PROJECT REPORT OF

MULTIGRAINS
PROCESSING INDUSTRY
GRAINS / PULSES / MILLETS
Name:SharanabasavaHatti

Proposed plot No. : B-203,

Koppala-Basapur KSSIDC Industrial Estate

Company: ABC
 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

1. INTRODUCTION:

Food grains &Pulses refer to the dried, edible seeds of leguminous crops. Grains &Pulses
play a fundamental role as a low-fat, high fibre source of protein and an essential component
of traditional food baskets.These are most essential element for a well-balanced diet and
major source of protein to vegetarian people of India. There are several varieties of grains
&pulses in India. Most of them areproduced and consumed locally. Wheat, Jowar, Rice,
Maize, Ragi ,Chickpeas (Chana), pigeonpeas (Arhar / Toor Dal), Urad(Urad Dal), Mung
(Moong) and red lentils (Masoor) are the top grains & pulses grown in India.These account
for over 80 per cent of the total production in the country. The conversion of grains &pulses
seed into powder form (Atta / Dal) is done through the process of milling. The traditional
method of milling is very cumbersome and produces inferior quality Atta resulting in lesser
benefit compared to milled Atta. The present losses being encountered by the milling
industry can be minimized to a great extent by the use of improved efficiency of milling
process. Final product form mill should be located in area rural or semi-urban area which
have excess production of grains &pulses and connected to market.

1.1. BRIEF GEOGRAPHICAL & INDUSTRIAL PROFILE OF

KOPPAL DISTRICT
Koppal, a newborn district of Karnataka state, carved out of Raichur District, came into
existence on 01-04-1998. Koppal district is an administrative district in the state of Karnataka
in India. In the past Koppal was referred to as 'Kopana Nagara'. Hampi, a World heritage
center, covers some areas of Koppal District. It is situated approximately 38 km away.
Several national seed companies have seed production centres for flowers, fruits, vegetables
and pulses here.
It is situated approximately 38 km away. Anegundi is also a famous travel destination.
Koppal district is bounded by Raichur district in the east, Gadag district in the West,
Bagalkot district in the north, Bellary district in the south.
It is located between 15.09' 00"-16. 03' 30" North Latitude and 75. 47' 30" to 76. 48' 10" East
Longitude.

XYZ Company Page 1

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

1.2. CURRENT SCENARIO

GRAINS

India is continuously facing pressure on the demand side dueto steady population growth,
limited land availability, andseveral other production deterrents, which might also appearas
obstacles for the supply of food grains. Indian governmentpolicies and planning has always
given considerable importanceto production of food grains due to which India has
beenachieving the continued growth despite many constraints. Duringthe last decade, the
areas undercereals, pulses, and oilseeds have increased by about 5.7, 6.0,and 4.0 million
hectares, respectively, and the area undercoarse cereals has declined by 2.6 million hectares.
The areaunder wheat cultivation has accelerated significantly in comparisonto other cereals
and millets. However, a moderatedeceleration in total grain cultivated area in comparison
topulses cultivated area was witnessed during the years of 2015 to 2019. The highest food
grain production of 259.32 million tonnes was recorded in 2016–17. Out of the total food
grainsproduction, cereals accounted for 242.23 million tonnes andpulses 17.09 million
tonnes. Production of rice andwheat was recorded at 105.3 and 94.9 million tonnes,
respectively.It was estimated that the agriculture sector in India islikely to grow by 5.2–5.7%
in 2019–20. India is one of thelargest producers of cereal as well as the largest exporter
ofcereal products worldwide. India’s export of cereals occupies the most sizable share in
India’stotal cereals export with 64.40% during this period.

PULSES

India is the largest producer, largest consumer and the largest importer of pulses in the
world. In India Pulses are grown in around 24-26 million hectares of area producing 17-19
million tonnes of pulses annually. India accounts for over one third of the total world area
and over 20 per cent of total world production. India primarily produces Bengal gram
(chickpeas), red gram (tur), lentil (masur), green gram (mung) and black gram (urd). For
majority of vegetarian population in India, pulses are the major source of protein. Pulses and
pulse crop residues are also major sources of high quality livestock feed in India.

In India pulses are cultivated on marginal lands under rain fed conditions. Only 15% of the
area under pulses has assured irrigation. Because of the high level of fluctuations in pulse

XYZ Company Page 2

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

production (due to biotic and abiotic stress) and prices (in the absence of an effective
government price support mechanism) farmers are not very keen on taking up pulse
cultivation despite high wholesale pulse prices in recent years. Farmers are getting attracted
towards cash crops like Cotton, Maize and Oilseeds (mainly soybeans) because of better
return and lower risk.

