Fendar Dal Mill, Bhandara

Business Plan – Dal Mill Unit

Submitted by:
Mr. Prabhu Estari Fendar

Prepared by:
Agri Business Promotion Facility (Grant Thornton India
LLP), Maharashtra Agricultural Competitiveness Project
Table of Content
Page
CHAPTER 1: Introduction 1
1.1. Introduction/ Background of Entity 1
1.2. Global Scenario 1
1.3. Indian Scenario 2
1.4. istrict Profile: Bhandara 7
1.5. Commodity profile 8

CHAPTER 2: Profile of Entity 14

2.1. General Information 14
2.2. Academic Profile 14

CHAPTER 3: Details of Proposed Project 15

3.1. Land and Building 15
3.2. Machinery and Equipment 15
3.3. Pre-operative expenses 16
3.4. Working Capital 16
3.5. Total Cost of the Project 16
3.6. Means of Finance 16

CHAPTER 4: Market Potential, Manufacturing Process and Production Plan 17

4.1. Market Potential 17
4.2. Farming Process 17

CHAPTER 5: Financial Plan and Key Indicators 19

5.1. Revenue Schedule 19
5.2. P&L Statement 20
5.3. Cash flow Statement 20
5.4 Term Loan 21
5.5. Financial Indicators 21

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 Project at a Glance

1. Name of Project : Mahatma Phule Dal Mill

2. Business : Dal Mill
3. Project Location: At post Mandhangaon, Bhandra
4. Project Cost :

Sr.
Particular Total Value
No.
1 Land and Building 873,000
2 Machinery and Equipment 1,465,345
3 P&P Expenses 5,000
4 Working Capital 477,950
Total 2,821,295

5. Means of Finance :
Sr.
Particular Total Value
No.
1 Own Contribution 821,295
2 Bank Finance - Long Term Loan 1,000,000
3 Grant/ Subsidy 1,000,000
Total 2,821,295

6. Term Loan :
Indian Overseas Bank
Rate of Interest: 9.15% per annum
Outstanding Repayment
Year Disbursement at end of the Interest Net benefit
Principal Interest
year
1 st 1,000,000 1,000,000 91,500 1,741,332 0 91,500
2nd 1,000,000 91,500 1,737,017 218,186 91,500
3 rd 781,814 71,536 2,195,103 238,150 71,536
4th 543,665 49,745 2,553,568 259,940 49,745
5 th 283,725 25,961 2,869,462 283,725 25,961
Total 1,000,000 1,000,000 330,242

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 CHAPTER 1: Introduction

1.1. Introduction/ Background of Entity

Fendar Dal Mill is proprietorship concern of Mr. Prabhu Estari Fender. The promoter tends to
establish dal mill for the purpose of carrying out processing of pules and set up the unit for same.
The unit will be set up at post Mandhangaon District: Bhandra
1.2. Global Scenario
In global terms, India is the largest producer as well as consumer of several pulse varieties. Pulses
contribute significantly to the protein supplement of the vegetarian population in the country. Pulses
are mainly consumed in the form of split-pulse dal, which is an essential supplement to the cereal
based diet in the Sub-continent. A wide variety of processed pulses ranging from pigeon peas or red
gram (tur), lentil, green beans (mung) and chick peas (chana) is consumed mainly as pulses in India.
India is the largest producer of pulses at around 14.5 million tonnes annually. India has been exporting
limited quantity of pulses mainly to those countries where there is larger Indian population. During
2014-15 India exported 1220 MT of Tur. The percent share of tur amongst the pulses export was
around 9.1 per cent. Major export destinations for Indian pulses are the USA, Nepal, Canada,
Singapore and the UK where the Indian population are in bulk. Important tur growing districts in
Maharashtra are Latur, Amravati, Yavatmal and Osmanabad.
Processed pulses have a gamut of applications. In the Indian circumstances, important pulses have
applications upon processing for use as pulses and cattle/livestock feed. Chickpea, for example, is a
major pulse crop of India and Pakistan, and is called garbanzo bean in the West. It is used to make a
variety of preparations, some of which are main dishes, and others- snacks. To elaborate, chickpea is
used as dal, for which traditionally chickpea is soaked in water for a couple of hours and water drained.
The chickpea is then cooked with vegetables and eaten with rice or wheat bread. Roasted and fried
chickpeas are used as snack food. Pigeon pea is primarily used as dal to go with rice or used to make
soups. Mung bean is a popular pulse with diverse uses. It is used as dal; to make curries; sweet and
salty soups; is boiled and toasted with onion, chilli and salt; in sweet and salt pongal (a South Indian
rice preparation); and patties and sweets of different kinds to make mini sweet desserts. Lentils are
primarily used as dal, and are also roasted and used as snacks. Black gram, which is also a rich source
of protein, is an important ingredient to make popular breakfast food items (in South India) like idli,
dosa and uttappam. Rice and black gram are soaked independently in water for a few hours and the
husk from black gram is removed. The rice and black gram are ground (wet grinding) separately and
then mixed together. Salt is added to taste and the mix is fermented overnight. The next day, it is ready
to be used to make steamed bread (a popular breakfast dish in South India) called idli or pancake-like
fried bread called dosa or uttappam.
In many countries in East Asia pulses are utilised for domestic consumption and for processing into
noodles and for starch extraction. Protein residue from noodle factories has been used as animal feed

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in the Philippines, Taiwan and China. Mung bean flour is used as stuffing in various dessert products.
Therefore, it can be concluded that it is a staple food of most of the Asian population

The world’s major producers of pulses are India (23.1%), Canada (6.7%), China (12.08%), Myanmar
(7.57%), and Brazil (4.03%), which together account for half of the global output.1

