A DOCUMENTTATATION REPORT

ON
INDUSTRIAL TRAINING
IN

SUBMITTED BY
MAHARAJA.C
REG NO: 510121631030
MASTER OF BUSINESS ADMINISTRATIOAN

ADHIPARASAKTHI COLLEGE OF ENGINEERING

G.P.NAGAR
 KALAVAI,RANIPET-632506
AUGUST-SEPTEMBER(2022)
DECLARATION

I hare declare that the entitled “ A STUDY OY INDUSTRIAL TRAINIING

AT KAVIN PRODUCTS” under the guidance of Mr.T.SUNDAR
(MANAGER IN KAVIN RICE MILL). Is a n work done by me submitted in
partial fulfillment of the requirement for the award of MASTER OF
BUSINESS ADMINISTRATIOAN IN ADHIPARASAKTHI COLLEGE
OF ENGINEERING G.P.NAGAR, KALAVAI.

MAHARAJA.C

Page 1
DATE:

PLACE: SALUKKAI

INDEX

S.NO CONTENT PAGE NO

1 ABOUT THE 4
COMPANY

INTRODUCTION 5

HISTORY OF THE 7
COMPANY

PROFILE OF THE 8
COMPANY

2 PRODUCTS OF THE 13
COMPANY

PRODUCT PROFILE 14

3 FUNCTION & 17
SERVICE OF THE
COMPANY

PRODUCT DETAILS 18

4 MAJOR 23

DEPARTMENT

DEPARTMENT 24
DETAILS

Page 2
 PERSONAL 25

DEPARTMENT

PRODUCTION 30

DEPARTMENT

PURCHACE 34

DEPARTMENT

FINANCE 36
DEPARTMENT

SALES 39
DEPARTMENT

QUALITY 41
ASSWURANCE
DEPARTMENT

5 SUGGESSIONS 44

6 CONCLUSION 46

Page 3
LABOUT THE COMPANY

Page 4
INTRODUCTION

KAVIN PRODUCTS MODERN RICE MILL, an rice production of RICE

MILL Tool division, has its headquarters in southern india’s tamil nadu

Page 5
state, at salukkai near vandavasi. The industry manufacturing ponni boiled
rice, parboiled rice, plain rice.

5 TON FULLY AUTOMATIC RICE MILL PLANT

CAPACITY 5Ton/h

OPERATION MODE AUTOMATIC

ELECTRICITY CONNECTION THREE PHASE

MATERIAL OF CONSTRUCTION MS

POWER 60KW

BRAND BHAIKE

USAGE/APPLICATION AGRICULTURAL

MACHINE TYPE RICE MILL PLANT

VOLTAGE 440V AC

DRIVAN TYPE ELECTRIC

FREQUENCY 50HZ

SURFACE FINISH POWDER COATED

COUNTRY OF ORIGIN MADE IN INDIA

KAVIN PRODUCTS (MODERN RICE MILL)

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Husk, being of lower specific gravity, is then separated form brown rice by a
closed circuit aspiration system. was established as one of kavin product’s
strategic overseas production bases in may 2016 through acquisition of
industries, india’s largest Modern rice mill. Since its establishment, the
industry has steadily expanded both its sales and market share. With
completion of the new plant, KAVIN PRODUCT MODERN RICE MILL is
now positioned to respond to the swifity growing local market, and it
aims to raise its market share from the current 40% (fiscal 20016) to 50%
by fiscal 2021. The industry will also commence export of the tools
from india.

A streamlined paddy flow is directed into a pair of rubber rolls, rotating at

different speeds, in opposite directions. A horizontal inward pressure is applied
on the rubble rollers, pneumatically. Due to the difference in the seed of
rotation, a shear force is generated on the surface of hull (with two sides being
rubber by tow rubber rolls) that breaks apart of the surface/hull.

This process leads to breakage of brown rice. Although a proper horizontal

inward pressure is mot important factor for breakage or rice, de-husking
efficiency is equally important and should be maintained between 75 to 85%.

MISSION OF THE Industry

“Move the World Forward”

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VISION OF THE Industry

“Market Leader in Rice Mill Industry”

OBJECTIVES OF THE COMPANY

“To fullfill the customer requirement within the stipulated time”

LOGO OF THE INDUSTRY

RAW MATERIAL AVAILABILITY

The rice production in the State has shown remarkable growth in production. It
has been grown over an area of 5 million Ha with 15 Million tons of production
during the year. As a result of new agriculture strategy, like 'High Yield
Varieties Programme’ the production of paddy has seen appreciable growth in
production over the years. Most of the rice mills operate at 3 shifts per day
during harvesting and procurement season.

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MARKET OPPORTUNITIES

Setting up rice mill will allow farmers to engage in value addition & more
profits. Rice bran is a by product obtained during rice milling process, which is a
very good source of edible oil. Rice is in great demand both in house hold
consumption and also in Hotels, restaurant, canteens, etc. A major share of crop
production can easily be sold to FCI or other procurement agency at MSP. Both
rice and fish are in great demand in the State and it is used as a staple food. In
the state consumption of cooked rice is 164 kg per person per year. Therefore,
existing infrastructure for processing paddy to rice is not enough to meet current
and future demand. The new entrants have good scope to start this business.

PROJECT DESCRIPTION

 PRODUCT

AND ITS USES Rice is a staple food for the majority of population in India.
Rice bran is a by product of the rice milling process and it contains various
antioxidants that impart beneficial effects on human health. This can be utilized
for the production of oil and as animal feed. The rice bran oil is a niche product
and is being promoted as healthy oil. The husk is having high calorific value and
used as a source of energy. The husk is a delicacy for horses and is in good
demand for animal feed.

 CAPACITY

The rice mill works on economies of scale model. The decision about the
capacity of rice milling plant depends upon number of factors like market
demand, availability of manpower etc. The capacity of this model is considered

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as 50 Qtl. (0.5 MT) per hour. The plant will operate for 16 h per day in two
shifts.

 MANUFACTURING PROCESS WITH FLOW CHART

Generally three types of methods are used for milling of paddy rice viz. one
step, two step and multi stage process. Efficiency of milling depends on the
variety of paddy, quality of equipment, operator skill etc. In one pass milling the
husk and bran are separated in one pass and the white rice is produced directly
from the paddy. In two pass technology husk and bran are removed separately
and brown rice is produced from paddy. Multi pass or multi stage process is a
commercially used for the rice milling. It combines number of operations that
produces higher quality and higher yield of white rice NABARD
CONSULTANCY SERVICE PRIVATE LIMITED Page 4 from paddy. In
modern commercial mill, the multi stage process is adopted. Multi stage process
of rice milling involves following steps:

Pre cleaning:

It is the process of removal of foreign materials like straw, weed, seeds, soil, etc.
from paddy prior to milling. De-stoning: It is a process of removing small stones
from the paddy prior to milling process. It is done by using the destoner.

Dehusking/Dehulling:

It is a process of removing the husk or outer layer of paddy to produce brown

rice.

Separation of Paddy:

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It involves the separation of hulled paddy rice from brown rice. After dehusking
the husk, bran and broken rice are separated. The separation is done on the basis
of difference in size, gravity, buoyancy etc by automatic machines.

Whitening or Polishing:

The white rice is obtained from brown rice using the process of abrasion or
friction between two surfaces.

Separation:

Separation of rice from broken rice is carried out using different types of
graders and separator. There are different indent sizes being used for separation
depending on the size of grain.

Bagging:

The milled rice is packed in different quantity according to the requirement.

Process flow chart for commercial rice milling is as under:

Pre cleaning De cleaning Dehusking

Polishing Separation

Bagging

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AGE AND CATEGORY

 Above 18 years – upto 58 years

GENDER

 Male ( 80% )
 Female ( 20% )

MARITAL STATUS

 Married - 56 ( appr)
 Unmarried – 20 ( app )

EDUCATION QUALIFICATION

 Diploma
 ITI
 10th
 12th

EXPERIENCE

 FRESHERS

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LOCATION

Kvin product tools Ltd at Salukkai, Vandavasi. It has spread over in large area
that is more for the explanation for the industry. Since, it is located in the
salukkai village. It has all the facilities like availability of raw materials, power,
transportation, labour and emergency facilities like hospital, fire service, etc,.

The following table shows that are a of the spread in industry

DESIGNATION TOTAL AREA IN
RICE MILL
SITE BUILDING
MAIN PLANT 53000 sqft 6300 sqft
PLANT 2 1570 sqft 440 sqft
NEW PLANT - 3450 sqft
TOTAL 54570 sqft 10190 sqft

ANNUAL PRODUCTION CAPACITY

The following table shows the annual production of the kavin product modern
rice mill.

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QUALITY PROFILE

The objective of the quality assurance of the kavin product group is to “achive,
maintain and improve the kavin safety by meeting applicable laws, regulations,
cods and standards, as well as the quality requirements of customers, and by
providing customers with safe and reliable products and services policy has been
developed as follows, for implementation of the task provided to the customers
in various stages (research and development, planning and design, procurement,
manufacture, installation, commissioning, after-operation service and

decommissioning) of the kavin product plant.

RICE MILL INDUSTRY PHILOSOPHY

At kavin product Modern rice mill, we channel big thinking into solutions that
move the world forward – advancing the lives everyone who shares our plant.

By bringing people and ideas together as one, we continue to pave the way to a
future of shared success.

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Passionately finding new, simpler and sustainable ways to power our cities,
improve infrastructure, innovate manufacturing and connect people and business
around the global with ever – increasing speed and efficiency.

 This is the power of true harmony.

 This is what moving the world forward is all about.

 This is today’s kavin product group.

SOCIAL RESPONSIVENESS

 To preserve the natural environment,

 To provide high quality and reliable products in line with customer
preferences,
 To respect basic rights and freedoms of the employees,
 To manage the company so as to protect the rights of the
 shareholders and to make the investments beneficial,
 To provide accurate data on its activities,
 To support education, health and art activities that will contribute to the
welfare of the society, are the sum of the social responsibilities which are
considered as sustainable basic principles reflected in the corporate
decisions of all companies within Alapala Group, rather than a marketing
activity increasing brand value or a project that serves social
tendencies.

Page 15
 Rice Production and Demand

Rice, a monocotyledon plant, is known as kavin product. The genus kavin

product is composed of two cultivated species, namely Oryza sativa and Oryza
glaberrima, plus 21 wild species. O. sativa and O. glaberrima are native to Asia
and Africa, respectively, although they can grow over wide geographical
conditions. O. sativa has a superior yield and milling quality and is
commercially grown in 112 countries across the continents, whereas O.
glaberrima is grown only in the West Africa region.

Rice is one of the most important staple foods for nearly half of the population
in the world. The worldwide production area for rice is about 150 million
hectares, while the annual production is about 590 million tonnes. The Asian
region produces approximately 90% of the total global rice output, to which
China and India contribute 28.7% and 19.5% shares of the total output,
respectively (Table 1). Rice has become an important crop in specific regions of
North and South America, Africa and Europe.

Statistics showed that in the year 2009, 196.7 million tons of paddy (unmilled
rice) was harvested from 29.8 million ha of planting areas in China, while 41.9
million ha of planting areas harvest approximately 133.7 million tons of paddy
in India. The exported quantities of rice from China and India are relatively low
due to the high demands of their huge populations, although they are still the
largest rice producers in the world. The demand for rice is expected to remain
strong over the next few decades due to the economic and population growths
forecast in many countries, including African and Asian countries. Therefore,

Page 16
the rice industry will remain sustainable for a long time, and the production of
rice by-products will remain high.

Rice Processing

Rice grain consists of many components, as shown in Figure 1. Thus, there is a

need for rice grains to undergo several processing steps before they can be
consumed by humans. Rice processing covers the operations from harvest to the
production of graded and polished white rice. From the rice harvesting process,
residue-to-product-ratios values for rice straw ranging from 0.41 to 3.96 were
produced for every kilogram of harvested paddy.

The rice milling process involves cleaning, hulling and post-hulling processing
(whitening, polishing and grading), which combined will produce several rice
by-products, as described in Table 2. The percentage of rice by-products is
dependent upon several factors, such as the milling rate and type of rice. An
ideal milling process will yield 20% husk, 8-12% bran depending on the milling
degree and 68-72% milled rice or white rice, depending on the variety.

Nutritional Values of Rice By-products

Rice by-products actually had higher amount of nutrients when compared to the
polished rice. shows the proximate composition and major minerals of several
rice by-products. Rice bran, which is derived from the outer layer of the rice
grain, is composed of an aleurone layer of the rice kernel, with some proportion
of the endosperm and germ accounting for approximately 10% of the weight of
the rice grain . This part is composed of both lipophilic antioxidants

Page 17
(tocopherols, tocotrienols and γ-oryzanol) and phenolics. These substances
protect against chronic diseases of the cardiovascular system and help to quench
the free radicals and anticancer effects [38,39].

Rice germ is also known as the embryo or reproductive parts, which germinate
and grow into plants. The content of vitamin E in rice germ is 5 times higher
than that in rice bran. The major vitamin E component in rice germ is α-
tocopherol, which is the most active form of vitamin E, whereas for rice bran,
the major vitamin E component is γ-tocopherol. In addition to these, rice germ
also contains a substantial concentration of vitamins (B1, B2 and B6), fibre and
neurotransmitter γ– aminobutyric acid (GABA), which is believed to have many
beneficial health effects, such as lowering the blood pressure, improving
cognition and lowering blood glucose levels. The level of γ-oryzanol in rice
germ, however, was 5 times lower than the level in rice bran. This is in
accordance with Butsat and Siriamornpun, who also reported that the bran has
the highest oryzanol content compared to other parts of rice.

The components of dietary fibre in rice by-products include cellulose,

hemicellulose, pectins, hydrocolloids and lignin. These can be classified into
two types, depends on their solubility in water. The structural or matrix fibres,
such as lignins, cellulose and some hemicelluloses, are insoluble, while the
natural gel-forming fibres (pectins, gums, mucilages and the remainder of the
hemicelluloses) are soluble. Generally, soluble fibre forms a gelatin-like
substance in the intestine and increases the water content in the stool. It has also
been demonstrated to possess the ability to decrease the blood cholesterol and
sugar after meals in diabetics. Insoluble fibre plays a key role in adding bulk or
softening stool, which helps to reduce constipation and haemorrhoids and is also
effective in creating a feeling of fullness.

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The fibres found in rice husks are mainly lignin, hemicellulose, cellulose and
hydrated silica. These components are similar to those in ground rice husk made
from defatted concentrated rice bran. They are not digested by human pancreatic
or brush border enzymes and therefore are not expected to be fully absorbed.
However, their consumption does help to control blood glucose levels and lipid
concentrations by enhancing the viscosity of the gastrointestinal contents.

Antioxidant Properties of Rice By-products

Antioxidants play an important role in preventing damage to the cellular

components caused by chemical reactions involving free radicals. The outer
layers of plants, including their peels, shells and husks, can protect the seeds
from oxidative damage due to the large amounts of strong antioxidants present,
such as flavonoids, hydrocinnamic acid derivatives, isovitexin, phytic acid,
anisole, vanillin and syringaldehyde. They are good sources of natural
antioxidants. However, these by-products, such as rice husk, are mostly wasted
and are usually used as a feedstock due to their low digestibility, peculiar size,
low bulk density, high ash/silica contents and abrasive characteristics.

Rice husk contains an antioxidant defence system, including polyphenolic

compounds, to protect the inner materials from oxidative stress. Phenolic
compounds from methanol extracts of rice husks have been shown to exert high
antioxidant activities against scavengers of singlet oxygen and to inhibit high
hydrogen peroxideinduced damage to DNA in human lymphocytes. These data
are also supported by the findings of Kim et al. who showed that Nokmi rice
husk extracts have effective antioxidant activities.

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Numerous primary nutraceutical compounds extracted from rice bran also
contain high levels of phytochemicals, which exert antioxidant activities. These
phytochemicals are α, β, γ, δ-tocopherol, tocotrienols (vitamin E) and γ-
oryzanol. Vitamin E protects the cell membrane by preventing the oxidation of
unsaturated fatty acids and by scavenging free radicals. Gamma-oryzanol,
however, has been shown to have higher antioxidant activity than tocopherols or
tocotrienols.

In addition to the rice husk and rice bran, the study by Moongngrm et al. also
showed that rice germ contain highest amounts of α-tocopherol and γ–
tocopherol, further supporting the earlier finding by Yu et al. Rice germ has also
been demonstrated to have the strongest antioxidant activity, compared to rice
bran (containing a bran layer and rice germ) and the rice bran layer (without the
germ). The rice germ extract exhibited electron-donating abilities and hence
may play a key role in radical chain terminators by transforming the reactive
free radical species into more stable, non-reactive products. For brewer’s rice,
data from Tan et al. showed that the content of phenolics, vitamin E and γ-
oryzanol was significantly lower than in rice bran. It is expected, as indicated by
Zhou et al. that the phenolic acids and γ-oryzanol contents of rice are chiefly
concentrated in the bran; brewer’s rice mostly consists of broken rice, with only
small percentage of rice bran and rice germ.

Anti-cancer Effect of Rice By-products

The consumption of whole grains has been reported to protect against colorectal
cancer in human interventions. The chemopreventive properties of whole grain
consumption have been attributed both to fibres and to other phytochemicals

Page 20
that are mostly present in the bran layer. The data in Table 5 summarise several
previous findings on the effect of rice by-products on cancer. Water-soluble rice
bran hemicelluloses prevent against 1,2-dimethylhydrazine (DMH)- induced
colonic tumours in rats. Rice germ prevents azoxymethane (AOM)-induced
colonic aberrant crypt foci (ACF), a preneoplastic lesion in colon cancer, as well
as tumours in rats [68,83,84].

Rice bran inhibits the growth of human colon cancer cells, and rice bran
consumption reduces the number of intestinal adenomas in APCMin mice, an
animal model of human familial adenomatous polyposis (FAP) [86]. Finally,
DMH- and AOM-induced preneoplastic lesions are inhibited by rice bran-
derived sphingolipids in the colons of rats [87,88]. Several phenolic compounds
have been recognised in the ethyl acetate extracts of rice bran, such as caffeic
acid, cycloartenyl ferulate, ferulic acid, methoxycinnamic acid, p-coumaric acid,
protocatechuic acid, sinapic acid, tricin and vanillic acid.

Some of these phenolic compounds have been reported to inhibit the growth of
human breast and colon cancer cells. There is no evidence to indicate that rice
husk is carcinogenic or mutagenic. Nevertheless, rice husk has shown
anticarcinogenic and antimutagenic activities in vitro and in vivo. The in vitro
study of water extract from brewer’s rice by Tan et al. also demonstrated the
cytotoxic effects of the extract against ovary cancer (Caov-3) and colon cancer
(HT-29) cell lines with IC50 36.67 μg/ml and 38.33 μg/ml respectively [85-87].

Anti-cancer Mechanism by Rice By-products

Dietary fibre

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Epidemiological data has suggested that the consumption of dietary fibre,
especially the mixture of soluble and insoluble fibres, is inversely associated
with the risk of cancers, such as colon cancer [88,89]. Therefore, the presence of
dietary fibre in high amounts in rice byproducts might partly explain its effects
on the reduction of cancer. The dietary fibre in rice bran that ferments slowly
may exert its protective effects through the physical dilution of the contents of
the gut through its potential for dilution and faecal bulking capacity [90,91].

This property may shorten the transit time, hence leading to alterations in the
mutagenicity of the intestinal contents, altered mucosal cytokinetics and
subsequent effects in the excretion of putative carcinogens. It has also been
suggested that the production of butyrate from these fibres could protect against
the initial stages of colon carcinogenesis. Butyrate, as suggested, is able to arrest
the growth of neoplastic colonocytes and inhibit the preneoplastic

hyperproliferation induced by the several tumour initiators and promoters. This

type of fibre also has been suggested to be paramount to carcinogenesis by
changing from propionate to butyrate, as observed in animals fed hydrolysed
guar.

Phytic acid

Phytic acid (inositol hexaphosphate, IP6), which is a component of rice bran,

most cereals, nuts, oilseeds and legumes, has been shown to reduce the
incidence of carcinogen-induced large bowel cancer and to inhibit the growth of
transplanted tumours further, it has been shown to have cytotoxic effects against
hepatocellular cell lines (HEPG2). The modifying effects of phytic acid on
carcinogenesis have been investigated in several studies [77,90,98].

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The phytic acid in rice bran is a negatively charged molecule that is able to bind
proteins and starch. Thus, it contributes to the reduction of absorption and
increases faecal bulk. Several other mechanisms by which the phytic acid exerts
its anti-cancer and chemopreventive properties include gene alteration, cell cycle
inhibition, increased natural killer cell activity and antioxidant function
[100,101]. Phytic acid enacts effects at the genetic level by affecting signal
transduction pathways, cell cycle regulatory genes and tumour suppressor genes.
Hence, phytic acid may cause greater differentiation among malignant cells and
complete reversions to normal phenotypes. Phytic acid has also been
demonstrated to block phosphatidyl inositol-3-kinase (PI-3 K) through its
activity and has been found to influence the activity of neoplastic cell
transformation in a dosedependent manner.

Furthermore, several colon cancer studies have supported the ability of phytic
acid to favourably influence colon morphology by increasing both cell apoptosis
and differentiation. These data show that phytic acid may affect the cell cycle by
decreasing the S phase of mitosis and arresting cells in the G0/G1 phase, thereby
enacting an anti-proliferative effect on tumour cells. Phytic acid can be absorbed
by cells rapidly (in vitro and in vivo) and metabolised to cause phosphates and
inositol levels to become lower. The conversion of phytic acid to its lower
forms, IP1-5, by dephosphorylation may contribute to phytic acid’s anti-cancer
properties. Hence, IP3 plays a major role in cellular signal transduction and
intracellular function.

Tricin

Tricin is an O-methylated flavone, a type of flavonoid that can be found in rice

bran, and it has been shown to inhibit colon cancer cell growth. Cai et al.

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reported that feeding on a diet containing 0.2% tricin decreased the size and
number of intestinal adenomas formed in ApcMin/+ mice through the inhibition
of cyclooxygenase (COX)-2 [108]. Tricin consumption decreased PGE2 levels
in the murine plasma and reduced the number of adenomas, particularly in the
proximal small intestine. In addition to these properties, tricin has also long been
credited for health beneficial effects due to its antioxidant potential, which can
inhibit lipoperoxidation, and its sparing effect on vitamin E in erythrocyte
membrane.

Vitamin E

Various studies have shown the effects of tocotrienol as an anticancer agent. For
example, rice bran-derived tocotrienol inhibited tumour cell-induced
angiogenesis in the mouse dorsal air sac (DOS) assay [111] and could promote
tumour necrosis factor-related apoptosis-inducing ligand (TRAIL) through the
up regulation of death receptors in leukemic, kidney and pancreatic cells.

Oryzanol

A study by Kim et al. suggested that γ-oryzanol in rice bran inhibits tumour
growth in tumour-bearing mice by the induction of natural killer (NK) activity,
the activation of macrophages and the inhibition of angiogenesis (reduction of
vascular endothelial growth factor VEGF, cyclooxygenase-2 COX-2 and 5-
lipoxygenases 5-LOX).

Hypocholesterolaemic Effects of Rice By-products

Numerous data on the hypocholesterolaemic effects of rice bran have been

produced, especially regarding the oil. Studies have been conducted on rats,
rabbits, hamsters, monkeys and humans. In addition to those preliminary studies,

Page 24
other research has shown that there is a significant effect of these rice
branderived products on improving the lipid profile. However, black rice bran
extracts reduce the progression of dietary cholesterolinduced atherosclerotic
plaque development and cholesterol plasma levels in rabbits while decreasing
the levels of serum triglycerides and total cholesterol in mice.

Some components of rice bran oil that is mainly responsible for the cholesterol-
lowering effects in rice bran oil’s unsaponifiable fraction (4.2%) include tocols
(tocopherols and tocotrienols), β-sitosterol, γ-oryzanol and unsaturated fatty
acids.

Cholesterol-lowering Properties

Gamma-oryzanol

Gamma-oryzanol, is present at 13 to 20 times (w/w) higher content in rice bran

compared to total tocopherols and tocotrienols and has been shown to decrease
animal serum-cholesterol levels and antiinflammatory activities while inhibiting
cholesterol oxidation in vitro.

The effects of γ-oryzanol on biliary secretion and faecal excretion of cholesterol,

phospholipids and bile acid were investigated in male albino rats. Bile flow and
composition did not cause any changes by feeding gamma-oryzanol at 0.5%
level with the control diet. However, the bile flow and total bile acid output were
increased by 12% and 18%, respectively. An earlier study by Seetharamaiah et
al. showed that there is a significant increase in the faecal excretion of
cholesterol (28%) and bile acids (29%) after feeding gamma-oryzanol with a
high cholesterol diet, while cholesterol absorption was lowered by 20%.

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Gamma-oryzanol’s antihypercholesterolaemic effect also might be due to the
sterol moiety, which is split off from the part of the ferulic acid in the small
intestine by cholesterol esterase. Sakamoto et al. reported that gamma-oryzanol
and cycloartenol ferulate have an anti-hyperlipidaemic action and identified that
intravenous administration creates more remarkable effects than oral
administration due to a direct inhibition of the lipid metabolism. Furthermore,
ferulic acid that has been absorbed and metabolised demonstrated an intrinsic
hypolipidaemic effect in several studies. Another suggestion from Makynen et
al. was that the hypocholesterolaemic activity of γ-oryzanol is due in part to the
impaired apical uptake of cholesterol into enterocytes and perhaps a decrease in
HMG-CoA reductase activity.

Phytosterols

There are three groups of phytosterols that are usually found in the crude rice
bran oil. These include 4, 4’-dimethylsterols (1.2%), 4-monomethyl-sterols
(0.4%) and 4-desmethylsterols (1.8%). Several mechanisms by which plant
sterols affect the concentration of cholesterol in the body, such as the formation
of non-absorbable complexes with cholesterol, alterations of the size and/or
stability of the micelles, interferences with the cholesterol esterification in the
mucosal cell and interactions with the protein receptors that are required in the
absorption of cholesterol.

In addition, the cholesterol-lowering effects of the rice bran oil could also be due
to the bile acids and total plasma cholesterol complexes in the intestinal lumen
(anion exchange resin-like action). This hypothesis has been confirmed by a
study conducted by Shinomiya et al. [143]. Another study by Wang and Ng on

Page 26
human subjects also reported the anti-hypercholesterolaemic effects of
phytosterol.

Vitamin E

Corn, wheat and soybeans contain major tocopherols, while barley, oats, palm,
commercial rice bran and rice bran oil contain up to 70% tocotrienols. The
hypocholesterolaemic activity of vitamin E in rice bran oil has been clearly
shown in several animal species and in humans. There are several mechanisms
that demonstrate how vitamin E can lower cholesterol levels. This includes the
role of vitamin E as an antioxidant that inhibits the oxidation of cholesterol and
the activity of liver enzyme, 3-hydroxy-3- methylglutaryl-coenzyme A reductase
(HMG-CoA-R), which is critical in the cholesterol synthesis rate.

Vitamin E also increased the controlled degradation of the reductase protein and
decreased the efficiency of the translation of HMG-CoA-R messenger RNA. By
inhibiting the activity of HMG-CoA-R, the serum total and LDL cholesterol
could be reduced; hence, the levels of cholesterol will be lowered. Data from a
study by Cicero and Derosa also showed that tocotrienols act as a main mediator
of the antihypercholesterolaemic effect in rice bran oil.

Hypoglycaemic Effect of Rice By-products

The effects of rice by-products on the reduction of diabetic risk have been
shown by many studies. The diabetes mellitus Type 2 subjects fed with rice bran
water-soluble and rice bran fibre concentrates plus AHA Step-1 diet had
decreased glycosylated haemoglobin levels (15% and 11%) and fasting glucose
(33% and 22%), respectively [154]. The levels of serum insulin were also
increased (4%) in both types of diabetes.

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The properties of the rice by-products that might contribute to this effect include
tocotrienol, γ-oryzanol and fibre. The tocotrienol-rich fraction from palm oil and
rice bran oil has been reported to lower the blood glucose levels of patients and
preclinical animal models. Siddiqui et al. outlined the fact that treatment with
the palm oiltocotrienol rich fraction and the rice bran oil-tocotrienol rich fraction
in hyperglycaemia induced nephropathy in Type 1 diabetic rats, significantly
improving the glycaemic status and renal functions of the rats.

A study by Fang et al. further showed that δ-tocotrienol within the tocotrienol-
rich fraction functioned as a peroxisome proliferatoractivated receptor (PPAR)
modulator and may improve the utilisation of whole body glucose and insulin
sensitivity in diabetic Db/Db mice by selectively regulating its PPAR target
genes. Gamma-oryzanol that is present in high amount of rice bran also tends to
increase the insulin sensitivity in rats with streptozotocin-/nicotinamide-induced
type 2 diabetes. Its activity as a potent antioxidant can suppress the reactive
oxygen species generated under a high blood glucose concentration. The high
fibre content in rice by-products could also slow down the absorption of the
glucose, while the colonic fermentation products of fibre may also enhance
glucose utilisation.

In addition to tocotrienol, fibre and γ-oryzanol, the phenolic acid fraction of rice
bran also may be beneficial for the treatment of type 2 diabetes mellitus because
it regulates blood glucose levels by elevating glucokinase activity and the
production of glycogen in the liver. Furthermore, GABA also might be
beneficial in the reducing the risk of diabetes due to it potentiation of insulin
secretion from the pancreas.

Page 28
Applications in Food Products

Currently, people are concerned about personal health and nutrition. Rice bran is
highly nutritious and thus is used as a food additive. The primarily use of rice
bran as an additive in food is due to its high fibre content, which mildly
promotes stool regularity. From a marketing view point, the most commonly
available rice bran-derived product is the oil. Rice bran oil has an impressive
nutritional quality that makes it suitable for nutraceutical products.

It also has the potential to be used as an additive to improve the storage stability
in food due to its antioxidants properties. Rice bran oil has industrial potential,
especially in the preparation of snack food due to the great stability of frying,
whereas rice bran fibre can be used as both a nutritional and functional
ingredient. Chicken coated with stabilised rice bran fibre tends to absorb less fat
during frying, and the small amount of fat present naturally in rice bran fibre can
act as a carrier of flavours.

The nutritional and functional properties of rice bran are suitable for baked
products, namely cookies, muffins, breads, crackers, pastries and pancakes. The
addition of rice bran into the wheat flour further increased the protein, lysine and
dietary fibre contents in bread and cookies. The colour, flavour, protein
extractability and solubility of bran, as well as other properties, such as water
and fat absorption, emulsifying and foaming capacity, have demonstrated
improvements that further enlighten us on the potential use of bran in foods. Due
to its naturally occurring enzymatic activity (lipases) and subsequent hydrolytic
rancidity, rice bran need to be stabilised to control these undesirable reactions.

Page 29
The process also destroys the fungi, bacteria and insect infestations, hence
enhancing the shelf life of rice bran. The stabilised rice bran was successfully
incorporated in up to 20% of the production of yeast bread because the
hygroscopicity of the rice bran may improve its moisture retention in the baked
products, while its ability to foam improved the air incorporation and leavening
processes. Defatted rice bran can be used to substitute for up to 10 to 20% of the
wheat flour used for making cookies without adversely affecting the quality.
Biscuits prepared with broken rice powder were highly acceptable in terms of
taste and feel in the mouth.

Beside oil, rice bran also has a 10-15% protein content, consisting of 37%
water-soluble, 31% salt-soluble, 2% alcohol-soluble and 27% alkali-soluble
storage proteins. Rice bran proteins have been found to be of high quality and
application in food and pharmaceutical industries. Its unique properties,
hypoallergenicity and anticancer effects make it a superior cereal protein with a
wide range of possible applications. However, as of now, commercial rice bran
protein is still unavailable on the market.

Rice husks can be formulated and optimised to meet the particle sizes. Its use is
technically feasible for about 5% in dry mix applications and about 35% as an
adsorbent in liquids. Furthermore, brewer’s rice can also be utilised as a brewing
adjunct. The brewing industry favours the use of adjuncts because of economic
reasons. Shortages of barley and malt and demographic growth will lead to a
substantial increase in the use of brewing adjuncts.

Types Of Rice Mill Machines

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 Rice Cleaning Machine

 Rice Destoner Machine

 Husker Machine

 Rice Color Sorter

 Rice Whitener Machine

 Grain Dryer

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 2. PRODUCTS OF THE RICE MILL

PRODUCT PROFILE

Kvin product manufacturing rice. The products are,

Page 32
 Brown Rice

 Basmati Rice

 Black Rice

 Red Rice

 Red Cargo Rice

 Indrayani Rice

 White Rice

 Sona Masuri

 Samba Rice

1. Brown Rice

Brown rice has a mild nutty flavor that adds a pleasant taste to any brown rice
dish. Many health-conscious people prefer eating brown rice over other kinds of
rice since it’s low in calories and filled with vitamins and minerals. It’s a 100%
whole grain food item and light to eat too!

2. Basmati Rice

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Basmati rice is one of the most popular types of rice in India and also pan Asia.
A lot of Indian and Asian cuisines use this flavorful rice to create exciting and
exotic recipes. This rice is best served with fresh herbs and green onions along
with traditional Indian side dishes. It comes in white and whole-grain options
and is also readily available in any grocery store.

3. Black Rice

Black rice, also known as the forbidden rice, is a form of glutinous rice. This
rice is a little more expensive than other rice, and it is believed that only the
upper class could afford to eat black rice in ancient China. There are many
varieties of black rice available in the market and online, and one should try this
unique rice at least once!

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4. Red Rice

Red rice is high in anthocyanin, an antioxidant that dyes the rice grain’s bran a
reddish color. This is widely used in Thailand, Africa, and some parts of Bhutan.
Red rice is traditionally cooked with a lot of herbs and spices pepper, garlic, and
chili.

5. Red Cargo Rice

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Red cargo rice is a little similar to brown rice and is typically grown in Thailand.
It is filled with essential nutrients and has a reddish-brown color. This rice
complements many curry dishes that are cooked with herbs and spices. The only
thing to note here is that red cargo rice requires a longer cooking time than other
rice types.

6. Indrayani Rice

Indrayani rice rules the hearts of Indians. If you’re living in India, this is a type
of rice that you should must-try! It has a very texture when it’s cooked and is
rich in vitamins and minerals.

Page 36
7. White Rice

The most versatile rice type has to be white rice. It is known worldwide and
adapts to any form of cooking in any cuisine. It has a fluffy and a very slight
sticky texture when fully cooked and provides energy to the body too. This is
the best kind of rice for dishes that requires stuffing and stir-frying.

8. Sona Masuri

Sona Masuri is famous rice in India and is cultivated in Andhra Pradesh. The
rice has a texture just like basmati rice and is also easy to digest. Many people
prefer Sona Masuri since it’s low in calories and helps in weight management.
The price is slightly on the higher side, but this rice is definitely a must-try.

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9. Samba Rice

Samba rice has a corny taste and hard grain that makes it less fluffy when fully
cooked. It is believed to be more filling in nature and is also high in calories. It’s
grown locally by the mallas in Tamil Nadu and is mainly used by locals

PROJECT COMPONENTS

Page 38
Land and Land Development
It will be ideal to acquire a land of about 0.5 acre of land keeping in
mind future expansion of the project. Accordingly, a land cost of
Rs.2.50 lakh (Rs.5 lakh/acre) has been considered in this model. In
addition, cost of Rs.5.0 lakh has been considered as land
development cost. The cost of land if purchased for the project can
form part of margin of the promoters subject to a ceiling of 10%
project cost.

Buildings and Civil Works

The following buildings and civil works have been considered for
this model.

Milling and storage Area 500 sq. m

Office, Lab& other 500 sq.m
The construction cost is considered as Rs. 6000 per sq. meter. Hence,
the total construction cost for built up area is Rs. 30.00 Lakhs.
Another 500 sq. meter area is required for office, lab boundary wall,
parking area etc. An amount of Rs. 5 Lakh is necessary to take care
of miscellaneous civil wok.

Plant and Machineries

A list of plant and machinery required for a rice mill are as under:

Page 39
 Qty. in Price in
S.N. Name of Machinery
Nos Rs.
Grain Cleaning & Sorting Sieves of Capacity 2
1 Ton Per Hour, complete with Electric Motor & 2
Blower. 380000
Gravity De-Stoner Machine of capacity 2 Ton
2 per hour, with Motor & Blower, including all 2
Std. accessories. 330000
3 Rubber Sheller, Husker with Gearbox & Motor 1 187000
4 Gravity Paddy Separator with Motor 1 155000
5 Rotary Glaze Machine with blower & water 1 170000
pump
6 All Elevator with Accessories 1 120000
7 Rice polisher with Blower without Motor 1 135000
8 All structural equipments, Main Line & Pipe line 1 100000
etc.
9 Hot Air Blowing Dryer Machine 1 15000
30 H.P Electric Motor, of “Crompton” make,
10 TEFC Model, complete Set, with Starters & 1
Main Switch. 65500
Total Machineries (Rs. In Lakhs) 16.58
Transportation, Erection, VAT, Excise duty etc. 5.78
Total Cost of Plant and Machineries (Rs. In Lakhs) 22.36

Miscellaneous Fixed Assets

Cost of office furniture and other infrastructure, telephone
installation, electrical infrastructure is considered under
miscellaneous fixed assets. A provision of Rs. 3.78 Lakh is needed
to take care of this expenditure.

Preliminary Preoperative Expenses

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 There will be different preoperative expenses like registration,
establishment, travelling, market survey, administrative, trial run
expenses etc. An amount of Rs. 2.00 Lakh is required to pay these
expenses.

Contingency
Contingency charges are considered as a 2 % of the cost of project
excluding the pre-operative expenses and land cost.

Margin Money for Working Capital

Margin money for working capital is considered for one cycle in
project cost while calculating project components

PROJECT COST

S. Particulars Amount
No. (Rs. In Lakhs)
1 Land & Land Development 07.50
2 Civil Works 35.00
3 Plant & Machineries 22.36
4 Miscellaneous Fixed Assets 3.78
5 Working Capital Margin Money 22.23
6 Preliminary & Preoperative Expenses 02.00
7 Contingency @2% 01.27
Total Project Cost 94.19

MEAN OF FINANACE

S. No. Source of Finance Amount (Rs. In

Lakhs)

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 1 Equity (25%) 23.55
2 Term Loan from Bank (75%) 70.64

WORKING CAPITAL ASSESMENT

The working capital required to run the plant is worked out as under Rupees in
Lakh

Working Capital Assessment

Particulars Days Year Year Year 3
1 2
Raw material 25 5.17 8.27 9.30
WIP 5 1.24 1.99 2.23
Finished 30 7.45 11.92 13.41
Goods
Debtors 30 8.38 12.84 14.33
Total 22.23 35.01 39.27
Creditors 0 0 0
Total 0 0 0
WCG 22.23 35.01 39.27
Margin 25 5.56 8.75 9.82
%
MPBF 16.67 26.26 29.45

Interest 14 2.33 3.68 4.12

%

MANPOWER REQUIREMENT

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 Particulars Nos. Monthly Salary
(Rs.)
Factory Manager 1 25000
Accountant -cum -Cashier 1 12000
Mechanic 2 7500
Watchman 1 6000
Total salary 5 58000
Total salary (Rs. In Lakh Per 6.96
year)

Four labours are required for unskilled work like handling, packing
etc. Wages per person per day is Rs. 200/-. This would be cost for Rs.
2.4 Lakhs per annum.

PROJECT PROFITABILITY

• Installed Capacity and Capacity Utilization

The installed capacity of the plant is 0.5 MT per hour. The plant will be
operated in two shifts of 16 hour each for 225 days per annum. Hence the
target of the production per year is to process 1800 MT paddy. One third of
the installed capacity is used for custom milling i.e. around 600 MT and
remaining is for trading in rice (1200MT). The capacity utilisation
considered during first, second and third year onwards is 50%, 80% and
90%, respectively.

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 • Yield and Production

Product Yield in % Total Production in

MT
Milled Rice 62.00% 744
Milling Charges for Milled
62.00% 372
Rice On custom Basis
Bran 5.00% 60
Husk 18.00% 216

• Sales Revenue

The sale revenue from the business at 100% capacity utilization is as under:

S. Products Price/MT Income

N. (Rs) (Rs in Lakh)
1 Milled Rice 20500 152.52
Milling Charges for
2 Milled 1200 4.46
Rice On custom Basis
3 Bran 3000 1.80
4 Husk 1000 2.16
Total Sale 160.94

For milling on custom basis by products like bran and husk produced
during milling will be taken away by the customer himself.

• Profitability Calculations

Particulars Amount (Rs. In lakh)

Page 44
Installed Capacity (MT of Paddy/ 1800
Year)
Years 1 2 3 4 5
Capacity utilization (%) 50 80 90 90 90
Income
1 Milled Rice 76.26 122.016 137.268 137.26 137.268
8
2 Charges for Milled Rice On
custom 2.232 3.5712 4.0176 4.0176 4.0176
Basis
3 Bran 0.9 1.44 1.62 1.62 1.62
4 Husk 1.08 1.728 1.94 1.94 1.94
Total income 74.89 80.47 128.76 144.85 144.85
Total expenditure 63.74 97.53 108.85 108.99 109.13
PBDIT 16.73 31.23 36.00 35.86 35.71
Depreciation 7.18 6.31 5.55 4.88 4.30
Interest on term loan 8.48 8.48 7.27 6.06 4.84
Interest on working capital 2.33 3.68 4.12 4.12 4.12
Intangible assets written off 0.00 0.40 0.40 0.40 0.40
Profit after depreciation and -1.25 12.37 18.66 20.40 22.05
interest
Tax @ 36% 0.00 4.45 6.72 7.34 7.94
PADIT -1.25 7.91 11.94 13.05 14.11
Surplus available for repayment 14.40 22.70 24.76 23.99 23.25
Cash Accruals 5.92 14.22 17.49 17.94 18.41

FINANCIAL PARAMETERS

• Cash Flow Statement

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It is useful in determining the short-term viability of a company,
particularly its ability to pay bills. Cash inflow means the source of cash i.e
equity, Loan from bank and the cash accruals from the business. Cash
outflow is a sum of cash required for the applications like increase in fixed
assets, for repayment of term loan, preoperative expenses and cash required
for the payment of dividend.

Particulars 1st Year 2nd 3rd Year 4th Year 5th

Year Year
Cash Inflow 100.11 14.22 17.49 17.94 18.41

Cash outflow 94.19 10.09 10.09 10.56 10.56

Opening Balance 0.00 5.92 10.05 17.45 24.83

Surplus 5.92 4.13 7.40 7.37 7.85

Closing Balance 5.92 10.05 17.45 24.83 32.68

• Break Even Analysis

Particulars (Rs. Year 1 Year 2 Year 3 Year 4 Year 5

In Lakh)
Sales Revenue 80.47 128.76 144.85 144.85 144.85
Total Variable 55.86 89.37 100.54 100.54 100.54
Cost
Contribution 24.62 39.39 44.31 44.31 44.31

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 Total Fixed Cost 16.36 16.57 15.41 14.18 12.94
The unit is expected to break even at approximately 66% capacity utilisation
during first year and in third year breakeven will be 34%.

• Debt Service Coverage Ratio (DSCR)

DSCR Year 1 Year 2 Year 3 Year 4 Year

5
Coverage 14.40 22.70 24.76 23.99 23.25
Available
Debt 8.48 18.57 17.36 16.15 14.94
DSCR Ratio 1.70 1.22 1.43 1.49 1.56
Average DSCR 1.52
Ratio

The debt service coverage ratio based on the assumed techno economic
parameters is found satisfactory. The average DSCR is 1.52.

• Internal Rate of Return (IRR)

The financial indicators like Net Present Worth (NPW), Benefit Cost Ratio
(BCR), Internal Rate of Return (IRR) etc. were analysed by discounting cash
flow @15% discounting rate. The internal rate of return is found to be 38.24%
and BCR is about 1.10.

• Projected Balance Sheet

Liabilities Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7
Equity 23.55 23.55 23.55 23.55 23.55 23.55 23.55
Term Loan 70.64 60.55 50.46 40.37 30.28 20.18 10.09
Reserve &
-1.25 6.66 18.20 30.39 43.62 57.52 72.37
Surpluses

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Total 92.94 90.76 92.21 94.30 97.45 101.2 106.0
5 1
Assets
Gross Fixed 92.19 92.19 92.19 92.19 92.19 92.19 92.19
Assets
Less 7.18 13.49 19.04 23.92 28.22 32.01 35.35
Depreciatio
n
Net Fixed 85.01 78.70 73.15 68.27 63.97 60.18 56.84
Assets
Intangible 2.00 2.00 1.60 1.20 0.80 0.40 0.40
Assets
Cash &
Bank 5.92 10.05 17.45 24.83 32.68 40.67 48.77
Balance
Total 92.94 90.76 92.21 94.30 97.45 101.2 106.0
5 1
TNW 116.4 114.3 115.7 117.8 120.9 124.8 129.5
8 1 6 5 9 0 6
TOL 70.64 60.55 50.46 40.37 30.28 20.18 10.09
TOL/TNW 0.61 0.53 0.44 0.34 0.25 0.16 0.08

ASSUMPTIONS

a. The plant will be operated in two shifts of 16 hour each for 225 days
per annum.
b. Capacity utilization: First year –50%, Second year - 80%, Third year
onwards - 90%.
c. The wages for unskilled workers are taken as per prevailing rates in this
type of industry.
d. Interest rate for term loan is 12% per annum and that is for working
capital is 14% per annum.

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e. Margin money considered at 25% of the financial outlay.
f. Insurance charges for the fixed assets considered as 0.5% of the
depreciated cost of the assets.
g. Repayment period of eight years with one year grace period for
repayment of principal.
h. Costs of machinery and equipment are based on average prices of
machinery manufacturers.
i. Power cost is considered as Rs. 6.00 per unit and that for the fuel is Rs.
55 per litre.
j. The cost of water is considered as 30 paisa per L.
k. Repair and maintenance is considered as a percentage of total project
cost excluding preliminary preoperative expenses, land and land
development cost. The percentages are 0.10, 0.25 and 0.5 for first three
years respectively and 0.75 for fourth year onwards.
l. The administrative expenses will be considered as Lump sum Rs. 25
thousand per annum.
m. The 0.5% of total income would be considered to take care of
promotion and marketing expenses.
n. Insurance of the fixed assets is a function of their depreciated cost. It is
considered as a 0.5% of depreciated cost (WDV method) of assets.
o. Land cost is considered as Rs.5 Lakh per acre.

Conclusions

Rice straw, rice husk, rice bran, rice germ and broken rice are the main
rice by-products in the rice industry. Rice by-products may serve as
important sources of raw material that could be used as ingredients of
functional food and nutraceuticals. They have great potential to be
converted into human food to improve food security in the country.

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