Project Report on Processing of Atta

P R O J E C T R E P O R T

O N

P R O C E S S I N G O F A T T A

L O C A T I O N :

P l o t n o : 6 5 , E - B l o c k , I n d u s t r i a l p a r k , A u t o n a g a r V i s a k h a p a t n a m d i s t

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T A B L E O F C O N T E N T S

S . N O P A R T I C U L A R S P A G E N O

0 1 . P R O J E C T A T A G L A N C E 3 - 4

0 2 . I N T R O D U C T I O N 5 - 5

0 3 . S C O P E O F T H E P R O J E C T 6 - 6

0 4 . C O N S T I T U T I O N A N D S E C T O R 7 – 7

0 5 . B A C K G R O U N D O F T H E P A R T N E R S 8 - 9

0 6 . L O C A T I O N A N D I T S A D V A N T A G E S 1 0 - 1 0

0 7 . R A W M A T E R I A L S 1 1 - 1 1

0 8 . P R O C E S S F L O W C H A R T 1 2 - 1 2

0 9 . P R O J E C T C O S T & M E A N S O F F I N A C N E 1 3 - 1 3

1 0 . D E T A I L E D N O T E S O N E S T I M A T E D P R O J E C T C O S T 1 4 - 1 5

1 1 . D E T A I L E D N O T E S O N M E A N S O F F I N A N C E 1 6 - 1 6

1 2 . S W O T A N A L Y S I S 1 7 - 1 7

1 3 . I M P L E M E N T A T I O N S C H E D U L E 1 8 – 1 8

1 4 . P R O J E C T B E N E F I T S 1 9 – 2 0

1 5 . U T I L I T I E S A N D S E R V I C E S 2 1 - 2 1

1 6 . A S S U M P T I O N S 2 2 - 2 3

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01. PROJECT AT A GLANCE

1 . N a m e o f t h e F i r m : D E S H M I T H A F O O D I N D U S T R Y

2 . W o r k s & O f f i c e : P l o t n o : 6 5 E - B l o c k i n d u s t r i a l p a r k A u t o n a g a r V i s a k h a p a t n a m d i s t3 . L i n e o f A c t i v i t y : P r o c e s s i n g o f A T T A

4 . S e c t o r : S m a l l S c a l e

5 . C o n s t i t u t i o n : P r o p r i e t a r y

6 . N a m e s o f t h e P a r t n e r s

7 . P r o j e c t C o s t & M e a n s o f F i n a n c e : ( R s . i n L a k h s )

P r o j e c t c o s t A m o u n t M e a n s o f F i n a n c e A m o u n t

L a n d & B u i l d i n g s l e a s e P a r t n e r ’ s C a p i t a l 4 7 . 0 0

P l a n t & M a c h i n e r y 2 5 . 0 0

E r e c t i o n 2 . 0 0 W o r k i n g c a p i t a l l o a n 4 0 . 0 0

W o r k i n g c a p i t a l 6 0 . 0 0

T o t a l 8 7 . 0 0 T o t a l 8 7 . 0 0

P a r t n e r ’ s C o n t r i b u t i o n : 5 4 %

.

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02. INTRODUCTION

W h e a t f l o u r m i l l i n g i s a n i m p o r t a n t i n d u s t r y , s u p p l y i n g f l o u r o f W h e a t t o t h e

c o m m o n p e o p l e a s t h e f l o u r a r e t h e r e g u l a r f o o d t a k e n b y e s p e c i a l l y b y t h e

p e o p l e o f s o u t h I n d i a n s . F l o u r m i l l i n g h a s b e e n k n o w n f r o m a v e r y e a r l y

d a t e . I d l y r a v a i s u s e d f o r d a y t o d a y f o o d p r o d u c t s i n h o u s e s o f r i c h a n d

p o o r f o r v a r i e t y o f t a s t e s a n d h a s s e v e r a l u s e s a c r o s s t h e c o u n t r y a n d

t h r o u g h o u t t h e y e a r . 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 dough’s 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.