Share of major pulses producers in 2012

The pulse industry in India generally refers to a number of crops like chickpeas (locally known as
chana), tur, masur, urad, moong, and peas. According to 2012 statistics from the United Nation’s Food
and Agriculture Organization (FAO), the most important pulses by production are dry beans (29.4%),
dry peas (24.5%), chickpeas (13.7%), dry cow peas (8.5%), pulses (nes) (7.2%), and broad beans
(5.7%). These together contributed 89% to the total global output of 70 million tonnes in 2012. In
world production, dry bean is the most important going by area and production, followed by chickpea
and pea. Lentil, which constitutes 4.6% of the global pulses output, is mainly produced in India,
Australia, and Canada.
This study provides global and regional trend analysis on the pulse crop production, price, trade, and
consumption patterns observed in the developing world, developed countries, and globally from 1960s
to 2011. Reviewing secondary data and published research and analysis reports, the study targets major
pulse producers including both developing and developed countries.
1.3. Indian Scenario
India has a very large vegetarian population for whom the main source of protein are dairy and pulses.
Thus, in spite of being the largest consumer of pulses, India is a large importer. Therefore, there is
need to augment production and reduce post-harvest wastage. On the farming side the prices of pulses
are quite high and thus even with low productivity levels as compared to other crops, pulses are
remunerative for farmers.

Tur is one of the important pulses in India that is consumed throughout the country. Tur (Cajanus
cajan) also popularly known as pigeon pea, red gram and arhar is an important grain leguminous crop
of India. It contains high protein content of around 22 per cent. Tur is mostly cultivated in countries
falling under tropical and subtropical zones especially in South Asia, Eastern and Southern Africa,

1 http://www.ipga.co.in/pulses-market-india-and-world

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Latin America, Central America and South America. India is the largest producer and consumer of tur
followed by Myanmar, Tanzania, Malawi, Haiti and Uganda. Maharashtra is the largest producer of Tur
in the country accounting for nearly 32.58 per cent of total production followed by Karnataka, Madhya
Pradesh, Uttar Pradesh, Gujarat and Andhra Pradesh in 2013-14. Among major Tur growing states,
however, yield of the crop is less compared to states like Jharkhand, Bihar and Haryana. An important
problem is the unavailability of storage space. Most producers undertake cultivation of tur as a support
crop after cotton and soybean, and not as the main crop. Besides, most of the area is under rain-fed
condition. Yet another issue that confronts farmers is wilting and insect pest. Due to the wilting
problem producers undertake cultivation of tur on raised bunds than in the main field. This leads to
inadequate plant population. Timely availability of inputs such as fertilizer and chemicals is also a gap.
In the context of processors, they are able to utilize only 50 per cent of capacity as during off season
the availability of raw material declines. Working capital for stocking is also a constraint for processing
stakeholders.

Among pulses, Tur, Mung and Chana are the major crops. Tur is a two seasonal crop having 170 day’s
duration. This crop is sown in last week of June or First week of July. At the end of rainy season i.e. 90
to 100 days after sowing flowering starts in this crop. Because of low moisture in soil, there is shedding
of flowers. It reduces the number of pods and finally the yield is low in rain fed situation. Area of Tur
in this district is 89700 ha, but less than 3% area is irrigated. Proportion of rain fed area is maximum
hence the average yield is only 565 kg / ha. This crop responds very wells to improved crop
management practices under irrigated condition. There is considerable scope for its improvement in
productivity .India is largest producer of Chickpea (also called Chana) in the world and cover
maximum area. Total world production of Chickpea is 13102.02 thousand tonnes which is cultivated in
13540.39 thousand hectare in 2013. India ranks first in both area (68.51 %) and production (68.09 %).
In India, chickpea is mainly grown in winter season in northern and central region of the country.
Major producing states in the India are Madhya Pradesh (42.72%), Rajasthan (13.78%), Maharashtra
(10.58%), Uttar Pradesh (8.89%), Andhra Pradesh (6.75%), Karnataka (6.08%), Gujarat (3.54%),
Chhattisgarh (3.12%), Jharkhand (1.77%) and Bihar (0.99%). Chickpea requires a cool climate for
growth and high temperature for maturity. It is a spring season crop and performs better at 24 to
32OC temperature. Gram is grown practically on varieties of soil types ranging from very light to
heavy soil. In Maharashtra, chickpea is raised on black soils. The seed rate varies from 80 to 100 kg/ha
in Kabuli and 50 to 70 kg/ha in deshi chickpea. Chickpea is mostly grown as a rain-fed crop and is
capable of extracting moisture from deeper layer of soils. Most of its roots are usually confined within
upper 2 feet of soil. However, where irrigation facilities are available, one pre sowing irrigation may be
given for proper germination and better crop growth.

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Pie Chart showing production of pulses in India

State wise production of pulses in India2

Following are the states having major contribution of pulses in India. Crops that come under pulses
are Chickpea, Pigoen pea, Mung. Urad and Lentil. Madhya Pradesh and Maharashtra are having major
contribution for the production of Chickpea with 29% and 20% respectively. Maharashtra is having
major contribution for production of Pigeon pea ( 39%). Rajasthan (35%) is having more contribution
for production of Mung followed by Maharashtra, A.P, Karnataka. Uttar Pradesh is contributing only
3% for the production of Mung, whereas it is contributing 46% for the production of Lentil.

