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SHARAF LPG LIMITEDSHARAF LPG LIMITED(60,000 MT P.A LPG Storage, Bottling and Distribution Plant)(60,000 MT P.A LPG Storage, Bottling and Distribution Plant)
SHARAF LPG LIMITEDSHARAF LPG LIMITED(60,000 MT P.A LPG Storage, Bottling and Distribution Plant)(60,000 MT P.A LPG Storage, Bottling and Distribution Plant)
Head Office FactoryIFCO Complex (8th Floor)GEC Circle, Sk Mujib RoadChittagong, Bangladesh.Tel: +880 31 255 1610-11E-mail: [email protected]
Akilpur, Ward No- 096no Bashbaria UnionSitakundu,Chittagong.
Company ProfileCompany ProfileSharaf LPG Limited has been formed as a Private Limited Companyunder the Registrar of Joint Companies Bangladesh. It’s IncorporationNo is CH-12471/17.
The Company has targeted to set up a commercial LP Gas storageand Bottling plant. Govt approved to sell Bulk LPG to INDIA using ourown Jeti.
The project has been designed to fulfill present demand by providingbest LPG Bottling Service.
Total project land will be 2000 Decimal or 1200 Katha or 20 Acre
It will be equipped with modern balanced machinery and equipmentswhich will be imported from the EU as brand new.
Sharaf LPG Limited has been formed as a Private Limited Companyunder the Registrar of Joint Companies Bangladesh. It’s IncorporationNo is CH-12471/17.
The Company has targeted to set up a commercial LP Gas storageand Bottling plant. Govt approved to sell Bulk LPG to INDIA using ourown Jeti.
The project has been designed to fulfill present demand by providingbest LPG Bottling Service.
Total project land will be 2000 Decimal or 1200 Katha or 20 Acre
It will be equipped with modern balanced machinery and equipmentswhich will be imported from the EU as brand new.
Sponsors & ShareholderSponsors & ShareholderSl.No
Name Position in theCompany
1 Mr. Asifuzzaman ChowdhuryDirector- United Commercial Bank Ltd.Director- Aramit Cement Ind. LtdDirector- Akhteruzzaman Center, Chittagong.
Chairman
2 Mr. Mohammed Golam Nowsher AliCEO- Sharaf Trading Corporation (works in Bangladesh,Canada, Qatar and South America)Managing DIrector- Diamond Heaven LtdManaging DIrector- Ali Harbour & Agro Ind. Ltd.
Managing DirectorMr. Mohammed Golam Nowsher AliCEO- Sharaf Trading Corporation (works in Bangladesh,Canada, Qatar and South America)Managing DIrector- Diamond Heaven LtdManaging DIrector- Ali Harbour & Agro Ind. Ltd.
3 Mr. Nurul Alam ChowdhuryFormer Chairman, Rupali Bank Ltd.
Director
4 Mr. Faruk AhmedReal Estate and Property Development Business
Director
5 Mrs. Rowshan Akter ChowdhuryDirector- Diamond Heaven Ltd.Director- Ali Harbour & Agro Ind. Ltd
Director
Key Management PeopleKey Management PeopleSl.No
Name Position Education Experience
1 Professor Dr. JamalUddinDepartment of Finance,University of Chittagong.
Advisor-Finance
Phd, FCMA 20 Years
2 Mr. Mahmud un Nabi Advisor-Technical
MSc inEngineering
25Years
3 Mr. Taufiqur Rahman Project Director Masters inBusinessAdministration
10 years
4 Mr. Jane Alam Co-ordinator M.Com 18 years
5 Mr. Rezaul karim Plant Engineer M.Sc inEngineering
10 years
6 Mr. Ali Hossain,Former GM, Padma OilCompany LTD
GM- Marketing MBA 15 years
7 Mr. Kamal Uddin ChyFormer GM, Meghna OilCompany Ltd.
GM- Production B.Sc inEngineering
10 years
Share StructureShare Structure Eight(8) Acre is Minimum land required by the Authority The
Company needed to buy 20 Acre land for setting up thecomplete project. It costs BDT 125.00 crore. Six (6)Lacs perdecimal. One(1) Acre is 100 Decimal. After Landdevelovement project land appraisal would be 25 Lac/decimal
The initiative taken by the company for necessary licensing(e.g: Ministry Approval, Explosive, Environmental Clearance,BIDA etc) deserves a reputation value of BDT 25.00 Crore.
