Project Investment Costs:

Project costs are limited to costs of buildings, equipment, providing

electricity, water, and natural gas. The following is a detailed list of these

costs:

1- Constructing a fence of 3 m height and one-meter-deep substructure

on an area of 200 m width x 500 m length. Estimated cost is 0003333

EGP.

2- Building a truss-structured warehouse of a 30 m width x 400 m length

on an area of 12000 m2

at a cost of 5 million EGP. Heights are

different. A height of 30 m is for atomization lines, a height of 8 m is

in presses stage and a height of 6 m is for the rest of production line.

Estimated cost is 5 million EGP.

3- Warehouse capacity: 6 lines, 4 furnaces, and 4 classification lines. The

project is going to start with 3 lines, 2 furnaces, 2 classification lines.

Estimated cost is 00333333 EGP.

4- Building 50-cm-deep stores from ordinary and steel ingots on a

15000-m2

open area outside the warehouse. Estimated cost is 0033333

EGP.

5- Dedicating part of the warehouse to be a quality laboratory for testing

modulus of rupture, bend strength and resistance to absorption, acid,

and abrasion. Estimated cost is 033333 EGP.

The Following is a Simple Presentation of

a Feasibility Study on the Project

- 0 -

6- Dedicating a part to be a laboratory for preparing glazes and colors.

The laboratory consists of color mills, testing furnaces, dryers, and

labs. Estimated cost is 033333 EGP.

7- Dedicating a laboratory for designs. The lab consists of computers,

various manual silk screens and different pieces of equipment.

Estimated cost is 033333 EGP.

8- Dedicating a part to be a mechanical workshop consisting of equipment

of central workshops, welding and lathing. Estimated cost is 033333

EGP.

9- Dedicating a part to be a workshop of wood pallets on which ceramic

tiles are put in order to be stored. The workshop is a carpentry one for

manufacturing wood pallets. Estimated cost is 003333 EGP.

10- Building a power station with generators and electric transformers.

The station consists of a basement of 4 m height. The power station and

electric transformers occupy one floor of 5 m height.

11- There is equipment inside the warehouse for transporting ceramic

tiles. The equipment includes 5 Clark pieces (1 million EGP) and 2

loaders (1 million EGP).

12- A pickup truck ( 033333 EGP).

There are other transportation means for workers and supervisors:

13- 15 mini-buses (4033333 EGP).

14- 10 private cars for managers and engineers ( 033333 EGP)

15- 10 trucks for transporting, marketing and selling ceramic tiles in

different governorates (0333333 EGP).

16- Establishing a department for purchases, forming a trained team

including members specialized only in purchasing materials… etc.

- 0 -

17- Forming a highly-trained managerial team for marketing and sales.

The team members are specialized in marketing the factory products,

concluding contracts of trade agencies required for marketing products

and arranging marketing issues before the start of production process.

It is worth noting that there is an increasing demand for ceramic

products especially in Upper Egypt where new cities are being built

such as New Beni-Suef, New Fayoum, New Menia, New Sohag. There

is also wide expansion in Qena, Hurghada, Nag' Hamadi, Farshout,

Malawi, Maghagha and other cities that are hungry for ceramic

products.

18- Forming an exporting managerial team that is responsible for

concluding outside-Egypt marketing contracts. Export activity should

cover at least 20% of products.

19- Dedicating a place for security & guarding companies.

- 4 -

Project costs are limited to costs of buildings, equipment, providing

facilities including electricity and water as follows:

A. Buildings Costs:

Costs List

0333333 EGP Truss-structured warehouse (30 m width x 400 m

length)

1

0003333 EGP A fence (200 m width x 500 m length) 0

0033333 EGP A 4-floor administrative building (600 m

2) 0

0033333 EGP Stores on a 15000-m

2 open area 4

033333 EGP Furniture, equipment and computers 0

04003333 EGP Total Costs

1- Project Investment Costs

- 0 -

B. Costs of providing facilities including electricity, water, natural gas,

sewerage facilities including an industrial wastewater system.

