H U R F A S H I O N.

Project Proposal For Finance

INTRODUCTION

Bangladesh is an overpopulated country with limited resources and higher social

stratification. Economic, political and social recognition are determined on the basis of
gender, class and location (WED, 2001). The urban areas have greater opportunities for
business development while rural areas lag behind. Nearly half of the population are
women (sex ratio 106). The enormous potentiality of the population has been unutilized
as few women participate in the mainstream of economic activities. For instance, only
16% of women are self-employed out of 66% self-employed citizen (based on
entrepreneurship status). Encouragingly, there is a rising of a new class in rural
Bangladesh, they are the women entrepreneurs who have accepted the challenges of life
and have emerged as leaders in the socio-economic development, thus earning for
themselves and for their families and contributing towards the socio-political upliftment
of women. Consequently, entrepreneurship has become an important profession among
women in both rural and urban areas. Women in rural areas are being self-employed
through the agricultural and non-agricultural sector, as entrepreneurs. These activities
are cropping, livestock and poultry rearing, fish farming, nursery and tree planting, tool
making, handcrafting, food processing, tailoring, rice processing, etc.

Nevertheless, it is very difficult to quantify the contri-bution of micro, small and medium
enterprises (MSMEs), particularly estimation of the contribution of women due to lack of
available data. Alam and Miyagi (2004) repor-ted that MSMEs contribute Tk. 741 billion
(US$10.15 billion), which is equivalent to 20 to 25% of gross domestic product (GDP).
About 40% of the population (above 15 years old) are employed in this sector in both
rural and urban areas. But with the onward march of civilization people’s boutiques
fashion habit has undergone fundamental changes. Peoples are now very much
accustomed to Kurtis, Long Gown/Baby, Blouse, Kids Dress, Sherwany, Zwdoshi,
Lehenga, Fotua, Borka/KamIz, Panjabi, Saree & All over, Salwar/Paijama, Wading Dress
etc. in their after every day, these are sold in the markets all over Bangladesh.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 1
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Boutiques fashion is a vital industry that constitutes the hub of industries supplying
design to mankind such as farm products processing industry, boutiques fashion.
Boutiques fashion is an age old industry. From embroidery different fashionable
products like Kurtis, Long Gown/Baby, Blouse, Kids Dress, Sherwany, Zwdoshi,
Lehenga, Fotua, Borka/KamIz, Panjabi, Saree & All over, Salwar/Paijama, Wading Dress
etc. are obtained depending upon the fineness and are used for different
preparation/applications, Apart from direct consumption by individual consumers,
Boutiques and fashion produced by fashion days units serve as the most important raw
material for the industry. The demand for boutiques fashion is continuously increasing
due to interest of wearing deshi and customized dress among the Bangladeshi women.

Boutiques fashion is not new products and its processing is traditional one in
Bangladesh. The aforesaid products are garments items. With the advancement of
science and technology, the way of life along with the fashion habit of the people of the
present age has changed radically. People of modern age, find very little time to spend in
the family, spend much of their time in the factory, office and in the field too. In view of
the changed circumstances, the people of all areas either urban or rural prefer to instant
and prepared fashion to that of much time Boutiques fashion. Bangladesh is no
exception to this. It is with the process of industrialization, the people of Bangladesh are
also gradually coming out to spend time in the factory and in other occupations. The
future demand for boutiques fashion related products will increase by leaps and bounds
with the increase of population along with change of boutiques fashion habits.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 2
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

EXECUTIVE SUMMARY
01. Name of the project : HUR FASHION

02. Location of the Project : House # 15, Road # 103, Pink City Shopping
Complex (3rd Floor), Shop-11/A, Gulshan #2,
Gulshan.

03. Corporate Office : Pink City Shopping Complex, HUR. 11/B (3 rd

Floor), Plot-15, Road-103, Block-CEN, Gulshan
Avenue, Dhaka-1212.

04. Project Brief : The proposal envisages setting up of a modern

boutiques fashion house at above location under
the name & style of Hur Fashion. The project has
been designed with both imported and local
machinery. The total cost of the project has been
estimated at Tk. 85.02 lac.

05. Production Capacity : The estimated annual capacity, based on two

shifts of eight hours each per day, 300 working
days in a year at 100% efficiency will be as
follows:

Items of products Unit Annual rated capacity

Existing Additional Total
A) Kurtis Pcs 3000 3000 6000
B) Long Gown/Baby Pcs 2000 3000 5000
C) Blouse Pcs 1000 1000 2000
D) Kids Dress Pcs 1000 1000 2000
F) Sherwany Pcs 1000 1500 2500
G) Zwdoshi Pcs 1000 1500 2500
I) Lehenga Pcs 1000 1000 2000
J) Fotua Pcs 2000 2000 4000
K) Borka/KamIz Pcs 3000 4000 7000
L) Panjabi Pcs 2000 2500 4500
M) Saree & All over Pcs 3000 5000 8000
N) Salwar/Paijama Pcs 3000 5000 8000
O) Wedding Dress Pcs 1000 1000 2000
Total: 24000 31500 55500

06. Proposal : a) Sanction of term loan of Tk. 51.01 lac

(including IDCP TK. 2.21 lac) being 60% of the
total cost of the project.
b) Sanction of working capital loan of TK. 10.00
lac for smooth operation of the project.

07. Legal Status : Proprietorship.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 3
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

08. Land : Lease agreement: Advanced rent (1500 sft space)

Cost: TK. 25.00 lac.

09. Building & civil works : Exiting Tk.8.00Lac Additional Tk.7.00 Lac. The
total cost has been estimated at Lac.Tk.15.00
Lac.

10. Machinery & equipment : a) Local Machinery:

The project will also be equipped with some
locally procured machinery and equipment. The
price of local machinery and equipment has been
estimated at Exiting Tk.3.42 Lac Additional
Tk.15.70 Lac. The total cost has been estimated
at Lac.Tk.19.12 Lac.

b) Office Equipment & Furniture :

The project will also be equipped with some
locally procured office furniture and equipment.
The price of local office furniture and equipment
has been estimated at Exiting Tk.14.19 Lac
Additional Tk.2.00 Lac. The total cost has been
estimated at Lac.Tk.16.19 Lac.
11. Financial aspects:
Cost of the project:
(Tk. in `000’)
Cost Cost to be Total
Item
incurred incurred Cost
01. Lease agreement (Advanced rent) 2500 0 2500
02. Building & other civil works 800 700 1500
03. Local Machinery 342 1570 1912
04. Safety equipment 0 100 100
05. Furniture, Fixture & Equipment 1419 200 1619
06. Cos of Installation 200 200
07. Consultant’s Fees 0 100 100
08. Pre-operating Expenses 0 350 350
09. Interest During Construction Period 221 221
Total Cost of the Project : 5061 3441 8502

12. Means of Finance:

The aforesaid cost is proposed to be financed as under: -
(Tk. in `000’)
Loans:
Bank’s Term Loan 0 4880 4880
IDCP 0 221 221
Total Loans : 5101 5101

Sponsor’s Equity :
3401 3401
Sponsor’s Investment
Total Loans & Equity : 3350 3401 3401

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 4
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Debt-Equity Ratio 60: 40

Fixed Asset Coverage Ratio (Times) 1.60

13. Working Capital:

(Taka in 000)
Total Working Capital Requirement : 1000

Working Capital Loan (70%) : 5132

14. Profitability:
(Taka in 000)
Items Year-1 Year-2 Year-3 Year-4 Year-5
Capacity utilization 60% 65% 70% 75% 80%

Sales revenue 15539 17144 18471 19793 19818

Gross profit 6650 7276 7895 8540 8522
Net Profit before Tax 3893 3878 4827 5382 5427
Net profit after Tax 3893 3538 4487 5042 5087
Ratios (%)
Gross profit to sales 43% 42% 43% 43% 43%
Operating profit before tax 31% 28% 31% 32% 31%
Net profit to sales 25% 23% 26% 27% 27%
DSCR 4.20 3.31 3.92 4.41 4.47

16. Break-Even Analysis:

The project is expected to break-even at 53% of the assumed capacity i.e., 40% of
the rated capacity at a sales value of Tk. 104.91 lac.

