Semolina Manufacturing Project Report, Plan

Introduction to Semolina Manufacturing Project Report and Business Plan: The main objective of a roller flour mill is to make flour using wheat. Maida, atta, suji, semolina, and bran are generated at the farm. These are disseminated according to the state’s Food and Civil Supplies Department’s rules. Thus, milling is a critical physical task in the conversion of wheat into milled goods. 

A guide to Semolina Manufacturing Project Report, and Production Business Plan

Semolina Production Business Plan
Semolina (Image source: pixabay)

The aleurone sheet, which contributes to almost 6.5% of grain wheat, showcases a wide variety of analytical results, which is predictable in multiple varieties cultivated and the vastly dissimilar surroundings. Blenders, cuts rolls, sieves, smooth steel reduction, conveyors, water washers, rolls aspirators, and other machinery constitute the common machinery in a flour mill. Flour is graded based on grain present in the end product. The grain’s hard, brownish outer protective layer or skin is popular as bran (differs from 6% in corn to 16% in wheat).

Business plan for Semolina Manufacturing Business

  • Market potential
  • Basis and presumptions
  • Implementation schedule
  • List of approvals required
  • Raw materials required
  • List of machinery and equipment
  • Manufacturing process
  • Project economics
  • Profitability

Basis and Presumptions of Semolina Manufacturing Business

The Semolina Manufacturing Project Profile relies on the following assessments:

  • Working hours/shift: 8 hrs.
  • No. of shift/day:1
  • Working days: 300
  • Labor expenses: as per the State Government’s Minimum Wages Act.
  • Rate of interest: 15% per annum
  • Costs of machinery and equipment: Taken based on A particular dealer
  • Value of raw material: As per local market Packing material/others rate (on wholesale rate)
  • Land: owned
  • Building Construction
  • Break-even point will be estimated on a full capacity utilization basis
  • Pay-back time is 5 – 7 years

Implementation schedule of Semolina Manufacturing Business

The project implementation schedule of Semolina Manufacturing Business

  • Project preparation: 0-1 month
  • Location selection, acquisition of 1-2 months land and land development
  • Loan Sanction: 1-3 months
  • Building construction: 3-4 months
  • Connection of electric supply and water: 4-5 months
  • Obtaining machinery: 5-6 months
  • Electrification & installation:  6-7 months
  • Recruitment of staff and workers: 7-8 months
  • Trial run can be initiated in 8-10 months
  • Commercial production could start from 10-11 months

Market potential of Semolina

For the production of wheat products such as coarse flour, semolina, bran, or wheat germ 10.5 MT of wheat is consumed by 800 flour mills in India. Around 12-15% of the total wheat consumed in the nation is processed from the Roller Flour Milling industry. Since the majority of wheat is employed for bakery products, mainly bread, wheat grains must first be milled into flour before its consumption. Wheat is also employed in compound feeds, for starch processing, and as a raw material in the production of sooji/Rawa or commonly known as semolina in the international market.

Spending on roller flour milling in India, which is an agriculture-based economy with a rapidly snowballing population, and there will not be a shortage for grains. No other sector could beat out this opportunity for growth and advantage. Food has developed as one of the most profitable segments in the world, and most of the major food monsters that have risen are wheat millers. Food companies like Kraft General Foods, Nestle, and Cargill are among the most rewarding, profitable, and hence one of the primes in the world. Hence, it’s a proven fact that investing in this project will help achieve success for young entrepreneurs.

List of approvals required for starting manufacturing of Semolina Business in India

Below is the list of licenses, permissions, and registrations required for starting Semolina Manufacturing Business-

  • Firm registration
  • MSME registration
  • GST registration
  • ROC
  • PAN Card
  • Aadhar registration
  • Registration of firm
  • Shop Act License
  • FSSAI License
  • IEC Code
  • Export License
  • Fire and Safety
  • ESI
  • PF
  • No Objection Certificate (NOC) from pollution board
  • Trade license from the local municipal authority

Land required for starting Semolina Manufacturing Business

To start Semolina Manufacturing Business, you need a minimum area of 300 – 500 sq. mt. This specification is for establishing a small-scale unit. If you want to establish a large-scale or medium-scale unit, then you need to take an area of more than 500 sq. mt.

