KERALA AGRICULTURAL UNIVERSITY

COLLEGE OF AGRICULTURE VELLAYANI

RAWE & AIA -KALIKA 2021-22

MODULE 14: Agro Industrial Attachment

GROUP REPORT

MODULE LEADER : Dr.Gopika Somanath, Asst. Prof(Ag. Extension)

MODULE ASSOCIATES: Smt.Smija P.K.,Asst Prof (Ag. Extension)
Dr.Esakkimuthu M., Asst. Prof (Ag. Extension)

Submitted By :
Group 3
 GROUP MEMBERS
1.Akshay N V [2018-41-114]

2.Enis Jimmy P [2018-41-170]

3.Navas E V [2018-41-204]

4.Stevin C C [2018-41-248]

5.Jenser C [2018-41-187]

6.Rakesh V [2018-41-216]

7.Safa Kallayi [2018-41-225]

8.Salmiya Faizal [2018-41-228]

INTRODUCTION

Industries that have agricultural produce as raw materials are known as Agro-based Industries. These are
consumer-based industries. Cotton, jute, silk, woolen textiles, sugar and edible oil, etc. industry are based on
agricultural raw materials. The size of these enterprises varies widely from home-based activities to smallscale
cottage industries to large-scale factories. Agro-industries contribute to the economic strength of an area by
increasing the value of the agricultural produce, either by extending the product life of the materials or by
converting them into more desirable commodities. In this way they stabilize the economy by rendering the
primary products of a region into a more marketable form. Such products can be sold more steadily, consistently
and reliably over a period, whereas the primary products of agriculture may normally sustain only a limited
storage period and are generally seasonal in nature. Agro-industries cover a wide range of technical levels,
employ many thousands of people worldwide and make use of both simple and sophisticated processes. The types
of agro based industries include seed industries or companies, pesticide industries, biotechnologicalindustries,
bio-pesticide industries, commercial nurseries/landscaping units, sericulture units, food processing units etc.

OBJECTIVES

 To understand the working of different agro based industries.

 To know the role and importance of agro industries in the society.
 To study the administrative structure of various Agro based industries.
  To understand the cost involved in the manufacture of various products and services.
 To understand about the different export-import aspects of the agricultural products.
 To analyze the market status, export potential and other technical and financial aspects of various agro
based industries.

DAILY ACTIVITIES
DAY 1 (27/12/2021 Monday)

Session 1
Time: 10 AM – 12.00 PM
Resource person: Sri. Jayaraj P (Ex production manager, Dinesh Foods, Kannur. Consultant – Coconut value
added products, Kannur)

“Establishing and managing an agro- industry”

 Official inauguration of the module was done by Sri Jayaraj sir and it was hosted by Aparna M Asok (Student
Representative).
 sir taken class on establishing and managing an Agro industry.
 Huge chances of coconut value- addition in Kerala, coconut- based industries, by-products, importance and scope
of coconut milk, different processes of synthesis of virgin coconut oil, opportunities and marketing of coconut -
based industries etc. were discussed in the session. The session was very informative for us, we can familiarize
with the vast opportunities of coconut- based industries in Kerala.

Session 2
Time: 2.00 PM-4.00 PM

Resource person: Ramesh Madathiveettil (Member Expert Committee ON Ease of Entrepreneurship Planning
Board, Govt. of Kerala)

“Interaction with successful technology business incubate”

 Sir gave an introduction of their start-up named “Nutriroot”. It was founded by a peer group of progressive
minded individuals from Kerala. The company aims to serve both domestic and international markets with junk
free, maida free, glutan free nutritious food products. Noodles, Pasta, Cookies are the main products marketed
by them.
 Sir also gave brief idea about how start-up can be establish, the challenges and hurdles like concept awareness,
brand feature & benefit awareness creation, market penetration etc may face, strategic execution etc.

DAY 2 (28/12/2021 Tuesday)

Session 1

Time: 10.00 AM – 1.00 PM

Resource person: Sajitha G Nath (Zonal Manager, Kerala Financial Cooperation)

“Finance for small and medium industries”

 Ma’am has taken class on finance for MSME. Gave idea about annual turnover of micro and medium industries,
different activities like production, manufacturing, value addition, preservation and marketing.
 Discussed about the documents required for registration of industries, its loan processes, financial analysis,
marketing analysis, risk analysis etc.
 CMEDP loans: the scheme will provide up to 1 crore at 5% interest. The government of Kerala will provide 3%
subsidy under the scheme and further 2% subsidy will be provided by KFC. The target is 2500 enterprises in
five years.

Session 2
Time: 2- 2.30 PM
Resource person: Dr. Gopika Somanath

 The afternoon session was for interview schedule preparation and finalization. Ma’am shared the questionnaire
which we have to ask to respective industries. It includes the overview of the industry, about functional
hierarchy, questions to ask to the different departments like production dept, purchase and store dept, finance &
account dept, HR dept, security dept, marketing dept. etc.

DAY 3 (29/12/2021 Wednesday)

Session 1

Time: 10 AM – 12.30 PM

Resource person: Sri. Vinod Kumar S (Manager (Credit), District Industries Centre, Govt. of Kerala, Trivandrum)

“Agro industrial scenario in Kerala- an overview”

 Sir mainly dealt with MSME; the loans available. The challenges faced during covid pandemic etc.
Session 2

Time: 2.00 PM- 3.30 PM

Resource person: Dr. Aswathy Vijayan
“Economic analysis of business project”

 in the session we familiarized with how to prepare a business plan.

 What all things we have to concentrate like introduction, product overview, production process, technology
overview, market opportunities, target consumers, marketing strategies, financial analysis etc.

DAY4 & 5 (31/12/2021 Friday)

10.00 AM – 3.00 PM
ATTACHMENT TRAINING IN CM OIL INDUSTRY

DAY 6 (03/01/2021 Monday)

Time: 10.00 AM – 12.00 PM
Session 1
Resource person: Yuvaraj A (MANAGE Representative
 Introduction and opportunities to Agri start-ups

Session 2

Resource person: Mr. Vasudevan Chinnathampi (Co-founder of Ninjacart)

 Class on supply chain management in agriculture- A point of view from Ninjacart

Session 3
Resource person: Mr. Jagadish Sunkad (Independent consultant and Agri business Mentor)
 Supply chain management for Agri start-ups- Opportunities and challenges

DAY 7 (04/01/2021 Tuesday)

ATTACHMENT TRAINING IN DAIRY KID ICE CREAMS
DAY 8& 9
 This day we utilised for power point preparation

DAY 10 (07/01/2021 Friday)

 Power point presentation of visited industries and case study. And it was evaluated by Dr. Esakkimuthu.
Valuable feedbacks and suggestions were given by sir after the presentation.

INDUSTRY 1

Name : CEE YEM CO Oil industry

Address : CEE YEM CO Oil industries

Kizhisheri, Kuzhimanna(P.O)

Malappuram

PIN:673641

Year of establishment : 1980

Registration No. : 32AALFCO951F1ZU

Certification : ISO9001-2015

Brand Name : Cee Yem

Main products : Coconut oil and Gingelly oil

Annual Turnover : 7.95 Crores

DETAILS OF OWNER

• Name : Mr. C .Ahammed

• Address : Cheenothingal House

Kuzhimanna

Kizhisheri, Malappuram

• Educational qualification: SSLC

VISION : To be the leading provider of high-quality Coconut Oil and Gingelly Oil & allied products by
building long-term relationships with customers based on trust, commitment and performance.

MISSION : To progressively pursue a total quality policy and further strengthen the core competencies
of the company to maintain a sustainable competitive advantage, create a distinct brand image & add
value to our customers.

PRODUCT DETAILS

1. GINGELLY OIL

ITEM WHOLE SALE

RATE(Rs)

Gingelly(1L) 167.85

Gingelly(500ML) 86.10

Gingelly(300ML) 54.50

Gingelly(200ML) 36.59

Gingelly(100ML) 20.44

Gingelly(1L CAN) 175.64

Gingelly(2L CAN) 345.56

Gingelly(5.5L CAN) 941.51

2. Coconut oil

500 ml – Rs. 92

1 Litre - Rs. 183

1.5 Litre – Rs. 274

1 Kg whole sale – Rs.188

1 Kg Retail – Rs. 202

REASONS FOR STARTING THE ENTERPRISE

• Availability of raw material: Raw materials like kopra is amply available

from the native farmers itself. The sesame from outer states like West Bengal
and Tamilnadu
• Fami/v background: They have 40 years of experience in the oil production
field. Initially they started oil production by using ox. Then that small unit
developed into this kind of big industry by strong determination and hard
work.
• ISO trainings received for the improvement in running the industry. Also
technical support was received from CPCRI.
SOURCING OF RAW MATERIALS

• Copra from rural coconut farmers majority from natives,

• Sesamum from Kolkatta (West Bengal) and Tamil Nadu

QUALITY CONTROLL MECHANISMS

Quality of the products are checked under the following labs

• Lab testing at CFRD H Konni in Pathanamthitta

• Vijayalakshmi analytical lab Tamilnadu

SOCIAL RESPONSIBILITY INITIATIVES
• Ramzan kit &Onam kit distribution will be provided at the time of festive season.

• Corona kit given during COVID pandemic

MACHINARIES AND EQUIPMENTS

• Cease fire machinery

• Boiler

• Filter

• Packing machine

• Weighing machine

• Sealing machine

• Filling machine

• Numbering machine

• Welding machine

• Air compressor

• Fax machine

• Note counting machine

• Motor

• Stabilizer

• Computer

CREDIT DETAILS

• Type of loan is Long term loan

• Loan amount is 60lakhs
• Rate of interest is 9.13%
• Land documents provided as security
• No amount is repaid till now
PRODUCTION PROCESS OF GINGELLY OIL

Dehydrating

Crushing(Gingelly cake is separated)

Filtering

Bottling

Packing

Marketing

MARKETING OF THE PRODUCT

4 Marketing will be done directly to the super markets, retail shops and whole sale
shops . Main marketing areas are Calicut, Malappuram, Kannur and Wayanad

RECORD AND REGISTERS

• Sale tax register (monthly & annually)

• Balance sheet: It contains various assets and liabilities

• Attendance register: To record the daily attendance employees

• Basic date register: It contain basic information regarding the industry

• Employees details: It contain the details of employees

• Sales order form and sales bills: It is related to sale of the product by customers

• Purchase order form and purchase bills: It is related to the purchase of raw materials .
 • Customer complaint register: To record the complaint of customers.

LABOURERS EMPLOYED

• Total number of labourers:40

• Office work:10
• Production:6
• Drivers:3
• Helpers:10
• Sales men:3
• Packing:8

FINANCIAL ASPECTS

• Fixed capital: Rs4.5 Crore

• Working capital: Rs2.5 Crore

• Gross returns: Rs8 Crore

FINANCIAL ANALYSIS

• Cost of raw materials: Rs 90 lakh(copra)

• Rs 45 lakh(Sesamum)

• Labour cost: Rs3.5 lakh/ month

• Other expenses: Rs14 lakh/month

TOTAL COST: Rs34500000

Returns

• Returns from gingelly oil: Rs 48000000

• Returns from coconut oil: Rs 24000000/-
 • Returns from oil cake:
Rs 8000000/- TOTAL
RETURNS: Rs
80000000/-

BC RATIO:2.3

SWOT ANALYSIS

Strength:

• Good quality product

• 40 years of experience

• Easy availability of coconut

• Updation of

technologies

Weakness:

• Irregularity in supply of raw material from other states

• Problems with machine &Repairing

Opportunity:

• Festive season demand a good market of product

• Coconut oil cake can be utilizing for producing soap

Threat:

• Competition from other brands

• Cheap price of adulterated coconut oil

CONSTRAINTS OF THE UNIT

• Competition with other brands.

• Irregular supply of raw materials from other states

• like Bengal, Tamilnadu due to covid pandemic.

SUGGESTIONS FOR THE UNIT

• Widening of the market in to other states.

• By products can be utilizing for the production of other useful products For eg :
Coconut oil soap.

GALLERY

GALLERY
INDUSTRY 2

DAIRY KID ICECREAMS

OVERVIEW OF INDUSTRY
◉ Name : Dairy Kid Ice-creams
◉ Address : Milon Foods, Mundakkal
Malappuram, Kerala
PIN:673641
◉ Year of establishment : 1980
◉ Registration No. : 32AZZPA029N1ZZ
◉ Brand Name : Dairy Kid Ice-creams
◉ Main product : Ice-creams, Sip-up, Kulfi
◉ Details of the owner
Name : Mr. Abdul Hameed Kuruvani (M.D.)
Address : Gram Panchayat Office
Cheekode, Mundakkal, Kerala
PIN : 673645
Education : Pre-degree

VISION
To make, distribute and sell the finest quality ice cream and euphoric concoctions with a continued
commitment to incorporating wholesome, natural ingredients and promoting business practices that
respect the Earth and the Environment.

MISSION
To provide our customers with the enjoyment and ultimate ice cream experience and to promote and
motivate the Entrepreneurial spirit.
ORGANIZATIONAL STRUCTURE

PRODUCTS

\
34
PRODUCTION PROCESS

GALLERY
PROECT PROPOSAL

Product name : Green Raksha

The revolutionary Green Raksha includes;

´ 1. All the required supplements for growth of plant in a grow bag till it’s
harvest in convenient packages (sachets).

´ 2. A comprehensive and easy guide for scheduling and application of every sachets
provided with the product.
´ 3. Free registration to Agri-heal app for all the customers for scheduled
reminders fro different activities of plants and connecting with Agri-heal
community where they can
connect with other environment healers and share your experience and thoughts .

OBJECTIVES
´ Supply of grow bags with all its required supplements with the
instructions of activities to be done from placing them at homes till
harvesting of the plant produce.
´ Introduce a practical way in supplementing works of people who are
concerned about climate change and be a part of a world-wide
community who are working against
climate change.
´ Spread awareness about climate change and need of involving in Agri-related activities.
´ Help the city people to experience the positivity and pleasure of involving
in agricultural activities.

MISSION

Encourage agriculture in urban areas and promotion of safe-to-eat food

products to reap immeasurable benefits.
´ Promote sustainable and nature friendly activities and improve
responsibility mindset among city dwellers

VISION
´ Establish as a commercial agricultural brand and provide products giving
thrust to urban and semi-urban areas.
´ To become largest city-based agriculture company selling Eco-friendly products only.
MARKET POTENTIAL

´ Old people living in flats and apartments in urban areas who would be very happy and
relaxed to get involved in agricultural activities but don’t know the basics to start their
own lovely kitchen garden.
´ Huge chunk of people suffering due to work related stresses and seeking
mind-fulfilling activities to get involved into.
´ People in urban areas who are aware of the physical and mental benefits
of involving in these activities.

MARKETING STRATEGY
´ Use of online media and channels to introduce and spread the word in urban areas.
´ Emphasising adoption of kit among noble and those people who can
influence the society in cities like doctors and other professionals to use
their feedback as a tool for
advertisements.
´ Providing online booking facilities with minimum transportation costs for supply of kits.
´ Assuring provision for periodical monitoring of the growing product
through social media
´ Giving awareness about the mental and physical benefits of the product.
´ Creating a platform for sharing consumer feelings and thoughts about the
progress of their mind-fulfilling work and connect with the consumer
community.

TECHNICAL ASPECTS
The production is planned to be held under the rented shop room with polyhouse
where production, storage and management of seedlings are possible. Inputs
required for the production, packing, checking the quality, as well as for the
marketing of the product are as follows:
Sl. No. KIT CONTENTS QUANTITY PER UNIT PRICE (₹) PER KIT

1 Grow bag 1 10

2 Soil 4Kg 3

3 Coirpith 2Kg 13

4 Compost 1kg 10

5 Lime 100g 1.5

6 Neem cake 100g 3

7 Bone meal 100g 3

8 Pseudomonas 50g 3.75

9 Trichoderma 50g 5

10 Neem oil 20ml 5

11 Fish amino 15ml 30

13 Seedlings 3 3

14 Seeds 5 2

15 Soap 25g 1

16 Sampoorna 10g 2.26

17 Tobacco 100g 20

18 Protray 3wells 0.23

19 Polythene sheets 10 1.8

 20 Leaflet 1 0.57
TOTAL 116.71

´ Easy guide for explanation of the schedule and application of different supplements to
the Agri-heal plant.
´ Free installation and registration to Agri-heal community app.

FINANCIAL ASPECTS
FIXED CAPITAL REQUIREMENT

´ Poly-house - Rs. 2,00,000

´ Vehicle - Rs. 6,00,000 (to be paid in 60 monthly
instalments)
´
Machinery
´ Sealing Machine - Rs. 1,500
´ Weighing balance - Rs. 3,500
´ Stitching Machine - Rs. 5,000
´ Measuring Cylinder - Rs. 400
´ ph meter - Rs. 800
´ Spade - Rs. 275

TOTAL FIXED COST = Rs. 8,11,475

WORKING CAPITAL REQUIREMENT

´ Labour cost (Rs. 10,000 x 12 months) - Rs. 1,20,000

´ Raw material/consumables purchase - Rs. 14,00,520
´ Room rent (Rs. 8000 p.m X 12 months) - Rs. 96,000

´ Transportation cost - Rs. 20,000

 ´ Electricity cost (Rs. 2000 p.m X 12 months) - Rs. 24,000
´ TOTAL VARIABLE COST = Rs. 16,60,520

TOTAL CAPITAL REQUIREMENTS

´ FIXED CAPITAL REQUIRED - Rs. 8,11,475
´ WORKING CAPITAL REQUIRED - Rs. 16,60,520
(for one year)
´ TOTAL CAPITAL REQUIRED - Rs. 24,71,995

CAPITAL INVESTMENT

´ OWN FUNDS (25% OF TOTAL COST) - Rs. 6,18,000

´ LOAN AVAILED (75% OF TOTAL COST) - Rs. 18,53,995

´ TOTAL CAPITAL INVESTED - Rs. 24,71,995

EXPECTED ANNUAL REVENUE

´ Price per unit - Rs. 200 (annual escalation after Year 1)
´ Annual expected sale of units - 1000 nos. X 12
months 12,000 units
´ Expected Annual Revenue - Rs. 24,00,000 (subject to annual escalation)

ANNUAL VARIABLE COSTS

YEAR 1 2 3 4 5 6

Cost of 16,60,520. 17,43,546. 18,30,723. 19,22,259. 20,18,372. 21,19,291.

Production 00 00 30 47 44 06
 Depreciation of 96,725.00 96,725.00 96,725.00 96,725.00 96,725.00 96,725.00
fixed assets

Interest on 2,22,479.4 1,85,399.5 1,48,319.6 1,11,239.7 74,159.80 37,079.90

Loan 0 0 0 0

1,20,000.0 1,20,000.0 1,20,000.0 1,20,000.0 1,20,000.0 0.00

EMI for vehicle
0 0 0 0 0

20,99,724. 21,45,670. 21,95,767. 22,50,224. 23,09,257. 22,53,095.

Total Costs
40 50 90 17 24 96

NOTE:-

1) Annual Escalation of 5% of the prev. yr. cost has been assumed for production costs

2) Depreciation of fixed assets are calculated by following the Straight Line Method

3)Interest rate for loan is taken as 12%

LOAN REPAYMENT SCHEDULE

Principal Interest
YEAR Opening O/S Closing O/S
Repayment Repayment

1 18,53,995.00 3,08,999.17 2,22,479.40 15,44,995.83

2 15,44,995.83 3,08,999.17 1,85,399.50 12,35,996.67

3 12,35,996.67 3,08,999.17 1,48,319.60 9,26,997.50

4 9,26,997.50 3,08,999.17 1,11,239.70 6,17,998.33

5 6,17,998.33 3,08,999.17 74,159.80 3,08,999.17

3,08,999.17 3,08,999.17 37,079.90 -0.00

18,53,995.00 6,67,439.28
 • Rs. 18,53,995 Loan availed at an interest rate of 12% p.a. to be repaid in 6 years

• Instalments are due at the end of each year.

CASH FLOW ANALYSIS

YEAR 1 2 3 4 5 6

CASH INFLOW 24,00,000.00 25,92,000.00 28,51,200.00 31,36,320.00 34,49,952.00 37,94,9

(REVENUE)

CASH 17,80,520.00 18,63,546.00 19,50,723.30 20,42,259.47 21,38,372.44 21,19,2

OUTFLOW
(VAR.+FIX.
COST)

6,19,480.00 7,28,454.00 9,00,476.70 10,94,060.53 13,11,579.56 16,75,6

OPERATING
CASH FLOW
BEFORE LOAN
REPAYMENT &
TAX

5,31,478.57 4,94,398.67 4,57,318.77 4,20,238.87 3,83,158.97 3,46,07

LESS:- LOAN
REPAYMENT

LESS:- 2,06,589.61 3,07,074.70 4,50,937.28 6,09,633.93 7,84,797.99 10,60,7

INCOME TAX

NET CASH 88,001.43 2,34,055.33 -7,779.35 64,187.73 1,43,622.60 2,68,78

FLOW
 • 8% escalation in revenue has been assumed for the Year 2, and 10% for the Years
3,4 & 5

• FC in first year includes the cost of polyhouse(Rs. 2,00,000)

PROJECT APPRAISAL

YEAR 1 2 3 4 5 6

Annual 24,00,000. 25,92,000. 28,51,200. 31,36,320. 34,49,952. 37,94,947.

Revenue(Benefi 00 00 00 00 00 20
ts)

Annual 20,99,724. 21,45,670. 21,95,767. 22,50,224. 23,09,257. 22,53,095.

Costs(Costs) 40 50 90 17 24 96

3,00,275.6 4,46,329.5 6,55,432.1 8,86,095.8 11,40,694. 15,41,851.

Net Benefit
0 0 0 3 76 24

Discount 0.893 0.797 0.712 0.636 0.567 0.507

Factor @12%

Discounted 18,75,053. 17,10,099. 15,63,386. 14,31,142. 13,09,348. 11,41,488.

Costs 89 39 74 57 86 53

Discounted 21,43,200. 20,65,824. 20,30,054. 19,94,699. 19,56,122. 19,22,638.

Benefits 00 00 40 52 78 35

• TOTAL DISCOUNTED COSTS - Rs. 90,30,519.98

• TOTAL DISCOUNTED BENEFITS - Rs. 1,21,12,539,06

• BC RATIO - 1.34

• NET PRESENT VALUE (NPV) - Rs. 30,82,019.08

HENCE, THE PROJECT IS FEASIBLE