

Distribution Channel: I have used the traditional distribution channel. I main mission is to satisfy the customer by providing product. So follow the formal distribution channel. The channel is as follows:

ProducerWholesalerWholesalerWholesalerRetailerRetailerRetailerRetailerRetailerConsumerIndustrial Market

Pricing: I charge I product as competitive price. Getting the price right is critical for maximizing revenue. In general higher price creates brand image but it is not affordable for all. Since I make a branding product and that is new in Bangladesh, so I set the price carefully. By analyzing cost benefits and market facilities at the begging I set per Kg egg powder is Tk.220 excluding Vat. So I pricing is also lucrative rather than normal egg.

iii. Production Program:# Product Management: I follow TQM for making the high quality product. I technical team work for making the product hygienic ways. I set I products expired date up to 12 month from packing time. I have quality control team and they always busy to control the product quality.

iv. Plant Capacity:

It is proposed to install dry egg powder making unit with capacity of 120 tons per annum with 8 hours of working per day for 300 working days.The plant and machinery required for the above production capacity may cost about Tk.6, 500,000.

Particulars Quantity/ No.

Price

Egg Breaker42,00,000

Centrifuge26,00,000

Filter22,00,000

Storage Tank43,00,000

Feed Pump 26,00,000

Tubular Heater18,00,000

Balance Tank43,00,000

Feed Pump27,00,000

High Pressure Pump28,00,000

High Pressure Spray Dryer17,50,000

Cyclone with exhaust and fan13,50,000

Packing Unit15,00,000

Electrification and Installation4,00,000

Total65,00,000

3. Materials Input:i. Material & Input: Utilities:The total power required shall be 75 HP whereas per day water requirement would be 2500 liters.

Raw and Packing MaterialsThe major raw material required is fresh eggs and the daily requirement is 20,000. Prior confirmed arrangements for this quantity are necessary. Packing material like poly-lined paper bags, corrugated boxes, labels etc. shall be needed.

The daily requirement raw material is 10,000 eggs per day. So, annual requirement is 3,000,000 eggs. The annual requirement is given below:

ProductQuantityRateValue

Fresh Eggs3,000,000515,000,000

Cost of packing Materials @3000 per ton3,60,000

Total15,360,000

ii. Supply Program: A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product. Egg would seem like such a simple product that there really couldnt be that much to the supply chain given that the chicken lays the eggs, the farmers puts them in cartons and a truck delivers them to the store. Eggs dont go through processing like most other food products but still there can be a lot to them depending on what type of eggs you buy and where from.

I collected eggs from different sources that are the easy to get for us. I select some special suppliers who provide us fresh eggs every day at lower prices. I try to get fresh eggs from the supplier and try to meet up final products very smoothly.

4. Location & Site:i. Location:A plot of around 800 sq. meters will be sufficient as the built-up area requirement is not more than 500 sq. meters. The built-up area would have main production unit in around 300 sq. meters and balance area will be utilized for storage and packing. Cost of land and building is expected to Tk. 4,000,000. I select Gazipur area .For establish and manufactured processing and also factory office at Gazipur. I select this area because the cost of land is less than other area and also this area provide us raw materials facilities. As I earliest mentioned that I product is egg based so the I need huge amount of fresh eggs. As I know in Gazipur area there many poultry firm.ii. Plant Site & Local ConditionsI project is to manufacture egg powder. For this project I need not to acquire more space. Thats why I acquire 800 sq. miters at Gazipur. I selected Gazipur to established I plant for some reasons Availability of raw materials Communication facilities are so easy Low labor cost Utilities services are available Local condition is very much positive for such business The area is very much dry and hotI plant site is at Shalna in Gazipur. But I head office is in Mirpur. The local condition where I started I projects is very much attractive in the sense of my new project plant. I get I needed every resources from that. I segmented I markets into three major categories. These are:-1. Geographic Segmentation: Dividing a market in to different geographical units such as nations, states, regions, cities and neighbor hoods. I segment I market at the begging stage in to Dhaka, Chittagong, Rajshahi, Khulna, Barishal, Faridpur etc. divisional area.

2. Demographic Segmentation: Dividing the market in to groups based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion, race and nationality. Age: Under 5- 65+ aged people ; Gender: Male and Female both; Family Size: Any types of family; Occupation: Any; Religion: Any; Race: Any.

