1.

INDUSTRY OVERVIEW
India is the worlds second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The food processing industry is one of the largest industries in India-it is ranked fifth in terms of production, consumption, export and expected growth. The food industry is on a high as Indians continue to have afeast. Fuelled by what can be termed as a perfect ingredient for any industry large disposable incomes - the food sector has been witnessing a marked change in consumption patterns, especially in terms of food.Increasing incomes are always accompanied by a change in the food basket. The proportionate expenditure on cereals, pulses, edible oil, sugar, salt and spices declines as households climb the expenditure classes in urban India while the opposite happens in the case of milk and milk products, meat, egg and fish, fruits and beverages. For instance, the proportionate expenditure on staples (cereals, grams, pulses) declined from45 per cent to 44 per cent in rural India while the figure settled at 32 per cent of the totalexpenditure on food in urban India. A large part of this shift in consumption is driven by the processed food market, which accounts for 32 per cent of the total food market. It accounts for US$ 29.4 billion, in a total estimated market of US$ 91.66 billion. The Confederation of Indian Industry (CII) has estimated that the food processing sector has the potential of attracting US$ 33 billion of investment in 10 years and generate employment of 9 million person-days. The Government has formulated and implemented several Plan Schemes to provide financial assistance for setting up and modernizing food processing units, creation of infrastructure, support for research and development and human resource development in addition to other promotional measures to encourage the growth of the processed food sector .Food processing is a large sector that covers activities such as agriculture, horticulture ,plantation, animal husbandry and fisheries. It also includes other industries that use agriculture inputs for manufacturing of edible products. One dominant segment in Food Processing as per Government of India indication is as follows :-

Grain processing
Grain processing accounts for more than 70% of the sectors output in terms of volume and 50% in terms of value. Though the organized sector seems comparatively small, it is growing at a much faster pace. There are 812 roller flour mills in our country producing approximate 25 million tones, of milled cereal products worth Rs. 1200 crores. Flour Mills can be installed with minimum capacity of 30 TPD of raw material crushing capacity per day to maximum 1000 TPD. The capacity suggested in this report is for mini flour mill i.e. 30 tones of raw material crushing capacity per day. As per CII mckinsey survey it is estimated that by 2005 the market for branded Atta has grown to Rs. 15000 crore and is expected to cross 25000 crore by 2015.

2) MARKET POTENTIAL.

Whole wheat flour is used in making Chapaties, Puries, Parotha and other roasted cereal based products. Wheat flour or Maida is a basic raw material for making Bread, Biscuits Cakes and other bakery products. Sooji / Rava is used in many sweetmeat products. Bran separated on milling is used as cattle feed. The products sold under brand names are very few. The concept for branded cereal flour products is now increasing as the concern for hygene and quality is increasing day by day due to rising disposable income at the hands of the average Indian and 1/6th of worlds population living in India(120 billion) and also due to demand of special quality ATTA and MAIDA from the large Mnc like Macdonald, Britania, Nestle,Hundusan liver and Parle. The current proposal to setup flour mill in Siliguri at Gandamore Dist Jalpaiguri has its own locational advantage which can be sumarised as follows:A) Abundant and easy availibility of raw material from FCI an growers of Eastern Bihar & northbengal. B) Cheap labour availibility of skilled and unskilled labour C) Good demand coming up from big industries like BISK FARM & CHOUDHARY GROUP , BRITANIA. D)Bulk quantity of Wheat alloted by state goverment for Job work for distribution through PDS( Rationing E)Big oppurtunity to export to Bangladesh and Bhutan F)Since liberalization, there is no license requirement for setting up or capacity expansion of roller flour mills. The mills can obtain their wheat supply from any source G)There is no license requirement or price/distribution controls on manufacture of wheat products

3)GOVERMENT INCENTIVE/SUPPORT
A) State Capital Investment subsidy @ 17% of the Fixed Capital Investment. B) Interest subsidy to the extent of 25% of the annual interest liability on the term loan borrowed from a Commercial Bank/Financial Institution for 8 years. C)The Project will be entitled to waiver of electricity duty on the electricity consumed for the production / operation activity & reimbursement of electricity charges @30% for a period of 5 years from the date of commercial production/ operation D) Reimbursement of 80% expenditureincurred by it for paying its contribution towards Employees State Insurance (ESI) and Employees ProvidentFund (EPF) E) 50% Refund of Stamp Duty and Registration Fee incured on land and building for setting up the project. F)Upto 5 lakhs Rupees reimbursement on installation of Pollution Control Device and for obtaining ISI/BSI certification/ISO 9000 / ISO 1400 G)Unit/enterprise owned by women Will be entitled to get 10% extra subsidy with respect to A,B,C,D,E and F as stated above.

