Model Detailed Project Report

BESAN PLANT UNIT

Prepared by

National Institute of Food Technology

Entrepreneurship and Management(NIFTEM)
Plot No. 97, Sector 56, HSIIDC, Industrial Estate, Kundli,
Sonipat, Haryana 131028
Ministry of Food Processing Industries, Government of India
1. INTRODUCTION

BESAN PLANT

Besan is primarily prepared from grinding of Chana Dal. This is a very

important food. It contains large quantities of protein and vitamins. Besan is
a product obtained by grinding, dried and decuticled Bengal Gram. Besan is
a gram flour widely consumed in India. It is yellowish in colour and possess
characteristic gram taste and smell.

Chickpea flour is naturally gluten-free as it is solely made of chickpeas and

also rich in protein, fiber, and other vitamins and minerals. Chickpea flour is
a staple ingredient in South Asia and Southern Europe. However, it has
recently gained popularity worldwide as gluten-free flour as it can be used
as part of a gluten-free flour mix for baked goods, as a binder for veggie
burgers and fritters, as a thickener for soups and as a subtle flavor which
makes it perfect for desserts as well as savory dishes.
Indian snacks and namkeen industry is growing at the rate of 10% per annum
with increase in urbanization, changing life style and growth in per capita
income. Besan is rich in nutrition and it is very common in Indian food
preparations. The growth in demand is also due to increase in population
and rising exports of products made from besan.

2. MARKET POTENTIAL:

The global chickpea flour market continues to be influenced by a range of

macroeconomic and microeconomic factors. Increasing awareness on the
benefits of health and wellness of chickpea flour is fueling adoption in
developed countries. In many Asian countries, especially India, chickpea
flour has been a staple, and has been used in the preparation of many
cuisines. The global Chickpea Flour market is valued at USD 3.21 billion in 2016
and is expected to reach USD 5.33 billion by the end of 2026, growing at a CAGR
of 5.2 % between 2018 & 2026.

Since the COVID-19 virus outbreak in December 2019, the disease has
spread to almost 100 countries around the globe with the World Health
Organization declaring it a public health emergency. The global impacts of
the coronavirus disease 2019 (COVID-19) are already starting to be felt, and
will significantly affect the Gram Flour market in 2020.

India is one of the most important markets for chickpea flour, owing to the
high production and consumption of chickpea in the country. The harvesting
of chickpea is done during the month of mid-January to mid-March, and a
decline in production during this time has the potential to alter the status quo
in the global demand and supply.

Chickpea flour is used in a wide range of applications, including bakery and

confectionary, extruded products, beverages, animal feed, and dairy
products. Among these, demand for chickpea flour is most formidable in
bakery and confectionary segments. By 2026, demand for chickpea flour
through bakery and confectionary segment is likely to be worth nearly US$
2.5 Bn.

3. PRODUCT DESCRIPTION

3.1 PRODUCT USES

1. In India it is popular as Besan flour and is used in various Indian recipes

like ‘besankeladdu’, Bhajia, pakode, paraths, Curry etc. Gram flour is
also used in making sweat dishes as well as in preparing instant mixes
available in market. Chickpea flour, chana or gram flour, besan flour is
used commonly throughout India and in parts of the Mediterranean also.
2. It is also perfect as a thickener in curries and coatings in different kinds
of fries. It is a substitute of egg for vegetarian people and it has a high in
proteins and can be used instead of egg coatings in various recipes.

3. Apart from its capacity to make enhanced fried items and delicious
recipes, it is also used as a facial mask mixing with milk or yogurt and
turmeric and is popular among young women in Asia.

4. This face mask has proven to be successful as a cleanser and whitening

skin. Gram flour is a versatile product and used in many preparations
throughout the year. Apart from individual households, there are some
wholesale consumers like restaurants, canteens, caterers, clubs etc. who
use these products frequently.

5. As Indians love spicy and sweet recipes and besan is a very important
ingredient in these items, thus it enjoys continuous use in Indian kitchens
all through the year.

3.2 Raw Material sources

Yellow chana dal is the main raw material for preparation of gram flour.
Yellow chana dal is popularly known as a good source of protein. It can be
added to your daily diet to control diabetes and blood sugar levels naturally.