Nevertheless, improvement in yields, has contributed to higher grain, pulse, millets

production in recent years. Most of the increase in pulse production in recent years has been
in gram. Low pulse yield in India compared to other counties is attributed to poor spread of
improved varieties and technologies, abrupt climatic changes, vulnerability to pests and
diseases, and generally declining growth rate of total factor productivity. But in case of
imports, Peas forms a major share in the total import of pulses. But looking all these issues
India is a major importing country of Pulses, although we have seven agro Climatic
conditions in our country. We are lacking in exports.

1.3. OBJECTIVES:

The commercialmilling will have a following objective

 Production of Atta / Flakes / processed wholegrains / chunks from food grains &
pulses which should be free of husks, stones and other foreign material with best
quality
 Improve milling efficiency and minimization of losses using improved milling
processes which will be benefiting in Pollution free processing unit.

1.4. ENVIRONMENT ASPECTS

 Since the raw materials used in proposed processing industry are naturally grown

in agricultural fields so there is no question of deforestation, soil erosion and any

types of pollution.

 While processing the grains, any kind of hazardous chemical are not used.

 To enrich the underground water resources, water harvesting pit will be installed.

XYZ Company Page 3

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

 Proposed processing unit will be fully automation with advanced milling

operating efficiency and minimization of losses using improved milling processes

which will be benefiting in Pollution free processing unit.

 Suitable dust collector will be installed to avoid the fine dust which is supposed

to produce while processing the grains and milling the same.

 There will be no any type of pollution released from the industry which will

cause pollution of air, water or any natural resources.

1.5. RAW MATERIAL AVAILABILITY

Raw material availability is very important factor for setting up a processing plant and there
are many factors which affects the raw material availability, like:

 Unavailability of adequate and good quality raw materials,

 Lack of proper infrastructure,

 The limited availability of finance for procuring raw materials,

 The competition from the neighbouring states such as Andhra Pradesh, Tamil Nadu,

etc.

The credit related constraints can be addressed by the bankers by providing assistance for the
establishment, expansion and modernization of pulses processing mills, by providing both
working as well as block capital.

1.6. PRODUCTION AND PRODUCTIVITY OF MAJOR CROPS

AT KOPPAL DISTRICT:

Season wise, Crop wise area sown, production and productivity of various crops are
furnished in Table below. Among the various crops, Paddy has given higher yields both
under irrigated (60 qtls/ha) and rain fed (40 qtls/ha) condition than any other crop followed

XYZ Company Page 4

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

by Maize and Bajra. The productivity of maize is around 30 q/ha, which is higher than
recorded under rain fed conditions (20 q/ha).

Under Pulses, Bengal gram has recorded higher yields both under irrigated (7qtls/ha) and rain
fed (3.5qtls/ha) conditions, followed by Green-gram and Red-gram. Among Oilseeds,
Groundnut and Sunflower have recorded almost the same yields both under irrigated
(10tls/ha) and rain fed (7 qtls/ha) conditions. Sunflower has recorded an average productivity
of 12 q/ha under irrigated situations, while under rain fed conditions its productivity is poor
(8 q/ha). Cotton has recorded 11 Qtls/ha and 6 qtls under irrigated and rain fed conditions,
respectively.

In general, the production of most of the crops is very poor under rain fed conditions than
irrigated situations and it is in tune with generalized principle that making water available to
any crop during critical stages always improves the crop yield.

AREA, PRODUCTION AND PRODUCTIVITY OF MAJOR

AGRICULTURAL CROPS

XYZ Company Page 5

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

1.7. NEED OF INFRASTRUCTURE

With lack of storage facilities (i.e. inadequate storage facilities), the farmers are losing a
substantial amount of their produce to spoilage, drainage, rodents, etc. and are forced to sale
their produce as which becomes non-remunerative for them. The farmers don’t follow any
scientific method for the post-harvest operations, leading to wastage amounting to 5 to 10 per
cent of the produce. Some of the produce is lost during the transportation from fields to the
storage houses. Similarly, the storage in gunny bags in closed and unclean rooms is making
the produce susceptible to pests and insects. To add value to the pulses, pulses have to be
processed and packed as per the consumer demand. Thus, supply of good quality raw
materials, adoption of conditioning techniques to loosen the husk without resorting to sun
drying, extension of storage facility and infrastructure support, and proper market linkage are
important.

