Pre-Feasibility Study

ALOE VERA PROCESSING

Small and Medium Enterprise Development Authority
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE 6th Floor LDA Plaza, Egerton Road, Lahore. Tel: (92 042) 111-111-456 Fax: (92 042) 6304926-7 Helpdesk@smeda.org.pk
REGIONAL OFFICE PUNJAB REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 Helpdesk-khi@smeda.org.pk REGIONAL OFFICE NWFP Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 helpdesk-pew@smeda.org.pk REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 helpdesk-qta@smeda.org.pk

8th Floor LDA Plaza, Egerton Road, Lahore. Tel: (042) 111-111-456 Fax: (042) 6304926-7 helpdesk@smeda.org.pk

June, 2006

Pre-feasibility

Aloe Vera Processing

DISCLAIMER........................................................................................................................................ 4 1 2 3 INTRODUCTION TO SMEDA.................................................................................................... 5 PURPOSE OF THE DOCUMENT ............................................................................................... 5 CRITICAL SUCCESS FACTORS IN DECISION MAKING FOR INVESTMENT.................. 6 3.1 SWOT ANALYSIS ................................................................................................................ 6 3.1.1 Strengths ........................................................................................................................... 6 3.1.2 Weaknesses........................................................................................................................ 6 3.1.3 Opportunities..................................................................................................................... 6 3.1.4 Threats .............................................................................................................................. 6 3.2 CRITICAL SUCCESS FACTORS.......................................................................................... 7 3.2.1 Other Success Factors ....................................................................................................... 7 4 PROJECT PROFILE.................................................................................................................... 7 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 5 PROJECT BRIEF................................................................................................................... 7 OPPORTUNITY RATIONALE.............................................................................................. 8 TARGET CUSTOMERS........................................................................................................ 8 MARKET ENTRY TIME....................................................................................................... 8 PROPOSED BUSINESS LEGAL STATUS ............................................................................ 8 PROJECT CAPACITY AND RATIONALE ........................................................................... 8 PROPOSED LOCATION....................................................................................................... 9 PROPOSED PRODUCT OFFERED....................................................................................... 9 PROJECT INVESTMENT ..................................................................................................... 9 RECOMMENDED PROJECT PARAMETERS ...................................................................... 9

ALOE VERA - INTRODUCTION ............................................................................................... 9 5.1 5.2 5.3 CONSTITUENTS OF ALOE VERA:.................................................................................... 10 DESCRIPTION OF ALOE VERA PLANT ........................................................................... 10 BENEFITS OF ALOE VERA ............................................................................................... 12

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PRODUCTION PROCESS......................................................................................................... 13 6.1 SOAK TANK....................................................................................................................... 15 6.2 CONVEYOR ....................................................................................................................... 15 6.3 BRUSH WASHER............................................................................................................... 15 6.4 RINSE TANK ...................................................................................................................... 16 6.5 INSPECTION TABLE ......................................................................................................... 16 6.6 FILET MACHINE................................................................................................................ 16 6.7 WASTE ............................................................................................................................... 17 6.8 GRINDER ........................................................................................................................... 17 6.9 HEAT EXCHANGER .......................................................................................................... 17 6.10 ENZYMES .......................................................................................................................... 18 6.11 AGITATED JACKETED TANKS........................................................................................ 18 6.12 PULPER / FINISHER........................................................................................................... 18 6.13 CHARCOAL AND DE......................................................................................................... 19 6.14 FILTER ............................................................................................................................... 19 6.15 HTST................................................................................................................................... 19 6.16 PASTEURIZATION ............................................................................................................ 20 6.16.1 Low Temperature Long Time (LTLT) ........................................................................... 20 6.16.2 High Temperature Short Time (HTST) ......................................................................... 20 6.16.3 Ultra High Temperature (UHT)................................................................................... 20 6.17 EVAPORATOR................................................................................................................... 21 6.18 SPRAY DRYER .................................................................................................................. 21 6.19 BOILER............................................................................................................................... 22 6.20 COOLING TOWER ............................................................................................................. 22

PREF-103/June, 2006/ Rev 1

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Pre-feasibility

Aloe Vera Processing

6.21 6.22 6.23 7

PROCESS CHILLERS ......................................................................................................... 23 POSITIVE PUMP ................................................................................................................ 23 DIAPHRAGM PUMP .......................................................................................................... 23

PROJECT PRE-REQUISITES................................................................................................... 24 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 LAND REQUIREMENT...................................................................................................... 24 BUILDING REQUIREMENT .............................................................................................. 24 MACHINERY & EQUIPMENT ........................................................................................... 24 FITTINGS & INSTALLATIONS REQUIREMENT ............................................................. 25 OFFICE EQUIPMENTS REQUIREMENT........................................................................... 25 FURNITURE & FIXTURES REQUIREMENT..................................................................... 26 VEHICLES REQUIREMENT .............................................................................................. 26 HUMAN RESOURCE REQUIREMENTS ........................................................................... 26 UTILITIES REQUIREMENT .............................................................................................. 27

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PROJECTED FINANCIAL STATEMENTS ............................................................................. 28 8.1 8.2 8.3 PROJECTED INCOME STATEMENT ................................................................................ 28 PROJECTED BALANCE SHEET ........................................................................................ 29 PROJECTED CASH FLOW STATEMENT.......................................................................... 30

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KEY ASSUMPTIONS................................................................................................................. 31 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 PROJECT ASSUMPTIONS ................................................................................................. 31 OPERATING ASSUMPTIONS............................................................................................ 31 REVENUE ASSUMPTIONS OF ALOE VERA POWDER PRODUCED - SALE PRICE ...... 31 COST OF ALOE VERA PLANTATION .............................................................................. 32 DEPRECIATION RATE ASSUMPTIONS ........................................................................... 32 LONG TERM SECURITY DEPOSITS................................................................................. 32 WORKING CAPITAL TURNOVER ASSUMPTIONS......................................................... 32 ACCOUNTS PAYABLE...................................................................................................... 33 ADVANCES & PRE PAYMENTS ....................................................................................... 33 LONG TERM LOAN ........................................................................................................... 33 VEHICLE RUNNING EXPENSES ...................................................................................... 33 MISCELLANEOUS ASSUPTIONS ..................................................................................... 33 INSURANCE ASSUPTIONS............................................................................................... 34

PREF-103/June, 2006/ Rev 1

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Although.pk DOCUMENT CONTROL Document No. the contained information may vary due to any change in any of the concerned factors.Pre-feasibility Aloe Vera Processing DISCLAIMER The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. please contact our website: www. Prepared by Issue Date Issued by PREF-103 SMEDA Punjab June 2006 SMEDA Punjab PREF-103/June. SMEDA does not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity.smeda.org. due care and diligence has been taken to compile this document. 2006/ Rev 1 4 . and the actual results may differ substantially from the presented information. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information he/she feels necessary for making an informed decision. For more information on services offered by SMEDA.

