project on entrepreneurship development

8/12/2019 Project on Entrepreneurship Development

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CONTENT

1. ACKNOWLEDGEMENT

2. HIGHLIGHTS OF THE PROJECT

3. INTRODUCTION

4. MARKETABI LI TY

5. TECHNICAL FEASIBI LI TY

6. PRODUCTION TARGET

7. PLANT CAPACITY

8. BASIS AND PRESUMPTION

9. F INANCIAL ASPECTS

10. CONCLUSION



ACKNOWLEDGEMENT

No project can be completed by individual effort only. It

always takes lots of people’s contribution too. The contributions

of some are direct and evident and of others are indirect and

obscured. I expressed my sincere gratitude towards all those whohave directly or indirectly helped me throughout this project.

At first, I would like to express my sincere thanks and

gratefulness to our faculty “Mr.Samannay Baruah” from business

administration department, NERIM for giving me the

opportunity to evince my dream.

I would l ike to offer my grati tude to the L iba rian of the ‘Indian

I nstitute of Entrepreneurship’, Guwahati; who provides me a valuable

guidance.

I am pleased to off er my sincere thanks to my seniors, which also

stand as a pil lar of inspiration to me as well .

Naba Gogoi

MBA 2nd Sem



PREFACE

Project is the indispensable part of any kind of formal education; they help us in

practical learning for MBA. We are basically trained and equipped with strong

theoretical knowledge of how business operates and what is the time tested

methods of running a successful business.

The entrepreneur project has given us the opportunity to practical applicability of

management concepts and theory and developing better ability to analyze the

problems and decision that contribute significantly for better use of resources

available to the management.

This project offers the glimpse of the various stages of the project work in order to

serve the purpose of the study in a systematic manner, hope that the project will go

way in establishing and running my own business.



1.1 HIGHLIGHTS OF THE PROJECT

Name of the unit : Gogoi Rice Mill

.Constitution : Proprietorship

Name of entrepreneur : Naba Gogoi

Proposed Location : Dhenukhana ,P.O-Ghilamara

Dist-Lakhimpur(Assam)

Telephone No :(O) +91-9706243452

(R) +91-9577055793

Name/address of the promoter:

Name: Naba Gogoi

Address: AT & P.O. - Dhenukhana

Dist- North LakhimpurState: Assam, 787053

Qualification of the entrepreneur:

Academic Qualification : B.COM , MBA (Finance &

Marketing)

Name and address of promoters Bank: STATE BANK OF INDIA

North Lakhimpur Branch



Total Capital Cost :

S.NO PARTICULARS AMOUNT(Rs)

1. Land & building 3,00,000.00

2. Plant & Machinery 4,00,000.00

3. Tools & Equipment 28,000.00

4. Furniture& Fixer 12,000.00

5. Preliminary & Pro-Operative Exp. 15,000.00

6. Working Capital 5,49,500.00

1.2 Means of Finance :

I. Promoter’s Contribution @ 20% =2,60,900

II. Loan from Bank @ 80% =10,43,600

1.3 Loan Repayment period : 5 (Five) Years

1.4 Important Financial Findings :

Rate of return : 26.44%

BEP : 15.19%



1.5 Introduction of the Product

Rice is one of major crops of our country and constitutes the staple diet of a large

population. India is the second largest producer of rice with annual production of

more than 90 million tonnes. Good quality and varieties of rice are grown in

different parts of our country’s demand for rice but has earned a special place for

itself in international markets.

Rice mill is used for obtaining rice from rice bran. Presently, different mills of

varying capacities are set up in many parts of one country the parts where rice is principally grown. On once hand rice bran can be bought by such mills and can be

marketed after obtaining rice farm it, on the other hand the producers of rice be

marketed after obtaining rice farm it, on the other hand the producers of rice

themselves can hire service, of these rice mills. Along with the big rice mills, small

rice mills have also been proved lucrative especially when production and job

work, both are taken up, this unit can not only prove to be successful but quiet a

profitable means of self employment.

Milling of Rice are two types:

Step one-Removal of hard protective husk.The rice husk is the protective layer

surrounding the grain one removed,the rice grains is pachaged as brown rice .

Brown rice is healthy because it still contains the rice germ and outer bran layer



Important for healthy body functions.

Step two-Removal of the germ and brown layers.gentle milling removes the germ

and brown layers.Gentle milling removes the germ and bran layers from the grain

to expose a white starch centre .The polished white starch centre is what we knowas white rice.

1.6 Marketability: A small description of the market which I will us is mentioned

below.

Monthly my production will be 400 quintals of rice bran per month and market out

of which 300 quintals of good quality rice would be obtained. I have planned to

supply the good quality of rice bran in rural area .Not only rural area but also it

supply in whole sale price . I have already talked to the retailer of those rural area

and urban area and got a positive response from them. They told me that they

would collect the rice bran from my factory. The price will be determined as per

market condition and quality of the rice.

