ON

Noodles Manufacturing

FOR

Proposed At- C-4, Industrial Area, Donar, Darbhanga, Bihar

Partners:- Mr. Shailendra Prasad Singh

&
Mr. Sachin Kumar
At –Nutan Market, Maulaganj, P.O.- Lalbagh,
Dist.- Darbhanga.

Consultant:
C.N. Upadhyay
Techno Consultancy Bureau
Sinha Colony, Hanumanganj, Mishratola,
P.O.- Lalbagh, Dist. – Darbhanga
Mobile No.- 9308579851, 9431253326
 Project At A Glance
1. Project : Noodles Manufacturing

2. Name of the Unit : M/S GANESH FOOD PROCESSING

At- C-4, Industrial Donar, Dist- Darbhanga

3. Name & address of Mr. Shailendra Prasad Singh

Proprietor & Mr. Sachin Kumar
At –Nutan Market, Maulaganj, P.O.- Lalbagh,
Dist.- Darbhanga.

4. Capacity : 225 MT

5. Raw Material : Maida , Edible oil & etc.

6. Land : 10890 Sq. Ft.

7. Covered area : 3000 Sq. Ft for additional Product

8. Cost of Project 35.22 Lacs

9. Plant & Machinery : 7.50 Lacs

10. Promoters contribution : 8.81

11. Power : 35 KVA

12. Employment potential : 16 Nos.

13. Environmental pollution : No

14. Source of know How : Indigenous

15. Sales Turn over ( at 100% : Rs. 159.00 Lacs

capacity)
16. Profit : 2.82 Lacs

17. Avg. DSCR : 2.59:1%

18. Break even Point : 44.36%

19. Debt. Equity Ratio : 2.27 : 1

INTRODUCTION
This Report deals with the technical & Financial aspect of Noodles Manufacturing
industry proposed to be set up by a entrepreneur who have good capability to operate
this unit.
Constitution of the unit
The unit is proposed to be established in the name and style of M/S GANESH FOOD
PROCESSING as a partnership concern of Mr. Shailendra Prasad Singh & Sacheen
Kumar They are belonging to a good family. They are well capable to supervise the unit
and other related activities of the unit.
The Partners are an honest dependable laborious, energetic and quite fit for bringing
big success to this particular unit.

PRODUCT
Fresh noodles are an extruded product made of tapioca flour and maida. They are long
thread-like of 0.22 to 0.4 mm. thickness. This is a eatable food itemunder instant food
products and very popular now-a-days as break fast food. It is one of the most
conventional foods available in the market.
In India around 12 million tonnes of potato is grown which is about 4% of the total
world production. However, the per capita consumption of potatoes is low. It is
estimated that 25% of the potatoes, which are spoiled due to various reasons such as
transportation, type of packing, non-availability of cold storage capacities during
harvesting season, glut in the market etc., could be saved by making various preserved
potato products. Potato wafer is one ofsuch products which has a great potential as this
is considered as one of the traditional foods of India. Potato wafers are needed to be
made in a scientific manner and under hygienic Conditions
Market
Noodles and chowmein, a ready-to-eat food item is very popular in developed countries
and now it has created good market potential in our country also and is becoming a
popular item. The factors governing its demand are:
1. Increasing population of the country.
2. Rapid industrialization in the country.
3. Increase in the purchasing capacity of the people.
4. Durability of the product.
5. Change in people’s eating habits especially the younger generation.
6. It is ready-to-eat product.
7. Convenience of preparation. Keeping in view the above factors, the demand of this
product is likely to increase manifold in the coming years.
The popularity of snack foods is growing fast day-by-day and potato and banana wafers
have emerged as a potential snack food. A number of organised as well as unorganised
groups are already there catering to the needs of tea stalls, restaurants, railway stations,
tourist places etc. Still there is a huge demand to be met for these products in interior
and remote places in different parts of the country.
Manufacturing Process

