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Manufacture of Construction Equipment & Machinery

Manufacture of Construction Equipment & Machinery Introduction Need Assessment Proposed Project Financial Evaluation Construction Equipment & Machinery Introduction Long history of indecision and failure Initiated in early 1960s Transferred to PIDC in mid 1960s

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Manufacture of Construction Equipment & Machinery

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  1. Manufacture of Construction Equipment & Machinery Introduction Need Assessment Proposed Project Financial Evaluation Series 1 | Version 1

  2. Construction Equipment & MachineryIntroduction • Long history of indecision and failure • Initiated in early 1960s • Transferred to PIDC in mid 1960s • Transferred to HMC in mid 1980s • No action to-date • All construction machinery is still imported Series 1 | Version 1Investment Opportunities in Pakistan

  3. Construction Equipment & MachineryNeed Assessment • Construction machinery is vital for accelerating development • The present population of crawler bulldozers in Pakistan is estimated at around 3000 • Pakistan is importing about 100 machines per year on the average at a total foreign exchange expenditure of approximately Rs. 300 million • Import figures do not reflect actual demand which is in fact suppressed • Since large amount of public money has already been either ear-marked or disbursed for contruction activity, the need for construction equipment and machinery is bound to only increase Series 1 | Version 1Investment Opportunities in Pakistan

  4. Construction Equipment & MachineryProposed Project • The objective of the Project is to produce Construction equipment and machinery locally • The project is proposed to be located at Taxila, Lahore or Karachi • Initially an assembly plant may be set up and components purchased from local vendors such as HMC, DESCON, Karachi Shipyard etc • Initially the unit may produce only 75HP and 150HP bulldozers, loaders, excavators, etc. may be added. Series 1 | Version 1Investment Opportunities in Pakistan

  5. Construction Equipment & MachineryFinancial Evaluation • Investment - Rs. 500 million including the cost of transfer of technology, licensing fees etc. of the OEM • IRR - 18% Series 1 | Version 1Investment Opportunities in Pakistan

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