smeda wooden furniture manufacturing unit

Pre-Feasibility Study

WWOOOODDEENN FFUURRNNIITTUURREE MMAANNUUFFAACCTTUURRIINNGGUUNNIITT

Small and Medium Enterprise Development AuthorityGovernment of Pakistan

www.smeda.org.pk

HEAD OFFICE

Waheed Trade Complex, 1st Floor , 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA LahoreTel: (042) 111-111-456, Fax: (042) 5896619, 5899756

[email protected]

REGIONAL OFFICE PUNJAB

REGIONAL OFFICE SINDH

REGIONAL OFFICE NWFP

REGIONAL OFFICE BALOCHISTAN

Waheed Trade Complex,1st Floor, 36-Commercial Zone,

Phase III, Sector XX,Khayaban-e-Iqbal, DHA Lahore.

Tel: (042) 111-111-456Fax: (042) 5896619, 5899756

[email protected]

5TH Floor, BahriaComplex II, M.T. Khan Road,

Karachi.Tel: (021) 111-111-456

Fax: (021) [email protected]

Ground FloorState Life Building

The Mall, Peshawar.Tel: (091) 9213046-47


Bungalow No. 15-AChaman Housing Scheme

Airport Road, Quetta.Tel: (081) 831623, 831702


May, 2007

DISCLAIMER

The purpose and scope of this information memorandum is to introduce the subject matter

and provide a general idea and information on the said area. All the material included in

this document is based on data/information gathered from various sources and is based on

certain assumptions. Although, due care and diligence has been taken to compile this

document, the contained information may vary due to any change in any of the concerned

factors, and the actual results may differ substantially from the presented information.

SMEDA does not assume any liability for any financial or other loss resulting from this

memorandum in consequence of undertaking this activity. Therefore, the content of this

memorandum should not be relied upon for making any decision, investment or otherwise.

The prospective user of this memorandum is encouraged to carry out his/her own due

diligence and gather any information he/she considers necessary for making an informed

decision.

The contents of the information memorandum do not bind SMEDA in any legal or other

form.

DOCUMENT CONTROL

Document No. PREF-70

Revision 2

Prepared by SMEDA-Punjab

Approved by GM Punjab

Issue Date January, 2004

Revision Date May, 2007

Pre-feasibility Study Wooden Furniture Manufacturing Unit

PREF-70/May, 2007/2

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1 Introduction to SMEDA ......................................................................................................52 Purpose of the Document.....................................................................................................53 Crucial Factors & Steps in Decision Making for Investment ................................................54 PROJECT PROFILE...........................................................................................................6

4.1 Project Brief ................................................................................................................64.2 Opportunity Rationale..................................................................................................64.3 Market Entry Timing .................................................................................................114.4 Proposed Business Legal Status .................................................................................114.5 Project Capacity and Rationale ..................................................................................114.6 Project Investment .....................................................................................................114.7 Proposed Product Mix ...............................................................................................114.8 Recommended Project Parameters .............................................................................114.9 Proposed Location .....................................................................................................124.10 Key Success Factors/Practical Tips for Success .........................................................12

5 SWOT Analysis ................................................................................................................125.1 Strengths....................................................................................................................125.2 Weaknesses ...............................................................................................................135.3 Opportunities .............................................................................................................135.4 Threats.......................................................................................................................13

6 CURRENT INDUSTRY STRUCTURE............................................................................136.1 Lahore .......................................................................................................................136.2 Chiniot.......................................................................................................................146.3 Gujrat ........................................................................................................................146.4 Karachi ......................................................................................................................14

7 MARKET INFORMATION..............................................................................................157.1 Domestic Market .......................................................................................................15

7.1.1 Target Customers ...............................................................................................158 Production.........................................................................................................................16

8.1 Raw Material Requirement ........................................................................................168.2 Production Process Flow............................................................................................17

8.2.1 Purchase of Wood..............................................................................................178.2.2 Cutting of Wood ................................................................................................178.2.3 Seasoning/Drying of Wood ................................................................................178.2.4 Selection of Design ............................................................................................188.2.5 Cutting into Slices..............................................................................................188.2.6 Molding .............................................................................................................188.2.7 Carving ..............................................................................................................188.2.8 Assembly/Fitting................................................................................................188.2.9 Finishing (Paint/Polishing).................................................................................18

8.3 Product Mix Offered..................................................................................................188.3.1 Superior Quality.................................................................................................188.3.2 Fine Quality .......................................................................................................198.3.3 Normal Quality ..................................................................................................19

8.4 Proposed Production Mix...........................................................................................198.5 Product / Project Standards and Compliance Issues....................................................19

9 Machinery Requirement Details ........................................................................................19


PREF-70/May, 2007/2

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9.1 Technology and Processes .........................................................................................199.2 Technology/Process Options......................................................................................209.3 Merits and Demerits of Particular Technology ...........................................................209.4 Factory Machinery Requirement................................................................................209.5 Supplier of Machinery ...............................................................................................209.6 Factory & Showroom Equipment Requirement ..........................................................219.7 Office Equipment Requirement for Factory & Showroom..........................................219.8 Machine Maintenance................................................................................................22

10 HUMAN RESOURCE REQUIREMENT..........................................................................2211 LAND & BUILDING REQUIREMENT ...........................................................................23

11.1 Land Requirement .....................................................................................................2311.2 Covered Area Requirement for Factory Area .............................................................2311.3 Recommended Mode of Acquisition ..........................................................................2311.4 Rent Cost...................................................................................................................2411.5 Land & Construction Cost of Factory & Showroom...................................................2411.6 Utilities Requirement.................................................................................................2411.7 Suitable Location.......................................................................................................25

12 Project Economics.............................................................................................................2612.1 Project Cost Details ...................................................................................................2612.2 Project Returns ..........................................................................................................2612.3 Project Financing Details ...........................................................................................26

13 FINANCIAL ANALYSIS .................................................................................................2713.1 Projected Income Statement.......................................................................................2713.2 Projected Balance Sheet.............................................................................................2813.3 Projected Cash flow Statement...................................................................................29

14 KEY ASSUMPTIONS ......................................................................................................31


PREF-70/May, 2007/2

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11 IINNTTRROODDUUCCTTIIOONN TTOO SSMMEEDDAA

The Small and Medium Enterprise Development Authority (SMEDA) was established with the objective to provide fresh impetus to the economy through the launch of an aggressive SME support program.

Since its inception in October 1998, SMEDA had adopted a sectoral SME development approach. A few priority sectors were selected on the criterion of SME presence. In depth research was conducted and comprehensive development plans were formulated after identification of impediments and retardants. The all-encompassing sectoral development strategy involved recommending changes in regulatory environment by taking into consideration other important aspects including finance, marketing, technology and human resource development.

SMEDA has so far successfully formulated strategies for sectors including fruits and vegetables, marble and granite, gems and jewelry, marine fisheries, leather and footwear, textiles, surgical instruments, transport and dairy. Whereas the task of SME development at a broader scale still requires more coverage and enhanced reach in terms of SMEDA’s areas of operation.

22 PPUURRPPOOSSEE OOFF TTHHEE DDOOCCUUMMEENNTT

The Objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. The project pre feasibility may form the basis of an important investment decision and in order to serve this objective, the document/study covers various aspects of project concept development, start-up, production, marketing, finance and business management. The document also provides sectoral information, brief on Government policies and international scenario, which have some bearing on the project itself.

This particular pre-feasibility is regarding setting up a “Wooden Furniture Manufacturing Unit”.In meeting the above tasks we have obtained information from industry sources and officials of major wooden furniture manufacturers in Pakistan.

Our report is based on the information obtained by us from industry sources as well as our discussions with businessmen. For Financial Model, since the forecasts/projections relate to the future, actual results are likely to be different because events and circumstances frequently do not occur as expected and the differences may be material.

Whilst due care and attention have been taken in performing the exercise, no liability can be inferred for any inaccuracies or omissions reported from the results thereof. It is essential that our report be read in its entirety with Financial Model in order to fully comprehend the impact of key assumptions on the range of values determined.

33 CCRRUUCCIIAALL FFAACCTTOORRSS && SSTTEEPPSS IINN DDEECCIISSIIOONN MMAAKKIINNGG FFOORRIINNVVEESSTTMMEENNTT

Manufacturing of wooden furniture requires the basic knowledge of wood quality. Wood is the main raw material and the entire finished product depends on quality of wood. The information and technical know how about the quality of wood and use of seasoned (dry) plays a vital role in the manufacturing of good quality furniture.


PREF-70/May, 2007/2

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Moreover, establishment of factory in the vicinity of Lahore, Chiniot or Gujrat gives the added advantage of easy availability of skilled labor.

Strong competition exists in the international and domestic market. Manufacturing of high quality trendy designs and aggressive marketing is essential to get a permanent place in the market.

44 PPRROOJJEECCTT PPRROOFFIILLEE

44..11 PPrroojjeecctt BBrriieeff

The proposed project is for setting up a “Wooden Furniture Manufacturing Unit”. The project will cater to the needs of the domestic market. This project will be capable of integrated manufacturing of wooden furniture starting from cutting of wood to retailing of product to the customer. Auxiliary processes like carving will be met through sub contracting.

44..22 OOppppoorrttuunniittyy RRaattiioonnaallee

The demand for wooden furniture is increasing in the domestic market as well as in the international market due to its traditional appeal and durability despite the introduction of new materials in furniture manufacturing.

