1. Supervised by: Syed Afzal Moshadi Shah Group Members: - Zaka Ul Hassan - Nouman Sarfaraz

4. Olive Growing Environment Climatic Requirements for Olive Cultivation Factors Standard Climate Pakistan Climate Temperature 5-45 o C 10-45 o C Rainfall 700-800mm More than 500mm Humidity 75-90% 70% Altitude 400-1700meter 100-3000meter Chilling Req. 400-2000 hrs 400-2100 hrs Slope upto 20 o 10 o -50 o

5. Marginal / Barren lands Marginal / Barren Land

8. Olive Orchard

12. Table Olive Product Options Olive Oil Seeds Tasbeegh Traditional Sweet Burfi Dried Olive Powder Bread Medicine From Olive

13. Financial Costing Olive orchard on 40 kanal which is 5 acre. Basic Description: 835 Plants on 5acre (167/acre spacing of 4x6 meter) Capital Cost: We have taken the costing of 5 acre area for the plantation of Olive plants. Table 3 – Irrigation equipments Irrigation System Installation Cost: Table 4 – Plants Installation Cost Initial Cost: Equipments Cost PKR. 9 Water Tanks 45,000 Land Bore 40,000 Hard Plastic Pipe 11,880 One Electric Motor 10,000 Total 106,880 Material No. of Unit Per Unit PKR. Total Olive Plants 835 30 25,050 Fertilization 6 2,000 12,000 Land Preparation Labor 3 7,000 21,000 Irrigation System 1 106,880 106,880 Total 164,930

16. Preparation of Table Olive Cost of producing Table Olives Price Per Kg Preparation of Oil Cost of producing Olive Oil Profit Per ltr Packaging PKR./kg Bottle 35 NaOH 1 Nacl 1.66 Vinegar 40 Labor 2 Utility Expenses 2 Total 81.66 Selling Cost PKR./kg Retail Price 500 COST Manufacturing Cost (81.66) Retailer Margin 20% (100) Sales man Margin 5% (25) Profit 293.34 Packaging PKR./ltr Bottle 35 Transportation 2.81 Labor 2 Utility Expenses 2 Total 41.81 Selling Cost PKR./ltr Retail Price 500 COST Manufacturing Cost (41.81) Retailer Margin 20% (100) Sales man Margin 5% (25) Profit 333.18

17. Projected Cash Flow Analysis Table Olives: Year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Olive kg 0 0 0 0 2,133 3,081 3,792 5,214 5,688 6,162 7,110 Manufacturing Cost 0 0 0 0 184,181 261,594 319,655 435,775 474,482 513,189 590,603 Total Cost 164,930 115,500 115,500 115,500 549,681 377,094 435,155 551,275 589,982 628,689 706,103 Revenue 0 0 0 0 799,875 1,155,375 1,422,000 1,955,250 2,133,000 2,310,750 2,666,250 Net Profit -164,930 -115,500 -115,500 -115,500 250,194 778,281 986,845 1,403,975 1,543,018 1,682,061 1,960,147 Income -164,930 -280,430 -395,930 -511,430 -261,236 517,045 1,503,890 2,907,865 4,450,883 6,132,944 8,093,091 Cumulative Cost 164,930 280,430 395,930 511,430 1,061,111 1,438,205 1,873,360 2,424,635 3,014,617 3,643,306 4,349,409 Cumulative Revenue 0 0 0 0 799,875 1,955,250 3,377,250 5,332,500 7,465,500 9,776,250 12,442,500 NPV @ 0% NPV @ 5% NPV @ 10% NPV @ 15% 12309703 9721802 7815713 6385157

18. Projected Cash Flow Analysis Olive Oil: Year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Olive ltr 0 0 0 0 444 642 790 1,086 1,185 1,284 1,481 Manufacturing Cost 0 0 0 0 18,579 26,837 33,030 45,416 49,545 53,674 61,931 Total Cost 164,930 115,500 115,500 115,500 134,079 142,337 148,530 160,916 165,045 169,174 177,431 Revenue 0 0 0 0 166,641 240,703 296,250 407,344 444,375 481,406 555,469 Net Profit -164,930 -115,500 -115,500 -115,500 32,561 98,366 147,720 246,428 279,330 312,233 378,038 Income -164,930 -280,430 -395,930 -511,430 -478,869 -380,502 -232,782 13,645 292,976 605,208 983,246 Cumulative Cost 164,930 280,430 395,930 511,430 645,509 787,846 936,376 1,097,292 1,262,337 1,431,511 1,608,942 Cumulative Revenue 0 0 0 0 166,641 407,344 703,594 1,110,938 1,555,313 2,036,719 2,592,188 NPV @ 0% NPV @ 5% NPV @ 10% NPV @ 15% 1847308 1474767 1192541 975345

19. Brand Name: Potohar Olives Target Market: - Upper and Middle class Marketing Strategy: - Push Strategy (in the beginning) Give away high margins to Retailers (20% of the price) and Sales Staff (5-15% of the price) Low price entry strategy: Product Competitor Rate PKR./ltr Our Rate PKR./ltr Extra Virgin Olive Oil 726.25 500.00 Pomace Olive Oil 479.12 440.00 Table Olive 725.11 500

22. Thanks for your patience Any Question???