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CRUCIAL FACTORS
Manufacturing of wooden furniture requires the basic knowledge of wood quality.
Wood is the main raw material and the entire finished product depends on quality of wood.
The information and technical know how about the quality of wood and use of seasoned (dry)
plays a vital role in the manufacturing of good quality furniture. Moreover, establishment of
factory in the vicinity of Lahore, Chiniot or Gujrat gives the added advantage of easy
availability of skilled labor. Strong competition exists in the international and domestic
market. Manufacturing of high quality trendy designs and aggressive marketing is essential to
get a permanent place in the market.
PROJECT PROFILE
Project brief:
We are going to manufacture and sale wooden furniture. The unit will be capable of
integrated manufacturing of wooden furniture starting from cutting of wood to retailing of
product to the customer. Auxiliary processes like carving will be met through sub
contracting.
Opportunity analysis:
The demand for wooden furniture is increasing in the domestic market as well as in
the international market due to its traditional appeal and durability despite the introduction of
new materials in furniture manufacturing.
Furniture, which is given as dowry, forms the major portion of sales of wooden
furniture in Pakistan. As a result, the demand for household furniture increases substantially
in winter and spring season due to weddings.
With the rapid increase in the development of new housing schemes, the increased
demand of wooden furniture is also anticipated. According to the National Housing Policy
2001, the annual additional requirement is estimated around 570,000 housing units whereas
the annual production is estimated around 300,000 housing units resulting in a recurring
backlog of 270,000 housing units annually. The household size is 6.6 persons and the
occupancy per room is 3.3 persons1. Furthermore, introduction of new schemes by different
banks for house and consumer financing have also raised the purchasing power of public. In
the international market, demand for wooden furniture is increasing for its unique style and
aristocratic and elegant appearance. The demand of wooden furniture
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Woodland Furniture’s
Investment:
10 million rupees.
Proposed Product Mix:
We will produce different sort of wooden furniture.
Bed Set: Which includes Bed, side tables, dressing table, dressing stool.
Sofa Set: Which includes standard sofa set of three seats, two seats and one seat
Dining Set: Which includes Glass top dining table with eight chairs.
Misc. Furniture Set: A part of Sofa Set but not sold along with it. It includes glass
top centre table along with two end tables for the Sofa Set.
Office Furniture Set: Which includes an office table along with side table for
computer with one executive and two visitors chairs.
Location:
Local Furniture demand is directly related to the population living in a locality.
Therefore, the demand for wooden furniture is higher in heavily populated cities of Pakistan
like Lahore, Multan, Karachi, Peshawar etc. & developed cities like Rawalpindi, Islamabad.
Our manufacturing unit will exit in neighboring areas of Lahore and show room will
establish in Lahore City.
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Woodland Furniture’s
SWOT ANALYSIS
Strengths
SWOT
Opportunities ANALY Threats
SIS
Weaknesses
Strengths
Skilled Labor Force
Wood seasoning facility centre is available
Suppliers of raw material are available
Local tools available
Strong historical background of craftsmen
Many big cities are link-up with this cluster including Lahore, Islamabad, Sargohha,
Jhang, Faisalabad and Gujranwala etc.
Weaknesses
High cost of production due to high rate of raw material
Lack of educated, certified and professionally trained work force
Unavailability of ready to use raw material
No Designing and R&D facilities available
Unawareness of Social compliance and Environmental issues
Unawareness of any quality control and standards
Unavailability of ready-to use seasoned wood
Constraint of Technology
Fluctuating prices of the raw material.
Opportunities
Technical up gradation
Networking & linkages of cluster players/stakeholders
Development of consortiums with specified objectives
Threats
Migration of trained work forces from the sector
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Woodland Furniture’s
Raw material cost increase (shortage in the stock of Sheesham wood at any stage
because no further plantation as required)
Import of low price articles from China and India
Instable political set up of the country.