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Atta is the flour used to make most South Asian flatbreads, such as chapati, roti, naan and puri. Most atta

is milled from the semi-hard wheat varieties, also known as durum wheat, that comprise 90% of the Indian

wheat crop, and is more precisely called durum atta.

Hard wheats 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 is 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.

HISTORY

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 and Pakistan a 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.

Wheat powder / flour, atta, sooji, maida

In India and Pakistan wheat products like 'wheat powder' or 'wheat flour', 'atta flour', 'maida flour' and 'sooji'

(semolina, also known as 'rava') are available in the market. There is technical difference between maida flour

and sooji flour in terms of bran content; Maida has negligible bran content. Maida flour is used mainly for making

bhaturas and naan, types of Indian breads similar to roti or chapati, while sooji is used mainly in the preparation

of a delight "kesari".

Whole wheat grains

Whole wheat grains contain all three parts of the kernel (kernel means a grain or seed, as of a cereal grass,

enclosed in a husk). There are, mainly, three parts for a wheat grain.

Parts of a wheat grain

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1. Germ (2%) – Embryo of the wheat kernel.

2. Endosperm (85%) – Nutritive tissue surrounding the embryo.

3. Bran – Multi-layered outer skin of the kernel.

India/Pakistan: products of pulverized wheat grains

Wheat powder/flour – 'Whole Grain' (Mixture of germ, endosperm and bran)

Atta flour – mixture of endosperm and bran

Maida flour – endosperm

Sooji/rava – coarse endosperm

Preparation

An old manual grinder to make Atta

The Atta flour found in commerce varies in fiber content from near 0% to 12%. Wholemeal (US whole wheat)

atta is obtained from grinding complete wheat grains. It is creamy brown in color and quite coarse compared to

other types of flour.

Traditionally, atta is made by stone grinding, a process that imparts a characteristic aroma and taste to the

bread. The high bran content of wholemeal atta makes it a fiber-rich food. This may help to regulate blood sugar

as well have other health benefits. The temperatures attained in a chakki (mill or grinder, traditionally from

stone), produced by friction, are of the order of 110–125 deg C. At such high temperatures,

the carotenes present in the bran tend to exude the characteristic roasty smell, and contribute to the sweetness

of the atta.

The various quality control parameters for the atta industry are ash content, moisture content, acid insoluble

ash, water absorption, alcoholic acidity, granulation profile, damaged starch and gluten content.

03. SCOPE OF THE PROJECT

T h e e n v i s a g e d p r o j e c t i s t o s e t u p a t S u r v e y N o : P l o t n o : 6 5 E - B l o c k i n d u s t r i a l p a r k A u t o n a g a r V i s a k h a p a t n a m d i s t . f o r m i l l i n g o f A t t a e t c . T h e p a r t n e r s h a v e a c q u i r e d t h e l a n d o n l e a s e . T h e t o t a l p r o j e c t o u t l a y i s R s . 8 7 . 0 0 l a c s . T h e i n s t a l l e d c a p a c i t y o f t h e p r o p o s e d f i r m i s 5 M T S p e r d a y i n o n e s h i f t o p e r a t i o n i n 3 0 0 w o r k i n g d a y s a n d t h e t o t a l a n n u a l C a p a c i t y o f t h e f i r m i s 1 5 0 0 M T S . T h e o p e r a t i n g c a p a c i t y i s a s s u m e d a t 6 0 % , 6 5 % , & 7 0 % i n 1 s t , 2 n d & 3 r d y e a r o n w a r d s .

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04. CONSTITUTION & SECTOR

C O N S T I T U T I O N :

A u n i t b y n a m e a n d s t y l e “ D E S H M I T H A F O O D I N D U S T R Y ” . T h e l i n e o f a c t i v i t y

i s t o p r o c e s s i n g o f A t t a . T h e f i r m I S a t S u r v e y N o : p l o t n o 6 5 , E - B l o c k

i n d u s t r i a l p a r k A u t o n a g a r V i s a k h a p a t n a m 5 3 0 0 1 2 A n d h r a P r a d e s h .

