RICE MILLING 1.0 PRODUCT AND ITS APPLICATIONS 2.0 MARKET POTENTIAL 3.0 BASIS AND PRESUMPTIONS 4.0 IMPLEMENTATION SCHEDULE
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1 RICE MILLING QUALITY AND STANDARDS : As per BIS/PFA specifications PRODUCTION CAPACITY : 840 tpa. 1.0 PRODUCT AND ITS APPLICATIONS India is the second largest producer of rice with annual production of more than 90 million tonnes. About 25% is processed through modern rice mills. The major portion of the paddy is milled through hullers. The hullers are usually low capacity mills. The yield of rice in huller mills is about 5% less than that obtained in modern mills in case of raw paddy and 2% less in case of parboiled paddy. In the hullers, both shelling and polishing operations are carried out simultaneously. Hence, there is no control on the polishing of rice, bran, admixed with husk is obtained with a higher breakage of rice grain. To overcome these, a mini rice mill is available to meet the needs of the villages and a substitute for a huller mill, to get polished rice, rice bran and paddy husk. 2.0 MARKET POTENTIAL The mini rice mill gives the same yield as a modern rice mill. Rice being the staple food for the majority population, no problem is envisaged in marketing. Besides, the mill can be utilised as a service unit for custom milling. Rice bran, which is a byproduct, is a source of valuable edible oil. The compactness of the unit, its low cost and above advantages enable installation of a number of units in all the paddy growing areas and should result in significant cost advantage to mini rice mill owners. 3.0 BASIS AND PRESUMPTIONS a) The unit will work for 300 days per annum on single shift basis. b) The unit can achieve its full capacity utilization during the 2nd year of operation. c) The wages for skilled workers are taken as per prevailing rates in this type of industry. d) Interest rate for total capital investment is 12% per annum. e) The entrepreneur is expected to raise 20-25% of the capital as margin money. f) The unit would construct its own building. g) Costs of machinery and equipment are based on average prices of manufacturers. 4.0 IMPLEMENTATION SCHEDULE Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below: v Scheme preparation and approval : 01 month v SSI provisional registration : 1-2 months v Sanction of financial supports etc. : 2-5 months v Installation of machinery and power connection : 6-8 months v Trial run and production : 01 month 44
2 5.0 TECHNICAL ASPECTS 5.1 Location There is a vast potential for installing mini rice mills in all paddy growing areas, as a rural small scale activity. 5.2 Process of Manufacture The mini rice mill consists of a paddy-cleaner, sheller, separator and a polisher. The separator is a compact unit designed on the densimetric classification principle. The polisher could be either a vertical cone polisher or a horizontal rotor polisher. Even a huller used for milling could serve as a polisher though there may be more breakage of rice. The most important feature of the mill is that the shelling and polishing are kept separate. Because of the low capacity, a centrifugal sheller is most commonly employed. Different units could be used as polisher. For maximum advantage, it is necessary to use a paddy separator, whereby need of a high polish can be avoided. 5.3 Quality Control and Standards: As per AGMARK specification 6.0 POLLUTION CONTROL There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board. 7.0 ENERGY CONSERVATION Only electricity is used as a source of energy. 8.0 PRODUCTION CAPACITY Quantity : 840 tpa Installed capacity : 4 tpd Optimum capacity utilization : 70% Working days : 300/annum Manpower : 15 Utilities Motive Power Water 9.0 FINANCIAL ASPECTS : 20 kw : 5 kl/day 9.1 Fixed Capital Land & Building Amount (Rs. lakh) Land 800 sq.m. : 1.00 Built up area 200 sq.m. : Total cost of Land and Building :
