This is the feasibility report on Juice plant in Jordan that whether the plant would be profitable or not.

1. Feasibility Study
JUICE PLANT IN JORDAN

2. Abstract
 In the last two eras there has been a swift variation in the era of fruit trees in
Jordan. This increase was not limited to the fruit tree crops (olives and
grapes) traditionally but it is also included other fruit trees crops, especially
apples and Juices.
 This prompt improvement was accompanied by an enhancing growth of
nursery stock, which has been covered either through in house production
or via imports.
 This paper deals with the different aspects of this development in the fruit
trees sector. In addition, an attempt is undertaken to point out some of the
pros and cons of this agricultural sector.

3. Qualitative issues among milk pasteurization and
juice plant
 Upon research and investigation we have two industries which are under discussion in which
a Fruit juice plant and second is Milk pasteurization plant.
 Upon the inquiry from “Research gate and other sources” its clear that there were so many
difficulties while establishing the Milk pasteurization plant such as we came to know that in
the previous decades farming management programs and the lack of water and feed
resources have partially hampered the dairy industry and still pose a problem due to the
increasing dairy cow numbers.
 Storage management and quality improvement issues.
 Capacity building of the dairy farmers, company staff and the management are lacking,
infusion of technical services & appropriate know-how are always a catalyst for the better
performance issues.
 So in the same manner there are many qualitative issues.
 But on the other side above said issues did not happen with Juice because ots durable with
respect to Milk.
 Milk is also perishable commodity.

4. Quantitve /economical issues among milk pasteurization
and juice plant
Description
milk pasteurization Juice plant Difference
Amount in $
Land 1,652,173.9 271,739.0 (1,380,434.9)
Building / Infrastructure 196,459.9 445,019.0 248,559.1
Machinery & Equipment 1,701,627.3 2,133,896.0 432,268.7
Electric installation and
Furniture & Fixtures 146,666.7 112,319.0 (34,347.7)
Office Vehicles 252,000.0 66,196.0 (185,804.0)
Office Equipment 63,587.0 25,073.0 (38,514.0)
Pre-Operating Costs 175,739.8 - (175,739.8)
Training Costs 101,449.3 - (101,449.3)
Total Capital Costs/Fixed
cost 4,289,703.8 3,054,242.0 (1,235,461.8)
Working Capital
Total Working Capital 151,213.8 472,103.0 320,889.2
Total Investment 4,440,917.7 3,526,345.0 (914,572.7)
So we decided to make the feasibility on Juice plant rather than Milk. Now the onwards presentation is
all about the Juice plant in Jordan that whether we earn the maximum profit from it and how can we
earn from it and when as well as in which time.

5. INTRODUCTION
Economic Context of JORDAN
If we talk about the economy of Jordan the its GDP per capita rose by 351% in the 1970s but decrease 30% in the 1980s and rose 36% in the
1990s.
Jordan is categorized as an developing market. After king Abdullah II's accession to the command in 1999, liberal economic policies were
presented that resulted in a boom that continued through 2009.
The annual growing rate was 8% in 1999 and up to 2008.
However, growth has slowed to just 2% after the Arab’s Spring vented in 2011.
Further Substantial increase of the residents, coupled with the reduced economic growth and rising public dues led to a falling of poverty
and redundancy in the country. But in the year of 2015, Jordan claims a GDP worth $37.6 USD bn , ranking it 89th in overall the world.
 As per economical record of the world bank the city of Jordan is classified as an "upper middle income country.“
 Jordan has the third freest economy in the Middle East and North Africa, behind only Bahrain and Qatar, and the 32nd freest in the
world.
 Regarding infrastructure Its ranked as having the 35th best in the world,
 The official currency in Jordan is the Jordanian dinar and divides into 100 qirsh (also called piastres) or 1000 fils.
 The market of Jordanian is considered as one of the most developed Arab market outside the Persian Gulf states. So as per official
record Jordan’s ranked as 18th on the 2018 Global Retail Development Index which lists the 30 most attractive retail markets in the
world
 Jordan has been also a member of the World Trade Organization (WTO) since 2000 which operate and
control the trade overall the world.
 As per the report of Global Enabling Trade Report, Jordan ranked 4th in the Arab World behind the UAE,
Bahrain, and Qatar.

