Apple Treatment Plant [Rs. 93.84 million, Aug-2017]

Apple Treatment Plant [Rs. 93.84 million, Aug-2017]
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30 August 2017
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Apple Treatment Plant is proposed to be located at Districts Kalat. This plant will focus on treating and packing apples on internationally acceptable standards thus improving the quality of these apples. Such apples will be accepted in international markets and therefore will help boost exports.

The apple treatment plant will be used to work on the post harvesting activity as a link between the international markets and the growers. The plant would add value to the fruit by bringing it to the international standards.

Greater shelf-life of treated and packed apples means that there will be low levels of spoilage and wastage. The economic effects from this process will trickle down till the levels of the traders and the growers. The project consists of automatic grading, washing, waxing and Packing machines with an installed production capacity of 4,800 tons per year in a single shift. The projections are based on single-shift production, for local sales. Export orders in the future will be fulfilled through the same production schedule. Capacity utilization will be 65% in the first year; it will increase at a rate of 5% annually and will be capped at 95% maximum. The plant is assumed to work for six months per year.

Total Cost Estimates is Rs.93, 848,150 with fixed investment Rs.87, 199,200 and working capital Rs.6,648, 951. Given the cost assumptions IRR and payback are 23 % and 4.81 years respectively.

The most critical considerations or factors for success of the project are:

Apple is an important crop in Balochistan in terms of the people employed, the value of the output, and the revenue it generates. The only reason of failure to export and no demand in the international Apple Market is mainly that Pakistan cannot supply the well processed, preserved, sorted, graded, waxed and properly packed apples as per the demand of the world market. The freshness of our apples from the orchard is not retained due to the lapse period of transportation and proper treatment, which is the main requisite of the international market.

In order to earn substantial foreign exchange its quite important to establish Apple treatment plant. It is worth mentioning that Pakistan is a developing country so in order to earn foreign exchange with the help of neglected value added fruit potential Apple Treatment Plant is the right project to execute.

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