Pre-Feasibility Study for Medical Store Business (Rs. 1.06M

Pre-Feasibility Study
(Medical Store)
Small and Medium Enterprises Development Authority

Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
helpdesk@smeda.org.pk
REGIONAL OFFICE
Punjab
REGIONAL OFFICE
Sindh
REGIONAL OFFICE
Khyber Pakhtunkhwa
REGIONAL OFFICE
Balochistan
3rd Floor, Building No. 3,

Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456
Fax: (042) 36304926-7
helpdesk.punjab@smeda.org.pk
5th Floor, Bahria

Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 35610572
helpdesk-khi@smeda.org.pk
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 111-111-456
Fax: (091) 5286908
helpdesk-pew@smeda.org.pk
Bungalow No. 15-A

Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 2831623, 2831702
Fax: (081) 2831922
helpdesk-qta@smeda.org.pk
Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost
May, 2014
Medical Store (Rs. 1.06 Million)
TABLE OF CONTENTS
1
DISCLAIMER ..........................................................................................................2
PURPOSE OF THE DOCUMENT ........................................................................... 3
INTRODUCTION TO SMEDA .................................................................................3
INTRODUCTION TO SCHEME ...............................................................................4
EXECUTIVE SUMMARY .........................................................................................4
BRIEF DESCRIPTION OF PROJECT & PRODUCT ............................................... 4
CRITICAL FACTORS..............................................................................................5
INSTALLED & OPERATIONAL CAPACITIES ........................................................ 5
POTENTIAL TARGET MARKETS / CITIES ............................................................ 5
10
PROJECT COST SUMMARY .................................................................................5
10.1
10.2
10.3
10.4
10.5
10.6
10.7
10.8
10.9
10.10
PROJECT ECONOMICS .......................................................................................6

PROFIT MARGINS ..............................................................................................7
PROJECT FINANCING .........................................................................................7
PROJECT COST .................................................................................................7
SPACE REQUIREMENT .......................................................................................8
OFFICE EQUIPMENT DETAILS..............................................................................8
FURNITURE & FIXTURE.......................................................................................8
HUMAN RESOURCE REQUIREMENT ..................................................................... 9
REVENUE GENERATION.................................................................................... 10
OTHER INCOME ............................................................................................... 10
11
CONTACT DETAILS OF GOVERNMENT INSTITUTIONS ................................... 10
12
ANNEXURE ..........................................................................................................11
12.1
12.2
12.3
12.4
12.5
13
INCOME STATEMENT ........................................................................................ 11

BALANCE SHEET.............................................................................................. 12
CASH FLOW STATEMENT.................................................................................. 13
USEFUL PROJECT MANAGEMENT TIPS .............................................................. 14
USEFUL LINKS ................................................................................................. 14
KEY ASSUMPTIONS ............................................................................................ 16
DISCLAIMER
This information memorandum is to introduce the subject matter and provide a

general idea and information on the subject. Although, the material included in
this document is based on data / information gathered from various reliable
sources; however, it is based upon certain assumptions 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.
Although, due care and diligence has been taken to compile this document, the
contained information may vary due to any change in any of the concerned
factors, and the actual results may differ substantially from the presented
information. SMEDA, its employees or agents 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.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST
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, production, marketing, finance and business
management.
The purpose of this document is to facilitate potential investors in Medical Store
business 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.
INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was

