PROJECT REPORT

MILLET PROCESSING UNIT

INDEX
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 SL.NO TITLE PAGE NO
1 SUMMARY OF THE PROJECT AND FINANCIAL ABSTRACT
2 INTRODUCTION
3 THE PROMOTER DETAILS
4 MARKET POTENTIAL
5 SWOT ANALYSIS
6 LOCATION OF THE UNIT
7 THE PROCESS/QUALITY SPECIFICATIONS/TECHNOLOGY
8 OPPORTUNITY AND TARGET MARKET
9 MANPOWER / EMPLOYMENT
10 ELECTRICITY LOAD
11 SCHEDULE OF IMPLEMENTATION
12 GOVT SCHEMES
13 MACHINERY
14 LAND & BUILDING
15 DEMAND AND SUPPLY
16 PRODUCTION, SALES & R/M ETC., DETAILS
17 SUPPLIERS DETAILS
18 PROJECT COST DETAILS
19 TERM LOAN REPAYMENT / INTEREST CALCULATIONS
20 PROFITABILITY STATEMENT
21 PROJECTED BALANCE SHEET
22 PROJECTED CASH FLOW STATEMENT
23 WORKING CAPITAL REQUIREMENT STATEMENT
24 BREAK-EVEN ANALYSIS (BEP)
25 RETURN ON INVESTMENT (ROI)
26 INTERNAL RATE OF RETURN (IRR)
27 DEBT SERVICE COVERAGE RATIO (DSCR)
28 ABSTRACT OF FINANCIAL PARAMETERS/DATA
29 UDYOG AADHAAR
30 NOC FOR POLLUTION – ANNEXURE – 2
31 LEASE DEED DOCUMENT – ANNEXURE – 3
32 PLANT LAYOUT – ANNEXURE – 4
33 QUOTATION OF M/s. – ANNEXURE – 5
34 QUOTATION OF M/s. – ANNEXURE – 6
35 QUOTATION OF M/s. ANNEXURE – 7
36 QUOTATION OF M/s. ANNEXURE – 8
37 QUOTATION OF M/s. ANNEXURE – 9

INTRODUCTION
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Millet is a collective term referring to a number of small-seeded annual grasses that are
cultivated as grain crops, primarily on marginal lands in dry areas in temperate, subtropical and
tropical regions. The most important species are pearl millet, finger millet, proso millet and
foxtail millet. Pearl millet accounts for almost half of global millet production. It is the most
important species of millet both in terms of cropped area and contributions to food security in
regions of Africa and Asia that can produce little else. Finger millet is widely produced in the
cooler, higher-altitude regions of Africa and Asia both as a food crop. Proso millet is important
for Health mainly in India. Foxtail millet is important in parts of Human Health. The other
species (barnyard, kodo and little millets, the fonios and teff) are locally important food grains
to smaller regions or individual States. The various species differ in their physical characteristics,
quality attributes, soil and climatic requirements and growth duration.

Developing countries, mainly in Asia and Africa, account for about 94 percent of global output,
estimated at some 28 million tons of this, pearl millet accounts for about 15 million tons, foxtail
millet for 5 million tons, proso millet for 4 million tons and finger millet for over 3 million tons.
Almost all millet is produced by small-scale farmers for household consumption and localized
trade. Pearl millet, in particular, is critically important for food security in some of the world's
hottest, driest cultivated areas.

Convenience foods provide the housewives novelty, convenience, reducing the drudgery and
satisfaction of preparing at home. Idli Mix, Dosa Mix is some of the traditional food items
commonly used in Indian homes. The ready mixes provide hygienic products of standard and
uniform quality with good shelf life. Ready mixes such as Idli and Dosa were earlier used in
southern region but now they find applicability in the day to-day menu all over India. Since,
these ready mixes have undergone processing to a considerable extent, only little processing
such as mixing with water for making dough, shaping and frying is required at home.
Nutritionally also these products are rich and wholesome.

Statistical documentation for millet is generally poor and fragmentary. Few national statistics
distinguish between the various botanical species. Some countries combine millet figures with
those of sorghum and other cereals, and include millet under the general category "other

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coarse grains". Many of the statistics are only rough estimates; analyses derived from these
data should, therefore, be treated with caution.

