PROJECT PROFILE - FLOUR MILL UNIT

INTRODUCTION
Wheat flour (Atta) is one of the basic food ingredients for preparation of chapatti. In Northern India the people prefer chapatti / parata as breakfast and staple food. Wheat is grinded in traditional flour mill operated manually / mechanically to product wheat flour. Flour Mills are among the most traditional units. Taking into consideration the local needs and market requirement, flour mills can be established at different levels - domestic flour mills, commercial flour mills, bakery/mini flour mills and roller flour mill. The most useful out of these flour mills is the flour mill on commercial levels because not only can these be established at a lower cost but is versatile as well - since flour can be obtained from it for commercial purposes and it can also take up job work. How good of a food is wheat, anyway? Wheat for man what makes this a great food? Looking at a nutritional analysis, wheat has much of what we need to keep healthy, especially if its been sprouted. Wheat sprouts containing 2900 calories produce 100% of the 50 essential nutrients except for the following, which contain a RDA/DRV of only Fat, 19% Vitamin B12, 0% Salt, 10% Potassium, 70% Vitamin A, 0% Calcium, 50% Ascorbic Acid, 63 % Linolenic Acid (18:3/n3), 19%

MARKET

There is good demand of wheat flour in rural as well as urban area. The small entrepreneurs can set up small Atta chakki in rural and can provide services for grinding wheat in the form of wheat flour on service basis. The entrepreneurs having little financial capacities can stock wheat and after grinding and packaging they can sell wheat flour at lucrative price. There is scope for establishing flour mills in all important centers in the tribal, rural & urban areas.

MANUFACTURING PROCESS

There are two types of Atta chakki available in the market. One is horizontal and other is vertical type. The wheat is cleaned and sieved to remove dust and foreign particles then it is feeded in Atta chakki through feed hopper and requisite pressure is maintained between two stones to grind the wheat in the form of Atta of required mesh size. Obtaining flour from flour mill is a process that is traditional as well an old one. Usually the consumers bring with them wheat or maize after grinding, the owner charges at a definite rate either in terms of money or a part of grinded wheat (the rate is usually decided on per kg basis). Most of flour mills are involved in such practices only.

RAW MATERIAL (WHEAT) AVALIABILTY

Wheat is one of the most important staple food grains in India. The country produces about 70 million tones of wheat per year or about 12 per cent of world production. It is now the second largest producer of wheat in the world. Being the second largest in population, it is also the second largest in wheat consumption after China, with a huge and growing wheat demand. More than 95 percent of the wheat producing area in India is situated to the north of a line drawn between Mumbai and Kolkata and small amounts are also produced in Mysore and Chennai. The major wheat producing states in India are placed in the Northern hemisphere of the country with UP, Punjab and Haryana contributing to nearly 80% of the total wheat production.

PRODUCTION CAPACITY PER ANNUM CAPACITY: 300000 Kilograms JOBWORK PRICE: Rs 4/ kg PROFIT RATE: 4 6/Kg PROJECT COST/CAPITAL INVESTMENT

S. No. 1 2 3

DESCRIPTION Preliminary & Preoperative Expanse Fixed Capital Working Capital For 1 Month Total Project Cost

AMOUNT 50,000 184600 250200 484800 %AGE 100 % AMOUN T 484800 484800

REMARK S

MEANS OF FINANCE S. DESCRIPTION No. 1 Promoter Contribution 2 Subsidy 3 Term Loan Total FINANCIAL ASPECTS A. FIXED CAPITAL a. LAND AND BUILDING: RENTED b. MACHINERY AND EQUIPMENT S. DESCRIPTION No. 1 Atta Grinder 1 HP, 20 kg/Hr 2 Wheat Cleaner 3 Shana For Wheat 4 Shana For Atta 5 Blower 6 5 Hp Motor 7 2 Hp Motor 8 V Belt 9 V Belt Total B. WORKING CAPITAL a. SALARIES AND WAGES PER S. DESCRIPTION No. 1 Head Supervision, Security Foreman 2 Unskilled Worker Total S. No. 1 2 3

REMARK S

/ RS 10,000/ MONTH QUANTI TY 4 1 1 1 1 1 2 8 4 RATE/ PC 21600 14500 8500 9500 20500 17200 9000 450 1600 TOTAL AMOUNT 86400 14500 8500 9500 20500 17200 18000 3600 6400 184600 REMARK S

MONTH NO SALARY/MON S. TH 10000 1 1 6000

AMOUNT 10000 6000 16000

REMARKS

b. RAW MATERIAL PER MONTH Description Uni Quantity/Month t 125 Quintal Wheat Kg Packing 1250 Pcs For 10kg Material Pc Packing Other Total

Rate 1600/Quint al 5/Pc

Amounts In Rs 200000 6250 3000 211250

Remar ks

S. No. 1 2 3

c. UTILITIES PER MONTH Descriptio Unit Total KW/ Month n Kilowa 500/80 = 6.25 7x4 = Power tt 28x25=700 Water Liter Other KW

Rate/K W 6/unit

Amounts 4200 1000 3000

Remarks

Total S. No. 1 2 3 4 5 6 7 d. OTHER EXPENSES PER MONTH DESCRIPTION Postage & Stationery Expenses Transportation Expenses Advertisement Expenses Consumable Stores Telephone Petrol Miscellaneous Expenses Total e. TOTAL WORKING CAPITAL PER MONTH DESCRIPTION AMOUNT Rent Salaries And Wages Raw Material Utilities Other Expenses Total AMOUNT

8200 REMARK S 500 2000 2000 2000 2000 3000 11,500 REMARK S 10000 16000 211000 8200 5000 250200

S. No. 1 2 3 4 5

39200

S. No. 1 2 4

1. COST OF PRODUCTION PER ANNUM DESCRIPTION

Total Working Capital Depreciation @ 15 % Interest @ 16 % Total 2. TURNOVER PER YEAR DESCRIPTION Flour Mill Unit Total

AMOUN T 470400 27690 498090

REMARK S

S. No. 1

UNIT KG

QUANTIT Y 150000 150000

RATE 4 4

AMOUNT 600000 600000 REMARK S

S. No. 1 3 4 5

3. FIXED COST PER YEAR DESCRIPTION AMOUNT Depreciation Rent Salaries And Wages @ 40 % Other Expenses including Utilities @ 40 % Total 4. PROFIT ANALYSIS & RATIO DESCRIPTION AMOUNT Net Profit Percentage Of Profit On Sale Return Investment Breakeven Analysis

27690 120,000 76800 63360 287850 REMARK S 101910 16.98 % 55.20 % 62.22

S. No. 1 2 3 4

Net Profit/ Year Sales - Cost of production 600000 498090 = 101910

Net Profit Ratio Net Profit x 100/Sale 101910 x 100 / 600000 = 16.98 % Rat e o f Retur n on Investment Net Profit x 100/Capital Investment 101910 x 100 /184600 = 55.20 % Annua l Fixe d Cost All depreciation Interest 40 % of salary, wages, utility, contingency Insurance Total

27690 Nil 76800 + 63360 = 140160 Nil 167850

Break Even Point Annual Fixed Cost x 100 / Annual Fixed Cost + Profit 167850 x 100 / 167850 + 101910 16785000 / 269760 = 62.22 %