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Pre-Feasibility Study TOMATO PASTE AND FRUIT PULP Small and Medium Enterprise Development Authority Government of Pakistan www.smeda.org.pk HEAD OFFICE Waheed Trade Complex, 1 st Floor , 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA Lahore Tel: (042) 111-111-456, Fax: (042) 5896619, 5899756 [email protected] REGIONAL OFFICE PUNJAB REGIONAL OFFICE SINDH REGIONAL OFFICE NWFP REGIONAL OFFICE BALOCHISTAN Waheed Trade Complex, 1 st Floor, 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA Lahore. Tel: (042) 111-111-456 Fax: (042) 5896619, 5899756 [email protected] 5 TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 [email protected] Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 [email protected] Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 [email protected] March 2004

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Page 1: SMEDA Tomato Paste and Fruit Pulp

Pre-Feasibility Study

TOMATO PASTE AND FRUIT PULP

Small and Medium Enterprise Development AuthorityGovernment of Pakistan

www.smeda.org.pk

HEAD OFFICEWaheed Trade Complex, 1st Floor , 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA Lahore

Tel: (042) 111-111-456, Fax: (042) 5896619, [email protected]

REGIONAL OFFICEPUNJAB

REGIONAL OFFICESINDH

REGIONAL OFFICENWFP

REGIONAL OFFICEBALOCHISTAN

Waheed Trade Complex,1st Floor, 36-Commercial Zone,

Phase III, Sector XX,Khayaban-e-Iqbal, DHA Lahore.

Tel: (042) 111-111-456Fax: (042) 5896619, 5899756

[email protected]

5TH Floor, BahriaComplex II, M.T. Khan Road,

Karachi.Tel: (021) 111-111-456

Fax: (021) [email protected]

Ground FloorState Life Building

The Mall, Peshawar.Tel: (091) 9213046-47

Fax: (091) [email protected]

Bungalow No. 15-AChaman Housing Scheme

Airport Road, Quetta.Tel: (081) 831623, 831702

Fax: (081) [email protected]

March 2004

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DISCLAIMER

The purpose and scope of this information memorandum is to introduce the subject

matter and provide a general idea and information on the said area. All the material

included in this document is based on data/information gathered from various sources

and is based on certain assumptions. Although, due care and diligence has been taken

to compile this document, the contained information may vary due to any change in

any of the concerned factors, and the actual results may differ substantially from the

presented information. SMEDA does not assume any liability for any financial or

other loss resulting from this memorandum in consequence of undertaking this

activity. Therefore, the content of this memorandum should not be relied upon for

making any decision, investment or otherwise. The prospective user of this

memorandum is encouraged to carry out his/her own due diligence and gather any

information he/she considers necessary for making an informed decision.

The content of the information memorandum does not bind SMEDA in any legal or

other form.

DOCUMENT CONTROL

Document No. PREF-41

Revision 1

Prepared by SMEDA-Punjab

Approved by GM Punjab

Issue Date March, 2004

Issued by Library Officer

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1 IINNTTRROODDUUCCTTIIOONN

1.1 GGeenneerraall BBrriieeffAgriculture sector is the backbone of Pakistan’s economy employing 44 % of thework force. Nature has blessed Pakistan with an ideal climate for growing a largevariety of vegetables and fruits. Agricultural sector is directly or indirectlycontributing 25% towards GDP. According to Agriculture Department, 30% ofvegetables/fruits are wasted due to negligence and lack of processing facilities, whichcould convert them into non-perishable form, permitting its transportation and storagewithout wastage. With the spread of education, change in habits of populace, growthin working women force and increase in per capita income & urbanization, thedemand for processed vegetable/fruit products is increasing progressively.

Tomato is a rich source of vitamin A & C and is cultivated over vast area of land inthe world. It has its origin from Themistition, city of Mexico where it was named asTomatile. Then its cultivation was started in Central America and subsequentlyshifted to Europe. In Indo-Pak sub continent, its utility is growing year by yearresulting into more cultivation. It is popular due to its color, taste & food value.Tomato has long been processed into Ketchup in Italy, Turkey, Greece, USA andEuropean countries. It is used in large quantity at household and restaurants in theshape of tomato juice, tomato puree and paste. These products are also gainingpopularity in Pakistan.

Like Tomato, fruits are delicious in taste and are abundantly available in theirrespective ripe seasons and are also a source of vitamins, proteins and carbohydrates.Fruits like Mango, Guava, Apricot, Strawberry, etc. are processed into pulp, paste,juices, squashes and jam. These products are used as part of food item by the peopleall over the world.

1.2 PPrroojjeecctt BBrriieeffThe proposed project has been designed as a medium scale-processing unit. Itdescribes the processing facilities for Tomato Paste and Pulps of various fruits likeApple, Mango, Guava, etc. with crushing capacity of 2,000 Kg per hour of freshTomato/Fruits.

Products, such as tomato paste/puree and fruits pulp of Mango, Guava, Strawberry,Apricot, etc. have potential demand with local fruit/vegetable processors as well asthe retail market. Introduction of vegetable and fruit processing facilities in thecountry can contribute in reducing the dependence of local industry on importedtomato paste. The paste is currently being imported mainly from China, Turkey andIran. 406 tons of tomato paste was imported during the year 2001-2002.

In Pakistan, processing of vegetables and fruit products is a viable and profitablebusiness opportunity that is yet to be fully exploited.

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Proposed sales of different products to different market segments under this project isas follows:

1. Tomato Paste/Puree1

� 90% of Tomato Paste/Puree to the processors/hotels� 10% of Tomato Paste/Puree to retail consumers

2. Fruit Pulp

� 100% of Fruits Pulp to the processors

1.3 OOppppoorrttuunniittyy RRaattiioonnaalleeVegetables/Fruits processing industry, in general, is showing signs of healthy growthwith expanding product range and increased acceptability in the local market.

Favorable natural environment, increasing population, rising demand for processedvegetables and fruits, and lower cost of the factor of production are some of thefactors that can contribute towards sustained high growth rate in this particular sector.

Tomato is one of the most popular vegetables in the world. The derivatives of tomatolike paste, juice, ketchup, etc. are widely used in kitchens all around the world. Withthe increasing affluence of the world, its demand has increased very rapidly resultingin wide scale development of tomato industry for production of tomato paste/puree.

