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Rice Flour Mill PDF

This document provides a pre-feasibility report for a mini rice mill project. It discusses the rice milling process, including various milling equipment and steps involved like husking, polishing, and grading. It also includes a project financial analysis with estimated costs of raw materials, machinery, working capital requirements and projected sales over 5 years. The objective is to help potential entrepreneurs identify this project for investment and understand aspects of concept development, marketing, finance and management.

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Babu Viswanath M
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0% found this document useful (0 votes)
1K views12 pages

Rice Flour Mill PDF

This document provides a pre-feasibility report for a mini rice mill project. It discusses the rice milling process, including various milling equipment and steps involved like husking, polishing, and grading. It also includes a project financial analysis with estimated costs of raw materials, machinery, working capital requirements and projected sales over 5 years. The objective is to help potential entrepreneurs identify this project for investment and understand aspects of concept development, marketing, finance and management.

Uploaded by

Babu Viswanath M
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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PROJECT REPORT

Of

MINI RICE MILL

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Mini Rice Mill

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,


27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training


Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : info@udyami.org.in
Contact : +91 7526000333, 444, 555
MINI RICE MILL

INTRODUCTION

Rice is the basic grain consumed as a food in India which is found in almost every Indian
kitchen. It is the most common grain and the most common food in India. However, India is
not only a big consumer of rice but also it is the second largest producer of rice in the world
after China. India also holds the largest agriculture land for paddy production in the world.

Rice is obtained by milling of paddy. The byproducts which we get from paddy milling are
rice bran and husk. The amount of rice bran is approximately eight per cent of paddy
processed. The rice bran is a pericarp or outer cuticle layer that remains beneath the hull. 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.

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 minerals are present largely in bran and germ. Being rich in
natural B‐Vitamin, rice bran is used as a cattle feed. The rice bran processing has now
gained momentum, with increasing consumer demand for oil, extracted from bran.

The practice of milling is as old as the cultivation of rice itself and finds reference even in
Vedic literature. Different types of milling equipment’s 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.

DESCRIPTION OF RICE MILLING

Before the advent of mechanical milling, hand‐pounding traditional method of rice milling
was in practice. With the introduction of mechanized mills, hand‐pounding method has
steadily decreased because it could not compete with machine mills. In fact, hand‐pounding
rice has got more nutritive value as compared to machine milling rice. In hand‐pounding, a
variety of implements are used, the more common being –

1. Mortor and Pestle

2. Dhenki

3. Hand Stone (Chakki)

The conventional mills in use can be categorized into three main types –

1. Huller mills

2. Sheller‐Huller mills

3. Sheller‐Cone Polisher mills


After harvesting and drying, the paddy is subjected to the 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 is called "Parboiling Rice." Nearly 60% of the total rice
produced in India is subjected to parboiling. Parboiling is a hydrothermal treatment of
paddy followed by drying before milling for the production of milled parboiled rice.

In general, three major steps in parboiling i.e., soaking, steaming and drying have a great
influence on the final characteristics and quality of parboiled rice. Parboiling of paddy has
been practiced in Indian households since time immemorial. The parboiling process is
followed extensively in the Eastern and part of Southern India, Eastern Madhya Pradesh
and Uttar Pradesh. It is also well known in Western Uttar Pradesh, Punjab and Haryana in
the form of Sela. Sela process of parboiling and the rice produced from this process is called
Sela rice.

The rice grains are hardened sufficiently in the process of parboiling and results in
improved milling properties, leading to a high head rice recovery. The parboiling process
also results in the low breakage during milling. The cooking qualities of parboiled rice are
somewhat different from those of raw rice. Parboiled rice takes a larger time to cook to the
same degree of softness than the raw rice of the same variety. During cooking the loss of
protein and starch are low. During parboiling process water soluble B‐group vitamins and
other water soluble nutrients get diffused into the endosperm, hence, the loss of nutrients
is less in parboiled rice even after polishing than raw rice. The presence of Vitamin‐E is also
found in parboiled rice.


