Rice bran oil production potential of Pakistan

Abid Butt, chief executive of e2e supply chain management, is an entrepreneur who has established Pakistan’s first rice bran oil mill.

Rice bran as it is called is a byproduct of rice milling process. Rice when converted from brown rice to white rice it gives rise to this byproduct. The bran is the outer coating of your everyday grain of rice, and is often removed during processing and used as animal feed - but a new study confirms it’s actually really nutritious.

Rice bran oil according to American Heart Association is the healthiest edible oil in the world. It’s per liter cost is equal to that of sunflower oil but it is comparatively healthier.

Many of the health benefits of bran can be utilized by extracting oil from it and using it for cooking purpose. The initiative by Mr. Butt may help Pakistanis make good use of the wasted byproduct. The plant according to him has the capacity of 10,000 tons and cost him around 1 billion rupees.

“The plant machinery cost me a little over Rs1 billion and has been imported from India — a leading country in rice bran oil technology. The production capacity of the plant is 10,000 tons.” says Mr. Butt.

Abid Butt intends to sell the oil to local edible oil companies for blending it with their products. But he also has an alternative of selling it by branding it themselves.

He says that as raw material is abundantly available locally, Government can reduce its edible oil import bill by millions of dollars.

As we know, the largest import of Pakistan after crude oil is edible oil. Pakistan spends around 2.7 billion dollars on import of edible oil annually.

Increasing edible oil production at home is a good option. Pakistan at present produces 6.7 million tons of rice annually and can reduce its import edible oil bill by around 510 million dollars by utilizing bran oil production potential.

In order to utilize full potential of bran oil technological barriers need to be overcome. Technological barriers include low shelf life of bran related products owing to presence of enzymes. Research may be under taken to enhance the shelf life of the oil. “Pakistan can gradually improve the efficiency of rice bran oil technology. We would like to get the support of Pakistani universities to improve the efficiency of this technology,” Butt said.

Rice bran which is used as low value animal feed or discarded despite the fact that it is rich in protein, healthy fats, dietary fibers and vitamins is going to be a rich source of essential nutrients for Pakistanis.

Cherat Cement announced expansion plan

Cherat Cement, on Monday, announced it would install a third cement production line at its existing site in Nowshera. Cement manufacturers are announcing expansion plans in the wake of growing cement demand.

CPEC is expected to generate additional cement demand of 1.5-3 million tons per annum

The new plant is expected to have an annual production capacity of 2.1 million tons, taking the company’s total output to 4.5 million tons a year. The company’s total production capacity is about 10% of the current installed production capacity in Pakistan.

The company was already working on its second production line, expected to have capacity 1.3 million tons. This plant is expected to come online in the second half of fiscal year 2016-17.

Cherat Cement Company Limited (CHCC) was established in 1981. CHCC started manufacturing, marketing and sale of Ordinary Portland Cement in 1985. At that time, the company had the production capacity of 1,100 tons per day, which was increased to 3,300 tons per day in 2005 after subsequent up gradations earlier.

The company supplies cement to the northern block; Punjab, KP, FATA and adjoining areas and exports its cement to Afghanistan and Indian Punjab. The company’s plant is strategically located, about 52 kilometers away from Peshawar, near the Pak Afghan border and this proximity to the border allows for lower distribution costs than its competitors.

Cherat Cement’s latest expansion plan will be entirely financed by debt, costing close to Rs13 billion, according to JS Research. This production line may become operational by year 2020. The company also intends to bring another Waste Heat Recovery along with the new line, according to the JS Research report.

The establishment of its first Waste Heat Recovery (WHR) in 2010, a Tyre Derived Fuel Processing Plant in 2012 and a Refuse Derived Fuel Processing Plant in 2013 helped company achieve fuel efficiency—now company is deriving more than one-third of its energy free of costs.                                                                                                            

Growing international demand for Paksitani halal food

Keeping in view the growing international halal food market, Fauji meat limited has set up 75 million USD halal abattoir and meat processing plant, in Karachi.  This 47 acre spread facility has daily production capacity of 100 ton meat, of which 85 tons would be beef, in both chilled and frozen categories.

Halal food is the one which is prepared and is hygienic, in accordance with the principles of Sharia.

The demand for halal products is growing at a 10.8% annually, and is expected to reach 3.7 trillion dollars till 2019. Halal food makes up the largest share of this halal products industry.

