PROJECT PROFILE

ON

RICE & DAL MILL MACHINERY

*************

PART – I.

NAME OF THE PRODUCT : Rice & Dal Mill Machinery

PRODUCT CODE : 353126004.

QUALITY STANDARD : There is no BIS specification for this

item

PRODUCTION CAPACITY/ : Quantity : Per Annum

TARGET Value : Rs.

MONTH & YEAR OF : March, 2012.

PREPARATION

PREPARED BY : Mechanical Division

MSME - Development Institute,
Ministry of Micro, Small & Medium Enterprises,
Government of India
107, Industrial Estate, Kalpi Road,
Kanpur-208012.
Tele. 2295070, 2295071 & 2295073 (EPBAX)
Tele. No. 2295072 (SENET & TRC)
Tele/Fax No.: 0512- 2240143
email: dcdi-kanpur@dcmsme.gov.in
Website: msmedikanpur.gov.in
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MSME-DI, KANPUR.
A. Introduction:

Rice and Dal are the most important agricultural products of India.
Rice and dal milling is an age old activity. It has gone through
many developments from hand process to the latest method
involved rubber roller, sheller and polishing by mechanical
process. Dehusking of paddy and dal are most the same and the
machines are also identical. First the crops are passed through a
cleaner and fed into dehusking machine where it is dehusked with
the help of rubber roller and 15 separated from husk. Hence
unclean rice with paddy is fed into husker where polishing and
dehsking of left back paddy done with the help of mild fraction
created with the help of the rubber chamber. The polished rice and
bran get separated and collected separately.

B. Market Potential:

As manufacturing of this item has been reserved for development

in small-scale sector and mini rice mill and dal mill can be
manufactured with latest technique. Due to liberal licensing rule
and less in mini rice and dal mill number of prospective
entrepreneurs are coming up in this line.

C. Basis & Presumptions:

1. The basis for calculation of production capacity is on single

shift basis, working of 25 days per month on 75 % efficiency.
The required for achieving envisaged capacity utilization is
assumed as one year.
2. BEP for the scheme has been calculated on full capacity
utilization.
3. Rate of interest has been taken as 16% on an average. This,
however, is likely to change depending upon the location of
the project.
4. Labour wages have been taken on the basis of minimum
applicable. There are likely to change depending upon the
location of the project.
5. Rental charges of Rs. 35/- per Sw. Mtr per month have been
taken on an average. This figure is likely to vary depending
upon the location of the unit.
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MSME-DI, KANPUR.

6. Margin money requirement differs from project or project and

type of entrepreneurs such as women, SC/ST, physically
handicapped etc. and the minimum margin money usual
asked by the financial institutions and banks are 15%. Margin
money up to 25% in some cases is also asked. The
entrepreneurs may check the margin money requirement from
financial institutions for the project.
7. Terms of loan differs from one financial institution to another
and in general minimum gestation period is normally 6 months
and it could be 2 years. Maximum period for repayment of loan
is 7 years including gestation period. The entrepreneurs from
the concerned financial institutions may find the exact terms
and conditions.
8. The cost of machinery and equipments as indicated in the
scheme are approximate those ruling at the time of
preparation of the scheme. The entrepreneur may check the
exact price for specific make and model of the machine
selected.
9. Non-refundable deposits, cost of preparation of project report
etc. may be considered under preoperative expenses.
10. The provision made in other respects viz; raw materials,
utilities, overheads etc. are drawn on the basis of standard
variation and output. The cost indicated against each are
approximate and based on local market condition and
observations. The entrepreneur may find out the exact cost
from the concerned sources.
11. The operative period of this project is estimated to be about 10
years considering technology obsolesces.

D. Implementation schedule:

i. Preparation of Project report 2 Weeks

& Provisional Registration
ii. Financial arrangement& Quotation invite 4 Weeks
iii. Purchase & Procurement of machinery & 2 Weeks
Installation,
iv. Production trial 1 Week
Total: 9 Weeks
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MSME-DI, KANPUR.

E. Technical Aspects:

i. Process Outline:

Manufacturing process of rice mill and dal mill is almost same

as the working principle of the machinery are same. Rice mill
and dal mill is nothing but a combination of few machines and
equipment as follows, which are fabricated from MS angle,
channel and bar and welded by welding machine. It is proposed
to procure cast parts from the local foundry and only simple
machining would be earned out in the machine shop founded in
the Project Profile. All machines are to be fitted on a strong iron
rigid framework.

ii. Quality Control & Specification:

As there is no such standard for rice and dal mill machinery and
manufacturing process of the same does not involve much
technicalities only usual inspection should be followed such as
fabrication, welding, machining assembling and printing etc.

iii. Production capacity (Per annum) :

a) Rice Mill Plant 1 ton/ hour capacity - 60 Nos

b) Dal Mill Plant 2 ton/hour capacity - 24 Nos.

iv. Power required : 20 KVA

v. Pollution Control Requirement:

Not required.

vi. Energy conservation:

Suitable efficient electrical motors should be used in machines

with suitable shunt capacitors.
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MSME-DI, KANPUR.

