Project Economical Hypothesis/ Economical Viability

1ST Year

Investment

a.         Total Cost at Completion                                                                Rs. 591 Million

Total Production of ASV from 50 Horses in 5 Cycles                         60000 vials of 10 ml or if lyophilized

Market appreciable value/ vial                                                                  Rs. 1000/ Vial

(Presently polyvalent lyophilized serum from India costs Rs. 1500-2000/ vial and NIH made Liquid ASV at rate of Rs. 700/ Vial, although both are having old Ammonium Sulphate precipitation method whereas Sindh Project is having modern techniques)

Possible Income if entire stock sold out                                               Rs.60,000,000 (60 m)

Investment                                                                                                         Rs 591    Million

Income                                                                                                                 Rs. 60     Million

Net Outstanding                                                                                               Rs. – 531 Million

2nd Year

 

Investment

 a.         Balance Capital Cost                                                                Rs. -531      Million

  1. Annual Recurring expenses                                                     Rs.  18.00   Million
  2. Total                                                                                                    Rs. 549.00  Million

 Total Production of ASV from 100 Horses in 5 Cycles                       60000 vials of 10 ml or if lyophilized

Market appreciable value of Lyophilized ASV                                    Rs. 1000/ Vial

Possible Income if entire stock sold out                                               Rs. 60,000,000

Outstanding                                                                                         Rs. 549 Million

Income                                                                                                Rs. 60   Million

Net                                                                                                       Rs. 489 Million

With the increasing demand the lab can generate more profits without further investment except expenditure for purchase of additional animals, construction cost of their housing and additional feeding and additional chemical costs. It is therefore likely that the project itself will return the initial investment within 15 to 20 years of operation if no retreating factor involves, however it will carry potential of expansion for production of other essential sera like Anti rabies vaccine (ARV) with minor investments to multifold the profit ratio and recovery of initial investment much earlier.