17. Financial Internal Rate of Return (FIRR):

The project promises an FIRR of 25%, which is considered to be satisfactory.

18. Conclusion:
The indicators of the feasibility report beckon that the project is technically
feasible, financially rewarding, economically & commercially viable and may,
therefore, be considered suitable for bank finance.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 5
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

CHAPTER-I
MANAGEMENT AND ORGANIZATIONAL ASPECTS
1.01 Introduction:
The project envisages for setting up of an modern boutique house under the
name and style of HUR FASHION at House # 15, Road # 103, Pink City
Shopping Complex (3rd Floor), Shop-11/A, Gulshan #2, Gulshan. The
implementation of the project will increase national earnings, make significant
contribution to GDP and create employment opportunity. The machinery &
equipment of the project will be locally procured. After implementation, the
project will create job opportunity for 30 persons of different categories. The total
cost of the project has been estimated at Tk. 85.02 lac against which term loan of
Tk. 51.01 lac (including IDCP TK. 2.21 lac) under SME women entrepreneurs
scheme has been estimated and prayed for.

The feasibility study scheme has been made covering organizational, technical,
market, economic and financial aspects. The total capital outlay of the project
has been estimated at Tk. 85.02 lac excluding net working capital. Based on term
loan and sponsor’s equity of 60: 40 & the viability tests as worked out in this
feasibility report based on some standard and acceptable parameters, it is found
that the proposed project will be able to repay debt.

1.02 Industrial Classification:

The project is covered under agro based industry sub-sector as per Industrial
Policy, 2010. As the total fixed cost of the project is less than Taka. 38.31Lac
(excluding land & building), it will be treated as small scale industry as per
Industrial Policy, 2010 and Bangladesh Bank’s SME women entrepreneurs’
classification.

1.03 Management:
The proposed project is being promoted by a of 1(one) person. They are well
educated as well as have enough experience in running and managing of a
number of business concerns. Considering their educational background and
business experience, it is expected that they will be able to implement the
scheme satisfactorily & operate the project smoothly. The particulars of the
promoting proprietor with their position and extent of share holding in the
company are as under:-
Share
SI. Name of the Present
Permanent Status holding
No sponsors Address
Address
1. Soumin Afrin House # 15, Road # Chormirkamari, Proprietorship 100%
Father- Mostaq 103, Pink City Joynagar,
Ahmed Shopping Complex, Ishwardi, Pabna.
Mother- Nasima Gulshan #2, Dhaka-
Aktar 1212.
Total: 100%

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 6
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance
Background of the Promoters:

Soumin Afrin

Soumin Afrin
Entrepreneur Engagement
1. Proprietor, Hur Fashion.
2. Adviser, Fashion Design.

Working Experience: 1998- Till Date

Working Experience with fashion designer

1. From 2010, I worked with US fashion designer, Innovation- in
fashion design solution, Quality- in construction, & Reliability-
in Service.” Is the motto of this Venture. As the CEO, I lead this
new design for giving a reliable and better service to potential
and future Hur Fashion.

2. We are trying to set a standard practice in all sorts of activities

related to Fashion Design, Marketing, Sales, and After Sales
Service that will create a better impression among all
stakeholders of this Industry.

3. Introducing Soumin Afrin a celebrity fashion designer and

adviser. She became a prominent designer within a few days
in the fashion industry. Through her unique work she made her
place strong in client’s heart. After finishing her graduation on
fashion designing. She started her career as a freelance
designer. She designed many costumes for some prominent tv
commercial but the most promising Break she got when she
came up as the costume designer of the movie, chorabali in
2012.Soumin afrin had a dream to open up her own boutique
house. She always wanted to do something new and
innovative in 2012, She gave a life to her dream and launched
her dream project " HUR ". Now A days HUR become one of the
most popular & famous boutique shops in Town. Soumin Afrin
says, It’s any client supported me to grow up without them I
would be nothing, I also thank to all of my friends and fans
Who ever helped me out to be SOUMIN Afrin.

4.
Education
Bachelor in fashion designing
► I completed my graduation in fashion designing from Shantha
Morium University of Engineering and Technologies (CUET) in 1998.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 7
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

1.04 TIN position:

TIN positions of the promoters are as under:

Sl.No. Name of the Sponsors TIN
01. Soumin Afrin 1844-1227-2278

1.05 National ID Position:

Birth Certificate of the promoters is as under:

Sl. No. Name of the Sponsors ID Nos.

01. Soumin Afrin 19882692519096191

1.06 Equity Mobilization:

The implementation of the project will involve a total outlay of Tk. 85.02 lac out
of which promoters’ participation in equity has been estimated at Tk. 34.01 lac
(40%). The sponsors of the project are expected to be capable of mobilizing their
part of equity to be invested in the project. The equity will be mobilized from the
earnings of the existing business concern and past savings of the sponsors.
1.07 Management of the company:

The Proprietor of the project is the Chief Executive of the organization and he is
responsible for overall management of the project under the direct supervision of
the Proprietor. He will guide both the technical and general staff of the organization
with prior approval from the Proprietor. The Proprietor will decide and formulate
policies and will provide guidelines for smooth operation of the day-to-day business.
Besides, skilled local personnel will be recruited for smooth operation of the project.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 8
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

CHAPTER-II
TECHNICAL ASPECTS

2.01 Purpose and design:

The proposal envisages setting up of boutique house under the name and style of
HUR FASHION at House # 15, Road # 103, Pink City Shopping Complex (3 rd
Floor), Shop-11/A, Gulshan #2, Gulshan. After successful completion of the
scheme, the production facilities will be able to deliver annually Kurtis 6000 Pcs,
Long Gown/Baby 5000 Pcs, Blouse 2000 Pcs, Kids Dress 2500 Pcs, Sherwany
2500 Pcs, Zwdoshi 2000 Pcs, Lehenga 4000 Pcs, Fotua 7000 Pcs, Borka/KamIz
7000 Pcs, Panjabi 4500 Pcs, Saree & All over 8000 Pcs, Salwar/Paijama 8000 Pcs
and Wading Dress 2000 Pcs on the basis of 2 shifts operation of 8 hours each per
day & 300 working days in a year as main products into the local market. The
scheme has been designed on the basis of imported as well as local machinery
and raw materials. The project after implementation will create job opportunities
for 30 personnel in different level of job. As per designed implementation
schedule, the proposed scheme will be completed and put the production
facilities into normal commercial operation for the machinery and equipment. The
fixed cost of the project has been estimated at Tk. 85.02 lac . Details of fixed cost
have been shown in Annex-I/A.