Pakistan, is ideally located, to take benefit of this opportunity as consumers in gulf countries have huge liking for Pakistani halal stuff, especially the meat.

With 2nd largest buffalo and 8th largest cattle herd, Pakistan is endowed with valuable live stock. In mutton category Pakistan has 4th largest goat herd and has 9th largest number of sheep in the world. India, situated at the border, has earned more than 4.7 billion dollars from exports of buffalo meat in the fiscal year ended in 2015.

FPCCI president Abdul Rauf Alam, while talking to a private newpaper, said that world leading suppliers for halal products including high quality meat, poultry, dairy products and other foods are Australia, Brazil, Canada, Indonesia, India, Malaysia, Philippines,  Thiland, New Zealand and United States. He further added that USA and Australia are biggest halal beef exporter while Brazil and France are the largest halal poultry meat exporter in the Middle East.

Thailand has become 5th largest global halal food producer.

With more than 700 billion dollar market size halal food is expected to attract 2 billion consumers, both Muslim and non-Muslim.

Global market size for halal food is more than 700 billion U.S. dollars

Businesses around the world have started producing halal food to reduce costs. The daily Mail online in this report said that many major Supermarket chains and restaurants, in U.K., sell halal meat to keep their costs low as it can be eaten by both Muslims and non-Muslims alike

Fauji meat is eyeing lucrative foreign markets but equally important is to market these branded and packaged products to domestic consumer as well. This will not only be good for Fuji meat in long term but also for Pakistan’s halal meat industry.

Foreign investment in Pakistan: boon or bane?

In the last couple of days, Pakistan has witnessed an increase in foreign investment. Many local companies were acquired by foreign multinationals. Dawlance, Pakistan’s white goods manufacturer was acquired by Turkish group Arçelik . Furthermore, in the same week a Dutch based dairy cooperative FrieslandCampina acquired stakes in Engro for around $460 million.

This shows that international investors are viewing Pakistan as a growing market. Its huge population provides huge consumer base. The rise in middle class along with young population makes it attractive location for investment.  Many European countries are having population as much as Pakistan has graduates.

But is there any benefit to the nation of these huge investments from multinationals. In a nutshell we would say yes. But on a deep analysis we would say it is hard to say anything precise unless we take into account other factors.

Let us assume that Turkish group would enhance the quality of the products, manufactured by Dawlance, and would make them attractive to export markets. Definitely, in this case it would be good for Pakistan. Multinational companies have huge research and development departments with billions of dollars in budget which helps them in developing new and better products. Small companies like local ones cannot expend that much on research and development. Furthermore, small companies have issues with protecting patent rights. Hence, from this particular angle it is good that foreign companies are making inroads into Pakistani market.

With better quality and increased foreign clients’ satisfaction, country would be able to earn foreign exchange. This would also help Pakistan to move from exporter of low-tech to exporter of high-tech products.

The ability of multinationals to get a better deal from Govt. in matters of tax rebates is another thing to ponder. In countries like Pakistan, Govt. rules are more favorable to foreign big investors rather than local small investors. The exemption of duties and taxes extended to Chinese companies working on CPEC is one such example.

Exemptions in taxes make it more likely for these companies to earn heavy profits and pay high salaries to its employee. This would mean more and high paying jobs for locals as well as better employee retention for the multinational companies.

But there are more cases in which these companies hire foreign people than local ones. This would mean snatching jobs which could be provided by local companies to local people. Moreover, huge portion of profit earned, through getting tax rebates, by these companies is repatriated back to their country of origin.

Thus foreign investment is good for host country if it leads to transfer of technology; increase in exports, provides employment to local ones, pays taxes and duties to host country Govt. and improves quality of manufactured goods.

Pakistan's Logistic Giant

Agriculture sector contributes a lion share in Pakistan’s GDP. But presently Pakistan’s 40% agricultural produce is lost because of bad logistic infrastructure. And this company is experimenting with ways to provide logistic services to Pakistani agriculture sector with only three to four percent loss.

Starting from four employees, it now has over 400 people as its employs. With 700 customers including many national and multinational companies, it takes care of whole process of logistics including shipping, trucking and warehousing.

