PRE-FEASIBILITY REPORT - pcsir-lhr.gov.pk · Pakistan Institute of Minerals and Advance ... The objective of the pre-feasibility study is primarily to facilitate ... Pre-feasibility

PRE-FEASIBILITY REPORT

Production of bio-inoculums for agriculture exploitation

Prepared by

Dr. Quratulain Syed

Submitted to

Director, Planning & DevelopmentPCSIR, Labs Complex Lahore

Food &Biotechnology Research Center

Pakistan Council of Scientific & Industrial Research Laboratories Complex,Lahore 54600

Pre-feasibility Report

1. Introduction to PCSIR (LLC)

PCSIR Laboratories Complex Lahore is functioning under the PCSIR Act of 1973. Established

in 1953 as an autonomous body registered under the society act of 1860 was re-constituted by an act of

parliament in 1973, allowing it to play direct role in national development, having greater emphasis on

providing R&D solutions to Industrial problems, helping Industry to manage and reduce waste and use

indigenous material/processes/technology, to increase their internal rate of return to be more

competitive.

At present PCSIR Laboratories Complex, Lahore possesses a multifunctional R&D facility,

comprising of following Research Centers:

i. Applied Chemistry Research Centre

ii. Applied Physics Computers and Instrumentation Centre

iii. Center for Development of Laboratory Equipment

iv. Center for Environmental Protection Studies

v. Electrical Measurement and Test Laboratory

vi. Engineering Services Centre

vii. Food and Biotechnology Research Centre

viii. Glass & Ceramics Research Centre

ix. Mineral Processing Research Centre

x. Pakistan Institute of Minerals and Advance Engineering Materials

xi. 1.1. Food and Biotechnology research center

xii. Food and Biotechnology Research Centre was established in 1977 by the merger of two separate

divisions namely, Biological Evaluation and Fermentation and Food Technology & Nutrition.

Among the major objectives of this centre are the assistance in the establishment l development of

food and biotechnology industry in the country through value-added output from low-priced raw

material, bio-resource development and utilization, quality assurance of finished products,

resolution of industrial trouble-shooting, and attracting small and medium level entrepreneurs to

establish the industry. The Centre has well equipped laboratory, functional pilot plant, Integrated

experimental field. In addition to the usual laboratory needs, specialized instruments include

automatic absorptions spectrophotometer (AAS), high performance liquid chromatograph (HPLC)..


gas chromatograph (GC, Ion Exchange Chromatograph, testing services of centre in the field of

microbiology, mycotoxin & approximate analysis of food & feeding stuff are accreditated under

ISO\IEC 17025:2005 with PNAC.


xiii. 2. Disclaimerxiv.xv. In this document, we provide the information based upon the data and information collected from

research and other reliable sources which may differ from case to case. FBRC, PCSIR Lahore

and its employees do not assume any liability of any financial or other loss resulting from

memorandum in consequence of undertaking this activity. The contained information does not

preclude any further professional advice. The perspective user of this document is encouraged to

carry out other additional diligence and gather any information which is necessary for making an

informed decision, including taking professional advice from a qualified consultant/technical

expert before taking any decision to act upon the information.

xvi.

xvii. 2. Purpose of the Documentxviii.

xix. The objective of the pre-feasibility study is primarily to facilitate potential

entrepreneurs to facilitate investment and provide an overview about the product / technology

business. The project pre-feasibility may form the basis of an important investment decision and in

order to serve this objective, the document covers various aspects of product / technology business

concept development, start-up, production, marketing, finance and business management.

xx.xxi. 3. Project Briefxxii.

Biofertilizers are defined as preparations containing living cells or latent cells of efficient

strains of microorganisms that help crop plants' uptake of nutrients by their interactions in the

rhizosphere when applied through seed or soil. They accelerate certain microbial processes in the soil

which augment the extent of availability of nutrients in a form easily assimilated by plants.

Biofertilizers have been identified as alternative to chemical fertilizers to increase soil fertility and crop

production in sustainable farming. There are abundant microorganisms thriving in soil, especially in the

rhizosphere of plants. It is well known that a considerable number of bacterial and fungal species possess a

functional relationship and constitute a holistic system with plants. They are able to exert beneficial effects on

plant growth. Application of beneficial microbes in agricultural practices started about 50 years ago and there is

now an increasing evidence that these beneficial microbial populations can also enhance plant resistance to

adverse environmental stresses, e.g. water and nutrient deficiency and heavy metal contamination.

