Pineapple Wine

ADDIS ABABA INSTITUTE OF TECHNOLOGY
Masters of science in FOOD ENGINEERING

Course Title:- Industrial Management
Project Title:- Feasibility study on white wine production from pineapple
Prepared by ID No
1. Bantalem Ambachew……………………GSR/7696/11
2. Gizachew Demoze……………………….GSR/4108/11
3. Mengisst Kassaw………………………...GSR/3119/11
4. Samuel Abayneh………………………....GSR/5188/11
Submitted to: - Eng. Lelissa Daba (Ass. Profeser)

Submission Date: 28th Jan. 2019
Addis Ababa University Institute of Technology
ACKNOWLEDGEMENT
First of all we would like to thanks the almighty GOD who helped us to complete this
project work to be possible. Next we would like to say thanks our instructor Eng. Lelissa
Daba (Ass. profeser) he gives us his unlimited knowledge to complete this project.
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Table of content
Contents Page
ACKNOWLEDGEMENT ............................................................................................................... I
LIST OF TABLE ........................................................................................................................... V
LIST OF FIGURE......................................................................................................................... VI
Executive Summary ...................................................................................................................... VI
LIST OF ABBREVIATIONS ...................................................................................................... VII
CHAPTER ONE ............................................................................................................................. 1
1. Introduction ................................................................................................................................ 1
1.1. Background ....................................................................................................................... 1
1.2. Statement of the problem ..................................................................................................... 2
1.3. Objectives of the Study ........................................................................................................ 3
1.3.1. General Objective .......................................................................................................... 3
1.3.2. Specific Objectives ........................................................................................................ 3
1.4. Significance of the project.................................................................................................... 3
1.5. Scope of the study ................................................................................................................ 3
1.6. Limitations ........................................................................................................................... 3
CHAPTER TWO ............................................................................................................................ 4
2. Literature review ......................................................................................................................... 4
2.1. History of wine ..................................................................................................................... 4
2.2. Wines of African origin........................................................................................................ 5
2.3. History of wine in Ethiopia .................................................................................................. 5
2.4. Wine Classifications............................................................................................................. 6
2.4.1. Chemistry of wine ......................................................................................................... 7
2.4.2. Characteristics of wine .................................................................................................. 7
2.4.3. Uses of wine .................................................................................................................. 8
2.5. Raw materials and supplies .................................................................................................. 8
2.5.1. Morphology of Pineapple .............................................................................................. 8
2.5.2. Climatic Requirement of Pineapple ............................................................................... 8
2.5.3. Variety of Pineapple cultivated ..................................................................................... 9
2.6. Classification of raw materials and supplies based on varieties .......................................... 9
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2.6.1. Specification of requirements ...................................................................................... 10

2.7 Raw material availability in Ethiopia .................................................................................. 10
CHAPTER THREE ...................................................................................................................... 11
3. Market study ............................................................................................................................ 11
3.1. Market Study ...................................................................................................................... 11
3.1.1. Statistical data of wine consumption in Ethiopia ........................................................ 11
3.2. Projecting the demand of wine in Ethiopia ........................................................................ 12
3.3. Determining the Plant Capacity and Production program ................................................. 12
3.4 Wine producing companies in Ethiopia .............................................................................. 13
3.5 Targeted Groups .................................................................................................................. 13
3.6 Pricing and Distribution ...................................................................................................... 14
CHAPTER FOUR ......................................................................................................................... 15
4. Engineering and technology ..................................................................................................... 15
4.1. Technology ......................................................................................................................... 15
4.1.1. Engineering .................................................................................................................. 15
4.2. General process flow sheet of pineapple wine production ................................................. 16
4.3. General process flow diagram of wine production from pineapple ................................... 17
4.4. Process Descriptions of Wine Production from Pineapple Fruit........................................ 18
CHAPTER FIVE .......................................................................................................................... 20
5. Material balance, Energy balance and Equipment sizing ...................................................... 20
5.1 Material Balance ................................................................................................................. 20
5.1.1. Material Balance on Peeler .......................................................................................... 20
5.1.2. Mass Balance on juicer ................................................................................................ 21
5.1.3. Mass balance on the fermenter .................................................................................... 21
5.1.4. Mass Balance on filtration ........................................................................................... 22
5.2. Energy balance in the juice heater...................................................................................... 22
5.3 Equipment Sizing and Specification ................................................................................... 23
CHAPTER SIX ............................................................................................................................. 25
6. Economic Analysis ................................................................................................................... 25
6.1. Purchased Equipment ......................................................................................................... 25
6.2. Fixed capital investment estimation ................................................................................... 26
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6.2.1. Fixed capital investment values for direct and indirect cost ....................................... 26
6.3. Total product cost estimation ............................................................................................. 30
6.3.1. Manufacturing cost ...................................................................................................... 30
6.3.2. General expense ........................................................................................................... 32
6.4. Project evaluation ............................................................................................................... 33
6.5. Rate on investment (ROI) .................................................................................................. 33
6.6. Break-even analysis............................................................................................................ 33
6.7. Discount cash flow rate of return (DCSRR or IRR) .......................................................... 34
6.7.1. Profitability analysis .................................................................................................... 35
6.7.2. Payback period ............................................................................................................ 35
CHAPTER SEVEN ...................................................................................................................... 37
7. Plant Siting and Location .......................................................................................................... 37
7.1. Environmental impact assessment ..................................................................................... 38
CHAPTER EIGHT ....................................................................................................................... 39
8. Conclusion and Recommendation ............................................................................................ 39
8.1. Conclusion.......................................................................................................................... 39
8.2. Recommendation ................................................................................................................ 40
8.3. Plant layout of pineapple wine production ......................................................................... 41
Reference ...................................................................................................................................... 42
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LIST OF TABLE
TABLE 1 CONSUMPTION OF WINE (HECTO LITERS) ......................................................................... 11
TABLE 2 PROJECTED DEMAND OF WINE AND CAMPAGEN IN (HECTO LITERS)................................. 12
TABLE 3 PURCHASED EQUIPMENT COST ........................................................................................ 26
TABLE 4 DIRECT COST ................................................................................................................... 28
TABLE 5 INDIRECT COST ................................................................................................................ 29
TABLE 6 DIRECT LABOR COST (DLC) ............................................................................................ 30
TABLE 7 INDIRECT LABOR COST (ILC) .......................................................................................... 31
TABLE 8 RAW MATERIAL COST WITH TRANSPORTATION................................................................ 32
TABLE 9 DISCOUNT CASH FLOW CALCULATION ............................................................................ 35
TABLE 10 PAYBACK PERIOD CALCULATION ................................................................................... 36
TABLE 11 DISCOUNT CASH FLOW RATE OF RETURN (DCSRR OR IRR) ........................................ 36
TABLE 12 RANKING OF POSSIBLE LOCATIONS BASED ON VARIOUS PARAMETERS ........................... 37
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LIST OF FIGURE
FIGURE 1 PROCESS FLOW SHEET OF WHITE WINE PRODUCTION FROM PINEAPPLE(SOURCE USING
EDRAW MAX).......................................................................................................................... 16
FIGURE 2 PROCESS FLOW DIAGRAMME OF WHITE WINE PRODUCTION FROM PINEAPPLE ................. 17
FIGURE 3 PLANT LAY OUT OF WINERY ........................................................................................... 41
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Executive Summary
This feasibility study envisages the establishment of a plant for the production of white wine
with a capacity of 77526.8 hectoliter/year of white wine. This will enable to reduce millions of
birr annually which could have been allocated for importation of wine and also its marketing will
create employment opportunities for more than 200 employees both skilled and un skilled
persons. The net present value is positive and the net present value ratio is greater than one the
project is acceptable and viable for implementation. Moreover, the payback period of only 2.435
years apparently minimizes any risk in regaining/recouping the initial investment.
The most critical determinants of the viability of the project are NPV and PI which in this case
are adequate to avoid any doubts about the project‟s viability. However, since the BEP is at 30%
leaving safety margin for capacity utilization, there is certainty of operating above 30%
throughout the project life and no risks associated as a result. NPV and PI are good indicators
only if the assumptions made for investment and operation are also good. Therefore, the project
is feasible.
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LIST OF ABBREVIATIONS
DCFRR - Discount cash flow rate of return
FCI - Fixed capital investment
MA - mass of additives
MED - mas of edible part of pineapple
MFP - mass of fresh pineapple
MFW - mass of fermented wine
MJ - mass of juice
MNW- mass of new wine
MUD- mass of unedible part of pineapple
MW – mass of water
NPV- Net present value
ROI - Rate on investment
TCI - Total capital investment
NPVR – Net present value ratio
PI – Profitability Index
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CHAPTER ONE
1. Introduction
1.1. Background
This study work is conduct on production of white wine from pineapple fruit. Wine is one of the oldest
fermented alcoholic beverages in the world, which is defined as the product of fermenting fruit like grape,
pineapple, antis, blaming, banana, mango, and other fruit juice with yeasts. The term “wine “is also used
loosely to refer to alcoholic beverages where other fruits and even grains are used as fermentation
substrates, giving them so-called names as “fruit wine” or “rice wine”. Wine is one of the most
recognizable high value added products from fruits. It can also be used as a substrate for the manufacture
of vinegar, a by-product of wine manufacture (Okeke, et al. 2015).Wine manufacture is challenging in
which marketable product can be obtained, but the processes involved in its production are relatively
straight forward highly acceptable wines can be made practically from all fruits and it can be fermented
with yeast that occurs naturally in grape and in other countries where grape is not produced, emphasis is
usually placed on other fruits for wine making (Ronald 2008).There are some soft fruits from both
temperate and tropical regions whose pigment stability and flavor profiles match those of any wine from
grapes, but suffer from the lack of intensive research and development given to grape wine. Reports on
tropical fruit wines have been mainly on exotic species such as pineapple, banana citrus, mango, pawpaw,
apple, strawberries etc (Okeke, et al. 2015). Pineapples are an important staple starchy food. It is a
seasonal and highly perishable fruit, which can be available all year round. The large quantity of
pineapple and plantains provides the potential for industrial use. In addition, any application to produce a
marketable, value-added product will improve pineapple-farming economies and eliminate the large
environmental problem presented by pineapple waste. Pineapple could then compete in the market, either
as pineapple juice or as mixtures with other juices because of its flavor and aroma (Ronald 2008).
Pineapple (Ananascomosus) belonging to the Bromeliaceous family is grown in different parts of
Ethiopia for the local market and it used as a fruit crop has a lot of economic, nutritional, medicinal and
industrial importance. pineapple as food for human consumption contains about 81.2-86.2%
moisture, 13-19% total solids of which sucrose, glucose and fructose are the main components.
Feasibility Study on White wine production Page 1