Raw materials required for starting Semolina Manufacturing business

To manufacture semolina, we need wheat as a major ingredient. The major raw material is wheat. Apart from that, a few vitamins and mineral premix are necessary. Vitamins like vitamin A, B1- B12, zinc, and iron. In 100 g of semolina, 9kcal is from fat and in total it has 350 kcal.

Ingredients

  • Wheat
  • Vitamins
  • Mineral premix

Vitamins and Mineral Information

Vitamin information that is not included in the table is vitamin B9 that is 26mg and vitamin B12 that accounts for 0.02mg. This is mainly based on your calorie necessities.

Vitamins/minerals per kg of

  • Vitamin A       2mg
  • Vitamin B1     6mg
  • Vitamin B2     5mg
  • Vitamin B3    45mg
  • Vitamin B6     6mg
  • Iron              40mg
  • Zinc              50mg

Nutritional Information on Semolina

Here is the nutritional information about Semolina per 100g plus daily value. 

Nutritional InformationAmount per 100gDaily Value
Carbohydrate   73g 24%
Protein   12g24%
Fat  1g 2%
Calories from fat9kcal 

Method of preparation of Semolina

The semolina preparation method is similar to Semovita preparation. Primarily, one has to boil 300cc (1 ¼ cup) of water using a cooking pot. Next mix semolina powder into 125cc (½ cup) water which gives a paste. Add this paste into boiling water, agitate properly, and include semolina powder till the mixture is uniformly mixed. Cover the pot and keep it for cooking, include extra water if required. Switch off the fire and stir the mixture carefully till semolina is ready for eating. Now the semolina can be consumed with any of your desired soup.

Semolina Manufacturing Project Report /Economics of small-scale Semolina Manufacturing Business

In case if you miss this: Neem Oil Manufacturing Project Report.

Economics of Semolina Manufacturing
Economics of Semolina Manufacturing (pic credit: pixabay)

Fixed Capital

a. Land & Building: 600 Sq. ft @ Rs. 10,000 Rented

b. Machinery and Equipment: Rs. 4,25,000

Working Capital

A. Staff and Labour: Rs. 1,72,000

B. Raw material per month: Rs. 1,76,675

C. Utilities per month: Rs. 8,000

D. Other Contingent Expenses per Month: Rs. 1,75,000

Total Working Capital per month = A + B + C + D = 1,72,000 + 1,76,675 + 8,000 + 1,75,000 = Rs. 5,31,675.

Total Capital Investment

Fixed capital = Rs. 4,25,000

Working Capital (on 3 months basis) = Rs. 15,95,025

Total = Rs. 20,20,025.

Financial analysis of Semolina Manufacturing business

a. Cost of Production (Per Year): Rs. 66,24,603

b. Turnover (Per Annum): Rs. 72,00,000

c. Net Profit Per Annum:

Net Profit = Turnover per Year – Cost of Production = 72,00,000 – 66,24,603 = Rs. 5,75,397

d. Net Profit Ratio = (Net Profit per year / Turnover per Year) X 100 = (575397 / 7200000) X 100 =  7%

e. Rate of Return = (Net Profit per year / Total Investment) X 100 = (575397 / 2020025) X 100 = 28.48%.

Break-Even Point (B.E.P.)

Interest on investment @ 10%: Rs. 2,02,003

40% of wages and salaries: Rs. 68,800

40% of other expenses (except rent): Rs. 70,000

Rent: Rs. 1,20,000

Total: Rs. 4,60,803

Break- Even Point (B.E.P.) = [Fixed Cost/ (Fixed cost + Profit)] X 100 = 460803/ (460803+575397) X 100 = 460803 / 1036200 X 100 = 44.47%.

Marketing strategies to promote your Semolina product

To sell your Semolina product you need to register it online on B2B websites and B2C websites. You can even distribute some samples in the nearby supermarkets, or in the wholesale markets where your product gets well purchased.

B2B websites: The websites like –

  • Alibaba,
  • Indiamart,
  • Tradeindia,
  • ExportsIndia will take the bulk orders for your Semolina product.

B2C websites: To sell the products directly to the customer, you may also market in the well-established websites like–

  • Amazon,
  • Snapdeal,
  • Flipkart, etc. 

Try new ideas in the starting and just concentrate on promoting your business. Always remember that your business profits will be raised depending upon the quality you provide to the customers.

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