PROJECT REPORT

FOR

TERM LOAN OF 70 LACS & CASH CREDIT OF 75 LACS

FOR

FACTORY BUILDING CONSTRUCTION & PURCHASE OF MACHINERY&

CASH CREDIT LIMIT FOR WORKING CAPITAL

FOR

BIO-MASS BRIQUETT MANUFACTURING UNIT

OF

M/S.A.M.AGRO INDUSTRIES.
PROP-:AZARUDDIN MUSTAFFA MULLA.
GUT NO-
HASORI[BK]
TALUKA-NILANGA.
DIST-LATUR[MAHARASHTRA]

FINANCIAL CONSULTANT
ASHOK V DHOOT&COMPANY.
CHARTERED ACCOUNTANTS.
VYAPARI DHARAMSHALA COMPLEX
GANDHI CHOWK.
LATUR-413512[M.S]
91-2382-244673/254673
 Project Report on

BioMass Bricketting Manufacturing Unit of

M/s A.M AGRO INDUSTRIES

1. Project at a Glance:
 Unit Name : M/s A.N.Agro Industries
 Address : At Gat No _____,
At Post Hasori[B]
Taluka Nilanga
District Latur

 Location : At Gat No _____,

At Post Hasori[B]
Taluka Nilanga
District Latur

 Constitution : Proprietorship
 Category of the Unit : Bio Mass Briquetting Unit
 Nature of the Unit : SSI
 Technical Collaboration : Not Applicable
 Date of Incorporation : 15-06-2020
 Security offered : Factory Land,Building&Machinery
 &Rm Stock,Wip&Finish Goods&Debtors
 Date of Acquisition : 2020
 Cost of Acquisition : 10.00
 Present Value : 10.00

2. Cost of Project :
Sr No Particulars Amt Rs
1 Land & Building
- Land &Land Development 1000000.00
- Factory & Office Building, water tank, Compost Mixing Tank, 2500000.00
- Wire fencing etc.(As per plan & estimate)
2 Plant & Machinery
-Bricks Sache ( Moulder) 5300000.00
-MSEB Deposit,DP & Line Layning Expenses 750000.00
-Preliminary&Pre-Operative Exp 450000.00
3 Working Capital (As per Schedule) 10000000.00
Total Fixed Cost (A) 20000000.00
3. Means of Finance:

Sr No Particulers Share Interest Raised To be raised Amount[Rs]

1 Own Contribution 25% 1500000.00 3500000.00 5000000.00
2 Bank Term Loan 35% 12% 0.00 7000000.00 7000000.00
3 Bank Cash Credit 38% 12% 0.00 7500000.00 7500000.00
4 Unsecured Loans 2% 0.00 500000.00 500000.00
Total (A) 1500000.00 18500000.00 20000000.00

4. Introduction :

The report has been prepared for the M/s.A.M.Agro Industries for assessing the feasibility
of the unit producing Biomass Bricketting plant from Agricultural waste at gat no___, at
post Hasori[BK] Taluka Nilanga, District Latur. The main object of the report is to study
and assess the economic, marketing and technical feasibility of the bricks unit. The
project also highlights on the prospects of this type of unit.

The project report is that manufacturing bricert from Agricultural Waste. The unit shall be
proprietary concern of Azaruddin Mustaffa Mulla is having good environment and
location and feasible for Bricket unit. Its development in industries has been taking
place with a repaid speed. With increasing population and the corresponding increase
in industrialization, the demand for bricket is ever increasing as alternative source of
fuel. Its s production can be right from small scale to large scale through automatic
machines.

Thus the entire picture is very stimulating of promising with the development of industrial
& infrastructure thirst in maharashtra & all adjacent states. The growth of development is
expected to be tremendous. This is likely to may fold the prospectus of local
Manufacturing industry & all its ancillaries.
5. Promoters Profile :
Name : Azaruddin Mulla.

Husband Name : Mustaffa Mulla

Residential Address : At post Hasori[B]

Taluka-Nilanga & District: Osmanabad

Age : 22 Years

Sex : male

Caste : Muslim

Academic Qualification : B Com

Experience : 1 Years

Reasons for establishing : Assured Market Survey, less competition,

Profitability & experience in this line.

6. Unit Profile :
Name : M/s. A.M.Agro Industries.

Constitution : Proprietorship

Date of In Corporation : 15-06-2020

Business Address : At Gat No______ at post Hasori[B]

Taluka Nilanga

District: Latur.
7. Market Survey :

The unit is going to be located near Nilanga Taluka Latur District which is near to
Udgir,Omerga, Bhalki, Bidar, Latur etc.The market shall be mainly entire
Maharashtra & Karnataka State.

Presently & considering future 25-30 years there is too much scope for industrial
activity in this area. Also as the nearby area is industrial area therefore the
demand of bricket increasing more & more day by day. By launching of
massive Programme for house industrialisation & declaration of growth centre
the scope for such units has widened.

