FORMAT OF PROJECT REPORT FOR IIEBM PGDM-SEM III

A) GENERAL INFORMATION

i)Name of an Entrepreneur: SANDEEP DWIVEDI

ii)Address:-

Place Pin Taluk Division District State

Code

23, Industrial Area, Richhai,jabalpur (m.p.) , 482010 Jabalpur Jabalpur Jabalpur MADHYA
Jabalpur, Mp PRADESH

-----------------------------------------------------------------------------------------------------------------

iii)Address for correspondence:----- HNO 1859 JOGAI NAGAR RAMPUR JABALPUR (MP) PIN
CODE:482008

iv) Tel.No-------------------------- Mobile No.-9993404057--Email ID- sandeepd16-18@iiebm.com

v) Name of enterprise:- SANJALI FOOD

vi) Location:---JABALPUR (MP)

vii) Rented/own (Please tick)-----RENTED

Education:

Sr.No. Education Institute Year of Passing % Marks

1 10th Army Public School 2011 61%
2 12th Maharishi Vidya Mandir 2013 64%
3 Bcom St Aloysius College 2016 65%
4 PGDM IIEBM, Indus Business School Pursuing 65%(agreegate)

Experience:

Sr.No. Name of Organization Period (From-To) Position Functional

experience
Special Training: ( Including entrepreneurship and project related as well as ICT)

Sr.No. Name of course Duration (From- Institute Achievement

To)

B) MARKET STUDY-

i) Geographical Coverage: MP/Mahakoshal Region/Jabalpur

ii) Brief Marketing strategy: As manufacturing of this item has been reserved for
development in small-scale sector and mini rice mill and dal mill can be manufactured with
latest technique. Due to liberal licensing rule and less in mini rice and dal mill numbers
of prospective entrepreneurs are coming up in this line.
iii) Estimated Demand:

a) Physical and Quantitative:

Purchased sector Rice output

Value (yen) Percentage share
Output of rough rice
Milling 3 232 103 93.21
Rice wine 195 609 5.64
Rough rice 28 612 0.83
Agricultural services 6 690 0.19
Livestock 3 869 0.11
Other foodstuffs 727 0.02
Total 3 467 610
b) Financial:

iv) Estimated Supply:

a) Physical and Quantitative:

Ouput of milled rice

Household consumption 2 604 991 74.38
Restaurants and hotels 553 485 15.80
School and hospital lunches 113 625 3.39
Rice powder and snacks 94 771 2.71
Alchoholic beverages 67 076 1.92
Prepared instant food 63 038 1.80
Other (non-food) uses 499 0.01
Total 3 502 485
b) Financial:

v) Gap between demand and supply:

 a) Physical and Quantitative:

b)Financial:

vi) In case of negative gap and over saturation of the market proposed entrepreneurial strategy in
relation to the marketing of product/service:

vii) Level of competition: MEDIUM

viii) Names of major competitors: LOCAL MANUFACTURER

xi) Distribution channel: FARMER - MILL WHOLESELLER - RETAILER

ix) Basis and exercises conducted for all above market study and observations:

a) Marketing research & survey

b) Digital/on-line survey

x) Please attach market study report including the details of sources of information and questionnaires
designed and administered to various stake holders.

C) TECHNICAL FEASIBILITY:

S. Description Ind/ Qty. Value

No.
1. Guillotine shearing machine 1250 mm x 4 mm Imp
Ind Nos.
1 (Rs.)
3,00,000/-
shearing cap complete with 7 HP motor and
Electrical
2. Hand lever shearing machine 3 x 245 mm cap Ind 1 20,000/-
3. Electric arc welding set 300 amp cap. 3 phase Ind 2 60,000/-
air cooled 8 KVA raling
4. Radial drill cap Ind 1 1,00,000/-
5. Shaping m/c 24 stroke with 3 HP electric Ind 1 2,20,000/-
motor
6. Center lathe Heavy duty 3600 mm bed with 9 Ind 1 1,60,000/-