Crops States to be covered

Chickpea Madhya Pradesh (29.37%), Maharashtra (20.03%), Andhra Pradesh (15.48%), Rajasthan
(9.73%), Karnataka (9.63%), Uttar Pradesh (6.42%) & Gujarat (3.57 %)
Pigeon Maharashtra (39.24%), Karnataka (17.57%), Andhra Pradesh (10.94%), Uttar Pradesh
pea (11.85%), Gujarat (10.65%) and Madhya Pradesh (7.86%)
Mung Rajasthan (34.67%), Maharashtra (30.92%), Andhra Pradesh (18.08%), Karnataka
(9.00%), Orissa (5.17%), Tamil Nadu (4.58%) and Uttar Pradesh (3.33%)

Urad Maharashtra(23.36%) AP(18.50%), UP(12.29%), MP(11.86%), Tamil Nadu (8.64%),

bean Karnataka (4.57%), Rajasthan (4.29%) and Orissa (3.00%)
Lentil Uttar Pradesh (45.79%), Madhya Pradesh (30.21%), Bihar (12.00%) and West Bengal
(4.21%)

2 http://agropedia.iitk.ac.in/content/area-production-and-productivity-major-pulses

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Area, Production and Productivity of Chickpea in Major States

S. No. Particulars Area % Share Production % Share Productivity

(lakh/ha) (lakh t) (kg ha-1)

1 Andhra Pradesh 6.30 8.55 9.12 15.48 1447.62

2 Gujrat 2.15 2.92 2.10 3.57 976.74
3 Karnataka 6.05 8.21 5.67 9.63 937.19
4 Madhya Pradesh 24.30 32.97 17.30 29.37 711.93
5 Maharashtra 13.53 18.36 11.80 20.03 872.14
6 Uttar Pradesh 5.05 6.85 3.78 6.42 748.51
7 Rajasthan 12.31 16.70 5.73 9.73 465.48
Sub-total 69.69 94.56 55.50 94.23 796.38
Total 73.70 100.00 58.90 100.00 799.19
Area, Production and Productivity of Pigeon pea in Major States

S. No. Particulars Area % Share Production % Share Productivity

(lakh ha) (lakh t) (kg ha-1)
1 Andhra Pradesh 4.63 12.75 3.02 10.94 652.27
2 Gujrat 2.65 7.30 2.94 10.65 1109.43
3 Karnataka 6.81 18.76 4.85 17.57 712.19
4 Madhya Pradesh 3.50 9.64 2.17 7.86 620.00
5 Maharashtra 11.75 32.37 10.83 39.24 921.70
6 Uttar Pradesh 3.68 10.14 3.27 11.85 888.59
Sub-total 33.02 90.96 27.08 98.12 820.11
Total 36.30 27.60 760.33
Area, Production and Productivity of Green gram in Major States

S. No. Particulars Area % Share Production % Share Productivity

(lakh/ (lakh t) (kg ha-1)
ha)

1 Andhra 4.40 12.79 2.17 15.50 493.18

Pradesh
2 Gujrat 2.30 6.69 1.21 8.64 526.09
3 Karnataka 5.28 15.35 1.08 7.71 204.55
4 Maharashtra 6.71 19.51 3.71 26.50 552.91
5 Uttar Pradesh 0.72 2.09 0.40 2.86 555.56
6 Rajasthan 10.60 30.81 4.16 29.71 392.45
7 Tamil Nadu 1.71 4.97 0.55 3.93 321.64
8 Orissa 2.55 7.41 0.62 4.43 243.14
Sub-total 34.27 99.62 13.90 99.29 405.60

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 Total 34.40 100.00 14 100.00 406.98
Area, Production and Productivity of Black gram in Major States

S. No. Particulars Area(lakh % Production % Productivity

ha) Share (lakh t) Share (kg ha-1)
1 Andhra Pradesh 5.03 16.23 2.59 18.50 514.91
2 Karnataka 1.26 4.06 0.64 4.57 507.94
3 Madhya 4.72 15.23 1.66 11.86 351.69
Pradesh
4 Maharashtra 5.75 18.55 3.27 23.36 568.70
5 Uttar Pradesh 3.91 12.61 1.72 12.29 439.90
6 Rajasthan 1.45 4.68 0.60 4.29 413.79
7 Tamil Nadu 3.41 11.00 1.21 8.64 354.84
8 Orissa 1.50 4.84 0.42 3.00 280.00
Sub-total 27.03 87.19 12.11 86.50 448.02
Total 31.00 14.00 451.61

Area, Production and Productivity of Lentil in Major States

S. No. Particulars Area(lakh % Share Production % Share Productivity

ha) (lakh t) (kg ha-1)
1 Madhya 5.64 37.60 2.87 30.21 508.87
Pradesh
2 Uttar Pradesh 6.08 40.53 4.35 45.79 715.46
3 Bihar 1.62 10.80 1.14 12.00 703.70
Sub-total 13.94 92.93 8.76 92.21 628.41
Total 15.00 100.00 9.50 100.00 633.33

