Post on 11-Mar-2018
PRIME MINISTER'SYOUTH BUSINESS LOAN US S^ OAN
Prime Minister'sYouth Bvsine55 Loan
1 •i E•
Pre-Feasibility Study
(Development of Aloe Melon Herbal Drink)
Pakistan Council of Scientific and Industrial Research. PCSIR.
HEAD OFFICE
Constitution Avenue, Sector G-512,051-9225393
Islamabad.
Food and Biotechnology Research Centre,
PCSIR Laboratories Complex, Ferozepur Road, Lahore-54600.
Tel.# 042-99230709
Note: A11 Services / information related to PM's Youth Business Loan are Free of Cost
May, 2014
1. BRIEF DESCRIPTION OF PROJECT & PRODUCT
Due to pharmacological benefits of Aloe vera plant, an innovative and economically
feasible process for the formation of herbal drink is developed. A process formulation for
aloe-melon drink production has been developed which is ready to be leased out.
Juice refers to plant/fruit extracts which are generally assumed to be more acceptable and
les hazardous than the synthetic drinks. Such kind of product from plant origin may be a
source of safe and biodegradable chemicals, considered beneficial for human health. Aloe
vera is one of the medicinal plants having immense importance. One table spoon of Aloe
vera gel contains 75 different biological active chemicals. Aloe vera promotes good
metabolism, which improves the overall body function leading to higher energy level. It
is powerhouse of nutrition as it contains a variety vitamins like A, C, E, B1, B5 & B6
besides B12 which promote the formation of a net of fibers that trap the red corpuscles of
the blood and mineral like iron, magnesium, manganese, sodium, phosphorus, calcium
and copper. Aloe vera is a little bitter in taste, so it can be mixed with other fruits like
watermelon or orange for a juice formulation preparation which tastes great with
increased nutritional value. Juice industry is already established in Pakistan; hence it is
only a matter of awareness for the industrialists as well as general public about the
benefits of this product as compared to the other juices present in the market. Such kind
of herbal (Aloe vera in combination with water melon) is full of nutrients needed for the
immune system/health of human being with medicinal importance. It could be a much
better source of energy than other locally available juices.
2. POTENTIAL TARGET MARKETS
Food and Health industry
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Preparation of Aloe-Melon Herbal Drink
Washing of Aloe vera leaves
Clear Gel Separation
Blending gel
Gel filteration
Gel volume Lasurement
Selected fruit juice preparation
Mixing of aloe vera gel fruit juice in selected ratios
Adjustment of Brix
Sterilization Jprepared juice
Packing & labeling
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Name of product/Activity: Aloe melon-herbal drink
Capacity: 50L/ day
Production time per batch: 8hours
Estimation of Annual production: 15,OOOL/ 300 day
Packing Size: 1L, 500mL
4.1 Project Economics
Description DetailInternal Rate of Return (IRR) 80%Payback Period (Yrs) --Net Present Value(NPV) --
Production capacity: per year.
4.2 Project Financing
Following table provides details of the equity required and variables related to bank loan;
Description Details
Total Equity (10%) 192300Bank Loan (90%) 1730700Markup to the Borrower (%age/annum) 8%Tenure of the Loan (Years) 8Grace Period (Year) 1
4.3 Project Cost
Following requirements have been identified for the operation of the proposed business.
Item Total pricein Rs
Machinery 600,000Furniture and Fixtures 138500Office Equipment 134500Technology Charged TBIC 400,000Preoperational expenses 150,000Initial Working Capital 500,000Total Project Cost 1,923,000
4.4 Space Requirement
Land own by the business owner.
4.5 Machinery and Equipment
Equipment
Sr.No Description Cost Total Cost
1 Machineries 600,000 600,000
4.6 Furniture & FixtureFollowing furniture and fixture will be required for the unit:
Details Quantity Cost Amount (Rs.)
Office / Visitor Chairs 6 6,000 36,000.0
Office Table 2 10,000 20,000.0
Fans (Pedestal and ceiling) 5 3,500 17,500.0
Air Conditioner (1.5 ton
Spilt) for Lab.
1 65,000 65,000.0
Total 138500.0
4.7 Office EquipmentOffice equipment comprises of necessary IT equipment items.
Details Quantity Cost AmountComputer laptop 1 65,000 65,000
Computer desktop (used) 1 35,000 35,000
Computer Printer 2 18,000 18,000
Flat bed Scanner 1 10,000 10,000
Networking 1 5000 5000
Telephone 3 1500 1500
Total 9 134500.0
4.8 Raw Material Requirements
Description Total cost/Batch(Rs) Total cost/month of 25days
Raw Material/
batch 50L/Batch
5000 125,000
Packaging Charges 500 12,500
Total 5500 137,500
4.9 Human Resource Requirement
Description Employees Required Cost/ batch(Rs)
Total Cost/Month (Rs)
Scientist/ Technologists 1 700 17,500
Unskilled person 2 800 20,000
Total Cost 5 1500 37,500
Salaries of all employees are estimated to increase at 10% annually
4.10 Revenue Generation
Product Sale Price 15t Year 1St year Sales( Rs./Unit) Production Revenue (Rs)
QuantityAloe -melon drink 95 15000L Approx. 1.5 Million
Cost of One Bottle (500mL): Rs. 951-Price of one bottle (500m1) with % profit:- Rs. 119/-