BUSINESS PLAN

ON

EXPANSION OF GALGAL PRIME RICE MILL

PREPARED BY:
Name: - Mr. Ojo, Oluwafemi Lucky
Address: - Tin Shed Gangare, Barkin Ladi Local Government
Area, Plateau State, Nigeria.
Phone Number: - +2349036362958
Email: - [email protected]
1. EXECUTIVE SUMMMARY

Galgal Prime Ltd, a Limited Liability Company registered with the

Corporate affairs commission of the Nigerian Government is an Agro-
processing company that specializes in rice milling. The Rice mill began
operation in September, 2021.

The CEO trained as a Pilot in South Africa. His passion for Agriculture
drove him into Agro-Processing. He currently sees to the day to day
running of the Rice Mill.

We observed that most of the locally milled rice were not free of stones,
dust and chaff. This led to establishment a Rice Mill that processes rice
of internal standard by the use of modern machine and equipments.

We acquired a 20 tons per day (20TPD) complete set of rice milling

machines from China, while the parboiling equipment with a capacity of
3 tons per day (3TPD) was locally fabricated.

We have been working with these equipments and have been able to
provide jobs for 22 people. Our product is stone-free, polished and
sorted.

Our operations are basically in two folds:

i. We buy paddy from farmers and process to rice which we sell to
dealers of rice as well as supermarkets and departmental stores.
Across Nigeria.
ii. Rice farmers bring in their paddy for processing and value addition;
this in turn means more income to the farmers as they are able to sell
their rice at a better price.

The parboiling equipments currently used by the Rice mill needs an upgrade
as it does not match the 20TPD Rice mill machine being used because it is
locally fabricated its operation is below standard and this affects the quality
of rice produced by the mill. It is difficult to operate during the raining
season as the current means by which we dry our parboiling use is by sun-
drying; this also limits the quantity of paddy that can be processed because
of lack of space for drying.

The rice mill is in need of 12 tons per Batch (12TPB) complete parboiling
plant as well as a 100kVA Power generator. This will help us improve on the
quality of our products and also ensure we are able to work during power
failures. We will in turn be able to create jobs for 37 people.

The 12 tons per Batch parboiling plant we need consist of :

i. The cleaning section

ii. Soaking section
iii. Cooking section
iv. Dryer section (including quick drying machine and low temperature)
v. Boiler section
vi. Control section for soaking, cooking and drying
vii. Installation materials and tools
2. PRODUCTION PROCESS

A rice mill is a food –processing facility where paddy is processed

to rice to be sold in the market. The raw material (paddy) is procured
from paddy fields, milled and processed hygienically in modern
machinery, dust –free environment and cleaned through sorting
machines.

The entire process can divided into two aspects:

a. The parboiling process: This is done by a parboiling plant. Parboiling is a

hydrothermal treatment in which paddy is soaked in water for about 8
hours; and thereafter steamed to obtained gelatinized rice. The process
seals any cracks within the rice, causing the rice to become harder and
resulting in a higher milling yield with less breakage.

Objectives of parboiling:

i. Increase the total and head yield of the paddy

ii. Prevent the loss of nutrients during milling.
iii. Salvage wet or damaged paddy.
iv. Prepare the rice according to the requirements of consumers.

The parboiling plant consists of Paddy Cleaner, Parboiling Tanks,

Elevators, High pressure fan, dryer, Heat Exchanger, Pipelines, valves etc.
12 tons per batch (12TPB) boiling plant
b. The milling process: The objective of the rice milling systems after
parboiling is to remove the husk and the bran layer of the rice kernel,
which makes the rice edible and free of impurities. This is achieved by
passing the parboiled paddy through a series of machines. The diagram
below gives us a simple illustration of a rice milling process.

Our 20 tons per day complete rice milling plant

 FUNCTION OF RICE MILL

CLEANING HULLING

MILLING

GRADING

POLISHING

SORTING

PACKAGING

- Legal structure: - Limited Liability

- Date of commencement of business: - September, 2021

- Type of Business: - Agro-Processing (Rice Mill)

