RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT …agriculture.rajasthan.gov.in/content/dam/agriculture... · 2019-07-20 · Atta Milling unit which comprises of a Cleaning machine,

RAJASTHAN AGRICULTURAL

COMPETITIVENESS PROJECT

Detailed Project Report on Aata Chakki

and Roller Flour Mill

Prepared by:

AGRI BUSINESS PROMOTION FACILITY

Rajasthan Agricultural Competitiveness Project 1

Contents

Page

Executive Summary ............................................................................................................................ 2

Chapter 1: Introduction-Wheat .......................................................................................................... 8

Chapter 2: Technology advances and circumstances in Wheat Flour Milling ........................... 21

Chapter 3: Production and processing hubs/ clusters in Rajasthan .......................................... 31

Chapter 4: Manufacturing process and technology benchmarking ............................................ 33

Chapter 5: Appropriate technology options .................................................................................. 48

Chapter 6: SWOT of technology ...................................................................................................... 60

Chapter 7: Indicative project profile for Rajasthan ....................................................................... 63

Chapter 8: Method of technology dissemination and adoption ................................................... 93

Reference ........................................................................................................................................... 95


Executive Summary

The development objective of Rajasthan Agriculture Competitiveness Project (RACP) is to sustainably

increase agriculture productivity and farmers’ incomes in several selected locations of Rajasthan. As a

part of this approach, several Farmer Producer Companies (FPCs) have been developed and supported

under the project. Each of these companies will have primary and/or secondary (value adding)

processing infrastructure (Farmer Common Services Centers (FCSCs)), services of which will be availed

by farmers of their cluster region. Broadly, these companies will aggregate produce of farmers,

process/value add and directly sell in bulk to processors/consumers. This, in turn, will enable farmers to

realize higher and better remuneration for their produce. In a nutshell, the envisaged FCSCs will have

micro or small scale milling/processing and packaging units to facilitate services to farmers.

Naturally, existing and upcoming agro and food processing units in the state play a highly important role

in the scheme of things, i.e. forward linkages in agriculture. Evidently, higher investments in such

agribusinesses will bolster development and sustainability of FPCs and farmers thereto. In line with the

approach, RACP, through its Agri-Business Promotion Facility (ABPF), aims at:

Promoting agribusiness investments in the state

And providing incubation facilities to foster innovation & entrepreneurship

The objective of this report is “scouting of technologies and suitable replicable models” in wheat flour

processing (both in terms of Atta Chakki and Roller Flour milling). Broadly, the report aims to provide

some insights, to prospective entrepreneurs and existing unit holders in the state - on technological gaps

identified in existing units, on several technological advances in the industry, on benchmarking

technology and efficiency vis-à-vis industry bests in other parts of the country and providing suitable

replicable models for micro, small and medium/large scale investors.

Notably, wheat flour production and demand has increased dramatically during the last decade due to

evidence supporting the benefits of whole grains in the diet, as well as diverse uses of products like

maida, suji and bran. However, there are unique challenges that accompany flour production, especially

related to cleaning, milling, packaging, testing and storage. The present thesis provides some important

suggestions on the adoption of new technologies to overcome such challenges.

The use of stylized wheat spike as a symbol of FAO highlights the importance of the crop and the same

is a major cereal crop after rice in India. The total estimated production of food grains in India during

the year 2000-2001 was 195.92 million tonnes and the share of wheat was 68.76 million tonnes i.e. about

35 per cent. The country has emerged as the second largest producer of wheat after China and accounts


for 12.06% of global production of wheat. Due to sustained efforts made by policy makers, agricultural

scientists, extension workers and receptive farmers, the production of wheat dramatically increased

manifold on account of adoption of modern production technology.

Currently, the state accounts for 7.49% of the total wheat production and 7.24% of total area under

wheat in India. Over 20 districts are producing wheat and 11 are major producers. Ganganagar,

Hanumangarh, Bharatpur, Kota, Alwar, Jaipur, Chittorgarh, Tonk, Sawai Madhopur, Udaipur and Pali

are important wheat producing districts of Rajasthan. The top five districts producing wheat in

Rajasthan are Ganganagar, Hanumangarh, Alwar, Baran and Bundi. Ganganagar ranks first (in

production), followed by Hanumangarh.

The composition of wheat has all nutrients that are considered essential for human consumption and

hence the same is the most preferred flour across the world. The global flour market is primarily

propelled by the rising consumption of flour and bakery products in various regions. The rapidly

growing demand for fast food products in restaurants, cafes, and food chains in various developing and

developed nations is bolstering the demand for flour milling. The rising demand for flour confections is

expected to boost the market, especially in developing regions. Furthermore, the burgeoning flour

milling industry in several emerging regions is anticipated to accentuate the market through the forecast

period.

Processing of Atta is highly unorganized sector in India. Traditionally, atta is mainly produced in the

Chakki (grinding stone) mill and it continues to be used till date. Roller flour mills are comparatively

organized than Atta millers. Tamil Nadu, Punjab and Gujarat have the highest number of roller flour

mills in the country.

The urban market dominates packaged wheat flour market in India and occupies more than 90% of the

total market where as due to penetration of packaged food in rural India, rural consumers’ willingness

towards the packaged wheat flour has risen to some extent.

ITC’s ‘Aashirvaad’ is the clear market leader among the national players in branded packaged wheat

flour market in India with occupying more than 35% market share where as several regional brands

(produced by flourmills serving region specific market) together occupy major 40% share of market.

Shakti Bhog with wider penetration holds almost 12% market share where as other national players such

as Pillsbury, Nature Fresh and Annapurna occupies below 10% market share.

Packaged Flour market here mirrors the National scenario in majority aspects. While there is segment of

consumers which still follows the traditional practice of carrying cleaned wheat to local chakkis to get

their desired fineness of fresh atta. Another segment which is grown at a fast pace comprises of mostly

urban population preferring packaged wheat flour. In this segment, largely, consumers prefer known

brands like Aashirwad aata, Shakti Bhog Atta, Patanjali Atta, Pillsbury Chakki Fresh Atta, and Nature

Fresh Sampoorna Chakki Atta.

A good number of local players have also been targeting this segment but as of now most of them

mainly rely on institutional supply (particularly for maida and suji) to companies like Britannia, Parle,

and other ingredient buyer industries. Some local players like Alwar Roller Flour Mills, Nav Durga

Roller Flour Mill, Jindal Prime food pvt. Ltd, Satguru food products, Laxmi roller flour mills pvt ltd, LM

industries, KGM Roller Flour Mill, Agarwal Roller Flour mill, etc have been targeting the institutional as


well as retail clientele in the region. Their advantage, in this context, is logistical benefit gained from

proximity to some major markets. Rajasthan has proximity to large consumer markets in the region (in

and around the NCR) that have a big share of India's food consumption. 8,380 sq km of Rajasthan falls

in the National Capital Region (NCR), which is around 24.5% of the total NCR. Rajasthan shares its

border with five major Indian states: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat.

Flour mill units in Rajasthan have to their advantage, access to this enormous market. There are number

of products that can be processed by Wheat:

a. Atta

b. Maida

c. Suji/Rawa

d. Bran

Scenario of flour mill industry in the traditional units can be summarized as below:

1. Inadequate storage facilities

2. Inadequate equipment and facilities for cleaning

3. Low recovery and thus low profit margins

4. Old technology, leading to quality aberrations in grinding and sifting

5. Cost of up-gradation is often high

6. Outdated and non-automatic technologies and engineering; also high power and labour costs

7. Even basic color sorter are not installed; hence unable to appropriately grade material into

acceptable and reject grades; also, absence of metal detector equipment too in some units.

Hence, high level of rejection, affecting yield and profit margins of firms.

8. Traditional machineries and automation at all levels of processing is fairly low (except in some

modern mills).

9. Packaging in most units is done manually; very few (largely roller flour mills) have ventured into

retail sizes.

Benchmarking the Chakki Atta and Flour manufacturing process in key clusters at Rajasthan

# Process Traditional method (especially in micro units)

Modern Method/s in more advanced units

1 Raw Material Storage

In own or other private godowns Galvanized Silo Storage System

2 Raw Material Cleaning (Pre-cleaning and Fine Cleaning)

Inadequate equipment and facility for pre-cleaning and fine cleaning

Pre-Cleaner (Drum Sieve)

Magnet Separator

Separator Classifier

Gravity Separator

De-Stoner

Scourer

Entoleter

Color Sorter

Intensive Dampener 3 Milling

Section Traditional chakkis and manual rolls; Traditional plansifters and purifiers

Modern Roller Mill (8 roll)

Modern Stone Chakki mill (cast iron disc or high quality stone)


Modern Plansifter

Modern Purifiers 4 Wholesale and

Retail Packaging

Manual Packaging methods; for retail packaging job work from service providers

Automatic Weighing and Bagging machine

Vertical Form Fill Seal machine

5 Testing and other support activities

Only basic testing in-house; outsourcing of various other tests

Digital and IR Moisture Meter, hot air oven, ashing oven/muffle furnace, kjeldhal apparatus, soxhlet apparatus, centrifuge, vortex stirrer, sedimentation shaker, NIR grain analyzer, Universal lab sifter, pH meter, precision weighing scales, glassware and chemicals, etc

6 Support Equipment, Engineering and Automation

Often, sub-standard quality support equipment, engineering and low level of automation

Based on size, capacity and milling engineering the support structure and equipment need to be installed; should be robust and shock absorbent.

The plant layout should present a smooth, orderly flow of raw materials or ingredients through each manufacturing phase on to the storage of the finished product.

Process optimization refers to operate plant optimally with economic performance in terms of productivity and yields. It also avoids human errors. Scada systems are now integral part of flour mill industry.

The report also outlines three project profiles that could be referred by entrepreneurs to select their

most suitable option. Broadly, one micro scale, one small scale and one medium scale investment option

has been showcased primarily to suit the investment capabilities of the entrepreneurs. Section 7.1, 7.2

and 7.3 of Chapter 7 individually showcase the financial feasibility of these projects.

a. Profile 1 highlights a micro scale model that can be pursued as guiding model by small farmers

or individual entrepreneurs, farmer groups, farmer producer association/companies. The

technology proposed for this segment involves Mini Semi-Automatic 1000 kg/hour capacity

Atta Milling unit which comprises of a Cleaning machine, Gravity Separator, Pulveriser

Machine, Flour Mill-20" Chakki, material handling equipments and tanks, aspiration system,

cabling and control panel, and packing machine. The total cost of the complete set of Main


P&M, on basis of some referred quotations of leading suppliers in the segment, is Rs. 22.50

Lakhs. This cost is inclusive of taxes, transportation, installation and commissioning charges.

b. Profile 2 showcases a small scale model, which can be pursued as guiding model by small scale

entrepreneurs, farmer producer association/companies. The technology proposed for this

segment involves Semi-Automatic 40 TPD Chakki Atta Milling unit which comprises of

Cleaning machines, atta plant section, complete support structure, storage tanks and material

handling equipments, aspiration system, cabling and control panels and bagging machine. The

total cost of the complete set of Main P&M, on basis of some referred quotations of leading

suppliers in the segment, is Rs. 85.38 Lakhs. The cost of Utilities (Weighbridge, RO Plant etc),

on basis of some referred quotations of leading suppliers, is Rs. 35.00 Lakhs. This is inclusive of

taxes, transportation, installation and commissioning charges. Hence, total cost of P&M is Rs.

120.38 Lakhs.

c. Profile 3 portrays a large scale model, which can be pursued as guiding model by some medium

and large scale entrepreneurs or institutions. The technology proposed for this segment

involves Fully Automatic 150 TPD- Roller Flour Mill & 30 TPD- Chakki Atta Plant. The main

plant and machinery include complete set of machines of the cleaning section, roller flour

milling section, chakki atta plant section, complete support structure, storage tanks and material

handling equipments, aspiration system, cabling and control panels, bagging machine,

pneumatics and automation system and lab equipments. The total cost of the complete set of

Main P&M, on basis of some referred quotations of leading suppliers in the segment, is Rs.

1100.00 Lakhs. The cost of Utilities (Electrical Substation, Weighbridge, RO Plant etc), on basis

of some referred quotations of leading suppliers, is Rs. 100.00 Lakhs. This is inclusive of taxes,

transportation, installation and commissioning charges. Hence, total cost of P&M is Rs. 1200

Lakhs.

RACP-ABPF shall undertake mix of some or several initiatives to disseminate the suggested

technologies and models, which may broadly include:

Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs

Facilitate technology benchmarking exposure visits within and outside state for prospective

entrepreneurs/groups, existing industry owners and BoDs of FPCs

Seminars and Workshops in association with Industry Associations, Technical Institutes and

R&D Institutions

Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and experts

Facilitate through consultancy and business development services

Dissemination of success stories of units facilitated by ABPF through appropriate media

Dissemination through web portals and mobile applications

The models and business plans suggested in this report are broadly generic in nature, however involve:

technology profile

civil works requirement

raw material sourcing and logistic costs for sourcing raw material

capacity utilization for different scenarios


realistic assessment of investment and working capital needs

possible sources of funding

financial analysis

The suggested models and business plans are for optimal capacities that can be fine-tuned to the scale,

investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs on statutory

clearances needed for operating the business, required licenses, ways of leveraging various government

schemes/subsidies and several other aspects for effective technology adoption. In order to increase the

scale and potential adoption, ABPF shall pursue some or mix of several initiatives, which may broadly

include:

Investor road shows

B2B Meets

Establishing Mentor Network

Mentor-Mentee Workshops

Facilitating Access to Finance

Creating a robust knowledge base

Preparation of business plans

Review of business plans for funding through RACP


Chapter 1: Introduction-Wheat

1.1. Introduction

Importance of wheat worldwide as main food can be understood by use of stylized wheat spike as a

symbol of FAO. Wheat is a major cereal in India after rice. The total estimated production of food

grains in India during the year 2000-2001 was 195.92 million tonnes and the share of wheat was 68.76

million tonnes i.e. about 35 per cent. India has emerged as the 2nd largest producer of wheat after China

and accounted for 12.06 per cent share of total world production of wheat. Due to sustained efforts

made by policy makers, agricultural scientists, extension workers and receptive farmers, the production

of wheat dramatically increased manifold on account of adoption of modern production technology.

Wheat kernel consists of four main parts – Seed coat (10 per cent of the kernel weight); aleurone layer (6

per cent); starchy middle, the endosperm (81 per cent) and the germ (3 per cent). Consumption of wheat

became popular in all the states of country due to greater flow of marketable surplus, spread of

knowledge that whole meal atta contains double the quantity of proteins and five times the quantity of

calcium compared to consumption of equal quantity of rice. Another factor which has been responsible

for widespread consumption of wheat is its gluten content, making it most versatile cereal with

multifarious usage. It is responsible for rheological features of dough. It absorbs and retains moisture,

traps the gases in dough and improves the crust color.

Although a number of species of wheat are recognized in the world, only three species of wheat

namely; Triticum aestivum (Bread wheat), T. durum (Macaroni wheat) and T. dicoccum (Emmer wheat)

are commercially cultivated in India.1 Wheat is globally the leading source of carbohydrate in human

food, with content of about 71%, apart from this, it also contains 13% proteins which is very high as

considered to cereals and hence is also a major source of proteins around the world.

The different products of wheat commonly used are Atta (whole meal), which is rich in Vitamin-A and

Vitamin-B, whereas Maida (white flour) contains lesser Vitamin-B and protein contents. Suji (coarse

semolina), Rawa (fine semolina), Vermicelli, noodles are other products in common use.

1.2. Global scenario

Wheat is the third largest cereal produced in the world and its output has increased from about 600

million tonnes in early 2000s to about 700 million tonnes in 2013-14. The major wheat producing

countries in the world are China, India, USA and Russia which account for about 45% of the total world

1 http://www.commoditiescontrol.com/eagritrader/staticpages/index.php?id=72


wheat output. Although India has the largest area under wheat cultivation but it is the second largest

producer to China due to lower yields in the world.

Global wheat Production in 2016-17 was 735.59 million tons. This year's 748.24 estimated million tons

could represent an increase of 12.65 million tons or a 1.72% increase in wheat production around the

globe.2

Figure 1: Major Wheat Producing Countries

**Figures in million tons

European Union, a group of Euro countries, is the top producer, second largest consumer and exporter.

However, in terms of individual countries, China is the largest consumer followed by India, Russia and

U.S. In terms of exports, U.S. has always been the top exporter of wheat contributing nearly 1/5th of the

total world’s exports. The exports from Australia have also been rising steadily from the late 2000s.

The list below highlights the fact that the largest producers of wheat are also the largest consumers

indicating that wheat production is consumed at the point of production. The same is captured in the

list below. The export market of wheat is getting competitive with the new entrants like India.3.

Table 1 Top 5 producers, consumers and traders of wheat in the world 2013-14

Cultivators % Producer % Consumers % Exporters

% Importers %

India 13 EU 20 China 18 US 19 Egypt 7

EU 12 China 17 EU 17 EU 16 China 6

China 11 India 13 India 13 Canada 15 Brazil 5

Russia 11 US 8 Russia 5 Australia 12 Indonesia 5

US 8 Russia 7 US 5 Russia 10 Algeria 4 Source: USDA

2 https://www.worldwheatproduction.com/ 3 http://univisionin.blogspot.in/2012/06/world-scenario-of-wheat.html


Major Exporters and Importers of Wheat

Figure 2: Major exporting countries of Wheat

Source: Comtrade


Canada was the leading wheat exporting country in the world followed by US and Russia in

2015-16 as presented in the figure 2 above.

India’s share in global exports was around 0.40 percent in the year 2015-16.

Figure 3: Major Importing Countries

Source: Comtrade


As presented in figure 3, Algeria was the largest importing country in the world followed by

Italy, Indonesia and Japan in the year 2015-16.


FAO’s first forecast of global wheat production in 2017 stands at 744.5 million tonnes,

indicating a 1.8 percent decline from the 2016 record level but still above the last five-year

average. The year-on-year decline would mostly reflect the projected decrease in plantings in

North America, and a return to normal production levels in Australia following an exceptionally

high output this season.4

The consumption of wheat in the world is increasing significantly but is successfully kept satisfied with

an equally high production figures.

Table 2: Trends in world wheat demand and supply (million tons)

Year Production Imports Exports Consumption Stocks

2010-11 651 132 133 653 198

2011-12 696 149 158 688 197

2012-13 658 144 137 686 176

2013-14 714 157 166 694 186

2014-15P 720 153 155 708 196

Source: USDA

1.3. Indian scenario

India stands first in area and second in production next to China in the world. India’s share in world

wheat area is about 12.40%, whereas it occupies 11.77 % share in the total world wheat production.

India’s wheat production has increased in last 10 years at CAGR of 2.46%. The area under wheat

cultivation has also increased in last 10 years at CAGR of 0.77 percent.5 There is hardly any scope for

expansion of area under Wheat. The main emphasis would be on increasing the productivity of Wheat

by adopting the improved cultivation practices. 6 Nearly 85% of total wheat production comes from five

states in 2013-14. Uttar Pradesh is the largest producer of wheat contributing for about 32%. Punjab

accounting for about 18% followed by Haryana for about 13%, Madhya Pradesh for about 12% and

Rajasthan for about 10% of the total wheat output in the country.7

The main varieties of wheat grown in India are - VL-832,VL-804, HS-365, HS-240 , HD2687,WH-147,

WH-542, PBW-343, WH-896(d), PDW-233(d), UP-2338, PBW-502, Shresth (HD 2687), Aditya (HD

2781), HW-2044, HW-1085, NP-200(di), HW-741.8

Figure 4: State wise Share in Production

4 http://www.fao.org/worldfoodsituation/csdb/en/ 5 http://agricoop.nic.in/sites/default/files/Wheat.pdf 6 http://farmer.gov.in/imagedefault/pestanddiseasescrops/wheat.pdf 7 www.commoditiescontrol.com/eagritrader/staticpages/index.php?id=72 8 http://apeda.gov.in/apedawebsite/SubHead_Products/Wheat.htm


Source: Ministry of Agriculture, GoI

India’s wheat production in the last two years has declined below the rising trend line due to adverse

weather conditions such as the untimely rains and hailstorms during the harvest in the year 2015/16 and

also due to early moisture and temperature stress in the year 2016/17. The wheat area peaked in most

wheat growing states by the year 2014/15 and the crop is likely to further lose the ground to other high

value crops (horticultural and plantation crops) and non-agricultural use in future. Irrigated agricultural

lands under rice-wheat cropping system are the prime target for high-value agriculture and to satisfy

expanding urbanization and industrialization needs. The wheat growing areas in the northwest India are

also facing the problem of declining water table and soil salinity due to over-exploitation of ground

water and unscientific irrigation practices (flood irrigation). Depletion of irrigation water resources is

likely to put pressure the on area under wheat cultivation in north India in the next few years, forcing

farmers to explore less water intensive crops like fruits, vegetables, corn, pulses and oilseeds.

Table 3: Production of wheat in India from 2010-2014

Sr. no. Year Production

1. 2010-11 86.9

2. 2011-12 94

3. 2012-13 93.5

4. 2013-14 95.9

Source: Directorate of Economics and Statistics, Ministry of Agriculture and Farmers Welfare

In the last decade, Indian wheat yields have ranged from 2.7 MT/hectare in the year 2007/08 to 3.2

MT/ hectare. The yields across major growing states during a given season show large variation

depending on irrigation capacity and technology adoption levels. The yields in large irrigated growing

areas of the north (Punjab, Haryana and Western U.P.) are above 4.5 tons per hectare, while yields in

Rajasthan10%Madhya

Pradesh12%

Haryana13%

Punjab18%

Uttarpradesh32%

Others15%

State wise Share in Production (2013-14)


the central and western states (Gujarat, Madhya Pradesh, Rajasthan, Bihar and most of Uttar Pradesh)

are relatively low (1.5-2.8 tons per hectare) due to lack of assured irrigation facilities and low input use.9

Figure 5: India wheat production, area and yield (last10 years)

Source: Ministry of Agriculture, GoI and FAS/New Delhi (MY 2016/17)

Exports

The demand of India's wheat in the world shows a rising trend as per the figure presented above. The

country has exported 618020.01 MT of wheat to the world valuing Rs.978.59 crores during the year of

2015-16. India’s wheat export in 2015-16 has however declined by 79% over the corresponding year in

view of surplus global stocks and higher domestic prices as presented in the table below. India exports

the most to Bangladesh, followed by Nepal and UAE.

Major Export Destinations (2015-16): Bangladesh, Nepal, United Arab Emirates, Taiwan and

Philippines.

Table 4: Indian export of wheat (Top 5 destinations)10

Product: Wheat/Value in Rs. Lacs

2013-14 2014-15 2015-16

Country Qty Value Qty Value Qty Value

Bangladesh 19,85,441.28 3,17,124.54 11,23,304.18 1,88,839.46 3,40,552.20 53,447.48

Nepal 76,348.06 12,356.82 1,11,256.32 17,046.86 1,19,045.60 18,381.16

United Arab Emirates

6,64,860.25 1,14,900.33 3,91,018.78 67,736.20 99,722.30 16,040.69

Taiwan 38,017.69 6,599.13 25,366.00 4,372.95 14,591.00 2,269.68

Philippines 1,03,894.30 17,081.16 79,693.98 13,681.10 7,099.00 1,239.36

Source: DGCIS Annual Export

There is a significant increase in the Imports of wheat up to approximately 300%.

9https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Grain%20and%20Feed%20Annual_New%20Delhi_India_2-26-2016.pdf 10 http://agriexchange.apeda.gov.in/indexp/Product_description_32head.aspx?gcode=0603

http://agriexchange.apeda.gov.in/indexp/Product_description_32head.aspx?gcode=0603


India imported around 5.02 lakh tonne wheat during last year. This year import volume may increase to

2 MMT if prices in domestic market continue to gain strength.. In the month of November- 2016 India

imported around 5.41 lakh tonne wheat from France, Ukraine and Australia. Forward contract from

Australia has been done for December shipment at $210 C&F per tonne. Yearly average CiF comes to

$272.73 per tonne for 2015-16. This year CiF quote may move down to $205.00 per tonne as global

market is expected to reel under pressure. FoB quote in Black Sea region has increased to $183 and may

touch $190 per tonne by December end. As import duty is revised from 25% to 10% which will lead to

increase of import volume.

