Rice PDF

Pre-Feasibility, Parboil Rice
Processing Venture in Sindh
PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH
2010
Table of Contents
EXECUTIVE SUMMARY .........................................................................................................................................3
1.
INTRODUCTION ..............................................................................................................................................4
2.
MARKET ANALYSIS .......................................................................................................................................5

2.1.
Suitability of Sindh for Parboiled Rice Processing Facility .................................................................5
2.1.1.
2.2.
2.3.
2.4.
3.
Export Potential .........................................................................................................................................7

Potential New Markets .............................................................................................................................7
International Scenario ...............................................................................................................................8
THE PROJECT ................................................................................................................................................ 10

3.1.
Rice Milling Operation ........................................................................................................................... 10
3.2.
Proposed Location................................................................................................................................... 11
3.3.
Human Resource ..................................................................................................................................... 11
3.4.
Machinery & Equipments ...................................................................................................................... 12
3.4.1.
3.5.
4.
Production of Rice in Sindh .................................................................................................................................. 5
Details of Vehicles .............................................................................................................................................. 12
Building & Infrastructure ....................................................................................................................... 13
THE FINANCIAL ANALYSIS ....................................................................................................................... 14

4.1.
Project Economics.................................................................................................................................... 14
4.2.
Working Capital ...................................................................................................................................... 14
4.3.
Financing Option ..................................................................................................................................... 15
4.4.
Project Income Statement ....................................................................................................................... 16
4.5.
Project Cash Flow Statement ................................................................................................................. 17
4.6.
Project Balance Sheet .............................................................................................................................. 18
ANNEX A ................................................................................................................................................................... 19
ANNEX B ................................................................................................................................................................... 20
IMPORTANT CONTACTS ..................................................................................................................................... 21
2010
Executive Summary
Rice is the most important staple food for a large part of the world population. According to FAO
Statistics of 2006, Rice is the grain with the second highest worldwide production, after maize. Its annual
yield worldwide is approximately 535 million tons. Fifty countries produce rice, with China and India
supporting 50% of total production. Southeast Asian countries separately support an annual production
rate of 23 million metric tons of which they export very little.
Pakistan already enjoys huge brand recognition and customer franchise in international rice markets,
both in basmati and non-basmati categories. Sindh produces about 30% of total rice production in
Pakistan and is the main producer of non basmati rice. Non-Basmati varieties of Sindh, namely IRRI-6
and IRRI-9 are in great demand internationally mainly from Africa and Far East Asia. Rice processing
facility in one of the rice producing areas of Sindh with the capability of producing parboil rice is a
perfect recipe for a viable agribusiness venture.
This pre-feasibility study aims at providing critical information on business viability of putting up a
Parboil Rice Processing Plant in Sindh. Among other things, nature of the opportunity; ideal location for
setting up the facility; estimated costs; potential returns; availability of human resource etc. are
presented in an objective manner. The information contained in this paper provides a sound base for
interested investors to build upon it a more detailed and comprehensive Business Plan.
1.
2010
Introduction
Parboiled rice is rice that has been boiled in the husk. Parboiling makes rice easier to process by hand,
improves its nutritional profile, and changes its texture. Polishing rice by hand, that is, removing
the bran layer is easier if the rice has been parboiled. It is, however, somewhat more difficult to process
mechanically. The bran of parboiled rice is somewhat oily, and tends to clog machinery. Most parboiled
rice is milled in the same way as white rice
Parboiling rice drives nutrients, especially thiamine, from the bran into the grain, so that parboiled white
rice is 80% nutritionally similar to brown rice. Because of this, parboiling was adopted by North
American rice growers in the early 20th century.
The starches in parboiled rice become gelatinized, making it harder and glassier than other rice.
Parboiled rice takes more time to cook, and the cooked rice is firmer and less sticky. In North America,
parboiled rice is generally partially or fully precooked by the processor.
Parboiling is a hydrothermal treatment of paddy In other words parboiling means precooking of rice
within the husk. Paddy is first hydrated, then heated to cook the rice and finally dried.
2.
2010
Market Analysis
Rice is the most widely consumed staple food at the global level and is an excellent source of compound
carbohydrates. Pakistan is the 11th largest producer and 4th largest rice exporter. Pakistan produced 6.22
million tons of rice over an area of around 5 million acres. Rice exports remained the second largest
foreign exchange earner for the country after cotton. Sindh province produces about 1.461 million tons
from an area of 0.544 million hectors with an average yield of 2.686 tonnes rice per hector. The main
varieties of rice grown in Sindh are Basmati, Irri6 and Irri9. The fine type variety has different names in
Sindh such as Roosi, GM Basmati, Kernel, Supper, Dubai or Basmati-2000. D-98 Basmati Rice from
Sindh, is also known to the world as Sindhi Basmati.
2.1. Suitability of Sindh for Parboiled Rice Processing Facility

