PROJECT PROFILEPROJECT PROFILEOn Rice Mill

For

M/s PRIYA RICE MILLIndustrial Estate, Bettiah, West Champaran

Promoted by: Computed by

Mr. ASHOK KUMAR GUPTA e-SolutaionsPrem Kunj, SikandarpurMuzaffarpur

ACKNOWLEDGEMENT

Completing a task is never a one-man effort. It is often the result of invaluable contribution of a number of individual in direct or indirect manner.

Sincerity and devotion begin here, when after the completion of project work, I look back to see how it could have been possible without them. I thereby, revel, in reciprocation several of my feeling to all those personalities who have helped me along the way.

I convey my deepest sense of guidance to “ Dr. K.V Bachute’’ (Principal, SCOAC) and “ prof. Subhasis pal’’ for the continued interest taken by them and for kind approval of this project report.

I pay my sincere thanks to the faculty member and project guide “ Prof. Subhasis pal for their support.

Last I pay my thanks to ‘GOD Almighty ‘for enabling me to do my work with his abounding grace.

VAIBHAW SAGAR

Date:

Place: Pune.

NAME M/s PRIYA RICE MILL

LOCATION Industrial Area, Bettiah

ITEM TO BE MANUFACTURED RICE MILL & COARSE GRINDING

COST OF THE SCHEME

Particulars Amount

(Rs. In Lakh)

Fixed Cost 19.30

Working Capital 13.11

Total 32.41

MEANS OF FINANCE

Particulars Amount (Rs. In Lakh)

Promoters Contribution 6.65

Subsidy DG Set 0.70

Land 1.90

Term Loan 11.00

Working Capital Loan/Bank 9.50

Deff payment in respect of land 2.66

Total

32.41

PROFITABILITY (1st year capacity utilization 60%)

Particulars Amount (Rs. In Lakh)

Sales Earnings 54.69

Production Cost 52.07

Gross Profit 2.62

Profit before Tax 1.44

Net Profit 1.44

BREAK EVEN POINT 26.99%

DSCR 2.73:1

TABLE OF CONTENTS

SR.NO Title of the practicals

1 Executive summary

2 The Enterprise

Introduction

Constitution

Location & its advantages

Market & Scope

Licenses & Controls

Manufacturing Process

Fixed Assets

Land & Land Development

Building & Civil Constructions

Plant & Machineries

Misc. Fixed Assets

Preoperative Expenses

Item to be manufactured

Installed capacity

Production Programme

Production of End Product

Requirement of Working Capital

Cost of the Scheme

Means of Finance

Profitability Estimates

Requirement of Raw Materials

Requirement of Raw Material & Consumables on efficiency

Utilities

Men Power

Administrative Expenses

Repair & Maintenance

Rent, Rates & Insurance

Deprecation

Yearly Sales Earnings

INTRODUCTION

The unit namely PRIYA RICE MILL is to be located in a piece

of land at Industrial Area, Kumar Bagh, Bettiah.

NAME OF THE UNIT

The name of the unit will remain as PRIYA RICE MILL unless

otherwise changed.

CONSTITUTION OF THE UNIT

The constitution of the unit will be Proprietorship.

ABOUT THE PROMOTERS

1. Name Mr. ASHOK KUMAR GUPTA

Designation PROPRIETOR

Father’s Name Late Raj Bansi Prasad

Resident Vill- Donwar, P.O. Barwan Ojha , P.s.

Sanichari Bettiah, West Champaran

Age 32 Years

PAN AKIPG7898Q

Qualification Intermediate

Experience in Trading of Paddy & Rice

LOCATION & ITS ADVANTAGE

The unit is located at Industrial Area, Kumar bagh, Bettiah

which is connected with Good Road links. It is situated at

distance of 7 km. from Bettiah Railway Station & 1 km from

Kumarbagh Railway Station The unit will enjoy the facilities of

quick transportation; other infrastructural facilities are also

readily available.