Also, the exports have declined by approximately 96% as compared to that in 2012-13.

Table 5: India’s Wheat Trade during 2011-12 to 2015-16

Year Export Import

2012-13 6.51 0.0

2013-14 5.56 0.01

2014-15 2.92 0.03

2015-16 0.61 0.51

2016-17(April-Jan) 0.23 3.03

1.4. Rajasthan State scenario: Production Vast stretches of sandy desert, scarcity of rainfall and paucity of irrigation facilities have been restricting

wheat cultivation in Rajasthan since long. But some of the irrigation projects initiated after

Independence, especially the Indira Gandhi Canal, have brought about considerable improvement in the

cropping pattern of the state.

Currently, the state accounts for 7.49 per cent of the total wheat production and 7.24 per cent of total

area under wheat in India. Over 20 districts are producing wheat and 11 are major producers.

Ganganagar, Hanumangarh, Bharatpur, Kota, Alwar, Jaipur, Chittorgarh, Tonk, Sawai Madhopur,

Udaipur and Pali are important wheat producing districts of Rajasthan.11 Table 7 gives the total area,

production and productivity of wheat in Rajasthan in 2014-15.

Table 6: Area, Production and yield of Wheat in Rajasthan during 2014-2015 (Area in - Hectares, Production in-

Tonnes and Yield in - KG/HA )

Crop (2014-15) Area (ha) Production (MT) Yield (kg/Ha)

Wheat 3,318,000 9,824,872 2,961

1.5. District and cluster scenario: Production The graph presented below shows the major wheat producing districts in Rajasthan in the 2015-16 and

higlights Ganganagar as the highest producer of wheat in India.

11http://www.yourarticlelibrary.com/cultivation/wheat-cultivation-in-india-conditions-and-distribution/20924/


The top five districts producing wheat in Rajasthan are Ganganagar, Hanumangarh, Alwar, Baran and

Bundi. Ganganagar (1037621MT) ranks first in the state followed by Hanumangarh which ranked

second in the production of wheat with the production of (243714MT).

Table 7: Major districts producing wheat in Rajasthan

Sr.no District Area (in Ha) Production (in Tonnes/ Bales)

Productivity (in Kg/ hector)

1 Ganganagar 274584 1037621 265

2 Hanumangarh 243714 973765 250

3 Alwar 213011 776427 274

4 Baran 159434 670807 238

5 Bundi 154914 646200 240

Major wheat producers in the RACP clusters are: Orai Bassi (Chittorgarh Jakham (Pratapgarh),

Kushalgarh (Banswara), Phoolasar (Bikaner), Z distributary (Sriganganagar), Kheruwala (Jaisalmer),

Sangod (Kota), Palayatha (Baran), Pisangan (Ajmer)

1.6. Global scenario – Wheat Flour market 12Among the various food grains such as barley, corn, lima beans, peanuts, oats, potatoes, soybeans, rice

and rye, wheat remains the most widely used raw material for making flour globally. It consists of all the

nutrients which are essential for human consumption and as a result, wheat flour represents the most

preferred flour across the world. It provides a number of health benefits ranging from improving the

body’s metabolism to controlling obesity. It not only helps in lowering cholesterol levels but also assists

in regulating blood sugar levels. Wheat flour finds numerous applications in the food industry such as in

the preparation of many food items like breads, pastas, noodles, wafers, bakery products, etc. Currently,

factors such as population growth, increasing disposable incomes, rise in consumption of bakery

products, growing health awareness among the consumers and aggressive marketing by manufacturers

are strengthening the growth of the global wheat flour market. According to IMARC Group, the global

12 http://www.imarcgroup.com/wheat-flour-market

0

200000

400000

600000

800000

1000000

1200000

1400000

Ganganagar Hanumangarh Alwar Baran Bundi

1 2 3 4 5

Major districts producing Wheat

Area (in Ha)

Production(in Tonnes/ Bales)

Productivity(in Kg/ hect)


wheat flour market has grown at a CAGR of around 1% during 2009-2016 with the total global

production volume reaching around 391 Million Tons in 2016.

China represents the world’s largest producer of wheat flour accounting for nearly one-fifth of the

total global production. China is followed by India, the European Union, the United States and

Egypt. Some of the prominent players in the global flour market are King Arthur Flour Company

Inc., ITC Limited., Hodgson Mill, General Mills Inc., Hindustan Unilever Limited, ConAgra Foods

Inc., Associated British Foods plc, Ardent Mills Canada, and Archer Daniels Midland Company.

Several companies are offering products made with a unique baking mix and containing a variety of

flavors. Leading companies are also focusing on emerging regions such as Asia Pacific and the

Middle East and Africa to consolidate their market presence, observes Transparency Market

Research (TMR). In some regional markets, the landscape is fairly competitive on account of

domestic players who are offering locally milled flour with competitive pricing.

The global flour market is projected to rise at a positive single-digit CAGR from 2014 to 2020. The

market is expected to witness substantial opportunities from the rapidly growing demand for bakery

products among a variety of consumers and the increasing uptake of fast food products in various

populations world over.

Of all the regional markets for flour, Europe is, currently, the major contributor of revenue and is

projected to lead throughout the forecast period. The dominance of this regional market is

attributed to the substantial per capita consumption of various flour types. The growth of the

Europe market is expected to be fuelled by the increasing production of wheat to meet the

burgeoning demand for bread in several nations. Based on technology, the market is bifurcated into

wet and dry milling. Of these, the dry milling technology for flour is projected to hold a lion’s share

of the overall revenue and is expected to rise at an impressive pace. The growth of the segment is

propelled by its extensive demand, attributed to the simplicity of the process.

The global flour market is primarily propelled by the rising consumption of flour and bakery

products in various regions. The rapidly growing demand for fast food products in restaurants,

cafes, and food chains in various developing and developed nations is bolstering the demand for

flour milling. The rising demand for flour confections is expected to boost the market, especially in

developing regions. Furthermore, the burgeoning flour milling industry in several emerging regions

is anticipated to accentuate the market through the forecast period.

The market is expected to benefit from a growing demand for bakery products with nutritional

benefits and containing unique flavors. In addition, the decrease in flour prices in some regions and

the development of a large number of flour mills in several developing nations is a key factor

boosting the market.

The advent of baking mix lines by players in developed markets and the vast growth of operations

of local mills are crucial trends expected to catalyze the growth of the flour market. The growing

expenditure on staple food is a key factor expected to accentuate the market. To meet a burgeoning

demand for flour, there is a substantial increase in the production of wheat in some regions. In

addition, the growing demand for noodles and breads in various regions is expected to bolster the

uptake.


The variability of the prices of some of the flour types in international markets and the rising

popularity of gluten-free foods in health conscious populations are the key factors likely to

negatively affect the growth of the market. On the other hand, advancement in milling process has

led to the production of gluten-free bakeries and an innovative line of baking mix. In addition, the

rising prominence of the value-added processed bakery industry in developed regions, particularly

in parts of Europe, is expected to open lucrative growth avenues for market players.

The growing demand for flour confections with a variety of flavors is likely to open up exciting

opportunities for market players. In addition, the substantial demand for wafers and biscuits in

some populations is predicted to boost the market. Furthermore, the increasing acceptance of non-

gelatinized flour in the making of processed food is expected to open up promising avenues for

market players.

1.7. National scenario– Wheat Flour market Processing of Atta is a highly unorganized sector in India. Traditionally, atta is mainly produced in the

Chakki (grinding stone) mill and is used till date. Aroma and texture of the flour are said to be key

reasons for using this Chakkis. These Chakki mills are generally smaller in capacity (max 300 kg per

hour). Large Atta manufacturers will be having number of Chakki (grinders) to establish their capacity.

The segment is largely dominated by the small and unorganized processors. Roller flour mills are

comparatively more organized than Atta millers. Tamil Nadu, Punjab and Gujarat have the highest

number of roller flour mills in the country. The average capacity of individual roller flour mills varies

from 30 tonnes per day to 50 tonnes per day (8-hour operation in a day). The average recovery from the

roller flour mills is around 97%, in this 56-68% Maida, Semolina/Rawa and resultant Atta 7% each, 23-

25% is recovered as bran which is used as cattle feed. The resultant Atta is fine flour compared to the

Chakki Atta which is mainly used by restaurants and hotels to make specialty breads like Tandoori Roti,

Kulcha and Nan etc.

The Indian packaged wheat flour market comprises few national players and large number of regional

and private label brands operating at pan India or restricted geographic market based on their size and

capacity. In terms of volumes, the packaged wheat flour market in India was more than 2,200 thousand

tons during the fiscal 2014-15, growing at healthy double digit CAGR of 15% over the past three years.

The urban market dominates packaged wheat flour market in India. Urban market occupies more than

90% of the total market where as due to penetration of packaged food in rural India, rural consumers’

willingness towards the packaged wheat flour has risen to some extent. The annual per capita

consumption of packaged wheat flour in India remained nearly at 1.85kg during fiscal 2014-15.

However, urban market leads in per capita consumption of packaged wheat flour with almost 5.5kg,

making the packaged wheat flour an urban phenomenon. North Central region is the major consumer

of the packaged wheat flour in India. For the fiscal year 2014-15, in terms of value, the North-Central

region comprised almost 44% of the overall India’s packaged wheat flour market.

The growing numbers of working women and their inclination towards the convenient food products;

will enhance the future demands of packaged wheat flour in India. If the growth trajectory remains the

same, the market of packaged wheat flour may likely to be more than double the current size by the end

of current decade. The marketer needs to come up with new and innovative product packaging and

product proposition for differentiating themselves and for sustainable long-term growth. It is also


expected that the consumers would eventually give more importance to the origin of ingredient and

related convenience factors in case of Packaged Wheat Flour. The current growth figures look

promising; however, players with strong brand image, product quality, distribution network and

constant R&D for product innovation capabilities shall stay and grow in the market.

However, with the entry of large number of market players having better quality, fresh and convenience-

packaged flour; the wheat flour consumption trends have been shifting towards the branded packaged

Atta. The rigorous advertising in print and visual media campaigning on quality, hygiene, health,

convenience factors by the players are helping to heighten the sales of packaged wheat flour in the

country.

The Indian packaged wheat flour market consists of plenty of brands with each one trying to

distinguish themselves with origin of wheat, manufacturing process, quality, taste, textures and price to

attract customers. Besides the leading brands, there are more than 500 regional brands in India. Each

flourmill has its own brand, sometimes more than 2 brands of packaged wheat flour.

ITC’s ‘Aashirvaad’ is the market leader among the national players in branded packaged wheat flour

market in India by occupying more than 35% market share where as several regional brands (produced

by flourmills serving region specific market) together occupy 40%, a major share of market. Shakti

Bhog with wider penetration holds almost 12% of the market share where as other national players such

as Pillsbury, Nature Fresh and Annapurna occupy below 10% of the market share.

The urban consumers dominate the consumption of packaged wheat flour in India that include working

couples, young singles, nuclear families, health conscious individuals that consume highest packaged

wheat flour in India. The various underlying factors driving the consumers for purchase of packaged

wheat flour are to fulfill the basic nutrition needs, to provide convenience and time saving, lack of

storage of wheat in bulk and perceived high quality of packaged wheat flour.

More than 70%, health and quality conscious consumers prefer to buy specific brands of packaged

wheat flour showing their brand loyalty. Due to varied geographical preferences and beliefs, to satisfy

Indian consumers with standard offering remains the biggest challenge for marketers and so as the case

with packaged wheat flour.

The organized milling sector is relatively small with about 1,000 to 1,100 medium to large flour mills in

India, with aggregate milling capacity of about 25 million tonnes, mostly milling maida (flour) and

semolina to cater to institutional demand, and by-product bran flakes used as filler in the cattle feed

industry. The average capacity utilization of these mills is around 45% to 50%, processing 12 million to

13 million tonnes of wheat a year.

1.8. State scenario– Wheat Flour market Jaipur, Alwar, Shri Ganganagar, Hanumangarh, Kota, Bundi and Baran are the key wheat processing

clusters in the Rajasthan State. Packaged Flour market here mirrors the National scenario in majority

aspects. While there is segment of consumers which still follows the traditional practice of carrying

cleaned wheat to local chakkis to get their desired fineness of fresh atta. Another segment, which has

grown at a fast pace in the State comprises of mostly urban population preferring packaged wheat flour.

In this segment, consumers largely prefer known brands like Aashirwad aata, Shakti Bhog Atta, Patanjali

Atta, Pillsbury Chakki Fresh Atta, and Nature Fresh Sampoorna Chakki Atta.


Wheat flour products also have great relevance in the famous Rajasthan cuisine too. Rajasthani breads

are made out of conventional staples of the region like corn, barley and millet which are grounded into

flour. Breads are generally roasted in frying pans and served after adding ghee on each piece. Of late

wheat flour has replaced these traditional grains to some extent. One of the famous delicacies ‘Dal-Bati-

Churma’ comprises baked flaky round breads made of gehun ka atta (wheat flour), rava (semolina),

besan (Bengal gram flour), salt, milk and ghee that are typically served after dipping with ghee.

Whenever we talk of Khichdi, we consider a wholesome and healthy meal made out of rice and different

pulses. However, people of Rajasthan have some innovative and nutritious preparations of khichdi that

are made using wheat, jowar and bajra in place of rice. Some of the popular ones are Gehun ki Bikaneri

Khichdi made of wheat and moong dal.

A good number of local players have also been targeting this segment but as of now most of them

mainly rely on institutional supply (particularly for maida and suji) to companies like Britannia, Parle,

and other ingredient buyer industries. Some local players like Alwar Roller Flour Mills, Nav Durga

Roller Flour Mill, Jindal Prime food pvt. Ltd, Satguru food products, Laxmi roller flour mills pvt ltd, LM

industries, KGM Roller Flour Mill, Agarwal Roller Flour mill, etc have been targeting the institutional as

well as retail clientele in the region. Their advantage, in this context, is the logistical benefit gained from

proximity to some major markets. Rajasthan has proximity to large consumer markets in the region (in

and around the NCR) that hold a big share in India's food consumption. 8,380 sq km of Rajasthan falls

in the National Capital Region (NCR), which is around 24.5% of the total NCR. Rajasthan shares its

border with five major Indian states: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat.

Flour mill units in Rajasthan have to their advantage, access to this enormous market.

1.9. Products and Applications-A brief note a. Atta: Atta is wheat flour, originating from the Indian subcontinent, which is used to make

most flatbreads, such as chapati, roti, naan and puri. Most atta is milled from hard wheat

varieties, also known as durum wheat that comprises 90% of the Indian wheat crop, and is

more precisely called durum atta. Chakki Atta is the main ingredient of most varieties of

Indian, Bangladeshi and Pakistani bread. It is a whole wheat-flour made from hard wheat grown

across the Indian subcontinent. Chakki Atta is obtained from grinding complete wheat grains.

Since nothing is removed from true whole meal atta, all the constituents of the wheat grain are

preserved. Traditionally, atta is made by stone grinding, a process that imparts a characteristic

aroma and taste to the bread. High bran content of true whole meal atta makes it a fiber-rich

food. This may help to regulate blood sugar as well have other health benefits. The

temperatures attained in a chakki produced by friction, are of the order of 110-125 deg C. At

such high temperatures, the carotenes present in the bran tend to exude the characteristic roasty

smell, and contribute to the sweetness of the atta.

b. Maida: Maida flour is finely-milled wheat flour variety which is used to make Indian breads

such as paratha and naan. It is also used in Central Asian and Southeast Asian cuisine. Maida is

a refined product of wheat. It is extracted from the inner white portion of the wheat after the

outer brownish layer is removed. After the flour is ground in a flour mill, it is passed through a

fine mesh (600 mesh per square inch) to obtain maida. Though sometimes referred to as ‘all-

purpose flour, by Indian chefs, it more closely resembles cake flour or even pure starch. In


India, maida flour is used to make pastries and other bakery items such as bread, biscuits and

toast.

c. Suji/Rawa: Sooji or suji (pronounced soo-jee), semolina and rawa (pronounced ruh-waa) are

Hindi words for granulated wheat - and all are from the same powder or flour from wheat. The

word semolina is Italian in origin while sooji is the word used for it in North India and Pakistan.

Rawa is the name for semolina in south India. The ingredient is not only used as a battering

ingredient in many Indian dishes, but it is also used as the main ingredient in numerous foods,

both sweet and savory, like Upma and Rawa Laddoo. For batters, a fine version of Sooji is used

whereas when it is the main ingredient, it is used in a coarser form. Rawa or rava is best known

in Rawa Laddoo, is a popular Indian sweet which is prepared on festivals like Diwali, Sri Krishna

Jayanti, and Ganesh Chaturthi. Sooji Ka Halwa is another Indian-inspired dessert that has a

pudding like texture.

d. Bran: Bran is the hard outer layer of grain and consists of combined aleurone and pericarp.

Along with germ, it is an integral part of whole grains, and is often produced as a by-product of

milling during the production of refined grains. When bran is removed from grains, the latter

lose a portion of their nutritional value. Bran is present in and may be milled from any cereal

grain, including rice, corn (maize), wheat, oats, barley and millet. Wheat bran is fed to horses in

the form of a warm porridge or mash. Bran mash is considered an excellent way to get the

horse to drink more water. It is also indicated for its laxative qualities. Bran is widely used as a

major component in foods for cows, buffaloes, goats, rabbits, guinea pigs, etc. Bran is

particularly rich in dietary fiber and essential fatty acids and contains significant quantities of

starch, protein, vitamins and dietary minerals. Bran is often used to enrich breads (notably

muffins) and breakfast cereals, especially for the benefit of those wishing to increase their intake

of dietary fiber. Bran may also be used for pickling (nukazuke) as in the tsukemono of Japan. In

Romania, fermented wheat bran is usually used when preparing sour soups, called borscht.


Chapter 2: Technology advances and circumstances in Wheat Flour Milling

2.1. Evolution of Flour Milling The process of flour milling dates back to Egyptian and earlier times. There are illustrations from

ancient drawings showing grain being crushed using a mortar and pestle, with the resulting material

being sieved to produce material of greater purity. The development that followed this was the use of

millstones, first hand operated, then driven by animals and finally driven by waterpower.

Millstones dominated the process used to produce flour till the 1870s, after which roller mills began to

supplant them on a large scale because of the superior flour that could be produced using them.

However, the gradual reduction system that was introduced at the same time as the widespread adoption

of roller mills has its origins in what is now known as the ‘French Process’.

The flour milling process, as it is known today, evolved between the years 1830 and 1870. It was a Manchester, U.K., based engineer, Henry Simon, who commissioned the first commercial mill using most of the technologies in use today. The important features of this mill were steel roller mills and the gradual reduction system. The advantage of the newer, more elaborate process was that higher yields of quality flour could be produced.

The main feature of the gradual reduction system is the use of a large number of process stages in an

extension to the French process and the exclusive use of roller mills for grinding. The principles of

gentle grinding and intermediate sieving were developed upon to give the break, purification and

reduction systems that are used today.

2.2. Key Advances in each step and process of Flour Milling The process of converting wheat into flour has three fundamental steps - wheat cleaning, wheat conditioning, and the milling process. All three steps impact the profitability and efficiency of the mill. Elements of the cleaning process that impact profitability include minimizing the loss of quality wheat into the screenings and cost of operating and maintaining equipment in the cleaning process.

Advances in Wheat Cleaning: The production of quality flour begins with effective wheat cleaning. Critical flour quality characteristics, such as ash and color, are impacted by the cleanliness of the wheat delivered to the first break rolls. Consistency in the wheat tempering and conditioning process depends on effectively removing dust, foreign grains and other impurities from the wheat. The flour milling industry continues to develop and incorporate new technology to improve flour quality and consistency, maximize equipment utilization by reducing downtime and improve energy utilization. Recent advances


in the process to remove the unwanted impurities from the quality wheat reflect the industry’s desire to become more efficient at producing a consistent, quality product.

Screening or sieving to separate good quality wheat from foreign grains, sand, stones and many other types of course and fine impurities has been the principal method of cleaning wheat from the beginning of flour milling history. Over time, various machines have been introduced and improved upon to increase sieving efficiencies. Sifters and sifting reels to remove impurities and classify wheat by size were commonly used as primary cleaning equipment as the importance of cleaning and grading grain developed.

As the operating capacities of mills increased, the use of oscillating or vibratory screeners expanded to keep up with the increased capacity requirements. Aspiration was incorporated into these designs to remove the dust and light impurities before the screening to improve effectiveness of the sieving as well. As grain cleaning technology continued to advance, machines that combined multiple cleaning principles were introduced incorporating sieving, density separation and aspiration into one machine. Combination machines allowed more wheat cleaning (capacity) to be done in a smaller space, helping to reduce the capital cost of new mills and mill expansions. New innovations in wheat cleaning reintroduce the advantages of sifting and grading wheat by size while removing impurities. These more recent advancements in wheat cleaning integrate modern technology and materials to meet the growing demand for higher operating capacity, improved cleaning efficiency and lowering the cost of operation and maintenance.

Wheat scouring is another traditional cleaning principle that evolved and advanced with technology.

Early applications of wheat scouring can be connected to wheat washing to remove dirt, sand and

stones from the quality wheat. Wheat washing transitioned into dry scouring with the purpose of

removing the dust and fine dirt particles attached to the outer surface of the wheat kernel, especially the

dirt trapped in the crease of the wheat kernel. Further advancement of the wheat scouring process

resulted in intensive scouring to de-bran or peel the outer layers of the bran coat from the wheat kernel

without grinding or breaking the wheat kernel.

Advances in Color Sorting: Color sorting was first adopted in the wheat milling industry by durum

processers looking for an effective method of removing ergot contaminated wheat to produce a safer,

cleaner product. The first generations of color sorters were monochromatic, sorting grain-based shades

of black and white. Advances in technology incorporated the use of high-resolution bi-chromatic

cameras in addition to the standard monochromatic cameras for inspection in a wider color spectrum.

This allowed the detection of subtler defects and impurities. There are several companies introducing

innovative machines categorized as color or optical sorters. However, these machines go beyond the

optical separation of unwanted impurities by color. Recent advancements incorporate infrared and even

ultraviolet sorting capabilities combined with color detection technology to enable the inspection for

foreign material with invisible optical properties, such as clear glass and stones. Improvements in optical

sorting go beyond the cameras detecting the defects. Better light intensity using fluorescent or halogen

lighting contributes to more accurate separation of impurities from quality wheat. High-speed, reliable

ejectors enable improved precision in the discharge and removal of defects once they are detected.

Better distribution and uniformity of the feeders regulating the wheat into the machines have aided in

increasing operating capacities and productivity. Advances in technology have reduced the price per

tonne to purchase and operate improving the cost effectiveness of optical sorters. The result is a much

wider application of optical sorting in wheat milling. The ability to detect and separate on the basis of


color, size and shape with remarkable accuracy within a split second has optical sorters taking the place

of more traditional disc and indent separators.

Advances in Milling

Wheat Stone Milling: The process of using stones to grind wheat into flour is an ancient tradition. The

basic principle of a fixed “bed” stone and a rotating “runner” stone

has changed very little in thousands

of years. The runner stone has an eye

in the center through which a

controlled stream of grain is poured

and the milled meal or flour travels

out to the edge of the stones along

grooves or furrows.

The efficiency is based on the care of the stones, the setting of the

stones during the milling process, the type of stone used and the “dressing” of the stones to keep them

in the best condition for milling.

In this process, it is important that the heat is transferred away from the flour so that it is lightly warmed

rather than toasted, as too much heat will cause excessive damage to

the starch and reduce its baking qualities. The surfaces of the stones

are cut so as to provide “lands”, which are the raised surfaces, and

furrows, which are recessed grooves. The surface of the stones tapers

towards the outside so that as the flour is milled, it travels out along

the furrows to the edge of the stones.

For a miller, it is important that the stones are kept in just the right

profile and that the gap between the stones is as accurate as possible.

Too big a gap or unbalanced stones will result in coarse or poorly ground flour, which will deliver poor

results in baking and fetch a reduced price.

Now modern techniques can be used to ensure that the stones are dressed properly. Stone-milling

means all the grains are ground in one process, all their

goodness is retained, and the whole stone-ground grain

imparts a good nutty flavor to the flour, with great

texture.

