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PROJECT REPORT

ON

PROCESSING

O F ATTA

LOCATION:
Plot no:65, E-Block, Industrial park, Autonagar
Visakhapatnam dist

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TAB L E O F C O N T E N T S
S.NO

PARTI C U L A R S

PAG E N O

1.

P R O J E C T AT A G L A N C E

3 - 4

2.

INTRODUCTION

5 - 5

3.

SCOPE OF THE PROJECT

6 - 6

4.

CONSTITUTION AND SECTOR

7 7

5.

BACKGROUND OF THE PARTNERS

8 - 9

6.

LOCATION AND ITS ADVANTAGES

10 - 10

7.

RAW MATERIALS

11- 11

8.

PROCESS FLOW CHART

12 - 12

9.

PROJECT COST & MEANS OF FINACNE

13 - 13

10.

DETAILED NOTES ON ESTIMATED PROJECT COST

14 - 15

11.

DETAILED NOTES ON MEANS OF FINANCE

16 - 16

12.

SW OT ANA LYS IS

17 - 17

13.

I M P L E M E N TATI O N S C H E D U L E

18 18

14.

PROJECT BENEFITS

19 20

15.

UTILITIES AND SERVICES

21 - 21

16.

ASSUMPTIONS

22 - 23

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01. PROJECT AT A GLANCE

1.

Name of the Firm

: DESHMITHA FOOD INDUSTRY

2.

Works & Office

3.

Line of Activity

: Plot no:65 E-Block industrial park Autonagar


Visakhapatnam dist
: P r o c e s s i n g o f AT T A

4.

Sector

: Small Scale

5.

Constitution

: Proprietary

6.

Names of the Partners

7.

Project Cost & Means of Finance:

Project cost

Amount

Land & Buildings

lease

Plant & Machinery

25.00

Erection

2.00

Working capital

60.00

Total

87.00

Means of Finance

(Rs. in Lakhs)
Amount

Partners Capital

47.00

Working capital loan

40.00

Total

87.00

Partners Contribution: 54%

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02. INTRODUCTION
Wheat flour mill ing is an i mportant industry, supplying flour of W heat to the
common people as the flour are the regular food taken by especially by the
people of south Indians. Flour milling has been known from a very early
date. Idly rava is used for day to day food products in houses of rich and
poor

for

variety of

tastes

and

has

several

uses

across the

country

and

t h r o u g h o u t t h e y e a r . Atta generally as it is known is the flour of wheat used to make most food items
in India, such as chapatti, roti, naan and puri. Most atta is milled from the semi-hard wheat varieties, also
known as durum wheat that comprises 90% of the Indian wheat crop, and is more precisely called Durum
Atta. Hard wheat have a high content of gluten (a protein composite that gives elasticity), so doughs made
out of atta flour are strong and can be rolled out very thin. Indian wheat are mostly Durum wheat, which are
high in protein but less in "bread forming gluten" so the bread when baked with this flour does not rise as well
and tend to be dense. Atta is the Hindi or Urdu word for dough; it is used by metonymy to mean "flour used for
baking". Atta refers to the pulverized whole wheat with brownish white color. In India common term used for
atta is "chakki atta" which is mostly used in rural areas. Chakki atta is ground wheat without any additions or
subtractions, and is thus in more natural form. The word Chakki derives its meaning from traditional Indian
way of grinding wheat in between two stone plates modern day flour mills use stone crushers in the flour
milling process.

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Atta is the flour used to make most South Asian flatbreads, such as chapati, roti, naan and puri. Most atta
is milled from the semi-hard wheat varieties, also known as durum wheat, that comprise 90% of the Indian
wheat crop, and is more precisely called durum atta.
Hard wheats have a high content of gluten (a protein composite that gives elasticity), so doughs made out
of atta flour are strong and can be rolled out very thin. Indian wheat is mostly Durum wheat, which are high
in protein but less in "bread forming gluten" so the bread when baked with this flour does not rise as well
and tend to be dense.
HISTORY
Atta is the Hindi or Urdu word for dough; it is used by metonymy to mean "flour used for baking". Atta refers to
the pulverized whole wheat with brownish white color. In India and Pakistan a common term used for atta is
"chakki atta" which is mostly used in rural areas. Chakki atta is ground wheat without any additions or
subtractions, and is thus in more natural form. The word Chakki derives its meaning from traditional Indian way
of grinding wheat in between two stone plates; modern day flour mills use stone crushers in the flour milling
process.
Wheat powder / flour, atta, sooji, maida
In India and Pakistan wheat products like 'wheat powder' or 'wheat flour', 'atta flour', 'maida flour' and 'sooji'
(semolina, also known as 'rava') are available in the market. There is technical difference between maida flour
and sooji flour in terms of bran content; Maida has negligible bran content. Maida flour is used mainly for
making bhaturas and naan, types of Indian breads similar to roti or chapati, while sooji is used mainly in the
preparation of a delight "kesari".
Whole wheat grains
Whole wheat grains contain all three parts of the kernel (kernel means a grain or seed, as of a cereal grass,
enclosed in a husk). There are, mainly, three parts for a wheat grain.
Parts of a wheat grain