established in October 1998 with an objective to provide fresh impetus to the
economy through development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the
national income, through development of the SME sector, by helping increase
the number, scale and competitiveness of SMEs" , SMEDA has carried out
sectoral research to identify policy, access to finance, business development
services, strategic initiatives and institutional collaboration and networking
initiatives.
Preparation and dissemination of pre-feasibility studies in key areas of
investment has been a hallmark of SME facilitation by SMEDA.
Concurrent to the pre-feasibility studies, a broad spectrum of business
development services is also offered to the SMEs by SMEDA. These services
include identification of experts and consultants and delivery of need based
capacity building programs of different types in addition to business guidance
through help desk services.
INTRODUCTION TO SCHEME
Prime Ministers Youth Business Loan scheme, for young entrepreneurs, with
an allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
subsidised financing at 8% mark-up per annum for one hundred thousand
(100,000) beneficiaries, through designated financial institutions, initially by the
National Bank of Pakistan (NBP) and the First Women Bank Ltd. (FWBL).
Loans from Rs. 0.1 million to Rs. 2.0 million with tenure up to 8 years inclusive of
1 year grace period, and a debt : equity of 90 : 10 will be disbursed to SME
beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa,
Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered
Tribal Areas (FATA).
EXECUTIVE SUMMARY
In this pre-feasibility study, the proposed Medical Store is to be located in a

commercial market of a residential area having considerable presence of middle
or upper middle income groups. The product range offered in the planned
Medical Store is a blend of both multinational and national pharmaceutical
products. General products such as Food Supplements, Toiletries, Shampoos,
Soaps, Diapers, Sanitary Napkins and Prepaid Cellular Cards will also be
available at the store. The proposed medical store will remain open for 08 hours /
day.
The total initial cost for setting up a single outlet is estimated at Rs. 1.06 million
out of which capital cost is Rs. 0.53 million along with working capital of Rs. 0.53
million. The project will be financed through 90% debt and 10% equity. The NPV
is projected around Rs. 3.70 million, with an IRR of 52% and payback period of
2.24 years. The legal business status of this project is proposed as Sole
Proprietorship.
The medical store is required to be registered with respective District Health
Officer (DHO) of the region, under the Drug Act 1976.
BRIEF DESCRIPTION OF PROJECT & PRODUCT
In order to set-up a medical store, the investor needs to get the store and site
registered with the District Health Officer (DHO) of the respective region. The
registration requirements are available at the relevant DHO offices. In this prefeasibility study the proposed medical store will be established in rented
premises with an area of around 250 sq. feet, having electricity & telephone
connection. The range offered in this Medical Store is a blend of both
multinational and national pharmaceutical products. General Products such as
Food Supplements, Toiletries, Shampoos, Soaps, Diapers & Sanitary Napkins,

and Prepaid Cellular Cards will also be available at the store.
The medical store will remain open for 8 hours / day. Initial trade volume is
calculated at Rs. 9.25 million in the first year, with an annual growth of 10%,
providing employment to 03 individuals. The venture is proposed to be
established as a Sole Proprietorship.
CRITICAL FACTORS
Some of the Key factors for operating a successful medical store are:
Background, experience and technical qualification of the entrepreneur

and / or key staff.
Selection of appropriate location, preferably close to clinics & hospitals.
Availability of complete product range and uninterrupted supply of
merchandise.
Inventory control to avoid any pilferage.
Reasonable and competitive prices.
INSTALLED & OPERATIONAL CAPACITIES
Range offered in a Medical Store is a blend of both multinational and national

pharmaceutical products. Initial stock inventory of Rs. 0.33 million is expected to
grow over next ten years at the rate of 10% per annum, having inventory turnover
rate of 15 days. Person involved in this business is required to be in regular
contact with the suppliers of multinational / national consumer goods companies.
POTENTIAL TARGET MARKETS / CITIES
A medical store should be easily accessible and should be within population