Electric grinding of grain: Atta Chakki or the stone

mill or plate mill as it is known amongst food

technologists was originally based on revolving granite

discs with gap for feeding wheat grains and flours of

any fineness can be obtained by adjusting the gap. In

today’s time, larger Chakkis have been designed and

adopted by the organized milling industry for use along

with the standard pre-cleaning and post-grinding


facilities of their flour mills to manufacture Atta similar to Chakki ground Atta. In nutshell, ‘cast iron

discs’ have replaced the granite ones for more efficient grinding and throughput capacities.

Roller Milling: As populations grew and the demand for more and better flour and bread grew, so a

new milling process was devised. Initially the first roller mills started using spinning metal ‘rollers’ in

process to break up the grain before then finishing the process between traditional stones.

Gradually, the process was refined so a succession of

rollers and sieves could be used to remove all the bran

and wheat germ from the grain through a staged milling

process or ‘reduction’ with each consecutive set of rolls

making the flour finer. The first set of rolls in a mill

is called a “break” or "break rolls" and subsequent rolls

are referred to as “reductions rolls”. By increasing the

number of rolls and with other advances in milling

technology affording better separation techniques,

almost all the bran could be separated out to produce

super-fine white flour. The complex system of

breaks with fluted rollers and then a series of coarse to

smooth reduction rolls shear off the white endosperm

from the bran and gradually reduce the particle size.

The first ‘break’splits the berry in to two or three parts and starts the shearing process, removing the

white endosperm from the bran. The “middlings” (small fragments of grain) are “bolted” or sieved to

remove the bran. The middlings are then reground at the second and subsequent breaks using a slower

grinding speed followed by more sieving, and so on. To produce whole meal flour from this type of

milling it is necessary to collect all the “brown” particles that have been removed during the sieving

processes and add them back to the final product. “Brown" flour is the one where only a certain

proportion and type of the extracted material is added back.

Not only are roller mills faster but also they produce more white flour of a higher quality than compared

to the one extracted from stone milling and sieving. In the late 1800s, white flour was considered

refined and fashionable, whereas course and gritty flour was thought unsophisticated and rural.

However, because of their high speeds and vigorous action there is a lot more damage done to the

components of the flour. There are ways to reduce the

damage and maintain a greater level of natural nutrients

and milling technology is evolving to reduce the pressures

and temperatures within the rolls. In terms of milled

products for baking industry, baked products cannot be

made from freshly milled flour, because the dough would

lack strength and resilience to trap gas. Hence chemical

oxidizing agents or bleaches are used to enable flour

ageing. Chlorine, chlorine dioxide, ascorbic acid, etc. are

some regularly used bleach. However, in this context,

some countries have banned bleached flour.


Enriched Flour- Fortification: Approximately 20 nutrients are lost when flour is processed in roller

mills. To make up for the loss, some nutrients are added back.13 Fortification is the practice of

deliberately increasing the content of an essential micronutrient, i.e. vitamins and minerals (including

trace elements) in a food, so as to improve the nutritional quality of the food supply and provide a

public health benefit with minimal risk to health.

The technology for fortifying wheat flour is simple and cost effective. In India, 80-85 percent of wheat

is processed in the unorganized sector in the chakkis to make Atta, whereas only 15-20 percent of the

wheat is processed in the roller flour mills which produce white flour (maida), semolina and resultant

Atta. The technology of flour fortification in a roller flourmill is simple, available and quality control

procedures are well established. India also has experience with chakki level fortification. Fortification of

wheat flour requires a premix feeder to add vitamins and minerals into flour and a blender to ensure

uniform mixing of the micronutrients. Mills planning to undertake wheat flour fortification must also

ensure adherence to internal and external quality control systems.

Quality Assurance: Quality assurance and food safety is another area where food sector is looking

beyond just legal standards and providing whole food industry a scientific basis which ultimately leads to

new approaches in technology. Food assurance and food safety standards such as ISO 9000, ISO22000,

HACCP, GMP, GHP are now becoming integral part of food industry thus keeping food industry

technologically abreast to global practices.

Larger Capacities of Machines: The principle emphasis in this area has been on improving the

effectiveness of existing machines rather than on new types of machine. The so-called ‘short surface

mill’ is now the norm. This refers to the amount of grinding equipment required to process a specific

throughput of wheat. The indicative figure is known as the available roll surface and is expressed as

millimeters of roll surface per hundred kilograms of wheat processed per 24 hours. This figure has more

than halved in the last thirty years.

Typically rolls are operated at double the speed and three times the feed rate that would have been the

norm in the 1950s. The advent of new ‘high speed’ rolls have taken this evolution one step further with

roll speeds and loadings double those of today’s norms. The efficiency of plansifters has also been

increased significantly. This has been achieved by making them larger, more space efficient and by

increasing sieving rates. The incorporation of rotary sieving machines into the process flow prior to

plansifter sections has also reduced the amount of sieving surface required in some sifter sections.

Safe, Scientific and Food Grade Machine Construction: Significant changes have occurred in the

way machines are built. Steel has replaced timber as the material of choice for the construction of

plansifters. Roller mills were constructed from cast iron and wood until recently, but roller mill

manufacturers now use prefabricated steel sheets for the main frame of the roller mill, with grinding

forces being contained in what are known as ‘roll packs.’ This has made the roller mill much lighter than

its cast iron predecessors, with resulting implications for machine cost and building design. The advent

of the roll pack has also dramatically reduced roll replacement times. This has become increasingly

important where flour mills are expected to run for extended periods between maintenance shutdowns.

13 http://www.who.int/elena/titles/wheat-flour-fortification/en/


Developments in roller mill technology are not just limited to the method of fabrication and the way the

roll chills are fitted. Significant advances have been made in minimizing the amount of noise generated

by roller mills in operation. This includes the replacement of chain and gear drives with timing belt

drives on the differential mechanism. Application of exhaust air to the grinding zone of rolls has

minimized fluidization, and roll ‘bounce’ is less of a problem.

Sophisticated electronic control systems provide reliable roll engagement and disengagement, and

instances of rolls running without feeds have been eliminated. This is a considerable advancement in

terms of increasing roll life expectancy and safety since rolls running in contact with each other wear

rapidly and pose significant fire risks. In addition, hygiene considerations are now being taken into

account in all new machine generations. Features are being incorporated that minimize stock hold up

and ease cleaning, thereby reducing contamination and infestation problems.

Advanced Engineering and design, Efficient Aspiration and Material Movement: Material

handling systems like elevators, conveyors, etc and the engineering design behind the same is now

executed to ensure reduced material travel between machines enabling leaner manufacturing which also

aids reduction of power costs and unnecessary instances of human intervention at various stages.

Vertical designs of flour mills with controls at storey levels or at central plant location have now become

the standard norm. The aspiration system that includes cyclones, fans, airlocks, etc. and the engineering

behind the same is done to ensure compact design eliminating leakages/wastages and resultant dust

discharge in shop floor air. This has increased overall safety and efficiency of the mills.

Process Optimization: All processes in flour milling can be optimized and controlled through control

panel i.e. automation. Process optimization refers to operating the plant optimally with economic

performance in terms of productivity and yields. It also avoids human errors. Scada systems are now

integral part of flour milling industry. Electro-Pneumatics and PLC have significantly changed the way

plants are operated. Automation ultimately leads to higher productivity and ease of operation.

Automation, as such monitors system, diagnoses problems and provides actionable information which

in turn helps prevent problems both on Grain and Equipment side. It allows operator to identify

problems before they happen and take diagnostic action. Milling industry is now changing from plant

control to process control and even beyond that.

2.3. Chakki Vs Roller Flour mill technology In western countries the concept of Atta was practically non-existent as most of the wheat products like

pasta, bread, biscuits and many others are based on milled, refined flour containing no bran or germ, the

most nutritious part of the grain. The sophisticated milling technology developed in the West based on

automated roller flour milling concept has spawned large capacity plants with through put as high as

2000-3000 tons per day. The by-products like bran and germ go for compounded animal feeds.

Importantly, Indian consumers prefer chakki atta over roller mill atta for its taste and texture. It is

commonly thought that stone grinding breaks the starch sufficiently to release extra sweetness while

burning it slightly to give added flavor to chapatis (flat bread cooked on a griddle) and nan (flat oven

bread). Some of the most successful roller milling companies are contracted co-packers of chakki atta

for the handful of national brands. By far, the leader in this segment is the domestic consumer goods

giant ITC, whose Aashirvad brand sells 100,000 tonnes per month.


One of the basic factors that put Chakki Atta above modern white flour is the temperature generated in

plate mills which cause "desirable" changes in the starch granules in the grain contributing to better

quality roti in terms of aroma and eating pleasure. Besides its nutritional superiority in terms of high

dietary fiber, higher Vitamin E content and minerals, Chakki Atta has more appealing flavor and sweeter

taste due to the roasting effect and carotenoid content in whole flour. However, one of the problems

associated with whole wheat flour is its limited shelf life due to presence of high lipase germ fraction

causing rancidity but traditionally only limited quantity of wheat was milled, just sufficient for a few

days without causing any spoilage.

2.4. Recent Global Technology Advances The global flour milling industry and the equipment and service suppliers that support it are continually searching to improve technology and methods to process wheat into flour and other byproducts. Some of the most recent technological advances in the industry offer breakthroughs in areas such as sanitation, safety and quality control; same are presented below:

a. Latest Innovations in Atta Milling: A new type of industrial process for producing high-quality

and sanitary Atta flour has been developed. The secret of the new Atta flour process is using steel

rolls instead of a grinding stone. A special, so called high-pressure mill is used in the new Atta

process to achieve the particular characteristics of the Atta flour. In this arena, one of the key

technology solution leaders ‘Buhler’ has designed a new grinding machine: ‘The PesaMill’. Easy to

clean and with a less intensive maintenance effort than a Chakki mill, the PesaMill processes up to

150 tonnes of wheat per day to produce consistent, high-quality Atta flours. The compact design of

the mill enables the installation on a small footprint while replacing up to 20 Chakki mills with its

high throughput capacity. The re-dressing of the milling stones is no longer required. This

innovative grinding system allows Atta flour producers to easily adjust their products to individual

product characteristics. Moreover, apart from some of these production advantages, the PesaMill

was designed with sanitation, energy consumption (up to 10% less energy consumption compared

to Chakki mills) and reliable and consistent production in mind. Plus, with the new Atta process,

yield can be increased to some extent.

b. Insect egg destruction: Buhler’s new impact machine, Matador MJZH, has been developed for the mechanical destruction of insect eggs in flour and semolina. More than 99% of insect eggs are completely destroyed at a high throughput due to multiple impact in cross-flow principle. The Matador MJZH has high mortality rates (independently validated) with minimal operation and maintenance costs. In order to meet individual needs, the Matador comes in five closely graduated sizes, with throughput capacities ranging from 1 to 45 tph. The Matador can be integrated in existing systems with great ease and flexibility – standing, lying or suspended. Depending on the direction of flow, incorporation is possible in gravity spouting at atmospheric pressure or in pneumatic pressure lines up to 1 bar of positive pressure. The small machine sizes can also be mounted to the ceiling.

c. Latest Color sorter technology: With eight individual models ranging from a 0.5 chute to a high-capacity 7-chute unit, the Cymbria SEA Chrome offers the latest in sorting technology. The system perfectly suits the needs of modern food processing systems that demand the optical sorters ability to detect and reject products of similar colors but with different shades. Machine adjustment can be carried out easily due to the real image setting, and as with all SEA sorters, the SEA Chrome allows for Internet connection for remote control. Each unit features standard TRU color cameras with 0.1


mm resolution and the ability to add NIR and InGaAs cameras, making it a very versatile color sorter for milling applications.

Key features of the new technology include:

• High capacity feeding chutes with a robust in-house vibratory feeder design; • Proprietary software for defect size analysis as well as for shape based on geometric characteristics; • Program for storing of up to 16 families of defects; LED lighting for long life and low heat dissipation; • Versatile flow configuration with re-sort and reverse re-sort; • Specially designed ejectors to prevent delays and pressure drops; • Vortex pressurized optical boxes to purge dust; • 15-inch color touch screen; and • Rotating optical boxes to provide easy access for maintenance and service.

d. Loading spout: Vortex has made several design changes to its loading spout. Vortex’s outer sleeve is now rivet free and utilizes cable guides rather than less durable plastic. Vortex also redesigned the cone harness cable to eliminate the possibility of misaligned cones, drill shavings and broken hardware, thus reducing the potential for contamination. These loading spouts are designed to capture fugitive dust, prevent material waste, and ensure plant and environmental safety, with low maintenance and service expenses. From the retractable loading spout attached to the bottom of a silo/hopper or located at the end of an air conveying system, to the dust collecting filter system, to the loading spout positioner, the company offers a complete line of versatile loading spout systems for your loading process.

Vortex loading spouts are unique for loading bulk materials into open and/or enclosed vessels because of their four-cable lifting design that provides maximum stability, compared to the standard 2- or 3-cable systems. The in-line drive system also incorporates special 3-piece CNC-machined pulleys that feature chamfered edges and precision cable grooves to significantly reduce cable wear and back lashing as the loading spout extends and retracts, especially during the misalignment of the hatch opening. Because the cables do not fray, cable failure is nearly eliminated and so is costly downtime for repairs.

e. Flour packer: FAWEMA’s servo-driven FA 217 packer has been redesigned to run flour bags from 2 lbs (.9 kg) to 10 lbs (4.5 kg) in either single, double, or triple fill mode, offering unmatched flexibility in terms of fill rates and bag sizes that can be run by just one packer. Servo technology throughout simplifies operation, changeovers, and maintenance. The FA 217 is a flexible high-performance system that combines the traditionally proven packaging process with the latest design and automation technology. The packer works in a highly energy-efficient manner with a high packaging performance. This is achieved using energy recovery within the electrical drives as well as low mechanical friction loss. At the same time, the maintenance costs are significantly reduced as fewer wearing parts are used. Further savings arises through the high compaction of the product using integrated vibration, so that a minimum of package material is required per bag.

The FA 217 optimally meets higher hygiene requirements in that the depositing areas for product dust have been significantly minimized. In addition to these hygiene requirements, accessibility to the system parts is significantly improved based on an ergonomic construction.

f. Wireless hazard monitoring: HazardPRO Wireless Hazard Monitoring System from Electro-Sensors is a comprehensive solution to combining sensors, advanced technology, and intuitive


software at a lower installed cost than traditional wired systems. The goal is to protect facilities and people by providing the fastest alerts when they happen and transmit the alerts via the most convenient method. Consistent operation is ensured with self-diagnostics, transmission logging and redundant receivers. It allows millers to invest this savings in more accurate sensors, better displays and more intelligent controls that provide increased system reliability, ease of use and fewer false alarms. On the HazardPRO status screen, an operator can quickly view the complete operation, including what machines are running and the status of each. The operator can instantly spot a problem and then touch the display screen to bring up specific information for that equipment.

Because the HazardPRO intelligent transmitter nodes send information when a change is detected, there are no polling delays. When an event occurs, it is automatically logged. An operator can view a graph of the event and, after investigating, can document the cause and resolution. With HazardPRO, determining the condition of a rub block alignment sensor does not require shutting down the belt and performing a visual inspection. A warning will be displayed at the control panel if a block is wearing down to a point where it should be replaced.

The aspect of technology advancement in milling processing sector discussed above gives us fairly good

idea on development of flour mill industry globally and in India on the background of growing

demands. Development in Machine capacities, Automation and End products are constantly evolving to

cope with consumer demands. External influence from market are driving technological changes in

machines and process and still trying to keep commercial viability. There is still lot of scope in milling

sector for technological development / improvement of processes as well as for new innovative

products.

2.5. State scenario– Technology circumstances Jaipur, Alwar, Shri Ganganagar, Hanumangarh, Kota, Bundi and Baran are the key wheat processing

clusters in the Rajasthan State. While the majority processing units are traditional micro atta chakki

units, few small and medium scale semi-automatic/ automatic chakki plants and roller flour mills are

also operating in the region. Some local players like Alwar Roller Flour Mills, Nav Durga Roller Flour

Mill, Jindal Prime food pvt. Ltd, Satguru food products, Laxmi roller flour mills pvt ltd, LM industries,

KGM Roller Flour Mill, Agarwal Roller Flour mill, etc have been targeting the institutional as well as

retail clientele.

Discussions with most millers pointed to below mentioned common technology gaps (in traditional set-

ups):

1. Storage of raw material raw material is largely done in conventional government and private

godowns.

2. Many units (particularly in atta milling) in region have deployed inadequate pre-cleaning

equipment and facilities. By and large, most units only use Rotary Separators, destoners and

gravity separators. However, use of modern fine cleaners, intensive scourers and other

advanced cleaning mechanism is limited to some advanced plants only.

3. Mills with older technologies also face lower recovery and thus low profit margins. Improper

dressing and maintenance of grinding stones in atta mill, poor self-cleaning mechanism in key

machines like magnets, etc are major reasons for low recoveries.

4. Old technology roller mills have outdated technology rolls and plansifters, leading to quality

aberrations in grinding and sifting.


5. Some small and medium scale units have been upgrading their processes on regular basis to

ensure quality norms and market competitiveness. In this context, however, the cost of up

gradation is often high.

6. Most units using outdated and non-automatic technologies and engineering also complained of

high power and labour costs.

7. In many micro scale and even some small scale units, even basic color sorter is not installed.

Such firms are, therefore, unable to appropriately grade material into acceptable and reject

grades. There is absence of metal detector equipment too in some units. All these aspects lead

to a high level of rejection (of acceptable quality material going away as reject quality) affecting

yield and profit margins of firms.

8. Most units have traditional machineries and automation at all levels of processing is fairly low

(except in some modern mills).

9. Packaging in most units is done manually and/or with use hand held stitching machines of

jute/pp bags. Most units pack in wholesale (i.e. 50/25 kg packs) and very few (largely roller

flour mills) have ventured into retail sizes (i.e. 1 kg to 10 kg).


Chapter 3: Production and processing hubs/ clusters in Rajasthan

The graph presented below shows the major wheat producing districts in Rajasthan in the 2015-16.

Ganganagar is major producing district in the state for wheat.

Figure 5 Major Districts producing Wheat

The top five districts producing wheat in Rajasthan are Ganganagar, Hanumangarh, Alwar, Baran and

Bundi. Ganganagar (1037621MT) ranks first in the state followed by Hanumangarh which ranked

second in the production of wheat with the production of (243714MT).

Table 2: Major districts producing wheat in Rajasthan

Sr.no District Area (in Ha) Production (in Tonnes/ Bales)

Productivity (in Kg/ hector)

1 Ganganagar 274584 1037621 265

2 Hanumangarh 243714 973765 250

3 Alwar 213011 776427 274

4 Baran 159434 670807 238

5 Bundi 154914 646200 240

0

200000

400000

600000

800000

1000000

1200000

1400000

Ganganagar Hanumangarh Alwar Baran Bundi

1 2 3 4 5

Major districts producing Wheat

Area (in Ha)

Production(in Tonnes/ Bales)

Productivity(in Kg/ hect)


Major wheat producers in the RACP clusters are: Orai Bassi (Chittorgarh Jakham (Pratapgarh),

Kushalgarh (Banswara), Phoolasar (Bikaner), Z distributary (Sriganganagar), Kheruwala (Jaisalmer),

Sangod (Kota), Palayatha (Baran), Pisangan (Ajmer)


Chapter 4: Manufacturing process and technology benchmarking

Wheat is mainly consumed (or used by ingredient industry) in the form of atta, suji, maida and baking

flour. Most of the wheat is milled in small capacity disc mills to produce wheat flour (atta). Maida-the

refined wheat flour, used in the bakery industry, could be produced in capital intensive and sophisticated

roller flour mills. Small scale bakery industry is often confronted with the problem of availability of right

quality of maida. CFTRI, Mysore has now developed a simple mini wheat mill which simultaneously

produces bakery flour, maida, atta and suji. Bran is available as a by-product which is used as animal

feed. On rural level, largely the flour mill (Atta Chakki) basically involves cleaning of wheat to remove

dirt, stones and other foreign material. Thereafter, wheat is separated in Gravity Separator into different

grades. The cleaned wheat (Grade I) is primarily sold/traded and grade II and brokens are floured in

flour mill (i.e. atta chakki). While most unorganized small chakki mills (about 2-2.8 million in numbers

Pan India) do not deploy cleaning machines, as their clientele generally bring cleaned seeds for making

flour. However, in this context, cleanliness of wheat may vary. In case of bigger chakki mills in

organized sector (about 600-800 in numbers Pan India) and roller flour mills (over 1000 in numbers Pan

India) all/most functions are carried out in in-house. For the last 10 years, roller flour mill owners have

been increasingly targeting the market for packaged branded atta. Traditionally, Indian families store

wheat at home and take 10 to 15 kilograms (kg) at a time to chakkis for custom milling. To also tap this

important market, roller milling companies have also installed lines of mostly Indian-style horizontal

stone mills in order to produce their own brands of atta in all package sizes. The mills make use of the

cleaning sections and bagging lines of their roller mills.

4.1. Manufacturing Process 4.1.1. Chakki Atta Mill


a. Cleaning Section: A reel machine/Pre-cleaner is the first step, wherein the machine with

diverse mesh size mesh separates the impurities in the wheat by size i.e. smaller than wheat viz.

dirt, dust, small round other crop seeds, etc. as well as those bigger than wheat viz. chaff, straw,

other seeds, etc. A vibro separator is also used in the further line of pre-cleaning to get

maximum impurities and foreign material separated by size. In process of pre-cleaning, lighter

than air impurities (dust, dirt etc.) are also cleaned through a system of air resistance using

aspiration channel. The pre-cleaned wheat is now transferred to De-stoner Machine through

elevator where the stones of same sizes of wheat kernel are separated by the principal of gravity

classification which is connected with another aspiration line.

Thereafter, cleaned wheat then moves to the Intensive scourer where the scouring of wheat is

done by rubbing the kernels between the rotor and special mesh fitted outside, in order to

remove dirt from the skin of wheat, and that from the crease of wheat. Light dirt and fine bran

particles are removed through air aspiration.

The cleaned wheat thereafter moves to Intensive Dampener through an elevator to add

moisture as per requirement, to get the moisture penetrated to the endosperm portion of wheat

kernel. The dampened wheat is now stored into conditioning bins for the period varying from 8

to 12 hours (as per variety of wheat absorption of moisture into the endosperm portion and to

allow the wheat to swell). The conditioned wheat is then passed through the Intensive Scourer

no.2/Emery roll where the wheat kernels are scoured between the roll and a net mesh. The

machine leads to upper layer of bran being removed from the wheat kernel.

In the above process of cleaning, a system of aspiration using medium pressure fan is used by

allowing pipe/ducting connections to the various machines. The main function of this system is

to separate lighter impurities from wheat (including those generated in process). All the vertical

conveying process is facilitated through use of elevators and the horizontal conveying is done

by use of worm conveyors. Magnets are installed in between few lines in order to separate the

ferrous particles present with the wheat.

b. Milling and Packaging Section: Conditioned wheat is first taken to a storage bin through an

elevator. The roll bin is fed with uniform and/or required loads to allow grinding effect. Now

through a conveyor the wheat is fed in “Atta Chakkis” wherein grinding of wheat with impact

of moving stones is done. The flour is then moved to a plan sifter. The plan sifter is widely

applied in modern flour mills. It is used not only for grinded wheat and middle material sifting

but also for flour check sifting. Due to different sieving design, the plan sifter serves for

different sifting passages and different middle materials. The plan sifter is driven by a motor

which is installed inside of the main frame and counter-balanced by a counterweight. Each plan

sifter has 4, or 6, or 8 sections sieves inside. Various material flows into the various section on

its own route. According to individual design for different materials, the sieve sifts different

granular material to different next passage in flour machine when the whole machine is running.

