PROJECT PROFILE

On Rice Mill

For

M/s PRIYA RICE MILL

Industrial Estate, Bettiah, West Champaran

Promoted by: Computed by

Mr. ASHOK KUMAR GUPTA e-Solutaions
Prem Kunj,
Sikandarpur
Muzaffarpur
 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

32.41
Total
PROFITABILITY (1 year capacity utilization 60%)
st

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

CLEANER De Husker Separator Rice

Separator Production

HUSK
BRAN Marketable Rice
ELEVATOR

ELEVATOR
Foreign Particles

Paddy Packing in 50 Kg

STORAGE BIN STORAGE BIN CLEANED

Weighing

Stitching

BROKEN
STORAGE BIN RICE RICE Starting for
Market

FRESH RICE
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 3.80

been allotted by BIADA at rural
industrial estate, Bettiah

LAND DEVELOPMENT -
As the plot is lower than the road earth 0.20
filling is required. It has been estimated
to

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:

Amount
PARTICULARS AREA SPECIFICATION Rs in
lakh

Total

A Processing 50 x 50 Acc truss 5.00

Shade x 18 =
2500ft

B Godwon 50 x 25x On stiphners Acc 1.00

Open husk 18 roofs , no walls
shade 1250ft

C Godown 30 x25 Acc truss roof 1.50

750ft With pucca walls
Brick soling with
D Pathar for 100x joint tipping 0.30
grains sun 100 =
drying brick 10,000sf
soling t

E Office 10x20x1 RCC roof pucca 0.50

0h const
=200sft

F Boundary LS 1.20
walls
Gate pillars,
inside
pathways
Guardroom
Total 9.50

PLANT & MACHINERY

 QTY RATE AMOUNT ( RS )
S.NO DESCRIPTION
D-Husker DMR-6”-6308 with
1 1 pc 35000.00 35,000.00
Aspirator
2 Rice Polisher With Collar 1pc 27000.00 27000.00
3 1 pc
Paddy separator -6plate -4”*4” 27000.00 27000.00
4 1 pc
Paddy cleaner attached fan-30”*36” 25000.00 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
13 1 pc
Flate pully-6*2.5bor 250.00 250.00
14 1 pc
v-pully-26*3 2184 2184
15 1 pc
v-pully-418*2 950 950.00
16 1 pc
v-pully-9*2 360 360.00
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 & 0.05

.
TACKLES

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 0.12

UP PERIOD

3. Interest during implementation 0.30

BSEB Security

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 Level of capacity Per Annum Paddy

operation utilization
- 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 Capacity Fresh rice Broken Bran Husk

Operation utilization rice

- 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 & 80% 806.40 51.2 89.6 320.00

onwards

REQUIREMENT OF WORKING CAPITAL

Amount Rs in lakh

Level of capacity utilization 60% 70% 80%

Particulars
A 1 month average value of raw 6.55 7.65 8.74
materials

B 1/8 days cost of goods under 0.86 1.00 1.1S4

process

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 4.20
development

(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 13.11

(on 50% capacity
utilization)
32.41
Total

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 2.66

Land

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 Amount
Rs in lakh

Paddy 1600MT 8000/-MT 128.00

Total 128.00

REQUIREMENT OF PACKING MATERIALS

Per Annum on 100% capacity utilization

Particulars Qty Rate Amount

Rs in lakh

Bags 21500 14/- 3.01

(50kg)
Misc L.S 2.5% 0.08
above
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 of Level of Raw Packing Total

Operation capacity Materials Materials
Utilization

- 100% 128.00 3.09 131.09

I 60% 76.80 1.84 78.64

II 70% 89.60 2.16 91.76

III & 80% 102.40 2.47 104.87

onward

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 of Level of Electricity Fuel Total

operation Capacity (Rs in (Rs in
utilization lakh) lakh)

I 60% 1.13 0.25 1.38

II 70% 1.32 0.29 1.61

III 80% 1.50 0.34 1.84

onward

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/wages Amount
Per month
Production
section
1 Skilled 1 3000/- 3000.00
operator
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. 80,000.00
on 60% Capacity Utilization Rs. 48,000.00
on 70% Capacity Utilization Rs. 56,000.00
on 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 of Salary/wages Contract Total Administrative

Operation wages Expenditure
Rs 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 of Rate of repair Amount
Operation & Maintenance Rs 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

Assets Amount Rs in Lakh

 Year of
Operation Building & Plant M/c & Total
Civil work Misc Fixed
Asset

Rate of
Deprecation 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 7.78

Deprecation
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

 146.16
Rice 1008 MT 1450/- MT
5.12
Broken rice 64.00 MT 8000/- MT
4.48
Brae 112.00MT 4000/- MT
2.00
Husk 400MT 500/- MT
157.76
Total

Hence sales earning on different level of capacities utilization

Amount Rs in lakh

Year of Level of Sales Trade Net sales

Operation Capacity Earning Discount Earning
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 Level of Net Sales Selling Exp

Operation Capacity
I 60% 92.77 1.86
II 70% 108.22 2.16
III & onward 80% 123.69 2.47