Model Detailed Project Report

SOYA CHUNK UNIT

Prepared by

National Institute of Food Technology

Entrepreneurship and Management(NIFTEM)
Plot No. 97, Sector 56, HSIIDC, Industrial Estate, Kundli,
Sonipat, Haryana 131028
Ministry of Food Processing Industries, Government of India
1. INTRODUCTION

SOYA CHUNK

In the world of health and nutrition, protein-rich foods are creating a buzz
lately. Protein stands out to be one of the most important nutrients that must
be included in diet daily. Dietary protein not only helps build and repair
muscles but also induces a feeling of satiety, which facilitates weight loss by
keeping uncontrolled bingeing at bay.

Soya Chunk is replete with protein content. Made from soybean, soya
chunks are popularly known as vegetarian meat for its meaty taste and
fibrous texture. Being abundantly dense in protein, soya chunks are widely
used in Indian household kitchens as part of curries and snacks items.

Soy is full of polyunsaturated fats, proteins and omega 3 fatty acids. 100
grams of uncooked soya chunks have 345 calories with 52 grams of protein,
0.5 grams total fat, 33 grams carbohydrates and 13 grams dietary fibre. They
are also rich in calcium and iron while providing no extra sugar or sodium to
the body. Soya chunks are also popularly known as meal maker is a textured
or texturized vegetable protein which is also known as textured soy protein
or soya meat or a nutritious meat extender made from defatted soy flour, a
by-product of extracting soybean oil.
2. MARKET POTENTIAL:

The soya Chunks market is segmented on the basis of nature, packaging,

and distribution channel. On the basis of nature type, the global soya Chunks
market can be segmented into organic soya Chunks, and conventional soya
Chunks. On the basis of packaging, the soya Chunks market is segmented
into carton packaging, cans and pouches. The mode of packaging chosen
depends on the region in which the product is offered.

On the basis of the distribution channel, the soya Chunks market is

segmented into direct and indirect sales. The indirect sales segment can be
further segmented into store-based retailing and online retailing. Store-
based retailing can be further classified into modern grocery retailers and
traditional grocery retailers. Modern grocery retailers can be further sub-
segmented into a convenience store, mom and pop stores, discount stores,
and hypermarkets or supermarkets. The traditional grocery retailers can be
further sub-segmented into food & drink specialty stores, independent small
groceries, and others. The soya Chunks are easily available in local markets,
which provides an ease to consumers to use the benefits offered by the
product.
The soya nugget market in India is growing at a rate of 25% to 30% which
are prompting companies to become more active. The Global Textured Soy
Protein Market to exhibit a CAGR of 7.9% during the period 2019-2024.

Soybean meal market is segmented on the basis of process of production

as normal soybean meal, De-hulled [min 50% protein] Hipro Soybean meal,
and DE hulled [min. 48% protein] Hipro Soybean meal, Defatted soya flour
toasted, and de-fatted soya flakes toasted are available in the market.
3. PRODUCT DESCRIPTION

3.1 PRODUCT BENEFITS & TYPES

Soya Nuggets are as good as original meat. They possess similar

properties in terms protein content. They are also similar chewy
characteristics on soaking in water. Also, they are free from
cholesterol, and thus heavily used as meat substitutes. These nuggets
can be used in preparing various food products in households as well
as in restaurants and can be important because of its high nutritional
value.

Types of Soya Chunk

Two types of soya chunks are available in market.

1. Normal size soya chunks
2. Mini soya chunks

3.2 RAW MATERIAL

Following raw materials are used as basic raw material for soya chunk
manufacturing unit:
 Soya Flour
 Water

3.3 MANUFACTURING PROCESS

Soya Chunk manufacturing Process

 Raw material is procured from the local vendor
 All raw materials are placed in the inventory
  The soy flour is fed to the flour mixer with water
 Mixer forms a thick slurry of Soy Flour
 This slurry is fed to Soy Nugget Extruder
 It’s a cooking extruder with inbuilt cutter at die end
 Soy Flour slurry is then cooked within barrel of extruder
 Barrel heater provides necessary heat for the process
 Thick cooked soy paste at this point is extruded through die
 A cutter quickly cuts extruded soy nuggets
 Due to cooking water vapors generated are at high pressure
 Thus after extrusion these vapors escape to surrounding
 This generates texture of soy nuggets
 Soy nuggets are then simply fed to a dryer
 The dryer further removes the moisture present in nuggets
 These dried nuggets are then checked for quality
 Soy nuggets are then packed & sent for sale.