Furniture, which is given as dowry, forms the major portion of sales of wooden furniture in Pakistan. As a result, the demand for household furniture increases substantially in winter and spring season due to weddings.

With the rapid increase in the development of new housing schemes, the increased demand of wooden furniture is also anticipated. According to the National Housing Policy 2001, The annual additional requirement is estimated around 570,000 housing units whereas the annual production is estimated around 300,000 housing units resulting in a recurring backlog of 270,000 housing units annually. The household size is 6.6 persons and the occupancy per room is 3.3 persons1. Furthermore, introduction of new schemes by different banks for house and consumer financing have also raised the purchasing power of public.

In the international market, demand for wooden furniture is increasing for its unique style and aristocratic and elegant appearance. The demand of wooden furniture in the International market is increasing gradually at an annual average rate of 4 percent2.

TTaabbllee 44--11 WWooooddeenn FFuurrnniittuurree EExxppoorrtt ffrroomm PPaakkiissttaann ((000000 iinn UUSSDD)) 33

Year 2003 2004 2005 2006World 9,318 9,618 11,816 9,794

Growth 3.22% 22.85% -17.11%

Though till now Pakistan’s share in the international market is not convincing, but its exports of wooden furniture are increasing rapidly due to appealing designs, craftsmanship and quality of wooden furniture manufactured in Pakistan.

1 National Housing Policy 2001. Board of Investment Government of Pakistan.2 Sector Brief – wooden furniture SMEDA.3 UN Comtrade Database, www.comtrade.un.org


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Major trading partner of wooden furniture manufactured in Pakistan are USA, UK, Italy, France, Saudi Arabia, UAE, Germany4 and earning substantial foreign exchange for the country and contributing towards the strengthening of economy.

In 2006 the global exports of wooden furniture was valued at US $ 16.191 billion. The top exporters for wooden furniture in 2006 were China, Germany, Malaysia, Canada, Romania, Denmark and USA. Pakistan share in the furniture exports is around 0.08%5. Following is the table showing the world imports and exports of Office, Bedroom and Wooden Furniture (other then bedroom & office furniture).

TTaabbllee 44--22 WWoorrlldd IImmppoorrttss ooff OOffffiiccee,, BBeeddrroooomm && ootthheerr WWooooddeenn FFuurrnniittuurree66

Trade Value of

Period Office Furniture Bedroom Furniture

Wooden Furniture Total Imports

2006 $1,868,735,641 $5,481,387,013 $11,610,683,900 $18,960,806,554 2005 $2,525,751,393 $7,620,142,432 $19,199,602,383 $29,345,496,208 2004 $2,235,526,134 $6,774,292,777 $17,749,738,497 $26,759,557,408 2003 $2,030,370,356 $5,766,064,708 $15,094,230,277 $22,890,665,341

TTaabbllee 44--33 WWoorrlldd EExxppoorrttss ooff OOffffiiccee,, BBeeddrroooomm && ootthheerr WWooooddeenn FFuurrnniittuurree77

Trade Value of


Wooden Furniture Total Exports

2006 $1,885,689,938 $4,526,525,488 $9,779,588,018 $16,191,803,444 2005 $2,570,088,483 $5,696,688,894 $16,403,094,531 $24,669,871,908 2004 $2,120,947,050 $4,811,203,468 $14,675,348,460 $21,607,498,978 2003 $1,965,001,533 $4,657,667,692 $13,271,691,763 $19,894,360,988

Following are the pie charts showing the world top importers and exporters of Office, Bedroom and other Wooden Furniture for the year-2006.

4 Export by Commodity. EPB Statistics(www.epb.gov.pk)5 UN ComTrade Database, www.comtrade.un.org/db6 UN Comtrade Database, http://comtrade.un.org7 UN Comtrade Database, http://comtrade.un.org


PREF-70/May, 2007/2

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World Top Importers of Office Furniture in Year 2006

Others21%

USA55%

China, Hong Kong SAR

3%

Norway5%

Belgium5%

Canada5% Germany

6%

World Top Exporters of Office Furniture in Year 2006

China22%

Germany13%

Denmark9%

Malaysia6%

USA6%

Canada24%

Others20%

World Top Importers of Bedrom Furniture in Year 2006

China, Hong Kong SAR

1%

USA70%

Ireland1%Austria

3%

Belgium3%

Canada5%

Germany7%

Others10%

World Top Exporters of Bedrom Furniture in Year 2006

Others14%

Denmark12%

Germany12%

Canada7%

Brazil6%

Malaysia6%

China40%

USA3%

World Top Importers of Wooden Furniture other then Bedroom & Office Furniture in Year 2006

Germany13%

Canada5%

Belgium5%

Austria4%

Denmark2%

USA54%

Others17%

World Top Exporters of Wooden Furniture other then Bedroom & Office Furniture in Year 2006

USA5%

China31%

Denmark7%

Romania7%

Canada8%

Malaysia8%

Germany10%

Others24%


PREF-70/May, 2007/2

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In 2006 Pakistan’s exports of wooden furniture was valued at US $ 9.7 million. The top importers for wooden furniture from Pakistan in 2006 were USA, UAE, UK, Canada and China. Pakistan’s share in the furniture exports in 2006 is around 0.08%8. Following is the table showing the Pakistan’s exports and imports of Office, Bedroom and Wooden Furniture (other then bedroom & office furniture).

TTaabbllee 44--44 PPaakkiissttaann’’ss EExxppoorrttss ooff OOffffiiccee,, BBeeddrroooomm && ootthheerr WWooooddeenn FFuurrnniittuurree99

Trade Value of


Wooden Furniture Total Exports

2006 $ 695,652 $ 1,097,462 $ 8,001,299 $ 9,794,413 2005 $ 393,533 $ 995,515 $ 10,427,255 $ 11,816,303 2004 $ 803,267 $ 1,093,633 $ 7,721,480 $ 9,618,380 2003 $ 434,433 $ 192,453 $ 8,691,787 $ 9,318,673

TTaabbllee 44--55 PPaakkiissttaann’’ss IImmppoorrttss ooff OOffffiiccee,, BBeeddrroooomm && ootthheerr WWooooddeenn FFuurrnniittuurree1100

Trade Value of


Wooden Furniture Total Imports

2006 $3,630,481 $1,893,772 $3,993,310 $9,517,563 2005 $3,510,306 $772,475 $2,741,054 $7,023,835 2004 $551,648 $791,117 $1,258,641 $2,601,406 2003 $505,951 $399,661 $697,721 $1,603,333

Following are the pie charts showing the world top importers and exporters of Office, Bedroom and other Wooden Furniture from Pakistan for the year-2006.

Export of Office Furniture from Pakistan in Year 2006

United Arab Emirates

21%USA19%

Lebanon11%

Canada5%

Others14% Italy

30%

Import of Office Furniture from the World to Pakistan in Year 2006


21%

USA19%

Lebanon11%

Canada5%

Others14% Italy

30%

8 UN ComTrade Database, www.comtrade.un.org/db9 UN Comtrade Database, http://comtrade.un.org10 UN Comtrade Database, http://comtrade.un.org


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Export of Bedroom Furniture from Pakistan in Year 2006

Afghanistan31%

Others24%

Malaysia5%


12%

United Kingdom

13%

USA15%

Import of Bedroom Furniture from the World to Pakistan in Year 2006

Others15%

Switzerland27%Netherlands

10%

Singapore10%

USA7%

Germany5% China

26%

Export of Wooden Furniture other than Bedroom & Office Furniture from Pakistan in Year 2006


17%

Germany5% France

6%

Afghanistan7%

United Kingdom

7%

USA13%Others

45%

Import of Wooden Furniture other than Bedroom & Office Furniture from the World to Pakistan in Year 2006

USA11%


7%

United Kingdom5%

Thailand3%

Others22%

China52%

Over the last 10 years this trend has been positive and by the year 2010 it is estimated that the global furniture trade would increase to US $ 42.02 billion. The forecasted figures of the global furniture trade are depicted in the figure below:

However over the years the entry into the furniture global market is becoming more competitive as the market demand has become more subjective to relevant safety and environmental requirements. Some of the factors contributing to the change in international trends include Green furniture, Multi-functionality, Simplicity and neutral colors, Home office, Ready-to-assemble (RTA) and Do-it-yourself (DIY) furniture. Malaysia, Philippines, Indonesia and China

27.7230.15

32.7935.67

38.842.21

45.92

0

10

20

30

40

50

2004* 2005* 2006* 2007* 2008* 2009* 2010*

Total Wooden Furniture trade (US $ BLN)


PREF-70/May, 2007/2

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have already established their brand name on their products being comparatively cheaper and of high quality and are emerging as market players.

Pakistan’s growth in this particular region appears to be independent of the international growth trend and show no correlation with the World’s Wooden Furniture Exports, as the major trading partners of Pakistan do not include any of the major importers of the world in any real value sense. Moreover, Pakistani industry has peculiar issues related to technology, human resource development, lack of formal credit and consequently access to export destinations. Additionally there is a significant presence of SMEs in this sector.

44..33 MMaarrkkeett EEnnttrryy TTiimmiinngg

Though the demand for wooden furniture in domestic market is persistent throughout the year, but it significantly increases during the period of October to March because of the wedding season. The demand for the furniture almost doubles during this period. Hence, the prime time to enter into market is start of August.

44..44 PPrrooppoosseedd BBuussiinneessss LLeeggaall SSttaattuuss

It is recommended that this project should be started as sole proprietorship or partnership as this does not involve heavy investment. Moreover, less complications and costs are involved in forming, administrating and running the sole proprietorship or partnership business. Lower tax rates for this type of business legal status would be an added advantage.

