PROJECT REPORT

Of

GROUNDNUT

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Groundnut Processing unit.

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
 PROJECT AT A GLANCE
1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) : xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxx
Mobile xxxxxxx

5 Product and By Product : GROUNDNUT

6 Name of the project / business activity proposed : GROUNDNUT PROCESSING UNIT

7 Cost of Project : Rs.19.47 Lakhs

8 Means of Finance
Term Loan Rs.10.53 Lakhs
Own Capital Rs.1.95 Lakhs
Working Capital Rs.6.99 Lakhs

9 Debt Service Coverage Ratio : 3.20

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 31%

13 Employment : 11 Persons

14 Power Requirement : 20.00 HP

15 Major Raw materials : Harvested groundnut pod and packing material

16 Estimated Annual Sales Turnover (Max Capacity) : 148.78 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 10.70
Furniture & Fixtures 1.00
Working Capital 7.77
Total 19.47

MEANS OF FINANCE
Particulars Amount
Own Contribution 1.95
Working Capital(Finance) 6.99
Term Loan 10.53
Total 19.47
 GROUNDNUT PROCESSING UNIT

Introduction:

Groundnut is an oilseed that comes from the groundnut fruit. It is referred to as a nut
in general, but it is not a nut exactly in actual terms; rather, it is a seed that goes by
the name of peanut. The groundnut plant is an annual herb plant that belongs to the
Fabaceae family. The plant has feathery leaves, yellow flowers, and a legume-shaped
fruit with two to three seeds that grow within the ground. Oil is also obtained from
groundnut seeds, which are high in vitamin E, fatty acids, and carbohydrates and are
widely used as a cooking medium, lighting fuel, and food ingredient. Groundnut is
considered one of the world's most valuable oilseed crops. It is developed in over
100 countries around the world and is extremely important to the global economy.
The seeds are a good source of the groundnut oil cake's edible oil and proteins. The
oil and protein percentages derived from the seed are approximately 55 and 28
percent, respectively. After the oil is extracted, the oil cake meal is used as animal
feed and fertilizer. The key components of the groundnut seed are edible oil (45%)
and protein (26 percent ). It's also high in thiamine, riboflavin, nicotinic acid, vitamin
E, and all of the B vitamins, except B12.
Uses & Market Potential:

Groundnut seeds are eaten raw (uncooked), boiled, and roasted, and their flour is
used to make confections and baked goods. Groundnut shells are used to make
particle boards, as well as being used as a fuel or filler in the fertilizer and feed
industries. Groundnut haulms are a good source of protein for livestock.

Earthnuts, goober peas, monkey nuts, pygmy nuts, and pig nuts are some of the other
local names for Groundnuts. The peanut, despite its name and shape, is a legume, not
a nut. India is the world's second- largest producer of groundnuts. There are three
types of Indian groundnuts: Bold or Runner, Java or Spanish, and Red Natal. They
have a rich nutty flavour, a sweet taste, a crunchy texture, and a longer shelf life than
most nuts. Some growing regions have ideal soil conditions for dry, clean, and
spotless Groundnuts in Shell. Indian groundnut shellers and processors are becoming
increasingly aware of and concerned about efficiency. Multiple grading and sorting
are quickly becoming the standard. Indian factories are capable of processing and
producing edible peanuts that meet the highest quality requirements. Indian
groundnut shellers and processors are becoming increasingly aware of and concerned
about efficiency. Multiple grading and sorting are quickly becoming the standard.
Indian factories are capable of processing and producing edible peanuts that meet
the highest quality requirements. During the forecast period, 2021-2026, the peanuts
market is expected to develop at a CAGR of 4.5 percent.

Product:
Groundnut
Raw Material:
Raw material that are used are Harvested Groundnut pod and packing material.

