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May 1997

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Subject:
From:
"OMNI High Tech Industries Ltd. (OHTIL)" <[log in to unmask]>
Date:
Mon, 19 May 1997 05:59:54 +0600
Content-Type:
text/plain
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text/plain (308 lines)
Sub:	Invitation to cooperate to build a printed circuit board manufacturing 
Plant in  Bangladesh.



Dear Sir

We are implementing a double sided and multi-layer PCB manufacturing plant
in Bangladesh We invite you to duplicate the PCB manufacturing plant of your
country in Bangladesh.

The reasons for selecting Bangladesh:

The key incentives to come to Bangladesh are the lowest infrastructure, the
lowest overhead expenses, and the cheapest skilled and unskilled labor in
the world. The Board of Investment of Bangladesh put the following
advertisement:

Bangladesh has the lowest cost to production ratio in the world. Which means
that no matter what
you make, it will be much, much more economical to make it in Bangladesh.
Add to that fact we have one of the lowest inflation rates in the whole of
Asia, and a pro-investment policies have encouraged some of the biggest
names in the business to set up operations in Bangladesh. Names like
UNILEVER, BRITISH AMERICAN TOBACCO, HOECHST, BATA, CIBA-GEIGY, BASF,
MARUBENI, CHIYDA, SINGER, SIEMENS, TOOTAL, NESTLE, AKZO NOBEL,NEW ZEALAND
DAIRY BOARD, KUOK GROUP, OCCIDENTAL, DAEWOO, HYUNDAI, BOC, RHONE POULENC RORER.
There's one name missing though, a name we'd love to add to this list.
YOURS. But you'll want to know more about what Bangladesh can do for your
business. You could write to any of the organizations, but it would be
easier to get in touch with us.

We're standing by for your call.

BOARD OF INVESTMENT

Prime Minister's  Office, Shilpa Bhaban, 91 Motijheel C/A, Dhaka 1000,
Bangladesh, Tel: 880-952-63573,9567541 Fax: 880-2-9562312, E-mail:
[log in to unmask] or [log in to unmask] 


We invite you to join with us to make this effort a successful one and open
the window to explore unlimited opportunities that exists in this part of
the world. We are looking forward to your cooperation in technology transfer
for implementing the PCB plant, training the engineers for maintenance of
the plant, equity participation, procuring and financing of the plant
equipments. With your cooperation and guidance this project will be sure
success and will place us in a lead role in this industry. If we put our
honest and sincere effort to take the benefits of this part of the world, we
will establish a bridge to revolutionize the economy of the world. You can
devote more of your resources for improving the technology and for new
innovative efforts in your country and the repetitious work like
manufacturing can be done in Bangladesh. If we cooperate with each other we
firmly believe that this project will surpass our goal and we will be able
to deliver aggressive offshore pricing while maintaining the quality and
reliability.

With the use of new telecommunication technology in Internet such as web
phoning, we will feel no difference about this PCB Plant in Bangladesh than
compare to one in any other country. Rather it will be a better one using
the numerous advantages available in Bangladesh. The plant will be in Export
Processing Zone (EPZ) in Bangladesh. The labor situation and other
facilities in EPZ is as good as any States in USA. Using the abundant cheap
manpower available in Bangladesh we can be very prompt and can be far ahead
of the deadline of our customers in USA and other part of the world. From my
education, work experience in plants and microprocessor based device in PCB,
and business development experience in USA, we don't see any reason for our
joint venture partners in USA not go for this lucrative project.

