Preparation of Feasibility Study to Assess the Viability of Setting Up a Paper Mill

The assignment involved preparing a detailed feasibility study to assess the commercial viability and sustainability of establishing a paper mill in Bangladesh for Mother Paper Mills, a private limited company based in Gulshan, Dhaka. The study was designed to evaluate the proposed project from financial, economic, marketing, technical, socioeconomic, and environmental perspectives, providing a comprehensive basis for assessing its investment potential and operational feasibility.

Scope of Services Provided

The assignment included a comprehensive assessment of the proposed paper mill’s management capacity, technical requirements, market potential, and financial viability. The principal activities undertaken were as follows:

Management Assessment: Evaluated the strength and competence of the core management team and the qualifications and capabilities of key technical personnel required to operate the proposed paper mill effectively.
Technical Feasibility Assessment: Examined the suitability of the proposed manufacturing processes, machinery, and equipment, including the availability of raw materials and skilled labour necessary for production.
Site and Infrastructure Assessment: Assessed the suitability of the proposed project location, its connectivity to transport infrastructure, and the requirements for essential utilities, including their availability to support industrial operations.
Market and Commercial Analysis: Evaluated market prospects through an analysis of demand and supply, industry and sector conditions, competitor positioning, potential marketing strategies, and the structure of the supply and value chains.
Financial and Investment Analysis: Assessed the project’s financial performance and investment viability through financial ratio analysis, break-even analysis, return on investment (ROI), debt service coverage ratio (DSCR), project cost estimation, debt-equity structure, and loan repayment scheduling.
Socioeconomic and Environmental Assessment: Considered the broader socioeconomic and environmental aspects of the proposed investment as part of the overall feasibility assessment.
Key Deliverable

A detailed feasibility study report covering the financial, economic, marketing, technical, socioeconomic, and environmental dimensions of the proposed paper mill, providing an evidence-based assessment of its viability as an industrial investment.

Assignment Details

Client: Mother Paper Mills, a private limited company
Location: Dhaka, Bangladesh
Duration: 3 months (May 2007–July 2007)
Total Staff-Months: 3
Senior Professional Staff: Mr. M. Zakir Hossain – Project Manager; S. M. Firoz Hassan – Coordinator