4)PROJECT PROFILE ON MINI FLOUR MILL PRODUCT : WHEAT FLOUR (Atta), SOOJI/RAWA WHEAT FLOUR (Maida), BRAN PRODUCT CODE : 204109000 (Wheat Flour) 204111003 (Sooji /Rawa) 204108004 (Maida) 5)QUALITY STANDARD. : The Product may be manufactured as per AGMARK
Specification. The BIS have also laid down Specification for the Products : IS :1155 1968 (Wheat Atta). IS : 1009 - 1979 (Maida) IS : 1010 1968 (Sooji/Rawa)

6) BASIS AND PRESUMPTIONS: 1. It is presumed that the unit will run three shift per day and 300 working days per annum. 2. The following extraction rates are presumed : Maida 50 % Sooji Atta Bran 12 % 20 % 18 %

Extraction rates are only suggested. Miller can change according to demand, Wheat quality & climatic conditions. 3. Labour wages have been taken as per market rates. 4. Different varieties of wheat may be blended for producing desired end product. 5. The rate of interest has been taken 14% on an average both for fixed investment and working capital. 6. The rates quoted in respect of Machinery/equipment raw materials are those prevailing at the time of preparation of report and are like to change the time of placing the order

7) IMPLEMENTATION SCHEDULE.
The approximate time required for various activities is given below. However, it may vary from place to place depending upon the local circumstances: A) Selection of site. Already Selected B) SSI Registration = 7 days C) Project Report Preparation = Aready prepared D) Availability of Finance = Principally sanctioned ,disbursement after the conversion of land is done E) Machinery Procurement, Erection, Commissioning & Trial Run, etc. 8th months onward from date of conversion

8) TECHNICAL ASPECTS.
1. Production Details & Process of Manufacture 2. Power requirement of the unit is 500 kva. 3. There are no pollution problems and it comes under green category

The Process of Flour Milling Product Control

Wheat arrives at the mill by truck, ship, barge, or rail car. Before the wheat is even unloaded, samples are taken to ensure that it passes inspection. Product control chemists begin their tests to classify the grain by milling and baking a small amount to determine end-use qualities. The results from these tests determine how the wheat will be handled and stored. Different qualities of wheat may be blended to achieve the desired end product. The wheat will then be stored at the mill in large bins. Storing wheat is an exact science. The right moisture, heat and air must be maintained or the wheat may mildew, sprout, or ferment.

Cleaning the Wheat

The first milling steps involve equipment that separates wheat from seeds and other grains, eliminates foreign materials such as metal, sticks, stones and straw; and scours each kernel of wheat. It can take as many as six steps.

Magnetic Separator
The wheat first passes by a magnet that removes iron and steel particles.

Separator
Vibrating screens remove bits of wood and straw and almost anything too big and too small to be wheat.

Aspirator
Air currents act as a kind of vacuum to remove dust and lighter impurities .

De-Stoner 46
Using gravity, the machine separates the heavy material from the light to remove stones that may be the same size as wheat kernels.

Disc Separator
The wheat passes through a separator that identifies the size of the kernels even more closely. It rejects anything longer, shorter, more round, more angular or in any way a different shape.

Scourer
The scourer removes outer husks, crease dirt and any smaller impurities with an intense scouring action. Currents of air pull all the loosened material away.

Conditioning the Wheat Tempering

Now the wheat is ready to be conditioned for milling. This is called tempering. Moisture is added in precise amounts to toughen the bran and mellow the inner endosperm. This makes the parts of the kernel separate more easily and cleanly. Tempered wheat is stored in bins from eight to 24 hours, depending on the type of wheat - soft, medium or hard. Blending of wheats may be done at this time to achieve the best flour for a specific end-use.

Impact Scourer
Centrifugal force breaks apart any unsound kernels and rejects them from the mill flow. From the entoleter, the wheat flows to grinding bins, large hoppers that will measure or feed wheat to the actual milling process.

Grinding the Wheat

The wheat kernels, or berries, are now in far better condition than when they arrived at the mill and are ready to be milled into flour. Wheat kernels are measured or fed from the bins to the "rolls," or corrugated rollers made from chilled cast iron. This modern milling process is a gradual reduction of the wheat kernels. The goal is to produce middlings, or coarse particles of endosperm. The middlings are then graded and separated from the bran by sieves and purifiers. Each size returns to corresponding rollers and the same process is repeated until the desired flour is obtained. The rolls are paired and rotate inward against each other, moving at different speeds. Just one pass through the corrugated "first break" rolls begins the separation of bran, endosperm and germ.

