(AL-ALAQ)

READ! AND THY LORD IS THE MOST

BOUNTENOUS, WHO TEACHETH
BY THE PEN, TEACHETH MAN THAT
WHICH HE KNEW NOT.

ALLAH DOES NOT LOOK AT YOUR

FORMS AND POSSESSIONS
BUT HE LOOKS AT YOUR HERTS AND
DEEDS.
(MUSLIM)
U Group of Industries
SMALL INDUSTRIAL ESTATE
BAHAWALPUR

U Group of Industries
 Presented by:

M. Farhan khizar 24
Amir Fraz 11
Humaira Kanwal 09

MSc (A/F)
3rd Semester
Session 2008-10
Department of Commerce

U Group of Industries
 OUTLINE

-Introduction to industry
- Market Analysis
-Technical Analysis
-Personal Analysis
-Financial Analysis
-SWOT Analysis
-Recommendation & Conclusion

U Group of Industries
Farhan Khizar

Roll no # 24

U Group of Industries
Introduction to Industry
 Wheat is one of the most important products for all of
region of the world.
 Without wheat human life is uncompleted.
 It is become more important not only by the fact of
improvement international value.
 It’s a first food item that an important for all over the
world.
 That business also important for a Pakistan.
 And last decades the flour mill are increase due
increase in demand of flour.

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 Early concept of
flour mills

 Firstlywheat
is grinding
with the help
of the
machine
which is run
by the
manually
(Desi Chakki)

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Early concept

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First modern concept

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Grist mills
constructed in the
early 1600's to
grind corn and
wheat to make  The History of Flour Milling In
flour for the early Early America
English settlers of
coastal areas

U Group of Industries
It was brought to in 1626 by
Dutch and German settlers.
Buckwheat spread down from
New York, into Pennsylvania,
western Maryland, West Virginia
and into Michigan. In the North
and New England the type of
corn used for milling is yellow
field corn. U Group of Industries
 So after about 1730 most mills of any size operated their flour sifting
machinery by water power rather than being hand sifted.

 So the designs of water wheels and milling machinery changed in

the 1800's.

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History of Flour mills in Pakistan

 1957 - Pakistan Flour Mills Engineers was

established in 1957. We havw been cartering
to the requriments of flour mills in Pakistan
entirely to the satisfaction of our worthy
customers.

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There are two types
 There are two types of mills or milling operations.
Custom mills grind grains individually for farmers and
other individuals. The miller is paid for his services of
milling by collecting a toll. A toll is a portion of the
grain brought to the mill for grinding

 The other type of mill is a merchant mill. A merchant

mill Is a commercial milling operation.

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 Market Analysis

 Production in Pakistan for the last 5 years (000 tons):

2004-05 2005-06 2006-07 2007-08 2008-09

21612 21277 23295 20959 23421

Present demand:
Present demand of flour is about 25525000 tons in this current year.

U Group of Industries
 Con’t

Demand supply gap:

 The supply of flour is about 23225000 tons and demand is
about 25525000 tons.
Ex-factory price(price which u will sell to whole sellers)
 The ex-factory price of 20kg bag of floure is 540
 The ex-factory price of 20kg bag of maida is 740
 The ex-factory price of 20kg bag of bran is 220

Retail price
 The retail price of 20kg bag of floure is 560
 The retail price of 20kg bag of maida is 760
 The retail price of 20kg bag of bran is 240
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Distribution Channel

FACTORY WHOLESALERS

CONSUMER RETAILERS

U Group of Industries
Amir Fraz

Roll No # 11

U Group of Industries
Technical analysis

Four major points.

1. Land for project
2. Machinery for project
3. Labor for project
4. Raw Material

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Land for project

 Land 120 marla @ 68000 per marla

 Registratioin & Legal Requirements 1% of
cost of Land
 Stamp Duty 2% of Cost of Land
 District Council Fee 1% of Cost of Land

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 Machinery for project

Seprator ELEVATOR

LOW PRESSURE FAN

WASHING MACHINE

U Group of Industries
 Con’t

Magnetic Machine Ruler Body Shifter

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 Con’t

PURIFIER Air Lock Battery Cyclones

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Labor for project

 Total Cost of Milling Staff 10,735

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Manufacturing process

Flow chart

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 Wheat received in
the Factory

Wheat is weighted on
the Plate Form

Elevator 1 Elevator 2 Elevator 3 Elevator 4

Wheat goes to
Separators for Clearing

Separator 1

Wheat goes to Bin to

send it for Washing

Washing
Machine
Wheat goes to Bin to
send it for Grinding

Roller Body

Sifter

Packing

Output is send to
Market

Separator 2

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Separator 3
Raw Material

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Personal Analysis

Chairman

Director General Admin Director Production

Fore man
Manager Sale Dept. productions

Manager a/c’s Dept. Supervisors

Manager Purchase Skilled labor Unskilled labor

Dept.
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Financial Analysis
RATIOS 1 2 3
 Current Ratio 2.38 3.080 3.69

 Cash Ratio 2.29 3.99 6.05

 Liquid Ratio 2.44 4.25 6.42

 Debt/Total Equity 1.31 .96 .72
 Net Profit 9.55% 9.90% 12.25%
 Internal Rate Of Return 30%
 Pay Back Period 2.35 years

U Group of Industries
Humaira kanwal

Roll No # 09

U Group of Industries
SWOT Analysis

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Strengths

 The labor to manufacture flour is easily

available we can reach easily to low cost
labor. Moreover the location for our project is
very attractive. We can avail maximum
advantage from this market.

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Weaknesses

 Our weakness is that we are not producing

flour up to the present demand of the
consumer. Because we have dependend on
govt for wheat and electricity problem is also
our weakness.

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Opportunities

 Pakistan is an agricultureal country, the

production of wheat is very high.flour is
neccessry for all kind of people so, demand
of wheat is repedly increases.also there is no
enough flour mills to fullfill the demand so,
there is great opportunity to establish flour
mill.

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Threats

 The market of the flour mills is highly

competitive; therefore if the entrepreneur is
 not well responsive and fulfilling the demand
of the consumer he/she may not be able to
capitalize the opportunity properly.and the
qotta system is used the supply of wheat not
provided to flour mills according to their
demands

U Group of Industries
Conclusion and Recomendation
 We conclude that on the basis of field work and surveu of
flour mills that the flour is neccessry product
 Demand increse day by day.
 There is no chance to decrease the demand of flour.
Pakista is an agricultural country and wheat is the one of
the major crop.
 Availability of raw material is very easy.
 So, conclusion is that the flour mill is a profit motive
business because no chance of decrease of demand.

U Group of Industries
Con’t

 Our recommendation to new investors is that

they must invest in flour mill because from
the last year there is the shortage of flour in
pakistan. So, they step forward to minimize
this shortage, and also contribute in the
economic as well as social groth of Pakistan.

U Group of Industries
Special Thanks

We bow our head, before ALLAH Almighty,

who blessed us with potential and stamina to
complete our fesibility report on flour mill.
First of all would like to pay our special regards
to Respected “Sir Mr. JAVED IQBAL” who
provides us guidance at each and every
step, in completion of all this feasibility report.

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 We are especially thankful to those personalities who help us in
collecting data during the fieldwork and also in our practical
work.
In this regard our thanks goes to:

 Mr:Arsalan rabbani, Mr: Shakeel ahmed

 Mr: Jawad-ul-hasan, Mr: Mohsin shazad
 Mr: Hunain khan, Mr: Adnan ch
 Mr: hasan qureshi, Mr: Farzan rafi,,

And
All of our class fellows

U Group of Industries
U Group of Industries