Manufacturing Process:

 Raw material procurement

 Drying
 Stripping
 Cleaning
 Storage
 Shelling or decorticating
 Cleaning
 Grading

Area:

The industrial setup requires space for Inventory, workshop or manufacturing area, space
for power supply utilities and polishing area. Also, some of the area of building is
required for office staff facilities, office furniture, etc. Thus, the approximate total area
required for complete industrial setup is 1200-1800Sqft.
Cost of Machines:
S.N. Particulars Amount

1 Groundnut decorticator 1,50,000

2 Vibro separator 3,00,000

3 Color sorting machine 1,50,000

4 Metal detector 70,000

5 Packaging and filling machine 2,50,000

6 Electrical motor and board 1,00,000

7 Other Equipment’s 50,000

Sub-total Amount 10,70,000

Power Requirement- The estimated Power requirement is taken at 20 HP.

Manpower Requirement– Following manpower is required:

 Machine operator-2
 Skilled/unskilled worker-3
 Helper-4
 Manager cum Accountant-1
 Sales Personnel-1

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 2.72 4.15 6.22 8.81
Add: Additions 1.95 - - - -
Add: Net Profit 4.58 5.73 6.87 8.09 9.45
Less: Drawings 3.80 4.30 4.80 5.50 6.00
Closing Balance 2.72 4.15 6.22 8.81 12.26
CC Limit 6.99 6.99 6.99 6.99 6.99
Term Loan 9.36 7.02 4.68 2.34 -
Sundry Creditors 2.88 3.30 3.75 4.20 4.68

TOTAL : 21.96 21.47 21.64 22.34 23.93

APPLICATION OF FUND

Fixed Assets ( Gross) 11.70 11.70 11.70 11.70 11.70

Gross Dep. 1.71 3.16 4.40 5.46 6.36
Net Fixed Assets 10.00 8.54 7.30 6.24 5.34

Current Assets
Sundry Debtors 3.99 4.82 5.50 6.21 6.94
Stock in Hand 6.66 7.65 8.66 9.70 10.79
Cash and Bank 1.31 0.45 0.17 0.19 0.86

TOTAL : 21.96 21.47 21.64 22.34 23.93

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 85.50 103.37 117.91 133.04 148.78

Total (A) 85.50 103.37 117.91 133.04 148.78

B) COST OF SALES

Raw Material Consumed 57.60 66.10 74.91 84.05 93.53

Elecricity Expenses 1.79 2.01 2.24 2.46 2.69
Repair & Maintenance 2.14 2.58 2.95 3.33 3.72
Labour & Wages 12.35 14.82 17.04 19.09 21.38
Depreciation 1.71 1.45 1.24 1.06 0.90
Cost of Production 75.58 86.97 98.38 109.98 122.21

Add: Opening Stock /WIP - 3.78 4.35 4.92 5.50

Less: Closing Stock /WIP 3.78 4.35 4.92 5.50 6.11

Cost of Sales (B) 71.80 86.40 97.81 109.40 121.60

C) GROSS PROFIT (A-B) 13.70 16.98 20.10 23.64 27.18

16.02% 16.42% 17.05% 17.77% 18.27%
D) Bank Interest i) (Term Loan ) 1.14 0.93 0.68 0.42 0.16
ii) Interest On Working Capital 0.77 0.77 0.77 0.77 0.77
E) Salary to Staff 5.67 6.61 7.60 8.74 10.13
F) Selling & Adm Expenses Exp. 1.54 2.58 3.54 4.66 5.21

G) TOTAL (D+E+F) 9.12 10.89 12.58 14.58 16.27

H) NET PROFIT 4.58 6.08 7.52 9.06 10.91

5.4% 5.9% 6.4% 6.8% 7.3%
I) Taxation - 0.36 0.65 0.97 1.45

J) PROFIT (After Tax) 4.58 5.73 6.87 8.09 9.45

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 1.95 - - - -

Reserve & Surplus 4.58 6.08 7.52 9.06 10.91
Depriciation & Exp. W/off 1.71 1.45 1.24 1.06 0.90
Increase In Cash Credit 6.99 - - - -
Increase In Term Loan 10.53 - - - -
Increase in Creditors 2.88 0.42 0.44 0.46 0.47