7. HP motor
Center lathe heavy duty 2400 mm bed with 2 Ind 1 1,40,000/-

8. HP
Gasmotor
welding set Ind 2 20,000/-
9. Bench grinder 8 wheel dia Ind 1 6,000/-
10. Installation and electrification @ 10% 1,02,600/-
11. Pre-operative expenses 50,000/-
Total 11,78,600/-
b Testing Equipment & Tools

i. Hand tools 60,000

ii. Measuring instruments 40,000
Total 1,00,000/-
C. Office Furniture 50,000
 Total 13,28,600/-

i) Name/s of products to be manufactured or proposed services = RICE

ii) Technical Specifications: ( As per BIS)

iii) Production Capacity:

a) Installed Capacity: a) Rice Mill Plant 1 ton/ hour capacity - 60 Nos

b) Dal Mill Plant 2 ton/hour capacity - 24 Nos.
b) Utilized Capacity: 20 KVA
c) Licensed Capacity:

iv) Annual Production

a) Number of units per shift =

By Sale of 60 plant of Rice Mill 1,60,000/Plant 96,00,000/-

hour
b) Total shifts per day = 3
c) Number of units per day= (2666.66x 3)
d) Per unit sales price= 2666.66
e) Number of days in month= 25
f) Total turnover per month=

1. By Sale of 60 plant of Rice Mill 1,60,00/Plant 96,00,00/-

1 MT Cap/hour
2. By Sale of 24 plant of Dal Mill 3,00,00/Plant 72,00,00/-
Total: 1,68,00,00/-
g) Projected monthly turnover=

Turn Over (-) Cost of Production

1,68,00,000/- (-) 1,34,44,600/- = 33,55,400/-

v) Projected Annual turnover: (3355400*12 = 40264800)

vi) Details of plant and machinery/equipment

Sr.No. Name of Brand Name of Technical Price as per Remarks

machine/equipment manufacturer specifications quotation in
INR
S. Description SANJALI Value
No. FOOD (Rs.)
1. Guillotine 3,00,000/-
shearing
machine 1250
mm x 4 mm
shearing cap
complete with
7 HP motor
and
 Electrical
2. Hand lever 20,000/-
shearing machine
3 x 245 mm cap
3. Electric arc 60,000/-
welding set 300
amp cap. 3
phase air cooled
8 KVA raling
4. Radial drill cap 1,00,000/-
5. Shaping m/c 24 2,20,000/-
stroke with 3
HP electric
motor
6. Center lathe 1,60,000/-
Heavy duty 3600
mm bed with 9
HP motor
7. Center lathe 1,40,000/-
heavy duty 2400
mm bed with 2
HP motor
8. Gas welding set 20,000/-
9. Bench grinder 8 6,000/-
wheel dia
10. Installation and 1,02,600/-
electrification @
10%
11. Pre-operative 50,000/-
expenses
11,78,600/-
b Testing
Equipment &
Tools
i. Hand tools 60,000
ii. Measuring 40,000
instruments
1,00,000/-
C. Office Furniture 50,000
13,28,600/-

vii) Raw materials:

Sr.No Raw Material Supplie Unit cost Monthly Monthly cost Annua Remarks
. r requiremen l cost for
t specificatio
n and costs

1 MS angle, Rs. 10 3,20,000/

channel bar in 32000/M -
various sizes T
2. BR sheet from Rs. 2,40,000/
 16 & 20 40000/M -
SWG T
3. Welding 10 40,000
electrodes /-
4. Oxygen & 30,000
acetylene /-
gases
5. CI casting ( to Rs. 3,12,000/
be 26000/M -
purchase T
d from
outside
foundry)
Total 9,42,000/
-

viii) Utilities:

a) Power: energy requirement of various parboiling methods. The energy requirement of RPEC
method was 9.54105 J/kg of paddy, CFTRI method 16.4105 J/kg of paddy and pressure parboiling
3.75105 J/kg of paddy, respectively. Not withstanding certain limitations, it had been concluded
that RPEC method of paddy parboiling was the most economic process though the CFTRI method
was used commercially.

i) Approved load :

If monthly units consumption is between 101 and 300, fixed charges are Rs 75 for each 0.5

Madhya kW of connected load. If monthly units consumption is between 301 and 500, fixed charges
Pradesh are Rs 80 for each 0.5 kW of connected load. If monthly units consumption is above 500,
fixed charges are Rs 85 for each 0.5 kW of connected load.

