Olive Oil Extraction Unit [Rs. 12.77 million, Jun-2017]

Olive Oil Extraction Unit [Rs. 12.77 million, Jun-2017]
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12 July 2017
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Olive Oil Extraction Unit is proposed to be located in Pothohar region which is a large plateau region in north-eastern Pakistan covering an area of 8,592 square miles. It has been identified as suitable for olive production because of its favorable climate and ideal topography.

The demand for olive oil is increasing day by day due to eating habits of people of Pakistan. Local production does not meet the demand which indicates a huge potential for growing olive trees. Pakistan imported 7.38 million dollars’ worth olive oil from the world in the year 2015.

The proposed unit has a capacity to process 200 kgs of olive fruit per hour which will produce 40 liters of Olive Oil under ideal conditions and produce 57,600 liters of virgin oil per annum based on 60 working days (1,440 hours a season, working three shifts per day). The unit will extract olive oil through centrifugation process of olives and cake will be sold to local market. The product will be sold in 3 different
packages of 0.5, 1.0 and 4.0 liter.

The proposed Olive Oil Extraction Unit comprise a total investment of Rs. 12.77 million with fixed investment of Rs. 11.30 million and working capital of Rs. 1.47 million. The Net Present Value (NPV) of the project is Rs. 6.51 million with an Internal Rate of Return (IRR) of 26% and a payback period of 4.65 years. The project will provide employment opportunity to 13 people. 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.

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