3. Psychographic Segmentation: Dividing a market in to different groups based on social class, life style or personality characteristics.

Social Class: I want to target the whole market in Bangladesh but at the beginning stage I emphasize more upper class people with I price but within a short period of time I reach I product to all class of people. Life Style: Achieves, strivers, survivors. Personality: I make I product for all specially ambitious people.iii. Environmental Impact:At present environment is very much important issue for a business. Day by day the environment is being polluted as result the polluted environment is going to death. The ecological balance is declining day by day for the polluting environment. Today, the whole world is really aware about the environment. Because day by day, the world economy is going to agriculture based to industry based. And this industry produces more harmful components as a result the environment is being polluted. Hence, before producing or starting a business, environment analysis is most important. Since I product is egg powder, and I used modern technology which does not produce more harmful chemical. And I product design, packaging, quality everything is environmentally friendly. Because I started I business for the betterment of I customers and consumers. And all of people are directly or indirectly involved to I production. If I hamper I environment, the people will be affected ultimately the objective or mission cannot fulfill. I use latest technology and all are automated machine. From production design to destruction stage, in every stage I have used less harmful components. I products are approved ISO: 9001 and they provide us ISO certificate through verifying I products and technology.

I production process is also environment friendly. The dried egg powder is totally free from harmful chemical and its packaging system is also less harmful specially container. As a result it does not create negative impacts to I environment. And I have used the waste of I egg to produce fertilizer. As a result, the product does not create any harmful component for I environment. So the dried egg powder is mostly helpful foods for I environment.

5. Project Engineering:i. Layout & Physical Coverage of Project:The physical coverage and layout of the project are very wide. And that are given below:

Project Plan of Millennium Agro Food Ltd.

I projected coverage of the project is given and I are going to cover up the whole Bangladeshi market.

Projected Coverage of I Project

ii. Technology & Equipments:Manufacture of dried egg powder starts with breaking of eggs and removing egg-shells. After removal of shells, the mixture is filtered and stored in storage tanks at about 4 C and then it is taken to tubular heater wherein it is dried at about 65 C for 8 to 10 minutes and it is filtered and passed to high pressure spray drier with the help of high pressure pump. The material which comes out of high pressure spray drier is not only in dried form but also in powder form which is then packed in poly-lined boxes.

A typical process flow chart would be as under:

Breaking of Eggs and removal of shells

Filtration

Storage and Drying

Packing

The eggs are fed to a convectional egg breaking system. After breaking and separation of the egg and shell the whole egg is discharged into the filtration system of the process. The shells are deposited into a centrifuge where the residual liquid egg and shell are separated. After the special filtration process the egg is fed to the storage tank where it is cooled down to 40C by means of the chilled water jackets. Slow speed agitation is provided with these storage vessels. From the storage tanks the egg is fed by a positive displacement pump to the tubular heater. This tubular heater is heated by hot water. The egg temperature is raised to 65O C. after heating the product is held at 65OC for 6 minutes gives sufficient pasteurization of the product for most situations and errs on the side of safety. Shorter holding times at 65OC are acceptable if the incoming egg quality allows this.

The warm egg from the holding tube is fed to one of the two dryer balance tanks and then to the high pressure pump by a centrifugal feeding pump. From the high pressure pump the egg is fed to the atomizing nozzles via a high pressure line. The spray dryer is cylindrical with a conical outlet for air and powder. The filtered drying air is heated by steam and then introduced to the drying chamber by a specially designed venture. Placed in this venture are the atomizing nozzle lances. The product is finally atomized into the hot inlet air. Due to flash drying the hot air rapidly reduces in temperature, thus giving minimum product damage. The dry powder and drying air leave the chamber at the bottom of the cone and are transported to a cyclone where the poIr is separated from the air. The powder is then cooled and filled into a container.

