PRIME MINISTER'SYOUTH BUSINESS LOAN US S^ OAN

Prime Minister'sYouth Bvsine55 Loan

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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/-