Rice husking and polishing unit is a project of food sector, in which, rice paddy is processed for conversion into polished rice. The project is proposed to be set up in any major city of Pakistan. The unit would be de-husking rice paddy and polishing rice grains to convert it into a value added, marketable product. The unit would be providing husking and polishing services to rice producers along with husking and polishing Basmati and Irri rice paddy purchased from the market. Rice is grown on irrigated areas of all the four provinces of Pakistan. Rice crop is sown in the months of June/July and harvested in September/October. The crop needs fertile land and fertilizers for good yield. There are a number of different varieties of rice produced in Pakistan, major varieties include the Basmati and IRRI of which the world renowned Super Basmati is only produced in Pakistan. Rice Production in Pakistan has increased greatly in the past 3-4 years. There is immense potential for value addition in the rice sector in post harvest processing, such as quality polishing and packaging. Branded rice is becoming popular in both domestic and international markets. Basmati rice is renowned and has a huge market world over, due its taste, aroma and nutritious value. This segment offers opportunities in rice processing and marketing of branded rice. The total initial cost for setting up the unit is estimated at Rs. 84.431 million. The project is proposed to be financed through 50% debt and 50% equity. The project NPV is projected around Rs. 152.326 million, with an IRR of 40% and a payback period of 3.86 years. The legal business status of this project is proposed as ‘Sole Proprietorship’. The total capacity of the husking unit is 8,736 tonnes per year and the polishing unit is proposed to have a capacity of 9,984 tonnes per year. The project would initially run at 60% production capacity in year 1 and eventually reach 100% production capacity in fifth year. The unit would operate for 16 hours per day at 100% capacity, working in 2 shifts of 8 hours each.

This particular pre-feasibility is regarding “Bakery & Confectionery”. Major products in this case would be cakes, snacks, sweets, nimko, biscuits, bread and general items. In order to attract a cross section of population, a combination of 2 outlets, one in a low-income area and another in a posh area, is used in this study along with 25% sales to other bakeries at trade discount of 10 %. Project Capacity cannot be based on machinery capacity, as the same oven will be having different capacities for different products. This business segment is labor intensive. The proposed bakery outlet will be working from 6.00 am morning to 12.00 midnight. Number of working days has been taken as 355 with average 2 shifts per day. Selection and number of outlets would totally depend upon the mix of target population. For example if we start this venture in bigger cities, one might select more sophisticated outlets with the emphasis on best decor and interior design. But in case of smaller cities, one would prefer to go for a mix, which has more traditional products. Any big city with a total population of over 1 million is the ideal location for the project. Ultimately it has to be observed that how to compete and build the name of the Bakery & Confectionery. Areas like Defense, Gulberg, Model Town need heavy investment and areas like Saman Abad, Allama Iqbal Town, Johar Town and Old City needs more traditional varieties of foodstuff. Bakery and confectionery business is emerging as one of the good business ventures in Pakistan as it provides varieties of bakery items. This phenomenon grew rapidly; and today thousands of bakeries exist in the big cities. Over the decades, the bakeries have evolved even further. Now, one sees that offer larger varieties of mock tails and cocktails, sweets and nimko and much more. Marketing and branding of Bakery & Confectionery will play a key role in the mobilization of targeted number of customers. Major marketing options include, site advertisement, cable ads and handbills among other traditional marketing channels. Positioning of the product, cost of developing and manufacturing the product, cost of competitive products and condition of the economy will determine price of the product. A Bakery and Confectionery needs a capital investment estimated at Rs. 18.845 million for construction and purchasing machinery & equipment. In addition to this, an estimated sum of Rs. 1.108 million is required as working capital. The total project cost is estimated at Rs. 19.953 million. Projected IRR, Net Present Value (NPV) and Payback of this project are 29%, Rs. 15.694 million and 3.44 years respectively.

This feasibility study provides information and guide line about the investment opportunity in a unit of processing & canning of vegetables and meat in Pakistan. Currently Pakistan Army is purchasing the tinned food from different suppliers. M/s Shezan is the major supplier with 80% share. This project has the capability of diversifying the product mix and enlarging the product length by producing other related products with the same infrastructural facility. The project is labour intensive and semi mechanized.