Millets are better adapted to dry, infertile soils than most other crops, and are therefore often
cultivated under extremely harsh conditions - for example, high temperatures, low and erratic
precipitation, short growing seasons and acidic and infertile soils with poor water-holding
capacity. Most millet have strong, deep rooting systems and short life cycles, and can grow
rapidly when moisture is available. As a result, they can survive and reliably produce small
quantities of grain in areas where mean annual precipitation is as low as 300 mm. This
compares with a minimum water requirement of 400 mm for sorghum and 500-600 mm for
maize. Some species (pearl and proso millets) also appear to tolerate higher temperatures than
sorghum and maize, although they do not tolerate long drought periods as well as sorghum.

Due to increasing urbanization, more and more number of women taking up jobs, improving
financial status of the middle income group, the market for ready mixes is increasing day-by-
day. The estimated future demand for the ready mixes is estimated to be over 4500 tonnes per
annum.

PROMOTERS DETAILS- BACKGROUND & EXPERIENCE

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The Proprietor of the proposed unit is Mr. Jodu Pentaiah, S/o. Mr. Jodu Laxmaiah, is male
Candidate and DOB 10-06-1977, aged: 42 and residing at H.No: 3-29, Dharmapur (Vg),
Chowdarpally (Mdl), in Mahabubnagar (Dt)., of T.S., and studied S.S.C and belongs to Minority
Community and considered as 'Special Category'. The promoter is having Two (2) years of
experience in the field of MILLET PROCESSING UNIT & FOOD PRODUCTS and worked in similar
industry of units at Mahabubnagar as production supervisor and having exposure in handling
Production section activities. During the tenure, he developed good contacts with the local
people, co-employees, contractors, suppliers, vendors etc., related to MILLET PROCESSING UNIT
& FOOD PRODUCTS and occasionally involved in other areas also as and when required in the
above said unit.

Presently the Promoter is doing Trading in Various Product/s like Pulses, Grains, Sohugrams
etc., made with Grains. However, other required raw materials are caustic soda, and packaging
consumables. etc., used in making Idly & Dosa Batter. And other related products since last 1
years in Mahabubnagar district and surrounding areas / towns and involved in marketing of
above products and established relations with parties, now with the earlier practical experience
gained in industry as production supervisor and with the present experience, the Promoter is
interested to start ‘MILLET PROCESSING UNIT & FOOD PRODUCTS ' on his own at Near Bus
stand, in Mahabubnagar (Dt)., T.S., he surveyed and analyzed the market and other areas like
Procurement of Raw materials, Sales, Production etc.,

The Promoter got varied experience and exposure in making and marketing for a considerable
period of time and has good exposure in the relevant field of production and marketing skills
are good advantage to the business. The Promoter with his good social contacts and qualitative
product is quite confident of marketing the product on a large scale. The Promoter
Geographically very familiar with the surroundings of the unit area of Mahabubnagar and can
mould the situation to the advantageous to run the unit successful.

MARKET POTENTIAL

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There is a growing interest in reviving millets in the Telangana owing to their ability to survive in
changing climatic conditions while providing high nutrition and better health. A number of
initiatives are being promoted by various agencies towards enhancing millet cultivation and
marketing. Integrated approaches and networking among key players are found to be crucial
for wider impact.

Minor millets, a group of small-grained grass cereals, are of importance as food and fodder in
the semi-arid regions of the world. In Telangana, minor millets have traditionally been
cultivated in the dry lands, predominantly by poor and marginal farmers and in many cases by
tribal communities, but the area under their cultivation is decreasing. Growing interest to revive
millet cultivation in this Telangana is driven by nutrition, health and resilience considerations.
These cereals grow well in dry lands and at high temperatures; they have been supporting
millions of poor and marginal women and men farmers struggling with poor soil, low moisture
and scarce external inputs. Thanks to their hardiness and good nutritional profile they are in
fact, important assets for adapting to climate change.

In order to better understand trends and obstacles faced in the use enhancement of minor
millets, the M.S. Swaminathan Research Foundation, Action for Social Advancement and
Bioversity International carried out a study in 2016 and 2017, involving value chain actors in
Telangana and Andhra Pradesh. Key stakeholders engaged in both research and development
of these crops were interviewed through an iterative process, involving Internet searches and a
snowball sampling approaches.