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1.4. District Profile: Bhandara
Bhandara, commonly known as the rice bowl of
Maharashtra is in the Vidarbha region. Bhandara is a very
small district and fifth-least populated district in the state.
About 80 percent population lives in rural areas.
Agriculture accounts for 68per cent of the labour force
but is fragmented with 90per cent of small and marginal
landholdings. Average landholding size is 0.95 ha
compared to 1.44 ha at the state level. The per capita
income at Rs 60,674 is well below the Maharashtra
average of Rs 95,339 but comparable with Vidarbha
region at Rs 58,965. Annual rainfall is 1,330 mm, the
highest in the Vidarbha and 41per cent of land is irrigated.
Surface irrigation accounts for 69per cent area and suited
for rice production that accounts for 80per cent of gross cropped area. Bhandara is predominantly a
rice district. Wheat has an area of 5per cent and Pulses (Red Gram and Bengal Gram) have 7per cent
area. Sugarcane is a fast emerging crop in the district, primarily feeding into two sugar factories and
Jaggery units. Turmeric is also picking up in the district but cropping area fluctuates as per market
rates.
Bhandara has 5 primary APMCs with 12 market yards, 7 sub yards and 20 rural haats, all largely trading
paddy and rice. APMCs, together, account for 40per cent of total produce sold in the district. Paddy
accounts for 87per cent of all commodity arrivals at APMCs. Tumsar is the largest APMC market,
both volume and value wise, and accounts for 85per cent of all commodity arrivals among APMCs.
There still predominantly exist manual weighing and manual/visual grading assessment practice by
traders/commission agents that runs against the interest of farmers and is prone to manipulation.
APMC should make it mandatory to introduce mechanical grading machines in all markets meeting
Agmark standards. Farmers should also be educated and trained on grade assessment parameters for
all major crops in all government training. Extension services are provided by the Agri department,
ATMA and KVK. The KVK is directly managed by the Dr. Panjabrao Deshmukh Krishi Vidyapeeth,
Akola. The Agriculture department also runs a toll free number as a Kisan Call Centre. BSNL Kisan
Sim Card also provides SMS information on markets and technical matters. Like in many other
districts, extension outreach is limited as input dealers and fellow farmers are still the major sources of
information on farm practices. Rice mills are the largest food processing activity in the district with 280
private mills and another 60 in the pipeline. Nearly 20per cent of mills procure paddy directly from
farmers. Nearly 30 rice milling units are fully integrated offering processing including sorting, grading,
milling, polishing, sizing and packaging facilities. Rice mills are capital intensive activity and farmers
gain only a small portion of the final price of rice. There is potential for setting up small scale rice mills,
owned and managed by farmer groups to move up the value chain. Few processing units exist for
sugarcane and turmeric also. Only 20per cent warehouses are accredited for warehouse receipt finance
and ware housing is of limited capacity. Cases of paddy rotting due to inadequate storage are very
common during monsoons. Warehouses are mainly used by individual traders or trading firms as
existing warehouses don’t address specific needs of small and marginal farmers. There is a need for
setting up new warehouse facilities suitable for small and marginal farmers.
The business opportunities were found to be suitable for Bhandara include Paddy (small scale rice mill,
puffed rice processing mill and poha mill), Pulses (integrated pulses processing unit), Turmeric
(turmeric powder processing unit), and Wheat (mini flour mill). After further analysis, business models

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of a small scale rice mill with an investment potential of Rs 4.9 lakh and puffed rice processing mill
with an investment potential of Rs 4.3 lakh are proposed in the district.
1.5. Commodity profile

1.5.1 Tur
Pigeon pea or red gram, also known as arhar and tur, is mainly cultivated and consumed in developing
countries of the world. It is an important pulse crop in India
and contributes about 20 % to the total production of
pulses. India is a largest producer of pigeon pea in the world
and contributes more than 60 % of the total world
production. It is the rich source of protein to large
population of the country. It enhances the soil fertility
through fixing atmospheric nitrogen. Its seeds are round or
lens shaped, the flowers are generally self-pollinated and the
fruit is a pod. Numerous species of red gram exist which
differ in height, habit, time of maturity, colour, size and shape of pods and seeds.
Its actual place of origin is believed to be either India or Africa. Red gram (Cajanuscajan (L) Millsp)
belongs to family Leguminosae. Red gram is a protein rich staple food as it contains more than 20 %
protein, which is almost three times that of cereals and is mainly consumed in the form of split pulse as
Dal, which is an essential supplement of cereal based diet and is consumed in different combinations
of pulse-rice or pulse-wheat bread in Indian diet. It is reported that the biological value improves
greatly, when it is consumed in combination with wheat or rice because of the complementary
relationship of the essential amino acids. It is also rich in lysine, riboflavin, thiamine, niacin and iron. It
is also used in animal feed. Red gram also plays an important role in sustaining soil fertility by
improving physical properties of soil and fixing atmospheric nitrogen. Being a drought resistant crop, it
is suitable for dry-land farming and predominantly used as an intercrop with other crops (Cotton,
sorghum, pearl-millet, green gram, black gram, maize, soybean and groundnut) for increasing
production and maintaining soil fertility.
Red gram is grown throughout the tropical and subtropical countries of the world, especially in South
Asia, Eastern and Southern Africa, Latin America, Caribbean countries and Australia. According to
FAO statistics, worldwide red gram was grown in about 5.33 million ha and its production was 4.33
million tonnes in 2012. India is the largest producer of red gram accounting 61.21 % of total
production and 72.51 % of total area of the world. Other major red gram producing countries are
Myanmar (20.79 %), Tanzania (6.93 %), Malawi (5.48 %), Kenya (2.06 %) and Uganda (1.94 %). The
productivity is highest in Uganda (1000 kg/ha) followed by Nepal and India.
Area and production of red gram during 2012-13 in major growing countries of the world are given
below:
In India, red gram is one of the most widely cultivated pulse crops. It was grown over an area of 3.98
million ha with a production of 2.65 million tonnes in2011-12.
Maharashtra is the largest producer of red gram, accounting for nearly 32.82 % of the total production
followed by Karnataka (13.34 %), Madhya Pradesh (12.59 %), Uttar Pradesh (12.58 %), Gujarat (9.68
%), Andhra Pradesh (5.50 %), Odisha (4.35 %), Jharkhand (3.88 %), Bihar (1.26 %) and Tamil Nadu
(1.18 %). These top ten tur producing states contribute about 97 % of the total area and production of
the country in 2011-12. Among major red gram growing states, Maharashtra has the largest area under

