S B A P_ Business plan_V.01 M/s Shri * Food Products WHEAT FLOUR MILL PROPOSAL FOR TERM LOAN & WORKING CAPITAL ASSISTANCE Business Plan M/s Shri * P.Ltd Survey No, , Andhra Pradesh. Matrix Consulting_ 101, Durga apartments, Rajbhavan Road, Hyderabad 0 9989 040404 1 S B A P_ Business plan_V.01 Business Plan COMPANY INFORMATION S.No Particulars Details 01. 02. 03. Company Status Corporate Office M/s Shri * P.Ltd Private limited company incorporated on * ROC, AP, vide CIN No. * 04. 05. 06. 07. Factory Web Site Management Statutory Auditors Finance Consultants 08. 09. 10. 11. 12. 13 14. Bankers Business Industry Status Highlights Cost of the Project Means of Finance Setting up a 120 TPD Wheat Roller Flour Mill & 30 TPD Chakki Atta Project Food Processing SSI Unit in the field of Food Processing Belongs to existing profit making Group in the business of Flour trading and marketing. Project Cost: Rs 578.00 lakhs Term Loan Rs 350.00 lakhs Equity Capital Rs 228.00 lakhs Working Capital Rs 240.00 lakhs 1.54 : 1 3.08 3 years 49 Personnel 50 Firm Commission agents net work in places 35% Proven technology, promoters having experience 15. 16. 17. 18. 19. 20 21. 20. Debt Equity ratio DSCR Payback period Direct Employment Indirect Employment Marketing Relationships Break Even Capacity Technology Matrix Consulting_ 101, Durga apartments, Rajbhavan Road, Hyderabad 0 9989 040404 2 Ravva and Bran ( By product ) of 150 Tons per day ( 120 + 30 ) to cater to the needs of Whole Sale and Retail needs of South Indian Wheat Market.Consumption and Demand for the products proposed for manufacturing by the company. increasing value of time. Atta. The unit proposes to produce Wheat Products such as Atta. • Ashish Mundada S/o Sri Kamal Kumar Mundada after completing his graduation (B Tech in Electrical Engg) in the year 2006.00 Lacs which is proposed to be financed by the promoters as well as term loan from Banks in 1 : 1. He did this business for a period of 2 years and achieved a turnover of Rs 12 Cr each per year. Patancheru Mandal. Hyderabad 0 9989 040404 3 . India promoted by Mr. increasing demand for improved quality standard and hygiene of the products and non-economics of small-scale chakkis in wheat segment. The required raw material is basically Wheat which is available in plenty from various parts of northern and western parts of India. Maida etc. Chikki Atta.. a partnership firm to manufacture Chakki Atta at Kattedan industrial area.. Durga apartments. The company is proposing to setup a Wheat Flour Mill of 120 Tons per day capacity along with a Atta Chakki Plant of 30 Tons per day processing unit at Survey No. Maida. Presently the firm is clocking a turnover of Rs 6. The promoters who have extensive experience in the Trading of Oil and Food Products have conceived the idea of encashing their trading experience and going in for Food Processing industry. Rajbhavan Road. increase in per capita consumption owing to various factors such as rise in disposable income. started his career as a channel partner to market the products of Idea Cellular. M/s Mundada brokers who are commission agents for supply of crude edible oil to oil refineries till 2006.Kamal Kumar Mundada (Director). 2_Acres of industrial land in Nadigama Village. 7. • Mr. he started his own business in 2007viz.54 ratio. for implementation of the Project. For a couple of years he assisted his young nephew who owns a proprietary concern ‘Anand Agencies’. The land has been converted from agricultural area and is to be developed for setting up the production facilities The total Investment of the project is estimated at Rs 578. distributors of wheat products viz. • Share Holding Pattern: Matrix Consulting_ 101.00 Cr per annum. Currently the business is handled by his cousins. The Company has obtained on long lease. * .00 Cr to Rs. He entered the family business run by his father viz.. *2010. With this background. Chakki Atta. Medak district. He gave up this business and joined as a partner of ‘Shubham Agro Industries’. P r o m o t er s M/S Shri * Agro Products Foods Products has been promoted by Mr.S/o Late Sri Kishan Mundada started his career in the year 1991 after his school education. Processed wheat products are staple food items in India . is ever on increase due to increase in population.S B A P_ Business plan_V. ‘Shubham Agro Industries’. He gained rich experience assisting his nephew in the wheat products business. * just about 10 Kms from Hyderabad.01 The Project M/s Shri * Pvt Ltd is a private limited company incorporated in Andhra Pradesh. Ashish Kumar Bung Mrs.50% 5. Durga apartments.Rohit Agarwal Mrs. It is extracted from the inner white portion of the wheat after the outer brownish layer is removed. it more closely resembles cake flour or even pure starch.00% 15.00% 25. After the flour is ground in a flour mill. Matrix Consulting_ 101. maida flour is used to make pastries and other bakery items such as bread. 01. In India. 02.Indra Mundada Mr.00% 100. Hyderabad 0 9989 040404 4 . 06.No. Maida is a refined product of wheat.50% 10. 05.00% 12. Pastry flours available in United States may be used as a substitute for maida. It is also used in Central Asian and Southeast Asian cuisine.S B A P_ Business plan_V. 04.00% Details of the Associate Concerns: Name of Concern the Activity Nature of Association Sri Kamal Kumar MundadaDirector is a partner Annual Turnover Rs Crores. Chandrakala Bung Mr. 07. Though sometimes referred to as "all-purpose flour" by Indian chefs. 