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 Millet Market: Major Producers, By
Volume in % Telangana, 2019
5%
17% Mahabubnagar
Nalagonda
17%
Nizamabad
Macherial
Kamargoan
Siricilla
16% Wanaparthy
10% Siddipet

12% 8%

15%

Millet Market: Major Consumers, By

Volume in % Telangana, 2019
5%
17% Mahabubnagar
Nalagonda
17%
Nizamabad
Macherial
Kamargoan
Siricilla
16% Wanaparthy
10%
Siddipet

12% 8%

15%

We are producing as per below quantities:

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 Particulars Quantity per month Price per unit Total per month
500 gms 6000 50 300000
1 kg 4000 100 400000
TOTAL 10000 150 700000

MARKETING AND SALES PLAN:

80% production will be selling 1st week of month.

 Walk- in sales for everyone (counter sale)

 Agreement with local organic Traders
 Local shops and super markets
 Door delivery for limited area
 Facebook Page
 WhatsApp Flyers
 Google Ads
 You Tube Channel
 Pamphlets
 Flex Board Advertisement
 Company Website

SWOT ANALYSIS:

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 Strengths Weakness
 Healthy and exclusive quality product
 Produced in front of customer will  Requirement of financial assistance
give more satisfaction and create the for establishing.
transparency of our product.  Marketing problem
 Cost effective Millets  Low availability of raw material
 Run by a qualified and trained
personnel.
 Use of high power machines in millet
processing.
 We under gone on job training in
Millet processing

Opportunity Threats
 As the people are moving towards  Always a competitor to establish food
healthy diet plan and usage of court on millets
healthy products will attain more  Competitor may reduce the price, it
demand for millets in present & will be directly affected to our
future scenario. business.
 Government also supporting millet  If Raw material cost will be increased,
consumption we cannot provide the old price to
 Door to Door Delivery the customer.
 Urban people preferring millet  Government Policy issues
 Food life style changes

LOCATION FOR THE UNIT:

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Next, we will need to determine a space for the manufacturing operation. Generally, Millet
Processing Unit needs moderate covered space area. Also, it depends on the unit size and
quantity of production output we want. For a small or medium scale unit, we need 100 Sq Mtr
of covered space. Keep 50 Sq Mtr for the production area, and rest we can use for storage,
packaging, and official work. The location must have the electricity facility and water supply. In
starting a Millet processing unit business, it is advisable that we start the unit at a rented space.
Also, we can avail long-term lease facility in the industrial zones.

After determining the space, we need to establish the unit. If we able to manage a covered
space its good, otherwise we can build the shade with color coated steel roofing sheets.
Generally, the sheet companies help in design, development, manufacture, and erection.

In addition to that, we need a floor plan. And according to the machinery installation plan, we
need to do the electrical wiring. Also check, what type of furniture and fixture we need to run
the production.

THE PROCESS/ QUALITY SPECIFICATIONS/ TECHNOLOGY:

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 DRY DOSA INGREDIENTS

Raw Rice (12 kgs) Dehulled Black Gram Dhal (3 kg)

Fenugreek Seed (60 g)

Clean

Free Flowing Steam (20 Mins)

Soak in Potable Water (10 h)

Wash in Potable Water (Twice)

Grinding in wet Grinder

Add: Common Salt (0.6%), Inoculate with Starter Cultures

(Candida Versatilis 2x10⁴ cfu/kg & Pediococcus pentosaceus 2x10ⁱ cfu/kg batter) PET/LDFE pouches
(11x9 inch size)

UV Sterilization (10 Mins) Pack Batter (500 g Units)

Heat Seal

DRY IDLI INGREDIENTS

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 Raw Grits (12 kgs) Dehulled Black Gram Dhal (1 Part)

Clean

Free Flowing Steam (20 Mins)

Soak in Potable Water (10 h)

Wash in Potable Water (Twice)

Grinding in wet Grinder

Batter

Add: Common Salt (0.6%), Inoculate with Starter Cultures

(Candida Versatilis 2x10⁴ cfu/kg & Pediococcus pentosaceus 2x10ⁱ cfu/kg batter) PET/LDFE
pouches (11x9 inch size)

UV Sterilization (10 Mins) Pack Batter (500 g Units)

Heat Seal

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Technology:

Processing Technology is available

The processing technology is used raw millet grain to finished millet grain.