2.02 Product-mix and production capacity:

The estimated annual capacity, based on 2 shifts of eight hours each per day and
300 working days in a year at 100% efficiency will be as follows:
Items of products Unit Annual rated capacity
Existing Additional Total
A) Kurtis Pcs 3000 3000 6000
B) Long Gown/Baby Pcs 2000 3000 5000
C) Blouse Pcs 1000 1000 2000
D) Kids Dress Pcs 1000 1000 2000
F) Sherwany Pcs 1000 1500 2500
G) Zwdoshi Pcs 1000 1500 2500
I) Lehenga Pcs 1000 1000 2000
J) Fotua Pcs 2000 2000 4000
K) Borka/KamIz Pcs 3000 4000 7000
L) Panjabi Pcs 2000 2500 4500
M) Saree & All over Pcs 3000 5000 8000
N) Salwar/Paijama Pcs 3000 5000 8000
O) Wedding Dress Pcs 1000 1000 2000
Total: 24000 31500 55500

The attainable capacity level has been estimated at 65% in 1st year, 70% in 2nd
year, 75% in 3rd year,80% in 4th year and 80% in 5th year and subsequent years
respectively for initial 5 years of operations.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 9
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

2.03 Technology and Manufacturing process:

Bangladesh has quite a long experience in Boutique Gallery. A large number of

such units have been in operation with usual as well as advanced machinery and
equipment since long. Besides, the machinery supplier will help to install
equipment and train up project’s local personnel for smooth operation of the
project. Therefore, the project will not face any technical problem during
operation.

Retail apparel establishments have a tendency to have a high number of SKUs

because of the level of inventory. It is imperative that an advanced inventory and
point of sales program be utilized to maintain stock levels and track sales.

Our business plan will be generated and reviewed to ensure all financial goals
and objectives are being reached. It will allow us to make the most of our limited
marketing budget by focusing our communications on our target markets and
enhancing our marketing knowledge.

The boutique then passes to the machine and is design there. After design the
boutique, products are passed through the boutique fashion design & plan
shifter machine. Then the products are separated there and finally become ready
for packing.

2.04 Land and location:

The project will be set up on an area of land measuring Lease Advanced rent
(1500 sft space) at Jadurdia, Dangi, Nagarkanda, Faridpur. The project site is
located adjacent to Dhaka-Faridpur Highway. All infrastructural facilities like
communication, power, labor, etc. are available in the project site. The total cost
of the project land (1500 sft space) has been estimated at Tk. 25.00 lac.

The project location will enable the infrastructural provisions & electricity service
connections to be affected at reasonable costs, thereby effecting economization in
the project investment cost.

Moreover, the site is considered most suitable for the project of this nature,
because all types of raw materials and marketing facilities are available here.
Hence the land is considered suitable and adequate for the proposed project.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 10
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

2.05 Building and Civil works:

The civil works of the project will consist of main factory building/ godown, office
building, guard room, underground reservoir and overhead water tanks,
boundary wall, etc.

The total cost of building and other civil works including electrification &
sanitation works of the proposed scheme has been estimated at Exiting
Tk.8.00Lac Additional Tk.7.001Lac. The total cost has been estimated at
Lac.Tk.15.00 Lac. has been earmarked. Details of building and other civil works
have been shown in Annex-II.

2.06 Machineries and Equipment:

a) Local:
The project will also require local machinery and equipments, such as, Electrical
sub station, Diesel Generator, Shallow tube well with pump and motor, Weigh
bridge digital scale, etc. The price of the local machinery & equipment has been
estimated at Exiting Tk.3.42 Lac Additional Tk.15.70 Lac. The total cost has been
estimated at Lac.Tk.19.12 Lac. Details of local machinery & equipments are
shown in Annexure-III/B.

b) Office Furniture and other assets:

The project will also require local machinery and equipments, the price of the
local Office Furniture and other assets has been estimated at Exiting Tk.14.19
Lac Additional Tk.2.00 Lac. The total cost has been estimated at Lac.Tk.1619
Lac. Details of Office Furniture and other assets are shown in Annexure-III/C.

2.07 Technical services and quality control:

The technologies involved in boutique gallery are available in the country. A large
number of such units have already been in operation with usual as well as
advanced machinery and equipment sine long. Since the technologies are
familiar, relevant skilled & semi skilled manpower has already been developed.
Thus, necessary qualified & competent technical personnel and production
workers to the relevant posts of the project can be recruited locally during
implementation and operation of the project.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 11
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Moreover, for smooth operation of the machinery & equipment of the project and
proper control of quality of the products to be made, the suppliers of the
machinery and equipment will be responsible to arrange training of the technical
personnel/experts recruited by the sponsors within the scope of supply contracts
during the fashion designing of the plant.

It is, therefore, expected that no problem will be faced by the project in future
regarding smooth operation of machinery and proper quality control of products.
Besides, the project will have its own quality control equipment.

2.09 Raw Materials:

The main raw materials for the project will be Wheat, packing materials, etc.
which will be partly imported from internationally reputed Suppliers at a very
competitive prices and will be procured locally from renowned
manufacturers/suppliers at very competitive prices. The annual requirement of
raw materials at 100 % capacity has been estimated and is shown below:

Item Unit Qty

Cotton embroidery thread Cone 7000
Polyester embroidery thread Cone 7000
Lorex embroidery thread Cone 7000
Needle LS
Inter lining roll 2000
Bobbin Thread roll 2000
Spray Pcs 4600
Both side tape Pcs 4230
Felt fabrics yards 4880
Tewel fabrics yards 7000
Lezer cutting Pcs 600000
Diese cutting Pcs 400000

2.10 Utilities:
2.10.1 Water:
The required supply of water will be made available from shallow tube wells to be
sunk within the project site.

2.10.2 Power:

The connected load of power requirement has been estimated at 200 kw and
maximum demand will be 20 kw. The required power will be available from
REB/PDB. Besides, sub-station equipment with 20 kVA transformer, HT/LT
switch-gear, metering panel, PF improvement plant, required cable and a 20-kW
standby diesel generator will also be installed into the project premise.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 12
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

2.12 Stores and spares:

The annual cost of repairs and maintenance has been estimated @ 0.5% 1%, 1.5%
2% and 2.5% from 1st to 5th year of operation, respectively on the value of
machinery.

2.13 Repair and maintenance:

The annual cost of repairs and maintenance has been estimated @ 0.5%, 1%,
1.5%, 2% and 2.5% from 1st to 5th year of operation on the value of machinery
and @0.5% on building.

2.14 Safety Provision:

The project will require its own safety provision to fight against fire & other
hazards by procuring fire fighting equipment and first aid box, cost of which has
been considered at an amount of Tk. 1.00 lac.

2.15 Pollution Control & Waste Disposal:

The project will not generate any wastes, which may harmful. Thus, the project
will not create any threat towards environment pollution. Moreover, if necessary,
the promoters will arrange for an Environmental Impact Assessment (EIA) Study
to be carried out by a competent consultant and would obtain necessary
clearance from the Department of Environment and Pollution Control before
starting operation.

2.16 Manpower requirement:

The requirement of technical and other personnel based on single shift operation
is as under:

A: Technical:
Name of the Post No. of the Post
Existing Additional Total
01. Designer 1 0 1
02. Shift In charge 1 1 2
03. Skilled 1 4 5
04. Semi Skilled 2 5 7
05. Unskilled labour 2 5 7
06. Packing worker 1 0 2
Total: 8 15 23

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 13
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

B: Administrative:
Name of the Post No. of the Post
Existing Additional Total
01. Manager 0 1 1
02. Accountant 0 1 1
03. Marketing Officer 0 1 1
04. Store Keeper 1 0 1
05. Computer operator 1 0 1
06. Guard 0 1 1
07. Peon 1 0 1
Total: 3 4 7

Total: A+B: (23+7) =30 Nos.