Fruits and Vegetables. Our report is based on the information obtained by us from industry sources as well as our discussions with businessmen. Gems and Jewelry. Surgical Instruments. In meeting the above tasks we have obtained information from industry sources and officials of major Aloe Vera processors in Pakistan. Since its inception in October 1998. These documents consist of information required to make well-researched investment decisions. Marketing. Marine Fisheries. This document is in the continuation of this effort to enable potential investors to make well-informed Investment Decisions. In depth research was conducted and comprehensive development plans were formulated after identification of impediments and retardants. These services include identification of viable business opportunities for potential SME Investors. SMEDA provides business guidance through its help desk services as well as development of Project Specific Documents. Transport and Dairy. brief on government policies and international scenario. In order to facilitate these Investors. Textiles. Along with the sectoral focus a broad spectrum of Business Development Services is also offered to the SMEs by SMEDA. For financial model. Pre-feasibility Studies and Business Plan Development are some of the services provided to enhance the capacity of individual SMEs to exploit viable business opportunities in a better way. The all-encompassing sectoral development strategy involved recommending changes in the regulatory environment by taking into consideration other important aspects including Finance. Whereas the task of SME development at a broader scale still requires more coverage and enhanced reach in terms of SMEDA’s areas of operation. Leather and Footwear. SMEDA had adopted a sectoral SME Development Approach. This document also provides sectoral Information. since the forecast/projections PREF-103/June. operations. Technology and Human Resource Development. Marble and Granite. SMEDA has so far successfully formulated strategies for sectors including. 2 PURPOSE OF THE DOCUMENT The objective of this proposed Pre-feasibility is primarily to facilitate potential entrepreneurs with the Investment information and provide an overview about the "Aloe Vera Processing Unit". and finance and business management. start-up. 2006/ Rev 1 5 . which have some bearing on the project itself. marketing.Pre-feasibility Aloe Vera Processing 1 INTRODUCTION TO SMEDA The Small and Medium Enterprise Development Authority (SMEDA) was established with the objective to provide fresh impetus to the economy through the launch of an aggressive SME Support Program. This particular Pre-feasibility is regarding setting up "Aloe Vera Processing Unit". A few priority sectors were selected on the criterion of SME presence. the document covers various aspects of Aloe Vera Processing Unit concept development. The proposed Pre-feasibility may form the basis of an important investment decision and in order to serve this objective.

actual results are likely to differ because of the events and circumstances that don’t occur frequently as expected. there is less involvement of man power. 3. no liability can be inferred for any in-accuracy or omissions reported from the results thereof. enzymes. natural sugars and agents which may be anti-inflammatory and anti-microbial. Owned supply chain. Since the processing facility is totally automated.1. 3. 3. iiiiiiivAvailability of Cheaper Labor & Raw Material in the form of Aloe Plant.Pre-feasibility Aloe Vera Processing relate to the future periods. It is essential that our report be read in its entirety with financial model in order to fully comprehend the impact of key assumptions on the range of values determined.2 Weaknesses i. Non-availability of the Plant technical staff in the local market as there is no such totally automated processing unit already established in Pakistan The competition in the Domestic Market is very limited as most of the Aloe Vera powder is imported.1. In order to penetrate in and capture the market heavy promotional charges are expected to be incurred. A SWOT analysis can help in analyzing these factors.1. Growing market of Pharmaceutical and Cosmetics industry which is creating the high consumption opportunities of Aloe Vera. The project shall have its own raw material (Aloe Vera Plants) cultivation and harvesting facility.3 Opportunities iii- 3. The combination and balance of the plant's ingredients are what purportedly gives it its healing properties. which can play important role in making the decision. 1 CRITICAL SUCCESS FACTORS IN DECISION MAKING FOR INVESTMENT SWOT ANALYSIS Before making a decision. whether to invest in setting up a Aloe Vera Processing unit or not. 2006/ Rev 1 6 . The cultivation may be exposed to natural disaster.4 Threats iii- PREF-103/June. one should carefully analyze the associated risk factors. amino acids. 3 3.1 Strengths Aloe Vera contains numerous vitamins and minerals. Some of the strengths of this project are. Whilst due care and attention has been taken in performing the exercise.1.

Pre-feasibility Aloe Vera Processing 3. and fungus. the plants will die. This process also provides immunity to the leaf (again. High quality of Raw Material. When the Aloe Vera leaf is starved of water. The reason for this is centered on the delicate nature of the star of this botanical. Reliability in Delivery. If Aloe Vera is planted in rows at 31 inch centers. around 5.000 kg of aloe leaves per acre. 4 4. As soon as harvesting commences. Without this protective system. as well as completing processing as quickly as possible. This response enables the plant to repair its wound and to provide a new skin (similar to what polymannose does in the human body). Therefore. At an average weight of 1 kg one can expect an annual return of 60. Aloe Vera cannot tolerate a hard freeze. bacteria. PREF-103/June. mannose. therefore it cannot be grown in areas that have temperatures that fall below freezing. The information and technical know how about the quality of Aloe Vera plant plays a vital role in the desired yieldage of the final product. 1 PROJECT PROFILE PROJECT BRIEF The proposed project is for setting up ALOE VERA PROCESSING UNIT. the nature of the plant is to break down its own healing substances (polymannose) due to the enzyme cellulose found in the tissues of the plant. it is imperative to keep the leaves cool. The Project will cater to the needs of domestic market. This makes a total of 12 leaves per plant per year. 150 ml of water a month is required in order to produce a quality leaf weighing around 1 Kg. 2 CRITICAL SUCCESS FACTORS There are many obstacles in the road to producing a Aloe Vera product. Aloe Vera Barbadensis Miller is the most common type grown.000 aloe plants per acre can be planted.2. and a very strong odor. 2006/ Rev 1 7 . with 36 inches between the rows. Aloe Vera Plant is the main raw material and the entire finished product highly depends upon the quality of the Aloe Vera plant. and if freezing does occur.1 Other Success Factors iiiiiiivAdvance Orders for sale can ensure the success of the Business. Manufacturing of Aloe Vera concentrate/powder requires the basic knowledge of Aloe Vera Plant quality. Filleting depends on whether it is done manually or through an automated extraction machine. in order to minimize this self-induced degradation. Three leaves per plant can be obtained. similar to the role polymannose plays within the body’s biology) and will ensure the plants survival. Aloe Vera will freeze at 28 degrees Fahrenheit. parasites. Harvest aloe plants can be harvested 4 times per year. 3. Low Prices. whatever the case may be one should yield at least 43 to 45 percent from a 1 kg aloe leaf. It can be distinguished by its yellow flower. a brownish color. the leaf and plant would become susceptible to viruses. there is an increase production of aloin and emmodin which causes the gel to have a very bitter taste.

