TECHNO-ECONOMIC FEASIBILITY STUDY REPORT PROJECT REPORT VITAMIN B. COMPLEX ORAL SOLID, LIQUID & POWDER DOSAGE FORMS [TABLET/CAPSULE, SYRUP, SUSPENSION, SOLUTION/POWDER ] Dr. Akhilesh Gupta

CHAPTER I : INTRODUCTION 1.1 Introduction to the project 1.2 Introduction to the Vitamin B. Complex Tablets 1.3 Market Research for B.Complex local market 1.4 Market Research for Export Prospect, Statistics of Imports & Exports 1.5 Uses and Application of B. complex Tablets 1.6 Name and Address of the existing manufacturers of B. Complex Tablets 1.7 Detailed Process of Manufacture / Formulae. 1.8 Flow Sheet Diagram 1.9 List of Raw Materials

CHAPTER II : TECHNOLOGY DEVELOPMENT 2.1 Selection and sizing of the process equipment 2.2 Output of the proposed plant A] Tablet/Capsule Production Department B] Tablet/Capsule Packing Department C] QA & QC instruments & Lab equipments D] Store department E] Personal and administration Department F ] Engineering / Maintenance Department 2.3 Total Water Load requirement for proposed plant 2.4 Total Electrical Load requirement of the proposed plant 2.5 Land and Building Requirement for proposed plant Built up Area, Plant layout

CHAPTER III: TECHNICAL ASPECTS 3.1 Requirement of Staff 3.2 Pollution Control Measurement 3.3 QC Protocols for selected products RM, PM ,IPQC, FP. 3.4 Master Documents SOP, Dossiers, DMF/MFR, BMR, BPR. 3.5 Validations: Process, Batch, Analytical validation. 3.6 Regulatory Audits and approvals

CHAPTER IV: Financial Aspects 4.1 Cost of Land 4.2 Cost of land development 4.3 Cost of building 4.4 Total cost of process Equipments & instruments 4.5 Cost of Row materials & packing 4.6 Operating cost of the plant 4.7 Total cost of production 4.8 Total Cost of Plant process equipments & Machineries 4.9 Fixed Capital Investment in proposed plant 4.10 Assessment of Working Capital for 3 month 4.11 Total Project Cost 4.12 Capital Formation 4.13 Profitability Analysis 4.14 Ratio Analysis 4.15 DSCR (Debt service coverage ratio)

CHAPTER IV: FINANCIAL ASPECTS 4.16 Break Even Point, 4.17 Rate of returns on investment 4.18 Net profit Ratio 4.19 Payback Period of the project 4.20 Land Man Ratio 4.21 Cash Flow Statement 4.22 Projected Balance Sheet of proposed plant for 5 Years

PROJECT COST & MEANS OF FINANCE Rs . In Lacs Project Cost Amount Margin % Permissible limit Land 100 25 75 Site Development 48.5 36.38 Civil Construction 375.75 281.81 Plant and Machinery 645.9 484.43 Electrification 52.35 39.26 Miscellaneous Assets 18.5 13.88 Preoperative Expenses 80 Working Capital Margin 49.48 T O T A L 1370.48 930.76

Process overview

CAPITAL FORMATION Term Loan 930 Equity 440.48 Total 1370.5

DETAILS OF PROJECT COST 1. LAND: Particulars Unit Amount Area Acres 4 Rate / Acre Rs. Lacs 22.5 Cost 90 Registration & Other Charges 10 Total cost 100

2. DETAILS OF SITE DEVELOPMNT Particulars Cost Rs . In Lacs leveling and filling 16 Internal roads 5 Lightening 4 Drainage & culverts 3 Boundary walls & Gates 10 bore well & Pipeline 2.5 Landscaping Miscellaneous Total cost 48.5

3. DETAILS OF CIVIL CONSTRUCTION Particulars area Rate Cost sq. ft. Rs./Sq. ft. Rs. In lacs Production- liquid Line 10000 650 65 Production - tablets 12000 78 Production- Capsules 6000 600 36 stores 30000 350 105 Administrative amenities 3000 500 15 Total 335 Add: Architect's Fees @ 5 % 16.75 Add: Over head Water storage Tank 24 Total Cost 375.75