Rise of the fast food industry in the country is also having a significant impact on thedemand for tomato and fruit products. It is expected that this trend will continue in thenear future, and increase the consumption of tomato and fruit products significantly.

Vegetable and Fruit juice industry has become one of the world's major agriculturebased businesses. Pakistan is presently exporting processed vegetable and fruitproducts worth US$ 3 million which is 0.06% of the total existing world market ofUS$ 5 billion.

Local vegetables & fruits processing market still has room for further expansion. Percapita consumption is still very low as compared to developed countries. For example,US consumption of tomato paste per capita is 30 kg per year, EU countries consume15 kg per capita, and Turkey consumes 1 Kg Per capita. As compared to these figuresper capita consumption in Pakistan is negligible. It shows that there is still bigpotential for demand from the local market, which is expected to rise with the passageof time.

1.4 VViiaabbllee EEccoonnoommiicc SSiizzeeA tomato paste and fruit pulp processing plant can be designed with a wide range ofoptimal processing capacity and product mix. However, it is suggested that thesmallest viable economic processing unit should have 2,000 kg of either tomato orfruit processing capacity per hour. Processing plant used for the purpose of this pre-feasibility study has an annual production capacity of 778 tons of tomato paste/pureeand 1,920 tons of fruit pulp. Production break up for this capacity is given below:

1 Tomato Paste and Puree differs mainly on the basis of BRIX and water contents

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TTaabbllee 11..11:: --VViiaabbllee EEccoonnoommiicc SSiizzee

Description CapacityFresh Tomato crushing 2,000 Kg per hourFresh Fruits crushing 2,000 Kg per hourShifts 2(Two) for Tomato Processing

1(One) for Fruits ProcessingHours per shift 8Annual Production Capacity (100% capacity)2

Tomato Paste/PureeFruits Pulp

778 Tons1,920 Tons

1.5 PPrroojjeecctt CCoossttRs. 39.48 million

1.6 IImmpplleemmeennttaattiioonn PPeerriiooddOne (1) Year

2 PPRROOCCEESSSS FFLLOOWW

2.1 PPrroocceessss FFllooww CChhaarrtt

SCRUBBING CHOPPING THERMOBREAKING

PACKAGING EVAPORATION/

CONCENTRATIONREFINING PULPING

SORTING/WASHING

STORING CUSTOMER

2.2 PPrroocceessss && PPrroodduuccttssPUREE, PASTE & PULP are differentiated mainly on the basis of BRIX3 and watercontents.

TTaabbllee 22..11:: -- TToottaall BBRRIIXX iinn TToommaattoo PPaassttee//PPuurreeee aanndd FFrruuiitt PPuullppTomato Paste 33%Tomato Puree 15%Fruit Pulp 30%-50%

HOT BREAK is a method where in tomatoes/selected fruits are heated by passingthrough a steam heated tubular heater. This method gives better yield of pulp havinghigher viscosity without being separated into juice & pulp. This process also killsmicroorganism.

2 Average recovery from tomato is 27% and from fruits is 60%3 is the measure of solid contents in Pulp

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COLD BREAK is a method where tomatoes are not heated to get the pulp. The pulpobtained through Cold Break process is of lower quality when compared to pulpobtained by Hot Break.

As regards the end use, there is no hard and fast rule for hot process or cold process.Generally, hot process is preferred as it gives a better aroma, better yield and is in usefor production of processed products by the Industry.

3 CCUURRRREENNTT IINNDDUUSSTTRRYY SSTTRRUUCCTTUURREE

3.1 MMaajjoorr PPllaayyeerrssA large number of fruit and vegetable processing entities are in operation both inorganized sector and informal sub-sector. Major processors are Shezan InternationalLtd., Mitchell’s Fruit Farms Ltd., Ahmed Food Industries (Private) Ltd., NestleMilkpak Limited, S.A. Rehman & Co., Benz Industries Ltd., Rafhan Best FoodsLimited and Hamdard Fruit Products. According to the estimates of Export PromotionBureau (EPB), at present, the capacity for the production of fruit juices/preserves,canned fruits, tomato products, syrups, squashes and processed vegetables isestimated at about 100,000 tons per annum

Other Fruits and Vegetable processors are Shangrila Foods, National Foods, TopsFruit, Salman Foods and Kinza Foods.

3.2 HHuubbss ooff FFrruuiitt PPrroocceessssiinngg UUnniittssMost of the fruit/vegetable processing units are located in and around Lahore,Islamabad, Karachi, Hyderabad, Hattar and Sargodha. A few factories are also locatedin small towns and working on very small scale near Lahore and Sahiwal.

3.3 WWoorrlldd''ss TToommaattoo//FFrruuiittss PPrroocceessssiinngg IInndduussttrryyCompetition has intensified as world exports of fresh tomatoes from key suppliershave been increasing in recent years. It is noteworthy that the major exporters of freshtomatoes are also major importers. Over the last decade, China’s exports of tomatoproducts have grown immensely. From 1999-2003, China’s fresh tomato productionhas grown 40 percent to 25.9 million tons, according to the Food and AgricultureOrganization of the United Nations. China currently produces about 25 percent of theworld’s tomato production. United States is the world’s second leading producer oftomatoes, after China.

TTaabbllee 33--11 LLeeaaddiinngg TToommaattoo pprroodduucceerrss

Country Production in MT for FY 2003China 25.9United States 11.5Italy 6.1Spain 3.9Mexico 2Greece 1.6Portugal 1.1France 0.893

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Turkey 0.315

4 MMAARRKKEETT

4.1 TThhee CCoouunnttrryyThe growth of the manufacturing sector has averaged more than 8% over the last 40years. In manufacturing, cotton yarn & textiles is the leading sector, followed by foodprocessing industries, largely based on indigenous raw materials.

Agriculture is still the mainstay of the economy. The geographical location provides alarge variety of agricultural crops used for both food and raw material for industries.Fruits of Pakistan are unique in taste, aroma and are mostly organic as very lowquantities of chemicals are used in their cultivation. Moreover, vegetables/fruits arenot genetically modified. In addition to the local market, the markets of Afghanistanand Central Asian Republics can be effectively catered from Pakistan. Pakistan is amember of both the Economic Co-operation Organization (ECO) and the South AsianAssociation for Regional Co-operation (SAARC), which further expands the potentialof the target market enabling the establishment of economic size fruits and vegetablesprocessing plants for industrial activity.