- Location of Business: - Barkin Ladi,

Plateau State, Nigeria

3. BUSINESS DESCRIPTION

Galgal Prime Ltd is a limited liability company registered with the

Corporate Affairs commission of Nigeria. We began operation in
September 2021.
The business came to be formed as a result of my passion for agriculture
and Agro-Processing .
It all started with rice farming in 2019; and in 2021 we decided to go
into Agro-processing which led to the incorporation of Galgal Prime Ltd
as a Rice milling company.
As a rice milling company, we process paddy to rice by the use of
modern rice milling equipments. This is done through parboiling of
paddy and milling.
The company is located at Barkin Ladi Local Government Area of Plateau
State, Nigeria.
Our operations are in two folds;
1. We buy paddy from Farmers and process same to rice which we sell
to traders who deal on grains, they in turn sell to the public. We also
supply supermarket and departmental stores.
2. Farmers also bring their paddy for processing and value addition.
They sell their processed farm produce at a better price hence
making more income for their labour.
 4. OPERATIONS PLAN

4.1 Cash flow forecasting

CASHFLOW
Galgal Prime Rice Mill PROJECTIONS

Date July 2023 until Date :June 2024

JUL (R) AUG (R) SEP (R) OCT (R) NOV (R) DEC (R) JAN (R) FEB (R) MAR (R) APR (R) MAY (R) JUN (R) TOTAL (R)

3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 39,936,000

266,667 266,667 266,667 266,667 266,667 266,667 266,667 266,667 266,667 266,667 266,667 266,667 3,200,004

80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 960,000

28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 336,000

3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 44,432,004

3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 44,432,004

10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000

8,334 8,334 8,334 8,334 8,334 8,334 8,334 8,334 8,334 8,334 8,334 8,334 100,008

30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000

3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000

500 500 500 500 500 500 500 500 500 500 500 500 6,000

18,400 18,400 18,400 18,400 18,400 18,400 18,400 18,400 18,400 18,400 18,400 18,400 220,800

8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 100,800

16,700 16,700 16,700 16,700 16,700 16,700 16,700 16,700 16,700 16,700 16,700 16,700 200,400

96,584 96,584 96,584 96,584 96,584 96,584 96,584 96,584 96,584 96,584 96,584 96,584 1,159,008

3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 43,272,996
R
- 3,606,083 7,212,166 10,818,249 14,424,332 18,030,415 21,636,498 25,242,581 28,848,664 32,454,747 36,060,830 39,666,913 R43,272,996

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

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

3,606,083 7,212,166 10,818,249 14,424,332 18,030,415 21,636,498 25,242,581 20,848,664 32,454,747 36,060,830 39,666,913 43,272,996 46,879,079

- - - - - - - - - - - - -
 Inflation Inflation
Rate Inflation Rate Inflation Rate Rate

Galgal Rice Mill 5 YEAR PROJECTIONS 5% 5% 5% 5%

5 YR VIEW (CYCLES OF JULY 2023 to JUNE 2024 and
so on)

SALES INCOME YR 1 YR 2 YR 3 YR 4 YR 5 TOTAL

Rice 39,936,000 41,932,800 44,029,440 46,230,912 48,542,458 220,671,610

Milling for others 3,200,004 3,360,004 3,528,004 3,704,405 3,889,625 17,682,042

Broken Rice 960,000 1,008,000 1,058,400 1,111,320 1,166,886 5,304,606

Rice Bran 336,000 352,800 370,440 388,962 408,410 1,856,612

TOTAL INCOME 44,432,004 46,653,604 48,986,284 51,435,599 54,007,379 245,514,870

- - -

OPERATING COSTS

Electricity 120,000 126,000 132,300 138,915 145,861 663,076

Firewood 100,008 105,008 110,258 115,771 121,560 552,605

Transportation 360,000 378,000 396,900 416,745 437,582 1,989,227

Manager 36,000 37,800 39,690 41,675 43,758 198,923

Lease 15,000 15,750 16,538 17,364 18,233 82,885

Insurance 6,000 6,300 6,615 6,946 7,293 33,154

22 Staff 220,800 231,840 234,432 255,604 268,384 1,220,059

General Expenses 100,800 105,840 111,132 116,689 122,523 556,984

Diesel 200,400 210,420 220,941 231,988 243,588 1,107,337

TOTAL EXPENSES 1,159,008 1,216,958 1,277,806 1,341,696 1,408,781 6,404,249

PROFIT/(LOSS) 43,272,996 45,436,646 47,708,478 50,093,903 52,598,598 239,110,621

4.2 Profit plan

- The rice mill operates and makes profit in two major ways:

i. Purchase and process paddy to rice

We will source for paddy which is the major raw material for rice milling
from farmers.

We will process this paddy into rice which is packaged in our branded
bags and sold to rice dealers, supermarkets and departmental stores.

