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MINI DAL MILL

INTRODUCTION India is the largest producer of pulses around 14.5 million tones annually. Pulses commonly known as dal in India are an important component of both the vegetarian as well as the non-vegetarian diet in India. Among the North Eastern States, Assam is the largest producer of pulses.

THE PROJECT Pulses constitute one of the main sources of protein in the Indian diet. There are different varieties of pulses namely Chana, Mung, Masur, Urad and Tuvar dal. Of these, Mung and Masur dal are predominantly consumed in the North Eastern States. The conversion of pulse grains into dal through the process of milling. Wherein dal is split into smaller sizes rendering it convenient for cooking. It is one of the important food processing industry usually in the medium and small-scale sector, some quantity is also processed in the rural sector manually producing inferior quality dal resulting in lesser revenue earning compared to milled dal.

MARKET POTENTIAL The all India per capita consumption of pulses is about 2.8 kg per year. In the north-eastern region, consumption of pulses is generally higher especially in States like Assam and Manipur. Conservatively, taking the national consumption norm of 2.8 kg and considering the total population of 365 lakhs in the north-eastern region, the demand for pulses is estimated at 1,02,000 tonne per year. There is no organized dal milling activity in the north-eastern region. In rural areas, sometimes dal milling is carried out in rice hullers. However, generally raw dal is processed in unit in nearby areas of West Bengal and milled dal re-enters the north-eastern states. The total production of pulses in north-eastern region is about 85,000 tonne per year, assuming that 80% of this quantity is available for dal milling, that the new tiny units process 15% of the available dal, there is scope for over 15 tiny units with annual milling capacity of 700 tonne of dal to be set up.

SUGGESTED CAPACITY In assessing the proposed plant capacity due consideration is given to availability of raw material, market and basic infrastructure like power etc. a typical dal milling until is envisaged to produce 500 MT per annum on the following basis: Production Capacity : 159 kg/hr. Number of Shifts : 2 Daily production capacity : 2.53 tonne Capacity utilization : 70% Working days per annum : 300 Annual Production : 6% Loss during dehusking : 6% Net Production : 500 tonne/annum INFRASTRUCTURE REQUIREMENT Covered Area : 750 Sq. ft. Power requirement : 25 KW Water : Minimal RAW MATERIAL AND ITS AVAILABILITY More than 80% of the total production of pulses in the North Eastern Region comes from Assam. Pulses are grown in more or less all the North Eastern States. The state-wise production of pulses is as under:

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State Tonne/Year Arunachal Pradesh 5000 Assam 60000 Meghalaya 2000 Nagaland 7000 Tripura 5000 Mizoram 6000 Total: 85000/-

SUGGESTED LOCATION A dal milling unit should be located in a urban/semi-urban area which has access to raw material, skilled manpower and market. However, the following tentative suggestion can be taken into consideration. Assam Barpeta, Haflong, Mangaldoi, Nagaon, Nalbari, Silchar Manipur Imphal, Chandel Senapati Nagaland Dimapur Tripura Agartala Sikkim Rumitek, Dentam, Brang, Somgochoo

PRODUCTION PROCESS The important steps involved in the process are –

1. Cleaning 2. Milling 3. Dehusking and cleaning 4. Weighing and Packing

PROJECT ECONOMICS

TOTAL CAPITAL REQUIREMENTS A. Fixed Capital (Rs. in lakh) 1. Land Own 2. Site Development 0.45 3. Building (working shed 750 Sq.ft. 4.87 Raw material godown, finished product Godown, Office room) 4. Plant and Machinery 1.84 5. Misc. Fixed Assets 0.50 6. Preliminary/Pre-operative expenses 0.30 Total (A): 7.96

B. Working Capital Requirement

Sl. No. Norms Amount (Rs.in lakh) 1. Raw material and

Consumables 1 month 9.23 2. Finished goods 1 week 2.87 3. Working expenses 1 month 0.42 4. Receivables 1 week 2.93 Total (B): 15.45

