Beaten Rice

Uploaded on : June 2010

Product and its applications

Beaten rice is popularly known as 'Chira" in Eastern and North Eastern States and as 'Chirva' in northern parts or as 'Poha' in M.P and Maharashtra. It is a staple breakfast diet specially in rural and semi urban regions. It is prepared from rice and is a low cost wholesome food with good nutritional value. It can be consumed in different ways by soaking raw in water, fried, with curd or milk and after cooking the soaked one. Its preparation can be made at short notice and is therefore popular convenient food item. Beaten rice or Chira is made from paddy and is popular in all parts of the country. People of all age groups and from different region relish it and thus it is a mass consumption item. It is used in making snacks and mixtures, in road side eateries, in dhabas, Hostels etc. The process of manufacture is simple and know how is easily available. Compliance with PFA Act for such a unit is essential.

Industry Profile and Market Assessment

It is basically a rural industry dependent on availability of paddy and its market is also rural and semi urban. Thus the market is restricted to local areas. It is a product of mass consumption particularly in rural and semi urban areas. It is a cheap and affordable food item. In rural areas it is sometimes considered as a main diet, otherwise it is generally consumed as a breakfast item.

Manufacturing Process & Know How

The process of manufacturing to remove impurities and then soaked in hot water for 30-40 minutes. The soaked paddy is dried and roasted to make flakes. The flakes are passed through sieves to remove uneven and unwanted material and to segregate flakes of even size. Finally they are packed. During this process the average yield of even sizes flakes is around 80%, 10% is the in process waste and 10% is is the bran which has a separate market.

Know how is available with Central Government research Laboratories. The machinery is all indigenously available.

The production capacity envisaged is 500 tonnes per year in 2 shifts and 300 days working.

Plant and Machinery

The main plant and machinery required comprise

• Mill with accessories and electrical (250kg cap.) - 2 nos.
• Roaster electrical
• Husk fired furnace.
• Paddy soaking tanks. - 4 nos.
• Sieves - 4 nos.
• Sealing machine and weighing scales.

The total cost of machinery is estimated to be Rs.2.45 lakhs.

The unit will also require miscellaneous assets such as furniture, fixtures, storage facilities etc. the total cost of these is estimated to be Rs. 40,000/-.

The total requirement of power shall be 20 HP

Raw material and Packing Material

The basic raw material for the unit is paddy of desired quality. It is grown abundantly in the country and is available through out the year. It is advisable that it should be adequately stocked or atleast there should be assured supply. The unit will also require polythene bags for packing the finished product. The total cost of raw material and packing material at full capacity is estimated to be Rs. 25.75 lakhs. The total requirement is estimated to be 500 tonnes at 100% capacity. The price of raw material is taken at Rs. 5000 per tonne. At 60% capacity in 1st year the cost works out to Rs15.00 lakhs and that of packing material Rs.0.45 lakhs.

Land and Building

For smooth operation of the unit, it will require a built up area of 125 sq. mts. The total cost of land and building is estimate at Rs. 4.00 lakhs.

Manpower

For smooth functioning of the unit the requirement of man power is expected to be around 5 persons.

Sales person	self
Skilled Workers	2
Semi skilled workers	2
Helpers	1.
The annual salary bill is estimated to be around	Rs.1.58 lakhs

Sales Revenue: (100% capacity)

Selling price varies depending on quality considering an average selling price of Rs.10000/- per Ton and that of rice bran Rs 4000/- per tonne the annual income at installed capacity is Rs 42.00 lakhs.

Cost of Project

Particulars	Rs. lakhs
Land & Building	4.00
Plant & Machinery	2.45
Other assets	0.40
Contingencies & pre-expenses	0.95
Margin money	1.35
Total	9.15

Means of Finance

Promoters Contribution	2.90
Term Loan	6.25
Total	9.15

Profitability:(60%capacity)

Sales	25.20 (Rs. lakhs)
Raw material	15.45
Salary	1.58
Utilities	0.36
Repairs & Maintenance	0.18
Stores & Spares	0.30
Selling & Admn expenses	3.45
Depreciation	0.88
Interest on T.L	0.70
Interest on W.C	0.42
Cost of production	23.32
Profit	1.88

Requirement of Working Capital

		Margin	W.C	Margin Money
Raw material	1 month	30%	1.30	0.40
Stock of finished goods	15 days	25%	0.75	0.20
Working expenses	1 month	100%	0.25	0.25
Sale on credit	1 month	25%	2.10	0.50
Margin money for W.C				1.35

Break Even point

45%

Machinery Suppliers

• M/S Indopol Food Processing Machinery Sector 27, Faridabad.
• M/s Sifter International Sector 6, Faridabad.
• M/S Industrial Equipment Guwahati

Contact for more information:

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com