As the disadvantages of the use of chemicals in agriculture have been noticed in recent years,


a ^ch for alternatives for chemical fe rtilizers and pesticides has started throughout the world. The

use of chemical fertilizers as well as pesticides is much more in developing countries as compared to

developed countries. Organic farming is the only alternative to get rid of chemical fe rtilizers and

synthetic pesticides. There is increasing awareness about organic agriculture practices in the world.

Organic agriculture is the growing food without pesticides and fe rtilizers. Organic production is a

system of farming that restores, maintains and enhances ecological balance.

4. Benefits of the Product 1 Technology

The major consumer of this product is the agriculture sector. More than 70 % of our population is

living in villages and these people are directly involved in the filed of agriculture. So its local production

would lead to support a huge protion of population. Its production also improved the the yield of crops in

cheaper way. Some other benefits are also given as.

1) They help to get high yield of crops by making the soil rich with nutrients and useful

microorganisms necessary for the growth of the plants.

2) Biofertilizers have replaced the chemical fertilizers as chemical fertilizers are not beneficial for the

plants. They decrease the growth of the plants and make the environment polluted by releasing

harmful chemicals.

3) Plant growth can be increased if biofe rtilizers are used, because they contain natural components

which do not harm the plants but do the vice versa.

4) If the soil will be free of chemicals, it will retain its fertility which will be beneficial for the plants

as well as the environment, because plants will be protected from ge tting any diseases and

environment will be free of pollutants.

5) Biofertilizers destroy those harmful components from the soil which cause diseases in the plants.

Plants can also be protected against drought and other strict conditions by using biofertilizers.

6) Biofe rtilizers are not costly and even poor farmers can make use of them.

4.1 Swot Analysis


SWOT Analysis helps in decision making for investment in a project or business. It stands for Strength ,

Weakness , Opportunities and Threats . These analysis factors of our project are given below:

4.1.1 Strength:4.1-z 4.1.3

•

If biofertilizer industry is promoted, many job opportunities will be

created.

•

One time investment can produce different types of biofertilizers as

per requirements depending upon types of crops and nature of soil.

• Availability of cheaper labor and raw material is possible.

4.1. 1 T'eakness:• As it is imported in huge quantities and also being

produced by other institute working in Public sector, so it has minimized profit margin in

local production.

4.1., 1(pportunities:• The need of biofertilizer is increasing day by day due to its

application in agricultural sector

• Great potential is existed in the local market being a agriculture

country as more than 70 % population is lived in rural area and directly involved in this sector,

4.1.1.1.1ireats:• Political instability can affect the smooth running of the business.

• As the local market is already captured by the imported product as

well as the products of other institutes, it is little bit difficult to penetrate in the captured market.

4.2 43 Conclusions and Recommendations :

4.4 The SWOT structure presented above cleared almost all the

important aspects of the project. In the nut shell, the project is worthwhile having great potential in the

local market.

4.5

4.3 4 4 Critical Success Factors :

• Planned & rational promotional and advertising activities are required.

• Strong media campaign is required to provide the awareness to the consumers/formers so thatconsumers can preferly be used biofertilizers to enhance crop's production by employing cheapersources.

4.5 4 6 Other Success Factors :


Advance orders of Production would ensure the success of our project.

• Use of abundantly available indigenous raw materials.

• Offering competitive prices.

• Comprehensive R&D is required to reduce the manufacturing cost as well as to improve the quality of

biofertilzers in terms of efficiency.

• 5. Market Analyses

At present limited production facility is available locally in private sector or government

organizations. Most of the product demand is also met through Import.

6. Processing

Collection of

Master culture

Liquid based

biofertilizers

Mixing with carrier Iin specific liquid:

solid ration Packing &

storage

Curing and

mixing

Packing &

storage

Supply to the

formers

Quality control

study

Flow sheet of complete set up for biofertilizers production and its applications

7. Technology:

The liquid based biofertilizers (N2 fixer) are developed at FBRC, PCSIR Lahore. The

specification of these products is given below:

Specification:

Characteristics equirements* nvironment friendly biofertilizer

ase arrier based or liquid basedto be specified)

Solid

Viable cells count vlinimum 10 cells/g or /mL 10 9 cellslg

Contamination level No contamination at 10 5

dilutionNo contamination at 10' dilution

H .5-8.5 7.2 + 0.5

article size of carrier .15 -0.212 mm .15 -0.2mm

Moisture content 0-40 % 0-35 0%

Shelf life 0 days 0 days

Efficiency character 10 mg of nitrogenlg ofarbon

0 mg of nitrogenlg of carbon


8. 1Sacity

At present production capacity of our pilot plant is 200 L/batch based on suplly of power and

nature of bioinoculum. Hower production capacity can be increased further with availability of funds

and demand production from the clients.