S E C T O R :

T h e f i r m c o m e s u n d e r S m a l l S c a l e S e c t o r a n d a l s o u n d e r P r i o r i t y S e c t o r . T h e

F i r m h a s a l r e a d y o b t a i n e d R e g i s t r a t i o n C e r t i f i c a t e f r o m t h e D i s t r i c t I n d u s t r i e s

C e n t r e , v i s a k h a p a t n a m .

06. LOCATION AND ITS ADVANTAGES

L a n d :

T h e p r o p o s e d l o c a t i o n o f t h e F i r m i s s i t u a t e d a t P l o t n o : 6 5 E - B l o c k i n d u s t r i a l p a r k A u t o n a g a r V i s a k h a p a t n a m d i s t a n d A n d h r a P r a d e s h . T h e s i t e i s l o c a t e d c e n t r a l l y n o t i f i e d b a c k w a r d a r e a . T h e l o c a t i o n o f t h e i n d u s t r y h a s c o n s i d e r a b l e i n f l u e n c e o n t h e t e c h n o - e c o n o m i c a l f a c i l i t y o f t h e p r o j e c t . T h e r e a r e v a r i o u s f a c t o r s c o n t r i b u t i n g t h e f u n c t i o n i n g o f a n i n d u s t r y a n d f o l l o w i n g a r e t h e p r i m a r y f a c t o r s t a k e n i n t o c o n s i d e r a t i o n .

R e a s o n s f o r S e l e c t i o n o f t h e S i t e :

A d e q u a t e R a w M a t e r i a l s

A d e q u a t e l a b o r a t e c o n o m i c a l r a t e .

A d e q u a t e s u p p l y o f w a t e r t h r o u g h o u t t h e y e a r .

T h e s i t e i s w e l l c o n n e c t e d w i t h r o a d f a c i l i t y .

B a n k i n g f a c i l i t i e s a n d G o v e r n m e n t s u p p o r t s .

A d e q u a t e T r a n s p o r t f a c i l i t i e s f o r e c o n o m i c a l t r a n s p o r t a t i o n o f f i n i s h e d

p r o d u c t a n d s p a r e p a r t s .

N e a r e s t t o t h e m a r k e t .

A v a i l a b i l i t y o f l a b o u r a t e c o n o m i c a l r a t e .

A d e q u a t e p o w e r s u p p l y .

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A s t h e a r e a i s d e v e l o p e d , t h e s e t t i n g u p o f a n i n d u s t r y i n t h i s r e g i o n

w i l l h e l p t h e p e o p l e t o p r o g r e s s b o t h s o c i a l l y a n d e c o n o m i c a l l y .

07. RAW MATERIALS

R e q u i r e d r a w m a t e r i a l s a r e a v a i l a b l e i n o p e n m a r k e t a n d t h e W h e a t g r a i n c a n

b e g o t f r o m V i s a k h a p a t n a m , V i z i a n a g a r a m d i s t a n d S r i k a k u l a m d i s t w h i c h a r e

n e a r t o t h e p r o p o s e d F i r m . T h e r e i s n o p r o b l e m a n t i c i p a t e d r e g a r d i n g t h e

a v a i l a b i l i t y o f r a w m a t e r i a l s .

0 8 . M A N U F A C T U R I N G P R O C E S S

Wheat is first cleaned thoroughly to remove dust, stone and other foreign matters clean wheat is tempered

before grinding by treating with water so that the bran is separated from the endosperm. The tempered wheat is

crushed between corrugated rollers (Break rolls). The first break rolls are set relatively far apart to grind the

wheat lightly, while successive break yield finer and finer products. The first break is separated by sieving or

bolting in to very fine particles (flour), intermediate particles (middlings) and coarse particles (stock). The stock

is then sent to second break rolls. This process may continue through 5 to 6 breaks. The stock contains pieces of

endosperm and bran and the stock from the last break is principally bran. The middlings contain endosperm,

bran and germ which are then successively classified and some of the bran removed are sent to reduction rollers.

