RURAL AND AGRO Enterprise Analysis|BCKV|SOUVIK PAL|.pptx

RURAL AND AGRO Enterprise Analysis Study On Rice Mill By Souvik Pal BSC Hons Agriculture
Bidhan Chandra krishi vishwavidyalaya BCKV,RAWE,

1. 7th Semester SOUVIK PAL presented By AG - 41 RAWE THEME III Rural Agro - Enterprise study

2. ENTERPRISE STUDY ON DHARMARAJ Rice Mill

3. Content 01 02 03 04 05 06 07 Overview of rice mill Enterprise description of rice mil Infrastructure and plant machineries HR,Key activities, Capacity Building Financial aspects of Rice mill Supply and value chain Ecological and environmental impacts 08 Future planning and Conclusion

4. Baliguni,Nanoor,Birbhum,West Bengal731301 Latitude : 87.8832 Longitude : 23.6916 GPS : https://maps.app.goo.gl/zqGh1HHQR

5. RICE MILL AT A GLANCE ⚫REG No : WB1699E ⚫GST Memo : 19E11CDZRR ⚫USED VARIETY : SWARNA, RATNA ⚫SOURCE OF : Local farmer, wholesaler RAW MATERIAL ⚫ESTB YEAR : 2009 ⚫OWNER : Mr Ashes pal ⚫PRODUCTION : 120 Ton Rice /Day ⚫AREA : 10 Bigha( 1.33Ha) Memorandum

6. Literacy rate Adjoining Vill. Polulation 4039 House hold DEMOGRAPH of village Source of Data: Baliguni Gram panchayat 66% Nanoor , Muitin,Bandar nearest town bolpur 853 occupataion FARMING 200 Ha Agriculture land Type Rural area

7. HISTORY AND INCUBATION ⚫ ESTB : 20009 ⚫ OWNER : Mr Ashes pal ⚫ IDEA BEHIND SET UP THIS MILL : Mr Ashes pal Was Previously a wholesaler of Paddy.He basically collect raw paddy from farmers and sold to rice mills. From that he had an idea about rice mill processing. In nanoor block there were one rice mill and demand of good quality rice was in peak . He got this land from a relative and that was not expensive &it was beside National Highway –So less transport cost. As birbhum was major paddy producing area. Raw materials(Paddy ) are available in wholesome amount.

8. Trademark ™️ Hologram: Horse "#Stonefree #Sortex #Silky"

9. BOLPUR BAHIRI CHARKAL GRAM NANOOR KURMBO BELUTI SAOTA MARKETING

10. INFRASTRACTURE GODOWNS: Total 3 1 for Procurement 1 for processing 1 for marketing Enterprise description Office Room: 1 Labour`sQuarter:1 Warehouses:1

11. INFRASTRACTURE Controller room: 1 Enterprise description Parboiler unit: 3 Water tank: 4 chimney :2

12. Machinery 1 Paddy Destoner To remove stone and other impurities from paddy 2 Paddy Boiler and Dryer Parboiling of raw paddy by steaming 3 Paddy Aspirator Remove dust 4 Paddy Husker Remove husk from paddy

13. Machinery 5 Paddy separator separation of brown rice and paddy 6 Paddy Whitener Remove bran from brown rice 7 Polisher Polishing the outer surface of rice kernels to remove the extra bran. 8 Grader Separation of broken Rice and headed rice

14. Machinery 9 Colour sorting machine for rice along with compressor (1) Remove black tipped rice ,immature grain. 10 Sealing machine Sealing packet of rice 11 Pre Cleaning Unit Cleaning of paddy grains. 12 Husk processing machine Blending husk for Bhusi ( Cattle Feed)

15. Owned Capital Capitals He and his partners contributed 30 lakhs rupee as an initial investment for startup . Loan From Bank loan from SBI 70 Lakhs Rupees @9.3% Interest yearly and payback period 4 Years.

16. Enterprise Description Hr Details Skill Upgradation 1 Manager 1 Accountant - Arup Biswas 1 Supervisor 5 Permanent Staffs 6 Skilled labourers 20 Casual labourers 2 Sales executives Skilled Workers: Received training at Rice Mill Association Office. Unskilled Workers: Have no proper training. Collection and Procurement of raw paddy Milling of Paddy Production of Silky Whitened rice Production of Husk, Bran, ash as a by-product. Marketing Key activities

17. PARBOILING OF RAW PADDY BY STEAMING. DRYING OF PARBOILED PADDY REMOVES DUST SEPARATE BROWN RICE AND PADDY REMOVE STONE FROM PADDY Paddy Separator Polisher REMOVE BRAN LAYER FROM BROWN RICE SEPARATION OF BROKEN &HEADED RICE REMOVE ALL IMPURITIES,DUST , INNERT MATTER ,STRAW FROM PAADY Collection of Raw materials Paddy destoner Parboiler Dryer Aspirator Paddy Husker REMOVES HUSK FROM PADDY Grader Colour Sorting Machine REMOVE BLACK TIPPED RICE, IMMATURE RICE Weighing and Packaging Hopper Pre Cleaning machine