MARKET & SCOPE

India is an agricultural country, two-third population depends

on agriculture sector directly or indirectly .Agriculture

continues to be the mainstay of the Indian economy with food

being the crowing need of the mankind, much emphasis has

been on commercializing agricultural production. Hence,

adequate production and even distribution of food has lastly

become a high priority global concern. The potential role that

may play in alleviating the suffering of million people who

remain under ravished never been fully exploited. The world

continues to face the major challenge of increasing food

production in a sustainable manner and improving horticulture

production with post harvest management.

During the present crisis of ever increasing burden of

population, the importance of reduction in post harvest loss of

commodities is of vital importance to the developing country.

Post harvest handling accounts for 20-40% of the losses at

different stage of storage, grinding packing transport and

finally at marketing as a fresh produce or in processed form

Rice is an important crop world wide. Almost ½ of the people

in world eat rice as a staple food. The fear of decrease rice

production has set trembles of fear throughout the world.

Specifically in India the economy has seen upturn, according

to the Financial Times. Rice is such an important asset to

Indian culture; more than 70percent of the people within the

country rely on agriculture for their income. To even make

alight improvement to the devastating poverty and

unemployment levels, the Indian economy must grow a

minimum of eight percent each year, according to an United

Nations.

Due to the liberal government and other developmental

measuring being taken the future of the industry looks very

bright. The production base is given enlarged, medium

methods of cultivation are being adopted, thus improving the

productivity and cutting

per unit cost. To some extent cold chain is being provided ,

which will helping retaining quality , freshness and reduce

post harvest losses. With the new hybrid varieties being

added the production season is also being extended , these

development shall result in the greater availability of quality

raw material to the industry these resulting in better4 capacity

utilization producing a wide range of products and of

international quality . The quality is new the watchword for

success. The multinational new entering the food industry

have an international marketing network and have their brand

loyalty all over the world. This will have India products

reaching al over the world in the form and packing required.

LICENSES & CONTROL

The unit may need following licenses / NOC / permission from

various government departments:-

1. SSI Registration from BIADA.

2. Approval of Factory Building & other construction from

BIADA and Chief Inspector of Factories, Govt. of Bihar,

Patna.

3. Registration of the Firm from Registrar of Firms Govt. of

Bihar, Patna.

4. NOC from Bihar State Pollution Control Board, Patna.

5. License from the office of the Factory Inspector, Govt. of

Bihar.

6. License & verification of weight from the department of

weight & measures Govt. of Bihar.

7. Any other license / statutory permission required for the

time being

MANUFACTURING PROCESS

STORAGE BIN

CLEANER

STORAGE BIN CLEANED

FRESH RICE

BROKEN RICE

Paddy

EL

EV

AT

OR

Foreign Particles

EL

EV

AT

OR

Separator

BRAN

Production

Packing in 50 Kg

Starting for Market

De Husker

HU

SK

STORAGE BIN RICE

RiceSeparator

Marketable Rice

Weighing

Stitching

FIXED ASSETS

Particular Amount

(Rs. In Lakh)

Land & Land Development 4.20

Building & Civil Works 9.50

Plant & Machinery 3.20

Misc. Fixed Assets 1.70

Preoperative Expenses 0.70

Total 19.30

LAND & LAND DEVELOPMENT

Particular Amount

(Rs. In Lakh)

LAND

The land measuring 1 acre in area has

been allotted by BIADA at rural

industrial estate, Bettiah

3.80

LAND DEVELOPMENT -

As the plot is lower than the road earth filling is required. It has been estimated to

0.20

TOTAL 4.00

BUILDING & CIVIL WORKS

A Technically designed building needed for such the detailed drawing and estimate units have been decided of civil works is sited at ANN-1, the extracts of the same are as follows:

PARTICULARS AREA SPECIFICATIONAmount

Rs in lakh

Total

A Processing Shade

50 x 50 x 18 = 2500ft

Acc truss 5.00

B Godwon Open husk shade

50 x 25x 181250ft

On stiphners Acc roofs , no walls

1.00

C Godown 30 x25750ft

Acc truss roof With pucca walls

1.50

D Pathar for grains sun drying brick soling

100x 100 = 10,000sft

Brick soling with joint tipping 0.30

E Office 10x20x10h=200sft

RCC roof pucca const

0.50

F Boundary wallsGate pillars, inside pathwaysGuardroom

LS 1.20

Total 9.50

PLANT & MACHINERY

S.NO DESCRIPTIONQTY RATE AMOUNT ( RS )

