Investing in table wine production and packaging
For the economic development of both under-developed and developing nations among others include inward looking, diversification of economic base, indigenisation of the economy, balanced development plan, industrialisation, development of local technology, promotion of exports, development of agriculture and implementation of programmes toward self reliance/sufficiency.
To achieve the above stated objectives, one of the actions to be taken is encouragement of investments in the areas of utilisation of our abundant raw materials to produce goods for local and overseas markets. This investment proposal is a step in this direction.
Justification
For many years, we have been crying of import substitution, and today we have many bottled wine imported from various countries in our different markets, but the establishment of wine processing factory will without any doubt achieve import substitution, thus conserving the country’s foreign exchange.
The raw materials for the production of wine are readily available in Nigeria. The ones in mind for the use of this investment proposal are sweet oranges, lime, lemon, tangelo, pineapple, cashew, and pawpaw, which are readily grown in Nigeria. The colour of the extract is naturally attractive, especially after fermentation into wine. Other properties of the raw materials are advantageous towards the production of excellent wine. Not only this, the production process is very simple.
Socio-economic benefits derivable from the project are improvement of the economic wellbeing of the sponsors because of its viability, generation of employment opportunities and optimal utilisation of resources that have been wasting away.
Production technology/implementation procedures
Production technology for the production of bottled wine are juice extraction, treatment of the juice extract, fermentation, ageing, clarification, pasteurisation and bottling.
To embark on the project, the implementation procedure include pre-investment consultation, preparation of feasibility report (can be made available on request) finance negotiations, construction of factory. (Rented accommodation can be used), purchase and installation of processing plant, procurement of raw materials and project take off. Investors can be put through in this regard. Components of thee processing plant are juice extractors, stainless steel tanks, pasteuriser and corking machine.
Financial implication
This investment proposal will cost N13,800,000, broken down a follow:
N
1. Pre-investments: 200,000
2. Medium size factory: 3,500,000
3. Processing plant: 4,600,000
4. Utilities : 3,000,000
5. Working capital requirement: 2,500,000
Total N13, 800,000
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Profitability
Financial indicators have shown the profitability of this project. Annual net income of N26 million, benefit/cost ratio is above 1.5, net present worth of N4.5 million and internal rate of return of above 50 percent. This project is strongly recommended for implementation.
Authors contact 08023058045, nucleusventuresnigltd@yahoo. com
OLUMAKINDE ONI