business plan - rice mill

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PBR Modern Rice Mill Introduction PBR Hi tech Rice mill will process the rice in the town Mannachanallur of Trichy District in Tamil Nadu in order to reduce the retail price of rice in this outlying area. The Rice milling is the process that helps in removal of hulls and bran’s from paddy grains to produce polished rice. Rice is rich in genetic diversity with thousands of varieties grown throughout the world. Rice has been one of man’s most important foods. Today, this unique grain helps sustain two-thirds of the world's population. It is life for thousands of millions of people. It is deeply embedded in the cultural heritage of their societies. About four-fifths of the world's rice are produced by small-scale farmers and are consumed locally. Rice milling Process Goals and objectives Mission Statement Empowerment through customer satisfaction thereby providing god quality products at an affordable price Vision Statement To achieve the national dominance in the Rice Industrial sector. 0-18 month goals

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Page 1: Business Plan - Rice mill

PBR Modern Rice MillIntroduction

PBR Hi tech Rice mill will process the rice in the town Mannachanallur of Trichy District inTamil Nadu in order to reduce the retail price of rice in this outlying area.The Rice milling is the process that helps in removal of hulls and bran’s from paddy grains to produce polished rice. Rice is rich in genetic diversity with thousands of varieties grown throughout the world. Rice has been one of man’s most important foods. Today, this unique grain helps sustain two-thirds of the world's population. It is life for thousands of millions of people. It is deeply embedded in the cultural heritage of their societies. About four-fifths of the world's rice are produced by small-scale farmers and are consumed locally.

Rice milling Process

Goals and objectives

Mission StatementEmpowerment through customer satisfaction thereby providing god quality products at an affordable priceVision StatementTo achieve the national dominance in the Rice Industrial sector.

0-18 month goals This is the startup period where the milling infrastructure will be built. This includes building of facilities, ordering and installation of a maize mill, installation of electricity hookups, procuring paddy, and the training of staff on operations and maintenance. Full operation will start during the 2016 harvesting season.

3 year goals With positive cash flow in PBR will turn its focus on growth. It will work with other state for paddy procurement and thus gaining additional raw material during non-seasonal period In Tamil Nadu.

Page 2: Business Plan - Rice mill

SWOT Analysis

Strength

Rice is a staple food in India and so it always has a large demand. Business location - Paddy cultivation is very near to our location. SO the raw material

procurement and transportation is very easy and in less cost especially during the harvest period.

Labor force required is very low. That is about only 5 employees required for the operations and resource management due to advanced technology.

Weakness

Products or service similar to competitors' Lack of patent protection A weak brand name

Opportunities

Rice bank Increasing population Development of new technology for fastening the processing of paddy. Government regulation softening

Threats

New substitute products emerging in the market like basmati, motta etc. Price competition among the local paddy in comparison to new substitute products

emerging in the market like basmati, motta etc. Price competition among the local paddy in comparison to paddy from Andhra Pradesh

and Karnataka. Economic pressure is there because purchase only local paddy is higher risky. Due to higher plotting of land, production of paddy is decreasing. Global warming and pollution Increase in Farming cost

Page 3: Business Plan - Rice mill

How to start?

Startup activity according to the 14 months’ timeline 2017/01 – 2017-03 Administrative bank accounts, permits and

licensing etc..Continuation on electricity applicationBuilding planning, sourcing of materials

2017/06 Completing the building of facilities2017/07-2017/11 Start Initial milling installation of machineries

Further training on milling operations.Training and preparations for maize storage.

2017/12– 2017/1 Completion of Electricity Installation and machinery installation verification from the government for licensing and Permits.

2017/2-2017/4 Procurement of Paddy and staring the milling Operations.Delivery of product to clients.

Startup Cost:

There are several startup cost due to infrastructure development. These cost are one time expenditures totally Rs.8,68,00,000 including the land acquired for the infrastructure.

Workforce:

Post start up during operations the mill will require 2 to 6 employees during off and peak seasons to run at capacity. Operations management will consist of overseeing milling operations, labor, maintenance, quality control and product delivery. Financial management will consists of administration and recording the inflow and outflow of cash. Workers will be trained on location and will be responsible for running the mill.

Particulars Paddy RequirementPlant Capacity(TPH) 4No. of working hours 16Number of days 300Annual requirement (in MT) at installed capacity

19200

Business capacity:

Page 4: Business Plan - Rice mill

Estimation and Calculation:

INVESTMENT

Means of Finance

5%

50%45%

Estimated Distribution channels

Public RetailWholesaleBusiness retail

Page 5: Business Plan - Rice mill

Suggestions:

Brochure preparation and website launching

Training to unit workers in the field of TQM, ISO 9000, etc.

Interaction of the industry with other rice miller associations for the information

exchange and the fixation of salaries and wages.

There is a need to concentrate on the various marketing management techniques like

branding, trade marking, costing and pricing techniques.

Updating of technology for the automation of operations should be done annually.

Learning from the existing market leaders of the industry is important.