PROJECT REPORT

FOR SETTING UP OF A FLOUR MILL

“ANAND AGRO”

AT

Survey No. 59, New 104, Gram Bilehari, Tehsil

Narsinghgarh, Madhya Pradesh

BY

MR. ANAND AGRAWAL

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 PROJECT AT GLANCE

NAME ANAND AGRO

OFFICE Bus Stand, Main Road, Kurawar Mandi, Distt.-
Rajgarh, Madhya Pradesh.
PROPOSED SITE Survey No. 59, New 104, Gram Bilehari, Tehsil
Narsinghgarh, Madhya Pradesh.
CONSTITUTION Proprietorship
: Partnership
NAME OF PROPERIETOR Shri Anand Agrawal.
:
NATURE OF INDUSTRY Manufacturing Sector
: Own & run Hospital
TOTAL COST OF THE
PROJECT
: Rs 300. Lacs

COST OF PROJECT (RS IN LACS)

PARTICULARS AMOUNT
Cost Of Construction 55.00
Plant & Machinery 30.00
Working Capital 12.00
Pre-Operative Expenses 1.28
TOTAL 98.28
MEANS OF FINANCE
PARTICULARS AMOUNT
Promoter’s Contribution 10.28
Term Loan 64.00
Working Capital Loan 12.00
Margin Money Grant by MP 12.00
Govt.
TOTAL 98.28
Debt Equity Ratio 3.41
Promoter’s Contribution 22.67%

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 INDEX

PARA PARTICULARS PAGE NO.

A INTRODUCTION 4

B ABOUT THE PROPERIETORSHIP 4

FIRM

C ABOUT THE PROMOTER 4

D ABOUT THE LOCATION 4

E ABOUT THE INDUSTRY 5, 6

F ABOUT THE PROJECT 6,7

G IMPLEMENTATION SCHEDULE 7

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A) INTRODUCTION

Wheat Flour of good quality are a need of every home. It is done by Mr. Anand
Agrawal from his wide experience in the field. In fast going world every one need wheat
flour with best taste and quality. This will help everyone’s fast moving life.

Whole wheat flour is used in making Chapaties, Puries, Parotha and other roasted
cereal based products. Wheat flour or Maida is a basic raw material for making Bread,
Biscuits Cakes and other bakery products. Sooji / Rava is used in many sweetmeat
products. Bran separated on milling is used as cattle feed. The products sold under
brand names are very few. The concept for branded cereal flour products is now
increasing. The big giants like Hindustan Lever, NEPC Agro, Nirma etc. have jumped in
to this lucrative industry.

B) ABOUT THE PROPERIETORSIP FIRM

Firm will formed in the name and title of “ANAND AGRO”.

Our objective is to supply best quality of wheat flour in local market,

Maharashtra, Andhra Pradesh & other places as well.

Details of Proprietor :

S.No. Name of Proprietor Aged

1 Shri Anand Agrawal S/o Shri Satish Agrawal 25 years

C) ABOUT THE PROMOTERS

Shri Anand Agrawal aged 25 years is a having experience of 7 years. He has

knowledge and experience in this field of Poultry Farm & also he is working as a grain
merchant . So from his experience, he will establish the wheat plant , process the wheat
and make the wheat flour of desired quality under his supervision .

D) ABOUT THE LOCATION:

The firm will start its working after construction of the building at leasehold land aquired
from Mr.Satish Agrawal which is situated at Survey No. 59, New 104, Gram
Bilehari, Tehsil Narsinghgarh, Madhya Pradesh.

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E) ABOUT THE INDUSTRY

The food processing sector is critical to India’s development, for it establishes a vital
linkage and synergy between the two pillars of the economy -Industry and Agriculture.
India is the world’s second largest producer of food and holds the potential to acquire
the numerous uno status with sustained efforts. The enormous growth potential of this
sector can be understood from the fact that food production in the country is expected to
double in the next 10 years, while the consumption of value-added food products will
also correspondingly grow. The growth of this industry will bring immense benefits to the
economy, raising agricultural yields, enhancing productivity, creating employment and
raising life-standards of a large number of people across the country, especially those in
rural areas.