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the crop and accounts for about one-third area of the country, followed by Karnataka (18.91 %),
Madhya Pradesh (12.58 %), Andhra Pradesh (12.20 %), Uttar Pradesh (8.04 %) and Gujarat (5.90 %).
Major red gram producing districts in Maharashtra includes Latur, Osmanabad, Aurangabad, Jalna,
Nanded, Parbhani etc.
Major commercial varieties grown in Maharashtra are Parbhat’ ‘UPAS 120’, ‘T 21’, ‘PusaAgeti’, ‘Pusa
74’, ‘J 9-19’,’TAT 10’, ‘Vishaka 1’ (‘TT 6’), ‘Khargone 2’, ‘T 15-15’, ‘PT 301’, ‘JA 3’, ‘No.84’and
‘No.29021’. All these varieties come under three categories which are early, medium and late ones.
It was reported that sowing is preferred around new moon day for better seedling nutrition, as the
moon is away from the earth and nutrients concentrate towards roots. It is normally cultivated in rainy
kseason beginning from June - July and ends in November - December. It is a kharif crop in India and
arrivals start from October and extend till December.
Farmers are reported to use on an average 16 kg of urea/acre, 25 kg DAP/acre and 14 kg of
MOP/acre.
Pigeon pea is generally broadcasted but line sowing is considered to be superior over broadcasting.
The seed rate of 15-25 kg/ha of pigeon-pea is sufficient and treat the seeds with a mixture of
Beejamrut (200gm/kg seed) and Trichodermaviridi (8 g/kg of seed) and dry the seeds in shade. It is
again treated with Rhizobium and PSB bio-fertilizer (5g each per kg of seed) and dry in shade and
treated seeds should be sown with 4-6 hour of treatment.
It is recommended that between 50 and 60 days of germination, the main shoot tip and the secondary
branch tips are pruned. This promotes development of large number of tertiary shoots which bear
more number of pods, thus increasing the yield by 30-50 %. First weeding (hoeing) is to be done at 20-
25 days, while second hoeing is done at 50-60 days after sowing after this no weeding is required. It
requires 35-40 cm water, during its entire growth period. Optimum moisture is necessary during (a)
budding (b) flowering and (c) pod formation stages.
Pod borer or boll worm (Helicoverpa), aphids, jassids, thrips, mites etc. are some of the important
insect pests of red gram. It requires 2-3 sprays of 5% neem seed kernel extract (NSKE) at an interval
15 days or 20 kg of Neem leaves boiled with 100 litres water can also be used or garlic, chilli and neem
crushed in cow urine can be sprayed on leaves.
It gives 15-20 quintal/ ha as rain-fed intercrop and 25-30 quintal/ha as irrigated mono crop as very
early and early varieties yield 20-30 % less.
Harvesting is done when crop matures and most of the leaves are shed and 80 % pods turn brown.
Pulses are generally converted into dal by decutilating and splitting the whole seed. Over 75 % of the
total legumes produced in the country are split into dal. Dehulling pigeon-pea is a primary process that
converts the whole seed into dhal. The dehulling operation involves, loosening the husk from the
cotyledons and removing the husk from the cotyledons and splitting them using a roller machine or
stone chakki (quern). Before dehulling in chakki, pigeon-pea seed is soaked in water for 2-14 hours and
in few cases farmers treat the seed with oil before dehulling.
There is a sizeable quantitative and qualitative loss of pulses during different post-harvesting
operations like threshing, winnowing, transportation, processing and storage. Hence, it is appropriate
to give due emphasis to reduce qualitative as well as quantitative losses of pulses during post-harvest
operations, which are estimated to be in the order of about 7-10 percent
To avoid post-harvest losses, following preventive measures should be considered: harvest timely to
reduce losses; avoid the losses in threshing and winnowing by adopting modern mechanical methods.

9
The grading is beneficial to farmers, traders as well as to the consumers. In the market, the sale is
generally done on the basis of visual inspection of available sample and with local commercial name.
Buyers offer price on the visual examination of whole lot considering the quality factors like size and
colour of grains, moisture content, refraction and admixture with other varieties.
A number of pests damage the produce during storage. These pests cause both quantitative and
qualitative losses. Pests of red gram also damage seed viability and nutritive value of the produce. The
infestation of these pests depends on various factors like moisture content of the grains, relative
humidity, temperature, storage structures, storage period, processing, unhygienic condition, fumigation
frequency, etc. Dry clean seeds/grains in sun to ensure moisture below 80 %. Beetles affect red gram
in storage and it is recommended mix crushed neem leaves with grains and store in gunny bags. Gunny
bags can also be treated with 5% neem oil.
Major markets market in Maharashtra are Latur, Jamkhed, Karjat, Kopargaon, Newasa, Parner,
Pathardi, Rahuri, Sangamner, Shevgaon, rigonda, Shrirampur, Dhule, Akola, Dondaicha, Baramati,
Sangli, Solapur, Aurangabad, Jalna, Murud and Nagpur.
The disposal of red gram commences shortly after threshing since the producers require funds for the
purpose of discharging their various financial obligations. In Maharashtra markets, red gram is
dispatched to Delhi, Uttar Pradesh, West Bengal and Rajasthan.
India is the largest red gram-producing country and major portion of production is consumed in the
country itself. Since India is deficit in pulses, only small quantities of red gram were exported mainly to
UAE, USA, UK, Kuwait, Malaysia, Singapore and Saudi Arabia.
Most of the exporters of tur undergo contract farming with the farmers for the procurement of the tur
for the export purpose in Akola, Latur, Jalna, Amaravati, Prabhani etc. Exporters regularly supervise
and guide the farmers for the crop management especially for the chemical spray and disease and
insect pest management. The tur procured through this contract farming has very fair chance for
complying the international import standards like NOP, JAS, EU, NPOP etc.
The NAFED also undertakes procurement activities of tur through state and district cooperative
marketing federation under the MSP support mechanism.
Tur is also traded through the spot exchanges on NCDEX Spot and National Spot Exchange

National spot exchange has introduced customized contract to NAFED, HAFED, FCI, PEC,
MMTC and major bullion dealers to help them reach out to the buyers located across geography.