F. Financial Aspects of the Project:

Fixed Capital

1. Land & Building- Rented

200 sw.mtr rented @ Rs. 40/ sq. mtr Rs. 8,000/-

2. Machinery & equipment:

S. Description Ind/ Qty. Value

No. Imp Nos. (Rs.)
1. Guillotine shearing machine 1250 mm x 4 mm Ind 1 3,00,000/-
shearing cap complete with 7 HP motor and
electrical
2. Hand lever shearing machine 3 x 245 mm cap Ind 1 20,000/-
3. Electric arc welding set 300 amp cap. 3 phase Ind 2 60,000/-
air cooled 8 KVA raling
4. Radial drill ½ cap Ind 1 1,00,000/-
5. Shaping m/c 24 “ stroke with 3 HP electric Ind 1 2,20,000/-
motor
6. Center lathe Heavy duty 3600 mm bed with 9 Ind 1 1,60,000/-
HP motor
7. Center lathe heavy duty 2400 mm bed with 2 Ind 1 1,40,000/-
HP motor
8. Gas welding set Ind 2 20,000/-
9. Bench grinder 8” wheel dia Ind 1 6,000/-
10. Installation and electrification @ 10% 1,02,600/-
11. Pre operative expenses 50,000/-
Total 11,78,600/-
b Testing Equipment & Tools

i. Hand tools 60,000

ii. Measuring instruments 40,000
Total 1,00,000/-
C. Office Furniture 50,000

Total 13,28,600/-
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MSME-DI, KANPUR.
Working Capital ( per month):

i) Personnel

Sl.No Description Nos Salary Total (Rs)

1. Manager 1 10000 10,000/-

2. Supervisor 1 6000 6,000/-
3. Skilled worker 3 3400 10,200/-
4. Semi skilled worker 4 3000 12,000/-
5. Helper 3 3000 9,000/-
6. Clerk cum typist 1 4000 4,000/-
7. Peon / Chowkidar 2 2400/- 4,800/-
Total 56,000/-
Perquisites of salary @ 15% 8,400/-
Total 64,400/-

ii. Raw materials (per month):

S.No. Description Qty Rate Value (Rs)

1 MS angle, channel bar in 10 MT Rs. 32000/MT 3,20,000/-

various sizes
2. BR sheet from 16 & 20 6 MT Rs. 40000/MT 2,40,000/-
SWG
3. Welding electrodes LS 40,000/-
4. Oxygen & acetylene gases LS 30,000/-
5. CI casting ( to be 12 MT Rs. 26000/MT 3,12,000/-
purchased from outside
foundry)
Total 9,42,000/-

iii. Utilities ( Per month):

Designation Amount (Rs.)

Electricity 15 KWH 9,000/-
Water 1,000/-
Total: 10,000/-
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MSME-DI, KANPUR.
iv. Other contingent expenses (per month):

i. Rent 8,000
ii. Postage and stationery 2,000
iii. Telephone 2,000
iv. Repair & maintenance 4,000
v. Transport charges 4,000
vi. Advertisement & Publicity 4,000
vii. Insurance 2,000
viii. Miscellaneous expenditure 4,000
Total: 30,000

v. Total Recurring Expenditure (Per/month:

i. Personnel 64,400/-
ii. Raw material 9,42,000/-
iii. Utilities 10,000/-
iv. Other contingent expenses 30,000/-
Total: 10,46,400/-

v. Total Working Capital for 3 months:

= Rs.10,46,400 X 3 = Rs. 31,38,000/-

Total Capital Investment:

(i) Fixed Capital Rs. 13,32,600/-

(ii) Working Capital Rs. 31,38,000/-
Total: - Rs. 44,70,600/-

G. Financial Analysis:

1. Cost of production (Per year) :

S.No. Particulars Amount (Rs.)

Total recurring cost 1,25,52,000/-
Depreciation on machinery & equipment @ 10% 1,02,600/-
Depreciation on office furniture/tools etc. @20% 30,000/-
Interest on capital investment @ 13% pa. 7,60,000/-
Total: 1,34,44,600/-
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MSME-DI, KANPUR.

2. Turnover (Per annum):

Sl. Item Rate(Rs.) Value (Rs.)

No.
1. By Sale of 60 plant of Rice Mill 1,60,000/Plant 96,00,000/-
1 MT Cap/hour
2. By Sale of 24 plant of Dal Mill 3,00,000/Plant 72,00,000/-
Total: 1,68,00,000/-

3. Net Profit (per annum):

Turn Over (-) Cost of Production

1,68,00,000/- (-) 1,34,44,600/- = 33,55,400/-

4. Net Profit Return:

Profit/annum X 100 33,55,400/- X 100

Sale /Annum 1,68,00,000/- = 19.9%

5. Rate of Return on total capital investment:

Profit/annum X 100 33,55,400/- X 100

Total Capital Investment 44,70,600/- = 75%

6. Break Even Point:

i) Fixed Cost
1 Rent 96,000/-
2 Total depreciation 1,30,600/-
3 Interest on total capital investment 7,60,000/-
4 40% of salary & wages 3,09,120/-
5 40% of others contingent expenses 1,05,600/-
Total: 14,01,320/-

ii) Net Profit:

BEP% :
Fixed Cost X 100 14,01,320/- X 100
Fixed Cost + Profit 14,01,320/- + 33,55,400/- = 29.4%
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MSME-DI, KANPUR.

I. Address of Machinery & Equipment suppliers.

1. M/s. Botliboi & Co., 26, R. N. Mukherjee, Kolkata-1.

2. M/s National Engg. Works, 41, Khanna Market, Hasari, Delhi-06.
3. M/s United Machine Tools Corporation, 12, DLF Industrial Area,
Najafgarh Road, New Delhi-15.

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PSB*March2012*