Feasibility and Techno-Economic Viability Study

Strategy > Textile and Apparel > Feasibility and Techno-Economic Viability Study

Assistance in Debt Restructuring and Preparation of Techno-economic Viability Report for a Mumbai Based Manufacturing Unit

Project Brief

India’s leading investment bank and project advisor engaged Wazir to conduct Techno Economic Viability (TEV) study. The company in question is a leading textile manufacturer of India with a turnover of ~ Rs. 3,200 crores which was looking for restructuring of its debt.

Project Objectives:

The key objective of this assignment was to conduct a TEV study of textile manufacturing units by answering following questions:

How the various business processes such as marketing, procurement, sales etc. are structured and functioning?
What kind of organization structure changes will be required to support the envisaged growth?
How much is the current capacity and utilization level?
What is the flexibility / suitability of installed technology for various product types?
How does the productivity level compare to the industry standards?
What is the manpower scenario and related challenges, if any?
What are the various other manufacturing parameters that are being achieved vis-à-vis the industry norms?
What is the current status of global and Indian textile and apparel industry?
Which emerging macro trends are expected to impact company’s performance?
What are the future domestic and export demand trends for company’s product categories?
What is the competitive landscape?
What is the future growth potential of the entire industry in India and of the segment in which the company operates?
What are the gaps in the present operational set-up and scope of improvement along with its financial implications?

Deliverables:

Provided the Techno Economic Viability report for Proposed Debt Restructuring

Preparation of Detailed Project Feasibility Report for Establishing an Academy for Handicrafts and Handloom

Background

The client is a Government body, set up with an objective to fulfill the gap in the Handicraft sector in the areas of design/product development & technology. The client wanted to establish an academy for Handicrafts and Handloom, for this it empanelled Wazir Advisors to prepare the detailed feasibility study report.

Project Objectives:

The assignment was to conduct a feasibility study and develop a project report for academy which fulfils the desired objectives:

To improve awareness and appreciation of the Handloom and Handicraft art within and outside India
To support preservation, revival, archiving and documentation of languishing Handloom and Handicrafts
To encourage and promote study and research in the fields of Handicrafts & Handloom sector
To publish and promote literature on Handloom & Handicrafts including books & journals
To encourage art and creativity in the field of Handloom and Handicrafts

Deliverables:

Submitted the Detailed Project Report covering:

Organizational structure with minimum required experience
Financial aspects including:
1. Infrastructure cost covering land & building
2. Operating expenses
3. Revenue generation
Funding pattern to be adopted

Preparation of Bankable Techno Economic Viability (TEV) Report for Establishing a Spinning Unit

Background

Delhi based importer and dealer of various types of dress materials was looking to venture into yarn manufacturing business. Client engaged Wazir to prepare a Techno Economic Viability (TEV) report for the purpose of raising debt from financial institutions for establishing a spinning unit.

Project Objectives:

The objectives of this assignment were:

Preparation of a bankable Techno Economic Viability (TEV) report for the proposed unit
Raising long term as well as working capital loan from financial institutes
Providing assistance and handholding during implementation stage

To fulfill the stated objectives of the assignment, following steps were taken:

Understanding client’s business proposition and key requirements
Finalizing product mix by evaluating the current demand supply scenario of yarn
Deriving the appropriate sales mix for the proposed set-up

Deliverables:

Prepared a comprehensive financial plan covering:
1. Product mix details and production plan
2. Raw material, machinery and utility requirement and their financial aspects
3. Manpower requirement – operator level, technical staff and administrative staff
4. Working capital requirement
5. Sales and profit projections
6. Financial indicators
Submitted a bankable report covering:
1. Marketing plan
2. Technology selection and description
3. Manpower planning
4. Organization structure
5. Project cost and financial appraisal
6. Government schemes and subsidies to be leveraged
7. Implementation schedule