2.15 Schedule of implementation:

It is expected that the project will go into commercial production within 6(six)
months from the date of first disbursement of long-term loan.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 14
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

CHAPTER-III

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 15
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 16
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

MARKET ASPECTS

3.01 Introduction:

The Boutique shop that we are promoting is Boutique Gallery which is a unique
clothing store. We know for sure now a day’s people are very conscious about
what they wear & how they appear.So, from our passion and love for the
wonderful world of the fashion we have come up with our unique Boutique store
which we believe will is pleasing our customers. Our Boutique store focuses on
the establishment of women wear including the operations of apparel designing,
manufacturing, selling and marketing. We have developed some unique ways to
attract customers and believe our customers as the hero of our small Boutique
shop.

The project contemplates to process Boutique shop from Boutique Gallery for
local market. The market size of Bangladesh is stupendous enough and it is
growing rapidly. The proposed products are fashion and hence these can be sold
out anywhere in the country as per demand. Therefore, macro-level demand for
Boutique, Boutique Gallery and Fashion is considered to be sufficient for
operation of the project.

3.2 Demand Analysis:

The Primary target customer of Boutique Gallery will be the local people in the
Dhaka region. As we are situated in the epic-center of the business community we
believe they will make up the largest percentage of our customer base.

The secondary target customers are the NRBS. As the Nonresident population
continues to grow rapidly in various parts of the world, we expect to receive the
patronage of them as they are very loyal to Bengali apparel.
The last target customer of Boutique Gallery is listed as other. As popularity
about the store increases, we expect to see an assortment of curiosity seekers as
well as seasonal purchasers during festival season.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 17
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

The items to be produced by the instant units can find its markets in all bazars,
cities, and towns if good quality products at a competitive price can be
supplied/made available.

The future demand for Fashion Design and Boutique Gallery related products will
increase by leaps and bounds with the increase of population along with change
of uses habits.

Based on the information gathered from Wholesalers/Distributors, the

demand/supply gap is estimated.

COMPETITORS /SUPPLY OF BOUTIQUE GALLERY

We have many competitors as we located our shop at Pink City Shopping

Complex. There are many branded boutique houses in Pink City Shopping
Complex. Such as Yellow, Westecs, Ecstasy Fashion houses etc. So these are the
branded boutique houses which the customers prefer first. We have to compete
with them.

3.3 Existing Supply & Existing Capacity:

Boutique is obtained from boutique gallery. Production of dress in the country
may be seen from Table II below:

Production of Boutique
Year Production in
2009-2010 10000
2010-2011 12000
2011-2012 13000
2012-2013 14000
2013-2014 15000
2014-2015 18000
2015-2016 20000
2016-2017 24000
2017-2018 24000
2018-2019 24000
Average 24000

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 18
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

3.05 Proposed Marketing/distribution Arrangement:

The boutique gallery will use a targeted advertising and sales program to generate
publicity and build a customer’s base.

2000 full-color postcard flyers with a 10% coupon will be distributed throughout
Dhaka two weeks prior to the grand opening event. We are opening our
personalized Web Page for promoting our products & have our Facebook page to
inform about our products.

Moreover, we have arranged for promoting our boutique shop on the newspapers
also with our slogan on it which will definitely attract customers.

The customer mailing list has been compiled from contacts the owners have made
while in the community of the unit will be sold through Distributors, Agents and
Wholesalers. Sales Centre may also be established to augment sale of the
products.

The project plans to market its products in the following channels of distribution
as is shown below:

Channels of Distribution

Distributor Agents Wholesalers / Show

Project Room / Sales Centre/
Consumers

Own Sales Center / Sales Personnel

Web Page/facebook
page
/ Consumers

Sales Centre/ Sales Personnel

3.06 Price Competitiveness:

Much attention will be given on the pricing of the products. For such product,
product quality and the price have equal roles in penetrating into market. The
proposed selling price along with the existing market has been shown below:

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 19
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

TABLE
Pricing of the Products
Items of products Unit Unit Price in Tk.

A) Kurtis Pcs 500

B) Long Gown/Baby Pcs 300
C) Blouse Pcs 280
D) Kids Dress Pcs 180
F) Sherwany Pcs 850
G) Zwdoshi Pcs 350
I) Lehenga Pcs 750
J) Fotua Pcs 450
K) Borka/KamIz Pcs 750
L) Panjabi Pcs 550
M) Saree & All over Pcs 600
N) Salwar/Paijama Pcs 175
O) Wedding Dress Pcs 150
Total:

3.07 Input (raw materials) pricing

The basic raw materials to be required for the project are wheat, packing material
etc. The price structure of raw materials and their sources are furnished below in
Table-VI.

Table-VI
Prices of raw material

Name of raw materials Unit Unit Price in Tk.

Cotton embrodiary thread Cone Tk.140.00
Polyester embrodairy thread Cone Tk.140.00
Lorex embrodiary thread Cone Tk.160.00
Neddle LS
Inter lining roll Tk.450.00
Bobbin Thread roll Tk.450.00
Spray Pcs Tk.150.00
Both side tape Pcs Tk.70.00
Felt fabrics yards Tk.90.00
Tewel fabrics yards Tk.160.00
Lezer cuitting Pcs Tk.2.00
Diese cutting Pcs Tk.2.00

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 20
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

3.08 Sales Promotional Aspects:

Sales promotion in our country is done through advertising depending on the
nature of products. For the above-mentioned products, advertising has been
proposed. Since, the promoters have personal contacts in the wholesale market
they may take recourse to personal selling approach as a means of product
promotion. To create mass awareness, the proposed project may advertise their
product through we are opening our personalized Web page for promoting our
products and have our own Facebook page to inform about our product Paper,
stickers, Posters Calendars etc. after going into commercial production.

3.09 Conclusion:
A detailed analysis and evaluation of the market demand, producers and
consumers, multiplicity of usage’s, economic competitiveness and assessments of
other relevant factors, reveal that the project’s success potentials are indeed
present and that its future is bright.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 21
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

CHAPTER-IV
ECONOMIC ASPECT
4.01 Employment generation:

Upon implementation, the project will generate employment for 30 people of

different categories. Thus, the project will play a significant role to lessen the
unemployment problem of the country and improve the living standard of the
already employed people.

4.02 Cost per Employment:

Total fixed cost per employment is estimated at Tk. 1.89 lac.

4.03 Contribution to GDP:

On implementation, the project will contribute a significant amount to Gross

Domestic Products (GDP) of the country at a rate of Tk. 11.298 million per year
from 5th year of operation. The detail is as shown below:
(TK. in`000’)
A. Net sales Revenue (5th year) 19818

B. Inter- firm transaction:

Raw material 7444
Repair & Maintenance 48
Rent, Tax & Insurance 43
Water, Power & Fuel 408
Misc. overhead 140
Store & spares 40
Misc. overhead (Adm.) 3175 11298
Total:  
C. Contribution to GDP (A-B): 8520

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 22
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

CHAPTER-V
FINANCIAL EVALUATION
5.01 Cost of the project:
The total cost of the project has been estimated at Tk.85.02 lac. The summarized
project cost is presented below:
(Tk. in `000’)
Cost in Cost in Total
Item
F/C L/C Cost
01. Land, (Agreement for Advanced) cost 0 2500 2500
02. Building & other civil works 0 1500 1500
03. Local Machinery 0 1912 1912
04. Safety equipment 0 100 100
05. Furniture, Fixture & Equipment 0 1619 1619
06. Erection & Installation 0 200 200
07. Consultant’s Fees 0 100 100
08. Pre-operating Expenses 0 350 350
09. IDCP 0 221 221
Total Cost of the Project : 0 8502 8502