The process of rice milling Rice milling is the process which helps in removal of hulls and
bran from paddy grains to produce polished rice. Rice forms the basic primary processed
product obtained from paddy and this is further processed for obtaining various secondary
and tertiary products. The basic rice milling processes consist of:

Process definition

1. Pre cleaning: Removing all impurities and unfilled grains from paddy

2. De‐stoning: Separating small stones from paddy

3. Par boiling (optional): Helps in improving the nutritional quality by gelatinization of


starch inside the rice grain. It improves the milling recovery per cent during deshelling and
polishing / whitening operation

4. Husking: Removing husk from paddy

5. Husk aspiration: Separating the husk from brown rice/ unhusked paddy

6. Paddy separation: Separating the unhusked paddy from brown rice

7. Whitening: Removing all or part of the bran layer and germ from brown rice

8. Polishing: Improving the appearance of milled rice by removing the remaining bran
particles and by polishing the exterior of the milled kernel

9. Length grading: Separating small and large broken from head rice

10. Blending: Mixing head rice with predetermined amount of broken, as required by the
customer

11. Weighing and bagging: Preparing the milled rice for transport to the customer
PROJECT FINANCIALS

NAME OF COMPANY : XXXX

TYPE OF PROJECT : FOOD PROCESSING UNIT( RICE MILL)

CAPACITY OF PLANT : 3 Ton per hour

FINANCIAL ASSITANCE : Term Loan 11.90


REQUIRED Working Capital Loan 8.50

COST OF PROJECT Particulars Amount


Land & Building Owned
Plant & Machinery 12.50
Working Capital Requirement 9.66
Total 22.16

Proprietor Capital 1.76


Term Loan From Bank 11.90
Working Capital Loan From Bank 8.50
Capital Subsidy
(from KVIC which are kept
in Bank Rs. 5.44)

Total 22.16

PCFI 0.78

Margin 5%
COMPUTATION OF RAW MATERIAL

Item Name Rate At 100% Cap.Utilisation


Per Qtls Quantity Total Cost

Paddy (3*8*180) 1200.00 43200 51,840,000.00

Total 51,840,000.00

Total Amount (In Lacs) 518.40

Raw Material Consumed Capacity Utilization

Ist Year 45% ( 6 month) 233.28


IInd Year 65% 336.96
IIIrd Year 70% 362.88
IVth Year 75% 388.80
Vth Year 80% 414.72

COMPUTATION OF SALE

At 100% Cap.Utilisation
Item Name
Quantity Total Sales

Rice 67% 28940.00 1800.00 52,092,000.00


Rice Bran 7% 3020.00 1000.00 3,020,000.00
Rice Husk 23% 9940.00 350.00 3,479,000.00

TOTAL 58,591,000.00

Total (Rounded off In Lacs) 585.91


COMPUTATION OF SALES

RICE Ist Year IInd Year IIrd Year IVth Year Vth Year

Op Stock ‐ 608.00 878.00 946.00 1013.00

Production 13024.80 18813.60 20,260.80 21708.00 23155.20

13024.80 19421.60 21,138.80 22654.00 24168.20


Less Closing Stock 608.00 878.00 946.00 1013.00 1081.00

Total Qty Sold 12416.80 18543.60 20,192.80 21641.00 23087.20

Sales Amount 229.71 343.06 373.57 400.36 427.11

RICE BRAN

Op Stock ‐ 408.00 590.00 635.00 680.00

Production 1360.80 1965.60 2116.80 2268.00 2419.20

1360.80 2373.60 2706.80 2903.00 3099.20


Less Closing Stock 408.00 590.00 635.00 680.00 726.00

Total Qty Sold 952.80 1783.60 2071.80 2223.00 2373.20

Sales Amount 9.53 17.84 20.72 22.23 23.73

COMPUTATION OF CLOSING STOCK

Ist Year IInd Year IIrd Year IVth Year Vth Year

RICE 7.60 10.98 11.83 12.66 13.51

RICE BRAN 2.86 4.13 4.45 4.76 5.08

10.46 15.11 16.27 17.42 18.59


PROJECTED BALANCE SHEET

PARTICULARS Y1 Y2 Y3 Y4 Y5

SOURCES OF FUNDS

Proprietor Capital 1.76 1.76 1.76 1.76 1.76


Capital Subsidy 5.44 5.44 5.44 ‐ ‐
Retained profit 3.84 9.39 15.37 21.29 27.95
Term Loan from Bank 11.30 10.50 9.70 8.90 ‐
Cash Credit from Bank 8.50 8.50 8.50 8.50 8.50
Sundry Creditors 17.55 22.46 24.19 25.92 27.65
General Reserve ‐ ‐ ‐ 5.44 5.44
Expenses payable 0.36 0.40 0.44 0.48 0.53