lotions and drinks. administration and running the sole proprietorship or partnership business. 4. 4. 6 PROJECT CAPACITY AND RATIONALE Selection of the project size is really critical. Africa and America. The plants are monitored and sampled at regular intervals throughout the year and checked for any signs of stress. Specially designed irrigation systems and the latest cultivation techniques are employed to ensure that the Aloe Vera juice plants are kept in peak condition. The leaves are immediately packed and transported to an on-site processing plant to be prepared for stabilization 4. 3 TARGET CUSTOMERS The proposed project shall cater to the needs of the domestic market of Pakistan. it is decided that the proposed feasibility will be based on the processing capacity of 55. Aloe Vera Processing is a viable profitable business if done properly on Commercial basis. Lower tax rates for this type of business legal status would be an added advantage. 2006/ Rev 1 8 . a sizeable production is required. nearest to the stalk. Moreover less legal requirements and costs are involved in forming. In addition some niches of the market are also served by imports mainly from Australia. After doing thorough market research. The selection totally depends upon the choice of the entrepreneur. 4. PREF-103/June. 5 PROPOSED BUSINESS LEGAL STATUS The said project can be a sole proprietorship or a partnership and even it can be registered under the Companies Ordinance.000/aloe leaves per day with the production of aloe Vera powder of 550 kgs per day.Pre-feasibility Aloe Vera Processing Aloe leaves are harvested one leaf at a time and are generally chosen from the outermost edge of the plant. 4 MARKET ENTRY TIME Various products and services have high dependence on their commercialization. 2 OPPORTUNITY RATIONALE The Aloe Vera powder available in the local market is mainly processed in the province of Sindh which is not sufficient to meet the requirements of the domestic market. 1984 with the Securities & Exchange Commission of Pakistan. There is a huge business opportunity in this area. The demand for Aloe Vera powder is increasing in the domestic market as well as in the international market due to the vast benefits that can be driven out from the product. As it is evident from rise in the pharmaceutical and cosmetic industry that there is a huge demand of aloe products in the domestic market. 4. The commercial Aloe Vera plant is grown on professionally managed farms. timing and delivery to the customers but the Aloe Vera Processing unit can be started at any time during the year due to the availability of raw material throughout the year. These programs guarantee that only the finest and purest plants are harvested and used to produce the Aloe Vera concentrate/powder that will become the core of many highquality creams. then removed by creating an incision at the bottom of the leaf. This prefeasibility assumes the legal status of a sole proprietorship/partnership as this does not involve heavy investment. The target market for this proposed project would be Pharmaceutical and Cosmetic Industry.

Karachi. It is however recommended to establish the Project at Lahore – Raiwind Road. 4. fungicidal.305. Additionally. bruises. 9 PROJECT INVESTMENT Total Project cost is Rs. It is even described in the bible for its healing properties. 45. burns.486 RECOMMENDED PROJECT PARAMETERS Human Resource 50 Location Raiwind Road. instrumental in increasing circulation to area. anti-inflammatory.500 1.388 Payback period 4.000 Aloe Leaves per annum Project Cost 45. powerful in penetrating tissue. Hundreds of Scientific Research Papers describe the activities of Aloe Vera taken internally or applied externally to the skin or hair. welts. acts as a strong antibiotic.195. Lahore Capacity 3. bactericidal.) 26.486 Financial Summary IRR NPV (Rs. 4. numerous PREF-103/June. and moisturizes tissues. These Research Papers include. Islamabad.66 years The pre-feasibility is based on the assumption of 50% debt and 50% equity. and sunburns.195. virucidale when in direct contact for long periods. 10 RUPEES 43.Pre-feasibility Aloe Vera Processing 4. Sialkot or Faisalabad etc.889. However this composition can be changed as per the requirements of the Investor. relieving pain associated with the joints and muscles.INTRODUCTION Aloe is one of the oldest healing plants known to mankind. eczema. 5 ALOE VERA .559. acne and blemishes.486 worked out in the following table:-.195. 7 PROPOSED LOCATION The said project can be started in any industrial area of cities like Lahore. but are not limited to the following nutritional uses: A natural cleaner. colitis and colon problems.986 45. Aloe also has a history of traditional use by Native Americans for stomach disorders and intestinal disorders including constipation.600. Table 1 Total project cost COST Capital Investment Working Capital Requirement Total Investment 4.45% 14. hemorrhoids. poison ivy. breaks down and digests dead tissue. 2006/ Rev 1 9 . 8 PROPOSED PRODUCT OFFERED This unit is capable of selling high quality Aloe Vera powder from own cultivated Aloe Vera plant. Aloe has been used topically for cuts. insect stings. skin lesions.

vi. It has been used by many for constipation. Calcium. 2006/ Rev 1 10 . Historically. and inflammatory conditions of the small and large intestine and for digestive disturbances. wounds and burns.Twenty-two amino acids are found within aloe. for both internal ingestion as well as for topical purposes. Copper. 2 Aloe Vera is a perennial plant with turgid green leaves joined at the stem in a rosette pattern just as we appreciate on Picture 1. iv. 5. Magnesium. as we appreciate on Picture 2. A. aloe has a wide array of applications. Topically. it's no wonder that Aloe Vera is so effective in the nutritional assistance and supplementation of the human metabolism.Including B1-3 and B1-4 Glucomannans known for their immune stimulating effects Based on its constituent make up. Plant sterols . Enzymes .View of the Aloe Barbadensis miller Leaf PREF-103/June. With the impressive elements found in Aloe that work in synergy with one another.Pre-feasibility Aloe Vera Processing constituents within Aloe Vera have demonstrated enhancement of immune system functioning within the body. E. B-carotene.Vit C. aloe has demonstrated benefits in assisting in the healing of minor cuts. intestinal colic. Manganese. Picture 1 . DESCRIPTION OF ALOE VERA PLANT 5. More recent research and clinical use has shown even wider applications for this amazing plant including enhancing immunity. and Phosphorous. The leaves of a mature plant may be more than 20 to 30 inches long with saw-like spikes along their margins. the aloe plant has enjoyed wide use for its enhancement of normal gastrointestinal functioning.View of the Aloe Barbadensis Picture 2 . ii.These plant based compounds are potent anti-inflammatory agents. Polysaccharides . Amino Acids . iii. The plant is a rich source of many natural health-promoting substances including: i. Zinc. balancing blood sugar and providing pain relief. B vitamins. Gibberellins . Vitamins/Minerals .At least five different enzymes have been identified and likely more are contained within.A growth factor which assists in healing. This plant has been traditionally used through the centuries. v. 1 CONSTITUENTS OF ALOE VERA: There are over 100 active biologic constituents found within aloe.

This inner gel.View of the yellow sap dripping after a transversal cut of the Aloe leaf. Picture 4 . a yellow liquid. which is the sap.Pre-feasibility Aloe Vera Processing When the leaves are removed from the basal portion of the mother plant. is referred to as Aloe Vera gel. and its white color.View of the the Aloe fillet after being completely removed from the inner Aloe leaf. Picture 6 . PREF-103/June. after the removal of the inner Aloe fillet. is the mucilagenous jelly from the inner paenchymal cells of the plant and after processing it.View of the yellow sap after draining completely from the Aloe Vera leaf. starts draining immediately from the basal portion of the Aloe leaf. This yellow sap liquid as shown on Pictures Four. as soon as a transversal cut is made as we appreciate on Picture 3.View of the inner Aloe fillet as it is removed from the inner portion of the Aloe leaf. as well as other similar quinines and anthraquinones. In Picture Eight we can notice the viscosity of the inner Aloe fillet. This liquid is contained within the inner vascular bundles of the Aloe leaves and start dripping out of the Aloe leaf. Most of the Aloe vera gel available in the market are named Fillet Aloe vera gel. 2006/ Rev 1 11 . has laxative properties and is mainly composed by a glucosidal anthraquinone known as Aloin. on Pictures 7 and 8 we notice that a thick viscous mucilage is still attached firmly to the Aloe vera outer skin. since it is made by processing the inner Aloe vera gel only. are made up of polysaccharides of carbohydrate origin along with a vast variety of other biochemical substances having biological activity. where more than 60 % weight of the total weight of solids contained in this Aloe gel. Picture 3 . Picture 5 . The inner Aloe fillet gel is composed generally by 98. However.5 % water.