1.2. Statement of the problem

Most of the time wine is produced from grape. But grape grown in limited area of the world or agro
ecological and in addition to it is seasonal. Due to this reason there is a lack of wine for the matter of
insufficient availability of raw materials or grape. At this time excess pineapple is produced especially
high land area in Ethiopia, but this excess product is use only for home consumption not used for
industrial process. Due to this the habits of most of the peoples use pineapple as a source of food without
industrial application. Therefore, the studies is depending on the production of white wine from
pineapple and improve the application of pineapple in beverage industry to encourage the knowledge for
the advantage of this starch source to wine industry. The price of grape is increased from year to year
and low production of wine due to environmental factors and adulteration which causes negative
consequences for Ethiopian wine industries. Additionally, the most parts in Ethiopian the weather
condition is cold and grape growth in lowlands. Therefore, this study deals with need to pineapple as the
substitute for grape and increasing the market demand of pineapple, but Ethiopia has a good agro -
ecological for pineapple production for year round. Therefore, additional feedstock is needed to
produce wine throughout the year, so pineapple is the one, which can reduce the scarcity of wine in the
country.

1.3. Objectives of the Study

1.3.1. General Objective
The main objective of this project work is to do feasibility study on production of white wine from
pineapple fruit.
1.3.2. Specific Objectives
 To develop production process of wine from pineapple fruit
 To perform material and energy balance
 To determine the size of major equipment‟s
.
1.4. Significance of the project
 To substitute raw material of grip fruit by raw material of pineapple in order to get alternative
product of wine.
 To increasing shelf life of pineapple by converting in terms of wine product.
 To open eye for farther research work in the area.
 To create job opportunities for the employer.
 To maintain the highest ethical standards in the conduct of the business.
1.5. Scope of the study
The scope of this project is feasibility study on production of white wine from pineapple. The
preliminary economic analysis and environmental consideration of the production of wine plant, to
determine the size of some major equipment‟s for which used to produce wine and also consider
conservation of environmental sustainability by using appropriate production systems. We also determine
the viability of the project, organizational structure of the company and to develop the production process
of the plant are the main task of the study.
1.6. Limitations
During the study work, problems were faced that we did not know physical and chemical characteristics
of the product, because of we have not done a laboratory work.

CHAPTER TWO
2. Literature review
2.1. History of wine
Wine takes its name from the old English word win, which is pronounced wean, which in turn is based on
the Latin word vinum. It has an archeological record dating back more than 7.5 thousand years. The
earliest suspected wine residues come from the early to mid-fifth millennium B.C. Hajji Firuz Tepe, in the
northern Zagros Mountains of Iran. Evidence from Neolithic pottery from Georgia suggests that
contemporaneous wine production was dispersed throughout the region. Older examples of fermented
beverages have been discovered, but they appear to have been produced from rice, honey, and fruit
(hawthorn and/or grape). Such beverages were being produced in China (Ronald 2008). The first
unequivocal evidence of intentional wine making appears in the representations of wine presses from the
reign of Udimu (Egypt), some 5000 years ago, southern Caucasia. This area includes parts of present-day
northwestern Turkey, northern Iraq, Azerbaijan, and Georgia (Ronald 2008). The ancient world earliest
piece of solid evidence is a wine stain found in Iran on a Persian amphora dated around 3500BC, earliest
mention around the Mediterranean is around 1500B.C by the Greeks & Phoenicians who colonized this
whole region, the Romans domesticated it and extended its growth throughout Europe, from 5th century
they left the foundations for the famous French vineyards of the modern world (James 2010). The middle
ages:-the medieval period rises, the Church was repository of skills of civilization in the dark ages, monks
understood that the slopes of hills, were better locations for vineyards, they developed the art of selecting
the vine Stock to suit the ground conditions, (the greatest oenologist Benedictine Monk Dom Perignon
although blind while based at Haut Villiers Abbey perfects (Champagne) luxurious, the aristocracy would
beg for it in this period. Cultivation of the Vine helps to provide sustainable economic stability for many
countries (Boulton and L.F. Bisson 1996). The 17th century onwards, Change in tastes chocolate (Central
America), coffee (Arabia) tea (China). These new beverages all challenged wine and it needed change.
The drive for quality and innovation in wine begins and into the 20th century and with the advances
brought about through the industrial revolution and scientific discoveries wine flourishes (Johnson, 2003).
Wine probably appeared in Europe at about 4500BC in what is now Bulgaria, and Greece, and was very
common in ancient Greece, Thrace and Rome.
Wine has also played an important role in religion throughout history. The Greek god Dionysus and the
Roman equivalent Bacchus represented wine, and the drink is also used in Catholic Eucharistic
ceremonies and the Jewish Kiddush. Most commercially produced wines are usually made from
fermented grapes; this fermentation process is not done by introducing any chemicals or sugar but by
adding different species of yeast to the crushed grapes. Yeast has the capability of converting grapes into
an alcoholic compound and removing the sugar content in it for the production of different types of wines.

Sometimes wines are produced from different types of fruits like; Paw-Paw, mango, Pineapple, Banana,
Lemon, Watermelon etc. here the wine so produced bears the name of the fruit or fruit mixture used in its
production. Today a variety of vine is found growing all over the world due to the wide variety of
climates. The vitisvinifera species is the primary species in making most of the wines. New routes have
been established to the wine industry due to the varieties and vintages that come from all over the world.
Due to the captivating history of the wine and profound interest in their wine France novices and
connoisseurs like in searching the perfect taste of the wine. Certainly, a wine is available for everyone in
the world (Okeke, et al. 2015).
2.2. Wines of African origin

In nearly all the areas of the world, some type of alcoholic beverages native to its origin is consumed.
The traditional alcoholic beverages of tropical Africa are produced in small holdings and can be divided
roughly into;
 The Palm wine produced in the rain forest zone.
 The beer made from cereals in the grassland notably sorghum and to lesser extent maize and
wheat.
 The lesser beverage food in both regions is made from a variety of substrates especially bananas
and honey.
The traditional alcoholic beverage of tropical Africa includes palm wines which are produced from saps
of palms. Studied the micro flora of Nigeria palm saps and reported that it is a good source of yeast as
well as bacteria and moulds. Recent investigations have shown that yeast strain (Saccharomyces
cerevisiae) from fresh palm wine can be us in the production of acceptable wines from tropical fruits
(Faparunsi, Olofinboba and Ekundayo 1973). Tej is another traditional alcoholic beverage also known as
mead (that is a wine made by fermenting honey) of Ethiopian origin (Okafor 1972). Few tropical fruits
already used for wine are citrus, pineapple, mango, apple, banana, etc. and the resultant wines are
normally named after the fruit from which they are produced (for example, banana wine) and generally
known as fruit wine. Others such as barley wine and rice wine(that is, sake), are made from starch-based
materials and resemble beer and spirit more than wine while ginger wine is fortified with brandy (Okafor.
1978). The techniques used in production of wines from these tropical fruits are similar to those of grape
wine production which includes; pressing out the juice, fermenting, maturing and bottling (Okafor. 1978).
2.3. History of wine in Ethiopia