1. Germ (2%) Embryo of the wheat kernel.


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2. Endosperm (85%) Nutritive tissue surrounding the embryo.


3. Bran Multi-layered outer skin of the kernel.
India/Pakistan: products of pulverized wheat grains

Wheat powder/flour 'Whole Grain' (Mixture of germ, endosperm and bran)

Atta flour mixture of endosperm and bran

Maida flour endosperm

Sooji/rava coarse endosperm

Preparation

An old manual grinder to make Atta


The Atta flour found in commerce varies in fiber content from near 0% to 12%. Wholemeal (US whole wheat)
atta is obtained from grinding complete wheat grains. It is creamy brown in color and quite coarse compared to
other types of flour.
Traditionally, atta is made by stone grinding, a process that imparts a characteristic aroma and taste to the
bread. The high bran content of wholemeal atta makes it a fiber-rich food. This may help to regulate blood sugar
as well have other health benefits. The temperatures attained in a chakki (mill or grinder, traditionally from
stone), produced by friction, are of the order of 110125 deg C. At such high temperatures,
the carotenes present in the bran tend to exude the characteristic roasty smell, and contribute to the sweetness
of the atta.
The various quality control parameters for the atta industry are ash content, moisture content, acid insoluble
ash, water absorption, alcoholic acidity, granulation profile, damaged starch and gluten content.

03. SCOPE OF THE PROJECT


T h e e n v i s a g e d p r o j e c t i s t o s e t u p a t S u r v e y N o : Plot no:65 E-Block
industrial park Autonagar Visakhapatnam dist. f o r m i l l i n g o f A t t a e t c . T h e
partners have acquired the land on lease. The total project out lay is Rs.
87.00 lacs. The installed capacity of the proposed firm is 5 MTS per day in
one shift operation in 300 working days and the total annual Capacity of the
firm is 1500 MTS. The operating capacity is assumed at 60%, 65%, & 70% in
1st, 2nd & 3rd year onwards.

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04. CONSTITUTION & SECTOR


CONSTITUTION:
A unit by name and style DESHMITHA FOOD INDUSTRY. The line of activity
is

to

processing

of

Atta.

The

firm

IS

at

Survey

No:plot

no

65,

E-Block

industrial park Autonagar Visakhapatnam 530012 Andhra Pradesh.

SECTOR:
The firm comes under Small Scale Sector and also under Priority Sector. The
Firm has already obtained Registration Certificate from the District Industries
Centre, visakhapatnam.

06. LOCATION AND ITS ADVANTAGES


Land:
T h e p r o p o s e d l o c a t i o n o f t h e F i r m i s s i t u a t e d a t Plot no:65 E-Block
industrial park Autonagar Visakhapatnam dist a n d A n d h r a P r a d e s h . T h e s i t e i s
located centrally notified backward area. The location of the industry has
considerable influence on the techno- economical facility of the project.
There are various factors contributing the functioning of an industry and
following are the primary factors taken into consideration.
Reasons for Selection of the Site:
Adequate Raw Materials
Adequate labor at economical rate.
Adequate supply of water throughout the year.
The site is w ell connected w ith road facility.
Banking facilities and Government supports.
Ad eq ua te Tra n spo rt fa cilitie s fo r e con o mica l tra n sp o rtatio n of fin ish ed
product and spare parts.
Nearest to the market.
Availability of labour at economical rate.
Adequate pow er supply.
As the area is developed, the setting up of an industry in this region
will help the people to progress both socially and economically.