6. Overview of Jordan Economy
 Classified as an upper middle economy by the World Bank and as a country of High Human Development by the
UNDP, Jordan is an important financial power in the Middle East. Its small market witnessed growth in the last two
decades since King Abdullah II accessed the throne. Jordan’s GNI per capita has increased in the last four years
due to the basket of economic reforms that were enacted in the recent decade such as (the new Income Tax Law,
Public Private Partnership Law and Investment Law). These laws aim to encourage the participation of the private
sector in the Kingdom’s economic development and provide an enabling legislative environment for current and
new investment opportunities.
 The Jordanian economy is overwhelmingly services oriented and its contribution in the GDP is 68.1%. The
contribution of the industrial sector is 22.4%, the construction sector is 4.2% and the agricultural sector is 2.9%. These
contributions are aimed to increase to (27.4%), (5.8%) and (3.4%) respectively and that of the service sector is due to
decrease according to Jordan 2025 vision.
Service sector
3% Indusrty sector
23%
construction sector
4%Agriculture sector
70%
Service sector Indusrty sector construction sector Agriculture sector

7. STYLE of living of JORDAN’s
 Jordan is one of the most liberal countries in the Middle East with a secular government.
 And if we compare the staggering cost of living ranking, then it’s a right to say that Jordan
ranks number 65 in the world.
 Its average monthly salary of peoples $637
 Jordan ranked 65th globally in terms of the average net salary,

8. Businesses in JORDANS
 If we talk about the industries then the following sector of industries are under discussion.
1. Agriculture, forestry, and fishing Sector of economy 6. Transport sector
2. Mining and minerals sectors 7. Media and Advertising industry
3. Manufacturing 8. Services sector of economy
4. Telecoms and Information technology 9. Tourism
5. Energy sector
1. AGRICULTURE SECTOR
• Despite the presence of all of the above sectors the agriculture is the main sector of Jordan’s economy
having the maximum share w.r.t. the all other sectors. Because
As per information state by the “ The State of the Agricultural Sector in Jordan”
The agricultural sector is reflected one of the vital sector which are contributing to Jordan’s economy. It’s
importance is not only limited to creating agricultural jobs. It contributes to the Kingdom’s exports and
GDP as well.
The most profitable agriculture’s segment of Jordan is fruit and vegetable production (including
tomatoes, JUICEes , cucumbers, citrus fruit, and bananas) in the Jordan Valley.
The rest of crop production, especially cereal production, remains volatile because of the inconsistency
of rainfall.

9. Project design steps
 Project Summary Sheet
 Overview of JUICE Sector
 Potential Investment Opportunity in Value Added Products
 JUICE Pulp Extracting Facility
 Existing Players in JUICE
 SWOT Analysis JUICE Processing Business In Jordan
PROJECT SUMMARY SHEET
Project’s Cost
Objective
Manufacturing of JUICE Pulp from
locally available JUICE
Product Line JUICE Pulp
Operative
Capacity
Tons JUICE per day
Location Jordan
Target Market Export and Local
Technology
Employed
Pulp Extraction

10. Site analysis
 The factory will be established in Ajloun within the classified zones.
 Lan
 The land required to build the factory is 10,000 square meters, divided into a factory,
warehouse, and administration offices' and raw materials required
Raw materials for the packaging materials
1 Required juice raw material 10 Shrink Film 24, 44, 50
2 Fruits concentrates 11 Straw
3 Fruits flavours 12 Stripes
4 Sugar 13 Hydrogen peroxide
5 Citric acid 14 Caustic soda
6 CMC 15 Nitric acid
7 Beta carotene 16 Glue for cardboard
8 Water 17 Glue for straw
9 Cardboard 18 Pallet

