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MILLS
Submitted to
CHITKARA BUSINESS SCHOOL
in partial fulfillment of the requirements for the award of degree of
Master of Business Administration
This is to certify that the project titled “study of working in Rice Mill”
carried out by Mr. Vikash Garg, S/o Mr. Om Parkash Garg has been
accomplished under my guidance & supervisions a duly registered MBA
student of Chitkara University. This project is being submitted by him/her
in the partial fulfillment of the requirements for the award of the Master
of Business Administration from Chitkara University.
(Vikash Garg)
EXECUTIVE SUMMARY
Rice is the seed of the monocot plant Oryza sativa (Asian rice). As a cereal
grain, it is the most widely consumed staple food for a large part of the
World's human population, especially in Asia and the West Indies. It is
the grain with the second highest world-wide production, after Maize
(corn). Rice is one of the most important food crops of India in terms of
area, production and consumer preference. China and India contributed
30.25 per cent and 22.43 per cent respectively of the World’s rice
production in 2011-12 (Source: www.drd.dacnet.nic.in). India is the
second largest producer and consumer of rice in the World. Rice
production in India crossed 100 million tonnes in 2011-12 accounting for
22.88 per cent of global production. In some states of the country, viz.,
Andhra Pradesh, Kerala and West Bengal, rice is a monoculture crop and
the source of prosperity and livelihood of a majority of the population.
Andhra Pradesh ranks third in terms of the nation's rice-growing area
(47.52 m ha) but second in terms of rice production (144.2 m tonnes) in
2010 -11 (Source: indiastat.com). Rice is the primary source of
carbohydrates and protein besides, rice also contains small quantities of
fat, ash, fibre and moisture. It has very high calorific value (363 K cal)
than any other cereal crop with easily digestible carbohydrates (80.40 per
cent) and high quality protein (6.76 per cent) with biological value as high
as egg protein, due to high content of amino acids. Vitamins and mineral
are present largely in bran and germ. Rice is obtained by milling paddy.
The practice of milling is as old as the cultivation of rice itself and finds
reference even in Vedic literature. Different types of milling equipments
for shelling /polishing of rice existed in Indian homes many centuries ago.
The discovery of parboiling was one of the most important achievements
in food science and the credit for this discovery goes to India.
Milling is the process where in the rice grain is transformed into a form
suitable for human consumption. Therefore, milling has to be done with
utmost care to prevent breakage of the kernel and improve the recovery.
Brown rice is milled further to create more visually appealing white rice.
After harvesting and drying, paddy is subjected to primary milling
operation which includes de-husking as well as the removal of bran layers
(polishing) before it is consumed. In this process, the rice which is
obtained after milling is called raw rice. Another process through which
rice is obtained after milling is called "Parboiling Rice". Nearly 60 per
cent of the total rice produced in India is subjected to parboiling. Rice
milling losses may be qualitative or quantitative in nature. Quantitative or
physical losses are manifested by low milling recovery while low head
rice recovery or high percentage of broken kernel reflects the qualitative
loss in rice grains. Rice has potential to be used in a wide range of food
categories. Besides, having nutritional and medicinal benefits, the by-
products of rice are equally important and beneficial. By-products from
rice create many valuable and worthwhile products. The inedible parts are
discarded through the milling process and the edible part could be
transformed into some of the following products like rice bran, broken
rice, rice flour, rice milk, rice pudding, etc. Rice is also used in beverage
making, rice paper, rice glue, rice cakes, rice vinegar, rice soya milk and
red yeast. The by-products which one can get from paddy milling are rice
bran and husk. The rice bran is a pericarp or outer cuticle layer that
remains beneath the hull. The amount of rice bran is approximately five
per cent of paddy processed. It gets removed during the milling process.
About two decades back, rice bran was considered almost a waste and
hence most of it was burnt. It is now viewed to have high nutritive value.
Being rich in protein and natural B- Vitamin, rice bran is used as a cattle
feed. The rice bran processing has now gained momentum, with
increasing consumer demand for rice bran oil, extracted from rice bran.
Paddy husk contains higher silicon (18 per cent) which is harmful to
digestive and respiratory organs. East Godavari is one of the major paddy
growing areas and it has the highest number of rice mills in the state. The
district consists of 550 rice mills which includes modern and traditional
mills. The financial management is considered as the backbone of a firm.
