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Agro Seed Processing Plant
| Product Code |
: |
2 tonnes per hour (Paddy 26 tpd
or wheat 35 tpd in 3 shifts) or 4,540 tpa. |
| Uploaded on |
: |
February 2009 |
1.0 Product and its applications
Cereal grains like paddy and wheat together
constitute the main staple food in the country. Hence production
of these crops ranks highest in quantity. The use of certified
agricultural seeds ensures higher agricultural production.
The certified seeds are produced and processed under Indian
Seed Act 1996 (amended in 2002). These are sound, healthy
and genetically pure with higher yields. The process consists
of agricultural activity as well as processing activity under
a licence from State Authority.
2.0 Market Potential
India has made phenomenal strides in production of food grains,
yet there exists a vast scope for further improvement in productivity.
Replacement of 10% seeds annually would ensure higher production.
The farmers procure certified seeds from different suppliers.
However supply is far short of the demand.. There is a tremendous
scope for setting up seed processing units to meet the local
demand and make the region self sufficient in food grain production.
3.0 Basis and Presumption
a) The processing plant will work for 180 days per annum on
3 shifts basis.
b) The unit can achieve its full capacity utilization during
the 2nd year of operation.
c) The wages for skilled workers are taken as per prevailing
rates in this type of industry.
d) Interest rate for total capital investment is calculated
@ 12% per annum.
e) The entrepreneur is expected to raise 20-25% of the capital
as margin money.
f) The unit would construct its own building as per Seed Certification
Authority specifications.
g) Costs of machinery and equipment are based on average prices
of manufacturers.
4.0 Implementation
Schedule
Project implementation will take a period of 8 months. Break-up
of the activities and relative time for each activity is shown
below:
|
Scheme preparation and approval
|
:
|
01 month
|
|
SSI provisional registration
|
:
|
1-2 months
|
|
Sanction of financial supports etc
|
:
|
2-5 months
|
|
Installation of machinery and power connection
|
:
|
6-8 months
|
|
Trial run and production
|
:
|
01 month
|
5.0 Technical
Aspects
5.1 Location
Since the process consists of crop cultivation
and processing activity, the plant should be located inside/near
the farm wherein crop is cultivated. Availability of power,
road connectivity and marketing links for supply of seed to
various traders/users should be ensured.
5.2 Process of Manufacture
(a) Agricultural activity:
 
5.3 Quality
Control and Standards: As per State Seed Certification
requirements.
6.0 Pollution Control
There is no major pollution problem associated with this
industry except for disposal of waste which should be managed
appropriately. The entrepreneurs are advised to take "No
Objection Certificate" from the State Pollution Control
Board.
7.0 Energy Conservation
Only electricity is being used in the process.
8.0 Production Capacity
| Quantity |
2650 tpa paddy seed +
1890 tpa wheat seed 20 tpd |
| Installed capacity |
20 tpd |
| Optimum capacity utilization |
70% |
| Working days |
300/annum (processing
activity 180 days) |
| Manpower |
28 |
| Utilities |
|
| Motive Power |
15 kW |
| Water |
01 kL/day |
9.0 Financial Aspects
9.1 Fixed Capital
9.1.1 Land & Building Amount (Rs.
lakh)
|
Land 10,000 m2
|
09.00
|
|
Built up area 1,000 m2
|
30.00
|
|
Total cost of Land and Building
|
39.00
|
9.1.2 Machinery and Equipment
|
Mechanical dryer, elevators-3, pre-cleaner, size grader,
indented centrifugal cylinder, chemical treater, automatic
dosing machine, conveyor belt, bag stitching machine,
misc. equipment
|
22.00
|
| Erection and electrification
@ 10% of machinery cost |
2.20 |
| Office furniture
& fixtures |
1.50 |
| Total |
25.70 |
9.1.3 Pre-operative Expenses
|
Consultancy fee, project report, deposits with electricity
department etc.
|
1.30
|
| 9.1.4 Total Fixed Capital
(9.1.1 + 9.1.2 + 9.1.3) |
66.00 |
9.2 Recurring expenses per annum
9.2.1 Personnel
|
Designation
|
No.
|
Salary per month
|
Amount (Rs. lakh)
|
|
|
Factory manager
|
1
|
10,000
|
1.20
|
|
Supervisor & marketing staff
|
2
|
6,000
|
1.44
|
|
Office Assistant
|
2
|
5,500
|
1.32
|
|
Technician
|
1
|
5,000
|
0.60
|
|
Skilled workers
|
4
|
3,500
|
1.68
|
|
Unskilled workers (6 months)
|
16
|
2,000
|
1.92
|
|
Unskilled workers (Regular)
|
2
|
2,500
|
0.60
|
|
Perquisites @ 15%
|
|
|
8.76
|
|
|
|
|
1.31
|
|
Total
|
28
|
|
10.07
|
9.2.2 Raw Material Including Packaging
Materials
|
Particulars
|
Qty(t)
|
Rate/t (Rs.)
