Salt production plant

Study request

Feasibility study of a salt production plant and the project: It is a factory that produces salt suitable for human and industrial consumption, as the salt is extracted directly from seawater.

Capital

rate of return

Recovery period Third year

Project Description

Feasibility study of a salt production plant and the project: It is a factory that produces salt suitable for human and industrial consumption, as the salt is extracted directly from seawater. <It is collected in basins and the factory produces packages suitable for human consumption, which are small-sized packages known in the market and supermarkets, in different sizes ranging from 250 g to 2 kg.<The production is done through modern and advanced machines to produce high-quality and healthy products. This comes through following quality methods and periodic follow-up of the products as they are used in different sectors.<Such as wholesale and retail stores, supermarkets, hypermarkets, restaurants, hotels and factories as it is an indispensable product.

Project Products

250g salt packs.
500g salt packs.
1000g salt packs.
2000g salt packs.

Why Mashroo3k ?

Mashroo3k has over 11 years of experience in preparing feasibility studies, conducting market research, and providing comprehensive consulting services.
Mashroo3k has offices in 7 international branches, located in Saudi Arabia, the UAE, Egypt, Qatar, Oman, Yemen, and Iraq, in addition to its agents in China, Singapore, and other countries.
Having delivered over 7,000 feasibility studies, Mashroo3k has helped thousands of clients achieve their investment goals.
Mashroo3k’s services are accredited and trusted by all financial institutions and funding entities across the Middle East.
The company’s geographic reach spans 35 countries across all continents.
Mashroo3k holds membership in over 100 prestigious international organizations specializing in market research and business management.
Its team consists of 350 consultants with deep expertise in promising economic sectors, ensuring tailored solutions and strategies that meet clients’ needs.
Mashroo3k is partnered with more than 10,200 suppliers across 22 countries, providing logistical support for projects, including production lines, raw materials, machinery, and equipment.
With an extensive database, Mashroo3k enhances the accuracy of its forecasts and analyses, strengthening its risk management capabilities.

Use of industrial technology.
Use of high quality raw materials.
The salt industry depends on experts and technicians.
Increase the efficiency of the mining sector’s contribution to GDP.
Availability of salt sources.

Executive Summary

About the project
Financial Indicators
Rationale for the project
Government investment incentives in the project field
Target Markets
Project indicators and final results

Study of project services/products

Project description and all its products/services.
Project advantages and production requirements.

Market size study.

Understanding distribution channels.
Consumer behavior, preferences, and tendencies.
Competitors’ products or services, along with their strengths and weaknesses.
Market nature and its characteristics.
The demand size for the offered product or service.
The available share of the target market.
The optimal marketing strategy.

Risk assessment study.

Risk identification.
The impact of risks on the project.
Risk prevention methods.

Technical study

A detailed description of the project’s products, expected production capacity, and determination of investment costs.
Determining the required electricity and water capacity.
Determining the project’s labor requirements.
Determining the project’s requirements.
Calculating construction and building costs.
Calculating the total capital
Determining the annual operating costs.
Determining the amount of working capital.

Financial study.

Total investment costs required for the project.
Organizing cash flow statements, income statements, and the balance sheet for the first ten years of operation.
Determine the expected annual revenues of the project in light of the specified operational capacities
The optimal financing structure for the project in light of investors’ capabilities and financing conditions.
The project’s financial indicators and sensitivity analysis.

Organizational and administrative study.

Project workforce.
Organizational structure.
Job responsibilities.

The GCC countries comprise 0.7% of the world’s population; however, they represent 3% of global spending on processed foods and beverages; amounting to 102 billion US dollars out of 3.4 trillion US dollars. From this, we conclude that the per capita share of food consumption in the region has increased and exceeded the global level of consumption. This is not surprising if we look closely; the population of the GCC countries now exceeds 58 million people, and there is an estimated 56.3% of this population; falling within the age group between (25 years – 54 years); and the food industries market is based on this important segment; as it is the most vibrant and youthful of all categories. Because the Kingdom of Saudi Arabia accounts for about 59.7% of the total population in all GCC countries; and because its share of the food and beverage market exceeds 53%, “Mashroo3k” Company decided to present indicators of this vital market in this blessed land; according to the latest statistics available to us:

until the end of the second quarter of 2021. The number of food product factories was estimated at 916 factories, and there were 249 factories under construction. As for beverage factories, their number was 209 factories, while the number of factories under construction was 71 factories.
The number of food product factories represents 11.1% of the total number of existing and producing factories (8258 factories), and beverage factories represent 2.5% of the total number of factories in the Kingdom.
The food and beverage market in Saudi Arabia was estimated to be worth approximately 168.8 billion SAR.
By the end of 2021, the consumption of food products in Saudi Arabia reached 221 billion SAR, reflecting a 6% growth rate.
According to global reports, the food consumption value in Saudi Arabia is estimated at $70 billion, which accounts for 60% of the total food consumption in the Gulf region.
The fast food market in Saudi Arabia is expected to reach $4.5 billion over the next three years.

The organic, healthy, and specialty food market in Saudi Arabia reached $27 billion, while the halal food market was valued at $6 billion.
Saudi Arabia’s food and beverage imports are estimated at approximately $14.5 billion annually.
In 2020. The operating expenses for food and beverage service activities were estimated at 34,032.10 million SAR, compared to 30,069.23 million SAR in 2018.
The operating revenues for food and beverage service activities were estimated at 61,557.77 million SAR in 2020, compared to 54,866.87 million SAR in 2018.
The operating expenses for food and beverage service activities are expected to reach 52,489.34 million SAR by 2027, while the operating revenues for the same sector are projected to reach 92,084.64 million SAR.
The total expected operating revenues for the food product manufacturing industry in Saudi Arabia by 2027 are estimated to reach 128,540.57 million SAR.