NORTH EASTERN REGI ONAL I NSTI TUTE OF MANAGEMENT

PROJECT REPORT ON A ENTREPRENEURSHIP

DEVELOPMENT
TOPIC:

GOGOI MINI MODERN RICE MILL



SUBMITTED TO: SUBMITTED BY
Mr. M. I. Singh Mr Naba Gogoi
Faculty of Business Adm. Dept. MBA 2
nd
sem(B)
NERIM Roll No-111
NERIM


CONTENT

1. ACKNOWLEDGEMENT

2. HIGHLIGHTS OF THE PROJECT

3. I NTRODUCTI ON
4. MARKETABI LI TY
5. TECHNI CAL FEASI BI LI TY
6. PRODUCTI ON TARGET
7. PLANT CAPACI TY
8. BASI S AND PRESUMPTI ON
9. FI NANCI AL ASPECTS
10. CONCLUSI ON









ACKNOWLEDGEMENT

No project can be completed by individual effort only. It
always takes lots of peoples contribution too. The contributions
of some are direct and evident and of others are indirect and
obscured. I expressed my sincere gratitude towards all those who
have directly or indirectly helped me throughout this project.
At first, I would like to express my sincere thanks and
gratefulness to our faculty Mr.Samannay Baruah from business
administration department, NERIM for giving me the
opportunity to evince my dream.
I would like to offer my gratitude to the Libarian of the Indian
I nstitute of Entrepreneurship, Guwahati; who provides me a valuable
guidance.
I am pleased to offer my sincere thanks to my seniors, which also
stand as a pillar of inspiration to me as well.


Naba Gogoi
MBA 2
nd
Sem




PREFACE

Project is the indispensable part of any kind of formal education; they help us in
practical learning for MBA. We are basically trained and equipped with strong
theoretical knowledge of how business operates and what is the time tested
methods of running a successful business.
The entrepreneur project has given us the opportunity to practical applicability of
management concepts and theory and developing better ability to analyze the
problems and decision that contribute significantly for better use of resources
available to the management.
This project offers the glimpse of the various stages of the project work in order to
serve the purpose of the study in a systematic manner, hope that the project will go
way in establishing and running my own business.







1.1 HIGHLIGHTS OF THE PROJECT
Name of the unit : Gogoi Rice Mill

.Constitution : Proprietorship
Name of entrepreneur : Naba Gogoi
Proposed Location : Dhenukhana ,P.O-Ghilamara
Dist-Lakhimpur(Assam)

Telephone No :
(O) +91-9706243452
(R) +91-9577055793

Name/address of the promoter:
Name: Naba Gogoi
Address: AT & P.O. - Dhenukhana
Dist- North Lakhimpur
State: Assam, 787053

Qualification of the entrepreneur:
Academic Qualification : B.COM , MBA (Finance &
Marketing)
Name and address of promoters Bank: STATE BANK OF INDIA
North Lakhimpur Branch




Total Capital Cost :

S.NO PARTICULARS AMOUNT(Rs)
1. Land & building 3,00,000.00
2. Plant & Machinery 4,00,000.00
3. Tools & Equipment 28,000.00
4. Furniture& Fixer 12,000.00
5. Preliminary & Pro-Operative Exp. 15,000.00
6. Working Capital 5,49,500.00