07. RAW MATERIALS

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Required raw materials are available in open market and the Wheat grain can
be got from Visakhapatnam, Vizianagaram dist and Srikakulam dist which are
near to the proposed Firm. There is no problem anticipated regarding the
availability of raw materials.

08. MANUFACT URING PROCESS

Wheat is first cleaned thoroughly to remove dust, stone and other foreign matters clean wheat is tempered
before grinding by treating with water so that the bran is separated from the endosperm. The tempered wheat is
crushed between corrugated rollers (Break rolls). The first break rolls are set relatively far apart to grind the
wheat lightly, while successive break yield finer and finer products. The first break is separated by sieving or
bolting in to very fine particles (flour), intermediate particles (middlings) and coarse particles (stock). The stock
is then sent to second break rolls. This process may continue through 5 to 6 breaks. The stock contains pieces of
endosperm and bran and the stock from the last break is principally bran. The middlings contain endosperm,
bran and germ which are then successively classified and some of the bran removed are sent to reduction rollers.
These are smooth rollers, but like the break rolls they are graduated so that successive reduction becomes finer
and finer. After each reduction, sifters separate the flour, middling and stock, this process is continued until most
of the endosperm has been removed as flour and most of the bran has been separated in the sifters

09. PROCESS FLOW CHART

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The

process

of

manufacturing

quality

gram

flour

involves

four

major

processes, as explained below.

Cleaning

Eliminate pebbles, broken grains and other impurities from


Wheat.

Co
ndi
tio
nin
g
Milli
ng

Based

on

coloured

physical
gram

properties

halves.

Water

of

Wheat,

content,

if

remove
any,

other

should

be

removed by drying to maintain minimum 12 to 14% moisture.

The gradual milling system should be adopted for milling and


operation

consists

of

breaking,

scalping

and

purification,

reduction and dressing.

Finishing

Sometimes,

finished

obtain

standard

excellent
and

flour

(besan)

uniform

desired

is

mixed

properties,

characteristics and colour.

The process is simple and same for Flour Milling.

09. PROJECT COST & MEANS OF FINANCE


Rs in lacs

Project cost

Amount

Means of Finance

Amount

Land & Buildings

lease

Partners Capital

23.00

Plant & Machinery

58.00

Te r m l o a n

45.00

Working capital loan

20.00

Total

88.00

Erection

2.00

P & P Expenses

1.00

Working capital

27.00

Total

88.00

Partners Contribution

: 26.00%

10. DETAILED NOTES ON PROJECT COST


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to

Land and building:


T h e p ro p o s e d F i r m i s s e t u p o n l e a s e a t Plot no:65 E-Block industrial park

Autonagar

Visakhapatnam dist a n d An d h r a P r a d e s h . T h e p a r t n e r s a l r e a d y

acquired land

on lease for setting up the Firm.

The location is quite

suitable for setting up the Firm.

Plant & Machinery:


The following machinery worth of Rs.58.00 lacs are required to run the
Firm.

The

Partners

have

already

approached

reputed

suppliers,

and

obtained quotations and enclosed the same for your reference.

Expenses in connection with Erection:


A provision of Rs.2.00 lacs provided towards Installation Expenses in the
project cost, and it is considered reasonable.

Preliminary & Preoperative Expenses:


The

Firm

made

Preoperative

provision

Expenses

in

of

this

Rs.1.00

lacs

towards

Preliminary

project

cost

and

is

it

&

considered

reasonable.
Working Capital:
An amount of Rs.40.00 lacs provided working capital in this project.
detailed working requirement placed as annexure.

11. DETAILED NOTES ON MEANS OF FINANCE

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The

CAPITAL:
The partners capital was fixed at Rs.23.00 Lacs which will be contributed
by all the five partners and it will works out 26% of the project cost of
Rs.88.00 lacs.
TERM LOAN:
Th e F i r m de s i r e s to av a i l Ter m L oa n o f R s . 4 5. 00 l a c s f ro m

Bank/Financial

Institute to meet part cost of the project cost, which works out to 51.13%
of the total project cost of Rs.88.00 lacs.

The amount would be repayable

in 28 quarterly installments of Rs.1.61 lacs each with a moratorium of


twelve months from the date of commencement of Commercial Production.
However, the interest on the term loan would be payable as and when it is
applied on the account.

The details of the repayment programmed are

placed in this report.


WORKING CAPITAL LOAN:
The Firm is eligible for working capital loan (cash credit limit) of Rs 40.00
lacs in this project.

