Feasibility analysis of a textile project -a case study of a yarn dyed woven textile

Abstract

According to the constitution of Bangladesh, the provision for basic necessities of life including food, clothing, shelter, education and medical care have been recognized as fundamental responsibility of state (Article 15). Thanks to Bangladesh textile and apparel industries for their contribution to fulfill one of these basic needs. RMG is our major export product. About 80% of foreign earnings come from RMG. Our national economy mostly depends upon this RMG sector. But it is a matter of great sorrow that this RMG sector depends upon foreign raw materials (fabric). This dependency may incur a great risk. In this thesis feasibility of a yarn dyed woven textile has been studied. In this regard, technical feasibility and financial feasibly have been performed. For the study of technical feasibility different technical aspects have been discussed, which includes civil construction, local and imported machinery, power consumption, raw materials production etc. For the study of financial feasibility cost of the project, means of finance, working capital assessment, annual planned production & estimated sales, cost of goods sold, raw material cost, salaries and wages, utility cost, projected income, break even analysis etc. have been calculated. From technical point of view the project is found feasible. From the analysis of IRR, NPV, Benefit Cost Ratio and Discounted Pay Back Period, it is found that the project is also financially feasible.