Ethiopia is among the lesser known non-traditional wine producing counties. It is rare to open a wine
bottle and reading on the label produced in Ethiopia. Yet Ethiopia has a tradition of wine making that
stretches unbroken to the reign of the Queen of Sheba. Traditionally, Ethiopia has been making a local

wine called tedj, a type of honey-wine flavoured with gersho leaves, that are similar to hops. However,
this ancient wine making tradition is gradually being taken over by the modern form of wine-making, and
some high-quality wines are being produced in the country. Ethiopia is growing its own grapes and
producing its own signature wine. Due to the proximity to the equator, it is even possible to make two
harvests per year Vineyards established near Addis Ababa and in the south east by Italian troops who
occupied part of the country from 1936 to 1941 were later nationalized, then privatized and a few large
producers have entered the scene producing serious wine. It has a great climate and it is not too hot. Wine
experts say parts of Ethiopia's diverse landscape, which includes high plateau and verdant valleys as well
as six climatic zones, are perfect for grape growing. There are only two local producers, Castel, the
French beverage player and Awash Winery, which has Live Aid founder Bob Geldof as a director. The
Castel Group is one of the world's biggest producers of wines and beers and in 2014 produced its first
Ethiopian Rift Valley wine.
2.4. Wine Classifications
The primary categories of wine are table wines, fortified wines, and sparkling wines. This classification
depends on the techniques of production. Wine making is called Enology (or oenology), from the Greek
words for wine and study. The term vintage signifies a single season's wine production, usually referring
to the specific location in which a particular wine is produced (Richard, Ellen and Sally 2002).
A. Red Wine
Wine made with black grapes. These can range from light to dark and bone-dry to sweet.
B. White Wine
Wine produced from green and sometimes black grapes. Flavors span from rich, creamy to light, and
zesty. Pearson, 1970 reported in his studies that there are different types of wines and they include
fruit wines, fortified wines, table wines and sparkling wine.
C. Table wines
It is also called still or natural wines, table wines are made from juice that is pressed from the grape.
The juice is allowed to ferment naturally, sometimes with the addition of controlled amounts of sugar
and yeast. Table wines come in three basic colors: white (often yellow to golden), red, or rose (a pale
pink). They range in taste from sweet to very dry, without being bitter. Alcohol content varies from 7
to 15 percent. Table wines account for the bulk of the world's wine production (Richard, Ellen and
Sally 2002).
D. Fortified wines
These wines receive an extra dosage of alcohol, usually a grape brandy, at some point in their production.
The alcohol content of fortified wines is higher than that of table wines, ranging from 14 to 23 percent.
Colors may be white, amber, bright red, or dark red. Sherry is the best known and most popular of the

fortified wines. The flavor of sherry ranges from very sweet to very dry, with several intermediate
varieties.
E. Sparkling wines
The best-known sparkling wine is champagne, named from the region of France where it was first made
in the 18th century by a Benedictine monk named Dom Pierre Perignon. Asti Spumante is an Italian
sparkling wine. Sparkling wines are usually white, but may be red or rose, and have alcohol content
similar to table wines. An excess of carbon dioxide is what gives them their effervescence, or bubbly
quality. Carbon dioxide is produced in the fermentation of all wines. Sparkling wines, however, go
through a double fermentation, the second of which takes place in the bottle. Sugar and yeast are added in
the second fermentation to produce carbon dioxide gas, which builds up the pressure inside the bottle;
then the yeast is removed (Richard, Ellen and Sally 2002).
2.4.1. Chemistry of wine
Wine has importance in many social and religious contexts in our society today, as it has for thousands of
years. The basic fermentation process whereby alcohol is produced from the sugar in grapes is very
simple, but its chemistry is still not completely understood. As this knowledge increases, winemakers are
being helped to improve the quality of their wine. Grape juice consists of 79% water and 20%
carbohydrates, 1% organic acids and trace amounts of organic acids, phenolics, vitamins, minerals and
nitrogenous compounds. The sugars, organic acids and phenolics give the juice its flavour, while the
vitamins, mineral sand nitrogenous compounds are, in many cases, essential to yeast growth and
fermentation. Wine has a similar composition, but has much lower levels of sugar 8 - 13% alcohol and a
greater range of minor components.
2.4.2. Characteristics of wine
The quality and quantity of color as well as the clarity of the wine are assessed entirely by eye, usually
before the tasting. Next, human sense of smell and taste are used to assess the flavor of the wine. The
depth of intensity and the multicomponent detection of flavor not sense wines (usually Described in terms
of flavor notes from other fruit /vegetable /mineral/ animal sources) that are used to describe wine
attributes by many expert wine tasters is surprising to then on expert wine drinker, and at times stretches
credulity. In addition to flavor recognition and description, there are also the perceptions of mouth feel,
temperature, bubbles, etc., which all are registered and assessed by our senses. Over and above the
enjoyment of the wine flavor, wine is also drunk for its stimulant properties, derived from 8 up to 15%v/v
ethyl alcohol, formed by the fermentation of sugars in the must by fermenting yeasts.
Some of the characteristics of wine include (Keller, 2010)
 Tasting
 Clarity

 Colors
 Viscosity
 Odor
2.4.3. Uses of wine
The use of wine in religion ceremonies is common to many cultures, regions and Wine has also played an
important role in medicine. Epidemiological studies have consistently demonstrated that moderate
consumption of alcohol and wine is statistically associated with a decrease in death due to cardiovascular
events such as heart failure, although excessive alcohol consumption has adverse health effects. A 2007
study found that both red and white wines are effective antibacterial agent‟s strains of Streptococcus
(Daglia, et al. 2007). Wine has always been considered a safe and healthy beverage and has been used in
social gathering, to minister to the sick, to perform church rites and even for ship launching (Pederson
1971)
2.5. Raw materials and supplies
2.5.1. Morphology of Pineapple
The pineapple plant is a short herbaceous perennial with 30-80 cm trough-shaped and pointed leaves 30-
100 cm long, surrounding a thick stem. This shape of the plant has to drive water onto the stem. This
water might be absorbed by axils. The early inflorescences has about 100-200 flowers (Sarah, et al. 1997).
Flowers of pineapple are spirally placed and each is supported by bracteas. Each flower consists of 3
calyxes, 3 bluish corollas, 6 filaments and a carpel with three parts of stigma. Inflorescence goes to bloom
about 3 weeks and it blooms from down to up. Pineapples are auto sterile and fruits developed are
parthenocarpic (Elfic.J 2004).
2.5.2. Climatic Requirement of Pineapple
A temperature range between 23 to 24°C is optimal for growing pineapple. When ambient temperature
drops to 10-16°C, fruit growth is constrained. Plants may stand sub-freezing temperatures for very short
periods. Conversely, exposure to temperatures well over 30°C results in heat damage due to increased
respiration rate and metabolism and impaired nutrient absorption (FAO 2002). Pineapple production
regions are usually confined to altitudes below 800m above sea level, although Kenya reports production
fields located between 1400 and 1800m, and Malaysia orchards as high as 2400m (Bartolomew, and
Kadzimann . 1977). When pineapple is grown at altitudes greater than 1000m above sea level, smaller
fruits are produced; the pulp has less attractive colour, flavour and tartness are elevated. Plant growth
occurs within a temperature range of between 21°C and 35°C and an annual rainfall of about up to
1100mm per annum and it should be evenly distributed. The optimal pH for growth is between 5.5 and
6.2 (Sarah, et al. 1997).

2.5.3. Variety of Pineapple cultivated

Pineapple is the second harvest of importance after bananas, contributing to over 20 % of the world
production of tropical fruits (Agropecuaria[COVECA] 2002). Nearly over 70% of the pineapple is
consumed as fresh fruit in producing countries especially in Africa and for that matter Ghana. Its origin
has been traced to Brazil and Paraguay in the Amazonic basin where the fruit was domesticated. There are
several cultivars with different sugar brix. Cayenalisa contains 19% sugar brix, Spanish from Singapore
(10%-12% sugar brix), Green Selacia (10%-12% sugar brix), Queen (14%-18% sugar brix), Red Spanish
(12% sugar brix), Perola (13%-16% sugar brix), Perolera (12% sugar brix) (Medina, 2005).
2.6. Classification of raw materials and supplies based on varieties
There are five major varieties of pineapple fruits.
1) Smooth Cayenne or Cayenne
Smooth Cayenne is extensively cultivated in Hawaii, Philippines, Australia, South Africa, Puerto Rico,
Kenya, Mexico, Cuba and Formosa. It is the most popular canning variety. The flesh is firm, close
textured, juicy and with a pale-yellow to yellow colour at maturity. And average acid range lies between
0.5 and 1.0% and total soluble solids (TSS) between 120 and 160 Brix.
2) Kew
It is a late-maturing variety and is the leading commercial variety in India. It is valued particularly for its
canning quality. Fruit weighs 2-3kg, and is oblong in shape, slightly tapering towards the crown. Eyes are
broad and shallow making fruits more suitable for canning. The fruit is yellow when fully ripe and flesh is
light yellow, almost fibreless, and very juicy with 0.6-1.2% acid, and its TSS content varies from 12-160
Brix (FAO 2002).
3) Queen
This old cultivar and is grown mainly in Australia, India and South Africa, where it is cultivated for table
and processing purpose. Fruit weighs 1-1.5 kg. When fully mature, the fruit is golden yellow and internal
flesh is deep golden-yellow. The flesh, although less juicy than Cayenne, is crispy, with a pleasant aroma.
Acidity ranges between 0.6 and 0.8% while the TSS is 15-16 Brix (FAO 2002).
4) Mauritius It is grown in some parts of Meghalaya and Kerala in India. Fruits are of medium size and
are of 2 types, deep yellow and red skinned. Fruits of yellow variety are oblong, fibrous, and medium
sweet compared to red type. Mauritius is exclusively grown for table purpose; leaves are yellowish green,
spiny throughout the margin, crown also is spiny in both the types. It is a midseason cultivar, ripens in
July August (FAO 2002).
5) Jaldhup and Lakh
These are two local types, both being named after the places of their maximum production. The varieties
are cultivated for table as well as processing purpose. Both fall in Queen group of fruits, being smaller

than 'Queen'. Jaldhup has its sweetness well blended with acidity. Fruits of Jaldhup have a characteristic
alcoholic flavour of their own and can be easily distinguished from other fruits of the Queen group (FAO
2002).
2.6.1. Specification of requirements
Therefore, from the above variety of pineapple we select Honey Queen Variety, because honey queen
variety is superior in nutritional content as well as excellent flavor and sweetness than the giant Kew
variety of pineapple and other varieties. The Giant Kew variety contained 6% Total soluble solids (TSS),
3.88% total sugar and 1.75% non-reducing sugar. On the contrary, the Honey Queen variety contains 10%
TSS, 4.84% total sugar and 1.59% non-reducing sugar. Honey Queen contains all the minerals in higher
amount than the Giant Kew variety but Giant Kew contains higher Vitamin C than Honey Queen. The
Honey Queen contains higher amount of calcium than the Giant Kew (Kader, and Absar 2010). The
availability and supply of this species can be increased by maximum cultivation and it does not create
scarcity during harvesting, because of when compare other fruit Hone Queen Pineapple is not seasonal.
2.7 Raw material availability in Ethiopia

