Sample DPR : ROASTED RICE FLAKES

kkakade6
October 2019

Contents
1 Introduction 2

2 Product 2

3 Market Potential 2

4 Technical Aspects 2
4.1 Process of Manufacture . . . . . . . . . . . . . . . . . . . . . . . 2
4.2 Pollution Control . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
4.3 Production Capacity . . . . . . . . . . . . . . . . . . . . . . . . . 4

5 Financial Aspects 4
5.1 Fixed Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5.1.1 Land and Building . . . . . . . . . . . . . . . . . . . . . . 4
5.1.2 Plant and Machinery . . . . . . . . . . . . . . . . . . . . . 4
5.1.3 Furniture and Fixing . . . . . . . . . . . . . . . . . . . . . 4
5.1.4 Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5.1.5 Manpower Required . . . . . . . . . . . . . . . . . . . . . 5
5.2 Details of Project Cost . . . . . . . . . . . . . . . . . . . . . . . . 5
5.2.1 Land and Building . . . . . . . . . . . . . . . . . . . . . . 5
5.2.2 Plant and Machinery . . . . . . . . . . . . . . . . . . . . . 5
5.2.3 Miscellaneous Assets . . . . . . . . . . . . . . . . . . . . . 5
5.2.4 Preliminary and Pre - operative Expenses . . . . . . . . . 5
5.2.5 Working Capital Requirement . . . . . . . . . . . . . . . . 5
5.3 Cost of Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5.3.1 Means of Finance . . . . . . . . . . . . . . . . . . . . . . . 6
5.3.2 Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . 6
5.3.3 Raw Material required per annum . . . . . . . . . . . . . 7
5.3.4 Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . 7
5.4 Calculation of Profit . . . . . . . . . . . . . . . . . . . . . . . . . 8
5.5 Break Even Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 9
5.6 Return on investment . . . . . . . . . . . . . . . . . . . . . . . . 9

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6 Suppliers and Manufacturer details 9

1 Introduction
Generally the beaten rice is a popular food for all kinds of human living in
India. Most people used this as a raw food in ancient times which is very easy
to produce and prepare at home. Now the people are making different kinds
of recipes with this by adding sweetness or spices. This is rich in fiber and
carbohydrate and can be consumed even by those suffering from diabetes, high
blood pressure etc. Now the medical journals are also encouraging the same.
Another point to be remembered is that paddy is available in plenty in India
(and kerala) and hence the raw material has no shortage.

2 Product
CFTRI Mysore has introduced new methods to evolve the roasted flakes with
different spices and sweetness. This can be directly used as a snack or light
food. This can easily attract both small children and elders. Also one of the
specialties is the easiness with which the product can be prepared though it
consumes a little time.

3 Market Potential
This product in the market is relatively new one. Hence it has tremendous
scope. A good quality product in attractive pack will give a boost in marketing
the product. The main scenario in rice flakes is that it is pure in nature and
adding spices or sweets will not contaminate it in any way.

4 Technical Aspects
4.1 Process of Manufacture
The paddy is cleaned and stones are removed. It is soaked in water and boiled
in a boiler. When it is lowered its temperature is reduced a little and is pounded
or pressed mechanically to form flakes. It is sieved and roasted by adding the
required flavors. This product is packed and labeled indifferent weights.

2
 Cleaning

Soaking

Boiling

Pounding

Sieving

Roasting

Packing

This industry does not create any kind of pollution and as such there is no
need of any preventive measures

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4.2 Pollution Control
4.3 Production Capacity

5 Financial Aspects
5.1 Fixed Capital
5.1.1 Land and Building
It is estimated that a land of 250 Sq m is required with 125 Sq m with buildup
area.Cost of land in rural area is calculated as Rs 1,25,000/- and the cost of
construction is taken as Rs 3,25,000/-

5.1.2 Plant and Machinery

It is suggested to install a unit with annual production capacity of 250 MT
based on 300 working days and 1 shift per day.

No ITEM QUANTITY PRICES(IN LAKHS)

1 Avil Mill 2 1.50
2 Roaster 2 1.00
3 Husk fired furnance 1 0.25
4 Paddy soaking tanks 4 0.6
5 Sieves 4 0.25
6 Sealing machines 1 0.25
Total 3.85

Table 1: Caption

5.1.3 Furniture and Fixing

A provision of Rs 40,000/- is provided for the working tables furniture and
fixtures storage facilities.