3 9.1.2 Machinery and Equipment Paddy cleaner : 3.00 Destoner Mini Rice Mill Weighing scale Erection and 10% of machinery cost : 0.30 Office furniture & fixtures Total : Pre-operative Expenses Consultancy fee, project report, deposits with : 0.40 electricity department etc Total Fixed Capital : ( ) 9.2 Recurring expenses per annum Personnel Designation No. Salary Amount Per month (Rs.lakh) Factory Manager 1 5, Supervisor 1 4, Office Assistant 2 3, Technician 1 2, Skilled workers 2 2, Unskilled workers 4 1, % Total : Raw Material including packaging materials Particulars Qty.(MT) Rate/MT Amount (Rs. lakh) Salt, Chemicals Packaging materials Paddy Total:
4 9.2.3 Utilities Amount (Rs. lakh) Power 0.67 Water 0.03 Fuel Total Other Contingent Expenses Amount (Rs. lakh) Repairs and 0.33 Consumables & spares Transport & Travel 0.43 Postage & stationery Telephoner Insurance Total: Total Recurring Expenditure Amount (Rs. lakh) ( ) Working Capital Recurring Expenditure for 2 months Total Capital Investment Amount (Rs. lakh) Fixed capital (Refer 9.1.4) Working capital (Refer 9.3) Total: FINANCIAL ANALYSIS 10.1 Cost of Production (per annum) Amount (Rs. lakh) Recurring expenses (Refer 9.2.5) Depreciation on 5% Depreciation on Depreciation on Interest on Capital Total: Sale Proceeds / Annual turnover Item Qty. Rate Amount (Rs.lakh) (MT) per MT Paddy
5 10.3 Net Profit per year = Sales - Cost of production = = Rs lakh 10.4 Net Profit Ratio = Net profit X 100 Sales = 10.77X = 11.66% 10.5 Rate of Return on Investment = Net profit X 100 Capital Investment = X = % 10.6 Annual Fixed Cost Amount (Rs. Lakh) All depreciation 0.62 Interest % of salary, wages, utility, contingency 3.77 Insurance 0.08 Total: Break even Point = Annual Fixed Cost X 100 Annual Fixed Cost + Profit = X = 58.88% 48
6 11.0 ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS Nalanda Agro Works, Nalanda Nagar, Kurji Patna Sidvin Machineries Pvt. Ltd. Site No. 10, Third stage, Industrial Suburb, Mysore Mysore Industries, 2336, 9the Cross Basavashwara Road Mysore Ram Kumar Hari Shankar Upper Bazar, Ranchi Radhakrishnan Keval Ram, Opposite Pareek Pathshala 2343, Nahargarh Road Jaipur Shree Murugan Industries, Plot No. 68/W, Hootagalli Industrial Area Belawadi Post Mysore Rajendra Joshi B-139, Nehru Nagar, Jaipur Baswaraj Dharmareddy Old MIG 26, KHB Colony, Bidar Fairdeal Equipment 7, Vishrambagh Corporation Housing Society, S.B.Road, Pune Farm Steel Products Industrial Estate, Vijaywada Shree Durgan Agencies 98, Moti Bhawan, Collectorganj Kanpur Samarth Industries, Sri Ram Chemicals Compound 18/9, GIDC Industrial Estate, Vatwa, Ahmedabad Super Eng Works Howrah Amta Road, Dassnagar, Howrah Fabcon Engineers, 24, Netaji Subhash Road Kolkata Milltech Sikaria House Fancy Bazar, Guwahati Mysore Precision Engineers C-123/124, Industrial Estate Yadavagiri, Mysore AMI Engineering Opposite Veena Cinema Station Road, Patna Sree Siddavinayaka Machinery & Equipments Site No. 10, 3rd Stage, Industrial Suburb Mysore Chandan Eng Works, Industrial Estate, Kurji Patna Sathana Industries A-3, Industrial Estate Krishnagiri , Tamilnadu 49
7 Creative Advisory Services, Krishna Apartments, Z1, 13th Street, 5th Avenue, Anna Nagar, Chennai M/s. Nandi Agro Works, 606, Retreat Point, R.P.Road, Secunderabad Dev Raj Hi-Tech Machines Ltd. Industrial Area Ferozpur (Punjab) Osaw Industrial Products Pvt. Ltd. P.O. Box No. 42, Osaw Complex, Jagadhri Road Ambala Cantt (For weighing scales) Millmore Engineering Pvt. Ltd. 289, Old Mahabalipuram Road Sholinganallu Chennai Induss Services Ltd. 11, Clive Road, 4th Floor Kolkata
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