44..55 PPrroojjeecctt CCaappaacciittyy aanndd RRaattiioonnaallee

The proposed project is capable of manufacturing the complete range of wooden furniture and other allied products to meet the demand of domestic market.

Show room will work on 11 hours a day for 300 days, while factory will work on 8 hours shift for 300 days.

44..66 PPrroojjeecctt IInnvveessttmmeenntt

Total cost of project is Rs 10.25 million.

44..77 PPrrooppoosseedd PPrroodduucctt MMiixx

This unit is capable of producing different sort of wooden furniture. As this project involves craftsmanship of human resource, different type of product can be manufactured but for the purpose of this pre-feasibility, the project is assumed to manufacture bed sets, dinning sets, sofa sets, misc. furniture (centre table & end tables for sofa set) and office furniture..

44..88 RReeccoommmmeennddeedd PPrroojjeecctt PPaarraammeetteerrss

Capacity Human Resource Technology/Machinery Location

- 24 Local Major Cities

Project Cost IRR NPV Payback Period Cost of Capital

10,249,390 57% 70,896,02411 3.48 18.5%

11 NPV is high because Showroom is to be build in Year-6 having a capital cost of Rs. 45,493,270 which increases the Project Cost up to Rs. 55,742,661


PREF-70/May, 2007/2

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44..99 PPrrooppoosseedd LLooccaattiioonn

Local Furniture demand is directly related to the population living in a locality. Therefore, the demand for wooden furniture is higher in heavily populated cities of Pakistan like Lahore, Multan, Karachi, Peshawar etc. & developed cities like Rawalpindi, Islamabad.

44..1100 KKeeyy SSuucccceessss FFaaccttoorrss//PPrraaccttiiccaall TTiippss ffoorr SSuucccceessss

1. Proper selection of wood is important for the success of business as wood is the major raw material and it plays an important role in achieving good quality finished product. Properly seasoned (Dry) wood ensures high quality furniture as it minimizes deforming due to dampness in wood.

2. Proper selection of labor is also important as it can improve quality of finished product by better craftsmanship & lower wastage. Hence, specialized labor should be used for the particular design and product, which will give high quality furniture at lower cost.

3. New designs and styles can build brand equity for the business. As there is high competition in the market, to make the project commercially viable, creation of new designs and styles and setting new trends is vital.

4. Reasonable number hiring of permanent labor is important to maintain lower overhead cost, as the business is labor intensive and skilled labor is readily available in the local industry. So, it is important to hire permanent skilled labor according to production requirement. Skilled labor is easily available in the market and additional manufacturing workload can be sub-contracted.

5. The final objective of the business is to sell the final product in the market to get the desired return. The location of show room is very important for success. The showroom should be located in heavily populated or developing cities and its location within the city should be in accordance with the target market of the business.

6. While selecting the location for production, proximity to raw material and availability of skilled labor should be taken into account, as this will reduce cost of production.

55 SSWWOOTT AANNAALLYYSSIISS

55..11 SSttrreennggtthhss

Skilled Labor Force

Wood seasoning facility centre is available

Suppliers of raw material are available

Local tools available

Strong historical background of craftsmen

Many big cities are link-up with this cluster including Lahore, Islamabad, Sargohha, Jhang, Faisalabad and Gujranwala etc.


PREF-70/May, 2007/2

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55..22 WWeeaakknneesssseess

High cost of production due to high rate of raw material

Lack of educated, certified and professionally trained work force

Unavailability of ready to use raw material

No Designing and R&D facilities available

Unawareness of Social compliance and Environmental issues

Unawareness of any quality control and standards

Unavailability of ready-to use seasoned wood

Constraint of Technology

Fluctuating prices of the raw material.

55..33 OOppppoorrttuunniittiieess

Technical up gradation

Networking & linkages of cluster players/stakeholders

Development of consortiums with specified objectives

55..44 TThhrreeaattss

Migration of trained work forces from the sector

Raw material cost increase (shortage in the stock of Sheesham wood at any stage because no further plantation as required)

Import of low price articles from China and India

Instable political set up of the country.

66 CCUURRRREENNTT IINNDDUUSSTTRRYY SSTTRRUUCCTTUURREE

66..11 LLaahhoorree

The Lahore cluster is basically based on the traders of wooden furniture. There are more than 1500 retail shops in Lahore in different locations which basically trade in MDF furniture, office furniture, and bedroom and living room furniture. However in the last decade this market has diversified its product range to all kinds of furniture articles. These traders usually purchase furniture in semi-finished form from Chiniot and polish and upholster it in their workshops. There profit margins are quite high as all the value addition is done in Lahore according to the requirement of the customers.

However, there are around 100-200 small cottage sized workshops in Lahore which are engaged in wooden furniture manufacturing. Majority of these manufacturing facilities use low-tech machinery which are either locally assembled or are second hand imported machines. There is only a hand full of furniture manufacturers which have established a production line based on


PREF-70/May, 2007/2

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new modern machinery and seasoning kiln facilities. On average each manufacturing facilities employs 5-20 workers depending on its scope of work.

At present there are around five large clusters of furniture markets within Lahore i.e. Fortress Stadium, Gulberg, AIlama Iqbal Town, Ferozepur Road and Multan Road. These markets mostly cater to the needs of the domestic market. Because of the poor finishing quality and inferior packaging the exports are restricted.

66..22 CChhiinniioott

Although wooden furniture industry Chiniot is approximately 150-200 years old, but still exists on a cottage sized scale. There are almost 3000-4000 manufacturing units in Chiniot, which use primitive technology and techniques for manufacturing. Around 40,000 people are directly employed by this industry. The stakeholders can be categorized into manufacturers, craftsmen, traders, timber merchants, exporters, transporters and financial institutions. Declining number of skilled craftsmen comprise the majority of the industry’s workforce. The semi-finished items (Kora) are sold to all major cities throughout Pakistan. Direct export from this industry/cluster is negligible.

Chiniot is a major cluster engaged in the manufacturing of handmade wooden carved furniture. The demand for this kind of furniture is increasing in the international market. The basic raw material used for hand carved furniture is Sheesham wood, which is under an attack of an unknown kind of disease. This has resulted in a shortage of raw material and increase in its price.

66..33 GGuujjrraatt

There are about 300 units (including shops) in Gujrat associated with this cluster. The approximate sector breakdown shows that majority of the sector is based on 225 -250 micro units, 40-50 small units and 5 medium units. There are approximately 7,000-8,000 people directly employed in this industry. Gujrat is well known for its top quality furniture all over Pakistan. A few units are exporting furniture to different countries including, UK, US, Saudi Arabia, Middle East etc. The total export of Furniture from Gujrat is about US$ 4.5 million. (Directorate of industries), however due to limited production capacity these firms are not able to fulfill the large export orders and hence can not compete vigorously in international markets. China and India are the major competitors. Their prices are less and quality is better.

66..44 KKaarraacchhii

Furniture items produced in Sindh comprise of chairs, tables, musical instruments and other items like doors and windows. However, in the last decade units have started diversifying their products into office and kid’s furniture which is designed more trendy designs.

At present there are two main clusters of small furniture manufacturers in Karachi, i.e. Manzoor Colony and Akhtar Colony. There are some 1200 – 1300 units in these clusters that have employed almost 6000 – 7500 people. One small unit covers an area of 720 to 1000 square feet. The machinery used includes four basic tools/machines for furniture making. The average wood requirement of each of these units is around 150 -200 cubic feet per month. Wood is purchased by unit owners and seasoned naturally. This market mostly caters to the needs of the domestic


PREF-70/May, 2007/2

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market and because of the poor finishing/polishing quality the furniture manufactured here is not exported.

Two smaller clusters in Patelpara and Liaqatabad are also engaged in the manufacturing of low quality (MDF and Keekar wood) furniture. Almost three hundreds small/micro units are operating in these areas.

Ayshamanzil, Arambagh, Nursery, Liaquatabad and Manzoor Colony are some of the major furniture retail markets in Karachi selling hardwood, steel, MDF furniture. The prices of raw material fluctuate tremendously and quality raw material is scarce. Seasoned quality rosewood trades at around Rs. 650-850 per cubic ft. American Oakwood and Burma teakwood can be purchased at a price of Rs. 2400 and Rs. 3200 respectively in this market. H.D.F. from this market is currently being used in making door frames. Another issue this cluster is facing is the declining number of skilled craftsmen.

Lacquer work is another powerful traditional craft of Sindh. These items have grown popular over the time period. However furniture items are simple in design. Articles such as table lamps, chairs and sofa sets produced by Lacquer industries of Hala in Hyderabad district and Kashmir in the Jacobabad district, are very popular.

The above clusters of furniture are rich for the availability of raw wood and skilled labor. Moreover, these areas are also in close proximity from retail markets.

Majority of the wooden furniture-manufacturing units are classified as small and medium sized having small and specified production. Most of the manufacturers do not have the complete manufacturing facilities to manufacture the complete range of products. The orders are sub contracted to independent workshops for manufacturing. This reduces the capital cost of the manufacturer but increases the quality control cost.

77 MMAARRKKEETT IINNFFOORRMMAATTIIOONN

77..11 DDoommeessttiicc MMaarrkkeett

In local market the target market comprises of the following segments:

77..11..11 TTaarrggeett CCuussttoommeerrss

In local market, the requirement for wooden furniture can be categorized into four namely:

1. For newly built house;2. For dowry;3. For renovation;4. For Institutional buyer.5. For offices (public & private sector)

The majority of customers in the domestic market belong to first and second category. These customers require furniture for their newly built houses and usually buy range of products like bed sets, dining sets and sofa sets with other decorative material for their entire house.