Raw Millet Grain

Destoner Remove stones and dust

Grading Separate fine grain

Dehuller Removes Husk

Finished Goods

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OPPORTUNITY AND TARGET MARKET
 Urban areas including Mahabubnagar

 Semi Urban Areas including Mahabubnagar

 Over 3 lakh people live in this area.

 Out of these more than around 50000 people are health conscious preferring millet
products and food
 Diabetes patients also preferring, millet foods
 Network of doctors suggesting to use our products

Our production : 8 tons per month

Working days : 25 days in a month

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MANPOWER / EMPLOYMENT:

The proposed processing facility will be operational in hierarchal fashion with a proper line of
command. There will be a two tier structure in place for effective Operations and Management
of the facility. The facility will therefore consist of an operational staff at Unit level to take care
of day to day operations and maintenance of the facility. While some other critical functions
such as Marketing, Administration, and Finance and overall strategic oversight will be handled
by the top level of the hierarchy i.e. the Plant Head who shall also be in charges of the entire
plant operations and supervision of the members down the line through indirect reporting.

 Production and technical head

 Accountant
 Supervisor
 Sales Representative

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 ADVANTAGES & TYPES OF MILLET

1. Creating the Millet Food Concept and Messaging

2. Creating a demand pull in customers

Viral Campaign to create a buzz around millets through social media, mass media and reality
shows and ambassadors

 Help in weight loss

 Gluten free
 Beneficial in detoxifying body
 Lower bad cholesterol level
 Prevents onset of breast cancer
 Helps to prevent type-2 diabetes
 Effective in reducing BP
 Helps to protect against heart diseases
 Aids in respiratory problems
 Optimize liver, kidney and immune system health
 Eliminates excess gas, bloating

There is an ample demand to millet products and foods in urban and semi urban places. The
demand for millet products and millet food courts is growing drastically in Telugu States.

We manufacture 4 types of packaged, quality dehulled millet products

 Kodo Millet
 Barnyard Millet
 Little Millet
 Foxtail Millet

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 MACHINERY

DESTONER CUM GRADER CUM ASPIRATOR

S.No Description Details

1 Model DGA S3500 / S1500

2 Type Continuous Type

3 Over all dimension Length x Width x Height = 3600mm x 1080mm x 1780mm

4 Capacity 500 kg/hr
Destoner is used for removing the stones, Aspirator is used for
5 Purpose removing light weighted impurities and grader to separate the
cleaned grains based on size.
6 Power Requirement 2HP and 1HP - 3ø / 1ø Electric Motor

7 Material Mild Steel

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 MILLET DEHULLER - DOUBLE STAGE

S.No Description Details

1 Model MD 3300CD

2 Type Continuous Type

3 Over all dimension Length x Width x Height = 1240mm x 1170mm x 2040mm

4 Capacity 300 kg/hr
Removing the husk of little, kodo, barnyard, foxtail and proso
5 Purpose
millets
6 Power Requirement 7.5HP - 3ø Electric Motor

7 Material Mild Steel

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 MILLET DEHUSKER

S.No Description Details

1 Model MD 3350AMS

2 Type Continuous Type

3 Over all dimension Length x Width x Height = 1900mmx 610mm x 1830mm
4 Capacity 350 kg/hr
Removing the husk of Major Millets / Softening the hull of
5 Purpose
Minor Millets
6 Power Requirement 15HP - 3ø Electric Motor

7 Material Mild Steel

DESTONER CUM ASPIRATOR CUM GRADER

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S.No Description Details
1 Model DGA B31T

2 Type Continuous Type

3 Over all dimension Length x Width x Height = 4200mm x 1220mm x 2100mm

4 Capacity 1 T/hr
Destoner is used for removing the stones, Aspirator is used for
5 Purpose removing light weighted impurities and grader to separate the grins
based on its size.
6 Power Requirement 5HP and 0.5HP - 3ø Electric Motor
7 Material Mild Steel

LAND & BUILDING

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METHODOLOGY FOR ESTIMATING DEMAND AND SUPPLY

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Indian food traders understand the meaning of healthy foods and sincerely cashing in on the
growing trend of usage of millet by urban consumers who increasingly prefer small millets.
Besides scarce supplies, the traders’ rising interest has led to an increase in the price of some
varieties such as foxtail millet and brown top millet over the past couple of months.

While prices of the brown top millet, considered to be rich in fibre, have doubled to 260-300 a
kg since November, that of foxtail millet have risen by over 40 per cent to Rs.70-100 in the
retail segment.

