Agro Seed Processing Plant
Project cost : 2 tonnes per hour (Paddy 26 tpd or wheat 35 tpd in 3 shifts) or 4,540 tpa.
Uploaded on : February 2009
Product and its applications
Cereal grains like paddy and wheat together constitute the main staple food in the country. Hence production of these crops ranks highest in quantity. The use of certified agricultural seeds ensures higher agricultural production. The certified seeds are produced and processed under Indian Seed Act 1996 (amended in 2002). These are sound, healthy and genetically pure with higher yields. The process consists of agricultural activity as well as processing activity under a licence from State Authority.
Market Potential
India has made phenomenal strides in production of food grains, yet there exists a vast scope for further improvement in productivity. Replacement of 10% seeds annually would ensure higher production. The farmers procure certified seeds from different suppliers. However supply is far short of the demand.. There is a tremendous scope for setting up seed processing units to meet the local demand and make the region self sufficient in food grain production.
Basis and Presumption
- The processing plant will work for 180 days per annum on 3 shifts basis.
- The unit can achieve its full capacity utilization during the 2nd year of operation.
- The wages for skilled workers are taken as per prevailing rates in this type of industry.
- Interest rate for total capital investment is calculated @ 12% per annum.
- The entrepreneur is expected to raise 20-25% of the capital as margin money.
- The unit would construct its own building as per Seed Certification Authority specifications.
- Costs of machinery and equipment are based on average prices of manufacturers.
Implementation Schedule
Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:
| Scheme preparation and approval | 01 month |
| SSI provisional registration | 1-2 months |
| Sanction of financial supports etc | 2-5 months |
| Installation of machinery and power connection | 6-8 months |
| Trial run and production | 01 month |
Technical Aspects
Location
Since the process consists of crop cultivation and processing activity, the plant should be located inside/near the farm wherein crop is cultivated. Availability of power, road connectivity and marketing links for supply of seed to various traders/users should be ensured.
Process of Manufacture
Agricultural activity
Quality Control and Standards
As per State Seed Certification requirements.
Pollution Control
Mushrooms are picked at button stage (cap. diameter 2-2.5 cm) by gentle hand twisting. The soil and portion carrying any microbial flora is then cut off/removed with the help of a sharp edge stainless steel knife/blade. The stalk length should preferably be kept 0.5-1 cm. long.
Energy Conservation
Only electricity is being used in the process.
Production Capacity
| Quantity | 2650 tpa paddy seed + 1890 tpa wheat seed 20 tpd |
| Installed capacity | 20 tpd |
| Optimum capacity utilization | 70% |
| Working days | 300/annum (processing activity 180 days) |
| Manpower | 28 |
| Utilities | |
| Motive Power | 15 kW |
| 15 kW | 01 kL/day |
Financial Aspects
Fixed Capital
Land & Building Amount (Rs. lakh)
| Land 10,000 m2 | 09.00 |
| Built up area 1,000 m2 | 30.00 |
| Total cost of Land and Building | 39.00 |
Machinery and Equipment
| Mechanical dryer, elevators-3, pre-cleaner, size grader, indented centrifugal cylinder, chemical treater, automatic dosing machine, conveyor belt, bag stitching machine, misc. equipment | 22.00 |
| Erection and electrification @ 10% of machinery cost | 2.20 |
| Office furniture & fixtures | 1.50 |
| Total | 25.70 |
Pre-operative Expenses
| Consultancy fee, project report, deposits with electricity department etc. | 1.30 |
| Total Fixed Capital (9.1.1 + 9.1.2 + 9.1.3) | 66.00 |
Recurring expenses per annum
Personnel
Designation |
No. |
