(Preparation of Wonder Meat)

Transcription

1 Pre-Feasibility Study (Preparation of Wonder Meat) Pakistan Council of Scientific and Industrial Research. PCSIR. HEAD OFFICE Constitution Avenue, Sector G-5/2, Islamabad. Food Technology Center PCSIR Laboratories Complex Peshawar Tel. # Fax # Note: All Services / information related to PM's Youth Business Loan are Free of Cost March, 201 Page 1 of 8

2 1. DISCLAIMER In this document, we provide the information regarding the subject matter. The material of whole the document is based upon the data and information collected from various reliable sources which may differ from case to case. The information has been provided on as is where is basis without any warranties or assertions as to the correctness or soundness thereof. Food Technology Center PCSIR Laboratories Complex Peshawar employees do not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. The contained information does not preclude any further professional advice. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information which is necessary for making an informed decision, including taking professional advice from a qualified consultant / technical expert before taking any decision to act upon the information. 2. PURPOSE OF THE DOCUMENT The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective, the document/study covers various aspects of project concept development, start-up, and production, marketing, finance and business management. The purpose of this document is to facilitate potential investors in preparation of food product wonder meat by providing them a general understanding of the business with the intention of supporting potential investors in crucial investment decisions. The need to come up with pre-feasibility reports for undocumented or minimally documented sectors attains greater imminence as the research that precedes such reports reveal certain thumb rules; best practices developed by existing enterprises by trial and error, and certain industrial norms that become a guiding source regarding various aspects of business setup and it s successful management. Apart from carefully studying the whole document one must consider critical aspects provided later on, which form basis of any Investment Decision. 3. INTRODUCTION TO FOOD TECHNOLOGY CENTRE The Food Technology Center was established in1959 with the following objectives in view (i) development of processes for the economic utilization of indigenous food raw materials and the utilization of wastes of the food processing industry. (ii) providing technical assistance and advisory services to the food industry (iii) providing ad hoc analyses facilities to the industry as well as private sector and (iv) furnishing scientific and technological support for the development of food industries based on indigenous food raw materials. The Center consists of (i) Food Microbiology Section (ii) Fruit process Development Section (iii) Food processing and Page 2 of 8

3 Quality Control Section ( iv)food Biochemistry/Analytical Section (v) Food and Nutrition Section, (vi) Mycotoxin Section (vii) Food Pilot Plant Section (viii) Environmental Research Section 4. EXECUTIVE SUMMARY Wonder Meat is especially suited for dietary foods, where vegetable origin and control of fat content are prime importance. It is easy to handle and store. It can be used for the preparation of palatable and nutritious dishes with vegetable and rice, filling petties, sausages, burgers, sandwiches and pizza toping. It is nutritionally equivalent to beef. Soy appears to reduce blood cholesterol levels and therefore food and Drug Administration (FDA) has authorized allowing food containing soy to carry a heart healthy label. 5. INTRODUCTION TO SCHEME Prime Minister s Youth Business Loan, for young entrepreneurs, with an allocated budget of Rs. 5.0 Billion for the year , is designed to provide subsidized financing at 8% mark-up per annum for one hundred thousand (100,000) beneficiaries, through designated financial institutions, initially by the National Bank of Pakistan (NBP) and the First Women Bank Ltd. (FWBL). Loans from Rs. 0.1 million to Rs. 2.0 million with tenure up to 8 years inclusive of 1 year grace period, and a debt: equity of 90: 10 will be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA). 6. BRIEF DESCRIPTION OF PROJECT & PRODUCT Soybean is a relatively low cost and rich source of high quality vegetable protein. It contains 40-45% protein and % oil. Due to its high protein content soybean is known to be an excellent food supplement. It is also a good source of minerals and vitamins. It contains all essential amino acids and is free from cholesterol. It contains seven out of fourteen phytochemicals and has anti cancer effect and help to prevent other diseases. Wonder meat is a nonmeat food made from soybean protein and other ingredients mixed together. A vegetable base high protein product closely resembling minced meat in taste, texture and appearance was prepared from soybean. It contains 60 % protein, 25% oil and 5 % ash on dry weight basis. Different acids have been used for the isolation of soy protein from soybean. The percentage Page 3 of 8