Nature has blessed Sindh with ideal weather and soil conditions to produce multiple crops in huge
volumes. Sindh is the major producer of non basmati rice in Pakistan and produces 30% of countrys
total rice production. Being the main production base of non-basmati rice Sindh is the most logical
choice for setting up a parboiled rice facility.
2.1.1. Production of Rice in Sindh

Major Rice growing areas in Sindh are Larkana, Shikarpur, Qambar, Shadadkot, Badin, Thatta and
Jacobabad. Like in all other agriculture produce Sindh has a unique advantage of early harvest and hence
the rice processing facilities in Sindh always have the advantage of receiving early crop.
The below charts show area wise rice cultivation and production pattern in Sindh:
1.5%
0.5%
0.1% 0.7% 1.2% 0.8%
0.2%
2010
0.1%
Naushero Feroze
0.0%
Sanghar
7.1%
Khairpur
19.1%
10.1%
Ghotki
Sukkur
Hyderabad
4.6%
Jamshoro
Nawabshah
12.7%
Shikarpur
17.3%
Kamber-Shahdatkot
Larkana
Thatta
7.9%
Jacobabad
16.1%
Badin
(District wise Sindh Rice Cultivating Area 2006 2007)
1.5%
0.5%
0.1% 0.7% 1.2%
0.8% 0.2%
0.1%
0.0%
7.1%
Naushero Feroze
Sanghar
Khairpur
10.1%
19.1%
Ghotki
Sukkur
4.6%
Hyderabad
Jamshoro
Nawabshah
12.7%
17.3%
Shikarpur
Kamber-Shahdatkot
7.9%
Larkana
16.1%
Thatta
Jacobabad
(District wise Sindh Rice Production Area M.Tons 2006 2007)
2010
The recent exports of rice from Pakistan are almost US $2.0 billion dollars which is around 10% of total
exports of Pakistan. The domestic demand of rice in Pakistan is 2.2 million tonnes which makes 4 million
ton of rice available for exports. Africa is the major rice importer of the world with a total import of 1.4
million tonnes per annum. Irri6 rice of Sindh widely been exported to African countries. Pakistan exports
80 per cent super basmati rice to European Union. The average price of Irri6 is Rs. 32,000 per ton in
Pakistan and export price is US$625 per metric ton. The export price of Parboiled rice is US$ 1,150 per
metric ton.
2.2. Export Potential

After Thailand, Vietnam and USA Pakistan was the 4th largest exporter of rice in the world in 2009. The
total rice export of Pakistan in year 2009 stood 3.2 million tons. In the recent past, Pakistan has been
successfully producing rice substantially in excess to the local demand. This strong production capability
significantly contributed towards Pakistans ability to increase its share in the world market. Another
very important world trend supporting Pakistans ability to increase its export market share in rice was
the decision of major rice producing countries like India and China to restrict their exports to fulfill their
huge domestic demand.
As rice exports crossed $2 billion mark this year, the sector established itself as the countrys second
largest export earner for the country. Rice export shows a 260 per cent growth in value over the last six
years or an annual growth rate of 25 per cent since 2002-2003.
The global conditions whereby major rice consuming countries are building their rice stocks and the fact
that Pakistans main competitors are not actively supplying offer a unique opportunity to Pakistani
exporters to quickly increase their share of the international markets. Rice Export Association of
Pakistan is optimistic that export of the commodity would exceed to $3 billion by 2013.
2.3. Potential New Markets

China, one of the world's biggest rice markets can be exploited by aggressive and intelligent marketing
efforts. Another huge potential market is South Africa where Pakistan has paltry share of only 3 per cent
out of the total market of 10 million tons. Iran is another market for rice which must be thoroughly
2010
exploited through all available channels. Russia imports 700,000 tonnes rice annually and Pakistani rice
has a lot of potential for rice export to this country.
2.4. International Scenario

Following charts show the major buyers and sellers in the world rice market.
2010
3.
2010
The Project
3.1. Rice Milling Operation