TECHNICAL ASPECTS
Process of Manufacture
Noodles is the term being used to designate products made from blend of
flours, the major component of which is tapioca flour and maida. A noodle is
manufactured in different sizes, hollow as well as solid, for different cooking methods.
Some are made for cooking and others are for frying. The noodles proposed in this
Profile are for frying.
Typical Blending for 16 Kg. of Product
Maida : 8 Kgs.
Starch : 7 Kgs.
Sodium bicarbonate : 850 gms.
Salt : 150 gms.
Edible colour : Q.S.
Process in Detail
Dry Mixing
The average moisture content of dry mixes is 10-11%. The three ingredients maida,
starch and soda bicarbonate are blended in a vertical mixer alongwith
edible colour.
Dough Formation
Satisfactory dough can be made from the above blend only by using boiled water, when
a part of the starch is gelatinized. The ingredients are mixedin dough mixer for about
12 to 15 minutes.
Extrusion
The kneaded dough is then transferred to noodles making machine where extruded
material of desired shape and length is obtained by using an appropriate type of die
and suitably adjusting the distance between the dyesurface and cutting blade. The
moisture content of the product at this stage is about 33%.

Pre-drying
The cut noodles goods from the cutting machine fall on wooden trays. The product
undergoes surface drying and becomes sufficiently hard enough to be handled without
sticking or being crushed. The moisture content of the pre-dried product is about 29.5%.
Drying
The pre-dried product is finally semidried. The moisture content of the product will be
17%. Drying is done by exposure to indirect sunrays or placing in shade. The noodles
dried as above do not have a satisfactory cooking quality and undergo a heavy loss on
cooking. This can be reduced considerably by giving heat treatment to the product. This
is optioned as this gives a brown colour to the product which may not be appealing to
some of the customers. Recent development in the manufacture of noodles is that the
product is exposed to steam. The steamed product has three advantages: (1) longer
shelf-life (2) harder grain, and (3) better eating quality than unsteamed product.
Steaming is done by exposing the product in thin layer to steam for about 15 minutes.
The steamed and subsequently dried product has a moisture content of about 10%. The
steaming is done before the product is semi-dried.

Quality Control and Standards

The product must meet PFA specifications. However, BIS specification for Noodles is
IS: 1485:1976.
Pollution Control
It is not required as the product is not causing any air, water and sound pollution.
However, entrepreneurs should obtain NOC from concerned State Pollution Control
IMPLEMENTATION SCHEDULE
Project implementation will take a period of 6 months. Break-up of the activities and
relative time for each activity is shown below:
Scheme preparation and approval : 01 month
Registration from different Registration: 0.5 months
Sanction of financial supports etc. : 02 Month
Installation of machinery and power connection : 02 months
Trial run and production : 0.5 month

PLANT ECONOMICS

Quant it y : noodles-225MT
Optimum capacit y : 60%
Working days : 300/annum ( 1 shifts)
Manpower : 23
PROJECT COST / CAPITAL INVESTMENT

S.No. Description Amount ( In Rs.)

1. Fixed capital 23,50,000.00
2. Working capital for 1 month 11,72,000.00
Total Project Cost 35,22,000.00
MEANS OF FINANCE

S.No. Description Amount ( In Rs.)

1. Promoter Contribution 8,81,000.00
2. Term Loan 17,62,000.00
3. Working capital 8,79,000.00
Total 35,22,000.00

FINANCIAL ASPECTS
A. FIXED CAPITAL
i. Land : The unit may acquire 10890 sq.ft. of land in industrial Area Donar, Darbhanga.
For this additional product unit will use 3000 Sq. Ft of Land and construct the building along
with workshed, office, godown and gate etc.
Building : Total covered area - 3000 sq.ft
1. Production Shed - 1000 sq.ft
2. Raw materials + finished goods
storage shed - 1800 sq.ft
3. Administrative building along with
Office - 200 sq.ft.
4. Boundary wall, gate, feuding etc
Total cost comes to Rs. 14,00,000.00
ii. Machinery and Equipment

S.No Description Nos Amount (in Rs.)

1. Complete set noodle plant With mixer, Drier & etc. 1 6,50,000.00
2. Counter scale balance 1 20,000.00
3. Packing & sealing Machine 1 80,000.00
Total 7,50,000.00

Other Fixed Assets Values in Rs.

