Start a Quick Aged Paddy Making Plant

    
(237) Start a Quick Aged Paddy Making Plant


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Production Capacity:	:	680 tpa
Uploaded on	:	April 2009

1.0 Product and its Applications  

Rice tops the food grains cultivated in India , with annual production of more than 90 million tonnes. Rice is the staple food for majority of the population. It is a common experience that rice from freshly harvested paddy cooks to a pasty mass. It has poor swelling capacity during cooking and reportedly causes digestive disorders. That is the reason the new rice is aged or cured by storing for at least 4 months to overcome these problems and to develop desirable cooking characteristics. The ageing becomes faster as the temperature during storage increases. A new technology has been developed whereby it has become possible to age or cure the new paddy within a short duration.

2.0 Market Potential

Aged rice commands a higher price as compared to new rice. There is an incentive to cure the paddy in a short time and speed up the realisation. Quick aging helps in cutting down the cost of warehousing, reduce damage by rodents, save interest on the capital, thereby improve overall economic profile of the project.

3.0 Basis and Presumption

a) The unit proposes to work at least 120 days per annum on single shift basis. However, the production activity will be available only for 100 days.

b) The unit can achieve its full capacity utilization during the 2nd year of operation.

c) The wages for 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 proposes to construct own building while the cost of construction is based inputs.

g) Costs of machinery and equipment are based on average price.

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 Process of Manufacture

The freshly harvested paddy is steamed for a specified period of time depending on the initial moisture content of the paddy. It is then heaped, dried and used for rice milling.

5.2 Quality Control and Standards: As per AGMARK specifications

Pollution Control

There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately

7.0 ENERGY CONSERVATION

The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler. Proper care should be taken while utilising the fuel for the steam production. There should be no leakage of steam in the pipe lines and adequate insulation should be provided.

8.0 Production Capacity

Quantity	750 tpa
Installed capacity	8 tpa
Value	Rs. 96.60 lakh
Optimum capacity utilization	70%
Working days	100/annum
Manpower	12
Utilities
Motive Power	12 kWH
Water	5 kL/day
Coal/LD oil	250 kg/60 L/day

9.0 Financial Aspects
9.1 Fixed Capital  

9.1.1 Land & Building

Particulars	Amount (Rs. lakh)
Land 1000m 2	02.00
Built up area 150 m 2	04.50
Total cost of land and building	06.50

9.1.2 Machinery and Equipment

Description		Amount (Rs. lakh)
Boiler, parboiling tank, mechanical drier/drying yard. Auxiliary equipment: weighing scales, trolleys etc.	:	03.85
Erection & electrification of machinery & equipment @10% cost	:	00.40
Office furniture & fixtures	:	00.75
Total	:	05.00

9.1.3 Pre-operative Expenses	Amount (Rs. lakh)
Consultancy fee, project report, deposits with electricity department etc	01.00

9.1.4 Total Fixed Capital	Amount (Rs. lakh)
(9.1.1+9.1.2+9.1.3)	12.50

9.2 Recurring expenses per annum
9.2.1 Personnel

Designation	No.	Salary Per month	Amount (Rs. lakh)
Factory Manager	1	10,000	01.20
Supervisory staff	2	07,500	01.80
Office Assistant	2	06,000	01.44
Technician	1	05,000	00.60
Skilled workers	2	03,500	00.84
Unskilled workers (months)	4	03,000	00.48
			06.36
Perquisites @15 %			00.94
Total	12		07.30

9.2.2 Raw Material including packaging materials

Particulars	Qty (t)	Rate/t (Rs.)	Amount (Rs. lakh)
Chemicals	LS	LS	00.22
Packaging materials	7500 No.	11 each	00,83
Paddy	750	9500	71.25
Total			72.30

9.2.3 Utilities

Particulars	Amount (Rs. lakh)
Power	01.50
Water	00.05
Fuel	00.45
Total	02.00

9.2.4 Other Contingent Expenses

Particulars	Amount(Rs. lakh)
Repairs and maintenance @10%	00.50
Consumables & spares, others	00.10
Transport & travel	00.10
Publicity, postage, telephone	00.04
Insurance @1%	00.08
Total	00.82

9.2.5 Total Recurring Expenditure

(9.2.1 + 9.2.2 + 9.2.3 + 9.2.4)

83.00   (Rs. lakh)

9.3 Working Capital	Amount (Rs. lakh)
Recurring expenses for 1 month	06.90

9.4 Total Capital Investment	Amount (Rs. lakh)
Fixed capital (Refer 9.1.4)	12.50
Working capital (Refer 9.3)	06.90
Total	19.40

10.0 Financial Analysis

10.1 Cost of Production (per annum)	Amount (Rs. lakh)
Recurring expenses (Refer 9.2.5)	83.00
Depreciation on building @ 5%	00.20
Depreciation on machinery @10%	00.42
Depreciation on furniture @ 20%	00.15
Interest on Capital Investment @ 12%	02.33
Total	86.10

10.2 Sale Proceeds (Turnover) per year

Item	Qty (t)	Rate/t (Rs.)	Amount (Rs. lakh)
Aged paddy	680	14,500	98.60

10.3 Net Profit per year

10.3 Net Profit per year
=	Sales – Cost of production
=	98.60 - 86.10
=	Rs. 12.50 lakh

10.4 Net Profit Ratio

=	Net profit X 100 --------------------------- Sales
=	12.50X 100 ---------------- 98.60
=	12.67%

10.5 Rate of Return on Investment

=	Net profit X 100 -------------------------- Capital Investment
=	12.50X 100 ----------------- I9.40
=	64.4%

10.6 Annual Fixed Cost	Amount (Rs. Lakh)
All depreciation	00.77
Interest	02.33
40% of salary, wages, utility, contingency	04.05
Insurance	00.08
Total	07.23

10.7 Break even Point

10.7 Break even Point
=	Annual Fixed Cost X 100 ----------------------------------- Annual Fixed Cost + Profit
=	7.23 X 100 --------------------- 7.23+12.50
=	36.6%

11.0 Addresses of Machinery and Equipment Suppliers  

Septu ( India ) Pvt. Ltd.
12/7, Urban Estate,
Post Box No. 4
Gurgaon - 122 001

Raylon Metal Works
Kondivitta Lane
Post Box 17426
J.B.Nagar, Andheri (E)
Mumbai - 400 059

SSP (Pvt) Ltd.
13th Milestone, Mathura Road
Faridabad - 121003, Haryana

Grovers Pvt. Ltd.
223, Kaliandas Udyog Bhavan
Prabhadevi
Mumbai

Rohilkhand Eng. Works
Izzatnagar,
Bareilly (U.P.)

Batliboi Engineers ( Bangalore ) Pvt. Ltd.
99/2&3, N.R.Road
Bangalore - 560 002 

Narene Tulaman Manufacturers Pvt. Ltd.
Balanagar
Hyderabad - 500 037

M/s. Kodesia Eng Works,
Izzatnagar
Bareilly

Shree Murugan Industries,
Plot No. 68/W, Hootagalli
Industrial Area, Balawadi Post
Mysore – 571186

Nalanda Agro Works
Nalanda Nagar, Kurji
Patna - 800 010

Mac-Well Engineering Works,
14, Kartar Compound, LBS Marg
Behind State Bank
Vikroli (West)