The project involves processing of fresh mangoes for export from Pakistan The process would include undertaking value-added activity(s), which will increase the quality and shelf life of Pakistani mangoes for the international market. Pakistani Mangoes have huge demand in the international market due to its rich flavor, aroma, and health value, i.e., nutrients and minerals contents. It has been observed that in order to enter into the international markets with longer shelf life, good quality mangoes will require physical infrastructure facilities like modern processing and logistics1. The major scope of processing activities will include post harvest handling, pre-cooling, grading, ripening, packing and logistics. Mango processing unit will also provide services to other exporters of mangoes who do not have their own processing facilities; this may also include provision of cold transportation service up to the port of exit.

This project is related to setting up an ice plant of 15-tons capacity per day to cater to the needs of the institutions such as hotels, restaurants, bakeries, dairy, fish seller’s etc. The proposed project will manufacture ice blocks varying from 130 kg to 150 kg in weight.

The project involves setting up a plant for processing of fresh kinnows for export from Pakistan. The process would include undertaking value-added activity(s), which will increase the quality and shelf life of Pakistani kinnows for the international market. The selected target market is the Middle East, Europe, Russia and Ukraine. Pakistani kinnows have huge demand in the international market due to its rich flavour, aroma. It has been observed that in order to enter into the international markets with longer shelf life, good quality kinnows will require physical infrastructure facilities like modern processing and logistics. The major scope of processing activities will include post harvest sorting, washing, waxing, drying, grading, packing and logistics. The produce is brought to kinnow processing factories generally in small trucks of 5 metric tonne capacity. After unloading, the produce is washed, waxed, dried, graded, packed and labelled in the processing plant. After packing (cardboard and wooden boxes), fruit is transported to Karachi Port either in open-top trucks or refrigerated containers. Then it is shipped to different countries. The problems associated with Kinnow export include low produce quality, lack of storage facilities, non-availability of quality packing, poor transportation facilities, high freight charges, weak role of export promoting agencies and inconsistent government policies. This project introduces a feasible process for export of fresh kinnows. The total project cost for setting up this processing plant is estimated at Rs. 67.09 million. The project is financed through 50% debt and 50% equity. The project NPV is around Rs. 206.115 million, with an IRR of 74.84% and payback period of 4.39 years. The legal business status of this project is proposed as ‘Sole Proprietorship’. The overall proposed processing capacity of the plant is 17,280 metric ton kinnows per year. However, the plant will operate at 50% capacity in the first year and at 95% capacity in the tenth year, as the number of shifts will increase annually. The 12.5% of the total production is used for local sales and the remaining is exported to the international market.

This SME venture entails setting up a Meat Shop in Lahore, the second largest city of Pakistan. The outlet is proposed to cater to the demand of hygienically processed, quality mutton and beef. The shop would be located in commercial markets of middle to upper middle income group residential areas. The proposed products available in the shop would be beef with bones, boneless beef and mutton, cut into pieces or minced according to the customers’ requirement. The retail shop is a project of trading nature; slaughtered animals are proposed to be purchased from a slaughterhouse and sold at the meat shop. Red meat is a naturally nutrient-rich food item and provides many essential nutrients such as protein, iron, zinc, vitamins etc that our body require for optimum health. Due to its quality and taste, red meat has become a core food in our diet and is purchased on a regular basis. The demand for meat is constantly rising with the growing population. The local market is dominated by a number of small shops opened in several residential and commercial areas. However, these shops rarely follow the required cleanliness standards; except for a few recently introduced shops in high income group residential areas. With increasing awareness, the trend has shifted from purchase of meat through small unhygienic shops to making purchases through well-known grocery stores or newly built hygiene conscious shops. The total initial project cost for setting up a single outlet in first year is estimated at Rs. 1.330 million. The project is proposed to be financed through 50% debt and 50% equity. The project NPV is projected around Rs. 10.057 million, with an IRR of 61% and payback period of 3.47 years. The legal business status of this project is proposed as ‘Sole Proprietorship’. It is proposed that the project starts its operations with opening of one shop in the first year and would expand business by setting up an additional outlet in the third year. It is proposed that the shops would remain open for 10 hours, five days a week. The proposed project assumes to sell around 40,500 kg mutton and 32,400 kg beef in first year of operation and gradually sell out a maximum of 76,950 kg mutton and 61,560 kg beef in sixth year through its first outlet. By seventh year of operation both the shops are projected to sell a total of 153,900 kg mutton and 123,120 kg beef, achieving maximum capacity.