Average raw material wholesale rate of yellow chana Dal is approx. Rs. 60-
65 per KG.
 3.3 MANUFACTURING PROCESS

Besan Processing Unit

 Cleaning: Eliminate pebbles, broken grains and other impurities from

Gram.

 Conditioning: Based on physical properties of gram dal, remove other

coloured gram halves. Water content, if any, should be removed by
drying to maintain minimum 12 to 14% moisture.

 Milling: The gradual milling system should be adopted for milling and
operation consists of breaking, scalping and purification, reduction and
dressing. Thus obtained flour is further pass through battery of sieving
machines to obtained super fine grade and fine grade material. The
husk separated is collected from other chutes, whereas other sieved
coarse material again feed-back for milling into roller machine.

 Finishing: Sometimes, finished excellent flour (besan) is mixed to

obtain a standard and uniform desired properties, characteristics and
colour.

 Besan is packed directly in gunny bags, poly-line gunny bags for bulk
selling and in laminated pouches or poly-bags for retail selling.

4. PROJECT COMPONENTS

4.1 Land

Land required 2000 square feet approx.

Approximate rent for the same is Rs.30000-35000 per month.

 4.2 Plant & Machinery

Besan Processing section

S.N. Item Description Image

1 Bucket Elevator 4" Bucket

Complete with Gear Motor-
Bucket elevators are designed to
move flowing powders or bulk
solids vertically.

2 Storage Tank For Dal 300kg: For

storing of besan.
3 Impact Pulverizer Besan Milling
Machines

4 Pneumatic Lift complete with

accessories(45000*2)

5 Motor 30hp x1440Rpm

6 Dust Collector with Sleeve

 7 Centrifugal Machines with motor
& sieves

Note: Total Cost of plant & machinery is Rs.9,42,400 excluding GST and
transportation cost.

4.3 Misc. Assets

S.N. Item Description Rate

1 Electrical fitting & DJ set 1,00,000

2 Furniture and equipment’s 50,000

4.4 Power Requirement

The borrower shall require power load of 33-35 HP which shall be applied
with Power Corporation. However, for standby power arrangement the
borrower shall also purchase DG Set.

4.5 Manpower Requirement

6-7 Manpower are required for the Besan manufacturing unit.

Includes:

2 Skilled Labour

2-3 Unskilled Labour

2 Helper
5. FINANCIALS

5.1 Cost of Project

COST OF PROJECT
(in Lacs)

Own Bank
PARTICULARS AMOUNT Contribution Finance
25.00% 75.00%
Land & Building Owned /rented
Plant & Machinery 9.42 2.36 7.07

Furniture & Fixtures and Other Assets 1.50 0.38 1.13

Working capital 8.00 2.00 6.00

Total 18.92 4.73 14.19

5.2 Means of Finance

MEANS OF FINANCE
(in Lacs)

PARTICULARS AMOUNT

Own Contribution 4.73

Bank Loan 8.19

Working capital Limit 6.00

Total 18.92
5.3 Projected Balance Sheet

(in Lacs)
PROJECTED BALANCE SHEET
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Liabilities

