Profile No.
: 182 NIC Code: 10612
MINI RICE MILL
1. INTRODUCTION:
India is the second largest producer of rice in the world. The major portion of the paddy is
being processed through hullers. The hullers are usually low capacity mills. In these hullers,
both shelling and polishing operations are carried out simultaneously. Hence, there is no
control on the polishing of rice, bran and higher breakage of rice occurs. To overcome all
these a mini rice mill was designed to meet the needs of the villagers and a substitute for a
huller mill, to get polished rice, rice bran and paddy husk. Paddy in its raw form cannot be
consumed by human beings. Therefore, it needs to be suitably processed for obtaining rice.
Basically, rice milling is the process that helps in removal of hulls and bran’s from paddy
grains to produce polished rice. If you live in a highly paddy producing area, you can
establish a rice mill plant of your [Link] improved rice mills have a better husk and rice
bran aspiration system. The same prevents mixing of finely broken with rice bran. Therefore,
the quality of rice bran obtained is better. First of all, you must figure out the requirement of
the area. Generally, it broadly depends on two aspects. Whether the unit will be using a
parboiling unit for pre-treatment of paddy before the commencement of milling operation or
it will be directly milling raw paddy.
2. PRODUCT & ITS APPLICATION:
Rice is the kernel part of paddy and is obtained by removal of the paddy husk and thin layer
of bran. Rice milling is the process of removal of these and then polishing it. The whole
process has to be accomplished with care to avoid breakage of rice and improve recovery.
The rice again is available in the husk, market in two varieties- Raw and parboiled. The raw
rice is obtained by simply milling the raw paddy, while parboiled variety is the one in which
the paddy is first partly boiled and dried before milling. Par boiled rice is preferred in some
parts of the country such as Assam, West Bengal, Orissa, some parts of Bihar etc. The
process of milling for both is same except the boiling part of paddy. The milling process
provides whole rice as the main product and Husk, Bran and Broken rice as Bye products.
Husk is sold in the market as a fuel, Bran for extraction of Oil and broken rice is consumed
as a cheaper variety of rice.
3. DESIRED QUALIFICATIONS FOR PROMOTER:
Anyone can start this project. There is no special requirement for promoter, as this is an old
traditional project. However, adoption of new machineries is the demand of present process.
4. INDUSTRY LOOKOUT AND TRENDS
India is the second largest rice producer in the world after China, with 21% of the global
production share. The rice production has increased by 3.5 times in the last 60 years. The
country’s productivity is higher than Thailand and Pakistan at 2.2tons/ha. Major rice
producing states in India are West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Tamil
Nadu, Odisha, and Bihar. India has been the top exporter in global rice trade, accounting for
25% of the export in the last four years. Indian rice caters to the Middle East and Africa for
non-Basmati, and the EU and the US for Basmati variety.
The drought-affected crop during the 2014-15 crop year has put a crunch on the Indian rice
market. However, a better monsoon forecast, government intervention, and better farming
practices are expected to result in higher yield despite lower crop acreage. Overall, the
sentiment for the global rice market is moderate in terms of market demand and production
for the next five years. The country’s rice market is competitively positioned, as the pricing
of the rice crop is cheaper than any other country, except Pakistan. India’s MSP of non-
Basmati paddy is around USD 224/MT.
Climatic conditions are affecting the rice production in the major producing regions of India.
Levy procurement by state governments has enhanced the market availability of the crop in
the domestic market. As a major global development, Iran has lifted the ban on import of
Basmati from India. This development would result in an increase in Basmati rice exports to
Iran, the world's largest importer of aromatic rice. Indonesia has also decided to open its
market to Indian rice, which would further help India to diversify its export reach to the
Indonesian market. Amid higher demand from the African and Middle Eastern countries,
India is expected to emerge as the largest exporter of rice, both for basmati and non-
basmati crops.
Surplus rice stockpiles and improved methods of production have helped India position itself
competitively in the global rice trade market. Several medium-to-small sized private
companies from the open market are undertaking the export of rice in India.
5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:
Rice being the staple food of majority population, no problem is envisaged in marketing.