Pakistan’s production of tomatoes has been decreasing over the years but in the year2002 it has shown an upward trend. The following table shows Pakistan’s tomatoproduction for the last five years:

TTaabbllee 44--11 PPrroodduuccttiioonn ooff ttoommaattooeess ((11,,000000 ttoonnnneess)) iinn PPaakkiissttaann

Year Punjab Sindh NWFP Balochistan Total1997-1998 65.3 32.4 123.1 104.5 325.31998-1999 68.9 32.4 130.5 100.2 332.01999-2000 71.6 30.8 138.1 42.7 283.22000-2001 60.8 32.9 140.0 36.1 269.82001-2002 62.2 32.8 146.2 52.9 294.1

4.2 PPootteennttiiaall MMaarrkkeettss

The market for vegetable/fruit processed products are:� Local Market: According to estimates about 95% of the processed products

(puree, paste, pulps, jams, jelly and juices) are sold in the local market. Theproposed project has very wide market for processors, hotel industry and retailsellers of tomato and fruit products.

� Export Market: There is great potential of vegetable/fruit processed products inMiddle East, Far East, UK, European Countries, USA and Malaysia.

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FFiigguurree 44--11:: EExxppoorrttss ooff VVeeggeettaabblleess ffrroomm PPaakkiissttaann44

0250005000075000

100000125000150000175000200000

2000-2001 2001-2002 2002-2003

Exp orts of Vegetables Quantity in Kg.Exp orts of Vegetables Value in 1000 U S$

FFiigguurree 44--22:: EExxppoorrttss ooff FFrruuiittss ffrroomm PPaakkiissttaann55

0

50000

100000

150000

200000

250000

300000

350000

2000-2001 2001-2002 2002-2003

Exports of Fruits Quantity in Kg.Exports of Fruits Value in 1000 US$

4.3 RReettaaiill SSuuppppllyy ooff TToommaattoo PPaasstteeDemand of tomato paste and fruits pulp exists in the Pakistani market. Major portionof the produce is sold as intermediary products and only a small portion is processedand sold as tomato paste/puree in the retail market. Only the leading food processorshave branded products in the market.

4 Export Promotion Bureau website5 Export Promotion Bureau website

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4.4 RReettaaiill MMaarrkkeett PPrriicceeRetail prices for different brands of tomato paste & puree in local market is given inthe following table:

TTaabbllee 44..22:: --RReettaaiill MMaarrkkeett PPrriiccee ooff TToommaattoo PPaassttee//PPuurreeee

Name Concentrate Qty. Retail Price (Rs.)Mitchell’s Tomato Paste 300 gm 32National Tomato Paste 300 gm 33Knorr Tomato Paste 285 gm 35Shezan Tomato Paste 305 gm 30

Tomato Paste retail market is dominated by foreign brands followed by Mitchell’s.According to rough estimates, approximately 70% of the market share are with theforeign brands and remaining 30% is with the local players.

It is pertinent to mention here that fruits pulp is not marketed at retail level and usedonly as an intermediary product.

There is great opportunity for import substitution of tomato paste through localproduction & marketing of good quality products.

4.5 GGrroowwtthh,, TTrreennddss aanndd TTaarrggeett CCuussttoommeerrssAn annual growth of 5 to 10% is expected in the light of discussions and surveyconducted. The target market of tomato paste/puree and fruit pulp is as follows:

1. Food processors: Vegetable and fruit processors all over the world are nowpreferring to purchase quality paste from the open market instead of selfproduction, resultantly diversifying themselves to add more products into theirproduct line.

2. Hotels and Restaurants3. Export market in Middle East, Malaysia and European Countries.4. Working women5. Households run by working women.

On the basis of interviews with some of the representatives of the processors & hotels,following processors are the potential buyers of tomato paste/puree and fruit pulp asraw material for their intermediary products:

� Ahmed Foods� Shangrila Foods� Mitchell’s Fruit� Rafhan Best Foods� Shezan International� Nestle Milk Pak� S. A. Rehman� National Foods� Tops Fruit� Salman Food� Hotels & Fast Food Restaurants like PC & Avari� KFC, Pizza Hut, McDonald, Salt & Pepper, etc.

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4.6 IImmppoorrttss

TTaabbllee 44..33:: -- IImmppoorrtt ooff TToommaattoo PPaassttee66

Commodity/Country 2001-2002 2000-2001Qty.(Kg.) Value

(Rs in 000)Qty.(Kg.) Value

(Rs in 000)Tomato PasteChina 260,512 8,717 145,165 4,369Belgium - - 252 123Iran 282,287 3,631 173,760 2,258Turkey 74,570 3,757 87,301 3,622Total 617,369 16,105 406,478 10,373

4.7 DDeemmaanndd && SSuuppppllyy GGaappSpecific data for paste and pulp production and its demand in local market is notavailable. However, the present production capacity of Tomato, Canned Vegetables &Food Products is approximately 100,000 Tons per annum as reported by EPB.

The existing processors foresee no change in supply. The products of the proposedproject will have no difficulty in penetrating in the market, because of the increaseddemand due to the following reasons:

1. Increasing portion of working women.2. Changed recipes for cooking by the housewives.3. Preference by the processors to buy intermediary products instead of in-house

manufacturing.4. Expansion of fast food industry in the country.

5 RRAAWW MMAATTEERRIIAALL RREEQQUUIIRREEMMEENNTT

5.1 RRaaww MMaatteerriiaall RReeqquuiirreemmeennttssThe raw materials required for a vegetable and fruit processing unit is:

� Fresh Tomatoes, Mangoes, Guava, Strawberry, Apricot, Apple, Banana, Plumsetc.

� Preservative including Citric Acid, Potassium Metabisulphate or SodiumBenzoate.

5.2 PPaacckkaaggiinngg RReeqquuiirreemmeennttssPacking requirements for the end consumers are:

� Retail Customers: Tin Packs, Pouch Packs and Glass Bottles� Processors: Large Plastic Containers� Hotel Industry: Large Tin Packs, Plastic Drums� Exports: Aseptic pack for foreign processors/bulk consumers

In the initial stage the unit will start with bulk supply to processors/ hotel industry andwould gradually move into retail sales. Export markets would be explored in finalstage. 6Source: Foreign Trade Statistics of Pakistan 2001-2002

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5.3 AAvvaaiillaabbiilliittyy ooff RRaaww MMaatteerriiaallSmall-scale farmers and wholesale market commission agents in vegetable and fruitmarkets are the major suppliers of raw material in the local processing industry.Tomato and various fruits (the primary raw materials), salt, preservatives etc.(secondary raw materials) are available locally. Metal containers, pouches and glassbottles (Packing material) are also available locally.

