1 1.

BREAKFAST CEREALS Introduction

Extruded breakfast cereal products such as corn flakes, rice flakes, wheat flakes and other formulated breakfast cereal product are now gaining popularity in India. 1.2 Objective

The primary objective of the model report is to facilitate the entrepreneurs in understanding the importance of setting up unit of Breakfast ereals technology and financial parameters of various components for preparation and submission of project proposal to bank for sanction of long term loan. This model report will serve as guidance to the entrepreneurs on starting up such a new project and basic technical knowledge for setting up such a facility. 1.3 Raw ateria! Avai!abi!it"

orn, !ice, "heat are the major raw materials re#uired for the production of extruded breakfast cereals. 1.# ar$et O%%ortunitie& !etail outlets though $rovision %tores & Eateries Bulk outlets to 'otels, %chool( or )ffice * Industrial Exports to under developed countries anteens

Trade %ractice& "ell + planned product promotion efforts are re#uired to boost consumption of breakfast cereals and other convenience foods in India. , strong distribution network backed by exhaustive advertising campaign and cash incentives offers to dealers are needed to capture good share of the market. 1.' (roject de&cri%tion

A%%!ication& ,s being ready + to ( eat breakfast products, it is widely consumed in urban area particularly by office going persons and school( going children. ,lso as they are tasty and nutritious, their consumptions is increasing day by day -ood export potential for exporting to under developed countries.

(roject (ro)i!e& *

( A+ro&

,!oba! A+riS"&te- (vt. Ltd. .our (artner in A+ri*bu&ine&&

Avai!abi!it" o) $now /ow and co-%!iance& .oreign machinery suppliers provide know(how for production of breakfast cereals. up project. Ca%acit" o) t/e (roject The rated capacity of the unit of breakfast cereals is 0122 /T per annum. anu)acturin+ %roce&& Eva!uation o) Avai!ab!e Tec/no!o+" 0 Se!ection o) Tec/no!o+" Breakfast cereals are produced by extrusion cooking method. .or this purpose single screw and twin screw extruders are available. Twin screw extrusion cooking method is used for producing high #uality products with better texture and precise process control. /any companies providing turnkey plants based on twin screw extrusion technology. "enger and ,$3 baker are leader in this technology. anu)acturin+ %roce&& in Brie) .T!I(

/ysore also provides assistance for the project. $rofessional experts can be hired for setting(

Ingredients are mixed and conveyed to a twin screw cooker extruder which gelatini4es the starch in cereal. The cooking temperature varies from 1526 to 7526 8eg. . .for 02(05 minutes. .lavour, colour and vitamins are added at this stage. The cooked cereal is then passed into a forming extruder where the mass is cooled and formed into the pallets. The pallets are conditioned before flaking* shredding. The flakes are then roasted and re#uired a coating of sugar is applied alongwith vitamins and minerals. This product is then packed and dispatched (roduct 1ua!it" S%eci)ication& ornflakes are prepared from dehulled, degermed and cooked corn by flaking partially drying and roasting in the form of crisp flakes of reasonably uniform si4e and golden brown in colour. It shall be free from dirt, insects, larvae and impurities, any other extraneous matter. It shall confirm to the following standards. /oisture Total ,sh excluding salt ,%' insoluble in dilute ' I 9ot more than 0:;.5< per cent 9ot more than 0.2 percent on dry basis 9ot more than 2.0 per cent on dry basis

,lcohlic acidity :with =2 per shall be e#uivalent to not more than 1.2 ml. of 9. 9,)' per 022g $er cent alcohol< of dried substance.
(roject (ro)i!e& * ( A+ro& 2 ,!oba! A+riS"&te- (vt. Ltd. .our (artner in A+ri*bu&ine&&

 Critica! A&%ect& )ro Ac/ievin+ (roduct o) Better 1ua!it" $roper preconditioning and premixing of all ingredients play an important role in ensuring high #uality level, in final products. /aintaining of temperatures in heads of three sections of cooker extruder affect expansion and synchroni4ation of dough and ultimately the product #uality. %peeds of both the screws of cooker extruders also have effect on #uality of final product. %election and proportion of various ingredients in formulation are critical in #uality ontrol. 1.2 (roject co-%onent and co&t