In Pakistani society, Furniture is given as dowry. Therefore, its demand increases in the spring and winter season due to weddings. Basic requirement of these customers is bed set of new designs and styles. These types of customers also buy sofa set or dining set along with bed set.


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16

Initially entrepreneur should target these customers to establish the business and to increase the customer base. These potential customers can play a dominating role in the successful break through of the business.

With the flourishing of tourism and hotel industry, considerable scope emerges for wooden furniture in this sector. Large orders can be secured to supply wooden furniture to these hotels and resorts.

88 PPRROODDUUCCTTIIOONN

88..11 RRaaww MMaatteerriiaall RReeqquuiirreemmeenntt

The basic raw materials for manufacturing of furniture is wood. Wood obtained from the forest is of prime quality. Therefore, it is recommended to use dry wood from the forests for manufacturing of quality wooden furniture. Forest wood is easily available in the market. Furniture manufacturing units in Pakistan mostly use sheesham wood. Other types of woods used in manufacturing furniture are:

Teak wood Walnut wood Keekar wood

Besides this, substitute material like lasani, winboard are also used in the manufacturing of furniture.

Raw material wood is easily available from the forest reserves like Changa manga, Pakhowal, Kundian, Chicha watni, Bahawalpur and other natural forests. Changa manga forest is the major source of wood for furniture.

Other material used in the furniture manufacturing process are nails, screws, glue/solution, spirit, lakh, thiner, lacquer, sealer, hardener, etc. These raw materials are easily available in the market.


PREF-70/May, 2007/2

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88..22 PPrroodduuccttiioonn PPrroocceessss FFllooww

FFiigguurree 88--11 PPrroodduuccttiioonn PPrroocceessss ffllooww ((WWooooddeenn FFuurrnniittuurree MMaannuuffaaccttuurriinngg UUnniitt))

88..22..11 PPuurrcchhaassee ooff WWoooodd

Wood is purchased after Quality inspection. In determining quality following points are considered:

Age of Wood Dryness of wood Its surface, which should be plane without holes etc

88..22..22 CCuuttttiinngg ooff WWoooodd

When purchased, the wood of natural form, this wood after purchase is cut into different sizes of blocks and slabs.

88..22..33 SSeeaassoonniinngg//DDrryyiinngg ooff WWoooodd

Season wood is higher in price than the fresh wood, so if the wood purchased is not properly dried wood than these blocks/slices are seasoned through different processes, namely:

Condensation Boiler System Vacuum System Seasoning through putting the wood slices under normal environmental temperature for

considerable duration.

Purchase of Wood (Timber

Market)

Wood Cutting at Trolley (Big

Saw)

Wood comes in Factory

Wood Seasoning

Furniture Designing on

CAD

Wood comes to Machine Man

Wood comes at Shaper Machine

Carpenter shape the wood into

Furniture

Furniture comes to Spindle /

Molding Machine

Furniture comes to Carver for

Carving

Carpenter assembles the

Furniture

Furniture comes to Inspection

before finishing

Furniture goes to Store or for Polishing


PREF-70/May, 2007/2

18

88..22..44 SSeelleeccttiioonn ooff DDeessiiggnn

Before start of manufacturing of any furniture product a desired design is selected. Selection of elegant design is important to ensure attractive finished product.

88..22..55 CCuuttttiinngg iinnttoo SSlliicceess

The seasoned wood blocks are cut into desired shape and slices according to the requirement of design.

88..22..66 MMoollddiinngg

The slices of wood are molded into the desired shape according to the design.

88..22..77 CCaarrvviinngg

Carving means different elegant pattern carved in the wood. Quality of carving depends on the skills of the labor.

88..22..88 AAsssseemmbbllyy//FFiittttiinngg

Once the different pieces are carved & molded than these parts/pieces are assembled or fixed together to give the shape to the final product.

88..22..99 FFiinniisshhiinngg ((PPaaiinntt//PPoolliisshhiinngg))

Assembled product is grind to make the surface smooth. Once the surface is smooth, finishing material is applied to make the surface ready for paint or polish. After the base is prepared final finishing is applied depending on requirement in term of paint/polish. Upholstery of fabric is carried out according requirement of design.

88..33 PPrroodduucctt MMiixx OOffffeerreedd

For the purpose of this pre feasibility, it is assumed that project will offer the following products: Bed SetWhich includes Bed, side tables, dressing table, dressing stool. Sofa SetWhich includes standard sofa set of three seats, two seats and one seat. Dining SetWhich includes Glass top dining table with eight chairs. Misc. Furniture SetA part of Sofa Set but not sold along with it. It includes glass top centre table along with two end tables for the Sofa Set. Office Furniture SetWhich includes an office table along with side table for computer with one executive and two visitors chairs.

88..33..11 SSuuppeerriioorr QQuuaalliittyy

Superior quality bed set, dining set, misc. furniture set and office furniture set are made of supreme quality pure wood furniture with elegant hand carved design. Superior quality has extra carving with complex and elegant design and extra fine polishing and finishing. While Superior quality sofa set is manufacturer from best available upholstery material with elegant design & extra comfort.


PREF-70/May, 2007/2

19

88..33..22 FFiinnee QQuuaalliittyy

Fine quality bed set, dining set, misc. furniture set and office furniture are made of fine quality pure wood. Simple but appealing hand carving is done with fine quality polishing. While fine quality sofa set has a quality upholstery material & elegant design.

88..33..33 NNoorrmmaall QQuuaalliittyy

Normal quality bed set, dining set, misc. furniture set and office furniture are made of a mixture of pure wood and substitute material (Lasani, winboard, etc). Lasani gives fine and even surface for finishing and paint Smooth surface gives eye-catching effect. The finish of bed set & dinning set are assumed to be of paint due to the extra fine surface. The normal quality sofa set a simple design sofa set with good quality upholstery material.

88..44 PPrrooppoosseedd PPrroodduuccttiioonn MMiixx

The details of proposed production mix offered by the project is given in below tables:

TTaabbllee 88--11 PPrrooppoosseedd PPrroodduuccttiioonn MMiixx

Description PercentageBed Set 40%Dinning Set 10%Sofa Set 30%Misc. Furniture 5%Office Furniture 15%Total 100%

TTaabbllee 88--22 PPrrooppoosseedd PPrroodduuccttiioonn MMiixx DDeettaaiillss

Bed Set Dinning Set Sofa Set Misc. Furniture Office FurnitureSuperior 20% 20% 20% 20% 20%Fine 30% 30% 30% 30% 30%Normal 50% 50% 50% 50% 50%Total 100% 100% 100% 100% 100%

88..55 PPrroodduucctt // PPrroojjeecctt SSttaannddaarrddss aanndd CCoommpplliiaannccee IIssssuueess

Manufacturing of wooden furniture involves skilled labor. Issues like use of minor labor, deviation from labor laws can influence the business significantly. To avoid issues like minor labor, social security and employee’s old age benefit schemes, it is recommended that minimum number of permanent skilled labor should employ and all other manufacturing should be outsourced on contractual basis to avoid such issues.

99 MMAACCHHIINNEERRYY RREEQQUUIIRREEMMEENNTT DDEETTAAIILLSS

99..11 TTeecchhnnoollooggyy aanndd PPrroocceesssseess

In Pakistan, manufacturing of wooden furniture is mostly done by hands. Hence, skilled manpower is the essential element in the manufacturing process of furniture.


PREF-70/May, 2007/2

20

99..22 TTeecchhnnoollooggyy//PPrroocceessss OOppttiioonnss

Imported and locally manufactured machinery is available in the local market. As this project is labor intensive, not much based on technical machinery and technological advancement, therefore technology has less impact on the business. Imported machinery and plants are available for seasoning, cutting, molding, finishing, etc.

99..33 MMeerriittss aanndd DDeemmeerriittss ooff PPaarrttiiccuullaarr TTeecchhnnoollooggyy

Imported machinery can be used in the manufacturing process but this requires high capital investment & high running. Moreover, Skilled labor required to operate these machines is not easily available in the market.

As skilled labor and craftsmanship plays an important role in manufacturing of wooden furniture in Pakistan, technological advancement doesn’t play an important role in manufacturing process.

