Project Description – Preparation of Feasibility Study to Assess the Viability of Establishing a Steel Re-Rolling Mill

Amin Muhammad Group engaged Young Consultants (YC) to conduct a comprehensive feasibility study to assess the viability of establishing a steel re-rolling mill in Dhaka, Bangladesh. The assignment aimed to evaluate the proposed industrial investment from technical, managerial, marketing, financial, economic, socioeconomic, and environmental perspectives. The study was designed to provide the client with a sound basis for investment planning and decision-making by examining the proposed mill’s production requirements, machinery and equipment, raw material and workforce availability, market potential, infrastructure needs, and financial sustainability.

The management and technical assessment focused on evaluating the strength and competence of the proposed mill’s core management team and key technical personnel. YC examined the technical suitability of the proposed manufacturing processes, machinery, and equipment, alongside the availability of essential raw materials and a suitably skilled workforce. The assessment also considered the suitability of the proposed project location, its connectivity to transport infrastructure, and the availability and requirements of essential utilities needed to support efficient and reliable production operations.

The market assessment examined the commercial prospects of the proposed steel re-rolling mill through an analysis of demand and supply conditions, industry and sector trends, and the competitive environment. The study included competitor analysis, supply and value chain assessment, and consideration of potential market opportunities. These findings supported the evaluation of the proposed mill’s market positioning and informed the development of an appropriate marketing strategy, taking into account the commercial factors likely to influence the enterprise’s competitiveness and long-term sustainability.

The financial and economic assessment evaluated the project’s investment requirements, anticipated operating performance, and potential financial returns. YC examined the estimated project cost, proposed debt-to-equity structure, and loan repayment schedule. The financial analysis incorporated financial ratio analysis, break-even analysis, return on investment (ROI), and debt service coverage ratio (DSCR) to assess the proposed mill’s potential profitability, operational viability, and ability to meet its financing obligations. The broader feasibility assessment also addressed the socioeconomic and environmental dimensions of the proposed industrial investment.

The assignment culminated in the preparation of a detailed feasibility study report integrating the findings of the technical, managerial, market, financial, economic, socioeconomic, and environmental assessments. The report provided Amin Muhammad Group with an integrated evaluation of the key operational requirements, market opportunities, investment considerations, and potential risks associated with establishing a steel re-rolling mill in Dhaka, supporting informed consideration of the proposed investment.

Key Assignment Details

Client: Amin Muhammad Group
Country and location: Dhaka, Bangladesh
Assignment period: February 2008 – April 2008
Assignment duration: 3 months
Total staff input: 3 staff-months
Associated consultants: Not specified
Key professional staff: Mr. M. Zakir Hossain – Project Manager; S. M. Firoz Hassan – Coordinator