This is the Right and Comprehensive procedure to make Feasibilty and conduct study for any Mega Project, This Presentation is made by Two Professional Experts to share their Knowledge with Others for Guidance. Regards, Tariq Sarwar Awan & Engr. Saima Khoro

1. How to Make
Feasibility of a Project
By
Engr. Saima Khoro BE & MS
(Electrical/Electronics),
and
Mr. Tariq Sarwar, Food Technologist, Nasir
Flour Mills, Lahore, Chairman Research and
Recommendations Wing, Pakistan Flour Mills
Association.

2. TYPES OF FEASIBILITIES FOR THE PROJECT
 Preliminary Feasibility
 Full Scale Feasibility
 Bankable Feasibility
Engr. Saima Khoro / Tariq Sarwar Awan Food
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3. PRELIMINARY
FEASIBILITY
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Availability of the Raw Material
Water
Power
Fuel
Soil Test
Effluent Disposal
Finished Product Demand Market Study
Engr. Saima Khoro / Tariq Sarwar Awan Food
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4. THE BASICS
 The Size of the Mill with
Recommended Capacity
 The Targeted Marketing Area
 Penetration Possibilities
Engr. Saima Khoro / Tariq Sarwar Awan Food
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5. FULL SCALE FEASIBILITY
 It should not be prepared by self but it
should be done by any professional with
deep study in the Same Field.
 Complete market Scenario
 Actual Financial aspects
 Financial Forecasts
 Ten year Plan
Engr. Saima Khoro / Tariq Sarwar Awan Food
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6. BANKABLE FEASIBILITY
 Should be prepared by Trade Specialist
like senior Food Technologist specially
any Food Technology Professor in any
University in consultation with Financial
and costing expert who is dealing to
banks from ten years minimum.
 Machine Specification Book (Precise)
 Should be prepared in a manner
acceptable to Bank.
Engr. Saima Khoro / Tariq Sarwar Awan Food
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7. ADEQUATE SITE SELECTION CRITERIA
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Criteria for selection of Site
Infra structure Required
Area Recommended
Recommended Location of Site
Land Requirement
Proposed Construction Plan with Cost
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8. ADEQUATE FINISHED PRODUCT MARKET
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Local Market of Pakistan
Export Market Scenario
List of Importer Countries in the World
with their import quantity and rate of
import
Acceptable Market Logistics
Transport
Duties
Costing Factor Saima Khoro / Tariq Sarwar Awan Food
Engr.
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9. FACTORY REQUIREMENTS
 Raw Material Transport
 Process water (treatment plant, etc,
Quality check options)
 Effluent Disposal
 Transport Finished Products
 Labor and Housing Availability
 Expansion facilities and space.
Engr. Saima Khoro / Tariq Sarwar Awan Food
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10. ADEQUATE CAPITAL COST
ESTIMATE
 Plant Cost
 Plant Cost with Automation
 Phases of Plant Up-gradation plan year
wise
 Infra-structure Cost
 Financing Cost During Construction and
Startup
 Working Capital including training Cost.
Engr. Saima Khoro / Tariq Sarwar Awan Food
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11. FANANCING STRUCTURE
 Debt. Equity Ratio and Availability
 Net Cash flow for Debt. Servicing
 Sensitivity Analysis
1- Market Price Analysis and Cyclicity
2- Raw Material Cost Fluctuations
 Return of Investments
 Recommended Life span of Plant
 Saturation Probability Study of
international standard
Engr. Saima Khoro / Tariq Sarwar Awan Food
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12. PROCEDURE FOR FINANCIAL ANALYSIS
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Profit and Loss statement
Cash Flow Charts and Statement
Sensitivity Analysis
Projected Balanced Sheet
Expected Sale Trends with last 5 years
reference and proposed for next 5 years.
Engr. Saima Khoro / Tariq Sarwar Awan Food
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13. DETAILED PLANS BOOKLET
 Plan for obtaining Raw Material
 Construction Plan with Structural
Drawings
 Training plan local or Foreign
 Operations Plan
 Phases of various plans if needed in the
specific section Booklet.
Engr. Saima Khoro / Tariq Sarwar Awan Food
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14. SITE PLANS
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Selection of Site
Topography
Socio-Economic Status
Environmental aspects
Fundamental Assumptions
General Economic Background
Political Stability.
Engr. Saima Khoro / Tariq Sarwar Awan Food
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15. DESCRIPTION OF PROCESS &
MILL ANCILLARIES
Power Generation (if Required)
Recovery
Effluent Treatment
Electrolytic Plant
Maintenance Shop
Lab Development for Quality assurance
according to ISO standards
 Bid from Suppliers
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Engr. Saima Khoro / Tariq Sarwar Awan Food
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16. LAYOUTS & AUTOMATION
 Complete
PLAN Line Flow Diagram
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Technical Layout with specifications
Placement plan with foundations ready for
installation at Specific spot, (be careful about
placing, height, non-disturbed flow of
material)
Automation of Feeding at start
Speed Check facilities
Sensors provision
Linkage in line with automation
Auto weighing and auto packing unit
Conveyors till warehouses
Engr. Saima Khoro / Tariq Sarwar Awan Food
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17. PROCESS ESSENTAILS
List of Raw material required
Cost of Raw material per ton
Accessories availability assurance
List of raw material to be imported and its
fluctuation history and graphical
representation
 Spares
 Availability of Clean Water
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18. METHODS AND PLANS
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Operations Covering Method
Data and Production Plan
Tests and Sources of Information on Yields
Raw material characteristics
Man power requirement stages and their
employment plan
HR Development
Recommended staff and their wages rates
Organization Chart
Schedule of Employees
Training Program
Accommodation Plans
Engr. Saima Khoro / Tariq Sarwar Awan Food
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19. ESTIMATION & COSTING
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Manufacturing cost
Capital cost requirement
Escalation Factor
Contingencies
Interest During Construction
Other Expenditures
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20. FINANCIAL FACTORS
 Plan Financial institutions
 Payout period
 Is payout period enough or extension
required
 Indicators of anticipated interest rates
 Terms and grace periods
 Proposed methods of foreign and local
financing and documents requirements
Engr. Saima Khoro / Tariq Sarwar Awan Food
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21. ORDER OF MAGNITUDE
with Basic Parameters
 Capital Cost Estimation
 Operating Cost Estimation
 Selling Price Projections
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22. Executive Summary for BOD/
CEO
 Executive Summary should be precise
covering all the Important factors,
highlighting every aspect to understand
every thing to foresee the viability of the
Project and its suitability.
Engr. Saima Khoro / Tariq Sarwar Awan Food
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23. Method to be Adopted by
CEO/ MD/ BOD
Hand over responsibilities to skilled people.
Supervise and support
Get daily/ weekly Progress report with presentaion
Monthly BOD meeting and grand presentation
Give Deadlines to responsible.
Remember…….Men at Work, Your Money at Work.
No relaxation for time frame to any one, deadline is
a deadline.
 Most important factor to remember…….YOU WILL
KEEP EXPENSING, TILL YOU START YOUR
FACTORY, SO START FACTORY AND START
EARNING…………..
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Engr. Saima Khoro / Tariq Sarwar Awan Food
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24. Best Wishes for Success
Transworld Team
 Engineer Saima Khoro BE Electrical/
Electronics, MS Electrical/Electronics
with Kind Support of Mr. Tariq Sarwar,
Food Technologist, CEO Nasir Flour
Mills & Chairman Research and
Recommendations Wing, Pakistan Flour
Mills Association, Head Office, Lahore.
Engr. Saima Khoro / Tariq Sarwar Awan Food
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