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Feasibility Report Rice Mill
Feasibility Report Rice Mill
ON
AWA N RICE MIL L
INTRODUCTION
Rice Milling is an important activity in rural areas both for selfsustenance as well as source of subsidiary income to small farmers &
agricultural laborers. The bye product i.e. rice-husk can be also used for
producing rice-bran oil if the volume is large as well as for domestic
fuel. Rice Milling can be also undertaken on commercial basis for
producing rice from paddy & sell it on a profit.
Eastern Region rural side is dependent on agriculture to a large
extent and paddy crop is one of the chief farm produce in this area. The
number of marginal, small farmers & agricultural laborers is very large
in the area, and their quantity of production is very small. Therefore
most of them are dependent on small millers in the neighborhood for
converting their paddy into rice. Apart from this, the miller can also
procure paddy from, the market & sell the rice at a profit on commercial
basis.
Technical Aspects:-
milling is not a very complex one and technical training of a very high
order is not required. The supplier of the machinery will be able to
provide initial guidance to run the Equipments. Power consumption for
the attached motor is also low.
Implementation schedule:a) Project Duration
5 years
Objectives of Project.
p r ovi de
th e
ri c e
at
af fo r d a b l e
p ri c e
to
c us t ome r s .
3- To s atis f y th e c u s tome r i s o u r p ri o ri ty.
4- De a l wi th h on e s ty a n d fa i r n e ss .
Location of Project.
Yous a f Wa l a
5 km L a h or e r oa d
Sa h i wa l
un der
Irri
Basmati
Other
Ri ce
th e
Major Players
Major players in the rice processing industry are
located in Lahore, Gujranwalan and Hafizabad
districts. etc.
MARKETING
Local Mar ket
Rice is the second largest food item of the Pakistani
households after wheat flour. During the last decade, the
production of rice in Pakistan has been around 5 million
tons per annum. Around 2.9 millions tons of rice is
available for domestic consumption of Pakistan. The per
capita availability of rice in Pakistan is 20.78 kg.
Market Segments
According to buying power of the rice consumers, the
market for rice can be broadly categorized into three
major groups. Lower income group, includes people with
RAW MATERIALS
The raw material of the husking unit is paddy, obtained
from rice harvesting. The paddy can be purchased from
the local grain market (Mandi) as well as directly from
the farmers on cash basis. The paddy-harvesting season
starts in mid of September and ends in December.
Rice Husking
Rice husking unit will use the paddy as raw material.
Husking is the process of separating the rice from the husk.
Rubber roll and hullers are used to shatter the paddy to
produce rice. Different processes are used for separation
of head rice, broken rice, rice powder, dust & bran.
Polishing Unit
Rice polishing unit will use the brown rice for cleaning and
polishing. Various types of cleaners/polishers are used to
give shining and silkiness to the rice. The husking of paddy
produces different products, including 53% head rice, 10%
broken rice, 2.5% powder rice, 33.50% husk and 1.00%
waste &dust particles. The rice-polishing unit processes
the head rice (brown rice) to make different value added
rice products like silky and non-silky rice.
The operations of a polishing unit are spread over a period
of eight months. In the current industrial practice, both the
husking and polishing units are not operated at one time
due to certain reasons. After the husking operation, the
brown rice requires a time of six to ten weeks for the drying
and conditioning. So, the brown rice is stored for a period of
at least two months before taking it to the polishing
process. For the purpose of this report major portion of
Rs.2,74,000
Rs.5,639,000
Rs.200,000
Office Equipment
Total cost
Rs.375,000
Kanal
32
87,500
6,000,000
Project Summary
Total Cost
Land
6,000,000
Building
21,359,272
9,859,950
Furniture an Fixture
200,000
Office Equipment
375,000
Vehicles
Pre operating Expenses
Contingencies
Initial working Capital
2,039,000
770,000
106,890
29,086,402
69,796,514
Project Economics
Bank
40%
27,918,606
Equity
60%
41,877,908
Total Financing
100%
69,796,514
DEDICATION
We dedicate this report to our
beloved parents, teachers and
friends
Pr ojec t C os t:
Objectives of Project.
5- We will strive to provide our customers with the largest
selection of rice varieties
6- To
p r ovi de
th e
ri c e
at
af fo r d a b l e
p ri c e
to
th e
c us t ome r s .
7-
8- De a l wi th h on e s ty a n d fa i r n e ss .
O u r Ta r g e t M a r ke t .
O u r ta r ge t ma r ke t i s to c ove r th e a r e a of e as te r n Pu n j a b ,
especially in the area of
Sources of funds
4 0 % of to ta l c a p i ta l we ta ke as a l on g te r m l oa n f r om
fi n a n c i a l i n s ti tu ti o ns a n d 6 0 % fr om own s ou r c e s .
Location of Project.
Yous a f Wa l a
5 km L a h or e r oa d
Sa h i wa l .
C.E.O.
Mr. Zahid Hussain
Finance Manager
Mr. Abid Nadeem Ghori
G.M
Mr. Muhammad Yar
Sales Manager
Mr. Nadeem Iqbal
Marketing Manager
Mr. Ahmad
HR Manager
Ms.Taiba Aslam
Bi bliog r aphy
3-
haw alna ga r
R ice mill s)