concentration, preferably in close proximity of medical clinics and hospitals.
However, keeping in view the investment size of the proposed business,
commercial areas around housing societies can also be considered. The outlet
can be opened in any of the cities across Pakistan.
10 PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the commercial
viability of Medical Store under the Prime Ministers Youth Business Loan
scheme. Various cost and revenue related assumptions along with results of the
analysis are outlined in this section.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as annexure.
1 0 .1
Project Economics
Following table shows internal rate of return, payback period and net present
value:
Table 1 - Project Economics
Description
Internal Rate of Return (IRR)
Payback Period (Yrs)
Net Present Value (NPV) - (Rs.)
Details
52%
2.24
3,700,506
Return on the investment and its profitability are highly dependent on the
entrepreneurs practical knowledge about medicines, and availability of complete
product range along with regular medicine supplies, well-trained pharmacist, etc.
Percentage quantity of each item offered on the store is based on survey of
distribution companies.
Following is the list of products, which are to be offered at the medical store:
Table 2 - Product Mix
Product Category
Products of Multinational Companies
Products of National Companies
Herbal Products
Food Supplements
Eatables
Toiletries
Sanitation Products
Pre-paid Cards
Total
Percentage In Total Sales
34.2
41.7
5.1
4.2
4.2
3.2
3.2
4.2
100
1 0 .2
Profit Margins
Percentage margin charged on each type of product is as under:

Table 3 - Profit Margins
Item
Margin on Multinational Sales
Margin on National Sales
Margin on Herbal Products
Margin on Food Supplements
Margin on Eatables
Margin on Toiletries
Margin on Sanitation products
Margin on Mobile Cards
1 0 .3
Profit Margin
10%
15%
30%
30%
10%
10%
10%
3.5%
Project Financing
Following table provides details of the equity required and variables related to
bank financing;
Table 4 - Project Financing
Description
Details
Rs. 106,652
Rs. 959,869
8%
8
1
Total Equity (10%)

Bank Loan (90%)
Markup to the Borrower (%age/annum)
Tenure of the Loan (Years)
Grace Period (Year)
1 0 .4
Project Cost
Following requirements have been identified for operations of the proposed

business.
Table 5 - Capital Investment for the Project
Capital Investment
Furniture & fixtures
Medical Store Equipment
Pre-operating Cost
Training Cost
Total Capital Cost
Amount (Rs.)
422,000
87,000
30,000
3,500
532,500
Raw Material Inventory

Upfront Rent
Cash
333,075
100,000
100,946
7
Initial Working Capital

Total Project Cost
1 0 .5
534,021
1,066,521
Space Requirement
Approximately 250 sq. ft. will be required for a medical store. It is recommended
that the area should be acquired on rent. Rent cost for the proposed areas will be
ranging between Rs. 20,000 to Rs. 35,000. Rent cost incorporated for financial
analysis is Rs. 25,000 per month. One month advance rent along with three
months of security deposit is also to be paid.
1 0 .6
Office Equipment Details
The details of the different equipment required for the project is given in the
following tables:
Table 6 Medical Store Equipment Costs
Equipment
Quantity
Computer
UPS
Printer
Fax Machine
Telephones
Total Equipment
1 0 .7
Cost per
Unit (Rs.)
1
1
1
1
2
25,000
40,000
10,000
10,000
1,000
Total
Cost
(Rs.)
25,000
40,000
10,000
10,000
2,000
87,000
Furniture & Fixture
For displaying and storing medicines, wooden shelves, racks and counter will be
required and details of these are as follows:
Table 7 Furniture & Fixture Costs
Description
Refrigerator
Gluco Meter & BP apparatus
Wall Mounted Fans
Storage Racks
Chairs
Racks on Side Walls (15x7) 315 sq. ft.
Racks on Mid of Shop (10x3) 60 sq. ft.
Counter (10x3) 60 sq. ft. @ Rs. 500 per
Qty
1
1
4
Unit Cost
(Rs)
25,000
10,000
3,000
3
3
2
2
2,500
73,500
21,000
15,000
Total Cost
(Rs)
25,000
10,000
12,000
7,500
220,500
42,000
30,000
8
sq. ft.
Sign Board
Split A.C.s
Total Furniture & Fixture Cost
1 0 .8
50,000
25,000
50,000
422,000
Human Resource Requirement
The staff will include Owner / Pharmacist who will have B-Pharmacy degree.
Cashier / accountant must be B. Com and having two to three years experience
in related field. Human resource requirement for the proposed project is as
under:
Table 8 - Staff Requirement