MARKET INFORMATION
In local market, the requirement for wooden furniture can be categorized into four
namely:
1. for newly built house;
2. for dowry;
3. for renovation;
4. for Institutional buyer;
5. for offices (public & private sector)
The majority of customers in the domestic market belong to first and second category.
Thesecustomers require furniture for their newly built houses and usually buy range of
products like bed sets, dining sets and sofa sets with other decorative material for their entire
house. In Pakistani society, Furniture is given as dowry. Therefore, its demand increases in
the spring and winter season due to weddings. Basic requirement of these customers is bed
set of new designs and styles. These types of customers also buy sofa set or dining set along
with bed set. Initially entrepreneur should target these customers to establish the business and
to increase the customer base. These potential customers can play a dominating role in the
successful break through of the business. With the flourishing of tourism and hotel industry,
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considerable scope emerges for wooden furniture in this sector. Large orders can be secured
to supply wooden furniture to these hotels and resorts.
PRODUCTION PROCESS
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Inspection before
Purchase of Wood
finishing
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Woodland Furniture’s
Purchase of Wood
Wood is purchased after Quality inspection. In determining quality following points are
considered:
Age of Wood
Dryness of wood
Its surface, which should be plane without holes etc
Cutting of Wood
When purchased, the wood of natural form, this wood after purchase is cut into
different sizes of blocks and slabs.
Seasoning/Drying of Wood
Season wood is higher in price than the fresh wood, so if the wood purchased is not properly
dried wood than these blocks/slices are seasoned through different processes, namely:
Condensation
Boiler System
Vacuum System
Seasoning through putting the wood slices under normal environmental temperature
for considerable duration.
Selection of Design
Before start of manufacturing of any furniture product a desired design is selected.
Selection of elegant design is important to ensure attractive finished product.
Molding
The slices of wood are molded into the desired shape according to the design.
Carving
Carving means different elegant pattern carved in the wood. Quality of carving
depends on the skills of the labor.
Assembly/Fitting
Once the different pieces are carved & molded than these parts/pieces are assembled
or fixed together to give the shape to the final product.
Finishing (Paint/Polishing)
Assembled product is grind to make the surface smooth. Once the surface is smooth,
finishing material is applied to make the surface ready for paint or polish. After the base is
prepared final finishing is applied depending on requirement in term of paint/polish.
Upholstery of fabric is carried out according requirement of design.
MACHINERY REQUIREMENT
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Woodland Furniture’s
Imported and locally manufactured machinery is available in the local market. As this
project is labor intensive, not much based on technical machinery and technological
advancement, therefore technology has less impact on the business. Imported machinery and
plants are available for seasoning, cutting, molding, finishing, etc.
Supplier of Machinery
Some of suppliers of furniture manufacturing machinery are:
Asim Engineering Works, near National Bank, Gondalanwala Road, Gujranwala.
M/s Wazir Ali Industries, Badami Bagh, Lahore.
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for anufacturing of quality wooden furniture. Forest wood is easily available in the market.
Frniture manufacturing units in Pakistan mostly use sheesham wood. Other types of woods
used in manufacturing furniture are:
Teak wood
Walnut wood
Keekar wood
Besides this, substitute material like lasani, winboard are also used in the manufacturing
of furniture.
Raw material wood is easily available from the forest reserves like Changa manga,
Pakhowal, Kundian, Chicha watni, Bahawalpur and other natural forests. Changa manga
forest is the major source of wood for furniture. Other material used in the furniture
manufacturing process are nails, screws, glue/solution, spirit, lakh, thiner, lacquer, sealer,
hardener, etc. These raw materials are easily available in the market.
PROJECT ECONOMICS
Project Cost Details
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Woodland Furniture’s
Description Amount
Land for factory 2,000,000
Building for Factory 2,500,000
Showroom 4,000,000
Machinery for Factory 461,500
Furniture and Fixtures for Factory 95,000
Furniture and Fixtures for Showroom 274,000
Pre-operating Cost 100,000
Total Capital Cost 9,430,500
Depreciation Rate
Details Rate %
Building 1%
Machinery 10%
Furniture 10%
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Thank You…!!!
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