Business in CHEMICALS Sector

Small or medium sized business in Chemicals sector offers many opportunities in Pakistan. But it is important that those who want to select & pursue such business should have some knowledge, experience and most importantly passion for the Chemicals sector. Otherwise, the probability for failure may be high.

Below are the listed businesses in chemicals sector.  SMEDA has also made very good pre-feasibility studies on this sector.

For the complete detailed pre-feasibility reports, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link:  SMEDA Registration

Below are the summarized versions of the pre-feasibility reports by SMEDA on Business in Chemicals sector for you to get an idea before you download the full version.

1 - Essential Oils Distillation Unit (Basil & Cornmint) [Jun-2010]

Region: Punjab
Investment Size: PKR Between 2-5 Million

This project is about to produce essential oil through steam distillation process from 'Basil' (Ocimum Basilicum), also commonly known as 'Tulsi'. As essential oils extraction is a relatively young sector in Pakistan, we recommend that steam distillation process should be used in the beginning, which can be locally fabricated at affordable cost. As the sector would develop other more sophisticated methods can be used and new units can be brought in. As far as selecting the botanical herbs are concerned, one name has been selected, the herb is 'Basil' (Ocimum Basilicum), also commonly known as 'Tulsi'. This herb has been selected because its essential oil is in great demand around the world and production of A-Grade essential oil can be obtained in Pakistan. Basil (Ocimum Basilicum) is one of the most famous herbs belonging to the family Lamiaccae. It is a native of Africa, India and Asia, cultivated in temperate climate throughout the world with about 150 varieties. In India and Pakistan, it is called “Tulsi”. Pakistan is blessed with an excellent climate and agriculture land quality. Both these factors contribute to the opportunity of production of highest-grade essential oils in Pakistan. The local climatic and soil conditions alter the chemotype (chemical composition) of essential oil in plants and make this essential oil most desirable The essential oil distillation unit needs a total investment of about Rs. 3.457 million. Projected IRR, Net Present Value and Payback of this project are 31%, Rs 1,939,240 and 3.9 years respectively. In this pre-feasibility study a complete steam distillation unit is proposed having a 'still', which has a capacity of holding one ton of herbal material for distillation at one time. Besides the steam distillation unit, a minimum 25 acres of land adjacent to the distillation unit would be required to grow the herb from which essential oil is to be extracted. At least 25 acres of land is required to grow the herb in such a quantity, which can be used to feed the distillation unit on constant basis at harvesting time.

2 - Oxygen Gas Producing Plant [May-2012]

Region: Punjab
Investment Size: PKR More and Above 50 Million

Oxygen Gas Manufacturing Unit is a project of chemicals industry. The proposed unit would produce gaseous oxygen for medical and industrial use. The project is proposed to be set up in Lahore. Oxygen is used in hospitals, chemical processes, general engineering, fabrication, steel manufacturing, motorcycle and steel cutting / welding industries. Oxygen has mainly three sectors in which the application of this product is going on. First and most important is healthcare, all hospitals are involved in this respect. The second biggest sector concerned with oxygen is the ship-breaking industry, which has a potential usage for oxygen. The third sector is that of the processes industry, which includes steel melting. These three sectors are very lively all over Pakistan at present. With the growing steel, ship breaking and related industries as well as the growing need of hospitals, the demand for oxygen is increasing, offering a good investment opportunity. The total initial cost for setting up the unit is estimated at Rs. 99.325 million. The project is proposed to be financed through 50% debt and 50% equity. The project NPV is projected around Rs. 74.382 million, with an IRR of 29% and a payback period of 4.65 years. The legal business status of this project is proposed as ‘Sole Proprietorship’. The total capacity of the Oxygen Manufacturing unit is 2,160,000 m3 of Gaseous Oxygen per year. The project would initially run at 50% production capacity in year 1 and eventually reach 100% production capacity in year 6. The unit would operate for 24 hours per day at 100% capacity, working in 3 shifts of 8 hours each



For the complete detailed pre-feasibility reports, you will first have to register with SMEDA and then you can download it FREE.

For registration, you may click the link:  SMEDA Registration



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