Ethiopia pineapples come in two main varieties, the old time favorite Red Spanish and the new
net export, the Smooth Cayenne. Due to the fact that pineapple farming is still in its mid-
production stages in the horn of Africa nation, the fruit is mostly accessible in mainly southern
areas. It grows in Sidama, a region in the ecologically subtropical areas of the country due south
of Addis Ababa. Though the zone has been a source of coffee for decades, small scale growers of
pineapple have made the fruit attractive here. They began with the Red Spanish cultivar with its
characteristic purplish spiky colors and sizable fruit nestling in the long vines.
The first season of Ethiopia pineapples are April through May. The next season is between
October through November. Farmers usually propagate the crops through suckers. The price of a
single seedling costs between 3 and 5 ETB ($0.1 maximum). The sucker method is faster and
more organic than other means like tissue planting. The fruition of a sucker pineapple comes just
1 year and 4 months after planting. This is as opposed to other methods that mature in two years.

CHAPTER THREE
3. Market study
3.1. Market Study
3.1.1. Statistical data of wine consumption in Ethiopia
The sources of wine in Ethiopia are both local production and import supplies. The only domestic
supplier is Awash Winery. The following table shows the apparent consumption i.e., domestic production
plus imports with a title export in the eight years period of time (1999-2006).
Table 1 Consumption of wine (hecto liters)
Year Domestic Exported Export Consumption

Production
1999 17913 511 123 18301
2000 23440 1632 119 24953
2001 24829 2221 339 26711
2002 26678 2750 452 28976
2003 32008 1402 155 33255
2004 40107 1615 120 41602
2005 64526 2151 266 66411
2006 64526 4638 223 68941
Source:-Ethiopia Customs Authority for Import and Export Data and Central Statistical Agency for
Domestic Production Data 2005/06
Domestic production is assumed to be equal to the year 2005. Domestic production of wine has generally
shown an increasing trend. The production level, which was 17,913 hector liters during 1999, has
increased consistently and reached to 64,562 hector in 2005. Annual average growth of domestic
production during the period was considered about 19%. The imported quantity of wine has shown an
increasing trend for the first four consecutive years, but during the following three years the import level
declined to the range of 1402 H.L and 2151 H.L.A sharp increase of import has been registered during
2006 which was 4,638.H.L. Export of wine is generally small compared to imports and domestic
production. Exported quantity has been rising and down during the period 1999 to 2006. To estimate the
current effective demand, the past growth of apparent consumption and export has been considered.
During the past eight years apparent consumption on the average has been rising annually by more than
19%. Hence, a conservative growth rate of 19% is taken to estimate the current domestic apparent
consumption. Accordingly, current domestic demand is estimated at 82729 HL.

3.2. Projecting the demand of wine in Ethiopia

The demand for wine is mainly a function of urbanization, income growth, demography growth and
expansion of catering and recreational centers as well as change in food habit of the population. From
Table it is observed that in the last eight years the apparent consumption of wine has grown at an average
rate of 19%. The future demand for wine is forecasted on the assumption that at least a 12% growth rate
will prevail during the forecast period. The projected demand is shown in Table below.
Table 2 Projected Demand of wine and Campagen in (hecto liters)
Year Forecasted demand Existing local Supply Unsatisfied demand

2007 92656 64526 28130
2008 103774 64526 39248
2009 116226 64526 51700
2010 130173 64526 656476
2011 145793 64526 81267
2012 162688 64526 98162
2013 182610 64526 118084
2014 204523 64526 139997
2015 229065 64526 164539
2016 256552 64526 192026
2017 287338 64526 222812
2018 321818 64526 257292
2019 360436 64526 295910
2020 403715 64526 339189
2021 452160 64526 387634
3.3. Determining the Plant Capacity and Production program
The plant is assumed to cover only 20% of the 2021 unsatisfied demand and hence designed to have a
production capacity of 77,526.8 hector-liters of assorted wine products from fresh pineapple fruit based
on 300 working days and three shifts per day. Since 60 ¼ day/year such as, Sundays, national holidays
are not considered as working days, the remaining days are allotted for preventive maintenance and
unexpected down time. Considering the time required for development of skill in plant management and
market penetration, it is planned that the plant will start operation at 70% of the installed capacity, which
will grow to 80% in the second year. Thereafter, full capacity production will be attained in the third year
(95%) production shall be attained (with wise guessing obtained from different literatures).

3.4 Wine producing companies in Ethiopia

Awash Winery, which has been in existence for 70 years, is the oldest active winery in the
country. This 117 hectares estate, which is situated majestically on a mountain plateau rising to
1,200 meters above sea level, will soon expand its vineyard planting another 180 hectares,
alongside the existing vineyard. Because the estate, acquired in 2013 by Blue Nile, a company
created through a partnership between Mr. Mulugeta Tesfakiros, an emerging real estate
Ethiopian developer, and 8 Mile, a capital pool company chaired by Sir Bob Geldof, the famous
Irish musician and activist for the African cause, prospects for development now appear very
good.
For now the winery isn‟t far from producing 10 million bottles annually, with exclusive
consumption on the Ethiopian market. And even though Awash Winery has already been
approached by foreign customers, there are no exports planned at the moment, since there isn‟t
even enough wine to satisfy the local demand.
Castel winery is the second dominant product in Ethiopia which, planted in the town of Ziway,
163 km south of Addis Ababa. This project vineyard was created in 2007 as a partnership
between the Ethiopian Government and the Castel Group (one of the largest wine producers in
the world and No. 2 beer producer in Africa). This young estate – with 120 hectares of vines
planted between 2007 and 2009 – previously sold a large part of its production to Awash Winery
and has just started bottling its first vintage in the beginning of 2014.
3.5 Targeted Groups

As we know Ethiopian has their traditional wine, which is called „Tej‟, but most commonly this
traditional product is not produced by technological advanced equipment‟s. In addition to this
there are only two well-known wine producers. This make easy to penetrate in the market,
nevertheless they have a great brand like Axumawit, Castle and soon. Finally to overcome the
above conditions we choose Price Driven customers, those believe you can buy good wine
without spending a lot, Engaged Newcomers, those don‟t know much about wine, just like to
drink it. And the promotion will be in regional cities.

3.6 Pricing and Distribution

To attract cost driven customers the company envisaged to lower the cost of wine to Birr 64 peer
litter. This will increase the number of customers, who doesn‟t have the capacity to buy other
products. After the product is fully penetrate in the wine market some modification will be made
on the price.
The distribution system is envisaged to be: the company will give free transportation to hotels
wholesalers, and distributers. And the company will also have some distribution channels in
well-known towns like Addis Abeba, Hawassa, Mekele, Adama, Jimma, Bishoftu, and some
other towns. The selection of distribution centers will privatized with somebody, who will have
share in profit.

CHAPTER FOUR
4. Engineering and technology
4.1. Technology
The technological process of wine production can be categorized into three main stages.
1st Stage: - Reception of fresh pineapple. At this stage the following operations are carried out:
 Weighing of pineapple.
 Sampling by automatic extractor for sugar content evaluation.
 Conveying of pineapple to pressing operation.
2nd Stage: - Generally, wine-making operation takes place at this stage.
 Pressing and desteming of the pineapple
 Expulsion of the stalks to the external area.
 Transfer of the crushed pineapple to the verification lines. Having completed the above
operation, crushed pineapple is further processed according to the type of wine to be produced
(white or red wine). For example, red wine is processed as follows.
 Partial fermentation (24-36 hrs.) in auto-vinificator
 Extraction of the “flower” must where skins have been already removed.
 Filtration of must by plate filter and transfer to the secondary fermentation vats.
 Extraction of pomace from the vinificator and transfer by means of conveyor to a separator.
 Extraction of the first pressing juice from the press separator and its transfer by pumping to the
secondary fermentation vats.
3rd Stage: - Final operations. This includes:-
 Decanting and filtration in order to remove any impurities.
 Correction if required by various treatment methods.
 Blending with other wine which is commonly known as “cutting”.
 Stabilization by refrigeration in isobaric stainless steel vats (8 days equal to about 2 years of
natural ageing)
 Pasteurization (80 0c) with the effect to remove active ferments.
 Bottling after pasteurization.
4.1.1. Engineering
 Machinery & Equipment. The major machinery and equipment required for the wine-making
plant are shown below.
 Fresh grape reception unit.
 Wine-making system.

