Report

on
Agro-Industrial Attachment
(AGR-407)
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE DEGREE OF
BACHELOR OF SCIENCE (HONS.) IN AGRICULTURE

Submitted by
Name: Ashish Kumar Sinha
Registration Number: 12010284

Under supervision of

Dr. Sapna Jarial

Phagwara-144401, Punjab, India

2023

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 Declaration

I hereby declare that the report presented herein is an authentic record of my work carried out under
Agro-Industrial Attachment at ___Vaishnavi rice mill___ as requirement for the degree of Bachelor of
Science (Hons.) in Agriculture and no part of this has been copied from any other sources.

Ashish kumar sinha

(Registration No.12010284)

For Agro-Industry

Official Name: Somnath kumar

Designation: supervisor

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 Acknowledgement

The training opportunity I had with Vaishnavi Rice Mill was a great chance for

learning and professional development. Therefore, I consider myself as a very lucky

individual as I was provided with an opportunity to be a part of it. I am also grateful

for having a chance to meet so many wonderful people and professionals who led me

through this training period.

I express my deepest thanks to Somnath Kumar for taking part in a useful decision &

giving necessary advice and guidance and arranging all facilities to make life easier. I

choose this moment to acknowledge his/her contribution gratefully.

Last but not least I would like to express my deepest thanks to Dr. Sapna Jariyal

whose, stimulating suggestions and encouragement helped me in all times of the

fabrication process and in writing this report. I perceive this opportunity as a big

milestone in my career development. I will strive to use gained skills and knowledge

in the best possible way, and I will continue to work on their improvement, in order to

attain desired career objectives.

Ashish kumar sinha

12010284

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 Table of content

Chapter No. Contents Page number

1 Introduction 8

2 Nature of attachment 9

3 Process outline 10-32

4 Observations

5 Certificate

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 Introduction

Agro-Industrial Attachment

During Agro-industrial attachment, the students involve themselves in the activities and

tasks for 3 Week duration viz. acquaintance with industry and staff, study of structure,

functioning, objectives, and mandates of the industry, study of various processing units, and

hands-on training under supervision of industry staff, ethics of industry, employment

generated by the industry, contribution of the industry promoting environment, learning

business network including outlets of the industry, skill development in all crucial tasks of

the industry, documentation of the activities and task performed by the students.

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 Nature of Attachment

On the first day of my 21-day attachment at Vaishnavi Multigrains Private Limited, I was given a

schedule covering different units of the rice mill, I was then trained according to the schedule

provided.

S.No Section Date

2 cleaning paddy 6th -8th Nov

3 boiling unit 9th - 10th Nov

4 drying unit 14-17th Nov

5 mills 18th- 25th Nov

6 report writing 26th Nov

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 Vaishnavi Multygrains Private Limited
deoghar, Jharkhand
Vaishnavi Multygrains Private Limited - Manufacturer of organic rice, rice & rice grain in

Deoghar, Jharkhand. it is a Manufacturer of grain mill products, starches, and starch

products, and prepared animal feeds.

The rice is obtained after hulling/ dehusking of paddy in a rice mill. The paddy comprises

20% rice hull or husk, 11% bran layers, and 69% starchy endosperm. Paddy in its raw form

cannot be consumed by human beings. It needs to be suitably processed for obtaining

rice. Rice milling is the process that helps in the removal of hulls and bran from paddy

grains to produce polished rice. Rice milling is the process of removing of husk and bran

layer from the paddy to produce a whole white rice kernel. The rice should be free from

impurities and should contain a minimum number of broken grains. Food Corporation of

India (FCI) is the main purchaser of rice. About 20 to 25% of the total production of rice is

procured by FCI at a Minimum Support Price for the Public Distribution System.

OBJECTIVES

The commercial rice milling will have the following objectives.

● Production of edible rice free of husks, stones, and other foreign materials.

● Minimization of grain breakage and maximization of whole rice recovery.

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RAW MATERIAL AVAILABILITY

The rice production in the State has shown remarkable production growth. It has grown over an

area of 5 million Ha with 15 Million tons of production during the year. As a result of new

agriculture strategies, like the 'High Yield Varieties Programme’, paddy production has seen

appreciable growth over the years. rice mills operate at 3 shifts per day during harvesting and

procurement season.

MARKET OPPORTUNITIES

Setting up a rice mill will allow farmers to engage in value addition & more profits. Rice bran is a

byproduct obtained during the rice milling process, which is a very good source of edible oil. Rice

is in great demand both in household consumption and also in Hotels, restaurants, canteens, etc. A

major share of crop production can easily be sold to FCI or other procurement agencies at MSP.

Both rice and fish are in great demand in the State and it is used as a staple food. In the state

consumption of cooked rice is 164 kg per person per year. Therefore, more than the existing

infrastructure for processing paddy to rice is needed to meet current and future demand. The new

entrants have good scope to start this business.

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PROCESS

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 .LOCATION AND ADVANTAGES

LAND: The proposed location of the Unit is situated at Deoghar, Jharkhand. The site is located

centrally notified backward area. The location of the industry has considerable influence on the

techno-economical facility of the project. There are various factors contributing to the functioning

of industry and the following are the primary factors taken into consideration.

REASONS FOR THE SELECTION OF THE SITE:

1. Availability of labor at an economical rate.

2. Adequate supply of electricity power.

3. Adequate supply of water throughout the year.

4. The site is well connected with the road facility.

5. Banking facilities and Government support.

6. Adequate Transport facilities for economical transportation of finished products and

Spare parts.