Capital

opening balance 5.43 7.12 9.25 11.10

Add:- Own Capital 4.73

Add:- Retained Profit 2.70 4.69 6.13 7.86 10.11

Less:- Drawings 2.00 3.00 4.00 6.00 7.50

Closing Balance 5.43 7.12 9.25 11.10 13.71

Term Loan 7.28 5.46 3.64 1.82 -

Working Capital Limit 6.00 6.00 6.00 6.00 6.00

Sundry Creditors 3.74 4.31 4.91 5.62 6.37

Provisions & Other Liab 0.40 0.50 0.60 0.72 0.86

TOTAL : 22.85 23.39 24.40 25.26 26.95

Assets

Fixed Assets ( Gross) 10.92 10.92 10.92 10.92 10.92

Gross Dep. 1.56 2.90 4.04 5.02 5.85

Net Fixed Assets 9.36 8.02 6.88 5.90 5.07

Current Assets

Sundry Debtors 4.08 4.86 5.56 6.30 7.15

Stock in Hand 8.16 9.36 10.65 12.17 13.78

Cash and Bank 1.26 1.14 1.31 0.89 0.95

TOTAL : 22.85 23.39 24.40 25.26 26.95

5.4 Projected Cash Flow
(in Lacs)
PROJECTED CASH FLOW STATEMENT
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

SOURCES OF FUND

Own Margin 4.73

Net Profit 2.70 4.69 6.26 8.19 10.70

Depreciation & Exp. W/off 1.56 1.34 1.14 0.98 0.84

Increase in Cash Credit 6.00 - - - -

Increase In Term Loan 8.19 - - - -

Increase in Creditors 3.74 0.56 0.60 0.71 0.75

Increase in Provisions & Oth lib 0.40 0.10 0.10 0.12 0.14

TOTAL : 27.33 6.69 8.10 9.99 12.44

APPLICATION OF FUND

Increase in Fixed Assets 10.92

Increase in Stock 8.16 1.21 1.28 1.52 1.61

Increase in Debtors 4.08 0.78 0.70 0.74 0.85

Repayment of Term Loan 0.91 1.82 1.82 1.82 1.82

Drawings 2.00 3.00 4.00 6.00 7.50

Taxation - - 0.13 0.33 0.59

TOTAL : 26.07 6.81 7.93 10.41 12.38

Opening Cash & Bank Balance - 1.26 1.14 1.31 0.89

Add : Surplus 1.26 (0.12) 0.17 (0.42) 0.06

Closing Cash & Bank Balance 1.26 1.14 1.31 0.89 0.95
5.5 Projected Profitability
(in Lacs)
PROJECTED PROFITABILITY STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Capacity Utilization % 50% 55% 60% 65% 70%

SALES

Gross Sale

Besan 111.36 132.65 151.64 171.78 195.09

Total 111.36 132.65 151.64 171.78 195.09

COST OF SALES

Raw Material Consumed 93.60 107.71 122.69 140.40 159.26

Electricity Expenses 3.00 3.45 3.97 4.56 5.02

Depreciation 1.56 1.34 1.14 0.98 0.84

Wages & labour 5.04 5.54 6.10 6.71 7.38

Repair & maintenance 1.11 1.33 1.52 1.72 1.95

Cost of Production 104.32 119.37 135.41 154.37 174.45

Add: Opening Stock /WIP - 3.48 3.98 4.51 5.15

Less: Closing Stock /WIP 3.48 3.98 4.51 5.15 5.81

Cost of Sales 100.84 118.87 134.88 153.73 173.78

GROSS PROFIT 10.52 13.79 16.76 18.05 21.31

Salary to Staff 1.68 1.85 2.03 2.24 2.46

Interest on Term Loan 0.80 0.71 0.51 0.31 0.11

Interest on working Capital 0.66 0.66 0.66 0.66 0.66

Rent 3.84 4.22 4.65 5.11 5.62

selling & adm exp 0.84 1.66 2.65 1.55 1.76

TOTAL 7.82 9.10 10.50 9.86 10.61

NET PROFIT 2.70 4.69 6.26 8.19 10.70

Taxation 0.13 0.33 0.59

PROFIT (After Tax) 2.70 4.69 6.13 7.86 10.11

5.6 Production and Yield

COMPUTATION OF PRODUCTION OF BESAN

Items to be Manufactured

Besan

Machine Production capacity per Hour 200 KG

Operational Capacity per hour (taken) 120 KG

Working hours in a day 8

Production Per Day 960

No of Working Days in Month 25

No of Working Days in a Year 300

machine capacity per annum 288,000 KG

Production of Besan

Production Capacity KG
1st year 50% 144,000
2nd year 55% 158,400
3rd year 60% 172,800
4th year 65% 187,200
5th year 70% 201,600

Raw Material Cost

Year Capacity Rate Amount

Utilization (per KG) (Rs. in lacs)

1st year 50% 65.00 93.60

2nd year 55% 68.00 107.71

3rd year 60% 71.00 122.69

4th year 65% 75.00 140.40

5th year 70% 79.00 159.26

5.7 Sales Revenue

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 4,800 5,280 5,760 6,240

Production 144,000 158,400 172,800 187,200 201,600

Less : Closing Stock 4,800 5,280 5,760 6,240 6,720
Net Sale 139,200 157,920 172,320 186,720 201,120
sale price per KG 80.00 84.00 88.00 92.00 97.00
Sales (in Lacs) 111.36 132.65 151.64 171.78 195.09
5.8 Working Capital Assessment
(in Lacs)
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Finished Goods

