LED Bulb Factory Project

Study request

The main idea of the LED bulb factory project is to establish a facility for manufacturing LED lighting products, offering high-quality LED bulbs at competitive prices by utilizing the best available production lines in this field. The factory provides products such as light tube assemblies, light panels, and bulb assemblies in sizes 60×60 and 30×30. The factory targets various sectors, including electrical supply stores, construction and contracting companies, corporations, factories, offices, hotels, serviced apartments, and commercial and residential complexes, capitalizing on the growing demand for these products in target markets. The feasibility study for the LED bulb factory project highlights that this is a promising investment opportunity with high financial profits and significant economic returns for investors.

Capital

rate of return

Recovery period السنه الثالثة

Project description

mashroo3k Consulting undertakes the preparation of a feasibility study for the LED bulb factory project, where the team studies the project idea, its components, nature, feasibility, and the level of competition in the target markets. They also analyze and study the market size, revealing a significant demand for the project’s products, including light tube assemblies, light panels, and bulb assemblies in sizes 60×60 and 30×30. These products are essential in all establishments, as no building is complete without them due to their ultra-bright lighting, wide illumination angle, strong and focused brightness, minimal heat emission, low energy consumption, and eco-friendliness. The factory offers high-quality LED bulb products at competitive prices by utilizing the best available production lines and advanced technologies in the field. The demand for LED bulbs continues to grow steadily due to their numerous advantages over traditional lighting, including efficiency, longer operational life, and their ability to replace conventional bulbs. The project aims to meet market demand by replacing imported LED bulbs and securing a strong market position through a commitment to product quality and competitive pricing for all target sectors, including electrical supply stores, construction and contracting companies, corporations, factories, offices, hotels, serviced apartments, and commercial and residential complexes.

Project products

Tube bulbs (60 cm).
Bulbs (tube 120 cm).
LED bulbs (Filment).
LED bulbs E27.

Why Mashroo3k ?

Mashroo3k has over 10 years of experience in preparing feasibility studies, conducting market research, and providing comprehensive consulting services.
Mashroo3k has offices in 7 international branches, located in Saudi Arabia, the UAE, Egypt, Qatar, Oman, Yemen, and Iraq, in addition to its agents in China, Singapore, and other countries.
Having delivered over 7,000 feasibility studies, Mashroo3k has helped thousands of clients achieve their investment goals.
Mashroo3k’s services are accredited and trusted by all financial institutions and funding entities across the Middle East.
The company’s geographic reach spans 35 countries across all continents.
Mashroo3k holds membership in over 100 prestigious international organizations specializing in market research and business management.
Its team consists of 350 consultants with deep expertise in promising economic sectors, ensuring tailored solutions and strategies that meet clients’ needs.
Mashroo3k is partnered with more than 10,200 suppliers across 22 countries, providing logistical support for projects, including production lines, raw materials, machinery, and equipment.
With an extensive database, Mashroo3k enhances the accuracy of its forecasts and analyses, strengthening its risk management capabilities.

Pay attention to the quality of raw materials.
Having a highly qualified team.
High-quality workers and technicians.
Take care of the general cleanliness of the factory.
Accurate and disciplined management supervision.
Commitment to maintaining the quality of products during assembly.
Utilizing high technology in the LED assembly process.
The project will assemble LED bulbs with high quality and efficiency.
Maintaining the safety and validity of products during packing and transportation operations.
Attention to testing processes for bulbs to ensure the safety of products for use.

Executive summary

About the project
Financial indicators
Rationale for the project
Government investment incentives in the project area
Target markets
Indicators and final results of the project

Study the project’s services/products

Description of the project and all its products/services
Project features and production requirements

Studying the market size

Familiarity with distribution channels
Consumer behavior, desires, and preferences
Competitors’ products or services, their strengths and weaknesses
Market Nature and Characteristics
The size of the demand for the product or service offered
Available share of the target market
Marketing Optimization

Risk study

Risk identification
The impact of risk on the project
Risk prevention methods

Technical study

Detailed description of the project’s products Expected production capacity Determination of investment costs
Electricity and water sizing
Determine the project’s labor needs
Determine project requirements
Calculating construction costs
Calculating Total Capital
Calculating construction costs
Calculating construction costs