03. Kamal Kishore Mundada total % equity contribution into the Project Role Director Investor Director Investor Investor Director Director 15.00% 17. biscuits and toast.00 Financing Arrangements Nil Status of Account Standard Shubham Agro Industries (Partnership firm) Food Processing Chakki Atta Mill The Products & The Process: The Products proposed for manufacture are the different forms of Wheat grain and as such are different forms in which Wheat is consumed. it is passed through a fine mesh (600 mesh per square inch) to obtain maida. Name of each Partner Mr.01 S. 7. Ashish Kumar Mundada Mr.Radha Kirshna Bajaj Mr. Roller Flour Mill Maida Atta Ravva Bran Wastage-loss 52% 15% 8% 23% 2% 100% processed Chakki Mill Chakki Atta 92% Bran Wastage-loss 6% 2% 100% (a) What is Maida? Maida flour is finely-milled wheat flour variety which is used to make Indian breads such as paratha and naan. Rajbhavan Road. (c) What is Ravva ? Husk removed wheat is ground to form rava. (f) What is Bran? Bran is the hard outer layer of grain and consists of combined aleurone and pericarp. doughs made out of atta flour are strong and can be rolled out very thin. As this "Rava" is an extract of maida flour it is much finer. and is often produced as a by-product of milling in the production of refined grains. atta is made by stone grinding. Bran should not be confused with chaff. goats. such as in Karnataka and Tamilnadu. fermented wheat bran is usually used when preparing sour soups. Rava idli. khichdi. etc. as such. High bran content of true whole meal atta makes it a fiber-rich food. such as chapati. Bran is particularly rich in dietary fiber and essential fatty acids and contains significant quantities of starch. It is creamy brown in color and quite coarse compared to other types of flour. are an integral part of Indian cuisine. which is coarser scaly material surrounding the grain. and also sweets like Rava Ladoo and Rava halwa also known as Rava Kesari. Hard wheats have a high content of gluten (a protein composite that gives elasticity). Traditionally. Wheat bran is fed to horses in the form of a warm porridge or mash. Since nothing is removed from true whole meal atta. guinea pigs. the carotenes present in the bran tend to exude the characteristic roasty smell. upma. including rice. naan and puri. Hyderabad 0 9989 040404 5 . oats. It is also used as an additive in some Dosa items. especially the Rava Dosa. In Romania. The temperatures attained in a chakki produced by friction. Atta is obtained from grinding complete wheat grains. Rava may be described as the residues of milled material. but not forming part of the grain itself. This may help to regulate blood sugar as well have other health benefits.01 (b) What is Atta Atta is the main ingredient of most varieties of Indian. It is passed through a fine mesh till flour and rava are separated. Bran is present in and may be milled from any cereal grain. a process that imparts a characteristic aroma and taste to the bread. after the flour is ground in a flour mill (Chakki). especially for the benefit of those wishing to increase their intake of dietary fiber. Atta available in market varies in its fibre content from very low to whole of natural fiber in wheat. all the constituents of the wheat grain are preserved. It is a whole wheat-flour made from hard wheat grown across the Indian subcontinent. It is also indicated for its laxative qualities. to make Rava dosa. which is an extract of wheat flour. Matrix Consulting_ 101. Moisture Content. all the constituents of the wheat grain are preserved. Bran may also be used for pickling (nukazuke) as in the tsukemono of Japan. It is creamy brown in colour and quite coarse compared to other types of flour. buffaloes. rabbits. (d) What is Chakki atta ? Atta is obtained from grinding complete wheat grains. it is an integral part of whole grains. roti. called borscht. vitamins and dietary minerals. Rajbhavan Road. Atta available in market varies in its fibre content from very low to whole of natural fibre in wheat. Along with germ. and contribute to the sweetness of the atta. protein. Bran is widely used as a major component in foods for cows. Bombay Rava is used in Southern parts of India to make delicious dish called upma. corn (maize). barley and millet. around 12%. The various quality control parameters for the atta industry are Ash Content. around 12%. wheat. At such high temperatures. Bangladeshi and Pakistani bread. There is another form of rava known as Chamba Rava. are of the order of 110-125 deg C. Bran mash is considered an excellent way to get the horse to drink more water. Since nothing is removed from true whole meal atta. and used extensively in south Indian cuisine.S B A P_ Business plan_V. Flatbread made from atta. When bran is removed from grains. the latter lose a portion of their nutritional value. Bran is often used to enrich breads (notably muffins) and breakfast cereals. Durga apartments. 6 mg of iron (20% of the daily requirement). crushed and de-branned into bulgur also known as groats. In 2007 world production of wheat was 607 million tons. but now cultivated worldwide. porridge. Shredded Wheat. boza (a fermented beverage). Globally. crackers. 1. pies. and couscous and for fermentation to make beer. by mixing flour and water to form a small ball of dough. 71 grams of carbohydrate (by difference). 12. biscuits.01 Wheat & Wheat Products– The Staple Food: • Wheat (Triticum spp) is a grass. Rajbhavan Road. cookies. germinated and dried creating malt. minerals. rolls. and Wheaties). pancakes. • • • • • • Nutrition • 100 grams of hard red winter wheat contain about 12. Muesli. biscuits. Wheat is a major ingredient in such foods as bread. and had the additional advantage of yielding a harvest that provides long-term storage of food. or bio fuel. Raw wheat can be ground into flour or . and 3. is bran. and 3.2 grams of dietary fiber. 