In addition, the plan sifter is applied as control sifter in flour storage systems ahead of bagging

and bulk load-out. The inside of the sieve compartments is of simple design. The continuous

door retains the sieve stack in place by means of robust locks. The product-carrying channels

are easily accessible and can therefore be cleaned with minimum effort. The sieve frames are

easy to install and remove. The sieve stack can be easily and securely clamped with an easy-to-

operate clamping device. In course of grinding process through chakki, main extracts remain in

form of ground fibre/cellulose with flour which is called Atta in range of sizes that may be


passed through the desired cover size and the other form is flaked fibre that is called Bran. So

milled, separated Atta and Bran are then packed through packing spouts in bags. Wholesale

Packaging of Atta is done through an Automatic Weighing and Bagging machine, which can

pack the flour in 10 kg-100 kg capacity bags. In general, 25 kg and 50 kg size bags are used in

wholesale. On an average, such bagging machine can give an output of 250 to even 500 bags

per hour. For retail packaging (i.e. ½ kg, 1 kg, 2 kg and 5 kg), a vertical form fill seal (VFFS)

machine is used. In both types of packaging, an augur filler type filling system is required. It is a

filling mechanism which measures out a product, usually powder or free flowing solids, using an

auger which is rotated for a predetermined number of revolutions in a conical hopper to

discharge the required volume of product. The main benefit of these machines is their ability to

control dust during the filling operation and are therefore used extensively for powders and

dusty free flowing solids. To compensate for changes in the bulk density of the product, auger

filler is frequently used in conjunction with a weighing instrument like a check-weigher. Fillers

of this type are suitable for filling products at both low and medium speeds.

4.1.2. Roller Flour Milling

Receiving, Testing and Storage: Wheat is received at the flour mill and inspected. Samples of wheat

are taken for physical and chemical analysis. The wheat is graded based on several factors, the most

important of which is the protein content. The wheat is stored in silos with wheat of the same grade

until needed for milling.

Cleaning Section: Before wheat can be ground into flour it must be free of foreign matter. This

requires several different cleaning processes. At each step of purification, the wheat is inspected and


purified again if necessary. To begin with, wheat is passed through a drum sieve that removes straw

fragments, bag tapes, paper, pieces of wood, etc. The different drum screens with holes ranging in size

from 10 to 60 mm are capable of achieving throughputs as high as 500 metric tons per hour. In the next

step wheat is lifted and screened in a Separator Classifier. With its two sieve desks, the separator

classifier removes coarse impurities like large kernels, string, straw, wood, stones or clumps of soil, as

well as fine impurities such as sand and breakage from the grain. In this way, it provides efficient grain

cleaning. ii. In order to optimize the cleaning effect, an optional aspiration channel or air recycling

aspirator can be employed, through which low-density particles such as dust, hull fragments or husks

can also be separated. In process of pre-cleaning, lighter than air impurities (dust, dirt etc.) are also

cleaned through a system of air resistance using aspiration channel.

The pre-cleaned wheat is now transferred to De-Stoner Machine through elevator where the stones of

same sizes of wheat kernel, glass pieces, metal pieces are separated by the principal of gravity

classification which is connected with another aspiration line. A gravity separator could also be installed

to remove immature grains based on principle of screening on basis of weight. A cockle cylinder is used

to remove foreign seeds e.g. oats/barley etc. The machine makes use of the fact that wheat grains are

oval while most other plant seeds are round. The wheat moves down a rapidly spinning cylinder. The

oval wheat grains tend to move toward the center of the cylinder while the round seeds tend to move to

the sides of the cylinder, where they are removed. Other methods used to purify wheat include magnets

to remove small pieces of metal, scourers to scrape off dirt and hair, and electronic color sorting

machines to remove material which is not the same color as wheat.

Next, the purified wheat is lifted in an intensive dampener unit, where it is washed in warm water and

placed in a centrifuge to be spun dry. During this process any remaining foreign matter is also washed

away. The moisture content of the wheat must now be controlled to allow the outer Flour layer of bran

to be removed efficiently during grinding. This process is known as conditioning or tempering.

Milling and Packaging: In the milling section, the endosperm is separated from the hull and germ and

processed into flour. The wheat is ground on multiple consecutive roller mills, which are often called

the heart of a flour mill. After each roller mill, the different parts of the kernel are separated by sifters.

Numerous sieves utilize a circular motion to divide the different products by size. Additionally, bran

finishers and purifiers optimize the separation process. The grinding and sifting process is repeated

multiple times to maximize the separation, improving the quality and yield of the finished products. The

results are flours of various qualities, bran and, if required, germ and semolina.

To elaborate, wheat of different grades and moistures is blended together to obtain a batch of wheat

with the characteristics necessary to make the kind of flour being manufactured. At this point, the wheat

may be processed in an Entoleter, a trade name for a device with rapidly spinning disks which hurl the

grains of wheat against small metal pins. Those grains which crack are considered to be unsuitable for

grinding and are removed.

The three major parts of wheat are Bran, Germ and the Endosperm. The bran and germ are separated

as it affects the baking quality of the flour. The Roller Mill Process is a gradual reduction process where

bran and its parts are broken down in succession of relatively gentle grinding stage. Grinding is done in

Roller Mill with a pair of rolls mounted in parallel alignment that can be adjusted to do precision

grinding. At each grinding stage products consist of mixture of coarse, medium and fine particles

including the portion of the flour that are separated by sifting of material following each grinding stage.


The produce is then sieved in plansifters. Pneumatic lifts are used to feed in at the top and passes from

the sieves to sieves by gravity flow. The machines required in Milling Section mainly consist of Roller

Mills, PlanSifters, Bran Finishers, Reverse Jet Filters, Dampener, Pneumatic lifts etc.

Semolina and middling produced at grinding stage are separated from bran by air in Purifier Machines

whereby a composite fractions composed of endosperm with adhering bran are also separated.

Whatever flour remains in bran is cleaned using bran finisher and the remaining bran is packed.

Optionally, small amounts of bleaching agents and oxidizing agents are usually added to the flour after

milling. Vitamins and minerals could be added to produce enriched flour. Leavening agents and salt are

added to produce self-rising flour.

So milled, separated maida, suji, flour and bran are then packed through packing spouts in bags.

Wholesale Packaging of products and by-products is done through an Automatic Weighing and Bagging

machine, which can pack the flour in 10 kg-100 kg capacity bags. In general, 25 kg and 50 kg size bags

are used in wholesale. On an average, such bagging machine can give an output of 250 to even 500 bags

per hour. For retail packaging (i.e. ½ kg, 1 kg, 2 kg and 5 kg), a vertical form fill seal (VFFS) machine is

used. In both types of packaging, an augur filler type filling system is required. It is a filling mechanism

which measures out a product, usually powder or free flowing solids, using an auger which is rotated for

a predetermined number of revolutions in a conical hopper to discharge the required volume of

product. The main benefit of these machines is their ability to control dust during the filling operation

and are therefore used extensively for powders and dusty free flowing solids. To compensate for

changes in the bulk density of the product, auger filler is frequently used in conjunction with a weighing

instrument like a check-weigher. Fillers of this type are suitable for filling products at both low and

medium speeds.

Testing: Quality control of flour begins as soon as wheat is received at the mill premises. The wheat is

tested for its protein and ash content. The ash content is the portion that remains after burning and

consists of various minerals. During each step of the purification process, several samples are taken to

ensure that no foreign matter ends up in the flour. Since flour is used human consumption, all the

equipment used in milling is thoroughly cleaned and sterilized by hot steam and ultraviolet light. The

equipment is also treated with antibacterial agents and antifungal agents to kill any microscopic

organisms which might contaminate it. Hot water is used to remove any remaining traces of these

agents. The final product of milling is tested for baking in test kitchens to ensure that it is suitable for

the uses for which it is intended. The vitamin and mineral content is measured in order to comply with

government standards. The exact amount of additives present is measured to ensure accurate labeling.

4.2. Technology constraints and Benchmarking The global food industry is becoming ever more aware of the potential offered by wheat to deliver

innovative food products, with strong consumer attributes. A significant advantage of this is that new

techniques often reduce the amount of waste, so can add significantly to the overall efficiency of wheat

production.

This traditional flour industry is now transitioning to a new form, based on two types of mill: on one

side, modern high-volume mills, achieving efficiency through economies of scale to address the mass

markets, on the other side, smaller specialist mills - modern, hygienic and efficient - to satisfy niche

markets.


The older mills can be characterized as manually operated with high labor costs, poor energy efficiency,

low yields and product wastage. Additionally, they have poor dust extraction and machinery is prone to

break down. Fortunately, all of these issues are addressable, using state-of-the-art technologies.

Modernized mills will be more sustainable (both economically and environmentally), more commercially

viable and will help to generate wealth for their local communities.

In the near future, automation will be increasingly used to ensure consistent quantity and quality of

throughput. There will also be technological solutions for reducing processing time, improving hygiene,

increasing productivity and enhancing nutrition. These developments can be classified as improving

existing techniques and systems, but there is also considerable effort going into creating true innovation,

which will drive revolutionary new solutions into the industry and open up new markets.


4.3. Benchmarking the Chakki Atta and Flour manufacturing process in key clusters at Rajasthan Some more significant wheat flour industries in India are located at UP and MP. These may be considered as reference cases for benchmarking

purposes in terms of technology-levels. Many of these firms constitute high capital intensive units that have constantly pursued technology

upgrading and established automatic milling plants procured from world leaders in equipment and technology such as Buhler/Satake/Fowler

Westrup/Cymbria. Even in terms of micro and mini units some of these technologies can be easily incorporated to realize better yields and desired

quality output.

Some of the advanced roller flour mills in Rajasthan (as well as other regions of the country) have deployed these machines, yet many chakki atta

and old flour mills use outdated technologies. Some atta chakki units and flour mills have deployed basic versions of these technologies, which

may not be as efficient as advanced versions. Notably, many units use semi-automatic machines, which are also generally of high power/labour

consuming nature.

To summarize, the process of atta and flour milling involves various activities which may be benchmarked in terms of best practices:

Sr. No. Process Traditional method (especially in micro

units)

Modern Method/s in more advanced units

1. Raw Material

Storage

Storage of raw material by millers in own or

other private godowns leaves the raw material

subject to infestation by rodents and pests.

Modern and scientific warehousing systems like

dehumidifiers, temperature monitors, grain

handling equipment, etc are non-existent in such

facilities.

Fumigation systems are used which deteriorate

the nutrient quality of food. It leads to collection

of pesticide residue which causes health hazards

and poorer value realization.

Often, lack of hygiene, pilferages, leakages,

improper handling of material, and various other

factors lead to losses in storage.

Modern technology involves raw material storage in silos

made of galvanized steel re-enforced exteriors. Galvanized

Silos are used for storage of grains in bulk for longer periods.

These silos are made in Galvanized Steel and bolted in

construction. The main parts of the silos are made in

corrugated sheets instead of plain sheet, which increases its

strength. These silos are generally equipped with accessories

like Level Switches, Aeration System, Temperature

Monitoring, Ventilation and Sweep Augers. These accessories

help us to monitor the quality of stored grain inside the silos.

Galvanized Silo Storage System is also a proven scientific

system for storage of wheat and other food grains in Europe

and America. This system ensures zero wastage due to

moisture, fungus & rodents etc. This also enables units to

target premium markets from quality-seeking consumers

through direct retailing and export. In India, this system is


adopted to some extent by private sector. Fowler Westrup,

Rostfrie Steels, Westeel Silos, Buhler, Milltec, Bansal Group

etc. are some key supplier options of large silo storage

systems.

2. Raw Material

Cleaning (Pre-

cleaning and

Fine Cleaning)

Most atta chakki firms use inadequate pre-

cleaning and fine cleaning equipment and

facilities.

While most micro units do not deploy any

cleaning equipment as consumers bring their

own wheat for processing to flour for

consumption. Some mini and medium scale units

do deploy pre-cleaners, de-stoners and gravity

separators; however the use of equipment like

fine cleaners, magnetic separators scourers, color

sorters intensive dampeners and plan sifters is

limited to high capital intensive roller flour mills

and modern atta chakkis. Even in context of

roller flour mills, many use some outdated

fabricated cleaning machines, which leads to

losses in yield since such machines (on several

occasions) have low throughput capacities.

Additionally, cleaning may not be efficient with

low accuracy in removing foreign materials,

immature grains, ferrous impurities, other crop

grains, broken, color defects and infected grains.

As a matter of fact, improper cleaning reduces

the price realization for processers as well

increases the danger of clogging of downstream

machines and thus increasing repairs and

To the contrary, benchmarked cleaning equipment deployed

in larger firms at key clusters in UP, MP and Rajasthan

involves a complete cleaning line including

Pre-Cleaner (Drum Sieve): Careful preliminary cleaning

of grain reduces the wear and tear on the downstream

equipment in the production process. This enhances the

operating reliability of the entire production plant. A

Buhler/Fowler Westrup/Cymbria/similar top end

technology reliably remove straw fragments, bag tapes,

paper, pieces of wood, etc from fine and coarse-grained

bulk materials.

Magnet Separator: A Buhler/Fowler

Westrup/Cymbria/similar top end technology make

magnetic separator that is designed to efficiently remove

ferrous items from material streams. Self-cleaning

mechanism of these separators ensures smooth

operations (also avoiding slowdown or breakdown) by

avoiding clogging.

Separator Classifier: A Buhler/Fowler

Westrup/Cymbria/similar top end technology make is

applied for wheat. Using sieves, the separator removes

coarse and fine impurities from the grain. It also grades a

wide range of different materials according to size.

Gravity Separator: A Gravity Separator is used for the

separation of any kind of kernel and granular product of


maintenance costs and may also lead to reduced

life span of the machines.

almost identical size but with different weights. A

Buhler/Fowler Westrup/Cymbria/similar top end

technology make reliably removes immature grains and

other impurities on basis of weight and facilitate grading

of raw wheat.

De-Stoner: A Buhler/Fowler Westrup /

Cymbria/similar top end technology make effectively

removes even small and lighter-weight stones of the size

of a grain kernel from the stream of product, thus

ensuring excellent cleaning of the grain. Removal of high-

density impurities such as stones, glass, and metal

protects the downstream processing equipment and thus

perceptibly reduces its wear and tear.

Scourer: In wheat scourer, after striking of string board

and friction of sieve, impurities on surface of wheat seed

are efficiently cleaned and wheat skin will be wiped out,

which can increase the flour precision. It eliminates the

dust, the arista and beards from the kernels and

furthermore, it crumbles insects and detaches empty

kernels and lumps of mud. An intensive friction and

rubbing action between the kernels, the cover and the

paddle type beaters will reduce the bacterial potential in

the flour. A Buhler/Bansal Group make model is

generally used in advanced plants. An additional scourer

is also used post dampening and tempering of wheat to

further remove all surface impurities.

Entoleter: Insect damaged wheat and other impurities

such as mud balls can be destroyed and separated by

impact.


Color Sorter: An efficient color sorter uses a

combination of most advanced camera and shape

recognition identifier to ensure detection and removal of

the widest range of foreign materials, smallest spot

defect, finer product damage and subtler color defects.

Importantly, removal of mycotoxins (produced by

fungus) on grains is also detected which ensures safety

and quality of finished flour. Advanced units generally

deploy advanced sorters of

Buhler/Satake/Milltec/Cymbria make for optimum

results.

Intensive Dampener: A dampener is applied in wheat

milling for the intensive, homogenous dampening of

grain, thus conditioning the grain optimally for the

grinding process. The dampening process also removes

any other impurities mixed with wheat. A Buhler/Bansal

Group make model is generally used in advanced plants.

In a nutshell, applying these new innovations in the cleaning process produces a better quality, safer, more consistent finished product for the customer. This results in improving the profitability and image of the industry at a time when product purity and food safety standards are of the utmost importance.

3. Milling Section Manual Roll: Several small scale (roller flour)

millers in this segment still use outdated manual

rollers (single/double), which reduces efficiencies

and also hinders capacity upscale. In general, old

plants generally have four-roller body mill,

In comparison, technology and equipment in some modern

units at Rajasthan, UP, MP as well other key locations

considerably address the gaps associated with the traditional

systems. The milling section with benchmarked technologies

comprises of:


whereas most modern mills have upgraded to 8

roller body mill.

Stone Chakki: Few of the major drawbacks of

traditional chakkis (consisting of 2 dressed stone

discs (one stationary, other rotating)) at

Rajasthan include stone shavings getting mixed

in flour and bran, high operational &

maintenance cost (due to high abrasion), high

energy / low throughput, difficulty in

maintaining consistent control quality, and higher

foot print requirement.

Traditional plansifters and purifiers: As

observed, even some old roller flour mills use

outdated technology of plansifters and purifiers.

The old fashioned have plansifters and purifiers

also generally have lesser number of sieves which

are also of now lesser preferred wooden

structure.

All these aspects lead to low productivity, higher

risk of product contamination, high power and

labour costs affecting profit margins of firms.

Modern Roller Mill: Modern Rolls are constructed

with non-corrosive material and full accessibility to

ensure maximum sanitation. In general, 8 roller mill is

deployed which grinds the product in two passes

without a sifting step in between. The main reason for

using 8 roller mills is improved economics, as it reduces

the need for intermediate transport of product. The

overdrive system of machine is equipped with tooth

belts that eliminate the need for oil, which is generally

the case for helical gears in traditional roller models. The

8 roller mill is primarily used for the head breaks and the

semolina reduction system. In these positions, the 8

roller mill significantly reduces the air and therefore the

power consumption of the pneumatic conveying system.

Modern Stone Chakki mill: In general, ‘cast iron discs’

have replaced the granite stones with more efficient

grinding and throughput capacities. However, a section

of consumers still prefers stone milled atta. Hence,

many modern atta chakki units have adopted precision

made stone chakkis. In this context, Choyal make stones

from Rajasthan have particularly gained preference.

Stone and shaft are in taper shape so that both get

adjusted automatically when the runner stone is placed

on the shaft. More importantly, the machine gives

maximum output and requires little maintenance.

Also, in this context, one of the key technology

providers- Buhler Group has designed a stone-less

grinding system-“PesaMill” recently which promises the

better output in terms of quality, taste and other features

of whole meal wheat. The technology, apparently, is


energy saving and uses less space as compared to

traditional large chakkis (one Pesamill replaces 20 chakki

mills). Since the technology is fairly new and installed in

only few plants across India, more reviews could enable

selection of same by investors.

Modern Plansifter: Modern Plansifter come in sizes

from two stack to 10-sieve stacks per machine. Each

sieve stack is housed in an individual compartment and

typically received product from one grinding passage.

For maximum sanitation, modern plansifters have

product-contact surfaces made of non-corrosive

material such as stainless steel or food grade plastics like

polyurethane. The compartments are fully isolated to

eliminate condensation problem and associated mold

growth. Importantly, traditional wooden sieves have

been replaced with frames made out of polyurethane.

These new sieve frames are made from single piece

without the screw or other metal parts typically used to

connect parts in wooden sieve frame. The absence of

these potentially dangerous contaminants further

supports the food safety approach.

Modern Purifiers: The main difference in purifiers

again is the increase in number of sieves to meet the

ever increasing quality requirements. Food grade

product-contact parts and energy savings are the next

major advanced features. Since same process air is used

for all layers/decks, it leads to cost effective operations.

Apart from purifiers Centrifugal Bran finishers are also

used to remove flour particles still adhering to the bran,

reducing to a minimum the residual starch content of


the bran.

Some of the leading suppliers and turnkey technology

suppliers for above machines include Buhler, Choyal and

Bansal Group.

4. Wholesale and

Retail

Packaging

Wholesale Bagging: Most units in the

region use the cloth and pp bags packaging

material sourced through local dealers and

agents from manufacturers in locations like

the Hyderabad, Gujarat, National Capital

Region (NCR), etc. Millers also use gunny

bags sourced through brokers locally. Firms

mostly pack flour in 50 KG and 25 KG bags.

The packaging operations are largely tedious,

time consuming and manual. After filling and

weighing the bags manually, a basic hand

held stitching equipment is used.

Benchmarked machine and equipment for

same involves automatic net weighing and

bagging system.

Retail Packaging: Most units in the region

get job work done from service providers for

retail packs like ½ kg, 1 kg, 2 kg and 5 kg. In

this context, the service/waiting time could

be over 4-7 days. Some millers use manual

filling methods with simple heat sealing

machines. Benchmarked machine and

equipment for same involves Form-Fill-Seal

machines, which is deployed in some big

scale roller flour mill units in Rajasthan.

Wholesale Packaging of products and by-products is

done through an Automatic Weighing and Bagging

machine, which can pack the flour in 10 kg-100 kg

capacity bags. In general, 25 kg and 50 kg size bags are

used in wholesale. On an average, such bagging machine

can give an output of 250 to even 500 bags per hour.

For retail packaging (i.e. ½ kg, 1 kg, 2 kg and 5 kg), a

vertical form fill seal (VFFS) machine is used. In both

types of packaging, an augur filler type filling system is

required. It is a filling mechanism which measures out a

product, usually powder or free flowing solids, using an

auger which is rotated for a predetermined number of

revolutions in a conical hopper to discharge the required

volume of product. The main benefit of these machines

is their ability to control dust during the filling operation

and are therefore are used extensively for powders and

dusty free flowing solids. To compensate for changes in

the bulk density of the product, auger filler is frequently

used in conjunction with a weighing instrument like a

check-weigher. Fillers of this type are suitable for filling

products at both low and medium speeds.

Some reputed suppliers like Hassia Packaging, Nichrome, etc.

could be considered for machinery selection.

5. Testing and Most roller mill and large chakki units in Testing equipment comprising Digital and IR Moisture


other support

activities

Rajasthan have some basic testing units for in-

house quality check and control. This is primarily

because of the fact that material is required to be

tested at several stages of milling. However, on

several occasions, even such units are required to

outsource various tests from local as well as

distant accredited testing labs. The lead time in

some basic/key tests could range from couple of

days is to over a week.

Meter, hot air oven, ashing oven/muffle furnace,

kjeldhal apparatus, soxhlet apparatus, centrifuge, vortex

stirrer, sedimentation shaker, NIR grain analyzer,

Universal lab sifter, pH meter, precision weighing scales,

glassware and chemicals, etc could be required by miller

unit as per requirements.

Some key tests like Moisture test (air oven method and

IR), Ash test, Acid content in soluble ash,

Sedimentation value, Water absorption test, Color test,

CCL4 test, Alcoholic acidity test, baking tests,

granulation tests, etc may be conducted at shop floor for

effective quality control.

Dealers of some reputed manufacturers like Agilent and

Presto Testing could be considered for testing equipment.

6. Support

Equipment,

Engineering

and Automation

The support system majorly includes

material handling equipment (elevators,

conveyors, etc.), aspiration system

(aspirators, cyclone, airlock, fans, aspiration

line and ducting, etc), hoppers and storage

bins, the machine support structure, other

mechanical fabricated equipment and other

support equipment (compressor, etc). The

quality of these equipments is highly critical

for overall performance of the mill.

However, in this context many millers have

sub-standard quality system which leads to

dusty environment, leakages, clogging and

breakdowns and other related problems.

While most high end roller flour mills and

The support structure and equipment play a highly

important role in the performance of the mill. Based on

size, capacity and milling engineering, the support

structure and equipment need to be installed. Since

several machines function on vibration principle, it is

highly important that the support structure is robust and

shock absorbent. Key suppliers like Buhler, Bansal

Group, Choyal, Fowler Westrup, etc also supply turnkey

solutions in this context. Few other domestic options

include Aqua Engineering (Gujarat), Osaw Agro

(Ambala), etc. Compressors of Atlas Copco, ELGI or of

similar repute make are highly preferred by millers to

support color sorting and packaging operations and to

support other pneumatic function.

Engineering of an Atta Chakki plant or Roller Flour Mill


atta chakki mills have sound plant

engineering, many other mills suffer from

improper set-up. On several occasion,

wrong engineering leads to unnecessary

material travel also leading to high energy

costs, low sanitation, low efficiency,

additional manual interventions, increased

accident risks, low scope of

expansion/modernization, etc.

Most mills have manual or semi-automatic

processes. Though this has helped local

employment, yet some non-skill human

interventions need up-scaling. Further, flour

being highly sensitive to contamination,

high manual interventions lead to increased

risks.

depends on several factors such as size/capacity,

technology, type of raw material and level of

automation. The design decisions have a tremendous

impact on operational sanitation and maintenance. The

plant layout should present a smooth, orderly flow of

raw materials or ingredients through each manufacturing

phase on to the storage of the finished product.

All processes in flour mill can be optimized and

controlled through control panel i.e. automation.

Process optimization refers to operate plant optimally

with economic performance in terms of productivity

and yields. It also avoids human errors. Scada systems

are now integral part of flour mill industry. Key turnkey

plant suppliers like Buhler, Bansal Group, Choyal,

Fowler Westrup, etc provide solutions on this front as

well.


