Premier Electronics (Pvt.) Limited Seeks Funding for Expansion

According to the statistics of the Government of Pakistan, we are in the need of 100 Million Energy Saving Lamps in Pakistan per annum, while, if we look at the local manufacturing, only one unit has started production, which will never ever be able to meet the market requirements.

Premier was established in 1997 with the firm name “Sikson International” in Mirpur Azad Kashmir. It was a partnership firm which was producing machinery parts and components of those categories which were earlier not being produced in Pakistan. Parts of Cast Polyurethane and Thermoplastic Polyurethane were first ever launched in Pakistan by Sikson in the field of Textile, Polypropylene, Polyester and Tobacco industries.

In 2005, the management entered in the field of Electric Accessories and Components. This was the time when the management realized that we are facing tremendous shortage of electricity and, in the future, the gap between demand and supply will be widened. It was also realized that other countries are saving their electricity by using Energy Saving Lamps, and we are lacking behind. So, this was the time to enter this field and encash the market situation. Hence, in 2006, a new partnership firm, “Premier Enterprises” was launched through which the management started to import Energy Saving Lamps from China.

Keeping in view the importance and vital role of Energy Saving Lamps in our life, in 2006 and 2007 our Chief Executive personally took the technical training for the manufacturing of Energy Saving Lamps from Experts from China for two years to get the product technology and to set up a production unit. After getting the training, the management started establishing its 1st and Paksitan's 2nd largest Energy Saving Lamps Unit in Pakistan which was completed in 2008. Same year we got excellent production quality and launched own brand in the market known as "Powerlite" which got very good market reputation. Now, the Chief Executive has vast experience in the field of Energy Saving Lamps which is an additional asset to the Organization. Currently, the official value of the project is more than US$350,000/=

Being local manufacturer, we have total edge of buyer's confidence, as for the time being we have no local manufacturing. If we discuss from the cost point of view, we have directly 30% more benefit than an importer. We have a market of 110 millions Energy Saving Lamps. Keeping in view the competition between the importers, quality is going to decrease day by day, while on the other hand we can produce excellent quality product at the same price.

Simply, the cost of production in competition with importers is the major rationale of project. In addition, the production capacity can be further increased with the least amount of time and money and that can be extended to 30000 lamps per day. The other most important rationale is that the total investment can be reimbursed within one year from the date of production. In figures, it is as follows:-

Total production per year : 3,000,000
Total Cost of Production : US$ 3,000,000/=
Sales Value : US$ 4,000,000/=
Net Profit before Tax : US$ 1,000,000/=
Net Profit after Tax : US$ 650,000/=

Financing is required for the expansion and installation of the Energy Saving Lamp Tube manufacturing unit. The project requires about US$250,000/=. Further US$250,000/= are required as working capital.

As far as installment is concerned, it can be negotiated on an installment plan with period from 3 to 5 years.