These are smooth rollers, but like the break rolls they are graduated so that successive reduction becomes finer

and finer. After each reduction, sifters separate the flour, middling and stock, this process is continued until

most of the endosperm has been removed as flour and most of the bran has been separated in the sifters

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09. PROCESS FLOW CHART

T h e p r o c e s s o f m a n u f a c t u r i n g q u a l i t y g r a m f l o u r i n v o l v e s f o u r m a j o r

p r o c e s s e s , a s e x p l a i n e d b e l o w .

E l i m i n a t e p e b b l e s , b r o k e n g r a i n s a n d o t h e r i m p u r i t i e s f r o m

W h e a t .

B a s e d o n p h y s i c a l p r o p e r t i e s o f W h e a t , r e m o v e o t h e r

c o l o u r e d g r a m h a l v e s . W a t e r c o n t e n t , i f a n y , s h o u l d b e

r e m o v e d b y d r y i n g t o m a i n t a i n m i n i m u m 1 2 t o 1 4 % m o i s t u r e .

T h e g r a d u a l m i l l i n g s y s t e m s h o u l d b e a d o p t e d f o r m i l l i n g a n d

o p e r a t i o n c o n s i s t s o f b r e a k i n g , s c a l p i n g a n d p u r i f i c a t i o n ,

r e d u c t i o n a n d d r e s s i n g .

S o m e t i m e s , f i n i s h e d e x c e l l e n t f l o u r ( b e s a n ) i s m i x e d t o

o b t a i n a s t a n d a r d a n d u n i f o r m d e s i r e d p r o p e r t i e s ,

c h a r a c t e r i s t i c s a n d c o l o u r .

T h e p r o c e s s i s s i m p l e a n d s a m e f o r F l o u r M i l l i n g .

09. PROJECT COST & MEANS OF FINANCE

R s i n l a c s

P r o j e c t c o s t A m o u n t M e a n s o f F i n a n c e A m o u n t

L a n d & B u i l d i n g s l e a s e P a r t n e r ’ s C a p i t a l 2 3 . 0 0

P l a n t & M a c h i n e r y 5 8 . 0 0 T e r m l o a n 4 5 . 0 0

E r e c t i o n 2 . 0 0 W o r k i n g c a p i t a l l o a n 2 0 . 0 0

P & P E x p e n s e s 1 . 0 0

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Cleaning

Conditioning

Milling

Finishing

W o r k i n g c a p i t a l 2 7 . 0 0

T o t a l 8 8 . 0 0 T o t a l 8 8 . 0 0

P a r t n e r ’ s C o n t r i b u t i o n : 2 6 . 0 0 %

10. DETAILED NOTES ON PROJECT COST

L a n d a n d b u i l d i n g :

T h e p r o p o s e d F i r m i s s e t u p o n l e a s e a t P lo t no :65 E -B lock i ndus t r i a l pa rk

Au tonaga r V i sakhapa tnam d i s t a n d A n d h r a P r a d e s h . T h e   p a r t n e r s a l r e a d y

a c q u i r e d l a n d o n l e a s e f o r s e t t i n g u p t h e F i r m . T h e l o c a t i o n i s q u i t e

s u i t a b l e f o r s e t t i n g u p t h e F i r m .

P l a n t & M a c h i n e r y :

T h e f o l l o w i n g m a c h i n e r y w o r t h o f R s . 5 8 . 0 0 l a c s a r e r e q u i r e d t o r u n t h e

F i r m . T h e P a r t n e r s h a v e a l r e a d y a p p r o a c h e d r e p u t e d s u p p l i e r s , a n d

o b t a i n e d q u o t a t i o n s a n d e n c l o s e d t h e s a m e f o r y o u r r e f e r e n c e .

E x p e n s e s i n c o n n e c t i o n w i t h E r e c t i o n :

A p r o v i s i o n o f R s . 2 . 0 0 l a c s p r o v i d e d t o w a r d s I n s t a l l a t i o n E x p e n s e s i n t h e

p r o j e c t c o s t , a n d i t i s c o n s i d e r e d r e a s o n a b l e .