Food Grains & Pulses constitute an essential part of the Indian diet. The country produces a
quarter of the world’s grains & pulses, accounting for the largest share in world production.
The production of grains &pulses in India for the year 2019-20 as follows

Production during 2019-2020 (Million

Crops
Tonnes)
Rice 116.48
Wheat 103.6
Coarse grains 43.06
Pulses 22.04
Total food grains 285.17

2. Market Potential

Whole food grains & Pulses milled flour is used in making various food items like multigrain
Atta, Rava, Sooji, Chapattis, Puries, Parotha and other roasted cereal based products. For
example milled flour like Wheat flour or Maida is a basic raw material for making Bread,
Biscuits Cakes and other bakery products. Sooji / Ravais used in many sweetmeat products.

XYZ Company Page 6

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

Bran separated on milling is used as cattle feed. The products sold under brand names are
very few. The concept for branded cereal flour products is now increasing.

2.1. BASIS AND PRESUMPTIONS:

a. It is presumed that the unit will run 2shift per day and 300 working days per annum.

b. The following extraction rates are presumed based on the market demand, wheat

30%, Rice 20%, Jowar 10%, Maize 25% and others 15%.

c. Extraction rates are only suggested. Miller can change according to demand, Food

grain & Pulses quality & climatic conditions.

d. Labour wages have been taken as per market rates.

e. Different varieties of grains may be blended for producing multi grain Atta as a

desired end product.

f. The rate of interest has been taken 14% on an average both for fixed investment and

working capital.

The rates quoted in respect of Machinery/equipment raw materials are those prevailing at the
time of preparation of report and are likely to vary from place to place and supplier to
supplier and necessary changes are to be made as and when required.

2.2. PRODUCTS AND ITS APPLICATION:

Cleaned, sorted and graded grains, pulses, legumes, oilseeds and whole spices can be usedfor
direct consumption as such or by cooking.As well as for value added products bypulverizing,
blending, flaking, extruding, roasting, puffing, baking, frying, etc. suchproducts having lot of
ways for uses and applications.

2.3. DESIRED QUALIFICATION FOR PROMOTER:

The promoter must be well versed with agro commodities, their trade, growing centres, key
grower or brokers. The entrepreneur must have skill for sale of products and must get well

XYZ Company Page 7

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

versed with machinery technological features, their operations and maintenance. An

engineering graduate with commercial exposure is preferable.

2.4. INDUSTRY OUTLOOK/TREND

Agro commodities after harvesting needs cleaning and grading due to demand from
consumers. In the past commodities were mainly sold un-cleaned but now due to awareness
and lack of time demand is for ready to use commodities even though price will be little
higher. Moreover due to increase in production of agro commodities the facilitiesfor cleaning
and grading will be much higher than the present capacity.

India is now leading exporter of agro commodities. In international market importing

countries ask for cleaned and graded products due to quarantine laws.

2.5. RAW MATERIAL REQUIREMENTS:

As estimate of Ministry of Agriculture –India, the 2018-2019 estimated production of

cereals, pulses, soybeans, etc. Is as under:

Hence, availability of raw materials in India is not a problem. The requirements of raw
materials as per product-mix are as under:

XYZ Company Page 8

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

3. TECHNICAL ASPECTS
3.1. PROJECT AT A GLANCE
Plant capacity : 3600 TPA

Land : 1000 Sq, m / 10,000 Sqft

Product Details : Multi grain Atta / Individual milled

Type : Quality product with milling processes

Capacity Utilization : 90%

XYZ Company Page 9

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

3.2. Production Details

Storage / Silo / Peeling

Dumping station

Cleaning / Vibratory /
De Stoning / Sieving

Milling

Packaging / Storage /
Dispatching

XYZ Company Page 10

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

3.3. Process of Manufacture

i. Cleaning Section:

The cleaning section will be having Pre cleaner and Drum Sieves, two roll machines, Reel
machine 4 sheet double and 3 sheets single along with roll petty. This process will remove
the unwanted particles and sort the grains according to desired shape and size.

ii. Milling Section:

Milling section will consist of reel machine double 4 sheet and double 3 sheet, roll petty,
Elevator fan close shaft connection pipes dust plant cleaning and milling, and nut bolt pulley
bracket bush. This section will be followed by a polishing section.

iii. Polishing Section:

The polishing section will be having Polisher, Elevator. This section will polish the milled
grain and send it for sortexing.

iv. Sortex:

Sortex will include Elevator, Gravity and dust plants. It separates the processed pulses
according to size and grade wise.

Food grains & pulses are first cleaned thoroughly to remove dust, stone and other foreign
matters clean raw grains is tempered before grinding by treating with water so that the bran is
separated from the endosperm. Later it is crushed between corrugated rollers (Break rolls).
The first break rolls are set relatively far apart to grind the grains lightly with big size of
grains, 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 and coarse particles
(stock). The stock is then sent to second break rolls. This process may continue through 5 to
6 breaks. 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.

