Feasibility Study of Establishing Dried Fruit and Agriculture Product Packaging Factory

Feasibility Study of Establishing Dried Fruit and Agriculture Product Packaging Factory

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Abstract:

Packaging is one of the most intriguing processes in industry, the more sensitive and
corruptible the products, the more important is the packaging. Our studies conclude
establishing packaging factory in Maku free-zone.

Iran’s Exchange relations with Europe, neighboring with Turkey, accessing large Geographic
area, the completion of two-year airport construction which has resulted in having
transportation facilities, export terminals, financial services and other transportation facilities
have attracted attentions for investment in this region.

Furthermore, other advantages of investing would be the existing facilities to build
greenhouse complexes, investment in the packaging industries and supplemental processing
industries and regions nonmetals mineral resources. Moreover, the capacity of industrial
development based on the supply chain in neighboring countries, especially turkey, 20-year
tax exemption from all activities and unrestricted partnership with foreign investors, 100%
foreign investment, exemption from customs duties to import raw materials and machinery
and government’s guarantee on foreign investment would all be advantages of investment in
this region.

Access to raw materials, inexpensive workforce and bordering with 3 countries (Turkey,
Armenia, and Azerbaijan) have given Maku a great potential for this business, so it helps
improving exports of goods to other countries. As the Azerbaijan province in Iran has 35 %
share of the market for the agriculture and dried fruit, establishing a packaging factory can be
profitable since the factory is very close to the production area and resources.

Maku free trade zone, is one of the seven trade zones in Iran which is located in the most
important corridors between Iran and European countries and the Middle East; it includes 3
provinces called Maku, Showt and Poldasht in the North-West of Iran.

Advantages of investment in Maku free zone:
- Bordering with 2 countries (Turkey and Nakhchivan republic) and proximity to
Armenia and Georgia
- Financial services from banks and insurance companies in both private and public
sector
- Inexpensive workforce
- Proximity to Bazargan customs as the greatest Land customs station in Iran
- Strategic location and access to international corridors
- Establishing and operating industries with potential to export goods

Proximity to raw materials, export market and being a free-trade zone are the most effectiveaspects in Maku. In contrast with high volume of agriculture production in Iran, there is lack
of sufficient packages for products and majority of the agro products are exported as bulk.
Further improvements of packaging industry can influence export of agro and dried fruit
market. So our target market for establishing a packaging factory can be the only
improvement of goods export.

Meanwhile, there are approximately 507 grain packaging factories with nominal capacity of
823.522 Tons, 463 nut packaging factories with nominal capacity of 511 thousand tons, and
34 dried fruit packaging factories with nominal capacity of 4.275 tons in Iran.