Finance Project

Table of Contents

Executive Summary2

Industry Analysis2

Market Analysis4

Competitor Analysis4

Financial Model5

Cost Structure6

  Fixed Assets7

  Inventory 7

  Loan7

  Taxation7

  Sales and Revenue7

  Statement of Cash Flow8

  Operating Cash Flow8

 Scenario Analysis8

 Sensitivity Analysis9

 Ratio Analysis12

Future aspirations14

Executive Summary

Handmade carpets have a very large market in Pakistan and around the world. About $200 million of Pakistan’s exports are made up of handmade carpets which are widely used for decorative purposes. Recently, Pakistan has faced a tough competition in international market from countries like India and Bangladesh because of poor manufacturing standards ultimately resulting in decrease in revenue being generated from exports of carpets. These conditions identify a need for handmade carpet manufacturing unit which is equipped better with modern facilities to compete in the international market.

Industrial Analysis

At Saqafat carpets we will make 3 different sizes of carpets in 14 knot and 15 knot. 14 knot and 15 knot means the number of knots on every inch of the carpet. 15 knot carpet is better than 14 knot and expensive as it requires more labour hours and material  

Most of the manufacturing units are located in interior Sindh (Tharparkar, Mipurkhas, Hyderabad-Tharparkar, Hyderabad), Peshawar and in vicinity of Quetta. We plan to start our business in Mirpur-Khas initially. Mirpur-Khas is about 230km from Karachi and has all the basic infrastructural facilities. These facilities include power supply, paved roads, potable water, security, sewerage system and above all an easy access to raw material and labour used in carpet manufacturing.

Since, Pakistani handmade carpets are famous in different countries across the world; we intend to export them. Presently the current sales of carpet industry are of about 12,200 million rupee. The success factor for Pakistani carpets in international market is their aesthetically pleasing design, colour and pattern which led them to win different awards.  For exporting the carpets we will have to pack them in durable and attractive packaging so they can reach customer markets without being damaged and are able to attract the customers. We will transport our carpets to Karachi from where we sell it directly to export dealer.