Project Profile of Tomato Paste and Sauce Production Industry in Bangladesh

The tomato paste and sauce industry in Bangladesh has immense potential. Most importantly, local demand is growing due to increasing urbanization, rising per capita income, and expanding fast food and ready-to-cook markets. Besides domestic consumption, there is strong export potential to regional markets. This project profile highlights the opportunity, investment requirements, production capacity, and financial projections for a tomato paste and sauce manufacturing unit in Bangladesh.

Project Profile of Tomato Paste and Sauce Production Industry in Bangladesh

1. Introduction

Tomatoes are a staple ingredient in Bangladeshi cuisine. Yet, despite large tomato production, most processed tomato products are imported. Therefore, establishing a local tomato paste and sauce production plant can fill this gap, reduce imports, and boost the agribusiness sector.

Tomato paste and sauces are used in households, restaurants, hotels, and fast food outlets. Demand is increasing because people prefer ready-to-use products over manual cooking. Either as ketchup, tomato paste, or pasta sauce, processed tomato products remain in high demand.

2. Project Overview

Project Name: Tomato Paste and Sauce Production Industry
Location: Anywhere in Bangladesh with easy access to raw materials, e.g., Gazipur, Chattogram, or Bogura.
Production Capacity: 1,000 kg of tomato paste and 1,500 liters of sauce per day.
Project Type: Medium-scale agro-processing industry
Project Life: 15 years (considering equipment life and market trends)

3. Market Potential

The tomato paste and sauce market in Bangladesh is expanding at around 12–15% annually. Most imported products come from India, China, and Malaysia. With local production, manufacturers can reduce costs, increase freshness, and capture niche markets such as organic or premium sauces.

Key Market Segments:

  • Household consumers

  • Fast food chains and restaurants

  • Food processing industries

  • Export markets (Nepal, Bhutan, Middle East)

4. Raw Materials and Supply

Primary Raw Materials:

  • Fresh tomatoes: 1,200–1,500 kg per day

  • Sugar: 50–70 kg per day

  • Vinegar: 20–30 liters per day

  • Spices and additives: 10–15 kg per day

  • Packaging materials (glass bottles, cans, labels): as per production

Most raw materials can be sourced locally. Tomato cultivation is widespread in regions like Rajshahi, Bogura, and Dinajpur. Packaging materials can be procured from Dhaka and Chattogram markets.

5. Production Process

The production process of tomato paste and sauce is simple yet effective. Most important steps include cleaning, sorting, crushing, cooking, seasoning, and packaging.

Step Description Output
Washing & Sorting Fresh tomatoes washed and sorted Cleaned tomatoes
Crushing Tomatoes crushed to pulp Tomato pulp
Cooking Tomato pulp cooked to desired consistency Tomato paste
Seasoning Sugar, vinegar, salt, and spices added Tomato sauce
Homogenization Paste homogenized for smooth texture Smooth paste/sauce
Packaging Paste and sauce bottled or canned Ready-to-sell products

Either tomato paste or sauce can be produced simultaneously using this setup.

6. Machinery and Equipment

A medium-scale plant requires machinery for processing 1,000–1,500 kg/day.

Machinery Quantity Approximate Price (BDT)
Tomato Washer & Sorter 1 set 2,500,000
Crushing Machine 1 set 1,500,000
Cooking Kettle (Stainless Steel) 2 units 3,000,000
Homogenizer 1 unit 2,200,000
Filling & Capping Machine 1 unit 4,000,000
Pasteurizer 1 unit 1,800,000
Bottling Line 1 unit 3,500,000
Miscellaneous Equipment – 1,000,000
Total Machinery Cost – 19,500,000

Besides equipment, storage tanks, pipes, and quality control lab setup are essential.

7. Land and Infrastructure

Land Requirement: 5–6 decimals (industrial shed, raw material storage, office, and utilities)
Construction Cost: Approx. 12,000,000 BDT for medium-scale plant
Utilities: Electricity, water, steam, and waste disposal facilities. Steam generation is critical for cooking and pasteurization.