Costs List

0333333 EGP Step-down power station 0

0333333 EGP 2 standby generators (2 x 3 million EGP) 0

0333333 EGP Gas reduction station 0

0333333 EGP Water line dedicated to the factory 4

1033333 EGP

Sewerage facilities including an industrial wastewater

system.

0

0333333 EGP Panel boards and cables 0

0333333 EGP Lighting, lamps, …etc. 0

00033333 EGP Total Costs

- 0 -

C. Production Lines:

Costs List

00333333 EGP 3 production lines, 2 classification lines plus

2 furnaces

1

033333 EGP Equipped quality lab. inside the warehouse 0

033333 EGP Colors & glazes preparation lab. 0

033333 EGP Computer & manual silk screen design lab. 4

0333333 EGP Loading & unloading machines, loading trucks

and hoists (robot)

0

033333 EGP Equipped mechanical workshop 0

003333 EGP Equipped wood pallets workshop 0

0333333 EGP Transportation equipment: ( 5 Clark pieces plus

2 loaders)

0

033333 EGP A pickup truck 0

4033333 EGP 15 mini-buses for workers 03

4333333 EGP Warning devices, fire extinguishers, security

cameras ( industrial security)

00

0333333 EGP 10 trucks for transporting ceramic tiles to

governorates

00

0333333 EGP 10 private cars for managers 00

000003333 EGP Total costs of production lines

EGP040033333 Total investment costs of project

- 0 -

A. Production quantity:

There are 3 production lines.

Every line produces 0333 m of ceramic tiles per day.

29 workdays per month.

Ceramic tiles production quantity:

(3 lines x 0333 m per day x 29 workdays = 000333 m per

month)

Ceramic tiles production quantity per year:

(000333 m per month x 12 months = 0000333 m per year)

Equipment & machines maintenance: 15 days per year

B. Production costs:

(7 EGP per meter) primary materials including: sand, feldspar,

red clay, kaolin and talc in addition to some other materials

used in some processes. Examples of these materials are

sodium hydroxide, sodium silicate, calcium carbonate, colored

materials and lubricants.

(5 EGP per meter) glaze materials including: feldspar, sodium

hydroxide, bonding materials, dolomite and water. Some

chemicals are used in labs for controlling quality and making

analyses. Some other materials such as sodium

2- Monthly Production Cycle Costs

- 0 -

tripolyphosphate, Rutan oil, bentonite are used to help with

some processes. Natural gas and mazout are used as fuels for

furnaces.

Total material costs per meter = 12 EGP

Machines & equipment maintenance costs per month =

003333 EGP

Benzene & diesel fuel & natural gas costs per month =

00333 EGP

Electricity cost per month = 0333333 EGP

Gas cost per month = 0333333 EGP

Water cost per month = 003333 EGP

- 0 -

Salaries & wages per month:

Total (EGP) Sums Number List

00333 0333 0 Mangers 1

0333 0333 0 Industrial security manger 0

03333 0033 03 Engineers 0

003333 0033 033 Technical operators 4

00333 0033 03 Administrative employees 0

03333 0333 43 Supervisors 0

03333 0333 00 Accountants 0

03333 0033 03 A security guard 0

04333 0033 03

Mini-bus & tile truck drivers and

managers

0

03333 0033 03 Store-keepers 03

00333 0033 00 Industrial security guards 00

00033 0033 00 Clark truck & loader drivers 00

003333 - - Staff incentives & awards 00

433333 033 033 labors 04

Total salaries & wages per month = 0430033 EGP

Total salaries & wages per year = 0430033 x 12 months = 00000333 EGP

- 03 -

Costs per meter:

Salaries & wages per meter:

0430033 EGP ÷ 000333 m per day = 0030 EGP

Monthly electricity cost per meter:

0333333 EGP ÷ 000333 m per day = 0040 EGP

Monthly gas cost per meter:

0333333 EGP ÷ 000333 m per day = 0000 EGP

Monthly water cost per meter:

003333 EGP ÷ 000333 m per day = 3000 EGP

Monthly gas & diesel fuel & benzene costs per meter:

00333 EGP ÷ 000333 m per day = 0.13 EGP

Monthly equipment & machine maintenance costs per meter:

003333 EGP ÷ 000333 m per day = 0.21 EGP

Monthly cartoon cost per meter:

000333 EGP ÷ 000333 m per day = 1 EGP

Monthly manual silk screens costs per meter:

000333 EGP ÷ 000333 m per day = 1 EGP

Monthly pallets cost per meter:

000333 EGP ÷ 000333 m per day= 1 EGP

Monthly incidental expenses per meter:

03333 EGP ÷ 000333 m per day = 0.07 EGP

Monthly advertising expenses per meter:

0033333 EGP ÷ 000333 m per day = 3.59 EGP

Total cost per meter:

0.07 + 1 + 1+ 1 + 0.21 + 0.13 + 0.35 + 2.87+ 1.43 + 2.02 + 12 + 3.59

= 25.67 EGP

- 00 -

Monthly production cycle cost:

3 lines x 8000 m x 29 workdays x 25.67 EGP (total cost per meter) =

00000003 EGP

Annual production cycle cost:

Monthly production cycle cost x 12 months

00000003 EGP x 12 months = 004000043 EGP

Outflow (monthly sales):

3 lines sales x 8000 m x 29 workdays x 12 months = 0000333 EGP

divided as follows:

1st class sales: 70% x 40 EGP per meter = 000000333 EGP

2nd

class sales: 20 % x 30 EGP per meter x 0000333 =

03000333 EGP

3rd

class sales: 10% x 25 EGP per meter x 0000333 =

03003333 EGP

Total sales per year:

000000333 EGP + 03000333 EGP + 03003333 EGP

= 034040333 EGP per year

Annual outflow (sales):

Annual total sales: 034040333 EGP

Annual net outflow: 034040333 – 004000043 = 03400003 EGP

040033333 Project investment costs

004000043 Annual production cycle costs

000400043

3- Project Total Costs

- 00 -

List Creditor List Debit

Earnings

per year 034040333

Annual cash costs

004000043

Allowance of depreciation due to

replacement and annual equipping

04000333

Investment costs per year

04003333

Net profit per year

40000003

034040333 034040333

Feasibility Study Summary

- 00 -

Working Plan for Ten Consecutive Years

This plan depends on God's blessing then on hard work, commitment

to deadlines and choosing efficient employees,

The project is going to start with 3 production lines that are going to

be operated for 5 years.

In the fifth year, after marketing expansion, growing experience in

market demands and variousness of tastes, 3 new production lines,

2 new classification lines and 2 more furnaces are going to be added.

Doubling lines number is going to double production quantity and

consequently profits are going to double.

- 04 -

is going to be as follows: Working plan

Surplus

Total

installment

& interest

Loan

interest

Annual

loan

installment

Earnings

per year

Year

00000003 00033333 4033333 00333333 40000003 First

00000003 00303333 4303333 00333333 40000003 Second

00000003 00033333 0033333 00333333 40000003 Third

00300003 00003333 0003333 00333333 40000003 Fourth

00000003 00033333 0033333 00333333 40000003 Fifth

000000033 Total of 5 years

00333333 After adding 3 production lines, 2 furnaces and

2 classification lines (+ / -)

04000033 Profit surplus of the first 5 years

00003333 00003333 0003333 00333333 00033333 Sixth

00033333 00033333 0033333 00333333 00033333 Seventh

00003333 00003333 0003333 00333333 00033333 Eighth

00033333 00033333 033333 00333333 00033333 Ninth

03303333 00403333 403333 00333333 00033333 Tenth

000000033 Total surplus during the ten years

- 00 -

Introductory Budget of Solitaire Ceramics Factory

Sums Assets Sums Liabilities

Fixed Assets

000033333 Capital

Cash reserve

03333333 Lands

04003333 Buildings

033333 Furniture,

equipment, and

computers

00033333 Power stations,

cables, gas

and sewerage

facilities

04303333 Equipped

production lines

00033333 Cars, equipment

& means of

transportation

000033333 000033333