12. SWOT ANALYSIS

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Strength:
1)

The

Firm

is

DEESHMITA

proposed

FOOD INDUSTRY.

2) The Partners have studied and got knowledge in processing of Atta and
its marketing.
3) Availability of Labour.
4) Availability of raw material.
B) Weakness:
The Firm has to compete with the existing Atta manufactures in the open
market. However, existing Firms are far away from the raw material source
the Firm can compete with them. The Firm is one of its kinds in the area
where the market potential as well as raw material is substan tial.
C) Opportunities:
The firm has an opportunity to enhance the existing Business and process
products.

(D) Threats:
The

proposed

Firm

is

new

Firm

local

market.

The

Processing

of

manufacturing of Flour in the Firm has to compete with the large malty
national industries, who are in the market. In balance, there is adequate
market share for the Firm in view of the demand supply gap and also the
possibilities

of

export

to

other

states

keeping

in

view

the

eventual

diversification into the manufacture of high quality Flour. The Firm would
be in a position to counter in the threats if any, because of Govern ment
encouragement to small-scale industries.

14. PROJECT BENEFITS:

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It is highly profitable project.


It has excellent growth potential.
There is a ready market for product Atta.
There is a w ide variety, easy availability and everlasting supply of
cheap raw materials.
It is a socio-economic project with vast employment potential.
It has short gestation and payback period.
This project helps in conservation of natural resources and maintenance
of ecological balance.

Considering the importance of alternate energy sources and their vast


potential in the country, the government has announced a series of financial
incentives for installation and promotion of these industries in almost all
states to save from energy crisis and to save the outgoing foreign exchange
for purchasing of crude petroleum oil. These financial incentives are as
follows:

15. UTILITIES AND SERVICES

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POWER:
The

firm

requires

75

H . P.

of

power

supply

under

L. T.

Limits.

No

problems are anticipated w ith regard to obtaining of pow er supply.

W ATE R :
The firm requires 1000 Liters of water per day, for domestic purpose. A
provision is made for bore well and overhead tank in the scheme under
the head Civil Works.

EFFLUENTS:
There are no harmful effluents generated in the process. Pollution free
industry. No approval is required.

T R A N S P O R TATI O N :
The proposed Firm is located at Plot No 65, E Block, Industrial Park,
Visakhapatnam

(Dist),

the

Main

Road,.

There

is no

problem

for

transportation of raw material and finished goods.

MANPOWER REQUIREMENTS:
The

Firm

will

administrative

be
staff.

employing
All

the

10
above

No

of

workers

persons

without any difficulties.

16. ASSUMPTIONS
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can

be

besides

recruited

No

of

locally

Assumptions underlying for preparation of Financial Statements:

Installed Capacity:
Installed Capacity

: 5 MTS/day in one shift operations of 8 hours

No of Working days

: 300 days

Installed Capacity

: 300 * 5 = 1500 MTS @ 100% Capacity

Operating Capacity:
Operating Capacity is assumed as under:
1st Year

Atta

2nd Year

60%

65%

900

975

3rd Year
70%
1050

Cost of Raw Materials:


Raw materials Requirement Description:
S.no
1.
2

Name of the Product


Wheat Granules
Gunny Bags

Yield %
100%

Qty (MT)
900
90000

Rate(MT)
10000
15.00

Amt(lacs)
90,00,000.00
13,50,000.00
103.50

Stores & Spares:


Stores and Spares are estimated of Rs.60,000 in a year.

Power & Fuel:


Power and Fuel is estimated as Rs. 1.20 lacs. Per annum

Wages:
Wages are calculated as under
Skilled Workers

2 No.

* Rs.4,000/- Per Month

Unskilled Workers

5 Nos. * Rs.2,000/- Per Month

8,000

=
10,000
__________
18000 * 12 = 2,16,000
or say

Repairs and Maintenance:

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: 2.16 lacs

R e p a i r s a n d M a i n t e n a n c e a r e e s t i m a t e d o f R s . 3 0 , 0 0 0 / - P.A .

Administrative Expenses:
Administrative Expenses are estimated of Rs.1,20,000 per annum.
It include telephone, sadar, travelling expenses.

Cost of Sales:
Sales Revenue: Sales estimated as under :
Qty.
Atta

900

Rate(MT)
13500
or say

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Total Amount Rs.


=

Rs.

121,50,000.00

Rs.121.00 lacs