Rose Water Extraction Unit [Rs. 4.0 million, Apr-2018]

Rose Water Extraction Unit [Rs. 4.0 million, Apr-2018]
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Date:
31 May 2018
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Cultivation of ornamental flowers including rose flower is concentrated around big cities such as Rawalpindi, Faisalabad, Lahore, Multan, Hyderabad and Karachi. Accordingly, these cities present an opportunity for establishment of Rose Water Processing Unit due to easy sourcing of rose petals.

The proposed project is a small sized simple steam distillation unit which would take approximately 8 hours to complete a production cycle, from rose petal input to rose water extraction. The project will be producing rose water packed in pet bottles of 750 ml and 250 ml with a ratio of 60% and 40% respectively. Total installed production capacity of rose water is 300,000 liters whereas its operational capacity will be 60% or 180,000 liters of rose water in year 1. Maximum capacity utilization is assumed at 95% (i.e. 285,000 liters). Entrepreneur’s background and
technical know-how of the business is extremely important for the success of proposed venture.

The total project cost for setting up a Rose Water Processing Unit is estimated at Rs. 4.02 million out of which Rs. 2.54 million is capital cost and Rs. 1.47 million is working capital. The project is proposed to be financed through 50% debt and 50% equity. The NPV is projected around Rs. 12.47 million, with an IRR of 66% and a payback period of 2.16 years. The project will provide employment opportunities to 14 people directly including owner as CEO. The legal business status of this project is proposed as a ‘Sole Proprietorship’.

 
 
 
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