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Pre-Feasibility Study

(BIO-TRIB (Tribulus Terrestris Extract) Formulation and Preparation)

Pakistan Council of Scientific and Industrial Research (PCSIR) Laboratories


Complex Peshawar
(Herbal/Pharmaceutical Pilot Plant, Medicinal Botanic Centre)
University Road Peshawar
Ph No: 091-9216233
Fax No: 091-9216230
Note: All services/information related to PMs youth Business Loan are free of cost
April-2014

1. DISCLAIMER
In this document, we provide the information regarding the subject matter. The material
of whole the document is based upon the data and information collected from various
reliable sources 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. Medicinal Botanic Centre, PCSIR Peshawar, its employees 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.
2. PURPOSE OF THE DOCUMENT
The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs
in project identification for investment. The project pre-feasibility may form the basis of
an important investment decision and in order to serve this objective, the document/study
covers various aspects of project concept development, start-up, and production,
marketing, finance and business management.
The purpose of this document is to facilitate potential investors by providing them a
general understanding of the business with the intention of supporting potential investors
in crucial investment decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes such reports
reveal certain thumb rules; best practices developed by existing enterprises by trial and
error, and certain industrial norms that become a guiding source regarding various
aspects of business set-up and its successful management.
Apart from carefully studying the whole document one must consider critical aspects
Provided later on, which form basis of any Investment Decision.

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3. BRIEF DESCRIPTION OF PRODUCT


Bio-Trib is a herbal extract of tribulus Terrestris that is prepared at pharmaceutical Pilot
plant in capsule strips form according to the customer requirements. Bio Trib is indicated
in the treatment of male weakness due to stress, overwork, fatigue, mental tension,
decreased libido due to aging effects, decreased stamina. It is also indicated in male
infertility disorders due to Oligospermia and Azoospermia.
This product is prepared in Capsules dosage form and each capsule contains Tribulus
terrestris (PCSIR spec) 300mg and recommended dosage of Bio-Trib is 1-2 Capsules
three times per day.
4. CRITICALL FACTORS

Energy electricity factors.

Lack of marketing and advertising of the products in public sector

Prior experience and related/education in the related field of business

5. INSTALLED & OPERATIONAL CAPACITIES


See the number 9
6. GEOGRAPHICAL POTENTIAL FOR INVESTMENT
Through out KPK Regions, Peshawar market is key clusters areas for the promotion and
business of the cited product.
7. POTENTIAL TARGET MARKETS
1. Herbal Product, applicable in pharmaceutical and Alophatic Firms
2. Medical Stores up the recommendation of Doctors
3. Customers and public
4. Feasibility studies for the Herbal Industries

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8. PRODUCTION PROCESS FLOW


Raw Materials

Grinding

Extraction and
Concentration

Drying

Tribulus Powder
Capsulation

Strip Packing

9. PROJECT COST SUMMARY


A detailed financial model has been developed to analyze the commercial viability of Bio
Trib under the PM Youth Business Loan scheme.
Name of product/ Activity: BIO-TRIB Capsules (300mg Tribulus Terrestris Herbal
Extract)
Capacity: 500kg/hr Extraction and concentration Rate (4000 Strips/hr)
Production time per batch: One Day
Packing Size:
1.

Box packing (03 Strips, each containing 10 Capsules)

2.
Jar Packing (30 Capsules) according to the customer requirements
9.1. Project Economics
The following table shows internal rate of return, payback period and Net Present Value;
Table 1: Project Economics
Description

Details

Internal Rate of Return (IRR)


Payback Period (yrs)

70%
----

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Net Present Value (NPV)

----

9.2. Project Financing


Following table provides details of the equity required and variables related to bank loan;
Table 2: Project Financing
Description

Details

Total Equity (10%)


Bank Loan (90%)
Markup to the Borrower (%age/annum)

1,20,000/12,50000/5%

Tenure of the Loan (Years)


Grace Period (Year

5
1

9.3. Project Cost


Following requirements have been identified for the operation of the proposed business.
A rental premise has been recommended for this project.
Table 3: Project Cost
Capital Investment

Amount (Rs.)

Machinery
Furniture and Fixture
Office Equipment
Technology Charged TBIC
Preoperational expenses
Total Capital Cost
Initial Working Capital
Total Project Cost

8,40530/1,35,400/3,00000/1,50,000/1,00000/15,25930/
200000/17,25930/-

9.4. Space Requirement


The area has been calculated on the basis of space requirement for production,
management and storage. However, the units operating in the industry do not follow any
set pattern. Following table shows calculations for project space requirement.
Table 4: Space Requirement
Space Requirement
Management building
Processing area
Open area
Total Area

Yards
10
20
10
40yards

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Premises will be obtained on rent @ Rs. 20,000 per month


9.5. Machinery and Equipment
Following table provides list of machinery and equipment required.
Table 5: Machinery & Equipments
Equipment Description

Quantity

Cost Rs/unit

Total Rs.

Pulverizer (100kg/hr)
Solvent Extraction Unit (500
kg/batch

01
01

1,50,000/3,24,000/-

1,50,000/3,24,000/-

Centrifuge (50 Lit/hr)


01
50,000/Tray Dryer (80 kg/hr)
01
80,000/Capsule Filling Machine
01
1,50,000/(4000Caps/hr)
Blister Packing Machine
01
86,530/(4000Strips/hr)
Total
Note: The cost may vary at the time of purchase.

50,000/80,000/1,50,000/86,530/8,40530/-

9.6. Furniture & Fixture


Following furniture and fixture will be required for the unit:
Table 6: Furniture & Fixture
Details Quantity
Office / Visitor
Chairs
Office Tables
Fans (Pedestal and
Ceiling)
Air Conditioner (1.5
ton
Split) for office
Total

Quantity
6

Cost
6000/-

Amount (Rs.)
36,000/-

2
5

10,000/35,000/-

20,000/17500/-

65,000/-

65,000/-

13,8500/-

9.7. Raw Material Requirements


The raw materials are easily available in local market..
Table 8: Cost of Materials
Unit

Rate (Rs.)

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Amount for 1000 kg

Tribulus Terrestris Fruits


Starch
Magnesium Stearate
Cost per Unit

60/- kg
120/- kg
220/- kg

60,000/5000/5000/70,000/-

9.8. Human Resource Requirement


Following table provides details of human resource required for this venture:
Table 9: Human Resource Requirement
Description

No. of Employees

Salary per employee per


month (Rs

Scientists/Engineers
Technicians
Total Staff

02
03
05

80,000/20,000/1,00000/-

9.9. Office Equipment


Office equipment comprises of necessary IT equipment items.
Table 7: Office Equipment
Detail
Quantity Cost

Amount

Computer laptop
Computer desktop
printer
scanner
Networking
Telephone
Total

60,000/20,000/5000/5000/5000/4000/99,000/-

01
02
01
01
01
02
08

60,000/10,000/5000/5000/5000/2000/-

Salaries of all employees are estimated to increase at 10% annually.


9.10. Revenue Generation
Table 10: Revenue Generation
Product
Sales Price (Rs./Unit)

Bio-Trib Capsules

150-200/ Strip pack

First Year
production
Quantity

First Year Sales


Revenue

30-40,000/-

Approx 02 Million

10. CONTACT DETAILS


Engr.Muhammad Saddique Arbab
PCSIR Labs complex Peshawar
Mob No: 03339354048, Email: engrmuhammadsaddique@gmail.com

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