Establishing an Industrial Project
Steps to be followed by an entrepreneur
- Collect maximum information about the project or products proposed to be manufactured
- For the purpose, collect/prepare a project profile which would outline brief information on the project or products to be manufactured
- Decide location where the project is likely to set up
- Learn about the procedures and formalities required to be completed before taking up physical implementation of the project
Get a detailed project report prepared which interalia should include following components
- Market potential of the products to be manufactured
- Characteristics of the Location
- Land and building requirements
- Requirements and availability of Plant and Machinery
- Requirement of other utilities namely power, water, steam etc.
- Assessment of Working Capital requirements
- Technology tie-up
- Raw materials with specifications
- Manpower requirements
- Schedule of Implementation
- Estimates of Project Cost
- Tie up of means of finance
- Cost of Production and profitability
- Break even Point
- Internal Rate of Return
- Cash flow
- Debt service Coverage Ratio to establish financial viability
- Economic Benefits
