Business Proposal for an integrated Agro Based Food Park

RANGALI AGRO INDIA PRIVATE LIMITED

1.INTRODUCTION2.PROJECTS3.Intregation4.PRPPOSAL

TABLE OF CONTENTS

M/s. RANGALI AGRO INDIA PRIVATE LIMITED:

M/s. RANGALI AGRO INDIA PRIVATE LIMITED (RAIPL) was incorporated in October, 2010 as a Private Limited Company. The Promoters of the company are Mr. Gautam Kumar Saha & Ms. Binita G Saha . The company was established with the objective to set up a Integrated Agro Based Food Park .

  The company started to set up a Rice Bran based solvent extraction plant

with an installed capacity of 200 TPD along with a Multipurpose Edible Oil Refinery unit with an installed capacity of 50 TPD at Village, Rohinikash, Dalgaon, Darang, Assam.The work for the project has already began. Company has also set up a high capacity mustard oil plant and is producing mustard oil with the brand name “Rangali Gold Kacchi Ghani” the demand of Mustard Oil is very huge in the market with comparison to supply .

INTRODUCTION

The company is procuring Refined Rice Bran Oil from Kolkata and Bardhaman units and supplying under the brand name of “Maharani Gold” in local market so that a ready market is available once the SEP and REFINERY begins production.

  Apart from above Mr Saha is having vision to expand his business throughout

North East. Other than Rice Mill & Edible Oil, The company has started a Packaged Drinking Water plant with capacity of 2 lakh liters/day with the brand name of “Rangali Scots Spring”, the commercial production of the plant has already started and the product is easily available in the market.The company is also in the process of setting up one Captive Power Plant,One Modern Rice Milling Plant and an Animal Feed Plant along with the above mentioned projects in an area of around 25 acre.

  The company “Rangali Agro India Private Limited” is certified by “

ISO 9001:2008 ” and currently on the process of obtaining certification of “ ISO 22000 ”

INTRODUCTION

SL No.

PROJECT NAME CAPACITY

1. Solvent Extraction Plant 200 TPD

2. Multipurpose Oil Refinery 50 TPD

3. Captive Power Plant 2 MW4. Modern Rice Mill 400 TPD

5. Mustard Oil Plant (Already Complete & running) 1200 Tin/Day

6 Packaged Drinking Water Plant (Already Complete & running) 1 lacs liter/Day

7 Animal Feeding Plant 200 TPD

Projects

With 200 TPD Solvent extraction plant this is going to be the largest Solvent extraction plant in the north East region, being a agri rich region raw material for the SEP specially BRAN is easily available locally, which is a big plus point in terms of productivity of the plant.60% work of this project is already complete with most of the machineries from “Chemical Construction International Limited” And The Boiler from “Thermax India”(Agro Waste husk Packaging boiler) have already reached the site and structural works are going on .

Projects: Solvent Extraction Plant

50 TPD Multipurpose Oil Refinery is a perfect match for the 200 TPD SEP, Although the primary aim of the SEP would be to extract Oil from BRAN and then refine it here in the refinery but being a multipurpose refinery it will be able to refine other types of oil as well such as Soya, Sunflower etc. Here also work is going on as many machineries are already on its way to the site from the manufacturer.

Projects: Multipurpose Oil Refinery

Power is a highly essential aspect of an industry,so many business projects in this region failed because of inadequate and irregular power supply,add to it the high cost one has to bear for not having own source of power.Frequent Power Cuts makes huge impact on quality and productivity leading to the failure of projects like these. Hence having own power source is a must for survival of the project. As per requirement of the complete integrated project with all 7 units mentioned,2 MW Captive power Project is just ideal for the whole project which will finish the dependency and give huge benefit on the cost part as well thus increasing the profitability of the whole project.

Projects: Captive Power Plant

With high demand, good profit margin and easy availability of paddy Rice Milling is a highly profitable venture in this region as the primary food of the people in this region is rice, The proposed 400 TPD rice milling plant is going to be the biggest in the region in terms of capacity.

Projects: Modern Rice Mill

1200 Tin/Day Mustard oil plant which is already set up is also the biggest in the region in terms of capacity. With high demand in the market and easy availability of mustard seeds this is also an highly profitable business project.

