Apple Grading, Waxing and Packing Unit - (For Gilgit Baltistan) [Rs. 35.70 million, Jan-2017]

Apple Grading, Waxing and Packing Unit - (For Gilgit Baltistan) [Rs. 35.70 million, Jan-2017]
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02 February 2017
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Apples are in abundance but have limited shelf life and low market appeal due to their perishable nature. The entire process flow is semi-automatic requiring both skilled and unskilled workers. The unit will treat and pack the mentioned products on internationally acceptable standards making the final product compatible enough for local market and even export. The unit would add value to the fruit by bringing it to the international standards, giving it greater shelf-life and lowering the overall wastages.

There are several issues with apple grading, packing and waxing that hinders its overall value, price and market. This study is focused on proper grading, waxing and packing of fresh apple to overcome the above issues.

There are other fresh fruit such as cherries and apricot in Gilgit Baltistan but the fact is that cherries and apricot has got abundant market and higher prices in fresh form. Both cherries and apricot have lesser shelf life as compare to Apple and thus grading, waxing and packing would not add value and would not affect its prices in either retail or wholesale markets.

The proposed business involves a total investment of about Rs. 35.70 million. This includes capital investment of Rs. 34.07 million and Rs. 1.6 million as initial working capital. The project is financed through 40% debt and 60% equity. The Net Present Value (NPV) of the project is around Rs. 12.87 million with an Internal Rate of Return (IRR) of 24% and a payback period of 4.39 years.

The suitable locations for setting up the proposed unit is Gilgit Baltistan, the reason is that abundant quantity of fresh apple is produced. Within Gilgit Baltistan the main city and surrounding areas of Gilgit is proposed and the reason is that already business activities are operational there, transport, infrastructure and access to other high end down markets of Pakistan is available. The unit will provide direct employment opportunities to 29 people including management, skilled, semi-skilled and support staff. Higher return on investment and a steady growth of business is expected with the entrepreneur having some prior experience or education in the related field of business. The legal business status of this project is proposed as Sole Proprietorship.

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