Chapter 5: Appropriate technology options

4.4. Appropriate technology options 4.4.1. Silo storage facility

Poor storage facility leads to infestation by pests

depending on various factors like moisture content of

grain, relative humidity, temperature, storage,

structures, fumigation frequency etc. Silos play a

critical role in this context and may be considered as

an essential part of a pre-cleaning line.

The silo system for wheat should ideally be built or

configured according to DIN 1055 standards made in

galvanized steel of 450 GSM (grammas per cm square

ft size coating). Galvanized steel of 450 GSM will

ensure longer life span of even 15-20 years of silos. Quality of raw material stored in silos is stored in

bulk directly in silos without use of gunny bags. This ensures reduced loss due to rodents, wastage etc.

Typically, a 50 MT capacity silo comes with diameter of about 3.82 meters with height of over 11.03

meters and capacity of about 82.13 cu. meters. This volume can hold wheat of 50 MT based on bulk

density @ 600 kg/ m3 and 3% compaction. The silo comprises of shallow corrugated panels, galvanized

outside stiffeners made from high tensile steel, hopper supporting and leg structure hot dipped

galvanized protection, vertical and roof ladder.

Silo accessories include sensors, that is, vibratory fork type high and low level indicators provided for

indicating the high and low levels of grain in a silo and discharge gates in terms of manually operated

screw type discharge gates provided in the bottom of the silo for controlling the flow of grain. In

addition, accessories include catwalks, goal post and silo cap support (for supporting the overhead chain

conveyor), receiving hopper, bucket elevator, supporting structure for elevator and holding bin for

cleaner; cyclone, rotary air lock, chain conveyors made of GI steel; transfer chutes, ducting, spouts and

waste product chutes. Equipment suppliers such as Fowler Westrup India Pvt. Ltd., Rostfrie Steels,

Westeel Silos, Buhler Group, Milltec Machinery, Bansal Group etc. have an established reputation in the

field of galvanized silos.


4.4.2. Pre-cleaning and Main Cleaning Line

Major goal of wheat cleaning is to remove non-wheat

material (like metal, foreign material (debris), stones, grains

other than wheat (soybean, corn, sorghum, etc. and weed

Seeds), to remove wheat not-fit for Milling (i.e. shrunken &

broken or diseased & damaged). This is highly important to

ensure the premium quality of final products- i.e. atta, rawa,

maida, etc. Efficient cleaning ensures decreased infestation

risks, improved sanitation and dust control and decreased

microbial growth. It also improves flow of grain through the

bins and increases storage life of grain. An efficient material

movement and aspiration system is equally important to get quality output.

Impurities in wheat are separated from wheat based on some

physical differences which aid their removal. These differences

primarily include magnetic properties, size and shape, density,

friability (easily broken by impact) and surface characteristics

(color and texture). Below are the machines that enable

removal of such impurities on basis of their properties:

Drum Sieve: A quality drum sieve

machine is used for removing large

impurities from wheat at high

capacities. Careful preliminary cleaning of wheat reduces the wear and tear on

the downstream equipment in the production process. It is effective at

removing rocks, stones, string, paper, timber, product lumps and other large


impurities. Wheat is transferred in the drum sieve through the inlet spout which conveys it into the

perforated screen drum. The screen rotates agitating the material and allowing the good product to fall

through the screen. Oversize material is conveyed to the outlet, assisted by the conveying spiral in the

second screen section, and exits through the oversize product spout. The capacity of the Drum Sieve is

dependent on the nature of the raw material and the contaminants to be removed and screen sizes are

selected to suit the application. Screens are kept clean by a heavy duty brush.

Magnetic Separator: Magnets to remove ferrous metals should be installed at numerous places in every

cleaning section. It is advisable to have a magnet located at the

beginning of the cleaning section to remove metal and thus reduce

the risk of a dust explosion before the grain stream passes the main

machines in the cleaning section. Magnetic separators are employed

for the removal of metal

particles, e.g. nails, wire and

screws. The reliable separating

effect of an efficient magnetic

separator guarantees the highest

level of product, process safety

and eliminates metal particles

from the material being processed. Another advantage resulting

from such superior separation is that potential machine wear during

subsequent processing steps is significantly reduced.

Separator Classifier: A separator classifier, using sieves, removes coarse and fine impurities from the

grain. It also grades a wide range of different materials according

to size. Optionally, an aspiration channel or air recycling aspirator

can be employed to remove low-density particles such as dust, hull

fragments or husks, thereby optimizing the cleaning effect.14 An

efficient separator frees the grain of coarse impurities such as large

kernels, strings, straw, wood, stones and clods of soil, and from

fine impurities like sand or broken grains.

14 Every time grain is moved, dust development is unavoidable due to handling and abrasion among kernels. To

ensure efficient function of the subsequent cleaning equipment, an aspiration channel is used in cleaning process. Doing so greatly improves the performance of sand removal on the separator that follows and positively influences the function of the subsequent machines.


Gravity Separator: An efficient gravity separator will remove foreign seeds from wheat that cannot be

removed by any other method. It also removes mud and

other inert matter as well as broken, shriveled grains and

ergot. Through an efficient gravity separator, weight

differences of as little as 1% can be detected and separated

and particle sizes ranging from 200 microns to 15 millimeters

can be processed. With use of efficient conceived air

distribution, the material being fed through can be precisely

separated into three fractions according to specific gravity;

i.e. high-density (heavy), mixed, and low-density

fractions. This provides accurate controlled separation of any

type of product in flow-able, granular form removing

impurities and unwanted foreign material, or upgrading and classifying the product.

De-Stoner: This machine is applied for the efficient separation of stones and metal, glass, and other

high-density impurities from a stream of grain. An efficient

machine ensures a mud-ball less and stone-less output.

Quality machine also ensures that there will be negligible loss

of wheat and a process of self-cleaning system for maximum

operating efficiency.15

Machine Principle: Gravity-fed grain is spread by a feeder,

which also acts as an air seal, across the entire width of the

machine. On the perspiration screen, the product stream is

stratified by the oscillating motion of the screen and the air

flowing through the product from bottom to top according

to its specific gravity. The lighter particles float at the top,

while the heavy particles, including stones, settle to the bottom of the product stream. The heavy

15 Alternatively, a “Combi-Cleaner” is often used instead of an individual separator and destoner. The Combi-

Cleaner combines the functions of four cleaning machines (separator, concentrator, destoner, and aspiration channel) and allows a space- saving design in the cleaning section. Foreign material is removed by this machine according to- size (materials larger and smaller than the wheat), density (dense materials such as stones), and weight (materials lighter than wheat, such as husk and chaff).


particles flow upward and are fed to the final separation zone of the bottom destoning screen. Final

separation of the stones from the grain is accomplished by a countercurrent of air. The stone-free grain

floats on cushions of air toward the product outlet. Discharge occurs through rubber squeeze valves.

Scourer: A scourer uses surface abrasion to remove trichomes (wheat brush hairs) and surface

contamination (dirt). Diseased kernels are easily broken apart

using the machine. Surface contaminants are then separated using

aspiration following the scouring step. In the wheat scourer, after

striking of string board and friction of sieve, impurities on surface

of wheat seed are efficiently cleaned and wheat skin will be wiped

out, which can increase the flour precision. It eliminates the dust,

the arista and beards from the kernels and furthermore, it

crumbles insects and detaches empty kernels and lumps of mud.

An intensive friction and rubbing action between the kernels, the

cover and the paddle type beaters will reduce the bacterial

potential in the flour.

Entoleter: Insect damaged wheat and other impurities such as

mud balls can be destroyed and separated by impact in an

Entoleter. The process principle involves separation by impact

(friability). Basically, wheat is impacted by pins attached to the

surface of a spinning rotor. Infested kernels are more friable that

intact wheat kernels and can easily be broken apart in the entoleter.

Aspiration is used to lift the broken materials away from the clean

wheat.

Color Sorter: Post the above cleaning process, color sorting is required for separating unwanted

contamination and foreign material from good material based

on color and type. In the color sorting process, wheat to be

sorted is fed into the hopper located on a vibrating plate. The

plate then spreads it and carries it through slanting sections,

where it is further separated. The product then falls through an

analysis section where each particle is checked by two optical

devices facing each other. The characteristic electrical signal for

each color is conveyed to a control unit which converts this

signal, should non-designated particles be present; these are

shut-off to the discard bin by means of an

air burst fired by ejectors. Product

considered good is instead dropped into

the good product hopper. The process of

color sorting depends upon the principle

of differentiating the color of foreign

material from the good one by using


advanced CCD or high resolution sensors which use image capturing process to check these unwanted /

discolored or defected grains. The defects are removed at high speeds without any human interface.

Sorters are often controlled by micro-processors and their sophisticated software allows the use of

hundred different sorting programs storable on board.

Intensive Dampener: A dampener is applied in wheat milling for the intensive, homogenous

dampening of grain, thus conditioning the grain optimally for

the grinding process. Dampening is the process of water

addition to wheat to ensure optimum preparation for the

milling process. The addition of water followed by a specified

resting time (in millers’ terms, tempering time) ensures the

penetration of the water into the bran layers and into the

bordering zones between the bran and endosperm. The

increased moisture content in the bran layers results in

toughening of the bran and prevents these fiber layers from

breaking into small pieces. The water that penetrates below

the bran layers into the endosperm creates tensions within the

kernel that allow a clean separation of endosperm and bran. In

general, the higher the moisture content at the mill, the better the bran layers of the kernel can be

separated from the endosperm. However, the moisture content is usually restricted to customer

specification. If the initial moisture content of the wheat is very low, a pre-dampening system is

necessary to reach the desired moisture content for processing. Also as the raw wheat fluctuates in

moisture content, the use of efficient moisture controller is highly recommended to achieve stable

milling conditions. After conditioning, wheat- surface treatment plays an important role in minimizing

the bacterial content in products. Hence a second set of scourer must also be used post conditioning.

Aspiration System in Cleaning Plant: A good aspiration system is required to maintain cleanliness,

safety, sanitation, and efficient operation of the wheat intake, pre-cleaning, and cleaning of the wheat in

the cleaning house. Proper dust control is necessary to maintain industrial safety and an acceptable work


environment. Maintaining all cleaning and conveying elements under a slight vacuum or negative

pressure helps prevent leakage of dust into the atmosphere. Maintaining the proper air requirement in

gravity- based cleaning equipment is essential for their basic function.

The aspiration system comprises a fan, a dust collector, and a network of ducts that is carefully designed

and well- distributed to connect all equipment, conveying elements, and various other dust- generating

sources. The branches of the duct work are designed to provide the necessary air volume at an

appropriate pressure. Air requirements are different for different pieces of equipment and conveying

elements. This design is achieved partly by appropriately sizing the ducts and selecting the fan and dust

collector. System air- volume requirements are calculated by adding the air volumes required by the

various pieces of equipment and the exhaust connections on conveying elements. The total system air-

pressure requirements are calculated by adding the pressure required at various connecting points to the

calculated pressure losses resulting from resistance along the ducting system. This approach helps in

selection of a fan of appropriate size. The main duct work is connected to the dust collector, which has

filter bags to entrap all dust particles from the dust-laden air that passes through it. The suction side of

the fan is connected to the dust collector, providing the required air under suction, or negative pressure,

while the other end, which blows air out, is vented out of the building.

As their physical locations are far apart, it is more efficient to incorporate a common aspiration system

for the intake, pre-cleaning, and storage of wheat and separate systems for main cleaning, as common

system contributes to pressure losses because of resistance over a long stretch of ducting. This approach

is necessary because these systems may warrant different air requirements; some gravity- based cleaning

equipment requires large volumes of air at elevated pressures to maintain processing performance.

4.4.3. Milling and Packaging Line

a. Roller Mill: In a roller flour mill, each roller mill is a double machine that features two grinding

passages separated from each other on either

side of the machine. Grinding is done by

centrifugally cast rolls that are equipped either

with flutes (corrugations) or with a frosted

(smooth) surface. In durum wheat milling, only

fluted rolls are used; for producing fine

semolina, some frosted rolls also are used. The

differential speed of rolls is important for

creating a scratching effect rather than a pure

pressing action. The scratching effect results in

the production of a higher number of coarse

particles (semolina particles) compared to fine

particles (flour). The target in flour milling is to reduce flour production to a minimum. The

roller mill is constructed to ensure full accessibility for maximum sanitation. All covers can be

opened for thorough, time- efficient manual cleaning. To satisfy the generally high sanitation

requirements in milling, noncorrosive materials are used to avoid the need for painting of

machine surfaces. Isolation of machine components further enhances sanitation, as the

possibility of mold development is greatly reduced.


Besides the traditional four- roller mill, the eight- roller mill also has found its way into modern

plants. Eight- roller mills grind the product in two passes without a sifting step in between. The

main reason for using eight- roller mills is improved mill economics, because the need for

intermediate transportation of product is reduced. The overdrive system is equipped with tooth

belts that eliminate the need for oil, which was the case for helical gears on older roller- mill

models. The eight- roller mill is primarily used for the head breaks and the semolina reduction

system. In these positions, the eight- roller mill significantly reduces the air and therefore the

power consumption of the pneumatic conveying system.

The product of the breaker rolls passes through metal sieves to separate it into three categories.

The finest material resembles coarse flour and is known as middlings or farina. Larger pieces of

the interior are known as semolina. The third category consists of pieces of the interior which

are still attached to the bran. The middlings move to the middlings purifier and the other

materials move to another pair of breaker rolls. About four or five pairs of breaker rolls are

needed to produce the necessary amount of middlings. The middlings purifier moves the

middlings over a vibrating screen. Air is blown up through the screen to remove the lighter

pieces of bran which are mixed with the middlings. The middlings pass through the screen to

be more finely ground. Middlings are ground into flour by pairs of large, smooth metal rollers.

Each time the flour is ground it passes through sieves to separate it into flours of different

fineness. These sieves are made of metal wire when the flour is coarse, but are made of nylon or

silk when the flour is fine. By sifting, separating, and regrinding the flour, several different

grades of flour are produced at the same time. These are combined as needed to produce the

desired final products.

b. Grinding for Chakki Atta: In general, ‘cast iron discs’ have

replaced the granite

stones with more

efficient grinding and

throughput capacities.

However, a section of

consumers still prefers

stone milled atta. Hence,

many modern atta chakki

units have adopted

precision made stone chakkis. In this context, Choyal make

stones from Rajasthan have particularly gained preference.

Stone and shaft are in taper shape so that both get adjusted automatically when the runner

stone is placed on the shaft. Importantly, the machine gives maximum output and requires little

maintenance.

Also, in this context, one of the key technology providers- Buhler Group has designed a stone-

less grinding system- “PesaMill” recently which promises the better output in terms of quality,

taste and other features of whole meal wheat. The technology, apparently, is energy saving and

uses less space as compared to traditional large chakkis (one Pesamill replaces 20 chakki mills).

Since the technology is fairly new and installed in only few plants across India, more reviews

could enable selection of same by investors.


c. Plansifter: A plansifter is equipped with sieve stacks, to separate the mixture of ground

products from roller mills into fractions of various

sizes. Modern plan sifters come in sizes from two- sieve

stacks up to Ten- sieve stacks per machine. Each sieve

stack is housed in an individual compartment and

typically receives product from one grinding passage.

Alternatively, plan sifter compartments can be divided

to receive stock from up to four passages per

compartment. Dividing of sifting compartments is

done only if very low stock quantities are fed and only

if a limited number of granulation divisions are

required. For sanitation purposes, plansifters should

have product-touching surfaces made out of noncorrosive material such as stainless steel or

food- grade plastics like polyurethane. The compartments are fully isolated to eliminate

condensation problems and associated mold growth. One of the latest developments is the

replacement of old wooden sieve frames with frames made out of polyurethane. This, as a

principle, eliminates any organic materials that come into contact with intermediate and finished

products. The new polyurethane sieve frames are made from a single piece without the screws

or other metal parts which are typically used to connect parts in a wooden sieve frame. The

absence of these potentially dangerous contaminants further supports the food safety approach.

The insertion frame on which the sieve cover is glued also is made out of stainless steel.

d. Purifiers: Purifiers are used to separate bran particles of the same size but different density

from heavier clean semolina particles. The purifier

plays a central role in milling, as a clean semolina

finished product can be produced only with effective

purification. The purifier has several layers of screens

that allow air to pass through the sieve mesh but

enable heavy semolina to drop through the sieves

counter to the airflow. The strength of the airflow is

chosen through adjustment of air flaps, such that light

composite semolina (semolina with bran particles

attached) as well as very light bran particles receive

sufficient lift to keep them from dropping through the mesh openings. The choice of sieve sizes

is determined by the granulation spectrum and the product loading on top of the sieves. Sieves

that are too coarse allow light, bran- contaminated particles to drop through and contaminate

the clean semolina. Sieves that are too fine result in clean semolina over tailing to the top of the

sieves together with light bran particles. Purifiers are arranged as double machines with three

sieve layers per side. This multilayer design results in re-purification of stocks within the same

machine as the semolina drops from one layer through to the next. In the long history of the

purifiers, the number of sieve layers increased from the original single layer via the double layer

to today’s triple- layer machines as the primary driver to meet ever- increasing quality


requirements. Energy savings have been the second driver in the development of multilayer

machines; the same process air is used for all three decks, resulting in cost- effective operation.

e. Weighing and dosing systems: Accurate weighers are most important for recording the

weight of purchased raw materials and sold finished products. Correct recording of these

weights directly influences the success of the bottom line. Scales are used for control of the

performance of the various processing steps, such as cleaning, conditioning, and milling, as well

as to determine moisture loss in the finished- product area.

f. Air systems in the mill: A mill contains three types of air systems. Aspiration systems in the

mill enable machines like purifiers to work properly and also are used to keep systems from

emitting dust. Aspiration is used to control airflow by ensuring that the negative pressure inside

machines and conveying elements is higher than the outside pressure. Pneumatic systems are

primarily used to lift product from roller mills to plansifters within the milling system. These

air-based conveying systems not only transport product but at the same time provide aspiration

for the roller mills. Compressed- air systems are used throughout the plant to provide operation

air for pneumatic valves, slides, scales, and bagging equipment. All these air systems are major

energy users, and lately great effort has been made to reduce their energy consumption.

Optimized calculations and usage of frequency converters for compressors, rinsing air systems,

and pneumatic conveying systems have resulted in energy savings.

g. Packaging of products and by-Products: In Wholesale Packaging, automatic bagging

equipment consists of a microprocessor controller, load

cells, weigher and discharge chute with bag holder. The

Microprocessor controls the whole machine to achieve

and deliver the target weights i.e., 10, 25/30, 50

KG etc. and can be easily programmed by the user for

required target weights. Once the material reaches the

target weight, it discharges into the bag. The filled bag is

then de-clamped on slat conveyor which helps the bag to

reach the Stitching Machine for bag closing.

A user friendly interface allows the operator to pre-select

settings to obtain optimum operation and simple, easy

adjustment of bag width and length to accommodate different bag sizes. This equipment

ensures saving of labor hours and is easy to operate, hence,

increases productivity.

In Consumer packaging, a Vertical-Form-Fill-Seal (VFFS)

machines helps in packaging of wheat flour in 1, 2 and 5

kg sizes. The equipment produces pillow and other

pouches type like block bottom, etc with center seal. One

kg capacity pouches can be filled at the rate of even 24-26

pouches per minute. Typically, machine construction is of

M.S. and product contact parts are of S.S. The equipment


comes with forming collar and pipe, pneumatic cylinders to perform sealing, knife to cut and

seal cooling, splicing unit for easy roll change over, etc.

Both machines require a compressor and voltage stabilizer (in case of abnormal fluctuations in

power supply). In both types of packaging, an augur filler type filling system is required. It is a

filling mechanism which measures out a product, usually powder or free flowing solids, using an

auger which is rotated for a predetermined number of revolutions in a conical hopper to

discharge the required volume of product. The main benefit of these machines is their ability to

control dust during the filling operation and are therefore used extensively for powders and

dusty free flowing solids. Fillers of this type are suitable for filling products at both low and

medium speeds.

h. Support Equipments, Engineering and Automation The support structure and equipments

play a highly important role in the performance of the mill.

Based on size, capacity and milling engineering, the support

structure and equipments need to be installed. Since several

machines function on the vibration principle, it is highly

important that support structure is robust and shock

absorbent. In most modern mills, one can easily observe

compliance in this context. Moreover, the key principles

that govern benchmarking in material handling and support

equipments are: high efficiency, low power consumption,

easy and minimum maintenance, durability and long

lifetime, smooth operation and movement direction control

switch for safety precaution. Key suppliers like Buhler, Bansal Group, Choyal, Fowler Westrup,

etc also supply turnkey solutions in this context. Few other domestic options include Aqua

Engineering (Gujarat), Osaw Agro (Ambala), etc. Compressors of Atlas Copco, ELGI or

similar repute make are highly preferred by millers to support color sorting and packaging

operations and to support other pneumatic function.

Engineering of an Atta Chakki plant or Roller Flour Mill depends on several factors such as

size/capacity, technology, type of raw material and level of automation. The design decisions

have a tremendous impact on operational sanitation and maintenance. The plant layout should

present a smooth, orderly flow of raw materials or ingredients through each manufacturing

phase on to the storage of the finished product. Lean manufacturing engineering design which

ensures maximum efficiency, low energy pressures

and adherence to safety norms is the broad

benchmark in the industry.

All processes in flour mill can be optimized and

controlled through control panel i.e. automation.

Process optimization refers to operating the plant

optimally with economic performance in terms of

productivity and yields. It also avoids human errors. Scada systems are now integral part of


flour mill industry. Automation ultimately leads to higher productivity and ease of operation.

New concept of Internet of things (IoT) has a great potential to make manufacturing process

smarter and predictive. The Internet of Things is also becoming a part of food industry and it

cannot be ignored as skilled/ technical workforce will be a challenge for future. IoT as such

monitors system, diagnose problem and provides actionable information which in turn helps

prevent problems both on Grain and Equipment side. It allows the operator to identify a

problem before it happens and take diagnostic action.


Chapter 6: SWOT of technology

The SWOT analysis of the modern technology in Flour milling proposed in the above chapter is as under:

Strength Weakness

Modern technology facilitates higher efficiency

and productivity.

Use of modern storage systems will ensure

proper hygiene and largely reduced incidences of

pilferages, leakages, improper handling of

material, and various other factors that lead to

losses in storage.

Use of modern cleaning methods eliminates

impurities that pose as significant risk to health

and safety.

The use of modern technology may reduce the

yield losses.

Use of modern cleaning methods eliminates

impurities which impact downstream machine

efficiency.

Modern milling and sieving methods facilitate

relatively higher separation of products, thus

ensure higher recovery.

The use of modern technology will enable

production of premium quality flour, and thus

ensure better margins.

Use of modern chakkis with larger capacities and

modern techniques of dressing ensure higher

production and reduced breakdowns.

Modern machines have non-corrosive material

such as stainless steel or food grade plastics,

which further support the food safety approach.

Wheat Flour lends itself to making snack food

items. There are many pasta products such as

vermicelli, macaroni, instant noodles, etc. These

extruded products are meant for direct

consumption and the market for such foods is

growing rapidly.

Modern packaging methods significantly reduce

The adoption rate of latest technology innovation

is low among the millers due high capital

investment involved.

Modern technology with higher capacities also

increases working capital requirements.

Mere adding of few recommended machines in an

existing traditional mill may not yield optimum

results due to capacity mismatch/disequilibrium in

the complete process.

Lack of awareness regarding the latest

innovations in the flour milling is another reason

for low rate of adoption among millers.

Lack of proper backward integration or even

irregular supply of raw material discourages some

entrepreneurs to invest in modern technologies

with large capacities.

Mini and small existing millers have units set up in

limited spaces. Modernization may require larger

area in some cases.

New technologies require manpower to upgrade

their skills for handling operations. In some cases,

such skilled labour may not be easily available

locally or only higher remuneration could attract

such manpower.

Initial high cost could be incurred in launching

flour and other product brands.

Introduction of household flour mills or box

chakkis and wider use by consumers will lead to

lowering of demand in markets.


man hours spent on the activity, while

considerably increasing the accuracy in weighing

and stitches/sealing.

Scientific design and engineering of modern flour

mill facilitates optimum space utilization, reduced

leakages, reduced power consumption (by power

saving in processes), better product output and

manpower safety.