1. Office equipment, furniture + other accessories 50,000.00

2. Computer – 1 nos. 30,000.00

3. Pre-operative exp. 50,000.00

4. Contingencies 60,000.00

5. Miscellanies 10,000.00
Total 2,00,000.00
Fixed Capital

1. Land & Building 14,00,000.00

2. Plant & Machinery 7,50,000.00

3. Other fixed assets 2,00,000.00

Total 23,50,000.00

Raw Materials ( per month)

1. maida , Edible oil, Preservatives, color etc 10,00,000.00
2. Packing material 30,000.00
Total 10,30,000.00
 Salary & Wages / Month
1. Manager – 1 no. 15,000.00
2. Supervisor – 1 no 9,000.00
3. Skilled worker – 8 nos. 40,000.00
4. Semi- skilled worker – 4nos. 24,000.00
5. Accountant – 1 no. 6,000.00
6. Guard, peon – 1 nos. 6,000.00
1,00,000.00
Plus perks @ 10% P.A. 10,000.00
1,10,000.00
UITLITIES AND OVERHEADS
1. Power consumption 18,000.00
2. Stationary, postage, telephone etc 2,000.00
3. Publicity & Sales promotion 5,000.00
4. Transportation & conveyance 5,000.00
5. Miscellaneous 2,000.00
32,000.00
Electric power – 35 KVA

TOTAL WORKING CAPTIAL / MONTH

1. Raw materials 10,30,000.00
2. Salary & wages 1,10,000.00
3. Utilities & overheads 32,000.00
Rs. 11,72,000.00

Working capital for one month Rs.11,72,000.00

 Cost of production
1. Working capital for one year 1,40,64,000.00
2. Interest @12.00% on T.C.I 4,23,000.00
3. Depreciation @ 10% on Total Fixed Assets 2,35,000.00
Total:- Rs.1,47,22,000.00

Turn over / Annum

1. Receipt from sales 1,59,00,000.00

1,59,00,000.00
 CALCULATION OF INTEREST & REPAYMENT OF BANK LOAN

Term Loan Rs. In Lacs

Year Opening Repayment Balance Int/Year

1st yr. 17.62 -- 17.62 2.11

2nd yr. 17.62 1.77 15.85 1.90

3rd yr. 15.85 1.77 14.08 1.69

4th yr. 14.08 1.76 12.32 1.48

5th yr. 12.32 1.76 10.56 1.27

6th yr. 10.56 1.76 8.80 1.06

7th yr. 8.80 1.76 7.04 0.84

8th yr. 7.04 1.76 5.28 0.63

9th yr. 5.28 1.76 3.52 0.42

10th yr. 3.52 1.76 1.76 0.21

11th yr. 1.76 1.76 nil

Calculation of Intt on W/C Rs. 8.79 Lacs.

Year Working capital loan Rs. Total Interest Amount

8.79 Lacs Interest Bearing
@12%

1st year & own wards 8.79 1.05

 PROJECTION OF PERFORMANCE, PROFITABILITY & REPAYMENT
Rs. In lacs
Particulars 1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.
A. Production (Qty)
% of capacity utilization 60% 70% 80% 90% 90%

B. Sales 95.40 111.30 127.20 143.10 143.10

C. Cost of Production
1. Raw Materials 74.16 85.52 98.88 111.24 111.24
2. Utilities 0.72 0.84 0.96 1.08 1.08
3. Labour & Wages 6.34 7.39 8.45 9.50 9.50
4. Depreciation 2.35 2.12 1.90 1.71 1.58

Selling General & Adm exp.

