PROJECT CONSULTANTS FOR
PROJECT REPORTS FOR SMEs [Rs. 10000/- ONLY]
CHECK THE PROJECT COST OR TOTAL INVESTMENT:
What is the Project Cost or Total Investment required for any of 10000 projects
listed on the Web Site for Project Reports for SMEs? This is the most frequently
asked FAQ (frequently asked question) from entrepreneurs and promoters.
‘Back of the envelope’ estimates of project costs or total investments
for a typical year of full operations are given at the end of project names.
Each of these projects is found viable at the levels of investment and
operation underlying the project cost estimates. The exact amounts of
project costs will be worked out only on receipt of Confirmed Orders for
The total investment includes Fixed Capital and Working Capital.
In the case of Projects at S. Nos. with (*), Fixed Capital includes
the cost of land and building. In the case of other Projects, the business
premises are assumed as rented. Working capital represents about
three months’ requirement of funds for meeting operating expenses.
The project cost represents the total investment requirement
for a full year of operations after commissioning the project.
The estimates of total investments ought not discourage the promoters
of SME projects. The estimates of investment requirements should instill
a sense of realism in place of an otherwise euphoric feeling among
the promoters of new projects.
The promoters have the flexibility of scheduling the projects in phases.
They may also use just-in-time management practices to reduce
the working capital requirements. By assuming working capital as
one month’s requirement and by arranging working capital loans,
the amount of working capital margin to be included in project cost
or total investment may be drastically brought down. With these steps, the
promoters will be able to revise amounts of funds mobilized and utilized.
One may note that, in the case of many inputs-intensive projects,
the working capital requirements exceed fixed capital requirements.
In order to help the promoters of SME/SSI projects in their efforts to
Identify and select projects for implementation, the ratios between
Fixed Capital (FC) and Working Capital (WC) are indicated
at the end of of project names given on this Web Site.
For market studies and project consultancy services, promoters can contact:
FINANCEMAN ASSOCIATES Copyright© 2007