Marble Industry Swot Analysis.imsciences

In the semester system, we have to submit an assignment in the end of every semester. In this semester (4th) we have to given a topic regarding with subject of agricultural finance by SIR KARIMULLAH. As the necessary requirement of the subject I with my group members select this topic (A short Case On The Development Of Marble Industry In N.W.F.P) as our final 4th’s semester report in the subject of Agricultural Finance under coordination of our subject teacher. Every subject has its own important while this course helps us a lot in consideration with understanding of basic agricultural prospective regarding with finance.

PREFACE: Getting pure information is some thing difficult while it’s also takes time to get data on the relevant topic. The report draws heavily from the experiences and opinions of the experts in the field of marble industry and personal efforts. We studied different reports which were prepared on the relevant topic. In The Month of October the Relevant Topic was assigned to us . we were gone to different marble industries located on BARA and JAMROOD. We also went to MALAGORI INDUSTRY for the purposes of attaining the related data. People are not willingly to provide data because they considered us as government related officers or some about income tax officers, which ultimate results in hiding of exact information. Transportation to these areas also creates problems. People of these areas are feel hesitation to meet us in English dress which ultimately leads us to different difficulties too. People of this areas are very helpful and having a great realm of hospitality. Our personal visit to these areas was something difficult because of lacking of time, because public transportation takes time to reach selected sites.

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TOPICS

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Executive summary.

The marble industry in the N.W.F.P was going to peak but recent crises effects it much and more. Marble sector of the Pakistan contributes Pakistan exports largely. A huge foreign and domestic investment comes for this sector. Italy would invest $100 million in Pakistan's marble industry. While the stones of marbles are mostly available in the rural areas of N.W.F.P, Peshawar. The main theme about our report is to highlight the different problems regarding with financial and non financial areas of its processing. Study profiles, entire spectrum of the local marble ranging from the availability and location of the deposits to their mining, processing, exporting related problems.

Financial issues and problems in the marble industry of Bara (Peshawar). Introduction.

My name is rehman I belong t Peshawar I bought this factory from 3 years from now. About inside of the factory, I have divided my factory in different portion. my factory is situated on a huge area, while I have divide the area of my factory into four main portion or stages the division of my report is based on stages wise procession of raw material.

Portion 1

This is the main area of factory it is called lifter this portion of factory lift up the big stone it is further divided into one following parts.  Chain  Motor The total cost of this machine is Rs 150000. This is the most common type of machine just like a liver which is run by a pump machine. The most risky factor in my factory because some time chain may be broken while weakness of string is a risky matter may be it can broken down so that why my labor feel it risky

Portion 2

This portion is also called Karain which cost lies from 6-8 hundred thousands. the second most important part of the industry which is further consisted on following main items and machine.  Karain. The main machine which is used for lifting the big stones.

 Paltry. It is just like the train paltry used for movement during the cutting process of stones. I purchased it through scrape centre in Peshawar.  Upper Blade. The main cutter which is used as a main part in the cutting process.  Rightward blade. From the right side it is used for cutting and making of small pieces.  Water pump and pipe. for the smooth cutting of the stones and making it into large thin plates water performs its function well.  Handle machine. One individual skill person is required for running the machine, it is just like the computer machine which is controlled through 2 main gears and handles. It always required two persons fro its operations. a separate small Room is required for its operation and its handling.

Portion 3

The third main portion of the machine is consists on 3 main cutters which further cut the main stones into small parts of 9 inches to 4 inches tiles. The total cost of the machine is 20-25 thousands per blade which is consumed with in 10-15 days. Every baled is run and operated through a water pump whish is a cost of Rs: 100000. The whole machine is operated and controlled penal board which is operated by 2 persons. As the big stone of 7-8 tones may be divided into 800 to 1000 feet, as it depends upon the nature and condition of the stones. As one blade of Rs: 5000 is consumed with in 10-15 days on the daily basis of cutting of 120 feet. The 3 employees are required for the whole cutting process, these are employees are directed related with each others in cutting process.

Portion 4

As the big stones are cut into little small pieces of 9-4 inches .these are called tiles. These tiles are further are further transferred to a machine for polishing called buffer. This polishing machine is further divided on following parts,  Gutka cost

Rs 600

 Buffer cost

Rs 1600

 Rag mall

Rs 700

 Chemical mixer

Rs 245

The total cost of polishing=

Rs. 3145

As I feel problems in cost of production, which is further divided into following consideration on the monthly basis,

total

Truck cost per Salary of the

Polishing

cost of stone

loading

cost

per 10 tons

during the

daily cost of

10000 per

month 25000 per

60000 per

3145 per

food and tee 25000 per

month

truck in 2

month

day

month,

employees

Electricity cost &

weeks

& 500 per day on

Rs.10000 per

Rs.75000 per

Rs.60000 per

Rs.94350

food Rs.40000 per

month

month

month

per month

month

Thus the total cost of the production is Rs.3, 59350. I have recorded my sale of 300-400 feet of tiles daily while per feet price of Rs.50. Thus the total sale per month is (400*30=12000*50=Rs.600000.) Thus the gross profit on the monthly basis stood at (Rs.600000-Rs359350) =Rs.240650 per month. This must be kept in mind that the mentioned gross profit is out of failure blasting cost, means if one blast is failure then I have to bear Rs 7000080000, an extra amount as a loss, which I have to bear alone. My contract is signed in such a way that I have to do my best in 2 blast while if one become worthless then an extra loss I have to bear which is as like an expense of rupees seventy thousands. Now I come to my main consideration of issues and problems associated with my factory, I have to put inventory like stock

of marble tiles, while due to large financial crises and a huge loss done in real estate people are unwillingly to buy my product, now because of cost which is increasing in form of raw material and other fixed expenses. Instead of systematic risk which can not be eliminated, the availability of skilled labor is a main problem for me. Marble along or in combination with some other materials are extensively used for the construction of all sorts of decoration items, matching many minds of requirements. Marble sector is growing at an annual rate of 13% and has been a major provider of raw –tiles, finished tiles and other products to the provinces of N.W.F.P and Punjab .According to current updates there are 1450 units in processing in sector of marble industry.

Problems in Mining and production of marble

Mining is done on the old techniques including uncontrolled blasting. The main problem associated with mining is wastage or marble tiles and stones as well as more extra cost are bared by the owner of the industry. An other main problem is associated with basic machinery and equipments like compressors, drill set and lifters are not available. Which is not only creates a colossal wastage but also to low production of mines. In this area average production of mines is 10 tones a day, none of the owner of the mining and the expert at mines knows the reserves, topography of the mine and chemical or geological analysis of the stones.

Problems in production process:

The manufacturing processes included cutting and polishing of marble slabs and tiles. Initially, these units were using dry cutting process but due to regulatory measures, most of them switched over to wet cutting process. “Significant quantity of water is used to cool blades and catch the dust formed during the cutting process. Water is showered on blades while marble blocks are cut into sheets of varying thickness. Resultantly, the water cools the blades and absorbs marble dust produced during the process,” said the report. The wastewater is routed to a series of settling tanks, in which marble dust settles down partially and water is recycled. These settling tanks are not being used effectively due to arbitrary design and usage, the report added. Refraining from doing these desired practices the mining industry is constantly facing problems as follows; • Loss of up to 73% with poor quality of remaining product •

Destruction of valuable national recourses through cracks.

• Low productivity at mine due to unqualified staff at mines , and low technology .

• Lack of distribution channels including raw materials and finished good warehousing. Problems in major transportation. There are different hurdles and problems associated with transportation and its cost of carriage. The truck and heavy tractors are used for this purpose which ultimately increased the cost of production. The owner of the industry does not want to own its truck, while he pays approximately 800 per ton.

Problems associated with labors and workers. There is not availability of skilled labors, while due to inflation workers demand high wages and salary, while the owner response is negative impression about electricity, the owner says he has to pay a fixed amount of bill around about one hundred thousands per month. Machinery for marble industry Machinery for working marble constitutes one of the sectors that reflect Italy’s tradition, ability and leadership in the production of marble and granite and in technology for quarrying and working them and transforming them into high-quality finished products ready for use in the building trade.

MACHINERY REQUIRED: 1) Bench Cutter for splitting – 12” X 24” 2) Resizing Machine, Double blade – 12” X 12” 3) Resizing Machine, Single blade – 24” X 24” 4) Manual Polisher with Pneumatic Pressure 5) Manual Polisher, Single Head 6) Cross Cutter Machine, Double blade; 7) Calibrator Machine, Double head; and 8) Chamfering Machine

Problems in the cost and operation of the machinery. The cost of machinery is high while to operate it we need most expert labors while it also need to highlight the importance of skilled labors which ultimately produced by training institutions.

Q.NO.1 As profit per feet in a month (240650/12000) =Rs.2 per feet. This is decreasing at month wise due to increase of raw material cost and high payment of labor cost, while what should I do for reducing the raw material cost in the way of production process? Q.NO.2 Real estate prices are decreasing day by day, while due to high out flow of capital from N.W.F.P (Peshawar) to Dubai, now people have any option to invest in building and construction, while my product is directly related with construction, what I should do for increasing the production and selling of my products whether I should do MARKET DIVERSIFICATION and what proper cost effective channel of distribution to other markets? Q.NO.3 As there is systematic risk, that is uncontrollable, and whole economy is facing a huge financial stress and some time my factory remain off due to bad circumstances, but I have to pay a huge amount on monthly basis, while on the other hand there remain no income in certain month so it creates a financial gap for me, what should I do for completing this gap instead of going to any financial institution which is considered by my family as conventional?