Pre-Feasibilities Studies

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Gems & Jewelry

Category: Gems & Jewelry
Sector: Gems & Jewelry
Region: Punjab
Investment Size: PKR Between 2-5 Million

Gems and jewelry is an emerging sector of Pakistan with an immense export potential. In Pakistan the current level of trade, including the vast informal sector is expected to be more than $50 million annually. Most of the exports are in form of rough stones, mainly because of lack of sophisticated processing industry in the country. The proposed project aims at filling this gap of value adding facilities in the gems industry. Financial analysis shows the unit making profit from the very first year. An enormous export market for the Pakistani gemstones exists in West Europe, USA and East Asia. It is of important significance that the gem industry and the Government of Pakistan are recognizing the potential in the local value addition and consequently import duty on lapidary equipment has been waived off. This proposed unit with modern processing machines is an addition to a gems processing industry where dozens of small players are involved in cutting and polishing by simple and unsophisticated tools which are not preferred by many trader/exporters of gems.

Category: Gems & Jewelry
Sector: Gems & Jewelry
Region: Punjab
Investment Size: PKR Between 20-50 Million

The objective of this proposed Pre-feasibility study is primarily to facilitate potential entrepreneurs with the Investment information and provide an overview about the "Gold Chain & Stoppers, Catchers etc Manufacturing Business". The proposed Prefeasibility may form the basis of an important investment decision and in order to serve this objective, the document covers various aspects of Gold Chain & Stoppers, Catchers etc Manufacturing Business Concept Development, Start-up, Production, Marketing, Finance and Business Management. This document also provides Sectoral Information, brief on Government Policies and International Scenario, which have some bearing on the Project itself. The pre-feasibility is based on the information obtained from various industry sources as well as discussions with businessmen. For financial model, since the forecast / projections relate to the future periods, actual results are likely to differ because of the events and circumstances that don’t occur frequently as expected. Whilst due care and attention has been taken in performing the exercise, no liability can be inferred for any in-accuracy or omissions reported from the results thereof. It is essential that our report be read in its entirety with financial model in order to fully comprehend the impact of key assumptions on the range of values determined. This particular Pre-feasibility is regarding "Gold Chain & Stoppers, Catchers etc. manufacturing Unit". Before studying the whole document one must consider following critical aspects, which forms basis of any Investment Decision.

Category: Gems & Jewelry
Sector: Gems & Jewelry
Region: Punjab
Investment Size: PKR Between 10-20 Million

A lack of passion for gold jewelry in Pakistan, and even amongst the Pakistani expatriates, is hard to imagine. It is a cultural idiosyncrasy within the South Asian Region. Gold jewelry is perceived not only as a decorative item but a symbol of status. The perception pervades in all classes. Another reason for the vitality of the gold jewelry market is that all domestic jewelry products are priced by weight, which results in the fact that people perceive gold jewelry as a means of security net for the future because gold alone has an internationally agreed price. Global trade for Gems and Jewellery has shown a positive growth trend showing increasing demand for these valuable fashion articles in international market. United Nation’s Statistics showed that India is the market leader right now. The subject enterprise of this pre-feasibility study is an integrated business gold jewelry manufacturing and retailing business. In the subject pre feasibility study we assume the 60% of total jewelry sold will be traditional jewelry normally available in gold jewelry shop, while 40% of total jewellery will be of designer made, which is of premium quality and high price. This designer made jewelry will target the elite class of society. Total projected cost of the project is estimated at Rs. 12.418 million. The internal rate of return (IRR), Net Present Value (NPV) and payback of the project are 56%, Rs.78.805 million and 3.48 years respectively. This pre-feasibility is being prepared by SMEDA and is intended to provide general information on the opportunity for an investor in the Gems and Jewelry sector to establish a Gold Jewellery designer made retail outlet and workshop. This would allow the project to manufacture Gold Jewellery and gems for local market and Global market as well, thereby, adding value and maximizing profits.