Human beings cannot consume paddy in its raw form. It needs to by suitably processed for obtaining
rice. Rice milling is the process, which helps in removal of hulls and barns from paddy grains to produce
polished rice. Rice forms the basic primary processed product obtained from paddy and this is further
processed for obtaining various secondary and tertiary products.
The Basic Rice Milling Process Consists Of:

Process Definition
1. Pre Cleaning: Removing all impurities and unfilled grains from paddy.
2. De-stoning: Separating small stones from paddy.
3. Parboiling (Optional): Helps in improving the nutritional quality by gelatinization of starch inside the
rice grain. It improves the milling recovery percent during de-shelling and polishing/whitening
operation.
4. Husking: Removing husk from paddy.
5. Husk Aspiration: Separating the husk from brown rice/unhusked paddy.
6. Paddy separation: Separating the unhusked paddy from the brown rice.
10
2010
7. Whitening: Removing all or part of the bran layer and germ from brown Rice.
8. Polishing: Improving the appearance of milled rice by removing the remaining bran particles and by
Polishing the exterior of the milled kernel.
9. Length Grading: Separating small and large broken from head rice.
10. Blending: Mixing head rice with predetermined amount of broken, as required by the customer.
11. Weighing and Bagging: Preparing the milled rice for transport to the Customer
PRODUCTION PROCESS
3.2. Proposed Location

Any of the above mentioned rice production centers of Sindh would be ideal for the proposed venture.
The cost of land associated for rice cultivation and production will be at the cost of Rs. 5,000,000/acre.
3.3. Human Resource

Both unskilled and skilled workforce would be required for the proposed venture. Sindh has sufficient
supply of both types of workforce and rice processing is already an established industry and therefore,
finding experienced workforce for any new setup would be very easy.
11
2010
Post
Hiring before Year-0 (No of

months)
No. of
personnel
Salary/Month
CEO/Owner
60,000
Manager
40,000
Plant Manager/Engineer
30,000
Telephone Operator
10,000
Accounts Officer
15,000
Admin Officer
15,000
Contract Labor
20
8,000
Electrician & Technical

Staff
Security Staff
15,000
10,000
Store Keeper
10,000
33
213,000
Total
3.4. Machinery & Equipments

Description
Amount PKR
Parboiling Unit ( 32 T/B)

Husking Unit ( 48 tons per day )
Polishing Unit (32 tons per day)
Sorting Unit
10,812,500
4,000,000
5,000,000
8,550,000
TOTAL
28,362,500
3.4.1. Details of Vehicles

Motorcycle
65,000
65,000
Suzuki Alto
750,000
750,000
12
2010
3.5. Building & Infrastructure

Description
Quantity / Area
Sq. Ft.
Cost / Rate Rs.
Construction
Cost PKR Rs.
Management building
Paddy Storage
Parboiled Section
Processing Section
Weighing & Packing
Rice Storage
Grounds & Free Space
1,000
10,000
5,000
8,000
1,000
5,000
10,000
1,200
500
500
500
500
500
50
1,200,000
5,000,000
2,500,000
4,000,000
500,000
2,500,000
500,000
Total Infrastructure
40,000
16,200,000
13
4.
2010
The Financial Analysis
4.1. Project Economics

Description
Amount (PKR Rs.)
Land
5,000,000
Building/Infrastructure
16,200,000
Machinery & equipment
28,362,500
Furniture & Carpeting
320,000
Car & Motorcycle
823,150
Computers, Printer, fax & other items
81,800
Utilities Installations & Pre-operating costs
2,489,548
Legal Expenses
100,000
Total
53,376,998
4.2. Working Capital

Description
Amount (PKR Rs.)
Inventory (Machine parts)
53,771
Raw material inventory
11,943,750
Insurance upfront
324,783
Cash in hand
2,000,000
Total Working Capital
Total Investment
Internal Rate of Return (IRR)

Modified Internal Rate of Return (MIRR)
Payback Period (yrs)
Net Present Value (NPV) @ 25% & 19%
14,322,304
PKR 67,699,302
Equity
73%
35%
1.95
71,907,494
Project
55%
27%
2.25
105,619,298
2010
4.3. Financing Option

Looking at the current market trends lending of up to 50% could be available on these projects. A list of
financial institutions willing to facilitate such projects in given in Annexure B.
Initial Financing
Amount in PKR
Debt
55%
37,755,121
Equity
45%
29,944,181
15
2010
4.4. Project Income Statement