P r e l i m i n a r y & P r e o p e r a t i v e E x p e n s e s :

T h e F i r m m a d e a p r o v i s i o n o f R s . 1 . 0 0 l a c s t o w a r d s P r e l i m i n a r y &

P r e o p e r a t i v e E x p e n s e s i n t h i s p r o j e c t c o s t a n d i t i s c o n s i d e r e d

r e a s o n a b l e .

W o r k i n g C a p i t a l :

A n a m o u n t o f R s . 4 0 . 0 0 l a c s p r o v i d e d w o r k i n g c a p i t a l i n t h i s p r o j e c t . T h e

d e t a i l e d w o r k i n g r e q u i r e m e n t p l a c e d a s a n n e x u r e .

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11. DETAILED NOTES ON MEANS OF FINANCE

C A P I T A L :

T h e p a r t n e r ’ s c a p i t a l w a s f i x e d a t R s . 2 3 . 0 0   L a c s w h i c h w i l l b e c o n t r i b u t e d

b y a l l t h e f i v e p a r t n e r s a n d i t w i l l w o r k s o u t 2 6 % o f t h e p r o j e c t c o s t o f

R s . 8 8 . 0 0 l a c s .

T E R M L O A N :

T h e F i r m d e s i r e s t o a v a i l T e r m L o a n o f R s . 4 5 . 0 0 l a c s f r o m   B a n k / F i n a n c i a l

I n s t i t u t e t o m e e t p a r t c o s t o f t h e p r o j e c t c o s t , w h i c h w o r k s o u t t o 5 1 . 1 3 %

o f t h e t o t a l p r o j e c t c o s t o f R s . 8 8 . 0 0 l a c s . T h e a m o u n t w o u l d b e r e p a y a b l e

i n 2 8 q u a r t e r l y i n s t a l l m e n t s o f R s . 1 . 6 1 l a c s e a c h w i t h a m o r a t o r i u m o f

t w e l v e m o n t h s f r o m t h e d a t e o f c o m m e n c e m e n t o f C o m m e r c i a l P r o d u c t i o n .

H o w e v e r , t h e i n t e r e s t o n t h e t e r m l o a n w o u l d b e p a y a b l e a s a n d w h e n i t i s

a p p l i e d o n t h e a c c o u n t . T h e d e t a i l s o f t h e r e p a y m e n t p r o g r a m m e d a r e

p l a c e d i n t h i s r e p o r t .

W O R K I N G C A P I T A L L O A N :

T h e F i r m i s e l i g i b l e f o r w o r k i n g c a p i t a l l o a n ( c a s h c r e d i t l i m i t ) o f R s 4 0 . 0 0

l a c s i n t h i s p r o j e c t .

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12. SWOT ANALYSIS

S t r e n g t h :

1 ) T h e F i r m i s p r o p o s e d “ D E E S H M I T A F O O D I N D U S T R Y ” .

2 ) T h e P a r t n e r s h a v e s t u d i e d a n d g o t k n o w l e d g e i n p r o c e s s i n g o f A t t a a n d

i t s m a r k e t i n g .

3 ) A v a i l a b i l i t y o f L a b o u r .

4 ) A v a i l a b i l i t y o f r a w m a t e r i a l .

B ) W e a k n e s s :

T h e F i r m h a s t o c o m p e t e w i t h t h e e x i s t i n g A t t a m a n u f a c t u r e s i n t h e o p e n

m a r k e t . H o w e v e r , e x i s t i n g F i r m s a r e f a r a w a y f r o m t h e r a w m a t e r i a l s o u r c e

t h e F i r m c a n c o m p e t e w i t h t h e m . T h e F i r m i s o n e o f i t s k i n d s i n t h e a r e a

w h e r e t h e m a r k e t p o t e n t i a l a s w e l l a s r a w m a t e r i a l i s s u b s t a n t i a l .

C ) O p p o r t u n i t i e s :

T h e f i r m h a s a n o p p o r t u n i t y t o e n h a n c e t h e e x i s t i n g B u s i n e s s a n d p r o c e s s

p r o d u c t s .