3.48 3.98 4.51 5.15 5.81

Raw Material

4.68 5.39 6.13 7.02 7.96

Closing Stock 8.16 9.36 10.65 12.17 13.78

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)

Particulars Amount Own Margin Bank Finance

Finished Goods & Raw Material 8.16

Less : Creditors 3.74

Paid stock 4.41 25% 1.10 75% 3.31

Sundry Debtors 4.08 25% 1.02 75% 3.06

8.50 2.12 6.37

WORKING CAPITAL LIMIT DEMAND ( from Bank) 6.00

5.9 Power, Salary & Wages Calculation

Utility Charges (per month)

Particulars value Description
Power connection required 25 KWH
consumption per day 200 units

Consumption per month 5,000 units

Rate per Unit 10 Rs.
power Bill per month 50,000 Rs.

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary

Skilled (in thousand rupees) 12,000 2 24,000

Unskilled (in thousand rupees) 9,000 2 18,000

Total salary per month 42,000

Total annual labour charges (in lacs) 5.04

BREAK UP OF Staff Salary CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary

Helper 7,000 2 14,000

Total salary per month 14,000

Total annual Staff charges (in lacs) 1.68

5.10 BEP

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 111.36 132.65 151.64 171.78 195.09

Less : Op. WIP Goods - 3.48 3.98 4.51 5.15

Add : Cl. WIP Goods 3.48 3.98 4.51 5.15 5.81

Total Sales 114.84 133.15 152.18 172.41 195.76

Variable & Semi Variable Exp.

Raw Material Consumed 93.60 107.71 122.69 140.40 159.26

Electricity Exp/Coal Consumption at 85% 2.55 2.93 3.37 3.88 4.27

Wages & Salary at 60% 4.03 4.44 4.88 5.37 5.90

Selling & adminstrative Expenses 80% 0.67 1.33 2.12 1.24 1.40

Interest on working Capital 0.66 0.66 0.66 0.66 0.66

Repair & maintenance 1.11 1.33 1.52 1.72 1.95

Total Variable & Semi Variable Exp 102.62 118.39 135.24 153.26 173.45

Contribution 12.21 14.76 16.94 19.15 22.31

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 0.45 0.52 0.60 0.68 0.75

Wages & Salary at 40% 2.69 2.96 3.25 3.58 3.94

Interest on Term Loan 0.80 0.71 0.51 0.31 0.11

Depreciation 1.56 1.34 1.14 0.98 0.84

Selling & adminstrative Expenses 20% 0.17 0.33 0.53 0.31 0.35

Rent 3.84 4.22 4.65 5.11 5.62

Total Fixed Expenses 9.51 10.08 10.68 10.97 11.61

Capacity Utilization 50% 55% 60% 65% 70%

OPERATING PROFIT 2.70 4.69 6.26 8.19 10.70

BREAK EVEN POINT 39% 38% 38% 37% 36%

BREAK EVEN SALES 89.45 90.88 95.92 98.73 101.85

5.11 Financial Ratio Analysis

FINANCIAL INDICATORS

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
TURNOVER 111.36 132.65 151.64 171.78 195.09
GROSS PROFIT 10.52 13.79 16.76 18.05 21.31