A preliminary survey indicated that there is always shortage of bricket as fuel in

this area as bricket is very cheap compare to furnace as used in boilers further
proprietor’s son have taken 1 year experience in this line hence she has good
knowledge of market.

Considering these fact it can be well concluded that market has so constraint.

8. Brief History of Unit :

Proprietor of M/s.A.M.Agro Industries, Mr Azaruddin Mustaffa Mulla is young &

good knowledge of bricket industry since last 1 years. he have proposed to set
up an unit where in to start well equipped machinery at Hasori[B] this is near the
Source of raw material. Machinery for this project is ordered from reputed
supplier from Maharashtra state and actual finalization of machinery is done. he
has capable to manage overall activities starting from purchasing raw material
to getting order for bricks from near by construction sites. His father Mustaffa
will assist him.

9. Product & It’s Use :

Brickets are one of need of every kind of industrial boiler from small
manufacturing unit to large industries. This unit will make a good quality,
standard size of brickets used for industrial boilers.
10. Manufacturing Process :
The manufacturing process of, bricks is totally machine based and Labour
oriented. For Brickets first raw material will be dried then it will cut into the pieces
& after that it will be crushed pressed & make its pallets by use of the
machinery.

 Materials with higher moisture content first to be dried and to bring moisture level
down.
 Materials from the Conveyor are discharged with the help of Conveyor warm &
gear.
 Material in the feeder box is compressed by the press forcing it through tapper
die (ram punch) fitted in the Die Holder.

11. Reasons for Setting up the Unit :

 Good demand prospect for the product.
 Sound techno-economic feasibility of the Unit.
 The promoters experience is very good with contact in this field.
 The unit enjoys the benefits of package scheme of incentives.

12. Technical Feasibility :

As already explained above nearly entire process is semi automatic process
and requires proper attention for process concrete blocks supplier is reputed
and have successfully commissioned various concrete blocks to builders,
contractors. The proprietor had practical experience of running this unit. These
Bricks as such unit is technically fishable.

13. Infrastructural Facilities :

 Location:
This proposed unit will be located at village Hasori[B] near Omerga Talkua of
osmanabad Dist. This area is ideal for manufacturing brickets and has no any
objection on pollution. Also prima location area near to N.H.7, All infrastructures
facilities like electricity, communication are available very easily in the area.
Necessary no objection certificate & plan approval for construction wiil be
obtained from gram panchayat Malkaranja.

 Raw Material :

The raw materials required are Agricultural waste , etc. All these raw material are
none banned. These are available freely in open market & no problem shall be
faced in their acquiring.
  Power:

Power required is 100 HP only single phase since the unit is going to be located at
gat no_____.The power supply will be easily available from MSEB sub division
office. The proprietor has already applied for power connection.

 Water :
Water is already available at site with good potable water. The water
requirement is mainly for manufacturing of bricks consumption purpose. Bore-
well water is sufficient for both these purpose.

 Transportation:
The brick shall be transported by way of road transport. The location of unit is just
20 kms. Away from Nilanga As well as Omerga where there are number of
transport operators, operate on this road & as such no transportation problem is
foreseen.

 Assistant :
Labour requirement for this unit is heavy. The labours can be easily available from
near places. There is no any technical work so unskilled labours can do this work
any difficulty. Also proprietor has enough experience. So there is no such
problem anticipated for labours.
14. Infrastructural Facilities :
The total cost of project shall comprise of fixed cost & working capital. The
individual details are as under.
15. Cost of Project:

Sr No Particulars Amt Rs
1 Land & Building
- Land &Land Development 1000000.00
- Factory & Office Building, water tank, Compost Mixing Tank, 2500000.00
- Wire fencing etc.(As per plan & estimate)
2 Plant & Machinery
-Bricks Sache ( Moulder) 5300000.00
-MSEB Deposit,DP & Line Layning Expenses 750000.00
-Preliminary&Pre-Operative Exp 450000.00
3 Working Capital (As per Schedule) 10000000.00
Total Fixed Cost (A) 20000000.00