INCOME STATEMENT
Year 1
Year 2
Year 3
Year 4
Year 5
Revenue
121,586,384
156,408,867
176,984,190
199,226,024
223,249,581
Cost of goods sold
(72,398,157)
(97,713,514)
(110,841,798)
(125,147,410)
(140,729,912)
Gross Profit
49,188,227
58,695,352
66,142,392
74,078,614
82,519,669
Administration expense
(2,224,800)
(2,441,410)
(2,679,109)
(2,939,951)
(3,226,188)
Rental expense
Utilities expense
Travelling & Comm. expense (phone, fax,
etc.)
Office vehicles running expense
Office expenses (stationary, etc.)
General administration & selling expenses
(736,000)
(809,600)
(280,800)
(979,616)
(1,303,869)
(1,908,994)
(308,139)
(338,140)
(371,062)
(407,189)
(123,473)
(135,820)
(149,402)
(164,342)
(180,776)
(43,200)
(47,406)
(52,022)
(57,086)
(62,644)
Promotional expense
(121,586)
(156,409)
(176,984)
(199,226)
(223,250)
Insurance expense
(324,783)
(288,189)
(251,595)
(215,001)
(178,407)
Professional fees (legal, audit, etc.)
(121,586)
(156,409)
(176,984)
(199,226)
(223,250)
Depreciation expense
(3,851,060)
(3,851,060)
(3,851,060)
(3,851,060)
(3,851,060)
Amortization expense
(522,518)
(522,518)
(522,518)
(522,518)
(522,518)
Property tax expense
Miscellaneous expense
Subtotal
(10,565,670)
(3,161,342)
(3,844,347)
(4,944,136)
(11,431,048)
(12,338,771)
(13,667,687)
(15,728,412)
38,622,557
47,264,305
53,803,621
60,410,927
66,791,257
Other income
154,367
873,563
2,284,870
3,962,186
5,912,185
Gain / (loss) on sale of assets
Earnings Before Interest & Taxes
Operating Income
(2,215,864)
(2,714,089)
38,776,924
48,137,868
329,260
56,088,492
64,373,113
73,032,702
Interest expense
(6,420,045)
(5,392,008)
(4,175,471)
(2,890,099)
(1,564,365)
Earnings Before Tax
32,356,880
42,745,860
51,913,021
61,483,014
71,468,337
Tax
(6,471,376)
(8,549,172)
(10,382,604)
(12,296,603)
(14,293,667)
NET PROFIT/(LOSS) AFTER TAX
25,885,504
34,196,688
41,530,417
49,186,411
57,174,669
25,885,504
60,082,192
101,612,608
150,799,020
60,082,192
101,612,608
150,799,020
207,973,689
Balance brought forward

Total profit available for appropriation
25,885,504
Dividend
Balance carried forward
25,885,504
60,082,192
101,612,608
150,799,020
207,973,689
16
2010
4.5. Project Cash Flow Statement

CASH FLOW STATEMENT
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Net profit
25,885,504
34,196,688
41,530,417
49,186,411
57,174,669
Add: depreciation expense
3,851,060
3,851,060
3,851,060
3,851,060
3,851,060
amortization expense
522,518
522,518
522,518
522,518
522,518
Deferred income tax
2,836,250
Accounts receivable
(9,993,401)
(1,431,061)
(2,276,622)
(1,759,609)
(1,901,317)
Finished goods inventory
(17,242,243)
(2,370,808)
(2,564,784)
(2,772,229)
(2,994,008)
Operating activities
Equipment inventory
(46,089)
(25,332)
(21,540)
(27,404)
(34,774)
(44,023)
(7,875,000)
(4,328,297)
(3,680,403)
(4,682,343)
(5,941,622)
(7,521,899)
Advance insurance premium
(324,783)
36,594
36,594
36,594
36,594
(29,691)
Accounts payable
6,245,242
2,131,384
1,327,468
1,510,356
1,725,746
Other liabilities
Cash provided by operations
(8,245,872)
7,787,895
33,234,431
37,716,905
44,598,705
50,783,056
Change in long term debt
36,168,373
(5,613,220)
(6,641,257)
(7,857,794)
(7,365,185)
(8,690,918)
Issuance of shares
Cash provided by / (used for)
financing activities
27,527,539
63,695,913
(5,613,220)
(6,641,257)
(7,857,794)
(7,365,185)
(8,690,918)
Capital expenditure
(53,450,041)
(1,325,691)
Acquisitions
Cash (used for) / provided by
investing activities
(53,450,041)
(1,325,691)
NET CASH
2,000,000
2,174,675
26,593,175
29,859,111
37,233,520
40,766,447
2,000,000
4,174,675
30,767,850
60,626,961
97,860,481
Financing activities
Investing activities
Cash balance brought forward