|
Amount Rs. lakh
|
|
Paddy 26 tpd x 120 days
|
3,120
|
8,850
|
276.12
|
|
Wheat 35 tpd x 60 days
|
2,100
|
10,600
|
222.60
|
|
Gunny bags for paddy seed, cap. 12 kg
|
2,21,000
|
5.00
|
011.05
|
|
Gunny bags for wheat seed, cap. 40 kg
|
47,250
|
10.25
|
004.85
|
|
Fungicides, stitching, marking
|
LS
|
LS
|
005.63
|
|
Total
|
|
|
520.25
|
9.2.3 Utilities
|
9.2.4 Other Contingent Expenses
|
Amount (Rs. lakh)
|
|
Repair and maintenance, building @5%
|
1.50
|
|
Repair and maintenance, machinery @10%
|
2.42
|
|
Repair and maintenance, furniture @20%
|
0.30
|
|
Consumables & spares!
|
|
|
Transport & travel !
|
|
|
Publicity !
|
3.42
|
|
Postage & stationery !
|
|
|
Telephone !
|
|
|
Insurance
|
0.66
|
|
Total
|
8.30
|
|
2.5 Total Recurring Expenditure
|
Amount (Rs. lakh)
|
| (9.2.1+9.2.2+9.2.3+9.2.4)
|
542.92 |
9.3 Working Capital
|
Recurring Expenditure for 2 months
|
90.50
|
| 9.4 Total
Capital Investment |
Amount
(Rs. lakh) |
| Fixed capital
(Refer 9.1.4) |
66.00 |
| Working capital
(Refer 9.3) |
90.50 |
| Total |
156.50 |
10.0 Financial Analysis
|
10.1 Cost of Production (per annum)
|
Amount (Rs. lakh)
|
|
Recurring expenses (Refer 9.2.5)
|
542.92
|
|
Depreciation on building @5%
|
1.50
|
|
Depreciation on machinery @10%
|
2.42
|
|
Depreciation on furniture @20%
|
0.30
|
|
Interest on CapitalInvestment@12%
|
18.86
|
|
Total
|
566.00
|
10.2 Sale Proceeds / Annual turnover
|
Item
|
Qty (t)
|
Rate/t (Rs.)
|
Amount (Rs. lakh)
|
|
Paddy seeds in 12 kg bags
|
2,650
|
14,600
|
386.90
|
|
Wheat seeds in 40 kg bags
|
1,890
|
15,200
|
287.28
|
|
Total
|
|
|
674.18
|
10.3
Net Profit per year
|
= |
Sales - Cost of production |
| |
= |
674.18 - 566.00 |
| |
= |
108.18 lakh |
| |
|
|
| 10.4 Net Profit Ratio |
= |
Net Profit ×100 |
| |
|
-------------------------- |
| |
|
Sales |
| |
|
|
| |
= |
108.18
-----------------x 100
674.18 |
| |
= |
16.05% |
| 10.5 Rate of Return
on Investment |
| |
= |
Net Profit ×100 |
| |
|
------------------------- |
| |
|
Capital Investment |
| |
|
|
| |
= |
108.18 x 100
----------------------
156.50 |
| |
|
|
| |
= |
69.12 % |
| 10.6 Annual Fixed
Cost |
Amount (Rs. Lakh)
|
| All depreciation |
4.22 |
| Interest |
18.86 |
| 40% of salary, wages, utility, contingency
|
9.07 |
| Insurance |
0.66 |
| Total |
32.81 |
10.7 Break even Point
|
=
|
Annual Fixed Cost x100 |
|
|
Annual Fixed Cost + Profit |
|
|
|
|
=
|
32.81 x 100
------------------------ |
| |
32.81 + 108.18 |
| |
|
|
=
|
23% |
11.0 Addresses of Machinery and Equipment
Suppliers
1. Rohilkhand Eng. Works
Izzatnagar,
Bareilly (U.P.)
2. Batliboi Engineers (Bangalore) Pvt. Ltd.
99/2&3, N.R.Road
Bangalore - 560 002
Narene Tulaman Manufacturers Pvt. Ltd.
Balanagar
Hyderabad - 500 037
3. M/s. Kodesia Eng Works,
Izzatnagar
Bareilly
4. Shree Murugan Industries,
Plot No. 68/W, Hootagalli
Industrial Area, Balawadi Post
Mysore - 571186
5. Nalanda Agro Works
Nalanda Nagar, Kurji
Patna - 800 010
6. Mac-Well Engineering Works,
14, Kartar Compound, LBS Marg
Behind State Bank
Vikroli (West)
Mumbai - 400 079
7. Septu (India) Pvt. Ltd.
12/7, Urban Estate,
Post Box No. 4
Gurgaon - 122 001
8. Raylon Metal Works
Kondivitta Lane
Post Box 17426
J.B.Nagar, Andheri (E)
Mumbai - 400 059
9. SSP (Pvt) Ltd.
13th Milestone, Mathura Road
Faridabad - 121003, Haryana
Grovers Pvt. Ltd.
223, Kaliandas Udyog Bhavan
Prabhadevi
10. Mumbai - 400 025
Macneill and Magor Ltd.
4, Mangoe Lane
Kolkata - 700 001
12.0 Other Special Features
A careful selection of product mix is
necessary based on the local market demand and availability
of raw materials. The facilities can also be utilised to manufacture
quality seeds of carrot, radish, peas, spinach, coriander,
okra, other vegetables and pulses for fuller utilisation of
capacity.
Contact for more information
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
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