( D ) T h r e a t s :

T h e p r o p o s e d F i r m i s a n e w F i r m l o c a l m a r k e t . T h e P r o c e s s i n g o f

m a n u f a c t u r i n g o f F l o u r i n t h e F i r m h a s t o c o m p e t e w i t h t h e l a r g e m a l t y

n a t i o n a l i n d u s t r i e s , w h o a r e i n t h e m a r k e t . I n b a l a n c e , t h e r e i s a d e q u a t e

m a r k e t s h a r e f o r t h e F i r m i n v i e w o f t h e d e m a n d s u p p l y g a p a n d a l s o t h e

p o s s i b i l i t i e s o f e x p o r t t o o t h e r s t a t e s k e e p i n g i n v i e w t h e e v e n t u a l

d i v e r s i f i c a t i o n i n t o t h e m a n u f a c t u r e o f h i g h q u a l i t y F l o u r . T h e F i r m w o u l d

Page 12 of 16

b e i n a p o s i t i o n t o c o u n t e r i n t h e t h r e a t s i f a n y , b e c a u s e o f G o v e r n m e n t

e n c o u r a g e m e n t t o s m a l l - s c a l e i n d u s t r i e s .

1 4 . P R O J E C T B E N E F I T S :

I t i s h i g h l y p r o f i t a b l e p r o j e c t .

I t h a s e x c e l l e n t g r o w t h p o t e n t i a l .

T h e r e i s a r e a d y m a r k e t f o r p r o d u c t “ A t t a ” .

T h e r e i s a w i d e v a r i e t y , e a s y a v a i l a b i l i t y a n d e v e r l a s t i n g s u p p l y o f

c h e a p r a w m a t e r i a l s .

I t i s a s o c i o - e c o n o m i c p r o j e c t w i t h v a s t e m p l o y m e n t p o t e n t i a l .

I t h a s s h o r t g e s t a t i o n a n d p a y b a c k p e r i o d .

T h i s p r o j e c t h e l p s i n c o n s e r v a t i o n o f n a t u r a l r e s o u r c e s a n d m a i n t e n a n c e

o f e c o l o g i c a l b a l a n c e .

C o n s i d e r i n g t h e i m p o r t a n c e o f a l t e r n a t e e n e r g y s o u r c e s a n d t h e i r v a s t

p o t e n t i a l i n t h e c o u n t r y , t h e g o v e r n m e n t h a s a n n o u n c e d a s e r i e s o f f i n a n c i a l

i n c e n t i v e s f o r i n s t a l l a t i o n a n d p r o m o t i o n o f t h e s e i n d u s t r i e s i n a l m o s t a l l

s t a t e s t o s a v e f r o m e n e r g y c r i s i s a n d t o s a v e t h e o u t g o i n g f o r e i g n e x c h a n g e

f o r p u r c h a s i n g o f c r u d e p e t r o l e u m o i l . T h e s e f i n a n c i a l i n c e n t i v e s a r e a s

f o l l o w s :

Page 13 of 16

1 5 . U T I L I T I E S A N D S E R V I C E S

P O W E R :

T h e f i r m r e q u i r e s 7 5 H . P . o f p o w e r s u p p l y u n d e r L . T . L i m i t s . N o

p r o b l e m s a r e a n t i c i p a t e d w i t h r e g a r d t o o b t a i n i n g o f p o w e r s u p p l y .

W A T E R :

T h e f i r m r e q u i r e s 1 0 0 0 L i t e r s o f w a t e r p e r d a y , f o r d o m e s t i c p u r p o s e . A

p r o v i s i o n i s m a d e f o r b o r e w e l l a n d o v e r h e a d t a n k i n t h e s c h e m e u n d e r

t h e h e a d C i v i l W o r k s .

E F F L U E N T S :

T h e r e a r e n o h a r m f u l e f f l u e n t s g e n e r a t e d i n t h e p r o c e s s . P o l l u t i o n f r e e

i n d u s t r y . N o a p p r o v a l i s r e q u i r e d .

