Pakistan

Requirements to Start a Car Wash Service Station in Pakistan

This article provides the basic details for setting up a service station. Major services of the venture include cleaning and washing facility for different types of vehicles. However, services of different vehicles will vary according to the customers / clients requirements to keep the project operational throughout the year.

European, China and local made machinery is easily available in the local market and will be installed in the proposed station. Overall installed capacity of the unit will be to service 176 cars per day, while maximum capacity utilization of the station is assumed at 95%. The unit would be located near auto mechanic workshops, car showrooms etc, It is assumed that service station should be established in any major city of Pakistan because of development and increase in the number of vehicles. This car wash service station project will provide direct employment to 6 individuals including the Owner / Manager.

The station will have an installed capacity of servicing 176 auto vehicles per day on single shift of 8 hours basis. Initial operational capacity is assumed at 55% whereas maximum operational capacity utilization is considered as 95% per day. This production capacity is estimated to be economically viable and justifies the capital as well as operational costs of the project. However, entrepreneur’s knowledge of industry, quality services, competitive pricing and customer satisfaction are important factors for the success of this project.

The estimated total cost of a car wash service station in Pakistan is Rs. 4.092 million out of which Rs. 3.194 million is the capital cost and Rs. 0.897 million is for working capital. The project is to be financed through 50% debt and 50% equity. The project NPV is around Rs. 6.37 million, with an IRR of 44% and Payback Period of 3.17 years. The project will provide employment opportunities to 6 people including Owner / Manager. The legal business status of this project is proposed as ‘Sole Proprietorship.

Factors for Success of Car Wash Service Station in Pakistan

The commercial viability of the proposed car wash service station depends on the following factors:

  • Location of the project is of prime importance.
  • Selection of technical / skilled staff is a crucial decision.
  • Continuous efforts for up-gradation of technology.
  • Effective PR & marketing skills.
  • Selection of proper equipment and staff.
  • Quality of services provided to the customers in order to get a comparative advantage.

It is assumed that service station should be established in any major city such as Lahore, Karachi, Sukkur, Hyderabad, Faisalabad, Sargodha, Multan, Quetta, D.I. Khan, Nowshera and Peshawar, etc., because of development and increase in the number of vehicles.

The demand for service stations is directly linked with the rising number of vehicles and population growth. The potential target market for the proposed station is densely populated cities such as Karachi, Lahore, Peshawar, Quetta, Rawalpindi, Islamabad and all other major cities / towns of Pakistan.

Operational Capacity of Car Wash Service Station in Pakistan

The total installed capacity of the proposed service station is to provide cleaning and washing services to around 57,000 vehicles and other items annually. The estimated time for four wheeler is assumed as 30 minutes per vehicle, whereas for motor bikes it is 15 minutes and similarly for carpets and other items is 20 minutes. In the first year of operation service center is assumed to operate at 55% of installed capacity and so will able to perform 33,000 jobs of cleaning and washing cars.

Space Requirements for Car Wash in Pakistan

The stations operating in the industry do not follow any set pattern. The space requirement for the car wash is estimated considering wash and full service facilities including a waiting room, machines room, wash room, washing area, parking, workers room, etc. Total space required for car wash is 10-20 marlas.

Machinery & Equipment Requirement for Cash Wash in Pakistan

Following is a list of machinery & equipment required for the service station:

  • 6 Tons Cap. Single Post Semi Hydraulic Vehicle Service Lift with Control Valve, Girder Chasis, Axle Supports
  • Air compressor 4Hp, 3Ph, Tank Capacity 230 Liters, imported / Pak assembled c/w standard accessories
  • Lift Oil (150L)
  • Washing Hose (Imported) 50ft
  • Air Hose (Imported) 50ft
  • Mechanical Grease Gun / Oil Gun / Service Gun 2 1,500 3,000 Jet wash pump with 2Hp/3Ph electric motor
  • Quick Foam Dispenser (Stainless Steel)
  • Vacuum Cleaner (Model BF585-3)
  • Pipes and other equipment
  • Tools
  • Engine for Machinery

Raw material required for service station includes surf / shampoo, diesel, grease, oil and cloth / towel are easily available in the local markets anywhere in Pakistan.

Investment Required for Car Service Station Business in Pakistan

The estimated total cost of a car wash service station in Pakistan is Rs. 4.092 million. All the figures in this financial model have been calculated for estimated sales of Rs. 4.13 million in the year one. The capacity utilization during year one is worked out at 55% with 10% increase in subsequent years up to the maximum capacity utilization of 95%. The internal rate of return, payback period and net present value of the service station venture can be studies in the pre-feasibility study of car wash service station business in Pakistan by SMEDA.

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8 Comments

  1. Very Useful information but equipment hydraulic Lift jack available in INDIA in only 75,000 t0 3.5 Lac each which is the major part & working capital is Rs 30000 Pak Rupee required for per month basis and return will be gain from 3 to 5 Years its means its a very good business no experience no education required which is terrible.

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