Cash available for appropriation
2,000,000
4,174,675
30,767,850
60,626,961
97,860,481
138,626,928
Dividend
Cash carried forward
2,000,000
4,174,675
30,767,850
60,626,961
97,860,481
138,626,928
17
2010
4.6. Project Balance Sheet
BALANCE SHEET
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Cash & Bank
2,000,000
4,174,675
30,767,850
60,626,961
97,860,481
138,626,928
Accounts receivable
9,993,401
11,424,462
13,701,085
15,460,694
17,362,011
Finished goods inventory
17,242,243
19,613,052
22,177,835
24,950,065
27,944,072
Equipment spare part inventory
46,089
71,421
92,961
120,364
155,138
199,161
7,875,000
12,203,297
15,883,700
20,566,043
26,507,665
34,029,564
Pre-paid insurance
324,783
288,189
251,595
215,001
178,407
208,097
Total Current Assets
10,245,872
43,973,226
78,033,619
117,407,288
165,112,449
218,369,833
Land
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
Building/Infrastructure
16,200,000
15,390,000
14,580,000
13,770,000
12,960,000
12,150,000
Machinery & equipment
28,362,500
25,526,250
22,690,000
19,853,750
17,017,500
14,181,250
Furniture & fixtures
320,000
288,000
256,000
224,000
192,000
160,000
Office vehicles
823,150
658,520
493,890
329,260
164,630
1,325,691
Office equipment
81,800
73,620
65,440
57,260
49,080
40,900
Total Fixed Assets
50,787,450
46,936,390
43,085,330
39,234,270
35,383,210
32,857,841
Pre-operation costs
2,562,591
2,050,073
1,537,555
1,025,036
512,518
Legal, licensing, & training costs
100,000
90,000
80,000
70,000
60,000
50,000
Total Intangible Assets
2,662,591
2,140,073
1,617,555
1,095,036
572,518
50,000
TOTAL ASSETS
Liabilities & Shareholders'
Equity
Current liabilities
63,695,913
93,049,689
122,736,504
157,736,595
201,068,177
251,277,675
Accounts payable
6,245,242
8,376,626
9,704,094
11,214,450
12,940,196
Total Current Liabilities
6,245,242
8,376,626
9,704,094
11,214,450
12,940,196
2,836,250
Assets
Current assets
Fixed assets
Intangible assets
-
Other liabilities
Deferred tax
2,836,250
2,836,250
2,836,250
2,836,250
Long term debt
36,168,373
30,555,153
23,913,897
16,056,103
8,690,918
Total Long Term Liabilities
36,168,373
33,391,403
26,750,147
18,892,353
11,527,168
2,836,250
Paid-up capital
27,527,539
27,527,539
27,527,539
27,527,539
27,527,539
27,527,539
Retained earnings
25,885,504
60,082,192
101,612,608
150,799,020
207,973,689
Shareholders' equity
Total Equity
27,527,539
53,413,043
87,609,731
129,140,148 178,326,559 235,501,229
TOTAL CAPITAL AND
63,695,913
93,049,689
122,736,504
157,736,595 201,068,177 251,277,675
LIABILITIES
Note: Total assets value will differ from project cost due to first installment of leases paid at the start of year 0
18
2010
Annex A
Parboiling Unit (32 T/B)
Description
Qty
Unit Price
Total
Amount
Cleaning Section
Paddy Cleaner
400,000
400,000
Rotto Cleaner
100,000
100,000
Thickness grader
125,000
250,000
275
3,500
962,500
Soaking & Steaming Section
5,000,000
5,000,000
Steam Vessel
Post-Steam Vessel
Soaking Tank
Water Tank
Paddy Bin
Others
Water Pump
Elevator
Mesh Conveyor (30' * 1)

