1. 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

2. 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

3. 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

4. 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

5. 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)

6. 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

7. 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
930.76

8. Process overview

9. CAPITAL FORMATION
Term Loan
930
Equity
440.48
Total
1370.5

10. 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

11. 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

12. 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 5 %
16.75
Add: Over head Water storage Tank 24
Total Cost
375.75

13. 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

14. 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

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

16. 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

17. 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

18. 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

19. 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
Power Cost
Rs.
28800
86.4
say
Rs in Lacs.

20. 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

21. Conclusion: 1. Based on Financial Highlights and Ratio analysis:
DSCR is highly satisfactory, the minimum value is 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 % this is satisfactory margin.
Net profit after tax is 8.21% in first year and goes o increasing to % 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.

22. 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.

23. 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 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.

24. 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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