G.P. RATIO 9.45% 10.39% 11.05% 10.51% 10.92%

NET PROFIT 2.70 4.69 6.26 8.19 10.70

N.P. RATIO 2.42% 3.53% 4.13% 4.77% 5.49%

CURRENT ASSETS 13.50 15.36 17.52 19.36 21.88

CURRENT LIABILITIES 10.14 10.81 11.51 12.34 13.23
CURRENT RATIO 1.33 1.42 1.52 1.57 1.65

TERM LOAN 7.28 5.46 3.64 1.82 -

TOTAL NET WORTH 5.43 7.12 9.25 11.10 13.71

DEBT/EQUITY 1.34 0.77 0.39 0.16 -

TOTAL NET WORTH 5.43 7.12 9.25 11.10 13.71

TOTAL OUTSIDE LIABILITIES 17.42 16.27 15.15 14.16 13.23

TOL/TNW 3.21 2.29 1.64 1.27 0.97

PBDIT 5.73 7.39 8.57 10.13 12.31

INTEREST 1.46 1.37 1.17 0.97 0.77

INTEREST COVERAGE RATIO 3.91 5.40 7.33 10.46 16.01

WDV 9.36 8.02 6.88 5.90 5.07

TERM LOAN 7.28 5.46 3.64 1.82 -

FACR 1.29 1.47 1.89 3.24 -

5.12 DSCR

CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 4.26 6.02 7.27 8.83 10.94

Interest on Term Loan 0.80 0.71 0.51 0.31 0.11
Total 5.07 6.73 7.78 9.14 11.05

REPAYMENT
Instalment of Term Loan 0.91 1.82 1.82 1.82 1.82
Interest on Term Loan 0.80 0.71 0.51 0.31 0.11

Total 1.71 2.53 2.33 2.13 1.93

DEBT SERVICE COVERAGE RATIO 2.96 2.66 3.34 4.29 5.73

AVERAGE D.S.C.R. 3.80
5.13 Depreciation
(in Lacs)
COMPUTATION OF DEPRECIATION
Description Plant & Machinery Furniture TOTAL

Rate of Depreciation 15.00% 10.00%

Opening Balance - - -

Addition 9.42 1.50 10.92

Total 9.42 1.50 10.92

Less : Depreciation 1.41 0.15 1.56

WDV at end of Year 8.01 1.35 9.36

Additions During The Year - - -

Total 8.01 1.35 9.36

Less : Depreciation 1.20 0.14 1.34

WDV at end of Year 6.81 1.22 8.02

Additions During The Year - - -

Total 6.81 1.22 8.02

Less : Depreciation 1.02 0.12 1.14

WDV at end of Year 5.79 1.09 6.88

Additions During The Year - - -

Total 5.79 1.09 6.88

Less : Depreciation 0.87 0.11 0.98

WDV at end of Year 4.92 0.98 5.90

Additions During The Year - - -

Total 4.92 0.98 5.90

Less : Depreciation 0.74 0.10 0.84

WDV at end of Year 4.18 0.89 5.07

5.14 Repayment schedule

REPAYMENT SCHEDULE OF TERM LOAN

Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance
1st month - 8.19 8.19 - - 8.19
2nd month 8.19 - 8.19 0.08 - 8.19
3rd month 8.19 - 8.19 0.08 - 8.19
4th month 8.19 - 8.19 0.08 8.19
5th month 8.19 - 8.19 0.08 8.19
6th month 8.19 - 8.19 0.08 8.19
7th month 8.19 - 8.19 0.08 0.15 8.04
8th month 8.04 - 8.04 0.07 0.15 7.89
9th month 7.89 - 7.89 0.07 0.15 7.74
10th month 7.74 - 7.74 0.07 0.15 7.58
11th month 7.58 - 7.58 0.07 0.15 7.43
12th month 7.43 - 7.43 0.07 0.15 7.28
0.80 0.91
2nd Opening Balance
1st month 7.28 - 7.28 0.07 0.15 7.13
2nd month 7.13 - 7.13 0.07 0.15 6.98
3rd month 6.98 - 6.98 0.06 0.15 6.83
4th month 6.83 - 6.83 0.06 0.15 6.67
5th month 6.67 - 6.67 0.06 0.15 6.52
6th month 6.52 - 6.52 0.06 0.15 6.37
7th month 6.37 - 6.37 0.06 0.15 6.22
8th month 6.22 - 6.22 0.06 0.15 6.07
9th month 6.07 - 6.07 0.06 0.15 5.92
10th month 5.92 - 5.92 0.05 0.15 5.76
11th month 5.76 - 5.76 0.05 0.15 5.61
12th month 5.61 - 5.61 0.05 0.15 5.46
0.71 1.82
3rd Opening Balance
1st month 5.46 - 5.46 0.05 0.15 5.31
2nd month 5.31 - 5.31 0.05 0.15 5.16
3rd month 5.16 - 5.16 0.05 0.15 5.01
4th month 5.01 - 5.01 0.05 0.15 4.85
5th month 4.85 - 4.85 0.04 0.15 4.70
6th month 4.70 - 4.70 0.04 0.15 4.55
 7th month 4.55 - 4.55 0.04 0.15 4.40
8th month 4.40 - 4.40 0.04 0.15 4.25
9th month 4.25 - 4.25 0.04 0.15 4.10
10th month 4.10 - 4.10 0.04 0.15 3.94
11th month 3.94 - 3.94 0.04 0.15 3.79
12th month 3.79 - 3.79 0.03 0.15 3.64
0.51 1.82
4th Opening Balance