natural sugars and agents which may be anti-inflammatory and anti-microbial. 2006/ Rev 1 12 . The combination and balance of the plant's ingredients are what purportedly gives it its healing properties. The main feature of the new Bifurcated Aloe vera gel. irritations. amino acids. In other commercial Aloe vera fillet gel preparations this portion is not included. after the removal of the internal Aloe fillet.stance which has been confirmed scientifically to have many important biological properties which plays major role in the healing process. we observe the Aloe vera outer rind after the total removal of the inner Aloe vera gel. is that this viscous mucilage is also processed and included into the final product. PREF-103/June. cuts and insect bites. the Aloe vera outer rind and the inner gel already separated from the Aloe vera leaf.View of the Aloe Vera outer rind after total removal of the Aloe Vera gel. May help sooth skin injured by burns.View of the viscous mucilage that is still attached to the inner portion of the Aloe leaf. and on Picture Twelve we observe both. In Bifurcated Aloe vera gel we take advantage of all the substances present in both parts of the plant as different from than other similar Aloe vera preparations. However this viscous mucilage and the outer Aloe vera rind contain a large number of biological active substances.Pre-feasibility Aloe Vera Processing Picture 7 . enzymes. 3 BENEFITS OF ALOE VERA Aloe vera contains numerous vitamins and minerals. since the final Aloe rind is generally discarded. This viscous layer contains a long molecular weight polysaccharides sub. after the removal of the internal Aloe fillet. 5.View of the viscous mucilage that is still attached to the inner portion of the Aloe leaf. On Picture 9. Picture 8 . Some of the strengths of this project are. Picture 9 . i.

6 a. There are several types and versions of aloe filleting machines. Aloe Vera gel processing in which only the inner gel fillet is used to manufacture aloe Vera gels. A 200:1 pure aloe powder made from the inner gel. iv. There are various ways to do this. May help moisturize and soften the skin. whole leaf concentrates.Pre-feasibility Aloe Vera Processing ii. vii. viii. iii. A 100:1 pure whole leaf aloe powder from the leaf. reverse osmosis. May speed and improve general healing when taken internally. aloe Vera concentrates. filleting the leaf or by grinding up the entire leaf. May help speed the healing of skin wounds. Basically there are two types of equipment used to make powders: a. diarrhea and other intestinal problems. PRODUCTION PROCESS Whole Leaf processing in which the entire aloe leaf is used to manufacture whole leaf gels. Freeze drying Spray drying PREF-103/June. v.5% solids. May help (when taken internally) with constipation. Aloe rinds should be placed back in the fields for fertilizer. 2006/ Rev 1 13 . and aloe Vera powders. b. May improve the effectiveness of sun screen products. May relieve itching and swelling of irritated skin. b. the tips and the ends of the leaf are removed then the spiny sides are removed. and vacuum distillation process is a few examples. May help kill fungus and bacteria. burns and other injuries. The aloe rind can be removed by squeezing the leaf. It is common to concentrate up to 20% solids making a 40:1 concentrate. and whole leaf powders. The kinds of aloe Vera powders produced are: a. There are two basic processes used in the manufacturing of aloe Vera products: In order to get a good quality aloe gel. Aloe Vera gel will have approximately 0. vi. b. thin film evaporators. Aloe concentrates are produced removing the water content.

2006/ Rev 1 14 .Pre-feasibility Aloe Vera Processing PREF-103/June.

Some companies also use a fluid conveying system. The downside is the higher labor cost. in which the leaves are placed in a canal with water that is being pumped so that the flow moves the leaves along. Most companies use a large pool filled with potable water. The advantage of using this system is that dirt and other foreign material is removed in a more efficient way. The purpose for this initial tank is to soften and partially release foreign particles and dirt from the surface of the leaves. 3 BRUSH WASHER Just before the leaves receive the final wash and rinse. 6. Manual brushing: Here leaves are hand picked and brushed as they are pulled out of the soaking tank. The purpose for this step is to remove dirt and PREF-103/June. 2006/ Rev 1 15 . The advantage of this type of treatment is that it is very gentle on the leaves. This can consist of a conveyor belt. c. they could then be manually removed out of the vat or mechanically by means of a conveyor. then they are placed into a conveyor. The brushers have plastic brushes that pick the leaves up from the conveyor and press them against two or more brushes giving a cleaning action on every side of the leaves. 6. b. they are mechanically brushed. 2 CONVEYOR After leaves are soaked and pre-cleaned they are moved by a conveying system. stainless steel mesh or polypropylene conveying system. and removal of dirt and foreign material is optimal. 1 SOAK TANK This is the first station for the Aloe as it arrives to the Processing Plant. There are several options on how to operate this first station: a. This could also be untreated well water. Forced agitation: This is a variation in which the tank has high pressure water jets that create a whirlpool in the soaking tank. Just immersion: Here the Aloe leaves are just dumped into the water with no further action. this can work as an inspection/rejection point. Also.Pre-feasibility Aloe Vera Processing 6.

The advantage of using a machine is the lower cost of operation in terms of labor. 6. 5 INSPECTION TABLE Leaves must have an acceptance specification. Depending on the capacity of the plant one or several simultaneous lines of brushes can be installed. The tank can be made of stainless steel. Usually the material of choice for these brushes is soft plastic. 6. tails. This process can also be a two-stage final rinse. but a disadvantage is that the PREF-103/June. the aloe leaves goes to the filet machine. which vigorously removes unwanted material from the surface of leaves while being gentle enough to prevent injury to the leaf. Leaves that do not meet specs are rejected here. so again the layout is such that would accommodate enough people to perform these duties. cuts. 6 FILET MACHINE After leaving the inspection table. 4 RINSE TANK This is where the final wash of the leaves occurring. first in a sanitizing solution and secondly a final rinse with water to remove the sanitizing agent. The function of this wash is to do the final cleaning to the leaf before entering the manufacturing facility.Pre-feasibility Aloe Vera Processing other foreign material from the surface of the leaves. Typically 6 to 8 people can process 1000 Kg of leaves through this step. and spines are usually cut off the leaves by hand at this stage. At this point. 6. the leaves get inspected one by one as they enter the process. Layout for this station is usually a conveyor that feeds leaves coming from the rinse tank into the table. fiber glass or concrete. 2006/ Rev 1 16 . It is important at this step to reject any leaves with evident injuries. An alternative to the use of this machine is to hand-fillet the leaf. It has a conveyor to carry waste out and either a series of tables or conveyors to carry the leaves to the next processing step. Tips. Options for this step include the use of sanitizing agents such as Chlorine. The name comes from the resemblance of the inner gel to a fish fillet. The filet machine is a device used to separate the rind from the inner gel of the leaf. Quaternary ammonium salts and others. or lesions in order to avoid contamination of the product downstream.