9. Economics feasibility-

The increasing demand for the biofertilizers and the awareness among farmers in the use of

biofertilizers has paved way for the fertilizer manufactures and new entrepreneurs to get into

biofertilizer production. A number of biofertilizer production units are going to be registered recently

by the Punjab Government.


9.1. Expenditure details (Rupees in millions)

Sr. # Particulars Amount(Rs. in Millions)

A Capital Investment (Fixed cost)

1 Building including cost of site (3000sq. ft)

11 Equipment and apparatus 29.185

II! Glassware/plastic ware/chemicals 0.50

111 Utilities others 4.425

Total Fixed Cost 34.11

$ Operational cost (variable cost) 0.0045

Working capital Raw Material/ Chemicals 0.00599

Miscellaneous Items 0.2

Total (variable cost) 0.210

Total investment(A+B) 34.320

*The expenditures do not include the marketing expenses and building cost

9.2. Equipments and apparatus:_

Sr. # Equipments Qty Cost Rs. In Millions

1 Balance analytical 02 0.05

2 Balance (0.2-5 Kg) 01 0.015

3 Cooled Incubator 02 0.70

4 Cooled Incubator Shaker 02 1.0

5 Autoclaves 02 1.2

6 Microscope 01 1.0

7 Hot air Oven 02 0.8


8 Air laminar flow 01 0.15

9 Trays (Zinc/Aluminum) 10 0.02

10 Trolleys 05 0.05

11 Fermentor (2L) 02 5.0

12 Fermentor (10L) 01 3.0

13 Fermentor (300L) 01 15.0

14 pH meter 01 0.04

15 Water bath with lid 01 0.15

16 Vortex mixer 01 0.04

17 Conductivity meter 01 0.04

18 Hot plate with magnetic stirrer 01 0.03

19 Refrigerator/fridge 04 0.25

20 Ultra low refrigerator 01 0.65

Total 29.185

9.3. Utilities & Others

Sr. # Particulars Qty Amount(Rs. In Millions)

1 Boiler/steam generator/ 01 1.2

2 Deionizer water unit 01 0.45

3 Air compressor unit and its installation 01 0.30

4 Gas cylinders (N, CO2 and 02) and its 03(01 for 0.075

installation each gas)

5 Electricity generator 01 2.2

6 Miscellaneous Items 0.2

Total 4.425


9.4. Glasswarelplastic ware/chemicals

Sr. # Particulars Qty Amount

(Rs. In Millions)

1 Glassware/plastic ware - 0.25

2 Chemicals - 0.25

Total 0.50

9.5. Working capital

Raw MaterialstBatch

Batch (200L), Period: 6 days

Sr. # Particulars Amount

(Rs. In Millions)

1 Mother culture 0.00025

3 Raw Material/ Chemicals 0.001

4 Packing material(bottle 500 ml-750m1) 0.00024

5 Operational Cost 0.0045

6 Total 0.00599

9.6. Production

Sr. # Particulars Amount

(Rs. In Millions)

1 Production /month (800L) 0.02396

2 Production /year(9600L) 0.28752

9.7. Expected receipts:

Sr. # Particulars Cost/Liter Cost/year Amount

(Rs. In Millions)

1 1 L Biofertilizer 200 1920000 1.92


9.8. Expected profit

Sr. # Production Receipt/year Expenditures/year Gain/year

L/ear(Rs. In Millions) (Rs. In Millions) (Rs. In Millions)

1 9600 L 1.92 0.28752 1.6328

Biofertilizer

*Every year 10% increase in the expenditure is calculated to balance the price escalation


Carrier based biofertilizers (Optional)

Sr. # Particulars Qty Amount

(Rs. In Millions)

Auto 01 1 2

packing

machine

Man Power Required

Staff No Salary/month Salary/year Amount

(Rs. In Millions)

Technical staff 02 2'°350001— 70000/month 8,40,000/- 0.84

Lab staff 04 4200001= 80000/month 9,60,000/- 0.96

Labour 04 4* 150001— 60000/month 7,20,000/- 0.72

Total 2.52


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PRE-FEASIBILITY REPORT - pcsir-lhr.gov.pk · Pakistan Institute of Minerals and Advance ... The objective of the pre-feasibility study is primarily to facilitate ... Pre-feasibility