4. PROJECT COMPONENTS

4.1 Land

Land required 1500 square feet

Approximate rent for the same is Rs.20,000 – 30,000 per month.

4.2 Plant & Machinery

Following plant & machinery are required for soya chunk manufacturing unit.

 Starting Panel In All Motor.

 Mixer (SS Body) 7.5 HP Motor Gear Box
 Extruder with 50 HP Motor Gear Box, Cutter, Peaces Diameter In (2
Pease Gol Badi) + (2 Pease Mini Chunks)
 2 Belt Conveyer with 1 HP Motor Gear Box.
 3 Stage Dryer with Motor Ms Belt Conveyer.
 Two Screw Conveyor with 2 HP Motor Gear Box
 Two Belt Conveyor with 2 HP Motor
 Heat Exchanger With Gear and Motor and Control Panel

Particular Description Image

Mixer Used for mixing of soy

flour with water

Extruder It’s a cooking extruder

with inbuilt cutter at die
end.
 Screw
conveyor

Note: total cost of the plant & machinery is Rs.15, 50, 000 excluding GST
and other transportation cost.

4.3 Misc. Assets

S.N. Item Description Rate

1 Electricity fittings & equipment’s 1,00,000

2 Furniture and equipment’s 50,000

4.4 Power Requirement

The borrower shall require power load of 50 HP which shall be applied with
Power Corporation. However, for standby power arrangement the borrower
shall also purchase DG Set.

4.5 Manpower Requirement

7-8 Manpower are required for the soya chunk manufacturing unit.

Includes:

2 Skilled Labour

2-3 Unskilled Labour

2 Helper &

1 Supervisor
5. FINANCIALS

5.1 Cost of Project

COST OF PROJECT

(in Lacs)