11. TOTAL PROJECT COST
PROJECT COST Amount ($)
The details of the cost of project are as follows:
Land including development cost 271,739
Building & civil works including water infrastructure 445,019
Plant & machinery 2,090,418
Electric installations 108,696
Furniture & fixture 3,623
Vehicles 66,196
Weighing scales 22,464
Generator 43,478
Office equipment 2,609
-
Total fixed cost 3,054,241
Initial working capital 55,435
Advance payment of taxes on import of machinery 329,712
Contingencies 72,464
Pre-incorporation / pre-operating expenses 7,246
Project consultancy fee 7,246
-
Total project cost 3,526,344

12. Project Cost
Total Project Cost $137685000
Capital Cost $ 5543000
Working Capital $1,32142000
PROJECT FINANCING
The project may be financed either via share capital or long term
borrowings.
Pre-Operating Expenses
Governmental fees 2,000
Training 750
Marketing 2,500
Transportation 1,000
Total 6,250

13. PROJECT DETAILS AND ASSUMPTIONS
LOCATION
The Project shall be located in Jordan’s region which is suitable in respect of availability of raw
materials, skilled labor and all other infrastructure necessary to run the Project. This location is viable in
respect of purchase and carriage of raw materials as the region is full of gardens of mangoes.
The following are the important factors, which are necessary for the successful operation of the
company:
- Sufficient supply of electrical power.
- Sufficient availability of raw material.
- Ample supply of water.
- Adequate facilities for waste disposal.
- Availability of suitable labor and technical staff.
- Access to transportation facilities.
TOTAL PROJECT COST
Total cost of the Project is $ 3.5million .

14. LAND AND DEVELOPMENT COST
Land required for the Project is assumed as 5 acres which will be acquired for $
271,739; i.e. $54, 348 per acre (including development cost).
PLANT AND MACHINERY
• The plant, machinery, equipment and accessories include machinery for processing, chiller with
cooling tower, air compressor, boiler with dual burner, quality control lab and the cold storage house.
The estimated cost of the complete plant will be $ 2,090,418.
• Markup of two quarters before commencement of commercial production is capitalized to plant and
machinery.
• The capacity of the plant will be 15 tons feeding per hour. The plant can be utilized for the of mango,
apple, strawberry and guava etc. However in this feasibility, we have considered the mango and
guava only.
• Cold storage will also be constructed within which 200 tons of pulp can be stored.
• Plant also includes a quality control laboratory.
FURNITURE AND FIXTURES
Considering the work operations, quantity required for office furniture
is assumed at 25 tables and chairs at the rate of $ 145 each pair.

15. ELECTRIC INSTALLATIONS
The factory site shall be connected with a electricity power connection. Considering the work load
of production operations and energy requirements of the Project, the connected load o
electricity will be 1000 KWs.
The cost of 1000 KW transformer is assumed to be $ 36,232 and cabling and electrification cost i
estimated as $72,464.
TENTATIVE REPAYMENT SCHEDULE
FOR THE YEAR ENDING JUNE 30
Loan Amount 2,468,441 Frequency Quarterly
Disbursement 31-Dec-18 Term 2 years
Grace period 1 year Installment 2,236
per
quarter
Year 1 Year 2 Year 3 Year 4 Year 5
Borrowing rate 9.94% 10.44% 10.94% 11.44% 11.94%
Payment of loan and markup calculation quarterly=Loan Balance amount/2*(Number of days
lapsed)*Rate/365 See schedule on next slides

16. Expected number of employees and their salaries
Job title Year 1 Year 2 Year 3 Year 4 Year 5
Indirect employees
Factory manager 1 1 1 1 1
Financial Manager 1 1 1 1 1
Accountants 5 5 5 5 5
Sales and Marketing Manager 1 1 1 1 1
Sales and marketing staff 7 7 7 7 7
human resources director 1 1 1 1 1
Human resources officer 1 1 1 1 1
Total number of indirect employees 17 17 17 17 17
direct employees
Production Manager 2 2 2 2 2
operators 40 40 40 40 40
Quality officer 4 4 4 4 4
Driver 6 6 6 6 6
Total number of direct employees 52 52 52 52 52
Total 69 69 69 69 69

