Feasibility Study for Developed Silicone Manufacturing Machine 1- Executive Summary for Investor The project involves a locally developed silicone manufacturing machine with a killer competitive advantage: we produce a kilo of silicone for molds at *only 7 SAR*, while its market price ranges from 38 to 60 SAR. Our proposed selling price is *25 SAR*. Net profit margin per kilogram = *18 SAR (257% profit)* Second advantage, unique to us: 100% recycling - after the mold wears out in a year, the customer cuts it up, returns it to the machine, and we remanufacture it without material loss. 2- Technical Description of the Machine (Core Product) - *Type:* Manual / Semi-automatic mixing and melting machine - *Capacity:* 100-liter tank = produces 90-100 kg per batch - *Components:* Stainless steel tank, powerful mixing motor, internal heaters for temperature control, thermostat - *Mechanism:* Mixes 4 raw materials (base polymer + hardener + silicone oil + rubber additives) under a specific temperature to produce high-quality, non-shrinking silicone rubber. - *End Uses for Molds:* Artificial stone molds, gypsum and decor molds, GRC/GRG molds, craft and gift molds. 3- Financial Study (Based on one machine) *A- Fixed Costs (One-time):* - Cost of manufacturing a 100-liter machine: 18,000 - 25,000 SAR - Licensing and equipping a small workshop: 3,000 SAR *B- Operational Costs and Profits (Daily calculation):* Assuming one batch per day = 100 kg Item Calculation Cost of producing 100 kg 100 x 7 = 700 SAR Sales of 100 kg 100 x 25 = 2,500 SAR **Net Daily Profit** **1,800 SAR** Monthly Profit (26 working days) **46,800 SAR** Annual Profit **561,600 SAR** > If two batches are run per day, the monthly profit exceeds 93,000 SAR. *Break-even Point:* The machine covers its full cost after selling only the first 1,400 kg, which is less than 14 working days. 4- Why is it successful in Saudi Arabia now? 1. Boom in artificial stone, decor, and GRC projects due to NEOM and Red Sea projects. 2. All gypsum workshops in Mecca, Medina, and Jeddah buy expensive, imported, shrinking silicone. 3. No local competitor offers the recycling advantage. 5- Business Plan with Investor (Two proposals) *First Proposal - Small Workshop:* Investor finances 3 machines (cost ~ 75,000 SAR) + initial raw materials 25,000 SAR = Total 100,000 SAR Production: 300 kg daily = monthly profit 140,000 SAR Profit Sharing: 50% to investor until capital is recovered in the first two months, then 30% ongoing profit. *Second Proposal - Selling the Machines Themselves:* We sell the machine itself for 35,000 - 45,000 SAR to small investors and workshop owners, including training on the formula. This is more profitable in the long run. 6- Guarantees for the Investor - Full one-year warranty on the machine. - Secret and protected formula. - Contract guaranteeing customer recycling = permanent customer loyalty. - Possibility of coloring silicone during manufacturing = an advantage.