Financial study

Financial study
Organize the flow and income statements as well as the statement of financial position for the first ten years of operation
Determine the size of the projected annual revenue for the project in light of the identified operational capacities
The optimal financing structure for the project in light of the investors’ capabilities and the conditions for granting financing
Project financial indicators and sensitivity analysis

Organizational and management study

Manpower for the project
Organizational structure
Functional tasks

The Kingdom of Saudi Arabia has paved the way for development with its ambitious Vision 2030, which aims at economic diversification, the renaissance of non-oil sectors and increasing the contribution of the private sector to GDP, and this can only be achieved through the renaissance of industry and mining as two main tributaries in major economies, and the Kingdom is determined to increase their participation in its GDP by about 15%. When talking about industry in the Kingdom, it should be noted that it was not born out of the moment, but rather it has been extended and rooted since the discovery of oil in the Kingdom in the late thirties of the last century. Over the decades, the Kingdom spared no effort to develop its industry; it established the Industrial Development Fund (1974), the Royal Commission for Jubail and Yanbu (1975), and SABIC in 1976. The roles and tasks undertaken by these institutions and the programs they worked on to grow the industrial sector and develop its performance and working mechanisms are no secret to anyone. As a result of the efforts exerted years ago in this direction, the number of factories in the Kingdom today has increased to more than 10,000 factories. We, Mashroo3k , believe in the importance of the industrial sector and its role in driving the economy, so we will present its most important indicators below so that anyone wishing to invest in it can be aware of them:

The total number of factories in Saudi Arabia now reaches 10,138 factories; these factories include (productive factories and factories under construction).
The building materials industry accounts for the largest percentage of the number of factories in the Kingdom, with (2,016 factories), followed by the metals industry (1,705 factories).
The number of food factories in the Kingdom is 1,445 factories.
The plastics and rubber industry has 1,317 factories.
The number of producing factories – according to the latest statistics – reaches 8,258 factories.
The number of licensed workers in these producing factories reaches 967,119 workers.
The capital of these producing factories reaches 1,214,762,000,000 riyals.
The Riyadh region accounts for 39.4% of the number of producing factories, with (3255 factories).
The Eastern Region accounts for 41.4% of the total capital of productive factories, amounting to (503,448,000,000 riyals).
The percentage of medium-sized factories is estimated at about 46.9% of the total number of producing factories.
The number of factories under construction is estimated at about 1,880.
According to the latest statistics available to us, the number of licensed workers for these factories under construction is 84,342 workers. The capital of these factories was estimated at about 67,264,000,000 riyals.
Food products account for the largest number of factories under construction, with 249 factories (13.4%), followed by rubber and plastics products, with 222 factories (11.9%).
Small establishments account for 72.4% of the total number of factories under construction.
The largest number of factories under construction is located within the geographical scope of Riyadh; Riyadh alone accounts for 43.9% of the total number of these factories, followed by the Eastern Region with a percentage exceeding 19.2%, and then the Makkah Al-Mukarramah Region with a percentage of 9.6%.

- Today, the Kingdom is developing 14 industrial cities and oases with a total area of 34 million km^2.
- Investment in the industrial sector increases by 16%.
- Vision 2030 has contributed to pumping more money into the industrial sector; the money invested in the sector (before the vision) amounted to approximately 955.4 billion riyals and this number rose to 1.11 trillion riyals by the end of 2020.
- The Ministry of Industry and Mineral Resources has provided many services to investors through the “Industrial” electronic platform, such as: (industrial licensing service, customs exemption service which enables the investor to obtain customs exemption for machines, raw materials and spare parts, labor support service, chemical clearance).
- The Saudi Industrial Development Fund offers many incentive programs, Like this: (Prospects, competitiveness, localization, renewable). The fund is credited with contributing to expanding the industrial scope, to the extent that it may provide you with 75% of the project value (as a loan) in some economically promising areas. Like this: (Hail, Tabuk, Al-Jawf, etc.) for a period of up to 20 years as a maximum financing period. It is worth noting here that the amount of money disbursed from the fund is estimated at 121.1 billion riyals until the end of December 31, 2020.