17. Expected number of employees and their salaries
Job title Year 1 Year 2 Year 3 Year 4 Year 5
Indirect employees
Factory manager 2,500 2,603 2,820 2,936 3,056
Financial Manager 2,000 2,082 2,167 2,256 2,349
Accountants 500 521 542 564 587
Sales and Marketing Manager 1500 1,562 1,626 1,692 1,762
Sales and marketing staff 400 416 433 451 470
human resources director 1,200 1,249 1,300 1,354 1,409
Human resources officer 420 437 455 474 493
direct employees
Production Manager 1,000 1,041 1,084 1,128 1,174
operators 350 364 379 395 411
Quality officer 750 781 813 846 881
Driver 320 333 347 361 376
Total 8,340 11,389 11,966 12,457 12,968

18. PROJECTED BALANCE SHEET FOR THE YEAR ENDING JUNE 30
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
………………... Amounts in $ …………………
ASSETS
NON-CURRENT ASSETS
Property, plant and
equipment - 22,481 20,380 148,932 134,200 120,946
Intangibles - 84 63 42 21 -
CURRENT ASSETS
Stores and spares - 154 277 2,330 2,796 3,146
Stock-in-trade - 376,810 418,558 490,387 535,928 603,150
Trade debts - 320,290 459,432 587,065 700,294 858,743
Advances and pre
payments - 275,748 570,305 624,162 714,289 722,228
Cash and bank balances - 6,346 1,484,631 3,029,063 5,294,381 7,872,517
TOTAL ASSETS - 1,001,912 2,953,646 4,881,980 7,381,908 10,180,730

19. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
………………………………... Amounts in $ ………………………………...
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Issued, subscribed and paid up share capital - 7,666 7,666 7,666 7,666 7,666
Revenue reserve - unappropriated profit /
(loss) - 412,228 1,856,467 3,645,776 5,993,686 8,711,414
LONG TERM LIABILITIES
Long term borrowings - 17,839 17,774 17,758 17,758 17,758
CURRENT LIABILITIES
Trade and other payables - 395,753 553,212 643,345 713,446 787,322
Current portion of long term borrowings - 49 65 16 - -
Accrued interest - 3 2 0 - -
Provision for taxation - 168,375 518,459 567,420 649,353 656,571
TOTAL EQUITY AND LIABILITIES - 1,001,912 2,953,646 4,881,980 7,381,908 10,180,730

20. PROJECTED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING JUNE 30
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
………………………………... Amounts in $…………………………………
Sales - net - 2,980,305 8,117,434 10,000,450 12,537,730 14,168,221
Cost of sales - (2,259,041) (5,842,676) (7,271,905) (9,104,799) (10,313,586)
Gross profit - 721,263 2,274,759 2,728,545 3,432,931 3,854,635
Administrative expenses - (77,060) (130,625) (143,828) (156,553) (170,517)
Selling and distribution expenses - (63,597) (181,424) (227,984) (279,114) (309,820)
- (140,657) (312,049) (371,812) (435,668) (480,337)
Profit before financial charges - 580,606 1,962,710 2,356,732 2,997,263 3,374,298
Financial charges - (3) (11) (4) - -
Profit before taxation - 580,603 1,962,699 2,356,728 2,997,263 3,374,298
Provision for taxation - (168,375) (518,459) (567,420) (649,353) (656,571)
Profit after taxation for the year - 412,228 1,444,239 1,789,308 2,347,910 2,717,728
Unappropriated profit -
brought forward - - 412,228 1,856,467 3,645,776 5,993,686
Unappropriated profit -
carried forward - 412,228 1,856,467 3,645,776 5,993,686 8,711,414

21. PROJECTED CASH FLOW STATEMENT
FOR THE YEAR ENDING JUNE 30
Year 1 Year 2 Year 3 Year 4 Year 5
All figure in $
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 580,603 1,962,699 2,356,728 2,997,263 3,374,298
Adjustments for:
Depreciation 177 2,101 16,376 14,732 13,253
Amortization of intangibles 21 21 21 21 21
Finance cost 3 11 4 - -
Operating cash flows before working capital changes 580,804 1,964,831 2,373,129 3,012,016 3,387,573
(Increase) / decrease in current assets:
Stores and spares (154) (123) (2,053) (466) (350)
Stock-in-trade (376,810) (41,747) (71,829) (45,541) (67,222)
Trade debts (320,290) (139,142) (127,633) (113,229) (158,449)
Advances and pre payments (275,748) (294,558) (53,856) (90,127) (7,939)
Increase / (decrease) in current liabilities:

22. PROJECTED CASH FLOW STATEMENT
FOR THE YEAR ENDING JUNE 30
Year 1 Year 2 Year 3 Year 4 Year 5
All figure in $
CASH FLOWS FROM INVESTING ACTIVITIES
Addition to property, plant and equipment (22,657) - (144,928) - -
Addition to intangibles (105) - - - -
Net cash used in investing activities
(B)
(22,762) - (144,928) - -
CASH FLOWS FROM FINANCING ACTIVITIES
Short term borrowings- Net - - - - -
Proceeds from paid-up capital 7,666 - - - -
Short term borrowings - - - - -
Proceeds /(payments) of long term borrowings 17,887 (49) (65) (16) 0
Net cash generated from / (used in) financing
activities ( C) 25,553 (49) (65) (16) 0
Net increase in cash and bank balance during the
year (A+B+C) 6,346 1,478,285 1,544,432 2,265,318 2,578,137
Cash and bank balance at the beginning of the year

23. RATIO ANALYSIS / GRAPHICAL
REPRESENTATIONS
The graphical presentation of the Project
is given hereunder. From the following
diagrams we can see that revenues as
well as profitability of the proposed
project are increasing over the period of
five years.

24. CURRENT RATIO
Year
1
Year
2
Year
3
Year
4
Year
5
Current Ratio
(times) 1.74 2.74 3.91 5.32 6.97
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Year 1 Year 2 Year 3 Year 4 Year 5 YEARS
The Current ratio shows a very favourable trend, the
Company will be able to fulfill it's short term
obligations without any financial difficulty.
Current ratio=Current Assets/Current liabilities
GROSS PROFIT
Year 1 Year 2 Year 3 Year 4 Year 5
Gross Profit
Margin (%)
24.20% 28.02% 27.28% 27.38% 27.21%
22.00%
23.00%
24.00%
25.00%
26.00%
27.00%
28.00%
29.00%
1 2 3 4 5 Years
The Company is in a good position and the percentage of
gross profit is steady.
(Gross profit ratio=Gross profit/Sale)

25. EARNING BEFORE INTEREST AND TAX
Year 1 Year 2 Year 3 Year 4 Year 5
Earning before interest and tax
(%)
19.48% 24.18% 23.57% 23.91% 23.82%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
Year 1
Year 2
Year 3
Year 4
Year 5
Earning before interest and tax (%)
NET PROFIT
Year 1 Year 2 Year 3 Year 4 Year 5
Net Profit Margin (%) 13.83% 17.79% 17.89% 18.73% 19.18%
This ratio shows that after deducting all expenses including taxes etc. the
Company will be having a handsome amount with them.
Net profit Margin% = Net profit/Sales
Earnings before interest and tax expense = ( Net profit _Interest expense + tax expense ) / Sales

26. RETURN ON INVESTMENT
Year 1 Year 2 Year 3 Year 4 Year 5
Return on
Investment (%)
41.14% 48.90% 36.65% 31.81% 26.69%
ROI is showing the overall effectiveness of the management in
producing profits from the available assets.
ROI=(Net profit/Total Assets)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
1 2 3 4 5
ReturnonInvestment
Years
RETURN ON EQUITY
Year 1 Year 2 Year 3 Year 4 Year 5
Return on
Equity
(%) 196.35% 126.46% 64.86% 48.64% 36.92%
196.35%
126.46%
64.86%
48.64%
36.92%
0% 100% 200% 300% 400% 500%
1
2
3
4
5
YEARS
Return on Equity
Return on equity % = Net income/ Average shareholders
equity)