1.2 Means of Finance :
I. Promoters Contribution @ 20% =2,60,900

II. Loan from Bank @ 80% =10,43,600
1.3 Loan Repayment period : 5 (Five) Years

1.4 Important Financial Findings :
Rate of return : 26.44%
BEP : 15.19%



1.5 Introduction of the Product


Rice is one of major crops of our country and constitutes the staple diet of a large
population. India is the second largest producer of rice with annual production of
more than 90 million tonnes. Good quality and varieties of rice are grown in
different parts of our countrys demand for rice but has earned a special place for
itself in international markets.
Rice mill is used for obtaining rice from rice bran. Presently, different mills of
varying capacities are set up in many parts of one country the parts where rice is
principally grown. On once hand rice bran can be bought by such mills and can be
marketed after obtaining rice farm it, on the other hand the producers of rice be
marketed after obtaining rice farm it, on the other hand the producers of rice
themselves can hire service, of these rice mills. Along with the big rice mills, small
rice mills have also been proved lucrative especially when production and job
work, both are taken up, this unit can not only prove to be successful but quiet a
profitable means of self employment.
Milling of Rice are two types:
Step one-Removal of hard protective husk.The rice husk is the protective layer
surrounding the grain one removed,the rice grains is pachaged as brown rice .
Brown rice is healthy because it still contains the rice germ and outer bran layer

Important for healthy body functions.
Step two-Removal of the germ and brown layers.gentle milling removes the germ
and brown layers.Gentle milling removes the germ and bran layers from the grain
to expose a white starch centre .The polished white starch centre is what we know
as white rice.
1.6 Marketability: A small description of the market which I will us is mentioned
below.
Monthly my production will be 400 quintals of rice bran per month and market out
of which 300 quintals of good quality rice would be obtained. I have planned to
supply the good quality of rice bran in rural area .Not only rural area but also it
supply in whole sale price . I have already talked to the retailer of those rural area
and urban area and got a positive response from them. They told me that they
would collect the rice bran from my factory. The price will be determined as per
market condition and quality of the rice.
This is the primary market which I will use for business. In future when I will
expand my business market structure will be totally different.
Hereby I have mentioned the total marketability and market structure of the
business.
1.7 Technical Feasibility:
Manufacturing Process: The process of obtaining rice from rice bran is quite easy
and self obtaining. Rice mill is used for obtaining rice from rice bran. The major
portion of the paddy is milled through hullers. In the hullers,both shelling and
polishing operations are carried out simultaneously. Hence there is no contol on
the polishing of rice, bran, admixed with husk is obtained with higher breakage of
rice gain. To overcome these, a mini rice mill is available to meet the needs of the
villages and a substitute for a huller mill, to get polished rice, rice bran and paddy
husk. The rice bran bought from the markets or brought by the producers is put
into the machine and after being processed in sheller and polisher come out the
machine, which can either be sent for market or directly given to the customers.

Byproducts from the growing and processing of rice create many valuable new
products. Rice husks, rice stubble, rice bran, broken rice and ricestraw are used as
common in gredients inhorticultural ,livestock industrial, household, building and
food products
Rice husks
The rice husk is the hard, protective shell on the grain.The removal of therice
huskis the first stage of rice milling. Rice husks are the main by product of rice
production. For every one million tones of paddy rice harvested, about 200
000 tonnes of rice husk is produced.
1.8PRODUCTION TARGETS:
Work can be done in two ways under this unit both the production work and
taking working contracts from producers. Unit would 400 quintals of rice bran per
month from the market out of which 300 quintals of good quality rice would be
obtained.
1.9PLANT CAPACITY:
In assessing the proposed plant capacity, due consideration has given to technology
and financial factors, marketing consideration, availability of raw materials
utilization, infrastructure facilities, and economic viability.
The detailed requirement of the plant and machineries to achieve the plant capacity
is assessed by the unit technicians. While arriving at the requirement
of various type of equipment and machinery required for the unit, due
consideration had been given to the following points.
1. Minimum Wastage.
2. High Productivity.
3. Maximum Flexibility
4. Adequate stock by provision wherever necessary.