Positions
Owner / Pharmacist
Salesman
Cashier
Total
Number
1
1
1
3
Salary/Perso
n/Month
(Rs.)
20,000
12,000
10,000
Annual Salary
(Rs.)
240,000
144,000
120,000
504,000
Salaries of all employees are estimated to increase at 10% annually.
1 0 .9
Revenue Generation
Expected revenue generation by the Medical Store during the first year is given
in the table below:
Table 9 - Expected Revenue Generation during Year-I
Product Category
Products of Multinational Companies
Products of National Companies
Herbal Products
Food Supplements
Eatables
Toiletries
Sanitation Products
Pre Paid Cards
Total sales for the first year
Expected Sales Amount (Rs.)

3,240,000
3,960,000
432,000
360,000
360,000
270,000
270,000
360,000
9,252,000
The annual sales growth rate is estimated at 10%

10.10
Other Income
Other income includes revenues from diabetes tests, blood pressure checking
and any sort of intra muscular injections. Such income is taken as 1% of the total
annual revenues.
11 CONTACT DETAILS OF GOVERNMENT INSTITUTIONS

Drug Regulatory Authority of Pakistan
2nd Floor, Block C, Pak Secretariat, Islamabad
Ph: +92-51- 9202566
E-mail: contact@dra.gov.pk
Website: www.dra.gov.pk
10
12 ANNEXURE
1 2 .1
Income Statement
Income Statement
Year 1
9,252,000
Year 2
10,177,200
Year 3
11,194,920
Year 4
12,314,412
Year 5
13,545,853
Year 6
14,900,439
Year 7
16,390,482
Year 8
18,029,531
Year 9
19,832,484
Year 10
21,815,732
7,993,800
333,075
7,660,725
188,352
7,849,077
1,402,923
333,075
8,426,798
351,117
8,408,756
207,187
8,615,943
1,561,257
351,117
9,269,477
386,228
9,234,366
227,906
9,462,272
1,732,648
386,228
10,196,425
424,851
10,157,802
250,697
10,408,499
1,905,913
424,851
11,216,067
467,336
11,173,582
275,766
11,449,349
2,096,505
467,336
12,337,674
514,070
12,290,941
303,343
12,594,283
2,306,155
514,070
13,571,442
565,477
13,520,035
333,677
13,853,712
2,536,771
565,477
14,928,586
622,024
14,872,038
367,045
15,239,083
2,790,448
622,024
16,421,444
684,227
16,359,242
403,749
16,762,991
3,069,492
684,227
18,063,589
752,650
17,995,166
444,124
18,439,290
3,376,442
504,000
300,000
30,000
30,000
36,000
48,000
75,000
7,500
71,200
4,000
1,106,050
296,873
554,400
330,000
31,500
31,500
37,800
50,400
67,500
7,875
71,200
4,000
1,186,525
374,732
609,840
363,000
33,075
33,075
39,690
52,920
60,750
8,269
71,200
4,000
1,276,169
456,480
670,824
399,300
34,729
34,729
41,675
55,566
54,675
8,682
75,771
4,000
1,380,300
525,613
737,906
439,230
36,465
36,465
43,758
58,344
49,208
9,116
75,771
4,000
1,490,614
605,890
811,697
483,153
38,288
38,288
45,946
61,262
44,287
9,572
75,771
1,608,615
697,541
892,867
531,468
40,203
40,203
48,243
64,325
39,858
10,051
81,063
1,748,630
788,140
982,153
584,615
42,213
42,213
50,656
67,541
35,872
10,553
81,063
1,897,229
893,218
1,080,369
643,077
44,324
44,324
53,188
70,918
32,285
11,081
81,063
2,060,978
1,008,515
1,188,406
707,384
46,540
46,540
55,848
74,464
29,057
11,635
87,189
2,247,411
1,129,031
Other income from Sugar Tests & Blood Pressure Checking