99..44 FFaaccttoorryy MMaacchhiinneerryy RReeqquuiirreemmeenntt

The details of machinery requirement for the project is given below:

TTaabbllee 99--11 FFaaccttoorryy MMaacchhiinneerryy DDeettaaiillss1122

Machinery Description Unit Unit Price Total Cost Saw 18" 1 30,000 30,000 Saw 27" 1 45,000 45,000 Saw 30" 1 55,000 55,000 Cutter sliding 1 12,000 12,000 Cutter round 1 10,000 10,000 Guage 14" 1 42,500 42,500 Gauge 18" 1 55,000 55,000 Planer / Shaper 12" 2 22,000 44,000 Spindle Moulder Machine 2 36,500 73,000 Chapaka 2 10,000 20,000 Hand Chapaka (jug saw) 3 7,000 21,000 Grinder 2 6,000 12,000 Drill machine 12 1,500 18,000 Compressor 2 8,000 16,000 Miscellaneous Tools (Hand Tools, Paint Gun etc.) 1 20,000 20,000 Installation costs for machines 1 50,000 50,000

Total Machinery and Equipment 523,500

99..55 SSuupppplliieerr ooff MMaacchhiinneerryy

Some of suppliers of furniture manufacturing machinery are:

Asim Engineering Works, near National Bank, Gondalanwala Road, Gujranwala. M/s Wazir Ali Industries, Badami Bagh, Lahore;

12 Asim Engineering Works. E-mail: [email protected], Cell #: 0300-6429509


PREF-70/May, 2007/2

21

99..66 FFaaccttoorryy && SShhoowwrroooomm EEqquuiippmmeenntt RReeqquuiirreemmeenntt

TTaabbllee 99--22 FFuurrnniittuurree && EEqquuiippmmeenntt DDeettaaiillss ffoorr FFaaccttoorryy

Description Required Cost/Unit (Rs) Total Cost (Rs)Office Table Set for CAD Operator 1 10,000 10,000Visitors Chairs 4 1,500 6,000Table & Chair set for admin, store & production

3 8,000 24,000

Fire Extinguishers 1 4,500 4,500Total Furniture & Fixtures 44,500

TTaabbllee 99--33 SShhoowwrroooomm FFuurrnniittuurree && EEqquuiippmmeenntt DDeettaaiillss

Description Required Cost/Unit (Rs) Total Cost (Rs)Air conditioner 4 30,000 120,000 Office Table Set for CEO 1 25,000 25,000 Office Table Set for

Accountant1 10,000 10,000

Sofa Set 1 25,000 25,000 Executive Chair for Staff 2 3,000 6,000 Visitors Chairs 2 3,000 6,000 Fire Extinguishers 1 4,500 4,500

Total Furniture & Fixtures 196,500

99..77 OOffffiiccee EEqquuiippmmeenntt RReeqquuiirreemmeenntt ffoorr FFaaccttoorryy && SShhoowwrroooomm

TTaabbllee 99--44 OOffffiiccee EEqquuiippmmeenntt DDeettaaiillss ffoorr FFaaccttoorryy

Description Required Cost/Unit (Rs) Total Cost (Rs)Computers 1 25,000 25,000 Printers 1 5,000 5,000 UPS 1 5,000 5,000 Telephone Sets 2 800 1,600 Fax Machine 1 10,000 10,000 Total Office Equipment 46,600

TTaabbllee 99--55 OOffffiiccee EEqquuiippmmeenntt DDeettaaiillss ffoorr SShhoowwrroooomm

Description Required Cost/Unit (Rs) Total Cost (Rs)Computers 2 25,000 50,000 Printers 1 5,000 5,000 UPS 2 5,000 10,000 Telephone Sets 2 800 1,600 Fax Machine 1 10,000 10,000 Total Office Equipment 76,600


PREF-70/May, 2007/2

22

99..88 MMaacchhiinnee MMaaiinntteennaannccee

As technically advanced machines are not required in the manufacturing process, therefore, machine maintenance cost is low. The major maintenance cost is Oiling and Greasing of machines.

1100 HHUUMMAANN RREESSOOUURRCCEE RREEQQUUIIRREEMMEENNTT

The labor required for manufacturing process is easily available on daily wages, per unit basis and permanently employed. It is recommended that selective highly skilled labor should be employed permanently and other labor should be hired as and when required. Following permanent human resource is required both at factory and show room.

TTaabbllee 1100--11 FFaaccttoorryy SSttaaffff RReeqquuiirreemmeenntt DDeettaaiillss

Description No. Monthly Salary(Rs)

Total Annual Salary (Rs)

Production supervisor 1 15,000 30,000 Assistant production supervisor 0 10,000 - Carpenter 10 8,000 160,000 Machine man 1 10,000 20,000 Polish man 3 8,500 51,000 Carving 2 8,000 32,000 Helpers 2 4,000 16,000 Factory admin officer 1 12,000 24,000 Draftsman / CAD Operator 1 8,000 16,000Purchaser/Store Officer 1 12,000 24,000 Gate Keeper 2 4,000 16,000

Total Production Staff 24 389,000

Sub contracting minimized the implication of labor laws and increases the productivity. However, strategy can also result in increase of supervision cost. There will be one production supervisor sufficient for a labor of 30 but with the increase in labor one assistant to the production supervisor would be added and one machine man would be added to the production crew in order to run the production efficiently. For this project it is assumed that following staff would be added each year in order to increase the production uniformly each year.

TTaabbllee 1100--22 FFaaccttoorryy ssttaaffff aaddddiittiioonn eeaacchh yyeeaarr

Description No.Carpenter 3Polish man 1Carving 1Helpers 2

Total Production Staff Added 7


PREF-70/May, 2007/2

23

1111 LLAANNDD && BBUUIILLDDIINNGG RREEQQUUIIRREEMMEENNTT

1111..11 LLaanndd RReeqquuiirreemmeenntt

The land sufficient for setting up the proposed wooden furniture manufacturing unit is approximately 3 kanal13 (13,500 sq. ft) production area (Factory area), while the covered area of furniture depends on area available & financial resources available. For the proposed project 1 kanal showroom area is assumed which will not be on lease. For such kind of business it is recommended to have own showroom which will be opened in year-6 when the business is enough liquid.

1111..22 CCoovveerreedd AArreeaa RReeqquuiirreemmeenntt ffoorr FFaaccttoorryy AArreeaa

TTaabbllee 1111--11 FFaaccttoorryy CCoovveerreedd AArreeaa DDeettaaiillss

Description Area (Sq. ft)Factory Main Hall 4,000Carving Room 1,500Polish Room 1,500Store for un-finished products 1,000Store for finished product 2,300Office for factory admin officer & CAD operator

500

Open Space 2,700Total 13,500

TTaabbllee 1111--22 SShhoowwrroooomm CCoovveerreedd AArreeaa DDeettaaiillss1144

Description Area (Sq. ft)Owners Office 120Showroom Display 3,030Open area for Car Parking 1,350Total 4,500

1111..33 RReeccoommmmeennddeedd MMooddee ooff AAccqquuiissiittiioonn

It is recommended to start the proposed business in own place as this will ensure the savings from the high rentals. Secondly, the machinery used in the project can easily be purchased locally. It can be seen from the table below that the rent cost is high and after establishing the showroom at a certain place there is no surety of ownership. That’s why it is assumed that showroom would be opened and operated at own premises.

13 Land assumed for the project is 3 kanal, because with the increase in labor each year it would be recommended not to have the factory less than that.14 Showroom to be built in Year-6.


PREF-70/May, 2007/2

24

1111..44 RReenntt CCoosstt

TTaabbllee 1111--33 RReenntt EExxppeennssee DDeettaaiillss

Description Monthly Rent (Rs) Total Annual Rent (Rs)Factory Area 60,000 720,000Showroom 200,000 2,400,000Total 3,120,000

1111..55 LLaanndd && CCoonnssttrruuccttiioonn CCoosstt ooff FFaaccttoorryy && SShhoowwrroooomm1155

TTaabbllee 1111--44 LLaanndd CCoosstt DDeettaaiillss ooff FFaaccttoorryy && SShhoowwrroooomm

Description Land in Kanals Cost per Kanal (Rs) Total Cost (Rs)Factory Area 03 1,200,000 3,600,000Showroom 01 40,000,000 40,000,000Total 43,600,000

TTaabbllee 1111--55 CCoonnssttrruuccttiioonn CCoosstt DDeettaaiillss ooff FFaaccttoorryy && SShhoowwrroooomm

Description Covered Area in Sq. ft.

Construction Cost per Sq. ft. (Rs)

Total Construction Cost (Rs)

Factory Area 10,800 425 4,590,000Showroom 3,150 1,587 5,000,000Total 9,590,000

TTaabbllee 1111--66 SShhoowwrroooomm RReennoovvaattiioonn//DDééccoorr EExxppeennssee DDeettaaiillss1166

Description No. Cost/Unit Total Amount (Rs)Display Glasses 1 50,000 50,000 Fancy lights 60 300 18,000 Sign Boards (sqft) 60 350 21,000 Fall Ceiling 3,150 50 157,500 Carpeting 3,150 30 94,500 Paint 7,000 20 140,000 Other Interior Designing Cost 3,150 100 315,000

Total Cost 796,000

1111..66 UUttiilliittiieess RReeqquuiirreemmeenntt

For smooth operations of the proposed project following utility are required:

Electricity Telephone Water

15 Showroom to be build in Year-616 Showroom to be build in Year-6


PREF-70/May, 2007/2

25

1111..77 SSuuiittaabbllee LLooccaattiioonn

The major clusters of hand carved wooden furniture in Pakistan are Chiniot & Gujrat, which are renowned for its craftsmanship. Skilled labour required for manufacturing of wooden furniture is sufficiently and easily available in other cities like Peshawar & Lahore.

It is preferable to establish project and show room in vicinity of Lahore. Lahore is center of fashion and trends and a major market providing range of designs and styles and also fulfilling the demand of near off cities like Gujranwala, Kasur, Okara, and Sahiwal. As mentioned before, the retail outlet for the project can also be established in other major cities of the country i.e. Karachi, Islamabad, Multan & Rawalpindi.