 Juice pumping system.

 First fermentation.
 Secondary fermentation.
 Must and wine filtration.
 Wine refrigeration unit.
 Bottling line.
 Auxiliary equipment and in addition to machinery and equipment it includes land required,
location, civil works (Amerine, etal 1980).
4.2. General process flow sheet of pineapple wine production
Figure 1 Process flow sheet of white wine production from pineapple(source using Edraw max)

4.3. General process flow diagram of wine production from pineapple
Figure 2 Process flow diagramme of white wine production from pineapple

4.4. Process Descriptions of Wine Production from Pineapple Fruit

A. Harvesting
As the pineapple ripen the concentration of sugars and aroma compounds rises and the concentration of
acids falls. The aim at harvest is to pick the pineapple at their optimum composition. This depends on the
type of wine to be produced. For example, sparkling wine requires a higher acidity than still table wine.
The development of the pineapple is followed by taking samples of the pineapple at regular intervals from
a few weeks before the expected optimum levels will be reached. When optimum levels are reached, the
pineapple is harvested.
B. Washing
The pineapple has thoroughly, removes the stem and cut the pineapple into large pieces, rind and all.
During this time impurities wash away from pineapple.
C. Peeling
The outer part of the fruit is removed by peeler machine to make safe process and to achieve quality
product.
D. Weighing, Slicing and Blending
A certain amount of pineapple is measured by using electronic beam balance and cutting of pineapple
into thin, relatively broad slices. After that the juice is perfectly mixed in order to get kind or quality
product.
E. Addition of other ingredient.
The sugar and citric acids are added in the tank that contains the clear juice. Sugar is used for food source
for yeast and the main purpose of addition of citric acid in the extracted juice is used to make the standard
alcohol continent.
F. Pitching After the addition of other ingredient water is added into the pitching tank in order to
perform safe operation and to balance the added ingredient.
G. Fermentation
Fermentation is begun by inoculating the juice with the chosen wine yeast. These yeast catalysts a series
of reactions that result in the conversion of glucose and fructose to ethanol:
C6H12O6→ 2C2H5OH + 2CO2.
A wine fermentation has two distinct stages. These are primary and secondary fermentation also
sometimes described as aerobic and anaerobic fermentations. The Primary Fermentation will typically last
for the first three to five days. On average, 70 percent of the fermentation activity will occur during these
first few days. And in most cases, you will notice considerable foaming during this time of rapid
fermentation. The primary fermentation is also called an aerobic fermentation because the fermentation
vessel is allowed to be opened to the air. This air plays an important role in the multiplication of the yeast

cells. Mostly wines are typically fermented at higher temperatures up to (15 - 18 °C). Fermentation at
higher temperatures may have adverse effect on the wine in stunning the yeast to inactivity and even
"boiling off" some of the flavors of the wines. Alcohol is being produced during the primary fermentation
as well as, but a significant portion of the yeast's energy is being devoted to reproducing itself. The
Secondary Fermentation is when the remaining 30 percent of fermentation activity will occur. Unlike the
typical four to seven days the primary fermentation takes, the secondary fermentation will usually last
anywhere from one to two weeks depending on the amount of nutrient and sugars still available. So as
you can start to see, the secondary fermentation is much slower with less activity at any given time. The
secondary fermentation is an anaerobic fermentation which means that air exposure is to be kept to a
minimum. This can easily be done by attaching an air lock to the fermentation vessel. It is this reduction
in air exposure during the secondary fermentation that entices the yeast to forget about multiplying and
start giving its energy completely to making alcohol. Among the particulars considerations that are often
important to wine makers yeast is a tendency to facilitate the fermentation process.
H. Filtration
Many white wines requires the removal of all potentially active yeast and lactic acid bacteria if they are to
remain reliably stable in bottle and this is usually now achieved by fine filtration. This is a purely
physical process and involves the separation of liquid (wine) from any sediment deposits or „suspended‟
particles.
I. Aging
After fermentation is completed the new wine must be aged 1-3 weeks. The aging of wine, and its ability
to potentially improve wine quality, distinguishes wine from most other consumable goods.
J. Matured wine bottling
A wine bottle is a bottle used for holding wine, generally made of glass.

CHAPTER FIVE
5. Material balance, Energy balance and Equipment sizing
5.1 Material Balance
Scaling up is possible by material balance for equipment‟s and finding corresponding value of the
proposed capacity, 77,526.8 Hector liter/year. The following assumption has been taken:
 Operation; Batch process
 300 operating days per year
 Number of batch per weak = one batch/week
 Number of batch per year =43batch /year
 Wine production per batch = 77,526.8 hecto liter/year/43batch/year =1803 hl/batch
 Wine production per day = 1803 hl /batch x Batch /7 day =257.57 hl/day
 Wine production per hour = 257.57 hl/day day/24 hr. =10.73 hl /hr
m = ρv, where ρ = density of pineapple
ρ=999kg/m3
V = 1073 lit /hr
ρ=
m=
The mass of dirty is 28% of mass of fresh pineapple
Mass of pure wine =
5.1.1. Material Balance on Peeler

Mass of fresh Mass of un edible
Peeler part (MUD)
Pineapple (MFP)
Mass of dirty is 23.2% of mass of MFP

General mass balance Equation
Mass input = Mass output Mass of edible
MFP = MUD + MED part (MED)
MUD =
The mass of edible part, MED = MFP – MUD

Where, MFP = mass of fresh pineapple

MUD = Mass of unedible part
MED = mass of edible part
MED =
5.1.2. Mass Balance on juicer
Juicer MJ
MED
Where
MED = mass of edible
MW= mass of water
MJ= mass of juice MW
Mass Input= Mass Output
MJ = MED + MW
Mass of water =
Then the mass of juices, MJ =

5.1.3. Mass balance on the fermenter
MA
MJ Fermenter MFW
Where MA = mass of additive
MJ = mass of juices
C2O
MFW = Mass of fermented wine
Mass Input = Mass Output
MA = M sugar +M water +M lemon+ M yeast +M (NH4)2SO4
( ) ( )
MA =
MA = 1183.264kg/hr
There is a chemical reaction on fermentation
C6H12O6+yeast 2C2H5OH+2CO2
Mco2 = mole*molecular weight of CO2

From the reaction the mass of CO2 is 2(12+32) =88g

From the general mass balance
Mass in = Mass out MJ + MA = MCO2 + MFW
Therefore the mass of fermented wine MFW = (MA + MJ) – M CO2
MFW = (MA + MJ) – M CO2
MFW = ( )
5.1.4. Mass Balance on filtration
Filtration MNW
MFW
Where
MNW= mass of new wine MC
M C= mass of cake
Mass Input= Mass Output
Assume that the mass of cake is 2% of the fermented wine
MFW= MNW+ MC
MFW – 2% MFW = MNW
MNW = MFW (1-0.02)
MNW = ( )
5.2. Energy balance in the juice heater

Total energy balance for this unit operation
The juice is heated from 25 to 65
Q = MmJ X CP x (Tout – Tin)
Where, Q = heat required
MmJ = mass of mixed juice
Cp =specific heat capacity of mixed juice
Tout = 65
Tin = 25
But from the ratio 1:10 water to mixed juice
CP ave = (0.1xCPwater) + (0.9 x CP of pineapple)
CPave = (0.1 x 4.18) + ( CP of pineapple x 0.9)
But CP of pineapple =
Then CP ave = 0.1x4.18 + 3.873x0.9 =

Q = mcpave x Q= ( ) , Q = 50.04kw
5.3 Equipment Sizing and Specification

Before to determine the feasibility of the project first we have to determine the size of major equipment‟s
A. Sizing of pineapple fruit storage tank volume
V= = x = 86.53 m3
The volume of storage tank is 90% full therefore total volume of storage tank estimated as follow.
3
Volume of pineapple storage tank (V) =
B. Sizing of sanitizer
Volume of pineapple =
The mass of pineapple fruit per batch cycle (m) = 12349.44kg/day

Density of pineapple fruit=999kg/m3
The number of batch is three batches per cycle
V= = 28.84m3 /cycle
If sanitizer is 90% full in each cycle the volume of the sanitizer is estimated as follows.
V= = 32.05m3/cycle
C. Sizing of fruit crusher
V pulp = , where the mass of pulp = 4802.23kg/day
V pulp = = 33.65m3
Three batch per cycle so pulp size = 11.22m3/cycle

If the crusher is 90% full the volume of the cylindrical chamber of the crusher estimated as flow.
Volume of cylindrical chamber =
D. Sizing of mixer
The volume of mixture = the volume of pulp + the volume of water
V mix = of water
From the mass balance mass of pulp per batch cycle (Mp) = 4802.56kg/day
Mass of water (Mw) =

V mix = + = 70.56m3
If the mixer is 90% full in each batch then the volume of the mixer estimated as follows.
V mix = = 78.4m3
The number of batch per cycle is three batches per cycle:

V mixer = 26.13m3/cycle
E. Sizing on separator/filter V filter =
From the mass balance the mass of mixture (M mix) =10076.16kg/day

Average density of the mixture (ρ avg) = 0.7ρwater +0.3ρpulp
Average density of mix = 0.7(1000kg/m3) +0.3(999kg/m3) =999.7kg/m3
V filter = = 70.55m3
If the separator/filter is 90% full the volume of the cylindrical chamber of the crusher estimated as flows.
V filter = = 78.39m3 The number of batch per cycle is three batches per cycle:
V filter = 26.13m3/cycle
G. Sizing for fermentation tank
Density of the mixture = 999.7 kg/m3 From the mass balance the mass of mixture (M mix) =
24,640.896kg/day
V mix = = 24.65m3
If the fermentation vessel 90 %is full then the volume of the fermenter vessel is estimated as follows,
V fermenter vessel = = 27.39m3
H. Sizing on aging tank
From the mass balance the mass wine (Mw) = = 86.47m3
If the vessel 90 %is full then the volume of the vessel is estimated as follows,
Volume of vessel = = 96.08m3

CHAPTER SIX
6. Economic Analysis
This design project aims to present a process that is capable of operating under conditions which will
yield profit. As a necessity the economic viability of this manufacturing business must be addressed
considering the society and government with which it will operate. The primary concern of an investors
lies in the rate of return (ROR) based on accurate cost estimates and sound data. Since the profit equals
total income minus all expenses, it is essential that all the costs involved in manufacturing processes are
considered. A capital investment is required for any industrial process and determination of the process
consists of fixed capital investment of physical equipment and facilities in the plant plus necessary
investment is an important part design project. The total investment for any working capital which must
be available to pay salaries ,keep raw materials and products on hand and handle other special items
requiring a direct cash outlay. Using payback period, rate of return and unit product cost a profitability
analysis will be conducted to see the viability of the project (MAX S. PETERS. 1991). .
Basis of economic analysis:
 Plant operation: 3 shifts per day
 Working day: 300 days/year
 Process: batch
 Plant life: 10 years
 Plant production rate: Wine production capacity = 77,526.8 hector-liter/year
6.1. Purchased Equipment
The cost of purchased equipment is the basis of several predesign methods for estimating capital
investment. Sources of equipment prices, methods of adjusting equipment prices for capacity,
and methods of estimating auxiliary process equipment are therefore essential to the estimator in
making reliable cost estimates. The various types of equipment can often be divided
conveniently into,
(1) Processing equipment,
(2) Raw-materials handling and storage equipment, and
(3) Finished-products handling and storage equipment. The cost of auxiliary equipment and
materials, such as insulation and ducts, should also be included (MAX S. PETERS. 1991).

Table 3 Purchased equipment Cost
Construction Unit Total

No Equipment Parameter Size Quantity of material Cost(ETB) cost(ETB
1 Storage tank Volume 96m3 2 Carbon steel 1,298,000 2,596,000

2 Crusher Volume 26.13m3 2 Stainless steel 1,177,444.75 2,234,889.5
3 Mixer Volume 24.65m3 2 stainless steel 321,200 642,000
4 Separator Volume 26.13m3 1 Carbon steel 833,800 833,800
5 Fermenter Volume 27.39m3 15 stainless steel 707,498.4 43,659,000
6 Pump Flow rate 13m3/hr 3 stainless steel 231,000 693,000
7 Conveyor Power 7.5hp 2 Carbon steel 1,320,000 2,640,000
8 Aging tank Volume 96.08m3 3 Carbon steel 2,910,600 2,122,495.2
9 Bottling& Volume 8000bot 2 Carbon steel 686,400 1,372,800
package tl/hr
10
Total purchased equipment cost 56,793,984.7
Source: www. Matches/equipment cost. Com
6.2. Fixed capital investment estimation
Capital investment is the total amount of money needed to supply the necessary plant and Manufacturing
facilities plus the amount of money required as working capital for operation of the facilities. This project
considers the proportional costs of each major component of fixed capital investment as outlined below
determination technique of the cost factors presented here are based on a careful study and associates
plus additional data and interpretations from other more recent sources in $ with input based on modern
industrial experience like awash winery(MAX S. PETERS. 1991).
6.2.1. Fixed capital investment values for direct and indirect cost
A) Direct cost (DC)
Direct cost is the type of fixed capital investment costs that directly applicable for plant erect. It takes 70-
85% of FCI range.
1) Purchased-Equipment Installation
The installation of equipment involves costs for labor, foundations, supports, platforms, construction
expenses, and other factors directly related to the erection of purchased equipment. Analyses of the total
installed costs of equipment in a number of typical chemical plants indicate that the cost of the purchased

equipment varies from 65 to 80 percent of the installed cost depending upon the complexity of the
equipment and the type of plant in which the equipment is installed. Installation costs for equipment,
therefore, are estimated to vary from 25 to 55 percent of the purchased-equipment cost. This component is
estimated to be 39% of purchased- cost for solid-fluid chemical plant.
2) Instrumentation and control cost
Instrument cost, installation-labor cost and expenses of auxiliary equipment and materials constitute the
major portion of the capital investment required for instrumentation. Total instrumentation cost depends
on the amount of control required and may amount to 6 to 30 percent of the purchased cost for all
equipment.
This component is estimated to be 13% of purchased equipment cost for solid -fluid chemical process
plant.
3) Piping cost
This refers to the cost for raw material, intermediate product, finished product, steam, water, and waste
products piping. Items involved in the complete erection of all piping used directly in the process which
include the labor, valves, fittings, pipe, support. Piping installed (25-35% of purchased equipment cost).
The piping cost is estimated to be 31% 0f purchased equipment cost for solid-fluid chemical process
plant.
4) Cost of Electrical system
The electrical system consists of the power wiring, lighting, transformation and services, instrument and
control wiring. Electrical, installed (10-15% of purchased equipment cost). This component is estimated
to be 10% of purchased equipment cost for solid-fluid chemical process plant.
5) Cost of buildings and Auxiliary
The cost involved in the erection of all buildings connected with the plant (labor, materials and supplies).
Buildings process and auxiliary (20-30% of purchased equipment cost). Cost of plumbing, heating,
lighting, ventilation, and similar building services are included here. This component is estimated to be
29% of purchased equipment cost for solid-fluid chemical process plant (MAX S. PETERS. 1991).
6) Cost of yard improvement
This involves costs for fencing, grading, roads, sidewalks, rail road sidings, landscaping and similar
items. Yard improvement (10-20% of purchased equipment), Yard improvement cost for solid-fluid
chemical plant is estimated to be 10% of purchased equipment cost.
7) Service facility and utility cost
Utilities for supplying steam, water, power and fuel are part of the service facilities of a chemical process
plant. Services facilities (30-80% of purchased equipment cost), Services include the cost of waste
disposal, fire protection, and miscellaneous service items (shop, first aid, cafeteria equipment etc.).

This component is estimated to be 55% of the purchased equipment cost for Solid-fluid chemical process
plant (MAX S. PETERS. 1991).
8) Cost of land
The plant will be sited at Hawassa in the Southern part of Ethiopia. The cost of land (4-8% of purchased
equipment cost), this component is estimated to be 6% of the purchased equipment cost for solid-fluid
chemical plant. The component of direct cost is listed below the table with range and selected percentage.
The values are based on fixed-capital investments ranging from under $1 million to over $20 million.
Table 4 Direct cost
Percent of delivered
No Direct cost Component equipment cost for Cost (ETB)
solid- fluid processing
plant
1 Purchased equipment-delivered 100E 56,793,984.7
2 Purchased-equipment installation 39E 22,149,654.033
3 Instrumentation and controls (installed) 13E 7,383,218.011
4 Piping (installed) 31E 17,606,135.257
5 Electrical (installed) 10E 5,679,398.47
6 Buildings (including services) 29E 16,470,255.563
7 Yard improvements 10E 5,679,398.47
8 Service facilities (installed) 55E 31,236,691.585
9 Land (if purchase is required) 6E 3,407,639.082
10 Total direct plant cost 166,406,375.171
B) Indirect cost
Indirect cost is another type of fixed capital investment cost that applicable for plant erect
indirectly.
1) Engineering and supervision cost
This involves construction design and engineering, drafting, purchasing accounting,
construction and cost engineering, travel, reproductions, communications and home office
expenses including overhead. Engineering and supervision (5-30% of E).This component is
estimated as 32% of purchased equipment cost for solid-fluid chemical plant.