Earnings Before Interest & Taxes
92,520
389,393
101,772
476,504
111,949
568,429
123,144
648,757
135,459
741,349
149,004
846,545
163,905
952,045
180,295
1,073,514
198,325
1,206,840
218,157
1,347,188
Interest expense on long term debt (Project Loan)

Interest expense on long term debt (Working Capital Loan)
Subtotal
Earnings Before Tax
79,669
79,669
309,724
72,937
72,937
403,566
64,090
64,090
504,339
54,509
54,509
594,248
44,133
44,133
697,216
32,895
32,895
813,650
20,724
20,724
931,321
7,543
7,543
1,065,970
1,206,840
1,347,188
309,724
357
403,210
10,434
493,905
19,425
574,823
29,722
667,495
44,547
769,103
62,198
869,123
82,395
983,575
103,526
1,103,314
124,578
1,222,610
Revenue
Cost of sales
Add opening stock
Operating expenses
Less closing stock
Medicine Sold
Electricity Expense
Total cost of sales
Gross Profit
General administration & selling expenses
Administration expense
Rent expense
Travelling expense
Communications expense (phone, mail, etc.)
Printing & Stationary
Entertainment
Promotional expense
Consultancy Charges & Audit Fee
Depreciation expense
Amortization of pre-operating costs
Subtotal
Operating Income
Tax
NET PROFIT/(LOSS) AFTER TAX
11
1 2 .2
Balance Sheet
Balance Sheet
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Assets
Current assets
Cash & Bank
Raw material inventory
Pre-paid land rent
Total Current Assets
100,946
333,075
100,000
534,021
464,567
351,117
110,000
925,683
790,969
386,228
121,000
1,298,198
1,094,223
424,851
133,100
1,652,174
1,569,093
467,336
146,410
2,182,840
2,120,753
514,070
161,051
2,795,874
2,636,139
565,477
177,156
3,378,772
3,354,593
622,024
194,872
4,171,489
4,166,990
684,227
214,359
5,065,576
5,128,086
752,650
235,795
6,116,530
7,427,991
7,427,991
Fixed assets
Furniture & fixtures
Office equipment
Total Fixed Assets
422,000
87,000
509,000
379,800
58,000
437,800
337,600
29,000
366,600
295,400
100,713
396,113
253,200
67,142
320,342
211,000
33,571
244,571
168,800
116,588
285,388
126,600
77,726
204,326
84,400
38,863
123,263
42,200
134,966
177,166
89,977
89,977
23,500
1,066,521
19,150
1,382,633
14,800
1,679,598
10,450
2,058,737
6,100
2,509,282
1,750
3,042,195
1,400
3,665,560
1,050
4,376,865
700
5,189,539
350
6,294,046
7,517,968
6,388
6,388
6,734
6,734
7,407
7,407
8,148
8,148
8,963
8,963
9,859
9,859
10,845
10,845
11,929
11,929
13,122
13,122
14,434
14,434
959,869
959,869
853,278
853,278
737,839
737,839
612,820
612,820
477,424
477,424
330,790
330,790
171,985
171,985
106,652
309,724
416,376
1,382,633
106,652
712,934
819,586
1,679,598
106,652
1,206,839
1,313,491
2,058,737
106,652
1,781,662
1,888,314
2,509,282
106,652
2,449,157
2,555,809
3,042,195
106,652
3,218,260
3,324,912
3,665,560
106,652
4,087,383
4,194,035
4,376,865
Intangible assets
Total Intangible Assets
TOTAL ASSETS
Liabilities & Shareholders' Equity
Current liabilities
Accounts payable
Total Current Liabilities
Other liabilities
Deferred tax
Long term debt (Project Loan)
Long term debt (Working Capital Loan)
Total Long Term Liabilities
Shareholders' equity
Paid-up capital
Retained earnings
Total Equity
TOTAL CAPITAL AND LIABILITIES
959,869
959,869
106,652
106,652
1,066,521
106,652
5,070,958
5,177,610
5,189,539
106,652
7,396,881
7,503,533
7,517,968
106,652
6,174,271
6,280,923
6,294,046
12
1 2 .3
Cash Flow Statement
Cash Flow Statement