Aseptic packs are normally imported and cost very high. Aseptic packing is used forobtaining long shelf life for products without preservatives. Further, for this packfilling, imported packing machinery would be required which will cost around Rs. 20-25 Million. However, the said packing machinery and material cost has not beenprojected in this report and this type of facility has not been incorporated for the timebeing since it is assessed that the plant will not go into exports until it establishesitself in the local market.

5.4 AAvvaaiillaabbiilliittyy PPeerriioodd ooff TToommaattooeess aanndd ootthheerr FFrruuiittss iinn PPaakkiissttaannThe data regarding availability period of tomatoes & certain selected fruits inPakistan, is given in the following table:

TTaabbllee 55..11:: --BBaarr ddiiaaggrraamm sshhoowwiinngg ppeerriiooddss ooff aavvaaiillaabbiilliittyy ooff TToommaattooeess && FFrruuiittss77

Description Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

TomatoGuavaStrawberryMangoApricotAppleBananaPeachPlumPear

5.5 PPrroodduuccttiioonn ooff TToommaattooeess aanndd FFrruuiittssData on production of tomatoes and various other fruits during 2001-02 is as under:

TTaabbllee 55..22:: -- PPrroodduuccttiioonn ooff TToommaattooeess && FFrruuiittss88 ((000000’’ ttoonnss))

Item Punjab Sind NWFP Balochistan Pakistan Increase(Decrease)

over last year%

Tomato 62.2 32.8 146.2 52.9 294.1 9Mango 650.3 371.5 2.5 12.8 1037.1 5Banana 15.8 113.5 12.3 8.1 149.7 7Apple 2.5 0.2 117.4 247.0 367.1 -0.2Apricot 0.5 -- 20.8 103.4 124.7 -10

7 Source: Market information8 Source: Agriculture Statistics of Pakistan 2001-2002

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5.6 RRaaww MMaatteerriiaall PPrriicceessRaw material prices at farm and vegetable & fruit commission agents during peakseason have been collected from the processors through personal interview and data isnarrated as follows:

TTaabbllee 55..33:: -- RRaaww mmaatteerriiaall pprriicceess99

Items Purchase Price (Rs/Kg)Tomato 8Guava 8Strawberry 45Mango 18Apricot 50Apple 18Banana 12Peach 30Plums 20Pear 10

5.7 PPrroodduuccttss PPrroodduuccttiioonn CCaappaacciittyy

TTaabbllee 55..44:: -- PPrroodduuccttss aanndd eessttiimmaatteedd pprroodduuccttiioonn

Items Estimated Productionof Puree/Paste/Fruit Pulp at 100% Capacity

Tons %Tomato Puree/Paste 778 100Fruits PulpGuava Pulp 25 1.30Strawberry Pulp 50 2.60Mango Pulp 1100 57.30Apricot Pulp 25 1.30Apple Pulp 625 32.55Banana Pulp 25 1.30Peach Pulp 25 1.30Plums Pulp 25 1.30Pear Pulp 20 1.05

9Source: Economics & Marketing Department, Government of Pakistan

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5.8 EExxppeecctteedd SSaallee PPrriiccee

TTaabbllee 55..55:: -- EExxppeecctteedd ssaalleess pprriiccee ooff tthhee eenndd pprroodduuccttss1100

Items Sale Priceof Product Per Kg.(Rs.)

Tomato Puree 20-25Tomato Paste 40-55Guava Pulp 20-28Strawberry Pulp 50-60Mango Pulp 30-40Apricot Pulp 60-65Apple Pulp 22-30Banana Pulp 45-65Peach Pulp 45-55Plums Pulp 32-45Pear Pulp 32-45

5.9 EExxppeecctteedd YYiieelldd ffrroomm RRaaww MMaatteerriiaall

Yield specifies the percentage of output (Finished Product) as compared to the input(Raw Material). Yield is mainly dependent on the following factors:

1. Strict quality control on raw material and production processes.2. Type of plant3. Processing methodologyFollowing table shows the expected yield from different fruits and vegetables.

TTaabbllee 55..66:: -- EExxppeecctteedd YYiieelldd ffrroomm RRaaww MMaatteerriiaall1111

Items Recovery (Percentage)Tomato Puree/Paste 27Guava Pulp 88Strawberry Pulp 85Mango Pulp 55Apricot Pulp 60Apple Pulp 65Banana Pulp 64Peach Pulp 70Plums Pulp 59Pear Pulp 64

10 Source: Market survey11Source: Technical Survey

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5.10 WWaassttee MMaannaaggeemmeennttThe project has no environmental hazards and waste management shall be as under:

� Waste water to be drained out by its connection with the main drain.� Waste material like stone/skin can be sold as scrap.

6 HHUUMMAANN RREESSOOUURRCCEE RREEQQUUIIRREEMMEENNTTSS

6.1 NNuummbbeerr ooff OOffffiicceerrss aanndd SSttaaffff RReeqquuiirreedd

TTaabbllee 66..11:: NNuummbbeerr ooff SSttaaffff && OOffffiicceerrss rreeqquuiirreedd

Description No. Gross MonthlySalary per person

(Rs.)