1. having a higher protein content than either maize (corn) or rice.6 grams of protein. Wheat germ is the embryo portion of the wheat kernel. Cream of Wheat. The husk of the grain. the same weight of hard red spring wheat contains about 15. separated when milling white flour. doughnuts. parboiled (or steamed). and breakfast cereals (e. pastries. and kneading it gently Matrix Consulting_ 101. starch storage region of the kernel—the endosperm. Durga apartments. Wheat starch is an important commercial product of wheat. If the raw wheat is broken into parts at the mill. gravy. flat and steamed breads. cookies. Wheat was a key factor enabling the emergence of city-based societies at the start of civilization because it was one of the first crops that could be easily cultivated on a large scale.using hard durum wheat only. noodles. Wheat grain is a staple food used to make flour for leavened.4 grams of protein. but second in economic value to wheat gluten. Hyderabad 0 9989 040404 6 • . and ahead of maize. making it the third most-produced cereal after maize (784 million tons) and rice (651 million tons). crushed or cut into cracked wheat. can be ground into semolina. Wheat is planted to a limited extent as a forage crop for livestock. and is sustained by the larger. 12. It is a concentrated source of vitamins.g. after allowing for maize's more extensive use in animal feeds.9 grams of total fat.2 mg of iron (17% of the daily requirement). as is usually done.5 grams of total fat.. and protein. and its straw can be used as a construction material for roofing thatch. 68 grams of carbohydrate (by difference). wheat is the leading source of vegetable protein in human food. In terms of total production tonnages used for food. Wheatena. The principal parts of wheat flour are gluten and starch. it is currently second to rice as the main human food crop.2 grams of dietary fiber.S B A P_ Business plan_V. cakes. the other major cereals. These can be separated in a kind of home experiment. breakfast cereal. muffins. originally from the Fertile Crescent region of the Near East. Much of the carbohydrate fraction of wheat is starch. pasta. dried. other alcoholic beverages. the outer husk or bran can be used several ways. cakes. consumption. Directorate of Economic and Statistics 2010). One such example indicating India’s location advantage is the value of trade in agriculture and processed food between India and Gulf region. leaving behind a ball of gluten. With wheat production of 75 to 85 million tons annually and a large demand. Nestle. ITC. Malaysia and Korea. The marketed surplus from the production has also been rising and it is estimated that about 60-70 percent of the production now comes to the market (India. and is crucial to India’s food economy and security.4 billion. Thailand.2 billion. cakes. Rajbhavan Road. Singapore. The starch falls out of the dough and sinks to the bottom of the bowl. Hyderabad 0 9989 040404 7 . Tata Coffee. sweets. skills and equipment. Tata Tea. The food processing industry is one of the largest industries in India. part of daily staple diet in India. export and growth prospects. The Government of India has identified the Food Processing Industry sector as a high priority area. in a total estimated food market of about USD 91. However bran is the byproduct produced in the process of manufacturing wheat products is used for making cattle feed. India’s wheat economy is now the second largest in the world. Major portion of atta is used for making Roti.7 billion. Subhiksha are major players. biscuits. cookies sweets.S B A P_ Business plan_V. Matrix Consulting_ 101. the turnover of the total food market is approximately USD 69. Durga apartments. biscuit. Japan. Namdhari. Godrej Foods. the Middle East. It currently ranks fifth in terms of production. As per a study conducted by McKinsey and Confederation of Indian Industry (CII).01 while rinsing it in a bowl of water. A part of atta is also used for biscuits. The Indian food processing industry is primarily export oriented. The processing food segment accounts for USD 29. Maida is mainly used for bread. confectionaries etc. Premium range of the bread is popular breakfast item among middle and upper income group in urban areas Suji is used for daily human consumption in various forms and specially used for infant foods • The Production Process: Technology The processing of Wheat is done through running wheat in a roller system and the technology is very conventional and time tested. RPG group. or indirectly by way of bread. It has given a number of fiscal reliefs and incentives to encourage commercialization and value addition to agricultural produce. Details of the processing together with a flow chart are available else where in this report. Ruchi Soya Industries. Market for Wheat Products: The Food Processing Industry: India is the world's second largest producer of food next to China.4 billion out of which value-added food products comprise USD 22. Reliance. India’s geographical situation gives it the unique advantage of connectivity to Europe. confectioneries etc. The total food production in India is likely to double in the next ten years and there is an opportunity for large investments in food and food processing technologies. cakes. and Bread is popular snack food for lower middle-income group name as ‘Pav’. • • • Maida and Atta are required for daily human consumption directly. Background of Wheat in India Wheat is a major food staple in India. and has the potential of being the biggest with the food and agricultural sector. The domestic market for processed food is huge and fast growing. wheat demand worldwide is calculated to rise by 40% from 1993 to 2020 to reach 775 million tons.Wheat Products: Wheat is a cereal grain grown and consumed worldwide. The retail boom will create a huge demand for the food-processing sector in the coming years. on contrary the rural areas do. Hyderabad 0 9989 040404 8 . the current position of wheat availability is very comfortable and this is reflected by overflowing wheat stocks with the Food Corporation of India Therefore. and Russia. and e) ability to offset seasonal supply-and-demand effects in fresh products. A considerable number of urban women work. Major wheat growing countries include China. as the market is still to explore. Wheat is more popular than any other cereal grain