1D-Husker DMR-6”-6308 with Aspirator

1 pc 35000.00 35,000.00

2 Rice Polisher With Collar 1pc 27000.00 27000.00

3Paddy separator -6plate -4”*4”

1 pc27000.00 27000.00

4Paddy cleaner attached fan-30”*36”

1 pc25000.00 25000.00

5 Elevator-16” x 8”x 6”bokit 6set 19566.00 117396.00

6 Line shaft-2.5” 20ft 304.35 6087.00

7 Bearing-6215 4pc 350 1400.00

8 Sakit-6215 4pc 80.00 32.00

9 Bulak-6215 4pc 255.00 1020.00

10 Rail-36 2pc 450.00 900.00

11 Rail -30” 2pc 362.50 725.00

12 Patta-3 32fee 362.50 725.00

13Flate pully-6*2.5bor

1 pc250.00 250.00

14v-pully-26*3

1 pc2184 2184

15v-pully-418*2

1 pc950 950.00

16v-pully-9*2

1 pc360 360.00

17 v-pully-8*2 1pc 300.0 300.00

18 Flotation bolt 1 2000.00 2000.00

19 Angle 40ft 50.00 2000.00

20 Misc Machineries , welding, scales L.S 12000.00 12000.00

Sub total 2,78,212.00

Add : Tax Freight , Installation , Errection etc @ 15 % 41,731.00

Total 3,19,943.00

To say 3.20 Lakh

MISC. FIXED ASSETS

Particular Amount

(Rs. In Lakh)

A. D.G Set 30 KVA 1.4 0

B. Electrical Fittings 0.20

C. MISCELLANEOUS TOOLS &

TACKLES

0.05

D. Furniture Fixtures 0.05

Total 1.70

PREOPERATIVE EXPENSES

The main components of the preoperative expenses are as

follows

Particular Amount

(Rs. In Lakh)

1. Legal Fees & Charges 0.08

2. Salary Of Guards During START

UP PERIOD

0.12

3. Interest during implementation

BSEB Security

0.30

4. Security to BSEB 0.20

Total 0.70

ITEMS TO BE MANUFACTURED

The unit envisages processing Paddy and during off season

Coarse Grinding of Maize

INSTALLED CAPACITY

From the set of machineries installed the processing Capacity

of unit will be as follows:

Per Hr 1000KG/Paddy

Per day (single shift) 400 Kg

Per Annum (250day season)1600MT

In off season the unit will Coarse grind Maize as Coarse

Materials to be used by

cattle /Poultry farmers. The pulverization capacity will be as

follows:-

Per HR- 250kg

Per day/Single Shift 2MT

Per Annum 100days) 200 MT

PRODUCTION PROGRAMME

Year of

operation

Level of capacity

utilization

Per Annum Paddy

- 100% 1600MT

I 60% 960MT

II 70% 1120MT

III on word 80% 1280MT

PRODUCTION OF END PRODUCT

The quantity of different materials after Paddy processing will be as follows:-

Year of Operation

Capacity utilization

Fresh rice Broken rice

Bran Husk

- 100% 1008.00 64.00 112.00 400.00

I 60% 640.08 38.04 67.02 140.00

II 70% 705.06 44.8 78.4 280.00

III & onwards

80% 806.40 51.2 89.6 320.00

REQUIREMENT OF WORKING CAPITAL

Amount Rs in lakh

Level of capacity utilization 60% 70% 80%

Particulars

A 1 month average value of raw materials

6.55 7.65 8.74

B 1/8 days cost of goods under process

0.86 1.00 1.1S4

C ¼ month value of Finished stock 1.76 2.05 2.33

D ½ months value of bill receivable 3.59 4.18 4.76

E 1 month working expenses 0.35 0.38 0.41

Total 13.11 15.26 17.38

Bank borrowing (75% of ABC&D) 9.57 11.16 12.73

to say 9.50 11.00 12.50

Margin money 3.61 4.26 4.88

COST OF THE SCHEME

Particulars Amount Rs. In Lakh

A Fixed Asset

(i) Land & land development

4.20

(ii) Building & civil work 9.50

(iii) Plant & machinery 3.20

(iv) Misc fixed assets 1.70

(v) Preoperative 0.70

Sub Total 19.30

B Working capital(on 50% capacity

utilization)