The company was started by Abid Butt in 2005, who earlier worked for a French logistic giant Geodis. At that time, in Pakistan, no one was available to provide end to end solution, so initial idea was to provide all services including trucking, warehousing and shipping etc by the same company. This led the company’s name being e2e supply chain management (pvt.) ltd. i.e. end to end supply chain management (pvt.) ltd. In 2011 butt’s company had around 76 million us dollars in annual revenues. The company grew 1918% from 2008 to 2010 and was nominated as Pakistan’s fastest growing private company by AllWorld network in 2012. Initial investment in e2e supply chain management (Pvt.) ltd. was arranged by him and his friend and was 1 million rupees (nearly 20000 us dollars at that time) each.

Company’s founder Abed butt is a LUMS graduate with a major in economics and also holds an MBA from INSEAD. After graduating from LUMS, Pakistan’s leading business school, Abid worked for Maersk. Later on he joined Geodis, and was posted in Paris.

He started his business from Karachi, Pakistan’s industrial and commercial heart. He started his entrepreneurial career by resigning from Geodis, risking a steady career growth. At that time he was making 15000 euros per month.

Related Links

allworld

money matters jang

Waste Management entrepreneur

Pakistan generates nearly 56000 tons of solid waste daily in urban areas only, and it is increasing at the rate of 2.4% annually. This solid waste is an opportunity for entrepreneurs.

This waste can be recycled, used to produce liquefied petroleum products, or electricity.  There are advanced waste-to-energy conversion technologies that are commercially viable and sustainable. Presently Fauji Cement Company is using municipal solid waste to produce electricity.

Garbage is not only a cheap source of producing electricity but it can also be used to produce fertilizers. It is profitably being converted to fertilizer by an entrepreneur from Lahore.

Asif Farooqi is a green entrepreneur. He is CEO of waste buster, a waste management company. He is the pioneer of the waste management business in Pakistan.

Some years earlier he started with 6 donkey carts that collected waste from house to house. Now his business waste buster has 200 garbage collection vehicle and employees 3000 people. His business is not only about making money but also conserving environment as well.

Mr. Farooqi informed in a report of al Jazeera that what started from six donkey carts has become a business employing three thousand people and all this money is generated from waste. His men collect garbage and other waste from narrow streets of Lahore and deliver to factory through garbage collection vehicles. His waste management plants separate garbage into organic, plastic and metals to produce liquefied petroleum products, and fertilizers for farmlands. 

Asif Farooqi holds masters degree in environmental engineering from northwestern university, USA with specialization in waste management. He has more than 20 years of experience in the field of environmental engineering. His company waste buster is based in Lahore. Many contracts have been won by the waste busters in Karachi and other cities of Pakistan.

 related links.

dawn

south asia investor review

al Jazeera

Saltflow, Inc.

Saltflow, inc. is a conglomerate and has stakes in diverse fields. Saltflow was founded in 2005 by Arif Ayub, a Pakistani national. This group is based in Dubai, UAE.

Saltflow has annual revenues in excess of $570 million annually. Group is involved in a number of fields including construction industry, trade and retail industry, and technology industry. Group has expanded its presence to North America through acquisitions.

Group’s technology business is heavily centered in Russia and controls internet companies primarily targeted at mobile and financials solutions for consumers.

In North America group has stakes in retail and trade sector. Group has invested huge amounts in retail brands and is expecting good returns.

Group also has stakes in construction industry.

Presently group provides employment to more than 500 people.

related link 

Saltflow, Inc.

Netsol, software company from Pakistan

NetSol is a Pakistani software company. It was a small company started by three brothers in Lahore with 5 people. But now it has been registered at NASDAQ USA and employees more than 800 people. NetSol technologies is only company in Pakistan to have focused on certification. It is one of the hundred companies which have acquired CMMI level 5 certification. This is one of the reasons of its success because consumer is short of time and can trust the product developed by certificate companies.

NetSol technologies begin its operation in 1995 and got a major break through in 1996 when it got first major offshore contract with Mercedes Benz, Thailand. Since then it is receiving orders from many international clients.

Its product achieved world wide acclaim and some of its products are NetSol financial suit, e-CIB (electronic credit information bureau), etc. NetSol technologies has offices in different countries including United States, United Kingdom and Australia. It's headquarter is in California USA. In 2008 it has earned revenue of 37 million us dollars.

related link 

wikipedia

propakistani