Gross YearlySalary per

person (Rs.)Chief Executive 1 30,000 360,000Production Manager 1 25,000 300,000Quality control Incharge 1 15,000 180,000Deputy Production Manager 1 11,000 132,000Shift Incharge 1 8,000 96,000Production Supervisor 1 5,000 60,000Laboratory Assistant 1 4,000 48,000Process Incharge 1 8,000 96,000Boiler Engineer 1 14,500 174,000Electrical Engineer 1 14,500 174,000Mechanical Supervisor 1 10,000 120,000Manager Finance & Admin. 1 25,000 300,000Accounts Officer 1 12,000 144,000Administration Officer 1 12,000 144,000Accountant 1 8,000 96,000Accounts Assistant 1 6,500 78,000Computer Operator 1 8,000 96,000Manager Marketing 1 25,000 300,000Assistant Manager Marketing 1 15,000 180,000Marketing Executives 4 32,500 390,000Marketing Assistant 1 7,000 84,000Semi Skilled/Unskilled Labor(10 Months)

15 45,000 450,000

Total 39 341,000 4,002,000

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6.2 WWoorrkkiinngg TTiimmee

TTaabbllee 66..22:: -- WWoorrkkiinngg TTiimmee EEssttiimmaatteess

Description TimeWorking days per month:Tomato Paste/Puree ManufacturingFruits Pulp/Paste Manufacturing

2416 hours in 2 shifts12 for 90 days8 hours in 1 shift for 200 days

Working hours per month:Tomato Paste/Puree ManufacturingFruits Pulp/Paste Manufacturing

24 days (384 hours)24 days (192 hours)

Working Days per annum:Tomato Paste/Puree ManufacturingFruits Pulp/Paste Manufacturing

90 days (1,440 hours)200 days (1,600 hours)

7 MMAACCHHIINNEERRYY AANNDD EEQQUUIIPPMMEENNTT

7.1 AAvvaaiillaabbllee OOppttiioonnss ooff MMaacchhiinneerryy && EEqquuiippmmeenntt

7.1.1 Local Machinery Fabricators

Both Local and imported plants can be selected for the project. Local fabricators uselocal and imported material and parts (available locally), they compete well with theimported plant in quality and results in lower price and saving of valuable foreignexchange. Some of the local fabricators are listed below:

FFoorr VVeeggeettaabbllee aanndd FFrruuiitt PPrroocceessssiinngg

i. Installation & Fabrication Engineers (Private) Limited21/22 K. M. Ferozepur Road, Lahore

ii. Unique Engineering works (Private) Limited,233-S, Industrial Estate, Township, Lahore

iii. Central Engineering Services (Private) Limited,119-S Industrial Estate, Township, Lahore

iv. Two StarIndustrial Estate, Township, Lahore

FFoorr RReeffrriiggeerraattiioonn MMaacchhiinneerryy

i. Pakistan Air-conditioning Engineering Co. (Private) LimitedGardee Trust Building, Napier Road, Lahore

ii. Kold Kraft,Industrial Estate, 247-S Kot Lakhpat, Lahore

7.1.2 Imported Machinery Suppliers

Imported Plant of Italian and Chinese origin is available comprising of main sectionsof the plant only, which is to be supplemented with certain local components. Officesof suppliers of foreign plants for paste and fruits pulp production machinery arelocated at:

12 Due to flooded supply of Tomato in peak season, the operations would be off two shifts of 8 hours each

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i. Burtuzi, Lahore Canttii. Tetra Pak, Upper Mall, LahoreLocal Machinery along with foreign components is recommended for good quality,better efficiency and lower cost.

7.2 SSeelleecctteedd PPllaanntt aanndd PPrroocceessss FFlloowwThe selected processing plant is capable of processing tomatoes & fruits to producepaste & pulp. The plant comprises of imported components (available locally) andsome locally manufactured equipment & parts. The fruits that would be processed aremangoes, guava, peach, banana, apple, apricot, etc.

The nomenclature of plant and production system is explained below:

7.2.1 Sorting Belt Conveyor

This is a rubber conveyor belt with stainless steel structure. Belt is made from foodgrade rubber. As vegetable and fruits require frequent washings, motor and gearboxare also covered by stainless steel sheet. It is a 2 ft. wide and 15 ft. long conveyorwith 2 HP electric motor. Tomato and fruits are dumped manually at one end of thebelt. The sorting is done manually by workers standing along side the belt.

7.2.2 Washing Tub with Re-circulation PumpThis is a stainless steel tub with conical bottom having high pressure water nozzles,which are fed by a water re-circulation pump. A float valve maintains the water levelin the tank. Tank is 4x8 ft fitted with 3 HP stainless steel re-circulation pump.

7.2.3 Elevator

This is for lifting of fruit from washing tank to the scrubber. It is made of stainlesssteel and is 10 feet long.

7.2.4 Scrubber

It consists of stainless steel tank with Nylon brushes to scrub/wash hard skin fruitssuch as mangoes or apples. Tank is 4x6 ft with water spray arrangements. Scrubber isnot required for soft skin vegetable/fruits, i.e. tomatoes or peaches etc.

7.2.5 Bypass Conveyor - 10 Feet Long

As soft skin fruit is not passed through the scrubber, so a by-pass conveyor system isinstalled to avoid its passing through the scrubber. By-pass consists of two chutes anda rubber belt conveyor.

7.2.6 Main Elevator

To minimize pumping, machines are placed one above the other and gravity flow isused. Main elevator lifts vegetables/fruits to 20 ft above ground. It is 2 ft wide and 30ft long steel flight conveyor with all parts of stainless steel.

7.2.7 Feeding Conveyors

Fruit at the top can be channeled into two paths. Soft fruit without pit is sent tochopper. Fruits with stone, such as mangoes or apricots etc. are sent to pulpers. A setof two conveyors is installed with proper chutes to direct the fruit to the relevantmachine.

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7.2.8 Chopper

Vegetable/fruits without stone, such as tomatoes and apples are passed through acrusher, instead of a pulper. This is a high-speed machine, which cuts vegetable/fruitsinto small pieces.

7.2.9 Thermo Break

It is a screw conveyor with steam jacket to heat the material. Here the fruit is heatedto 90ºC before making pulp.

7.2.10 Pulpers

The pulper consists of a heavy-duty metallic cylinder in a horizontal axis withperforations. A screen of mesh is wrapped around the cylinder. Number of brushesrotate inside the cylinder and pulp is passed through the screen. The seed and skin donot pass through the screen and is rejected at the end. A limited quantity of water isalso used to wash the pit and skin. Two pulpers are proposed to process up to 2,000Kg of mangoes per hour.

7.2.11 Refiner

It is similar in nature to pulper but has a much finer screen to remove seed and skinetc.

7.2.12 Waste Conveyor

A screw conveyor of stainless steel is used to convey the waste from refiner to wastecart.

7.2.13 Balance Tank

The pulp from the refiner is stored for a short duration before it is pumped to theevaporator. A 1,000-litre tank with an agitator is used for this purpose.

7.2.14 Monix Pump

A variable flow positive displacement pump with progressive cavity is used to feedthe raw pulp to the evaporator. These pumps are imported and are available locally.