This is the primary market which I will use for business. In future when I will

expand my business market structure will be totally different.

Hereby I have mentioned the total marketability and market structure of the

business.

1.7 Technical Feasibility:

Manufacturing Process: The process of obtaining rice from rice bran is quite easy

and self obtaining. Rice mill is used for obtaining rice from rice bran. The major

portion of the paddy is milled through hullers. In the hullers,both shelling and

polishing operations are carried out simultaneously. Hence there is no contol on

the polishing of rice, bran, admixed with husk is obtained with higher breakage of

rice gain. To overcome these, a mini rice mill is available to meet the needs of the

villages and a substitute for a huller mill, to get polished rice, rice bran and paddy

husk. The rice bran bought from the markets or brought by the producers is put

into the machine and after being processed in sheller and polisher come out the

machine, which can either be sent for market or directly given to the customers.



By –products from the growing and processing of rice create many valuable new

products. Rice husks, rice stubble, rice bran, broken rice and ricestraw are used as

common in gredients inhorticultural ,livestock industrial, household, building and

food products

Rice husks

The rice husk is the hard, protective shell on the grain.The removal of therice

huskis the first stage of rice milling. Rice husks are the main by product of rice

production. For every one million tones of paddy rice harvested, about 200

000 tonnes of rice husk is produced.

1.8PRODUCTION TARGETS:

Work can be done in two ways under this unit – both the production work and

taking working contracts from producers. Unit would 400 quintals of rice bran per

month from the market out of which 300 quintals of good quality rice would be

obtained.

1.9PLANT CAPACITY:

In assessing the proposed plant capacity, due consideration has given to technology

and financial factors, marketing consideration, availability of raw materials

utilization, infrastructure facilities, and economic viability.

The detailed requirement of the plant and machineries to achieve the plant capacity

is assessed by the unit technicians. While arriving at the requirement

of various type of equipment and machinery required for the unit, due

consideration had been given to the following points.

1. Minimum Wastage.

2. High Productivity.3. Maximum Flexibility

4. Adequate stock by provision wherever necessary.



1.10 INFORMATION ABOUT THE PROMOTER :

The promoter of the project is Mr Naba Gogoi. Mr Naba Gogoi is aged 22 years

old an MBA candidate. The promoter is a local resident of Dhenukhana ( Assam).

Mr Gogoi is highly encouraged by the market potential of such unit at NorthLakhimpur. With a view to provide quality service in a reasonable price the

promoter has proposed to set up the unit. The promoter has already obtained

requisite no objection certificate from the authorities.

2.1 PROPOSD LOCATION:

The proposed site for the unit is at Dhenukhana PO:-Dhenukhana P/S:- Ghilamara

Dist:-Lakhimpur( Assam). The location may be considered as feasible location due

to good infrastructural facilities available as govt provided all facilities:

. The location is suitable for availability of skilled labour.

. The location is adjacent to motor road which is an

advantageous

facility for the unit

The site is accessible to telephone &other communication

facilities.

. Technological factors.

. Socio - economic consideration.

2.2 BASIS & PRESUMPTION:

The unit remain open for 8 hours a day for 300 working days in a calendar year.

The price of raw materials and equipments is as per present market price.

Non-refundable deposits. feasibility study fees, trial production. establishmentexpenses are considered under pre-operative expenses.

Rate of Interest is calculated at 12% per annum.

Written Down Value Method has calculated depreciation at the rate of 10% of the

fixed capital annually.



2.3About my rice mill:

Understanding the benefit, importance of Rice Mill in Assam and realizing my

capacity and potentiality I have decided to open a Rice Mill. I would open a Rice

Mill of 5 bigha. For this my father will give me a land area of 5 bigha. After

completing MBA I would start my work of opening the Rice Mill. But now only I

will final the planned.

2.4 FINANCIAL ASPECT OF THE PROJECT

FIXED CAPITAL:

a) Land & Building:- For the proposed unit, around 800 sq. ft. of working place

would be required. The promoter’s has own land. The cost of construction for

the building is around Rs.3,00000.00.

b) MACHINERIES:

SL No. Description Quan-

tity

Rate Amount (Rs)

1. Paddy Separator 1 1,00,000.00 1,00,000.00

2. Electronic Motor 30 Hp 1 70,000.00 70,000.00

3. D.Hasker with complete pulley 1 40,000.00 40,000.00

4. Cyclone fan 1 30,000.00 30,000.00

5. Motor Starter 1 20,000.00 20,000.00

6. Paddy clear fan 1 20,000.00 20,000.00



7. Rice polisher 1 30,000.00 30,000.00

8. Elebeter 6 10,000.00 60,000.00

9. Block Searing & Delta &

Accessories Etc.

