Project Profile on : Wheat Milling

Installed Capacity : 450 MT/annum

Prepared for :


















Prepared on : Prepared by :
Business Development Department
Orissa State Financial Corporation
OMP Square, Cuttack-753 003
Tel. Phone : 2444192
E-mail : osfcho@osfcindia.com









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Introduction:
India produces more than 70 million tones of wheat. It is mainly consumed in the
form of Atta, Suji, Maida and baking flour. Most of the wheat is milled in small
capacity disc mills to produce wheat flour(atta) Maida ,the refined wheat flour,
used in the bakery industries could be produced in capital intensive and
sophisticated roller flour mills.Small scale bakery industry is often confronted with
the problem of availability of right quality maida. CFTRI, Mysore has developed a
mini wheat mill which simultaneously produces bakery flour(maida), Atta, and
suji. Bran is available as a by product which is used as animal feed.
Market:
The low cost mini wheat mill is of great relevance especially for the rural
reign. It can produce common of wheat products in small quantities at low
investment. Atta became the staple food in most of the house hold now a day.
Further it has been projected that bread and biscuit industries is growing by 13%
and 9% respectively. Government is also giving importance for cultivation of
wheat.Considering the low investment, and growth of bread and bakery sector,
there is vast scope for setting up wheat milling unit in rural areas.

Project Outline:
A. Land:
20 decimal of land is necessary for the project keeping the future
requirement.(Own)

B. Building detail and cost:
Work shed 1200 sft @ 450/sft 5.40
Office & store 300 Sft @ 450/sft 1.35
Well Ls 0.10
6.85
Specification: Brick cement mortar wall RCC pillar AC sheet roofing over angle
Iron truss.
C. Plant & Machinery:
Cleaner cap250kg/hour with 3Hp motor 1
Destoner, pressure type capacity 250kg/h with2Hp motor 1
Huller with 10 Hp motor 1
Plate mill with 10 Hp motor 1
Sifter with 2 Hp motor 1
Elevators with HP motor 1
Conditioner with Water storage tank with HP motor pump 1
Total 4.60



D. Electrification & installation: 0.80

E. Misc Fixed assets: furniture & fixture 0.30

F. Preliminary & pre operative expenses 1.00

G. Total Fixed cost;
Land Own
Building & civil construction 6.85
Plant & machinery 4.60
Electrification & installation 0.80
Misc.fixed asset 0.30
12.55

H. Raw material, consumable and packing ;(annum)
Particular Quantity Rate Amount
Wheat 500 MT Rs.0.11/MT. 55.00
Packaging material, Ls LS 0.80
55.80
I. Utility & services;
a. Power: The power requirement 28 HP(21kw) for machinery and around
2 kw for domestic use. The monthly expenses toward power
consumption will be 23* 8*25*4=Rs.0.18 lakh
b. Water: The water requirement is around 5KL per day. Provision has
been made for meeting the water requirement of the unit.

J : Man power
Sl No. Designation No salary (month)
1 Manager 1 0.06
2 Office Asst 1 0.04
3 Supervisor 1 0.04
4 Technician. 1 0.04
5. Skilled worker 2 0.07
6. Unskilled worker 10 0.30
7. Chaukidar cum peon1 0.03
17 0.58
H. working capital detail;
Particular Month Total Bank margin
Raw material 1 4.65 3.48 1.17
Working expenses 1 0.76 0.00 0.76
Goods in process 1/10 0.64 0.48 0.16
Goods in store 0.25 1.26 0.95 0.31
Sundry Debtor 1/2 3.37 2.52 0.85
10.68 7.43 3.25


I. Project Cost:
Land including Development- Own
Building & Civil construction- 6.85
Plant & machinery- 4.60
Electrification & installation- 0.80
Misc.fixed assets- 0.30
Prel. Preoperative expenses- 1.00
Margin Money for WC- 3.25
16.80

J. Means of Finance:
Description %age Amount
Term Loan Rs.12.55@ 75 9.40
Promoter contribution 25 7.40
16.80
k. implementation schedule;
Collection of information on market, P/M
Utility 0-4weeks

Selection of site 4-8 week
Sanction of Loan 8-10 week
Clearance from diff. authority 10-12 week
Development, Civil construction 10-35 week
Procurement & Installation of P/M 25-40 week
Commissioning & Trial Run 40-48 week
Commercial production 52 weeks on ward.

L. Manufacturing Process:

M. Detail of sale :( annum)
Description Qty (MT) rate Amt
Atta, Maida, Suji 450 0.18/MT 81.00

N. Cost of production: (annum)
Raw material consumable& packaging 55.80
Manpower 6.96
Power 2.16
Repair & maintenance @3% 0.38
Adm. Overhead 1.00
Depreciation 0.97
P/m, Elect, Misc Fixed asset @ 10% 0.57
Civil construction @ 5% 0.38
Interest 2.01
Term loan @ 12% 1.12
Working capital @12% 0.89
Insurance @1% 0.24
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69.52

O. Profitability analysis (annum)
Gross Profit (M-N) 11.48
Tax @30% 3.44
Net profit 8.04







P. Ratio analysis;
i. Net profit ratio=Net profit/Turn over*100=8.04/81.00*100= 9.92%
ii Rate of return=Net profit/investment*100=8.04/27.48*100=29.25%
iii. Break even analysis
Computation of fixed cost
Depreciation 0.97
Repair & maintenance 0.38
Interest on loan 2.01
40% salary 2.78
40% of other 1.36
7.50

BEP =FC*100/FC+NP=7.50*100/7.50+8.04= 48.26%


Q. Basis of presumption:
The project is based on single shift basis having 300 working day /annum.
The labour wage has been taken as per market rate.
The profitability analysis has been computed taking 100 utilization capacities.
Interest rate for Term loan and Working capital has been taken @12%


R. Address of Machine supplier:
I) M/s Nalanda Agro Works
Nalanda nagar,Kurji
Patna-800010
ii) Sidvin Machinaries Pvt.Ltd.
Site no-10,third stage
Industrial Suburb,
Mysore-570008
iii) Mysore industries
2336,9
th
.Cross
Basavashwara Road
Mysore-570004
iv) Radhakrishna Keval ram
opposite Pareek pathasala
2343,Nahargarh Road
Jaipur-302001

Vi) shree Murgan industries,
Plot No68/W
Hootagalli industrial Area
Belwadi Post
Mysore-571186