Make: Swastik Traders. Number of Expllers 12 nos. Ghani’s 10 nos- make “AGRA”

Projects: Mustard Oil Plant

The 1 lac litre/Day Packaged Drinking water plant which is already set up at the project site is also a major attraction of the whole project, equipped with state of the art facility this plant is one of the best in the country in its range. With increasing demand in packaged drinking water segment and huge reach of the product it’s a very good project to invest on.

Make: India Ion Exchange , Ahmadabad.

Projects: Packaged Drinking Water Plant

12

Animal Feeding plant is also an important part of the whole integrated project which will make use of the residuals of the other projects such as Solvent Extraction Plant, Mustard Oil Plant etc. 200 TPD Plant Animal Feeding Plant will be the biggest in the region with a huge market for its products in North East and outside North East this is another highly profitable venture.

Projects: Animal Feeding plant

Estimated Time for the completion of the projects are SEP( 7 Month’s), Refinery ( 9 Month’s) ,Foundation works are in progress.

Shed for preparatory section for the SEP is complete.

Storage Godown For rice bran has been completed .

Machineries of Both SEP and Refinery are manufactured by “Chemical Construction International”.

Total Payment Made against the order of SEP And Refinery is approximately 8 crore.

Some Salient Facts of The Work Progress So Far

Two 6 tone Agro Waste Husk Pack Boiler of Thermax Make have already reached the project site

One of the two ordered 650 kva MTU gensets ( Mercedes Technology ) have already been installed and the other one is in the process of acquiring ( 20 Lac Already paid as advance )

Total Area available for the whole integrated project is approximately 50 bigha.

Some Salient Facts of The Work Progress So Far :

Banking Profile :

M/s. RANGALI AGRO INDIA PRIVATE LIMITED BANKING PROFILE:

Banker: SBI Bank Term Loan: 20.00 Cr. (16.5Cr. Disbursed) Cash Credit: 7.0 Cr. (3.75 Cr. Disbursed) Account Status: Standard Company Turnover (2012-2013): 11 Cr.

Some Salient Facts of The Work Progress So Far :

Assets - Rangali Agro India Private Limited

Sl. Particulars Amount (INR)

1Land (Land (Factory Premises attached to NH 52 ) 50 Bighas @

25 L / Bighas 12,50,00,000.00

2 Building and machinery

30,20,15,445.00 a

Factory Building of 14000 sqft with Modern fully automated Kacchi Ghani Mustard Oil Plant

b Factory Building of 16000 sqft with Modern fully Automated

Packaged Drinking Water Plant

cFactory Sade of preparatory section for Solvent extraction plant ,

Area 10000 Sqft

dPlant and machinery of Solvent Extraction Plant and Edible Oil

Refinery

e Office Building

f Weight Bridge of 100 Ton capacity (Make “Avery”)

g Other expenses related to the project, Up to 31/7/2013

Total Asset Value 42,70,15,445.00

Some Salient Facts of The Work Progress So Far

Now Let’s understand why this integrated project is required and what is the role of the different units individually in the whole project.

INTEGRATION

100 Ton Weigh Bridge

1200 tin/day Mustard Oil Plant

2 Lac litre/Day Drinking Water Plant

200 TPD Solvent Extraction Plant

400 TPD Rice Milling Plant

50 TPD Edible Oil Refinery

2 MW Captive power plant

Office cum Guest House

HUSK

HUSK

BRAN

200 TPD Animal feed Plant

HUSK

HUSK

DOC

MOC

2x6 ton boiler

Total Land Area of the integrated food park is around75 Bigha

Initially the organization has drawn a plan to start SEP & Multipurpose Refinery for the first time in NE India. As an unique project the bank has financed Rs. 27 Cr ( 20 Cr. For plant & machinery & 7 Cr. cc) for the project but so far the viability of the project is concern it is very important to have on time inputs of raw materials, fuel, electricity, transportation, Storage area & utilization of byproducts. Many studies shows and as expert suggested that most of the SEP are now in idle condition because of non fulfillment of one or more reasons stated above. Experts have also agreed if all the factors will be in streamline then SEP & Refinery will be one of the most viable Agro based project.

 

INTEGRATION

One of our big strength is that we are having around 50 bighas of owned land in the Agro Park. With the concept of integrated project we would like to minimize our dependency of raw materials, electricity and fuel on outsiders. Also there will be an optimum utilization of byproducts, time & manpower. We have already received most of the Plant and machinery for SEP and Multipurpose Refinery including two 6 ton Boilers.