5.02 Means of Finance:

The aforesaid cost is proposed to be financed as under:-

(Tk. in `000’)
Loans:
Bank’s Term Loan 0 4880 4880
IDCP 0 221 221
Total Loans : 5101 5101

Sponsor’s Equity :
3401 3401
Sponsor’s Investment
Total Loans & Equity : 3350 3401 3401

Debt-Equity Ratio 60: 40

Fixed Asset Coverage Ratio (Times) 1.60

5.03. Working Capital:

(Taka in 000)
Total Working Capital Requirement : 1000

Working Capital Loan (70%) : 5132

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 23
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

5.05 Financial Evaluations:

Profitability potential of the project has been estimated for five years of operation
to access the financial viability of the project. The financial projections include
estimation of sales, operation cost, administrative and selling expenses and
financial overheads. The statement showing earning forecast is shown in
Annexure – VI. The main assumptions of earning forecast are as follows:
(a) The factory will operate on the basis of three shifts operation of 8(eight)
hours each per day and 300 working days in a year;

(b) The cost of raw materials has been calculated on the basis of CFR price &
prevailing local market prices while the sales prices of the proposed
products have been considered at local market prices;        

(c) 90% raw materials of the products will be imported under L/C and the
rest quantity will be procured locally.

(d)     The cost of raw materials as well as the selling price of the finished goods
have been kept constant through out the projected years on the
assumptions that any increase in the price of raw materials will be off-set
by the consequential increase in selling prices;

(e) An increment @ 5% per annum has been considered in the calculation of

wages and salaries and the amount of bonus is considered to be equal to
two months pay;

(f) Depreciation has been charged on straight line method on the following  
rates:
Building : 5%
Machinery : 10%
Other assets : 20%
(g) Capacity utilization has been assumed at 65%, 70%, 75%, 80% and 80%
for the first five years of operation;

(h) Stock of work-in-process has been considered for 1 day;

(i) Stock of finished goods has been estimated for 10 days;
(j) As per Govt. policy income tax has been charged @ 5% on net operating
profit for the 1st & 2nd year and @ 10% for the 3rd, 4th & 5th year;
(k) Economic life of the project has been assumed to be 10 (ten) years without
any major replacement.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 24
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

5.06 Based on the assumptions, the Profitability

Forecast may be summarized as follows:
(Taka in 000)
1st year 2nd year 3rd year 4th year 5th year
Capacity utilization 60% 65% 70% 75% 80%
Sales revenue 15539 17144 18471 19793 19818
Gross profit 6650 7276 7895 8540 8522
Net Profit before Tax 3893 3878 4827 5382 5427
Net profit after Tax 3893 3538 4487 5042 5087

Ratios (%) 1st year 2nd year 3rd year 4th year 5th year
Gross profit to sales 43% 42% 43% 43% 43%
Operating profit before tax 31% 28% 31% 32% 31%
Net profit to sales 25% 23% 26% 27% 27%

5.07 Debt Service coverage ratios:

Debt-service coverage ratio worked out as follows :

(Taka in '000')
1st year 2nd year 3rd year 4th year 5th year
Net profit after Tax 3893 3878 4827 5382 5427
Depreciation & write-off 705 705 705 705 705
Interest on loan 930 922 899 874 811
Total : 5528 5505 6431 6961 6943
Liabilities :
Installment on term
loan 393 741 741 741 741
IDCP 44 44 44 44 44
Interest on loan 930 922 899 874 811
Total : 1367 1707 1684 1659 1596
D.S.C.R (Times) 4.05 3.23 3.82 4.20 4.35

5.08 Break-even analysis:

The project is expected to break-even at 53% of the assumed capacity i.e., 40% of
the rated capacity at a sales value of Tk. 104.91 lac. Details are shown in
Annexure-XI.

5.09 Cash flow statement:

Cash flow statement based on profitability estimate has been worked out. The
project is expected to have comfortable cash position which will enable the unit to
repay the dues in time. Details are shown in Annexure-XII.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 25
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance
5.10 Projected Balance Sheet:
The projected balance sheet of the proposed company is enclosed in Annex-XIII
which shows a healthy financial position.

5.11 Financial Internal Rate of Return:

The financial internal rate of return computed following discounted cash flow
technique works out above 25%. Details are shown in Annexure-XIV.

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 26
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - I
Fixed Cost of the Project
Tk. in '000'
Items Cost in Cost Cost to
be Total
        F/C incurred incurred Cost

1. Land & Building

Cost of Agreement 0 2500 0 2500

Registration & Land development 0 0 0 0

Sub-Total:   0 2500 0 2500

02. Building & other civil works:

Details as per Annexure - II 0 800 700 1500

Sub-Total: 0 800 700 1500

04. Local Machinery:

As per Annexure III/B 0 342 1570 1912

Sub-Total: 0 342 1570 1912

05 Cost of Installation:

Civil Mechanical & Electrical

Installation 0 0 100 100
Security deposit for Power 100 100
Sub-Total: 0 0 200 200

06. Safety Equipment:

Firefighting equipment and 0 0 100 100

first Aid box
Sub-Total: 0 0 100 100

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 27
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex-I(Contd..)

07. Office Furniture & other assets: 0 1419 200 1619

Sub-Total: 0 1419 200 1619

08. Consultant's Fees :

Survey, plan and drawing etc. 0 0 100 100

Sub-Total: 0 0 100 100

10. Pre-operating Expenses:

Evaluation Fee 100 100

VAT 0 0
Promotional and legal 0 0 100 100
Documentation fee 0 0 50 50
Trial run 0 0 100 100

Sub-Total: 0 0 350 350

11. Interest During Construction Period:

On Tk.4.39 lac and int @ 9%

per annum for the period of 6 months. 0 0 221 221
Sub-Total:     221 221
Total Fixed Cost of the project:
US$ 0 5061 3441 8502
0      

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 28
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annexure-II
Details of Building and Civil works

Area Unit Cost To be Total Cost

Sl Name of Rate incurred incurred (Tk. in `000')
Specifications
No. Building (Tk.) (Tk. in (Tk. in
`000') `000')
50’ X 30’ = - 300 - (partial),
R.C.C footing, Grade 1,500 Sft plastering
beam, Brick & Pre- (partial), false
fabricated sheet wall, ceiling, fitting
R.C.C floor, 10” brick fixing of door,
partition wall, Pre- window and
Factory Shed fabricated material finishing work
sheet roof over iron all other work
angle truss, False completed.
ceiling, Plastering, About 80% of
fitting-fixing of steel the shed
gate, windows etc. already
completed.
4. Office Design & Decoration - - - 200 200
Building 10’ X 10’
=
100 Sft
5. Godown Finished Goods & Raw - - - 500 500
Material
30’ X 20’ = 600 Sft

6. Guard/ -Do- - - 100 - -

Security
Room (Pre-
fabricated
Shed)
7. Electrificatio - - - 100 - Some
n, Sanitation electrification
& Drainage work of the
etc. factory shed
completed.
8. Internal Road LS - - 100 - Yet to
constructed.
9. Boundary - - 200 - boundary wall
Wall & Steel LS already
Gate completed and
steel gate
fitted.
Total: 800 700

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 29
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