use in baked goods. Recent projections by the International Food Policy research Institute (IFPRI) indicate that. c) change in attitudes and tastes with increasing modernization and to a lesser extent westernization of tastes. as hyper-and super-markets are to emerge. thousands of varieties of wheat are grown throughout the world. Wheat is also preferred because of its mild. Urban centers have the potential of development process. The urban population generally has a higher purchasing power. Its popularity stems from the gluten that forms when flour is mixed with water. (i) Rise in disposable income. where wheat imports are estimated to double by 2020. (ii) Value of Time. In that sense. Both the factors account for wheat being the most widely grown cereal grain in the world. Not only are newer names set to dot the retail landscape but also such new formats. Today.01 Macro-Scene. two-thirds of the world’s wheat consumption will occur in developing countries. Rajbhavan Road. As noted earlier in this report. by 2020. However. Though. d) low penetration rates. increased number of nuclear and dual-income families. There are certain distinct characteristics of urban food demand. the demand for the flour milling industry is expected to grow rapidly in the future. The urban population density is high and this demands a chain or a network of retail outlets. of the youth.S B A P_ Business plan_V. raised bread is hard to imagine. • • • • Technical Feasibility: Matrix Consulting_ 101. The key drivers for increased demand in value-added processed food products are: a) growth in consumer class. and rising income levels. The expected increase in demand is partly motivated by population growth but also results from substitution out of rice and coarse grain cereals as incomes rise and populations become increasingly based in urban areas. But they do not produce food as they lack agricultural land. Growth in packaged Atta industry is driven by four factors viz. Indian food retailing is poised for a quantum leap. increasing urbanization. most requiring fertile soil and a temperate climate. India. creating a demand for heat-and-serve foods. (iii) Demand for improved quality and hygiene and (iv) Economic / Non Economy of small scale Chakkis. The rising average income is leading to greater demand for high-value processed food. Durga apartments. with the easy availability of wheat for the next few years. The urban food marketing system thus assumes considerable importance for both feeding the urban population and helping farmers. (Source: Multi Commodity Exchange of India Limited) .particularly. Without gluten. Little wonder that 2007 has been designated the Year of Food Technology. nutty flavor. France. it has now started discovering the money there is to be made in the urban food retailing market. b) change in lifestyle characterized by expanding urban population. The private sector is yet to realize its full potential in the food-retailing sector. • The size of the Indian urban food market is estimated at Rs 350.000 Crore. the urban areas provide an assured market for the food produced by farmers. transportation facilities for locating the plant. hosting of utilities. (C) Factory buildings The Company is proposing to build 24356 sq feet of factory RCC buildings to host plant machinery and other facilities as per the food grade standards and to host the utilities such as power / water / security / steam etc. All these facilities are provided in two buildings constructed as per FPO norms. Rajbhavan Road. The total cost of development is estimated at Rs 1. Milling. Andhra Pradesh just about 10 Kms from Hyderabad. Machinery. Patancheru also known as Patan Choru. The location has excellent approach roads. toilets and rest rooms are provided as per the requirement.64 lakhs Matrix Consulting_ 101.01 DETAILS OF THE PROJECT / INFRASTRUCTURE / CAPASITIES & PRODUCTION A. The area being on the State highway logistically is ideal to locate the unit. is a census town and mandal headquarters in Medak district located about 10 km from Hyderabad on the Hyderabad-Sholapur highway. The total cost of buildings is estimated at Rs 92. Medak district. providing 20 and 12 feet roads in the eastern and southern sides respectively for bulk movement of cargo and staff vehicles and building a Compound wall. Wheat Roller Flour Mill & Atta Chakki Plant capacities & proposed utilized capacities: Particulars Capacity of Roller Flour Mill Plant ( 120 TPD ) Capacity of Chakki Atta Plant ( 30 TPD ) 2011-12 MT/ PA 2012-13 MT/ PA 2013-14 MT/ PA 2014-15 MT/ PA 2015-16 MT/ PA 39600 9900 50% 14850 3713 39600 9900 55% 21780 5445 39600 9900 60% 23760 5940 39600 9900 65% 25740 6435 39600 9900 70% 27720 6930 Operating Capacity % Production Roller flour Mill products * Production Atta Chakki B. Land & Location of the project The 120 TPD Roller Flour Mill plant along with 30 TPD Chakki Atta Plant is proposed to be located in 2_Acres of leased land ( long term registered lease for a period of 12 years) at Survey No. packaging. Cleaning. Patancheru Mandal. Hyderabad 0 9989 040404 9 .S B A P_ Business plan_V. Buildings and other Infrastructure designed (as per details given below) to produce the following capacities. Processing is carried out in three stages – Storage. skilled labor. The drawings and building outlay are ready for execution. Administrative. The land development include leveling of 2 acres. The area has all the infrastructure facilities such as adequate power. the second building would have central partition dividing the storage space and processing space. The factory consists of processing and storage facilities. Thus the unit is located in a ideal location.94 lakhs. Administration and general structure. water resource and proximity to Power.31/A. Nadigama Village. Product Capacities / Raw materials The 8 Body Roller Flour Mill & 4 Chakki Atta Plant. Durga apartments. Grinding. security. Plan