Project report for pauaa manufacturing

Introduction

Project report for poha- rice flakes manufacturing is as follows:

Beaten rice is also called  flattered rice. It  is rice which is flattened into flat, light, dry flakes originating from the Indian subcontinent. These flakes of rice swell when added to liquid, whether hot or cold, as they absorb water, milk or any other liquids. The thickness of the flakes varies between almost translucently thin (the more expensive varieties) to nearly four times thinner than a normal rice grain.

Generally the beaten rice is a popular food for all kinds of human living inIndia. 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 India (and kerala) and hence the raw material has no shortage...

Product / Services & process

 

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 indifferent weights. The step by step processing is:

1. Cleaning of Paddy

2. Soaking

3. Boiling

4.Pounding

Beaten rice is formed after pounding. But the husk and broken particles are to be removed.

5.Sieving

6. Roasting

7. Packaging

 

Raw materials / Consumables

 Paddy is the raw material require to manufacture Rice Flakes. Rice Flake is locally known by many names like, aval, avalakki, poha, chewda and beaten rice. Rice flake is the husked rice which is flattened into flat light dry flakes. These flakes of rice swell when added to liquid, whether hot or cold, as they absorb water, milk or any other liquids. The thicknesses of these flakes vary between almost translucently thin (the more expensive varieties) to nearly four times thicker than a normal rice grain. These are also known as POHA. Paha industry comprises an important segment of Industrial activity in food processing industry in the country. It provides nutrition breakfast and food to a large number of households in cities, towns and even villages of India.

Plant & Machinery / Equipments

It is suggested to install a unit with annual production capacity of 250MT based on 300working 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

 

 

Market potential & Strategy

  Rice flakes are tasty flakes that are created using rice grains. The process for creating rice flakes involves parboiling the rice, then flattening the grains to product a solid flake. There are a number of rice flake recipes used in Asian cuisine. Often in western countries, rice flakes are used to create cereals and different types of snacks.. Once the rice is tender, the cooked grains are rolled, then flattened. The thickness of the flattened rice will depend on the amount of pressure that is applied. After the mixture is the desired thickness, the flattened rice is allowed to dry completely. The dried sheets are then ran through another rolling process to create simple flakes. At this point in the process, the rice flakes may be packaged for use as a dry cereal, or used as an ingredient in recipes for a side dish, or used to create desserts or even snack foods. Rice flakes are prepared from paddy. It is also popularly known as "Poha". It is a fast moving consumer item and generally eaten as breakfast item...

PROJECT REPORT

pauaa manufacturing

Address

Introduction

Project report for poha- rice flakes manufacturing is as follows:

Beaten rice is also called  flattered rice. It  is rice which is flattened into flat, light, dry flakes originating from the Indian subcontinent. These flakes of rice swell when added to liquid, whether hot or cold, as they absorb water, milk or any other liquids. The thickness of the flakes varies between almost translucently thin (the more expensive varieties) to nearly four times thinner than a normal rice grain.

Generally the beaten rice is a popular food for all kinds of human living inIndia. 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 India (and kerala) and hence the raw material has no shortage. Beaten ricecan be used as a fast food. It can also be used as a main dish. Its shelf life is also vevy long. This easily digestible form of raw rice is very popular across India, Nepal and Bangladesh, and is normally used to prepare snacks or light and easy fast food in a variety of Indian cuisine styles, some even for long-term consumption of a week or moreIt is growing fast not only because of macro factors, such as acceptance of packaged food and rising household incomes but also because companies have become innovative .The market is estimated to be growing annually up to 20 % , and with modern retail providing new recipes of the contemporary products, Indian and Western, a strong wave of growth is anticipated. The demand of Rice flake in the market is immense and therefore its market position Is splendid. Hence it is an excellent field to venture .