The project involves setting up a Milk Pasteurization unit in any big city of Pakistan. Milk pasteurization increases the shelf-life of milk by destroying certain pathogens found in milk. The process involves heating of milk to a specific temperature for a time period and then cooling it immediately. After completion of the pasteurization process milk will be packaged into 1-litre plastic pouches for distribution through various departmental stores in the city. The unit will be using modern automated machinery for all the processes, ensuring quality check through out the production process. Pakistan has one of the highest per capita milk and dairy products consumption rates in Asia (150-200 litters per year) and is the fourth largest milk producing country in the world with approximately 33 billion litres annual milk production. Higher milk yield is indeed a notable aspect of the milk sector. However, only 3-4% of the total milk is processed and marketed through formal channels whereas the remaining 97% of the milk reaches end users for immediate consumption through an extensive, multi-layered distribution system of middlemen. Given that the milk distribution operates mostly in informal sector and the demand for processed milk is increasing with the growing awareness among the public, this project has great potential. The total project cost for setting up this plant is estimated at Rs. 41.606 million. The project is financed through 50% debt and 50% equity. The project NPV is around Rs. 30.846 million, with an IRR of 35% and payback period of 3.77 years. The legal status of this business is proposed as ‘Sole Proprietorship’. The overall proposed processing capacity of the plant is 2,000 litres per hour. The plant will work in a single 8-hour shift and will operate at 50% capacity in the first year. The maximum capacity attained is 95% and the plant operates at this capacity sixth year onwards. PREF-

The project involves setting up a Potato Chips Manufacturing unit in any big city of Pakistan. The unit will produce premium quality potato chips to be sold in the local market, competing with a few existing brands. The unit will be using modern automated machinery for all the processes, ensuring quality check through out the production process. After processing, the finished potato chips are packed in 3 different packet sizes. The opportunity of the snack food business was almost unknown to the investors of Pakistan up to the mid-eighties and since then the investment in this sector has been fairly moderate. Even during that time, the Pakistani snacks market was represented by biscuits and corn-based products. Potato chips have recently appeared on the snacks market and taken up a major share. Over the past few years the demand for snacks in general and potato chips has been on the rise, causing a gap between demand and supply. This gap opens up an opportunity to set up units to produce good quality snacks at optimum production level. Most of the snack manufacturing units are set-up in Lahore and Karachi. The total project cost for setting up this plant is estimated at Rs. 63.537 million. The project is financed through 50% debt and 50% equity. The project NPV is around Rs. 211.063 million, with an IRR of 45% and payback period of 4.18 years. The legal business status of this project is proposed as ‘Sole Proprietorship’. The overall proposed production capacity of the plant is 150 kg potato chips per hour. The plant will work in two shifts and operate at 50% capacity in the first year. The maximum capacity attained is 95% and the plant operates at this capacity sixth year onwards. PREF-

The Rice Husking and Polishing unit is a project of the food sector. The unit would be providing husking and polishing services to rice producers. Additionally, the unit would be purchasing Basmati and Irri rice paddy for de-husking and polishing the rice to sell it into the market. The husking unit would operate 7 months in a year and polishing unit works all year round. The project is proposed to be set up in any big city of Pakistan. The total capacity of the husking unit is 8,736 tonnes per year and the polishing unit is proposed to have a capacity of 9,984 tonnes per year. The project would initially run at 60% production capacity in year 1 and eventually reach 100% production capacity over the years. The unit would operate for 16 hours per day at 100% capacity, working in 2 shifts of 8 hours each.

The proposed project has been designed as a medium scale-processing unit. It describes the processing facilities for Tomato Paste and Pulps of fruits like Apple, Mango Guava etc. with processing capacity of 5-10 ton per hour of fresh Tomato/Fruits. This feasibility has been made specifically to produce products, such as tomato paste and fruits pulp of Mango, Apple. However Guava, Strawberry, Apricot, etc. have potential demand with local fruit/vegetable processors as well as the retail market, so they can also be produced by using the following set up of business. Introduction of vegetable and fruit processing facilities in the country can contribute in reducing the dependence of local industry on imported tomato paste. The paste is currently being imported mainly from China, Turkey and Iran. In Pakistan, processing of vegetables and fruit products is a viable and profitable business opportunity that is yet to be fully exploited.