Shifters. Cleaning (preparatory) Section: The wheat contains many impurities like sand. Auto weigher. Dry de-stoner. . The machines required in Milling Section mainly consist of Roller Mills. jeep. Reverse Jet Filters. Dust Collection equipments etc. metal pieces.01 (G) Plant and Machinery & Process Technology: Total cost of machinery is estimated. Drum Sieve. Durga apartments. chafe. dirt and gunny pieces. Screening System. medium and fine particles including the portion of the flour that are separated by sifting of material following each grinding stage. Reel Machine. Hyderabad 0 9989 040404 10 . d)The miscellaneous fixed assets include furniture. magnet. brushing for removal of dust attached to the surface of grain. weigh bridge office machines & equipment. classifier. & transformer including HT (High Tension) line. dirt and gunny pieces. stitching threads. The produce is then sieved in plan shifters. The process of the cleaning is primary sieving for the removal of large size impurities. is sure to have an edge over the competitors. The Roller Mill Process is a gradual reduction process where bran and its parts are broken down in succession of relatively gentle grinding stage. c) Others: Roller Flour Mill will be fully automated and will have various other equipments such as Elevators. Pneumatic lifts are used to feed in at the top and passes from the sieves to sieves by gravity flow. The machinery suppliers extend all the necessary technical supports such as installation and upkeep. Conveyors. etc. Matrix Consulting_ 101. Bran Finishers. intensive dampener. Separator with aspirators. magnets are used in process and wheat is tempered at this stage. Air lock. Conveying System. Manufacturing Process & Technology: The technology for food processing industry is not complicated and mostly related to engineering. The machinery required for the cleaning section mainly consist of drum sieve. The bran and germ is separated as it affects the baking quality of the flour. Good qualified and experienced team of management exposed to running hi-tech plants. At each grinding stage products consist of mixture of coarse. removal of metal impurities. fire-fighting equipment. Pneumatic lifts etc. magnets separator etc. testing equipment. cleaning woods.S B A P_ Business plan_V. at Rs. b) Milling Section: The three major parts of wheat are Bran. Wheat is cleaned before In take & pre processing to remove coarse impurities like stones. details of which are as under: a) Cleaning (Preparatory) Section: Wheat procured.232 lac’s based on quotations received from various vendors. straws. flow balancer. Germ and the Endosperm. are used in pre-cleaning which improves the storability of the wheat. contains many impurities like sand. Grinding is done in Roller Mill with a pair of rolls mounted in parallel alignment that can be adjusted to do precision grinding. Rajbhavan Road. Cyclones. Cleaned wheat is stored in silos for conditioning before milling. Storage Silos: Cleaned wheat is stored in silos for the continuous process and Storage Silo making a proper blend of wheat according to the requirement as needed for the end product mix. metal pieces. Elevator. First Cleaning First Cleaning: pre cleaned wheat is further processed to remove foreign ingredients that not only reduces the yield but also affects the taste and colour of the finished goods. dust etc. Dampener. Volumetric Measure. Liquid effluent: Nil. Licenses & Regulatory permissions: The Company has obtained the necessary approvals/permissions/licenses from the various authorities as listed hereunder: S. Bran Finisher: Whatever flour remain in bran is cleaned using bran finisher and the remaining bran is packed. This breaking of wheat separating bran and endosperm is a mechanical process done by passing the wheat through Rolls running at different speed to produce a cutting and shearing action. There is no dwelling close to the factory. Grinding: For getting good extraction Gradual Reduction System of break is used to separate the bran and endosperm. Hyderabad 0 9989 040404 11 . Scourer. Rajbhavan Road. Durga apartments. The noise from the factory is very minimal. The expertise of the locals can also be used to the benefit of the unit as most of the villagers are farmers. The factory is situated adjacent to main road leading to National High Way and there is no threat to traffic congestion. The factory has a potential to employ the locals as the process involves huge man power. Flow Balancer. Item of Approval/License Status /Permission 01 02 03 04 05 06 07 SSI Registration Power Feasibility Environment VAT Registration Factory Inspector Panchayat License Estimates / Quotations Received Under process Under process Received Under process Received Received Matrix Consulting_ 101. Beat and impact Detachers are used besides the elevators to move the product from one roll to another Purification: Semolina and Middling produced at grinding stage are separated from bran by air in Purifier Machines whereby a composite fractions composed of endosperm with adhering bran are also separated. (I) POLLUTION ABATEMENT Solid Wastes: The solid waste generated is only bran which is saleable and has commercial applications. crack and get partly loose which is further tempered to have constant moisture using Intensive Dampner. Air Pollution: There is no production of any obnoxious gases any where in the process. Packaging Packaging: Since the process is of Gradual Reduction therefore at each stage end products are produced and sent pneumatically after sieving using Bolting Cloth in service Machines and the finished product are packed for delivery in market (H) Environmental Impact This project is environmental friendly. The presence of this environmental friendly unit would certainly help improve the locality as service oriented facilities are bound to come up because of the manpower employed. Automatic Water Doser for