Two High Tech Machine

iii. Civil Engineering:I project is completely technology based. In order to operate technology, I need some expertise to operate the operation smoothly. Egg powder, regarding the industry concept, I are highbinder or pioneer of that particular industry. Since setting up machine to operating the machine I have to hire engineer to run the machine for ensuring the smooth operation to success. So in the financial part I pre-operating cost is much higher. Hiring foreign expertise and relating them will be costly. Thats why I will train up I local engineer for better service and minimizing I overhead cost. Which will create a better position for achieving the market share?As the time progress, local engineer will be efficient enough to run I business, then foreign engineer will go back to their own country and extra payment will be reduced.As a pioneer of the egg powder industry, I machinery equipment will be hybrid to attain credibility to customers mind.I packaging machine, printing machine will be imported. So importing cost will be high. Employee needed for the operation of the machine will also incur some extra cost. So their extra cost should be cut off. Training up should the local employee to become expertise for the operation of machinery. Then other debt will require expertise will be appointed by I R&D department.

6. Plant Organization & Overhead Costs:i. Plant Organization:Plant organization means the process of how a business organization can maintain its capital and other sources of finance to maximize its productivity. For doing so a growing project like I need more care in acquiring capital and other sources of fund.

Projected Capital Slicing & Allocation of fund:Capital is the key of a business. In below I are stated the initial capital sIcing and the allocation of I capital in two pie chart.

Capital SIcing

Allocation of Fund

ii. Overhead Cost:Like an ordinary project I have some overhead costs. Which drive I project directly. So for doing better in I project I must do better in minimizing those costs as much I can. These costs are:- a) Wagesb) Stores & Sparesc) Repair & Maintenance d) Egg Breaker e) Centrifugef) Filterg) Storage Tankh) Feed Pumpi) Tabular Heaterj) Balance Tankk) Feed Pumpl) High Pressure Spray Dryerm) High Pressure Pumpn) Cyclone with Exhaust and Fan o) Packing unit p) Electrification & Installation q) Factory Building Depreciationr) Electricity s) Watert) Telephoneu) Others

7. Manpower:No one organization can run without the help of man poIr. Like other reslices human resIce is very important part of a project. I are going to start a new business project in Bangladesh and that is egg powder. Since it is a technology based production process but the whole task need to perform some staff and labor. The whole production process is technology oriented but it is maintained by some experienced and inexperienced technicians. Initially I hired two experienced operators who Ire familiar to machine and production process. They always help other to maintain the task smoothly. The number of labor and staff who directly or indirectly perform to run the project are given:

# MANPOWER REQUIREMENTS:ParticularsNo.Monthly SalaryTotal Monthly Salary

Machine Operators24,0008,000

Skilled Workers63,00018,000

Semi- Skilled Workers42,0008,000

Unskilled Workers101,50015,000

Salesmen23,0006,000

Clerk12,5002,500

Total57,500

8. Project Implementation:Egg powder is a new business project in Bangladesh. Initially I estimated I project duration might be less than 1 years. After arranging all things I will start to produce I product. Implementation is an application, execution of an idea, plan, model, specification, design, standard, policy and algorithm. Project Implementation process may be effective if some very important factors are kept in mind that are urgent in a project management system. It is crucial for everyone to start the project by keeping in mind some factors are identified in the article. Implementation of a project is the step where all the proper planned activities are put into action. Before starting the implementation of a project, the implementers must identify his weaknesses and strength. The customer's needs from the product of the project must be defined, and the project scope should be clearly known. Keep a record of when the project implementation process starts and finishes. The main thing to do before the implementation of a project is to predetermine and discuss the project budget and the estimated time, and the manpower required to finish the project. To ensure successful project implementation, there are some important tips that you need to make use of. The project should have people who are dedicated more to create the situations of the successful project implementation. Before the project implementation process starts, ensure you have all factors of project process written or recorded on paper. This will make the project implementation process easier to manage, and they can be of used for the projects that are the same as the current project. Project monitoring is also an important thing to make sure that activities are implemented as per planned. This assists the project implementers to check how Ill they are getting their objectives. This process is fully based on the knowledge that the procedure, by which a project is implemented, has so many effects on its access, maintenance, and operation.

9. Financial and economic evaluation.

Financial analysis is the major part for feasibility analysis. The feasibility of a business mainly depends on the financial analysis. In I financial analysis I divided it into some steps. I actually find the following items in I business project. I project is still under the construction. So, all parts of financial analysis have done by using hypothetical or projected information. The whole analysis is known as financial and economic evaluation.