7.2.15 Concentrator

The boiling of the pulp takes place at 40ºC under high vacuum. The heating surface ofthe evaporator is wiped with an agitator blade so that the pulp does not stick to thesides. In this system, a very good quality concentrated pulp of tomato or other fruits isobtained. All parts coming in contact with vegetable/fruits are stainless steel of foodgrade finish.

7.2.16 Packaging & Storage

The pulp is stored in bulk in 200 liters drums with polyethylene lining as the pulp isstored for long time before it is reused and thus requires adoption of properpreservation method.

Chemical preservatives are added to prevent the growth of microorganism duringstorage. Though it is an economical method of storage, the quality of the pulp storedby chemicals is not as good as the quality of frozen pulp. It is better to freeze the pulpand store around minus 20ºC. In order to store the product for future sale,refrigeration machinery and chilling room building has been included in the projectcost.

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7.2.17 Other Items

Other items of plant and machinery are as under:1. Chemical mixing agitated tanks (volume 2,000 litters)2. Electrical motors, control cables and cables trays3. Steel structure, stairs, walkways etc4. Boiler 2,000 Kg/hr at 150 PSIG with water treatment plant. A second hand boiler

can also be used.Standby power generator of 150 KVA (used generator has been recommended).

TTaabbllee 77--11 MMaacchhiinneerryy CCoosstt DDeettaaiillss

Description Total Cost (Rs.)Plant and Machinery (Local) 19,600,000Refrigeration machinery (imported)13 4,000,000Tools & Equipment 300,000Laboratory Equipment 600,000Total 24,500,000

8 LLAANNDD AANNDD BBUUIILLDDIINNGG RREEQQUUIIRREEMMEENNTTSS

8.1 TToottaall LLaanndd RReeqquuiirreemmeenntt && BBuuiillddiinngg CCoovveerreedd AArreeaa

TTaabbllee 88..11:: LLaanndd && BBuuiillddiinngg CCoovveerreedd AArreeaa

Description Cost (per Sq.Ft)

Area TotalCost

BuildingFactory Building 400 8,000 Sq. ft. 3,200,000Office Building 700 600 Sq. ft. 300,000Stores/Godown/Refrigeration Room(Cold Storage)

500 9,000 Sq. ft. 4,500,000

Total Construction Cost 17,600 Sq. ft. 8,120,000Land Cost 12 Kanals 1,500,000Total Land and Construction Cost 9,620,000

Covered area will be around 4 kanals and 8 kanals is left open for parking of carriers,storage of waste material and future expansion.

8.2 SSuuiittaabbllee LLooccaattiioonn ffoorr tthhee PPrroojjeeccttOn the basis of availability of fresh fruits and tomatoes and close proximity to themarket, the project can be set up in any of the following areas of the country:

13 also available locally

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TTaabbllee 88..22:: -- PPrroovviinnccee aanndd llooccaattiioonn ooff pprroojjeecctt

Province LocationPunjab Central PunjabSind Hyderabad DivisionNWFP Malakand Division & DargaiBalochistan Loralai Division

However, on the basis of low price of fresh tomato in Punjab during May crop, themore lucrative place is central Punjab from Bhai Pharu to Sahiwal belt.

The other considerable factors while selecting the location of the project are:1. Availability of other fruits also in abundance and also at acceptable price in the

area.2. Presence of soft water,3. Availability of skilled labor.4. Location of main processors to whom the products are to be sold.5. Presence of hotel and fast food industry.6. Availability of retail market.7. Easy access to roads.8. Availability of utilities required for the project.

8.3 UUttiilliittiieess RReeqquuiirreedd� Electricity� Gas or Furnace Oil or Coal� Water� Telephone� Fax

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9 PPRROOJJEECCTT EECCOONNOOMMIICCSSTTaabbllee 99..11:: -- PPrroojjeecctt CCoosstt

Description Total CostLand 1,500,000Building and Civil Works 8,120,000Plant and Machinery 24,500,000Furniture/ Fixture & Equipment 800,000Pre-operational Expenses14 500,000Vehicles 2,600,000Total Fixed Cost 38,020,000Working Capital 1,463,804Total 39,483,804

TTaabbllee 99..22:: FFiinnaanncciinngg PPllaann

Financing Ratio RsEquity 50% 19,741,902Debt 50% 19,741,902

TTaabbllee 99..33:: PPrroojjeecctt RReettuurrnnss

ProjectIRR 61.46%NPV (Rs) 50,103,487Payback Period (Years) 2.78

10 SSTTRRAATTEEGGIICC FFAACCTTOORRSS

10.1 KKeeyy SSuucccceessss FFaaccttoorrss� Effective quality control in operations� Competitive price of end products� Abundant supply of raw material� Cost efficiency through better management� Media campaign for the awareness of the retail customers� Availability of low cost skilled labor

10.2 TThhrreeaattss� Crop failure� Influence of major local and foreign brands operating in the market� Change in the Government regulations� Shrinkage of retail customer market over a period of time� Fruit and vegetable growers are usually unable to get right prices for their good

quality fruits/vegetables. The year of good harvest gives them more loss becauseof low prices in the local market.

14 Includes salaries, utilities, trial run expenses & refrigeration charges.

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11 FFIINNAANNCCIIAALL AANNAALLYYSSIISS

11.1 PPrroojjeecctteedd IInnccoommee SSttaatteemmeenntt

PROJECTED INCOME STATEMENT Value in Rs.Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 Year-9 Year-10

Sales 56,067,942 68,898,478 77,791,624 86,803,972 96,434,126 101,703,410 106,734,898 111,957,588 117,433,017 123,180,921

COST OF GOODS SOLDRaw M aterial 14,148,960 17,777,600 20,224,985 22,627,214 25,177,612 26,629,476 27,992,775 29,397,830 30,868,657 32,412,253Payroll (Production Staff) 1,380,000 1,518,000 1,669,800 1,836,780 2,020,458 2,222,504 2,444,754 2,689,230 2,958,153 3,253,968M achine Maintenance 326,200 358,820 394,702 434,172 477,589 525,348 577,883 635,672 699,239 769,163Direct Electricity 1,470,000 1,732,500 2,032,800 2,375,835 2,767,149 3,043,864 3,348,250 3,683,075 4,051,383 4,456,521Fuel Cost 500,000 550,000 605,000 665,500 732,050 805,255 885,781 974,359 1,071,794 1,178,974Chemical & Packing Cost 5,621,280 6,713,960 7,569,109 8,453,336 9,401,587 9,910,235 10,410,550 10,931,764 11,478,461 12,052,402Total 23,446,440 28,650,881 32,496,396 36,392,837 40,576,446 43,136,682 45,659,993 48,311,929 51,127,686 54,123,280