Own Bank
PARTICULARS AMOUNT Contribution Finance

25.00% 75.00%

Land & Building Owned /rented

Plant & Machinery 15.50 3.88 11.63

Furniture & Fixtures and Other Assets 1.50 0.38 1.13

Working capital 10.00 2.50 7.50

Total 27.00 6.75 20.25

5.2 Means of Finance

PARTICULARS AMOUNT

Own Contribution 6.75

Bank Loan 12.75

Working capital Limit 7.50

Total 27.00
5.3 Projected Balance Sheet

(in Lacs)
PROJECTED BALANCE SHEET

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Liabilities

Capital

opening balance 7.15 9.79 12.79 16.46

Add:- Own Capital 6.75

Add:- Retained Profit 2.65 5.54 7.50 10.67 13.32

Less:- Drawings 2.25 2.90 4.50 7.00 9.50

Closing Balance 7.15 9.79 12.79 16.46 20.28

Term Loan 11.33 8.50 5.67 2.83 -

Working Capital Limit 7.50 7.50 7.50 7.50 7.50

Sundry Creditors 2.96 3.43 3.94 4.47 5.04

Provisions & Other Liab 0.30 0.38 0.45 0.54 0.65

TOTAL : 29.25 29.60 30.34 31.81 33.47

Assets

Fixed Assets ( Gross) 17.00 17.00 17.00 17.00 17.00

Gross Dep. 2.48 4.59 6.39 7.92 9.24

Net Fixed Assets 14.53 12.41 10.61 9.08 7.76

Current Assets

Sundry Debtors 3.80 4.64 5.35 6.11 6.92

Stock in Hand 9.67 11.20 12.80 14.51 16.33

Cash and Bank 1.26 1.34 1.57 2.11 2.45

TOTAL : 29.25 29.60 30.34 31.81 33.47

5.4 Projected Cash Flow
(in Lacs)
PROJECTED CASH FLOW STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

SOURCES OF FUND

Own Margin 6.75

Net Profit 2.65 5.60 7.80 10.99 14.08

Depriciation & Exp. W/off 2.48 2.11 1.80 1.54 1.31

Increase in Cash Credit 7.50 - - - -

Increase In Term Loan 12.75 - - - -

Increase in Creditors 2.96 0.47 0.50 0.54 0.57

Increase in Provisions & Oth lib 0.30 0.08 0.08 0.09 0.11

TOTAL : 35.39 8.26 10.18 13.15 16.07

APPLICATION OF FUND

Increase in Fixed Assets 17.00

Increase in Stock 9.67 1.53 1.60 1.71 1.82

Increase in Debtors 3.80 0.84 0.71 0.76 0.81

Repayment of Term Loan 1.42 2.83 2.83 2.83 2.83

Drawings 2.25 2.90 4.50 7.00 9.50

Taxation - 0.06 0.31 0.32 0.76

TOTAL : 34.13 8.17 9.95 12.62 15.72

Opening Cash & Bank Balance - 1.26 1.34 1.57 2.11

Add : Surplus 1.26 0.09 0.23 0.53 0.34

Closing Cash & Bank Balance 1.26 1.34 1.57 2.11 2.45
5.5 Projected Profitability

(in Lacs)
PROJECTED PROFITABILITY STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Capacity Utilization % 50% 55% 60% 65% 70%

SALES

Gross Sale

Soya Chunk 114.00 139.28 160.61 183.37 207.58

Total 114.00 139.28 160.61 183.37 207.58

COST OF SALES

Raw Material Consumed 88.80 102.96 118.08 134.16 151.20

Electricity Expenses 4.56 5.24 6.03 6.94 7.98

Depreciation 2.48 2.11 1.80 1.54 1.31

Wages & labour 5.28 5.81 6.39 7.03 7.73

Repair & maintenance 3.42 4.87 5.62 6.42 7.27

Cost of Production 104.54 121.00 137.92 156.08 175.48

Add: Opening Stock /WIP - 5.23 6.05 6.90 7.80

Less: Closing Stock /WIP 5.23 6.05 6.90 7.80 8.77

Cost of Sales 99.31 120.18 137.08 155.17 174.51

GROSS PROFIT 14.69 19.11 23.53 28.20 33.06

Salary to Staff 3.48 3.83 4.21 4.63 5.10

Interest on Term Loan 1.25 1.10 0.79 0.48 0.17

Interest on working Capital 0.83 0.83 0.83 0.83 0.83

Rent 4.20 4.62 5.08 5.59 6.15

selling & adm exp 2.28 3.13 4.82 5.68 6.75

TOTAL 12.04 13.51 15.73 17.21 18.98

NET PROFIT 2.65 5.60 7.80 10.99 14.08

Taxation 0.06 0.31 0.32 0.76

PROFIT (After Tax) 2.65 5.54 7.50 10.67 13.32

5.6 Production and Yield

COMPUTATION OF PRODUCTION OF SOYA CHUNK

Items to be Manufactured

Soya Chunk

Machine Production capacity per Hour 200 KG

Working hours in a day 8

Production Per Day 1,600 KG

No of Working Days in Month 25

No of Working Days in a Year 300

machine capacity per annum 480,000 KG

Production of Soya Chunk

Production Capacity KG
1st year 50% 240,000
2nd year 55% 264,000
3rd year 60% 288,000
4th year 65% 312,000
5th year 70% 336,000
Raw Material Cost
Year Capacity Rate Amount

Utilization (per KG) (Rs. in lacs)

1st year 50% 37.00 88.80

2nd year 55% 39.00 102.96

3rd year 60% 41.00 118.08

4th year 65% 43.00 134.16

5th year 70% 45.00 151.20

5.7 Sales Revenue

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year

Op Stock - 12,000 13,200 14,400 15,600

Production 240,000 264,000 288,000 312,000 336,000

Less : Closing Stock 12,000 13,200 14,400 15,600 16,800

Net Sale 228,000 262,800 286,800 310,800 334,800

sale price per KG 50.00 53.00 56.00 59.00 62.00

Sales (in Lacs) 114.00 139.28 160.61 183.37 207.58

5.8 Working Capital Assessment

(in Lacs)
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Finished Goods

5.23 6.05 6.90 7.80 8.77

Raw Material

4.44 5.15 5.90 6.71 7.56

Closing Stock 9.67 11.20 12.80 14.51 16.33

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)