smooth milling.No.01 Second Cleaning: By absorption of water at 1st cleaning stage cellulose layer of wheat expand. Government of India has classified this in Green Category of industries. Apart from Rolls Disc. Second Cleaning Grinding Purification Bran Finisher .S B A P_ Business plan_V. which comprises 25 countries followed. Australia.873 69.814 34.S B A P_ Business plan_V. Canada and Kazhakastan.001 46. USA.483 90.369 60. by China.568 580. International Scenario of Wheat Producing Regions Resources Major wheat growing countries include China.197 99.490 65. (000 Tonnes) Countries EU-25 China India United States Russia Australia Canada World Total 2000-01 124.290 71.18 26.810 43.198 566.450 22. Total average is around 217 million hectare.553 93.615 86.550 10.680 53.900 24. and United states.641 34. India.519 581.132 16. Maximum contribution comes from European Union.552 552. followed by EU.640 76. Russia.705 50. Rajbhavan Road. Durga apartments. Africa.100 63.963 106. (Source: Multi Commodity Exchange of India Limited) World Wheat Production World production of wheat hovers around 585 million tons. and Russia.100 26.377 2001-02 113.930 2002-03 2003-04 124. China. On basis of area maximum acreage comes from India that accounts for 13% of total world average. India.299 20.828 (Source: USDA) Matrix Consulting_ 101. France. which keeps fluctuating between 210 million hectare to 230 million hectare in general. Hyderabad 0 9989 040404 12 .01 Raw Material: The basic raw material is Wheat and it is the largest produced grain in India next to Rice.231 23. Europe and America. Worldwide wheat is grown in Asia. Hyderabad 0 9989 040404 13 . All the rest contribute only 4 per cent. During 1974 – 2010. Bihar 6 per cent and Gujarat 3 per cent.P. Matrix Consulting_ 101. As expected. Wheat being one of the major staple foods all across the world demand seems to remain strong owing to increasing population.) contributes the largest share with 36 per cent of production. This is shown by the growth rates: wheat production has grown at a much faster pace compared to other food grains. Uttar Pradesh (U. Figure 1 shows the shares of different states in the national wheat production. The increase in area sown has come at the expense of coarse cereals and pulses area. wheat production grew at 5. The growth in wheat production has come from increase in yield as well as expansion of area.S B A P_ Business plan_V. Russia. Rajbhavan Road. the major wheat growing states are all in the north. Durga apartments.36 per cent. WHEAT ALL INDIA PRODUCTION IN MILLION TONS – 1974 .P. and from an increase in cropping intensity through multiple cropping. Two major consuming countries of wheat are EU. Even in the last decade.01 World wheat consumption is consistently growing.ALL INDIA PRODUCTION MILLION TONNES 90 80 70 PRODUCTION 60 50 40 30 20 10 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10* 0 ACTUAL PRODUCTION PRODUCTION TREND YEAR Nationally about 18 per cent of the net cropped area is planted to wheat. followed by Punjab with 19 per cent and Haryana with 11 per cent. wheat production is showing the fastest growth.68 per cent.) 11 per cent. USA and Pakistan. India. China. These are followed by Madhya Pradesh (M. These three northern states together contribute two-thirds of the production of wheat. Wheat has made the largest contribution to the growth of food grain production in India. Long-term trend supports the fact that is evident from above chart. Rajasthan 10 per cent. when total food grain production grew at an annual rate of 3.2010 WHEAT . These yields can be compared with 2907 kg/ha in USA. 1029 kg/ha in Russia. U. respectively. and Gujarat with 2500.P. Directorate of Economics and Statistics 2010 Another feature of wheat production is that the wheat yields vary substantially across the states. 3667 kg/ha in China and 7603 kg/ha in France (FAO 1998). follow with much lower yields of 1999 and 1625 kg/ha. by Rajasthan. 2498 and 2373 kg/ha respectively – which are close to the national average of 2583 kg/ha. Punjab and Haryana show the highest yields of 3853 and 3660 kg/ha. Hyderabad 0 9989 040404 14 . Rajbhavan Road. Durga apartments. as shown above. CROP CALENDER OF WHEAT IN INDIAN MAJOR WHEAR GROWING STATES State Assam Bihar Gujarat Haryana Himachal Pradesh Jammu & Kashmir Karnataka Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Uttar Pradesh West Bengal All India Sowing Nov(B) .S B A P_ Business plan_V. 1907 kg/ha in Australia. Bihar and M.01 Figure 1: Distribution of Wheat Production across States Gujarat 3% Rest of India 4% Bihar 6% Rajasthan 10% UP 36% MP 11% Punjab 19% Haryana 11% Source: Based on data from India.Dec(M) Nov(M)-Dec(E) Oct(B)-Nov(E) Oct(E)-Dec(B) Oct(B)-Nov(E) Oct(B)-Dec(E) Oct(B)-Dec(E) Oct(M)-Dec(E) Oct(B)-Dec(E Oct-Nov Oct(B)-Nov(E) Nov(B)-Dec(E) Oct(B)-Jan(M) Nov(B)-Dec(E) Oct-Dec Harvesting Mar(B)-Apr(E) Mar(M)-Apr(E) Feb(B)-Mar(E) Apr(M)-Apr(E) Apr(M)-Jun(E) May(B)-May(E) Jan(B)-Feb(E) Feb(M)-Apr(E Feb(B)-Mar(E) Mar-Apr Apr(B)-May(E Mar(B)-May(E) Apr(B)-Apr(M) Mar(B)-Apr(E Feb-Jun Matrix Consulting_ 101.P. These are followed. after a significant gap. respectively. switches and internal lighting is estimated at Rs 16. and have completed finalizing commission agent network all over India to sell the entire production on a continuous basis. The Power received at 33 KV would be stepped down to 415 volts by means of transformer located in the main step-down sub-station (MSDS) and would be fed into the low tension switch board located in MSDS. internal wiring.74 lakhs. (F) Project Implementation Schedule: The unit is proposing to complete the entire implementation of the project in 6 months time.SOURCE Primary Market Commission Agents Whole Sellers Processors / Flour Mills Urban Whole Sellers FCI Flour Mills Retail Shops State Civil Supply Fair Price Shops Consumers – END CONSUMPTION (D) Power & Fuel Power requirement of the Roller Flour