Upload
zaka-ul-hassan
View
3.424
Download
6
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
Supervised by: Syed Afzal Moshadi Shah
Group Members: - Zaka Ul Hassan
- Nouman Sarfaraz
Business Idea:•Plantation of Olive Trees in Pakistan•Providing consultancies
Climatic Requirements for Olive Cultivation
Factors Standard Climate Pakistan Climate
Temperature 5-45oC 10-45oC
Rainfall 700-800mm More than 500mm
Humidity 75-90% 70%
Altitude 400-1700meter 100-3000meter
Chilling Req. 400-2000 hrs 400-2100 hrs
Slope upto 20o 10o-50o
Olive Growing Environment
Marginal / Barren landsMarginal / Barren Land
Market consumption and production World Wide
Country Production in Tons (2009) Production % Consumption
Spain 1,199,200 41.2% 20%
Italy 587,700 20.2 30%
Greece 332,600 11.4 9%
Syria 168,163 5.8 3%
Tunisia 150,000 5.2 2%
Turkey 143,600 4.9 2%
Morocco 95,300 3.3 2%
Table 1 – World Olive Production & Consumption Countries
Market consumption in PakistanTable 2 - Import of Olive Oil in Pakistan
Year Quantity (tons) Value in (Mn PKR.)
2004-05 461 59.9
2005-06 746 105
2006-07 1463 172.2
2007-08 2008 358
2008-09 2768 380Source: Federal Bureau of Statistics (2009)
Source: Edible oils in Pakistan
50 Mn naturally grown wild olive trees in marginal areas
7 Mn wild olive trees grafted by support of PODB and IAO
900 acre olive orchards establish in different region of KPK, Balochistan and Potohar
Pakistan Government Actions
Pakistan is world's 4th largest importer of edible oils
Edible oil imports forecast 2.16 Mn metric tons 2011/12
Demand of edible oil is increasing at the rate of 6 to 8 % per annum
Pakistan Edible Oil Usage
Source: USDA Reports (2011)
Olive Orchard
Olive Plant Varieties:HARDY
Arbequina Leccino PendallinoSevallinoAscolanaCoratina
SENSTIVEFrantoioManzanillaKoroneiki
MODERATEPicholine
Features•Forms
Generally olives are being use in three forms:Olive OilTable Olive Olive Cake (waste after olive extraction use for fertilizer)
•Plant benefitsGenerate energy 2.5 times more than other woodsAsh used for fertilizing gardens and plantsWood is being use for making handicrafts
•Oil GradesOlive oil has four grades:Extra virgin olive oilOlive Pomace oil Sulphonated oil Technical oil
BenefitsProducts can be made
•Cosmetics•Health and beauty •Personal Care•Herbal Medicine•Edible products eg.
•Pickles, jams, sauces, extract vinegar, breads, confectionary, and traditional Pakistani Sweets.
Nutritional Importance of Olive
Vitamins E, K, and A Used as a balm Massaged onto the body Help against wrinkles and delaying the effects of old age Help combat against strokes, heart-disease, High blood pressure, diabetes
Table Olive
Product OptionsOlive Oil Seeds Tasbeegh
Traditional Sweet BurfiDried Olive Powder BreadMedicine From Olive
Financial CostingOlive orchard on 40 kanal which is 5 acre.
Basic Description:835 Plants on 5acre (167/acre spacing of 4x6 meter)
Capital Cost:We have taken the costing of 5 acre area for the plantation of Olive plants.
Equipments Cost PKR.
9 Water Tanks 45,000
Land Bore 40,000
Hard Plastic Pipe 11,880
One Electric Motor 10,000
Total 106,880
Table 3 – Irrigation equipments
Irrigation System Installation Cost:
Material No. of Unit Per Unit PKR. Total
Olive Plants 835 30 25,050
Fertilization 6 2,000 12,000
Land Preparation Labor 3 7,000 21,000
Irrigation System 1 106,880 106,880
Total 164,930
Table 4 – Plants Installation Cost
Initial Cost:
No. of Months Per Month Total
Manpower 12 7,000 84,000
Electricity (April, May, June) 3 3,000 9,000
Electricity Per Month 9 500 4,500
Other Expenses 12 500 6,000
Fertilizer 6 2,000 12,000
Total 115,500
Annually Running Cost
Table 5 – Input Cost
Return
Estimated Production:We have estimated the production of olives by 95% of successive rate.
Table 6 – Production of Olives Per Tree
Year Olives-kg/Tree Olives-kg /5 Acre
Year 1 0.0 0.0
Year 2 0.0 0.0
Year 3 0.0 0.0
Year 4 4.5 3,556
Year 5 6.5 5,135
Year 6 8 6,320
Year 7 11 8,690
Year 8 12 9,480
Year 9 13 10,270
Year 10 15 11,850
Preparation of Table Olive
Cost of producing Table Olives
Packaging PKR./kg
Bottle 35
NaOH 1
Nacl 1.66
Vinegar 40
Labor 2
Utility Expenses 2
Total 81.66
Price Per Kg
Selling Cost PKR./kg
Retail Price 500
COST
Manufacturing Cost (81.66)
Retailer Margin 20% (100)
Sales man Margin 5% (25)
Profit 293.34
Preparation of Oil
Cost of producing Olive Oil
Packaging PKR./ltr
Bottle 35
Transportation 2.81
Labor 2
Utility Expenses 2
Total 41.81
Profit Per ltr
Selling Cost PKR./ltr
Retail Price 500
COST
Manufacturing Cost (41.81)
Retailer Margin 20% (100)
Sales man Margin 5% (25)
Profit 333.18
Projected Cash Flow Analysis Table Olives:
Year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Olive kg 0 0 0 0 2,133 3,081 3,792 5,214 5,688 6,162 7,110
Manufacturing Cost 0 0 0 0 184,181 261,594 319,655 435,775 474,482 513,189 590,603
Total Cost 164,930 115,500 115,500 115,500 549,681 377,094 435,155 551,275 589,982 628,689 706,103
Revenue 0 0 0 0 799,875 1,155,375 1,422,000 1,955,250 2,133,000 2,310,750 2,666,250
Net Profit -164,930 -115,500 -115,500 -115,500 250,194 778,281 986,845 1,403,975 1,543,018 1,682,061 1,960,147
Income -164,930 -280,430 -395,930 -511,430 -261,236 517,045 1,503,890 2,907,865 4,450,883 6,132,944 8,093,091
Cumulative Cost 164,930 280,430 395,930 511,430 1,061,111 1,438,205 1,873,360 2,424,635 3,014,617 3,643,306 4,349,409
Cumulative Revenue 0 0 0 0 799,875 1,955,250 3,377,250 5,332,500 7,465,500 9,776,250 12,442,500
NPV @ 0%NPV @ 5%NPV @ 10%NPV @ 15%
12309703972180278157136385157
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
0 1 2 3 4 5 6 7 8 9 10
Cumulative Cost
Cumulative Revenue
Year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Olive ltr 0 0 0 0 444 642 790 1,086 1,185 1,284 1,481
Manufacturing Cost 0 0 0 0 18,579 26,837 33,030 45,416 49,545 53,674 61,931
Total Cost 164,930 115,500 115,500 115,500 134,079 142,337 148,530 160,916 165,045 169,174 177,431
Revenue 0 0 0 0 166,641 240,703 296,250 407,344 444,375 481,406 555,469
Net Profit -164,930 -115,500 -115,500 -115,500 32,561 98,366 147,720 246,428 279,330 312,233 378,038
Income -164,930 -280,430 -395,930 -511,430 -478,869 -380,502 -232,782 13,645 292,976 605,208 983,246
Cumulative Cost 164,930 280,430 395,930 511,430 645,509 787,846 936,376 1,097,292 1,262,337 1,431,511 1,608,942
Cumulative Revenue 0 0 0 0 166,641 407,344 703,594 1,110,938 1,555,313 2,036,719 2,592,188
Projected Cash Flow Analysis Olive Oil:
NPV @ 0%NPV @ 5%NPV @ 10%NPV @ 15%
184730814747671192541975345
Brand Name: Potohar Olives
Target Market:
- Upper and Middle class
Marketing Strategy:-Push Strategy (in the beginning)
Give away high margins to Retailers (20% of the price) and Sales Staff (5-15% of the price)
Low price entry strategy:
Product Competitor Rate PKR./ltr Our Rate PKR./ltr
Extra Virgin Olive Oil 726.25 500.00
Pomace Olive Oil 479.12 440.00
Table Olive 725.11 500
The proposed project would require following staff members
First three yearsManager - 1Gardeners - 1 to 3
Fourth year onwardManager - 1Gardeners - 1 to 3 Machine operators - 1Labor - 2
SWOT Analysis
Strengths:
High profit margin
Suitable with Pakistan’s climate
Barren / marginal land can be utilized
It can be cultivated on the fertile land along with
other crops as well
Whole plant right from the seed to fruit is
beneficial and useful
Religious importance
Opportunities:
Growing tastes and preferences
Can be exported to neighboring countries
Huge free barren land
Can develop a strong national and international
brand.
Weakness:
Lack of Awareness (both producers and
consumers/ customers)
Government level subsidy not availed
Threats:
Big players response
Strong brands loyalty
Government policies
Thanks for your patienceAny Question???