Besides, the mill can be utilised as a service unit for custom milling. It also noticed the tribal
are going for long distance to convert paddy to rice for domestic consumption. Thus, there
exists demand for non-trading rice mill in some important centres. Rice is an essential food
for the population of India. India is a large market with a widening middle-income group and
an increasing number of double-income households. It holds great potential for the
packaged rice segment. The by-product of such Mills, Rice bran, could find great demand as
raw material among solvent Extraction [Link] leads globally in the production and
export of Basmati rice. The country has exported 37,02,260.12 MT of Basmati Rice to the
world for the worth of Rs. 27,597.87 crores during the year 2014-15. Major export
destinations are Saudi Arabia, Iran, United Arab Emirates, Iraq and Kuwait. Rice mill plant is
the largest agro-processing industry of the country. Establishing rice mill plant is a profitable
business in India. Rice is a staple food in most parts of the country particularly in South, East
and North Eastern States. It is also consumed on regular basis in Kashmir and not so
regularly in the Northern states of Punjab, Haryana and some parts of Uttar Pradesh. The
demand for any food product is always there particularly if it is a regular diet item like Rice
or wheat. It is an essential for survival. It is consumed by all the members of the population
may be either in fine costly variety by rich or the coarse cheap variety by the poor. The
demand for rice will always be there so long the humanity survives.
6. RAW MATERIAL REQUIREMENTS:
Rice is the most important staple food crop in India. It provides food for 65% of the
population in India. The crop occupies about 37 % of the total cropped area and 44%
(2001-02 position ) of the total production of food grains in India. West Bengal is the leading
producer of paddy in the country. It accounts for 16.39% of the total production, and the
other leading states are Uttar Pradesh (13.38%), Andhra Pradesh (12.24%), Punjab
(9.47%), Orissa (7.68%) and Tamil Nadu (7.38%); the remaining states account for 33.45%
of the production. Generally, 1.00 to 1.50 acre of land is required for establishing an
improved rice milling unit having an installed processing capacity of 2 MT/ hr. The total
power requirement will to the tune of 75 KW. However, the essential power requirement of
the unit is about 90 HP. Additionally, you have to arrange water for parboiling and domestic
consumption purpose. Therefore, you must ensure suitable arrangements for continuous
water supply of desired quality and quantity. The basic raw material for the unit is paddy
which is locally available.
7. MANUFACTURING PROCESS:
Rice milling unit operation includes several steps. Those are: Step 1 Pre-Cleaning: Removing
all impurities and unfilled grains from paddy Step 2 De-stoning: Separating small stones from
paddy Step 3 Parboiling: It helps to improve the nutritional quality by gelatinization of starch
inside the rice grain. It improves the milling recovery percent during deshelling and
polishing/whitening operation Step 4 Husking: Removing husk from paddy Step 5 Husk
Aspiration: Separating the husk from brown rice/ unhusked paddy Step 6 Paddy Separation:
Separating the unhusked paddy from brown rice Step 7 Whitening: Removing all or part of
the bran layer and germ of brown rice Step 8 Polishing: Improving the appearance of milled
rice by removing the remaining bran particles and by polishing the exterior of the milled
kernel Step 9 Length Grading: Separating small and large broken from head rice Step 10
Blending: Mixing head rice with predetermined amount of broken, as required by the
customer Step 11 Finally, weighing and bagging. This is the last step in rice mill plant
operation. Preparing the milled rice for transport to the customer. The process of rice milling
for retrieval of rice kernel is an age old one. Even today in villages' rice is de-husked from
paddy manually by women using wooden bars and wooden vessels. The paddy is constantly
subjected to slow soft hammering for removing the husk sheath and then the fine bran layer
is removed. The modern rice mill converts this manual process into a mechanized one using
mechanical devices. The process comprises cleaning of the paddy to remove stones, dust,
chaff etc. The cleaned lot is fed into the de-husker machine where with the help of rubber
rollers husk is separated. The Brown rice so obtained is then taken to huller where polishing
is done by mild friction created within the polishing chamber. The resulting polished rice and
bran are separated and collected. Recovery of edible rice is around 80%.