4 yield and quality of the product was better when prepared by citric acid precipitation. Various flavorings, supplementary nutrients and edible colours were added to give it a taste and appearance similar to that of minced meat. 7. CRITICAL FACTORS Energy electricity factors. Lack of marketing and advertising of the products in public sector. Higher prices make the quality products less reachable as compare to cheap and low grade products. Prior experience and related /education in the related field of business. 8. INSTALLED & OPERATIONAL CAPACITIES See the number 12 (PROJECT COST SUMMARY) 9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT Peshawar, Nowshera, Mardan, Charsadda and Swabi are five key clusters for Food and Nutraceutical products. Production unit can be established in the suburbs / periphery areas of these cities. 10. POTENTIAL TARGET MARKETS Local Food & Nutraceutical Industries 11. PRODUCTION PROCESS FLOW Residue Soabean soaking in water Drying Grinding Filtration Addition of Water and heating to 60 C Filtration after one hour Mixing of two filtrate Page 4 of 8

5 12. PROJECT COST SUMMARY Addition of food color Heating and precipitation Filtration Washing with water Addition of food additives to the protein extract Drying in dehydrator Packing Name of product / Activity: Wonder Meat Capacity: 300 packets / batch Production time per batch: 3 days ( 0 7 h r s / d a y) Packing Size 100 g / pack 12.1 Project Economics Production capacity 132 batches (3960 kg) per year. The following table shows internal rate of return, payback period and Net Present Value; Table 1: Project Economics Description Details Internal Rate of Return (IRR) 80% Payback Period (yrs) --- Net Present Value (NPV) Project Financing Following table provides details of the equity required and variables related to bank loan; Table 2: Project Financing Description Total Equity (10%) Rs Bank Loan (90%) Rs Markup to the Borrower 8% (%age/annum) Tenure of the Loan (Years) 8 Grace Period (Year) 1 Details Page 5 of 8

6 12.3 Project Cost Following requirements have been identified for the operation of the proposed business. A rental premise has been recommended for this project. Table 3: Project Cost Capital Investment Amount (Rs.) Machinery /- Furniture and Fixture 28000/- Office Equipment 77000/- Technology Charged TBIC /- Preoperational expenses /- Total Capital Cost /- Initial Working Capital /- Total Project Cost / Space Requirement The area has been calculated on the basis of space requirement for production, management and storage. However, the units operating in the industry do not follow any set pattern. Following table shows calculations for project space requirement. Table 4: Space Requirement Space Requirement Yards Management building 40 Processing area 60 Open area 20 Total Area 120 yards Premises will be obtained on Rs. 20,000-30,000 per month Machinery and Equipment Following table provides list of machinery and equipment required for processing unit from raw to finish product. Table 5: Machinery & Equipments S. Items Cost Specification Qty No (Million Rs.) 1 Weighing Balance 50 Kg S.S. Soaking Tank 50 Kg Pin Grinder 30 Kg/hr Storage tank for slurry 100 Liters Mixing Tank 50 Kg Washer 20 Kg Dehydrator 50 Kg Packing machine 10 Kg/hr Page 6 of 8

7 Total 1.30 Note: The cost may vary at the time of purchase Furniture & Fixture Following furniture and fixture will be required for the unit: Table 6: Furniture & Fixture Details Quantity Quantity Cost Amount (Rs.) Office / Visitor Chairs /- Office Tables /- Fans (Pedestal and Ceiling) /- Total Rs / Office Equipment Office equipment comprises of necessary IT equipment items. Table 7: Office Equipment Details Quantity Cost Amount Computer desktop (used) Computer printer Telephone Laptob Total 4 Rs / Raw Material Requirements The raw materials are easily available in local market. Table 8: Cost of Materials S. # Description Cost 1 Raw material Rs.12500/ batch 2 Operating cost (Labour) Rs.3400/ batch 3 Utilities Rs.1500/ batch 4 Depreciation charges Rs.1700/ batch 5 Packing material Rs.4900/ batch Total Cost Rs.24000/ batch Cost per packet (100g/ pack) Rs.80.00/- Page 7 of 8

8 12.9 Human Resource Requirement Following table provides details of human resource required for this venture: Table 9: Human Resource Requirement Description No. of Employees Salary per employee per month (Rs.) Production/ Processing Supervisor Skilled Worker Un-skilled worker Total Staff / Revenue Generation Product Wonder Meat Sales Price (Rs./Unit) Rs per packet Table 10: Revenue Generation First Year production Quantity First Year Sales Revenue (Rs) 3960 Kg* Approx 2.5 Million* *Subject to demand 13. CONTACT DETAILS The Director General, PCSIR Laboratories Complex, Jamrud Road, University of Peshawar Tel# Page 8 of 8