# Cost of the Project and Means of Finance:Sl. No.Cost of ComponentAmount

1Machineries and Plant6,500,000

2 Land and Building 4.000,000

3Miscellaneous Assets2,000,000

4Pre-Operative Expense1,500,000

Fixed Cost =14,000,000

5Working Capital1,000,000

Total = 15,000,000

Means of Finance

6Promoters6,000,000

7Bank Loan9,000,000

Total = 15,000,000

Debt Equity Ratio1.5:1

Promoters Contribution40%

Projected Income Statement

Income Statement of the Millennium Agro Food Ltd. for the first five yearsParticulars1st year2nd year3rd year4th year5th year

Sales Revenue26,500,00029,150,00030,000,00033,000,00038,000,000

Less: Cost of Goods Sold20,070,00022,077,00022,787,57622,990,89324,875,472

Gross Operating Income6,430,0007,073,0007,212,42410,009,10713,124,528

Less: Administrative Exp.1,440,7691,584,8462,189,3476,891,030$ 7,575,297

EBIT4,989,2315,488,1545,023,0773,118,0775,549,231

Less: Interest Expense900,000900,000900,000900,000900,000

Pre- Tax Income4,089,2314,588,1544,123,0772,218,0774,649,231

Less: Income Tax1,431,2311,605,8541,443,077776,3271,627,231

Net Income2,658,0002,982,3002,680,0001,441,7503,022,000

Projected Balance sheet

Balance Sheet of the Millennium Agro Food Ltd.- For the first five years:Assets1st year2nd year3rd year4th year5th year

Current Assets:

Cash 510,000 561,000 1,150,000 2,300,000 2,700,000

Accounts Receivable 3,168,000 3,484,800 4,880,000 5,991,750 6,861,000

Inventory:

Finished Goods 2,230,000 2,453,000 2,600,000 2,250,000 4,811,000

Total Current Assets 5,908,000 6,498,800 8,630,000 10,541,750 14,372,000

Property, Plant &Equipment10500000 12,703,500 105000001050000010500000

Accumulated Depreciation 1,050,000 2,100,000 3,150,000 4,200,000 5,250,000

Total property, plant & Equipment 9,450,000 10,603,500 7,350,000 6,300,000 5,250,000

Other property 1,000,000

Other Non-Current Assets: 2,974,800

830,600

1,680,000

2,311,000

Miscellaneous Assets 2,000,000 2,200,000 2,500,000 2,000,000 2,000,000

Pre-Operative Expense 1,500,000

Total non -current assets 3,500,000 2,200,000 2,500,000 2,000,000 2,000,000

Total Assets 18,858,000 19,302,300 19,480,000 18,841,750 21,622,000

Liabilities & Equity Capital:

Current Liabilities :

Accounts Payable 1,200,000 1,320,000 1,800,000 2,400,000 3,600,000

Total current liabilities 1,200,000 1,320,000 1,800,000 2,400,000 3,600,000

Long-Liabilities:

Bank Loan 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000

Total Liabilities 10,200,000 10,320,000 10,800,000 11,400,000 12,600,000

Owners Equity:

Equity Capital 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000

Net- Income 2,658,000 2,982,300 2,680,000 1,441,750 3,022,000

Total Equity capital 8,658,000 8,982,300 8,680,000 7,441,750 9,022,000

Total Liabilities& Equity Capital 18,858,000 19,302,300 19,480,000 18,841,750 21,622,000

Projected Cash flow statement

Cash Flow Statement of the Millennium Agro Food Ltd.- For the first five years:Particulars 1st year2nd year3rd year4th year5th year

Cash Flow from operating Activities:

Net Income 2,658,000 2,982,300 2,680,000 1,441,750 3,022,000

Depreciation 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000

Decrease /Increasing in Non-current assets0 1,300,000 -3000005000000

Increase in A/R-3168000 -316,800 -1,395,200-1111750-869,250

Increase in A/P1200000 120,000 480,000 6000001200000

Increase in F/ G-2230000 (223,000) (1,395,200)350000 (2,561,000)

Total cash flow from Operating activities (490,000) 5,229,300 1,419,600 2,830,000 2,711,000

Cash Flows from Investing Activities:

(Additions to ) Plant, & Equipmet0 (2,203,500)

Other Property-2974800-830600 (1,680,000)-2311000

Total cash flow from Investing Activities -5,178,300-530600-1,680,000-2,311,000

Cash Flow from Financing Activities:-----

Total cash flow from Financing Activities-----

Net Change in Cash(490,000)510005,89,0001,150,0004,00,000

Beginning Cash 1,000,0005,10,0005,61,0001,150,0002,300,000

Ending Cash5,10,0005,61,00001,150,0002,300,0002,700,000

Production Cost sheet of "Millennium Agro Food Ltd."