There are specific grinder designs for the mincing of whole leafs of aloe. the grinder is where they are both headed. Connections are PREF-103/June. The bundle is contained in a cylindrical shell. 2006/ Rev 1 17 . Typically the tips and tails are removed before this step. This type of grinder is the preferred type when processing whole leaf aloe.Pre-feasibility Aloe Vera Processing yield may go down as compared to hand filleting. 6. This machine grinds by impact. 6. with nonswiveling hammers. then sieves thru a screen with a whole size about 5mm in diameter. The most used type of grinder used in the aloe industry is a hammer mill. This is organic waste. 7 WASTE All the insoluble rind and fibers goes to waste once the process has finished. or the filets are coming out of the filet machine (aloe filet process). The intention of this process is to extract the liquid contained in the aloe leaf. 8 GRINDER Whether the aloe leaves are coming off of the conveyor (whole leaf process). however and can be composted and recycled in the farm. The particle size is controlled by the size of a mesh placed at the bottom of the grinder 6. 9 HEAT EXCHANGER Shell and tube heat exchangers consist of a bundle of parallel sanitary tubes with the ends expanded in tube sheets.

which is commercially available from a variety of sources. the heating element is created by pressing a dimpled profile into a flat sheet of stainless steel. Product is heated or cooled while being mixed blended or agitated. depending upon the application. This machine serves its purpose as a coarse filter very efficiently and quickly PREF-103/June. 11 AGITATED JACKETED TANKS A jacketed tank is a tank with an outer jacket designed to contain heating or cooling media. 6. The coils can remain exposed. 10 ENZYMES Recently extracted Aloe is a very viscous liquid so very commonly subject to an enzymatic treatment aimed at reducing the viscosity. This device usually has a rotating part that is either an endless screw or paddles that push the mixture against a screen. 2006/ Rev 1 18 . The enzyme. 12 PULPER / FINISHER The Pulper/Finisher is used to remove the insoluble fiber resulting from crushing either the whole leaf or the inner gel fillet. Typical ratio of use is 20 grams of enzyme for 100 grams of aloe solids in the gel. but they can transfer lots of heat due to the surface area. The screen can have several different pore sizes. usually in liquid form is added to the vat. 6. or they can be covered with an insulation material and then covered with a sheet of stainless steel. Jacketed tanks are not thermally efficient and they cannot be used in a continuous operation 6. First. mixed and let to react. The major limitation is that they cannot be used to regenerate. typically ranging from 800 to 500 microns. referred to as an embossing. is then spot welded to the non contact side of a stainless steel tank to create a flow passage for the heating or cooling media. Enzymatic reaction usually takes two to four hours at room temperature.Pre-feasibility Aloe Vera Processing such that the tubes can contain either the product or the media. A dimple jacketed tank utilizes a simple heat transfer element. This dimpled sheet. The end result is a fully welded heat transfer element that is extremely thin (approximately?" overall thickness). Most commonly used enzyme is Cellulase. The liquid goes thru the screen and the insoluble fiber is pushed to the end of the machine.

The purpose of this step is either to remove the charcoal added in the previous step or to remove unwanted insoluble fiber. Filtering aids can be used here to facilitate filtration. This can be accomplished by adding activated charcoal to a tank and then removing the charcoal by filtration or by pumping the liquid thru a column that contains the activated charcoal.Pre-feasibility Aloe Vera Processing 6. The most common of them is Aloin. the amount of antraquinones is very high. 14 FILTER This step in the process may consist of a single filter or a series of them. Even though inner fillet gel is being produced. being completely absent in the inner fillet gel. Most typical types of filters used here are filter presses. The amount of these compounds needs to be controlled and one very effective way by using activated charcoal. The origin of these compounds is the rind of the leaf. particularly anthraquinones. 15 HTST PREF-103/June. however other types of filters have been used as well. 13 CHARCOAL AND DE Aloe Vera contains a series of chemical compounds from the family of phenols. 6. These compounds have a potent laxative effect when ingested. 2006/ Rev 1 19 . contamination with anthaquinones coming from the rind is virtually impossible. 6. and in the case of whole leaf aloe. so the allowed amounts in finished products are small.

16. 6. If necessary or if the desired final temperature of the product is lower than room temperature. Reduction of microbial population can be achieved using a thermal treatment such as pasteurization. 230F (110C) but heat PREF-103/June.16.2 High Temperature Short Time (HTST) This configuration is a continuous process in which the product is heated very quickly (30-60 seconds) in a heat exchanger to temperatures of 170F (77C) and the temperature is held for a brief period of time. This way it self cools and transfers that energy to the incoming product. so at a later stage of the process the population needs to be reduced to assure stability of the final product. 1 to 2 minutes. 2006/ Rev 1 20 .1 Low Temperature Long Time (LTLT) The acronym stands for Low Temperature Long Time. and additional section of the heat exchanger is added and water from either a cooling tower or a process chiller is used to further cool the product.16. 6. but the fluid here is heated to an even higher temperature. Then the product is chilled back to room temperature or a little above. In this configuration the whole batch is placed in a tank where is heated typically to 140 F (60C) for 30 minutes. These once the leaf has been crushed start to reproduce rapidly. HTST systems use a heat recovery system called regeneration in which the hot product is used to exchange heat with the incoming product. Typical reduction of population is 4 orders of magnitude. There are mainly three types of pasteurization done today: 6. Typically Aloe contains a natural flora of microorganisms. 16 PASTEURIZATION This is a thermal treatment aimed at reducing the bioburden of the product.Pre-feasibility Aloe Vera Processing 6.3 Ultra High Temperature (UHT) This configuration is also a continuous process that works in a very similar fashion as the HTST.

Final evaporation must also be performed at low temperature to preserve the natural components of Aloe. 6. This is especially important once the aloe solids become more concentrated since they are more suitable to chemically react between each other. There are numerous designs of evaporators that work under high vacuum to facilitate water evaporation at low temperature. 17 EVAPORATOR In order to increase stability and also to improve efficiency in storage and transportation. 6. However since Aloe is sensitive to heat. Final products that are currently marketed in the liquid form range from 5 times concentrated (5X) to 40X. 18 SPRAY DRYER The Aloe concentrate most marketed today is the powder form. therefore several evaporation chambers are placed in series and the hot evaporated gases from the first go to heat the second and so forth. 2 to 5 seconds. It is also important here to maximize heat transfer efficiency to lower the operational cost of the unit. it is desirable to concentrate Aloe.Pre-feasibility Aloe Vera Processing transfer is done very fast. This is called a multiple effect evaporator. The more the effects. This product is known as 200X powder from aloe inner gel fillets or 100X powder from whole leaf aloe. 2006/ Rev 1 21 . and the peak temperature is only held for a fraction of a second. the more efficient the operation. PREF-103/June. Typical operating temperature is about 140F (60C). the concentration must be carried out at the lowest possible temperature.