T R A N S P O R T A T I O N :

T h e p r o p o s e d F i r m i s l o c a t e d a t P l o t N o 6 5 , E B l o c k , I n d u s t r i a l P a r k ,

V i s a k h a p a t n a m ( D i s t ) , t h e M a i n R o a d , . T h e r e i s   n o p r o b l e m f o r

t r a n s p o r t a t i o n o f r a w m a t e r i a l a n d f i n i s h e d g o o d s .

M A N P O W E R R E Q U I R E M E N T S :

T h e F i r m w i l l b e e m p l o y i n g 1 0 N o o f w o r k e r s b e s i d e s 3 N o o f

a d m i n i s t r a t i v e s t a f f . A l l t h e a b o v e p e r s o n s c a n b e r e c r u i t e d l o c a l l y

w i t h o u t a n y d i f f i c u l t i e s .

Page 14 of 16

1 6 . A S S U M P T I O N S

A s s u m p t i o n s u n d e r l y i n g f o r p r e p a r a t i o n o f F i n a n c i a l S t a t e m e n t s :

I n s t a l l e d C a p a c i t y :

I n s t a l l e d C a p a c i t y : 5 M T S / d a y i n o n e s h i f t o p e r a t i o n s o f 8 h o u r s

N o o f W o r k i n g d a y s : 3 0 0 d a y s

I n s t a l l e d C a p a c i t y : 3 0 0 * 5 = 1 5 0 0 M T S @ 1 0 0 % C a p a c i t y

O p e r a t i n g C a p a c i t y :

O p e r a t i n g C a p a c i t y i s a s s u m e d a s u n d e r :

1 s t Y e a r 2 n d Y e a r 3 r d Y e a r

6 0 % 6 5 % 7 0 %

A t t a 9 0 0 9 7 5 1 0 5 0

C o s t o f R a w M a t e r i a l s :

Raw materials Requirement Description:

S . n o N a m e o f t h e P r o d u c t Y i e l d % Q t y ( M T ) R a t e ( M T ) A m t ( l a c s )

1 . W h e a t G r a n u l e s 1 0 0 % 9 0 0 1 0 0 0 0 9 0 , 0 0 , 0 0 0 . 0 0

2 G u n n y B a g s 9 0 0 0 0 1 5 . 0 0 1 3 , 5 0 , 0 0 0 . 0 0

1 0 3 . 5 0

S t o r e s & S p a r e s :

S t o r e s a n d S p a r e s a r e e s t i m a t e d o f R s . 6 0 , 0 0 0 i n a y e a r .

P o w e r & F u e l :

P o w e r a n d F u e l i s e s t i m a t e d a s R s . 1 . 2 0 l a c s . P e r a n n u m

Page 15 of 16

W a g e s :

W a g e s a r e c a l c u l a t e d a s u n d e r

S k i l l e d W o r k e r s 2 N o . * R s . 4 , 0 0 0 / - P e r M o n t h = 8 , 0 0 0

U n s k i l l e d W o r k e r s 5 N o s . * R s . 2 , 0 0 0 / - P e r M o n t h = 1 0 , 0 0 0 _ _ _ _ _ _ _ _ _ _

1 8 0 0 0 * 1 2 = 2 , 1 6 , 0 0 0

o r s a y : 2 . 1 6 l a c s

R e p a i r s a n d M a i n t e n a n c e :

R e p a i r s a n d M a i n t e n a n c e a r e e s t i m a t e d o f R s . 3 0 , 0 0 0 / - P . A .

A d m i n i s t r a t i v e E x p e n s e s :

A d m i n i s t r a t i v e E x p e n s e s a r e e s t i m a t e d o f R s . 1 , 2 0 , 0 0 0 p e r a n n u m .

I t i n c l u d e t e l e p h o n e , s a d a r , t r a v e l l i n g e x p e n s e s .

C o s t o f S a l e s :

S a l e s R e v e n u e : S a l e s e s t i m a t e d a s u n d e r :

Q t y . R a t e ( M T ) T o t a l A m o u n t R s .

A t t a 9 0 0 1 3 5 0 0 = R s . 1 2 1 , 5 0 , 0 0 0 . 0 0

o r s a y R s . 1 2 1 . 0 0 l a c s

Page 16 of 16