Salary |
Total (Rs) |
| Factory manager | 1 | 10,000 | 1.20 |
| Supervisor & marketing staff | 2 | 6,000 | 1.44 |
| Office Assistant | 2 | 5,500 | 1.32 |
| Technician | 1 | 5,000 | 0.60 |
| Skilled workers | 4 | 3,500 | 1.68 |
| Unskilled workers (6 months) | 16 | 2,000 | 1.92 |
| Unskilled workers (Regular) | 2 | 2,500 | 0.60 |
| Perquisites @ 15% | |||
| 1.31 | |||
| Total | 28 | 10.07 |
Raw Material Including Packaging Materials
Particulars |
Qty(t) |
Rate/t (Rs.) |
Amount Rs. lakh |
| Paddy 26 tpd x 120 days | 3,120 | 8,850 | 276.12 |
| Wheat 35 tpd x 60 days | 2,100 | 10,600 | 222.60 |
| Gunny bags for paddy seed, cap. 12 kg | 2,21,000 | 5.00 | 011.05 |
| Gunny bags for wheat seed, cap. 40 kg | 47,250 | 10.25 | 004.85 |
| Fungicides, stitching, marking | LS | LS | 005.63 |
| Total | 520.25 |
Utilities
| Power | 4.30 |
Other Contingent Expenses |
Amount (Rs. lakh) |
| Repair and maintenance, building @5% | 1.50 |
| Repair and maintenance, machinery @10% | 2.42 |
| Repair and maintenance, furniture @20% | 0.30 |
| Consumables & spares! | |
| Transport & travel ! | |
| Publicity ! | 3.42 |
| Postage & stationery ! | 0.30 |
| Telephone ! | |
| Insurance | 0.66 |
| Total | 8.30 |
Total Recurring Expenditure |
Amount (Rs. lakh) |
| (9.2.1+9.2.2+9.2.3+9.2.4) | 542.92 |
Working Capital
| Recurring Expenditure for 2 months | Recurring Expenditure for 2 months |
Total Capital Investment |
Amount (Rs. lakh) |
| Fixed capital (Refer 9.1.4) | 66.00 |
| Working capital (Refer 9.3) | 90.50 |
| Total | 156.50 |
Financial Analysis
Cost of Production (per annum) |
Amount (Rs. lakh) |
| Recurring expenses (Refer 9.2.5) | 542.92 |
| Depreciation on building @5% | 1.50 |
| Depreciation on machinery @10% | 2.42 |
| Depreciation on furniture @20% | 0.30 |
| Interest on CapitalInvestment@12% | 18.86 |
| Total | 566.00 |
Sale Proceeds / Annual turnover
Item |
Qty (t) |
Rate/t (Rs.) |
Amount (Rs. lakh) |
| Paddy seeds in 12 kg bags | 2,650 | 14,600 | 386.90 |
| Wheat seeds in 40 kg bags | 1,890 | 15,200 | 287.28 |
| Total | 674.18 |
Net Profit per year
Sales - Cost of production 674.18 - 566.00 108.18 lakh |
Net Profit Ratio
Net Profit ×100 Sales 108.18 x 100 = 674.18 |
Rate of Return on Investment
Net Profit ×100 Capital Investment Capital Investment = 69.12 % |
Annual Fixed Cost |
Amount (Rs. Lakh) |
| All depreciation | 4.22 |
| Interest | 18.86 |
| 40% of salary, wages, utility, contingency | 9.07 |
| Insurance | 0.66 |
| Total | Total |
Break even Point
Annual Fixed Cost x100 Annual Fixed Cost + Profit 32.81 x 100 32.81 + 108.18 23% |
Addresses of Machinery and Equipment Suppliers
- Rohilkhand Eng. Works
Izzatnagar,
Bareilly (U.P.) - Batliboi Engineers (Bangalore) Pvt. Ltd.
99/2&3, N.R.Road
Bangalore - 560 002
Narene Tulaman Manufacturers Pvt. Ltd.
Balanagar
Hyderabad - 500 037 - M/s. Kodesia Eng Works,
Izzatnagar
Bareilly - Shree Murugan Industries,
Plot No. 68/W, Hootagalli
Industrial Area, Balawadi Post
Mysore - 571186 - Nalanda Agro Works
Nalanda Nagar, Kurji
Patna - 800 010 - Mac-Well Engineering Works,
14, Kartar Compound, LBS Marg
Behind State Bank
Vikroli (West)
Mumbai - 400 079 - Septu (India) Pvt. Ltd.
12/7, Urban Estate,
Post Box No. 4
Gurgaon - 122 001 - Raylon Metal Works
Kondivitta Lane
Post Box 17426
J.B.Nagar, Andheri (E)
Mumbai - 400 059 - SSP (Pvt) Ltd.
13th Milestone, Mathura Road
Faridabad - 121003, Haryana
Grovers Pvt. Ltd.
223, Kaliandas Udyog Bhavan
Prabhadevi - Mumbai - 400 025
Macneill and Magor Ltd.
4, Mangoe Lane
Kolkata - 700 001
Other Special Features
A careful selection of product mix is necessary based on the local market demand and availability of raw materials. The facilities can also be utilised to manufacture quality seeds of carrot, radish, peas, spinach, coriander, okra, other vegetables and pulses for fuller utilisation of capacity.
Contact for more information
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com