16. Means of Finance:

Sr No Particulers Share Interest Already raisedYet to be raised Total Rs

1 Own Contribution 25% 1500000.00 3500000.00 5000000.00
2 Bank Term Loan 35% 11% 0.00 7000000.00 7000000.00
3 Bank Cash Credit 38% 11% 0.00 7500000.00 7500000.00
4 Unsecured Loan 2% 0.00 500000.00 500000.00
Total (A) 1500000.00 18500000.00 20000000.00
17.DETAIL OF FIXED ASSET COST.
Land Purchase & Land Development Exp 10.00 LACS
============
TOTAL 10.00 LACS
============
01. BREQUATTE PLANT & MACHINERY 25.00 LACS
02. ELECT MOTORS,CONTROL PANEL&INST EXP 7.50 LACS
03. WEIGHT & MEASUREMENTS MACHINE 7.50 LACS
04.TRACTOR WITH LOADER 13.00 LACS
============
TOTAL 53.00 LACS
============
01.FACTORY BUILDING 20.00 LACS
02.STAFF QUARTER & INTERNAL ROAD 5.00 LACS
============
Total 25.00 LACS
============
Preliminary & Pre-operative Expenses 4.50 LACS
[Credit Guarantees – 2.00 + Other Exp 2.50]
Production Capacity 40 Mt Per Days
Monthly Production = 25 Days * 40 Mt = 1000 Mt

Rate Per Mt = 14000

Yearly Working Months = 9 Months.

Yearly Sales value@100% capacity =1260 Lacs

Raw Material Cost 4000 Rs Per Mt for 100% Cap = 360 Lacs

Transport cost for finished goods @2000Rs per MT=180 Lacs

Labour cost for Manufacturing&Collection of Rm

Sr No Particulars Number Annual Salary Total Salary
1. Manager 2 90000 180000
2. Machine Operator 2 180000 360000
3. Labour 15 81000 1215000
==========
Total 1755000
==========
Electricity Expenses for 100 HP Loan @ 1 Lacs Per Month 900000
 Other benefits & Brief information of The briquettes project

Bio-mass briquetting is the best project to convert Bio-mass to briquettes and contributing
towards a better ecology & economy.

The government of India declared the incentives as under.

1. 100% income tax benefit up to 5 years.

2. Higher depreciation on first year.
3. Doesn't require Noc from pollution control board.
4. User of Bio-Mass Briquettes will get carbon credit income which is incentive to the
End users.

Social benefits:-

1. Employment generation and rural development.

2. Saves import duty on fossil fuel.
3. Saves trees & control pollution.

Solvent feature of the project:-

1. Easy availability of various raw materials.

2. Does not require any binder or chemical.
3. Excellent project viability.
4. Rising demand of finished briquettes.
5. Short payback period.
6. Pollution free and non-hazardous project.

Briquetting plant jumbo-go

 Input raw material from :- Up to 20 mm size.

 Production capacity :- 1500Kg/Hr.
 Finished product size :- 90mm Diameter.
 Finished product shape :- Cylindrical.
 Required electric load :- 100 Hp.
Raw material:-

Any type of Agro-Forestry waste Bio-mass with defined specification can be used as a raw
material.

Major Agro –waste available.

- Groundnut Shell - Sunflower Stalk

- Sugarcane Baggasse - Jute Waste
- Caster Seed Shells/Stalk - Palm Husk
- Saw Dust & Wood Chips - Soybeans Husk
- Catton Stalks/ Chips - Wheat Straw
- Bamboo Dust - barks & Straws
- Coffee Husk - Forestry Waste
- Tobacco Waste - Coir Pitch
- Tea Waste - Rice Husk
- Paddy Straw - Seeds Cases
- Mustard Stalk Shell - And 10ts More…

Process of Raw Material:-

 Most of Biomass can be used directly as per specification.

 If the raw material is having more than 10% of moisture content then it requires drying
process.
 If the raw material is longer than 20mm size then it requires cutting process.

Finished product

Briquettes are ideal & eco friendly fuel with uniform shape good calorific Value low ash
Contain.

 Briquette is as ideal fuel-Due to

 Economical and cheaper than other solid fuels.
 Pollution free & non-hazardous.
 Lower ash contains 2%-5%.
 Consistent high Burning efficiency.
 Contains high density & higher fix Carbon value
 Combustion is more uniform
Applications of Briquettes/Bio-Coal

Briquettes are ready Substitute of lignite/Coal/wood in thermal applications replaces costly

liquid Fuels like Fo, Diesel, IDO, kerosene etc use of Briquettes as a fuel for green energy has
show very Promising results.

Use of finished Briquettes in Various industries

- Gasified system applications - Vegetable Plants

- Ceramic industries
- Refractory industries
- Solvent Extraction plant
- Chemical industries
- Dyeing Units
- Milk Plant
- Food processing industries
- Textile unit
- Spinning Mill
- Lamination industries
- Leather industries
- Brick making units.
- Rubber industries
- Any industries etc.

Strength

Quality Assurance

We are manufacturing with 70% computerized Technology parts is prepared with so many
different types of processes like knight writing, hardness, hard chrome, induction hardness, oil
bath hardness, analyzing seasoning etc.

Benefits of Briquettes VS other fuel:-

In the world of Biomass Briquetting plant we the corporation the manufacturer of Briquetting
plants which with agro and forestry waste as a raw material to make Briquette known as a fuel
we are the leading manufacturer and exporter of Biomass Briquetting plant.

Economic feasibility & Profitability:-

 Renewable source of fuel & energy

 Excellent growth potential
 Easy mobility & transportation
 Relaxed rules by the government
 Tax benefits & in incentives
 Savings of valuable foreign currency
 Farmers an also encase agro waste after harvesting each crop.
 Labour:-
1) Trained & Skilled Operator -1
2) Unskilled Labour - 5
3) Manager I – Charge - 1
4) Extra - 4

 For Reduce Labour :-

For reduce labour tractor will be utilized for Raw material transfer and Briquettes
loading.

 Transportation :-
1) Our offer is Ex – works
2) Freight transportation, unloading Crain charges will be paid by Buyer
3) If required transit insurance will be borne buyer

Office
Department
Stock
 Finished Product (Briquettes):- Our ranges of Biomass Briquettes are ready substitute
of lignite coal wood in industrial boiler and brick kiln for thermal application to generate
heat….

Bio – Coal or White Coal

 Technology :-
Biomass densification which is also known as briquetting of sawdust and other agro
residues has been practiced for many years in several countries

 Product Specification :-
Fuel briquette is black / brown in color when agro waste of cellular nature is briquetted
it produces low cost, high calorific value fuel which can from a good substitute for wood
and coal this implies conversion of waste into a useful energy source.

 Benefits of Biomass Briquettes :-

Biomass briquettes offer many benefits over traditional fuels like coal, fuel, oil, natural
gas and propane as well as over the pre – compacted raw materials husks, fines and
fibers.
 Cost: - The purchase price of biomass is than natural gas propane and fuel oil, coal is a
bit lower in price but ultimately it is NOT cheaper because of the many benefits of
biomass briquettes as discussed below.

 Pollution :-
Briquettes are immeasurably cleaner than the other fuel alternatives – especially coal,
therefore government incentives that support briquetting systems and production along
with dis – incentives for coal use make briquetting solutions extremely attractive plus
they don’t create dust.

 Efficiency :-
Briquettes burn in a controlled manner slow and efficiently they burn well in boilers and
burners more and more utility companies are using biomass briquettes to supplement
or replace coal as a solid fuel source.

 Briquettes is an ideal Fuel :-

1) Eco friendly and Renewable energy fuel

2) Economical and cheaper than other solid fuels
3) Pollution free because there is no sulfur or any hazardous material
4) Lower than content 2 to 5 % there is no fly ash combustion is more uniform
compared to other coal
5) Demandable market due to high rise in fossil fuels price

 Major – agro – waste Available :-

1) Groundnut shell sunflower stalk
2) Sugarcane Baggasse jute waste
3) Caster seed shells / stalk palm Husk
4) Bamboo Dust Barks & Straws
5) Coffee Husk Forestry waste

 Processing Of Raw Material :-

Most of Biomass can be used directly as per specification if the raw material is having
more then 10 % of moisture contain, then it requires drying process if the raw material
is longer then 20 mm size then it, requires cutting process.
 Applications of Briquettes / Bio – coal :-
Briquettes are ready substitute of lignite coal wood in thermal applications & replaces
costly liquid fuels like Fuel, Diesel, LDO, kerosene etc. Use of Briquettes as Fuel for green
energy has shown very promising results.

Briquettes as an ideal Fuel:-

 Bio Stove :-
Bio stove is a smokeless high efficient eco – friendly stove for cooking kitchen
application. Bio – stove design is high combustion of Fuel due to gasification effect at
top side. Blower gives enough.

 Bio – Stove For Domestic :-

Suitable for single family or at farm house for cook 5 Person Food
Fuel: Pellets 8 mm or small wood pieces

 Bio – Stove For Commercial :-

Suitable for Hotels, Hostels, Community center for cook more than 100 parson Food
Fuel: Briquettes 60 mm / 90 mm or wood pieces

 Briquette :-
Biomass Briquetting is the process of converting low bulk density biomass into
high density and energy concentrated fuel Briquettes. Biomass Briquetting plants
are of various sizes which converts biomass into solid fuels. Briquettes are ready
substitute of coal, wood in industrial boiler and brick kiln for thermal application.
Biomass briquettes are Non Conventional source of energy Renewable in Nature
eco – friendly non polluting and economical process of No addition of any binder
chemicals is required so it is 100% Natural.
17. Conclusion:

Government have very huge thurst for rural economy mainly agriculture hence
Main rawmaterial require for this unit will be available in ample quantity.
Further due to good rain even in current year there will be more than required
Rawmaterial available for biomass briquette manufacturing unit.

According to this project this unit will running very smoothly. We have concluded
that this Biomass Briqueet unit having sufficient capacity cash generated even at
50% capacity also for repayment of loan.

Date : 18/09/2020 For A.M.Agro Industries.

Place: Hasuri

AZARUDDIN MUSTAFFA MULLA

Proprietor