Thus before taking loan the total cost stands at BDT 125.00Crore.
Therefore, the company offers each share at the rate of BDT1.25 Crore.
Eight(8) Acre is Minimum land required by the Authority TheCompany needed to buy 20 Acre land for setting up thecomplete project. It costs BDT 125.00 crore. Six (6)Lacs perdecimal. One(1) Acre is 100 Decimal. After Landdevelovement project land appraisal would be 25 Lac/decimal
The initiative taken by the company for necessary licensing(e.g: Ministry Approval, Explosive, Environmental Clearance,BIDA etc) deserves a reputation value of BDT 25.00 Crore.
Thus before taking loan the total cost stands at BDT 125.00Crore.
Therefore, the company offers each share at the rate of BDT1.25 Crore.
Project and its ProspectsProject and its ProspectsLiquefied Petroleum Gas (LPG) is a rapidly growing industry in Bangladesh.
Bangladesh has much potential in terms of LPG consumption as only 6percent of the entire population has access to the natural gas, mostly inurban areas.
In 2016, total LPG market in Bangladesh was around 350,000 tonnes which was500,000 tonnes in 2017 and will reach 1million tonnes by 2020 as perresearch.
Currently 11 private companies are functioning in this sector. Their production isnot hitting the current demand and their capacities need to expanded ormore new companies need to be in the market to fulfill the demand.
In this circumstances, rapid population growth and subsequent rise in city andrural area’s domestic use leads to sharp rise in demand of LPG gas cylinder.
Sharaf LPG Limited sees a great future to enter in LPG Bottling and distributionOperation to meet the growing demand.
Liquefied Petroleum Gas (LPG) is a rapidly growing industry in Bangladesh.Bangladesh has much potential in terms of LPG consumption as only 6percent of the entire population has access to the natural gas, mostly inurban areas.
In 2016, total LPG market in Bangladesh was around 350,000 tonnes which was500,000 tonnes in 2017 and will reach 1million tonnes by 2020 as perresearch.
Currently 11 private companies are functioning in this sector. Their production isnot hitting the current demand and their capacities need to expanded ormore new companies need to be in the market to fulfill the demand.
In this circumstances, rapid population growth and subsequent rise in city andrural area’s domestic use leads to sharp rise in demand of LPG gas cylinder.
Sharaf LPG Limited sees a great future to enter in LPG Bottling and distributionOperation to meet the growing demand.
Project Implementation &Project Implementation &Commercial OperationCommercial Operation Sharaf LPG Limited set up its way of implementing the plant in
18months.
All the LP Gas tanks and equipments will be supplied from EUorigin.
A MOU has signed with DEC a Belgium company to setup on TurnKey Basis
The project is designed in a way to go for commercial operation injust 12 months. A 1250 ton mounded tank and filling hall with all thefittings and accessories will be commissioned in a period of 12months. Thus the commercial operation begins.
Later in a period of 6 months, the rest 1250x3 ton capacity will beinstalled.
Sharaf LPG Limited set up its way of implementing the plant in18months.
All the LP Gas tanks and equipments will be supplied from EUorigin.
A MOU has signed with DEC a Belgium company to setup on TurnKey Basis
The project is designed in a way to go for commercial operation injust 12 months. A 1250 ton mounded tank and filling hall with all thefittings and accessories will be commissioned in a period of 12months. Thus the commercial operation begins.
Later in a period of 6 months, the rest 1250x3 ton capacity will beinstalled.
The ProposalThe Proposal The Plant will produce 12kg, 35kg & 45kg filled LP Gas bottle under
its registered brand “HOME”. The company will also sell bulk LPG byroad tanker.