1.10 INFORMATION ABOUT THE PROMOTER:
The promoter of the project is Mr Naba Gogoi. Mr Naba Gogoi is aged 22 years
old an MBA candidate. The promoter is a local resident of Dhenukhana ( Assam).
Mr Gogoi is highly encouraged by the market potential of such unit at North
Lakhimpur. With a view to provide quality service in a reasonable price the
promoter has proposed to set up the unit. The promoter has already obtained
requisite no objection certificate from the authorities.
2.1 PROPOSD LOCATION:
The proposed site for the unit is at Dhenukhana PO:-Dhenukhana P/S:- Ghilamara
Dist:-Lakhimpur( Assam). The location may be considered as feasible location due
to good infrastructural facilities available as govt provided all facilities:
. The location is suitable for availability of skilled labour.
. The location is adjacent to motor road which is an
advantageous
facility for the unit
The site is accessible to telephone &other communication
facilities.
. Technological factors.
. Socio - economic consideration.

2.2 BASIS & PRESUMPTION:
The unit remain open for 8 hours a day for 300 working days in a calendar year.
The price of raw materials and equipments is as per present market price.
Non-refundable deposits. feasibility study fees, trial production. establishment
expenses are considered under pre-operative expenses.
Rate of Interest is calculated at 12% per annum.
Written Down Value Method has calculated depreciation at the rate of 10% of the
fixed capital annually.

2.3About my rice mill:
Understanding the benefit, importance of Rice Mill in Assam and realizing my
capacity and potentiality I have decided to open a Rice Mill. I would open a Rice
Mill of 5 bigha. For this my father will give me a land area of 5 bigha. After
completing MBA I would start my work of opening the Rice Mill. But now only I
will final the planned.
2.4 FINANCIAL ASPECT OF THE PROJECT
FIXED CAPITAL:
a) Land & Building:- For the proposed unit, around 800 sq. ft. of working place
would be required. The promoters has own land. The cost of construction for
the building is around Rs.3,00000.00.

b) MACHINERIES:

SL No. Description Quan-
tity
Rate Amount (Rs)
1. Paddy Separator 1 1,00,000.00 1,00,000.00
2. Electronic Motor 30 Hp 1 70,000.00 70,000.00
3. D.Hasker with complete pulley 1 40,000.00 40,000.00
4. Cyclone fan 1 30,000.00 30,000.00
5. Motor Starter 1 20,000.00 20,000.00
6.
Paddy clear fan 1 20,000.00 20,000.00

7. Rice polisher 1 30,000.00 30,000.00
8. Elebeter 6 10,000.00 60,000.00
9. Block Searing & Delta &
Accessories Etc.
L.S 20,000.00
10. IPC Line Shaft two inces x
20 fit
L.S 5,000.00
11. Main Swits 63A L.S 5,000.00
Total 4,00,000.00


c)Furniture &Fixture:

SL No Description Nos Rate Amount(Rs)
1.
Almirah
1 8,000.00 8,000.00
2.
Table & Chairs
- 4,000.00

Total
12,000.00

d)Tools &Equipments
SL No. Description
Nos
Rate Amount(Rs)
1. Conveying System Like
Elevator
2 5,500.00 11,000.00
2.
Moisture Analysis Facility
1 5,000.00 5,000.00
3. Weight balance more 200 Kg
Capacity
1 12,000.00 12,000.00
Total 22,500.00 28,000.00



e ) Preliminary & Pre operative Expenses :

SL No. Description Amount
(Rs)
1.
Project Report Preparation
1500.00
2.
Travelling & Conveyance
6,000.00
3.
Legal Expenses
4,000.00
4.
General Insurance
2,000.00
5.
Market survey
1,500.00

Total
15,000.00

2.5 WORKING CAPITAL ESTIMATES:
a) Raw Materials
SL
No.
Description Quantity Rate Amount (Rs)
P.M A.M
1. Rice Bran 500.00 1000.00 5,00,000.00 60,00,000.00


b) Manpower
SL
No.
Personnel Nos. Rate Amount (Rs)
P.M A.M
1.
Manager
1 10,000.00 10,000.00 1,20,000.00
2.
Skilled Worker
4 5,000.00 20,000.00 2,40,000.00
3.
Chowkidar
1 2,000.00 2,000.00 24,000.00