XYZ Company Page 11

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

3.4. Processing of Grains / Pulses / Millets

Since pulses are commonly consumed in de-husked and split form, the processing of pulses
is a definite activity and assumes a lot of importance. The processing of pulses is undertaken
at three levels i.e. Primary, Secondary and Tertiary.

i. Primary Processing: Consists mainly of production of cleaned, graded and packaged

pulses.

ii. Secondary Processing:Consists of dehusking, splitting, polishing, turmeric coating and

also the powdered besan and packaged dal.

iii. Tertiary Processing: Consists mainly of preparation of roasted, fried dal and other
associated dal products.

3.5. Conventional Grains / pulses milling process

i. Wet Milling operations consisting of Cleaning of chaffs, dirt, etc. > Soaking >

Mixing with red soil > Conditioning >Dehusking and Splitting > Separation and

Grading >Dehusked& Split Pulses > Bagging

ii. Dry Milling operations consisting of Cleaning of Chaffs & dirt > Pitting > Pre-

treatment with Oil > Conditioning >Dehusking and Splitting the mixture of husk,

broken & Powder > Grading > Polishing > Grade I Pulses

3.6. Process Flow for Grains / Pulses / Millets Processing

The description of various operations involved in the pulses processing are mentioned below.

i. Cleaning & Grading

Cleaning helps in removing the husk, dust, etc. from the pulses and grading is done to
segregate the grain legumes of desired shape and size on a rotating type of cleaner.

XYZ Company Page 12

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

ii. Pitting / Peeling

An empty roller machine is used for cracking the husk layer and for scratching the clean
pulses passing through it. This is done for loosening the husk from sticking to the cotyledons
in order to facilitate subsequent oil penetration. Cracking and scratching of husk takes place
mainly by friction between grains pulses as material is passed through narrowing clearance.
During the operations, some of the grains,pulses are de-husked and split and are separated by
sieving.

iii. Pre-treatment with oil

The scratched or pitted material is passed through a screw conveyor and mixing of some
edible oil like linseed is done in it. Pulses coming out of the screw conveyor are kept out
about 8 to 10 hours to diffuse oil.

iv. Conditioning

Pulses are conditioned by ultimate soaking / wetting, drying and temporary moisture of 3.5
per cent added after about 8 hours and grain is dried in sun again until all the pulses are
sufficiently conditioned. The whole process of alternate wetting and drying is continued for
two to four days. Pulses are finally dried to about 10 to 12 per cent moisture content prior to
de-husking and splitting.

v. De-husking & Splitting

For de-husking of conditioned pulses carborundum coated emery rollers are used. In one pass
50 per cent of the pulses are de-husked. The de-husked split pulses are separated by sieving
and husk is aspirated off. Un-split pulses and tail pulses are again de-husked and milled in a
similar way. For complete de-husking and splitting, the whole process is repeated two to
three times.

vi. Polishing

Polishing is completed by treating de-husked and split pulses with small quantity of oil.

XYZ Company Page 13

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

vii. 3.7.7 Weighing and Packaging

After polishing, the de-husked pulses are packed in bulk or retail packing, as desired. The
packing material may be pre-printed or plain packs.

3.7. PLANT CAPACITY:

Description Qty.(TPA) Per month Rate Per MT

Wheat 960 80 20000

Rice 360 30 25300

Jowar 840 70 31000

Maize 1440 120 16000

Total 3600 300 92300

XYZ Company Page 14

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

4. FINANCIAL ASPECTS& ANALYSIS

4.1. LAND & BUILDING

1. Land & Building

Sr No Description Sq m Rate/ Sq m Amount

1 Land 1000 2000 21,53,000

2 Building 750 3500 26,25,000
3 Office 100 3500 3,50,000
Total Rs 51,28,000

4.2. MACHINARIES & EQUIPEMT:

2. Machineries&Equipment
Sr No Description Amount
Machine Section

Bucket elevator+Vibrator + Grader + Reel

1 machine+Rotaryseparator +De-Stoner+Screw conveyor+Dust 16,00,000
cyclone+L.P. Fan+Silo gate

MILLING SECTION

Roller Mill body+Roll Grooving & spindle

cutting+Purifier+Pneumatic lifts+Dust cyclone+H.P.
2 29,00,000
Fan+Bolting cloth+Electrical motors+Electric panel board
Assembly+Erection& Commissioning

Total 45,00,000
3. Pre – Operative Expenses
Pre – Operative Expenses 1,00,000
Total Fixed Capital(1+2+3) 97,28,000