Total Direct cost

CostsAmountTotal

Direct Material:

Purchase of Raw Materials and Packing15,360,000

Direct Labor:

Wages690,000

Total Direct Cost 16,050,000

Total factory overhead cost

Stores & Spares2,000,000

Repair & Maintenance1,200,000

Machinery Depreciation:

Egg Breaker20,000

Centrifuge60,000

Filter20,000

Storage Tank30,000

Feed Pump60,000

Tabular Heater80,000

Balance Tank30,000

Feed Pump70,000

High Pressure Spray Dryer75,000

High Pressure Pump80,000

Cyclone with Exhaust and Fan35,000

Packing unit50,000

Electrification & Installation40,000

Factory Building Depreciation400,000

Utilities:

Electricity1,000,000

Water300,000

Telephone200,000

Others500,000

Total Indirect and Factory Overhead6,250,000

Total Manufacturing Cost22,300,000

Less: Ending Finished Goods (10%)2,230,000

Cost of Goods Sold20,070,000

Sales & Administrative Expenses:

Remuneration:

Commission of sales person100,000

Advertising1,000,000

Internet bill15000

Electricity180000

Self Managing145,769

Total Sales & Administrative Expenses1,440,769

Selling Price Per kg:

Cost of Sales21,510,769

Profit Margin (40%)4889231

Total Sales Revenue26,400,000

Total Unit Sold (Ton)120

Unit Cost (kg)179.26

Add: Profit Margin 40%40.74

Selling Price Per kg220

After deducting all of expenses I find the selling price of egg powder is 220tk per kg with 40% profit. The total over head cost is 6,250,000tk. The total sales revenue is 26,400,000tk. The total unit sold is 120 ton. The total unit cost is 179.26 kg.

Total current Assets:Beginning Ending

Current Assets:

Cash 1,000,000 510,000

Accounts Receivable 3,168,000

Inventory:

Finished Goods 2,230,000

Total Current Assets 1,000,000 5,908,000

Total Fixed Assets:

Property, Plant &BeginningEnding

Equipment:

Egg Breaker 200,000 200,000

Less: Depreciation 20,000

180,000

Centrifuge 600,000 600,000

Less: Depreciation 60,000

540,000

Filter 200,000 200,000

Less: Depreciation 20,000

180,000

Storage Tank 300,000 300,000

Less: Depreciation 30,000

270,000

Feed Pump 600,000 600,000

Less: Depreciation 60,000

540,000

Tabular Heater 800,000 800,000

Less: Depreciation 80,000

720,000

Balance Tank 300,000 300,000

Less: Depreciation 30,000

270,000

Feed Pump 700,000 700,000

Less: Depreciation 70,000

630,000

High Pressure Spray Dryer 800,000 800,000

Less: Depreciation 80,000

720,000

High Pressure Pump 750,000 750,000

Less: Depreciation 75,000

675,000

Cyclone with Exhaust and Fan 350,000 350,000

Less: Depreciation 35,000

315,000

Packing unit 500,000 500,000

Less: Depreciation 50,000

450,000

Electrification & Installation 400,000 400,000

Less: Depreciation 40,000

360,000

Land and Building 4,000,000 4,000,000

Less: Depreciation 400,000

3,600,000

Total Property, Plant & Equipment 10,500,000 9,450,000

Other Non-current Assets

Miscellaneous Assets 2,000,000 2,000,000

Pre-Operative Expense 1,500,000 1,500,000

Total Fixed Assets 3,500,000 3,500,000

Liabilities & Equity Capital:

Current Liabilities :

Accounts Payable 1,200,000

Total current liabilities 1,200,000

Long-Liabilities:

Bank Loan 9,000,000 9,000,000

Total Liabilities 9,000,000 10,200,000

Owners Equity:

Equity Capital 6,000,000 6,000,000

Net- Income 2,658,000

Total Equity capital 6,000,000 8,658,000

Total Liabilities& Equity Capital15,000,00018,858,000

Ratio Analysis:A. Profitability Ratio:1st year2nd year3rd year4th year5th year

Profit Margin10%10.23%8.93%4.36%7.95%

Return on Assets14.09%15.45%13.75%7.65%13.97%

Return on Equity44.3%49.7%44.66%24%50.36%

B. Asset Utilization Ratio: 1st year2nd year3rd year4th year5th year

Receivable Turnover88655

Inventory Turnover11.811.811.8158

Total Asset Turnover1.41.51.541.751.77

C. Liquidity Ratio:1st year2nd year3rd year4th year5th year

Current Ratio4.94.94.794.33.99

Quick Ratio3.063.063.353.452.65

D. Debt Utilization Ratio:1st year2nd year3rd year4th year5th year

Debt of Total Assets54%53.46%55.44%60.50%58.27%

Time Interest Earned5.565.583.466.16

Break- Even Analysis:

BEP = FC /(P-VC) Here,FC = Fixed CostP = PriceVC = Variable Cost BE = Break even

BE = FC / (P-VC) = 14,000,000/ (220- 179.26) = 343642.6117 = 343.642 Ton

Commercial Profitability:

APay Back Period 4.96 Years

BNet Present Value794,690 at 14% discount rate

CInternal Rate of Return %34%

(After tax and interest)

National economic evaluation: Country point of view: As I economy is free market Economy. It is very much easier to inaugurate a new business. I have available labor force and this labor force is the cheapest in the world. And also I have available raw materials. Since I business is mostly labor and capital oriented. So cheap labor is the positive side of I business. And another one is capital requirements. I have available many commercial banks to provide loan with less interest rate to the industry sector. And central bank also establishes a new project to rise on the industry sector. I government always helps and supports to increase I industry sector. Because only industry can reduce the unemployment problem, poverty problem and economic inefficiency problem etc. I countrys geographical location is also perfect of I business. Since I product is egg based product, so geographic location is very much important. I have much free space thats why it is much feasible to start I business. Since I economy is free market economy. So I can easily enter in to the market with new product without any barriers. I can set up a price with observing supply and demand. And I country has large number of population and their demand is also more. To meet the demand I have to innovate a new product line. The tax rate of our country is comparatively lower than other country and import export barriers are less with the positive impacts of I countrys economy, I have started I business.

Company point of view: The first and main condition of a business is capital. I company is running mostly with the help of I equity financing. And rest of the capital I have collected from other sources. I have skilled manpower and I business location is very much perfect area. I product is new product in I country and it is very much positive side to I business. Because the people of I country are always ready to take the new product. I can also reduce the unemployment problem by recruiting man power. And I also support I economy by providing products and meet the demand. So company also helps to rise on I economy. Since I have innovated a new product. So I are in monopoly position in I market. From the economic point of view, I have more feasibility to I newly business.

Projected Capital Sourcing:Capital is the key of a business. In below I are stated the initial capital sourcing in a pie.

Capital Sourcing

Earning Profit:Business is run for seeking profit. In I projected income statement I saw that first year I face loss but from next year I can earn handsome amount of profit from each year. In the below earning profit of first five years are given in a graph.

Five years Net Profit

Cash Flow:Cash is the main fuel of a business. So the trend of cash flow is very important for doing Ill in business. In I projected cash flow statement I can see that in first year due to loss cash flow is low but from second year it started its growth. In the below cash flow is shown at a glance.

Five years trend of Cash FlowOwners Equity:Owners equity means the payable money which is invested in the business by its owner. Owner is always wanted to increase his or her owners equity. In I projected owners equity I found that due to huge profit except first year every year owners equity will increase. In the below the projected trend is given.