ii) Connected load : extension of connected load from 107 HP to 201 HP (187kVA) on L.T.3 phase 4
wire system industrial connection to Rice mills in Jabalpur District

iii)Plant load factor : 1.119 kW/t to 1.492 kW/t of husked rice

iv) Total power consumption in HP per day = 5 ton per Day

v) Total power consumption in KW per day= ( 5 x 24 Hr= 120 Ton Unit)

vi) Total power consumption per month = 3600 Ton UNIT

vii) Projected electricity bill per month= 800000/- per month

viii) Annual electricity expenses = 9600000/- per annum

c) Water:

i)Water requirement for manufacturing purpose per day: 50 to 150 ton perday
ii) Water requirement for non- manufacturing purpose per day : NIL

iii) Total requirement in KL ( 1 KL=1000 Liters ) per month= 30 to 35 KL

iv) Name of utility provider and rate per KL = 2000/-

v) Projected water bill per month= (2000/- x 12=24000) Execluding Taxs

d) Coal /diesel/steam etc.= NIL

i) Monthly expenses = NIL

ii) Annual expenses = NIL

d) Manufacturing Process:

PROCESS DEFINITION

1. PRE CLEANING : REMOVING ALL IMPURITIES AND UNFILLED GRAINS

FROM PADDY

2. DE-STONING : SEPARATING SMALL STONES FROM PADDY

3. PARBOILING (OPTIONAL) : HELPS IN IMPROVING THE NUTRITIONAL

QUALITY BY GELATINIZATION OF STARCH INSIDE THE RICE GRAIN. IT
IMPROVES THE MILLING RECOVERY PERCENT DURING DESHELLING AND
POLISHING / WHITENING OPERATION 4. HUSKING : REMOVING HUSK
FROM PADDY
5. HUSK ASPIRATION : SEPARATING THE HUSK FROM BROWN RICE/
UNHUSKED PADDY
6. PADDY SEPARATION : SEPARATING THE UNHUSKED PADDY FROM
BROWN RICE
7. WHITENING : REMOVING ALL OR PART OF THE BRAN LAYER AND
GERM FROM BROWN RICE
8. POLISHING : IMPROVING THE APPEARANCE OF MILLED RICE BY
REMOVING THE REMAINING BRAN PARTICLES AND BY POLISHING THE
EXTERIOR OF THE MILLED KERNEL
9. LENGTH GRADING : SEPARATING SMALL AND LARGE BROKENS FROM
HEAD RICE
10. BLENDING : MIXING HEAD RICE WITH PREDETERMINED AMOUNT OF
BROKENS, AS REQUIRED BY THE CUSTOMER
11. WEIGHING AND BAGGING : PREPARING THE MILLED RICE FOR
TRANSPORT TO THE CUSTOMER

The flow diagram of the various unit operations are as follows:

 g)Repairs and Maintenance expenses per annum :

1 Repair & maintenance 4,000

This needs to be mentioned as % of cost of plant and machinery ( Usually 2-3% per annum)

h) Consumables (Expenses on cotton waste, grease, oils per month converted into annum basis)

i) Requirement of manpower and proposed expenses

Sr.No. Nature Number Salary Total monthly Annual Remarks

/Month salary salary

1. Manager 1 10000 10,000/- 120000/-

2. Supervisor 1 6000 6,000/- 72000/-
3. Skilled worker 3 3400 10,200/- 122400/-
4. Semi skilled 4 3000 12,000/- 144000/-
worker
5. Helper 3 3000 9,000/- 108000/-
6. Clerk cum typist 1 4000 4,000/- 48000/-
7. Peon / 2 2400/- 4,800/- 57600/-
Chowkidar
Total 56,000/- 672000/-
 Perquisites of 8,400/- 100800/-
salary @ 15%
Total 64,400/- 772800/-

D) Economic Feasibility

Project Cost

Cost
S.No. Description

1 Land & Site Development (Rs in1.42

Crores)

2 Buildings & Civil works 2.02

3 Plant & Machinery Indigenous 1.19
4 Plant & Machinery Imported 1.60
5 Electrical Infrastructure 0.15
6 Electricity Deposits 0.06
7 Furniture & Fixtures 0.05
8 Preliminary Expenses 0.08
9 Pre-operative Expenses 0.55
10 Contingency @5% 0.24
11 Margin Money for Working capital 1.32
Total Project Cost 8.69
Means of Finance

Cost
S.No. Sources of Funds
(Rs in Crores)
1 Share Capital - Equity 4.69
2 Term Loan from Bank 4.00
Total 8.69

F. Financial Aspects of the Project:

Fixed Capital

1. Land & Building-

200 sw.mtr rented @ Rs. 40/ sq. mtr Rs. 8,000/-

Rented

Working Capital (per month):

i) Personnel

S.No Description Nos Salary Total (Rs)