Gross Profit 32,621,502 40,247,597 45,295,228 50,411,134 55,857,680 58,566,729 61,074,905 63,645,659 66,305,331 69,057,642OPERATING EXPENSEPayroll (Admin) 858,000 943,800 1,038,180 1,141,998 1,256,198 1,381,818 1,519,999 1,671,999 1,839,199 2,023,119Payroll (M arketing and Sale) 864,000 950,400 1,045,440 1,149,984 1,264,982 1,391,481 1,530,629 1,683,692 1,852,061 2,037,267Fixed electricity 300,000 330,000 363,000 399,300 439,230 483,153 531,468 584,615 643,077 707,384Insurance Expense 375,200 343,240 311,280 279,320 247,360 215,400 183,440 151,480 119,520 87,560Administrative & Factory Overheads 560,679 688,985 777,916 868,040 964,341 1,017,034 1,067,349 1,119,576 1,174,330 1,231,809Amortization (Pre-operational Expenses) 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000Depreciation 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000Total 6,203,879 6,502,425 6,781,816 7,084,642 7,418,111 7,734,885 8,078,885 8,457,362 8,874,187 9,333,139Operating Profit 26,417,623 33,745,173 38,513,412 43,326,493 48,439,568 50,831,843 52,996,020 55,188,297 57,431,144 59,724,502NON-OPERATING EXPENSEFinancial Charges on Long-term Loan 2,193,372 1,848,114 1,461,425 1,028,333 543,270 0 0 0 0 0Financial Charges on Running Finance 175,656 0 0 0 0 0 0 0 0 0Total 2,369,028 1,848,114 1,461,425 1,028,333 543,270 0 0 0 0 0PROFIT BEFORE TAX 24,048,594 31,897,059 37,051,987 42,298,160 47,896,298 50,831,843 52,996,020 55,188,297 57,431,144 59,724,502Tax 8,292,008 11,038,971 12,843,196 14,679,356 16,638,704 17,666,145 18,423,607 19,190,904 19,975,900 20,778,576PROFIT AFTER TAX 15,756,586 20,858,088 24,208,792 27,618,804 31,257,594 33,165,698 34,572,413 35,997,393 37,455,244 38,945,926Retained Earnings beginning of year 0 15,756,586 36,614,675 60,823,466 88,442,270 119,699,864 152,865,562 187,437,975 223,435,368 260,890,612Retained Earnings end of year 15,756,586 36,614,675 60,823,466 88,442,270 119,699,864 152,865,562 187,437,975 223,435,368 260,890,612 299,836,538

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11.2 PPrroojjeecctteedd CCaasshh ffllooww SSttaatteemmeennttValue in Rs.

Const Year Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 Year-9 Year-10

Operating activitiesNet profit 15,756,586 20,858,088 24,208,792 27,618,804 31,257,594 33,165,698 34,572,413 35,997,393 37,455,244 38,945,926Amortization (Pre-operational Expenses) 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000Depreciation 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000 3,196,000Accounts receivable (5,800,132) (1,327,297) (919,981) (932,312) (996,223) (545,098) (520,499) (540,278) (566,424) (594,611)Equipment Spare Parts Inventory (27,183) (2,718) (2,990) (3,289) (3,618) (3,980) (4,378) (4,816) (5,297) (5,827) 64,097Up-Front Insurance payment (375,200) 31,960 31,960 31,960 31,960 31,960 31,960 31,960 31,960 31,960 31,960Stocks-RM (646,800) (164,126) (109,945) (108,953) (115,969) (65,764) (61,840) (63,873) (66,898) (70,214) 1,474,381Finished Goods Inventory (5,585,039) (1,352,011) (924,669) (926,624) (988,626) (554,584) (525,689) (544,268) (570,307) (598,630)Accounts payable 846,713 200,668 140,246 139,076 145,025 88,972 85,564 89,055 93,920 15,565Cash provided by operations (1,049,183) 8,329,244 21,544,473 25,670,107 29,057,316 32,625,986 35,366,730 36,821,060 38,207,666 39,614,352 42,584,689

Financing activitiesLong term debt principal repayment (2,877,151) (3,222,409) (3,609,098) (4,042,189) (4,527,252) 0 0 0 0 0Addition to long term debt 18,278,098Running Finance Repayment (1,463,804) 0 0 0 0 0 0 0 0 0Issuance of share 19,741,902Cash provided by/ (used for) financing activitie 38,020,000 (4,340,955) (3,222,409) (3,609,098) (4,042,189) (4,527,252) 0 0 0 0 0

Total 36,970,817 3,988,290 18,322,065 22,061,009 25,015,127 28,098,734 35,366,730 36,821,060 38,207,666 39,614,352 42,584,689

Investing activitiesCapital expenditure (38,020,000) 0 0 0 0 0 0 0 0 0 0Cash (used for)/ provided by investing activitie (38,020,000) 0 0 0 0 0 0 0 0 0 0Net Cash (1,049,183) 3,988,290 18,322,065 22,061,009 25,015,127 28,098,734 35,366,730 36,821,060 38,207,666 39,614,352 42,584,689Cash balance brought forward 0 414,621 4,402,910 22,724,975 44,785,984 69,801,111 97,899,845 133,266,575 170,087,635 208,295,302 247,909,654Cash Balance (1,049,183) 4,402,910 22,724,975 44,785,984 69,801,111 97,899,845 133,266,575 170,087,635 208,295,302 247,909,654 290,494,343Running Finance 1,463,804 0 0 0 0 0 0 0 0 0 0Cash carried forward 414,621 4,402,910 22,724,975 44,785,984 69,801,111 97,899,845 133,266,575 170,087,635 208,295,302 247,909,654 290,494,343

PROJECTED CASH FLOW STATEMENT

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11.3 PPrroojjeecctteedd BBaallaannccee SShheeeett

PR O JE C T E D B A L A N C E SH E E T Valu e in R s.