INTEGRATION

Now the fuel for the Boiler is paddy husk and raw material for SEP is Rice bran, hence by setting a modern Rice milling plant in the park of capacity 400 TPD, we will have total self dependency of fuel for 2 Boilers which would have cost us approximately 3 lacs /day otherwise.

   Again the rice bran yield from the 400 TPD Rice Milling

Plant will minimize our dependency of the raw material for Solvent Extraction Plant to a large extent lowering our dependency on buying bran from the market.

INTEGRATION

We have two running projects of Mustard Oil plant (Mustard seed-50 TPD/ Mustard Oil- 17.5 TPD/ MOC-rest) and Packaged Drinking Water Plant ( 1 lacs/Ltrs per day) in the agro park and these projects will also have an unique integration with SEP projects, The extra ozonised RO water of the water plant can be utilized as a soft water required for Boiler, hence there won’t be any further need to set a softner unit for the same. Better the water better the life of Boiler. Again the MOC yield from Mustard oil plant contains 8 - 10% of Mustard Oil which can be extracted from SEP.

 

The byproduct of SEP is DOB (De-oiled bran) and DOC (De-Oiled cake) and from an SEP of 200 TPD, approximately 150 TPD of DOB/DOC will be generated at full production capacity, It needs a large space to store and can only be sold after a certain interval and this can result in capital blockage which in turn may harm the smooth functioning of the project, But with an idea to set an Animal Feeding Plant there will be an optimum utilization of this byproduct and there is a bigger & fast consumable market for the finished product hence there is no need to keep a bigger storage space and the residuals of those plants can be used to catch up a big market of animal foods.

 

INTEGRATION

On the other hand the main & foremost requirement to run any such project at its full capacity is the availability of Electricity, but unfortunately the power supply in this region is not up to the mark. Again frequent power-cut affects the hi-tech plant & machineries heavily. Although we will be having 2 units of 650 KVA, MTU genset to run the plant in case of power cut but in this scenario of rising cost of fuel, it is no longer viable to run the plant with it for a long time. Hence to overcome this problem we made a plan to set a 2 MW Captive Power Plant (Biomass – Husk) for which the fuel is already available with us, post utilization husk in boilers. The Power plant will not only ensure 24 hour availability of power but will also make a huge impact on cost part also as the generation of electricity from Husk is much cheaper than the standard methods.

Last but not the least one of the big benefit of this integrated plant is a least dependency on transportation, which is a biggest concern till date in our location, the lead time required is much more than compared to other area. In this integration all the plant will be either connected through conveyor or elevator which will minimize the cost of transportation.

INTEGRATION

As the only way to enhance the bottom line is either to increase the sale or minimize the expenditure. From such integrated project, one of its kind we can reach both the factors. Hence a successful completion of the total project may set a bench mark among the industries.  

INTEGRATION

PROPOSAL

We expect a total additional investment of INR 30 Crore for the whole integrated project for the continuation of running works and initiation of projects in hand.The Value of the whole project is estimated to be INR 100 crore by 31st December,2014

PROPOSAL

The estimated cost up to 31/12/2014 of the whole project is 52 Cr, out of which 27(20Cr. Disbursed, 7Cr. Sectioned ready to be disbursed as required) Cr has already been sectioned by SBI, On the basis of the progress in the project you can expect an added finance of Rs. 15 Cr. from Bank specially for the projects of Animal Feeding Plant & Power project.

The estimated Turnover for the project in the FY 15-16 is Rs.300 Cr. with a net profit of @10% of the turnover, i.e. 30 Cr.

PROPOSAL

SL No.

Particular Amount (CR.)

1.Solvent Extraction Plant

2.00

2. Multipurpose Oil Refinery 6.50

3. Modern Rice Mill 7.00

4. Captive Power Plant 12.00

5. Animal Feeding Plant 2.50

Total 30.00

Proposed Cost Illustration for the completion of the entire project by 31/12/2014

SL No.

Particular Amount (CR.)

1. SBI Kharupetia Branch, Amount sectioned and ready to be disbursed.

7.00

2 Proposed Additional finance by Bank

15.00

3. Proposed Fresh Investment by New Promoter

8.00

TOTAL 30.00

Proposed Resource Allocation Illustration for the completion of the entire project by 31/12/2014

THANKING YOU

Rangali Agro India Private Limited.