Automation in the mill can decrease the

dependency on the labor contractors. It also

ensures minimum human handling of products.

Automation can also help real-time identification

of problems and immediate trouble shooting.

Opportunity Threat

Scope for technology upgradation.

Key schemes of Central Govt. (like Kisan

Sampada, etc) and State Govt. could be utilized

to set up most modern plants.

Vast scope to invest in dedicated modern

cleaning line to cater to other large flour mills.

GST regime provides a level playing field to

millers in Rajasthan vis-à-vis those of other

states.

Changes in lifestyle, such as longer work hours,

higher disposal incomes, growth in online

purchase, working women, convenience lifestyle,

etc have increased the demand for packaged

flour.

Branding offers huge potential for product

promotion. Most important of course is the

possibility of fortification which can help product

differentiation.

Increased interest in health and nutrition is

creating demand for some properly processed

chakki atta, fortified flours and other packaged

products.

FPOs can invest in mini versions of

recommended technologies, which are developed

by Institutes like CFTRI and even other reputed

private players.

FPOs who upgrade with mini mills will be able to

produce quality products and directly penetrate in

premium markets.

Opportunity to penetrate the growing market of

packaged flour.

Increase market demand with better quality

product- with least contamination

Higher value realization to millers by way of

higher yields and production of premium quality

flour and products.

Automation does leads to lesser jobs (especially

for unskilled jobs).

The largely accepted global concept of ‘Gluten

free diet’ is not favorable to flour mill industry.

Competition with large (including global/national)

players could mean thin margins in marketing of

products.

Rapid developments in contemporary markets

and requirements of the industry may lead to fast

obsolescence.

Technology once obsolete would require re-

investment upon upgradation to latest technology.

Technology breakdown for a longer period may

have much higher cost implications than a labour

intensive firm.

http://pestleanalysis.com/swot-analysis-in-healthcare/


Scope of large scale backward integration with

Farmers Groups/FPOs to integrate procurement

and production and marketing operations.

Opportunity to custom mill for mega players in

market. Custom milling offers three specific

advantages to the atta marketer (1) Ability to

customize atta to the specific requirement of a

particular market (it may involve choosing the

right blend of wheat, milling the wheat to a

specific fineness and adjusting the moisture

levels to suit culinary preferences as well as

geographic conditions); (2) Flexibility to upscale

or downscale production volumes in line with

seasonal variations in demand in the shortest

possible time and (3) a cost advantage due to

differential labour costs structure.


Chapter 7: Indicative project profile for Rajasthan

Indicative project Profiles

This section of the report outlines three project profiles that could be referred by entrepreneurs to select

their most suitable option. Broadly, one micro scale, one small scale and one medium scale investment

option has been showcased primarily to suit the investment capabilities of the entrepreneurs. Section

7.1, 7.2 and 7.3 of this chapter individually showcase the financial feasibility of these projects.

a. Section 7.1 showcases a micro scale model that can be pursued as a guiding model by small

farmers or individual entrepreneurs, farmer groups, farmer producer association/companies.

The technology proposed for this segment involves Mini Semi-Automatic 1000 kg/hour

capacity Atta Milling unit which comprises of a Cleaning machine, Gravity Separator, Pulveriser

Machine, Flour Mill-20" Chakki, material handling equipments and tanks, aspiration system,

cabling and control panel, and packing machine. The total cost of the complete set of Main

P&M, on basis of some referred quotations of leading suppliers in the segment, is Rs. 22.50

Lakhs. This cost is inclusive of taxes, transportation, installation and commissioning charges.

b. Section 7.2 showcases a small scale model, which can be pursued as a guiding model by small

scale entrepreneurs, farmer producer association/companies. The technology proposed for this

segment involves Semi-Automatic 40 TPD Chakki Atta Milling unit which comprises of

Cleaning machines, atta plant section, complete support structure, storage tanks and material

handling equipments, aspiration system, cabling and control panels and bagging machine. The

total cost of the complete set of Main P&M, on basis of some referred quotations of leading

suppliers in the segment, is Rs. 85.38 Lakhs. The cost of Utilities (Weighbridge, RO Plant etc),

on basis of some referred quotations of leading suppliers, is Rs. 35.00 Lakhs. This is inclusive of

taxes, transportation, installation and commissioning charges. Hence, total cost of P&M is Rs.

120.38 Lakhs.

c. Section 7.3 portrays a large scale model, which can be pursued as guiding model by some

medium and large scale entrepreneurs or institutions. The technology proposed for this

segment involves Fully Automatic 150 TPD- Roller Flour Mill & 30 TPD- Chakki Atta Plant.

The main plant and machinery include complete set of machines of the cleaning section, roller

flour milling section, chakki atta plant section, complete support structure, storage tanks and

material handling equipments, aspiration system, cabling and control panels, bagging machine,

pneumatics and automation system and lab equipments. The total cost of the complete set of


Main P&M, on basis of some referred quotations of leading suppliers in the segment, is Rs.

1100.00 Lakhs. The cost of Utilities (Electrical Substation, Weighbridge, RO Plant etc), on basis

of some referred quotations of leading suppliers, is Rs. 100.00 Lakhs. This is inclusive of taxes,

transportation, installation and commissioning charges. Hence, total cost of P&M is Rs. 1200

Lakhs.

7.1. Project Profile 1: Micro Scale Unit 7.1.1. Premises of Calculation- Suggested Model

(a) Details of Technical Civil Works/ Building Cost

Sr. No Particulars Plan Area- Sq. Ft.

Rate/ sq. ft. Amount (in Rupees)

1 Factory Civil and Shed Works 2000 630 1,260,000.00

2 Boundary chain link and minor civil work Lump sum 40,000.00

Total (in Rupees) 1,300,000.00

(b) Plant & Machinery Breakup

Sr. No. Item Capacity Amount (in Rupees)

1 Main Plant & Machinery 1000 kg/hr 2,250,000.00

Total INR 2,250,000.00

The proposed P&M for this segment involves Mini Semi-Automatic 1000 kg/hour capacity Atta Milling

unit which comprises of a Cleaning machine, Gravity Separator, Pulveriser Machine, Flour Mill-20"

Chakki, material handling equipments and tanks, aspiration system, cabling and control panel, and

packing machine. The total cost of the complete set of Main P&M, on basis of some referred quotations

of leading suppliers in the segment, is Rs. 22.50 Lakhs. This is inclusive of taxes, transportation,

installation and commissioning charges.

Other Assumptions

Assumptions

1 Working Hours per day 8 hours

2 Plant Capacity /Day 1000 kg/hr

3 No. of Working Days in a year 300

4 Power Requirement 35 KW

5 Standard Packaging for Main Products & By-Products 5 & 50 Kg Packing

6 Insurance Exp Considered on Plant & Mach, Building 0.5% of Capex

7 Inflation assumed annually 5% annually

8 Debtors 15 Days of Sales

9 Stock of Finished Goods 30 Days of Production

10 Stock of Raw Material 1 Months Consumption

7.1.2. Project Cost

Sr. No. Particulars Amount (in Rupees)

1 Land -

2 Building 1,300,000.00

3 Plant & Machinery 2,250,000.00

4 Misc Fixed Assets 50,000.00


5 Preliminary & Pre operative 25,000.00

6 Working Capital 554,906.00


The Total Project Cost is Rs. 41.80 Lakhs

It is assumed that upon considering the requirement by way of buildings and other civil works, installation of machinery and provision for stocking material, it is perceived that a suitable plot of land will be leased by entrepreneur.

Miscellaneous fixed assets will include furniture & electrical fixtures, etc which are pegged at Rs. 50,000.

Preliminary expenses and Preoperative expenses are pegged to be Rs. 25,000.

The Total Working Capital requirement during the first year of operation is estimated at Rs. 22.19 Lakhs with margin money requirement of Rs. 5.55 Lakhs. Calculations of same are presented in section 7.1.12.

7.1.3. Means of Finance


1 Bank Term Loan 2,000,000.00

2 Partner's Capital 2,179,906.00


It is assumed that Rs. 20.00 Lakhs will be sought as Term Loan from Bank. 7.1.4. Product Schedule Particulars Y1 Y2 Y3 Y4 Y5

Chakki Atta Mill Capacity (MT/Day) 8 8 8 8 8

Working Days in Year 300 300 300 300 300

Annual Wheat Requirement- Chakki Atta Mill (MT) @ 100% CU

2400 2400 2400 2400 2400

Capacity Utilization 60.00% 65.00% 70.00% 75.00% 80.00%

Total Input of Wheat (MT)-Chakki Atta Mill 1440 1560 1680 1800 1920

Output (MT)

Chakki Atta Mill

Chakki Atta 1397 1513 1630 1746 1862

Normal loss (is 3%, 2% impurities and 1% moisture loss)

Tonnes processed / day 8 8 8 8 8

No. of days of operation 180 195 210 225 240

7.1.5. Purchase Schedule Particulars Y1 Y2 Y3 Y4 Y5

Raw Wheat (MT) 1560 1570 1690 1810 1930

Purchase Price (in Rs./MT)

17000 17850 18743 19680 20664

Total Purchases (in Rs.) 26,520,000.00

28,024,500.00

31,675,670.00

35,620,800.00

39,881,520.00


7.1.6. Consumables Packaging Material No. of Bags Cost of Packaging Material

Size Product Rate/

bag

Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5

5 KG Chakki Atta

10 139700 151300 163000 174600 186200 1397000 1513000 1630000 1746000 1862000

50 KG Chakki Atta

18 13970 15130 16300 17460 18620 251460 272340 293400 314280 335160

Total 153670 166430 179300 192060 204820 1,648,460.00

1,785,340.00

1,923,400.00

2,060,280.00

2,197,160.00

7.1.7. Power Requirement The total requirement of the plant (including admin building power req.) is 35 kva. 7.1.8. Water Requirement Water 1000 Litres/day

Total 1000 Litres/day

Cost/KL= Rs. 10/KL

i.e.10 Rs. Daily

7.1.9. Manpower Requirement S. No. Particulars No. Monthly Salary Annual Income Dept.

1 Factory Head 1 8,000.00 96,000.00 factory

2 Accounts Head 1 8,000.00 96,000.00 Admin

3 Plant Operator 1 8,000.00 96,000.00 factory

4 Sales Executives 1 6,000.00 72,000.00 Admin

5 Admin Staff 1 4,000.00 48,000.00 Admin

6 Security Staff 1 6,000.00 72,000.00 Admin

Total 6 40,000.00 480,000.00

7 Helpers 5 300/day factory

Total Manpower 11


7.1.10. Depreciation Schedule Particulars Building Plant & Machinery Misc Fixed assets Total Rs.

Rate of Depreciation 10% 15% 10%

Opening WDV 1,300,000.00 2,250,000.00 50,000.00 3,600,000.00

Total 1,300,000.00 2,250,000.00 50,000.00 3,600,000.00

Dep. For 1st Year 130,000.00 337,500.00 5,000.00 472,500.00

W.D.V. as on II Year 1,170,000.00 1,912,500.00 45,000.00 3,127,500.00

Dep. For 2st Year 117,000.00 286,880.00 4,500.00 408,380.00

W.D.V. as on III Year 1,053,000.00 1,625,620.00 40,500.00 2,719,120.00

Dep. For 3rd Year 105,300.00 243,840.00 4,050.00 353,190.00

W.D.V. as on IV Year 947,700.00 1,381,780.00 36,450.00 2,365,930.00

Dep. For 4th Year 94,770.00 207,270.00 3,650.00 305,690.00

W.D.V. as on V Year 852,930.00 1,174,510.00 32,800.00 2,060,240.00

Dep. For 5th Year 85,290.00 176,180.00 3,280.00 264,750.00

W.D.V. as on VI Year 767,640.00 998,330.00 29,520.00 1,795,490.00

7.1.11. TL Repayment Schedule Loan Amount 2,000,000.00

Rate 10.00% Rs. In Lacs

Monthly Loan amount Monthly Repayment' Interest Total Installment Closing Bal

1 2,000,000.00 33,333.33 16,388.89 49,722.22 1,966,666.67

2 1,966,666.67 33,333.33 16,111.11 49,444.44 1,933,333.33

3 1,933,333.33 33,333.33 15,833.33 49,166.66 1,900,000.00

4 1,900,000.00 33,333.33 15,555.56 48,888.89 1,866,666.67

5 1,866,666.67 33,333.33 15,277.78 48,611.11 1,833,333.33

6 1,833,333.33 33,333.33 15,000.00 48,333.33 1,800,000.00

7 1,800,000.00 33,333.33 14,722.22 48,055.55 1,766,666.67

8 1,766,666.67 33,333.33 14,444.44 47,777.77 1,733,333.33

9 1,733,333.33 33,333.33 14,166.67 47,500.00 1,700,000.00

10 1,700,000.00 33,333.33 13,888.89 47,222.22 1,666,666.67

11 1,666,666.67 33,333.33 13,611.11 46,944.44 1,633,333.33

12 1,633,333.33 33,333.33 13,333.33 46,666.66 1,600,000.00

13 1,600,000.00 33,333.33 13,055.56 46,388.89 1,566,666.67

14 1,566,666.67 33,333.33 12,777.78 46,111.11 1,533,333.33

15 1,533,333.33 33,333.33 12,500.00 45,833.33 1,500,000.00

16 1,500,000.00 33,333.33 12,222.22 45,555.55 1,466,666.67

17 1,466,666.67 33,333.33 11,944.44 45,277.77 1,433,333.33

18 1,433,333.33 33,333.33 11,666.67 45,000.00 1,400,000.00

19 1,400,000.00 33,333.33 11,388.89 44,722.22 1,366,666.67

20 1,366,666.67 33,333.33 11,111.11 44,444.44 1,333,333.33

21 1,333,333.33 33,333.33 10,833.33 44,166.66 1,300,000.00

22 1,300,000.00 33,333.33 10,555.56 43,888.89 1,266,666.67

23 1,266,666.67 33,333.33 10,277.78 43,611.11 1,233,333.33

24 1,233,333.33 33,333.33 10,000.00 43,333.33 1,200,000.00

25 1,200,000.00 33,333.33 9,722.22 43,055.55 1,166,666.67

26 1,166,666.67 33,333.33 9,444.44 42,777.77 1,133,333.33

27 1,133,333.33 33,333.33 9,166.67 42,500.00 1,100,000.00

28 1,100,000.00 33,333.33 8,888.89 42,222.22 1,066,666.67

29 1,066,666.67 33,333.33 8,611.11 41,944.44 1,033,333.33

30 1,033,333.33 33,333.33 8,333.33 41,666.66 1,000,000.00

31 1,000,000.00 33,333.33 8,055.56 41,388.89 966,666.67

32 966,666.67 33,333.33 7,777.78 41,111.11 933,333.33


33 933,333.33 33,333.33 7,500.00 40,833.33 900,000.00

34 900,000.00 33,333.33 7,222.22 40,555.55 866,666.67

35 866,666.67 33,333.33 6,944.44 40,277.77 833,333.33

36 833,333.33 33,333.33 6,666.67 40,000.00 800,000.00

37 800,000.00 33,333.33 6,388.89 39,722.22 766,666.67

38 766,666.67 33,333.33 6,111.11 39,444.44 733,333.33

39 733,333.33 33,333.33 5,833.33 39,166.66 700,000.00

40 700,000.00 33,333.33 5,555.56 38,888.89 666,666.67

41 666,666.67 33,333.33 5,277.78 38,611.11 633,333.33

42 633,333.33 33,333.33 5,000.00 38,333.33 600,000.00

43 600,000.00 33,333.33 4,722.22 38,055.55 566,666.67

44 566,666.67 33,333.33 4,444.44 37,777.77 533,333.33

45 533,333.33 33,333.33 4,166.67 37,500.00 500,000.00

46 500,000.00 33,333.33 3,888.89 37,222.22 466,666.67

47 466,666.67 33,333.33 3,611.11 36,944.44 433,333.33

48 433,333.33 33,333.33 3,333.33 36,666.66 400,000.00

49 400,000.00 33,333.33 3,055.56 36,388.89 366,666.67

50 366,666.67 33,333.33 2,777.78 36,111.11 333,333.33

51 333,333.33 33,333.33 2,500.00 35,833.33 300,000.00

52 300,000.00 33,333.33 2,222.22 35,555.55 266,666.67

53 266,666.67 33,333.33 1,944.44 35,277.77 233,333.33

54 233,333.33 33,333.33 1,666.67 35,000.00 200,000.00

55 200,000.00 33,333.33 1,388.89 34,722.22 166,666.67

56 166,666.67 33,333.33 1,111.11 34,444.44 133,333.33

57 133,333.33 33,333.33 833.33 34,166.66 100,000.00

58 100,000.00 33,333.33 555.56 33,888.89 66,666.67

59 66,666.67 33,333.33 277.78 33,611.11 33,333.33

60 33,333.33 33,333.33 - 33,333.33 -

TOTAL - 966,666.67 362,500.00 1,329,166.67 -

7.1.12. Projected Working Capital Requirement Particulars Y1 Y2 Y3 Y4 Y5

Debtors 1,171,625.00 1,385,475.00 1,567,651.00 1,763,560.00 1,975,152.00

Stock of F.G 1,218,000.00 1,389,150.00 1,574,404.00 1,774,703.00 1,991,106.00

Stock of R.M 2,040,000.00 2,320,500.00 2,624,020.00 2,952,000.00 3,306,240.00

Less Creditor 2,210,000.00 2,335,375.00 2,639,639.00 2,968,400.00 3,323,460.00

Total Working Cap Required 2,219,625.00 2,759,750.00 3,126,436.00 3,521,863.00 3,949,038.00

W.C Margin 554,906.00 689,938.00 781,609.00 880,466.00 987,260.00

W.C Loan 1,664,719.00 2,069,812.00 2,344,827.00 2,641,397.00 2,961,778.00

7.1.13. Sales Schedule Particulars Y1 Y2 Y3 Y4 Y5

Chakki Atta (MT) 1339 1508 1625 1741 1857

Sale Price (in Rs. Per MT)

21000 22050 23153 24311 25527

Total Sales 28,119,000.00 33,251,400.00 37,623,625.00 42,325,451.00 47,403,639.00

7.1.14. Projected Balance Sheet

Particulars Y1 Y2 Y3 Y4 Y5

LIABILITIES

Partner's Capital 2,179,906.00 2,179,906.00 2,179,906.00 2,179,906.00 2,179,906.00

Add: Addition During the Year

- - - - -


Total Capital 2,179,906.00 2,179,906.00 2,179,906.00 2,179,906.00 2,179,906.00

Reserves & Surplus

RACP Grant - - - - -

Profit & Loss

Opening Balance - 828,727.77 2,117,372.23 3,824,069.20 5,967,460.17

Add: Profit after tax 828,727.77 1,288,644.46 1,706,696.97 2,143,390.97 2,616,111.86

Total 828,727.77 2,117,372.23 3,824,069.20 5,967,460.17 8,583,572.03

Secured Loan From Bank 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00

W. Capital Loan 1,664,719.00 2,069,812.00 2,344,827.00 2,641,397.00 2,961,778.00

Current Liability 2,210,000.00 2,335,375.00 2,639,639.00 2,968,400.00 3,323,460.00

Total ( A ) 8,883,352.77

10,702,465.23

12,988,441.20

15,757,163.17

19,048,716.03

ASSETS

Fixed Assets

Gross Block 3,600,000.00 3,127,500.00 2,719,120.00 2,365,930.00 2,060,240.00

Less : Depreciation 472,500.00 408,380.00 353,190.00 305,690.00 264,750.00

Net Block 3,127,500.00 2,719,120.00 2,365,930.00 2,060,240.00 1,795,490.00

Misc Fixed Assets 20,000.00 15,000.00 10,000.00 5,000.00 -

Current Assets

Sundry Debtor 1,171,625.00 1,385,475.00 1,567,651.00 1,763,560.00 1,975,152.00

1,171,625.00 1,385,475.00 1,567,651.00 1,763,560.00 1,975,152.00

Closing Stock

Closing Stock FG 1,218,000.00 1,389,150.00 1,574,404.00 1,774,703.00 1,991,106.00

Closing Stock RM 2,040,000.00 2,320,500.00 2,624,020.00 2,952,000.00 3,306,240.00

3,258,000.00 3,709,650.00 4,198,424.00 4,726,703.00 5,297,346.00

Cash & Bank Balance 1,306,227.77 2,873,220.23 4,846,436.20 7,201,660.17 9,980,728.03

(Including Cash Credit Limit)

Total ( B ) 8,883,352.77

10,702,465.23

12,988,441.20

15,757,163.17

19,048,716.03

7.1.15. Projected Profit and Loss Statement Particulars Y1 Y2 Y3 Y4 Y5

Sales 28,119,000.00 33,251,400.00 37,623,625.00 42,325,451.00 47,403,639.00

Total Sales 28,119,000.00 33,251,400.00 37,623,625.00 42,325,451.00 47,403,639.00

Less:- Opening Stock of F.G. - 1,218,000.00 1,389,150.00 1,574,404.00 1,774,703.00

Add:-Closing Stock of F. G. 1,218,000.00 1,389,150.00 1,574,404.00 1,774,703.00 1,991,106.00

Cost of Finish Goods 29,337,000.00 33,422,550.00 37,808,879.00 42,525,750.00 47,620,042.00

Raw Material Purchased 26,520,000.00 28,024,500.00 31,675,670.00 35,620,800.00 39,881,520.00

Add:- Opening Stock of R.M - 2,040,000.00 2,320,500.00 2,624,020.00 2,952,000.00

Less:-Closing Stock of R.M. 2,040,000.00 2,320,500.00 2,624,020.00 2,952,000.00 3,306,240.00

Cost of Material Consumed 24,480,000.00 27,744,000.00 31,372,150.00 35,292,820.00 39,527,280.00

Total Variable Exp 2,181,698.00 2,368,593.00 2,555,147.00 2,741,181.00 2,927,967.00

Total Fixed Exp 653,680.00 686,365.00 720,682.00 756,718.00 794,555.00

Amortization of Exp 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

Profit Before Int & Dep 2,016,622.00 2,618,592.00 3,155,900.00 3,730,031.00 4,365,240.00

Interest on Term Loan 178,333.33 138,333.34 98,333.33 58,333.33 18,333.34

Interest on W. Capital Loan 166,471.90 206,981.20 234,482.70 264,139.70 296,177.80


Depreciation 472,500.00 408,380.00 353,190.00 305,690.00 264,750.00

Net Profit (before tax) 1,199,316.77 1,864,897.46 2,469,893.97 3,101,867.97 3,785,978.86

Tax 370,589.00 576,253.00 763,197.00 958,477.00 1,169,867.00

Net Profit 828,727.77 1,288,644.46 1,706,696.97 2,143,390.97 2,616,111.86

7.1.16. Projected Cash Flow Statement Sr. Particulars Y1 Y2 Y3 Y4 Y5

1 Revenue

Sales 29,337,000.00 33,422,550.00 37,808,879.00 42,525,750.00 47,620,042.00

2 Term Loan 2,000,000.00 - - - -

W. Capital Loan 1,664,719.00 405,093.00 275,015.00 296,570.00 320,381.00

3 Equity/ Share capital

2,179,906.00 - - - -

4 RACP Investment Grant

- - - - -

5 Increase in Current Liabilities

2,210,000.00 125,375.00 304,264.00 328,761.00 355,060.00

Sub Total (A) 37,391,625.00 33,953,018.00 38,388,158.00 43,151,081.00 48,295,483.00

Cash Outflow (Rs.)