27. Overview of JUICE Sector
 Agro climatic condition of Jordan ranging from tropical to temperate allow growing 21 different kind
of fruits of which apples, almonds, walnut, dates Juices, plums, citrus, mango, guava, Loquat, Litchi
and banana etc.; are relatively more common. JUICE (Prunus persica) is the most important among
the stone fruit. It is considered the native of china and probably developed in Persia.
 Fresh juice
 In Jordan Juice is one of the that drink which the recommended as per new provided by CNN that
Drive through the rolling countryside of northern Jordan, and you'll pass trucks piled high with the
season's harvest: great mounds of pomegranates from the city of Irbid, crates of freshly-picked
olives, juicy lemons and tender dates.
 Back in the cities, juice made from seasonal fruit is a favorite treat. Pomegranates are pressed by
hand, producing a brilliant red drink made slightly bitter by the white pith that surrounds the ruby-
colored flesh.
 When the sugarcane harvest is in, vendors stack great bundles of stalks on the sidewalk. Powerful
metal rollers produce lightly sweet, pale-green juice, which is served in heavy glass mugs topped
with a sugary froth. It's not just sugar water, though -- aficionados claim that fresh sugarcane juice
helps maintain a healthy gut.

28. Areas Under Tree Crops, Field Crops and Vegetables
In Dunum (1 dunum = 0.1 ha)
Total Area Irrigated Non-Irrigated
2010 2012 2014 2014 2014 2014 2014
Tree Crops 827,128 858,647 845,258 457,631 54% 387,627 46%
Field Crops 1,285,5681,285,5681,385,500 114,405 8% 1,271,095 92%
Vegetables 480,806 449,051 508,687 478,436 94% 30,251 6%
Total 2,593,5022,593,2662,739,4451,050,472 38.0% 1,688,973 62%

29. Supply calendar
 According to the Supply calendar (on the information provided by China sale analysis of
Jordan)
Due to the distinctive and diverse geographical climatic zones, Jordan produces vegetables
throughout the year; stone fruit and pome fruit (apples, pears) from as early as April to late
October, grapes from May and throughout the summer, bananas and citrus fruit in the
winter season, dates from July to November, pomegranate from as early as July, rain-fed
and irrigated olives in the season and medicinal herbs, both cultivated and wild, throughout
the year.

30. Existing Players in JUICE of Jordan’s main competitors with prices
Sr. No
Brand
Container capacity
(ml)
Price (fils)
Sr. No
Brand
Container capacity
(ml)
Price (fils)
1Cabri sun 211 311 14 Robenson 211 611
2 Cool aid 211 ,11 15 KDD 211 311
3
Hamood
a
211 311
16
Tropecan
a
211 311
4Hello kitty 211 3,1 17 Rani 241 3,1
5 Rabe’e 121 221 18 carolina 2,1 4,1
6 Carolina 125 200 19 Cezar 2,1 ,11
7 Sun top 12, 211 20 KDD 2,1 3,1
8 Danao 111 411 21 Sun top 2,1 311
9 Lacnor 111 3,1 22 tropicana 2,1 ,11
10 Rani 211 1,1 23 Lacnor 2,1 6,1
11 Farah 211 111 24 Froto 311 ,11
12 Rabe’e 21 311 25 Rabe’e 331 ,,1
13 Pfanner 211 ,11

31. SWOT ANALYSIS JUICE PROCESSING BUSINESS IN JORDAN
Strengths
• Abundant availability of Raw Material
• Uniqueness of JUICE Fruit
• Value Addition Potential
• Availability of markets local as well as
international because of best geographical
location of Jordan
• Cheap labour is available in overall Jordan
for fruit sector
Weaknesses
• Lack of awareness about pre and post harvest
management of fresh fruits
• Lack of adequate quality control and testing
protocols
• Direct marketing problems
• Bad infrastructure and absence of cold storage
• Huge wastage across the supply chain leads to
lower level of processing and hence low value
addition
Opportunities
• Increasing demand of fruit pulp
in local and international market
• Domestic competition level is
moderate for fresh fruit pulp
exports
• Future growth potential
Threats
• Lack of supplies of certified seeds for to
farmers for production of higher quality of
JUICE
• Absence of government support and rising
cost of inputs like electricity and fertilizers
• Competitiveness of Jordan’s export is further
weakened by inadequate branding and
marketing vis-a vis other countries
• competition from other JUICE pulp
producing countries