Fruit Processing Plant – Investor Documentation – Ghana

BUSINESS PLANNING | INVESTOR DOCUMENTATION | STRATEGIC CONSULTING | MARKET RESEARCH

Ruskin Felix Consulting LLC partnered and created a comprehensive business plan to understand the fruit processing industry in order to set up a fruit processing plant. We assisted them in understanding the global industry, regional industry and the market size. We gave them a brief of the market dynamics, growth drivers, industry challenges, industry opportunities, demand analysis, and the financial viability of the plant by providing them with the cost, revenue, and summary projections. 

The main objective of the business is to set up a fruit processing plan with a target focus on Ghana in West Africa. The plan analyses the opportunities and challenges in setting up the plant. Ghana is a commercial producer of tropical fruits, with the Ashanti Region producing the majority of the country’s citrus. The United Kingdom alone imports nearly 2,000 tons of fruits from Ghana each year, according to estimates. Ghana produced 829,554 tons of citrus fruit in 2019. Ghana’s citrus fruit production climbed from 155,417 tons in 1970 to 829,554 tons in 2019, expanding at a 9.14 percent yearly rate. In Ghana, oranges are the most common citrus fruit, but limes, lemons, and tangerines are also grown. The Late Valencia orange type is the most widespread, accounting for 85–90 percent of all citrus orchards. Late Valencia, Sweet Mediterranean, and the local variety are the three most popular cultivars for processing, and they are collected twice a year in the peak and minor seasons. This allows for the introduction of early varieties onto the market. 

Fruit juice intake is highly common in Ghana. This is primarily due to the rise of a health-conscious middle class. According to the “Reviving a Dying Industry Report,” Ghanaians consume 10.4 million liters of fruit juice each year. Imports are now meeting most of this demand. Local production to round out the picture Blue Skies Limited and Papso Ghana Limited are two of Ghana’s largest producers. The temperature and soil composition of Ghana is conducive to the cultivation of tropical fruits. Mangoes, pineapples, citrus fruits, and coconuts are just a few of the fruits grown in the country.

The project has a NPV of $638K over the first 5 years and an IRR of 89.7% throughout the cashflows of the project. The overall valuation of the business on a Post money 5-year Multiple is $3.64 Million. With a 10% range deviation, the valuation range is $3.27 million – $4 million. The overall funds needed for the business are $790k. This fund will be applied in the setup cost and initial operational costs.

With a business having lesser capital outlay and good visibility, the project is a feasible project both in terms of its projected performance and its overall cash flows and IRR. The upfront cost will be mostly utilized for setup and working capital expenses of the company. With a 5 Year Forward, Post money Valuation of $3.64 Million, the business is viable and profitable for all investors coming on board.

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