We also will make profit from the sales of Broken Rice and Rice Bran
which animal feed producers use in making feeds for livestocks. Broken
rice and rice bran are bye-products of rice milling .

ii Milling for others

With our ultra modern facility, farmers who intend to mill and package their
rice themselves are attracted to us. We will package for farmers in their
desire bags.

- OUR MISSION
To add value to rice using standard modern methods. To inspire others by
taking the lead in Agro-Processing.

- OUR TEAM
Our production team is comprised of myself as the C.E.O who oversees the
day to day running of the rice mill. With my background in aviation, I
certainly will ensure that things are done according to standard and
precision . We have a production manager with over five years experience
in rice milling using modern equipments.
 We have staff strength of 20 people who are trained on the various process
of rice milling.

5. LEGAL STRUCTURE OF BUSINESS:

Galgal Prime Ltd is a Limited Liability Company Registered with the

Corporate Affairs Commission of Nigeria in 2021.

6. PRODUCT AND SERVICES

- Galgal Rice Mill is engaged in the milling of paddy to rice using modern
equipments.
Our products and services are unique because unlike other local rice
mills, our rice is stone-free, graded, polished and colour sorted. This
makes our product stand side by side with imported rice.
Our prices are cheaper when compared with imported rice.
- We also mill and packaged rice for farmers who desire to add value to
their farm produce. This is a big relieve to them as they can now sell
their processed rice at better prices.
- Broken rice and rice bran are bye-products of rice milling process.
Producers of animal feet use these products in processing their feeds for
livestocks.
7. MARKETING AND SALES STRATEGY

7.1 Our clients

- Wholesale Rice Dealers

- Supermarkets and Departmental Stores.

- Rice Retailers.

- Animal Feed Producers.

- Ricer Farmers

Rice is a staple food in Nigeria that is consumed by everyone young and

old, rich and poor. People are in search of quality rice that is affordable.
Galgal prime Rice Mill will build a customer base of rice wholesalers in
various cities across Nigeria. We also will supply Supermarkets and
Departmental Stores who are in search of locally produced rice that is
stone-free, dust-free, polished and sorted.

We will reach out to clients via radio adverts, social media Platforms,
direct calls and viral campaigns.

Our clients will also have the privilege of us packaging in their

branded bags on request, mostly by Supermarkets and Departmental
Stores.
8.0 COMPETITIVE ANALYSIS

8.1 Direct Competitors.

There are currently Four Rice processors where Galga Prime Rice mill is
located. These processors make use of locally fabricated machines for
their operation, and their operational capacity is below 4 tons per day.

Galgal Prime Rice Mill has a 20 tons per day complete set of rice milling
machine that comprises of destoner, husker, grader, polisher and colour
sorter. At the moment, we have the most technologically advanced
machines. Our products are much better.

There are three other rice processing companies with modern

equipment located in the same state where Galgal Prime Rice Mill is
situated. We are in Barkin Ladi whilst, the three other companies are
located in Jos, and Shendam. These are over 100km from our location
hence they are not a threat to our operation.

Because we have a larger production capacity, our prices will certainly

be most competitive in the market locality.

8.2 Substitute competitors.

There are other grains Agro-Processors in our locality. They process
corn, wheat and cassava to flour. These products can be processed into
food that can serve as alternative to rice. But our milled rice is better in
quality, price and taste. Rice remains a staple food consumed daily by
households.
9.0 UNIQUE SELLING PROPOSITION

9.1 What is unique about us?

i. We have a set of modern rice milling machines that processes paddy to

rice which is good in quality, appearance and taste.

ii. The current capacity of our milling plant is 20 Tons Per Day (20TPD). We
can deliver orders faster than most of our competitors.

iii. We have an array of skilled workers with appreciable experience in rice

Milling.

iv. We have confidence in our product to stand side by side with the best
products in the market at a lower cost.

v. Our customers can call in and speak to someone 98% of the time.
 10 FINANCIAL PLAN

Cash flow forecasting

CASHFLOW
Galgal Prime Rice Mill PROJECTIONS

Date July 2023 until Date :June 2024

JUL (R) AUG (R) SEP (R) OCT (R) NOV (R) DEC (R) JAN (R) FEB (R) MAR (R) APR (R) MAY (R) JUN (R) TOTAL (R)

3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 3,328,000 39,936,000

266,667 266,667 266,667 266,667 266,667 266,667 266,667 266,667 266,667 266,667 266,667 266,667 3,200,004