Particulars Amount Own Margin Bank Finance

Finished Goods & Raw Material 9.67

Less : Creditors 2.96

Paid stock 6.71 25% 1.68 75% 5.03

Sundry Debtors 3.80 25% 0.95 75% 2.85

10.51 2.63 7.88

WORKING CAPITAL LIMIT DEMAND ( from Bank) 7.50

5.9 Power, Salary & Wages Calculation

Utility Charges (per month)

Particulars value Description
Power connection required 38 KWH
consumption per day 304 units

Consumption per month 7,600 units

Rate per Unit 10 Rs.
power Bill per month 76,000 Rs.

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary

Skilled (in thousand rupees) 13,000 2 26,000

Unskilled (in thousand rupees) 9,000 2 18,000

Total salary per month 44,000

Total annual labour charges (in lacs) 5.28

BREAK UP OF Staff Salary CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary

helper 7,000 2 14,000

Supervisor 15,000 1 15,000

Total salary per month 29,000

Total annual Staff charges (in lacs) 3.48

5.10 Depreciation
(in Lacs)
COMPUTATION OF DEPRECIATION
Description Plant & Machinery Furniture TOTAL

Rate of Depreciation 15.00% 10.00%

Opening Balance - - -

Addition 15.50 1.50 17.00

Total 15.50 1.50 17.00

Less : Depreciation 2.33 0.15 2.48

WDV at end of Year 13.18 1.35 14.53

Additions During The Year - - -

Total 13.18 1.35 14.53

Less : Depreciation 1.98 0.14 2.11

WDV at end of Year 11.20 1.22 12.41

Additions During The Year - - -

Total 11.20 1.22 12.41

Less : Depreciation 1.68 0.12 1.80

WDV at end of Year 9.52 1.09 10.61

Additions During The Year - - -

Total 9.52 1.09 10.61

Less : Depreciation 1.43 0.11 1.54

WDV at end of Year 8.09 0.98 9.08

Additions During The Year - - -

Total 8.09 0.98 9.08

Less : Depreciation 1.21 0.10 1.31

WDV at end of Year 6.88 0.89 7.76

5.11 Repayment schedule

REPAYMENT SCHEDULE OF TERM LOAN

Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance
1st month - 12.75 12.75 - - 12.75
2nd month 12.75 - 12.75 0.12 - 12.75
3rd month 12.75 - 12.75 0.12 - 12.75
4th month 12.75 - 12.75 0.12 12.75
5th month 12.75 - 12.75 0.12 12.75
6th month 12.75 - 12.75 0.12 12.75
7th month 12.75 - 12.75 0.12 0.24 12.51
8th month 12.51 - 12.51 0.11 0.24 12.28
9th month 12.28 - 12.28 0.11 0.24 12.04
10th month 12.04 - 12.04 0.11 0.24 11.81
11th month 11.81 - 11.81 0.11 0.24 11.57
12th month 11.57 - 11.57 0.11 0.24 11.33
1.25 1.42
2nd Opening Balance
1st month 11.33 - 11.33 0.10 0.24 11.10
2nd month 11.10 - 11.10 0.10 0.24 10.86
3rd month 10.86 - 10.86 0.10 0.24 10.63
4th month 10.63 - 10.63 0.10 0.24 10.39
5th month 10.39 - 10.39 0.10 0.24 10.15
6th month 10.15 - 10.15 0.09 0.24 9.92
7th month 9.92 - 9.92 0.09 0.24 9.68
8th month 9.68 - 9.68 0.09 0.24 9.44
