Air conditioning factory

Study request

The project is to establish a factory to assemble air conditioners. The factory assembles air conditioners of various types, as these products are widely used in homes, companies, factories, hotels, and other different uses. Air conditioners have become indispensable nowadays due to the high temperatures in the summer and the low temperatures in the winter. Air conditioning changes the temperature in the place where it is located. It cools the air if the temperature rises, and in the winter when the temperature drops, the air conditioner heats the place where it is located. The feasibility study of the air conditioning factory project reveals that the project is considered one of the investment opportunities that achieve high financial and economic returns compared to other projects.

Capital

rate of return

Recovery period Third year

Project Description

Mashroo3k Company for Feasibility Studies and Business Plans undertakes the task of preparing a feasibility study for the air conditioning factory project in terms of marketing, technical and financial aspects. The company analyzes the project comprehensively in terms of the idea, components and nature of the project. It also analyzes the market size, competitors and products offered by the factory in the target markets. After analyzing the market size, it is proven that there is an urgent need for the project’s products, which are air conditioners of various types. <The factory offers its products with the highest levels of international quality and at competitive prices that satisfy all customers, by relying on the latest production lines and the best technical equipment. The factory also relies on leading cadres in the field (technical – administrative) who are distinguished by providing products that conform to international specifications and standards for various targeted sectors represented in; (agents and distributors of companies – hotel equipment companies – commercial companies and export companies – homes and private companies), and the factory seeks to take full advantage of the high rates of demand for these products, and is keen to acquire the highest percentage of the marketing gap. <Mashroo3k Company relies on an integrated team of experts, specialists and consultants (more than 500 consultants) in the process of implementing the feasibility study of the air conditioning factory project (marketing – technical – financial). This team conducts extensive research in local and international government bodies and sources specialized in the field of preparing feasibility studies to provide an approved study that is compatible with the standards followed in preparing feasibility studies globally. Through Mashroo3k Company, a team of highly qualified technical experts is used in the process of selecting and providing raw materials, production lines and other technical equipment from equipment, tools and machines and supplying them from the best approved and reliable suppliers and major international companies in the field of the project. The company takes into account that these equipment, lines and materials are compatible with the requirements of the project and with the country in which the project will be established. Among the additional advantages of Your Project Company is that it has obtained the ISO certificate in quality, and it has also obtained many international accreditations in the field of purchasing.

Project Products

Air conditioners of all types and strengths.

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.

Use of industrial technology.
Use of high quality raw materials.
Air conditioner assembly depends on experts and technicians.
Increase the operating efficiency of corporate agents and distributors.
Increase the GDP of air conditioners.

Executive Summary

About the project
Financial Indicators
Rationale for the project
Government investment incentives in the project field
Target Markets
Project indicators and final results

Study of project services/products

Project description and all its products/services.
Project advantages and production requirements.

Market size study.

Understanding distribution channels.
Consumer behavior, preferences, and tendencies.
Competitors’ products or services, along with their strengths and weaknesses.
Market nature and its characteristics.
The demand size for the offered product or service.
The available share of the target market.
The optimal marketing strategy.

Risk assessment study.

Risk identification.
The impact of risks on the project.
Risk prevention methods.

Technical study

A detailed description of the project’s products, expected production capacity, and determination of investment costs.
Determining the required electricity and water capacity.
Determining the project’s labor requirements.
Determining the project’s requirements.
Calculating construction and building costs.
Calculating the total capital
Determining the annual operating costs.
Determining the amount of working capital.

Financial study.

Total investment costs required for the project.
Organizing cash flow statements, income statements, and the balance sheet for the first ten years of operation.
Determine the expected annual revenues of the project in light of the specified operational capacities
The optimal financing structure for the project in light of investors’ capabilities and financing conditions.
The project’s financial indicators and sensitivity analysis.

Organizational and administrative study.

Project workforce.
Organizational structure.
Job responsibilities.

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, including both operating factories and those under construction.
The building materials industry holds the largest share of factories in the Kingdom, with 2,016 factories, followed by the metal industry with 1,705 factories.
The number of food factories in the Kingdom reaches 1,445 factories.
The plastic and rubber industry has 1,317 factories.
The number of operating factories, according to the latest statistics, reaches 8,258 factories.
The number of licensed workers in these operating factories reaches 967,119 workers.
The capital of these operating factories reaches 1,214,762,000,000 SAR.
The Riyadh region holds 39.4% of the total operating factories, with 3,255 factories.
The Eastern Province holds 41.4% of the total capital of operating factories, amounting to 503,448,000,000 SAR.
Medium-sized factories account for approximately 46.9% of the total number of operating factories
The number of factories under construction is estimated at about 1,880.
According to the latest available statistics, the number of licensed workers in factories under construction is 84,342 workers, and their capital is estimated at 67,264,000,000 SAR.
Food products account for the largest number of factories under construction, with 249 factories (13.4%), followed by rubber and plastic 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 cities and industrial 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.