So, proper financial management is a pre-requisite for success of any
business. Keeping in view the above issues, a modest attempt was made
to analyze the business performance of rice mills in East Godavari district
of Andhra Pradesh.
The specific objectives of the study were
To analyze the investment pattern of rice mills.
To analyze the business performance of rice mills.
To analyze the constraints faced by rice mills.
The hypotheses of the study were
There is an increasing trend in the investment pattern of rice mills.
The liquidity status of the rice mills is sound.
The rice mills do not have any constraints.
STATUS OF RICE MILLING UNITS IN INDIA
Rice milling is the oldest and the largest agro processing industry of
the country. At present, it has a turnover more than the 25,500/-
crore per annum. It processes about 85 million tonnes of paddy per
year and provides staple food grain and other valuable products
required by over 60% of the population. Paddy grain is milled either
in raw condition or after par-boiling, mostly by single hullers of
which over 82,000 are registered in the country. Apart from it there
are also a large number of unregistered single hulling units in the
country. A good number (60%) of these are also linked with par-
boiling units and sun-drying yards. Most of the tiny hullers of about
250-300 kg/hour capacities are employed for custom milling of
paddy. Apart from it double hulling units number 2,600 units, under
run disc shellers can cone polishers numbering 5,000 units and
rubber roll shellers cum friction polishers numbering over 10,000
units are also present in the country.
Further over the years there has been a steady growth of improved
rice mills in the country. Most of these have capacities ranging from
2 tonnes /hr to 10 tonnes /hr. The scenario & status of these
industries of the district has been highlighted in terms of its product
range, growth / trends, trade, investment, technology and other
significant issues which project the clear cut scenario of these
industries.
THE HISTORY OF RICE
Guru Nanak Rice Mill is a well-known Rice mill in the Khanna region.
Rice mills are commonly referred to as ‘Shellers’ in rural areas. They act
as a middlemen of converting the paddy into the rice for the government.
The government purchase the paddy from the farmers through
middlemen, then they allot the paddy in the shellers. The Rice Millers has
to convert the paddy into the rice and deliver the rice to the government.
They also arrange the required equipment, machines and labor for
weighing, filling and stitching the rice bags for which the buyers pay as
per the rates prescribed by the government. Guru Nanak Rice Mill has a
leading position in the market with its main objective to carry out the
activity of hulling paddy to obtain Rice, Broken Rice, Rice Bran, Paddy
Husk etc.
The organization has managed to face the increasing pace of this business.
With the advancement in technology Rice Miller is able to convert the
paddy in much less time. The organization has adequate resources to
manage this crowd in a satisfactory manner due to which they have been
able to capture major portion of the market
The unit has been set up at Kachaheri Road, Vill. Rattanheri, Khanna.
ORGANIZATIONAL CHART
The products to be obtained through paddy firm the rice milling plant are
as follows:
Serial no. Particulars
1 Rice
2 Paddy Husk
3 Rice Bran
4 Broken Rice
Paddy when milled usually yields apart from marketable rice (head rice,
medium rice and big broken rice) about 22% husk and 9% bran. The
economic utilization of the byproducts is essential for proper viability of
the industry.
RICE
The product of Guru Nanak Rice mill remains only the rice, but it has
the following different variables of rice available at reasonable prices on
the basis of needs, wants and demands of the customer.
PADDY HUSK
Husk is not edible, even by animals. Husk has many possible uses. But
the most practical, profitable use is as fuel, particularly in the rice mill.
Parboiling and drying of paddy needs heat energy. Husk is used as fuel
in boilers to produce steam and hot air required for the purpose. Husk
has colorific value of about 3000 keal/kg (nearby one third of the
mineral oil and half that of coal). The other uses of husk are loose
particle boards and insulating material in building and cold storages, in
shipping and packing material etc. Fully burnt white ash of husk can be
used for manufacturing sodium silicate, silica gel, insulating bricks and
also used as diluents in manure etc.
RICE BRAN
BROKEN RICE
The medium and large broken rice is mixed with the head rice
depending on the marketing requirements. The small broken rice that is
separated during grading of milled rice is sold as such or used for rice
flour making.
SWOT ANALYSIS
Strengths:-
Business Location
No Labour union
Large Demand
Availability of Finance
Weakness:-
Step 9
Finally, weighting and bagging. This is the last step in rice mill plant
operation. Preparing the milled rice for transport to the customer
CORPORATE VISION
CORPORATE MISSION
MARKET COMPETITION
There are large number of rice millers in the city. Guru Nanak rice mill
adopted various strategies to retain and/or expand their market share.