/ajor components of the projects and their costs are described in the table hereunder> 1.3 Land and Bui!din+
4nit %#/ 1t" @,522 @,522 %#/ ?% ?% 7,222 02A 0 05A 0 05A 0 0 0 Co&t5unit 152.22 522.22 5,222.22 15,222,222.22 @,222,222 0,1=C,222 522,222 @C2,222 Tota! 189.3' 00.15 11.52 052.22 05.22 293.'; 152.22 7;.52 #2.;; @2.22 B.22 22.39 01.=C 5.22 @.C2 '''.;3

(ARTIC4LARS LA67 0 B4IL7I6, ?and Land 7eve!o%-ent ?and ,rea Bui!din+ (roduction B!oc$ Buildup ,rea ontingencies (LA6T 0 AC:I6ER. $lant & machinery ontingencies ISCELLA6EO4S FI<E7 ASSETS /isc ,ssets ontingencies (RE*O(ERATI=E E<(E6SES Establishment $rofessional harges %ecurity 8eposits TOTAL

1.9

(!ant and

ac/iner"

The total cost of the plant and machinery is !s. 1C;.52 ?akhs. The main plant and machinery re#uired are Twin %crew ooker Exturder, .orming Extruder, $reconditioner, %.%. /ixer, onveyer Belt 8ryer, %trorage Bins, .lavour ,pplicator, $acking /achinery, etc.

1.8

Bui!din+

The main production block will cost around !s. 0B5 lakhs.

(roject (ro)i!e& *

( A+ro&

,!oba! A+riS"&te- (vt. Ltd. .our (artner in A+ri*bu&ine&&

1.1;

i&ce!!aneou& A&&et&

, provision of !s. @B lakhs would take care of all the re#uirements. 1.11 (re!i-inar" 0 (re*o%erative E>%en&e& , provision of !s. 11.;C lakhs would take care of pre(production expenses like establishment, professional charges, security deposits etc. 1.12 ?or$in+ ca%ita! a&&e&&-ent
ITE S %T) D ). !," /,TE!I,? & $, DI9/,TE!I,? %E98!F 8EBT)!% TOTAL AR,I6 (BF I6TEREST O6 ?C .ear 1 @.=5 7=.B2 ##.'' 00.0@ 77.@0 7.BC .ear 3 =.=2 ;=.12 98.1; 11.1C BB.C7 ;.75 .ear ' =.=2 ;=.12 98.1; 11.1C BB.C7 ;.75

1.13

ean& o) )inance
15A 02 TOTAL 52.22 02.22A 1C.72 @0.0;A C.C7A 52.22A 022A 233.;9 ';.;; 293.;9 '22.13

E14IT. CA(ITAL OF(I S4BSI7. TER LOA6 .I9,9,9 I,? I9%TITETI)9% -Payable half yearly Installments

1.1# Ca&/ )!ow &tate-ent

(ARTIC4LARS SO4RCES OF F467S EGEITF ,$IT,? %EB%I8F 9ET $!).IT :I9TE!E%T ,88E8 B, D< 8E$!E I,TI)9 $!E?I/I9,!F EH$."*) I9 !E,%E I9 TE!/ ?),9 I9 !E,%E I9 B,9D B)!!)"I9-%(" TOTAL .ear 1 ( 1C.;B 7=.2@ 7.15 ( 77.@0 1;#.#3 .ear 3 ( 075.20 7=.2@ 7.15 ( 12.25 183.3' .ear ' ( 01=.;C 7=.2@ 7.15 ( ( 132.;3 .ear 3 ( 011.== 7=.2@ 7.15 ( ( 12'.28

1.1' (rojected ba!ance &/eet

(ARTIC4LARS LIABILITIES EGEITF ,$IT,? !E%E!3E% & %E!$?E% TE!/ ?),9 B,9D B)!!)"I9-%(" TOTAL .ear 1 177.2C @B.;C 15@.;C 33.#1 '29.;2 .ear 3 177.2C 0=@.5@ 0@0.5C 22.93 232.;3 .ear ' 177.2C @10.2B 1C.7C 22.93 3#8.32 .ear 3 177.2C B51.5B 2.22 BB.C7 8'2.#3