9th month 9.44 - 9.44 0.09 0.24 9.21
10th month 9.21 - 9.21 0.08 0.24 8.97
11th month 8.97 - 8.97 0.08 0.24 8.74
12th month 8.74 - 8.74 0.08 0.24 8.50
1.10 2.83
3rd Opening Balance
1st month 8.50 - 8.50 0.08 0.24 8.26
2nd month 8.26 - 8.26 0.08 0.24 8.03
3rd month 8.03 - 8.03 0.07 0.24 7.79
4th month 7.79 - 7.79 0.07 0.24 7.56
5th month 7.56 - 7.56 0.07 0.24 7.32
6th month 7.32 - 7.32 0.07 0.24 7.08
7th month 7.08 - 7.08 0.06 0.24 6.85
8th month 6.85 - 6.85 0.06 0.24 6.61
 9th month 6.61 - 6.61 0.06 0.24 6.38
10th month 6.38 - 6.38 0.06 0.24 6.14
11th month 6.14 - 6.14 0.06 0.24 5.90
12th month 5.90 - 5.90 0.05 0.24 5.67
0.79 2.83
4th Opening Balance
1st month 5.67 - 5.67 0.05 0.24 5.43
2nd month 5.43 - 5.43 0.05 0.24 5.19
3rd month 5.19 - 5.19 0.05 0.24 4.96
4th month 4.96 - 4.96 0.05 0.24 4.72
5th month 4.72 - 4.72 0.04 0.24 4.49
6th month 4.49 - 4.49 0.04 0.24 4.25
7th month 4.25 - 4.25 0.04 0.24 4.01
8th month 4.01 - 4.01 0.04 0.24 3.78
9th month 3.78 - 3.78 0.03 0.24 3.54
10th month 3.54 - 3.54 0.03 0.24 3.31
11th month 3.31 - 3.31 0.03 0.24 3.07
12th month 3.07 - 3.07 0.03 0.24 2.83
0.48 2.83
5th Opening Balance
1st month 2.83 - 2.83 0.03 0.24 2.60
2nd month 2.60 - 2.60 0.02 0.24 2.36
3rd month 2.36 - 2.36 0.02 0.24 2.13
4th month 2.13 - 2.13 0.02 0.24 1.89
5th month 1.89 - 1.89 0.02 0.24 1.65
6th month 1.65 - 1.65 0.02 0.24 1.42
7th month 1.42 - 1.42 0.01 0.24 1.18
8th month 1.18 - 1.18 0.01 0.24 0.94
9th month 0.94 - 0.94 0.01 0.24 0.71
10th month 0.71 - 0.71 0.01 0.24 0.47
11th month 0.47 - 0.47 0.00 0.24 0.24
12th month 0.24 - 0.24 0.00 0.24 -
0.17 2.83
DOOR TO DOOR 60 MONTHS
MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
5.12 Financial Indicators

FINANCIAL INDICATORS

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
TURNOVER 114.00 139.28 160.61 183.37 207.58
GROSS PROFIT 14.69 19.11 23.53 28.20 33.06
G.P. RATIO 12.89% 13.72% 14.65% 15.38% 15.93%

NET PROFIT 2.65 5.60 7.80 10.99 14.08

N.P. RATIO 2.33% 4.02% 4.86% 5.99% 6.78%

CURRENT ASSETS 14.72 17.18 19.73 22.73 25.70

CURRENT LIABILITIES 10.76 11.31 11.89 12.51 13.19
CURRENT RATIO 1.37 1.52 1.66 1.82 1.95

TERM LOAN 11.33 8.50 5.67 2.83 -

TOTAL NET WORTH 7.15 9.79 12.79 16.46 20.28
DEBT/EQUITY 1.58 0.87 0.44 0.17 -

TOTAL NET WORTH 7.15 9.79 12.79 16.46 20.28

TOTAL OUTSIDE LIABILITIES 22.09 19.81 17.55 15.35 13.19
TOL/TNW 3.09 2.02 1.37 0.93 0.65

PBDIT 7.21 9.64 11.22 13.83 16.38

INTEREST 2.08 1.93 1.62 1.31 0.99
INTEREST COVERAGE RATIO 3.47 5.00 6.94 10.60 16.49

WDV 14.53 12.41 10.61 9.08 7.76

TERM LOAN 11.33 8.50 5.67 2.83 -
FACR 1.28 1.46 1.87 3.20 -
5.13 DSCR

CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 5.13 7.65 9.30 12.21 14.63