There is a sudden spurt in demand from Telangana, mainly Hyderabad, for the brown top
millet, which has resulted in a price spike. As initially only 30-35 quintals of brown top millet
was sent to Hyderabad a year. Now, since December, same quantities are being sent on a
monthly basis. Also there is suddenly a spike in traders’ interest. They are starting to aggregate
and have sort of started dominating the industry.

With millets catching the fancy of traders and setting off a speculative trend in prices, the
processed and convenience food makers are forced to look at other States beyond Karnataka,
Telangana and Tamil Nadu to source the nutri-cereals. However, with rising consumer we
entered in to these millets.

One of the reasons attributed for the rise in prices is growers holding back their produce
anticipating better prices. “People are not releasing their produce into the markets,” said Vilas
Tonapi, Director, Indian Institute of Millets Research. And the price rise of millet is due to the
growing interest in millets and its projected demand seems to be on the higher side than the
actual demand.

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23
PRODUCTION:

The Unit will Produce 8 tons of Millets in 3 to 4 days and dispatch for market, our market areas
is supermarkets, kirana shops, counter sales. We are mainly targeting the people who belong to
upper middle class, middle class and health conscious.

SALES DETAILS:

Particulars Quantity Per Month Price Per Unit Total Per Month
500 gms 6000 50 300000
1 kg 4000 100 400000
TOTAL 10000 150 700000

RAW MATERIAL:

1. Rice
2. Black Gram
3. Lentil Dhal
4. Salt, Sodium Bicarbonate citric acid, Rasins, Dry spices

5. Packing material to be packed

S.NO Millets Per day Per Month Per year

1 kg = 60 250 kg 250*28 = 7000 7000*12 = 84000
1 kg Cost = 60 250*60 = 15000 7000*60 = 420000 84000*60 = 5040000
Total 420000 5040000

SUPPLIERS DETAILS:

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 1. Vishra Agro Sales
(No. 59-32A, Krishnamacheri Road, Fathima Nagar, Virudhunagar-626001, Tamil Nadu, India)

Since 2018, "Vishra Agro Sales" is engrossed in this business of Manufacturing and trading the

supreme quality spectrum of Destoner Machine, Food Processing Machine and many more. Our
company is a Sole Proprietorship (Individual) entity, which has settled at Fathima Nagar,
Virudhunagar, Tamil Nadu, from where all the business related activities are keenly monitored
by the skilled professionals. As our customers are one of the most essential elements for
expansion, we make sure to cater their every requirement with utmost diligence. By preserving
a client-centric approach towards client’s satisfaction, we are able to attain such a reliable
position in the market.

2. Vijaya Enterprises
(Flat No. 104, Subhash Nagar IDA, Opposite Shivashivani School Road, Jeedimetla,  
Hyderabad-500055, Telangana, India)

The foundation stone of SREE DELTA PACKING MACHINES was laid in the year 1996 at
Hyderabad, Andhra Pradesh. Enriched with vast experience, our organization is a sole
proprietorship firm engaged in manufacturing and supplying various types of  Powders &
Granules Packing Machines, Liquid Filling Machines, Paste Filling Machines, Oil Filling
Machines, Ice Candy Machines, Milk/Butter Milk Packing Machines, Band Sealing
Machines, Destoners and many more.  These products are fabricated using high-grade
components, in adherence with predefined industrial standards at our state-of-the-art
manufacturing facility. Moreover, our qualitative machines are highly acknowledged for their
robustness, high tensile strength, durability, consistent performance and purpose specific
construction. Additionally, we offer machines in varied dimensions and capacities .

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with an average yield of 852 kg/ha
of grain and 2.5 t/ha of stover
yield in Triennium Ending (TE)
2008. Given substantial economic
importance of pearl millet as a
mainstay for small and marginal
farmers in this region, the paper
tries to examine demand and
supply balance of pearl millet
grain
and fodder by 2020 in western
India comprising Rajasthan,
Gujarat and Haryana as shown in
the

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map. The information on different
uses of pearl millet grain and on
demand and supply balance
of grain and fodder would be
useful to crop scientists to target
their research effort for the
region.
Changing pattern of food
consumption
The decline in consumption of
coarse cereals is due to changing
food habits, more time required
to process the pearl millet to
prepare food, keepin

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