C on st Y ear Y ear-1 Y ear-2 Y ear-3 Y ear-4 Y ear-5 Y ear-6 Y ear-7 Y ear-8 Y ear-9 Y ear-10

C urrent A ssetsC ash 414,621 4,402,910 22,724,975 44,785,984 69,801,111 97,899,845 133,266,575 170,087,635 208,295,302 247,909,654 290,494,343Equipm ent S pare Parts Inventory 27,183 29,902 32,892 36,181 39,799 43,779 48,157 52,973 58,270 64,097 0U p-Front Insurance paym ent 375,200 343,240 311,280 279,320 247,360 215,400 183,440 151,480 119,520 87,560 55,600Stocks and Inventory 646,800 810,926 920,870 1,029,823 1,145,792 1,211,556 1,273,396 1,337,269 1,404,167 1,474,381 0R eceivable 0 5,800,132 7,127,429 8,047,409 8,979,721 9,975,944 10,521,042 11,041,541 11,581,819 12,148,243 12,742,854Finished G oods Inventory 0 5,585,039 6,937,050 7,861,719 8,788,343 9,776,969 10,331,553 10,857,243 11,401,511 11,971,818 12,570,448T otal 1 ,463,804 16,972,149 38,054,496 62,040,437 89,002,127 119,123,494 155,624,164 193,528,141 232,860,589 273,655,753 315,863,245

Fixed A ssets 37,520,000 37,520,000 37,520,000 37,520,000 37,520,000 37,520,000 37,520,000 37,520,000 37,520,000 37,520,000 37,520,000 Less: A ccum ulated depreciation 0 3,196,000 6,392,000 9,588,000 12,784,000 15,980,000 19,176,000 22,372,000 25,568,000 28,764,000 31,960,000N et Fixed A ssets 37,520,000 34,324,000 31,128,000 27,932,000 24,736,000 21,540,000 18,344,000 15,148,000 11,952,000 8,756,000 5,560,000

In tangib le A ssetsPre-operational E xpenses 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0T otal 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0

T otal A ssets 39,483,804 51,746,149 69,582,496 90,322,437 114,038,127 140,913,494 174,168,164 208,826,141 244,912,589 282,461,753 321,423,245

C urrent L iab ilitiesR unning F inance 1,463,804 0 0 0 0 0 0 0 0 0 0A ccounts payable 846,713 1,047,381 1,187,627 1,326,703 1,471,728 1,560,700 1,646,264 1,735,319 1,829,239 1,844,805

T otal 1 ,463,804 846,713 1,047,381 1,187,627 1,326,703 1,471,728 1,560,700 1,646,264 1,735,319 1,829,239 1,844,805

L ong-term liab ilitiesLong-term Loan 18,278,098 15,400,947 12,178,539 8,569,441 4,527,252 0 0 0 0 0 0T otal 18,278,098 15,400,947 12,178,539 8,569,441 4,527,252 0 0 0 0 0 0

E quityPaid-up C apital 19 ,741,902 19,741,902 19,741,902 19,741,902 19,741,902 19,741,902 19,741,902 19,741,902 19,741,902 19,741,902 19,741,902R etained E arnings 0 15,756,586 36,614,675 60,823,466 88,442,270 119,699,864 152,865,562 187,437,975 223,435,368 260,890,612 299,836,538T otal 19 ,741,902 35,498,488 56,356,577 80,565,368 108,184,172 139,441,766 172,607,464 207,179,877 243,177,270 280,632,514 319,578,440

T otal L iab ilities A nd E qu ity 39,483,804 51,746,149 69,582,496 90,322,437 114,038,127 140,913,494 174,168,164 208,826,141 244,912,589 282,461,753 321,423,245

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12 KKEEYY AASSSSUUMMPPTTIIOONNSSTTaabbllee 1111..11:: -- MMaacchhiinneerryy AAssssuummppttiioonnssPlant and machinery15 Local fabricated plantMaximum Capacity Utilization 90%Capacity utilization (First year) 70%

Tomato 2,000 KgCrushing Capacity per hourFruits 2,000 KgTomato 27%Average Recovery of Puree/Paste/Pulp

(% of total raw material) Fruits 60%Tomato Paste/puree 544,000 KgAnnual Production Capacity (Year 1)Fruits Pulp 1,344,000 Kg

TTaabbllee 1111..22:: --OOppeerraattiinngg AAssssuummppttiioonnssTomato Paste/Puree 16 hoursHours operational per dayFruits Pulp 8 hoursTomato Paste/Puree 90 daysDays operational per annumFruits Pulp 200 days

TTaabbllee 1111..33:: --EEccoonnoommyy rreellaatteedd AAssssuummppttiioonnss

Electricity Growth Rate 10%Wage Growth Rate 10%

TTaabbllee 1111..44:: --CCaasshh FFllooww AAssssuummppttiioonnssAccounts Receivable cycle 30 daysAccounts Payable cycle 15 daysRaw Material Inventory 3 daysFinished Goods Inventory 15 daysEquipment and Spare Parts Inventory 30 days

TTaabbllee 1111..55:: -- RReevveennuuee AAssssuummppttiioonnssPuree 55%Tomato ExtractPaste 45%

Sale Price Per Kg Rs.Bulk 28Tomato Puree

Retail 22.5Bulk 37Tomato Paste

Retail 47.5Fruit Pulp 33Sale Price Growth Rate 5%Domestic Sales 100%

15 Capable for tomato paste/puree and fruits pulp production

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TTaabbllee 1111..66:: --EExxppeennssee AAssssuummppttiioonnssPurchase Price Per Kg (Tomato) Rs. 6Average Purchase Price per Kg (Various Fruits) Rs.10Purchase Price Growth Rate 5%Maintenance Expense (% of plant and Machinery and Building) 1%Machine Maintenance Growth Rate 10%Fuel Cost per year Rs. 500,000Fixed Electricity (per month) Rs. 25,000Direct Electricity (per month) Rs. 175,000Packing Cost (per kg.) Rs. 2Chemical Cost (per kg.) Rs. 1Insurance Rate (% of Plant & Building) 1%

TTaabbllee 1111..77:: --FFiinnaanncciiaall AAssssuummppttiioonnssProject Life (years) 10Debt Ratio 50%Equity Ratio 50%Interest Rate on Long Term Loan 12%Interest Rate on Short Term Loan 12%Debt Tenure (Years) 5Discount Rate 25%