Interest on Term Loan 1.25 1.10 0.79 0.48 0.17

Total 6.38 8.75 10.09 12.69 14.80

REPAYMENT

Instalment of Term Loan 1.42 2.83 2.83 2.83 2.83

Interest on Term Loan 1.25 1.10 0.79 0.48 0.17

Total 2.67 3.94 3.63 3.31 3.00

DEBT SERVICE COVERAGE RATIO 2.39 2.22 2.78 3.83 4.93

AVERAGE D.S.C.R. 3.23

5.14 Break Even Point Analysis

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 114.00 139.28 160.61 183.37 207.58

Less : Op. WIP Goods - 5.23 6.05 6.90 7.80

Add : Cl. WIP Goods 5.23 6.05 6.90 7.80 8.77

Total Sales 119.23 140.11 161.45 184.28 208.55

Variable & Semi Variable Exp.

Raw Material Consumed 88.80 102.96 118.08 134.16 151.20

Electricity Exp/Coal Consumption at 85% 3.88 4.46 5.13 5.89 6.78

Wages & Salary at 60% 5.26 5.78 6.36 7.00 7.70

Selling & adminstrative Expenses 80% 1.82 2.51 3.85 4.55 5.40

Interest on working Capital 0.825 0.825 0.825 0.825 0.825

Repair & maintenance 3.42 4.87 5.62 6.42 7.27

Total Variable & Semi Variable Exp 104.00 121.41 139.87 158.84 179.16

Contribution 15.23 18.70 21.59 25.44 29.38

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 0.68 0.79 0.90 1.04 1.20

Wages & Salary at 40% 3.50 3.85 4.24 4.66 5.13

Interest on Term Loan 1.25 1.10 0.79 0.48 0.17

Depreciation 2.48 2.11 1.80 1.54 1.31

Selling & adminstrative Expenses 20% 0.46 0.63 0.96 1.14 1.35

Rent 4.20 4.62 5.08 5.59 6.15

Total Fixed Expenses 12.57 13.10 13.78 14.45 15.31

Capacity Utilization 50% 55% 60% 65% 70%

OPERATING PROFIT 2.65 5.60 7.80 10.99 14.08

BREAK EVEN POINT 41% 39% 38% 37% 36%

BREAK EVEN SALES 98.45 98.17 103.09 104.67 108.63

6. LICENSE & APPROVALS

 Obtain the GST registration.

 Additionally, obtain the Udyog Aadhar registration Number.
 Fire/pollution license as required.
 FSSAI License.
 Factory License
 Choice of a Brand Name of the product and secure the name with
Trademark if required.

Implementation Schedule

S.N. Activity Time Required

(in Months)

1 Acquisition Of premises 1-2

2 Procurement & installation of Plant & Machinery 1-2

3 Arrangement of Finance 1-2

4 Requirement of required Manpower 1

Total time Required (some activities shall run 5-6 Months

concurrently)
7. ASSUMPTIONS

1. Production Capacity of soya chunk is 1600 Kgs per day. First year, Capacity
has been taken @ 50%.

2. Working shift of 8 hours per day has been considered.

3. Raw Material stock is for 15 days and Finished goods Closing Stock has

been taken for 15 days.

4. Credit period to Sundry Debtors has been given for 10 days.

5. Credit period by the Sundry Creditors has been provided for 10 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 38-40 KW.

10. Selling Prices & Raw material costing has been increased by 5% & 5%
respectively in the subsequent years.
 Limitations of the Model DPR and Guidelines for Entrepreneurs

Limitations of the Model DPR

i. This model DPR has provided only the basic standard components and methodology to be
adopted by an entrepreneur while submitting a proposal under the Formalization of Micro Food
Processing Enterprises Scheme of MoFPI.

ii. This is a model DPR made to provide general methodological structure not for specific
entrepreneur/crops/location. Therefore, information on the entrepreneur, forms and structure
(proprietorship/partnership/cooperative/ FPC/joint stock company) of his business, details of
proposed DPR, project location, raw material base/contract sourcing, entrepreneurs own SWOT
analysis, detailed market research, rationale of the project for specific location, community
advantage/benefit from the project, employment generation and many more detailed aspects not
included.

iii. The present DPR is based on certain assumptions on cost, prices, interest, capacity utilization,
output recovery rate and so on. However, these assumptions in reality may vary across places,
markets and situations; thus the resultant calculations will also change accordingly.