After the completion of this project, we desire to involve ourselves in
other part of PCB industry i.e. from substrate manufacturing, assembly,
testing troubleshooting to shipping the finished product. We are also
advancing to implement the following projects:
 
1.  Printed Circuit Board manufacturing industry in Bangladesh.
2.  Improving the Internet services in Bangladesh in collaboration with USA
companies.
3.  Start Data entry projects in Bangladesh.
4.  Complete the data entry part in Bangladesh for the Professional
Recruiting and          Specialized Consulting Franchise venture of
INTELLECTS INC. in USA.
5.  Create skilled manpower for software and hardware development in Bangladesh.
6.  Bring USA hardware and software companies to take the advantage of
abundant and         cheap labor and create another Silicon Valley in
Bangladesh.
7.  Improving the telecommunication services in Bangladesh in collaboration
with USA        companies.
8.  Start telemedicine-remote diagnosis in Bangladesh with institution like
Massachusetts General Hospital. 
9.  Improve the power situation in Bangladesh through Nuclear Power Plant.






PCB Project:

The project under discussion is a project of 2, 4, 6 & 8 layer Printed
Circuit Board of 30,000 sqm/year at 100% capacity.

A recent study conducted by SAARC fund for regional development for Printed
Circuit Board has revealed that the projected world PCB Market by year 2000
is expected to reach US $ 31.9 billion for all types of PCBs. The market for
Multilayer Printed Circuit Boards will grow by 11% in US market. The Asian
average growth rate is estimated to increase by 10.2% from 5.2 billion
dollar in 1990.

The present estimated project cost is approx. 227 million BD. Tk. or US $
5.33 million (includes Building & Civil Works, Plant & equipment & others). 

Cost of the Project:

Building & Civil works: 	US$   	254K
Plant & Equipment		US$   4,320K
Misc. Fixed Assets		US$      77K
Prel./Pre-op expenses		US$      88K
Int. during const.		US$     198K
Margin on W/Capital		US$     149K 
Contingencies			US$	245K


The project will have initi calapacity of
Double Sided 			: 10,000 square meters
Multi-layer (4,6,8 layer)	: 20,000 square meters

The capacity build-up in 1st 5 consecutive years is estimated to be as follows:

		     I		II		III		IV		V
% Capacity	   43.00       66.67           83.67	       93.33	      93.33
Utilization

Production	  12,900      20,000	      25,000	      28,000	     28,000
(Sq. Mtrs.)

The rates considered:  in  US $
Type of boards			2X		4X		6X		8X	
Rate per Sq. meters US $      161.00	      380.00	      589.00	      791.00








Cost of manufacture & Profitability Estimates
Units in US$ '000-Thousands(K)
		Year-1		Year-2		Year-3		Year-4		Year-5
Sales		 4,498		  6812		  8589		  9705		  9705
Materials	 2,593            4050	          5188		  5954		  5954
Salary/Wages       161		   223             303	   	   318             334
Other FtyOH        271		   398	           531		    69		   583
Admn/Sales         157      	   238	           301		   340		   340
Net Profit	   408		  1017	          1437	          1745		  1797

The expected sales at full capacity is 413 million BD Tk. or 9.7 million US
$. The cost of goods is 294 million BD Tk. or US $ 6.9 million. The expected
gross profit of the project after full operation is expected to be 119
million BD Tk. or US $ 2.8 million and the expected net profit is expected
to be 76.5 million BD Tk. or US $ 1.8 million.  

Financial and Economic Indicators

1. Gross Profit to Sales		29.94%
2. Net Profit to Sales 			15.45%
3. Return to Equity			69.49%
4. Return on Investment			20.85%
5. Current Ratio			 5.65%
6. Internal Rate of Return (IRA)	39.04%
7. Net Present Value (NPV)	    US$ 9,501K
8. Pay Back period	 	     3-4 years
9. Debt Service Coverage Ratio		3.11
10. Generation of Employment		175

We are looking for foreign partners who can provide the following:

	Technical Collaboration - Supplying initial technology to start up and
commission the project, train the local man-power, ensure quality
acceptability by international importers, select appropriate machinery at an
internationally competitive market price incorporating CAD/CAM system and
keep the technology regularly updated.
	