Total
32,000.00 3,84,,000.00



c) Administrative Expenses:
SL No. Description Amount (Rs)
P.M A.M
1.
Electricity
5,000.00 60,000.00
2.
Transportation
7,000.00 84,000.00
3.
Insurance
1,000.00 12,000.00
4.
Maintenance &Repair
2,000.00 24,000.00
5.
Telephone & Postage
1,500.00 18000.00
6.
Stationary
1,000.00 12,000.00

Total
17,500 2,10,000.00

WORKING CAPITAL REQUIRED:
SL No. Description Stock
Period
Amount (Rs)
P.M A.M
1. Raw Material 1month 5,00,000.00 60,00,000.00
2. Manpower 1month 32,000.00 3,84,000.00
3. Administrative Expenses 15 days 17,500.00 2,10,000.00
Total 5,49,500.00 65,94,000.00

TOTAL PROJECT COST
SL No. Particular Amount (Rs)
1. Land & Building 3,00,000.00
2.
Plant & Machinery
4,00,000.00
3. Furniture & Fixture 12,000.00
4. Tools & Equipment 28,000.00
4. Preliminary & Pro-Operative Exp 15,000.00
5. Working Capital 5,49,500.00
Total 13,04,500.00


Means Of Finance:

i) Promoters contribution @ 20% =2,60,900.00
ii) Loan from Bank @ 80% =10,43,600.00
Total = 13,04,500.00


2.6SALES REALIZATION: The total income from the unit would be as
shown below:

SL
No.
Description Quantity Rate Amount (Rs)

P.M A.M
1. Rice 300 1700 5,10,000.00 61,20,000.00
2. Public Milling 200 100 20,000.00 2,40,000.00
T0tal 6,30,000.00 63,60,000.00

There for total profit per month----------
(Total rice & public milling sell price Total expense per month other expense
per month)
(6,30,000.00-5,49,500.00)=80,500.00
There for total profit per year---------
(80,500.00 x 12) =9,66,000.00






Depreciation schedule:
Total Cost on Land & Building =3,00,000
5% Depreciation on Land &Building =3,00,000 x 5/100
=15,000
Total Cost on Machinery & Equipment =4,28,000
10% Depreciation on Machinery &Equipment =4,28,000 x10/100
=42,800
Total Cost on Furniture &Fixture =12,000
10% Depreciation on Furniture &Fixture =12,000x10/100
=1,200

BREAK-EVEN POINT :
Fixed cost in 1
st
year
1) Interest (13.25%) on total capital investment = Rs.10,43,600X
13.25/100

= Rs.1,38,277


2) Depreciation on building @ 5% on13,04,500 = Rs.65,225
Depreciation on equipments @ 10% on 4,28,000 = Rs. 42,800

3) 20% of salaries (in year) = Rs. 76,800


4) 20% of electricity = Rs.12,000
5) Insurance = Rs12,000

TOTAL = Rs. 3,47,102



Fixed cost x 100
BEP = -----------------------------------------
Fixed cost + Profit per year

34710200
=-------------------------------------------
347102+ 966000
34710200
=-------------------------------------------
1313102
= 26.44%




RETURN ON INVESTMENT:-
Net Profit x 100
A) Return of Investment -------------------------
Total investment

966000 x 100
----------------------------
6360000

= 15.19%


Net profit x 100
B) Return on Sales = ------------------------------------
Total Sales
966000 x 100
= ------------------------------------
6360000

= 15.19%






-: CONCLUSION:-
I have a dream to be a independent man. So I want to be a good
entrepreneur. To become a successful entrepreneur and to become a self
independent I select a Rice Mill. I found lots of opportunity has in this line and
a good profitable business. As well as I have own resources at home so that I
can able to utilize these resources in profitable manner.
Initially I implement this project for a little product for a small area, if I able to
run my business with my expectation than I will add as many as product in the
product line. I have a confidence to be a successful entrepreneur in this line.

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