8. MANPOWER REQUIREMENT :
The enterprise requires 6 employees as detailed below:
Sr. No. Designation Salary Salary ₹ Number of Employees
Working Staff Per
Year-1 Year-2 Year-3 Year-4 Year-5
Annum
2 Operators 20000 12000 1 1 1 1 1
3 Helpers 12000 20000 2 2 2 2 2
32000 3 3 3 3 3
1 Fixed Staff:
2 Admin Manager 15000 15000 1 1 1 1 1
Office Boy 9000 9000 1 1 1 1 1
Sub-Total 24000 3 3 3 3 3
Total 56000 6 6 6 6 6
9. IMPLEMENTATION SCHEDULE:
The project can be implemented in 4 months’ time as detailed below:
Sr. No. Activity Time Required
1 Acquisition of premises (in months)
2.00
2 Construction (if applicable) 2.50
3 Procurement & installation of Plant & Machinery 2.50
4 Arrangement of Finance 1.00
5 Recruitment of required manpower 1.00
Total time required (some activities shall run concurrently) 4.00
10. COST OF PROJECT:
The project shall cost ₹18.40 lacs as detailed below:
Sr. No. Particulars ₹ in Lacs
1 Land 0.00
2 Building 0.00
3 Plant & Machinery 8.00
4 Furniture, other Misc Equipments 1.50
Other Assets including Preliminary / Pre-operative
5 0.80
expenses
6 Margin for Working Capital 8.10
Total 18.40
11. MEANS OF FINANCE:
The margin is considered at 25 % and bank finance at 75 %
B Particulars ₹ in Lacs
1 aPromoter's contribution 4.60
2 nBank Finance 13.80
kTotal 18.40
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12. WORKING CAPITAL CALCULATION:
The project requires working capital of ₹ 5.40 lacs as detailed below:
Sr. No. Particulars Gross Amt Margin % Margin Amt Bank Finance
1 Inventories 4.05 0.25 1.01 3.04
2 Receivables 2.03 0.25 0.51 1.52
3 Overheads 2.03 100% 2.03 0.00
4 Creditors - 0.00 0.00
Total 8.10 3.54 4.56
13. LIST OF MACHINERY REQUIRED:
Machines are: Raw paddy cleaner cum aspirator consisting of large aspiration of desired
suction width. It must be fitted with double fans with necessary damper controls. One rubber
roll paddy sheller Paddy Separator to separate unshelled paddy from deshelled paddy.
Blowers, husk and barn aspirators for aspiration of light particles. It also separates husks
from dehusked kernels and bran from milled rice. Cone type paddy polishers Rice grader/
aspirator for purification and grading of polished rice grains Bucket elevators for bulk
transport and conveyance. The average Rs 6.5 Lakh /10-20 tonnes per day
Specifications: Output: 950-1350 kg/hr Power: 17.95 kW Motor(1set) Weight of Machine:
1090 kg. Measurement: 2600x2560x2850
Value
Sr. No. Particulars UOM Qtty Rate (₹)
(₹ in Lacs)
Plant & Machinery / Equipments
a) Main Machinery
1 Semi Automatic Rice Mill NOS 1 6.50 6.50
2 Storage And Handling NOS 1 0.50 0.50
3 Cleaning And Sorting NOS 1 0.50 0.50
4 Testing, Packing Machine L.S. 1 0.25 0.25
5 Utility Equipments L.S. 1 0.25 0.25
Installation, Taxes And Transportation L.S. 0.50 0.50
Sub-Total 8.00
Furniture / Electrical Installations
a) Office Furniture LS 1 50000 0.00
b) Stores Cupboard LS 1 50,000 0.50
c) Computer & Printer LS 1 50000 0.50
Sub Total 1.50
Other Assets
a) Preliminary And Preoperative 0.80
Sub-Total Other Assets 0.80
Total 10.30
All the machines and equipments are available from local manufacturers. The entrepreneur
needs to ensure proper selection of product mix and proper type of machines and tooling to
have modern and flexible designs. It may be worthwhile to look at reconditioned imported
machines, dies and tooling. Some of the machinery and dies and tooling suppliers are listed
here below:
1. Fry-Tech Food Equipments Private Limited
S. No. 4, Raviraj Industrial Estate,
Bhikhubhai Mukhi Ka Kuwa Bharwadvash,
Ramol, Ahmedabad - 380024,
Gujarat, India
2. Hindustan Vibrotech Pvt. Ltd.
Office No. 2, Ground Floor,
Vrindavan Building, Vile Parle East,
Mumbai – 400057,
Maharashtra, India
3. Electrons cooling systems Pvt. Ltd.
S-27, SIDCO Industrial Estate
Kakkalur Industrial Estate
Tiruvallur – 602003,
Tamil Nadu, India
4. Springboard Enterprises India Ltd.
1st, 2nd & 3rd Floor,
Plot No. 7, 8 & 9,
Garg Shopping Mall,
Service Centre, Rohini Sector 2
New Delhi – 110085,
Delhi, India
5. Flour Tech Engineers Private Limited
Plot No. 182, Sector 24,
Faridabad - 121005,
Haryana, India
6. P Square Technologies
3, Swami Mahal,
Gurunanak Nagar,
Off. Shankarsheth Road Bhavani Peth,
Pune - 411002,
Maharashtra, India
7. Ricon Engineers
10 To 13, Bhagwati Estate,
Near Amraiwadi Torrent Power,
Behind Uttam Dairy,
Rakhial, Ahmedabad - 380023,
Gujarat, India
8. Kamdhenu Agro Machinery
Plot No. 6, Near Power House,
Wathoda Road Wathoda,
Nagpur - 440035,
Maharashtra, India
14. PROFITABILITY CALCULATIONS:
Sr.
Particulars UOM Year-1 Year-2 Year-3 Year-4 Year-5
No.
1 Capacity Utilization % 60% 70% 80% 90% 100%
2 Sales ₹. In Lacs 24.30 28.35 32.40 36.45 40.50
Raw Materials & Other
3 ₹. In Lacs 20.39 23.79 27.19 30.59 33.99
direct inputs
4 Gross Margin ₹. In Lacs 3.91 4.56 5.21 5.86 6.51
Overheads except
5 ₹. In Lacs 2.70 2.87 3.21 3.31 3.38
interest
6 Interest @ 10 % ₹. In Lacs 1.38 1.38 0.92 0.69 0.55
7 Depreciation @ 30 % ₹. In Lacs 2.40 1.68 1.22 0.96 0.72
8 Net Profit before tax ₹. In Lacs -2.58 -1.38 -0.15 0.90 1.86
The basis of profitability calculation:
This unit will have 600-750 tonnes/Annum capacity. The growth of selling capacity will be
increased 10% per year. (This is assumed by various analysis and study, it can be increased
according to the selling strategy.)
Energy Costs are considered at Rs 7 per Kwh and fuel cost is considered at Rs. 65 per litre.
The depreciation of plant is taken at 10-12 % and Interest costs are taken at 14 -15 %
depending on type of industry.
15. BREAKEVEN ANALYSIS:
The project shall reach cash break-even at 60.40. % of projected capacity
Sr. No. Particulars UOM Value
1 Sales at full capacity ₹. In Lacs 40.50
2 Variable costs ₹. In Lacs 33.99
3 Fixed costs incl. interest ₹. In Lacs 3.93
4 BEP = FC/(SR-VC) x 100 = % of capacity 60.40%
16. STATUTORY / GOVERNMENT APPROVALS
The Ministry of Food Processing Industries has been operating several plan schemes for the
development of processed food sector in the country during the 10th Plan. One of the
schemes relates to the Technology Up-gradation/ Establishment/ Modernization of food
processing industries.
