A feasibility study for a shoe manufacturing unit (2)

Project profile

Opportunity Rationale

Pakistan is the 6th most populous country in the World and according to an estimate with an average population growth of approximately 1.6 %. The population of Pakistan is estimated about 187 million in the year 2011'. Around 55% of the total population comprises of males. Shoes are a basic necessity of every individual and Pakistan has a relatively high population growth rate. This provides an opportunity for the investor to set up a gents shoes manufacturing unit to meet the demands of this growing sector and earn substantial profits.

Project Brief

This document provides details for setting up gent's shoes manufacturing unit. The unit will have the capacity to produce approximately 240 pairs of gent's shoes per day on single shift basis. For achieving quality and consistency in the production, some second-hand machinery will be used. This machinery will be acquired locally (Gujranwala and local market).

Proposed Business Legal Status

The business legal status of the proposed project can either be sole proprietorship or partnership. Additionally, it can also be registered under the Companies Ordinance, 1984 with the Securities & Exchange Commission of Pakistan. The selection depends upon the choice of the Entrepreneur. This feasibility assumes the legal status to be Sole Proprietorship.

Proposed Capacity

The proposed project is capable to produce an average of 240 pairs of gent's shoes per day. Considering the market demand and Pakistan's population growth trends, initially the project would easily be able to produce and sell the quantity, which is required for the project to be economically viable.

PRODUCT FEASIBILITY:

If you want to establish a business in the footwear sector, 2022 is the year to do it. The global economy is expected to develop at its fastest rate starting this year, making it a perfect moment to start a shoe manufacturing company. The worldwide footwear business industry is predicted to increase at a compound annual growth rate (CAGR) of 2.5 % between 2014 and 2023.

Industry overview

The any human you find in any street in Pakistan, and in any developed countries and of course the average person you found in developing and undeveloped countries would put on one form of footwear or the other.

Shoes cum footwear could be pure leather, synthetic leader, fabric or rubber. This goes to show that there is indeed a very large market for shoes in our world; hence loads of investors cum aspiring entrepreneur are pitching their tent in the shoe & footwear manufacturing industry.

Businesses in the shoe and footwear industry manufacture footwear for men, women and children. They are involved in manufacturing shoe and footwear in different forms such as rubber and plastic footwear, protective footwear (Safety boots), house slippers and slipper socks. Over and above, the shoe and footwear manufacturing industry are a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale in small shoe and footwear making workshop or you can choose to start on a large scale with a standard shoe and footwear manufacturing factories.