4. DETAILS OF PLANT AND MACHINERY COST Particulars Rs. In lacs plant & machinery 450.68 Other supporting M/C. & equipments 75.22 Effluent Treatment Plant 20 erection and Installation 50 Transportations 25 Technical consultant Fees Total cost 645.9

5. DETAILS OF ELECTRIFICATION COST Particulars Rs. In lacs D. G. set 14 Transformer 7.5 Civil Work for transformer 2.85 Cabling, Control Panel 28 Total cost 52.35

6. DETAILS OF MISCELLANEUOS ASSETS COST Particulars Rs. In lacs Furniture 10 computers 6 Other office Equipments 2.5 Total cost 18.5

7. DETAILS OF PREOPERATIVE COST / EXPENSES Particulars Rs. Inlacs Preliminary expenses 1 interest during Gestation Period 50 Processing Fees Mortgage and Legal expenses 12 Traveling and Conveyance 2 establishment Expenses 4 Market survey and Project Report 7 Miscellaneous expenses 3 Total Expenses 80 TOTAL FIXED CAPITAL INSVESTMENT 945.25

8. WORKING CAPITAL REQUIREMENT First Second Third Fourth Fifth Sixth Particulars Year Average Raw Material stock 112.5 135 157.5 Period (Month) 1 FG stock 10.23 12.24 14.24 Period (Days) 2 Debtors 186.25 224.75 262.3 262.5 Period (months) Total 308.98 371.99 434 434.24 Creditors Period (Months) Net requirement 196.48 236.99 276.5 276.74 176.74 Permissible Limit 147 Own margin 49.48 89.99 129.5 129.74

MAN POWER COST REQUIREMENT Particulars Nos. Rate Amt. P.M. Amt. P.A. Managers 4 0.25 1 12 Executives 5 0.18 0.9 10.8 Office Staff 10 0.8 8 96 Skilled workers 20 0.5 120 Unskilled Workers 44 0.35 15.4 184.8 Total 83 Rs in Lacs. 35.3 423.6

POWER COST REQUIREMENT At Full Capacity Particulars Unit Per day Per annum Connected Load KVA 500 KW 450 Working Time Hrs 16 4800 consumption KWH 7200 2160000 Power Cost Rs. 28800 86.4 say Rs in Lacs.

YEAR WISE COST OF POWER Rs in lacs Particulars First Second Third Fourth Fifth Sixth Year Capacity Utilization in % 50 60 70 Power cost 43.2 51.84 60.48

Conclusion: 1. Based on Financial Highlights and Ratio analysis: DSCR is highly satisfactory, the minimum value is 1.07. In first year while maximum value is 2.28 in fifth year, average ratio comes to 2.04. Gross profit margin is 25.29% in first year and goes on increasing up to 29.29% in sixth year. Average ratio is 28.29 % this is satisfactory margin. Net profit after tax is 8.21% in first year and goes o increasing to 15.25 % in fifth year. Average ratio is 13.08% being after tax profit, this margin is satisfactory. Debt Equity ratio i.e. ratio of term liabilities to tangible net worth is 1.40:1 at the end of the first year which is satisfactory. Initial ratio is 2.11:1 which is within acceptable range. Total outside liabilities to Tangible Net Worth ratio is 1.87:1 at the end of the first year which is satisfactory. Initial ratio is 2.45:1 which is within acceptable range. Current ratio is 1.89 in the first year and has gone on increasing constantly including high liquidity.

Conclusion: 2. Based On Break Even Point: Break even Capacity is in the range of 13.24% to 21.62% which is very low and reflects high profitability and low risk associated with the unit.

Conclusion 3. Based on Pay Back and Discounted Cash Flow Analysis Payback period is about 38 months and discounted payback period (at 15% per year discounting rate) is 54 months which is low enough. At cut of rate of 15% per annum Net Present Value comes to Rs. 603.97 lacs. And Benefit Cost Ratio is 1.6 which is very good. Internal Rate of returns is 30.48% per annum which is quiet high.

OVERALL CONCLUSION : Considering all the forgoing points we can say that the project is highly profitable with low risk and solvency as well as liquidity is of high order, hence the project is technically Feasible and financially viable.

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