L.S 20,000.00

10. IPC Line Shaft two inces x

20 fit

L.S 5,000.00

11. Main Swits 63A L.S 5,000.00

Total 4,00,000.00

c)Furniture &Fixture:

SL No Description Nos Rate Amount(Rs)

1. Almirah 1 8,000.00 8,000.00

2. Table & Chairs - 4,000.00Total 12,000.00

d)Tools &Equipments

SL No. Description Nos

Rate Amount(Rs)

1. Conveying System LikeElevator

2 5,500.00 11,000.00

2.Moisture Analysis Facility

1 5,000.00 5,000.00

3. Weight balance more 200 Kg

Capacity

1 12,000.00 12,000.00

Total 22,500.00 28,000.00



e ) Preliminary & Pre – operative Expenses :

SL No. Description Amount(Rs)

1. Project Report Preparation 1500.00

2. Travelling & Conveyance 6,000.00

3. Legal Expenses 4,000.00

4. General Insurance 2,000.00

5. Market survey 1,500.00

Total 15,000.00

2.5 WORKING CAPITAL ESTIMATES:

a) Raw Materials

SL No.

Description Quantity Rate Amount (Rs)

P.M A.M

1. Rice Bran 500.00 1000.00 5,00,000.00 60,00,000.00

b) Manpower

SL

No.

Personnel Nos. Rate Amount (Rs)

P.M A.M1. Manager 1 10,000.00 10,000.00 1,20,000.00

2. Skilled Worker 4 5,000.00 20,000.00 2,40,000.00

3. Chowkidar 1 2,000.00 2,000.00 24,000.00Total 32,000.00 3,84,,000.00



c) Administrative Expenses:

SL No. Description Amount (Rs) P.M A.M

1. Electricity 5,000.00 60,000.00

2. Transportation 7,000.00 84,000.00

3. Insurance 1,000.00 12,000.00

4. Maintenance &Repair 2,000.00 24,000.00

5. Telephone & Postage 1,500.00 18000.00

6. Stationary 1,000.00 12,000.00

Total 17,500 2,10,000.00

WORKING CAPITAL REQUIRED:

SL No. Description Stock

Period

Amount (Rs)

P.M A.M

1. Raw Material 1month 5,00,000.00 60,00,000.00

2. Manpower 1month 32,000.00 3,84,000.00

3. Administrative Expenses 15 days 17,500.00 2,10,000.00Total 5,49,500.00 65,94,000.00

TOTAL PROJECT COST

SL No. Particular Amount (Rs)

1. Land & Building 3,00,000.00

2. Plant & Machinery 4,00,000.00

3. Furniture & Fixture 12,000.004. Tools & Equipment 28,000.00

4. Preliminary & Pro-Operative Exp 15,000.00

5. Working Capital 5,49,500.00

Total 13,04,500.00



Means Of Finance:

i) Promoter’s contribution @ 20% =2,60,900.00

ii) Loan from Bank @ 80% =10,43,600.00

Total = 13,04,500.00

2.6SALES REALIZATION: The total income from the unit would be as

shown below:

SL

No.

Description Quantity Rate Amount (Rs)

P.M A.M

1. Rice 300 1700 5,10,000.00 61,20,000.00

2. Public Milling 200 100 20,000.00 2,40,000.00

T0tal 6,30,000.00 63,60,000.00

There for total profit per month----------

(Total rice & public milling sell price – Total expense per month – other expense

per month)

(6,30,000.00-5,49,500.00)=80,500.00

There for total profit per year---------

(80,500.00 x 12) =9,66,000.00



4) 20% of electricity = Rs.12,000

5) Insurance = Rs12,000

TOTAL = Rs. 3,47,102

Fixed cost x 100

BEP = -----------------------------------------

Fixed cost + Profit per year

34710200

=-------------------------------------------

347102+ 966000

34710200

=-------------------------------------------

1313102

= 26.44%



RETURN ON INVESTMENT:-

Net Profit x 100

A) Return of Investment -------------------------

Total investment

966000 x 100

----------------------------

6360000

= 15.19%

Net profit x 100

B) Return on Sales = ------------------------------------

Total Sales

966000 x 100

= ------------------------------------

6360000

= 15.19%



-: CONCLUSION:-

I have a dream to be a independent man. So I want to be a good

entrepreneur. To become a successful entrepreneur and to become a self

independent I select a Rice Mill. I found lots of opportunity has in this line and

a good profitable business. As well as I have own resources at home so that I

can able to utilize these resources in profitable manner.

Initially I implement this project for a little product for a small area, if I able to

run my business with my expectation than I will add as many as product in the

product line. I have a confidence to be a successful entrepreneur in this line.

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