18. (**Source – According to the mill owner) SL No Fixed items Costs( In INR) 1 Land(1.33 Ha) 5000000 2 Inspection charge 30000 3 Trade license 7000 5 Building and godown 1680000 6 plant and machineries 8500000 7 Depriciation on plant and machineries 1200000 8 Miscellaneous( Water Pump, Electric Set up, Boundary wall, ) 231200 9 Total ₹16648200 Financial aspects of Rice mill

19. (**Source – According to the mill owner) Financial aspects of Rice mill SL No Variable Costs(Operational and Maintenance cost ) Costs( In INR) Per Year 1 Security guard 222500 2 Maintenance Cost 150500 3 Raw material(Paddy) 20180800 4 Electric Charge 2477600 5 Travelling charge 65000 6 Pollution charge 88900 7 Labour cost 693000 8 Fuel and Lubricant 117800 9 Salary to permanent staff 514000 10 Total 24510100

20. Financial aspects of Rice mill 2 nd Year 3 rd year 4th Year 5 Year 6 th Year 7thYear 8 th Year Rice Sold  ( ₹30000/MT) 231.25000 (771 MT) 478.75000 (1596 MT) 478.75000 508.75 (1693MT) 508.76 540.0 (1800 MT) 540.00 Sale of Rice Bran @ Rs. 7000/ M.T. 12.10 24.19 24.19 25.70 27.21 27.21 27.21 Total 243.25 502.94 502.94 534.45 567.21 567.21 567.21 RETURNS IN LAKHS

21. Financial aspects of Rice mill Year TOTAL COST (FC+VC) TOTAL RETURN (Including by product) DISCOUNTED FACTOR AT 10%DR) =1/(1+R)^N NPV OF TC (DFXTC) NPV OF TR (DFXTR) 1 41158300.00 0.909090909 37416636.4 2 24510100.00 24323000 0.826446281 20256281 20101652.89 3 24590467.00 50294000 0.751314801 18475181.8 37786626.6 4 24643500.00 50294000 0.683013455 16831842.1 34351478.71 5 24644600.00 53445000 0.620921323 15302357.6 33185140.11 6 24666890.00 56721000 0.56447393 13923816.3 32017525.78 7 24789500.00 56721000 0.513158118 12720933.2 29106841.61 Total 189003357.00 291798000 134927048.4 186549265.7 DISCOUNTED COST AND RETURN

22. NPW = Net present worth = ∑NPV of TR ▬ ∑NPV of TC = 186549265.7-134927048 =51622217 Benefit –cost ratio = ∑NPV of TR / ∑NPV of TC = 1.38 As the benefit cost ratio is >1 ; hence the enterprise is economically viable .

23. Year Total Cost Total Return Discounting Factor (at 35%dr) NPV of TC NPV OF TR 1 41158300.00 - 0.740741 30487629.6 2 24510100.00 24323000 0.548697 13448614.5 13345953.36 3 24590467.00 50294000 0.406442 9994601.23 20441599.35 4 24643500.00 50294000 0.301068 7419374.87 15141925.44 5 24644600.00 53445000 0.223014 5496078.55 11918956.61 6 24666890.00 56721000 0.165195 4074851.5 9370036.183 7 24789500.00 56721000 0.122367 3033411.91 6940767.543 Total 189003357.00 291798000 73954562.2 77159238.5 CALCULATION OF IRR NPW AT 35% IS 77159238.5 -73954562.2 =3204676.3

24. Year Total Cost Total Return Discounting Factor (40%) NPV of TC NPV OF TR 1 41158300.00 - 0.714286 29398785.7 2 24510100.00 24323000 0.510204 12505153.1 12409693.88 3 24590467.00 50294000 0.364431 8961540.45 18328717.2 4 24643500.00 50294000 0.260308 6414905.25 13091940.86 5 24644600.00 53445000 0.185934 4582279.7 9937265.723 6 24666890.00 56721000 0.13281 3276017.27 7533133.516 7 24789500.00 56721000 0.094865 2351643.68 5380809.654 Total 189003357.00 291798000 67490325.1 66681560.83 NPW AT 40% DF : -808764.3 CALCULATION OF IRR

25. IRR = 35+(40-35)X( 3204676.3 /4013441) =38.8877644% . IRR = [LOWER DISCOUNT RATE] + [DIFFERENCE BETWEEN THE TWO DISCOUNT RATES] X [NPV OF THE CASH FLOW AT THE LOWER DISCOUNT RATE/ABSOLUTE DIFFERENCE BETWEEN NPV OF THE CASH FLOW AT THE TWO DISCOUNT RATES] IRR( Internal Rate of Return)

26. share Mr Ashis Pal Mr. Jagababdhu Pal Stakeholder Name SHARE 50% 50%

27. RISKS IN RICE MILL Input & Output Price Variation Fire Hazard Production procedure stops if sudden power supply cut and failure of high cost Machinaries due to this. High Rate of interest of loan .