1.5.2. Mung
The mung bean (Vigna radiata), alternatively known as the moong bean, green gram, is
a plant species in the family. The mung bean is mainly cultivated in India, China, and Southeast Asia. It
is used as an ingredient in both savory and sweet dishes.
Whole cooked mung beans are generally prepared from dried
beans by boiling until they are soft. Mung beans are light
yellow in colour when their skins are removed. Mung bean
paste can be made by dehulling, cooking, and pulverizing the
beans to a dry paste. Although whole mung beans are also
occasionally used in Indian cuisine, beans without skins are
more commonly used; but in Kerala,whole mung beans are

10
commonly boiled to make a dry preparation often served with rice gruel (kanji). Dehulled mung beans
can also be used in a similar fashion as whole beans for the purpose of making sweet soups. Mung
beans in some regional cuisines of India are stripped of their outer coats to make mung dal. In Tamil
Nadu, Telangana and Andhra Pradesh, steamed whole beans are seasoned with spices and fresh grated
coconut in a preparation called sandal. In south and north Indian states, mung beans are also eaten as
pancakes. They are soaked in water for six to 12 hours (the higher the temperature, the lesser soaking
time). Then they are ground into fine paste along with ginger and salt. Then pancakes are made on a
very hot griddle. These are usually eaten for breakfast. This provides high quality protein that is rare in
most Indian regional cuisines. Pongal or kichdi is another recipe that is made with rice and mung beans
without skin. In Kerala, it is commonly used to make the parippu preparation in the Travancore region
(unlike Cochin and Malabar, where tur dal, tuvara parippu, is used). It is also used, with coconut milk
and jaggery, to make a type of payasam.
Moong bean is the seed of Vigna radiate, which is native to India. The beans are small, ovoid in shape,
and green in colour. They are generally eaten either whole (with or without skins) or as bean sprouts,
either in raw, soaked or boiled form. Moong beans are used to make salads, soups, subzis, and other
delicious dishes. The starch of moong beans is also extracted from them to make jellies and
transparent/cellophane noodles.

1.5.3. Lacori
Lathyrus sativus is a legume (family Fabaceae) commonly grown for human consumption and
livestock feed in Asia and East Africa. It is a particularly important crop in areas that are prone to
drought and famine, and is thought of as an 'insurance crop' as
it produces reliable yields when all other crops fail. The seeds
contain a neurotoxin that causes a neurodegenerative disease
when the seeds are consumed as a primary protein source for a
prolonged period

Lathyrus sativus grows best where the average temperature is

10–25 °C and average rainfall is 400–650 mm per year. Like
other legumes, it improves the nitrogen content of soil. The
crop can survive drought or floods but grows best in moist soils. It tolerates a range of soil types from
light sandy through loamy to heavy clay and acid, neutral or alkaline soils. It does not tolerate shade

Like other grain legumes, L. sativus produces a high-protein seed. The seeds also contain variable
amounts of a neurotoxic amino acid N-Oxalyl -L-diaminopropionic acid or ODAP or BOAA.ODAP
is considered as the cause of the disease neurolathyrism, a neurodegenerative disease that causes
paralysis of the lower body: emaciation of gluteal muscle (buttocks).The disease has been seen to occur
after famines in Europe (France, Spain, Germany), North Africa, South Asia, and is still prevalent in
Eritrea, Ethiopia and Afghanistan (pan handle) when Lathyrus seed is the exclusive or main source of
nutrients for extended periods. Research has shown that ODAP concentration increases in plants
grown under stressful conditions, compounding the problem.

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1.5.4. Chickpea
Chickpea or Bengal gram is a legume and a native of the
Mediterranean region. It is a major ingredient of many
Middle Eastern, Mediterranean and Indian dishes. Bengal
gram is a major pulse crop in India, widely grown for
centuries and accounts for nearly 40 % of total pulse
production. India is the major growing country in the
world, accounting for about more than 60 % of the total
world area under Bengal gram. Chickpea is used in various
dishes in different parts of the world. Dal, or split grains
are cooked into a thick soup, is a traditional dish in India. Hummus, mashed chickpea mixed with oils
and spices, is a popular appetizer in the Middle East and Mediterranean region. Sprouted seeds are
recommended for curing scurvy. India is largest producer of Chickpea in the world and cover
maximum area. Total world production of Chickpea is 13102.02 thousand tonnes which is cultivated in
13540.39 thousand hectare in 2013. India ranks first in both area (68.51 %) and production (68.09 %).
In India, chickpea is mainly grown in winter season in northern and central region of the country.
Major producing states in the India are Madhya Pradesh (42.72%), Rajasthan (13.78%), Maharashtra
(10.58%), Uttar Pradesh (8.89%), Andhra Pradesh (6.75%), Karnataka (6.08%), Gujarat (3.54%),
Chhattisgarh (3.12%), Jharkhand (1.77%) and Bihar (0.99%).

Chickpea requires a cool climate for growth and high temperature for maturity. It is a spring season
crop and performs better at 24 to 32OC temperature. Gram is grown practically on varieties of soil
types ranging from very light to heavy soil. In Maharashtra, chickpea is raised on black soils. The seed
rate varies from 80 to 100 kg/ha in Kabuli and 50 to 70 kg/ha in deshi chickpea. Chickpea is mostly
grown as a rain-fed crop and is capable of extracting moisture from deeper layer of soils. Most of its
roots are usually confined within upper 2 feet of soil. However, where irrigation facilities are available,
one pre sowing irrigation may be given for proper germination and better crop growth.
Gram, being a dwarf statured crop suffers severely by weed infestation. Similarly, uncontrolled weeds
may limit chickpea yields. With regard to insect’s pests and disease management pod borer is an
important symptom. Pod borer invades the crop from seedling to maturity; Larvae feed on leaves,
flowers & pods Larvae mostly green, can be brown, yellow or pink. For this it is necessary to use
moderate resistant cultivars like ICCV 10, Vijay and spray indoxacarb @ 1 ml/L, Apply HaNPV @
250 LE/ha at 10-15 days interval as well as spray neem seed extract (5%), early sowing, grow short
duration varieties
The crop becomes ready for harvest when leaves turn reddish-brown and start shedding. Plants are
either plucked out by hand or cut with sickle. The crop is allowed to dry in sun on threshing floor for
about 5-6 days. Thereafter threshing is done either by beating the plant with stick or by trampling by
bullocks.
Post-harvest management is the technology of handling of an agricultural produce after harvest to
prolong the shelf life, freshness and an attractive appearance. Nearly, 9 to 10 per cent of grains are
wasted due to faulty post-harvest management during harvesting, threshing, packaging, storage, and
transportation etc. Proper scientific post-harvest management can minimize these losses.