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*Working Capital to be financed as – Margin Money Rs. 3.86 lakh Bank Finance Rs 11.59 lakh

MEANS OF FINANCE Term Loan(75%) Rs. 5.97 lakh Promoter’s Equity(25%) Rs. 1.99 lakh Rs. 7.96 lakh

COST OF PRODUCTION AND PROFITABILITY A. Capacity Utilisation : 70% B. Output (MT) : 500 MT/annum C. Annual Revenue : Rs. 135.00 lakhs

The cost of various types of pulses varies from Rs. 20 to Rs. 30/Kg, so an average cost of Rs. 27,000 per tonne is taken into consideration. The annual sales revenue for 500 MT is estimated at Rs. 135 lakhs.

COST OF PRODUCTION (Rs. in lakh) 1. Raw material and consumables 110.75 2. Utilities 3.34 3. Wages and Salaries 1.38

4. Plant Overheads and repairing & maintenance 0.35 5. Depreciation 0.70 6. Administrative Expenses 0.36 7. Interest 2.46 8. Selling expenses @ 5% of annual sales 6.75

Rs. 126.09 lakhs Operating profit Rs. 8.91 lakhs Return on Sales 66%

MACHINERY AND EQUIPMENT The main equipments required are – 1. Automatic Dal Mill plant with 25 HP Motor 1 No. 2. Weighing Scales 2 Nos. 3. Storage equipments 5 Nos. The total cost of equipments have been estimated as Rs. 1.84 lakhs

MANPOWER REQUIREMENT & WAGES Sl. No. Category Nos. Average Salary/

person/month(Rs) Total monthly Salaries(Rs)

1. Manager 1 3,500 3,500 2. Skilled Worker 1 2,000 2,000 3. Unskilled workers 4 1,500 6,000 Total: 11,500

Total Annual Salary Rs. 1.38 lakhs

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COST OF RAW MTERIAL & CONSUMABLES The cost of raw material and consumables are as follows: 1. Dal (various quality) @ of Rs. 25,000/- Rs. 110.00 lakhs 2. Packing material (Lumpsum) Rs. 0.75 lakh Total: Rs. 110.75 lakhs

COST OF UTILITIES AND OVERHEAD The power requirement for the milling plant:

1. For running the automatic dal mill with 25 HP Motor : 18.65 Hwh 2. For internal lighting + general load : 6 Kw

24.65 KW Say 25 KW The total daily requirement of power (26 Kw × 16 hrs ×2 shifts) × 8) = 320 Kwh The daily power bill (320 Kwh × Rs. 4) = Rs. 1280/- Total cost of power per annum (i.e. 300 working days) = Rs. 3.84 lakhs

PLANT OVERHEADS Sl. No. Items Amount (Rs. in lakhs) 1. Repair and Maintenance

(a) 1% on cost of civil works (b) 2% on Plant and M/c. (c) 1% on Misc. fixed assets

0.05 0.03 0.01

Sub-Total: 0.09 2. Insurance on Plant Assets

2% on building, Plant & M/c. miscellaneous fixed assets 0.14

Total: 0.23 At 70% capacity utilization = 0.16%

BREAK EVEN POINT ANALYSIS (Rs. in lakhs)

A. Variable Cost: Raw Materials and consumables 110.75 Utilities 3.34 Selling Expenses 6.75 Total (A) 120.84

B. Semi-variable Cost

Wages and Salaries 1.38 Repair and Maintenance 0.35 Administrative Expenses 0.36 Depreciation 0.70 Interest 2.46 Total (B) 5.25

C. Sales Realisation 135.00 D. Contribution 14.16 E. Break Even Point = B/D x 70% 26%

MACHINERY SUPPLIERS 1. M/s. Archana Machinery Stores

A.T. Road, Guwahati 2. M/s. DIW Hindustan Industrial Works

Post Box No. 12, Dahanu Road Dist: Thane (Maharashtra)