Mini Dal Mill Project Report, Business Plan

Mini Dal Mill Project Report, Business Plan

Introduction

Today we are here with a new topic called “Mini Dal Mill Project Report” and Business plan in India.

Hello friends, as we are aware that there is high demand for pulses in India and as a result, all the mini pulse mill companies who are into pulses today are gaining much revenue and thereby in profits. If you also desire, you can begin a good profitable business by setting up a Mini Dal Mill project having the below aspects in mind. So, let’s briefly go through our guide on how we can establish a Mini Dal Mill in India. Now, let us get into the details of the Mini Dal Mill Project Report and Establishment.

A step-by-step guide to Mini Dal Mill Project Report and Business Plan in India

How to start Mini Dal Mill Business in India

Pulses are the dried, edible seeds of leguminous plants. Pulses are a low-fat source of protein and a significant element of traditional food baskets. These are considered as the highly essential component for a well-balanced diet and a great source of protein for vegetarians in particular. Various pulses are grown in India. Much is produced and consumed within the country.

Chana Dal (Chickpeas), Urad Dal (Urad), Moong (Mung), Toor Dal (Pigeon peas), and Masoor (red lentils) are the top five pulses available in India. These pulses take around 80 percent of the total production in the country. The conversion of pulses seeds into Dal is performed by milling. A Dal mill should be established in the rural or semi-urban area that can excess production of pulses and even easy to reach the market. 

Market potential of Mini Dal Mill Business

Pulses are commonly consumed used along with rice and Chapatti in the form of Dal. Dal is a recipe prepared with tomatoes onions, and spices is an indispensable nibble in the Indian household. Dal is dry cereal, which is consumed because of its protein value by any human being. As it is having rich protein content, pulses are mixed in different cereals to enhance the nutritional value of the diet consumed during our meals. Hence, various pulses are a part of the normal meal of all vegetarians and even for non-vegetarian. The pulses are used for making sweet dishes, hot dishes, and other food items.

India pulses market attained a volume of 27.5 Million Tons during 2019. The market of Dal is seen largely in India where 90% of the yield is consumed in the country. Pulses are now increasingly being used for preparing ready-to-eat food items. As a result of rapid growth, altered lifestyle, and hectic hustle and bustle, healthy snack foods are gaining popularity, particularly for the working population. The need for pulses will never decline but will rise in an increasing ratio with the growth of the population.

Uses of Dal

• Delivers energy
• Richest source of protein for vegetarians
• Maintains your heart in a healthy state
• Diabetic-friendly
• Enhances Insulin Response
• Decreases Blood Pressure
• High Fiber Content as well
• Helps in Weight loss as well

List of license and approvals required for establishing Mini Dal Mill Unit in India

Below are the list of license, registrations and permissions required to start the Mini Dal Mill Project Unit-

• Get the GST registration.

• Besides, acquire the Udyog Aadhar registration Number.

• Fire/pollution approval is also required.

• FSSAI License and Factory License are even mandatory.

• Select the Brand Name and protect it with a Trademark if needed.

Raw materials required to start Mini Dal Mill Unit

The basic raw material for the Dal Mill is chickpeas, Toor Dal, Urad Dal, Moong Dal, Chana Dal, Masoor Dal, etc. which are directly obtained from farmers, and packing material is needed to pack the end product.

Project components in establishing Mini Dal Mill Unit in India

Land and building

The estimated total area needed for a complete small-scale factory could be about 1200-1500 sq. ft. for smooth operations.  

List of plant and machinery required for establishing Mini Dal Mill Unit

Bucket Elevator: A bucket elevator, is popularly known or called a grain leg, which is used as a mechanism for hauling flowable bulk substances vertically. It comprises buckets that include the material. 

Reel machine: Reel Machine is used to eliminate impurities from the grains that are bigger or smaller than mainstream material size. Reel cleaning machinery has a great option and it is thus used in many applications.

Conveyor: Conveyor Systems are mechanical devices to transport material with less effort. While there are several types of conveyor systems, they usually contain a frame that supports either wheels, rollers, or a belt, upon which substance will move from one area to another.

Emery roll De husker: Emery Roller is a machine meant for de-husking pulses thus this machine is even referred to as pulses Splitter. They are employed in many pulses’ mills.

Dal Polisher: Polishing is done to enhance consumers’ appeal and is a type of value addition, though not needed. Dal is polished in various patterns, such as Nylon polish, Leather, Oil/water polish, and Makhmal polish, etc. Generally polishing is performed with soapstone, oil, or even water. Polishing gives a uniform appearance and brightness to each grain.

D- Stoner:  The main use of these machines to separate dust, heavy impurities, and stones from grains.

Storage Tank: Storage tanks are for two aspects. One is meant for storage volume and the other is to render pressure to the distribution structure. A particular tank can serve one or both purposes based on its location within the system and its type of arrangement. There is a range of tank types or configurations.

Soaking Container: These are meant for soaking the product and even raw material is stored here. 

Steps in the manufacturing process of Dal

In case if you miss this: How To Start A Coffee Roasting Business in India.

Step 1: The raw material, for instance, pea in this case (depending on the type of dal if we need chana dal) is acquired from farmers directly or middlemen. They will be stored in raw material godowns and are taken as per the need.

Step 2: The suitable type of pea is brought from the godown till milling plant based on which dal is produced. These peas are then introduced to a soaking tank full of water, where the peas are kept for about 24 hours for most of the dals.

Step 3: After suitable soaking a bucket elevator transfers these peas from the soaking tank to air dryers which have blowers or they are placed on a terrace, where labor spread the peas properly for sun drying.