13.11

Total32.41

MEANS OF FINANCE

Particulars Amount Rs in lakh

Promoter’s contribution 6.65

Subsidy D.G set 0.70

Land 1.90

Term Loan 11.00

Working Capital Loan 9.50

Def payment in respect of Land

2.66

Total 32.41

PRODUCTION & PROFITABILITY ESTIMATES

The estimated profitability statement giving details of the cost of

production, sales & other expenses for first 6 years of operation of

the unit. The projections show sufficient surplus from operations to

take care of repayment obligations will in time. The following

assumptions have been taken into consideration while computing

the expenses:-

(a)Cost price of the Paddy is taken on an average.

(b)Selling price of the finished product is taken on an average for

the whole year.

(c)Rent rates & Insurance has been considered @ 5% on the

project outlay.

(d)Rate of interest on Term Loan & working Capital Loan has

been taken as per present norms.

(e)Deprecation has been considered on W.D.V. method.

(f) Administrative expenses have been considered @ 10% on the

Amount of Salary/wages & contract labour charges.

(g)VAT, if any is to be charged from customers and to be

deposited to the department so it has not been considered

while computing.

(h)Income Tax has been calculated as per provisions applied for

the financial year 2008-09.

REQUIREMENT OF RAW MATERIALS

Per Annum on 100% Capacity Utilization

Particulars Qty Rate AmountRs in lakh

Paddy 1600MT 8000/-MT 128.00

Total 128.00

REQUIREMENT OF PACKING MATERIALS

Per Annum on 100% capacity utilization

Particulars Qty Rate AmountRs in lakh

Bags(50kg)

21500 14/- 3.01

Misc L.S 2.5% above

0.08

To say Rs 3.09 lakh

Note- Broken Rice /coarse Maize are to packed in old bags in which it comes to

REQUIREMENT OF RAW MATERIALS & PACKING MATERIALS ON DIFFERENT LEVEL OF CAPACITY

Amount Rs in lakh

Year ofOperation

Level of capacity

Utilization

Raw Materials

Packing Materials

Total

- 100% 128.00 3.09 131.09

I 60% 76.80 1.84 78.64

II 70% 89.60 2.16 91.76

III & onward

80% 102.40 2.47 104.87

UTILITIES

The unit will require following utilities:-

(i) Water

(ii) Power

(iii) Diesel

WATER

Water will be required for the drinking and cleaning purpose from own borwell. There will be no requirement of water in processing.

POWER

The electricity will be required only for the lighting purpose. 2 KB. commercial load will solve the purpose which will cost approx 10000.

Consumption and cost over power will be as follows:

Connected Load : 25 H.P

Consumption : 25 X 6 X 746 X 300

(As Power Is Assumed To

6hrs Be Available On Average) : 33,570 Units/Annum

Cost @ 5/25 Per Unit : 33,570 X 5.25

: 1, 76,242/50

Add Meter Rent : 600/-

Add Cost towards Lighting : 10800/-

: -------------------

Cost per Annum : 1, 87,642/-

To Say : Rs 1.88 Lakh

----------------

Diesel

Diesel will be required to run D.G.Set during loadscheding by BSEB. It is for 2Hrs/shift. The cost towards running of D.G Set will be as follows:-

Consumption

Per Hr = 2.00lit

Per Annum = 2 x 300 x 2

= 1200 Lit

Cost @35/- Per Liter

Inclusive Of Lubricants = 35 x 1200

= Rs 42,000/-

Hence Expenditure over UTILITIES

Year ofoperation

Level ofCapacity utilization

Electricity(Rs in lakh)