28. BARRIERS IN RICE MILL capital intensive Excessive competition in the market

29. 4. Brown Rice Further processed Used in boiler as Fuel Supply & Value chain 01/ Purchasing of Raw Material ( Paddy) from Farmer, dealers 02. Milling Of Paddy 3.Husk bhusi Sold for cattle feed@8Rs/Kg Ash is further sold @ Rs95/Tractor (Act as Nutrient source in crop field ) White Polished Silked Rice Sold at Rs 780/Sac ( 26kg) to dealer, wholesaler,market Broken rice Sold at Rs 1000/Sac ( 50kg) Bran Sold at Rs 2200/Quintal to oil mill HUSK BRAN BHUSI ASH BROKEN RICE WHITENED RICE

30. MARKETING FLOW CHART PRODUCTION OF WHITENED RICE SOLD TO WHOLESELLER RETAILER CONSUMER

31. 1.Smoke release from chimney acts as a air pollutants. 2. Effluent from boilers plant can cause harm to aquatic ecosystem. PROBLEMS ECOLOGICAL AND ENVIRONMENTAL PROBLEMS 1. Due to excessive dust inside rice mill bronchitis, Asthma like health hazard. 2. Loud sound (above 60 Db) generates from sorting, grading machine that causes deafness, headache like problems. HEALTH PROBLEMS

32. Future goals Complete machanization especially for Loading & Unloading of paddy. 01 Bran oil extraction unit. 02 At present there there are 5 Milling unit, he wants to increase it to 10 unit in next 5 years. 03 He wants to sale rice among different states & and make his brand "most premium quality silky whitened rice exporter". 04

33. There was one milling Unit Produced Only 24 Ton Rice per day with capacity of 62%. previously it was semi automatic. soaking , drying done manually. Annually net turn over was near about. SUCCESS STORY ⚫At Present he has total 5 Milling units produced 120 ton Rice/day with capacity of 85%. ⚫At present , Without loading Unloading all process is done with high tech automated machine . ⚫At present annually net turn is 2009 (When he Started this) 2023 (Current Status) ⚫ ⚫ ⚫

34. SOCIAL WELFARE ⚫Shelter for unskilled labours working in his mill. ⚫ Education and health support to the poor people. ⚫ Donation of his 2 bigha of land for establishment of Uchkaran High school situated nearby his mill. ⚫ Financial support for establishment of "Basanti Temple" .

35. CONCLUSION Through this study I get the idea about the whole process of manufacturing processed raw paddy, byproducts, all activities of the rice mill, economic description of the enterprise, marketing channel etc. It is necessary to pay greater attention on the problems faced by the enterprise through government policy especially the plant machinery should under insurance policy, reduce trading tariff and barrier while exporting rice. As the benefit cost ratio is >1 , So the the enterprise is economically viable.

36. Acknowledgement First & foremost I am very much thankful to the Owner Mr. Ashes pal and staffs of the rice mill arup biswasl for providing me all the necessary informations that I required to make this programme a huge success & Special thanks to- Dr. Dhananjoy Dutta Sir (RAWE Coordinator) Dr. Sankar Acharya Sir (RAWE Advisor) Dr.Amitav Basu sir Dr. Bimal Bera Sir Dr. Gunodhor dey sir Dr.Soumitra sir Dr A.k Nandi Sir. For their continuous Support and guidance.

37. Depreciation Multiple formulas are available to compute the book value of an asset, and several types of depreciation expenses exist. The widely used methods of depreciation include: straight-line, double declining balance, units of production, and sum of years digits. In accordance with the Diminishing Balance Method, asset depreciation is calculated as a fixed percentage of the asset's book value, which diminishes annually.

38. Building & Shed Plant & Machinery Rate 10% 15% Cost (LAKH) Cost (LAKH) 50.00 149.00 2.50 11.17 Depriciation at 1st year Depriciation at 1st year 47.50 137.83 4.75 20.67 Dep on 2nd year Dep on 2nd year 42.75 117.16 4.27 17.57 Dep on 3rd year Dep on 3rd year 38.48 99.59 3.84 14.93 Dep on 4th year Dep on 4th year 34.64 84.66 3.46 12.70 Dep on 5th year Dep on 5th year 31.18 71.96 3.12 10.79 dep on 6th year dep on 6th year 28.06 61.17 2.80 9.17 dep on 7th year dep on 7th year 25.26 52.00

39. BREAK EVEN POINT IS THE LEVEL OF PRODUCTION WHERE TOTAL REVENUE AND TOTAL EXPENSES SAME. BEP = TOTAL FIXED COST/SELLING PRICE X PER UNIT VARIABLE COST = Break even point(BEP)