8. Manpower Requirement

Efficient manpower ensures smooth production.

Category No. of Staff Duties
Plant Manager 1 Overall plant supervision
Production Supervisor 1 Daily operations management
Machine Operators 3 Operate processing machinery
Quality Controller 1 Product testing and QC
Packaging Staff 4 Bottling and labeling
Maintenance Technician 1 Equipment maintenance
Sales & Marketing 2 Distribution and client relations
Support Staff 3 Cleaning, logistics, administration
Total 16 –

Salary costs vary, but an average monthly wage of 20,000–30,000 BDT per worker is reasonable.

9. Production Capacity and Revenue

The plant can produce:

  • Tomato paste: 1,000 kg/day (~25,000 kg/month)

  • Tomato sauce: 1,500 liters/day (~37,500 liters/month)

Pricing (Retail Market):

Product Pack Size Price/Unit (BDT) Monthly Revenue (BDT)
Tomato Paste 200g Jar 60 7,500,000
Tomato Sauce 250ml Bottle 50 7,500,000
Total Monthly Revenue – – 15,000,000

10. Investment Estimation

Fixed Capital:

Item Cost (BDT)
Machinery & Equipment 19,500,000
Land & Civil Construction 12,000,000
Utilities & Lab Setup 3,000,000
Office Furniture & Vehicles 2,000,000
Total Fixed Capital 36,500,000

Working Capital (Raw Materials, Labor, Packaging, Utilities for 3 months): 5,500,000 BDT

Total Project Cost: 42,000,000 BDT

11. Operational Costs

Expense Monthly Cost (BDT)
Raw Materials 5,000,000
Salaries & Wages 400,000
Utilities 150,000
Packaging & Labels 500,000
Maintenance 50,000
Marketing & Distribution 200,000
Miscellaneous 100,000
Total 6,400,000

12. Profitability Analysis

Monthly Revenue: 15,000,000 BDT
Monthly Expenses: 6,400,000 BDT
Monthly Profit: 8,600,000 BDT
Annual Profit: 103,200,000 BDT

ROI (Return on Investment) can be achieved within 1.5–2 years depending on market penetration and sales growth.

13. SWOT Analysis

Factor Details
Strengths High demand, low local competition, export potential
Weaknesses Seasonal tomato supply, initial capital requirement
Opportunities Fast food growth, packaged food trend, organic products
Threats Imported products, price fluctuations in raw materials

14. Legal and Regulatory Requirements

  • Trade license from local municipality

  • Food safety license (Bangladesh Food Safety Authority)

  • Environmental clearance (if required)

  • Tax registration and VAT compliance

Meeting these requirements ensures smooth operation and legal protection.

15. Marketing Strategy

  • Partner with supermarkets, restaurants, and fast food chains

  • E-commerce platforms for retail customers

  • Branding and promotional campaigns

  • Focus on quality, hygiene, and freshness

Besides that, participating in local and international trade fairs can expand the export market.

16. Risk Management

  • Raw Material Risk: Establish contracts with local farmers to secure tomato supply.

  • Price Fluctuation: Maintain buffer stock and diversify suppliers.

  • Market Competition: Focus on quality, branding, and value-added products like organic sauce.

17. Environmental Considerations

  • Waste water treatment for tomato peel and pulp residue

  • Efficient energy use through steam recycling

  • Minimal packaging waste using recyclable materials

18. Conclusion

The tomato paste and sauce production industry in Bangladesh offers high returns with relatively low risks. Most important is that both domestic and export markets show consistent demand. Either through retail or institutional supply, profits can grow steadily with proper management.

19. Call to Action

We specialize in creating bankable project profiles in Bangladesh and abroad. If you want a detailed, ready-to-finance project report for tomato paste and sauce production—or any other business—contact us today.

📱 Mobile: 01716752370
🌐 Website: www.projectprofilebd.com

Let us help you turn your business idea into a profitable reality.

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