PREF-70/May, 2007/2

26

1122 PPRROOJJEECCTT EECCOONNOOMMIICCSS

1122..11 PPrroojjeecctt CCoosstt DDeettaaiillss

Description Amount (Rs.) Land for Factory 3,600,000 Building/Infrastructure for Factory 4,590,000Machinery & Equipment 523,500 Office Equipment, Furniture for Factory 91,100 Pre-operating Costs 248,790Total Capital Expenditure 9,053,390

Raw Material Inventory 696,000Cash 500,000 Total Working Capital 1,196,000

Total Project Cost 10,249,390

1122..22 PPrroojjeecctt RReettuurrnnss

NPV @ 18% 70,896,02417

IRR 57%Payback Period (Years) 3.48

1122..33 PPrroojjeecctt FFiinnaanncciinngg DDeettaaiillss

Description Percentage Amount in (Rs)Equity 50% 5,124,695Debt 50% 5,124,695Total 100% 10,249,390

17 NPV is high because Showroom is to be build in Year-6 having a capital cost of Rs. 45,493,270 which increases the Project Cost up to Rs. 55,742,661


PREF-70/January, 2004/1

27

1133 FFIINNAANNCCIIAALL AANNAALLYYSSIISS

1133..11 PPrroojjeecctteedd IInnccoommee SSttaatteemmeenntt

Calculations SMEDAProjected Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Revenue 11,124,345 15,202,165 21,065,464 29,989,600 42,608,007 64,832,785 89,990,120 116,454,790 151,622,786 200,489,478

Cost of salesProcurement Cost 5,726,256 7,027,380 8,724,549 10,970,504 13,984,599 18,083,300 23,724,913 31,575,164 42,603,463 58,224,198 Direct Labor (Production Staff) 2,334,000 3,149,400 4,046,340 5,272,974 6,382,271 7,602,499 8,944,748 10,541,223 12,177,346 13,977,080 Direct Electricity 180,000 198,000 261,360 319,440 351,384 483,153 531,468 701,538 771,692 990,338

Total cost of sales 8,240,256 10,374,780 13,032,249 16,562,918 20,718,254 26,168,952 33,201,129 42,817,926 55,552,501 73,191,616 Gross Profit 2,884,089 4,827,385 8,033,215 13,426,681 21,889,753 38,663,834 56,788,991 73,636,864 96,070,285 127,297,862

General administration & selling expensesAdministration expense 480,000 528,000 580,800 638,880 702,768 1,546,090 1,700,699 1,870,768 2,057,845 2,263,630 Electricity expense 292,320 321,552 353,707 389,078 427,986 470,784 517,863 569,649 626,614 689,275 Communications expense (phone, fax, mail, internet, etc.) 24,000 26,400 29,040 31,944 35,138 77,304 85,035 93,538 102,892 113,181 Transportation cost 171,788 210,821 261,736 329,115 419,538 542,499 711,747 947,255 1,278,104 1,746,726 Office expenses (stationary, entertainment, janitorial services, etc.) 2,400 2,640 2,904 3,194 3,514 7,730 8,503 9,354 10,289 11,318 Marketing expense 55,622 76,011 105,327 149,948 213,040 324,164 449,951 582,274 758,114 1,002,447 Insurance expense - - - - - - - - - - Professional fees (legal, audit, consultants, etc.) - - - - - - - - - - Depreciation expense 290,960 290,960 290,960 290,960 290,960 290,960 608,935 608,935 608,935 608,935 Amortization of pre-operating costs 24,879 24,879 24,879 24,879 24,879 24,879 24,879 24,879 24,879 24,879 Amortization of legal, licensing, and training costs - - - - - - - - - -

Subtotal 1,341,968 1,481,263 1,649,354 1,857,999 2,117,823 3,284,411 4,107,612 4,706,653 5,467,673 6,460,392 Operating Income 1,542,121 3,346,122 6,383,861 11,568,683 19,771,930 35,379,423 52,681,379 68,930,212 90,602,612 120,837,470

Other income (interest on cash)Earnings Before Interest & Taxes 1,542,121 3,346,122 6,383,861 11,568,683 19,771,930 35,379,423 52,681,379 68,930,212 90,602,612 120,837,470

Interest expense on long term debt (Debt facility : Bank 1) 756,010 664,932 512,982 338,616 138,528 4,026,782 4,026,782 3,541,664 2,732,326 1,803,592 Subtotal 756,010 664,932 512,982 338,616 138,528 4,026,782 4,026,782 3,541,664 2,732,326 1,803,592 Earnings Before Tax 786,111 2,681,190 5,870,879 11,230,066 19,633,403 31,352,641 48,654,597 65,388,547 87,870,286 119,033,878

Taxable earnings for the year 786,111 2,681,190 5,870,879 11,230,066 19,633,403 31,352,641 48,654,597 65,388,547 87,870,286 119,033,878 Tax 196,528 670,298 1,467,720 2,807,517 4,908,351 7,838,160 12,163,649 16,347,137 21,967,572 29,758,470 NET PROFIT/(LOSS) AFTER TAX 589,583 2,010,893 4,403,159 8,422,550 14,725,052 23,514,480 36,490,948 49,041,410 65,902,715 89,275,409

Balance brought forward 589,583 2,600,475 7,003,635 15,426,185 30,151,236 53,665,717 90,156,665 139,198,075 205,100,790 Total profit available for appropriation 589,583 2,600,475 7,003,635 15,426,185 30,151,236 53,665,717 90,156,665 139,198,075 205,100,790 294,376,198 Dividend 0% - - - - - - - - - Balance carried forward 589,583 2,600,475 7,003,635 15,426,185 30,151,236 53,665,717 90,156,665 139,198,075 205,100,790 294,376,198



28

1133..22 PPrroojjeecctteedd BBaallaannccee SShheeeett

Calculations SMEDAProjected Balance Sheet

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Current assetsCash & Bank 500,000 21,255 138,115 2,483,105 8,123,824 19,115,896 39,128,280 70,781,390 107,782,379 158,094,033 253,672,617 Accounts receivable 556,217 1,316,325 1,813,381 2,552,753 3,629,880 5,372,040 7,741,145 10,322,246 13,403,879 17,605,613 Finished goods inventory 686,688 864,565 1,086,021 1,380,243 1,726,521 2,180,746 2,766,761 3,568,160 4,629,375 6,099,301 Equipment spare part inventory - - - - - - - - - - - Raw material inventory 696,000 952,632 1,322,864 1,862,931 2,658,462 3,840,203 5,608,239 8,269,311 12,294,340 18,407,119 -

Total Current Assets 1,196,000 2,216,792 3,641,870 7,245,439 14,715,283 28,312,501 52,289,305 89,558,607 133,967,124 194,534,405 277,377,531

Fixed assetsLand 3,600,000 3,600,000 3,600,000 3,600,000 3,600,000 3,600,000 43,802,869 43,802,869 43,802,869 43,802,869 43,802,869 Building/Infrastructure 4,590,000 4,360,500 4,131,000 3,901,500 3,672,000 3,442,500 7,434,301 6,993,736 6,553,171 6,112,606 5,672,041 Machinery & equipment 523,500 471,150 418,800 366,450 314,100 261,750 209,400 157,050 104,700 52,350 - Furniture & fixtures 44,500 40,050 35,600 31,150 26,700 22,250 1,010,300 906,600 802,900 699,200 595,500 Office vehicles - - - - - - - - - - - Office equipment 46,600 41,940 37,280 32,620 27,960 23,300 95,240 82,920 70,600 58,280 45,960

Total Fixed Assets 8,804,600 8,513,640 8,222,680 7,931,720 7,640,760 7,349,800 52,552,110 51,943,175 51,334,240 50,725,305 50,116,370

Intangible assetsPre-operation costs 248,791 223,911 199,032 174,153 149,274 124,395 99,516 74,637 49,758 24,879 0 Training costs - - - - - - - - - - -

Total Intangible Assets 248,791 223,911 199,032 174,153 149,274 124,395 99,516 74,637 49,758 24,879 0 TOTAL ASSETS 10,249,391 10,954,344 12,063,582 15,351,312 22,505,317 35,786,696 104,940,932 141,576,420 185,351,123 245,284,590 327,493,901

Current liabilitiesAccounts payable 115,370 243,723 310,250 398,027 510,765 657,249 854,556 1,126,798 1,505,839 1,716,764

Total Current Liabilities - 115,370 243,723 310,250 398,027 510,765 657,249 854,556 1,126,798 1,505,839 1,716,764

Other liabilitiesDeferred tax - - - - - - (52,766) (105,533) (158,299) (211,065) Long term debt (Debt facility : Bank 1) 5,124,695 5,124,695 4,094,689 2,912,733 1,556,411 - 27,295,962 27,295,962 21,809,779 15,514,257 8,290,000

Total Long Term Liabilities 5,124,695 5,124,695 4,094,689 2,912,733 1,556,411 - 27,295,962 27,243,196 21,704,246 15,355,958 8,078,935

Shareholders' equityPaid-up capital 5,124,695 5,124,695 5,124,695 5,124,695 5,124,695 5,124,695 23,322,003 23,322,003 23,322,003 23,322,003 23,322,003 Retained earnings 589,583 2,600,475 7,003,635 15,426,185 30,151,236 53,665,717 90,156,665 139,198,075 205,100,790 294,376,198

Total Equity 5,124,695 5,714,278 7,725,171 12,128,330 20,550,880 35,275,932 76,987,720 113,478,668 162,520,079 228,422,793 317,698,202 TOTAL CAPITAL AND LIABILITIES 10,249,391 10,954,344 12,063,582 15,351,312 22,505,317 35,786,696 104,940,932 141,576,420 185,351,123 245,284,590 327,493,901