Fuel(Rs in lakh)

Total

I 60% 1.13 0.25 1.38

II 70% 1.32 0.29 1.61

III onward

80% 1.50 0.34 1.84

MAN POWER REQUIREMENT

There will be two types of manpower. One of personal nature and other will be of contract nature to be paid piecemeal basis. The details of manpower are as follows:

S.No Situation No Salary/wagesPer month

Amount

Production section

1 Skilled operator

1 3000/- 3000.00

2 Semi skilled 2 2500/- 5000.00

Administration/Sale

1 Manager 1 3000/- 3000.00

2 GUARD 2 2000/- 4000.00

SUB TOTAL 15000.00

Add : perks 20% 3000.00

Total 18000.00

N.B : Provision of yearly increment @2%Contract Labor Wages

Paddy processing qty 800MT@50/-MT Rs. 80,000.00on 60% Capacity Utilization Rs. 48,000.00on 70% Capacity Utilization Rs. 56,000.00on 80% Capacity Utilization Rs. 64,000.00

ADMINISTRATIVE EXPENDITURE

Administrative expenditure has been considered @ 10% of the total salary/wages & contact labour charges paid during the year towards cell phone charges., stationery, conveyance, traveling and misc. expenditure of administrative nature required to be done for smooth running of the unit the figure comes as under :-

Year ofOperation

Salary/wages Contract wages

Total AdministrativeExpenditureRs in lakh

I 2.16 0.48 2.64 0.26

II 2.20 0.56 2.76 0.28

III 2.24 0.64 2.88 0.29

IV 2.28 0.64 2.92 0.29

V 2.33 0.64 2.97 0.30

VI 2.38 0.64 3.02 0.30

REPAIR & MAINTENANCE

The yearly expenditure towards repair and maintenance has been considered on the cost of Building & Civil works, Plant & machineries & its installation and misc fixed assets i.e. 9.25 lakh. The figures are as under

Year ofOperation

Rate of repair& Maintenance

AmountRs in lakh

I 2% 0.30

II 2.5% 0.36

III 3% 0.43

IV 4% 0.57

V & onward 5% 0.72

RENT, RATES & INSURANCE

Yearly rent, rates and insurance is to be considered @ 0.5% of the project outlay i.e. Rs 21.08 which comes to Rs 0.11 lakh

DEPRECTION

Year ofOperation

Assets Amount Rs in Lakh

Rate ofDeprecation

Building &Civil work

Plant M/c &Misc Fixed

Asset

Total

10% 15%

I Value 9.50 4.90 14.40

Deprecation .95 0.74 1.18

II Value 8.55 4.16 12.71

Deprecation 0.85 0.62 1.47

III Value 7.69 3.54 11.23

Deprecation 0.76 0.53 1.29

IV Value 6.92 3.01 9.93

Deprecation 0.69 0.45 1.14

V Value 6.2 2.56 8.76

Deprecation .62 0.38 1.00

VI Value 5.60 2.18 7.78Deprecation

0.50 0.33 0.83

VII Value 5.10 1.85 6.95

YEARLY SALES EARNING(On 100% capacity utilization)

Item Qty Rate Amount Rs in lakh

Rice 1008 MT 1450/- MT146.16

Broken rice 64.00 MT 8000/- MT5.12

Brae 112.00MT 4000/- MT4.48

Husk 400MT 500/- MT2.00

Total157.76

Hence sales earning on different level of capacities utilization

Amount Rs in lakh

Year ofOperation

Level ofCapacity

SalesEarning

TradeDiscount

Net salesEarning

I 60% 94.66 1.89 92.77

II 70% 110.43 2.21 108.22

III & onward 80% 126.21 2.52 123.69

SELLING EXPENSE

Selling Expenses have been considered @2% on the Net Sales

earning for middle man for

smooth Sales & realization of sales proceeds the figure come as

under

Year of

Operation

Level of

Capacity

Net Sales Selling Exp

I 60% 92.77 1.86

II 70% 108.22 2.16

III & onward 80% 123.69 2.47