1st month 3.64 - 3.64 0.03 0.15 3.49

2nd month 3.49 - 3.49 0.03 0.15 3.34
3rd month 3.34 - 3.34 0.03 0.15 3.19
4th month 3.19 - 3.19 0.03 0.15 3.03
5th month 3.03 - 3.03 0.03 0.15 2.88
6th month 2.88 - 2.88 0.03 0.15 2.73
7th month 2.73 - 2.73 0.03 0.15 2.58
8th month 2.58 - 2.58 0.02 0.15 2.43
9th month 2.43 - 2.43 0.02 0.15 2.28
10th month 2.28 - 2.28 0.02 0.15 2.12
11th month 2.12 - 2.12 0.02 0.15 1.97
12th month 1.97 - 1.97 0.02 0.15 1.82
0.31 1.82
5th Opening Balance
1st month 1.82 - 1.82 0.02 0.15 1.67
2nd month 1.67 - 1.67 0.02 0.15 1.52
3rd month 1.52 - 1.52 0.01 0.15 1.37
4th month 1.37 - 1.37 0.01 0.15 1.21
5th month 1.21 - 1.21 0.01 0.15 1.06
6th month 1.06 - 1.06 0.01 0.15 0.91
7th month 0.91 - 0.91 0.01 0.15 0.76
8th month 0.76 - 0.76 0.01 0.15 0.61
9th month 0.61 - 0.61 0.01 0.15 0.46
10th month 0.46 - 0.46 0.00 0.15 0.30
11th month 0.30 - 0.30 0.00 0.15 0.15
12th month 0.15 - 0.15 0.00 0.15 -
0.11 1.82
DOOR TO DOOR 60 MONTHS
MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
6. LICENSE & APPROVALS

 Obtain the GST registration.

 Additionally, obtain the Udyog Aadhar registration Number.
 FSSAI License
 Choice of a Brand Name of the product and secure the name with
Trademark if required.

Implementation Schedule

S.N. Activity Time Required

(in Months)

1 Acquisition Of premises 1

2 Procurement & installation of Plant & Machinery 1-2

3 Arrangement of Finance 1-2

4 Requirement of required Manpower 1

Total time Required (some activities shall run 3-4 Months

concurrently)
7. ASSUMPTIONS

1. Operational Production Capacity of Besan is 900-1000 Kgs per day. First year,
Capacity has been taken @ 50%.

2. Working shift of 8 hours per day has been considered.

3. Raw Material stock is for 15 days and Finished goods Closing Stock has

been taken for 10 days.

4. Credit period to Sundry Debtors has been given for 11days.

5. Credit period by the Sundry Creditors has been provided for 12 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,

1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 25 KW.

10. Selling Prices & Raw material costing has been increased by 5% & 5%
respectively in the subsequent years.
 Limitations of the Model DPR and Guidelines for Entrepreneurs

Limitations of the Model DPR

i. This model DPR has provided only the basic standard components and methodology to be
adopted by an entrepreneur while submitting a proposal under the Formalization of Micro Food
Processing Enterprises Scheme of MoFPI.

ii. This is a model DPR made to provide general methodological structure not for specific
entrepreneur/crops/location. Therefore, information on the entrepreneur, forms and structure
(proprietorship/partnership/cooperative/ FPC/joint stock company) of his business, details of
proposed DPR, project location, raw material base/contract sourcing, entrepreneurs own SWOT
analysis, detailed market research, rationale of the project for specific location, community
advantage/benefit from the project, employment generation and many more detailed aspects not
included.

iii. The present DPR is based on certain assumptions on cost, prices, interest, capacity utilization,
output recovery rate and so on. However, these assumptions in reality may vary across places,
markets and situations; thus the resultant calculations will also change accordingly.