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MINI WHEAT FLOUR MILL

SERVICE CAPACITY : 2, 80,000/- Kg Flour (Atta) Per Year

Value : Rs. 8,40,000/-

MONTH AND YEAR : July, 2014

OF PREPARATION

PREPARED BY : Sh. Ravi Ranjan

Investigator (Mechanical)

1. INTRODUCTION Atta generally as it is known is the flour of

wheat used to make most food items in India, such as

chapatti, roti, naan and puri. Most atta is milled from

the semi-hard wheat varieties, also known as durum

wheat that comprises 90% of the Indian wheat crop,

and is more precisely called Durum Atta.

Hard wheat have a high content of gluten (a

protein composite that gives elasticity), so doughs

made out of atta flour are strong and can be rolled out

very thin. Indian wheat are mostly Durum wheat,

which are high in protein but less in "bread forming

gluten" so the bread when baked with this flour does

not rise as well and tend to be dense.

Atta is the Hindi or Urdu word for dough; it is used by metonymy to mean

"flour used for baking". Atta refers to the pulverized whole wheat with brownish

white color. In India common term used for atta is "chakki atta" which is mostly used

in rural areas. Chakki atta is ground wheat without any additions or subtractions,

and is thus in more natural form. The word Chakki derives its meaning from

traditional Indian way of grinding wheat in between two stone plates modern day

flour mills use stone crushers in the flour milling process.

2. MARKET POTENTIAL Wheat Flour or Atta is the predominantly used in food items in India, such as

chapatti, roti, naan and puri and in sweat items too like halwa, pakoda, etc. Owing

to the public distribution system providing whole wheat which has to be grounded

and also purchasing wheat from open market and grinding it will be cheaper than

the flour available in market and we have the option to grind it to the consistency

required. These advantages generate a huge market potential for Mini Wheat Flour

Mill.

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3. BASIS AND PRESUMPTIONS i. The Project is based on single shift working of 8 hours a day & 75% efficiency.

ii. The rental value of the workshop has been taken at prevailing rates.

iii. The cost of machinery and equipment indicated in the Profile refers to a

particular make and prices are approximate to those prevailing at the time of

preparation of the Project Profile.

iv. The provision made in respect of consumables, personnel, and overhead etc.,

has been made at the prevailing rates and are approximate only.

v. The rate of interest has been made@ 14% per annum. .

vi. The labour charges are based upon those prevailing in local market.

4. IMPLEMENTATION SCHEDULE The main activities in the implementation of the project have been listed and

the average time for implementation of the project is estimated at 2 2 months as

many activities can be taken up simultaneously.

Period (in Weeks)

1. Preparation of project report 1

2. Registration and other formalities

3. Sanction of loan 2

4. Purchase of machinery and equipments, etc. 2

5. Installation and Electrification 2

6. Recruitment of Personnel 1

5. TECHNICAL ASPECTS

5.1. Process Outline

The wheat provided by the customers is poured in to the hopper of the machine

which feed the materials to the grinding chamber. The Space between the rotating

grinding plates are adjusted to get the consistency (Coarse/Fine) as desired by the

customer. The ground wheat as flour is collected in bags/drums.

5.2. Service Capacity

Flour (Atta): 2,80,000 kg

5.3. Motive Power 20 KW 5.4. Pollution Control

There is no pollution generated from the process. However to avoid uneasiness due to the fine dusts, dust collectors can be installed.

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6. FINANCIAL ASPECT

6.1. Fixed Capital

Land & Building:

Built up area of 150 to 200 sq. mtrs. on rental basis

6.1.1. Machinery and Equipments

S.No. Description Qty. Value (Rs.)

1 Roller mill body (Aatta Chakki) with 5 HP Motor 1 1,20,000

2 Dust cyclone with airsel dia 960 1 18,000

3 Exhaust Fan (Big) 1 5,000

4 Digital Weighting machine 1 10,000

Total 1,53,000

5 Office furniture & Misc. equipments L.S. 10,000

6 Electrification and installation @ 10% L.S. 15,300

Preoperative expenses

10,000

Total 1,88,300

6.2. Working Capital (per month)

6.2.1. Personnel

S. No. Designation No Salary (Rs.) Total (Rs.)

1 Skilled Workers 1 10,000 10,000

2 Helper/Sweeper 1 8,000 8,000

Total 18,000 Perquisites @ 15% of salary 2,700

Total 20,700

6.2.2. Utilities

1. Power Rs. 9,000

2. Water Rs. 500

Total Rs. 9,500

6.2.3. Other Contingent Expenses

S. No. Description Value (Rs.)

1. Rent 8,000

2. Repair & Maintenance 1,000

3. Miscellaneous 1,000

4. Insurance 500

Total 10,500

6.2.4. Total Recurring Expenditure (per month) Rs. 40,700/-

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6.3. Total Capital Investment

Fixed Capital Rs. 1,88,300

Working Capital (for 3 months) Rs. 1,22,100

Total Rs. 3,10,400/-

Machinery Utilization

All the machinery will be fully utilized. These wont be any idle capacity.

7. FINANCIAL ANALYSIS

7.1. Cost of Operation (per annum)

S.No. Description Amount (Rs.)

1 Total Recurring Cost per year 4,88,400

2 Depreciation on Machinery & Equipment @ 10% 15,300

3 Depreciation on Office Equipment & Furniture @ 20% 2,000

4 Interest on Total Investment @ 14% 43,456

Total 5,49,156

7.2. Turnover (per annum)

Flour (Atta) of 2,80,000 kg @ Rs. 3/- per kg Rs. 8,40,000/-

7.3. Net Profit (per annum)

= Turnover Cost of Operation

= Rs. 2,90,844/-

7.4. Net Profit Ratio

= Net profit per year

X 100 Turnover per year

= 34.6 %

7.5. Rate of Return

= Net profit per year

X 100 Total Capital Investment

= 93.7 %

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7.6. Break-even Point

Fixed Cost (Per Annum) (Rs.)

Rent 96,000

Total Depreciation 17,300

Total Interest 43,456

Insurances 6,000

40% of salary and wages 99,360

40% of other Contingent expenses (Excluding rent & Insurance)

9,600

Total 2,71,716

B.E.P

= Fixed Cost

X 100 Fixed Cost + Net Profit

= 48.3 %

Address of Machinery & Equipment Suppliers

1. M/s. Flour Tech Engineers (P) Ltd.

16/5, Mathura Road, Faridabad

2. M/s. Mukul Brothers Engineers Works

P.O. Box325, Kishan Flour Mill Compound, tirhankar Mahveer marg, Merrut -02

3. M/s. Northern Flour Millers Corporation

7, Maqbool Road, Nagadi Main Road, Amritsar-01