	Marketing

	0	It is imperative that 100% of the products of this factory be exported
to USA 	and other industrialized countries.
	0	The export price should be internationally competitive. The approximate
present ruling market price has been estimated to be 0.104, 0.299, 0.375
and 0.507 dollar per sq. inch for 2, 4, 6 and 8 layer PCBs respectively
as compared to the corresponding estimated imported material cost of
80.34, 160, 264, 373, etc. per sqm. 

	Imported materials may be supplied by joint venture partners from abroad
against each order.

	The list of major equipment is attached - please quote for the same items
giving unit wise and detailed specification (preferably with catalog
enclosed). Please further quote for a copper recovery and pollution control
system.

	Equity Participation

Estimated total cost of the project is about 5 million dollar which we
anticipate to be financed as follows :
		Term Loan :	70%
		Equity    :	30%

	The equity composition is proposed to be as follows :
	a.	Sponsors and right share reserved	50%
	b.	Public issue		  		50%
	
		Distribution of the sponsors equity and right share 

		a.	Local sponsor and share reserved for sponsors to be
inducted     -25%

		b.	Foreign share holders    - 25%

The above mentioned sharing program may be reviewed upon more detailed
discussion with all parties.


On the above circumstances, we would like to discuss further the financial
involvement and joint venture issues with the interested parties. We are
eagerly waiting for a positive response at your earliest convenience.

Thanks for your time and cooperation.

We are looking forward to hear from you.

Sincerely


(Syed Arif Mahmud)
President




List of Major Equipment


*	CAD-CAM System with plotter
*	Computer controlled 4-headed drilling machines for 18"x24" pans,el
w/automatic tool changers, Tape reader and control panel.
*	Programmer, computer controlled with accessories.
*	Modular conveyorised Etcher & Dry film stripper.
*	Scrubbers - inner & outer layers.
*	automatic gold Nickel Tip plater.
*	Acid Copper & Tin plating lines complete w/spurge lines, heater,
controllers, filter 	system, 2000 Amp. rectifier.
*	Automatic programmable Electroless Copper plating line.
*	Conveyorised Tin/solder strip & Chemical clean lines.
*	Hot Air Leveller, with pre & post clean lines.
*	Semi Auto Screen Printing machines & Flip top Printer.
*	Hot Roll Laminators with cleaner : Exposure units - Double Drawers &
Conveyorised Developer w/driver.
*	Power Shear, Hydraulic, Router, Beveler, Saw, Notcher.
*	Computerized numerically controlled Routers - 4 spindles.
*	Diazo Developer, Micro Modifier, Film Processor, Film Punch.
*	Electrical Bare Board Tester : 25000 test points.
*	Automatic Optical Inspection System (AOI)
*	Multilayer Laminating Presses : Hot & Cool
*	Prep rood Accessories, Caul Plates, Vacuum, Gel Tester, Arbor Press,
Overarm Micrometer, etc.
*	Bottom Drill with TV Camera
*	X-ray machine with Polaroid Attachment


Laboratory & Inspection Equipment

*	Metallurgical Microscope with attached camera
*	Micro-sectioning equipment
*	Non-destructive Testers
*	Magnifying circular lens for visual inspection
*	Microscopes, pull tester
*	and most importantly an electrical bare-board tester

****************************************************************************
******
*										 *
*	Syed Arif Mahmud							 *
*	Executive President							 *	
*	OMNI High Tech Industries Ltd						 *
*	INTELLECTS INC.								 *
*										 *
*       Bangladesh Office:			USA Office:			 *
*	House No. 71/1				Austin, TX 78741		 *	
*	Road No.  7/A (New)			Phone: 1-500-367-2743		 *
*	Dhanmondi R/A				Email: [log in to unmask]	 *
*       Dhaka 1209, Bangladesh			Home Phone: (011-880-2) 871014	 *
*	Phone: (011-880-2) 816543,9110364	Fax: (011-880-2)816546, 816648	 *
*						 				 *
****************************************************************************
******	

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