Professional Documents
Culture Documents
Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost
May, 2014
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
Table of Contents
1. DISCLAIMER......................................................................................................................... 2
2. PURPOSE OF THE DOCUMENT ......................................................................................... 3
3. INTRODUCTION TO SMEDA ............................................................................................. 3
4. INTRODUCTION TO SCHEME ........................................................................................... 4
5. EXECUTIVE SUMMARY ..................................................................................................... 4
6. BRIEF DESCRIPTION OF PROJECT................................................................................... 4
7. CRITICAL FACTORS............................................................................................................ 5
8. INSTALLED AND OPERATIONAL CAPACITIES ............................................................ 5
9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT........................................................ 6
10. POTENTIAL TARGET MARKETS ...................................................................................... 6
11. PROCESS FLOW ................................................................................................................... 6
12. PROJECT COST SUMMARY ............................................................................................... 6
12.1 Project Economics ......................................................................................................7
12.2 Project Financing ........................................................................................................7
12.3 Project Cost .................................................................................................................7
12.4 Space Requirement ....................................................................................................8
12.5 Machinery and Equipment .........................................................................................8
12.6 Human Resource Requirement ................................................................................9
12.7 Revenue Generation ..................................................................................................9
12.8 Other Costs ..................................................................................................................9
13. CONTACTS - SUPPLIERS .................................................................................................. 10
14. ANNEXURES ....................................................................................................................... 11
14.1 Annexure 1 – Income Statement ............................................................................11
14.2 Annexure 2 – Balance Sheet ..................................................................................12
14.3 Annexure 3 – Cash Flow Statement ......................................................................13
14.4 Useful Project Management Tips ..........................................................................14
14.5 Useful Links ..............................................................................................................15
15. KEY ASSUMPTIONS .......................................................................................................... 16
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a general
idea and information on the subject. Although, the material included in this document is
based on data / information gathered from various reliable sources; however, it is based
upon certain assumptions which may differ from case to case. The information has been
provided on as is where is basis without any warranties or assertions as to the
correctness or soundness thereof. Although, due care and diligence has been exercised
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, its employees or agents do not assume any liability for
any financial or other loss resulting from this memorandum in consequence of
undertaking this activity. The contained information does not preclude any further
professional advice. The prospective user of this memorandum is encouraged to carry
out additional diligence and gather any information which is necessary for making an
informed decision, including taking professional advice from a qualified consultant /
technical expert before taking any decision to act upon the information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 2
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
3. INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was established in
October 1998 with an objective to provide fresh impetus to the economy through
development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the national
income, through development of the SME sector, by helping increase the number, scale
and competitiveness of SMEs" , SMEDA has carried out sectoral research to identify
policy, access to finance, business development services, strategic initiatives, and
institutional collaboration and networking initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment has
been a hallmark of SME facilitation by SMEDA.
Concurrent to the prefeasibility studies, a broad spectrum of business development
services is also offered to the SMEs by SMEDA. These services include identification of
experts and consultants and delivery of need based capacity building programs of
different types in addition to business guidance through help desk services.
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 3
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
4. INTRODUCTION TO SCHEME
‘Prime Minister’s Youth Business Loan’ program, for young entrepreneurs, with an
allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
subsidised financing at 8% mark-up per annum for one hundred thousand (100,000)
beneficiaries, through designated financial institutions, initially by the National Bank of
Pakistan (NBP) and the First Women Bank Ltd. (FWBL).
Loans from Rs. 0.1 million to Rs. 2.0 million with tenure up to 8 years inclusive of 01
year grace period and a debt: equity of 90:10 will be disbursed to SME beneficiaries
across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwah, Balochistan, Gilgit
Baltistan, Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA).
5. EXECUTIVE SUMMARY
• Location: The recommended area for the proposed catering and decorating
service business is the middle income locality in cities like Karachi, Lahore,
Rawalpindi, Hyderabad, Faisalabad, Multan, Peshawar and Quetta etc. This
business can also be undertaken in all small 2nd tier towns in addition to
suburban towns of large cities.
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 4
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
• Product: The proposed project will offer high quality food & catering services to
events such as weddings, anniversaries and corporate events etc.
• Target Market: Target customer for catering business would be event
management companies, corporate and individual clients, marriage hall & lawns
etc.
• Employment Generation: The proposed project will provide direct employment
to 06 people. Financial analysis shows that the business shall be profitable from
the very first year of operation
7. CRITICAL FACTORS
For the proposed project, it is assumed that on an average 50 events will be catered
during a year with an average of 400 guests per event. The proposed business can also
serve up to 1,000 or more guests per event. Marquee and other decorative arrangement
for big events can be outsourced to multiple decorators.
Table 1: Project Economics
Events No. of Events in a Year %
Weddings 15 30
Mehndi & Mayun 15 30
Anniversaries 5 10
Corporate Events 3 07
Others 12 23
Total 50 100
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 5
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
The Pakistani economy is becoming increasingly service-oriented and over the past
several decades the food service industry is growing substantially. There has been a
mushroom growth of marriage halls, event management complexes in the past decade
across all major cities and towns therefore there is a potential for proposed catering and
decorative service business to be established in cities like Karachi, Lahore, Rawalpindi,
Hyderabad, Faisalabad, Multan, Peshawar and Quetta etc.
The recommended areas for the proposed business will be cities like Karachi, Lahore,
Rawalpindi, Hyderabad, Faisalabad, Multan, Peshawar and Quetta etc. This business
can also be done in all small 2nd tier towns in addition to suburban towns of large cities.
Target customers for the said business would be Corporate and Individual clients, Event
Management Companies, Marriage Halls & Lawns etc.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as appendix
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 6
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
The following table shows Internal Rate of Return, Net Present Value and Payback
Period.
Table 2: Project Economics
Description Details
Internal Rate of Return (IRR) 27%
Payback Period (years) 3.8
Net Present Value (NPV) Rs. 3,026,629
Returns and profitability are highly dependent on regular occurrence of events, good
marketing practices, quality of services and more importantly good quality and taste of
food.
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 7
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 8
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
The table above provides detail of human resources required to run a Catering and
Decoration Services Business. Salaries of all employees are estimated to increase at
10% annually.
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 9
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
• KITCHEN CARE
# 103, Golden Plaza F-7, Blue Area, Islamabad, Capital, Pakistan
Phone: +92-51-32875226
Fax: +92-51-32277176
• PRESTIGE KITCHENS
Kehkashan Shopping Arcade Block-7, Clifton, Karachi 75600, Sindh, Pakistan
Phone: +92-21-35862978 / 35862839
Fax: +92-21-5871814
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 10
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
14. ANNEXURES
14.1 Annexure 1 – Income Statement
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 11
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 12
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 13
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
Technology
• List of Equipment
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 14
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 15
Pre-Feasibility Study Catering and Decorating Services (Rs.1.22 Millions)
• Government of Balochistan
www.balochistan.gov.pk
• Government of Gilgit Baltistan
www.gilgitbaltistan.gov.pk
• Government of Azad Jammu Kashmir
www.ajk.gov.pk
• Trade Development Authority of Pakistan (TDAP)
www.tdap.gov.pk
• Securities & Exchange Commission of Pakistan (SECP)
www.secp.gov.pk
• Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
www.fpcci.com.pk
• State Bank of Pakistan (SBP)
www.sbp.org.pk
SMEDA Services / Information related to PM’s Youth Business Loan are FREE OF COST - 16