12
To minimize post-harvest losses, the following measures should be followed by timely harvest at
optimum moisture percentage, use of proper method of harvesting, adopt modern mechanical
methods of threshing and winnowing, Use of improved technique of processing, cleaning and grading
of produce as per standards, Use of efficient and good packaging for storage as well as for
transportation i.e. B-Twill Jute bags or HDPE bags and use of proper technique in storage.
Farmers do not give adequate focus on grading of grains. They only clean and remove diseased,
damaged, foreign matters from heap of the grains. Farmers check moisture content in chickpea by
teeth. To separate diseased, damaged and foreign matters from healthy grain, farmers use local sieves.
At last, they grade the grains on the basis of physical appearance, colour, size and availability of foreign
material in the grain heap.
Producers store chickpea in various types of traditional and improved structures. Generally, these
storage structures are used for short period. Different organizations /institutions have developed
improved structures for storage with varying capacities and shapes like Hapur kothi, Pusa kothi, Nanda
bins, and PKV bins. These are usually constructed on a raised platform or plinth constructed of
plastered mud brickwork, stone slabs or wooden planks. Some producers also store chickpea in jute
gunny bags or in gunny bags lined with polythene stacked in room.
With regard to markets in key metros like Chennai, Delhi and Mumbai -soil and climate in this area are
not suitable for chickpea production. The Chennai market depends wholly on chickpea imported from
major chickpea growing regions elsewhere in India and exporting countries through the Tuticorin port
(about 200 kilometres from Chennai) or via the Mumbai port. An interesting feature of this market is
that the entire split chickpea (dhal) consumed is processed outside the state. However, flour is
processed locally. Chickpea is consumed mainly in the form of split chickpea. Chickpea is also
consumed as roasted dhal, followed by flour, and whole chickpea, in that order. The Mumbai chickpea
market is the biggest centre for the consumption and trade of chickpea in India. In Maharashtra,
chickpea is consumed mainly as whole or roasted chickpea. Nearly 80 per cent of chickpea imported
into India come through the Mumbai port. Unlike Mumbai, the Delhi market does not have direct
access to chickpea imports and has to depend on Mumbai port and other primary/ secondary markets
for chickpea supplies. Processed chickpea from Delhi is exported to all states in India. Chickpea is
exported mainly as whole and in the processed form as dal. However, only small quantity of chickpea
is exported to USA, Canada, Saudi Arab, UAE etc. because demand of pulses including chickpea are
very high in India. The demand for chickpea is more where people of Indian origin reside. In 2013-14,
total export of chickpea from India was 304.58 thousand MT.

13
CHAPTER 2: Profile of Entity

2.1. General Information

General Information Entity

Name of the Firm Fendar Dal Mill

Project /activity proposed Dal Mill

Type of Proposed Organization Proprietorship

At post Mandhangaon tah District: Bhandra
Address

Name of the Promoter Mr Prabhu Estari Fender

Age 44

Contact No. 9960033203

2.2. Academic Profile

Qualification Institute

DBM Institute of Bhandara

14
CHAPTER 3: Details of Proposed Project

3.1. Land and Building

Sr.
Particular Unit No. of Unit Rate per unit Total Value
No.
1 Land Sq. ft. Own Own
2 Building Sq. ft. 754 1,158 873,000.00
Total 873,000.00

3.2. Machinery and Equipment

Sr. No.
Description Rate Total Value
No. Required
1 Hi-Tech Mini Dal Mill (6 HP) 1 171,000 171,000
2 Grader ( 2 HP) 1 110,000 110,000
3 Dal Splitter and Separator ( 3 HP) 1 160,000 160,000
4 Polisher ( 3 HP) 1 75,000 75,000
5 Elevator 6 50,000 300,000
6 Buff Polisher ( 10 HP) 1 75,000 75,000
7 De-Stoner ( 2 HP) 1 62,000 62,000
8 Dryer 1 260,000 260,000
9 Roller 2 12,000 24,000
10 Screen - for all crops 10 1,000 10,000
12 VAT (13.5%) 168,345
13 Fitting Charges 50,000
Total 1,465,345

15
3.3. Pre-operative expenses

Sr.
Particular Amount (in lakh)
No.
1 License 5,000
Total 5,000

3.4. Working Capital

Sr. Total Value

Item Duration
No. Year-I Year-II Year-III Year-IV Year-V

1 Raw material 1 week

477,950 537,080 600,928 669,819 744,096
Total
477,950 537,080 600,928 669,819 744,096

3.5. Total Cost of the Project

Sr.
Particular Total Value
No.
1 Land and Building 873,000
2 Machinery and Equipment 1,465,345
3 P&P Expenses 5,000
4 Working Capital 477,950
Total 2,821,295

3.6. Means of Finance

Sr.
Particular Total Value
No.
1 Own Contribution 821,295
2 Bank Finance - Long Term Loan 1,000,000
3 Grant/ Subsidy 1,000,000
Total 2,821,295

16
CHAPTER 4: Market Potential,
Manufacturing Process and Production Plan

4.1. 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 unit’s 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.

This self-help group has the linkages with the local market.