Liabilities & Shareholders' Equity

Assets



29

1133..33 PPrroojjeecctteedd CCaasshh ffllooww SSttaatteemmeenntt

Calculations SMEDAProjected Cash Flow Statement

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Operating activities

Net profit 589,583 2,010,893 4,403,159 8,422,550 14,725,052 23,514,480 36,490,948 49,041,410 65,902,715 89,275,409 Add: depreciation expense 290,960 290,960 290,960 290,960 290,960 290,960 608,935 608,935 608,935 608,935 amortization of pre-operating costs 24,879 24,879 24,879 24,879 24,879 24,879 24,879 24,879 24,879 24,879 Deferred income tax - - - - - - (52,766) (52,766) (52,766) (52,766) Accounts receivable (556,217) (760,108) (497,056) (739,372) (1,077,127) (1,742,159) (2,369,106) (2,581,100) (3,081,633) (4,201,734) Finished goods inventory (686,688) (177,877) (221,456) (294,222) (346,278) (454,225) (586,015) (801,400) (1,061,215) (1,469,926) Equipment inventory - - - - - - - - - - - Raw material inventory (696,000) (256,632) (370,232) (540,067) (795,531) (1,181,741) (1,768,036) (2,661,072) (4,025,029) (6,112,779) 18,407,119 Accounts payable 115,370 128,353 66,527 87,777 112,738 146,484 197,306 272,243 379,040 210,926 Other liabilities - - - - - - - - - -

Cash provided by operations (696,000) (478,745) 1,146,867 3,526,946 6,997,041 12,548,483 20,012,384 31,653,110 42,487,172 56,607,176 102,802,840

Financing activitiesDebt facility : Bank 1 - principal repayment - (1,030,007) (1,181,956) (1,356,322) (1,556,411) - - (5,486,184) (6,295,522) (7,224,256) Additions to Debt facility : Bank 1 5,124,695 - - - - - 27,295,962 - - - - Issuance of shares 5,124,695 - - - - - 18,197,308 - - - -

Cash provided by / (used for) financing activities 10,249,391 - (1,030,007) (1,181,956) (1,356,322) (1,556,411) 45,493,270 - (5,486,184) (6,295,522) (7,224,256)

Investing activitiesCapital expenditure (9,053,391) - - - - - (45,493,270) - - - - Acquisitions

Cash (used for) / provided by investing activities (9,053,391) - - - - - (45,493,270) - - - -

NET CASH 500,000 (478,745) 116,860 2,344,990 5,640,719 10,992,072 20,012,384 31,653,110 37,000,989 50,311,654 95,578,584

Cash balance brought forward 500,000 21,255 138,115 2,483,105 8,123,824 19,115,896 39,128,280 70,781,390 107,782,379 158,094,033 Cash available for appropriation 500,000 21,255 138,115 2,483,105 8,123,824 19,115,896 39,128,280 70,781,390 107,782,379 158,094,033 253,672,617 Dividend - - - - - - - - - - Cash balance 500,000 21,255 138,115 2,483,105 8,123,824 19,115,896 39,128,280 70,781,390 107,782,379 158,094,033 253,672,617 Cash carried forward 500,000 21,255 138,115 2,483,105 8,123,824 19,115,896 39,128,280 70,781,390 107,782,379 158,094,033 253,672,617



31

1144 KKEEYY AASSSSUUMMPPTTIIOONNSS

TTaabbllee 1144--11 OOppeerraattiinngg AAssssuummppttiioonnss

FactoryHours Operational per day 8Days operational per month 25Days operational per year 300

ShowroomHours Operational per day 12Days Operational per month 25Days Operational per year 300

TTaabbllee 1144--22 EEccoonnoommyy RReellaatteedd AAssssuummppttiioonnss

Annual Electricity Price Growth 10%Annual Salary Growth Rate 10%Rent Growth Rate 10%Annual Sale Price Growth Rate for other Showrooms 3%Annual Sale Price Growth Rate for own Customers 10%Annual Raw Material Price Growth Rate for Wood 40%Annual Raw Material Price Growth Rate other than Wood 10%

TTaabbllee 1144--33 EExxppeennssee AAssssuummppttiioonnss

Communication Expense 5% of Administrative CostsTransportation Expense 3% of Cost of Goods SoldMarketing Expense 0.50% of Revenues

TTaabbllee 1144--44 CCaasshh ffllooww AAssssuummppttiioonnss

Initial Cash in Bank Rs. 500,000Accounts Payable Cycle in (Days) 7Finished Goods Inventory in (Days) 30Raw Material Inventory of Wood in (Days) 90Raw Material Inventory other than Wood in (Days) 30

TTaabbllee 1144--55 DDeepprreecciiaattiioonn EExxppeennssee

Depreciation Method Straight LineDepreciation Rate for Land (Annual) 0%Depreciation Rate for Factory & Showroom (Annual) 5%Depreciation Rate for Machinery & Equipment (Annual) 10%Depreciation Rate for Furniture, Fixture & Office Equipments (Annual)

10%



32

TTaabbllee 1144--66 FFiinnaanncciiaall AAssssuummppttiioonnss

Project Life (Years) 10Debt Equity Ratio 50:50Return on Equity 25%Interest Rate on Long Term Debt 14%Long Term Debt Tenure (Years) 5Number of Payment/Year 1Net Present Value Rate (Weighted Average Cost of Capital) 18.50%Income Tax Rates Sole Proprietorship Tax Slabs

TTaabbllee 1144--77 RReevveennuuee AAssssuummppttiioonnss ffrroomm SSaalleess ttoo ootthheerr SShhoowwrroooommss ((FFiirrsstt YYeeaarr))

Description Product Mix Sale PriceBed SetSuperior 20% 72,000Fine 30% 55,000Normal 50% 48,000Dinning SetSuperior 20% 70,000Fine 30% 51,000Normal 50% 40,000Sofa SetSuperior 20% 56,000Fine 30% 37,000Normal 50% 31,000Misc. FurnitureSuperior 20% 18,000Fine 30% 14,000Normal 50% 11,000Office FurnitureSuperior 20% 73,000Fine 30% 43,000Normal 50% 32,000

TTaabbllee 1144--88 RReevveennuuee AAssssuummppttiioonnss ffrroomm SSaalleess ttoo OOwwnn CCuussttoommeerrss ((FFiirrsstt YYeeaarr))

Description Product Mix Sale PriceBed SetSuperior 20% 85,000Fine 30% 65,000Normal 50% 55,000Dinning Set



33

Superior 20% 82,000Fine 30% 60,000Normal 50% 45,000Sofa SetSuperior 20% 65,000Fine 30% 45,453Normal 50% 35,299Misc. FurnitureSuperior 20% 22,000Fine 30% 17,000Normal 50% 14,000Office FurnitureSuperior 20% 85,000Fine 30% 50,000Normal 50% 40,000

TTaabbllee 1144--99 CCoosstt ooff GGooooddss DDeettaaiill ((FFiirrsstt YYeeaarr))

Description Product Mix Cost PriceBed SetSuperior 20% 56,024Fine 30% 42,883Normal 50% 36,975Dinning SetSuperior 20% 54,279Fine 30% 39,745Normal 50% 30,894Sofa SetSuperior 20% 43,366Fine 30% 29,033Normal 50% 23,937Misc. FurnitureSuperior 20% 14,561Fine 30% 11,153Normal 50% 8,812Office FurnitureSuperior 20% 56,193Fine 30% 33,168Normal 50% 24,742



34

TTaabbllee 1144--1100:: RRaaww MMaatteerriiaall CCoossttiinngg ((BBeedd SSeett))1188

Costing Bed Set Superior Quality Costing Bed Set Fine Quality Costing Bed Set Normal Quality

Raw Material Cost Raw Material Cost Raw Material CostDescription No. of Unit Rate/Unit Total Amount Description No. of Unit Rate/Unit Total Amount Description No. of Unit Rate/Unit Total AmountWood (Cubic ft) 15 1200 18,000 Wood (Cubic ft) 12 800 9,600 Wood (Cubic ft) 3 800 2,400 Nails/Screws 1 200 200 Nails/Screws 1 200 200 Lasani 5 1,200 6,000 Glue/Solution 1 200 200 Glue/Solution 1 200 200 Nails/Screws 1 200 200 Spirit (in Ltr.) 20 50 1,000 Spirit (in Ltr.) 15 40 600 Glue/Solution 1 200 200 Lakh (in kgs) 1.5 350 525 Lakh (in kgs) 1 350 350 Paint (in Ltr.) 1 1,500 1,500 Thinner (in Ltr.) 8 60 480 Thinner (in Ltr.) 4 60 240 Thinner (in Ltr.) 10 60 600 Lacquer (in Ltr.) 2 200 400 Lacquer (in Ltr.) 2 200 400 Lacquer (in Ltr.) 1 200 200 Wooden Frame for Matress

1 1000 1,000 Sealer (in Ltr.) 2 185 370 Wooden Matress frame 1 1,000 1,000

Sealer (in Ltr.) 3 185 555 wooden Matress frame 1 1,000 1,000 Dressing Set Glass 16 60 960 Dressing Set Glass 16 70 1,120 Dressing Set Glass 16 70 1,120 Tapestry Dressing St. (in

Meters)0.5 250 125

Tapestry Dressing St. (in Meters)

0.5 250 125 Tapestry Dressing St. (in Meters)

0.5 250 125 Foam 1 150 150

Foam 1 150 150 Foam 1 150 150 COB (alternate for Hardner)