XYZ Company Page 15

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

4.3. WORKING CAPITAL

4. Working Capital
a. Manpower

Sr No Designation Nos Salary Amount

1 Miller / Chemist. 2 14000 28000
2 Plant Foreman 2 9500 19000
3 Electrician 1 5000 5000
4 Operator 3 8000 24000
5 Un-Skilled Workers. 10 5000 50000
6 Accountant 1 12000 12000
7 Clerk / Store keeper 2 8000 16000
8 Sales Supervisor 2 9500 19000
9 Peon 1 3000 3000
10 Security Personal 1 7500 7500
Total 25 183500
b. Raw Material(Multi Grain) (Per Month).
Sr No Description Qty Buying Rate/ton Amount
1 Wheat 80 20000 1600000
2 Rice 30 25300 759000
3 Jowar 70 31000 2170000
4 Maize 120 16000 1920000
Ton per year 3600
5 Gunny Bag(Piece) 8200 10 82000
Total 6531000

XYZ Company Page 16

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

Continued…..

c. Utilities (Per Month)

Sr No Description Qty. Rate/unit Amount

1 Power(HP) 200 8 357600

2 Water(Liters) 3000 5 15000
Total 372600
d. Other Contingent Expenses

Sr No Description Qty. Rate Amount

Repair & Maintenance +

Advertisement & publicity +
1 70000
Transport Charges + Other
Miscellaneous Expenses

Total 70000
Working Capital (Per Month): 7157100

5. Total Capital Investment.

Fixed Capital{Total Fixed Capital(1+2+3)} 9728000

Total 16885100

4.4. MEANS OF FINANCE

Means of Finance

Promoters Contribution, 30% 5065530

Term Bank Loan, 70%, 14% interest 11819570

Total 16885100

XYZ Company Page 17

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

4.5. FINANCIAL ANALYSIS

6. Financial Analysis
1.Cost of Production (per year).

Sr No Description Percentage Amount

1 Total recurring cost 85885200

2 Depreciation on building 5% 148750
3 Depreciation on machinery 10% 450000
4 Interest on total investment 14% 2363914
Total Rs 88847864
2.Turnover (per year)
Selling Rate Per
Sr No Description Qty.(MT) Amount
MT
1 Wheat 864 27000 23328000
2 Rice 324 34155 11066220
3 Jowar 756 41850 31638600
4 Maize 1296 21600 27993600
3240
Total Rs 94026420
3.Net Profit per year (before Income tax)
Profit 5178556
4.Net Profit Ratio
Net Profit Ratio (%) 5.51
5.Rate of return
Rate of return (%) 30.67

XYZ Company Page 18

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

4.6. BREAK EVEN POINT

7. Break Even Point

1. Fixed Cost (per year).

Sr
Description Percentage Amount
No
1 Depreciation on machinery 10% 450000
2 Interest on total investment 14% 2363914
3 Salary & wages 30% 660600
4 Other expenses. 30% 252000
5 Utilities 30% 1341360
Total Fixed Cost 5067874
BEP (%) 49.46

XYZ Company Page 19

 PROJECT REPORT OF MULTIGRAINS 2020
PROCESSING INDUSTRY

CRITICAL FACTORS FOR THE PROJECT:

 As being agro commodities availability and price are depend on crop status, rainfalls,
import quantity and prices; etc.; a very speculative business and one has to remain
alert throughout the year.
 The entrepreneur must be well aware of key growing centres and growers or brokers
therefor speedy procurement of commodity if not able to get commodity from any
one centrefrom there is regular purchase.
 Similarly, one has to be alert in selling. It needs good contacts with grocery
sellers,institutional and industrial buyers of the products.
 Must take care of hygiene and rodent/paste/mosquito; otherwise there are all chances
ofdeterioration of products. Good flooring and roofing with smooth walls as well air
curtainsat all entrance/exit and electrocuting machines at necessary places in plant
must be there

STATUTORY/ GOVERNMENT APPROVALS

There is statutory requirement of FSSAI license for setting up of food processing industry.
Moreover, MSME& GST registration, IEC Code for Export of end products and local
authority clearance may be required for Shops and Establishment, for Fire and Safety
requirement and registration for ESI, PF and Labour laws may be required if applicable.
Entrepreneur may contact State Pollution Control Board where ever it is applicable.

LIST OF MANUFACTURERS:
Buhler India 13-D, 12 D, 13 C and
13-B KIADB Industrial Area,
Attibele, Bengaluru,
Karnataka
Forsberg Agritech (India) Pvt. Ltd.
No. 123, GIDC Estate,
MakarpuraOppositeManjalpura Police Chowki,
Vadodara - 390010,
Gujarat

XYZ Company Page 20