Mill plant is estimated at 500 KVA and is proposed to be obtained from the local Power grid.00 lakhs along with HT cabling. The total cost of Power from APCPDCL is estimated at Rs 15. The unit has a 3” bore well along with storage tanks above the ground in the supply network to take care of the make up water requirement. One diesel-generating power set of 250 KVA rating at 430V.01 Procurement of Wheat will be made from Western and Northern parts of India through use of Commission agents and commission net work.S B A P_ Business plan_V. (E) Water Requirements The Flour mill Plant would require water for cleaning. Matrix Consulting_ 101. the procurement of the Raw Material does not pose any problem. Rajbhavan Road. The company has already purchased required land. With abundant availability through production and a well oiled distribution system. Durga apartments. In addition to the above around 1000 liters of water is required for human consumption and sanitation. 50 Hz is proposed as a standby to meet the emergency power requirement of vital units of the plant requiring uninterrupted power supply in case of power cuts. washing of about 10. identified and ordered equipment.000 liters of water on a continuous basis. Simplified Outline of the Marketing System of Wheat in India Farmers . Hyderabad 0 9989 040404 15 . completed all the legal formalities. Hyderabad 0 9989 040404 16 . Thus for the projected FY 2011 the results comprise of 6 months operation only. Matrix Consulting_ 101. ACTIVITY DEC JAN FEB 11 MAR 11 APRIL 11 MAY !! JUNE 11 YEAR Land Purchase Land Development Civil Works Machinery Order Receipt of machinery Electrical works & Power Erection of machinery Trial Production Commercial Production • • • • The project is proposed to be executed for commercial production by June 2011 The company had already started construction of the factory The machineries are being finalized. Rajbhavan Road.S B A P_ Business plan_V.01 The project implementation is proposed to be as per the following chart. Durga apartments. 65 219.74 1079.70 304.29 15.88 1.81 4917.33 294.07 1.00 2992.08 0.00 13.43 1318.81 226.02 458.35 354.47 0. Hyderabad 0 9989 040404 17 .00 4917.21 1095.14 2.84 2.00 5746.32 0.61% 205.00 Anex 3 Anex 4 3.00 Loan % 0. Means of finance & the projected repayment capabilities of the company are depicted below for having an understanding about the company’s potential for implementing the project and repayment of the loans.79 342.94 5.86% 154.00% 75.00 1093.00% 25% 14.40 4.73 228.31 1095.00 578.70 137.50 9.S B A P_ Business plan_V.00 10.60 0.39 228.00 1332.25 80.19 7. Machinery & Utilities (e) Electricity Deposit (f) Power Connectivity / Cables / Pole's (g) Preop Exp) (h) Office and other misc equipment (i) Contingencies (j) Working Capital Margin Total Project Cost Anex1 Anex 1 Anex 2 Rs lacs on lease 1.00% Loan 0.38 4.00% 0.68 285.No Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 1 2 3 Domestic Sales(Gross) Export Sales Net Sales % rise/fall (-) in net sales Operating Profit Profit Before tax PBT/ Sales (%) Profit After Tax Cash Accrual Paid Up Capital TNW Adjusted TNW TOL/TNW (times) Adjusted TOL/TNW NWC Current Ratio 2992.95 324.16% 90.94 0.21 0.97 0.46 50.47 580.37 309.09 5.75 4513.44 4.09% 238.01 228.75 0. Project Cost (a) Land (b) Land.64 231.57 0.71 0.85 387.50 7.58 228.71 844.00% 70.50 228.00% 0.89 252.62 Projected Performance/Financial Indicators: S.00 92.00 7.98% 235.00% 75.37 228.94 132.75 0.16 241.32 201.97 110.00 473.00% 75.26 2.00 5738.01 CAPEX & PROJECT FINANCIALS The total CAPEX.16 5327.67 5738.19 0.60 259.75 1.00 5327.92 4 5 6 7 8 9 10 11 12 13 14 15 184. Durga apartments.27% 179.08 7.00% 50.89 1.00 318.24 349.44 5746.03 281.70 388.29 0.00% 75.00 4513.32 8.75 8.71 Matrix Consulting_ 101.73 398.96 6. Rajbhavan Road.30 0.13 1.56 1.83 638.75 1.00 350.00 858.74 299.44 3.69 0.46 0. Development (c ) Buildings and construction (d) Plant.00 652.15 5.92 124. 56 2013 458.45% 47 433.48 3.92 192.47 7.03 2012-13 6.42 44.55 22.35 Net Sales /TTA (times) PBDIT EFFICIENCY RATIOS Particulars 1 2 3 4 5 6 Net Sales/ Total Tangible ( times ) As on 31st March 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 3.73% 6.50 108.91% 47 3.04 79. Durga apartments.92% 47 SECURITY MARGIN % S.29 4.45% 47 435.00 0.74% 17.61 1318.54 3.90% 6.18% 53 1.60% 4.86% 31.60% 32.10% 6.42% 33.06 66.61 ./(-) Inc.28 24.53% 4.66% 394. Increase in Quasi Equity Less : Dividend TNW 90.30 13.70 228.45% 6. i Profit/(-)Loss after Tax ii Increase in Capital iii Dec.68 2013-14 6.92 0.34 4.58 1079.71 5.80 24.00% Movement of TNW Particulars Opening balance Add.39% 53 231.69 844.00 304.87% 47 401.73 59.85 0.21 11.35 2015-16 6.85 100.67% 301.50 155.No 1 2 3 4 5 6 Particulars Current Ratio TOL/TNW (times) PBDIT/Interest (times) PAT/Net Sales (%) ROCE (%) (PBDIT/TA) INV+REC.53% 41.45 23.61 4.50 178.67 3.91% 45 2.03 238.15% 26. Hyderabad 0 9989 040404 18 638.29 154.64 4.66% 33.00 0.61 262.in Intangible Assets iv Inc.88 Matrix Consulting_ 101.17% 45 341.89 3.78% 4.71 1.60 21.45 48.48% 347.93 PBT/ Total Tangible Assets (%) Operating Cost to sales (%) Bank Finance/ Ct.00 207.16 0.30 332.14 0.50 202.28 66. Assets (%) Inventory+ Receivables to net PBDIT RISK RATING RELATED RATIOS S.01 Other Ratios 1 2 3 Operating Cost/ sales % 2011-12 6.66% 4.83 3.37% 207.68 2011 0.44 0.33 1.00 -14.17% 47 2.23 122.29% 6.74% 3.32 179.04% 6.54% 47 4.07 2014-15 6./Sales (days) 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 1.06 24.No 1 2 3 4 Particulars Written Down Value Loan Outstanding Margin Security Margin % 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 441.81 205.88 2014 638. Rajbhavan Road.18% 3.30 8.35 2016-17 6.11 33.21 3.00 2012 304.S B A P_ Business plan_V.in Reserves v.18% 53.33% 47 371.03% 25.30 9.66% 25.50 132.78% 17.89 235..60 66.13 4.33% 254.55 21.10% 30.58 2015 1079.67 0.43 4.69 2015 844./(-) \ Dec.54 52.56 458.50 4. 