WHEAT ROLLER FLOUR MILL

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1 WHEAT ROLLER FLOUR MILL 1. Introduction The roller flour mill is a process industry to mill wheat and provide the endosperm as various fractions viz: maida, sooji, and atta. The skin or bran is separated from the endosperm and sold as cattle feed. 2. Market Since wheat is a staple food among all segments of the population, there is a constant demand in the consumer market for wheat products and the demand for these is always on the increase. 3. Packaging Maida, Sooji and Atta are packed in 90 kg gunnies. For the retail commercial market, 500 grams and 1 kilogram packaging are adopted. 4. Production capacity The plant will be in operation for three shifts a day. The plant will operate to a capacity of processing 500 kgs per hour or 10 metric tonnes per day. The recovery of finished products will be equivalent to the raw material input. The output of various fractions is termed as extraction percentages. A typical extraction comprises 60% refined flour or maida; 10% semolina or sooji; 7% resultant meal or atta and 13% bran. 5. Sales revenue The sales revenue will be entirely dependent on the procurement price of raw material used for milling and the extraction percentages of various fractions. 6. Production process outline. The milling of wheat is basically divided into two sections viz:- cleaning section and the milling section. The milling section comprises the chaff remover; destoner; scourer; washing machine; intensive dampner; and cockle separator. In the cleaning section, wheat is cleaned thoroughly before milling. Wheat is first passed through sieves to remove chaff and stalks. From the chaff separator it passes through a scouring machine wherein adhering dirt and mud and a part of 1

2 the skin are removed. From the scourer, the wheat passes through the destoner and stones are completely separated from the grain. The grains are then fed into the washing machine where dust, husk, and mud balls are removed. The washed wheat is sent through a dampened to raise the moisture content of the grain and then for conditioning. After conditioning for 36 hours, it is drawn for milling. The grain passes through a series of milling rolls comprising the break rolls, scratch rolls, and the polish rolls, purifiers, and plan sifters to get the desired fractions at the required percentages. 7. Quality specifications The different product shall conform to the following specifications: Atta:- Moisture -13.5% maximum; Ash - 2% maximum; Acid insoluble ash % maximum; Gluten - 6% minimum; Alcoholic acidity % maximum; Rodent excreta and human hair - absent. Maida:- Moisture -13.5% maximum; Ash - 1% maximum; Acid insoluble ash % maximum; Gluten - 7.5% minimum; Alcoholic acidity % maximum; Rodent excreta and human hair - absent. Sooji:- Moisture -13.5% maximum; Ash - 1% maximum; Acid insoluble ash % maximum; Gluten - 6.0% minimum; Alcoholic acidity % maximum; Rodent excreta and human hair - absent. 8. Pollution control measures Not necessary as there are no pollutants or effluents. 9. Energy conservation measures Common measures will do. 2

3 10. Land and construction cost for the proposed unit Land 0.5 acres - Rs.1.0 lakhs. Processing area is 7000 square feet as detailed below. Sl Description Sq. feet 1 Raw material store Finished goods store Processing section Office space Gunny bag store room Machinery spares store room Panel board room Laboratory Toilets Security office Miscellaneous space Total 7000 Construction cost Rs. 800 per square foot Total cost of civil works Rs lakhs. Total cost of land and civil works is Rs lakhs. 11. Costing of machinery and equipment Preparatory section a) Chaff separator b) Scourer c) Destoner d) Washing machine e) Intensive dampners f) Elevators and conveyers g) Motors for above machines Process section h) Roller machine i) Purifiers j) Plansifters k) Pneumatic elevation system with pipings l) Bran finisher m) Entoleter n) Motor and accessories 3

4 o) Tool kit, weighing scales and accessories. Total cost of machinery - Rs. 33 lakhs Testing equipment p) Testing equipment comprising hot air oven, ashing oven, kjeldhal apparatus, soxhlet apparatus, centrifuge, vortex stirrer, ph meter, precision weighing scales, glassware and chemicals. q) Cost of testing equipment - Rs lakh. Total cost of processing and testing equipment inclusive of taxes and duties - Rs lakhs. 12. Project cost 1 Land Civil works Plant machinery Laboratory equipment Transport vehicle Pollution control equipment Energy conservation equipment Cost of power connection Cost of electrification Erection and commissioning Cost of machinery spares Cost of office equipment Deposits if any Company formation expenses Gestation period expenses Sales tax registration expenses Initial advertisement and publicity Contingencies Working capital margin money Total

5 13. Working capital requirements per month a. Salaries and wages Sl Description No of persons Total salary / month (Rs. lakhs) 1 Production Manager Production supervisor cum chemist 3 Skilled workers Unskilled workers Loadmen Administrative staff Sales coordinator Driver Security staff Total b. Raw material requirement per month Sl Description Qty (kgs) Rate / kg (Rs) Value (Rs. lakhs) 1 Wheat 250, Total raw material 250, c. Packaging material requirement per month Sl Description Qty Rate / unit Rs) Value (Rs. lakhs) 1 Gunny bags 2800 nos Total Total raw + packaging material = Rs lakhs d. Utilities per month 1 Power Rs per unit Water Boiler fuel Total utilities

6 e. Contingent expenses per month 1 Rent for processing shed Postage and stationery Telephones, fax etc Consumable stores Repairs and maintenance Local transports, loading and unloading Advertisement and 1% of sales Insurance Sales 1% of sales Miscellaneous 1% of sales Trade 1% of sales % Total contingent expenses f. Total working capital requirement per month 1 Salaries and wages Raw material and packaging material Utilities Contingent expenses Total Means of finance 1 Total Project Cost Equity Debt Working capital margin money

7 15. Financial analysis 1 Total recurring cost per year Depreciation on land and building Depreciation on machinery and vehicle Depreciation on furnaces Depreciation on moulds and fixtures Depreciation on office equipment Interest on long term 12% Interest on short term 12% Total cost of production Turnover per year Sl Item Qty MT Rate/kg (Rs) Total Rs. lakhs 1 Maida Sooji Atta Bran Total Viability analysis Sl Description Value 1 Net profit before income tax (Rs. lakhs) Net profit ratio 6.4% 3 Internal rate of return 16.6% 4 Break even percentage 68% 5 Debt service coverage ratio

8 Machinery suppliers for Wheat Roller Flour Mill 1. Abhay and Abhay Private Limited, B ; Okhla Industrial Estate - II; New Delhi ; Tel: ; Fax: Buhler India Limited, KIADB Industrial Area, Attibele , Bangalore District, Karnataka.; Tel: ; Fax: Sidvin Machineries Private Limited, 10, 3rd Stage, Industrial Suburb, Mysore, , Karnataka.; Tel: , ; Fax:

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