The Indian food processing industry is regulated by several laws which govern the aspects of
sanitation, licensing and other necessary permits that are required to start up and run a food
business. The legislation that dealt with food safety in India was the Prevention of Food
Adulteration Act, 1954 (hereinafter referred to as "PFA"). The PFA had been in place for
over five decades and there was a need for change due to varied reasons which include the
changing requirements of our food industry. The act brought into force in place of the PFA is
the Food Safety and Standards Act, 2006 (hereinafter referred to as "FSSA") that overrides
all other food related laws.
FSSA initiates harmonization of India's food regulations as per international standards. It
establishes a new national regulatory body, the Food Safety and Standards Authority of India
(hereinafter referred to as "FSSAI"), to develop science based standards for food and to
regulate and monitor the manufacture, processing, storage, distribution, sale and import of
food so as to ensure the availability of safe and wholesome food for human consumption.
Entrepreneur may contact State Pollution Control Board where ever it is applicable.
All food imports will therefore be subject to the provisions of the FSSA and rules and regulations
which as notified by the Government on 5th of August 2011 will be applicable.
Key Regulations of FSSA
A. Packaging and Labelling
B. Signage and Customer Notices
C. Licensing Registration and Health and Sanitary Permits
17. BACKWARD AND FORWARD INTEGRATIONS
The objective of the scheme is to provide effective and seamless backward and forward
integration for processed food industry by plugging the gaps in supply chain in terms of
availability of raw material and linkages with the market. Under the scheme, financial
assistance is provided for setting up of primary processing centres/ collection centres at farm
gate and modern retail outlets at the front end along with connectivity through insulated/
refrigerated transport.
The Scheme is applicable to perishable horticulture and non-horticulture produce such as,
fruits, vegetables, dairy products, meat, poultry, fish, Ready to Cook Food Products, Honey,
Coconut, Spices, Mushroom, Retails Shops for Perishable Food Products etc. The Scheme
would enable linking of farmers to processors and the market for ensuring remunerative
prices for agri produce.
The scheme is implemented by agencies/ organizations such as Govt./ PSUs/ Joint Ventures/
NGOs/ Cooperatives/ SHGs / FPOs / Private Sector / individuals etc.
Backward Linkage:
Integrated Pack-house(s) (with mechanized sorting & grading line/ packing line/
waxing line/ staging cold rooms/cold storage, etc.)
Pre Cooling Unit(s)/ Chillers
Reefer boats
Machinery & equipment for minimal processing and/or value addition such as cutting,
dicing, slicing, pickling, drying, pulping, canning, waxing, etc.
Machinery & equipment for packing/ packaging.
Forward Linkage:
Retail chain of outlets including facilities such as frozen storage/ deep freezers/
refrigerated display cabinets/cold room/ chillers/ packing/ packaging, etc.
Distribution centre associated with the retail chain of outlets with facilities like cold
room/ cold storage/ ripening chamber.
18. TRAINING CENTERS AND COURSES
There are few specialised Institutes provide degree certification in Food Technology, few
most famous and authenticate Institutions are as follows:
1. Indian Institute of Food Science & Technology,
Plot No.1, Near Maa-Baap ki Dargah,Opp to Nath Seeds,
Paithan Road Aurangabad
Aurangabad - 431005
Maharashtra, India
2. MIT College of Food Technology, Pune
[Link].140, Raj Baugh Educational Complex,
Pune Solapur Highway,
Loni Kalbhor, Pune – 412201
Maharashtra, India
3. CSIR - Central Food Technological Research Institute (CFTRI)
Cheluvamba Mansion, Opp. Railway Museum,
Devaraja Mohalla, CFTRI Campus, Kajjihundi, Mysuru
Karnataka – 570020
Udyamimitra portal ( link : [Link] ) can also be accessed for handholding
services viz. application filling / project report preparation, EDP, financial Training, Skill
Development, mentoring etc.
Entrepreneurship program helps to run business successfully is also available from Institutes
like Entrepreneurship Development Institute of India (EDII) and its affiliates all over India.
Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery manufacturers
have been taken from reliable sources, to the best of knowledge and contacts. However, no
responsibility is admitted, in case any inadvertent error or incorrectness is noticed
therein. Further the same have been given by way of information only and do not carry any
recommendation.