5. Selling exp 2% of sales 1.91 2.23 2.54 2.86 2.86
6. Administrative exp. 1.58 1.85 2.11 2.38 2.38
7. Salary 1.58 1.85 2.11 2.38 2.38
8. Insurance 1% of project outlay 0.35 0.35 0.35 0.35 0.35
88.99 103.15 117.30 131.50 131.33

D. Net profit before interest & tax 6.41 8.15 9.90 11.60 11.77
(B – C)
E. Interest
On T/L 2.11 1.90 1.69 1.48 1.27
On W/L 1.05 1.05 1.05 1.05 1.05
F. Profit before tax 3.25 5.20 7.16 9.07 9.45
G. Income tax 0.43 1.02 1.61 2.18 2.30
H. Net profit after interest & tax 2.82 4.18 5.55 6.89 7.15
I. Dep. added back 2.35 2.12 1.90 1.71 1.54
J. Net Cash accruals. 5.17 6.30 7.40 8.60 8.60
K. Repayment of T/L 1.77 1.77 1.76 1.76 1.76
 CASH FLOW STATEMENT
Rs. In lacs
S.no. Particulars Const. 1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.
Period

A. Sources of Fund
1. Cash accruals — 6.41 8.15 9.90 11.60 11.77
2. Increase in equity 8.81 — — — — —
3. Depreciation — 2.35 2.12 1.90 1.71 1.54
4. Increase in Term Loan 17.62 — — — — —
5. Increase in working capital — 8.79 — — — —
Total Sources A. 26.43 17.55 10.27 11.80 13.31 13.31

B. Disposition of Fund
1. Increase in fixed assets 23.50 — — — — —
2. Increased in current assets — 11.72 — — — —
3. Decrease in Term Loan — — 1.77 1.77 1.76 1.76
4. Interest — 3.16 2.95 2.74 2.53 2.32
5. Taxation — 0.43 1.02 1.61 2.18 2.30
Total Disposition B. 23.50 15.31 5.74 6.12 6.47 6.38

C. Opening Balance — 2.93 5.17 9.70 15.38 22.22

D. Net Surplus 2.93 2.24 4.53 5.68 6.84 6.93
E. Closing Balance 2.93 5.17 9.70 15.38 22.22 29.15
 BALANCE SHEET
Rs. In lacs
LIABILITIES 1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.

1. Promoter’s capital 8.81 8.81 8.81 8.81 8.81

2. Reserve & Surplus 2.82 7.00 12.55 19.44 26.59

3. Term Loan from Bank 17.62 15.85 14.08 12.32 10.56

4. CC Limit from Bank 8.79 8.79 8.79 8.79 8.79

38.04 40.45 44.23 49.36 54.75

ASSETS

1. Gross Block 23.50 21.15 19.03 17.13 15.42

2. Depreciation 2.35 2.12 1.90 1.71 1.54

3. Net Block 21.15 19.03 17.13 15.42 13.88

4. Current Assets 11.72 11.72 11.72 11.72 11.72

5. Cash & Bank Balance 5.17 9.70 15.38 22.22 29.15

38.04 40.45 44.23 49.36 54.75

 CALCULATION FOR D.S.C.R
Rs. In Lacs

PARTICULARS 1st Yr. 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.

A. Cash Accruals

1. Profit after tax 2.82 4.18 5.55 6.89 7.15

2. Depreciation 2.35 2.12 1.90 1.71 1.54

3. Interest on T/L 2.11 1.90 1.69 1.48 1.27

Total A. 7.28 8.20 9.14 10.08 9.96

B. Repayment obligation

1. Repayment of back T/L 1.77 1.77 1.76 1.76 1.76

2. Int. on T/L 2.11 1.90 1.69 1.48 1.27

3.88 3.67 3.45 3.24 3.03

44.66
Average D.S.C.R. = = 2.59:1
17.27

Total liabilities
Debt Equity Ratio =
Equity

26.41
= = 2.27 : 1
11.63
 BREAK EVEN ANALYSIS

. Rs. In Lacs
Capacity utilization 60%
Sales Earning 95.40

Variable cost
Raw Materials 74.16
Utilities 0.72
Labour & Salary 6.34
Interest on C/C limit 1.05
Selling Exp. 2.35 88.62

Contribution 10.78

Fixed Cost
Salary 1.58
Adm. Exp. 1.58
Depreciation 2.25
Term Loan intt. 2.11
Insurance 0.35 7.97

Break Even Point = FC / Contribution X 60

7.97
= X60 = 44.36 %
10.78

Return on Investment

A. Project Cost : 35.22

B. Profit before tax : 3.25

Profit
= X 100
Project cost

3.25
= X 100
35.22
= 9.23 %