11 0.10 0.23 9.11 493.44 240.61% 25.83 277.11 34.00 13 455.01% 13 33 3 2013-14 742.11 455.23 0.30 0.29 92.23 8.00 247.11 39.17 2014-15 86. Cr. To Net sales (days) Rec.05 2016-17 92.39% 6.35% 12.08 0.00 79.64% 53.77 350.00 70.45% 2.23 10.00 0.00 41.00 76.10 70.37 0.00 350.00 590.65% 32.11 531.26 240.50 410.05 638.75 110.72 0.00 12 277.27 0.43% 13 34 3 2014-15 927.00 17.12 2012-13 73.98% 7.07 31.00% 13 34 3 Matrix Consulting_ 101.02 0. To purchases (days) 2011-12 449.10 70.60% 13 34 3 2016-17 1375.00 642.23 0.11 0.94 0.00 24.00 91.00 Nil Nil Nil Assessment of WC facilities: Particulars Raw Material : a) Indigenous Months Stock in Process Finished Goods Months Other Spares : a) Indigenous Months Receivables : a) Domestic Months Receivables Months S.01% 3.31 1.17% 5.94 0.75 241.31 1.07 810.00 2013-14 79.87% 3.00 0.89 0. Rajbhavan Road. in lacs) Limits CC TL Total FB Limits State Bank of Hyderabad % 100% 100% 100% Total Cons/ MBA 240.40% 15.83 28. Cr.75 240.31 1.84 580.07 240.67 1.00 62.57% 14 25 3 2012-13 582.00 53.S B A P_ Business plan_V.66% 17.72 0.03 2015-16 92.00 0.23 0. Hyderabad 0 9989 040404 19 .00 98.00 0.96 101.55% 13 34 3 2015-16 1142.23 10.15 Assessed Bank Finance: Particulars Total CA Other CL Working Capital Gap Net Working Capital Assessed Bank Finance NWC to TCA (%) Bank Finance to TCA % S. To TCA (%) Other CL to TCA (%) Inv.21 0.10 52.33% 4.10 70.00 21.26 7.66 0.31 104.72 106.00 13 493.00 12 532.21 481.16 39.00 0.67 1. to gross sales (days) S.00 84.48% 4.44 1095.23 0.77 0.10 70.92 0.92% 21.01 Credit Limits – Existing and Proposed Credit Limits (Proposed): (Rs.25 0.17 0. Creditors Months Other Creditors Other Current Assets 2011-12 71.72 1335.07 403.00 0.75 240.00 114.31 1.11 532.00 13 403.00 77.11 36.98 0.03 0.23 0.00 12 531.59% 9.84 240.31 1. Durga apartments.47% 41.89% 0.26 398.04 1.11 39.88 820.31 1.04 1.52 98.05 0.00 97.23 10.22 1050. The data also reveals a comparatively high ratio of equity to debt depicting a growing strong capital base of the unit over loan funds in the business. plans for repayment of the loan has been worked out and enclosed as annexes. The pictures emerges from a glance of the date. By the end of the third year the company shall be self sufficient to meet the enhanced working capital limits /or /for expansion or diversification PROJECTED CASH FLOWS A projected cash flow statement of the company at the end of the projected 6 years of working has been drawn up and given in the statement enclosed. i. Marginal increase has been provided in other operational cost to cover effects of possible inflation.e. Matrix Consulting_ 101. Present Limit Nil Nii Proposed Limit Rs 240. The term loan is thus proposed to be repayable in 5 years i.01 Present Proposal with State Bank of Hyderabad Facility CC limit (Hypothecation of Receivables) Term Loan Securities Repayment of Term loans.00 Lacs 40% collateral security apart from primary assets PROJECTED OPERATIONAL RESULTS Detailed data on operational expenses and profits for the forthcoming 6 years of projected operations have been worked out and given in the statement annexed. Rajbhavan Road. CASH GENERATION & REPAYMENT SCHEDULE Based on the estimates of cash generation from the operations and considerations the need to retain certain funds for meeting any other contingent situations.00 Lacs Rs 350. prices of inputs and selling prices of outputs have been kept at constant rates assuming that any increase in inputs cost would be effect by proportionate increase in the selling price.e 60 monthly installments along with interest with a initial holiday of 12 months. spread for the 6 years i. Hyderabad 0 9989 040404 20 . Durga apartments. While working out estimates.e first 6 months for project implementation and the balance 6 months for stabilizing the cash flows. • • The Project implementation has commenced and is proposed to be completed for commercial production by June 2011.S B A P_ Business plan_V. Increasing levels of reserve accumulation and decreasing borrowings on the one hand and increasing levels of current assets on the other with comparatively very less amount blocked in fixed capital. Rajbhavan Road.. TECHNO ECONOMICAL ASPECTS The Group are well experienced in procuring Wheat and trading in Wheat based products for the last 5 years. A suitable and broad based marketing network is already available which could be taken expanded further if found necessary to achieve for proposed sales targets. Thus the venture is a thoroughly well planned organization and is a sound and viable proposition. A considerable part of cash generation is also proposed to be ploughed back every year to supplement future working capital requirement. It has drawn up the scheme after adequately studying Wheat and Wheal products market in india. The firm has already made a committed commission agents network in place thus the sale is firmly committed.S B A P_ Business plan_V. FINANCIAL ASPECTS The Capital investment proposed is comparatively low and the founders have necessary resources to bring in and organize the proposed capital. The plans have been made in such a way that the salability of the market could be almost assured with least marketing cost. The projected operational results show reasonable profit generation by the unit to enable it to meet its debt servicing obligations. The core founders are qualified and experienced persons and posses all required technical know-how in selling their products and commercial expertise to run the business of a day to day basis. Hyderabad 0 9989 040404 21 . The founders would be on full time occupation with the company. The financial assistance sought from Bank is well within normal of lending. Durga apartments.01 CONCLUDING REMARKS GENERAL From the foregoing detailed analysis of the proposal towards Term loan and working capital finance for Shri * Pvt Ltd it can be concluded that the Company has been extremely careful and selective in preparing its business program. Matrix Consulting_ 101.