000 rpm typically. 6. Rotation of the disk must be very fast. converting it into a fine mist. The droplets form in a conical shaped chamber when the concentrate encounters flow of warm dry air. Two types of devices are currently used to make the fine mist of droplets. The other consists of a rotating disk on which a stream of liquid is dropped. and by the pressure at which the steam is delivered. 19 BOILER The boiler provides steam as a source of energy for process heating. Boilers are usually sized by their steam producing capacity. The centrifugal force of the spinning disk then jets out the liquid. 10. The higher the pressure. They then fall to the bottom of the chamber in a powder form and collected.Pre-feasibility Aloe Vera Processing Spray dryers work by converting the Aloe concentrate into a very fine mist of droplets. 2006/ Rev 1 22 . as well as a source of heat to produce hot water for formulation and for cleaning. It is used for the pasteurization and evaporation operations. 6. One is a very high pressure valve in which the liquid is force by pressure (2000psi) to go through a very small orifice which causes the liquid to spray out in a very fine mist. the higher energy delivered per pound of steam. This then causes the drops to become so small that it increases the surface to volume ratio of the drop facilitating evaporation. The droplets are suspended inside the chamber until they become denser due to the evaporation. Most disks use an air driven turbine to do this. 20 COOLING TOWER PREF-103/June.

Pre-feasibility Aloe Vera Processing 6. Usually they are compressed air actuated. PREF-103/June. They are very useful in hazardous environments. 6. 23 DIAPHRAGM PUMP Diaphragm pumps are used to move fluids with high solids content. 22 POSITIVE PUMP Positive displacement pumps are used to transport fluids from one place to another in the processing facility. 2006/ Rev 1 23 . since the pressures at which they operate are higher. These pumps are required for filtering. 21 PROCESS CHILLERS 6.

500. 2006/ Rev 1 24 .000 800 400. 2 BUILDING REQUIREMENT Land Area 3 60 Rent per Kanal 1.000 5.000 15.000 7. Cost Ft. It is however recommended to purchase the Land as the availability of the raw material mainly depends upon this factor Description Land required for Factory Building (in Kanals) Land required for Agricultural Activity (in Acers) Total 7.000 700 175.up of the required area and construction cost is produced below Building & Civil works Space Required in Sq.open Plot Area Water Tank Kitchen Toilets Total Infrastructure Cost 7.000 Following Table shows the detailed building requirements for the Project.000 500 250.450 300 100 500 13.000 200 300.000 Rupees 4. Rupees Rupees 700 4.000 250 500 500 500 900 1.500 Construction Total Cost Per Sq. ft 7.Pre-feasibility Aloe Vera Processing 7 7.000 600 540.000 650 325. 3 MACHINERY & EQUIPMENT List of Plant and Machinery required is given in table below PREF-103/June.000 700 350. 1 PROJECT PRE-REQUISITES LAND REQUIREMENT Land for the proposed business can be acquired on lease or it can be purchased based on the judgment of the entrepreneur. The break .000 600 60.900.000 900.500.500 600 180.842.500 1.500 Plant Area Laboratory Generator space Management Offices Accessories store Store Room Loading/unloading Bay Garage .400.000 250 362.

000 350.000 1.000 25. of Items 3 1 3 Cost per Unit Rupees 25.000 4.000.000 500. 4 No.500 Total Cost Rupees 90.000 24.000 500 10. of Items Cost per Unit Rupees 30.050.000 5.000 10.500 Computers Printers Fax Machine Telephone Sets Telephone exchange Fire Fighting Equipments 3 2 1 10 1 3 PREF-103/June. 5 Items OFFICE EQUIPMENTS REQUIREMENT Following office equipments are required for factory and management offices No.000 10.825.Pre-feasibility Aloe Vera Processing Items Soak Tank Conveyor Brush Washer Rinse Tank Inspection Table Grinder Heat Exchanger Agitated Jacket Tank Pulper/Finisher Filter HTST Evaporator Spray Dryer 7.000 Following fittings & installations are required for factory and management offices Split Units Generator Tube well Electric Installations & Fittings .000 200.cables & wires TOTAL 7.000 10. of Items 1 2 1 1 1 1 1 6 1 1 1 1 1 Cost (US$) Cost (PKR) 400. 2006/ Rev 1 25 .000 200.000 Total Cost Rupees 75.000 50.000 13.000 1.000 FITTINGS & INSTALLATIONS REQUIREMENT Items No.000 500.

8 VEHICLES REQUIREMENT Quantity 2 2 1 2 2 2 Unit Cost (Rs. almarahs etc.000 Annual Salary Rupees 420.000 2.300.000 12.000 450.500 The schedule of Vehicles required for the proposed project is presented below Total Cost (Rs.604. Social Security. chairs. 7 Items Cars Suzuki Pickup Motor Cycles Tractor (messey .000 4.500 Following furniture & fixtures are required for factory and management offices Total Cost Rupees 200.342.) 1.000 900.000 300.Pre-feasibility Aloe Vera Processing TOTAL 7.000 25.000 730.000 120.000 55.000 26.000 365.000 55.000 175.000 7.000 960.000 5. 6 FURNITURE & FIXTURES REQUIREMENT Items Cost Rupees 200.000 3.000 178.000 Office Furniture .000 420. 7.040 Following table shows the requirements of Human Recourses required PRODUCTION DEPARTMENT SALARIES & WAGES Production Manager 1 Engineer 1 Technical supervisor 2 Quality In charge 1 Lab Assistant 2 Plant Operators 5 Unskilled Factory Labor 20 Total Production Salaries Other benefits1 (10%) 1 Other benefits include EOBI.000 10. Medical and Other welfare expenses PREF-103/June.including tables. Gratuity. 2006/ Rev 1 26 .000 HUMAN RESOURCE REQUIREMENTS Description Number of Employees Per Month Salary 35.000 240. cabinets.000 350.000 3.360) Trolley Cycles Total Cost 7.000 7.000 144.) 650.

other benefits ADMINISTRATIVE DEPARTMENT SALARIES Admin Manager 1 Finance Manager 1 Account Officer 1 Store Supervisor 1 Store Assistant 1 Office Boy 2 Driver 4 Security Guard. 2. other benefits 7.000 6. other benefits SELLING AND MARKETING Sales Manager 1 Sales Officer 4 Total Selling & Marketing Other benefits (10%) Total Marketing & Selling Salaries incl.000 8. 2006/ Rev 1 27 .000 96.Pre-feasibility Aloe Vera Processing Total Production Salaries & Wages incl.000 4.000 8.000 744.500 3. Gate Keepers 1 Sweeper 1 Total Administrative Salaries Other benefits (10%) Total Administrative Salaries incl.000 1.000 4. 3.000 25. Utilities Electricity Water Telephone Gas PREF-103/June.400 818.000 384.000 360.630.040 30.000 13.308.000 54.000 72.080 30.000 36.000 54.500 4.000 360.000 240.080 1. 4.000 300. 9 UTILITIES REQUIREMENT 2.000 74.321.000 96.400 Following utilities would be required for the showroom Serial 1.000 5.