2) Construction expenses
This component involves construction and operation, construction tools and rentals, construction
payroll, taxes, insurance and other overheads. This component is estimated as 34% of purchased
equipment cost for solid-fluid chemical plant.
3) Contractors‟ fee
The contractor fee (2-6% of D+I). The contractors‟ fee can be taken as 5% of D+I for solid-fluid
chemical plant.
4) Contingency fees
A contingency amount is included in all estimates of total capital investment in recognition of
the fact that, there will be unexpected events and changes that will inevitably increase the cost of
the project (i.e. strikes, price changes, small design changes, storms, floods etc.). The
contingency fee takes (5-15% of D+I). This component is estimated as 10% of D+I solid-fluid
chemical plant (MAX S. PETERS. 1991). The table shows categories of indirect cost part with
ranges and selected percentage.
Table 5 Indirect cost
Percent of delivered equipment

No Components of Indirect cost cost for solid- fluid processing Cost(ETB)
plant
1 Engineering and Supervision 32E 18,174,075.104
2 Construction Expense 34E 19,309,954.798
3 Contractors fee 5%(D+I) 10,194,520.254
4 Contingency 10%(D+I) 21,408,492.53
5 Total indirect cost 69,087,042.69
Therefore, Fixed capital investment cost (FCI) = DC + ID

FCI = 166,406,375.171 + 69,087,042.69 = 235,493,417.86ETB
The total capital investment = Fixed Capital investment + working capital investment. In most
plants working capital investment takes (10-20) % of total capital investment. In this plant, it is
assumed that 15% of total capital investment cost. Therefore, Total capital investment = fixed
capital investment + working capital investment. TCI = FCI + 0.15TCI
TCI = 235,493,417.86ETB + 0.15%TCI

TCI =
Working capital = 0.15TCI = 41,557,661.98ETB

6.3. Total product cost estimation
Determination of the necessary capital investment is only one part of a complete cost estimate.
Another equally important part is the estimation of costs for operating the plant and selling the
Products. These costs can be grouped under the general heading of total product cost. The latter,
in turn, is generally divided into the categories of manufacturing costs and general expenses.
Manufacturing costs are also known as operating or production costs. Further subdivision of the
manufacturing costs is somewhat dependent upon the interpretation of direct and indirect costs.
Total product cost = manufacturing cost + general expense
Manufacturing cost = direct production cost + fixed charge + plant-overhead cost
6.3.1. Manufacturing cost
6.3.1.1. Operating Labor cost
It is the sum of direct and indirect Labor Costs (DLC and ILC).
Table 6 Direct Labor cost (DLC)
Staff Quantity Annual salary per Total Annual

head ,ETB Salary, ETB
Plant manager 1 95,000 95,000
Production manager 1 80,000 80,000
Chemical engineer 4 70,000 280,000
Mechanical engineer 3 65,000 195,000
Electrical engineer 3 65,000 195,000
Quality assurance 1 58,000 58,000
Manager
Supervisors 6 46,000 276,000
Lab Technicians 6 19,000 114,000
Plant site worker 20 4,500 90,000
Total 1,383,000

Table 7 Indirect Labor cost (ILC)
Staff Quantity Annual salary per head ,ETB Total Annual Salary, ETB
Managing director 1 85,000 85,000
Human resource 1 75,000 75,000

Manager
Sales manager 1 60,000 60,000
Accountant 3 50,000 150,000
Store keeper 5 15,000 75,000
Receptionist and 1 12,000 12,000

Secretary
Cleaner 5 7,000 35,000
Driver 7 9,000 63,000
Security men 8 6,000 48,000

Total 603,000
Total Labor cost =TDLC +TILC

Total operating labor cost = 1,383,000ETB+603,000ETB
Total operating labor (OL) = 1,986,000ETB
A. Direct production cost(about 60% of total product cost)
1. Raw material cost
In the industry, one of the major costs in a production operation is for the raw materials involved
in the process. The amount of the raw materials which must be supplied per unit of time or per
unit of product can be determined from process material balances. In many cases, certain
materials act only as an agent of production and may be recoverable to some extent. Therefore,
the cost should be based on the amount of raw materials actually consumed as determined from
the overall material balances.

Table 8 Raw material cost with Transportation
No Raw material Mass in kg/year Unit price ETB/kg Total price (ETB)
1 Pineapple fruit 5,145,600 15 77,184,000
2 Sugar 2,181,600 12 26,179,200
3 Yeast 40,896 4 163,584
4 Citric acid 3,377.82 3 10,133.46
5 Total 103,536,917.46
2. Operating Labor (10-20% total product cost) = 1,986,000ETB

3. Direct supervisory and clerical labor (10-25% of OL) assume 10% = 198,600ETB
4. Utilities (10-20% of TPC) assume 15% = 0.15Total product cost
5. Maintenance (2-10% 0f FCI) assume 4% = 9,419,736.71ETB
6. Operating supplies (OS) (10-20% of maintenance and repair or 0.5-1% of fixed capital
investment) = 1,236,340.44ETB
7. Laboratory charges (10-20% of OL) assume 10% =198,600ETB
8. Patents and royalties (0-6% of TPC) assume 3% = 0.03TPC
B. Fixed charges (10-20% of total product cost)
1. Depreciation (10% of FCI) = 23,549,341.79ETB
2. Local taxes (1-4% of FCI) assume 2.5% = 5,887,335.45ETB
3. Insurance (0.4-1% of FCI) assume 0.7% = 1,648,453.93ETB
Total fixed charges = 31,085,131.17ETB
C Plant overhead cost (50-70% of Operating labor cost) 60% = 1,191,600ETB
Manufacturing cost = Direct production cost + Fixed charge + Plant overhead cost
Manufacturing cost = 116,576,194.61ETB + 0.18TPC + 31,085,131.17ETB + 1,191,600ETB
Manufacturing cost = 148,852,925.78ETB + 0.18TPC
6.3.2. General expense
General expense = administrative cost + distribution and selling costs + research and
development costs + interest
1. Administrative cost (about 15% operating labor cost) assumes 15% = 297,900ETB
2. Distribution and selling costs (2-20% of TPC) assume 11% = 0.11TPC
3. Research and development cost (5% of TPC) = 0.05TPC

4. Financing Interest (0-10% of TCI) assumes 5% = 13,852,554ETB

General expense = 14,150,454ETB + 0.16TPC
Total product cost = manufacturing cost + general expense
Total product cost = 148,852,925.78ETB + 0.18TPC + 14,150,454ETB + 0.16TPC
Total product cost = 163,003,379.78ETB + 0.34TPC
Total product cost - 0.34TPC = 163,003,379.78ETB
0.66TPC = 163,003,379.78ETB
TPC = 246,974,817.85ETB
6.4. Project evaluation
In this part the profitability of the plant is evaluated by finding the profit of the factory obtains
from the sale of pineapple wine. From the plant capacity that we decide the annual production
rate of the plant is 77,526.8 hectoliter/year at the full capacity.
Total selling price = total production*unit price = 7,752,680liter/year*64/liter
Total selling price = 496,171,520ETB
Net present value = Total income – Total product cost
NP = 496,171,520ETB - 246,974,817.85ETB
NP = 249,196,702.15ETB
6.5. Rate on investment (ROI)
ROI =
ROI = 89.95%
When the rate on investment is greater than the minimum acceptable rate(12%) since the project
is feasible.
6.6. Break-even analysis
The break-even analysis establishes a relationship between operation costs and revenues. It
indicates the level at which costs and revenue are in equilibrium. To this end, the break-even
point of the project including cost of finance when it starts to operate at full capacity (year 3) is
estimated by using income statement projection.
Variable cot = raw material cost + utility cost = 103,536,417.46ETB + 37,046,222.68ETB
Vc = 140,582,640.14ETB
Fixed cost = TPC – Vc = 246,974,817.85ETB - 140,582,640.14ETB
Fc = 106,392,177.71ETB
Breakeven point = = 30%
Break-even volume = 7,752,680liter/year*0.8995 = 6,973,535.66liter/year

6.7. Discount cash flow rate of return (DCSRR or IRR)
The internal rate of return (IRR) is the annualized effective compounded return rate that can be
earned on the invested capital, i.e., the yield on the investment. Put another way, the internal rate
of return for an investment is the discount rate that makes the net present value of the
investment's income stream total to zero.
TCI = 277,051,079.84ETB
Project service life = 10 year
The minimal capacity of the plant is 7,752,680 Litter/year. The total initial capital investment
would be 277,051,079.84ETB. The project construction will last a year and shall be in operation
for 10 year after commissioning with salvage value of 500,000 ETB at the end of the 10th year
of operation. It shall sell the wine at 64ETB/lit. The plant shall operate at 70% and 80% capacity
utilization rate during the 1st and 2nd year of operation and at 95% thereafter. No replacements
are required other than repair and maintenance costs included in factory over heads, the
operating costs assumed are as follows.