Accessories
600,000
Drying Section
Paddy Dryer
1,600,000
1,600,000
cooling Tower
800,000
800,000
Suction Fan
250,000
250,000
Heat Exchanger
350,000
350,000
Fitting/Erection Charges
500,000
500,000
TOTAL
10,812,500
19
2010
Annex B
Name of Financial Institutions
ZTBL
Khushali Bank Ltd
Habib Bank Limited
Rozgar Microfinance Bank ltd
Bank Al-Falah Limited
Tameer Microfinance bank ltd
Askari Bank Limited
Kashf Bank Limited
United Bank Limited
Muslim Commercial Bank
20
2010
Important Contacts
Sindh Board of Investment
Government of Sindh
108 F, PECHS-II
Karachi, Pakistan
Tel: 021 34300971 3
Fax: 021 - 34300974
Email: info@sbi.gos.pk
Website: http://www.sbi.gos.pk
Zarai Taraqiati Bank Limited
Zonal Chief
St.2/3,B-1,Sch-36,
Gulistan-e-Jouar,
Karachi
TEL: 021 34610808
Email :contactus@ztbl.com.pk
PARC
PARC-TARC, Old Block 9 & 10,
Karachi University Campus, Karachi-75270,
Pakistan
Tel: 0092 21 99243844
Fax No: 0092 21 99243838
Sindh Development Fund (SDF)
F-46/A, Street No. 4, Park Lane,
Block 5, Clifton, Karachi
Tel: +92-21-3583 0593 (Land Line)
Tel: +92-21-3429 8575 (V-Phone)
Fax No.: +92-21-3583 0594
Email:info@sindhdf.org.pk
URL: www.sindhdf.org.pk
Rice Export Association of Pakistan (REAP)

Zonal Office
Office No 707, 7th Floor,
Business & Finance Centre,
I. I. Chundrigar Road,
Karachi, Pakistan
Tel: 0092-21-9217321-2
Fax: 0092-21-9217323
Email: reapkhi@cyber.net.pk
Trade Development Authority of Pakistan
(TDAP)
5th Floor, Block "A", Finance & Trade Center, Shahra-eFaisal, Karachi - Pakistan
Tel: (92-21) 9206462
Fax: (92-21) 9206461
SMEDA
5 TH Floor, Bahria Complex II, M.T. Khan Road, Karachi.
Tel: (021) 111-111-456
Fax: (021) 5610572
Email: helpdesk.sindh@smeda.org.pk
Agribusiness Support Fund

Provincial Coordinator
Sindh Office, Karachi
PH.021-4313851 , 021-4313853
Fax:021-4313852
MINISTRY OF FOOD AND AGRICULTURE & LIVESTOCK

B Block, Pak Secretariat, Islamabad , Pakistan
Tel : +92-51-9203307, 9210351
Fax : +92-51-9210616
E Mail : secretary@minfal.gov.pk
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Pre-Feasibility, Parboil Rice

Processing Venture in Sindh

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

MARKET ANALYSIS .......................................................................................................................................5

Export Potential .........................................................................................................................................7

THE PROJECT ................................................................................................................................................ 10

Production of Rice in Sindh .................................................................................................................................. 5

Details of Vehicles .............................................................................................................................................. 12

Building & Infrastructure ....................................................................................................................... 13

THE FINANCIAL ANALYSIS ....................................................................................................................... 14

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

2.1. Suitability of Sindh for Parboiled Rice Processing Facility

2.1.1. Production of Rice in Sindh

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

0.1% 0.7% 1.2% 0.8%

(District wise Sindh Rice Cultivating Area 2006 2007)

0.1% 0.7% 1.2%

(District wise Sindh Rice Production Area M.Tons 2006 2007)

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

2.2. Export Potential

2.3. Potential New Markets

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

2.4. International Scenario

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

3.1. Rice Milling Operation

The Basic Rice Milling Process Consists Of:

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

3.2. Proposed Location

3.3. Human Resource

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

Hiring before Year-0 (No of

Electrician & Technical

3.4. Machinery & Equipments

Parboiling Unit ( 32 T/B)

3.4.1. Details of Vehicles

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

3.5. Building & Infrastructure

Cost / Rate Rs.

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

The Financial Analysis

4.1. Project Economics

Amount (PKR Rs.)

Machinery & equipment

Furniture & Carpeting

Car & Motorcycle

Computers, Printer, fax & other items

Utilities Installations & Pre-operating costs

4.2. Working Capital

Amount (PKR Rs.)

Inventory (Machine parts)

Raw material inventory

Total Working Capital

Internal Rate of Return (IRR)

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

4.3. Financing Option

PRE-FEASIBILITY, PARBOIL RICE PROCESSING VENTURE IN SINDH

4.4. Project Income Statement

Cost of goods sold

General administration & selling expenses

Professional fees (legal, audit, etc.)