1 350 350

Channels, Handles 1 2000 2,000 Channels, Handles 1 2000 2,000 Thinner (Butyl) 1 190 190 Thinner (Butyl) 1 190 190 Thinner (Butyl) 1 190 190 Thinner (imported) 1 150 150 Thinner (imported) 1 150 150 Thinner (imported) 1 150 150 Channels, Handles 1 2000 2,000 Direct Labor & Electricity Cost

1 29,929 29,929 Direct Labor & Electricity Cost


1 20,950 20,950

Total 56,024 Total 42,883 Total 36,975

18 Classic Furniture, Mr. Iqbal Hassan. Cell #: 0333-4299169, 0321-8499894Al-Zahra Group, Mr. Zulfiqar Ali. Cell #: 0300-4261264, Showroom Ph: 042-6866392Madina Furniture House, Mr. Farhan Abbas. Cell #: 0300-4237702, Showroom Ph: 042-5416465



35

TTaabbllee 1144--1111:: RRaaww MMaatteerriiaall CCoossttiinngg ((DDiinniinngg TTaabbllee))1199

Raw Material Cost Raw Material Cost Raw Material CostDescription No. of Unit Rate/Unit Total Amount Description No. of Unit Rate/Unit Total Amount Description No. of Unit Rate/Unit Total AmountWood (Cubic ft) 8 1,200 9,600 Wood (Cubic ft) 8 800 6,400 Wood (Cubic ft) 4 800 3,200 Poshish/Seat 8 200 1,600 Poshish/seat 8 200 1,600 Poshish/seat 8 150 1,200 Nails/Screws 1 400 400 Nails/Screws 1 400 400 Nails/Screws 1 400 400 Glue/Solution 1 300 300 Glue/Solution 1 300 300 Glue/Solution 1 300 300 Spirit (in Ltrs.) 18 50 900 COB 1 350 350 COB 1 350 350 Lakh (in Kgs) 2 350 700 Paint 1 1,500 1,500 Lasani 1 1,200 1,200 Thinner (in Ltrs.) 8 60 480 Thinner (in Ltrs.) 15 60 900 Paint 1 1,500 1,500 Lacquer (in Ltrs.) 2 200 400 Lacquer 2 200 400 Thinner (in Ltrs.) 10 60 600 Sealer (in Ltrs.) 2 185 370 Glass Top 12mm in

(Sq.ft)32 200 6,400 Lacquer 2 200 400

Glass Top (12 mm) in sq.ft

32 200 6,400 Foam 1 1,200 1,200 Glass Top 12mm in (Sq.ft)

32 140 4,480

Foam 1 1,200 1,200 Tapestry (in Meters) 3 250 750 Foam 1 1,200 1,200 Tapestry (in Meters) 5 300 1,500 Misc. 1 500 500 Tapestry (in Meters) 3 200 600 Misc. 1 500 500 Direct Labor & Electricity

Cost1 19,045 19,045 Misc. 1 500 500

Direct Labor & Electricity Cost


1 14,964 14,964


Costing Dinning Set Superior Quality Costing Dinning Set Fine Quality Costing Dinning Set Normal Quality

19 Classic Furniture, Mr. Iqbal Hassan. Cell #: 0333-4299169, 0321-8499894Madina Furniture House, Mr. Farhan Abbas. Cell #: 0300-4237702, Showroom Ph: 042-5416465



36

TTaabbllee 1144--1122:: RRaaww MMaatteerriiaall CCoossttiinngg ((SSooffaa SSeett))2200

Raw Material Cost Raw Material Cost Raw Material CostDescription No. of Unit Rate/Unit Total Amount Description No. of Unit Rate/Unit Total Amount Description No. of Unit Rate/Unit Total AmountWood (Cubic ft) 6 325 1,950 Wood (Cubic ft) 6 325 1,950 Wood (Cubic ft) 6 325 1,950 Poshish/per seat 6 700 4,200 Poshish/Seat 6 600 3,600 Poshish/Seat 6 500 3,000 Nails/Screws 1 100 100 Nails/Screws 1 100 100 Nails/Screws 1 100 100 Glue/Solution 1 400 400 Glue/Solution 1 400 400 Glue/Solution 1 400 400 Springs (Dozs) 7 144 1,008 Spring (Doz) 7 144 1,008 Spring (Doz) 7 144 1,008 Tat (in Meters) 10 50 500 Tat (in Meters) 10 50 500 Tat (in Meters) 10 50 500 Rubber Pati 25 8 200 Rubber Patti 25 8 200 Rubber Patti 25 8 200 Dori (in Kgs) 0.5 100 50 Dori (in Kgs) 0.5 100 50 Dori (in Kgs) 0.5 100 50 Foam "A" 1 5,500 5,500 Foam 1 4,500 4,500 Foam 1 4,000 4,000 Tapestry (in Meters) 30 400 12,000 Tapestry 25 250 6,250 Tapestry (in Meters) 20 200 4,000 Direct Labor & Electricity Cost



1 8,729 8,729


Costing Sofa Set Normal QualityCosting Sofa Set Fine QualityCosting Sofa Set Superior Quality

20 Classic Furniture, Mr. Iqbal Hassan. Cell #: 0333-4299169, 0321-8499894Madina Furniture House, Mr. Farhan Abbas. Cell #: 0300-4237702, Showroom Ph: 042-5416465



37

TTaabbllee 1144--1133:: RRaaww MMaatteerriiaall CCoossttiinngg ((MMiisscc.. FFuurrnniittuurree SSeett))2211

Raw Material Cost Raw Material Cost Raw Material CostDescription No. of Unit Rate/Unit Total Amount Description No. of Unit Rate/Unit Total Amount Description No. of Unit Rate/Unit Total AmountWood (Cubic ft) 6 1,200 7,200 Wood (Cubic ft) 6 800 4,800 Wood (Cubic ft) 3 800 2,400 Nails/Screws 1 100 100 Nails/Screws 1 100 100 Nails/Screws 1 100 100 Glue/Solution 1 300 300 Glue/Solution 1 300 300 Glue/Solution 1 300 300 Spirit (in Ltrs.) 8 50 400 COB 1 350 350 COB 1 350 350 Lakh (in Kgs) 1 350 350 Paint 1 1,000 1,000 Lasani 1 1,200 1,200 Thinner (in Ltrs.) 3 60 180 Thinner (in Ltrs.) 8 60 480 Paint 1 1,000 1,000 Lacquer (in Ltrs.) 1 200 200 Lacquer 1 200 200 Thinner (in Ltrs.) 8 60 480 Sealer (in Ltrs.) 1 185 185 Glass Top 12mm in

(Sq.ft)17 150 2,550 Lacquer (in Ltrs.) 1 200 200

Glass Top (12 mm) in sq.ft

17 200 3,400 Misc. 1 500 500 Glass Top 12mm in (Sq.ft)

17 100 1,700

Misc. 1 500 500 Direct Labor & Electricity Cost

1 873 873 Misc. 1 500 500

Direct Labor & Electricity Cost


1 582 582


Costing Misc. Furniture Normal QualityCosting Misc. Furniture Fine QualityCosting Misc. Funiture Superior Quality

21 Classic Furniture, Mr. Iqbal Hassan. Cell #: 0333-4299169, 0321-8499894



38

TTaabbllee 1144--1144:: RRaaww MMaatteerriiaall CCoossttiinngg ((OOffffiiccee FFuurrnniittuurree SSeett))2222

Raw Material Cost Raw Material Cost Raw Material CostDescription No. of Unit Rate/Unit Total Amount Description No. of Unit Rate/Unit Total Amount Description No. of Unit Rate/Unit Total AmountWood (Cubic ft) 10 1,200 12,000 Wood (Cubic ft) 6 800 4,800 Wood (Cubic ft) 2 800 1,600 Nails/Screws 1 400 400 Nails/Screws 1 100 100 Nails/Screws 1 100 100 Glue/Solution 1 300 300 Glue/Solution 1 300 300 Glue/Solution 1 300 300 Spirit (in Ltrs.) 10 60 600 COB 1 350 350 COB 1 350 350 Lakh (in Kgs) 1.5 350 525 Paint 1 1,000 1,000 Lasani 2 1,200 2,400 Thinner (in Ltrs.) 5 60 300 Thinner (in Ltrs.) 8 60 480 Paint 1 1,500 1,500 Lacquer (in Ltrs.) 2 200 400 Lacquer 1 200 200 Thinner (in Ltrs.) 10 60 600 Sealer (in Ltrs.) 2 185 370 Glass Top 12mm in

(Sq.ft)21 200 4,200 Lacquer (in Ltrs.) 2 200 400

Channels, Handles 1 2000 2,000 Channels, Handles 1 1500 1,500 Channels, Handles 1 1500 1,500 Thinner (Butyl) 1 190 190 Executive Chair 1 7500 7,500 Executive Chair 1 6000 6,000 Thinner (imported) 1 150 150 Visitors Chair 2 3500 7,000 Visitors Chair 2 3000 6,000 Executive Chair 1 12000 12,000 Misc. 1 500 500 Misc. 1 500 500 Visitors Chair 2 4500 9,000 Direct Labor & Electricity

Cost1 5,238 5,238 Direct Labor & Electricity

Cost1 3,492 3,492

Misc. 1 500 500 Direct Labor & Electricity Cost

1 17,458 17,458


Costing Office Furniture Superior Quality Costing Office Furniture Fine Quality Costing Office Furniture Normal Quality

22 Classic Furniture, Mr. Iqbal Hassan. Cell #: 0333-4299169, 0321-8499894

smeda wooden furniture manufacturing unit

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