Thursday, 10 November 2011

Start a Agro Seed Processing Plant


(199) Start a Agro Seed Processing Plant 

Agro Seed Processing Plant
Product Code:2 tonnes per hour (Paddy 26 tpd or wheat 35 tpd in 3 shifts) or 4,540 tpa.
Uploaded on:February 2009
1.0 Product and its applications
Cereal grains like paddy and wheat together constitute the main staple food in the country. Hence production of these crops ranks highest in quantity. The use of certified agricultural seeds ensures higher agricultural production. The certified seeds are produced and processed under Indian Seed Act 1996 (amended in 2002). These are sound, healthy and genetically pure with higher yields. The process consists of agricultural activity as well as processing activity under a licence from State Authority.
2.0 Market Potential

India has made phenomenal strides in production of food grains, yet there exists a vast scope for further improvement in productivity. Replacement of 10% seeds annually would ensure higher production. The farmers procure certified seeds from different suppliers. However supply is far short of the demand.. There is a tremendous scope for setting up seed processing units to meet the local demand and make the region self sufficient in food grain production.
3.0 Basis and Presumption

a) The processing plant will work for 180 days per annum on 3 shifts 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 calculated @ 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 as per Seed Certification Authority specifications.

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:
Scheme preparation and approval:01 month
SSI provisional registration:1-2 months
Sanction of financial supports etc:2-5 months
Installation of machinery and power connection:6-8 months
Trial run and production:01 month
5.0 Technical Aspects
5.1 Location
Since the process consists of crop cultivation and processing activity, the plant should be located inside/near the farm wherein crop is cultivated. Availability of power, road connectivity and marketing links for supply of seed to various traders/users should be ensured.
5.2 Process of Manufacture
(a) Agricultural activity:

5.3 Quality Control and Standards: As per State Seed Certification requirements.
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 being used in the process.
8.0 Production Capacity
Quantity2650 tpa paddy seed + 1890 tpa wheat seed 20 tpd
Installed capacity20 tpd
Optimum capacity utilization70%
Working days300/annum (processing activity 180 days)
Motive Power15 kW
Water01 kL/day
9.0 Financial Aspects
9.1 Fixed Capital
9.1.1 Land & Building Amount (Rs. lakh)
Land 10,000 m209.00
Built up area 1,000 m230.00
Total cost of Land and Building39.00

9.1.2 Machinery and Equipment

Mechanical dryer, elevators-3, pre-cleaner, size grader, indented centrifugal cylinder, chemical treater, automatic dosing machine, conveyor belt, bag stitching machine,
misc. equipment
Erection and electrification @ 10% of machinery cost2.20
Office furniture & fixtures1.50
9.1.3 Pre-operative Expenses
Consultancy fee, project report, deposits with electricity department etc.1.30
9.1.4 Total Fixed Capital (9.1.1 + 9.1.2 + 9.1.3)66.00
9.2 Recurring expenses per annum
9.2.1 Personnel
Salary per month
Amount (Rs. lakh)
Factory manager110,0001.20
Supervisor & marketing staff26,0001.44
Office Assistant25,5001.32
Skilled workers43,5001.68
Unskilled workers (6 months)162,0001.92
Unskilled workers (Regular)22,5000.60
Perquisites @ 15%8.76
9.2.2 Raw Material Including Packaging Materials
ParticularsQty(t)Rate/t(Rs.)AmountRs. lakh
Paddy 26 tpd x 120 days3,1208,850276.12
Wheat 35 tpd x 60 days2,10010,600222.60
Gunny bags for paddy seed, cap. 12 kg2,21,0005.00011.05
Gunny bags for wheat seed, cap. 40 kg47,25010.25004.85
Fungicides, stitching, markingLSLS005.63
9.2.3 Utilities

9.2.4 Other Contingent ExpensesAmount (Rs. lakh)
Repair and maintenance, building @5%1.50
Repair and maintenance, machinery @10%2.42
Repair and maintenance, furniture @20%0.30
Consumables & spares!
Transport & travel !
Publicity !3.42
Postage & stationery !
Telephone !

2.5 Total Recurring ExpenditureAmount (Rs. lakh)
9.3 Working Capital
Recurring Expenditure for 2 months90.50
9.4 Total Capital InvestmentAmount (Rs. lakh)
Fixed capital (Refer 9.1.4)66.00
Working capital (Refer 9.3)90.50
10.0 Financial Analysis
10.1 Cost of Production (per annum)Amount (Rs. lakh)
Recurring expenses (Refer 9.2.5)542.92
Depreciation on building @5%1.50
Depreciation on machinery @10%2.42
Depreciation on furniture @20%0.30
Interest on CapitalInvestment@12%18.86
10.2 Sale Proceeds / Annual turnover
ItemQty (t)Rate/t (Rs.)Amount (Rs. lakh)
Paddy seeds in 12 kg bags2,65014,600386.90
Wheat seeds in 40 kg bags1,89015,200287.28

10.3 Net Profit per year 
=Sales - Cost of production
 =674.18 - 566.00
 =108.18 lakh
10.4 Net Profit Ratio=Net Profit ×100
-----------------x 100
10.5 Rate of Return on Investment
 =Net Profit ×100
  Capital Investment
 =108.18 x 100
 =69.12 %

10.6 Annual Fixed CostAmount (Rs. Lakh)
All depreciation4.22
40% of salary, wages, utility, contingency9.07
10.7 Break even Point
Annual Fixed Cost x100
Annual Fixed Cost + Profit
32.81 x 100
 32.81 + 108.18
11.0 Addresses of Machinery and Equipment Suppliers
1. Rohilkhand Eng. Works
Bareilly (U.P.)
2. Batliboi Engineers (Bangalore) Pvt. Ltd.
99/2&3, N.R.Road
Bangalore - 560 002
Narene Tulaman Manufacturers Pvt. Ltd.
Hyderabad - 500 037
3. M/s. Kodesia Eng Works,
4. Shree Murugan Industries,
Plot No. 68/W, Hootagalli
Industrial Area, Balawadi Post
Mysore - 571186
5. Nalanda Agro Works
Nalanda Nagar, Kurji
Patna - 800 010
6. Mac-Well Engineering Works,
14, Kartar Compound, LBS Marg
Behind State Bank
Vikroli (West)
Mumbai - 400 079
7. Septu (India) Pvt. Ltd.
12/7, Urban Estate,
Post Box No. 4
Gurgaon - 122 001
8. Raylon Metal Works
Kondivitta Lane
Post Box 17426
J.B.Nagar, Andheri (E)
Mumbai - 400 059
9. SSP (Pvt) Ltd.
13th Milestone, Mathura Road
Faridabad - 121003, Haryana
Grovers Pvt. Ltd.
223, Kaliandas Udyog Bhavan

10. Mumbai - 400 025
Macneill and Magor Ltd.
4, Mangoe Lane
Kolkata - 700 001
12.0 Other Special Features
A careful selection of product mix is necessary based on the local market demand and availability of raw materials. The facilities can also be utilised to manufacture quality seeds of carrot, radish, peas, spinach, coriander, okra, other vegetables and pulses for fuller utilisation of capacity.


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