Opportunity Brief Horticulture Processing Facility in Sindh, Pakistan

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1 Opportunity Brief Horticulture Processing Facility in Sindh, Pakistan

2 SEDF Vision To support entrepreneurial development based on Sindh's competitive advantage SEDF Mission To deliver value addition in non conventional yet vital sectors of the economy by extending technical and credit assistance

3 Sindh Province Contribution in National Production 8 7 Sindh Province Share in Horticulture Production Year ( ) ,7 6,1 Production - Million Tons p.a. Pakistan Production - Million Tons p.a. Sindh 1 2,3 2,1 0 Fruits Vegetables

4 Horticulture Production Wastage in Pakistan Production Wasted in Pakistan Million Tons p.a. (Year ) 7,68; 60% 5,12; 40% Wastage Commercialy Traded

5 The Sindh Province Advantage Production of Focus Products for Processing in Sindh - 000's Tons p.a. (Year ) Guava Mango Tomato Pakistan - National Sindh

6 Pak China Economic Corridor KHUNJERAB CHINA GILGIT Raikot KKH (335 Km) AFGHANISTAN PESHAWAR ISLAMABAD Indian Occupied Kashmir KKH (487 Km) Proposed Location Guava Pulping Plant QUETTA DI KHAN DG KHAN FAISALABAD MULTAN Pindi Bhattian LAHORE Lahore Multan Section (330 Km) IRAN KHUZDAR Larkana JACOBABAD SUKKUR INDIA Sukkur Multan Section (375 Km) GWADAR KARACHI HYDERABAD Sukkur Hyderabad (345 Km) ARABIAN SEA Hyderabad Karachi (136 Km)

7 Incentives Offered by Government of Sindh Subsidized price of land to be paid in 2 years in Special Economic Zone 10 Year Tax Holiday/Exemption 0% Duty on import of machinery Interest rate Subsidy by SEDF Govt. of Sindh

8 The Sindh Province Advantage Quality Horticulture Produce GoS Support Export Markets Sindh Advantage HR & Labor Availability 2 Seaports Rising Local Demand

9 Key Features of the Opportunity Pakistan poised to be food basket for Middle East Supported by Government of Sindh Sindh Enterprise Development Fund, Sindh Board of Investment Identification of appropriate location with due focus on backward linkages with farmers and growers. Provision of Financial Assistance to fill the viability gap of the commercial scale plant in terms of interest rate subsidy. SEDF intends to ensure selection of appropriate technology & manufacturing partners as successful operation shall pave the way for establishment of tens of such plants in Sindh province.

10 Pakistan has a booming consumer economy and food products demand and consumption is on the rise. Manufacturers of Juices, Jams, Ketchups and other confectionary have an ever increasing demand for pulps and concentrates. The Horeca Sector is also growing at a steady rate and their demand for Pulps and Concentrates continues to rise at a sharp rate. On the export front, the Middle Eastern region imports huge amounts of Pulps, Purees and concentrates from various sources (mainly China and India). Pakistan s share in this market as of now is negligible primarily due to inadequate quality assurance and halfhearted marketing efforts. India alone exports 170,000 tons of Mango pulp as compared to Pakistan s total pulp exports of 10,000 tons. There is exponential potential for Pakistan s pulp and concentrates provided the final product is as per the specification of the buyer and concrete relationship building and marketing efforts are undertaken.

11 Areas of Support: Based on focus sectors for Development Support leading to Food Security and Sustainable Economic Development; we request to consider supporting this initiative in the following areas : 1. Financial support for a lab size processing & pulping plant. Once this plant is set up and commercialized successfully; it is expected to be scaled for setting up a commercial scale plant to serve as a Model for further investment in the cluster. 2. Identification of companies for procurement of machinery, provision of technical assistance & buy back arrangements 3. R&D Support to bring the product up to the required standards of export markets 4. Backward Linkage R&D to align the produce to yield the required finished product

12 Estimated Project Cost : Summary Description Amount PKR Land 14,000,000 Civil works 85,000,000 Plant & Machinery 300,000,000 Furniture Fixtures & Fittings 5,000,000 Vehicles 6,000,000 Total Project Cost 410,000,000 Working capital requirement at Startup PKR 35,000,000

13 Thank You