Quick Aged Paddy
Production Capacity : 680 tpa
Uploaded on : April 2009
Product and its applications
Rice tops the food grains cultivated in India , with annual production of more than 90 million tonnes. Rice is the staple food for majority of the population. It is a common experience that rice from freshly harvested paddy cooks to a pasty mass. It has poor swelling capacity during cooking and reportedly causes digestive disorders. That is the reason the new rice is aged or cured by storing for at least 4 months to overcome these problems and to develop desirable cooking characteristics. The ageing becomes faster as the temperature during storage increases. A new technology has been developed whereby it has become possible to age or cure the new paddy within a short duration.
Market Potential
Aged rice commands a higher price as compared to new rice. There is an incentive to cure the paddy in a short time and speed up the realisation. Quick aging helps in cutting down the cost of warehousing, reduce damage by rodents, save interest on the capital, thereby improve overall economic profile of the project.
Basis and Presumption
- The unit proposes to work at least 120 days per annum on single shift basis. However, the production activity will be available only for 100 days.
- The unit can achieve its full capacity utilization during the 2nd year of operation.
- The wages for workers are taken as per prevailing rates in this type of industry.
- Interest rate for total capital investment is calculated @ 12% per annum.
- The entrepreneur is expected to raise 20-25% of the capital as margin money.
- The unit proposes to construct own building while the cost of construction is based inputs.
- Costs of machinery and equipment are based on average price.
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 |
Technical Aspects
Process of Manufacture
The freshly harvested paddy is steamed for a specified period of time depending on the initial moisture content of the paddy. It is then heaped, dried and used for rice milling.
Quality Control and Standards
As per AGMARK specifications
Energy Conservation
The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler. Proper care should be taken while utilising the fuel for the steam production. There should be no leakage of steam in the pipe lines and adequate insulation should be provided.
Production Capacity
| Quantity | 750 tpa |
| Installed capacity | 8 tpa |
| Value | Rs. 96.60 lakh |
| Optimum capacity utilization | 70% |
| Working days | 100/annum |
| Manpower | 12 |
| Utilities | |
| Motive Power | 12 kWH |
| Water | 5 kL/day |
| Coal/LD oil | 250 kg/60 L/day |
Financial Aspects
Fixed Capital
Land & Building
Particulars |
Amount (Rs. lakh) |
| Land 1000m 2 | 02.00 |
| Built up area 150 m 2 | 04.50 |
| Total cost of land and building | 06.50 |
Machinery and Equipment
Description |
Amount (Rs. lakh) |
| Boiler, parboiling tank, mechanical drier/drying yard. Auxiliary equipment: weighing scales, trolleys etc. | 03.85 |
| Erection & electrification of machinery & equipment @10% cost | 00.40 |
| Office furniture & fixtures | 00.75 |
| Total | 05.00 |
9.1.3 Pre-operative Expenses |
Amount (Rs. lakh) |
| Consultancy fee, project report, deposits with electricity department etc | 01.00 |
9.1.4 Total Fixed Capital |
Amount (Rs. lakh) |
| (9.1.1+9.1.2+9.1.3) | 12.50 |
Recurring expenses per annum
Personnel
Designation |
No. |
Salary Per month |
Amount (Rs. lakh) |
| Factory Manager | 1 | 10,000 | 01.20 |
| Supervisory staff | 2 | 07,500 | 01.80 |
| Office Assistant | 2 | 06,000 | 01.44 |
| Technician | 1 | 05,000 | 00.60 |
| Skilled workers | 2 | 03,500 | 00.84 |
| 06.36 | |||
| Perquisites @15 % | 00.94 | ||
| Total | 12 | 07.30 |
Raw Material including packaging materials
Particulars |
Qty (t) |
Rate/t (Rs.) |
Amount (Rs. lakh) |
| Chemicals | LS | LS | 00.22 |
| Packaging materials | 7500 No. | 11 each | 00,83 |
| Paddy | 750 | 9500 | 71.25 |
| Total | 72.30 |
Utilities
Particulars |
Amount (Rs. lakh) |
| Power | 01.50 |
| Water | 00.05 |
| Fuel | 00.45 |
| Total | 02.00 |
Other Contingent Expenses
Particulars |
Amount (Rs. lakh) |
| Repairs and maintenance @10% | 00.50 |
| Consumables & spares, others | 00.10 |
| Transport & travel | 00.45 |
| Publicity, postage, telephone | 00.04 |
| Insurance @1% | 00.45 |
| Total | 00.82 |
Total Recurring Expenditure
| (9.2.1 + 9.2.2 + 9.2.3 + 9.2.4) | 83.00 (Rs. lakh) |
9.3 Working Capital |
Amount (Rs. lakh) |
| Recurring expenses for 1 month | 06.90 |
9.4 Total Capital Investment |
Amount (Rs. lakh) |
| Fixed capital (Refer 9.1.4) | 12.50 |
| Working capital (Refer 9.3) | 06.90 |
Financial Analysis
Cost of Production (per annum) |
Amount (Rs. lakh) |
| Recurring expenses (Refer 9.2.5) | 83.00 |
| Depreciation on building @ 5% | 00.20 |
| Depreciation on machinery @10% | 00.42 |
| Depreciation on furniture @ 20% | 00.15 |
| Interest on Capital Investment @ 12% | 02.33 |
| Total | 86.10 |
Item |
Qty (t) |
Rate/t (Rs.) |
Amount (Rs. lakh) |
| Aged paddy | 680 | 14,500 | 98.60 |
Net Profit per year
=Sales – Cost of production |
Net Profit Ratio
Net profit X 100 Sales 12.50X 100 98.60 =12.67% |
Rate of Return on Investment
Net profit X 100 Capital Investment 12.50X 100 I9.40 =64.4% |
Break even Point
Annual Fixed Cost X 100 Annual Fixed Cost + Profit 7.23 X 100 7.23+12.50 =36.6% |
Addresses of Machinery and Equipment Suppliers
Septu ( India ) Pvt. Ltd.
12/7, Urban Estate,
Post Box No. 4
Gurgaon - 122 001
Raylon Metal Works
Kondivitta Lane
Post Box 17426
J.B.Nagar, Andheri (E)
Mumbai - 400 059
SSP (Pvt) Ltd.
13th Milestone, Mathura Road
Faridabad - 121003, Haryana
Rohilkhand Eng. Works
Izzatnagar,
Bareilly (U.P.)
Batliboi Engineers ( Bangalore ) Pvt. Ltd.
99/2&3, N.R.Road
Bangalore - 560 002
Narene Tulaman Manufacturers Pvt. Ltd.
Balanagar
Hyderabad - 500 037
M/s. Kodesia Eng Works,
Izzatnagar
Bareilly
Shree Murugan Industries,
Plot No. 68/W, Hootagalli
Industrial Area, Balawadi Post
Mysore – 571186
Nalanda Agro Works
Nalanda Nagar, Kurji
Patna - 800 010
Mac-Well Engineering Works,
14, Kartar Compound, LBS Marg
Behind State Bank
Vikroli (West)
Mumbai
Contact for more information
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