1 Capital Expenditure

a Building and Civil Work

1,300,000.00 - - - -

c Plant and Machinery 2,250,000.00 - - - -

d Land Development & Registration

- - - - -

e Electrification & Misc 50,000.00

f Pre Operative Exp 25,000.00 - - - -

2 Operational Expenditure

a Fixed Cost (Excl. Of Interest)

653,680.00 686,365.00 720,682.00 756,718.00 794,555.00

b Variable Cost 2,181,698.00 2,368,593.00 2,555,147.00 2,741,181.00 2,927,967.00

c Cost of Material Consumed

24,480,000.00 27,744,000.00 31,372,150.00 35,292,820.00 39,527,280.00

3 Loan Repayment - - - - -

a Interest on WC 166,471.90 206,981.20 234,482.70 264,139.70 296,177.80

b Interest on TL 178,333.33 138,333.34 98,333.33 58,333.33 18,333.34

4 Increase in Current Assets

1,171,625.00 213,850.00 182,176.00 195,909.00 211,592.00

Increase in Stock 3,258,000.00 451,650.00 488,774.00 528,279.00 570,643.00

5 Tax 370,589.00 576,253.00 763,197.00 958,477.00 1,169,867.00

6 Differential tax liabilities

Sub Total (B) 36,085,397.23 32,386,025.54 36,414,942.03 40,795,857.03 45,516,415.14

Net Cash Flow (A-B)

1,306,227.77 1,566,992.46 1,973,215.97 2,355,223.97 2,779,067.86

Opening Cash and Bank

1,306,227.77 2,873,220.23 4,846,436.20 7,201,660.17

Cumulative Cash Balance

1,306,227.77 2,873,220.23 4,846,436.20 7,201,660.17 9,980,728.03

7.1.17. Financial Indicators

Indicator Value

Internal Rate of Return 22%


Break Even (Average) 38%

Net Present Value 34.33 Lakhs, Positive above Project Cost

DSCR (Average) 4.54

RoCE (Average) 20%

RoE (Average) 38%

Project Payback Period 3 Years 2 Months

Equity Payback Period 2 Years 1 Month

7.1.18. Conclusion Based on study of technology to be adopted in the project, project economics and high economic viability indicators, it can be concluded that the project is techno-economically viable and sustainable.


7.2. Project Profile 2: Small Scale Unit 7.2.1. Premises of Calculation- Suggested Model

(c) Details of Technical Civil Works/ Building Cost

Sr. No Particulars Plan Area- Sq. Ft.


1 Factory Constructions 15000 800 12,000,000.00

2 Admin and other Civil Con. 2500 800 2,000,000.00

3

Compound Wall, Weighbridge pit and other minor civil work

800,000.00


(d) Plant & Machinery Breakup


1 Main Plant & Machinery 40 TPD 8,538,550.00

2 Utilities (Weighbridge, RO, etc) various 3,500,000.00

Total INR 12,038,550.00

The technology proposed for this segment involves Semi-Automatic 40 TPD Chakki Atta Milling unit

which comprises of Cleaning machines, atta plant section, complete support structure, storage tanks and

material handling equipment, aspiration system, cabling and control panels and bagging machine. The

total cost of the complete set of Main P&M, on basis of some referred quotations of leading suppliers in

the segment, is Rs. 85.38 Lakhs. The cost of Utilities (Weighbridge, RO Plant etc), on basis of some

referred quotations of leading suppliers, is Rs. 35.00 Lakhs. This is inclusive of taxes, transportation,

installation and commissioning charges. Hence, total cost of P&M is Rs. 120.38 Lakhs.

Other Assumptions


2 Plant Capacity /Day 40 TPD



5 Standard Packaging for Main Products & By-Products Main Product- Atta: 5 & 50 Kg Packing By-product- Bran: 100 Kg Packing






7.2.2. Project Cost

# Particulars Amount (in Rupees)

1 Land -

2 Building 14,800,000.00


4 Misc Fixed Assets 500,000.00

5 Preliminary & Preoperative 200,000.00

6 Working Capital 3,037,110.00




It is assumed that upon considering the requirement by way of buildings and other civil works, installation of machinery and provision for stocking material, it is perceived that a suitable plot of land will be leased by the entrepreneur.

Miscellaneous fixed assets will include furniture & electrical fixtures, computers, printer, CCD cameras, etc which are pegged at Rs. 500,000.

Preliminary expenses are envisaged in terms of legal & administrative expenses, registration, detailed civil engineering drawings, telephone, stationery, etc. Pre-operative expenses include establishment costs, travel, and overheads during construction period including salaries. These are pegged at Rs. 200,000.


7.2.3. Means of Finance Sr. No. Particulars Amount (in Rupees)

1 Bank Term Loan 20,000,000.00



It is assumed that Rs. 200.00 Lakhs will be sought as Term Loan from Bank. 7.2.4. Product Schedule Particulars Y1 Y2 Y3 Y4 Y5




12000 12000 12000 12000 12000



Output (MT)

Chakki Atta Mill

Chakki Atta 6840 7410 7980 8550 9120

Bran 360 390 420 450 480

Normal loss (is 2%, but same is covered during moisture addition)





Raw Wheat (MT) 7800 7850 8450 9050 9650

Purchase Price (in Rs./MT) 17000 17850 18743 19680 20664

Total Purchases (in Rs.) 132,600,000.00 140,122,500.00 158,378,350.00 178,104,000.00 199,407,600.00

7.2.6. Consumables

Packaging Material No. of Bags Cost of Packaging Material

Size Product Rate/

bag

Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5

5 KG Chakki Atta 10 684000 741000 798000 855000 912000 6840000 7410000 7980000 8550000 9120000

50 KG Chakki Atta 18 68400 74100 79800 85500 91200 1231200 1333800 1436400 1539000 1641600

100 kg

Bran (Chakki)

50 3600 3900 4200 4500 4800 180000 195000 210000 225000 240000

Total 756000 819000 882000 945000 1008000

8,251,200.00

8,938,800.00

9,626,400.00

10,314,000.00

11,001,600.00

7.2.7. Power Requirement The total requirement of the plant (including admin building power req.) is 125 kva. 7.2.8. Water Requirement Water (industrial +consumption/)

4000 Litres/day

Total 4000 Litres/day

Cost/KL= Rs. 10/KL

i.e.40 Rs. Daily


7.2.9. Manpower Requirement S. No. Particulars No. Monthly Salary Annual Income Dept.

1 Director/Miller 1 50,000.00 600,000.00 Admin



4 Marketing and Business Development Head 1 45,000.00 540,000.00 Admin

5 Product and Quality Assurance Manager 1 45,000.00 540,000.00 factory

6 Plant Operators 2 25,000.00 600,000.00 factory

7 Fitters 1 8,000.00 96,000.00 factory

8 Accountant 1 10,000.00 120,000.00 Admin



11 Storekeeper 1 10,000.00 120,000.00 factory


Total 16 316,000.00 4,488,000.00

13 Helpers 15 300/day factory

Total Manpower 31



Opening WDV 14,800,000.00 12,038,550.00 500,000.00 27,338,550.00

Total 14,800,000.00 12,038,550.00 500,000.00 27,338,550.00

Dep. For 1st Year 1,480,000.00 1,805,782.50 50,000.00 3,335,782.50

W.D.V. as on II Year 13,320,000.00 10,232,767.50 450,000.00 24,002,767.50

Dep. For 2st Year 1,332,000.00 1,534,920.00 45,000.00 2,911,920.00

W.D.V. as on III Year 11,988,000.00 8,697,847.50 405,000.00 21,090,847.50

Dep. For 3rd Year 1,198,800.00 1,304,680.00 40,500.00 2,543,980.00

W.D.V. as on IV Year 10,789,200.00 7,393,167.50 364,500.00 18,546,867.50

Dep. For 4th Year 1,078,920.00 1,108,980.00 36,450.00 2,224,350.00

W.D.V. as on V Year 9,710,280.00 6,284,187.50 328,050.00 16,322,517.50

Dep. For 5th Year 971,030.00 942,630.00 32,810.00 1,946,470.00

W.D.V. as on VI Year 8,739,250.00 5,341,557.50 295,240.00 14,376,047.50

7.2.11. TL Repayment Schedule Loan Amount

20,000,000.00


Monthly Loan amount Monthly Repayment'

Interest Total Installment

Closing Bal

1 20,000,000.00 333,333.33 163,888.89 497,222.22 19,666,666.67

2 19,666,666.67 333,333.33 161,111.11 494,444.44 19,333,333.33

3 19,333,333.33 333,333.33 158,333.33 491,666.66 19,000,000.00

4 19,000,000.00 333,333.33 155,555.56 488,888.89 18,666,666.67

5 18,666,666.67 333,333.33 152,777.78 486,111.11 18,333,333.33

6 18,333,333.33 333,333.33 150,000.00 483,333.33 18,000,000.00

7 18,000,000.00 333,333.33 147,222.22 480,555.55 17,666,666.67

8 17,666,666.67 333,333.33 144,444.44 477,777.77 17,333,333.33

9 17,333,333.33 333,333.33 141,666.67 475,000.00 17,000,000.00


10 17,000,000.00 333,333.33 138,888.89 472,222.22 16,666,666.67

11 16,666,666.67 333,333.33 136,111.11 469,444.44 16,333,333.33

12 16,333,333.33 333,333.33 133,333.33 466,666.66 16,000,000.00

13 16,000,000.00 333,333.33 130,555.56 463,888.89 15,666,666.67

14 15,666,666.67 333,333.33 127,777.78 461,111.11 15,333,333.33

15 15,333,333.33 333,333.33 125,000.00 458,333.33 15,000,000.00

16 15,000,000.00 333,333.33 122,222.22 455,555.55 14,666,666.67

17 14,666,666.67 333,333.33 119,444.44 452,777.77 14,333,333.33

18 14,333,333.33 333,333.33 116,666.67 450,000.00 14,000,000.00

19 14,000,000.00 333,333.33 113,888.89 447,222.22 13,666,666.67

20 13,666,666.67 333,333.33 111,111.11 444,444.44 13,333,333.33

21 13,333,333.33 333,333.33 108,333.33 441,666.66 13,000,000.00

22 13,000,000.00 333,333.33 105,555.56 438,888.89 12,666,666.67

23 12,666,666.67 333,333.33 102,777.78 436,111.11 12,333,333.33

24 12,333,333.33 333,333.33 100,000.00 433,333.33 12,000,000.00

25 12,000,000.00 333,333.33 97,222.22 430,555.55 11,666,666.67

26 11,666,666.67 333,333.33 94,444.44 427,777.77 11,333,333.33

27 11,333,333.33 333,333.33 91,666.67 425,000.00 11,000,000.00

28 11,000,000.00 333,333.33 88,888.89 422,222.22 10,666,666.67

29 10,666,666.67 333,333.33 86,111.11 419,444.44 10,333,333.33

30 10,333,333.33 333,333.33 83,333.33 416,666.66 10,000,000.00

31 10,000,000.00 333,333.33 80,555.56 413,888.89 9,666,666.67

32 9,666,666.67 333,333.33 77,777.78 411,111.11 9,333,333.33

33 9,333,333.33 333,333.33 75,000.00 408,333.33 9,000,000.00

34 9,000,000.00 333,333.33 72,222.22 405,555.55 8,666,666.67

35 8,666,666.67 333,333.33 69,444.44 402,777.77 8,333,333.33

36 8,333,333.33 333,333.33 66,666.67 400,000.00 8,000,000.00

37 8,000,000.00 333,333.33 63,888.89 397,222.22 7,666,666.67

38 7,666,666.67 333,333.33 61,111.11 394,444.44 7,333,333.33

39 7,333,333.33 333,333.33 58,333.33 391,666.66 7,000,000.00

40 7,000,000.00 333,333.33 55,555.56 388,888.89 6,666,666.67

41 6,666,666.67 333,333.33 52,777.78 386,111.11 6,333,333.33

42 6,333,333.33 333,333.33 50,000.00 383,333.33 6,000,000.00

43 6,000,000.00 333,333.33 47,222.22 380,555.55 5,666,666.67

44 5,666,666.67 333,333.33 44,444.44 377,777.77 5,333,333.33

45 5,333,333.33 333,333.33 41,666.67 375,000.00 5,000,000.00

46 5,000,000.00 333,333.33 38,888.89 372,222.22 4,666,666.67

47 4,666,666.67 333,333.33 36,111.11 369,444.44 4,333,333.33

48 4,333,333.33 333,333.33 33,333.33 366,666.66 4,000,000.00

49 4,000,000.00 333,333.33 30,555.56 363,888.89 3,666,666.67

50 3,666,666.67 333,333.33 27,777.78 361,111.11 3,333,333.33

51 3,333,333.33 333,333.33 25,000.00 358,333.33 3,000,000.00

52 3,000,000.00 333,333.33 22,222.22 355,555.55 2,666,666.67

53 2,666,666.67 333,333.33 19,444.44 352,777.77 2,333,333.33

54 2,333,333.33 333,333.33 16,666.67 350,000.00 2,000,000.00

55 2,000,000.00 333,333.33 13,888.89 347,222.22 1,666,666.67

56 1,666,666.67 333,333.33 11,111.11 344,444.44 1,333,333.33

57 1,333,333.33 333,333.33 8,333.33 341,666.66 1,000,000.00

58 1,000,000.00 333,333.33 5,555.56 338,888.89 666,666.67

59 666,666.67 333,333.33 2,777.78 336,111.11 333,333.33

60 333,333.33 333,333.33 - 333,333.33 0.00

TOTAL - 9,666,666.67 3,625,000.00 13,291,666.67 -



Debtors 6,360,938.00 7,525,875.00 8,511,226.00 9,578,797.00 10,728,792.00

Stock of F.G 6,637,500.00 7,552,125.00 8,558,082.00 9,602,311.00 10,756,900.00

Stock of R.M 10,200,000.00

11,602,500.00

13,120,100.00 14,760,000.00

16,531,200.00

Less Creditor 11,050,000.00

11,676,875.00

13,198,196.00 14,842,000.00

16,617,300.00

Total Working Cap Required

12,148,438.00

15,003,625.00

16,991,212.00 19,099,108.00

21,399,592.00

W.C Margin 3,037,110.00 3,750,906.00 4,247,803.00 4,774,777.00 5,349,898.00

W.C Loan 9,111,328.00 11,252,719.00 12,743,409.00

14,324,331.00 16,049,694.00

7.2.13. Sales Schedule Particulars Y1 Y2 Y3 Y4 Y5

Chakki Atta (MT)

6555 7386 7956 8527 9096


22500 23625 24806 26046 27348

Chakki Atta Sales

147,487,500.00 174,494,250.00 197,356,536.00 222,094,242.00 248,757,408.00

Bran (Chakki) (MT)

345 389 418 449 479


15000 15750 16538 17365 18233

Bran (Chakki) Sales

5,175,000.00 6,126,750.00 6,912,884.00 7,796,885.00 8,733,607.00

Total Sales 152,662,500.00 180,621,000.00 204,269,420.00 229,891,127.00 257,491,015.00

7.2.14. Projected Balance Sheet


LIABILITIES



- - - - -

Total Capital 10,575,660.00 10,575,660.00 10,575,660.00 10,575,660.00 10,575,660.00

Reserves & Surplus


Profit & Loss

Opening Balance

- 9,040,864.37 20,132,576.13 34,461,203.90 52,286,650.47

Add: Profit after tax

9,040,864.37 11,091,711.76 14,328,627.77 17,825,446.57 21,598,815.26

Total 9,040,864.37 20,132,576.13 34,461,203.90 52,286,650.47 73,885,465.73

Secured Loan From Bank

20,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00


W. Capital Loan

9,111,328.00 11,252,719.00 12,743,409.00 14,324,331.00 16,049,694.00

Current Liability

11,050,000.00 11,676,875.00 13,198,196.00 14,842,000.00 16,617,300.00

Total ( A ) 59,777,852.37 73,637,830.13 90,978,468.90 112,028,641.47 137,128,119.73

ASSETS

Fixed Assets

Gross Block 27,338,550.00 24,002,767.50 21,090,847.50 18,546,867.50 16,322,517.50

Less : Depreciation

3,335,782.50 2,911,920.00 2,543,980.00 2,224,350.00 1,946,470.00

Net Block 24,002,767.50 21,090,847.50 18,546,867.50 16,322,517.50 14,376,047.50

Misc. Fixed Assets

160,000.00 120,000.00 80,000.00 40,000.00 -

Current Assets

Sundry Debtor 6,360,938.00 7,525,875.00 8,511,226.00 9,578,797.00 10,728,792.00

6,360,938.00 7,525,875.00 8,511,226.00 9,578,797.00 10,728,792.00

Closing Stock

Closing Stock FG

6,637,500.00 7,552,125.00 8,558,082.00 9,602,311.00 10,756,900.00

Closing Stock RM

10,200,000.00 11,602,500.00 13,120,100.00 14,760,000.00 16,531,200.00

16,837,500.00 19,154,625.00 21,678,182.00 24,362,311.00 27,288,100.00

Cash & Bank Balance

12,416,646.87 25,746,482.63 42,162,193.40 61,725,015.97 84,735,180.23


Total ( B ) 59,777,852.37 73,637,830.13 90,978,468.90 112,028,641.47 137,128,119.73

7.2.15. Projected Profit and Loss Statement


Total Sales 152,662,500.00 180,621,000.00 204,269,420.00 229,891,127.00 257,491,015.00

Less:- Opening Stock of F.G.

- 6,637,500.00 7,552,125.00 8,558,082.00 9,602,311.00

Add:-Closing Stock of F. G.

6,637,500.00 7,552,125.00 8,558,082.00 9,602,311.00 10,756,900.00

Cost of Finish Goods

159,300,000.00 181,535,625.00 205,275,377.00 230,935,356.00 258,645,604.00

Raw Material Purchased

132,600,000.00 140,122,500.00 158,378,350.00 178,104,000.00 199,407,600.00

Add:- Opening Stock of R.M

- 10,200,000.00 11,602,500.00 13,120,100.00 14,760,000.00

Less:-Closing Stock of R.M.

10,200,000.00 11,602,500.00 13,120,100.00 14,760,000.00 16,531,200.00

Cost of Material Consumed

122,400,000.00 138,720,000.00 156,860,750.00 176,464,100.00 197,636,400.00

Total Variable Exp

12,297,713.00 15,582,705.00 16,830,147.00 18,087,456.00 19,354,655.00

Total Fixed 5,449,499.00 5,721,974.00 6,008,074.00 6,308,480.00 6,623,905.00


Exp

Amortization of Exp

40,000.00 40,000.00 40,000.00 40,000.00 40,000.00

Profit Before Int & Dep

19,112,788.00 21,470,946.00 25,536,406.00 30,035,320.00 34,990,644.00

Intt on Term Loan

1,783,333.33 1,383,333.34 983,333.33 583,333.33 183,333.34

Intt on W. Capital Loan

911,132.80 1,125,271.90 1,274,340.90 1,432,433.10 1,604,969.40

Depreciation 3,335,782.50 2,911,920.00 2,543,980.00 2,224,350.00 1,946,470.00

Net Profit (Before Tax)

13,082,539.37 16,050,420.76 20,734,751.77 25,795,203.57 31,255,871.26

Tax 4,042,505.00 4,959,580.00 6,407,038.00 7,970,718.00 9,658,064.00

Net Profit 9,040,034.37 11,090,840.76 14,327,713.77 17,824,485.57 21,597,807.26

7.2.16. Projected Cash Flow Statement Sr. Particulars Y1 Y2 Y3 Y4 Y5

1 Revenue

Sales 159,300,000.00

181,535,625.00

205,275,377.00

230,935,356.00

258,645,604.00

2 Term Loan 20,000,000.00

-

-

-

-

W. Capital Loan 9,111,328.00

2,141,391.00

1,490,690.00

1,580,922.00

1,725,363.00

3 Equity/ Share capital

10,575,660.00

-

-

-

-


-

-

-

-

-


11,050,000.00

626,875.00

1,521,321.00

1,643,804.00

1,775,300.00

Sub Total (A) 210,036,988.00

184,303,891.00

208,287,388.00

234,160,082.00

262,146,267.00

Cash Outflow (Rs.)


a Building and Civil Work

14,800,000.00

-

-

-

-

c Plant and Machinery

12,038,550.00

-

-

-

-


-

-

-

-

-

e Electrification & Misc

500,000.00

f Pre Operative Exp 200,000.00

-

-

-

-



5,449,499.00

5,721,974.00

6,008,074.00

6,308,480.00

6,623,905.00

b Variable Cost 12,297,713.00

15,582,705.00

16,830,147.00

18,087,456.00

19,354,655.00



122,400,000.00

138,720,000.00

156,860,750.00

176,464,100.00

197,636,400.00

3 Loan Repayment -

-

-

-

-

a Interest on WC 911,132.80

1,125,271.90

1,274,340.90

1,432,433.10

1,604,969.40

b Interest on TL 1,783,333.33

1,383,333.34

983,333.33

583,333.33

183,333.34


6,360,938.00

1,164,937.00

985,351.00

1,067,571.00

1,149,995.00

Increase in Stock 16,837,500.00

2,317,125.00

2,523,557.00

2,684,129.00

2,925,789.00

5 Tax 4,042,505.00

4,959,580.00

6,407,038.00

7,970,718.00

9,658,064.00


Sub Total (B) 197,621,171.13

170,974,926.24

191,872,591.23

214,598,220.43

239,137,110.74

Net Cash Flow (A-B)

12,415,816.87

13,328,964.76

16,414,796.77

19,561,861.57

23,009,156.26

Opening Cash and Bank

12,415,816.87

25,744,781.63

42,159,578.40

61,721,439.97


12,415,816.87

25,744,781.63

42,159,578.40

61,721,439.97

84,730,596.23


Indicator Value




DSCR (Average) 3.81

RoCE (Average) 30%

RoE (Average) 85%


Equity Payback Period 1 Years 2 Month

7.2.18. Conclusion Based on study of technology to be adopted in the project, project economics and high economic viability indicators, it can be concluded that the project is techno-economically viable and sustainable.


7.3. Project Profile 3: Large Scale Unit 7.3.1. Premises of Calculation- Suggested Model

(e) Details of Technical Civil Works/ Building Cost

# Particulars Plan Area- Sq. Ft.


1 Factory Civil and Shed Works 30000 800 24,000,000.00

2 Admin Office, Labor Quarters, Spares and stocks Storage Room and other Civil Con.

7000 800 5,600,000.00

3 Compound Wall, Weighbridge pit and other civil works

Lump sum 1,400,000.00


(f) Plant & Machinery Breakup


1 Main Plant & Machinery 150 TPD- Roller Flour Mill & 30 TPD- Chakki Atta Plant

110,000,000.00

2 Utilities (Electrical Substation, Weighbridge, RO Plant etc)

Various 10,000,000.00

Total INR 120,000,000.00

The main plant and machinery include complete set of machines of the cleaning section, roller flour

milling section, chakki atta plant section, complete support structure, storage tanks and material

handling equipment, aspiration system, cabling and control panels, bagging machine, pneumatics and

automation system and lab equipment. The total cost of the complete set of Main P&M, on basis of

some referred quotations of leading suppliers in the segment, is Rs. 1100.00 Lakhs. The cost of Utilities

(Electrical Substation, Weighbridge, RO Plant etc), on the basis of some referred quotations of leading

suppliers, is Rs. 100.00 Lakhs. This is inclusive of taxes, transportation, installation and commissioning

charges.

(g) Other Assumptions


2 Plant Capacity /Day 150 TPD- Roller Flour Mill &

30 TPD- Chakki Atta Plant



5 Standard Packaging for Main Products & By-Products Main Products: 50 Kg Packing By-Products: 100 Kg Packing







7.3.2. Project Cost


1 Land -

2 Building 31,000,000.00


4 Misc Fixed Assets 1,500,000.00

4 Preliminary & Pre-operative expenses 500,000.00

5 Working Capital Margin 14,372,568.00



It is assumed that upon considering the requirement by way of buildings and other civil works, installation of machinery and provision for stocking material, it is perceived that a suitable plot of land will be leased by the entrepreneur.

Miscellaneous fixed assets will include furniture & electrical fixtures, Computers, Printer, CCD cameras, etc which are pegged at Rs. 15 Lakhs.

Preliminary expenses are envisaged in terms of legal & administrative expenses, registration, detailed civil engineering drawings, telephone, stationery, etc. Pre-operative expenses include establishment costs, travel, and overheads during construction period including salaries. These are pegged at Rs. 5 Lakhs.


7.3.3. Means of Finance


1 Bank Term Loan 100,000,000.00



It is assumed that Rs. 1000 Lakhs will be sought as Term Loan from Bank.

7.3.4. Product Schedule Particulars Y1 Y2 Y3 Y4 Y5

Roller Flour Mill Capacity (MT/Day) 150 150 150 150 150



Annual Wheat Requirement- Roller Flour Mill (MT) @ 100% CU

45000 45000 45000 45000 45000


9000 9000 9000 9000 9000


Total Input of Wheat (MT)-Roller Flour Mill 33750 35100 36000 38250 38250


Output (MT)

Roller Flour Mill

Maida 18563 19305 19800 21038 21038

Suji 4050 4212 4320 4590 4590

Flour (Roller) 2700 2808 2880 3060 3060

Bran (Roller) 8438 8775 9000 9563 9563


Chakki Atta Mill


Chakki Atta 6413 6669 6840 7268 7268

Bran 338 351 360 383 383





Raw Wheat (MT)

43876 42254 43290 46126 45900

Purchase Price (in Rs./MT)

17000 17850 18743 19680 20664

Total Purchases (in Rs.)

745,892,000.00 754,233,900.00 811,384,470.00 907,759,680.00 948,477,600.00


7.3.6. Consumables Packaging Material No. of Bags Expenditure on Packaging Material

Size Product Rate/bag Y1 Y2 Y3 Y4 Y5 Y1 Y2 Y3 Y4 Y5

50 kg Maida 18 371260 386100 396000 420760 420760 6682680 6949800 7128000 7573680 7573680

50 kg Suji 18 81000 84240 86400 91800 91800 1458000 1516320 1555200 1652400 1652400

50 kg Flour (Roller) 18 54000 56160 57600 61200 61200 972000 1010880 1036800 1101600 1101600

100 kg Bran (Roller) 50 84380 87750 90000 95630 95630 4219000 4387500 4500000 4781500 4781500

50 kg Chakki Atta 18 128260 133380 136800 145360 145360 2308680 2400840 2462400 2616480 2616480

100 kg Bran(Chakki) 50 3380 3510 3600 3830 3830 169000 175500 180000 191500 191500

Total 722280 751140 770400 818580 818580 15,809,360.00 16,440,840.00 16,862,400.00 17,917,160.00 17,917,160.00

7.3.7. Power Requirement The total requirement of the plant (including admin building power req.) is 250 kva. 7.3.8. Water Requirement Water 10000 Litres/day

Human Consumption

1000 Litres/day

Total Consumption 11000 Litres/day

Cost/Kl= Rs. 10/Kl i.e. Rs. 110 Rs. Daily

7.3.9. Manpower Requirement # Particulars No. Monthly Salary Annual Income Dept.

1 Director/Miller 1 50,000.00 600,000.00 Admin



4 Marketing and Business Development Head 1 50,000.00 600,000.00 Admin

5 Product and Quality Assurance Manager 1 30,000.00 360,000.00 factory

6 Plant Operators 3 25,000.00 900,000.00 factory

7 Fitters 2 8,000.00 192,000.00 factory

8 Accountant 2 10,000.00 240,000.00 Admin



11 Storekeeper 2 10,000.00 240,000.00 factory


Total 20 314,000.00 5,076,000.00

Helpers 12 300/day factory


Total Manpower 32




Opening WDV 31,000,000.00 120,000,000.00 1,500,000.00 152,500,000.00

Total 31,000,000.00 120,000,000.00 1,500,000.00 152,500,000.00

Dep. For 1st Year 3,100,000.00 18,000,000.00 150,000.00 21,250,000.00

W.D.V. as on II Year 27,900,000.00 102,000,000.00 1,350,000.00 131,250,000.00

Dep. For 2st Year 2,790,000.00 15,300,000.00 135,000.00 18,225,000.00

W.D.V. as on III Year 25,110,000.00 86,700,000.00 1,215,000.00 113,025,000.00

Dep. For 3rd Year 2,511,000.00 13,005,000.00 121,500.00 15,637,500.00

W.D.V. as on IV Year 22,599,000.00 73,695,000.00 1,093,500.00 97,387,500.00

Dep. For 4th Year 2,259,900.00 11,054,250.00 109,350.00 13,423,500.00

W.D.V. as on V Year 20,339,100.00 62,640,750.00 984,150.00 83,964,000.00

Dep. For 5th Year 2,033,910.00 9,396,110.00 98,420.00 11,528,440.00

W.D.V. as on VI Year 18,305,190.00 53,244,640.00 885,730.00 72,435,560.00

7.3.11. TL Repayment Schedule Loan Amount 100,000,000.00


Monthly Loan amount Monthly Repayment' Interest Total Instl. Closing Bal

1 100,000,000.00 1,666,666.67 819,444.44 2,486,111.11 98,333,333.33

2 98,333,333.33 1,666,666.67 805,555.56 2,472,222.23 96,666,666.67

3 96,666,666.67 1,666,666.67 791,666.67 2,458,333.34 95,000,000.00

4 95,000,000.00 1,666,666.67 777,777.78 2,444,444.45 93,333,333.33

5 93,333,333.33 1,666,666.67 763,888.89 2,430,555.56 91,666,666.67

6 91,666,666.67 1,666,666.67 750,000.00 2,416,666.67 90,000,000.00

7 90,000,000.00 1,666,666.67 736,111.11 2,402,777.78 88,333,333.33

8 88,333,333.33 1,666,666.67 722,222.22 2,388,888.89 86,666,666.67

9 86,666,666.67 1,666,666.67 708,333.33 2,375,000.00 85,000,000.00

10 85,000,000.00 1,666,666.67 694,444.44 2,361,111.11 83,333,333.33

11 83,333,333.33 1,666,666.67 680,555.56 2,347,222.23 81,666,666.67

12 81,666,666.67 1,666,666.67 666,666.67 2,333,333.34 80,000,000.00

13 80,000,000.00 1,666,666.67 652,777.78 2,319,444.45 78,333,333.33

14 78,333,333.33 1,666,666.67 638,888.89 2,305,555.56 76,666,666.67

15 76,666,666.67 1,666,666.67 625,000.00 2,291,666.67 75,000,000.00

16 75,000,000.00 1,666,666.67 611,111.11 2,277,777.78 73,333,333.33

17 73,333,333.33 1,666,666.67 597,222.22 2,263,888.89 71,666,666.67

18 71,666,666.67 1,666,666.67 583,333.33 2,250,000.00 70,000,000.00

19 70,000,000.00 1,666,666.67 569,444.44 2,236,111.11 68,333,333.33

20 68,333,333.33 1,666,666.67 555,555.56 2,222,222.23 66,666,666.67

21 66,666,666.67 1,666,666.67 541,666.67 2,208,333.34 65,000,000.00

22 65,000,000.00 1,666,666.67 527,777.78 2,194,444.45 63,333,333.33

23 63,333,333.33 1,666,666.67 513,888.89 2,180,555.56 61,666,666.67

24 61,666,666.67 1,666,666.67 500,000.00 2,166,666.67 60,000,000.00

25 60,000,000.00 1,666,666.67 486,111.11 2,152,777.78 58,333,333.33

26 58,333,333.33 1,666,666.67 472,222.22 2,138,888.89 56,666,666.67

27 56,666,666.67 1,666,666.67 458,333.33 2,125,000.00 55,000,000.00

28 55,000,000.00 1,666,666.67 444,444.44 2,111,111.11 53,333,333.33

29 53,333,333.33 1,666,666.67 430,555.56 2,097,222.23 51,666,666.67


30 51,666,666.67 1,666,666.67 416,666.67 2,083,333.34 50,000,000.00

31 50,000,000.00 1,666,666.67 402,777.78 2,069,444.45 48,333,333.33

32 48,333,333.33 1,666,666.67 388,888.89 2,055,555.56 46,666,666.67

33 46,666,666.67 1,666,666.67 375,000.00 2,041,666.67 45,000,000.00

34 45,000,000.00 1,666,666.67 361,111.11 2,027,777.78 43,333,333.33

35 43,333,333.33 1,666,666.67 347,222.22 2,013,888.89 41,666,666.67

36 41,666,666.67 1,666,666.67 333,333.33 2,000,000.00 40,000,000.00

37 40,000,000.00 1,666,666.67 319,444.44 1,986,111.11 38,333,333.33

38 38,333,333.33 1,666,666.67 305,555.56 1,972,222.23 36,666,666.67

39 36,666,666.67 1,666,666.67 291,666.67 1,958,333.34 35,000,000.00

40 35,000,000.00 1,666,666.67 277,777.78 1,944,444.45 33,333,333.33

41 33,333,333.33 1,666,666.67 263,888.89 1,930,555.56 31,666,666.67

42 31,666,666.67 1,666,666.67 250,000.00 1,916,666.67 30,000,000.00

43 30,000,000.00 1,666,666.67 236,111.11 1,902,777.78 28,333,333.33

44 28,333,333.33 1,666,666.67 222,222.22 1,888,888.89 26,666,666.67

45 26,666,666.67 1,666,666.67 208,333.33 1,875,000.00 25,000,000.00

46 25,000,000.00 1,666,666.67 194,444.44 1,861,111.11 23,333,333.33

47 23,333,333.33 1,666,666.67 180,555.56 1,847,222.23 21,666,666.67

48 21,666,666.67 1,666,666.67 166,666.67 1,833,333.34 20,000,000.00

49 20,000,000.00 1,666,666.67 152,777.78 1,819,444.45 18,333,333.33

50 18,333,333.33 1,666,666.67 138,888.89 1,805,555.56 16,666,666.67

51 16,666,666.67 1,666,666.67 125,000.00 1,791,666.67 15,000,000.00

52 15,000,000.00 1,666,666.67 111,111.11 1,777,777.78 13,333,333.33

53 13,333,333.33 1,666,666.67 97,222.22 1,763,888.89 11,666,666.67

54 11,666,666.67 1,666,666.67 83,333.33 1,750,000.00 10,000,000.00

55 10,000,000.00 1,666,666.67 69,444.44 1,736,111.11 8,333,333.33

56 8,333,333.33 1,666,666.67 55,555.56 1,722,222.23 6,666,666.67

57 6,666,666.67 1,666,666.67 41,666.67 1,708,333.34 5,000,000.00

58 5,000,000.00 1,666,666.67 27,777.78 1,694,444.45 3,333,333.33

59 3,333,333.33 1,666,666.67 13,888.89 1,680,555.56 1,666,666.67

60 1,666,666.67 1,666,666.67 - 1,666,666.67 (0.00)

TOTAL - 48,333,333.33 18,125,000.00 66,458,333.33 -


Debtors 32,216,938.00 36,649,878.00 39,493,072.00 43,997,890.00 46,312,077.00

Stock of F.G 30,039,000.00 32,805,150.00 35,316,285.00 39,430,628.00 41,402,386.00

Stock of R.M 57,392,000.00 62,653,500.00 67,474,800.00 75,295,680.00 79,060,464.00

Less Creditor 62,157,667.00 62,852,825.00 67,615,373.00 75,646,640.00 79,039,800.00

Total Working Cap Required

57,490,271.00 69,255,703.00 74,668,784.00 83,077,558.00 87,735,127.00

W.C Margin 14,372,568.00 17,313,926.00 18,667,196.00 20,769,390.00 21,933,782.00

W.C Loan 43,117,703.00 51,941,777.00 56,001,588.00 62,308,168.00 65,801,345.00

7.3.13. Sales Schedule # Particulars Y1 Y2 Y3 Y4 Y5

1 Maida (MT) 17790 19274 19779 20986 21038


21000 22050 23153 24311 25527

Maida Sales 373,590,000.00 424,991,700.00 457,943,187.00 510,190,646.00 537,037,026.00

2 Suji (MT) 3881 4205 4316 4579 4590


21500 22575 23704 24889 26133


Suji Sales 83,441,500.00 94,927,875.00 102,306,464.00 113,966,731.00 119,950,470.00

3 Flour (Roller) (MT)

2587 2804 2877 3052 3060


20000 21000 22050 23153 24311

Flour (Roller) Sales

51,740,000.00 58,884,000.00 63,437,850.00 70,662,956.00 74,391,660.00

4 Bran (Roller) (MT)

8086 8761 8991 9540 9563


15000 15750 16538 17365 18233

Bran (Roller) Sales

121,290,000.00 137,985,750.00 148,693,158.00 165,662,100.00 174,362,179.00

5 Chakki Atta (MT)

6146 6658 6833 7250 7268


22500 23625 24806 26046 27348

Chakki Atta Sales

138,285,000.00 157,295,250.00 169,499,398.00 188,833,500.00 198,765,264.00

6 Bran (Chakki) (MT)

324 350 360 382 383


15000 15750 16538 17365 18233

Bran (Chakki) Sales

4,860,000.00 5,512,500.00 5,953,680.00 6,633,430.00 6,983,239.00

Total Sales 773,206,500.00 879,597,075.00 947,833,737.00 1,055,949,363.00

1,111,489,838.00


7.3.14. Projected Balance Sheet Particulars Y1 Y2 Y3 Y4 Y5

LIABILITIES



- - - - -

Total Capital 67,372,568.00 67,372,568.00 67,372,568.00 67,372,568.00 67,372,568.00

Reserves & Surplus


Profit & Loss

Opening Balance

- 36,150,639.03 86,299,438.66 145,842,057.20 217,847,676.73

Add: Profit after tax

36,150,639.03 50,148,799.63 59,542,618.54 72,005,619.53 80,120,364.83

Total 36,150,639.03 86,299,438.66 145,842,057.20 217,847,676.73 297,968,041.56

Secured Loan From Bank

100,000,000.00 100,000,000.00 100,000,000.00 100,000,000.00 100,000,000.00

W. Capital Loan

43,117,703.00 51,941,777.00 56,001,588.00 62,308,168.00 65,801,345.00

Current Liability

62,157,667.00 62,852,825.00 67,615,373.00 75,646,640.00 79,039,800.00

Total ( A ) 308,798,577.03 368,466,608.66 436,831,586.20 523,175,052.73 610,181,754.56

ASSETS

Fixed Assets

Gross Block 152,500,000.00 131,250,000.00 113,025,000.00 97,387,500.00 83,964,000.00

Less : Depreciation

21,250,000.00 18,225,000.00 15,637,500.00 13,423,500.00 11,528,440.00

Net Block 131,250,000.00 113,025,000.00 97,387,500.00 83,964,000.00 72,435,560.00

Misc Fixed Assets

400,000.00 300,000.00 200,000.00 100,000.00 -

Current Assets

Sundry Debtor 32,216,938.00 36,649,878.00 39,493,072.00 43,997,890.00 46,312,077.00

32,216,938.00 36,649,878.00 39,493,072.00 43,997,890.00 46,312,077.00

Closing Stock

Closing Stock FG

30,039,000.00 32,805,150.00 35,316,285.00 39,430,628.00 41,402,386.00

Closing Stock RM

57,392,000.00 62,653,500.00 67,474,800.00 75,295,680.00 79,060,464.00

87,431,000.00 95,458,650.00 102,791,085.00 114,726,308.00 120,462,850.00

Cash & Bank Balance

57,500,639.03 123,033,080.66 196,959,929.20 280,386,854.73 370,971,267.56


Total ( B ) 308,798,577.03 368,466,608.66 436,831,586.20 523,175,052.73 610,181,754.56


7.3.15. Projected Profit and Loss Statement Particulars Y1 Y2 Y3 Y4 Y5

Total Sales 773,206,500.00 879,597,075.00 947,833,737.00 1,055,949,363.00 1,111,489,838.00

Less:- Opening Stock of F.G. - 30,039,000.00 32,805,150.00 35,316,285.00 39,430,628.00

Add:-Closing Stock of F. G. 30,039,000.00 32,805,150.00 35,316,285.00 39,430,628.00 41,402,386.00

Cost of Finish Goods 803,245,500.00 882,363,225.00 950,344,872.00 1,060,063,706.00 1,113,461,596.00

Raw Material Purchased 745,892,000.00 754,233,900.00 811,384,470.00 907,759,680.00 948,477,600.00

Add:- Opening Stock of R.M - 57,392,000.00 62,653,500.00 67,474,800.00 75,295,680.00

Less:-Closing Stock of R.M. 57,392,000.00 62,653,500.00 67,474,800.00 75,295,680.00 79,060,464.00

Cost of Material Consumed 688,500,000.00 748,972,400.00 806,563,170.00 899,938,800.00 944,712,816.00

Total Variable Exp. 20,968,213.00 23,154,179.00 23,770,717.00 25,281,685.00 25,309,455.00

Total Fixed Exp. 6,884,840.00 7,229,082.00 7,590,538.00 7,970,067.00 8,368,572.00

Amortization of Exp. 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00

Profit Before Int & Dep 86,792,447.00 102,907,564.00 112,320,447.00 126,773,154.00 134,970,753.00

Int on Term Loan 8,916,666.67 6,916,666.67 4,916,666.66 2,916,666.67 916,666.67

Int on W. Capital Loan 4,311,770.30 5,194,177.70 5,600,158.80 6,230,816.80 6,580,134.50

Depreciation 21,250,000.00 18,225,000.00 15,637,500.00 13,423,500.00 11,528,440.00

Net Profit (before tax) 52,314,010.03 72,571,719.63 86,166,121.54 104,202,170.53 115,945,511.83

Tax 16,165,029.00 22,424,661.00 26,625,332.00 32,198,471.00 35,827,163.00

Net Profit 36,148,981.03 50,147,058.63 59,540,789.54 72,003,699.53 80,118,348.83


7.3.16. Projected Cash Flow Statement # Particulars Y1 Y2 Y3 Y4 Y5

1 Revenue

Sales 803,245,500.00 882,363,225.00 950,344,872.00 1,060,063,706.00 1,113,461,596.00

2 Term Loan 100,000,000.00 - - - -

W. Capital Loan 43,117,703.00 8,824,074.00 4,059,811.00 6,306,580.00 3,493,177.00

3 Equity/ Share capital 67,372,568.00 - - - -


- - - - -


62,157,667.00 695,158.00 4,762,548.00 8,031,267.00 3,393,160.00

Sub Total (A) 1,075,893,438.00 891,882,457.00 959,167,231.00 1,074,401,553.00 1,120,347,933.00

Cash Outflow (Rs.)


a Building and Civil Work 31,000,000.00 - - - -

c Plant and Machinery 120,000,000.00 - - - -


- - - - -

e Electrification & Misc. 1,500,000.00

f Pre-operative Exp 500,000.00 - - - -



6,884,840.00 7,229,082.00 7,590,538.00 7,970,067.00 8,368,572.00

b Variable Cost 20,968,213.00 23,154,179.00 23,770,717.00 25,281,685.00 25,309,455.00


688,500,000.00 748,972,400.00 806,563,170.00 899,938,800.00 944,712,816.00

3 Loan Repayment - - - - -

a Interest on WC 4,311,770.30 5,194,177.70 5,600,158.80 6,230,816.80 6,580,134.50

b Interest on TL 8,916,666.67 6,916,666.67 4,916,666.66 2,916,666.67 916,666.67


32,216,938.00 4,432,940.00 2,843,194.00 4,504,818.00 2,314,187.00

Increase in Stock 87,431,000.00 8,027,650.00 7,332,435.00 11,935,223.00 5,736,542.00

5 Tax 16,165,029.00 22,424,661.00 26,625,332.00 32,198,471.00 35,827,163.00


Sub Total (B) 1,018,394,456.97 826,351,756.37 885,242,211.46 990,976,547.47 1,029,765,536.17

Net Cash Flow (A-B) 57,498,981.03 65,530,700.63 73,925,019.54 83,425,005.53 90,582,396.83

Opening Cash and Bank 57,498,981.03 123,029,681.66 196,954,701.20 280,379,706.73


57,498,981.03 123,029,681.66 196,954,701.20 280,379,706.73 370,962,103.56


Indicator Value




DSCR (Average) 3.32

RoCE (Average) 22%

RoE (Average) 54%


Equity Payback Period 1 Year 8 Months

7.3.18. Conclusion


Based on study of technology to be adopted in the project, project economics and high economic viability indicators, it can be concluded that the project is techno-economically viable and sustainable.


Chapter 8: Method of technology dissemination and adoption

8.1. Method of dissemination of suggested technology and models RACP-ABPF shall undertake mix of some or several initiatives to disseminate the suggested

technologies and models, which may broadly include:

Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of FPCs

Facilitate technology benchmarking exposure visits within and outside state for prospective

entrepreneurs/groups, existing industry owners and BoDs of FPCs

Seminars and Workshops in association with Industry Associations, Technical Institutes and

R&D Institutions

Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and subject

experts

Facilitate consultancy and business development services

Dissemination of success stories of units facilitated by ABPF through appropriate media

Dissemination through web portals and mobile applications

8.2. Scale of adoption in the clusters and state, through ABPF support The models and business plans suggested in this report are broadly generic in nature, however involve:

technology profile

civil works requirement

raw material sourcing and logistic costs for sourcing raw material

capacity utilization for different scenarios

realistic assessment of investment and working capital needs

possible sources of funding

financial analysis

The suggested models and business plans are for optimal capacities which can be fine-tuned to the scale,

investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs on statutory

clearances needed for operating the business, required licenses, ways of leveraging various government

schemes/subsidies and several other aspects for effective technology adoption. In order to increase the


scale and potential adoption, ABPF shall pursue some or mix of several initiatives, which may broadly

include:

Investor road shows: ABPF will organize road shows that will comprise of meets aimed at

disseminating information regarding opportunities to invest in the state, targeting potential

investors both within & outside the state.

B2B Meets: ABPF will hold Business to Business Meetings to develop partnerships amongst

entrepreneurs with complimentary offerings.

Establishing Mentor Network: ABPF will prepare a list of well-established entrepreneurs/

subject matter experts who could mentor the emerging entrepreneurs- advising them on

technical and commercial aspects of running a business.

Mentor-Mentee Workshops: ABPF will hold a series of workshops wherein the potential

entrepreneurs and their mentors would interact and exchange ideas on establishing, developing

and running new businesses. Based on the interest and seriousness of the entrepreneur, ABPF

will also facilitate one on one discussion with the mentors. ABPF will also invite commercial

banks to these workshops and investor meets, so as to establish a rapport between the

entrepreneur and the banks. By building a good working relationship with the banks over a

period of time, ABPF will be able to recommend viable business projects for accessing

commercial credit from these banks.

Facilitating Access to Finance: ABPF will guide and facilitate entrepreneurs to explore

possible sources of funding including ways of leveraging various government

schemes/subsidies. ABPF will facilitate one on one dedicated meetings between entrepreneurs

and commercial banks in order to facilitate access to finance (both investment as well as

working capital).

Creating a robust Knowledge Base: ABPF will prepare an operational knowledge base that

could be used by an entrepreneur throughout the life cycle of the enterprise. The knowledge

base would comprise of fundamentals of business management including objectives, operations

management, organizational behavior, human resources management, structure of the

organization, products and markets, operations finance including major expenditures and

sources of financing across the stages of the life cycle of the enterprise (from start up to mature

business and expansion). Knowledge base would also cover fundamentals of accounting, sales,

marketing, promotion, branding, distribution, logistics, human resource management etc. ABPF

will also establish a business performance tracking system of the enterprises supported by

ABPF.

Review of Business Plans for funding through RACP: ABPF will review the business plans

and provide its recommendations on applications.


Reference

Handbook on Processing Technology & Value Addition of Wheat and Wheat Products:

CommodityIndia.com

The Food Processing Industry in India: Challenges and Opportunities: Department of

Agricultural and Environmental Science Sciences, Tennessee State University, Nashville, TN

37209-1561

The Future of Milling Technology-by Teresa Acklin

Wheat and Flour Testing Methods: A Guide to Understanding Wheat and Flour Quality: Version 2, Kansas State University, September 2008

Importance of Grain Cleaning for Food Production- By Chris Miller, Department of Grain

Science and Industry

Implementation Of Automation Controller Using Electro-pneumatic & Plc For Food

Processing- Nasita Binti Ibrahim

Investment Environment & Opportunities in Food Processing- Rajasthan: Ministry of Food

Processing Industries

Innovations in Wheat Cleaning: Improving Process Efficiencies- Kansas State University Agricultural Experiment Station and Cooperative Extension Service

New Technologies for Whole Wheat Processing: Addressing Milling and Storage Issues-

Andres F. Doblado-Maldonado

Trends of Grain Milling, Food Industry and their Role in Nutrition Security in India- Dr.

Subrata Dutta, IAOM South Asia District Conference and Expo

Innovative solutions and technologies for the grain milling industry- Buhler

AlPesa for Atta- Buhler

Whole wheat Atta Process- Pesa Mill- Buhler

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RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT …agriculture.rajasthan.gov.in/content/dam/agriculture... · 2019-07-20 · Atta Milling unit which comprises of a Cleaning machine,