After receiving lukewarm response from investors for six food parks, the Madhya
Pradesh government has planned to offer more sops to food processing industries in
the forthcoming industry policy.

“The definition of mega project is proposed to be changed now. Any investment of Rs 25

crore now will be considered mega project. The industries will be given land on
concession basis, waived of electricity duty and diversion tax etc. The Food Processing
Policy, 2008, has also proposed to consider Rs 5 crore investments in herbal, milk units
etc., as mega project,” said a government insider.

Any food processing venture of Rs 5 crore to Rs 25 crore will be offered 5 acres on

concessional rates, Rs 25-50 crore will be offered 10 acres, Rs 50-75 crore will be
allotted 15 acres and those who will invest more than 100 crore will be offered a
maximum of 25 acres of land.

The draft (available with Business Standard), which is yet to be finalised said, “Those
units that will come up at single location and will employ 1,000 direct employment will
also be considered under mega project category irrespective of investment.”

“Such units will be offered package of sops. They will be offered land on 25 per cent of
the premium, the size of land area will be decided on employment generated by them,”
said the source.

A unit that will generate direct employment for 1,500 people will be given 10 acres on 25
per cent of the premium, 20 acres for 2,000 jobs, and maximum 25 acres for 2,500 jobs.

“The apex committee on investment will decide for the units that will generate 2,500 or
more jobs on case-to-case basis,” the source added.

The new policy is also likely to offer 50 per cent of the investment on roads, electricity
and water as an incentive to industrial ventures but it will not exceed Rs 1 crore.

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“This facility is proposed to be made available in the periphery of 10 km of those
industrial areas where land and buildings are available for allotment,” the source
clarified.

The central government-funded six different locations failed to attract investment and
those who proposed to invest in food processing sector withdrew their proposals in
absence of basic facilities and sops.

F) ABOUT THE PROJECT

COST OF PROJECT & MEANS OF FINANCE :

Amt in
PARTICULARS Lacs

Cost of Construction 55.00

Cost of Plant &

Machineries 30.00

Working Capital 12.00

Pre-Operative Expenses 1.28

TOTAL 98.28

MEANS OF FINANCE

Amt in
PARTICULARS Lacs

Promoter's Contribution 10.28

Margin Money Grant by MP Govt. 12.00

Term Loan from Bank 64.00

Working Capital Loan 12.00

TOTAL 98.28

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PLANT & MACHINERY: The Total Cost of Plant & Machinery comes to Rs. 30.00
Lacs.

The order will be placed when the loan will be sanctioned & delivery will be
received in that month itself. The testing & commissioning of Equipment will also be
done in the month itself.

PRE-OPERATIVE EXPENSES: Contingencies are taken at @ 1.5% of Cost of

Construction and Plant & Machinery i.e. Rs. 1.28 Lacs.

WORKING CAPITAL: The total working capital required is sum of all the expenses. It
amounts to Rs. 13.64 Lacs. The margin for working capital is 15% of Rs. 2.06 Lacs
i.e. 15% of sum expenses. So Working Capital amounts to Rs.11.68 Lacs.

G) IMPLEMENTATION SCHEDULE:
S.NO. PARTICULARS PERIOD IN MONTHS
1. Acquisition of Land Completed
2. Site Development November 2016
3. Financial Tie Up June – 2016
4. Arrangement of Power October - 2016
5 Placement of Order Aug/ Sept – 2016
6 Delivery at Site October – 2016
7 Installation of Equipments October – 2016
8 Testing & Commission of Equipments October – 2016
9 Personal recruitment for project implementation October/ Nov – 2016
10 Commercial Operation December – 2016

Our Request: -

Looking to be the adequacy of inbuilt security of the project & good Market
reputation of the Promoters we request for sanctioning the proposed Term Loan
of Rs. 64.00 Lacs & ODIP Limit of Rs. 12.00 Lacs.