Kinnow Processing Unit [Rs. 129.49 million, Jun-2018]

Kinnow Processing Unit [Rs. 129.49 million, Jun-2018]
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25 June 2018
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´╗┐Pakistani Kinnows have huge demand across the globe especially in Middle East and Europe due to its taste, quality and aroma. But due to lack of processing facilities in the country, Pakistan’s share in international market is quite low. This particular pre-feasibility provides basic information for setting up a medium sized Kinnow Processing Facility for post-harvest treatment of Kinnows as per international standards.

The proposed processing unit comprises of semi-automatic grading, washing, waxing and packing machines with an installed capacity to process 10,800 metric tons of Kinnows per year. The unit will operate with 60% operational efficiency in first year with maximum capacity utilization of 95%. The plant is assumed to work out on seasonal basis (i.e. 135 days per year). This production capacity is estimated to be economically viable and justifies the high project investment. However, complete adherence to best agronomic practices is critical to the success of this project. As per proposed business model, fresh kinnows will be purchased from the local market and after processing will primarily be sold in international as well as local market.

The estimated cost of the project is Rs. 129.49 million out of which Rs. 101.04 million would be capital investment and remaining Rs. 28.44 million would be for working capital. The project is proposed to be financed through 50% debt and 50% equity. The project NPV is around Rs. 173.11 million, with an IRR of 43% and payback period of 2.75 years. The project will provide employment opportunities to 113 people (105 seasonal employees and 08 permanent staff). The legal business status of this project is proposed as ‘Sole Proprietorship’.

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