5.1.4 Utilities
Power requirement shall be 15 hp and daily water consuming is Rs750 for 800
liters.

4
5.1.5 Manpower Required

Particulars Monthly salary Total monthly salary (Rs)

Skilled Workers 3500 7000
Semi Skilled Workers 3000 6000
Helpers 2000 8000
Sales man 3000 3000
Total Salary 24000

Table 2: Caption

5.2 Details of Project Cost

5.2.1 Land and Building

Particulars Monthly salary Total monthly salary (Rs)

Land 250 Sq m 125000
Building 125 Sq m 325000
Total 450000

Table 3: Caption

5.2.2 Plant and Machinery

A total cost of Rs3.85 Lakhs is calculated in this head.

5.2.3 Miscellaneous Assets

A provision of Rs40,000/- is provided to this project

5.2.4 Preliminary and Pre - operative Expenses

This include some charges like registration, trial run expenses, interest during
implementation etc. and are covered with a provision of Rs50,000/-

5.2.5 Working Capital Requirement

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 Particulars Period Margin Promoters Bank Total (Lakhs)
Stock of Materials 1 month 30% 0.30 0.8 1.10
Stock of Finished Goods 1/2 month 25% 0.14 0.41 0.55
Receivables 1 month 25% 0.26 1.39 1.65
Working Expenses 1 month 100% 0.2 0.2
Total 0.90 2.60 3.50

Table 4: Caption

5.3 Cost of Project

Items Amount(Lakhs)
Land and Building 4.50
Machinery 3.85
Miscellaneous assets 0.40
Preliminary & Preoperative Expenses 0.50
Contingencies @10% on fixed assets 0.84
Working Capital 3.50
13.59

Table 5: Caption

5.3.1 Means of Finance

Promoters contribution 4.07

Loan from Bank 9.52
Total 13.59

Table 6: Caption

5.3.2 Assumptions
a) Utilities : the annual expenditure towards power and water is estimated to
be Rs 60000/-
b) Selling Expenses : Rice flakes will be sold through retailers. For this
commission and transportation charges will be there. Hence a provision @
12.5% is provided
c) Interest on term loan is calculated as 12% per annum assuming a repayment
period of 4years. Interest on working capital is taken as 14
d) Depreciation It is calculated assuming @10% on building and @20% on
plant and machinery

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5.3.3 Raw Material required per annum

Products Quantity(MT) Rate/Price Value (In Lakhs)

Paddy 250 8900 22.25
Spices 25 4000 1.0
23.25

Table 7: Caption

5.3.4 Sales Revenue

Products Quantity Selling Price Sales (In Lakhs)

Roasted Flakes 200 12000 24
Rice Bran 25 2000 1.0
25

Table 8: Caption

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5.4 Calculation of Profit

No Particulars Year1 Year2 Year3 Year4

A Installed capacity 250MT
Capacity utilization 60% 70% 80% 100%
Sales realization 24.5 31.85 34 38.25
B Cost of production Year1 Year2 Year3 Year4
Raw materials 13.95 16.28 18.60 20.93
Utilities 0.36 0.42 0.42 0.54
Salaries 2.88 2.88 2.88 3.17
Stores & Spares 0.20 0.20 0.20 0.20
Repairs and Maintenance 0.30 0.30 0.30 0.30
Selling expenses 1.91 1.99 1.99 1.99
Administrative Expenses 0.30 0.30 0.30 0.30
Total 19.9 22.37 25.48 28.76
C Profit before Interest and Taxation 4.6 9.48 8.52 9.49
Interest on Term loan 0.83 0.83 0.63 0.43
Interest on working capital 0.36 0.36 0.36 0.36
Depreciation (0.32+.77) 1.09 1.09 1.09 1.09
Profit before tax 2.32 7.20 7.43 8.40
Income tax @10% 0.23 2.28 2.08 2.52
Profit after Tax 2.09 5.04 5.2 5.88
Cash accruals 3.18 6.13 6.29 6.97

Table 9: Caption

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5.5 Break Even Analysis

No Particulars Amount (In Lakhs)

A Sales 25.0
B Variable cost
Raw materials 13.95
Utilities (60%) 0.22
Salaries (60%) 1.73
Stores & Spares 0.2
Selling expenses (60%) 1.15
Admn.expenses(50%) 0.15
Interest on working Capital 0.36
17.76
C Contribution
7.24
D Fixed Cost
Depreciation 1.09
Utilities 0.14
Salaries 1.15
Selling expenses 0.76
Administrative expenses 0.15
3.29

E Break-even point ( D/C) 45.44%

Table 10: Caption

5.6 Return on investment

Profit after tax/investment
= 2.09/13.59*100
= 15.37

6 Suppliers and Manufacturer details

1) Indopol food processing industry pvt. Ltd Faridabad 121003
Ph 2276161
2) SP Engg.worksFazalGunj,Kanpur