Fruit Pulping & Grading Unit (Mango & Guava) [Rs. 757.29 million, Jun-2016]

Fruit Pulping & Grading Unit (Mango & Guava) [Rs. 757.29 million, Jun-2016]
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30 June 2017
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Nature has blessed Pakistan with an ideal climate for growing a large variety of fruits, most notably Mango, Citrus, Guava, Apple and etc. The growing demand of fruit drinks, juices, processed fruit and value added fruit products in local / international market provides ample opportunities for investment in fresh fruit processing on commercial basis.

This particular pre-feasibility study is for setting up a Fruit Pulping & Grading Unit mainly for Mango and Guava. The proposed unit is a large size business venture and assumed to be located in the cities nearby to Mango and Guava producing areas, such as Multan, Rahim Yar Khan, Mirpur Khas, Lahore or Karachi where basic infrastructure is available for easy transportation of raw material and finished goods. The finished product is pulp of Mango and Guava (i.e. used as basic raw material for juices, ice creams and other value added fruit products) along with
graded fruits to high-end super store.

The unit will have the installed capacity of producing 4,320 tons of Mango Pulp and 2,880 tons of Guava Pulp per year on seasonal basis. Similarly, installed capacity for Fruit Grading will be 6,000 tons per year. Initial operational capacity is assumed at 60% for both fruit pulping and grading while maximum operational capacity utilization is considered as 100%. This production capacity is estimated to be economically viable and justifies the huge capital as well as operational costs of the project. However, complete adherence to best agronomic practices is critical to the success of this project. Therefore, technical knowledge and experience of the entrepreneur is absolutely necessary. The entrepreneur will establish the proposed unit on purchased land along with carrying out the necessary civil works.

The Total estimated cost for setting up the proposed Fruit Pulping and Grading unit is Rs. 757.29 million with fixed investment of Rs. 673.18 million and working capital Rs. 84.11 million. The project NPV is around Rs. 836.30 million, with an IRR of 31% and Payback Period of 4.07 years. The project will provide employment opportunities to 36 people.

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