PROJECT PROFILE

ON
ROASTED RICE FLAKES
INTRODUCTION
Generally the beaten rice is a popular food for all kinds of human living in India. Most
people used this as a raw food in ancient times which is very easy to produce and prepare
at home. Now the people are making different kinds of recipes with this by adding
sweetness or spices. This is rich in fiber and carbohydrate and can be consumed even by
those suffering from diabetes, high blood pressure etc. Now the medical journals are also
encouraging the same. Another point to be remembered is that paddy is available in
plenty in Odisha and hence the raw material has no shortage.

PRODUCT
CFTRI Mysore has introduced new methods to evolve the roasted flakes with different
spices and sweetness. This can be directly used as a snack or light food. This can easily
attract both small children and elders. Also one of the specialties is the easiness with which
the product can be prepared though it consumes a little time.

MARKET POTENTIAL
This product in the market is relatively new one. Hence it has tremendous scope. A good
quality product in attractive pack will give a boost in marketing the product. The main
scenario in rice flakes is that it is pure in nature and adding spices or sweets will not
contaminate it in any way.

TECHNICAL ASPECTS
The Process
The paddy is cleaned and stones are removed. It is soaked in water and boiled in a boiler.
When it is lowered its temperature is reduced a little and is pounded or pressed
mechanically to form flakes. It is sieved and roasted by adding the required flavors. This
product is packed and labeled in different weights.

CLEA SOA
BOIL
NIN KING
ING
G IN
POU
NDI
NG
PAC ROA
SIEVI
KING STIN
NG
AND G

Pollution Control
This industry does not create any kind of pollution and as such there is no need of any
preventive measures.
 FINANCIAL ASPECTS

Fixed Capital
Land and building

It is estimated that a land of 250 sqm is required with 125sqm with build up area. Cost of
land in rural area is calculated as Rs1,25,000/- and the cost of construction is taken as
Rs3,25,000/-

Plant and machinery

It is suggested to install a unit with annual production capacity of 250MT based on

300 working days and 1 shift per day.

No ITEM QUANTITY PRICE(IN

LAKHS)
1 Avil mill 2 1.50
2 Roaster 2 1.00
3 Husk fired Furnace 1 0.25
4 Paddy soaking tanks 4 0.60
5 Sieves 4 0.25
6 Sealing machines 1 0.25
TOTAL 3.85

Furniture and fixing

A provision of Rs 40,000/- is provided for the working tables furniture and fixtures
storage facilities.

Utilities
Power requirement shall be 15 hp and daily water consumption is Rs750 for 800 liters

Manpower requirement
Particulars Monthly salary(Rs) Total Monthly salary(Rs)

Skilled workers 2 7500 15000

Semi-skilled Workers 2 5000 10000
Helpers 2 5000 10000
Sales man 1 6000 6000
TOTAL 41000
 Details of project cost
A) Land and building

Particulars Area Cost(Rs)

Land 250SqM 125000
Building 125SqM 325000
TOTAL 450000

B) Plant and machinery

A total cost of Rs3.85 Lakhs is calculated in this head.

C) Miscellaneous assets

A provision of Rs 40,000/- is provided to this project

D) Preliminary and preoperative expenses

This include some charges like registration, trial run expenses, interest during
implementation etc. and are covered with a provision of Rs 50,000/-

E) Working capital requirement (with a capacity utilization of 60%)

Particulars Period Margin Promoters Bank Total(Lakhs)

Stock of Materials 1 Month 30% 0.30 0.80 1.10

Stock of Finished ½ months 25% 0.14 0.41 0.55
Goods
Receivables 1 Month 25% 0.26 1.39 1.65
Working Expenses 1 month 100% 0.20 0.20
Total 0.90 2.60 3.50

Cost of project
Item Amount(Lakhs)
Land and Building 4.50
Machinery 3.85
Miscellaneous assets 0.40
Preliminary & Preoperative Expenses 0.50
Contingencies @10% on fixed assets 0.84
Working Capital 3.50
13.59
 Means of Finance

Promoters contribution 4.07

Loan from bank Term loan 6.92 9.52
Working capital 2.6
Total 13.59

Assumptions

a) Utilities: the annual expenditure towards power and water is estimated to be Rs

60000/-
b) Selling expenses: Rice flakes will be sold through retailers. For this commission
and transportation charges will be there. Hence a provision @ 12.5% is provided.
c) Interest on term loan is calculated as 12% per annum assuming a repayment period of
4years. Interest on working capital is taken as 14% per annum.
d) Depreciation. It is calculated assuming @10% on building and @20% on plant and
machinery

Raw material required per annum

Product Quantity(MT) Rate/ price Value(In

Lakhs)
Paddy 250 8900 22.25
Spices 25 4000 1.0
23.25

Sales Revenue at 100%

Product Quantity Selling price Sales(In

Lakhs)
Roasted flakes 200 12000 24.00
Rice Bran 25 2000 1.0
25.0

Calculation of profit

No Particulars Year1 Year2 Year3 Year4

A Installed capacity 250MT
Capacity utilization 60% 70% 80% 100%
Sales realization 24.5 31.85 34 38.25
B Cost of production Year 1 Year 2 Year 3 Year 4
Raw materials 13.95 16.28 18.60 20.93
Utilities 0.36 0.42 0.42 0.54
Salaries 2.88 2.88 2.88 3.17
Stores &Spares 0.20 0.20 0.20 0.20
Repairs and Maintenance 0.30 0.30 0.30 0.30
Selling expenses 1.91 1.99 1.99 1.99
Administrative Expenses 0.30 0.30 0.30 0.30
Total 19.9 22.37 25.48 28.76

C Profit before Interest and 4.6 9.48 8.52 9.49

Taxation
Interest on Term loan 0.83 0.83 0.63 0.43
Interest on working capital 0.36 0.36 0.36 0.36
Depreciation (0.32+.77) 1.09 1.09 1.09 1.09
Profit before tax 2.32 7.20 7.43 8.40
Income tax @10% 0.23 2.28 2.08 2.52
Profit after Tax 2.09 5.04 5.2 5.88
Cash accruals 3.18 6.13 6.29 6.97

Break Even Analysis

No Particulars Amount(Lakhs)
A Sales 25.0
B Variable cost
Raw materials 13.95
Utilities (60%) 0.22
Salaries (60%) 1.73
Stores & Spares 0.2
Selling expenses(60%) 1.15
Admn.expenses(50%) 0.15
Interest on working Capital 0.36
17.76
C Contribution
 7.24
D Fixed Cost
Depreciation 1.09
Utilities 0.14
Salaries 1.15
Selling expenses 0.76
Administrative expenses 0.15
3.29

E Break-even point ( D/C) 45.44

%

Return on investment
Profit after tax/investment
=2.09/13.59*100
=15.37

SOME SUPPLIERS OF MACHINERIES

1) Indopol food processing industry pvt. Ltd., Faridabad 121003
Ph 2276161

2) SP Engg.works, Fazal Gunj, Kanpur