Operating activities
Net profit
Add: depreciation expense
amortization of pre-operating costs
amortization of training costs
Deferred income tax
Raw material inventory
Pre-paid building rent
Cash provided by operations
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
(333,075)
(100,000)
(433,075)
309,724
71,200
4,000
350
(18,042)
(10,000)
363,621
403,210
71,200
4,000
350
(35,112)
(11,000)
432,994
493,905
71,200
4,000
350
(38,623)
(12,100)
519,405
574,823
75,771
4,000
350
(42,485)
(13,310)
599,890
667,495
75,771
4,000
350
(46,734)
(14,641)
687,056
769,103
75,771
350
(51,407)
(16,105)
778,608
869,123
81,063
350
(56,548)
(17,716)
877,258
983,575
81,063
350
(62,202)
(19,487)
984,382
1,103,314
81,063
350
(68,423)
(21,436)
1,096,061
1,222,610
87,189
350
752,650
235,795
2,299,905
(106,591)
(106,591)
(115,438)
(115,438)
(125,020)
(125,020)
(135,396)
(135,396)
(146,634)
(146,634)
(158,805)
(158,805)
(171,985)
(171,985)
Financing activities
Project Loan - principal repayment
Working Capital Loan - principal repayment
Additions to Project Loan
Issuance of shares
Cash provided by / (used for) financing activities
959,869
106,652
1,066,521
Investing activities
Capital expenditure
Cash (used for) / provided by investing activities
(532,500)
(532,500)
NET CASH
100,946
363,621
326,403
(100,713)
(100,713)
303,254
474,870
551,660
(116,588)
(116,588)
515,386
718,454
812,397
(134,966)
(134,966)
961,095
2,299,905
13
1 2 .4
Useful Project Management Tips
Marketing
Ads & P.O.S. Promotion: Business promotion and dissemination through

banners and launch events is highly recommended.
Sales & Distribution Network: Expert's advise and distribution agreements

are required.
Price - Bulk Discounts, Cost plus Introductory Discounts: Price should

never be allowed to compromise quality. Price during introductory phase may
be lower and used as promotional tool. Product cost estimates should be
carefully documented before price setting. Government controlled prices shall
be displayed.
Human Resources
Adequacy & Competencies: Skilled and experienced staff should be

considered an investment even to the extent of offering share in business
profit.
Performance Based Remuneration: Attempt to manage human resource

cost should be focused through performance measurement and performance
based compensation.
1 2 .5
Useful Links
Prime Ministers Office, www.pmo.gov.pk
Small and Medium Enterprise Development Authority, www.smeda.org.pk
National Bank of Pakistan (NBP), www.nbp.com.pk
First Women Bank Limited (FWBL), www.fwbl.com.pk
Government of Pakistan, www.pakistan.gov.pk
Ministry of Industries & Production, www.moip.gov.pk
Ministry of Education, Training & Standards in Higher Education,

http://moptt.gov.pk
Government of Punjab, www.punjab.gov.pk
Government of Sindh, www.sindh.gov.pk
Government of Khyber Pakhtunkhwa, www.khyberpakhtunkhwa.gov.pk
Government of Balochistan, www.balochistan.gov.pk
Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk
14
Government of Azad Jamu Kashmir, www.ajk.gov.pk
Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk
Securities and
www.secp.gov.pk
Federation of Pakistan Chambers of Commerce and Industry (FPCCI),

www.fpcci.com.pk
State Bank of Pakistan (SBP), www.sbp.org.pk
Drug Regulatory Authority, www.dra.gov.pk
Exchange
Commission
of
Pakistan
(SECP),
15
13 KEY ASSUMPTIONS
Table 10 - Operating Assumptions
Hours operational per day
Days operational per month
Day operational per year
8 hours
30 days
360 days
Table 11 - Revenue Assumptions