The Project will create employment opportunity of100nos directlyand 500nos in various ways.
The Fixed Cost is estimated BDT 249.58 Cr where Term Loan 50%and 41% as Owners Equity.
Sharaf LPG Limited will arrange BDT 11.42 Cr as working capitalwhich will be renewed each year.
The expected turnover for the 1st year is BDT 329.58 Cr with NetProfit of BDT 90.39 Cr at 60% Capacity Utilization.
The Plant will produce 12kg, 35kg & 45kg filled LP Gas bottle underits registered brand “HOME”. The company will also sell bulk LPG byroad tanker.
The Project will create employment opportunity of100nos directlyand 500nos in various ways.
The Fixed Cost is estimated BDT 249.58 Cr where Term Loan 50%and 41% as Owners Equity.
Sharaf LPG Limited will arrange BDT 11.42 Cr as working capitalwhich will be renewed each year.
The expected turnover for the 1st year is BDT 329.58 Cr with NetProfit of BDT 90.39 Cr at 60% Capacity Utilization.
Distribution Plan (Country wide)Distribution Plan (Country wide)
“Home”Brand LPG
Bulk Sale toCompany
Bottle toDistributor
Bulk Sale toCompany
Bottle toDistributor
Retailer
Household
Location of the ProjectLocation of the Project
Unique Advantages of the Location:The Site is located ½ km away from country’s ship breaking zone. This will make all utilities le.g: PDB connection etcavailable.The water draft in about 11m (Source: Bangladesh Navy). A 5000-7000 ton ship can be unloaded. This will help usdecrease in production cost.The project is connected with 30m wide embankment damp of the ship breaking zone. Many companies invested asignificant amount in constructing roads.The neighbouring ship breaking yard requires more than 4000 bottles a day for their operation. We can easily sellmore than 2000 bottles there.
Loca
tion
Map
Loca
tion
Map
Loca
tion
Map
Loca
tion
Map
Proposed DolphinJetty Facility
Project ConsultantProject Consultant
Rue des Marlaires, 40B-6041, Gosselies, Belgium
Tel: +32 71 34 83 70E-mail: [email protected]
Project in Bangladesh-Euro Petro ,Chittagong (Storage & Bottling)-SKS LPG, Mongla (Storage & Bottling)-Navana LPG, Mongla (Storage & Bottling)-BM Energy, Chittagong (Partial)-Omera Petroleum Ltd (LPG Tanker)
Rue des Marlaires, 40B-6041, Gosselies, Belgium
Tel: +32 71 34 83 70E-mail: [email protected]
Project in Bangladesh-Euro Petro ,Chittagong (Storage & Bottling)-SKS LPG, Mongla (Storage & Bottling)-Navana LPG, Mongla (Storage & Bottling)-BM Energy, Chittagong (Partial)-Omera Petroleum Ltd (LPG Tanker)
Project CostProject Cost
Owners'Equity41%
IDCP9%
Project Cost
Owners'Equity41%
Term Loan50%
Production & RevenueProduction & Revenue
Sl.No
Description Prod.per day(Bottle)
Prod.per
month(Bottle)
Prod.per year(Bottle)
UnitPrice(BDT)
Total Price(BDT)
1 12 kg bottle 9000 225,000 2,700,000
750 202.50 Cr
At 100% Capacity
2,700,000
2 35kg bottle 800 20,000 240,000 2200 52.80 Cr3 45kg bottle 600 15,000 180,000 3000 54.00 Cr4 18-20MT
Tanker8nos 200nos 2,400nos 10 Lac 240.00 Cr
Total 549.30 Cr
ProfitabilityProfitability
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th YearCapacity 60% 65% 65% 70% 75%
BDT(Crore)
BDT(Crore)
BDT(Crore)
BDT(Crore)
BDT(Crore)
BDT(Crore)
BDT(Crore)
BDT(Crore)
BDT(Crore)
BDT(Crore)
Revenue 329.58 357.05 357.05 384.51 411.98GrossProfit
162.98 177.79 177.27 192.05 206.82
Net Profit 90.39 102.01 103.91 116.05 128.51
Location Benefit The project is15 km from
Chittagong Metropolitanarea.