Five years trend of Owners Equity

Findings and Analysis:After analyzing and observation of economic point of view, technological point of view, environment point of view, marketing of point of view and the most important financial analysis I find that I Egg Powder is mostly feasible in Bangladeshi market. From the economic point of view, I find, I economic condition is suitable to start this business. Free market condition, available of raw materials, cheap labor cost, location are the positive aspects of I business. I have used modern technology to manufacture I product. I manufacturing process follow TQM facilities. From collecting raw material to packaging I use new technology. The production process is not harmful for I environment. I use environment friendly equipment to manufacture I product. I have tasted I product quality through BUET. It is no side effect.

After observing the marketing analysis I find that I have more strengths and opportunities. Because the customer or consumer of I country prefer the new branded product. Since I are the first mover in Bangladesh with a new product (Egg Powder). It creates more taste rather than natural egg and I select I target consumer of urban people and industrial raw material. So I feel I product create more demand. I manufacture huge volume of products as a result, the per kg price is less. And consumer always prefer high quality product with low price. I try to comfort the consumer. I have good advertisement technique to aware and promote the consumer. I use traditional distribution channel to market I product. From market point of view. I think I egg powder is feasible in I local market.

Financial analysis is the most important part of I feasibility study. Since I are manufacturing Egg powder thats why I have collected I requirement capital from own finance and bank loan. At the first year I net income (after tax and interest) is 26, 58, 000. And I see I net income is satisfactory. I assume I income will be increased during the next five years. I company is mostly feasible of the financing part, I have no more extra cost or expensed which reducing the net income. I fixed assets are constant in every year. But current assets and liabilities are changing every year because of I competency. From the financing view point I are feasible for producing the egg powder and run I business smoothly because I set I product price per kg Tk.220 that is affordable to I target consume.

After analyzing all view point I draw overall SWOC analysis.

# Strengths:(i) I use the modern technology;(ii) Available of raw material;(iii) I have cost benefit facilities;(iv) I have a new brand image;(v) I have skilled and cheap labor;(vi) I do patent I egg powder;(vii) I have strong distribution channel;(viii) I provide high quality product with low price.

# Weaknesses:

(i) I want of capture the whole market but I have limited resources;(ii) All labors force are not skilled;(iii) I have more initial administrative cost;(iv) I cannot reduce the production cost in short time;(v) I have no available more cash after ending the year;(vi) Ready made products having no readymade markets.

# Opportunities:

(i) I are the first mover in Bangladeshi market so I have advancement benefit;(ii) I have strong brand image;(iii) Government support and economic flexibility I have;(iv) I have no trade barriers because I start infant industry;(v) At present I have no competitor in local market;(vi) I offer greater value product;(vii) I local market is going to organizational way.

# Challenges:(i) Consumers are habituated of natural egg;(ii) If distribution channel falls, I mission or objective goes down;(iii) Unpleasant economic condition;(iv) Political unrest is a common threat of I industry;(v) I country has no proper communication facilities. So I can not use JIT facilities;(vi) To ensure the quality, I cover more cost;(vii) I country has no strong regulatory body of business sector.

6. Conclusion:Creating a market for a new product and maintaining the constant supply of product will be the major area of concentration for the business. I have a proper market, strong technology, and required finance. I have also good market image and target consumers. Since I am the first mover in the Bangladeshi market so I have first mover advantage. Because egg powder is totally a new concept in Bangladesh. So all of things are positive for I business. But there are some threats may occur because of the traditional marketing channel and consumers habits. Because it is not easy task to reach I product to consumer but I marketing team always keep busy to do this job. Finally it can be said, Millennium Agro Food Ltd. Is going to create the market positioning through providing Egg Powder. And this concept is very much feasible in I business perspective.

Reference

1. Operations Management by Jay Heizer & Barry Render; Eighth Edition2. Information and Wildlife Valuation: Experiments and Policy, by Clem Tisdell and Clevo Wilson, August 2004 3. What are the Economic Prospects of Developing Aquaculture in Queensland to Supply the Low Price White Fillet Market? Lessons from the US Channel Catfish Industry, by Thorbjorn Lyster and Clem Tisdell, October 2004 4. Comparison of Funding and Demand for the Conservation of the Charismatic Koala with those for the Critically Endangered Wombat Lasiorhinus krefftii by Clem Tisdell and Hemanath Swarna Nantha, June 2005.