India rice milling market consists of a large number of players as the rice
milling industry in India has seen tremendous growth in last decade. The
players adopted various strategies to expand their global footprint and
augment their market share. Thus, the government gets best rice quality
in given time.
POLITICAL ENVIRONMENT
ECONOMIC ENVIRONMENT
The Rice millers have the good relation with the commission agents,
so they get the good quality paddy from the grain market.
Usually Limits in bank is the major source of fund for rice millers.
The administration should constitute a committee comprising
millers from the market to help them conceptualize, construct and
regulate the proposed market.
Recently, there was a major development of rice industry in Khanna.
Crores were spent to upgrade the local infrastructure
.
STRATEGIES
Market strategies
Human resources
The India Rice Milling Market can be segmented in to two key dynamics
for the convenience of the report and enhanced understanding;
Segmentation by Equipment - Rice Whitening Machinery, Pre Cleaner
Machinery, Paddy Separator Machinery, Length Grader Machinery, and
others
Segmentation by Capacity - 1 To 10 Ton, 10 To 20 Ton, and More than
20 Ton
Segmentation by Regions: North America, Europe, APAC and Rest of the
World.
GOVERNMENT POLICIES
My role during this internship was to work with the accountant of M/S
GURU NANAK RICE MIL. During this internship I got a chance to learn
so many things. I got a chance to experience how rice mill market operates
on ground level. During this internship I interacted with other rice millers
and understood the role of rice millers in the market. I also got a chance
to apply my accounting knowledge which I have acquired over the years
during this internship.
During first few days I observed the work of accountant. Slowly, When I
gained confidence Even I was allowed to do work under his guidance.
Entry for every transaction was recorded in register after that these entries
were made in Computer. M/S GURU NANAK RICE MILL use “Visual
Catpro” software to manage their Accounts. I even used to visit the
warehouse. I used to visit bank for various purposes for organization.
During peak time, Accountant is supposed to do lot of paper work. It
includes making and maintain:
1. Outgoing Register
2. Incoming Register
3. Rice Register
4. Paddy register
5. Rice bran Register
6. Rice Own Register
7. Paddy Own Register
I made all three forms and even maintained heap register during my
internship. Information regarding these documents is mentioned in
coming pages along with their photograph.
Outgoing Register
Incoming Register
Rice Register
In these register, the accountant recorded the total rice production in the
rice mill. The accountant also recorded the daily production of the rice
mill in the register and he also subtract the rice weight which is send to
the government warehouse. The government provide the weight of the
rice to the rice millers online, so that they maintain their register.67% of
rice is produced from the paddy.
Paddy Register
In these register, the accountant recorded the total paddy send to the rice
mill. When the paddy is used to convert into the rice in the rice mill, the
accountant subtract the daily paddy usage.
In these register, the accountant recorded the rice bran produced in the
process of converting the rice into paddy. 5.25% of rice bran is produced
from the paddy.
In these register, the accountant recorded the rice sold in the market. The
accountant record the every transaction of rice which is sold to the
wholesaler. Rice mill also store the rice to sell it in higher prices.
These bill is used when the rice miller sold the tax free goods in the
market. Government make the list of goods which is tax free, so the rice
miller sold these goods in cash. For instance goods
like Paddy husk which is tax free.
GST Cash Bill
These bill is used when the rice miller sold the tax goods in the market.
Government make the list of goods which is having the certain
percentage of GST tax. For instance, goods like Rice Bran is sold in
particular GST percentage.
STATEMENT OF THE PROBLEM
1. The main problem faced by the rice millers is the moisture. Rice
millers have to send their rice to the government warehouse. But
the government has set the moisture limit of Rice. The rice
moisture is not more than 15, if it increases to 15 then the rice will
be rejected.
2. Officers usually take the high amount of corruption from the rice
millers. If the Rice miller refuse to give the bribe, then officer
don’t approve the rice.
3. Officers also don’t take the complaints of the rice millers seriously.
4. The work schedule consists of 3 shifts.
5. The rice milling industry has got enough growth potential
especially in terms of its currently adopted Japanese technology in
the whole process of production.
RECOMMENDATIONS
LIMITATIONS