½ Km from Ship Breaking& Recycling Zone,Chittagong.
Within 2 Km from Dhaka-Chittagong Highway.
Demand & Supply Gap LPG demand is
increasing by 6% to 10%
Economic Benefit New job opportunity is
created
Public Health Public Health will be
improved
Environmental Purpose Reducing the use of
biomass will reducedeforestation
Location Benefit The project is15 km from
Chittagong Metropolitanarea.
½ Km from Ship Breaking& Recycling Zone,Chittagong.
Within 2 Km from Dhaka-Chittagong Highway.
Demand & Supply Gap LPG demand is
increasing by 6% to 10%
Economic Benefit New job opportunity is
created
Public Health Public Health will be
improved
Environmental Purpose Reducing the use of
biomass will reducedeforestation
Raw Material Import Cost/Ton (including duty,clearance etc)= USD 500.00
Raw Materials Cost/kg = BDT 42.00(1 USD= 84 BDT)
Production Overhead /kg = BDT 2.49Administrative & Selling Overhead/kg = BDT
0.79Bank Repayment/kg = BDT 7.27Cylinder Subsidy/kg = BDT 5.87Total Overhead/kg = BDT 16.42
Production Cost/kg = BDT 58.42
12kg Cylinder Production Cost = BDT 701.0512kg Cylinder Selling Price (Factory) = BDT
750.00Profit = BDT 48.95
35kg Cylinder Production Cost = BDT 2044.7435kg Cylinder Selling Price (Factory) = BDT
2200.00Profit = BDT 155.26
45kg Cylinder Production Cost = BDT 2628.9645kg Cylinder Selling Price (Factory) = BDT
3000.00Profit = BDT 371.04
Bulk 18 ton production cost = BDT 9.46 LacBulk 18 ton selling price = BDT 10.00 LacBulk 18 ton production cost = BDT 54,064
Product Costing and Profitability
Raw Material Import Cost/Ton (including duty,clearance etc)= USD 500.00
Raw Materials Cost/kg = BDT 42.00(1 USD= 84 BDT)
Production Overhead /kg = BDT 2.49Administrative & Selling Overhead/kg = BDT
0.79Bank Repayment/kg = BDT 7.27Cylinder Subsidy/kg = BDT 5.87Total Overhead/kg = BDT 16.42
Production Cost/kg = BDT 58.42
12kg Cylinder Production Cost = BDT 701.0512kg Cylinder Selling Price (Factory) = BDT
750.00Profit = BDT 48.95
35kg Cylinder Production Cost = BDT 2044.7435kg Cylinder Selling Price (Factory) = BDT
2200.00Profit = BDT 155.26
45kg Cylinder Production Cost = BDT 2628.9645kg Cylinder Selling Price (Factory) = BDT
3000.00Profit = BDT 371.04
Bulk 18 ton production cost = BDT 9.46 LacBulk 18 ton selling price = BDT 10.00 LacBulk 18 ton production cost = BDT 54,064
Financial Indicator
Capacity: 143,000MT per year Total Investment: BDT249.57 Crore 1st Year Capacity Utilization: 60% Working Capital for 1st year: BDT 11.41 Crore Return on Equity: 44.07% Return on Total Assets: 37.65% Break Even: at 33% capacity utililization DCSR: 2.95 Internal Rate of Return: 52.24% Pay Back Period: 02 years
Considering All Social, Economic and Financial Benefits, theproject is very much feasible
Financial Indicator
Capacity: 143,000MT per year Total Investment: BDT249.57 Crore 1st Year Capacity Utilization: 60% Working Capital for 1st year: BDT 11.41 Crore Return on Equity: 44.07% Return on Total Assets: 37.65% Break Even: at 33% capacity utililization DCSR: 2.95 Internal Rate of Return: 52.24% Pay Back Period: 02 years
Considering All Social, Economic and Financial Benefits, theproject is very much feasible