Total 48.75 58.45 65.40 72.29 71.83

APPLICATION OF FUNDS

Net Fixed Assets 11.56 9.83 8.36 7.11 6.04

CURRENT ASSETS, LOAN & ADVANCES


Stock 19.56 28.21 30.37 32.52 35.26
Cash & Bank Balances 4.54 3.54 8.78 13.97 10.59
Sundry Debtors 7.66 11.44 12.45 18.68 19.93
Fixed Deposit 5.44 5.44 5.44 ‐ ‐

48.75 58.45 65.40 72.29 71.83


PROJECTED PROFITABILITY STATEMENT

Particular Y1 Y2 Y3 Y4 Y5

INSTALLED CAPACITY 45% 65% 70% 75% 80%


A. SALES
Rice 229.71 343.06 373.57 400.36 427.11
Bran 9.53 17.84 20.72 22.23 23.73
Husk 6.71 8.95 10.44 11.18 11.93

TOTAL (A) 245.95 369.84 404.72 433.77 462.77

B. COST OF SALES
1.Raw Material Consumed 233.28 336.96 362.88 388.80 414.72
2.Power & Fuel 1.38 1.61 1.72 1.84 2.07
3. Wages & Salary 3.78 4.04 4.32 4.62 4.94
4.Factory Expenses 0.61 0.92 1.01 1.08 1.16
5. Mandi Fee 5.83 8.42 9.07 9.72 10.37
6.Depreciation 0.94 1.73 1.47 1.25 1.07
Cost of Production 245.83 353.69 380.48 407.31 434.32

Add : Opening Stock 0.00 10.46 15.11 16.27 17.42


Less Closing Stock 10.46 15.11 16.27 17.42 19.16
Cost of Sales: (B) 235.37 349.04 379.31 406.16 432.58

C. GROSS PROFIT (A‐B) 10.58 20.80 25.41 27.61 30.19

D. Interest on Term Loan 0.90 0.82 0.71 0.60 0.48


Interest on Cash Credit 0.60 1.19 1.19 1.19 1.19
E: Salary Expenses 0.78 0.83 0.89 0.95 1.02
General & Adam. Expenses 1.10 1.21 1.33 1.46 1.54
Selling Expenses 2.46 9.25 12.14 13.01 13.88
TOTAL (D+E) 5.84 13.30 16.26 17.21 18.11
F: Net Profit/(Loss)
(C‐D‐E‐E1) 4.74 7.50 9.15 10.40 12.08
I: Taxation 0.00 0.75 1.37 2.08 2.42
J: Retained Profit 4.74 6.75 7.78 8.32 9.66
K: Depreciation Add Back 0.94 1.73 1.47 1.25 1.07

L: Net Cash Accruals 5.68 8.48 9.25 9.57 10.73


WORKING CAPITAL REQUIREMENT

S.No. Particulars Total


Working Capital
.
1.Raw Material 9.10

2.Finished Goods 10.46

3.Sundry Debtors 7.66


27.21
Less : Sundry Creditors 17.55

Working Capital Requirement 9.66

Less : Own Margin 0.48

Working Capital Required 9.18

Working Capital Demand 8.50


DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN assume no
financial liability to anyone using the content for any purpose. All the materials and content
contained in Project report is for educational purpose and reflect the views of the industry
which are drawn from various research material sources from internet, experts, suppliers and
various other sources. The actual cost of the project or industry will have to be taken on case
to case basis considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is intended for
general guidance only and must not be considered a substitute for a competent legal advice
provided by a licensed industry professional. SAMADHAN hereby disclaims any and all
liability to any party for any direct, indirect, implied, punitive, special, incidental or other
consequential damages arising directly or indirectly from any use of the Project Report
Content, which is provided as is, and without warranties.

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