List of Existing Local Machinery

Technical Specification Qty Rate Total Price

(Tk)
Embroidery Machine 3 Pcs 18,000.00 54,000.00

Domestic Machine 2 Pcs 7,000.00 14,000.00

Industrial Machine 6 Pcs 18,000.00 1,08,000.00

Over lock Machine 1 Pcs 13,000.00 13,000.00

Piko Machine 1 Pcs 13,000.00 13,000.00

Tread Embroidery 1 Pcs 20,000.00 20,000.00

Pattern Table 3 Pcs 40,000.00 1,20,000.00

Total Price in 3,42,000.00

List of Machinery to be Procured Locally:

Technical Specification Qty Rate Total Price

(Tk)
Industrial Machine 50 Pcs 20,000.00 10,00,000.00

Over lock Machine 10 Pcs 25,000.00 2,50,000.00

SM Machine 10 Pcs 26,000.00 2,60,000.00

Pattern Table 3 Pcs 20,000.00 60,000.00

Total Price in 15,70,000.00

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 30
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance
List of Existing Office Furniture & Equipments:

Technical Specification Qty Rate Total Price

(Tk)
Official Table (Small) 4 Pcs 6,000.00 24,000.00

Official Table 4 Pcs 15,000.00 60,000.00

Cutting Table 2 Pcs 10,000.00 20,000.00

Display Racks 4 Pcs 30,000.00 1,20,000.00

Sofa Set 1 Pcs 8,000.00 8,000.00

Chair 10 Pcs 1,000.00 10,000.00

Sitting Tool 10 Pcs 500.00 5,000.00

Wall Fan 2 Pcs 1500.00 3,000.00

Selling Fan 10 Pcs 2000.00 20,000.00

Adjust Fan 2 Pcs 2000.00 4,000.00

Iron 5 Pcs 1000.00 5,000.00
Tall Doll 10 Pcs 15,000.00 1,50,000.00
Kids Doll 5 Pcs 8000.00 40,000.00
Fabrics 5000 yards 180 9,00,000.00
Hanger 500 Pcs 100 50,000.00
Total Price in 14,19,000.00

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 31
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annexure-IV

PROJECTED CONSTRUCTION SCHEDULE (IN MONTHS)

2. Documentation completed 1st month

3. Site development 1st month
4. Construction started 1st month
5 Procurement of machinery 3rd month
6. 100% Construction completed 5th month
7. Electrification & Sanitation completed 6th month
7th
8. Normal operation month
Note: It is expected that the project will be completed and put into normal
operation within 6(six)) months from the date of start of civil work

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 32
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annexure-IV

Assesment of Working Capital

Tk. in '000'

Tied up 2nd
A : Current Assets : period 1st Year Year 3rd Year 4th Year 5th Year

Raw materials (imported) 90 days 5955 6451 6948 7444 7444

Raw materials
(Local) 30 days 596 645 695 744 744

Work in Process 2 days 31 33 35 38 38

Finished Goods
Stock 10 days 306 340 365 388 390

Receivables at cost 15 days 444 493 529 563 565

Stores & Spares 90 days 0 0 9 12 12

Other Expenses 30 days 288 304 320 336 338

7619 8266 8901 9526 9532

B : Current
Liabilities :

Bank borrowing 5132 5573 6007 6433 6435

(70% of Raw materials, WIP, Receivable
Finished goods & stores and spares)

Sponsor Margin
(30%) 2487

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 33
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - V
Forecast of Earnings
Tk. In'000'
2nd
Items 1st Year Year 3rd Year 4th Year 5th Year

Sales Revenue 15539 17144 18471 19793 19818

Cost of Goods Sold 8889 9868 10576 11253 11296

Gross Profit 6650 7276 7895 8540 8522

Administrative & Marketing Expenses 1827 2476 2169 2284 2284

Profit before Tax & Interest 4823 4800 5726 6256 6238

Financial Expenses 930 922 899 874 811

Net operating profit 3893 3878 4827 5382 5427

Income tax
(37.50%) 0 0 0 0 0

Net profit after tax 3893 3878 4827 5382 5427

Dividend @ 10% on paid up capital 0 340 340 340 340

Retained earnings 3893 3538 4487 5042 5087

Cumulative retained earnings 3893 7432 11919 16961 22048

Ratios:
Gross Profit to sales 43% 42% 43% 43% 43%
Net profit after int. to sales 31% 28% 31% 32% 31%
Net Profit to sales (after tax) 25% 23% 26% 27% 27%
Debt Service Coverage Ratio 4.20 3.31 3.92 4.41 4.47

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 34
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - V/A
Sensitivity Analysis
Based on 10% increase in Production Cost

Tk. in '000'

3rd 4th 5th

Items 1st Year 2nd Year Year Year Year

Sales revenue 15539 17144 18471 19793 19818

Cost of Goods Sold 9778 10855 11634 12378 12426

Gross Profit 5761 6289 6837 7415 7392

Administrative & Marketing Expenses 1827 2476 2169 2284 2284

Profit before Tax & Interest 3934 3813 4668 5131 5108

Financial Expenses 930 922 899 874 811

Net operating profit before tax 3004 2891 3769 4257 4297

Income tax (37.50%) 0 0 0 0 0

Net profit after return on investment 3004 2891 3769 4257 4297

Debt Service Coverage Ratio 3.51 2.72 3.28 3.61 3.75

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 35
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - V/B

Sensitivity Analysis
Based on 10% decrease in Sales

Tk. in '000'

2nd 5th
Items 1st Year Year 3rd Year 4th Year Year

Sales revenue 13985 15430 16624 17814 17836

Cost of Goods Sold 8889 9868 10576 11253 11296

Gross Profit 5096 5562 6048 6561 6540

Administrative & Marketing Expenses 1827 2476 2169 2284 2284

Profit before Tax & Interest 3269 3086 3879 4277 4256

Financial Expenses 930 922 899 874 811

Net operating profit before tax 2339 2164 2980 3403 3445

Income tax (37.5%) 0 0 0 0 0

Net profit after tax 2339 2164 2980 3403 3445

Debt Service Coverage Ratio 3.01 2.28 2.80 3.08 3.20

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 36
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - V/C
Sensitivity Analysis
Based on 5% increase in Production Cost and 5% decrease in Sales price

Tk. in '000'

2nd 5th
Items 1st Year Year 3rd Year 4th Year Year

Sales revenue 14762 16287 17547 18803 18827

Cost of Goods Sold 9333 10361 11105 11816 11861

Gross Profit 5429 5926 6442 6987 6966

Administrative & Marketing Expenses 1827 2476 2169 2284 2284

Profit before Tax & Interest 3602 3450 4273 4704 4682

Financial Expenses 930 922 899 874 811

Net operating profit 2672 2528 3374 3830 3871

Income tax
(37.50%) 0 0 0 0 0

Net profit after tax 2672 2528 3374 3830 3871

Debt Service Coverage Ratio 3.26 2.50 3.04 3.35 3.47

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 37
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - VI
Sales Estimate
Tk. in '000'
2nd 5th
Items 1st Year Year 3rd Year 4th Year Year

Revenue at rated capacity 26425 26425 26425 26425 26425

Capacity Utilization 60% 65% 70% 75% 75%
Revenue at Capacity
Utilization 15855 17176 18498 19819 19819
Add: Opening stock of WIP for 1 days 0 53 57 62 66
Total Revenue 15855 17229 18555 19881 19885
Less: Closing Stock of WIP for 1 days 53 57 62 66 66
Sales revenue 15802 17172 18493 19815 19819
Add: Opening stock of FG for 5 days 0 263 291 313 335
Sales revenue 15802 17435 18784 20128 20154
Less: Closing Stock of FG for 5 days 263 291 313 335 336
Total Sales revenue 15539 17144 18471 19793 19818

Assumptions:

01. Operation time: Two shifts of 8 hours each per day and 300 working days in a year.
02. Sales Revenue:

Unit
Item     Unit Quantity Price Total Tk.
          in Tk. in '000'

500
A) Kurtis pcs 6000 3000
300
B) Long Gown/Baby pcs 5000 1500
280
C) Blouse pcs 2000 560
2000 220
D) Kids Dress pcs 440
850
F) Sherwany pcs 2500 2125
350
G) Zwdoshi pcs 2500 875
750
I) Lehenga pcs 2000 1500
450
J) Fotua pcs 4000 1800
750
K) Borka/KamIz pcs 7000 5250
550
L) Panjabi pcs 4500 2475
600
M) Saree & All over pcs 8000 4800
175
N) Salwar/Paijama pcs 8000 1400
350
O) Wedding Dress pcs 2000 700
Total 55500 . 26425
======

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 38
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - VII
Cost of Goods Sold
Tk. in '000'

2nd 5th
Items 1st Year Year 3rd Year 4th Year Year

Raw Materials 5955 6451 6948 7444 7444

Wages & Salaries 2492 2617 2742 2865 2884
Stores & Spares 0 0 30 40 40
Repair &
Maintenance 18 28 38 48 48
Depreciation 291 291 291 291 291
Water, Power, Fuel &
Lubricant 327 354 381 408 408
Rent, Tax & Insurance 43 43 43 43 43
Other Expenses 100 120 130 140 140

Cost of Production 9226 9904 10603 11279 11298

Add: Opening Stock of WIP for 1 days 0 31 33 35 38

Total Work in
Process 9226 9935 10636 11314 11336

Less: Closing Stock of WIP for 1 days 31 33 35 38 38

Cost of Goods manufactured 9195 9902 10601 11276 11298

Add: Opening Stock of FG for 5 days 0 306 340 365 388

Goods available for sale 9195 10208 10941 11641 11686

Less: Closing Stock of FG for 10 days 306 340 365 388 390

Cost of goods sold 8889 9868 10576 11253 11296

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 39
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Assumptions: Annex-VII (Cond)

Requirement of Imported Raw materials
Tk. in '000'
Item Unit Quantity CIF price CFR price Total Other Total
in US$ in Tk. CIF Value Charge 5% Cost
------------------------------- ---------- -------- ----------- --------- ---------- ----------- ----------

Total:   0 0
Requirement of Local Raw materials: (Tk. In '000')
Item Unit Quantity Cost Total
price in
    Tk. cost

Cotton embroidery thread Cone 7000 140 980

Polyester embroidery thread Cone 7000 140 980
Lorex embroidery thread Cone 7000 160 1120
Needle LS 500
Inter lining roll 2000 450 900
Bobbin Thread roll 2000 450 900
Spray pcs 4600 150 690
Both side tape pcs 4230 70 296
Felt fabrics yards 4880 90 439
Tewel fabrics yards 7000 160 1120
Lezer cutting pcs 600000 2 1200
Diese cutting pcs 400000 2 800
0
Total: 9925

Raw Materials 1st Year 2nd Year 3rd Year 4th Year 5th Year
Requirements of Imported RM 0 0 0 0 0
Requirements of Local RM 5955 6451 6948 7444 7444
Total requirement 5955 6451 6948 7444 7444
Inventory (90 days) 0 0 0 0 0
Inventory (30 days) 596 645 695 744 744
Wages & Salaries
Technical: Tk. in '000'
Name of the Post No. of Monthly Total
Post Salary wages/salary
Designer 1 20000 240
In-Charge 15000
1 180
8000
Skilled labor 5 480
7000
Semi skilled labor 7 588
6000
Unskilled labor 7 504
Packing Worker 6000
2 144
23   2136

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 40
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance
Annexure-VII (Contd..)
1st Year 2nd Year 3rd Year 4th Year 5th Year

Salaries 2136 2136 2136 2136 2136

Increment 5% 0 107 214 320 336

Total 2136 2243 2350 2456 2472

------ ------ ------ ------ ------
Bonus 2 months basic 356 374 392 409 412
------ ------ ------ ------ ------
Total Salary 2492 2617 2742 2865 2884
==== ==== ==== ==== ====
Water :

Sources of Water : Deep tube-well

Annual requirements in liter 0
Power :
Connected load : 15 KW
Maximum Demand : 15 KW
Operation Hour : 16
Cost per Kwa in peak hour : 4.41
VAT : 5%
Demand charge per month in Tk. : 5.00
Service Charge per month in Tk. : 360.00
Tk. in
'000'
Cost of Power : 318
VAT
15% : 48
Sub-
Total: 366
Demand Charge : 1
Service Charge : 4
Fuel Lubricants :

Item Unit Quantity Unit Price Total Tk.

    in Tk. in '000'

Grease Kg. 50 220 11

Lubricating oil Liter 50 200 10
Diesel Liter 300 85 26
CNG Cu M 5000 25 125
----------
172
----------

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 41
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance
Annex - VII (Contd..)

2nd 3rd
Requirements 1st Year Year Year 4th Year 5th Year

Water 0 0 0 0 0
Power 366 366 366 366 366
Fuel & Lubricant 172 172 172 172 172
Capacity Utilization 60% 65% 70% 75% 75%
Requirements at attainable capacity 322 349 376 403 403
Demand Charge 1 1 1 1 1
Service Charge 4 4 4 4 4

Total Fuel & Lubricants 327 354 381 408 408

Stores & Spares:

On Machinery cost 0 0 30 40 40
(@ 1.50% & 2.00% 3rd and 4th year)
Repairs & Maintenance:
On Machinery Cost 10 20 30 40 40
(@0.5%, 1%, 1.50% and 2.00%)
On Building Cost (@0.5% each year) 8 8 8 8 8

18 28 38 48 48

Rent & Insurance:

Insurance, Rent 0.50% of the fixed cost of the
project 43 43 43 43 43
Depreciation:

Item Amount Depreciation Depreciated

Rate Amount

Building 1600 5.00% 80

Machinery 2112 10.00% 211

291

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 42
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - VIII
General, Administrative & Selling Expenses
Tk. in '000'

2nd 5th
Item 1st Year Year 3rd Year 4th Year Year

Directors Remuneration 0 0 0 0 0
Salary (Administration) 1078 1132 1185 1240 1240
Post, telephone & telegraph 50 60 70 80 80
Stationery & Printing 60 70 80 90 90
Travelling & Conveyance 100 150 160 170 170
Depreciation & Write off 414 414 414 414 414
Audit Fee 25 500 100 120 120
Miscellaneous Expenses 100 150 160 170 170

Total 1827 2476 2169 2284 2284

Assumptions:
Salary & Allowances:
Name of the Post No. of Monthly Total Tk.
Post Salary in '000'
Manager (Adman. ) 1 20000 240
Marketing Manager 1 15000 180
Accountant cum cashier 1 12000 144
Store keeper 1 10000 120
Computer operator 1 8000 96
Guard 1 6000 72
Peon/Sweeper 1 6000 72
---- -----
7 924
---- -----
3rd
Item ` 1st Year 2nd Year Year 4th Year 5th Year
Salaries 924 924 924 924 924
Increment 5% 0 46 92 139 139
Total 924 970 1016 1063 1063
Bonus 2 months
basic 154 162 169 177 177
Total Salary 1078 1132 1185 1240 1240
Depreciation & Write Off

Amount Depreciation Depreciated

Rate Amount
Other Assets 1719 20.00% 344
Pre-operating Expenses 350 20.00% 70
Vehicle 0 20.00% 0
Total : 414