4.2. Farming Process

Pulses

Cleaning chaff,dirt,etc

pretreatment with Lineed/Mustard oil

conditioning

Deshuking and spiltting mixture of husk, small broken and power

17
4.3. Production Programme

Capacity 2 TPD
No. of Hours 8
No. of Operational Days 250

Capacity Utilization 70% 75% 80% 85% 90%

No. of operational days 175 187.5 200 212.5 225
Quantity Required (MT) 350 375 400 425 450

18
CHAPTER 5: Financial Plan and Key
Indicators

5.1. Revenue Schedule

Sr.No Particulars Y1 Y2 Y3 Y4 Y5
Revenue -
A Chana
Grade A 6,300,000 7,087,500 7,938,000 8,855,831 9,845,601
Grade B 1,417,500 1,594,688 1,786,050 1,992,562 2,215,260
Broken 1,260,000 1,417,500 1,587,600 1,771,166 1,969,120
Husk and
105,000 118,125 132,300 147,597 164,093
Powder
Revenue -
B Tur
Grade A 6,825,000 7,678,125 8,599,500 9,593,817 10,666,067
Grade B 1,417,500 1,435,219 1,786,050 1,992,562 2,215,260
Broken 840,000 850,500 992,250 1,180,778 1,312,747
Husk and
105,000 118,125 132,300 147,597 164,093
Powder
Revenue -
C Lacori
Grade A 1,890,000 2,126,250 2,381,400 2,656,749 2,953,680
Grade B 567,000 637,875 714,420 797,025 886,104
Broken 252,000 283,500 317,520 354,233 393,824
Husk and
70,000 78,750 88,200 98,398 109,396
Powder
Revenue -
D Mung
Grade A 4,410,000 4,961,250 5,556,600 6,199,082 6,891,920
Grade B 1,134,000 1,275,750 1,428,840 1,594,050 1,772,208
Broken - - - - -
Husk and
70,000 78,750 88,200 98,398 109,396
Powder
Total 26,663,000 29,741,906 33,529,230 37,479,846 41,668,770

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5.2. P&L Statement

Particulars Y1 Y2 Y3 Y4 Y5
Dal Revenue 26,663,000 29,741,906 33,529,230 37,479,846 41,668,770
Total Revenue 26,663,000 29,741,906 33,529,230 37,479,846 41,668,770
Fixed Cost 426,507 447,832 470,224 493,735 518,422
Variable Cost 24,495,162 27,557,057 30,863,904 34,432,542 38,280,885
Total Operational Expenses 24,921,669 28,004,889 31,334,127 34,926,278 38,799,307
Earnings Before Interest,
Depreciation, Taxes and
Amortization (EBITDA) 1,741,332 1,737,017 2,195,103 2,553,568 2,869,462
Depreciation 190,185 190,185 190,185 190,185 190,185
Amortization 1,000 1,000 1,000 1,000 1,000
Earnings Before Interest and
Taxes (EBIT) 1,550,147 1,545,833 2,003,918 2,362,384 2,678,278
Interest Expense 91,500 91,500 71,536 49,745 25,961
Earnings Before Taxes
(EBT) 1,458,647 1,454,333 1,932,382 2,312,638 2,652,317
Tax 414,594 426,147 584,951 711,996 825,180
Earnings After Taxes (EAT) 1,044,053 1,028,186 1,347,431 1,600,642 1,827,137
Profit (loss) carried to
Balance Sheet 1,044,053 1,028,186 1,347,431 1,600,642 1,827,137
5.3. Cash flow Statement

Sr. Particulars Year ( 1 ) Year ( 2 ) Year ( 3 ) Year ( 4 ) Year ( 5 )

1 Revenue
Total 26,663,000 29,741,906 33,529,230 37,479,846 41,668,770
2 Equity/ Share capital 821,295
3 Grant 1,000,000
4 Long Term Loan 1,000,000
5 Short Term Loan
4 Amortization 1,000 1,000 1,000 1,000 1,000
5 Depreciation 190,185 190,185 190,185 190,185 190,185
Sub Total (A) 29,675,479 29,933,091 33,720,415 37,671,030 41,859,954
Cash Outflow (Rs.)
1 Capital Expenditure
a Land and Building 873,000
b Plant and Machinery 1,465,345
e Preliminary Expenses 5,000
Operational
2 Expenditure
a Fixed Cost 617,691 639,017 661,408 684,920 709,606
b Variable Cost 24,495,162 27,557,057 30,863,904 34,432,542 38,280,885
3 Loan

20
 LTL – Principal - 218,186 238,150 259,940 283,725
LTL – Interest 91,500 91,500 71,536 49,745 25,961
5 Tax 414,594 426,147 584,951 711,996 825,180
Sub Total (B) 27,962,292 28,931,906 32,419,949 36,139,144 40,125,358
Net Cash Flow (A-B) 1,713,187 1,001,185 1,300,466 1,531,886 1,734,597
Opening Cash and Bank 1,713,187 2,714,372 4,014,837 5,546,724
Cumulative Cash
Balance 1,713,187 2,714,372 4,014,837 5,546,724 7,281,320

5.4 Term Loan

Rate of Interest: 9.15% per annum
Outstanding Repayment
Year Disbursement at end of the Interest Net benefit
Principal Interest
year
1 st 1,000,000 1,000,000 91,500 1,741,332 0 91,500
2nd 1,000,000 91,500 1,737,017 218,186 91,500
3rd 781,814 71,536 2,195,103 238,150 71,536
4 th 543,665 49,745 2,553,568 259,940 49,745
5th 283,725 25,961 2,869,462 283,725 25,961
Total 1,000,000 1,000,000 330,242

5.5. Financial Indicators

Internal Rate of Return (IRR):
The project internal rate of return should be more than 10% as per the current financial scenario of
the country. The project IRR is 41.66% therefore it is clearly indicating that the project is feasible for
investment.

Break Even Point:

The average break-even percentage is 17.52% and as per financial standards it should be below 60%.

Payback Period:
The Payback period for the project is 2 years and 4 months. It should be less than 4 to 5 years
therefore the project payback periods are within the limit.

Net Present Value

With a discount rate of 10% and a span of 5 years, the projected cash inflows are worth Rs.
5,763,732 today, which is greater than the initial cash outflow of Rs.2, 821,295 The resulting positive
NPV of the above project is Rs. 2,942,437 which indicates that pursuing the above project may be
optimal.

Return on Capital Employed

The return on capital employed for the project is 48.5% which is above the expected financial
standards.

21
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