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Project Proposal On Flour & Mustard Oil Mill

This document provides a project proposal for establishing a flour and mustard oil mill. It discusses the market potential for wheat flour and mustard oil in northern and central India. It outlines the basis, technical aspects, quality specifications, and financial requirements for the proposed mill. The mill would produce wheat flour and refined mustard oil for household and pickle industry consumption. It requests an 11 lakh rupee term loan to cover initial expenses and ensures honest and timely loan repayment.

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Kidanu Tilahun
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81 views

Project Proposal On Flour & Mustard Oil Mill

This document provides a project proposal for establishing a flour and mustard oil mill. It discusses the market potential for wheat flour and mustard oil in northern and central India. It outlines the basis, technical aspects, quality specifications, and financial requirements for the proposed mill. The mill would produce wheat flour and refined mustard oil for household and pickle industry consumption. It requests an 11 lakh rupee term loan to cover initial expenses and ensures honest and timely loan repayment.

Uploaded by

Kidanu Tilahun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Project Proposal on Flour & Mustard Oil Mill

INTRODUCTION

Oil seed and cereal crops occupy an important place in the agriculture and
industrial economy of the country. India is perhaps the only country in the world
having the largest number of commercial varieties of cereals & oil seed. Mustard
oil & wheat flour is also one of the major oil seed & cereal wheat crops from
which edible oil is produced. In northern & central India, It is medium of cooking
food.

MARKET POTENTIAL

It has enormous demand as one of the edible oils and flour used as cooking
medium especially in northern eastern and north eastern of India. Whole wheat
flour is used in making Chapaties, Puries and Parotha and other roasted cereal
based products. Wheat flour or Maida is a basic raw material for making biscuits
cakes and other bakery products. Sooji / Rava is used in many sweetmeat
products. Bran separated on milling is used as cattle feed. The concept for
branded cereal flour products is now increasing. The demand of mustard oil is
increasing with the time. Refined, Ghani,Double filtered mustard oil have given
new thrust to its market. Due to consumption in household and in pickle
industries it appears to be good scope for establishing mustard oil and flour mill .

BASIS & PRESUMPTIONS

1. This project is based on single shift basis and 300 working days in a year.

2. The cost of machinery & equipment / material indicated to the prices are
approximately to these prevailing in the market at the time of preparation of this
profile.
3. Depreciation has been taken as an-

a ) On machinery & equipment @ 15%

b ) On Building 10%

c ) Interest on total capital investment has been taken @ 12.5% /Annum.

d ) Minimum 15% on the total investment is required as margin money.

e ) Pay back period of the project will be 5 years , With half yearly installments.

f) Break even point has been calculated at the full capacity utilization.

g) For smooth functioning of unit it is suggested that unit should have a good
stock of quality raw material ( Mustard Oil & Wheat Flour).

TECHNICAL ASPECTS

Wheat is first cleaned thoroughly to remove dust ,stone and other foreign
matters clean wheat is tempered before grinding by treating with water so that
the bran is separated from the endosperm. Mustard seed are to be dried in sun
and then they are to be cleaned by shakers to remove dust and foreign materials.
The seeds are initially steamed and then passed through the expeller.

There is no pollution problem for unit except dust which may damage the plant
and machinery and adversely affects the health of workers also, for this cyclones
may be used to separate dust.
QUALITY SPECIFICATION

The quality of seeds should confirm at least to the quality and standard laid down
in P.F.A Act. However for better marketing the standards may be maintained as
per AGMARK specification. The Entrepreneur may approach the appropriate
authorities to get AGMARK or ISI specification for better marketing of the
product.

Financial Requirement :

Entrepreneur will be thankful if a term loan (hypothecation of Material)


11,00,000/-(Rupees Eleven Lakhs) is sanctioned for meeting expenses. The
entrepreneur will offer the following security to cover the medium term Loan.

i Hypothecation of machinery.

ii Hypothecation of stock in trade.

As the above business have wide scope and I again request you Sir . Please
sanction the above Term Loan earlier so, the business may run easily and I ensure
you Sir all the work will be done honesty and return of money will be appreciated
by you.

Thanking you

Your Faithfully

Mr. Sitesh Kumar


S/o Sh. Raghvendra Singh
R/o Vill & Post- Sikandrabad,
Teh & Dist- Badaun,
Pin Code- 243636
Phone No- 9627267232

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