A feasibility study for a shoe manufacturing unit (1)

A feasibility study for a shoe manufacturing unit (1)

This feasibility study is for setting up of a semi-mechanized shoe manufacturing unit exclusively for gents. Footwear manufacturing is a process of manufacturing shoes according to the market need in respect to design and size, trends etc. The unit is assumed to be set up in Pirwadhai, Rawalpindi.

Shoe manufacturing industry can be broadly categorized into two main segments i.e., organized and unorganized sector. The organized sector comprises of fully mechanized shoe manufacturing units. These mainly include Service Shoes, Xara soft, X-Way, Mockerman and Marito etc. The unorganized sector comprises of labour intensive units having semi-mechanized manufacturing facilities, with relatively modest capital investments, as compared to fully mechanized plants.

The total project cost for setting up this workshop is estimated at Rs. 8.0 million. The project is financed through 100% equity. The legal business status of this project is proposed as 'Sole Proprietorship'.

The unit is proposed to operate 12 hours every day. The proposed maximum capacity of the unit is 240 pairs per day.

PURPOSE OF THE DOCUMENT

The objective of the feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. This 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, and production, marketing, finance and business management. The document also provides sectoral information and international scenario, which have some bearing on the project itself.

The purpose of this document is to facilitate potential investors of Gents Shoes Manufacturing unit by providing them a macro and micro view of the business with the hope that the information provided herein will aid potential investors in crucial investment decisions.

Our report is based on the information obtained by us from industry sources as well as our discussions with businessmen. In the financial model, since forecast/projections relate to the future periods, actual results are likely to differ because of the events and circumstances that do not occur as expected.