Revenue classification
Sales growth rate
Other Income (%age of revenues)
On the basis of diseases

10%
1%
Table 12 - Expense Assumptions

Printing & Stationary
Entertainment
Communication Expense
Consultancy Charges and Audit (Annual)
Electricity cost growth rate
Depreciation Rate on Furniture
Depreciation Rate on Electric Equipment
Office Equipment
Rs. 36,000 per annum

Rs. 7,500
10%
10%
10%
33%
Table 13 - Cash Flow Assumptions

Accounts payable cycle
Inventory
7 days
15 days
Table 14 - Financial Assumptions

Project Life
Debt
Equity
Debt Tenure
Grace period
Interest rate
10 Years
90%
10%
8 Years
1 year
8%
16

Pre-Feasibility Study for Medical Store Business (Rs. 1.06M

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Pre-Feasibility Study

Small and Medium Enterprises Development Authority

3rd Floor, Building No. 3,

5th Floor, Bahria

Bungalow No. 15-A

Medical Store (Rs. 1.06 Million)

PURPOSE OF THE DOCUMENT ........................................................................... 3

INTRODUCTION TO SMEDA .................................................................................3

INTRODUCTION TO SCHEME ...............................................................................4

EXECUTIVE SUMMARY .........................................................................................4

BRIEF DESCRIPTION OF PROJECT & PRODUCT ............................................... 4

INSTALLED & OPERATIONAL CAPACITIES ........................................................ 5

POTENTIAL TARGET MARKETS / CITIES ............................................................ 5

PROJECT COST SUMMARY .................................................................................5

PROJECT ECONOMICS .......................................................................................6

CONTACT DETAILS OF GOVERNMENT INSTITUTIONS ................................... 10

INCOME STATEMENT ........................................................................................ 11

Medical Store (Rs. 1.06 Million)

This information memorandum is to introduce the subject matter and provide a

Medical Store (Rs. 1.06 Million)

PURPOSE OF THE DOCUMENT

The objective of the pre-feasibility study is primarily to facilitate potential

The Small and Medium Enterprises Development Authority (SMEDA) was

Medical Store (Rs. 1.06 Million)

In this pre-feasibility study, the proposed Medical Store is to be located in a

BRIEF DESCRIPTION OF PROJECT & PRODUCT

Medical Store (Rs. 1.06 Million)

Food Supplements, Toiletries, Shampoos, Soaps, Diapers & Sanitary Napkins,

Background, experience and technical qualification of the entrepreneur

INSTALLED & OPERATIONAL CAPACITIES

Range offered in a Medical Store is a blend of both multinational and national

POTENTIAL TARGET MARKETS / CITIES

A medical store should be easily accessible and should be within population

10 PROJECT COST SUMMARY

Medical Store (Rs. 1.06 Million)

Percentage In Total Sales

Medical Store (Rs. 1.06 Million)

Percentage margin charged on each type of product is as under:

Total Equity (10%)

Following requirements have been identified for operations of the proposed

Raw Material Inventory

Medical Store (Rs. 1.06 Million)

Initial Working Capital

Office Equipment Details

Furniture & Fixture

Medical Store (Rs. 1.06 Million)

Human Resource Requirement

Table 8 - Staff Requirement

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

Medical Store (Rs. 1.06 Million)

Expected Sales Amount (Rs.)

The annual sales growth rate is estimated at 10%

11 CONTACT DETAILS OF GOVERNMENT INSTITUTIONS

Medical Store (Rs. 1.06 Million)

Other income from Sugar Tests & Blood Pressure Checking

Interest expense on long term debt (Project Loan)

Medical Store (Rs. 1.06 Million)

Medical Store (Rs. 1.06 Million)

Cash Flow Statement

Cash Flow Statement

Medical Store (Rs. 1.06 Million)

Useful Project Management Tips

Ads & P.O.S. Promotion: Business promotion and dissemination through