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 43
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - IX

Estimate of financial Expenses and Repayment schedule

Tk. in '000'

4th
Items 1st Year 2nd Year 3rd Year Year 5th Year
Interest on Term
Loan 424 376 314 251 188
Interest on CC loan 462 502 541 579 579
Instalment of IDCP 44 44 44 44 44
Total Financial Expenses 930 922 899 874 811

4th
Interest on Term Loan: 1st Year 2nd Year 3rd Year Year 5th Year

Principal 4880 4532 3835 3138 2441

Instalment 349 697 697 697 697

Balance 4532 3835 3138 2441 1744

------
------- ------- ------- - -------
Interest @ 9% p.a. 424 376 314 251 188
------
------- ------- ------- - -------
Interest During Construction Period (IDCP):

Principal 221 177 133 89 45

Instalment 44 44 44 44 44

Balance 177 133 89 45 1

Interest on Cash Credit:

Principal 5132 5573 6007 6433 6435

Interest @9% p.a. 462 502 541 579 579

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 44
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annexure- X (Contd..)
Amortization Schedule of Term loan
Tk. in 000
Instalment Instalment Principal Principal Interest
Due month No Instalment Instalment
3 1 122697 0 5521
6 2 122697 0 5521
9 3 122697 0 5521
12 4 4880 181 110 291
15 5 4699 181 106 286
18 6 4519 181 102 282
21 7 4338 181 98 278
24 8 4157 181 94 274
27 9 3976 181 89 270
30 10 3796 181 85 266
33 11 3615 181 81 262
36 12 3434 181 77 258
39 13 3253 181 73 254
42 14 3073 181 69 250
45 15 2892 181 65 246
48 16 2711 181 61 242
51 17 2530 181 57 238
54 18 2350 181 53 234
57 19 2169 181 49 230
60 20 1988 181 45 225
63 21 1807 181 41 221
66 22 1627 181 37 217
69 23 1446 181 33 213
72 24 1265 181 28 209
75 25 1084 181 24 205
78 26 904 181 20 201
81 27 723 181 16 197
84 28 542 181 12 193
87 29 361 181 8 189
90 30 181 181 4 185

Total 4880 18100 6417

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 45
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - X
Break Even Analysis
Tk. in '000'

01. Sales and Service revenue at 80% capacity (4th year) 19793
02. Total Cost: Operational, Administrative and
Financial 14393

Items Total Fixed Variable

cost Cost Cost

Raw Materials 7444 0 7444

Wages & Salaries 2884 2307 577
Stores & Spares 40 24 16
Repairs & Maintenance 48 29 19
Depreciation & Write Off 705 705 0
Water, Power &
Fuel 408 327 82
Rent, Tax & Insurance 43 43 0
Director
remuneration 0 0 0
Other Expenses 140 112 28
Salary (Administration) 1240 1240 0
Postage, telephone & telegraph 80 48 32
Stationery &
Printing 90 54 36
Travelling & Conveyance 170 136 34
Audit
Fee 120 120 0
Miscellaneous Expenses 170 136 34
Financial Expenses 811 811 0

Total : 14393 6091 8302

P/V Ration : Sales-Variable cost/ Sales 0.5806

Break Even Point (Sales) = Fixed Cost/P/V Ratio 10491 53% of capacity utilization
40% of rated capacity
Break Even Point (cash) = 9277 47% of capacity utilization
35% of rated capacity

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 46
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - XI
Projected Fund Flow Statement
Tk. in '000'

1st 2nd 3rd 4th 5th

Sources of Fund   Constr. Year Year Year Year Year
      Year          
Cash Inflow:
Paid-up Capital 3401 - - - - -
Net Profit before Tax & Interest - 4823 4800 5726 6256 6238
Increase in current liabilities - 5132 441 433 426 3
Depreciation & write off - 705 705 705 705 705
Bank's term loan 4880 - - - - -
Interest during construction
period 221 - - - - -

Total Cash Inflow 8502 10660 5947 6864 7387 6946

Cash Outflow:

Capital Expenditure 8152 - - - - -

Preliminary Expenses 350 - - - - -
Increase in current assets - 7619 647 635 625 6
Repayment of term loan - 349 697 697 697 697
Repayment of Interest - 930 922 899 874 811
Investment - 0 0 0 0 0
Dividend - 0 340 340 340 340

Total Cash Outflow: 8502 8942 2650 2615 2580 1898

Cash Surplus/deficit 0 1718 3297 4249 4808 5048

Opening Balance of Cash 0 0 1718 5015 9265 14072
Closing Balance of Cash 0 1718 5015 9265 14072 19121

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 47
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - XII
Projected Balance Sheet
Tk. in '000'
2nd
Properties & Assets Constr.Year 1st Year Year 3rd Year 4th Year 5th Year

Current Assets:

Cash & Bank Balance 0 1718 5015 9265 14072 19121

Other Current Assets - 7619 8266 8901 9526 9532

Total Current Assets 0 9338 13282 18166 23598 28652

Fixed Assets:

Preliminary expenses 350 280 210 140 70 0

Fixed Assets (net) 8152 7517 6882 6247 5612 4977

Total Fixed Assets 8502 7797 7092 6387 5682 4977

Total Assets 8502 17135 20374 24553 29280 33629

======= ======= ====== ======= ======= =======
Capital and Liabilities:

Current Liability:

Commercial Bank's Loan - 5132 5573 6007 6433 6435

Total Current Liabilities 0 5132 5573 6007 6433 6435

Long Term Liabilities:

Bank's term loan 4880 4532 3835 3138 2441 1744

Interest during constant.
period 221 177 133 89 45 0

Total Long-Term
Liabilities 5101 4709 3968 3227 2486 1744

Owner's Equity :

Paid-up capital 3401 3401 3401 3401 3401 3401

Retained earnings - 3893 7432 11919 16961 22048

Total Equity 3401 7294 10832 15320 20362 25449

Total Capital &

Liabilities 8502 17135 20374 24553 29280 33628
====== ====== ====== ====== ====== ======

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 48
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex-XIII
Financial Rate of Return
Tk. in '000'

Year Investment Benefit Net Cash

Flow

0 8281 0 -8281
1 7332 4598 -2733
2 631 4583 3953
3 619 5532 4914
4 609 6087 5479
5 0 6132 6132
6 0 4833 4833

             
Financial Rate of Return = 25%  
             

Assumptions:

01. The economic life of the project has been estimated to be 10 years without
any major replacement.

02. The fixed cost of the project has been estimated at Tk.85.02 lac

03. Benefit of the project has been estimated as appended:

Depreciation/write
Operating Net Profit off Total
Year

1 3893 705 4598

2 3878 705 4583
3 4827 705 5532
4 5382 705 6087
5 5427 705 6132
6 5427 705 6132
7 5427 705 6132
8 5427 705 6132
9 5427 705 6132
10 5427 705 6132

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 49
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY
H U R F A S H I O N. Project Proposal For Finance

Annex - XIII (Contd..)

04. Recovery of capital i.e. salvage value of the project at the 10th year

Item Cost Recovery Total

Percent

Land 2500 100% 2500

Building 1500 10% 150
Machinery 1912 5% 96
Inventories 2088 100% 2088
-------
4833
------

Inventories:

Year Amount

0 0
1 7332
2 631
3 619
4 609
5 -7102
---------------- ------------------
2088

P R E - I N V E S T M E N T F E A S I B I L I T Y R E P O R T ON 50
BUSINESS PLAN OF A BOUTIQUE SHOP BOUTIQUE GALLERY