1.12 (rojected %ro)it and !o&& account

(articu!ar& I9 )/E
(roject (ro)i!e& * ( A+ro&

.ear 1 1B@.22
#

.ear 3 51C.22

.ear ' 51C.22

.ear 3 51C.22

,!oba! A+riS"&te- (vt. Ltd. .our (artner in A+ri*bu&ine&&

EH$E98ITE!E 3,!I,B?E .IHE8 -!)%% $!).IT $!).IT BE.)!E T,H !ET,I9E8 $!).IT

0=1.=5 015.0@ B;.C2 ;0.25 :7.11< :7.11<

752.;2 1@2.52 002.0= 0;;.72 02=.15 02=.15

755.=7 1@2.52 005.@1 0;1.2; 005.7@ 005.7@

7B1.;0 1@@.2= 00C.B1 0B5.1= 005.B@ 005.B@

1.13 Ke" indicator&

9ET $!E%E9T 3,?EE at current Inflation :!s.in lakhs< I9TE!9,? !,TE ). !ETE!9 A ,3E!,-E 8% ! B!E,D E3E9 $)I9T A $,F B, D $E!I)8 : FE,!%< 28#.21 22.23 2.## '8.23 #.'9

1.19

an%ower Re@uire-ent
6O. 0 0 1 7 1 0 C

(ARTIC4LARS S4(ER=ISOR. STAFF /,9,-E! /,9,-E! /,!DETI9$!) E!E/E9T & /,!DETI9- EHE ETI3E% , )E9T,9T, ,8/9 )..I E!, %T)!E DEE$E! ?ORKERS $?,9T )$E!,T)!% /,I9T %E$E!3I%)! 'E?$E!%

1.18 A&&u-%tion&
(roject 0 Financin+ ontingencies on Building ontingencies on E#uipment Term ?oan !ate of Interest on Term ?oan %ubsidy onsidered %ubject to ceiling Expected time of Installation /oratorium CA(ACIT. !ated apacity $er ,nnum C2A of Installed capacity 9umber of )perational 8ays 8,F% "orking 'ours $er day 'rs CA(ACIT. 4TILIAATIO6 Fear I Fear II Fear III SALES (RICE " % $rice OT:ER E<(E6SE ommission /arketing Expenses (O?ER onnected ?oad '$ 7E(RICIATIO6 AS (ER CO (A6.BS ACT BEI?8I9$?,9T & /, 'I9E!F /I% . .IHE8 ,%%ET% ?,98 & %ITE 8E3E?)$/E9T
(roject (ro)i!e& * ( A+ro& '

/onths /onths T$,

02A 05A 52A 02A 15A 02 B 0122 772 0@ 52A ;2A 022A @@222 02.2A 1.5A 012 7.7@A 02.7@A ;.2;A 0.B7A

,!oba! A+riS"&te- (vt. Ltd. .our (artner in A+ri*bu&ine&&

AI6TE6A6CE BEI?8I9$?,9T & /, 'I9E!F /I% . .IHE8 ,%%ET% ?,98 & %ITE 8E3E?)$/E9T

0.22A 7.22A 1.22A 0.22A

1.2; Source& o) tec/no!o+" I-%orted ac/iner" Su%%!ier&

"enger International Inc. + E%, ,$3 Baker + ED Buhler ,- + %wit4erland ac/iner" Su%%!ier&

Indi+enou&

.abdecon Engineers, 07C, 8amji %hamji Ind. omplex, )ff /ahakali aves !d., ,ndheri :E< /umbai + @22 2=7 T/e actua! co&t o) %roject& -a" deviate on c/an+e o) an" o) t/e a&&u-%tion&.

(roject (ro)i!e& *

( A+ro&

,!oba! A+riS"&te- (vt. Ltd. .our (artner in A+ri*bu&ine&&