Feasibility Study of Jute Mill Setup in Bangladesh

Topics: Jute, Variable cost, Bangladesh Pages: 60 (8806 words) Published: May 23, 2011



Office Factory 19/8 Tajmahal Road, Charmuguria, Block – C Madaripur. Mohammadpur,


Back ground and Importance of the project

Bangladesh is one of the third world countries. National economy of this country is best with enormous natural calamities like flood, drought etc. Besides, the country is facing tremendous unemployment problem. It is over populated and the per capital income is alarmingly low. While the agricultural sector of the country contributes about 65% of the gross domestic product (GDP), the contribution of the industrial sector is about 10% still then the country is required to speed up the process of industrialization to increase domestic production for local consumption, import substitute and for export. The rapid industrialization will also help to solve unemployment problem.

The Government of Bangladesh has therefore formulated industrial policy allowing enough fiscal and monetary benefits to attract the investors to set up industries, particularly, the government has put much emphasis for setting up of agro-based export substitute industries which will ultimately contribute to the valuable foreign exchange savings of the country. Some of the main features of the new industrial policy are:

← To develop export oriented, export linkage backward and efficient import substitute industries. ← To especially encourage the development of export oriented Garments & its backward linkage industries. ← And above all, to develop the industrial sector in order to increase its contribution to the GDP, income, resources and employment.

The contribution of this sub-sector to GDP is about 5% and employs about 5 million people directly and indirectly. The country’s macro-economic stability because of economic reforms under taken in the recent years has been commended by the donor agencies and development organization. The export oriented labor incentive projects will bring foreign currency, generate employment and broaden the industrial base of the country and it will prove to be major steps forward in the development process of the country.

In order to cope with the need for accelerating the growth of industries and to contribute the national economy, the sponsors envisage to set up a 100% export oriented jute sacking bag Hessian cloth and C.B jute yarn manufacturing units in the name & style of KHAN JUTE MILLS LTD On implementation the project will not only earn valuable foreign currency by producing quality products but also ensure employment of 545 persons.

Executive Summery

|1. Name of the project |KHAN JUTE MILLS LTD | |2. Location: |, Charmuguria,Dist. Madaripur | |3. Type of Industry: |Manufacturing of 100% export Oriented Jute sacking bag. | |4. Type of Organization: |Private Limited Company | |5. Total Fixed cost: |Tk 229.349 million | |6. Cost of Land: |Tk 50.400 million | |7. Cost of civil works: |Tk.36.583 million | |8. Cost of Imported machinery: |Tk. 101.514 million | |9. Cost of Local machinery: |Tk. 19.240 million...
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