Executive summary

The Project

Bahawalpur is one of the most traditional cities of Pakistan which have a strong ritual
historical background where one can find the best taste for food among people. Most of
the people belong to economical and lower class who likes to have a hang out place with
open area where they can find “Desi” Food and also some range of foreign food items
like soups, at low price. Focusing on the need of this area and likelihood of people to go
out for cheap open area food our estate group partners captured the opportunity to
provide this facility of cheap food with open area environment. People of all classes are
kept in view to provide food at low price and good quality. Based on all these factors our
group primarily adopted the idea of this unique type of Food Street named as
“Cholistan Food Street”.
Location

Our specialty is providing Desi and foreign food combine which give us first mover
benefit and a competitive edge too. Our business mainly evolves around providing
quality food at low price with good open area. We open our project at MELAD CHOK
which is situated at the heart of Bahawalpur City. The area covered by this food street is
120 Marlas with 7 main shops providing almost all types of food sweet drinks for people
of Bahawalpur.
Sponsors:

The sponsors of this project are a team of four highly proficient qualified and skilled
people. They are highly enthusiastic and professionally qualified in their fields. Thy
committed to provide high quality product and services in this area namely Muhammad
Fahad Butt resident of Model Town c Bahawalpur , Alia Naseeb resident of Gulberg
Colony Bahawalpur, Sidra Noor resident of Satellite Town Bahawalpur and Bushra Riaz
resident of Faisal colony. All the admin control of the project is taken by the four partners
themselves in order to maintain the consistent quality of product and services.
Markets:

Food is necessity of life, during the last decade the trend of serving the food at outstation
is increasing day by day. The population of Bahawalpur City is also increasing rapidly.
So it is a growing opportunity to capture the market share by providing comfortable
environment. This food street has an advantage of location as it is located in highly
populated area of Bahawalpur which has an estimated population of .02 million. Our raw
material is going to be cheaply and readily available from the same location where we
are currently situated significantly reducing the operational cost of the project.
Capacity:

In Food Street, we are assumed on 75%, 80% and 85% capacity utilization in the first
and onward years of operations.
Material and Inputs

The raw materials of the unit are including mostly chicken, beef, flour, mutton, rice and
fruits. The raw material can be purchased from the local market as well as directly from
farmers.
Project Engineering

The machinery of the purposed project will be purchased from Lahore locally
manufactured.
Manpower

The food street requires highly trained chefs with some supporting staff. This project will
create employment opportunities for following staff.
Detail Total Nos.
Skilled Labor 11
Semi-Skilled Labor 11
Unskilled 22
Implementation Stage:

Total time period for the starting of project is estimated to be 1 year from the date of
approval of finance.
Cost of the Project

The total cost of the project is estimated to be (Rs. 21,973,000). The fixed cost of the
project is (Rs. 20,620,000) which are financed locally. The amount of initial permanent
net working capital required is (Rs. 1,353,000).
Financial Analysis:

Sixty percent (50%) of the estimated cost of the proposed project will be obtained
through loan and the remaining 50% will be contributed by the Owners
Financial Plan:

The total cost of the project is estimated to be (Rs. 21,973,000). Fifty percent (Rs.
10,986,000) of the estimated cost of the proposed project will be obtained through loan
from Muslim Commercial Bank and the remaining fifty percent (Rs. 10,986,000) will be
contributed by the owners.
Operating Results:

The total current assets, current liabilities and net working capital will be maintained as
per company production policy. The proposed unit will be capable of generating
following revenues.

ITEMS 2011(Rs. In ‘000) 2012(Rs. In ‘000) 2013(Rs. In ‘000)

Sales 102,450 109,280 116,110
Gross Profit 11,624 11,485 11,071
Operating Profit 10,034 9,873 9,436
EBT 8,496 8,414 8,068
Net Profit 5,522 5,469 5,244

Financial Indicators

Project Cost IRR % WACC %

Rs. 21,973,000 35% 7%

Financial Position of the Company:

The total current assets, current liabilities and net working capital will be maintained as
per company production policy.
Financial Ratios

For the given three years 2011 2012 2013 respectfully, Current ratio is (3.12) (4.76)
(6.40) Times, Quick ratio is (3.07) (4.71) (6.34) Times, Gross Profit ratio is (11.35%)
(10.51%) (9.53%), Net Profit ratio is (5.39%) (5.00%) (4.52%), Debt equity ratio is (1.0)
(0.63) (0.44). Food Street’s financial position is significantly strong as compared to the
industry because it earns a huge profit and short term liquidity position is very good. So
Food Street has no bankruptcy chances.

Introduction
Now in modern age the trend of arranged traditional and fast foods is increasing day by
day due to increase in population, that is why most of the businessmen are finding the
opportunity to earn high profit in this field.
The subcontinent is popular all around the world due to its traditional food and especially
Lahore is the most popular place for its historical tradition previously 7 to 8 year back an
experiment was made in shape of Food Street this experiment was successful till up to
now and they generate a lot of profits for businessmen.
In Pakistan many cities have their own traditionally food dishes which are popular all
around the country and world. From the last decade the trend of the people towards
served food is increasing day by day.
In Pakistan, the Bahawalpur City includes in one of these cities which have their own
culture and their traditions and the population size of the Bahawalpur is also increasing
rapidly. So is the trend of the people towards served food outside their home.

Management

Partners Name Designation

Muhammad Fahad Butt Managing Director

Alia Naseeb Managing Director

Sidra Noor Managing Director

Bushra Riaz Managing Director

Demand forecast:

In Bahawalpur most of population belongs to middle class families. According to

different research surveys the numbers of people to serve the dinners at out station is
increased day by day but yet in Bahawalpur not a complete local dishes range as exists
in Lahore. People want to enjoy it over here in Bahawalpur.

Student

Bahawalpur is called mini Lahore due to its good educational institutions It is a main
division and captures thousands of students from all near cities Towns and Tehseels.
Bahawalpur city has its own university and it’s contain 8 to 12 thousand student due to
proper marketing and providing the better facilities of food on appropriate price we will
capture this market. In addition to it there are a lot of Govt. and private institutions.
Visitors:

In Bahawalpur City Cholistan desert is present, which is popular all around the world and
it also contains some historical forts from the ages of Bahawalpur Nawbs. Many tourists
come to visit them.
Families:

In Bahawalpur City not any huge hangout is present in which middle class can easily
afford dinner at good environment, so this project due to its capacity can easily capture
this market segment too..
Institutions

In Bahawalpur City many Govt. institution have no good quality mess service for their
workers. So by providing some special facilities it will also capture this market.

The economic analysis is very important for any project to find out its contribution in the
economy of the country in term of development or in term of create employment which
will be helpful to bring some healthy change in the life of the people of this city or
country.
Initial impact:
The initial impact of the food street is that it fulfills the desire of those people who are
going to Lahore to have “Desi” Food. Now their “Desi” Food desire is fulfilled in their own
city. Another thing is that through this food street we can describe our culture heritage all
over the world and Pakistan.
Now at this time in our country as well in Bahawalpur, the main problem is
unemployment. Due to opening of this project it will create job opportunities in
Bahawalpur.
A capital expenditure creates incomes for people engaged in the fabrication of capital
goods, who in turns spend their incomes on consumer goods. An initial original capital
investment creates a wave of income and spending which has multiplied effect on the
national income, increasing it by several times, the original investment. The initial
original capital investment of Rs. 21,973,000, in local currency would have a healthy
impact on the GNP of the country, the extent of which depends on the degree of
multiplied effect.