80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 960,000

28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 28,000 336,000

3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 44,432,004

3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 3,702,667 44,432,004

10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 120,000

8,334 8,334 8,334 8,334 8,334 8,334 8,334 8,334 8,334 8,334 8,334 8,334 100,008

30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 360,000

3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000

500 500 500 500 500 500 500 500 500 500 500 500 6,000

18,400 18,400 18,400 18,400 18,400 18,400 18,400 18,400 18,400 18,400 18,400 18,400 220,800

8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 8,400 100,800

16,700 16,700 16,700 16,700 16,700 16,700 16,700 16,700 16,700 16,700 16,700 16,700 200,400

96,584 96,584 96,584 96,584 96,584 96,584 96,584 96,584 96,584 96,584 96,584 96,584 1,159,008

3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 3,606,083 43,272,996
R
- 3,606,083 7,212,166 10,818,249 14,424,332 18,030,415 21,636,498 25,242,581 28,848,664 32,454,747 36,060,830 39,666,913 R43,272,996

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

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

3,606,083 7,212,166 10,818,249 14,424,332 18,030,415 21,636,498 25,242,581 20,848,664 32,454,747 36,060,830 39,666,913 43,272,996 46,879,079

- - - - - - - - - - - - -
 Inflation Inflation
Rate Inflation Rate Inflation Rate Rate

Galgal Rice Mill 5 YEAR PROJECTIONS 5% 5% 5% 5%

5 YR VIEW (CYCLES OF JULY 2023 to JUNE 2024 and
so on)

SALES INCOME YR 1 YR 2 YR 3 YR 4 YR 5 TOTAL

Rice 39,936,000 41,932,800 44,029,440 46,230,912 48,542,458 220,671,610

Milling for others 3,200,004 3,360,004 3,528,004 3,704,405 3,889,625 17,682,042

Broken Rice 960,000 1,008,000 1,058,400 1,111,320 1,166,886 5,304,606

Rice Bran 336,000 352,800 370,440 388,962 408,410 1,856,612

TOTAL INCOME 44,432,004 46,653,604 48,986,284 51,435,599 54,007,379 245,514,870

- - -

OPERATING COSTS

Electricity 120,000 126,000 132,300 138,915 145,861 663,076

Firewood 100,008 105,008 110,258 115,771 121,560 552,605

Transportation 360,000 378,000 396,900 416,745 437,582 1,989,227

Manager 36,000 37,800 39,690 41,675 43,758 198,923

Lease 15,000 15,750 16,538 17,364 18,233 82,885

Insurance 6,000 6,300 6,615 6,946 7,293 33,154

22 Staff 220,800 231,840 234,432 255,604 268,384 1,220,059

General Expenses 100,800 105,840 111,132 116,689 122,523 556,984

Diesel 200,400 210,420 220,941 231,988 243,588 1,107,337

TOTAL EXPENSES 1,159,008 1,216,958 1,277,806 1,341,696 1,408,781 6,404,249

PROFIT/(LOSS) 43,272,996 45,436,646 47,708,478 50,093,903 52,598,598 239,110,621

11. CREATING JOB

Galgal Prime Rice Mill currently employs 22 youths and projects to

employ additional 15 persons as full time staff once the modern
parboiling equipment is installed. We will also create temporary
employment for 20 persons. This brings the total employment to 37
permanent workers and 20 temporary staff. By this we are impacting on
over 200 family members.

12. REASON FOR EXPANSION

- Galgal Prime Rice Mill currently has a complete set of rice milling plant
with 20 Tons Per Day (20TPD) milling capacity. The parboiling part of our
operation was locally fabricated and operates at less 3 Tons Per Batch.

We will love to expand our parboiling operation for the following

reasons:

1. Parboiling aspect of production is the most critical part of rice milling if it

is not gotten right, the end product will not be up to standard
irrespective of the quality of the rice milling equipment used.
The parboiling equipment we have at the moment is way below
standard as it was locally fabricated.

2. The capacity of our parboiling equipment is 3 tons per day (3TPD) this
does not match with the 20TPD rice milling machine. We currently
operate below capacity.
3. The modern parboiling equipment comes with a dryer; this makes it
possible to dry the parboiled rice with less space.
At the moment we sun-dry our parboiled rice. This makes it impossible
to dry in large quantity considering the amount of space available to us.
Drying is also not possible during the raining season. This means we are
practically out of business when the rains come.
With the acquisition of modern 12 Tons Per Batch (12TPB) complete
parboiling equipment, all the above limitations will be eradicated. This
will enable us meet market demands and in turn create more job
opportunities for our youths.
We also need 100KVA power generator, this will enable us operate
during period of frequent outages.