Scope of Project

The major scope of project is to produce paste of tomato. Later on, other fruits/vegetables can also be converted into pulp/paste subject to availability of products and their economic viability.  

Location
killa Sifullah, Balochistan

Land Area
2 Acres

Project Cost (approved)

Project Rationale
Balochistan province produces a range of fruits and vegetables almost around the year. It is the
largest producer of temperate fruits, dates, onions and tomatoes. Among vegetables, Tomato is
the second major vegetable produced in the country. Area under its cultivation was 46,200
hectares with production of 468,146 MT during 2005-06.

Balochistan province, over last two years has emerged as major producer of tomato with 42% share in national production, followed by NWFP 34.5%, Punjab 14.5% and Sindh 9% share. Killa Saifullah district is the leading producer of tomato in the Balochistan Province as well as in the country. Therefore, the proposed site for the plant is Muslim Bagh in Killa-Saifullah.
Food processors are major consumers of tomato paste in the local market, followed by hotels & restaurants and then household. The current estimated consumption of tomato paste/pulp in the country is around 4,000 – 4,500 MT (Food processing industry = 3000 -3200 MT, Hotels & Restaurants= 800 -1000 MT and household = 200 -300 MT).

Some of the food processors partially meet their paste/pulp requirement through in-house production while others depend on imported paste/local pulp produced by cottage industry (statistics for which are not available). Establishment of a tomato paste plant in the country will not only produce a quality product but would significantly reduce the dependence of local ketchup industry/hotels on imported paste and thus save valuable foreign exchange.

Location
Muslim Bagh in Killa-Saifullah

Supply Demand Analysis

Per capita consumption of tomato paste is still very low as compared to developed countries. For example, US consumption of tomato paste per capita is 30 kg per year, EU countries consume 15 kg per capita, and Turkey consumes 1 kg per capita whereas per capita consumption in Pakistan is negligible. There is still big potential demand from the local market, which is expected to rise with the passage of time. Based on the analysis, it is expected that demand for tomato paste in the country will grow at 15% per annum in future.

Management Structure

The project is to be set up under public private partnership modality. A private limited company has been formed. The project will be managed by a Board of Directors comprising the representatives from public and private sectors. The day to day management will be entrusted to a team of professionals hired from the market.

Financial Indicators