262.288.820.529 2.253.531.134 407.903 53.940 21.246 48.122.913.20 Year .404.956 39.153 8.829 361.348.900 4.827.506 1.066 88.735.103 496.781.667.393.913.571.3 RUPEES 32.558 1.199 37.263.813 46.705.824.447 665.360.616 88.433.740.209.675 580.brought forward Accumulated Profits .2 RUPEES 28.129 1.014 1.619.690 1.7 RUPEES 48.074 30.708 39.384 9.182 12.791.363.712.271.078.864.928.286 5.867 2.314 54.615.339 2.394 72.140 89.570 3.531 3.318.416 9.525.910 13.278.548 8.709 114.787.394 30.Net of Sales Tax Cost of Sales Gross Profit Gross Profit Margin % Operating Expenses: Administrative Expenses Marketing Expenses Total Operating Expenses: Operating Profit Other Income Total Operating Profit Financial & Other Charges Mark up on Long Term Loans Bank Charges Total Financial & Other Charges Profit before Taxation Taxation Profit after Taxation Accumulated Profits .991.436.907 2.713.604.245.286 30.104 29.220.371.270.631 42.371 15.275 26.320.198 26.109.009.772 69.186.740.805.537 3.813.937 22.10 18.6 RUPEES 43.133.542.483 5.392 3.575.846 13.113 25.315 232.085.492.357.036 18.153 12.708 89.697 2.224 450.759.370 3.802 65.94 Year .252.946.506 3.124 27.197 13.734 45.222 5.255.296.604 19.29 Year .664 574.280.682 1.492.706.945 4.558 13.312 85.196.022 1.161 15.394.11 10.245 2.982.552.227 2.561.173 1.487.484.802 508.735 29.carried to the Balance Sheet 10.509.12 10.Pre-feasibility Aloe Vera Processing 8 8.430 142.748.05 2.427.449 65.049 2.740 34.297.250 13.862 13.382 59.45 Sales .364 79.841 71.998 7.018.260 63.867 27.718.123 34.121.347 15.566 40.209.891.682 30.990 710.613 9.9 RUPEES 56.237.540.918.762 1.874. 1 PROJECTED FINANCIAL STATEMENTS PROJECTED INCOME STATEMENT Year .364 114.106 603.786.429.002.296.008 17.044.241.682.301.003 12.248 14.754.675 39.556 15.871 4.312 37.187 73.180 21.740.333 547.10 RUPEES 59.903 28.83 Year .5 RUPEES 39.071 4.676.690 46.112 30.851.036.815 34.418 6.495.421.276.495.518 1.430 85.827 4.098.56 Year .662 2.169 1.529 17.154.217.1 RUPEES Year .595.140 172.875.178 43.036.439 25.848.755 8.748.669 2. 2006/ Rev 1 28 .150 5.46 Year .449 13.92 Year .4 RUPEES 36.423 3.916.925 3.069 34.084.292.690 2.205 6.381.658.290 1.209 1.044 1.319 22.773.211.977 34.312 142.074 11.659.395 4.815 79.030.283 66.115 19.249 22.952.542 2.558 747.827.935 37.116.007 4.616 72.525.310.8 RUPEES 53.506 8.781.748 65.011 4.775.088.325.153 19.416 11.284.239.949.591.578.561.745.664 1.689 26.514 75.674 6.295 58.452 PREF-103/June.189 74.89 Year .931.328 17.820 14.

115 4.346.291 Year .597.374.140 165.152 2.679.802 69.486.329.864 534.042 176.280 1.982.280 945.743 142.117 146.989 299.643 22.319 5.000 1.683 119.338.090.195 PREF-103/June.549 394.901 4.767.748.278 206.174 532.773.291 22.269 146.500 1.306.948.818 17.597.474 59.416 2.571.098.280 630.106.874.517 176.519.896 299.473 Tangible Fixed Assets Long Term Deposits Electricity Deferred Cost Current Assets: Stock in Trade Trade Receivables Stores & Spares Advances.162.123 8.280 1.107 502.966.525.280 472.5 RUPEES 22.280 1.984.400 22.519.078.310.271.506 24.565 53.634.237.689 9.974 11.743 46.8 RUPEES 15.674 8.220.419 508.555.358.341.519.000 1.6 RUPEES 19.723.837 621.660 17.263.169 5.557 299.193.892 119.7 473.479 75.069 96.384 9.743 17.122 4.700.929 655.603 1.953 29.996 Year .977 80.2 RUPEES 32.523 101.492.297 51.743 172.743 30. Deposits & Other Receivables Cash in Hand / Bank 10.549 408.549 449.083 22.396 3.558.883 564. 2 PROJECTED BALANCE SHEET Year .284.519.036.457.452 195.015 19.152.700.371 11.429.682 40.519.648 186.604 7.134.076 693.363.653 Year .743 8.483 547.620.107 80.272 13.495.198 6.966 510.578 299.671.997.000 1.425 9.999 22.549 426.769.769.694 169.083 Year .498.915.373.424.619 309.743 65.597.546 4.740.448.249 18.417.676 3.039.012.562 48.379.8 22.374.137 2.566 9.417 10.332.390.106.521 299.9 RUPEES 14.6 36.597.152.134.964.193.up payable Sales Tax Payable Provision for Taxation 10.110 497.225 1.743 114.979 96.646 4.658 15.280 787.433 4.133 299.8 4.415 450.449 53.526.1 RUPEES Year .227.059.679 710.3 RUPEES 28.597.278 299.471 18.449 496.616 88.280 315.997.597.137.372.075 299.10 RUPEES 13.326.280 1.597.305 665.101 68.514.020 847.463 1.083 59.003 10.159.807 560.372 69.400 Year .286 7.371.473 22.903 10.295 485.996 22.609 747.709.529 30.Pre-feasibility Aloe Vera Processing 8.371.871 130.940.781.149.151 9.500 1.606.367 22.896.249 8.676.123.549 4.999 Year .597.690 53.549 416.503.367 Year .359 474.338 22.954 193.065 24.000.338 Year .561.329.413 2.433.525 68.340.763.742 299. 2006/ Rev 1 29 .792 37.4 RUPEES 24.413 21.572 6.738.913.376.956 41.459 4.743 88.676.137.420.446.000 1.743 1.100.7 RUPEES 17.598.519.670 57.500 1.025 124.897.636 206.093.959.597.274 95.275 3.417 Owners Equity: Capital Introduced Accumulated Profits Long Term Loan Current Liabilities: Current Portion of Long Term Loan Accrued Charges Mark .556 3.382 407.253.761 154.356 603.348 361.102.186.525.536 299.195 599.432 16.798 589.808 161.803.280 157.430 137.220.000.500 1.674.768 19.097 4.653 22.500 1.152.640 10.973 48.597.500 24.364 111.935 9.104 11.260.827.815 20.636 580.