6.7.1. Profitability analysis

Table 9 Discount Cash flow Calculation (*000ETB)
Year 0 1 2 3 4 5 6 7 8 9 10
Capacity 70 80 95 95 95 95 95 95 95 95
utilization%
1.Cash in flow 347320 396937 471363 471363 471363 471363 471363 471363 471363 471863
Revenue 347320 396937 471363 471363 471363 471363 471363 471363 471363 471363
Salvage value - - - - - - - - - 500
2. Cash out 277051 171877 196432 243890 243890 243890 243890 243890 243890 243890 243890
flow
Investment 277051
RM and others - 72476 82830 108986 108986 108986 108986 108986 108986 108986 108986
Utility - 25932 29637 35194 35194 35194 35194 35194 35194 35194 35194
OP labor - 1390 1589 1887 1887 1887 1887 1887 1887 1887 1887
Maintenance - 6594 7536 8949 8949 8949 8949 8949 8949 8949 8949
and repair
Laboratory - 139 159 189 189 189 189 189 189 189 189
charge
Patent and - 5186 5927 7039 7039 7039 7039 7039 7039 7039 7039
royalty
Fixed charge - 21760 24868 29531 29531 29531 29531 29531 29531 29531 29531
Plant over - 834 953 1132 1132 1132 1132 1132 1132 1132 1132
head
General - 37566 42933 50983 50983 50983 50983 50983 50983 50983 50983
expense
Growth - 175443 200505 227473 227473 227473 227473 227473 227473 227473 227973
profit(1-2) 277051
Net profit - 114038 130328 147857 147857 147857 147857 147857 147857 147857 148182
after35% tax
277051
6.7.2. Payback period
The payback period, also called pay–off period is defined as the period required for recovering
the original investment outlay through the accumulated net cash flows earned by the project

Table 10 Payback Period calculation (*000ETB)
Year 0 1 2 3
Cumulative cash flow -277051 -101608 -98897 128576
Yearly cash flow 175443 200505 227473
Payback period = 2 + ( ) = 2 + 0.43476 = 2.435 year

Since, the payback period of the project is 2 year, 4 month and 3 week and 5 days. Therefore, the project
is feasible, because of when we say that the project is feasible the payback period should be between 2 – 7
years.
Table 11 Discount Cash flow rate of Return (DCSRR OR IRR) (000ETB)
Year 0 1 2 3 4 5 6 7 8 9 10
Growth -277051 200505 227473 227473 227473 227473 227473 227473 227473 227473 227973
profit(1-2)
Discount 1 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322
Factor @
12%
PV -277051 179022 181340 161911 144563 129074 115245 102897 91873 82029 73401
A) Pv value is the sum of each present value without Zero year.

Therefore, PV = 1,261,355ETB
B) NPV = 984,304ETB (by addition of all PVs, including the initial investment out lay,
which is negative because it is a cash outflow).
C) NPVR = ∑ = 4.55
Since the net present value is positive and the net present value ratio is greater than one the
project is acceptable and viable for implementation. Moreover, the payback period of only 2.435
years apparently minimizes any risk in regaining/recouping the initial investment.
throughout the project life and no risks associated as a result. NPV and PI are good indicators
only if the assumptions made for investment and operation are also good. Taxation and
replacement ignored could have some effect on the project‟s viability.

CHAPTER SEVEN
7. Plant Siting and Location
The geographical area of the plant has a strong influence on the success or failure of the project.
In other words, it has a crucial effect on the profitability of the plant, and the scope of future
expansion. Therefore, a plant should be located where minimum cost of production, as well as
distribution could be obtained, amongst other factors. In order to make the design project
realistic, the aspect of site selection must be given some consideration. There are a number of
considerations concerning the choice of site locations for the production of pineapple wine with
in the country. Some of these are general considerations whilst others relate directly to the
process and its requirements. The following list contains a few of the important considerations of
site selection criteria.
 The plant erect where Power availability is nice.
 The availability of transportation must be considered.
 Human power can be getting easily and cheapest compare to other city.
 A good working environment is preferable for the workers.
 Distance from fruit land must be also considered.
 The type of soil is also must be considered.
Table 12 Ranking of possible locations based on various parameters
No. Locations Land Vicinity Vicinity Investment Operational Future Overall
access to raw to Considerations Logistics development Rating
Conditions material Markets (10%) (10%) Possibilities (10%)
(10%) Sources (10%) (10%)
(10%)
1 Hawassa 8 8 8 8 7 8 47
2 Dilla 8 6 6 6 5 6 37
3 Wellega 8 5 7 8 6 7 41
Therefore due to the above measurments the selected location will be around Hawassa city, whichis a city
in Ethiopia, on the shores of Lake Awasa in the Great Rift Valley. It is located 273 km south of Addis
Ababa via Bishoftu, 130 km east of Sodo, and 75 km north of Dilla. The town serves as the capital of the
Southern Nations, Nationalities, and Peoples' Region, and is a special zone of this region. It lies on the
Trans-African Highway 4 Cairo-Cape Town, and has a latitude and longitude of 7°3′N
38°28′ECoordinates: 7°3′N 38°28′E and an elevation of 1708 meters above sea level.
7.1. Environmental impact assessment

The global wine industry has a tremendous impact on the environment, from production and
manufacturing through transportation and marketing, and ultimately with the consumer who
must deal with the resulting packaging materials. Plenty of people don‟t bother to recycle (or
can‟t) their wine bottles, and many people actually do not know what to do with corks, other than
throw them in the trash. Wine production itself accounts for a large amount of synthetic
fungicides, herbicides, and fertilizers that end up in our earth and water. Not to mention the
massive amounts of water used in grape production. Likewise, untreated waste water from
winery use hosing down barrels, tanks and buildings can harm the ecosystems in and around
rivers, lakes and ponds (Vanclay, 1999).

CHAPTER EIGHT
8. Conclusion and Recommendation
8.1. Conclusion
Generally, white wine can be produced from pineapple fruit. It has much juice content, which in
turn results higher fermentable sugar, but the seasonality of pineapple fruits as well as poor
handling and transportation of the fruits, absence of industrial utilization of the pineapples as raw
material, rejection from the international market coupled with inadequate local market conditions
contribute to the high postharvest losses of pineapple in Ethiopia. Measures put in place to
reduce this wastage were very effective. This included the extraction of pineapple juice and
conversion of the juice to wine by fermentation. These measures would greatly enhance the
keeping qualities of pineapple juice wine, thus reducing wastage. The wine produced had low
sugar levels, low pH and higher acidity suitable for wine stability. This means that all the yeast
strains and their concentrations performed better during the incubation period.
throughout the project life and no risks associated as a result. The project is feasible because of
net present value is positive and the net present value ratio is greater than 1 the project is
acceptable and viable for implementation. Moreover, the payback period of only 2.435 years
apparently minimizes any risk in regaining/recouping the initial investment.

8.2. Recommendation
The society use pineapple for the food consumption, while using pineapple for industrial use
may cause the scarcity of pineapple for the society, therefore the manufacturer needs to prepare a
hector of land for cultivation of the pineapple plant. This helps to fill the gap of problem due to
pineapple shortage in the societies. Additionally the waste of pineapple in the manufacture can
cause the environmental pollution, so we keep the waste on one place and use it as a fertilizer for
land cultivation, that increase the amount of raw material and maximizing wine production.
Awareness about pineapple wine also need be created on the peoples through promotion and
training of farmers. Pineapple is the main raw material for production of white wine instead of
grip to increase the availability of this raw material an inventor creates awareness the farmer in
order to increase cultivation. When someone produced white wine from pineapple she/he must
be, keep the raw pineapple from damaged, burs, checked to reach for harvesting and use
technological fermenters to get quality product.

8.3. Plant layout of pineapple wine production
Figure 3 Plant lay out of winery

Reference
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ADDIS ABABA INSTITUTE OF TECHNOLOGY

Masters of science in FOOD ENGINEERING

Submitted to: - Eng. Lelissa Daba (Ass. Profeser)

Feasibility Study on White wine production Page I

Feasibility Study on White wine production Page II

2.6.1. Specification of requirements ...................................................................................... 10

Feasibility Study on White wine production Page III

Feasibility Study on White wine production Page IV

Feasibility Study on White wine production Page V

Feasibility Study on White wine production Page VI

Feasibility Study on White wine production Page VI

FCI - Fixed capital investment

MED - mas of edible part of pineapple

MFP - mass of fresh pineapple

MFW - mass of fermented wine

MNW- mass of new wine

MUD- mass of unedible part of pineapple

NPV- Net present value

ROI - Rate on investment

TCI - Total capital investment

NPVR – Net present value ratio

Feasibility Study on White wine production Page VII

Feasibility Study on White wine production Page 1

1.2. Statement of the problem

Feasibility Study on White wine production Page 2

1.3. Objectives of the Study

Feasibility Study on White wine production Page 3

Feasibility Study on White wine production Page 4

2.2. Wines of African origin

2.3. History of wine in Ethiopia

Feasibility Study on White wine production Page 5

Feasibility Study on White wine production Page 6

Feasibility Study on White wine production Page 7

Feasibility Study on White wine production Page 8

2.5.3. Variety of Pineapple cultivated

Feasibility Study on White wine production Page 9

2.7 Raw material availability in Ethiopia

Feasibility Study on White wine production Page 10

Year Domestic Exported Export Consumption

Feasibility Study on White wine production Page 11

3.2. Projecting the demand of wine in Ethiopia

Year Forecasted demand Existing local Supply Unsatisfied demand

Feasibility Study on White wine production Page 12

3.4 Wine producing companies in Ethiopia

3.5 Targeted Groups

Feasibility Study on White wine production Page 13

3.6 Pricing and Distribution

Feasibility Study on White wine production Page 14

Feasibility Study on White wine production Page 15

 Juice pumping system.

Feasibility Study on White wine production Page 16

4.3. General process flow diagram of wine production from pineapple

Figure 2 Process flow diagramme of white wine production from pineapple

Feasibility Study on White wine production Page 17

4.4. Process Descriptions of Wine Production from Pineapple Fruit

Feasibility Study on White wine production Page 18

Feasibility Study on White wine production Page 19

The mass of dirty is 28% of mass of fresh pineapple

Mass of pure wine =

5.1.1. Material Balance on Peeler

Mass of dirty is 23.2% of mass of MFP