Appendix

In financial analysis part I only gave the projected statements. But if sales or Cost of Goods Sold will increase or decrease by 5% then what will be the income statement. These additional two statements are given in this appendix part. Here I give two projected income statements. One will show the 5% percent decrease in sales and another one will show the 5% increase in COGS.# Utilities:The annual cost of utilities at 100% activity level would beTk.2, 000,000.

# Interest:Interest on term loan of Tk. 9,000,000 has been calculated @ 10% per annum.

# Depreciation:It has been calculated @ 10% on building and machinery and other assets.# Preliminary and Pre-Operative Expenses:

The registration charges, establishment expenses, trial run expenses, interest during implementation etc would be around Tk.15,00,000 .

# Miscellaneous Assets:The provision for miscellaneous assets of Tk. 2,000,000 shall be adequate as explained earlier.

# Land and Buildings:

A plot of around 800 sq. meters will be sufficient as the built-up area requirement is not more than 500 sq. meters. The built-up area would have main production unit in around 300 sq. meters and balance area will be utilized for storage and packing. Cost of land and building is expected to Tk. 4,000,000. I select Gazipur area .For establish and manufactured processing and also factory office at Gazipur. I select this area because the cost of land is less than other area and also this area provide us raw materials facilities. As I earliest mentioned that my product is egg based so that I need huge amount of fresh eggs. As I know in Gazipur area there many poultry firm.

# MANPOWER REQUIREMENTS:

ParticularsNo.Monthly SalaryTotal Monthly Salary

Machine Operators24,0008,000

Skilled Workers63,00018,000

Semi- Skilled Workers42,0008,000

Unskilled Workers101,50015,000

Salesmen23,0006,000

Clerk12,5002,500

Total57,500

# Accounts Receivable: Sales26,400,000

Per week Sales5,28,000

Accounts Receivable(6 week)31,680,000

As a percentage of sales12%

# Accounts Payable:

Purchase of Egg 15,000,000

Per week purchase 3,00,000

Accounts Payable (4 week)12,000,000

As a percentage of purchase8%

Millennium Agro food Ltd.

Sensitivity Analysis - 5% decrease in sales

Projected Income Statement

Year-1Year-2Year-3Year-4Year-5

Net Sales534,850 1,056,353 1,273,561 1,545,042 1,895,421

Cost of Goods Sold(444,008)(336,500)(279,300)(428,740)(438,820)

Gross Profit90,842 719,853 994,261 1,116,302 1,456,601

Admin, Selling & Distribution Expenses(140,750)(322,466)(375,365)(487,908)(608,530)

Profit before Interest and Tax(49,908)397,387 618,895 628,394 848,071

Interest Expenses58,800 58,800 58,800 44,800 35,000

Profit before Tax(108,708)338,587 560,095 583,594 813,071

Taxation0 (118,505)(196,033)(204,258)(284,575)

Profit after tax(108,708)220,082 364,062 379,336 528,496

Profit distribution0 0 0 0 0

Retained Profit during the Year(108,708)220,082 364,062 379,336 528,496

Retained Profit B/f0 (108,708)111,374 475,435 854,772

Retained Profit C/f(108,708)111,374 475,435 854,772 1,383,268

Millennium Agro food Ltd.

Sensitivity Analysis - 5% Increase in Cost of Goods Sold

Year-1Year-2Year-3Year-4Year-5

Net Sales563,000 1,111,950 1,340,590 1,626,360 1,995,180

Cost of Goods Sold(466,208)(353,325)(293,265)(450,177)(460,761)

Gross Profit96,792 758,625 1,047,325 1,176,183 1,534,419

Administration, Selling & Distribution Expenses(140,750)(322,466)(375,365)(487,908)(608,530)

Profit before Interest and Tax(43,958)436,160 671,960 688,275 925,889

Interest Expenses58,800 58,800 58,800 44,800 35,000

Profit before Tax(102,758)377,360 613,160 643,475 890,889

Taxation0 (132,076)(214,606)(225,216)(311,811)

Profit after tax(102,758)245,284 398,554 418,259 579,078

Profit distribution - - - - -

Retained Profit during the Year(102,758)245,284 398,554 418,259 579,078

Retained Profit B/f - (102,758)142,525 541,079 959,338

Retained Profit C/f(102,758)142,525 541,079 959,338 1,538,416

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