PM FME- Detailed Project Report of Rusk Making 1

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PM FME- Detailed Project Report of Rusk Making 1 PM FME- Detailed Project Report of Rusk Making DETAILED PROJECT REPORT RUSK MAKING UNIT UNDER PMFME SCHEME National Institute of Food Technology Entrepreneurship and Management Ministry of Food Processing Industries Plot No.97, Sector-56, HSIIDC, Industrial Estate, Kundli, Sonipat, Haryana-131028 Website: http://www.niftem.ac.in Email: [email protected] Call: 0130-2281089 1 PM FME- Detailed Project Report of Rusk Making TABLE OF CONTENTS S No. Topic Page Number 1. Project Summary 3 2. About the Product 4-5 3. Process Flow Chart 5-6 4. Economics of the Project 7-25 4.1. Basis & Presumptions 7 4.2. Capacity , Utilisation, Production & Output 8-9 4.3. Premises/Infrastructure 10 4.4. Machinery & Equipments 10-11 4.5. Misc. Fixed Assets 11 4.6. Total Cost of Project 12 4.7. Means of Finance 12 4.8 Term Loan 12 4.9. Term Loan repayment & interest schedule 13-16 4.10. Working Capital Calculations 16 4.11. Salaries/Wages 17 4.12. Power Requirement 18 4.13. Depreciation Calculation 18-19 4.14. Repairs & Maintenance 19 4.15. Projections of Profitability Analysis 19-20 4.16. Break Even Point Analysis 21-22 4.17. Projected Balance Sheet 22-23 4.18. Cash- Flow Statement 23-24 4.19. Debt-Service Coverage Ratio 25 2 PM FME- Detailed Project Report of Rusk Making 1. PROJECT SUMMARY 1. Name of the proposed project : Rusk Making Unit 2. Nature of proposed project : Proprietorship/Company/Partnership 3. Proposed project capacity : 115200 Kg/annum(75,80,85,90 & 95%) capacity utilization in 1st to 5th Year respectively) 4. Raw materials : Wheat flour, MilkPowder,Sugar,Yeast,Salt, Edible Fat 5. Major product outputs : Rusk 6. Total project cost : Rs 13.58 Lakh • Land development, building & Civil : Nil Construction • Machinery and equipment’s : Rs 9.15 Lakh • Miscellaneous Fixed Assets : Rs.1.10 Lakh • Working capital : Rs.3.33 Lakh 8. Means of Finance • Subsidy (max 10lakhs) : Rs.3.59 Lakh • Promoter’s contribution (min10%) : Rs 1.35 Lakh • Term loan : Rs 5.64 Lakh • Working Capital Requirement : Rs. 3.00 Lakh 9. Profit after Depreciation, Interest & Tax • 1styear : Rs.1.00 Lakh • 2ndyear : Rs.2.54 Lakh • 3rd year : Rs.3.38 Lakh • 4th year : Rs.4.54 Lakh • 5th year : Rs.6.42 Lakh 11. Average DSCR : 3.48 12. Term loan repayment : 5 Years with 6 months grace period 3 PM FME- Detailed Project Report of Rusk Making 2. ABOUT THE PRODUCT 2.1. PRODUCT INTRODUCTION: A rusk is a hard, dry biscuit or a twice-baked bread. It is sometimes used as a teether for babies. In some cultures, rusk is made of cake, rather than bread: this is sometimes referred to as cake rusk. In the UK, the name also refers to a wheat-based food additive. Roasted Bread are called Rusk. It is having very good selves life and very tasty to eat. It will have all the ingredients and nutrients of Bread. It is neatly packed and sells in the market. The Manufacturing of Rusk also easy as the same bread is manufactured the bread are sliced in the slicing machine the sliced bread are again roasted in the oven to remove the moisture. Good Roasted bread will have no moisture and grips and dry 2.2 MARKET POTENTIAL: The Indian bakery industry is one of the biggest sections in the country’s processed food industry. Bakery products, which include bread, rusk and biscuits, form the major baked foods accounting for over 82 per cent of the total bakery products produced in the country The demand of processed and convenience food is increasing constantly due to urbanization , changing life style and food habits of the people. Bakery industry in India is the largest of the food industries with an annual turnover of about Rs. 32000 million and has achieved 3rd position in generating revenue among processed food sector. With over 1.2 billion population and 350 million strong urban middle class and changing food habits, the processed food market is promising a huge potential to be tapped. 4 PM FME- Detailed Project Report of Rusk Making 2.3 RAW MATERIAL DESCRIPTION: Rusk is made from wheat flour, sugar, skimmed milk powder, vegetable oil, gluten, malt extract, soy flour, salt, yeast, and water. It is eaten as a dunking biscuit, particularly with Persian chai (tea). Key ingredients are listed below: • Wheat Flour • Milk Powder • Custard Powder • Edible Fat • Sugar • Yeast • Salt 3. PROCESS FLOW CHART • Procurement of raw material. • Pre- mixing of ingredients as per formulation to form dough of proper consistency. • The dough is then divided and pieces are put into molds for proofing, followed by first baking, • Then rusk to be cooled for some time, after that second baking to be done and again cooling. • Checking of final product, packaging & sent for sale. 5 PM FME- Detailed Project Report of Rusk Making 6 PM FME- Detailed Project Report of Rusk Making 4. ECONOMICS OF THE PROJECT 4.1. BASIS & PRESUMPTIONS 1. Production Capacity of Rusk is 400 Kgs per day. First year, Capacity has been taken @ 75%. 