549 5.458) 13.075) (334.519.930 0 36.241.470.280 Cash Increase/(Decrease) Opening Balance Closing Balance 6.096) Year .604 25.500 4.3 RUPEES 12.774.814.697 157.616 6.718.266 27.619 309.689 30.630 (259.713.329.549 4.571.762.388 16.566.648 36.523 124. Deposits & Other Receivables(473.604.966) 42.879 (642.017) Year .949 0 61.844 1.429.418.500 1.433.084.281.544) 25.953 4.729 31.871 8.086) (849.951 (29.956 51.431) Year .995.644.966) 46.953.519.151 6.479 95.483 157.935 23.100 Stock in Trade Stores & Spares (1.842) 9.948.811) 23.954.2 RUPEES 8.808 186.040) (31.723.509.810.049 - - - - - - - - - 4.525.4 RUPEES 17.639.848) (1.800) 27.011 157.410.486 Total Sources Applications: Fixed Assets Long Term Deposits Deferred Cost Re -Payment of Loan Taxation 41.408 19.012.933 12.164 39.277 (46.5 RUPEES 21.704.768 24.310.500 1.416 157.254.763.Pre-feasibility Aloe Vera Processing 8.670 69.717 8.049 (36.349 95.537 157.067.829.750 (178.966) 50.146 154.416 (338.397.966) 46.907 28.500 2.903 31.879) (990) (28.554 13.597.112.948.500 3.505.953 37.223 9.312.794 36.384 7.394.583 Year .613 157.575.551 14.152.386) 8.519.558) (1.760.371 9.400 (338.723.286.195.809 51.847.188) (4.10 RUPEES 39.500 3.779 546.855 20.1 RUPEES Year .000 43.146) (37.137.723.530.003 24.433.940.303) Year .505) (303.837 (384.763.140 (623.676.683.674 6.057.185 15.640) Advances. 3 PROJECTED CASH FLOW STATEMENT Year .373 0 45.756.751) (406.100) Year .857) 34.928.937 124.500 1.000 299.012.383 24.213.429.205 (612.706.525.778) (1.288.284.329.937 (51.7 RUPEES 30.871 154.549 580.598 39.348 51.901) (368.755 157.003 8.676. 2006/ Rev 1 30 .656) (12.888) Profit before Taxation Amortization Depreciation 2.651) Year .169 5.549 3.824 (17.670 4.448.519.985 (856) (13.727) (279.790.720) (943) (26.479 6.151 15.714 37.225) (11.088 (514.919 17.768 4.448.249 7.453 32.320.366 4.949.197.599) 29.162.6 RUPEES 25.099.559 (576.737) (301.597.618.974) 394.249 28.331.431 13.334 16.601.940.887) (240.956 4.021 41.662 (169.636 (2.735.925 7.500 2.572) Trade Receivables Accrued Charges Mark .098.229) 32.151 50.903 9.227.408) (303.954 PREF-103/June.888.366 (14.812 (305.9 RUPEES 37.604 6.571.724) (815) (11.675 157.549 2.504.689 8.044 69.up payable Sales Tax Payable (1.524) (898) (23.500 5.743 22.998 157.137.808 9.519.500 2.280 1.092) (34.271.138.227.237.814.435.526.141 (338.8 RUPEES 34.451) Year .485.155) Cash form other Sources Sponsors' Equity Debt Financing 22.523 7.625 41.426 (22.743 45.274 (338.483) 56.418 157.

1 KEY ASSUMPTIONS PROJECT ASSUMPTIONS 10 50% 50% 14% 5 5% Projected Life of The Project in Years Sponsors' Equity Debt Financing Annual Mark Up Rate (Short Term & Long Term) Debt Tenure in Years General Inflation Rate 9.000 17. of Days in One Year Total No.000 3. 3 365 12 300 5% REVENUE ASSUMPTIONS OF ALOE VERA POWDER PRODUCED SALE PRICE Description Value Excl.600. of Plants per acres Total Land under Cultivation (acres) Leaves per plant (Average) No.Pre-feasibility Aloe Vera Processing 9 9.00% 275.000 1 45. 2 OPERATING ASSUMPTIONS Total No. 2006/ Rev 1 31 . of Months in One Year No of Working Days in One Year Capacity (Sales ) growth rate &%) 9.620.000 60 3 4 60.00% 1. of Crops per Year Aloe Leaves production per acre Total Aloe Leaves production per year of 60 acres Average Leaf Weight (Kg) Aloe Vera Gel Production in %-age of leaf weight Aloe Vera Gel Production (Kg) Aloe Vera Powder production Total annual Aloe Powder production (Kg) 1st Year Sales Volume in months Capacity utilization in first year PREF-103/June. Sales Tax Rupees 140 Sales Tax 15% Rupees 21 Sale Value (Inc Sales Tax) Rupees 161 5.400 9 70% Sale price per kg of Aloe Vera Powder No.

258.980 60 1.000 60 300.Pre-feasibility Aloe Vera Processing 9.) Plants per Acre Cost per Acre of Aloe Vera Plantation Diesel & Repair/Maintenance of Tube Wells for water Wages of Labor Fertilizers Chemicals Total Per Acre Total Land (Acres) Total Cost of Aloe Vera Plantation 9.000 5.000 9.480 5. 4 COST OF ALOE VERA PLANTATION 5. 5 DEPRECIATION RATE ASSUMPTIONS 0% 5% 10% 10% 10% 20% of the Written Down Value of the Written Down Value of the Written Down Value of the Written Down Value of the Written Down Value of the Written Down Value Land Buildings Fittings & Installations Office Equipments Furniture & Fixtures Vehicles 9. 2006/ Rev 1 32 .000 1.500 10 5. 7500 plants as margin of waste) Per Plant Cost (Rs.000 50% 157.800 Plants per Acre Land under Cultivation Total Plants Total Plants Required for Cultivation Initial Plants required for seeding purposes (incl. 6 LONG TERM SECURITY DEPOSITS 2 2 months Electricity expense months Sui Gas expense Electricity Sui Gas 9. 7 WORKING CAPITAL TURNOVER ASSUMPTIONS 45 Days Aloe Plant consumption 30 Days Stores & Spares Consumption 30 Days Stores & Spares Consumption Raw Material Finished Goods Stores and Spares PREF-103/June.500 20.

Pre-feasibility Aloe Vera Processing 9.50% 0. repair.80% 50. 12 MISCELLANEOUS ASSUPTIONS 4% of Cost of Aloe Vera 15% of Cost of Aloe Vera 10% of Turnover for 3 years 8% 2% 1. 2006/ Rev 1 .000 33 of the Cost of the Cost of Building of Total Cost of Goods Sold of Total Cost of Goods Sold 5000 5000 Carriage & Freight Inward Stores & Spares Research & Development Cost Repair & Maintenance Building and fittings & installations Building Insurance Traveling & Conveyance Printing & Stationary Consultancy Charges Audit Fee Out of Pocket Expenses PREF-103/June. vehicle running. entertainment. sale promotion and other general expenses Trade Receivables Advances to Staff Loans to Staff Advances against expenses 9. 11 VEHICLE RUNNING EXPENSES Rate per liter/Kg CNG CNG Petrol Diesel Traveling Km/ day 35 35 57 42 50 80 40 100 Fuel Consumption (Km per Liter/Kg) 2 2 2 2 Cars Suzuki Pickup Motor Cycles Tractor (messey 360) 12 8 50 5 Annual Tours 300 600 300 300 9. 10 LONG TERM LOAN 5 2 10 14% Term (years) Installments per year Total Installments Markup per annum 9.000 5. 8 Expenses 9. 9 ACCOUNTS PAYABLE 30 Days of Total Annual Expenditure ADVANCES & PRE PAYMENTS 30 20% 10% 5% Days of Total Annual Turnover of the one month's salary of the Total annual salary of the traveling.

000 5000 10% 1% of Total Cost of Goods Sold .5% of the Cost of Stock in trade 10% of the Cost. 2006/ Rev 1 34 .4% of Total Cost of Goods Sold Office vehicles insurance rate Insurance rate of Display Furniture and stores Repair & Maintenance 4% of Written down value 3. PREF-103/June.85% of Total Cost of Goods Sold .Pre-feasibility Aloe Vera Processing Income Tax & Sales Tax Consultancy Inflation rate of Consultancy charges Entertainment Telephone Fax and Postage Utility Charges 9. 13 INSURANCE ASSUPTIONS 70.

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