Step 4: The dried peas are added to a Reel Machine with a suitable grit size that is meant to separate major foreign particles like sticks, other peas, leaves, etc.

Step 5: Now the rest of the peas are then added to emery roll dehusker which simply separates the husk or skin of the peas, providing us the whole dal. This whole dal is added to a different reel machine with finer grit size to separate the husk and other smaller impurities if any.

Step 6: This whole dal is now introduced to lentil splitting machine, which basically opens­ the whole dal into two halves and now the dal is obtained, this dal is now added to dal polisher which polishes the dal and enhances its appearance followed by which these dals are aggregated in bins, from where they can be packed using sacks and sent for sale.

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Mini Dal Mill Project Report/ Economics of the Mini Dal Mill Business in India

Mini Dal Mill Project Report – Fixed Capital

Land & Building – Rented

200 sw.mtr rented @ Rs. 40/ sq. mtr: Rs. 8,000.

Machinery & equipment:

• Guillotine shearing machine: Rs. 3,00,000
• Hand lever shearing machine: Rs. 20,000
• Electric arc welding set: Rs. 60,000
• Radial drill ½ cap: Rs. 1,00,000
• Shaping m/c 24 “ stroke: Rs. 2,20,000
• Center lathe Heavy duty 3600 mm: Rs. 1,60,000
• Center lathe Heavy duty 2400 mm: Rs. 1,40,000
• Gas welding set: Rs. 20,000
• Bench grinder 8” wheel: Rs. 6,000
• Installation and electrification @ 10%: Rs. 1,02,600
• Pre-operative expenses: Rs. 50,000

Testing Equipment & Tools

• Hand tools: Rs. 60,000
• Measuring instruments: Rs. 40,000
• Office Furniture: Rs. 50,000
• Total: Rs. 13,28,600

Mini Dal Mill Project Report – Working Capital (per month)

Salaries for staff: Rs. 64,400.

Raw materials (per month):

• MS angle, channel bar in various sizes: Rs. 3,20,000
• BR sheet from 16 and 20 SWG: Rs. 2,40,000
• Welding electrodes: Rs. 40,000
• Oxygen & acetylene gases: Rs. 30,000
• CI casting: Rs. 3,12,000
• Total: Rs. 9,42,000

Utilities (Per month):

• Electricity 15 KWH: Rs. 9,000 
• Water: Rs. 1,000
• Total: Rs. 10,000

Other contingent expenses (per month):

• Rent: Rs. 8,000
• Postage and stationery: Rs. 2,000
• Telephone: Rs. 2,000
• Repair & maintenance: Rs. 4,000
• Transport charges: Rs. 4,000
• Advertisement & Publicity: Rs. 4,000
• Insurance: Rs. 2,000
• Miscellaneous expenditure: Rs. 4,000
• Total: Rs. 30,000

Total Recurring Expenditure (Per/month):

• Salaries: Rs. 64,400
• Raw material: Rs. 9,42,000
• Utilities: Rs. 10,000
• Other contingent expenses: Rs. 30,000
• Total: Rs. 10,46,400

Total Working Capital for 3 months = Rs.10,46,400 x 3 = Rs. 31,38,000.

Mini Dal Mill Project Report – Total Capital Investment:

• Fixed Capital: Rs. 13,32,600
• Working Capital: Rs. 31,38,000
• Total: Rs. 44,70,600

Financial Analysis:

• Total recurring cost: Rs. 1,25,52,000
• Depreciation on machinery & equipment @ 10%: Rs. 1,02,600
• Depreciation on office furniture/tools etc. @20%: Rs. 30,000
• Interest on capital investment @ 13% pa.: Rs. 7,60,000
• Total: Rs. 1,34,44,600

Turnover (Per annum):

By Sale of 24 plant of Dal Mill: Rs. 1,68,00,000.

Mini Dal Mill Project Report – Profit in Mini Dal Mill Business

Profit = Turn Over – Cost of Production = Rs. 1,68,00,000 – Rs. 1,34,44,600 = Rs. 33,55,400.

Profit percentage calculation

Profit per annum x 100 / Sale per Annum = 33,55,400 x 100/1,68,00,000 = 19.9%.

Rate of Return on total capital investment:

Profit per annum x 100 / Total Capital Investment = 33,55,400 x 100 / 44,70,600 = 75%.

Break Even Point:

Fixed Cost

• Rent: Rs. 96,000
• Total depreciation: Rs. 1,30,600
• Interest on total capital investment: Rs. 7,60,000
• 40% of salary and wages: Rs. 3,09,120
• 40% of others contingent expenses: Rs. 1,05,600
• Total: Rs. 14,01,320

Break Even Percentage

BEP% = Fixed Cost x 100/Fixed Cost + Profit = 14,01,320 x 100/14,01,320 + 33,55,400 = 29.4%.

Assumptions in Mini Dal Mill Project

• The production Capacity of Gram Chana Dal is around Rs. 400 kg per day. In the first year, Capacity
• has been taken @ 60%.
• Working duration of 8 hours daily has been considered.
• Raw Material stock is about 21 days and complete goods closing stock has
• been considered for 15 days.
• The credit period to Sundry Debtors is of 30 days.
• The credit period by the Sundry Creditors has been given for 7 days.
• Depreciation and Income tax has been taken according to the Income-tax Act,
• 1961.
• Interest on Working Capital Loan and Term loan is 11%.
• Salary and wage expenses are considered according to the Current Market Scenario.
• Power usage will be about 6 KW.
• An increase in sales and raw material expenses has been considered as 5% annually.
• Can receive 25% subsidiary on machinery cost from Government by establishing Mini Dal Mill Business Unit. 

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