2. Working shift of 08 hours per day has been considered. 3. Raw Material stock is for 10 days and Finished goods Closing Stock has been taken for 10 days. 4. Credit period to Sundry Debtors has been given for 7 days. 5. Credit period by the Sundry Creditors has been provided for 7 days. 6. Depreciation and Income tax has been taken as per the Income tax Act, 1961. 7. Interest on working Capital Loan and Term loan has been taken at 11%. 8. Salary and wages rates are taken as per the Current Market Scenario. 9. Power Consumption has been taken at 10 KW. 10. Selling Prices & Raw material costing has been increased by 5% & 5% respectively in the subsequent years. 7 PM FME- Detailed Project Report of Rusk Making 4.2. CAPACITY, UTILIZATION, PRODUCTION & OUTPUT COMPUTATION OF PRODUCTION OF RUSK Items to be Manufactured Rusk Machine capacity Per hour 50 Kg Total working Hours 8 Machine capacity Per Day 400 Kg Working days in a month 25 Days Working days per annum 300 Wastage Considered 4% Raw material requirement 120000 Kg Final Output per annum after wastage 115200 Kg Final Product to be packed in 1 kg Packet Number of Packets per annum 115200 1 Kg Packet Production of Rusk Production Capacity KG 1st year 75% 86,400 2nd year 80% 92,160 3rd year 85% 97,920 4th year 90% 1,03,680 5th year 95% 1,09,440 8 PM FME- Detailed Project Report of Rusk Making Raw Material Cost Year Capacity Rate Amount Utilisation (per Kg) (Rs. in lacs) 1st year 75% 43.50 39.15 2nd year 80% 46.00 44.16 3rd year 85% 48.00 48.96 4th year 90% 50.00 54.00 5th year 95% 53.00 60.42 COMPUTATION OF SALE Particulars 1st year 2nd year 3rd year 4th year 5th year Op Stock - 2,880 3,072 3,264 3,456 Production 86,400 92,160 97,920 1,03,680 1,09,440 Less : Closing Stock 2,880 3,072 3,264 3,456 3,648 Net Sale 83,520 91,968 97,728 1,03,488 1,09,248 sale price per packet 70.00 74.00 78.00 82.00 86.00 Sales (in Lacs) 58.46 68.06 76.23 84.86 93.95 9 PM FME- Detailed Project Report of Rusk Making 4.3. PREMISES/INFRASTRUCTURE The approximate total area required for complete factory setup is 1800-2000 Sq. ft. for smooth production including storage area. It is expected that the premises will be on rental. 4.4. MACHINERY & EQUIPMENTS Machine Machine Description Image Spiral Mixer Spiral mixers are best suited for mixing bread, because they keep the dough at a lower temperature given how the mixer bowl rotates as the spiral hook spins to knead the dough Rotary Rack They are ideal for baking of a wide range of baked goods including bread, rusk,cookies, cakes, and so much more Normal slicer Used for slicing rusk into small size. 10 PM FME- Detailed Project Report of Rusk Making Molds, storage tank, Used for storage of raw material & collection tank etc. finished goods. Machine Unit Rate Price Spiral Mixer 1 2,00,000 2,00,000 (Capacity - 50 Kg) Rotary Rack (40-50 1 5,00,000 5,00,000 Kg/hr) Normal slicer (30 1 65,000 65,000 Slices) 400-500 kg/hr Molds, storage tank, 1,50,000 1,50,000 collection tank etc. Note: Cost of the machinery is approx. Rs. 9.15 Lakhs excluding GST and other transportation cost. 4.5. MISCELLANEOUS FIXED ASSETS • Electricity connection • Other equipment’s & fixture 11 PM FME- Detailed Project Report of Rusk Making 4.6. TOTAL COST OF PROJECT COST OF PROJECT (in Lacs) PARTICULARS Amount Land & Building Owned/Rented Plant & Machinery 9.15 Miscellaneous Assets 1.10 Working capital 3.33 Total 13.58 4.7. MEANS OF FINANCE MEANS OF FINANCE PARTICULARS AMOUNT Own Contribution (min 10%) 1.35 Subsidy @35%(Max. Rs 10 Lac) 3.59 Term Loan @ 55% 5.64 Working Capital (Bank Finance) 3.00 Total 13.58 4.8. TERM LOAN: Term loan of Rs. 5.64 Lakh is required for project cost of Rs. 13.58 Lakh. 12 PM FME- Detailed Project Report of Rusk Making 4.9. TERM LOAN REPAYMENT & INTEREST SCHEDULE REPAYMENT SCHEDULE OF TERM LOAN Interest 11.00% Closing Year Particulars Amount Addition Total Interest Repayment Balance 1st Opening Balance 1st month - 5.64 5.64 - - 5.64 2nd month 5.64 - 5.64 0.05 - 5.64 3rd month 5.64 - 5.64 0.05 - 5.64 4th month 5.64 - 5.64 0.05 5.64 5th month 5.64 - 5.64 0.05 5.64 6th month 5.64 - 5.64 0.05 5.64 7th month 5.64 - 5.64 0.05 0.10 5.53 8th month 5.53 - 5.53 0.05 0.10 5.43 9th month 5.43 - 5.43 0.05 0.10 5.32 10th month 5.32 - 5.32 0.05 0.10 5.22 11th month 5.22 - 5.22 0.05 0.10 5.12 12th month 5.12 - 5.12 0.05 0.10 5.01 0.55 0.63 2nd Opening Balance 1st month 5.01 - 5.01 0.05 0.10 4.91 2nd month 4.91 - 4.91 0.04 0.10 4.80 3rd month 4.80 - 4.80 0.04 0.10 4.70 4th month 4.70 - 4.70 0.04 0.10 4.59 5th month 4.59 - 4.59 0.04 0.10 4.49 13 PM FME- Detailed Project Report of Rusk Making 6th month 4.49 - 4.49 0.04 0.10 4.38 7th month 4.38 - 4.38 0.04
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