 

Product / Services & process

 

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 indifferent weights. The step by step processing is:

1. Cleaning of Paddy

2. Soaking

3. Boiling

4.Pounding

Beaten rice is formed after pounding. But the husk and broken particles are to be removed.

5.Sieving

6. Roasting

7. Packaging

 

Raw materials / Consumables

 Paddy is the raw material require to manufacture Rice Flakes. Rice Flake is locally known by many names like, aval, avalakki, poha, chewda and beaten rice. Rice flake is the husked rice which is flattened into flat light dry flakes. These flakes of rice swell when added to liquid, whether hot or cold, as they absorb water, milk or any other liquids. The thicknesses of these flakes vary between almost translucently thin (the more expensive varieties) to nearly four times thicker than a normal rice grain. These are also known as POHA. Paha industry comprises an important segment of Industrial activity in food processing industry in the country. It provides nutrition breakfast and food to a large number of households in cities, towns and even villages of India.

Plant & Machinery / Equipments

It is suggested to install a unit with annual production capacity of 250MT based on 300working 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

 

 

Market potential & Strategy

  Rice flakes are tasty flakes that are created using rice grains. The process for creating rice flakes involves parboiling the rice, then flattening the grains to product a solid flake. There are a number of rice flake recipes used in Asian cuisine. Often in western countries, rice flakes are used to create cereals and different types of snacks.. Once the rice is tender, the cooked grains are rolled, then flattened. The thickness of the flattened rice will depend on the amount of pressure that is applied. After the mixture is the desired thickness, the flattened rice is allowed to dry completely. The dried sheets are then ran through another rolling process to create simple flakes. At this point in the process, the rice flakes may be packaged for use as a dry cereal, or used as an ingredient in recipes for a side dish, or used to create desserts or even snack foods. Rice flakes are prepared from paddy. It is also popularly known as "Poha". It is a fast moving consumer item and generally eaten as breakfast item. With this background, the CFTRI developed a process for improved Rice flaking. The improved process has the advantage of increase in yield and better quality products, besides economic utilization of by-products. The kernel of rice can become cracked in the field, during the drying process, or during the milling process. Cracks are usually caused by moisture migrating too quickly within the kernel Often these cracks cause the kernels to break during milling and so broken rice is generated.  The side effects of junk food are gradually spreading among the consumers and they are looking for a safe alternative. Many types of harmful chemicals are added to most of the fast food/ bakery items as preservative, colour, essence and flavor. If the consumers have an alternative item without much compromising on shelf life and variety of items made of it, many customers will opt natural food items like beaten rice. Many delicious items can be prepared from it by adding jiggery, sugar, decicated coconut, milk, chocolate etc. It is very much tasty and nutritious to consume with tea and coffee. East, west , central and south India has a good market for this product. 20 % growth is expected in this sector. Therefore, marketing is not at all a problem at all.

       

Project at a glance

Name & Address of Unit

Roasted Rice Flakes - Poha

Address

Details of unit
Email : youremail@gmail.com
Phone : 000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : Your name
Address : address
Designation : Proprietor

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Building Advance *******
2 sealing Machines *******
3 Sieves *******
4 Paddy soaking tanks *******
5 Furnace *******
6 Roaster *******
7 Avil Mill *******
8 Electrification *******
9 Preliminary expenses *******
10 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Beaten rice ******* X 60000 Kilogram *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Rent *******
2 Helper *******
3 Semi skilled worker *******
4 Skilled Worker *******
5 Repair and Maintenance *******
6 Electricity and fuel charges *******
7 Office expense, stationery *******
8 Paddy *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Building Advance ******* 1 ******* *******
2 sealing Machines ******* 1 ******* *******
3 Sieves ******* 4 ******* *******
4 Paddy soaking tanks ******* 4 ******* *******
5 Furnace ******* 1 ******* *******
6 Roaster ******* 2 ******* *******
7 Avil Mill ******* 2 ******* *******
8 Electrification ******* 1 ******* *******
9 Preliminary expenses ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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