The Miller's Skill

The miller's skill is demonstrated by the ability to adjust all of the rolls to the proper settings that will produce the maximum amount of high-quality flour. Grinding too hard or close results in bran powder in the flour. Grinding too open allows good endosperm to be lost in the mill's feed system. The miller must select the exact milling surface, or corrugation, on the break rolls, as well as the relation and the speed of the rollers to each other to match the type of wheat and its condition. Each break roll must be set to get as much pure endosperm as possible to the middlings rolls. The middlings rolls are set to produce as much flour as possible. From the rolls, the grist is sent way upstairs to drop through sifters. The grist is moved via pneumatic systems that mix air with the particles so they flow, almost like water, through tubes.

Sifters
The broken particles of wheat are introduced into huge, rotating, box-like sifters where they are shaken through a series of bolting cloths or screens to separate the larger from the smaller particles. Inside the sifter, there may be as many as 27 frames, each covered with either a nylon or stainless steel screen, with square openings that get smaller and smaller the farther down they go. Up to six different sizes of particles may come from a single sifter, including some flour with each sifting. Larger particles are shaken off from the top, or "scalped," leaving the finer flour to sift 47 to the bottom. The "scaled" fractions are sent to other roll passages and particles of endosperm are graded by size and carried to separate purifiers. Purifiers in a purifier, a controlled flow of air lifts off bran particles while at the same time a bolting cloth separates and grades coarser fractions by size and quality. Four or five additional "break" rolls, each with successively finer corrugations and each followed by a sifter, are usually used to rework the coarse stocks from the sifters and reduce the wheat particles to granular "middlings" that are as free from bran as possible. Germ particles will be flattened by later passage through the smooth reduction rolls and can be easily separated. The reduction rolls reduce the purified, granular middlings, or farina, to flour. The process is repeated over and over again, sifters to purifiers to reducing rolls, until the maximum amount of flour is separated, consisting of close to 75 percent of the wheat. There are various grades of flour produced in the milling process. The remaining percentage of the wheat kernel is classified as millfeed - shorts, bran and germ. Bakers buy a wide variety of flour types, based on the products they produce. The flour the consumer buys at the grocery store, called "family flour" by the milling industry, is usually a long-patent all-purpose or bread flour. Occasionally short patent flour is available in retail stores. "Reconstituting," or blending back together, all the parts of the wheat in the proper proportions yields whole wheat flour. This process produces a higher quality whole wheat flour than is achieved by grinding the whole wheat

Bleaching the Flour

Toward the end of the line in the millstream, if the flour is to be "bleached," the finished

flour flows through a device, which releases a bleaching-maturing agent in measured amounts. It is an established fact that freshly milled flour makes a lesser quality baked product. In the old days, flour was stored for a few months to mature, or naturally oxidize. This whitened the flour and improved its baking characteristics. The modern bleaching process simply duplicates this natural oxidation process, but does so more quickly. In the bleaching process, flour is exposed to chlorine gas or benzoyl peroxide to whiten and brighten flour color. Chlorine also affects baking quality by "maturing" or oxidizing the flour, which is beneficial for cake and cookie baking. The bleaching agents react and do not leave harmful residues or destroy nutrients.

4. CHALLENGES AND OPPORTUNITIES

The future of the Indian farmer depends on the success of the food industry as India's prosperity is predominantly linked to the growth of incomes in the agrarian sector of the economy. Increasing liberalization of the economy has tried to lift the protection that the food and agriculture sector once enjoyed in the country. This has exposed the sector both to the opportunities and challenges of the global food economy. The market forces are compelling the Indian agriculture producers to increase the quality of their farm produce while continuing to maintain their cost competitiveness in order to be able to compete effectively in the global food market. Even in the domestic market, rising per capita incomes and changing demographic profile of the population has ensured the growing demand for processed and convenience foods. Increasing consumer awareness about health and hygiene has shifted the focus of the market to "safe" foods. The Indian food-processing sector is undergoing a veritable revolution - all the way from the plate to the plough .Indian food processing industry has seen significant growth and changes over the past few years, driven by changing trends in markets, consumer segments and regulations. These trends, such as changing demographics, growing population and rapid urbanization are expected to continue in the future and, therefore, will shape the demand for value added products and thus for food processing industry in India. The Government of Indias focus towards food processing industry as a priority sector is expected to ensure policies to support investment in this sector and attract more FDI. India, having access to vast pool of natural resources and growing technical knowledge base, has strong comparative advantages over other nations in this industry. The food processing sector in India is clearly an attractive sector for investment and offers significant growth potential to investors.

Project Report
SETTING UP OF ROLLER FLOUR MILL AT MOUZA JOGIVITA , BALARAMROAD, NEAR GANDAMORE, PARGANA AMBARI FALAKATA

IN THE NAME OF

SAKAMBARI FLOUR MILLS PVT LIMITED

PREPARED BY MURARILAL AGARWAL ASSOCIATES CHARTERED ACCOUNTANTS M R ROAD SILIGURI 734005