1. Manager 1 10000 10,000/-

2. Supervisor 1 6000 6,000/-
3. Skilled worker 3 3400 10,200/-
4. Semi skilled worker 4 3000 12,000/-
5. Helper 3 3000 9,000/-
6. Clerk cum typist 1 4000 4,000/-
7. Peon / Chowkidar 2 2400/- 4,800/-
Total 56,000/-
Perquisites of salary @ 15% 8,400/-
Total 64,400/-

ii. Raw materials (per month):

S.No. Description Qty Rate Value (Rs)

1 MS angle, channel bar in 10 MT 10 MT 3,20,000/-

various sizes
 2. BR sheet from 16 & 20 6 MT 6 MT 2,40,000/-
SWG
3. Welding electrodes LS LS 40,000/-
4. Oxygen & acetylene gases LS LS 30,000/-
5. CI casting ( to be 12 MT 12 MT 3,12,000/-
purchased from outside
foundry) 9,42,000/-

iii. Utilities (Per month):

Designation Amount (Rs.)

Electricity 15 KWH 9,000/-
Water 1,000/-
Total: 10,000/-
iv. Other contingent expenses (per month):

i. Rent 8,000
ii. Postage and stationery 2,000
iii. Telephone 2,000
iv. Repair & maintenance 4,000
v. Transport charges 4,000
vi. Advertisement & Publicity 4,000
vii. Insurance 2,000
viii. Miscellaneous expenditure 4,000
Total: 30,000

V. Total Recurring Expenditure (Per/month:

i. Personnel 64,400/-
ii. Raw material 9,42,000/-
iii. Utilities 10,000/-
iv. Other contingent expenses 30,000/-
Total: 10,46,400/-

v. Total Working Capital for 3 months:

= Rs.10, 46,400 X 3 = Rs. 31, 38,000/- Total Capital

Investment:

(i) Fixed Capital Rs. 13,32,600/-

(ii) Working Capital Rs. 31,38,000/-
Total: - Rs. 44,70,600/-

G. Financial Analysis:

1. Cost of production (Per year) :

S.No. Particulars Amount (Rs.)

Total recurring cost 1,25,52,000/-
Depreciation on machinery & equipment @ 10% 1,02,600/-
Depreciation on office furniture/tools etc. @20% 30,000/-
Interest on capital investment @ 13% pa. 7,60,000/-
Total: 1,34,44,600/-
2. Turnover (Per annum):

Sl. Item Rate(Rs.) Value (Rs.)

No.
1. By Sale of 60 plant of Rice Mill 1,60,000/Plant 96,00,000/-
1 MT Cap/hour
2. By Sale of 24 plant of Dal Mill 3,00,000/Plant 72,00,000/-
Total: 1,68,00,000/-

3. Net Profit (per annum):

Turn Over (-) Cost of Production

1,68,00,000/- (-) 1,34,44,600/- = 33,55,400/-

4. Net Profit Return:

Profit/annum X 100 33,55,400/- X 100

Sale /Annum 1,68,00,000/- = 19.9%

5. Rate of Return on total capital investment:

Profit/annum X 100 33,55,400/- X 100

Total Capital Investment 44,70,60+++0/- = 75%

6. Break Even Point:

i) Fixed Cost
1 Rent 96,000/-
 2 Total depreciation 1,30,600/-
3 Interest on total capital investment 7,60,000/-
4 40% of salary & wages 3,09,120/-
5 40% of others contingent expenses 1,05,600/-
Total: 14,01,320/-

ii) Net Profit:

BEP% :
Fixed Cost X 100 14,01,320/- X 100

Fixed Cost + Profit 14,01,320/- + 33,55,400/- = 29.4%

a) Requirement of working capital:

Sr.No. Component Per month Amount in INR Remarks

estimation
1. Raw materials 10 MT 3,20,000/- Average stock
based on lead
time ( Order
Placing and actual
procurement)
2. Salaries of Manpower 6 MT 2,40,000/- Monthly
requirement
inclusive of
welfare expenses
@20% of salary
3. Bills of utilities LS 40,000/- Monthly bills of
electricity, water,
fuels etc.
4. Work in progress LS 30,000/- To be estimated
as per standard
norms
5. Inventory of finished goods 12 MT 3,12,000/- To be estimated
on average order
from customers
9,42,000/-

b)Land

Sr.No. Option Location Area in Sq. Industrial Cost in INR Remarks

Mtrs. Zone
1. IDC/Ind. Coop. JABALPUR 2.50 acers RICHAI Rs. 5.00
Society/Pvt. land Lakh
2. Developmental
costs
 i)Levelling
ii)Fencing
iii)Gate
Total

c)Building:

Sr.No. Requirement Rate per Total area in Total cost in Remarks

Sq.Mtr Sq.mtr INR
1. Manufacturing and
operations
2. Administrative office
3. Storage and godown
4. Security and quarters
Total

d)Misc. Fixed Assets :

Sr.No. Type Unit Cost Total Units Cost in INR Remarks

(crores)
1. Raw material handling 942000/-
2. Repairs and 4000/-
maintenance
3. Furniture and fixture 500000/-
Total 1444000/-

e)Preliminary and Preoperative expenses:

Sr. Nature Duration Amount in INR Remarks

No.
1. Training and consulting
2. Travelling during MR
3. Professional fees to lawyers,
CAs( Formation, registration
and reports)
4. Insurance during
implementation
5. Interest during implementation

f)Administrative overheads:

Sr.No. Account Head Expenses per Expenses per Remarks

month in INR annum in INR
1. Printing and stationery 2000/- 24000/-
2. Telephone and 2000/- 24000/-
 communications
3. Travelling of staff including 10000/- 120000/-
sales personnel
4. Interest on working capital @ 439320/- 5271840/-
14% or prevailing (Bankers to
be contacted)
5. Interest on Term loan @--- as
per Loan sanction letter (LSL)
6. Depreciation 5400000/-
i)Building 2000000/-
ii)Plant and machinery 1600000/-
iii)Misc. fixed assets 1800000/-
(As per prevailing IT provision)
7. Incentives/commission of sales 64400/- 772800/-
staff
8. Raw material expenses 94200/- 1130400/-
9. Manpower expenses 56000/- 672000/-
10. Depreciation 32000/- 384000/-
11. Repairs and maintenance 4000/- 48000/-
12. Consumables 12000/- 144000/-

F)Cost of Project and Means of Finance:

Sr.No. Cost of Project Amount in Sr.No. Means/Source of Amount in Remarks

INR funds INR
1. Land 1. Own contribution
2. Building 2. Term loan
3. Plant and machinery 3. Subsidy if any
4. Misc. Fixed assets 4. Unsecured loan

5. Preliminary and 5. Seed capital

preoperative
expenses
6. Margin on working
capital
7. Contingencies
between 5- 15% of
Sr. No.1-6 or as per
prevailing banking
norms
8. Total Total

Ideally the component of subsidy is not considered as it takes long time to get the same released after
submitting documents related to actual commencement of production/operationalization of unit.
Estimation of Profitability:

I)Annual sales turnover: Rs. 1,68,00,000/-

II)Expenses during the year: Rs.- 10,46,400/-

Gross Profit (I-II) Rs.-

Provision for taxation:Rs.--

S No Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

1 Sales 14.98 18.38 19.25 19.29 19.29 19.29 19.29
2 Total Expenditure 13.06 15.71 16.69 17.02 17.05 17.06 17.09
3 PBIDT 1.93 2.66 2.56 2.27 2.24 2.23 2.20
4 PBT 1.30 1.39 1.32 1.11 1.16 1.25 1.32
5 PAT 1.05 1.04 0.96 0.80 0.82 0.86 0.89
6 Cash Accruals 1.16 1.27 1.20 1.03 1.05 1.09 1.13
7 BEP @ Installed capacity 24.11% 30.57% 35.83% 37.07% 34.67% 31.32% 28.14%
8 BEP @ Operating capacity 34.44% 38.21% 42.15% 43.61% 40.79% 36.85% 33.11%
9 Debt Equity Ratio 0.68 0.57 0.44 0.30 0.14 0.00 0.00
10 DSCR (Gross) 2.33 1.93 1.75 1.48 1.42 1.36 1.71
11 Average DSCR 1.68
12 DSCR (Net) 3.28 2.92 2.33 1.75 1.57 1.43 1.76
13 Average DSCR
2.28
14 IRR (%)
15.48%

Net Profit: Rs.-- 33,55,400/-

Return on Investment: 33,55,400/-

---------------- x 100 = 75.05 %
44,70,600/-

References:

Sr.No. Name, Designation and Details of communication Role

organization
1 Sandeep Dwivedi , commity Acting Partner as in
Member of Rice Mill Rice Mill
Association, Sanjali Food Pvt
 Ltd.

Place: IIEBM, Indus Business School PUNE (MH) Name: SANDEEP DWIVEDI
Date: 10/11/17 Signature: