MINI DAL MILL
INTRODUCTION
India is the largest producer of pulses around 14.5 million tones annually. Pulses commonly
known as dal in India are an important component of both the vegetarian as well as the nonvegetarian diet in India. Among the North Eastern States, Assam is the largest producer of
pulses.
THE PROJECT
Pulses constitute one of the main sources of protein in the Indian diet. There are different
varieties of pulses namely Chana, Mung, Masur, Urad and Tuvar dal. Of these, Mung and Masur
dal are predominantly consumed in the North Eastern States. The conversion of pulse grains into
dal through the process of milling. Wherein dal is split into smaller sizes rendering it convenient
for cooking. It is one of the important food processing industry usually in the medium and smallscale sector, some quantity is also processed in the rural sector manually producing inferior
quality dal resulting in lesser revenue earning compared to milled dal.
MARKET POTENTIAL
The all India per capita consumption of pulses is about 2.8 kg per year. In the north-eastern
region, consumption of pulses is generally higher especially in States like Assam and Manipur.
Conservatively, taking the national consumption norm of 2.8 kg and considering the total
population of 365 lakhs in the north-eastern region, the demand for pulses is estimated at
1,02,000 tonne per year. There is no organized dal milling activity in the north-eastern region. In
rural areas, sometimes dal milling is carried out in rice hullers. However, generally raw dal is
processed in unit in nearby areas of West Bengal and milled dal re-enters the north-eastern
states. The total production of pulses in north-eastern region is about 85,000 tonne per year,
assuming that 80% of this quantity is available for dal milling, that the new tiny units process 15%
of the available dal, there is scope for over 15 tiny units with annual milling capacity of 700 tonne
of dal to be set up.
SUGGESTED CAPACITY
In assessing the proposed plant capacity due consideration is given to availability of raw material,
market and basic infrastructure like power etc. a typical dal milling until is envisaged to produce
500 MT per annum on the following basis:
Production Capacity
Number of Shifts
Daily production capacity
Capacity utilization
Working days per annum
Annual Production
Loss during dehusking
Net Production
:
:
:
:
:
:
:
:
159 kg/hr.
2
2.53 tonne
70%
300
6%
6%
500 tonne/annum
INFRASTRUCTURE REQUIREMENT
Covered Area
Power requirement
Water
:
:
:
750 Sq. ft.
25 KW
Minimal
RAW MATERIAL AND ITS AVAILABILITY
More than 80% of the total production of pulses in the North Eastern Region comes from Assam.
Pulses are grown in more or less all the North Eastern States. The state-wise production of
pulses is as under:
159
State
Tonne/Year
Arunachal Pradesh
Assam
Meghalaya
Nagaland
Tripura
Mizoram
5000
60000
2000
7000
5000
6000
85000/-
Total:
SUGGESTED LOCATION
A dal milling unit should be located in a urban/semi-urban area which has access to raw material,
skilled manpower and market. However, the following tentative suggestion can be taken into
consideration.
Assam
Manipur
Nagaland
Tripura
Sikkim
Barpeta, Haflong, Mangaldoi, Nagaon,
Nalbari, Silchar
Imphal, Chandel Senapati
Dimapur
Agartala
Rumitek, Dentam, Brang, Somgochoo
PRODUCTION PROCESS
The important steps involved in the process are –
1.
2.
3.
4.
Cleaning
Milling
Dehusking and cleaning
Weighing and Packing
PROJECT ECONOMICS
TOTAL CAPITAL REQUIREMENTS
A.
Fixed Capital
1.
2.
3.
4.
5.
6.
(Rs. in lakh)
Land
Site Development
Building (working shed 750 Sq.ft.
Raw material godown, finished product
Godown, Office room)
Plant and Machinery
Misc. Fixed Assets
Preliminary/Pre-operative expenses
Own
0.45
4.87
Total (A):
B.
1.84
0.50
0.30
7.96
Working Capital Requirement
Sl. No.
1. Raw material and
Consumables
2. Finished goods
3. Working expenses
4. Receivables
Norms
1 month
1 week
1 month
1 week
Total (B):
160
Amount
(Rs.in lakh)
9.23
2.87
0.42
2.93
15.45
*Working Capital to be financed as –
Margin Money
Bank Finance
Rs. 3.86 lakh
Rs 11.59 lakh
Term Loan(75%)
Promoter’s Equity(25%)
Rs. 5.97 lakh
Rs. 1.99 lakh
Rs. 7.96 lakh
MEANS OF FINANCE
COST OF PRODUCTION AND PROFITABILITY
A.
B.
C.
Capacity Utilisation
Output (MT)
Annual Revenue
: 70%
: 500 MT/annum
: Rs. 135.00 lakhs
The cost of various types of pulses varies from Rs. 20 to Rs. 30/Kg, so an average cost
of Rs. 27,000 per tonne is taken into consideration. The annual sales revenue for 500 MT
is estimated at Rs. 135 lakhs.
COST OF PRODUCTION
1.
2.
3.
4.
5.
6.
7.
8.
Raw material and consumables
Utilities
Wages and Salaries
Plant Overheads and repairing & maintenance
Depreciation
Administrative Expenses
Interest
Selling expenses @ 5% of annual sales
(Rs. in lakh)
110.75
3.34
1.38
0.35
0.70
0.36
2.46
6.75
Rs. 126.09 lakhs
Operating profit
Return on Sales
Rs. 8.91 lakhs
66%
MACHINERY AND EQUIPMENT
The main equipments required are –
1.
2.
3.
Automatic Dal Mill plant with 25 HP Motor
Weighing Scales
Storage equipments
1 No.
2 Nos.
5 Nos.
The total cost of equipments have been estimated as Rs. 1.84 lakhs
MANPOWER REQUIREMENT & WAGES
Sl. No.
Category
1.
2.
3.
Manager
Skilled Worker
Unskilled workers
Total:
Nos.
1
1
4
Average Salary/
person/month(Rs)
3,500
2,000
1,500
Total Annual Salary Rs. 1.38 lakhs
161
Total monthly
Salaries(Rs)
3,500
2,000
6,000
11,500
COST OF RAW MTERIAL & CONSUMABLES
The cost of raw material and consumables are as follows:
1.
2.
Dal (various quality) @ of Rs. 25,000/Packing material (Lumpsum)
Total:
COST OF UTILITIES AND OVERHEAD
The power requirement for the milling plant:
1. For running the automatic dal mill with 25 HP Motor
2. For internal lighting + general load
The total daily requirement of power
(26 Kw × 16 hrs ×2 shifts) × 8)
The daily power bill (320 Kwh × Rs. 4)
Total cost of power per annum (i.e. 300 working days)
Rs. 110.00 lakhs
Rs. 0.75 lakh
Rs. 110.75 lakhs
: 18.65 Hwh
:
6 Kw
24.65 KW
Say 25 KW
= 320 Kwh
= Rs. 1280/= Rs. 3.84 lakhs
PLANT OVERHEADS
Sl. No.
Items
1.
Repair and Maintenance
(a) 1% on cost of civil works
(b) 2% on Plant and M/c.
(c) 1% on Misc. fixed assets
Sub-Total:
2.
Insurance on Plant Assets
2% on building, Plant & M/c. miscellaneous fixed assets
Total:
At 70% capacity utilization = 0.16%
Amount (Rs. in lakhs)
0.05
0.03
0.01
0.09
0.14
0.23
BREAK EVEN POINT ANALYSIS
(Rs. in lakhs)
A.
B.
C.
D.
E.
Variable Cost:
Raw Materials and consumables
Utilities
Selling Expenses
Total (A)
110.75
3.34
6.75
120.84
Total (B)
1.38
0.35
0.36
0.70
2.46
5.25
Semi-variable Cost
Wages and Salaries
Repair and Maintenance
Administrative Expenses
Depreciation
Interest
Sales Realisation
Contribution
Break Even Point = B/D x 70%
135.00
14.16
26%
MACHINERY SUPPLIERS
1.
M/s. Archana Machinery Stores
A.T. Road, Guwahati
2.
M/s. DIW Hindustan Industrial Works
Post Box No. 12, Dahanu Road
Dist: Thane (Maharashtra)
162