TOTAL : 28.63 7.96 9.20 10.58 12.28

APPLICATION OF FUND

Increase in Fixed Assets 11.70 - - - -

Increase in Stock 6.66 0.99 1.01 1.04 1.09
Increase in Debtors 3.99 0.83 0.68 0.71 0.73
Repayment of Term Loan 1.17 2.34 2.34 2.34 2.34
Taxation - 0.36 0.65 0.97 1.45
Drawings 3.80 4.30 4.80 5.50 6.00
TOTAL : 27.32 8.82 9.48 10.56 11.61

Opening Cash & Bank Balance - 1.31 0.45 0.17 0.19

Add : Surplus 1.31 - 0.86 - 0.28 0.02 0.67

Closing Cash & Bank Balance 1.31 0.45 0.17 0.19 0.86
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15 Days requirement) 3.78 4.35 4.92 5.50 6.11
Raw Material
(15 Days requirement) 2.88 3.30 3.75 4.20 4.68

Closing Stock 6.66 7.65 8.66 9.70 10.79

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 6.66
Less:
Sundry Creditors 2.88
Paid Stock 3.78 0.38 3.40

Sundry Debtors 3.99 0.40 3.59

Working Capital Requirement 6.99

Margin 0.78

MPBF 6.99
Working Capital Demand 6.99
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 10.53 10.53 0.29 - 10.53
Iind Quarter 10.53 - 10.53 0.29 - 10.53
IIIrd Quarter 10.53 - 10.53 0.29 0.59 9.95
Ivth Quarter 9.95 - 9.95 0.27 0.59 9.36
1.14 1.17
II Opening Balance
Ist Quarter 9.36 - 9.36 0.26 0.59 8.78
Iind Quarter 8.78 - 8.78 0.24 0.59 8.19
IIIrd Quarter 8.19 - 8.19 0.23 0.59 7.61
Ivth Quarter 7.61 7.61 0.21 0.59 7.02
0.93 2.34
III Opening Balance
Ist Quarter 7.02 - 7.02 0.19 0.59 6.44
Iind Quarter 6.44 - 6.44 0.18 0.59 5.85
IIIrd Quarter 5.85 - 5.85 0.16 0.59 5.27
Ivth Quarter 5.27 5.27 0.14 0.59 4.68
0.68 2.34
IV Opening Balance
Ist Quarter 4.68 - 4.68 0.13 0.59 4.10
Iind Quarter 4.10 - 4.10 0.11 0.59 3.51
IIIrd Quarter 3.51 - 3.51 0.10 0.59 2.93
Ivth Quarter 2.93 2.93 0.08 0.59 2.34
0.42 2.34
V Opening Balance
Ist Quarter 2.34 - 2.34 0.06 0.59 1.76
Iind Quarter 1.76 - 1.76 0.05 0.59 1.17
IIIrd Quarter 1.17 - 1.17 0.03 0.59 0.58
Ivth Quarter 0.58 0.58 0.02 0.59 - 0.00
0.16 2.34

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R
PARTICULARS I II III IV V

CASH ACCRUALS 6.28 7.18 8.11 9.14 10.36

Interest on Term Loan 1.14 0.93 0.68 0.42 0.16

Total 7.43 8.12 8.78 9.56 10.52

REPAYMENT
Repayment of Term Loan 1.17 2.34 2.34 2.34 2.34
Interest on Term Loan 1.14 0.93 0.68 0.42 0.16

Total 2.31 3.27 3.02 2.76 2.50

DEBT SERVICE COVERAGE RATIO 3.21 2.48 2.91 3.47 4.21

AVERAGE D.S.C.R. 3.20

Assumptions:
1. Production Capacity of Groundnut Processing unit is taken at 1000 KG per day.
First year, Capacity has been taken @ 40%.

2. Working shift of 10 hours per day has been considered.

3. Raw Material stock and Finished goods closing stock has been taken for 15
days.

4. Credit period to Sundry Debtors has been given for 14 days.

5. Credit period by the Sundry Creditors has been provided for 15 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 20 HP.

10. Selling Prices & Raw material costing has been increased by 3% & 2%
respectively in the subsequent years.
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
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considering specific requirement of the project, capacity and type of plant and
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intended for general guidance only and must not be considered a substitute for a
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hereby disclaims any and all liability to any party for any direct, indirect, implied,
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