7. Nearness to the Market.

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PROJECT COMPONENTS

● · Land and Land Development

It acquires a land of about 0.5 acres of land keeping in mind the future expansion of

the project. Accordingly, a land cost of Rs.2.50 lakh (Rs.5 lakh/acre) has been

considered in this model. In addition, a cost of Rs.5.0 lakh has been considered as a

land development cost. The cost of land if purchased for the project can form part of

the margin of the promoters subject to a ceiling of 10% project cost.

● · Buildings and Civil Works

The following buildings and civil works have been considered

. Milling and Storage Area 500 sq. m Office, Lab& other 500 sq.m

The construction cost is considered as Rs. 6000 per sq. meter. Hence, the total construction

cost for the built-up area is Rs. 30.00 Lakhs. Another 500 sq. meter area is required for the

office, lab boundary wall, parking area, etc. An amount of Rs. 5 Lakh is necessary to take

care of miscellaneous civil work.

● · Plant and machinery

A list of plants and machinery required for a rice mill are as under

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 ● · Miscellaneous Fixed Assets

The cost of office furniture and other infrastructure, telephone installation, and electrical

infrastructure is considered under miscellaneous fixed assets. A provision of Rs. 3.78 Lakh

is needed to take care of this expenditure.

● · Preliminary Preoperative Expenses

There were different preoperative expenses like registration, establishment, traveling, market

survey, administrative, trial run expenses, etc. An amount of Rs. 2.00 Lakh is required to pay

these expenses.

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 ● Contingency

Contingency charges are considered as 2 % of the cost of the project excluding the

pre-operative expenses and land cost.

● Margin Money for Working Capital

Margin money for working capital is considered for one cycle in project cost while

calculating project components

PROJECT COST

MEAN OF FINANCE

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WORKING CAPITAL ASSESSMENT

The working capital required to run the plant is worked out as under Rupees in Lakh.

MANPOWER REQUIREMENT

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Four laborers are required for unskilled work like handling, packing, etc. Wages per person per day

is Rs. 200/-. This would cost Rs. 2.4 Lakhs per annum.

PROJECT PROFITABILITY

● Installed Capacity and Capacity Utilization

The installed capacity of the plant is 0.5 MT per hour. The plant will be operated in two

shifts of 16 hours each for 225 days per annum. Hence the target of the production per year

is to process 1800 MT paddy. One-third of the installed capacity is used for custom milling

i.e. around 600 MT and the remaining is for trading in rice (1200MT). The capacity

utilization considered during the first, second, and third year onwards is 50%, 80% and 90%,

respectively.

● Yield and Production

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 ● · Sales Revenue

The sale revenue from the business at 100% capacity utilization is as under:

For milling on a custom basis products like bran and husk produced during milling will be

taken away by the customer himself.

● Profitability Calculations

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FINANCIAL PARAMETERS

● Cash Flow Statement

It is useful in determining the short-term viability of a company, particularly its ability to

pay bills. Cash inflow means the source of cash i.e. equity, Loan from the bank, and the cash

accruals from the business. Cash outflow is the sum of cash required for applications like

increases in fixed assets, repayment of term loans, preoperative expenses, and cash required

for the payment of dividends.

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 ● Break Even Analysis

The unit is expected to break even at approximately 66% capacity utilization during

the first year and in the third year breakeven will be 34%.

● Debt Service Coverage Ratio (DSCR)

The debt service coverage ratio based on the assumed techno-economic parameters is

found satisfactory. The average DSCR is 1.52.

● Internal Rate of Return (IRR)

The financial indicators like Net Present Worth (NPW), Benefit Cost Ratio

(BCR), Internal Rate of Return (IRR), etc. were analyzed by discounting cash

flow @15% discounting rate. The internal rate of return is found to be

38.24% and BCR is about 1.10.

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 OBSERVATION

When I visited to Vaishnavi rice mill I found out -

I had witnessed different boiling units

of the rice mill where paddy grains after cleaning get into them and boiling

for processing .

after boiling it goes to drying through belt and motor

chain

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 multigrainer- that removes chaff, husk,

stones, and straws from the grains.

paddy cleaner- cleans the paddy and removes the

remaining dust, stones, and straws.

destoner - removes all the stones, from the paddy .

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 dehusker - It removes the husks from the paddy.

paddy separator - it removes the paddy shell and gives

out rice in the output.

whitener - it whitens the grain of rice and makes it more

white .

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 rotary separator- it removes dust and sticky dusts,dust

moulds .

silky - it makes the texture of the rice siky

and smooth.

sortax- it removes and sort out the black, grey, porous ,

dark, grains from the white rice grains .

long, medium, and small grains.

80% rice husk mixed grains

polishing the rice grains

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 product of whitener

grade 3 whitened rice

silky product of rice

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 sortax product

final graded rice

broken rice

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 medium-sized rice

packaging

manual loading for shipment

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 reuse of the dust, and waste products of the mill as

energy fuel for burning and generating power.

picture gallery

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according to my observation -

● the industry sells its product rice in the local market, within the state also

neighboring state Bihar, Bengal.

● The employees are working on the contract basis.

● The marketing and distribution is given to the private parties on the

contract.

● The employees are satisfied with their job.

● The management supervision and control over the lower management is

medium.

according to my analysis, the mill produces rice grains that are of good

quality, and no artificial coloring and polishing is done in the rice to make

it white, The mill has a good market and working very well. However, the

competition may get intense in the upcoming time with the entry of new

competitors in the market.

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 Recommendation and Suggestion

After collecting data and analyzing the data, the following are commendations that

can be helpful for the Vaishnavi mill:

● The industry should be focused on more states and districts.

● The industry should focus on providing quality service to consumers by

improving their supply services and introducing new lucrative schemes to

increase sales.

● They should try to improve their relationship with the dealers and try to give

some benefits to them.

● The advertisements should be focused .

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